W't:- , ■»■ ■^ .,. 'V € >■. IMAGE EVALUATION TEST TARGEf(MT.3) "*"'t \ ,■•-. 1.0 I.I 11.25 Ijo ^^ MBH ■^ IM ■2.2 £[ ti& |2.d L!A ii.6 6" Ik ^Sciences Corporalian ■ '! 23 WiST MAIN STRUT WIBSTM,N.Y. MStQ 716)t7a-4S03 ^ j!^ UK L'lnstijhit a microf ilm4 la'meilleur exemplaire qu^il lui a M possible de sc procutar. Les details da«et exemplaire qui sont peut-ltre uniques du point de vue bibliographkiua, qui peuvent iinodif ier une iAiage reproduita. ou qui peuvent exiger une modif itatimr dans la mtthoda normale de f ilmag« sont indiquis cindassous. . '■ □ Coloured pagM/ Pages de couleur □ Pages damaged/ l>gas endommagies □ Pagey restored end/or laminated/ Peges restaurias et/ou pellicultes i . 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Lorsque le document est trop grand pour Atra reproduit en un seul clichA. 11 est filmA A pcrtir de Tangle supArieur gauche, de gauche A droits. et de haut en bas. 9n prenant la nombra d'lmages nAcessaira. Las diagrammes suivsnts illustram le mAthode. . ■¥ ..-"( D 32». 6 MM V- V./A, I ?*• \ , V \ \ \ THE TtoRONTO. GRIry & BRUCE AND ■"<>■. GR4ND TRUNK RAILWAY BILLS! ri^JT'H'EK B'ROP m:r. [OiKSOisr. 0ja1\cl ITrunh piluay «if Aiwjitt. D. D OKXKHAL MANAGER S OFKICK, \ MONTRKAL^tJI^l'EBnuARY 14th, J882. ^AY, Elsq., M.\p.P., Toronto, Mr Dea^ Sir, '^ . I I have li^d\ forwardedUo me two printed! documents, dated the 27th ai> J 30th January, i\|e8^ettively, which have heen isjJ^ed from the office ifr the Tofbnto IGrey and BrMc6 Oompany, hWinf? reference tiUhe Bills now before the Ontario Legislature, liiffeistW that Cfempaijy, and mor^ especially the Bill promoted by the Grand Tri^nk\Qompany' tolsecure the spcedAWrrying out of the iigreeine«t'make by them WitMthe Toroiito Grey and Bfu^; Company, dated the Thirteenth day of May,\188i One of tile documents Is sifeiied by nifee of the presenil Directors of the Toronto, Grey lind Bruce Coiipani\ the.otheilsctting forth tiiaBit is a "Memor- andum of Factil" upon whiciiUhe hWnto Grly and Bruce ('oM|pany oppose the application of Ihe Grand Trlink L'ompany although without signature, it will not be wrong |o assume, is lUso improved by|he gentlemen ^hose names are appended to thft former, datedVanitary 27th.- I , ' I * 1 ^HL M It is alleged in these papers thtlt I have mad|( certain stl^^^s ijj sQpport of the Act whicli the Grand Trunk d)mpany are bromoting, \^Hm4 incorrect, but it is not specifically stated in \*hat respect tie allegations cditained in the only stAtiment rtiade by me on behllf of the GrVnd Trunk Railvlay Company, which has been l|v"gl»t ibefore the liogislatiire, vii , the Petition,;ire incorrect. In that Petitfcn it is asserted that! the Directors Constituting tMpoard of the Toronto Grey and l|r\jce Company at thddate wIiLmi thdfirst agreement between that Company and the Gi^nd Trunk CgmpaW was made, September ISSMrepresented the Bondholders ofltlto Company, and it is only neceshary to refer Mthe Memo- randum of alleged|fd(Ct8, issued by tl\e Directors (\f the Torontd I tlrey • and -^. . / ^f^. N- , i \ o .\- . . •\ Ikuco Co.niKiny, U. Fove the accuruc> .f this stiUO.uent: In^hat document it ii^ Htatt'd : ' \ j> " An arr.n.ge,nent was made in Juno. 1^80. l.y tl.^ IJondholdcrs and the then .^ Directors, l.v which the Directors who l.rfd been ekn^ted by tin- hharehoUlers .'retired, and their places were lilled hy: n..min.^. ol the Bondholders. - (l'.,l |>«(;- ^'"^ . Trunk Cmnanv the favorahle consideration of a propos.t.on tor the elheun.t , V^u^oi he line .f the said Toronto Grey & BmceCou.p^ cannot^^eon- tr6vert;;d.a,ulm agreement was entered i.^o on the ISth t,epte.nber, 18S0, by the suid Directors. -^ ■; , have no inlbru.ation tl^ Mr. Hendrie <'^'y; ^-^-'^.^"'^"XtTtW this arrangement, and the document itself is ^^H '.v the Vu.-t^nynen ^ Toronto Grey & Bruce Con.pany, Mr. l^uusay, ^.Vfl 'S -»l-'i.'«'l; '/ ''« ^^. l^ZLf agreed.with Mr. Hendrie in opposing an arrange„.enL^.th Uu. G.and ^^ Trunk Company. ,. . i ' * ■ ;^^ _• , It would nat.mvllv he interred on reading-.-ver the" Menu.nu.dum of ^^^ d.aed January 27th, that the lirVt act of the new Board, ^^.ou.posed ot rep.e.enta- 1. o the bondholders, was to put an end to the fust af^reenu-nt entered .no .twee., the two €ou,pa„ies. You will fn.d o,. tur...ng to paragrai-h 3 that ^i^ e ^X u' tile agreement of the IHh September, 1880, an ... t e l^., paragnih, No. 4, it i^ ...ade to appear that dur...g^he l^jnod wh- • negatiations which e..ded in this .green.ent be.ng made. 7«'^' '" »' '^^^ ;' ^ CanadhH. bondholders decided to place their ..o....nee« ... the D.rect.o.. ot -the Co.npa..>SiHfd in parag.-,aph 5 it isBtated:- '. . " It was agrt^ed between the Directors so elected (that is, tlmse representing .the bon,lhohU:;«) a..d the Gra,.d Trunk,«hat the agree,..e..t ot September. IhhO, Bhould be abandimed.'' ' „ rr. ^i^o"^,;^ ^siy^nf !,.r;s"r r'^iss " A " " B " AND " C." ^ \ _ I desi.e particul^l^ to call your attention Ul the st,deme..ts ^-^^-^^^ these letters The Orst, vou will observe, is wntten h^ the bee e ar^^ ol the T .^..o G..V & BL.U.npa..y, l.y .nlrr or V><^ n,.„r.l-^M,h^f^ho.n. h m ^,^l^ed b^, a.vl in 'the .intcest of the B.n.dho d..s, -d .t..0nta.ns a stinct nopositio.; t.r i new agree.nent. substantially o.. the -'"-l^ ;^;^'- a ..ow ag,een.e..t was ...ade, the one now in quesfo,., dated the l«th May^hSth • We are tohl in the " Me...o.:«ndu,.. of fads": -At. this period (Janua^ " 1881), lo..rr.fths of the teru.i..able bonds we.-e held by persons res.dent « England. a..d the rest were held in Ontario. a..d of the 7..00 ^shares,. i.oOO '• were held in England, a..d the i)ala..cein Onta.'.o." The Bondholders then resident in Europe we.-e represented i,.to.ido„^by a , conunittee consisting ot gentleme.. who had ha.M.d in the bonds a.,d stoek of the A J. rompunv when Lv wor^nrst put upon tb. ma^et. Th.y .voro amonj^st the tavgost U Conn.aA to.l.os.Mu.w h.U%tl.^ lH.u%. «»-^ •' En^'laiul./ Tlu.ii.i^s of th..s. Bun.lh.,l.l.M-. re.i.le«t4A England may I., ^oth.-red tVon. t .. Va..t tluU ..n tlu- //..y o/ .4,n7, IHSl. th.v caused ,1um. A,en. . - wr.lLth..A,..nt o.' .h. 'IWout. drey & Bru.. (Vu.pany. .o add.v..4lu. followiug letter to the Directors of the Urand Trunk (.ompany .- 'i' Toronto, Grkv and Hkh k It. K. (K., , . = " 1^ Throitinurton .St.. liiiNiMiN,/ l»l April, Itlrfl 'till. KiinliMi 15 111 irni-s caiTiiini;-' i.|'llin«i-i>-* .'aijiiinu''"!' l'>84im,(t(Ml. iivor 85<>0>lMHt, wjtii :i iiiiiiimiiin I>:i.v- ••'^'- - »:"' ';'■ T'"' •'";; ■..vl::; :r: :.';.":;..; ^...,1/1, » .i.........'^ .(■> •■ icsoK.-.l tl.Hl lli>- ('..i.uuiM.-.- ;.!.■ pKl'ii-.i 1 • .25 ,,.,.,...,... .r,o,.S4,.0, '"-*=^:'"'""V"', "i-'^'Zrihe works a. ..W-luW mi ,1.o memo. :;=i:!;;;::"r^:=:;^:r:;:":;:r. ; - ,: , ,.i.. >.. »„..„„.» a ,,0 .anieil out T..' u -»,n not .x.i^.MlinK^ne ....Ihoi. doll.uH ... eu.h: j Tl.is l.tti'V was sup,.lcnu-nt.Ml hy tl.e tollown.Ka«rn.ul pn.p.«al handed to the' President of the Grand Trunk (;o.n,-any on the 7th April : Uiev and Uruc Kailway fonipany to giv.' t. Ih>' (!r;ind Trunk • Till' Ti.timto Urev and vrw-f ikuii».i) v «.. p.... •• ;,■ . CV,m,.uuy *l.o"o,oOO,ii. cash, in addition to the loilown," esttmatcd asset., ^ ... . Hunus voted (less Winghuui Bran. h. *3t)4'O0). Works iiUead>''done •■• Ordinary Share Capital, at 10 per cent ' Old Stores i-- r.,000 40,000 •.iO,000 2tiO,000 •lor whi.h total sum of sa\ *l,;n5,0(IU t ■ takes^ do all the works as enum.Tated m iraMS ^376,000 land Trunk Kailwav Company under- of •iHth.Ianuary, and slated as lollows : ir,o-jo,ooo "OriKinalKslimate , ,')0,000 " IncreaseiF cost ol Stee I Kails . ^^ ^^^^^^ • Kight of way and Old Liahilities ■ Pmvhase of Queen's Wharf Shops ••••••••.•;• ; •■ •• Increased weight of Uails from ..(, Ihs. to t.O Ihs... •;-•,.; .. Hl'-huilding- aTl Wood.-u Uridges .n masonry and non over the whole Line and extra Ballasting •' Wingham Branch , > .50,000 •JO.OOO 25,000 155,000 50.000 i|l,;t7 0.000 : I^^Xo^^rSu'oO wra minimiJm payment of *100,UOO per annum," ■ This proposal was accepted by the Grand Trunk Company and another ugreemenl was entere.l into in conformity with the tenu« ol it, hn.dly completed and execiited,' on the loth day of May, 1H81. ^ la the lace .d" all these f.ict« we are aaked to believe that '• no discussion took . place at the Board of the Toronto Grey and Bruce Company in -»-ence to " any fresh arrangement with the Grand Trunk until the Ist April, 1881. Was «»:• .., [ ' i \ V y: there no discussion when the letter of tl,i«> Secretarv oi' the Toronto firey and ' Bruce Coinpiuiy was written in Januurv ?-. Did Mr. Ilendrie iind iiis Iriends then protest iij;ainst liny I'urtlur m-golialjiius with tlin (invnd 'rmiik (.'(inii>iin'vi''i On the contrary, I aiuint'oruied they were assenting partieH to tiie pro|)o.sal wiiich it contained. In the Meraoranduin of luets, dated tiie .SOtii Jiinuiuy. it is stated tbSt " the •* appeals which were niiMh' lothe nninioipalities haviW heeu rcjecied, tin? ('oinpAnv " were thereb)' ihrowu ujxmi their own resources rti riiisiug th- tion of two members, vi/., Mr. Hendrie and Mr. Ramsay, the Board were uuani- nwu.s^l^|||L^vwur id' an agreement with the Grand Trunk ('om|iany. The ■nend)ers ol thtlaplBrd, including the Presideiit,.all represented Bondh(dders.'aml they were in perleet harmony' up to this tinn- in their riews and policy with the Bondholders resident in Kngland, who were simultaneously pressing the completion of the •agreement upon the Directors of the Grand Trunk. It is.no part of my duty to eUter into any defence id" the gentleineil who then had se:vts at the Board of the Toronto (>rey and Bruce Com])aiiy, hut 1 can- not refrain from noticing an insinuation of interested motives contained in tlie so-called memorandum of facts, whicl) I luu able at once, emphatically, to pro- nounce as without the slightest foundation. Mr. Beatty and his friends had no trtinsactions with the Grand Trunk Company, or interests in thai direction, adverse to the interests of the Toronto Grey and Bruce Conipany. ^ Whilst Mr. Hendrie was resorting to the Courts (June, 1881,) to prevent the majority of the Board, and, at the time, undoubtedly the majority of both the Bond- and Shareholders of the Company, from making an agreement with the Grand . Trunk Company, and wae urging an arrangement with the Northern and Notth V / r \ "■i r r - * \ ') rr «« i h r 4-^ 6 • • ■ , - • ■• . , - ' • J " Western C(»mt)aiiieH, witU wliicli it wns well known ho \y«H intimately poiinected, """ the Directors of the Toronto (jirey and Br«c(! Coni,panv issiued a statement ol' their reasons for preferring an arranircnient with Mie (Trand Trunk. tVom wliieli I ven- tnre to trouble Vou w'ith a (ew extraetM. simply because tliey ansx^M-r Ciiftv'Hhe . statements niside Irom time to time that the agreement jtroposed lo.be.made with '. ^he Northern and Norlh-\Vest(M-n ('oiiipanies would provr more.bi'rieticia'l to the proprietors ol' the Toronto (J rcy imd Bnice (Aniipany than -the T\;j;reemeiit -wrvh ' tiio Grand ^ruijk. " There n?e two proposals from otlier Railway ('ojnpanies to take over the •' line\ and to work it; one (iy tlie (Jrand Trinik of Canada, the other by 4h4. •* Northern ajid llijmilton and North-Western Railway jUompaniert." * -^ , The lirst-tliHt of theCiraml frunjt, is:- , ' That tliii tiniiiil Tniiik slmiilil. I'm- i;j(l.a.O(IO in cii-li, iTTi- c.l.l niil-i iiimI nlluMmiilvriiils iil-<|iieseiit < uixm (lir liiie.'hMil olliei- ;ir<>fl>, jiHlmliiijr :il>i>iit DI'-'.tMHI nl' iiimi'ici|ial IniiiiiM's, iiml ^40,0110 ,;kl|il IliW ci)lli]i iiiJ-iit, |j;i.y.iill iijl ijif llii:iliiiLC liiiliiliiii'^ ul llir 'rnruiilii. liri'V :iiir laiiil iir 'ruiDiilii. wliiili Iho Tiirniiln tiivy ami Itiiirr Imlil iiiiilii' Icasi' I'lom llir (iiaiiil Trunk, anil vvliicli |iri)|ii'il v Inilay i~ an i'xc.'iijiiii;ly xallialiU- ono. Tlir (iiairti 'I'l iifiii to wnik iliu linr IVuni tlif Ul .Inly, IHSl,^ \\w \^\ Jimiiaiy. 18?i'_', and pay '"ll'i' 'riUDiiln (Ji)in|iaiiy all lliu iii'l i-ovc«iie ilininir iIkm' six Mmntli'*. .iiul IVoiii tliu Nl .laniiaiv, I'^Mf'" -" yi':ii-< tliiMrailci- In wijik ' iho liiii'i |i:i\ini; t" llic TiiLnnln (''ini|>iinv. a-* tiillii«> :• -'_'7t |n rWWi. mi thr j;iii>s li'iiiiiN-oainrd liy tlio liiK- 11)1 111 84IW.TWIO, J.'n |iii- mit'. mi nil aLovr *40il,(MM», ii|i In #."iO(l, 11(1(1, ami all alinv.) . 85(»(J,II(»(», 12* iii-i- cinl , Willi a LTiiaiaii'lii- llial IIk' nil irvtiiiif wmilil iifVii- \n\ I.»m liian glOd.OdO , |u'r ummiii. 'riioif ale MUhr uIIiit itiiiis wliiili llio liiaml Trunk vvmilil liavo In ]my. wliii'li will iuak« llii-i luiiiiiiiiiMi up In SI(l,"),(i(Hi. ^ /" ' Tlie.peri;enlu^t' wiiulcl Ih' ii.s liillnwi — i ■ *40(I,(M)(), 27* puiioiil.... i..^...." «1I(I,00(> 8100,000, 25' p.M- .Hill .'..... r. 2r),0()o 'AToiai., 7...... «i.{.">,n(m And nil iill iibiTln $5(H(,4'(iW^I2i. Tlio miniiTiuni with llii- otliPr snuric nl' lovenni' will niiiko 2J l«'i- lint, ici-laiii on pioV3fit S2.(Ml(Mt()0 nl' bmid;—^ay, 8105,(1(111. . Ixdlnl tin- iiiluii'STninnew isnur 111' 41,(1(10.(1(1(1 at 5 poi- Kill.. 8J0.000, leiivin;; lialaiKB 8,')r>,000, equal In 2^ |*i- ifiil, as aliino »t(iled, willi«n aliiinsl ccrlaini V nl lln> Vjaininijs ol' llie linfc goinjf up. wilhin Iwn yours, ilml is, in tht liunils nl' llio liiand Trunk, In g^ilKl 000 and nvor. . i. Ttiis would vit'lil It rovt'iiue nl' 8l;{.i.0()(), and llie 85,000, ui|uul In 8140,1(00, m- \\ |ier ix-nl. on Uio piewiil liniiilH. - i^.. 9 Thr Hptrd lliuik thiit it imiy e.ctn l/e inirkr,! by ((if Uniml Trunk to CimsiilerMp hiylicri fiyuren, as they tire in a positinn t > rontrul a vast Western trivlf^ T/f ^onril uf Dirertofs cuncurr^if ^n' lliis pr'^fiosi- ■ tion. only one Oireiiar niil vl' elerett lioffiu/ (tiiK TOTUK C0.MK\NT I NTH. AITKK Till-: HOAKI) HAI> l'A8Si;i> Tile. KK.sm.lTlO.V AiiHKKl .<(; -TO .U.VKK TIIK ABOVF. AHKANCIvMK.NT WITH TMK «;i{ANI) TKIXK. Inwnfdiatily aller this a*pi-opn«il came in I'l-oni Ihe N'orlhi'rn and lluintltnii and Noi-lh-WnsltMii, nrtei-ini; :^5 per iciil. ot'groHMruc'uipIs U]i In |8,5O,OO0. 25 on all uliuvu 8;{50,00U up lo 8400,000, and on ad ovur 8400,000, 20 pel- cent, up lti»500,000, and TiJ on all over 8500,000,. with a aiinimum of 8120,000. This works out as follows : — f^^ J 35 per cenf. on 8350,000...' :..' 8122,'500 25 " •■ 50,000 12,500 •40 ••, " •• 100,000 20,ogo . ' Making a total ol' 8155,000'' This cei'tainly shows at oiii' slago of the rocoipls — say "' 8500,000 — 8-0,000 pi-r annum nioiv thtiii (iraiid Trunk, bill it is ivdiiccd, as there are someaiinuaj char^jeM winch ^lie Toronto ('omjiany liujt to |)ay in Ihe shape nl' taxes, jiisuiance. and .lenlal In the tirand Trunk, amountiiii; in all lo tJnout SD.OUO, which the (iiaiid Trunk have agreed In pay, and lor which nn pinvismii was made by the' Norlhern, aiid^ wit h the ,85,000 above rel'eired to, which the liraml TiunU are In pay in thf) , shape ol'tnllH, amounts Tti;Mi!i.'iliiit nine miiI iit'«.|i:viii <>t ilic H/ihkI. and niyM-'UVniipcii the i)n.|.osod 'aj,'iv.-nient willi tin- tiiand Tiunli as aHainsl lliat of tlie Ilainillo], \ Nuilli-WuMiin aii.l SfoilliriM Railway ('unijiinii ■ I h uidi--- tliciv \vcr-() i^iiiid and valid n>aw>n- tin' doint' sn ;^nd llicy ■ns oC llir (iiand 'I'lmiU liiiu ti'rconuMit (i\ th.' T>i to "iifV & Hrnif IVoni llio liiand Trunk sliall not l.r a«<-d, ixeiiisfcd h •' or MiaJo ovoi to, any v'luf Kailwav or any olli.-r < 'oiniiany. |,ci-on. or pors^is wlial^ocver, nor sl.i ■' tliB saini' lie iwed I.I Vhnil into ilie I'nion Station at Toronto any otliur Kailway. or anv otii " Coiupany or per^ni wliKievor, to usu the sumo or any part ot it, to exerciw any rights W tli tlausos •• ll is t'urlliei- a;^ried anrI understood I.elween llie pal ties llial tlie iii;lils ai.|uiie(l under tliis a>'reenieiit (i\ Ih.' T>i to (irev \ Hruee IVoni llie liraiid Trunk sliall nol I.e a«ed, ixeiiised hy, *■ ' sliall er his aifi-eeiuent given to tin' 'ri[)ionlo (iniy \ Hruee." Tlio alpove explains i(~eir. .■iedond. -We, believe llie Norllieru Railway t'oni|iany is speeially restrieleil ly enaetinent iVorn making an y aira injuiueni ot tlie kind suggested with any competing line, within whieh description the Toront^Mfcy i'Bruce eeilainly tails The i'.PIPfng'is the poi Hon of the clause in tlie Act of Parliament that restricts the Northern from making thi^ lirrangement — " Provided aho ihat the power' hereby granted shall not o.tlend lo the right of making such >/ agreeni.-iit with lespei-l to'any iom)ieting lines of railway." yy,,,.,/ Thi/Toronlo lirey \ Hiiicc lias no power to enter into such an arrangeiiieni with the N'.irthurn and -Xoilh-Weslei n' Itailwav t'oinpanies, excejit with the consent ot the Lieyteiiant- Goveinor in f'o\incil, and llie lollo\yiiig is ihal portion ol the clause so restricting tiar rights:— • '■ Provided also thai llii- seciioii shall nol 1 stimd as aiithori'-ing, and the .s.ii.l Conipaiiy — •• theT..routo lirev.V Itriicc l 'oinpany >liall nol chi.t iiili', any uuieeiiienl. ii~ iibcesaid, with the _ • N'oiihcin Hailwiiv of Canada oi with the llainillon \ .Norlli Wesierii Ifailway t'ompany, or • ■ Ureal Western liaiUvav < 'onipaiiv. unles-. with the coiisenl ol the l,ieii'jiii.iiMiov,.i nor in Council, •• and before such cons.'i'it shill begiven bv the Lieiilenant-tiovei nor iiO'onncil, the inunicipalitiM • which have granted boniiws in aid of the Toronto (irey ii ^^'}^ Railway Company ahall bo • notified. ' (Fi/f Uepuit to Bond aud StmkholilerH ) , ,. . " At thin tiuit, (Min, IbSl,) the lepreueiittttiveu ol" the Bomlholdtjrs -in Kngjaiid were most anxioun that an agreement between the two Companies ahould he peifetteii, anil oxeciiteil as apeedilv us possible. In the'Ho-calleil nuMiioriindiim ot Tucts, it is alU'j>vd tliat prior to the meeting of Ihe 28tli June, the Bondholders of the Toronto Grey & Bruce Company had expressed their disapproval of tjie aj-reemeiit with the Grand Trunk Kailway Compunv, and were in favor of tiie ariangement which Mr. Hendrie advocated with the Northern and North-Western Companies. What are tiie tacts".' An informal meetino; ^,\^ Bondholders was held on the ;ilst May, after the aoreement had been made, at which Mr. Walter Kinjrsford, who is described in the report of the meeting, as being Counsel for Mr. Hendrie, proposed the following resolution, which was seconded and carried by fourteen vot«s to four: •• That in the opinion of thi.s Meeting it is desirable in the interests of the •' Bondholtlers, that the Toronto Grey & Bruce Kailway Company should enter " into an agreement with the Northern and .North-Western Hailway Companies -for the leasing of the Toronto Grey & Bruce Kailway to them, on the liasis '» of their ofl'er for the sanu', now submitted, on the principle of lixed rentals." The parties present and interested in the business therefore numbered only ei g ht egii , i nuwHy fnf nds vi ' Mr. H e t i d t- t e , i n i d, unlt 'Ba I am mi H int'orun } d, muong e^ n the majority was recorded tlie vote of the then General Manager of the Northern Railway. It is known to me that many of tlio larg.-st Bon.lholders, certaiiUy a majority at this time, and who represented tnct^lo.s "ii, the bonds us contra- distinguished from ■• ,foi/«-.v." were in favour of e.mfirming the H-reement with tlie Grand Tri^nii. ^ Ft does not w^em t<. hAve o.vurre.l to Mr. Ilendrie and his fri.;nds tliat there were other interests than those of^ the Bondholders to be eonsidered, but bent upon turning the Toronto Grey & Bruc.; liu.. over to the Xorllieru a.ul Hamilton and North-western C'ompani.-s, they eonlinued to pmehase the ImmhIs and stoek ; Jhe latter in many eases was thrown in wUh tiie b..uds anq,l w ii,.m the Directors of that Coiupanv de.^^cribe as simply "dealer.s," have created a vested interest by providing $l,OUO,OtMt for the purpose of putting the Toronto Grt^ & Bruce road into proper condition ; but the real faet is that this was the sum which; under the agreement entered into with the Grand Trunk Company on the 1-Jtlu,\iiiy, it was stipulated the Ton.nto Grey & Bruce CompuBA' should provide, and lOr less the road could not be put into condition to be worked, and 1 believe 1 am correct in stating l/i„t tin- mo„,,i /,.,sal was iccei vod with universal siitisfactioti bv tin- people of the municipalities who had originally contributed to the construction of the road, and the inhabitants of the district generally through which the railway passes. Tlie Graiul Trunk Company liac^ prior to this date aided in a material manner the Toronto Grey & Bruce Company, as can be very readily proved bv its oHieers. They liml given them fm^ilities for entering the city ol" Toronto, w"liich the Toronto Com|»any were not at the time able to gel in any other way, and it is a fuet that they hud to take in payment of considerabh'sums expended in connection wi H ga t t l ie Toronto Grey k B ruce thi'_ilutJm;i i Ui'il liiiiii in ami iitoek nf tlnit Cuinpauj, /, .", i-i Iter of which they hold to this date, ..■.v^^%- ■ ■*/■ Bt'lipving that tli^'iiirilpmipiit would Ite eiirried out. tJiW Grand Trunk airroid tosupply the Toronto r.re\|& Bruoo Compmiy with c.-rtaiiiboiimuotiv.-s and caA. and also to nndprtakc tlio clluiJing of tho gnage of certain I'Lini's in their work-^ all of whioji. notwithstan(lii|;- tt|if course taken hv thti i)res(^itt Hoard of that (loin- l)any, the (Jrand Trunk (A)ii|,)ai|v iiave and are earryin}; oil. 1 l^clievw J am correct in sayin;,' thai hut foj tlifs assistance Ihe DirectiVs olAlie Toronio (Irev & "Biinee ('oni|>an\ would lind M the ojK'.rations of the road, aii Company in this respect the\l| \'r.)nt(|(ireV and B-uce Railway Company may have sought and obtained, that the |irrtn(l Trunk Company neither asked for nor obtained advice upon the point. They irere content to rest their case upon the Act (tiie 44th Victoria. Chap. 7l).|which had beenpassed with the especial object of enabling the Toronto Grey & BrWc*? Company to make an agreement wjth Hie Grand Trunk C..in|mny,aiid which sAWially prohibited.nnless;with the consent bf.the Lieuteniint-Govwrnor in Council, an\Wreelnent being made with the Northern, ttito Hamilton an.l North Western or (irAt Western Kailway CV.mpanies. The clause of the Act, it seems tYme, is sufficiently clear not to adn\itof any doubt as to its conslrnclion. It reads: " Provided that as.sent bAgiven tliereto by at h'ast two-thirds of tlie "shareh Iders present-or represenVd bAproxy at any meeting specially calfed for "the purpo.se according to the by-laws M the (Tompany." The meeting of the liSth .June, was called according to the hVlaws of the Ctunpany. The clause of the Act specially, refers, as you will tijid, tO agreements such as that which the Dirictors of the Toronto Cmy & Bructi hi^cl entered into with the Grand Trunk Company. -— ^\ 'l"he statement that the scrutineers, af tl\e meeting On the 28th June, act«iJ under the direction of the Counsel of the Gra^ Trunk Company, is wholly gra- tuitous, and the Direcfors of the 'IWonto Grl'y & Bruce Company must have understood perfectly well that Mr (JaHsels, the gentlennm refened to, attended the meeting of the 2Sth .luiu", an a nhareholder 1 believethat he wasacting at that time as Counsel for the Toronto Cu'y k Bruce!, but ewen supposing Mr. Ca.ssels had been present at the nu-eting representing t1 e inter/'sis of the Grand Trunk Kailway ( ompany, which he was not. were not the interests of Mr. Hendrie and his friends similarly reprcNented by Miv Martin ? The reason why the scrutineers refused tile voti/jt of certain alleged boiid- ''"'■^y'" »t "'t' '"feting on the 28th June, wa^ full/stated by the gentlemen in V •' \ > : -..™-' a'.. A. ?^/ V ■ . 'y r your information), antl it mi«|itiii8tma'..ll I.. i 9f ftvctH" that t.. otficr. o^thi : :. :; t'^r'''7i '"^•"' " "~»-i"". lojjal a.lvi..e wind, ti,^,.ha.l ol.t.nne.l f ^ Z' ^^ "^ *^'-"l«"y. -ti„, ,.n,ler eo.nplio., with tho law in ,h' .na,,.- "If n!; . ^ : '"•; "" J""- '-'^ '-^ -^ can (,uito- .uulorsian.i that th. ..Ili.vrs „l",l "p" "•'"•^'•''■^ '>l' U...- .san.o. I felt that it was ,i...,.ssarv ,o a..( w.th '.v ,''.'"'"" '"'"• ''^ '*'"''" '^^'""'=»v ac.epte.l at this n.^vting, (or ,h.. verv sin.Ml • !'!..'" ''"^'"' '" "'" ^'""^ '" ''- a g.ntlen,an adin, wuf Mr. wJl 1 : ^^ ^i;:;^'; ""'' '":""• •^^'•'" -i" —tin, Grey i Hruce bon.ls an,l ....k, ha.i iJ^rV'ri"'''" '"''''';' '''''''' '''''''''''' hoKler«or.h.Con.,any. wh..- mk.;,;1 l-nlr^t';:,^;:;;;- '^ ''-' - "ARRANCiEMIiNTS IIAV !•; I!|;F\ mm,.,- u in-., • ROSK & C, OF 1U,KT,1.,L.,M ' ,UA SF '' -"w , "'/[^^'f^..^'^^^''^^. •THFRK WILL THEN liF THIS IH I HI F , /vt i ''■• '■'^''' ^''"'''' •MOST CFIiTAI.NLY MF \ \IUIK V^tu • , • '^^'^'""^ '"''"l' " "^'' •THEIR VOTINU .UWFR ^''mF 'M.^Jmc] " T TORONTO '"' '^'^'^^''«- A copy of this dooj.n.ent is i- ,„,. possession Vo„ uiji s .. ,1 * •. that parties „u,ht sell their Unn^anJ a! the sanu- ti„: v 1 1 ZXl '''''T to secure the rejection of the agreement with ft... r. 'i -r , ' " " '" '"''''''" the object of the circular ^.,.s .^ " J • .':'^' ^?"!' ^■'""^ '-'"l-ny, hecause th theobject of the circular was to ur^e the rejection of "'"'"'"■• ''"""" the Urana-Trunk Con.pany an.f U.e al^ " t '::^ZTT n"'' ^"^' Hamilton & North.- Western (Companies The J. Wl . '""' "'.^''•' ^^"'"'e'" .uul wa. mani.st,y on« of the - ,..,;. -. re.rr,;; t.^;^";;:';;;.::;:^ iL'^ ^ B " meeting of the -JBth .lune • that the ... • f '"«."l"'" the agreement at the the Un^hohlers also, w ! iv p :,::;';,:' •'"'•;'^' '"' "" ^''«-'-'''--^. -"^ favour of t.e arrangen.ent. it is .mi; ;^ I".; ^ ^ ': tL r' rT' l''!! ^■""'- '" lieera to prove. If, as is alleiied in.me ..r ♦!. the .e.port^ol the scruti- Grand Tn-nk Oon.iiany h et J ^ ' /''^''T''"''''''^ ""^^ '-'■-•^- -'• "'« was entered into Ivith the L!^u\^tlZ'r: '''''"''T " """ ^^'"^" U.Le,is,atureofOn.ario cannot cont.r;ui';;;;:.::;;r^^^^^ be done l>>- pass.ng the h.ll .vhich we seek fWr ; hut I an, ,„ite sure that t n o n tacc ot the tact be sern.usly urged by auyoue who h'as a knowled " uJ law,an.l .s con.pe ent t.. g.ve an opinion, that ^. Grand Trunk Comp:n do not possess power to make such an agreement. * _ . "p.m> uoea • It may and doubtless will, he asked why the Grand Tr.inkTjompanv^come to the Legislature ask.ng for the pa.-.sa,e of such a Hill as thaKvhicI ou n ve k.ndly aken c arge of for them. The explanation is Hin.ple. Thev e vented iron, gett.ng what they believe to be their rights bv ivLctious and ZZ^, proceed.ngs prosecuted „, the interest of certain other Con.panies. aid Tl Z <',lealers whr, havo.purchaHed the securities of the 'iV.ronto G.'ey & Uf^J^ i!^ puny, «ince the agi-een.ent ^«.,s entered into, sjn.piy as a speculallu;,. and becauae .t muHt necessardy, to tight out a ..uoHtion of thi.s kind in the Law C^urts.iv' i e a g^eat deal of tune, and the e.xpenditure of h.rge suu.s of nnn.eM, which' the Grand Trunk C»- '-pany Jlunk .t .s un.iu.st that they should bo called ..,..» t.^ ^„,ji_ • ,. . ■. .■■ , ,r-. ■ . •' " ""-.' """'nu ue c»iu;n u uun to r-- h N^' . » - . * ■ ■'■-'- side ha,ve alleged that they are not aftkiiig for any legislation which will interfere with liny riglfts the Grand 'Trunk Company may have under the agreement, it is a fact tliat they are seeking fnJni tlie Ofttario Legislature the repeal of the clauses of (he Act of 1881 which, were passed with a full knowledge that the intention of the Toronto Grey & Bruce Company was to make an asreeiuent with the Grand Trunk Company— in short, with the ohject of enahling such an agree- ment to be made; and, Jailing to get from the Ontario Legislature wliat they are seeking, intend to apply to the Dominion Legislature to enable tlieiii to fnake arrangements with other Companies which would completely bar the way to the carrying out of the agreement entered into by the Grand Trunk Company, and enable them tooverride the following clause of the Act of 1884-: — " And provided, also, (hat this section shall not be construed aJ author.zing " and the said Company shall not enter into, an agreement, as aforesaid, with " the Northern Railway (.'ompany of Canada, or with the Hamilton & " North-Western Railway Company, or (Jreat Western Railway Company, " unless with the consent^ of the Lieutenant-tJovernor in Council ; and before "such consent shall be gi.ven by the Lieiutenant Governor in Council, the " municipalities which have granted bonuses in aid of the Toronto /Grey & " Bruce Railway Company shall be notifiedl" I am. Yours very faithfully, '■1 * ■ Joseph Hickson, I . ' GENERAL MANAGER. t r- ■^ ■4 i*.!: 11 A. • Th« Toronto Ctlky & Bruci Railway, ^v SeORETARV AND^-TRKASlIREIt'a CXPriCE. Toronto, (Jany. iJ2,) 1881. ^OSKPU HIOKSON^ Esq., - Uunerul Manager, . Iii-uikI Trunk KailwHy, M»nti-eal. T"; , Dear Sir,— A Till' BiMihl ol' J)ircMti>is of Ihu Toronto (iroy & IJrm'o Jtailwuy ('oin|iaiiy have lately uiuler cuiiHiUorution the |ireliiuinnry auresmnit oiilercil into hftwei-n llimi uiiil llio Urand Trunk Kailwuy ("ofa|iany iWi- ihr w.iriiin;;; l.y llin (inm.l Tnink. of lli.; Tor..iil.. (iroy A ^Bnico liini), alno the ciiciiNi.slanCfs whicli liavu taken iihuo Minrf the .J;ilf ihi-n-oi'. Having carefully NUrvoyeil tlie |H>-iiliiin of aHairn, iho hiri'iluis havo iiistruilf-l me to inform you that they consider that the ConipaMV in not now in :i )iosiiion to tiiltil ffKm-rins of ihal agroe- uiwnt — ns it at in-ewnt slands. The Jliruitors tind theins«lvi"^ thiii idarcifj chii-tly on account c)f the fact that your ('oni|iany di/siri' the carryiri-; out of extra works in^liridirinir, li:illa?m|ilatnd liy the Toronto (ircy & Hrnce t'()nipany^al-.o Imtuuno of the incro'asod piice of Nlocl rai|s, and the cUanse which has taken |ilaco in the CoijmianyV at1':ii|M owin:r •" 'he mninccDHMful result of the appeal which was made to the inunicipalitieH for assistance^. The Directors Would call your atteiitij'n (o the liici that this t.'onipany have been placed at a special di.sadvantatte, in the HKieeinonf referrenuses which were ezpeuted from the municipalitjek not liavini' Imen vote.l^. It was hopeil that hy the 'franij Trunk Company taking over our Line, the gnttin!,' of tint honuses would have been Krejf{ly facilitated. The Directors, in that heliof accepted a less amount from your Conip'inv than thtty would othervvisc^ havo done, thus giving up to your Company a eonsidorr all parties that the work of uhanging the guage and leconstructing the Railway shall be done by the Toronto Grey & Bruce Railway Company, and it is their intention therefore, at once, to proceed with -such work as the season will permit. • The Directora will be glad to have your views on this subject, and have directed me to ask that you will kindly favor them with an early reply. . ■ * yl am, : ' - ^ \ Dear Sir, ■ , . Yours truly, > - W. SUTHERLAND TAYLOB, ' • ' , • Secretary-Treawrer. ' I '■ ■ ■ ,/ .■". ■ B. ' ' , ' ■ . January 25tb, 1882. DlAR»B, V • I received your letter (without date) this niorning,.lin. .which you advisb^-fiie that th« Directors of the Toronto Grey & Bruce Company uonsider that tliibir company is not irt a position to fultil the terms of the agreement entered into betWeen it and the Grand Jrunk Compauy. Tho.gitounds uprm me are : — 1st. ■ " On account of the fact that your Compimy (meaning the Grand Trunk) desires the " carrying out of extra works in bridging, balliisting and increasethweight of rails, which were not " originally contemplated by the Toronto Grey and Bruc/^ ('ompanyX ' 2nd. V Because of the inerdased price of steel rails.!' \ 3rd- "\Tbe change which has taken place In the Company's affaii-s oWing to the unsuccesstUl " results of -the appeal made to the munksipalitics for assistance." ¥OU^ AJiW aMMAHK THAtAt-WAH Hi^F fa'D TttA f-BY TttK GHAMO THt^NK COMPANY Taking over the Toronto grey * bbuce line, the getting of '^'v. K ■XMT'it •:./V /vv ■i ! 1*' y (f 12 TIIK »(f!l|tSKS WOULh irAVK nRKXiMMUTM' KACII.ITATI-.li M BKMFVK |*\M cuiMjKfi' i\ ah.si;mi.\<; that tukOni.y honctsks wiiini iiavk ukkv oit TAINKtt IIAVK- I{i:i;.V (^T ()\ TIM". (H)NI)ITI<>N TllAT TIIK «i|{AM» TIM'NK 1:t HM^^M VirCKD ToNVAUDs an K.XTKVSIiiN (IK TIIK J.IXK * - , • , I ivisli I.I riMiiiiiil yonc |{..,inl in iv.j.iiM i,. tlio tir-ii i-enHon .•H^ii,'iic-.| i;.r alMii.l.Miigy tin- .iijrM.--
  • IH), whi.li i- not r:ill,^l r,,r l,y ||„, tri i,h ..| i|;.> :if;i-.i.MR)iil, :iii,| :i , I |i:,vi- :iliv;|.|i l,',.| ,„-,.,Mioi, I.. e.V].liiiii M-il.:ill\, 111,. Coiii],iiiiy liai I.e.Mi. iiii.l i> now, (iilit« willihi; lo«ubinil ;iiiy i|n.-.iions ;ffi,inj,'- nnilcr llmllu'ini, to ailiitralion us inovi'iloil lor in Ilu- aji peiniitle.1 1^. ruin.n U tinil tlir |.iir,, ol ilif m™I vMh in not uAutteA \>y thu w,.i'l. Iieiiij; 4me' uim^' the aijreomifhl, or oiiNi.li) ol aii.l a|iarl from it. , '' , ^ Tlifn witli^r|-s|..Mi lo tho a|i)ifal to tho niiiiii('i|mlitios iWr ai.l. I am jiiHlilinI in sayiniJ^al ili« (■rami Trunk Coj|i|.any has ilori,. all it coiil.l rd.isonal.ly lii! uxpoclu.! to ,lo nmlrr ihc rirriSbn.'.-s, miU wliilsi I nni.h r.-sjr.M tin' r.-siilH liav.* noi U-.-ti iiion^ r.itjrslactory, I am lairn it srtjjt^r^" ulU'gi-a thai Ihu wani ot sii,(vss i, in any way to I,.- atlrilmteil to u lailniu on this fait ofllio firaW Trunk Co«i|iany to I'nilil iN oMinations uiiHer the 1 .ntrmt. 1 dcrtiro to rcmlnfrToiir HoanI thai iimler the ^^ Chiiiae ol' tho a4ns and sfhcdiilns anncxod ili.,iet.>,-lh() T( " ('oKipany -(111111 -uiovidc the hoicssaiy amount in mlilition, hiit if any ilisjiiiitu arises as tol " works, or inateriiff or lioih are r,.|uirod to romplefv the whole as contemplalod, the same rfhal .' iiscertained and tixed hy the said Kn^'iiieer so to U- appointe.l under this .hiuse. and tl._ .. '• (iianil Trunk (;ornpany shall do the wiid Work and prf.vido thu said n alerials, churgiii.r imly U '• HCtllal eost of so doinj,'." " " .» I wish tosiiy that the liraud Trunk C.impuny has been, and is .[uite willing to eomply with theeondition*of the atfieemont which p.rovijf that it shall cany out the work of chaniring the guageof tho line, and pultiiif; tho same into p)<)l*r. repair, pcovid'e'd the Toroni.. ('.^nipany are prepared to Hiid tho noces.sary funds to pay for the work to he done, in lernis. of tho extract from •the agreement which I have >u»t quoted. ' ,' / , , . I have been led to make these remaiks from a desire to giuird" against its being su^ipo^ed that the iJranrt Trunk Company ha.s madeany demands in rcganl to the condition in which the lino is to be put, which are no! strictly in coiiforiutiV with llTe agreement, or that tJicro has been on the part of the (iraiid Trunk Company any hesiialion about carrying out .its conditions. I will Hubmii to the Dirctors of the (iraml Trunk C the Toronto Grey and Bruce Com- pany of $100,(100 and a larger poiconlago i>f the gros.s receipt*- " ■ At the same lime I veiiftrie to remark that it seems to me the, agreement should, under any circuiusta;ices. be submitted to a meeting of the holders ol the securities ot tl'ie Toroiito tirey and Bruce (.'ompany eutilled to vote on the question of whether it is, or is not, lo bo carried 01,1 i I am, Dear Sir, Yours truly. W. ^. Taylor, Ksg., _ Secretary ■■:./<,i «' ■ ■ji '.-;., * ■ Vi J ■ yy • ,.. ^■, . % ^ ' ':'t V ''*<.■':"■ f .- ■'■■^ ''a' ,, '-r 1 ^ • ■' .* "> ' .■!^<€S*> ■,^: ^^r .■S-^.':- f. :'■ ■ ..■■<-'^- >'; '\^: e ■ - ■• 18 ■ ■■ " Th« Toronto, Gbit & Bruob Rait.wat, Skoritabt a Tbiasurer's OrFicE, Toronto, 29th January, 1881. Dear Sib, ^ ^ acknowledge receipt of your letter of -5th i.iKlant. I shall duly lay the «ame before the Director, of thi« (-Jompany at au early date, and eommun .^ cate to you their reply. ,, .«•„.„• i Bri Corn^ny, to «h6w that they were thereby then.«elves unable to carry out the tern.« oi the airreement as it at present stands. " . I am, dear Sir, Yom-s truly, W. SUTHERLAND TAYLORf Secretary and Treasmer. JoasPB HioKsoN, Esq., '' General Manager, Grand Trunk Railway Company, - UONTBBAL. • ' - ;- -. ■ D, ^ . Bep^t^f the scrutineer. a,poM to take the votes "' f^^f/ ^{ f^^f "''"'''' Grey dc Br,^e proprietors, hdJ ih Ton.nto on the 'M day of Jane, 1881. After about four hours occupied in takiag. the votes, the scrutineers reported " ^Zljeer^ H.l .hat the ..a, -^er ..f s,^. w..,. v,...l ^^J^:;;: ^ ^^ "^ tL^riS^b^^ ' gi -it h;^ u,anner «. in provi.led n.r ,ho r.giHtrati„n of .,r.l,nary ' w!I . md that UlU of HMoh bondholders, a. handed to the Hcrutineor,. lor ,h.« votu.g, corUhed t 7jt he Srtt Treasurer, is the eviden... th.y have of a compliance with .be rcquue- th.s day b> t''« ^" '«' ' > ;;;; , .,,,„„„ ,,„,.„.., i,„ ,,,„, ,„■ i,.,. bo,.ds .ende,od because they d., ,„«„„ of the «<" « «. -^ 1^; J; .^^^ t„„ ,i,i ,, U.0 So.ret«ry.Trea.uror as correct, a.ul dtirratt:;;t\ldecidXr^^^^^ - document, bopks or statements the correctness of such list. ^ E. TORONTO,- GREY k BRUCE HAILWAlf. VOTICK is hereby given that an application will be made to the Parliament of Canada, at its „eZ™'^ "S Llaring the into t..y ^^ r:-^:"!":^; • tfie general advantage of (Janada, au.l also to amend the ««v^''''' A^''' " * ^^..„,,,„^^w increase ^ .^«d1v.r..rther,..,ernu.tlu. issue of ';>^:^^:'':r^trt^^^ V^^^.o^a.^hapter their b.mded.lebt. and lor the repeal ol socio, tw Ive o «» ^ ^ ,h»p,,rposolhereiM sixtysix (Onlario), providing for .he »I>17"^";r''\; .' Z'/^;; '^ ^ X:i,Lg for rt.I- election of „.entioncd, and also to repeal .he eeven.eenU. sec .on J '' ^ \;^ ,.' ' It; cm/ .,/.. to.re,.a< „ director by certain municipalities .he..... ^^^^'^'^^'^X^T V^U rk.pier .*««W«r the last provim m th. lourteenth .,<.<•«».« o/ 'J^ .^"^^ ^J^,,, ,,,,,„r ..uilw-fy com^n^MR for ^ SoUeitort for Applicmti. Dated»tH»mUU)n, the 28th d»y of December, 1881. , %>■ Il*' -""^ i*f