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§\

PB]

A HISTORY

if!
t

or THl

§xmi Cranti llailtoas d Canata,

COMPILED FROM PUBLIC DOCUMENTS.

BY THOMAS STORROW BROWN.

PBINVED FOR IHB AUTHOR, BT HUNTER, ROSl * 00., ST. UBSULB STREET.

1864.

i.) 'k

.& M

/- 5/ /J

THE

GRAND TRUNK RAILWAY

OF" CA.lSrA.DA.

* A HISTORY of the Grand Trunk Railway . of Canada, from its inception, when Mr.
Francis Hiucks played Faust to the Mephistophelcs of Mr. William Jackson, is required
for the use of the present generation. The raal directing " Satan" of the enterprise is not
K> apparent, but possibly our financial agents in London, Messrs. Baring, Brothers & Co.,
ind Glyn, Mills & Co., with the contractors, Messrs. Peto, Brassey, Betts (and Jackson),
ileld the commission on joint account, for Mr. Hincks, in his celebrated ultimatum to Sir
Jtohn Pakington, admits the supreme influence of certain "eminent capitalists;" and as
lihese alone appear prominent in the drama, we may assume them to be the gentlemen
entitled to such honorable mention.

A sketch of our earlier railway legislation may be excused as a fitting introduction.
While our neighbors, deficient in inland water routes, were devising railway lines up
to our very borders, the attention of the people of Canada was first called to the improvement
<]jf our magnificent lake and river navigation, which, running from one end of the Province
' t6 the other, and in few places far distant from remote settlements, created in itself a
imtural " opening" to the country and grand highway to the ocean, that no railroad could
equal. It was premature to think of routes ruauing perpendicular tc the water-line; and
i| run parallel, they were only absolutely required in winter, when there was, at that day,
little movement of freight or passengers. Canada could hardly havo been charged with
t|ant of public spirit, or its people with iuertion, if, after completing at great cost the
blest river improvements in the world, we did not immediately set about running a
ilroad beside them, to crmpete for and divide the traffic. We could afford to wait for
[evftlopments. • • .'

A wise and cautious policy characterized our first General Kailway Act. (12 Yio.,
!ap. 29, 1849.) It declared, in principle, that government encouragement was best
tended by aid to private corporations, so ordered that the enterprise might be fostered
thout stimulating inordinate speculation. Therefore, when any parties had expended
on a road, forming part of a main trunk line commenced upon their own resources,
e-half of the amount required for its constructiqn, government would ensure the success
their undertakiog by a guarantee of ioterest on loans raised to complete the other half;

BISTORT or TBI

tftking as seourity a first mortgage upon the whole. Neither intrrfcrcnce nor managomei^t
by the Province was contemplated; the control \ran to bo entirely iu Iinporinl or private
hands. ShouM the British Government construct thn intorcoloniul road l'rr)m Quebec to
Halifax, Canada would pay an annual sum of £20,000, with a grant of ull thu uuconccded
land of the province within ten miles on either side of the road.* Our ouly railroadM
then were from Laprairie to St Johns, lb ii^iles, opened in 1836; and from Longut-uil to
St. Hyacinthe, 30 miles, opened in 1849.

At this period the intercolonial railroad as a grand highway tu a winter Heiiport in
British waters was a continued theme of discussion among the people of the provinces, and
occupied the serious consideration of their respective governments. 1'hcrc was already in
progress a road from Montreal to Portland, whern those below who mado natioual iu'erests
subordinate to commercial interests were willing to meet us; but with others there was a
strong desire for a road through British territory. Correspondence ensued between the
three provinces and the Imperial Government, and Major Robinson — sent out in 1848 for

• Title of the Act referred to (12 Vic, Cap. 29) : 'J'o provide for ajfording the nuarantve of the
Province to the Bonds of Railway Companies on certain conditions, ami Jor rendering assistance in the
construction of the Halifax and Quebec Railway. The guarantee of tlie bonds of railway coinpauies is
comprthended in the 1st section.

" Whereas, at the present day, the means of rapid and easy communication by railway, between
the chief centres of population and trade in nny country and the more remote parts tliereof, are
become not merely iidvantHgeous, but essential to its advancement and prosperity ; tind whereas
experience has shown, that whatever be the case in long settled, populous and wealthy countries, in
those which are new and thinly peopled, and in which capital is scarce, the ai<8istaiice of government
is necessary, and may be safdy atfurded to the construction of lines of railway of considerable
extent; and that such assistance is best given by extending lo companies eiigagud in constructing
railways of a certain length, under charter from, and consequently with the approval of, the legis-
Iitturc, the benefit of the guarantee of the government, under proper conditions and restrictions, for
loans raiseii by such companies to enable them to complete their work: Be it therefore enacted, kc ,
&c. Thxt it shall be hi wful for the Governor in Council, on hehalf of this Province, to guarantee
the interest on loans to be raised by nny company charteied by the Legislature of this Province for
tlje construction of a line of railway not less than seventy-five miles in extent, within tliis Province,
on condition, — that the rate of interest guaranteed shall lot exceed six per cent, per annum, —that
the sum on which interest shall be so guaranteed shall not be greater than that expended by the
company before the guarantee is given, and shall be sufficient to complete their road in a fitting
manner, and to the satisfaction of the Commissioners of Public Wurivs; provided always, (hat no
such guarantee be given to any company until one-half of the entire line of road shall have been
com[leted,— that the payment of the interest guaranteed by the Province shall bo the first charge
upon the tolls and profits of the company, and that no dividend shall be declared so long as any part
of the said interest remains unpaid, — that S9 long as any part of the principal on which interest is
guaranteed by tiie Province remains unpaid, no dividend shall be paid to the stockholders until a sum
equal to thiee per cent, on the amount so remaining unpaid shall have been .set aside foom the surplus
profits of such railroad, and paid over to the Receiver (}cneral, und*>r the provisions hereinafter
contained, as \ sinking fund for the redemption of the debt on which iRfa|f est is guaranteed as afore-
said, — and that the Province shall have the first hypothec, mortgage and lien upon the road, tolls and
property of the company, for any sum paid or guarant'ed by the Province, e.\ce|.ting always the
hypothec, mortgage or lien of holders of bonds or other securities on which interest is guaranteed by
the Province, for the interest so guaranteed and the principal on which it shall accrue."

Tiie provisions respecting the aid to the Quebec and Halifax Railway arc as follows :

" And whereas the proposed railway between Halifax and Quebec will be a great national work,
linking together the several portions of the British Empire on Die continent of North America, and
facilitating the adoption of an extensive, wholesome and effective system of emigration and coloni-
zation, and it is right that Canada should render such assistance as her means will admit of tuwaids
the accomplishment of a work so important and promising results so beneficial : lie it therefore
enacted, That if Her Majesty's Government shall undertake the construction of the said railway, either
directly or through the rnstrumentality of a private company, it .shall be lawful for the Governor in
Council, on behalf of this I'rovince, to undertake to pay yearly, in proportion as the wotk advances,
a sum not exceeding twenty thouji nd pounds sterling towards making good the deficiency (if any)
in the income from the railway, to meet the interest of the sum expended upon it, and to place at the
disposal of the Imperial Government all the ungranted lands within the Province lying on the line of
the railway to the extent of ten miles on each side thereof, and to undertake to obtain, pay for and
place at the disposal of the Imperial Government all the land required within the Province for the
use of the railway, and for proper stations ani) termini,"

ORAND TRUNK RAILWAY.

Dagomeqt
or private
Quebec to
conceded
railroadM
^ui'uil to

otiport in
noes, and

Iready in
interests

ero was a

ween the
1848 for

ntee of the
nee in the
iDpauiea ia

f, between
lereof, are
whereas
iintries, in
overnment
nsiderable
nstructing

the legis-
[ctions, fur
acted, &c ,
guarantee
ovince for
Province,
um, — that
eil by the
in a fitting
8, Chat no
jiive been
St charge

any part
ntcrest is
II til a sum
lie surplus
creiiiafter

as afore-

tulls and
ways the
iriteed by

nal work,
L-rica, and
d coloni-
f towards
therefore
ay, either
vernor in
idvances,
r (if any)
:e at the
e line of
y for and
:e for the

the purpose — surveyed a northern line through New Brunflwick, 635 miles in length, from
Halifax to Quebec, which, at his c-timate, would cost £5,000,000 for its completion.

Hero the quoHtion ronuiiued in abeyance, till Mr. Howe, a member of the Nova Scutia
administration, proceeded in 1850 to liondon, to procure Imperial railway aid, including
a line from Halifax to Portland, which proposition, Karl (xrey, then colonial secretary, very
naturally declined; but nevertheless signified his readiness to favor an intercolonial road,
running upon the line of Major Robinson's survey. Elated with this partial success, Mr.
Howe returned home to urge upon the three provincial governments an immediate acquies-
cence to the design of the Colonial Secretary, which was assumed to be an Imperial loan or
guarantee on £7,000,000 sterling of provincial securities, and an undefined something more,
an interpretation that was not disturbed by a despatch from his lordship in tho month of
March following, to the Gjvernor General of Canada, announcing the conditions on which
he would recommend to parliament an advance of the Imperial credit, to enable the pro-
vinces to raise on easy terms of interest the funds required.

This dazzling prospect threw new light upon our mercurial Mr. Hincks, who, assuming
without other authority than his own imiigination, that £4,000,000 sterling would be ihe
allotment for Canada, with no exact determination as to line of route, introduced to parlia-
ment the act of 1851, known to our sorrow for its progeny of debentures as 14 & 15 Vic,
Cap. 73, — which being contradictory to it, made in part waste paper of the act of 1849.
At that date, experience had proved that government aid was best given by assistance to
chartered companies in control of their own affairs. Now, when introducing this bill, 8th
August, 1851, Mr. Hincks said: ** Ho believed that the experience of other countries
warranted the conclusion that the best method of constructing and managing railroads was
by placing them under the control of the state. In Belgium, the railroads were entirely
the property of the state, and their management was unquestionably the best with which
he was acquainted, and he, therefore, proposed to apply this principle to this Province."
More perceptive than reflective or profound, this great "Financier" was often u convert
to the last speaker.

Next, with his usual readiness at figures, the most deceptive instruments that man
ever handles, he proved conclusively to parliamentary arithmeticians that £4,000,000 stg.
would complete both our share of the intercolonial road and its extension to Toronto. The
" Financier," who " did not desire to go too low," thus established his position : —

" Mr. Keeffer's estimate for that portion between Toronto and Kingston was £4,500
per mi'.e, and from Kingston to Montreal ,€5,000 per mile. Taking the average at £5,000
per nnle — a very safe estimate — the whole would amount to £1,900,000. Hedid not desire
to go too low, and therefore, called the estimate from Melbourne to Quebec £ .),000, — for
ninety-fiv:> miles, £570,000 ; to which must be added one-third of the line between Quebec
and Halifax, which he estimated at £7,00i), making the whole £3,338,000 — or say, in
round numbers, £4,000,000."

The Act 14 & 15 Vic., Cap. 73, provided for three eventualities. Ist. The construc-
tion of an intercolonial road from Halifax to Quebec, in conjunction with New IJrunswiok
and Nova Scotia, on a loan under Imperial guarantee or funds advanced by the British
Government ; ungranted lands within the province for ten miles on either side of the road
being placed at the disposal of the Governor in furtlterance of the project. 2nd. That if
the Imperial guarantee be obtained, the road shall be continued as part of the main trunk

niSTORT or THS.

to Hamilton, or some other conycnicnt point on the Groat Western Railway, with thin fund ;
but if the guarantee should not bo obtained, or if the fund should not bo sufficient for the
whole undertaking, then the road might be conBtructcd conjointly by the province and
municipal corporations, who should HubHcribo for half the cost, the whole to be comploted
and nianngod as a provincial public work. 8rd. If neither of these projects proved practic-
able, falling back upon the principle of the act of 1849, the works might be undertaken by
chartered compauios, which would be entitled to the provincial aid in a guarantee now
extended from the interest to the principal on loans amounting to one half of their cost.
This advance was to be granted to complete what had been at first one half constructed by
private outlay, as proved to the satisfaction of the Board of Railway Commissioners ; and
further, " as the best means of sustaining the credit of the province," there should hereafter
be no provincial aid extended to any railway, in addition to that required for the purposes
of this act, except in completion of engagements to the Great Western, the Ontario,
Simcoe and Huron (or Northern), and the St. Lawrence and Atlantic roads, which were
already going forward on the faith of previous enactments. *

• The Act of 1851 (14 & 15 Vic, Cap. 73) is intituled; "An Jet to make provition for the conitruc-
''tion of a Main T)-unk Line of Railway throughout the whole length of this Province.'' The 1st section
declares that :

"Whereas it 18 of the highest importance to the progress and welfare of this Province that a
Main Trunk Line of Railway should be mad(< throughout the length thereof, and from tho eastern
frontier thereof, through the Provinces of New Brunswick and Nova Scotia, to the city and port of
Halilax ; and it is therefore expedient that every e£fort should be made to ensure the construction of
such railway, whilst as an act of justice to those who have advanced their money upon Provincial
securities, and as the best means of sustaining the credit of the Province, and of readily commanding
such further pecuniary assistince as may from time to time become necessary for great provincial
works of internal communication, it is expedient that the Provincial Parliament should pledge itself
not to allow the public debt and liabilities of the Province to be increased, except in the cases and
undtr the conditions hereinafter mentioned.— It therefore enacts, that excepting only as regards such
loans ns may be rallied for the purposes of this Act, under the authority and guarantee of the Parlia-
ment of the United Kingdom, and as regards the guarnntee of the Province under Act 12 Vic, cap. 29,
for interest only on debentures issued or to bo issued by the St. Lawrence and Atlantic, the Great
Western, or ths Ontario, Simcoe and Huron Railway Cos., the Provincial Parliament will not hereafter
authorize the increase of the public debt and liabilities of this Province without the consent of the
agents, through whom loans may have been negotiated in England, or the previous offer to pay off all
debentures then outstanding."

Section 20. " And be it enacted, that the said guarantee shjill not be given with regard to any
railway or section until the said Board shall have reported to the Governor in Oouncil that the land
for the whole railway or section has been acquired and paid for, that a part of the work thereon has
been completed to their satisfaction, and that the fair cost of the part so completed, including the fair
cost of the land and of all materials then procured by, and the property of, the company (and not
merely the sura thi' company may have actually expended upon the same), would not be less than the
cost of the part remaining to be done, according to an estimate made upon tenders received and ap-
proved by the company and by the said Board as fair and reasonable, and in which case the guarantee
of the Province may be granted for the sum necessary to complete such remaining part of the work,
according to sueb estimate ; and generally it shall be the duty of the said Board to obtain aud report
to the Governor all such information, and to do all such things as may be necessary to ensure the
faithful execution of tSe said Act and of this Act, and and any duty assigned to the Gummissiouers of
Public Works by the said Act shall hereafter be performed by the said Board.'

Section 22. — " That tlie said guarantee may, as regards those companies whose railways will form
part of the said main trunk line, and upon such conditions as the Governor in Council shall think fit,
be extended to the payment of the principal of the sum guaranteed, as well as to the payment of the
interest thereon ; provided the bonds guaranteed are made payable at periods previously approved by
the Governor in Council, or in his discretion. Provincial debentures for the amount to be guaranteed,
or any part thereof, may b« delivered to the company in exchange for their bonds, for like sums, and
the principal and interest whereof shall be made payable at like periods, or at such others as may be
agreed upon ; and for the principal aud interest of such bonds, the Province shall have the same pri-
ority of hypothec, mortgage and lien upon the railway, tolls and property of the company, as by the
said Act is given for sums paid or guaranteed by the Province, and subject to the same piovisions,
and the said guarantee may be given either at once for the whole sum to be raised by the company,
or from time to time, and by portions, as the same shall be required fur carrying on the workB|
According to tbo term *nd coaditioni wbUb gbaU b»Te b«90 mA4« in tbat beb«lf.''

GRAND TRUNK RAILWAY.

nd;
tho
and

}tcd
tie-
by
now

B08t.

by
and
fter

0SC8

Besponsibility to Parliament being then deemed n reality, it wan required that all
moneys expended under tho authority of tho Act uhould be nccountnd for lu tliitt body
within fourteen dayH after tho opening of tho flucceoding HOHHion.

Though thus by legislation prepared for any fate, diMJunotivo idoiiH became appuri>nl
in the oonjunotive olements of our grand design. Canada proposed to niuot Nova Scotiai
through Now Brunswick ; New Brunswick disdained any project that did not include n
line to Portland; and Earl Grey oould not discover anything intercolonial in this foreign
connection. To harmonize these discordances, our Inspector Qoneral, Receiver General,
and Commissioner of Public Works, visited the Lower Provinces, and united with their
respective organs in assenting to some new line, undetermined, except that it should not
be on the route traced by Major Robinson, but which might be equally aecopttible to Kar
Grey.

This arrangement necessitated a new embassy to London. Early in isr)2, . xr. Hincks
and Mr. Chandler, as representatives of their respective provinces, proceeded on their uiis-
sion, to bo followed by Mr. Howe, of Nova Scotia; and on the 30th April obtiiiued an inter-
view with the Earl of Derby, then Premier, whose gracious reception is thus announced in
a letter from the Canadian ambassador to his colleagues in tho ministry : —

« We were given to understand by His Lordship that ho would examine tho various
papers on the subject of the British American Railway, and that he would see us again on
the arrival of Mr. Howe, of Nova Sootia. 1 left his lordship, in tho confident hope that
I should receive an early communication of the intentions of Her Majesty's Government."
Mr. Chandler also communicated to New Brunswick his favorable impressions of the inter-
view.

It were to be hoped tho dates upon official record are erroneous ; but as they stand
recorded, on the very next day, Mr. Hincks, without new advice from Canada, or waiting
for Mr. Howe, assuming the dictatorship absolute of all our designs and interests, threw
overboard the intercolonial railway — about which we are, as a oonsequeuoe, still battling,
and thus addressed his menacing ultimatum to Sir John PakingbOn, the new Colonial Sec-
retary, who, in consideration of pending elections, consequent upon the recent change of
ministry, might have been favored with a missive less peremptory. Moreover, it would
appear rather post-prandial, or, in the vernacular, " afler dinner" than business-like; to break
off an interprovincial negotiation, in which he was but one party, merely because it seemed
to him " far from improbable that on some ground or other" it would prove a failure.

" It seems to me far from improbable, that, on some ground or other, this negotiation
will prove a failure. If so, it is of the utmost importance to Canada that the fact should
be known as soon as possible. I have reason to believe that I can effect arrangements on
the spot with eminent capitalists, to construct all the railroads necessary for Canada with
our own unaided credit. I have, likewise, reason to thiak that the European line from
Halifax to the frontier of Maine can be constructed by the unaided credit of Nova Sootia
and New Brunswick. I therefore most respectfully request of you, sir, that you may give
me a final answer by the 15th instant ; and I must add, that if Her Majesty's Government
are unable, either from wan'' of time or from the necessity of consulting Parliament, to
come to a decision by that period, I must beg it to be understood that Canada withdraws
from the present negotiation : and that I shall deem it my duty to ent«r into arrangements,
which, if confirmed — as I believe they will be, by the government and legislature — will
put it out of the power of the Province to negotiate on the present basis."

Mr. Hinoks was deep read in the book-learning of the school of financial prophets.

He waa himself a " financier" of a olasa that; one after another, are elevated for a few dajg

HISTORY Of THB

to high ronown by raining tho largeat sum of money in tho shortcnt time, regardlesii of
present saorifioe or future conscquenocN. Tho multitude are only duzzlud by the treaburo,
or profit by its hasty expenditure. The few wlio can underHtand or appreciate the process are
stoned if they dare at tho time give boncnt utterance. IliH position oh our finance minister
brought him in contact with "eminent eapitalistH /' through tho very diHintorcsted assi-
duity of Mr. William Jackson, he was introduced to '' eminent contractors." No simple
boy becoming of ago, with a large patrimony to draw upon, wuh over more courted by a set
of sobomerH. A large provinoo with a small existing debt, was truly " game." Ho had
gone to England to secure £7,000,000 .ttcrling, at 3^ per cent, interest, fur the great
national purpose of completing a railway from Halifax to tho Detroit river ; he had been
favorably received by the Earl of Derby; Mr. Chandler was satisfied; Mr. Howe had not
arrived ; but yet he breaks away on the ground of a mere " it seems to me," and hurries
home, driven by the big hurley Mr. Jackson, to do his bidding in abrogating every safe
principle of government liability couseerated by previous railway legislation, and intro-
ducing the wild anomaly of virtually granting charters to contractors for the construction
of railways, with their own prices attached, these contractors undertaking, in consideration
of a "bait" in the shape of a provincial guarantee of X3000 sterling per mile, to find
shareholders, who would furnish the remainder.'**

This came out within a few months. The published correspondence of 20th May,
between Mr. Jackson and Mr. Hinoks, relates particularly to the road from Montreal to
Hamilton, but it shews how completely tho "Inspector General of Canada" had com-
mitted the Provinoo to his new acquaintances, [t was only afterwards that Mr. Jackson
discovered the more extended field of speculation in which he could use his con "Anient
instrument, the plastio minister.f

thus spa

"I
of the Bt
tions of
construe
stances 1

Bui

nors" y

bonds 9t '
the laid c
bj the iis
bearing si

Thin
oDgineers
the neceii
oompletio
construct
Canada, a
such tend
amount d
property «
trarelling

Foun
authorizet
necesspry,
and the pi
plans, sba

Fifthi
company i

Ifyoi
mcntionec
sent out

• Extract from retolutiont of Railway Committee — Sir A. M'Nab, Chairman — 18^A Oct., 1862.

"Ho [Mr. Hiricks], on the part of government, entered into fresh negotiations with Mr, Jaclcson,
acting on behalf of tho eminent British contractors, the result of which was nn agreement on Mr.
Jackson's part that the firm would contract the whole line at tho price fixed, and be responsible for
taking the whole stock of the company, on obtaining the government guarantee, fur the sum of j£3000
sterling per mile."

Mr. Hincks, in a letter addressed to the committee, says—

" On that very day Mr. Jackson had agreed to be responsible that the whole stock should be taken,
and that he and his partners would construct the road, taking tho bonds of the Province for £3000
sterling per mile, and raising all the rest of the funds."

These remarks more particularly related to the road from Montreal to Toronto, but were under-
stood to apply to dl, Mr. Hincks adding, " I think it now quite practicable to secure the entire line to
Halifax with very little cost to the province."

f fYom Honorable F. Hincka to William Jackson, Esquire.

MoBLev's Hotel, London, 20th May, 1862.

Sin, — Having reference to our several personal communications, I now beg to submit, in writing,
the arrangements under which it appears to me that the Grand Trunk line of railroad between
Montreal and Hamilton can be constructed.

Firstly. — I understand that certain parties, including Mr. Peto, M.P., Mr. Braasey, Mr. Betts, and
yourself, are prepared to construct the above mentioned railway, estimatin'T their profits in doing so
on the same scale as they hare estimated them in their contracts for various lines of railway in England
and on the continent of E' ope.

Secondly.- -U the teruii of such contract be agreed to, I propo>»o that the funds necessary foe the
construction of the line should be raised in the following manner, viz. : one-tenth of the amount shall
be taken by the contractors in stock of the company, and credit given for the same in the account for
constr otion ; one-tenth shall be taken in stock by private individuals in Canada, or by municipal
corporations, or by the Ooverument of C.tnaila. in case such stocks should be subscribed for by
government or by corporations, their bonds, at twenty years' date, bearing six per cent, interest, to be
taken at par by the said.contractors. Three-tenths of the amount shall be provided by the issue of (be

W. Jaoxb<

Sin,-
associatec
Hamilton,

Firstl
of the con
with ua.

Secon
them to C(
States, an
company i

I will
forthwith

Honorable

SlR,-

Peto, Bra
the terms i
objection ^
tiated by ]
whom the

(lEUTD TRUNl SAILWAT. f

When parltamont usembled in Augoat 1852, Lord Elgin, in his opening apoooh,

thua apoko :

" I Bhall cause auoh doounii nta to bo laid before you aa will put vou fully in poHscsflion
of the stops which I havo taken during the recess, with intent ff giving effect to the inton>
tions of tho Legislature embodied in the Acts paaaed last aession for promoting the
construction of railways. I have endeavoured in thuse proceedings to act, so far as circum-
Htanoes havo permitted, in concert with the Lieutenant Governors of the lower provinces."

But, novcrthelesB, both " the Acts paspcd last soanion " and " the Lieutenant Gover-
nors" were unceremoniously thrown overboard. Jackson, with his whipper-in, Mr.

bondi cf the company, beariof^ six per cent, interest, nnd payable twenty veari after date, which bonds
the laid contractors will take in payment at par. The remaining one-half of the amoant to be raited
by the issue of the bonds of the company or companies, guaranteed by the Province of Canada, nnd
bearing six pnr cent., under the terms of the Canadian Railway Guarantee Act,

Thirdly, — The f aid contractors shall send out, with as little delay as possible, to Canada, competent
engineers to examine the surveys of tho line already made, to eomplete them if deficient, and to prepare
the necessary working plans and estimates of the cost of construction of the whole line. On the
completion of the estimates, they, together with the plans, shall be submittted with a tender for the
construction of the works to two engineers, one to be appointed by the Railway Commissioners of
Canada, and one by the contractors; and in case either or both of such engineers should decide that
such tender is too high, and that the said contractors shall be unwilling to reduce the same to an
amount deemed reasonable by such engineer or engineers, then the said plans shall become the
^ikoperty of the company, who shall pay, on delivery of the snme, such expenses, including the cost of
travelling, as the s>iid engineers shall deem reasonable.

Fourthly. — In the event of the contract being agreed upon, the Railway Commissioners shall bo
authorized to employ, at the cost of the company, such superintending engineers as they may think
necessciy, with a view to the interests of the government and company, at the cost of the company,
and the preliminary charges already iuourred on behalf of the company, in engineering nnd obtaining
plans, shall be charged as part of the cost of the road.

Fifthly. — It is understood that the cost of land shall be paid out of tho portion of the stock of the
company subscribed for by individuals or municipalitie.<i, or the Qovernment of Canada,

If you and your friends are disposed to construct the Trunk Koad in Canada on ttie terms above
mentioned, T am prepared, on behalf of the Government of Canada, to agree to the engineers being
sent out with as little delay as possible.

I am, sir, your obedient servant,

(Signed) F, Hinoks,

Inspector General of Canada.
W. Jacxson, Esq., M.P.,

&c.

ice, Ac.

From William Jackion, Eiquirt, to Honorable F. Uinckt,

London, 20th May, 1852.
Sir, — On behalf of Messrs. Peto, Brassey, Betts, and myself, nnd any other parties who may be
associated with us, I agree to your proposals for the construction of a railway from Montreal to
Hamilton, contained in your letter to me of this day's date, subject to the following modifications:

firstly. — That direct Government bonds, five-tenths (5-lOths) of the capital shall be given in lien
of the company's bonds guaranteed by the Government. The option of taking one or the other to rest
with us.

Secondly. — That the bonds of the company shall bear seven per cent int ast, so as to enable
them to compete in the money market #ith similar bonds issued by railway corpo. .Uions in the United
States, and which are now offering in the market. We shall be prepared to pass to the credit of the
company any surplus which these seven per cent, bonds may produce beyond par.

I will write by to-morrow's mail to Mr. Koss, and give him tho requisite instructions to proceed
forthwith with the survey.

Yours truly,

(Signed) W, Jaouor.

Honorable F. Hinoks,

Morley's Hotel.

From the Honorable F. Hinckt to William Jackton, Etquire.

London, 20th May, 1852,

Sib, — I have to acknowledge the receipt of your letter of this day, agreeing, on behalf of Messrs,

Peto, Brassey, Betts, And yourself, to construct the Montreal and Hamilton Riailway in Canada, on

the terms suggested in my letter of this day's date, with certain modifications. I am certain that no

lobjection will be made to the issue of direct bonds of the Government, provided such bonds are nego-

iated by Messrs. Baring, Brothers A Co., and Messrs, Glyn, Mills A Co,, the agents «f the Province, to

horn the Canadian Qovernment is bound not to allow its bonds to be issued through other parties.

BISTORT OF TBI

Hinokb, drove members of parliament like a flock of sheep, to hurry through, iu the first
days of November, without many usual references or forms, three Acts, known ns 16 Vic.,
Caps. 37, 38, and 39.

The first provided for a road from Montreal to Toronto, to be called the " Grand |
Trunk Bailway of Canada;" the second for a road from opposite Quebec to Trois Pistoles,
to be called the '* Grand Trunk Railway of Canada East;" and the third for the amal-
gamation of as many lines iu Canada, forming part of tho main trunk line, as migi.t choose
to unite together, the whole being in reality one act ia substance, and preliminary to a yet
hidden scheme for conoolidaling our principal railvrays :iito one irresponsible monopoly.

The provin ial guarantee was fixed at £3000 per mile, in debentures of the l^rovince
having twcnty-fivo years to run, for the interest on which and payment at maturity the
companies were to provide, the proceeds being advanced to them, at the rate of forly per
cent, on their expenditure, as the work progressed.* Chapter 37 granted one million of

1 do not apprehend that any difficulty v\l\ be raised to the second proposal witli reference to the rate
of interest, it being understood that it' the six per cent, bonds can be negotiated at pnv, you will
endearour to do so. With rcferenro to another point mentioned in corrersation, I beg to say that if
no companies be formed, or if any difficulty should occur with Ihcra, the Government of Canada will
be responsible for the co$t of ^uivey, in case, under the agreement, it has to be reimbursed. While 1
assume the responsibility of agreeing to this, you, of course, understand that the other portions of tho
scheme must be concurred in by the Gorernment; but my utmost support shall be given to the plan
as now arranged.

I am, your most obedient servant,

(Signed) F. IIimkb.

W, Jackson, Esquire.

From William Jackso7i, Esquire, to Honorable F. Hinck*.

London, 2 1st May, 1.30 a.m.
Sib,— Your reply to mine of last evening is to hand and satisfactory.

Yours,

(Signed) William Jackson.

Honorable F. Hincks.

From William Jaclcson, Etquire, to Honorable F. Hincks,

21st May, 1852.
Sib, — You seem to think that the seven per cent, payable on the bonds to be issued by the
company may be an obstacle to your progress ; do not let it be made one. If the company do not find
it their interest to make the bonds bear that rate, their interest being ours, we must do the best we can.

(Sigaed) AVilliam Jackson.

Honorable F. Hincks.

• The guarantee of the Proviuce is thus defined and limited in the 28th section:—
" Provided always, and be it enacted. That for and notwithstanding anything to thu contrary in
th« Act passed in the twelfth year of Her Majesty's reign, and intituled, Jin Jld to provide for affording
the guarantee of the Province to the bonds of railway companies on certair^ conditions, and for renderinf/
atiistcnce in the construction of the Halifax and Quebec railway, or in the Act passed in the seision held
'n the 14th and 15th years of Her Majesty's reign, and intituled, An Act to make provision for the
construction of a Main Trunk line of railway throughout the who's length of this Province, the guarantee
of the Province shall not be given to the company incorporated by this Act, or in respect of the railway
hereby authorized to be constructed, to an amount exceeding the sum of three thousand pounds sterling
/or every mile in length of the said railway: but provided the limit, bove mentioned be not exceeded,
the said guarantee may, notwithstanding anything to the contrary in tho ^aid Actf, be given to the
extent of forty thousand pounds sterling, so soon ns it shall be ascertained by the report of any
engineer or engineers to be appointed for that purpose by the Governor of this Province, that one
hundred thousand pounds sterling' has been actually, and with due regard to economy, expended on
the said railway by th.; said company, iu work or materials delivered on the ground, or both con-
jointly; and whenever it ahull be aseertained in like manner that another sum of one hundred thousand
pounds sterling has been so exi)endcd as aforesaid, then the guarantee of the Province mny be given
for another sum of forty thousand pounds sterling, and so on toties quoties and till such g .arar.teo shall
have been given to the whole extent hereby before limited: Provided always, that such guarantee
shall, except in so far as otherwise provided by this section, be subject to nil tho provisions of the
Act first cited in this seetion, as amended by that secondly cited therein, and may, under the provision
of the twenty-second section of the Act last mentioned, be given by issuin? and deliverini; to the said
eompany Provin'-ial debentures, for the amount to be guaranteed in exchange for tho bonds of the
company, to which bonds all the provisions of the said section and at the said Acts shall apply."

admit^

This

whicl

throuj

cornel

the

menci

an art
to Mr
" capij
homo/

ORAKD TRUNK KAILWAY.

the first
16 Vic,

'< Grand
Fistoles,
ho nmal-
.t chooso
to a yet

opoly.
]*rovince
urity the
forly per
niilicn of

the rato
:, you will
say that if
:anada will
. While 1
ions of the
to the plan

IlKl'KS.

30 A.M.

ACKSON.

r, 1852.
sued by the
' do not find
best we can.

ACKSON.

contrary ia
for affording
for revdtrint/
jeision held
sion for the
le guarantee
■ the railway
inds sterling
ot exceeded,
jiven to tiie
>port of any
ce, that one
jxpended on
r both con-
red thousand
iny be given
arar. tee shall
;h guarantee
isions of the
the provision
f; to the said
boniio of the
apply."

acres of public land in the countioa of Hiuiouski and Bonavcuturo, in furtherance of the
extension of the line eastward. Chapter 38 repealed the charters of tho Montreal and
Kingston, and Kingston and Toronto Railway companictJ. Our previous inducement to
men without capital to become railway constructors had been, that we would lid them with
the last half of the money required, after they had obtained and cvpended the first half.
Now, when " capitalists " came forward to commiserate our poverty, we agreed to commence
paying them from the start. " Belgium " was no longer an authority with i\lr. Hijckc<.
Hi" last year's creed, that " the best method of constiucting and njannging railroads was
by placing them under tho control of the state," was no longer orthodox. lie had, in
three years, advocated four distinct principles for the promotion of railway undertakings;
and now adopted a fifth.

Speeches in parliament, tho public press, and the tongues of chattering people now
rang with laudations to the " capitalists," v/ho, without trouble to ourselves, were gener.
ously to invest their immense wealth in building our railroads wherever asked for. To
doubt was rank heresy.* Somebody from about Peterboro' timidly enquired how a road
along the front could benefit that "section?" " Build you a loop line," briskly replied
Mr. Jackson, clapping his big hand over the map, thumb at Belleville, Httle finger at
Port-Hope, and middle finger at Peterboro'. People were charmed with this facility of
construction. Nobody had ever before heard of a "loop" line. It was deonu-d a thing of
magic that was to bring the road tu every man's doors — barn-doors included.

Ono clause ironically permitted the railway companies to renounce the Provincial
guarantee, which, it was said, was introduced into tho Acts merely as a " form " required,
by previous legislation ; for how, echoed the intelligent reasoners of saloons and bar-rooms,
could "capitalists," unable to find three per cent interest for their enormous accumulations,
consent to pay six per cent on our debentures ? One honorable and sagacious legislative
councillor was carried away captive by another assurance of the capacity of Peto, Brassey,
Betts and Jackson, beyond all other men tu undertake railroad contracts. Mr. Uincks
positively assured the prudent gentleman that they had on hand a stouk of old picks and
shovels sufficient io dig all our roads, without buying new ones! Nonsense, liko ladies'
bonnets, appears exceedingly ridiculous when a few years have passed from its day of
useful service.

Subsequently, when the provincial aid became exhausted, poor Mr. Ilincka snivelly
admitted that the contractors were never expected to expend their * realized capital."
This was equivalent to announcing that the great wealth they undoubtedly controlled, on
which we had trusted, was to remain intact, while they only expended here the funds raised
througk Acts of our Parliament, a feat that might have been accomplished by any street-
corner politician of our own country, without pretence of being principal shareholder in
the mines of Golconda.

The adjourned meeting of parliament in February Completed the machinery com.
menccd in November. Ono Act, 16 Vic, Cap. 75, was To provide for the construction of

* It was apprehended that influential parties would "stop" the Montreal Gazette for admitting
aa article from me, where I enquired whether reports from Birkenhead were not somewhat unfavourabla
to Mr, Jaoksoa'a individual pretensions, remioding readers of the bog'iiilements of some previous
" capit. 'lata," a olaig who »re often in bigbeit credit \rhQre leagt known hcd the fartbdat awaj from

home. ,>-. ,r,r, ,^:.;:„..^- .■■ „ ■■ , . ,- ■-_■,.,.;„,.«■..-.. . :■:; . V, '-f i :

BISTORT or TBI

a general railway bridge over the River St. Lawrence, at or in tfie vicinity oj the city oj
Montreal, with a capital of £1,500,000 sterling, and the Grand Trunk Company was
empowered to assume the undertaking. A second Act, 16 Vic, Cap. 76, extei'ds the
provisions of the Railway Union or Amalgamation Act, 16 Vic, Cap. 89, " To companie*
whole railways intenect the Main Trunk line or touch places which the. said line also
touches." Canada was for once " united," so far as concerned railways, if in no other
ways. Indeed, the whole scheme, now, nautically speaking, on the "ways," only
required wedging up, and Mr. John Boss, then Solicitor-General West, with Mr. Gait,
visited London to assist at thn launch, which was to " float it off" on the London money
market.

The first documentary appearance of these gentlemen is in contracts. The Grand
Trunk Company of Canada was still a myth as regards stockholders — not one existed ; but it
had a charter, contractors, and " president." The Grand Trunk Company of Canada East
was in the same aerial position, yet Mr. Ross, the pre-born president of two companies not in
existence, signed contracts on the 23rd March, 1853, with Messrs. Peto, Brassey, Betts and
Jackson, for the construction of the road from Montreal to Toronto, 845 miles, for £3,000,000
sterling, or £9,000 per mile — for it was really only 383 miles — and for the road from Quebec
to Trois Pistoles, 153 miles, for £1,224,000, or £8,000 sterling per mile ; payable £8,000
per mile in provincial debentures, and the balance, one half in company's debentures,
having 25 years to run — the other half in share-stock of the company. At the same time,
Mr. Gait, on the part of Messrs. Gzowski and Co., contracted with Mr. Alexander Gillespie,
of London, for the construction of the Toronto and Sarnia road — 172 miles, for £1,376,090,
or £8,000sterling per mile — payable in cash as the work progressed. For these prices, the
roads were to be constructed superior to anything known in America — equal to the best Kng-
!ish ro8<1s — and delivered over to the companies fully equipped, with buildings, rolling stock,
and everything necessary for immediate traffic, without the possibility of any further cost
or charge. That nothing should be omitted, the contractors wore to pay interest on moneys
raised until the roads were completed, and allowed £70,000 to the companies for superin-
tending expenses. The road received by the company fell short of this description. *

The construction of the Quebec and Richmond road, 95 miles — but called 100 — had
been contracted for with Mr. Jackson, on the part of Peto and Co., by an agreement of
20th October, 1852, (which superseded Rigney's contract of the previous January). The
rate for the entire completion, with rolling stock, being £6,500 sterling per mile, payable
£250,000 in provincial debentures, £100,000 in company's debentures, £205,000 cash, —
being the amount of capital to be paid up on shares subscribed in England — and the
balance in share stock.

* The contract stipulations are in these terms : —

<* The said Railway to be a first'Class single track railway, with the foundations of all the large
structures provided for a double track, up to the earth level, and to be superior to any American or
Canadian railway i^ow ki^own or used, and rqual to the first-class English railways, so far as the
permanence and substantiality of the work is concerned, and such an one as regards permanence of
structure and substantiality as would be approved of by the English railway authorities as tit to be
opened and used for passengers and traffic, and as WOJld be approved of by toe Railway Engineers of
England of the highest standing and experience.!' • * • << A=d (Ibe contractors) further shall
and will equip and stock the said railway with the necessary fixed and moveable plant and rolling stock."
f The whole to be in good and substantinl condition and complete working order, and in every respect
fit and ready for the actual mmediate working of the traffic aiid travel, ^ithpu^ further oatlay Of
xpcnse" t the eompi^B^.

■■

OBAVD TRUNK RAILWAT.

The St. Lawreno* and Atlantio road 'had been nearly completed to St. Ilyacinthe in
November, 1849, when Measrs. Black, Wood & Go. contracted to complete the Canadian por-
tion for £6,550 oy. per mile. Provincial aid was first asked when it was completed to Rich-
mond, in October, 1851. It was opened to Sherbrooke in September 1852, and continued
to Island Fond in the following year. On the 9th December, 1852, Mr. Keefer reported
the expenditure on work done at - • - £086,201 3 5

Amount required to complete the line - 150,771

£1,136,972 3 5, cy..

On which the Provincial Guarantee would be £568,486 I 8
Already advanced [£400,000 stg.] - . ■ - 486,666 13 4

£81,819 8 4

Equivalent to £67,500 sterJiing, subsequently handed over to the Grand Trunk
Company, which, by the amalgamation, admitted the stock at par, and allowed the share-
holders 37} per cent for back interest, or thereabouts.

Such being the position of the separate companies, each empowered to raise a large
share capital, and all things prepared by cunningly and comprehensively devised enact-
ments, through the instrumentality of a subservient machine, called parliament, for the
Grand coup de plume — the bold stroke of pen and ink — on the 12t^' April, 1853, in
London, the five roads became united under the amalgamation agreement into one company,
by the name of the Grand Trunk Railway Company of Canada, thenceforth to be liable for
a 11 the obligations or contracts of the before-existing separate corporations, and entitled to all
their rights, including a claioi on Government for £1,811,500 stg., in provincial debentures.
A contract with Messrs. Peto & Co., for building the Victoria bridge, at a cost of £1,400,-
000, or £1;500,000 stg., was included, and the Atlantic and St. Lawrence Company, of
the State of Maine, so far became parties as to lease their road, 148 miles, from Portland
to Island Pond, in the State of Vermont, for 999 years, at an annual rent of 6 per cent on
an alleged outlay or cost of $4,700,000. A road from Belleville to Peterboro', 50 miles
contracted for by Peto & Co., at £400,000 stg., was included, but there dropt — it was never
commenced. *

* Obiolmal dittnbution of Capital, — Etiimattd cott of$tveral wo: ks comprised in the Grand Trunk
Railtoay Company :

St. Lawrence and Atlantic, 142 miles— £r 500 per mile £1,268,000

Qaebec and Richmond, 100 miles — £6,500 per mile... £660,000

Extension 60,000

700,000

Montreal to Toronto » 3,000,000

Trois Pistoles, 163 miles, at £8,000 per mile 1,224,000

Grand Trunk Junction, 60 miles, at £8,000 per mile 400,000

Toronto and Sarnie, 172 miles, '< '< 1,376,000

Victoria Bridge 1,400,0' >0

Oontingencics 142,000

962 miles £9,500,000 sterling.

Deduct — Allowed for Contingencies, as above £142,000

Uo. in contracts, for superintending 70,000

35 miles not built, from Rirer dn Loup to Trois Pistoles 280,000

50 miles "Grand Junction" not built..,.. ,,, ,..,..,„ 400,000

45892,000 sterling.

Surely this ibouM bav* been infl^Unt ^9 bnU4 the br«ao^ to l^ondoo, 21 mUei, pay all <• eztr«i."
Iiad leaye » inrplnf, ' "» « r / * •?

BISTORT OF THE

Behold now tho Grand Trunk Company of Canada! Huprcmo froiu Troi^ Pi/itolcs.to
Sarnia, and from Montreal to Portland ; complete in president, directors, secretary, eu<^i-
ncers, bankers, solicitors, contractors, and everything except what is usually first required
in corporate companies, — that is to say, stockholders, or proprietors. This amalgamation
agreement is signed by John Ross for three myths : the Grand Trunk Company, — the
Grand Trunk Company East, — and the Belleville and Peterbovo', called tho "Grand June
tion." A. T. Gait, for tho St. Lawrence and Atlantic ; Alexander Gillespie, for tlie
Toronto and Sarnia ; and William Chapman, for tho Quebec and Richmond ; followed by
the approving autographs of Samuel M. Pcto, Thomas Brasscy, Edward L. Belts, and
William Jackson, — the whole being witnessed by the Company's solicitor, who, in view of
Ms privity to all this "making things pleasant," is appropriately named "Wag-staff," and
" Henry Moon,'* his clerk, whose name is quite suggestive enough, without the addition of
shine."

Perhaps it were well, at this point, to stop and enquire what gain was accomplished
by our introduction to " eminent " capitalists and contractors ? The Portland road was
then nearly completed ; the Quebec and Richmond road was under contract, and tho capi-
tal subscribed ; the contractors of the Ogdensburgh road were ready to construct the lino
from Montreal to Kingston or Toronto, at less than j£0,000 cy. per mile ; there would have
been little difficulty in extending to Hamilton, where connection with the Great Western
would have given us a complete line from Quebec to Detroit, at comparatively small cost.
We got no winter highway to a seaport in British waters, which had been the aim cf all
our legislation ; the crippling of our resources by the capitalists on whom we relied, has
thus far, prevented our undertaking it, till now, when menaced by an angry American
policy, we perceive we must have it at all hazards. Instead of a first-class English railroad,
the Commissioners' report of 1881 tells us of sharp curves, steep grades, broken rails, 20
trains interrupted, and 80 cars off the track, or smashed, in the first three months of that
year.

After the precise contract engagements, it is surprising to find that .£2,491,002 were paid
for additions upon the works of these three contracts, previous to the 30th June, 1860.
Several witnesses testified before the government commission of 1861, to the wretched
construction ot a portion of the work and quality of materials. Part of the rails were of
the very worst description of iron. Mr.Shanly stated that more than two thousand " broke
like glass " on the central division alone, in the winter of 1360. " Tho grades and curves,"
he said, between Kingston and Toronto prevent economic working of the line. The
natural contour of the land had been followed, so that there was a succession of ascents and
descents at grades of 52 feet to a mile. An engine arriving from the west, with 20 ears
had to leave 5 at Toronto and proceed with 15. Between Montreal and Cornwall, 68 miles,
300 rails were broken, some of them in a dozen pieces, while in the same time only 5 were
broken on the St. Lawrence and Champlain road, 44 miles.

This breaking of rails^caused a'great destruction of cars and engines, with that minOr
consideration — life. Was the Grand Trunk Road truly made superior to anything known
or used in America ?

It has been, like other roads, subject to irregularities and disasters, nor has any line
been the cause of greater disiatiafaotioQ, in its runniDg and maQagement, Whatever might

have
more

Gran

Provi
Wolli
Thom
J
Oane
E. P.
Hon.
ofth
Craw
Atlai
E. F.

Lone

pani
Prov
of al
■Rail
panj
Com
Rail
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GRAND TRUNK RAILWAY.

have been the difficulty in raising money for railways a few years before, oapiUl wai now
more plentiful, and our own people strong enough to command it.

Immediately on the amalgamation, 12th 4^pril, 185B, or perhaps a little earlier, the
Grand Trunk undertaking was introduced to the British public by a prospectus, * to which

• PROSPECTUS OP THE GRAND TRUNK RAILWAY COMPANY OF CANADA.

Director! in London. — Thomas Baring, Esq., M.P. ; George Carr Glyn, Esq., M.P., Agents of the
Province of Canada, and Directors of the Company on behalf of the Canadian OoTernment; Henrj
Wollaston Bluke, Esq. ; Robert M'Calmont, Esq. ; Kirkman DnnicI Hodgson, Esq. ; Aldennan W.
Thompson. M.P.

Directors in Canada. — The Honorable John Ross, Member of the Legislative Council, Solicitor
General for Upper Canada, President; The Hon. Francis Hincks, M.P.P., Inspector General ; The Hon.
E. P. Tach6, M.L.C., Receiver General ; The Hon. James Morris, M.L.C., Postmaster General ; The
Hon. Malcolm Cameron, M.P.P., President of the Executive Council ; The Hon. R. E. Garon, Speaker
of the Legislative Council ; The Hon. Peter McGill, M.L.C., President of the Bank of Montreal ; George
Crawford, Esq., M.P. P., Brockville; Benjamin Holme.o, Esq., Vice-President of the St. Lawrence and
Atlantic Railway Company; W. H. Ponton, Esq., Mayor of Belleville ; W. Rhodes, Esq., Quebec;
E. F. Whittemore, Esq., Toronto.

Bankers in London. — Messrp. Glyn, Mills & Co., and Messrs. Baring, Brothers tc Co.

Engineer in C/ny/.— Alexander McKenzie Ross, Esq.

Assistant Engineer. — Samuel Keefer, Esq.

Secretary in Canada. — C. P. Roney, Esq.

Solicitors in England. — Messrs. Swift and Wagstnff, 30, Great George Street, Westminster.

Solicitors in Canada. — G. E. Cartier, Esq., M.P.P., Montreal ; John Bell, Esq , Belleville.

Applications for shares to be made to Messrs. Laurence, Gazenove and Pearse, Auction Mart,
London, Brokers ; or to William Chapman, Esq., 2, Leadenhall Street.

The Government and Legislature of Canada have, by various Acts, incorporated several com-
panies for the construction of different sections of the Main Trunk Line of Railway throughout the
Province, and Acts of the Canadian Parliament have also been passed authorizing the amaleamation
of all the companies whose railways intersect or join the Main Trunk Railway with the Grand Trunk
Railway Company, so as to form one company, under the name of the " Grand Trunk Railway Com-
pany of Canada." Arrangements are accordingly in progress for a fusion of the Grand Trunk Railway
Company of Canada East, the Quebec and Richmond Railway Couipany, the St. Lawrence and Atlantic
Railway Company, the Grand .lunction Railway Company, and the Toronto and Guelph Railway
Company, with the Grand Trunk Railway Company of Canada, forming together 964 miles of railway
(including a bridge ov3r the St. Lawrence, at Montreal, which will be constructed under the super-
intendence of Robert Stephenson, Esq., M.P., and A. M. Ross, Esq.,) with a combined capital of nine
millions five hundred thousand pounds, and for a lease in perpetuity of the Atlantic and St. Lawrence
Railway, from the point of its junction with the Grand Trunk Railway to the city of Portland, 148
miles, whereby access is obtained to the Atlantic at one of the natural harbours of the western continent.

The capital is £ 9,500,000

made up as follows ;

Amount already raised in shares, and spent on works of the St. Lawrence and

Atlantic and Quebec and Richmond Railways £ 683,400

Amount already raised on bonds 733,000

£ 1,416,400
Reserved in shares and debentures for the shareholders in the St.
Lawrence and Atlantic, and Quebec and Richmond Rail-
ways, on tho amalgamation, and for the bondholders of the

Ontario, Hlracoe and Huron Railway Company 837,600

2,254,000

Leaving £7,246,000

This amount will bo created and apportioned as follows :

Stock in 144,920 shares of £25 each £3,623,000

Debentures of £100 each, payable in 25 years, bearing interest at 6 per cent,
per annum, payable half-yearly, in London, and convertible into shares
on or before the first day of Jiinuary, 1863, at the option of the holder... 1,811,500

And debentures convertible into bonds of the Provincial Government, of £100
each, payable in 20 years, bearing interest at 6 per cent, per annum,
payable half-yearly in London 1,811,500

£7,246,000

Of these 144,920 shares, it is proposed now to issue one-half, viz. : £1,811,500 iu shares, and the

same amount in debentures, the other half having been agreed to be taken by the contractors, who,

ho\yevcr, engage to give to the holders of such shares, on the ist July, 1854 (twelve months after the

anticipated opening of the St, Lawrence and Atlantic section of the railway), the option of taking, in

HXBTOBT or TBI

small ezoeptions can be taken, inasmuoh as it is little more than a common statement of
common facts, and even the much harped upon 11} per cent profit, is simply a rough esti*
mate on data given, or " iummary of probable revenuet," that any one could examine. The
appendix, to which "especial reference is craved," ic merely the usual rose-coloured expo-
sition common to the ordinary introduction of joint stock enterprises, which, from long
experience, none can appreciate at the exict value more precisely than the English. The
report of Lord Elgin, upon which deception has been charged, was simply the regular
periodical communication expected by the Home authorities from every Colonial Governor,
and, read where it appears, in the British parliamentary "blue book," seems rather modest

tri

tii

ca|

w'li

afi

equal proportions, two-thirds of such remainin|^ moiety ; that is to say, every holder of thirty such
shares will, on the 1st July, 1854, be entitled to claim twenty shares more at par, together with an
equal amount of debentures, also at par. Such additional shares and debentures to bear interest at 6
per cent, from the said Ist July, 1864.

JC200 of debentures (one-half of each description) will be issued at par with each £200 of shares.

By the law granting the Provincial aid, it is provided that the bonds of the Province shall be
issued ns the worlcs advance. These bonds will, therefore, be held in trust to be delivered fro rata
to the holders of the convertible debentures.

Interest, at the rate of 6 per cent, per annum, from the completion of the amalgamation until the
entire worlcs are finished, will be paid half-yearly in London, iu sterling, on the amount from time to
time paid upon each share. The dividends, as declared, will also be payable in sterling, in London.

The first payment in respect of the shares and debentures will take place on allotment as follows,
viz. : £6 on each share, and 20 per cent, on each debenture, to be paid at the Company's bankers in
London, Liverpool or Canada. '1 he remainder will be called up by instalments, not exceeding X2 10s.
per share, and 10 per cent, per debenture, at intervals of not less than four months between each call,
and the first call will not be made until the expiration of six months from the date of allotment. Sub-
scribers will, however, have the privilege of anticipating the calls upon the debentures, receivioft G per
cent, interest on the amount paid up in advance.

The description and objects of the Grand Trunk Railway are fully set forth in the appendix, to
which especial reference is craved.

The more prominent points therein are : —

1. The completeness of the system of railway, engrossing, as it does, the traffic of Canada and the
State of Maine, and precluding injurious competition.

2. The large amount of Government guarantee and of Canadian capital invested, being two millions
eight hundred thousand pounds sterling.

3. The fact that 250 miles of the railway are now open for traffic, to be increased to 390 miles by
the close of the present year.

4. The execution of the whole remaining works being in the bands of most experienced con-
tractors, the eminent English firm of Messrs. Peto, Brassey, Betts and Jackson, having undertaken
seven-sixths thereof, including the St. Lawrence bridge.

5. The cost of the railway being actually defined by the contracts already made, whereby any
apprehension of the capital being found insufficient is removed.

In the Appendix will also bo found the data for the following tumtnary of probable revenue :—
On 1112 miles, at an average of above £25 per mile per week. .£1,479,660

Deduct working expenses, 40 percent 591,864

£887,796

Interest on Debenture debt, £4,635,200 £278,100

Rental of Atlantic and St. Lawrence Railway 60,000

338,100

Thus showing a profit on the share capital, £4,864,800, of nearly

11} percent £549,696

The contribution which the Provincial Government engaged itself to make towards the completion
of these undertakings was the loan of Provincial debentures payable in 25 years, bearing 6 per cent,
interest, to be advanced as the works should progress, namely:—

Toronto to Montreal 345 miles

Quebec to Trois Pistoles 153 "

498 miles.

At £3000 per mile £1,494,000

St. Lawrence and Atlantic 67,500

Quebec and Richmond 250,000

£1,811,600

ailAND TRUNK RAIIWAT.

in comparison with reportH from other possessions much less worthy of compliments. The
main and most important a.sscrtion was true in fact — that is, the entire cost uf the ruaii hnil
truly been fixed by contracts with eminent Engli.h nnd other responsible contractors. The
truth of inference, namely, that these contracts removed all c^ abts of the sufficiency of the
capital to deliver the road over to the company, fully equipped, complete in every respect
and free from any further charges whatever, was to be established by the vigilance of those
who were to become stockholders. It was not the fault of the prospectus if Peto & do.
afterwards absolved themselves.

The names of the directors who head the prospectus are those agreed upon in the deed
of amalgamation, and certainly the acts provided that six out out of the eighteen directors
should be called " government " directors ; but there is no greater popular delusion than
to suppose that Canada or Canadians, through the instrumentality of government or publio
men, were instrumental in entrapping Englishmen into subscriptions for Grand Trunk stock.
Nothing is more preposterous. Neither Canada nor Canadians had any interest in working
oflF the stock. Out of their hands entirely, it was a speculation of the " capitalists," in
which wo had no right to intermeddle. Mr. Jackson, who had caused the acts of parlia-
ment to be " made to order," had, in assuming all the responsibility for his " capitalists,"
secured their rights in the direction of stock-jobbing tactics. Mr. lloss, the only member
of our government then in London, kept entirely aloof; Mr. Gall was there, to work
(miracles) for his St. Lawrence and Atlantic and Portland friends; and the other Canadians
ID London, instead of working to force stock upon the market, were only angry at not get-
ting more in the allotment. All was planned by the English themselves, and con-
ducted in the counting house of Messrs. Baring, Brothers & Co.

Even these directing Englishmen wer'- in no haste to entangle other Englishmen.
Enraptured with the success of Mr. Jackson's mission, and buoyant upon wind of their
own raising, they preferred putting out just enough stock to whet the public appetite, and
make profit by the premium to which that reserved would rise. With power to put upon
the max'^ct any number of shares, they only offered 72,400, or £1,811,500 sterling, — little
more than authorized to be issued on the Victoria Bridge alone. They gave the public
short notice for subscribing, and in the allotment on the 25th Aiiril, only a fortnight after
the amalgamation, appear to have kept a lion's share to theuselves, — not, however, for
want of subscribers, for the applications amouiited to three or four times more than the
stock to be distributed. There is no public record here of the original distribution; but a
return furnished to parliament, made up to SlstDecember, 1854 (see Appendix A), shows
on a list of about 000 names, holding 00,928 shares, more than one-third, or 23,7C4 shares,
standing in the names of " Baring," " Glynn," " Mills," " Peto," " Brasscy," " Betts,"
"Jackson," "Swift," and "Wagstaff," — that is, the London financial agents of the pro-
vince, the English contractors, and the company's legal advisers. Whether these were
the shares originally taken, or the number had been increased by subsequent purchases,
■one thing is clear: when 1170, standing in the names of persons connected with Canadn,
are deducted, there remains but 41,994 shares, or, when paid up, a trifle over one million
of pounds sterling, in the names of all the great British and foreign " public." This result
at the end of nineteen months after the opening of the stock-books proves, that the pre-
tended attack on English confidence or credulity, had been neither persuasive nor formid-
able.

HISTORY OP THE

, • As 72,400 Bliarcs, with exception of 810, unclaimed, wore originally distributed,

the foregoing return shows a deficiency of more than 5,000, that, in absence of other
knowledge, might be attributed to the oancelment of an entry of 2,008 shares to Mr. Hinoks,
and the same number to Mr. A. M. Ross, all connection with v^hich both parties disowned.
People naturally assuming that Mr.Hincks had not sold himself and the Province, without
a reasonable consideration, imagined the company had made him a present of j£50,200, in
paid-up stock ; but it was not po. The most charitable construction of the transaction is,
that the promoters of the scheme, anticipating a high premium, wished to put their friend
in a positiou, like themselves, to make a few thousands by selling out. Instead of premium,
' the stock sunk to a discount, never to rise again to par, and Mr. Ilincks did not want any of
that sort.

According to the terms of the prospectus, the capitalists and contractors became

j . entitled toJe297,000, in provincial debentures, at par, on their 23,704 shares, which, at 15

per cent premium — said then to be their market value, and as such accounted for to the

contractors, to whom thoy were originally to have been paid — left Ihcm a pretty net profit

of £44,550 sterling.

Explanation is required upon a very important point. The return of the 31st Deo.,
1854, purports to be a list of the actual stockholders on that day. They held 66,928
shares, or £1,672,000, on which, £1,037,475 was paid up. The A series, 72,460 shares,
had been distributed in April, 1853. By agreement in the amalgamation deed and stipu-
lation in the prospectus, the English contractors were bound to subscribe for and pay up,
on the 1st July, 1854, all the B series, amounting to the same number, that might at that
date be unclaimed by other parties having the privilege. Had this been done, the paid up
share capital would have been about £2,200,000, instead of £1,037,475 — whence the defi-
ciency ? One can imagine that holders of company's 6 per cent debentures would not be
furious to convert them into stock that might pay nothing ; but by what authority were
the contractors relieved from the part of their bargain that compelled them to pay up all
the unsubscribed stock, while they were regularly paid cash for their work on the other
part ? Whoever may have been the guilty one, this default forced upon the country the
Act 19 Vic, Cap. 174, at a cost of £900,000 sterling.

Having been assured during the legislative period that we had to do with " capitalists "
who would construct our railroads at little cost to ourselves, an early application for money
was not to be anticipated; but, nevertheless, on the 8th September, 1853 (sec Appendix B),
Mr. lioney, secretary to the company, makes application, before they were entitled to a
shilling, for the whole of the debentures authorized, the same to be forwarded to England
for investment, " as the best means of raising the capital of the Grand Trunk Railway
with the least possible delay." On the 27th September (see Appendix C) the application
was repeated, the plain English being that the government should immediately transmit
to London the A series of debentures, £905,700 sterling, to be there negotiated under in-
structions of the company, and the proceeds to be so placed as to be available for its general
engagements. The other companies to which he alludes only received their aid when their
respective roads were one-half finished. An Order in Council, passed upon these appli-
cations, 30th September, 1853, (see Appendix D), authorizes the Receiver-General to
transmit the debentures to the provincial agents, who shall invest the money received for
them on account of the province, in the joint names of Thomas Baring and G . C. Glyn, in

GRAND JRUNK RAILWAY.

Buch securities as they may Uccm udvisablo for the benefit of the Grand Trunk iUilway
Company.

Messrs. IJarings, brothers k Co., and Messrs. Glyn, Mills & Co., wcro jointly financial
agents of tho province. Thuy wore also bankers to the Grand Trunk Company. Mr.
Thomas Baring and Mr, (i. C. Glyn are respectively partners in tho two firms, and, further-
more, directors in tho Grand Trunk Con pany, thus acting in several capacitie.', while tlio
fund acted upon was simply funds divided between tho two houses. It is not customary
for gentlemen so circumstanced to place tho money of each. customer under u separate lock
and key. A.11 funds arc "mixed" in common with their own, and only traceable on the
ledger, whcrt its transfer is simply a change of figures from one side of a page to tho other ;
consequently, whu*^^ever might bo 'ts final destination, nearly two millions sterling, raised
upon Canadian sccur.'tics, augmented or facilitated the ordinary trading powers of those
capitalists in the ycarsi 1853 and 1854. One-half of the J61,811,500 debentures had been
received in London p'evious to February 1854, and thi ther half between that date and
October. Wo know nothing of the private arrangements between Barings and Glyn,
" bankers," and the company. Tho Receiver-General, in his letter of JJOth December,
1854, says the funds are cither in bonds, in tho hands of the firms, or invested in consols,
in tho joint names of T. Baring and 0. C. Glyn. In correspondence with tho province,
they account for debentures released to tho company. As " bankers " they may have
credited tho company with cash when received from their sale.

This unseemly haste in forwarding tno debentures was tho more reprehensible from its
depressing influence upon the sale of Canadian securities oflfered in London for other purposes
of government, and consequent injury to provincial credit, much forced in those year« apart
from tho Grand Trunk advances.* Between tho years 1851 and 1859 our Government threw
upon the London money luarket $45,515,832, of which over twenty-eight millions were in tho
years 1852, 1853, and 1854, nearly fifteen millions being for the Grand Trunk, which was at
tho same time forcing ofi" its own bonds. In addition, our Relief Act ol 1856 enabled the
company to duplicate our fifteen millions, with fifteen millions more of its own. Messrs.
Glyn & Co. write to tho Receiver-General, IGth February, 1855,—" We bog to apprise you
that Messrs. Baring and ourselves, feeling it necessary to avoid the chance of a pressure
upon the market by any forced sale of the province bonds, have contracted for the first
£100,000 of the Ontario, Simcoe, and Huron allotment at.l04, less commission, but saving
brokerage. It has been essential to take this step, not only from tho amount of bonds
recently disposed of for other railway companies, but also for those brought to market by
tho holders of Grand Trunk shares." Debentures that could now be placed with difficulty
"at 104, less commission," had shortly before been taken from Pcto & Co. at 115, their
then called " market value." Some might attribute the decline to a " money pressure" —

Statement of public debt, including Imperial loan, i;i,500,000 ($7,300,000), and debtnlurcs is$uca

in each year.

Debt cxislinpc. Debentures issued.

1852, $ 22,355,413 $ 3,747,463

1853, 29,922,752 11,004,790

1854, 38,851,833 8,159,924

1855, 45,855,217 9,739,390

1856, 48,757,019 3,060,139

1857, 52,334,911 4,396,063

Debentures paid off
ia each year account
partly for difference be-
tween those issued in
each year, and increase
of debt.

Of $28,9«4,l0t debentures issued in 1853, 1854, and 1855, $14,742,033 was for tho Grand Trunk,

niSTORY OF THR

with tho luultitudo phraHcs carry the weight of omnijtotcnt'C. McBHrs. Glyii Si Co. nduiit
that the forced Hiipply exceeded current demand. Woll ini^ht there ho doprosHion when
Huddonly between sixty and flovonty millionH of doUars in bontJs, railroad or public, wore
coming from a province whoHO whole debt up to that time had been only eighteen inilliouM.
Sir C. 1*. Honey, in hi.^ evidence before the Railway Committco of parliament, in
November, 1854, thus fipecifieH the mode through which the j roviniial guarantee wu«
paid to tho railway eompony, and undoubtedly tho prescribed process was carried out
with all the farcical gravity of red tape formality.

" When wo are aware that works on the sections of tho railway entitled t»» the
provincial guaratiteo have been executed to tho extent of £100,000, 1 write by direction
of the board to the secretary of the Board of NVorks, and enclose a ccrtiQoatc from tlie
enginecr-in-chief of tho company, stating the amount of work done on each section. I
also request that tho Hoard of Works will issue orders to the agents of tho province in
liondon, Messrs. filyn & Baring, to release from their charge as agents, and to hand to
the company, tho proportion that 40 per cent boars to the amount certified by the chief
engineer. The Board of "Works instruct their officer to put himself in communication
with the chief engineer of the company, and also personally to visit and report upon the
works upon which the release is sought. Tho llailway Commissioueis subsequently meet
aud authorize tho Receiver General to instruct the Ijondou agents of the province to
release such amounts us thoy, on the report of their officer, may consider proper. The
amount under authority of such order is then handed over to tho company, and is lodged
to its credit at its bankers in London."

This Board of Railway Commi.ssiouerrt, composed of the Beceiver (jcneral, the Finance
3Iinistcr, tho Postmaster General, and the Commissioner of Public Works, was virtually
a sub-committee of tho Executive Council, which could first resolve itself into a Bailway
Board to make a recommendation, and then, at the same table, ro-rcsolvc itself into an
Executive Council, to adopt a minute of approval. The balance duo to tho St. Lawrence
and Atlantic road, £07,500, was "released" in November, 1854; the £250,000 to the
Quebec and llichmond in October, 1853, and August, 1854. " lleloM.'<cs " to the Grand
Trunk proper began in March, 1854, and continued till May, 1855, at a computation of 40
per cent upon the expenditure, when the sum received by the company amounted to
£1,155,6 10, us appeared from the ledger of the Becciver Ocueral, while his correspondence
indicated a quite different exposition.

(Extract Jroin letter of the llccc'vcr General to Messrs. Baritig A- Co., Ath Aiii/itsf, 1854.)

" I have the honor to adviao that it has been decided to place without delay in your
hands and Messrs. Glynn's, the balance of the bonds to which the (JranJ Trunk llailway
will be entitled, as referred to fully in a communication from this department of the I5th
October la«t."

(Extract from Bariiuj & Coh rrjilt/, 2iyth Ain/itnf, 1854.)

"We understand that, in conformity with tho agreement with the Hon. ¥. Ilinck.s,
when here, the entire proceeds of the £900,000 to be tnuisniittcd to 3IoKsrs. (ilyn,
Mills & Co. and ourselves, for the Grand Trunk of Canada Bailway Company, are U> be
/iiid at the tlhpusnl of that compaiii/, wlthvHt oiti/ rcvrvv on ike part of the ijovrrninrut,
and we .shall act accordingly in that sjnse, unless advised to the contrary by you."

{Extract from letter of Glyn, Mills ii Co., fame (late.)

" We pay attention to your remark respecting the bonds remittvjd for the Grand
Trunk Company, and the advice of the speedy transmission of the remaining portion, to

ORAND TRUNK RAILWAY.

couploto the amount of £000,000. Wo hop« tho luturo udvircH from yoii will uilow th»;
proceeds of the HCCuritioH, uh roalizod, to bo applied to tho general /mrpoHrH and niiiiirr-
incHtH of the contrurlorn, acconliiijj; to tho view luloptcd at tho coiiforeru-o in May last with
Lord Klf^in and Mr. HinckH, and not only in conformity with existing regulation.s or to
tho proportionH of payniontH on tho A HoricH."

{Kxtract from Mr. Jicvrirn- (iciirral''< /iflrr tn MiKun. liniliiij «»'• Co., !>//t »SVy(/., I?<5J.)

"With regard to the latter clause ol' your communication of liXth ultimo, with every
poMrtiblo dcbiro to facilitate the opcrationn of the <irand Trunk (*ompany, \ regret it is not
more in my power to deviate from tho iiistructions and courHC laid down l»y the Kxceiitiv*',
conHincd in Order of Council of 20th and IJOth September, 1H.');5, a copy of which wan
tranHmittcd both to you and jMessri?. (llyn k Co., for your respective guidance.''

It i.s not diflieult to imagine that, while in obedience to forms, the two firms — as our
" flnanoial agents" — kept a correct "tally" of debentures corresponding with tlin instiuc-
tions of the llcccivcr Oenciral, tliey often, as "bankers" to the other party, "according
to tho views adopted by J^ord KIgIn and Mr. llincks," allowed '* the pioeeeds of the secu-
rities realized to be applied to the goiieral purposes and requirements of tho contractors."
This was evidenced when, after a long corrcspondenco about a final release on the
debentures, Mr. Uaring wrote to Mr. Inspector (J oneral Cay ley : "Messrs. (rlynn iV: Co.
shall receive immediately tho release, txn Jinunvod iK/eiifs, of tho X'G(),000 remaining of the
X000,000, and which ire had loaned, in anticipation, to the company." llailway necessities
may have covered a multitude (tf irregularities. In July, 1857, Mr, Jliiring wrote: '-It
lius been a matter of life or death to the company, and, though these reloa.sos do not relievo
it from great liuaneial difficulties ahead, they enable it to live a little longer, and look about
for tho I'uturo ways and means."

The Act 18 Vie., (!!ap. 3i{, pas.sed in December 1854, confirmed many articles ol' the
amalgamatioa agreement, shortens tho title to '' Tho Grand Trunk Hallway of Canada,''
empowers tho company to increase its capital, and cunningly prepares the way for another
grant of aid by enacting that the engineers' ecrtilicato for expenditure to entitle the
company to an advance of 40 per cent, shall not be confined to special works, as beret jloro,
but may apply to other outlay of the company, the provincial lien being extended over the
whole undertaking generally. Mr. llincks stated before tho llailway Committee of 1855, that
he had learned, when in London, that the ni.iintenanco of our provincial credit was consequent
upon fixing a limit to railway guarantees. It was, therefore, declared that no debentures
beyond the X2,211,500 established for tho Grand Trunk, saving what might bo claimed
by the Great Western a>id Northern, should thercjiftcr be granted to any railway whatever,
except those on the direct line from Trois Pistoles to Sarnia. All were cut off, except the
Grand Trunk, by this clause :

'' Provided also that no provincial bonds shall be issued in favor of the said company
on account of any expenditure on the line of railway between Point Levi and lliehmond,
or between Montreal and Portland, beyond the amounts already issued on account of those
roads, that i.s to say, seven hundred and seventeen thousand five hundred pounds; nor
shall any provincial bonds be issued on account of expenditure on any branch railway to
bo hereafter constructed, or on account of expenditure on any lino of railway now amalga-
mated or which may hereafter be amalgamated with the Grand Trunk llailway of Canada,
KXCKPTiKo those forming tho direct line from Trois Pistoles to Sarnia; neither shall any
larger amount than one hundred thousand pounds sterling of provincial bonds be issued on
Account of expenditure on the Victoria Bridge,"

HISTORY OF THE

Tho Hocd tliUH cautioUHly nuwii, produced cnrly fruit. In tho huiuo HCNAion, on the
lOtli Mny,l srif),' wnH pnjtscd tho Act, IH Vic, Cap. 171, to grant " AdJitional aiil,hyhmn
to ihr- Grand Trunk Jtailirai/ of Camuhi" not lit the rate of 50 per cent when tho road
wiiH half completed, or 10 per cent, as heretofore, but at tho rate of 75 per cent on all
expendituro after tho fir.it day of May, a.s fuMt a.s the certificates could be produced,
lictireeii tho months of August and October following, tho vaults of tho financial agents
received a further consignment, in tho debentures authorized by this Act — jCOOO.OOO
sterling.

Upon what ground could thi.s advance bo asked, or upon what pretence could it bo
granted? Tho company, in spending our money, wns doing no more than wo could have
done for ourselves. 'J'hoy wore opening no country by a (J rand Trunk through tho wilder-
ness, but constructing a moxtly along shore road. They had provided by their contract
and proved by their prospectus that our first grant was suflScieut, and now, in a year from
t^heir first progress estimate, they rcquiro an increase of fifty per cent. Tho contractors
had covenanted to procure BharehoKlors or a.ssunio tlio stock themselves. They and their
a<sooiates, In their greed for premium, withheld the shares when they might have been
distributed, and refused to assume them according to contract, when a knowledge of tho
company's extravagances had run them down. Wo had more than fulfilled our part of tho
engagement by advancing tho whole debontiiro aid long before it could rightfully bo
claimed ; and now, after spending our money, they failed and broke down on their engage-
ment. If rich men, as pretended, law, compulsory as against any of our own people,
should have compelled performance. Their default left tho company deficient in about a
million of pounds, and our parliament loaded Canada with this difi'orenoe. Members in
parliament, who can wrangle for a week over a militia appointment^ have not always time
for large questions.

Juno in tho next year witnessed another extrao-dinary Grand Trunk and parliamentary
spectacle. Tho £2,711,500^ of which only ,£232,720 remained, had proted insuf&ciont to
accomplish that for which .£1,811,500 had been accepted as abundant. Tho advanco,
which was to havo been at the rate of 40 per cent on expenditures, or JC3000 per mile,
now exceeded 50 per cent, and £5000 per mile. Yet tho road was far from completion;
81 miles from Stratford to Sarnia, and 78 miles I'rom St. Thomas to River du Loup, (not
mentioning tho further extension to Trois Pistoles,) were not made, and nearly a million
sterling was required for tho construction of these 159 miles.*

* Date of opening the various lines,

Longucuil to Portland 292 n<ik'.s, July, 1853.

Quebec to Richmond 90 „ 'JTlh Nov., 1854.

Montreal to Brockvillo 125 „ 1 Olh Nov., 1855.

Brockville to Toronto 208 „ 27th Oct., 1850.

Chaudiero Junction to St. Thomas 40 ,, 3rd Dec, 1855.

Toronto to Stratford 88 „ 1 7th Nov., 1850.

Stratford to St. Mary's 11 „ a7th Sept. 1858.

St. Mary's to London 21 „ do. do.

St. Mary's to Sarnia 70 „ 2 let Nov., 1859.

Port Huron to Detroit Junction 59 „ do, do.

Victoria Bridge to Charon „ 19th Dec, 1859.

St. Thomas to St. Paschal 53 „ 2Gth Dec, „

St. Paschal to River dr Loup 25 „ 2nd July, 1860.

KiDgstoa Branch ,.,.,,,. t ^ ■> "Soy., „

I096mile8, • p

GRAND 'aRUNK UAILWAY.

the
loan

road
» all
icod.
;cntfl

,000

Forms odoukIi had been obHervcd in tho roloa.MC8, but the Act required that publie
(Donoy Hhould only bo paid upon tho certiGcuto of un eDginucr, appointed by the (jiovernur,
that the amount on whiuh it was claimed had been actually expended, 'Mvitn duo regard
to economy." How eould thcro bo •'economy" whoru money was thuH laviwhed? Had
tho npirit, and not tho mere form of law, been consulted, all thu public money would not
havo disappeared boibro tho roads named in tho contracts were two-thirds completed.

A robbery of tho public chest usually exacts tho admi.ssion of many copartners to sharo
tho spoils. Tho Grand Trunk combined tliem easily in 1H5G. Tho company wanted
jC800,000 to comploto tho Victorio IJridgo ; tho Western people wanted .£150,000, to bo
oxpondod west of St. Mory's ; tho Eastern people wanted X526,000, to bo expended east
of St. Thomas; tho Throo Rivor people wanted JC125,000 for a road to Arthabaska; and
three short lines in Upper Canada, called "subsidiary," wanted jC100,000 between them.
With such allies tho Grand Trunk carried easily tho Jlclief Act (19 and 20 Vic, Cap. Ill),
which authorized tho company to issue preferential bonds to tho extent of X2,000,000
sterling, having prioi'ity over tho existing first lien of tho province, thus changing its
position to that extent, from first mortgagee to second mortgagco. Tho bonds wore, as
usual, to bo lodged with tho financial agents, and released upon tho three principal works
as they progressed, and with each release an equal percentage on tho two smaller allot-
ments was to be placed to tho credit of tho Itcceiver Gonerul, making tho province a
trustee for its correct appropriation till called for, per cent interest being allowed for
the Arthabaska lino port'on whilo detained."' ]3y tho second scetiou of tho Act, the
Province consented to pay for fivo years tho interest on all debentures before issued in
favour of tho compauy, to bo repaid on share capital of tho undertaking.

Hero let it bo remarked, there was another windfall for Messrs. Barings and Glyn —
£2,000,000 sterling, one-third more than Clive found in tho treasury of Surajah Dowlah
at Moorshcdabad ; or near ten millions of dollars passed on paper, to remain in their hands,
as financial agents of tho Province, until they turned it over to themselves, as bankers of

• '• Tho said company shall bo authorizod to issue preferential bonds to tho extent of two million
pounds sterling. Tho holders of such bonds to havo priority of claim therefor over tho present first
lien of tho province.

" Such issue shall not tako place until tho railway of the said company from St. Thomn;^ in f owcr
Oanada, to Stratford in Upper Canada, shall have been finished and in operation.

*' Tho proceeds of tho said bonds shall bo deposited with the provincial agents in London, niul
released to the company on tho certificates of tho Receiver General, upon proof to the satisfaction of
tho Governor in Council, of progress of tho several works hereinafter mentioned.

" The said proceeds shall bo appropriated to tho aid or construction of the following works, and
apportioned aa hereinafter stated, and released to tho company ns the said works nro severally pro-
ceeded with :

The railway from St. Marys to London and Sarnia X4ri0,00(»

The railway from St. Thomas, Lower Canada, to Riviere du Loup .125,000

Victoria Bridge. 800,000

Three Rivers and Arthabaska 125, OOo

To enablo tho said company to assist the Port Hope, and Cobourg and Prcscott Railways

as subsidiary lines 100,000

i;2,ooo,ooo

" IL Provided that tho proceeds of the .^aid preferential bonds, to t!ie amount nforesaitl, be
deposited with the provincial agents, tho interoit accruing on tlie provincial debentures issued to the
company shall, during tho period of fivo years (being tie time necessary for tho completion of the
works and for the development of tlio through trafUc), bo advanced by the province, and such
advances, as they are made, shall^be repaid to the province in share capital of the company, and the
lien of the province, subject to the preceding conditions, sh.all rank, as to dividend or interest, with
that of the compony's bondholders."

HISTORY OP THB

the Qrand Trunk llailwny. Their charge for keeping the Grand Trunk account is a
private matter, but the commission of 1 ^er cent on sale of JC5,11 1,500 sterling on Orand
Trunk debentures placed in their hands to this time would alone reach about %250,000,
and they derive an annual income of about 315,000 for pnying the interest. The world is
beginning to suspect that the greatest '' capitalist " is he who gets the handling of the
most of other people's money.

Whatever may bo said of the usclessness of annual meetings of parliament, they arc
convenient to a corporation having one to do its bidding. An ugly clause in the Act of 185G,
requiring evidence of work done I lore it was paid for, demanded an amendment, provided
for Dy th« 5ih clause of the Act of 1857 (20th A'^ic, Cap. 11), permitting the company to
receive the procoeds of the preferential bondo, as paid iu, witliout regard to work :

" The said company arc hereby authorized to receive from the Receiver General of the
province, and expend upon and for the several works and purposes mentioned in the Act
last cited, the proceeds of the preferential bonds therein mentioned, as such proceeds are paid
in, provided the sum so expended upon each work bcnrs the same proportion to the total
sum allotted to it as the sums paid in bear to the whole amount authorized to be raised by
the said Act, and ^hat each of the several works mentioned in the said last cited Act shall
be proceeded with simultaneously and iu the same proportion."

Government directors were discontinued by this Act, and the IJoard of Audit was em-
powered to investigate the company's affairs. In a memorial of the directors, requesting
the pnssing of the Act, they require " such an extension of the term during which the
province will undertake the payn'cnt cf interest upon its bonds as will be equivalent to a
relinquishment of the claim." This was in part granted, by placing the payment of int(>resf
by the company after so many prior claims, tliat it could never be reaehe-,..

An offer of the direcjtorb, as compensation for the boon asked, was overlooked in
framing the bill. Possibly the government distrusted presents from the (1 reeks — Timei>
Danaos et dona fcrcntes — or they may have reflected on the dilemma of winning an
elephant, or more probably the idea got buried on some "wordy" day in the "chaft"" of
ministerial explanations. Here is the proposal : —

*' And the company would further engage, in tiie event of the railway being undertaken
to Halifax, to make over to tlie province tiic line eastward from Richmond to Riviere du
Jjoup, on account of the proviacial aid, to be relinquished or postponed, .should the pro-
vince desire to regard this line as forming its cmtribution to the intcrprovincial railway,
in any future negotiations with the Imperial (Jovernnient and the Lower I'rovinces."

The Act of 1858 (22 Vic, Cap. 22) was a continuation of the two last; providing —
first, that the company might issue preferential bonds, Avhich shall be deemed preferential
within the meaning of these two acts of 1850 and 1857. This was considered to
be a relinquishment of priority on the balance of the provincial lien, jGl, 111,500
stg. ; and a special meeting of stockholders, held at Toronto, 23rd March, 18.50, decided
that second preference debentures should be issued for the amount, at 20 years' date and
G per c«nt interest — to rank immediately after the i^2,000,000 first pieforenec. The effect
of this was to make the province second mortgagee instead of first mortgagee, for £3,111,-
500 stg., and we could rank as such should the road be brought to sale, unless some other
parliament be won over to give away our claim. The charge of interest was permanently
fixed upon us by the 5th section, wl'.ich thus devotes the earnings of the road, after paying
working expenses and the claims of the St. Lawrence and Atlantic railway : , , •.

bei

sec

for

an(

GRAND TRUNK RAILWAY.

"First, in and towardH payment of* tlic iulcrost upuu tlio aiuuuut, whicli, tor tho time
being, shall have been rui.sed by the issue of preforcntial bonds, us heroin mentioned:
secondly, in and towards payment of the interest upon tho loan capital of tho company,
for the time being raised and subsisting upon, and in respect of tho several claswes of bonds
and debentures hcreinbeforo mentioned, other than the said preferential bonds ; and thirdly,
in uad towards payment of a dividend at the rate of six per cent, per annum on the stock
and shares of the conipanyj and after payment of such dividend, then, in or towai^ls the
payment of tho interest on tho provincial debentures issued in aid of the eompauy from
time to time, to tho cxten* of three millions ono hundred and cloven thousand five hundred
pounds sterling in all; and after payment of such interest, the surplus, if any, shall bo
applied in favor of a further dividend upon the stock and shares of the said company."

The subsidiary line and Arthabaska road account, arising out of tho relief act of 1856
has caused much investigation and discussion, but amounts to very liil.'e in tho end — if
$130,000 may be called " little." In accordance with the rule before men Joned, tho fol-
lowing releases of preferential debenture proceeds were made regularly and in order, the
Grand Trunk drawing its proportion, while the others were placed to the credit of the
Receiver Goneral, in tho books of the financial agents.

I85t.

Released

Uraad Trunk.

Three Rivers

and Artliabasku.

Subsidiary

Lino.

Sept. 11 £133,125 £9,375 £7,500

Nov. 27 207,937 10 14,002 10 11,250

1858.

Feb. 20 340,462

June 11 \446,750

29,444 8 11 23,555 11 1

31,250 25,000

£1,134,274 18 stg. £84,131 18 11 .st-. £07,305 11 1 stg.

This placed to the credit of the Trust Fund £151,437 10 stg., or §730,995.34, and,
without waiting for their whole release, tho subsidiary lines wore paid tbcir £100,000 stg.,
($480,660.67), leaving §250,329.10 in tho books of the province, applieublo to the Three
Rivers and Arthabaska road. Ou the 10th June, Mr. Ro.s«, Receiver General author-
ized a release of £500,000, without noting a rcservo of ,£50,250 for tho above account ;
nor was the omission rectified when attention was called to it by the financial agents. An
Order in Council, 29th .Fanuary, 1859, releases the balance of this money, £214,217 12s.,
« subject to the condition that the company shall give satisfiictory security to the gov-
ernment that the Arthabaska appropriation shall bo duly applied towards the construction

of that branch line."

The amount for which security was required before passing into tho hands of the
Grand Trunk Company was £73,502 10s. lOd. (§358,004 17). Mr. Receiver General
Shcr-vood, writing on the 24th January to Raving & Co., with copy of this Order in
Council, says,—" I beg to advise you of authority for a further release to tho Grand
Trunk Railway Company, in conjunction with Messrs. Glyn, Mills & Co., say an equal
proportion of the balance of tbe preferential stock, under tho Relief Acts, for £2,000,000
sterling, in the hands of the fiscal agents of the province, as the intervening parties."

Mr. Sherwood is neither elegant nor perspicuous as a letter-writer, and he omits mention
f f security to be taken. Barings i-fc Co., who, like Glyn & Co., wore always impatu c for

BISTORT Of f BB

" authority" of this naturo, which came like an act of indemnity to discharge the rcspon-
fiibility they incurred personally in advancing to Grand Trunk urgencies before the time,
replied, on the 11th February following, — "We beg to acknowledge receipt of your leUer
of the 24th January, handing us copy of an Order in Council, by which the further sum
of £214,287, 12s. out of the preferential capital is released to the Grand Trunk Itailway
Company of Canada. Thus the whole £2,000,000 authorized to bo issued under the
Relief Act has now been put at the disposal of the company.''

With the quiet equanimity of mind common to men who conVrol millions Avithout
accountability, no "no minister" gave further thought to this Inpso between the Receiver
General and the fiscal agents till nearly two years afterwards, when Mr. Gait, apparently
cornered for funds, on the 4th December 1860, ventured on a "fling," in a letter to the
agents jointly, advising of a charge made against them, on accouut of the Arthabaska line,
for forty thousand pounds to meet Grand Trunk shortcomings. He innocently inquires
how the fund etandd, and strictly forbids further payments to the Grand Trunk from it.*
The agents, in their reply, 27th December, regretted they were " unable to confirm these
entries." They have " no funds, assets or securities applicable to that line," the whole
having, as duly notified, been paid over to the Grand Trunk upon Mr. Sherwood's Ivitter
of the preceding year. Referring to the accompanying Order in Council, which declares
the release is made "subject to the condition, that the company shall give satis'lactory
security to the government that the Arthabaska appropriation shall be duly applied toward
the construction of that branch line," they correctly infer that obtaining the security was
an affair of the government, and not of the agents. Thus the province, for the time, lo.«t,
and the Grand Trunk pocketed, over three hundred and fifty thousand dollars, because 3Ir.
SI: erwood did not know how to write a business letter, and such is the beauty of our
departmental system, nobody knew of it for nearly two years.

Government was responsible tj the Three Rivers and Arthabaska line for £125,000
stg., or $608,333.33. The Receiver General had in hand $250,329.17, and the balaaco,
$358,004.16, had been smuggled by the Grand Trunk. The company contracted with the

• OrncE Of THB Minister op Fi.nance,

QfKKEO, 4th Dec, 1860.
Messrs. Babimg, Beob. & Co.,
Messrs. Gltn, Mills & Co., London,

Oentlkmbn, — The Grand Trunk Railway Company have informed the government, that owin<^ to
their discredit, they are unable to negotiate their bills upon London, and consequently prevented
making payments due on the Arthabaska subsidiary line, the monej's for which, under the Relief Act,
are presumed to be available for the purpose in England.

The company has therefore applied for certain advances here on account of moneys suppoEed to
b« in your hands, under instructions from the Receiver General.

Advances to the amount of about forty thousand pounds sterling have thus from time to time been
made to the company here, to be cove; ed from the funds and securities held by the (inHucial agents
Bnder the Relief Act.

I shall be glad to be informed at ycur convenience of the position of the fund, and of the amount
remaining in your hands; meantime, the Receiver General will charge our advanci-s one-hulf to each
of your firms.

You will, of course, not make any payment or transfer to the Grand Trunk Compmiy in Kngland
f^om this fund until yoa have ascertained th:it all the advances made here are covered.

I have the honor to be, gentlemen,

Your faithful servant,

(Signed) A. T. Galt,

Minister ot Finance.

[Remarks. — Mr. Gait deserves well of his country for iLij letter, it is a masterly specimen of
diplomacy, and an able attempt to remedy past stupidity by entrapping the ap^ents into nn admis-
sion of lesponsibility. They were not to I e caught. J

ORAND TRUNK LaILWAY.

Hon. Mr. Turcotto to build tho road, 36i' miles, at £6,000 stg. per mile, or »1 ,038,000,
aud paid hira in their way, — that is, partly in promissory notes, that were paid, and part
that were not 8187,739. Ooveroraont, by a twist of book-keeping, assuming this to bo
nearly the amount overdrawn from tho London agents, and not caring to trust tho Grand
Trunk, paid direct to Mr. Turcotte, nt various times, $420,590. These two sums make
up the £125,000 stg., and, if undisturbed, release government from its responsibility as
trustee for the line, at a cost to the province, when interest is adjusted, of about 8130,000.*

In the year 1858, an independent "feeder" '.yas projected for the Grand Trunk,
culled the " Chicago and Detroit Junction," to run 60 miles, from Port Hudson, opposite
the company's terminus at Sarnia, to Detroit. The London directors of tho Grand Trunk
were its directors, and Mr. Blackwell, vice-president of the former, was president of tho
latter. Tho line, when completed, in October, 1860, at a cost of $2,190,000, was leased
to the Grand Trunk company for 999 years, at a rent equivalent to 8 per cent, on this
capital. Mr. Baring said of the line, at a London meeting, 30th March, 1860 : " Thia is
:; line which on an estimate will pay itself, if disconnected and severed from the Grand
'J'runk. Those who arc at present interested in the branch undertaking are not desirous
of abandoning their own interest, because they believe it to be a good line." Mr. Shanly
reported quite the contrary. The road ran through a non-paying district; the rent was
853 per mile per week ; the working expenses S40 ; aud the receipts only $28. Wor.se
Rtill — the through freight that it broughi to the main line at this loss, could only be car-
ried further at a further loss.

Two years having passed without Grand Trunk legislation, the London directors, in 1860,
thought the company enLitled to a nice little extra session of their own, and directed their
superintending commissioner, Mr. Watkiu, to communicate their modest request to the
<irovernor J the only act ''ordered" on this occasion being one for capitalising the provin-
cial postage subsidy, upon an estimate of £1,500,000, being somewhere between $350,000
and 8750,000 a year, instead of $60,000, as we were then paying.f A meeting of our
parliament is neither edifying nor economic, and until the good old rule of gentlemen set-
tling their little differonccs "out of doors" is revived, prone to be recriminating and windy.
Mr. Gait, shuddering at the idea of such a visitation, recommended " that the London
directors of the Grand Trunk company be informed that His Excellency does not at present
consider that a special session of parliament should be convened."

* Tho road, though nearly completed three years ago, has, through these complicr lions, been
uever opened. There hiis becu public agitation, parliamentary enquiry, reports, investigations, and
corrospondence, all because one man wrote a stupid letter in the year of grace 1859. Had that letter
merely contained these words : " You will, out of tha balance here released, please place £73,562 lOs.
to tho credit of the Receiver General, for the Arthabaska line," this difficulty would have never occur-
red, ami the people of tliat interesting village would long ago have received their tommy-cods fresh
by rail from the river ; but of such " transactions" are public affairs made up. While the people toil
and earn, their rulers must spend and waste. Were government conducted on "business principles,"
our huge machinery of parliament and " depaitments," costing so much, would have little work.

t One plftn was tho payment by bonds of £1,500,000 in advancn; for 25 years mail service, the
bonds payable at maturity, and the interest annually by the province.

Bonds at 25 years, payable by the province £1,500,000

25 years interest on do,, " " 2,250,000

■■-'■-■•-'-■--■ »o, (1,

Equal to $18,750,000, which, divided crer 2S yeaM} makes $760,000 annually.

£3,750,000 itg.

BISTORT or THE

Canada is strong in legislative power. We have a parliamentary mill, so massive in
slaflf and costliness, tliut it luiglit bo " run " to do the legislative work of " Denmark and the
Duchies" in udditiuu to our own. Our Executive Council is a little parliament of itself,
and may legislate so much, that many think it would alone be a sufficient infliction for
one province; and then wo have individual ministers who are law themselves, if they do not
find one ready-made to suit thcin. The Grand Trunk company used all.

There waa solace in parlianicnt while debentures were to be had. The exhaustion of
these made the company's chronic "financial pressure" like the change of rheumatism
to gout — one more turn of the screw. The public chest, attacked through ministers and
council, promised relief, and regular siege was for a few years maintained.

So early as 185G, the " eminent capitalists " were reduced to ask a loan of £25,000,
" to meet their engagements on this side of the Atlantic; " and another of £12,500, "to meet
interest due in the cities of New York and Boston, on a portion of the bonds of the St.
Lawrence and Atlautio railwny." In 1857, there were loans of 8iOO,000, ^240,000, and
8108,000, which were uot paid wIumi due, but shnfflod over from term to term, till finally
settled — without interest.

There arc a great many versions about the Grand Trunk bill of Jt 100,000 stg., bought
by government in 1859 from the JJank of Upper Canada, but the inferences are that it
was a strait loan of 9480,000 to the company, upon their bill on Glyn, Mills & Co., which
they were expected to accept in nnlicipation of the sale of second preference bonds. At all
events the Grand Trunk got the money and kept it. The bill, after being refused by
Glyn, was redrawn by the bank on the company, in London, to be renewed several times,
till, falling back unpaiJ upon the province, it was charged to "special account," where it
remained unfathered, without interest,, till included by the recent stateiiient in the debt of
the liank of Upper Canada, to be paid some time within twelve years after date — if the
bank is able. The interest already lost is $140,000 — nobody is to pay it. On the 10th
and IGth July, 1800, the secretary of the company begged of Nr. Gait, then in London,
two loans, on the following representations. It appears strange to sec the great company
— in the world'.s banking ho'ise, in the very den of the " capitalists" — distressed for such
trifles.

" I am instructed by the directors of this company to request that you will authorize
the financial agents of tlic province to advance a sum of about £35,000, to meet an urgent
liability of this company, and which this company engages to repay out of the sums due
and to become due by the government to the company, for postal services, unless this loan
is previously reimbursed to the provincial agents out of other resources."

" On the part of the directors of this company, I am desired to represent to you the
very great importance cf a further small loan, say of £15,000, for a short time, pending
other arrangements, with which the company may be enabled to meet several trifling but
pressing payments ; and I am therefore desired by the London Board to ask if, under these
oircumstances, you would authorize the agents of the province to make this further advance
on the security of the moneys due or coming duo to this company for postal services?"

These are the loans which led to sharp language between our Finance Minister and

Mr. Watkin last summer. During the storm.s of February 1801 the company was again in

the agonies of dissolution.

IJ-itract from Mimifcs of Board Mcetiny on ibth Fehnuirtj, 18G1.

Resolved, — That in consequence of the stoppage of the line from snow storms, the
receipts during the last few weeks have been insufficient to meet the working expenses,
and that the company is now in arrear for wages to the extent of one hundred and twenty

GRAND TRUNK RAILWAY.

thousand dollars and upwards, which, unless paid without delay, will involve the immediate
closing of the road, and that to avoid such a calamity the government be applied to for an
advance of one hundred and twenty thousand dollars, to aid in payment of said wages, the
same to be repaid out of tlic receipts of the line.

By order.

(Signed) Joseph Elliott,

Secretary and Treasurer.

An immediate advance of the required ^120,000 averted the "calamity," but whatever
may have been " the receipts of the line," only ^1000 has been repaid to this day.
£245,000 sterling of provincial money, in the hands of the financial agents in London,
was, by authority of Mr. Gait, loaned to the company in 1860. There was delay, default,
and correspondence, but all was [)aid in the end. In 1858 the Receiver General authorized
another loan of £300,000 from the preferential bond money, which was repaid out of the
releases. Our accommodating Executive Council consented, in August 1859, to exchange
valuable securities to the amount of £283,490, lis. lOd., belonging to the Indian fund,
with the Grand Trunk for bonds of the company; but somebody interfered for the "poor
Indian," and the order was cancelled. Mr. John lloss, a member of the Canadian
ministry, caused the financial agents to loan the company half a million of pounds sterling
in provincial debentures, Avhlch appear to have been sold for its necessities, and febought
in 1 8G0 to bo returned.

The whole amount of aid thus irregularly advanced, either by a single minister or by
Orders in Council, exceeds four million of dollars, leaving as result a balance of indebtedness
against the company of about 8300,000. The Bank of Upper Canada has also been freely
used — government assisting.

None but the stupid pretend to understand the printed statements made for market
by joint-stock companies, for their accountants are able strategists, who cither array figures,
like mercenaries of old, on the best paying side, or in accordance with the more honorable
rules of modern warfare, always place them like soldiers, in position, to defend the
weakest points, as determined by the peculiar exigencies of ths immediate campaign. It
is, therefore, fortunate for the present inquiry that, in the year 1801, Messrs. Langton
and (Jrant, commissioners appointed by the government, investigated the aft'airs of the
Grand Trunk Company very thoroughly. Their report, based upon tlie most authentio
evidence, is both voluminous and luminous. To its use, as authority for the statements
which follow, no exception can be taken. It dates only three years back. The fii^uros
have improved little since j they were bad enough then.

The " capital " of the company is stated at $70,000,000 (see Appendix E) by the
commissioners, and another statement shows the actual cost of the road, $55,293,283. liy
the original prospectus, £9,500,000 sterling, or $40,233,332, was declared abundnntly
sufficient to complete the whole, and 85 miles contracted for at $3,309,332 have never
been commenced. Here is, at once, an excess in cost of $12,369,283, the contractors
were paid for more than the amount of their contracts, and the commissioners found
other entries amounting to $2,491,092 for engineers, permanent way, and stations, on
roads that were by contract to be delivered perfect, without further charge. The
augmentation of capital is of easier solution; vnrious losses and miscellaneous dis-
bursements charged to " capital," came to be imputed to the cost of the undertaking. As
examples of systematic deception, take the following :

HISTOBT OF THE

Explosion of steamboat at Longuouil $51,020

Collision ou the Portland divisiou 88,103

. Deficiency on fuel, and supplies discovered ill 1858 ,.... 419,804

Contingencies of offices 55,612

General expenses (Canada), salaries, &c 291,048

Bo. office ill London Gl,920

Running expenses chargeable to revenue 170,630

Lease of Portland road from the be u;inning 2,248,706

3 3,345,407

The Grand Trunk kept, apparently, no profit and loss account; all was profit; open
accounts like these were closed by "capital." Every steamboat blown up — every train
smashed — every waste or foolish expenditure, only added to its riches. At this progression
the company would be a rather wealthy corporation at the end of the present century.
The Longueuil explosion, before being carried to " capital," was, in the first instance,
appropriately charged to "extra works."

The commissioners also found that the " revenue " account was made equally pleasant
with the "capital." By an ingenious process both were helped. The profits of the road
were increased by omitting to deduct various items of expense, and the wealth of the
company V, as increased by charging such expenses to capital. "Revenue" was further
improved by adding to the profits a credit for the carriage of the company's gravel, I'ue!,
stores, and rails, the same as fur freight carried for the public, and the chairman of the
London meeting, amid " hear, hears," could felicitate the shareholders on tiielr profits
thus, as appeared Ijy the company's account;) rendered :

Gross receipts from 1st Jan., 1858, to JiOth June, 18(50... $0,255,142 00
Expenditure same period 5,055,801 (»0

Surplus earnings $599,841 00

It is painful to disturb small balances, but the subject admits of another reading:

Expenditure from 1st Jan., 1858, to 80th June, 1800... !i?.i),05.3,801

Add balance of current charges carried to capital 434,390

36,090,197

Gross receii>ts for same period 80,255,141

Less carriage of gravel, fuel, &c 181,870

0,073,765

Loss on working road $10,432

In the compan3''s books the accounts of revenue, rents, iind interest were kept apart,

to go on accumulating forever. JJrought together, by the commissioners, we have this

cxh ' ion :

^fterest paid to Jan., 1858 ^8,544,080

Lo,ie of Atlantic road , ....' 1,354,084

§4,898,720 : ■ . ■'

Balance to credit of revenue account 861,338

$4,037,382

GRAND TRUNK RAILWAY.

Interest paid IstJuu., 1858, to 30tU June, 18G0 $5,580,804

Do. in aiTcar 531,083

Rent of Atlantic road 894,(182

Do. Detroit road 81,721

Halance against revenue account lG,-<y.i

Add to this, charges omitted for discounts and disburscmeut.s

- 7,111,322

811,148,704
2,072,235

Loss on revenue account $13,220,930

With this los.««, shown by the commissioners, averaging some two millions of dollars
a year, on revenue, of exponaes over profit — and money expended for necessaries or extra-
vagLUCcs without end, one nuvy easily understand how a road, at seven years from its
commencement, which should have cost about forty millions of dollars, came to be com-
puted at seventy millions.

Modern manipulators of the Arabic numerals — high officials among them — are con-
stantly exercised about how certain "items" of account should be "treated." By the
"good old rule — the .simple plan," this anxiety was avoided. ''Items" were placed strait
either to the debit side or to the credit side where they belonged, and the difference
between the sums total was the plus or minus over or under in the affairs stated. A plain
exhibition in 18G0 would have been something like this : —

Ijiabililties (exclusive of capital), debts due 357,229,077

Capitalization of leases and land, on which interest is paid 8,420,252

§05,049,939

Cost of road (new),* including from Portland to Island Pond,

and the Detroit roads, which did not belong to them •.. . 43,000,000

§22,049,9.30

That is, if the sliarcholders had sacrifieod all their paid up capital, and given the road
to iJieir creditors at its value, with their leased roads, Portland and Detroit thrown in
gratis, they would still have remained in debt for over twenty millions of dollars.

* Cost of Grand Trunk roads by contract, &c $4G,2?3,332

Le.s 8.') miles not made $3,309,332

Deduct prices overpaid by contract 7,000,000

10,309,332

35,924,000

(Tost of Portland road 4,700,000 •

" Port Huron and Detroit 2,190,000

§42,814,000

Aj-ftinst mudi to add for London branch, 21 miles, additional plant, &c., there was much to
deduct for deterioration ; out of 212 locomotives, 57, unfit for service, were awaiting repairs or recon-
struction ; a,\^y number of freight and passenger cars were in the same condition ; the rails, bad origin*
ally, and much worn, required replacing — at a coat of millions of dollars! ?' ? '

HISTORY OF THE

Mucli of tho lof>s of tho Grand Trunk lias arisen from ovcrgrnspint;, and H[)a»niodio
cfTortH to improve tlio rccoipts at all lioKardn for effect in London. The loaaos of tho Port-
land and of the Detroit roads have pro^.cd bloodsuckers. Tho traffic so confidently promised
on the coniplution of tho Victoria JJridgo had to bo hnughi at any snorifico. Tlirough
freight (deducting expenses) was carried to Portland and beyond at a dead loss. Cotton,
taken as a " sensation article," got burned. Tho charter of mail lino and other steamers
proved a ruinous experiment. Even at tho Sarnia hotel, liko many a bonifaco at an hum-
bler bar, they proved their own best customers.*

Tho first thorough shock of a paralysis that must end in tho final crisis of disso-
lution overtook the company in 1800, when a systematic frnudulciit concealment of financial
affairs, that had so far deceived tho public, could deceive and bolster up no longer. Its
own exhibit of merely $1,472,000 for the aggregate net earnings of seven years, was shown
to be fallacious, while its annual obligations of more than $3,000,000 for rent and interest,
apart from running expenses, was shown to be real. About twenty-five millions of dollars
were required to pay off matured liabilities, and put the road in order for five years' service.
Application to our government for " further measures of relief," to sink publio uioney in
tho bottomless pik of wasteful mismanagement, had failed, Th.i concern was hopelessly
insolvent ; overwhelmed by a floating debt, and met at every moment by discredit and liti-
gation ; creditors on all sides ready to conuncnco suits ; non-payment of rent on the Port-
land road involving a rcsuaiption of that road by the owners, with all tho (jraud Trunk's
sunk capital upon it; wages had ran in arrear, threatening a complete disorganization of
tho staff; Baring, Bros. & Co. and Glyn, Mills k Co., as preservation against the wasteful
proceedings of cormorants generally, had obtained a judgment on the rolling stock; and
tho preference bondholders had established in our courts their prior rights to roadway and
all appurtenances. All parties hoped to gain by forbearance and agreement, and, taking
cunning advantage of these perplexities, the stockholders and high officials obtained tho
Act of 1862, which gave no five millions of dollars required to make the road safe for traffic,
but purchased temporary peace at tho small cost of empty promises, that defer for a short
time the inevitable Vsorporatc decease.

This last Grand Trunk Kailway Act (25 Vic, Cap. 50) is a burial service over tho
past, and a new charter, which, by annihilating a pait,and postponing the remainder of the
company's liabilities, and shielding its property against all process of law, thus proposes to
give it one more run for existence :

1. All moneys received from the province or imperial govornincnt for postal service
or transport of troops and military stores, are appropriated solely to payment of creditors
other than bondholders or mortgagees.

2. Such creditors shall be paid by the issue of bonds, secured on the foregoing receipts,
upon which the principal and interest shall be a first charge.

3. The company may, to provide rolling stock and other requisites of traffic, issue

equipment mortgage bonds to amount of £500,000 stg., which shall rank as a mortgage on

the road and all appurtenances prior to all others.

« This hotel, fitted up (exclusive of the public refreshment room) luxuriously, for tho superior
officers of the company who might be oalled there, cost, in 18G0 :—

For wages $1,2G2.3'7

«« furniture 5,247.66

'« wines, &c. ,v 5,69 3.34

Against which, the total repeipt» wepo f3,0ig.T3, $13,303.37

UKAND TRUNIT RAILWAY. 83

4. Tho huIdcrH of tiiMt and Hooon'd profcrontial bonds may, ut uiiy liuio wUhiu live
yours, oxchaogo tho huiuu ut par fur first and second preference .stock which tho company
aro authorized to create.

5. Tho aggrcj^ato of company's 7 per cout bonds, due in 18G2, to bo converted into
prefereuco stock of tho company, called " third prefercnco stock."

6. The aggregate of all other bonds created previous to 1801, to be converted into a
perpetual stock, to bo called •' fourth preference stock."

7. Tho interest uii first and second preferential bonds sliull bo live per cent, for ten
years, from iJlst December, 18G1. If converted into stock, tho interest shall bo five per
cent dividends for ten years, and six per cent thereafter in perpetuity. The third prefer-
cnco stock shall bo entitled to four per cent dividend for tea years, and five per cent
thereafter in perpetuity, with a contingent increase to six per coat.

Tho fourth proferencc stock shall bo entitled to three per cent dividends for ten years,
and five per cent thereafter in perpetuity, with a contingent increase to six per cent.

8. From tho passing of this Act all rights of action iu respect to all bonds of tho com-
pany, other than the first and second preferential, shall cease and bo extinguished, and no
proceeding upon such bond or judgment founded thoreou shall bo availublo against any
property of the company.

0. All arrears of interest may be capitalised and converted into stock.

10. Tho earnings ot the company, after payment of interest on laud, leased linos, all
working expenses of the road, and u few small charges, shall bo applied in following order :
Ist. — payment of interest on mortgage equipment bonds ; 2nd, — interest on first preference
bonds or stock ; i). — interest on second preference bonds or stock j 4. — interest on third pre-
ference bonds or stock ; 5. — interest on fourth preference stock ; 0. — three per cent on old
stock of the company for ten years, and thereafter five per cent; 7. — ono per cent addi-
tional interest on third and fourth preference stock ; 8. — interest on debentures issued by
the Province (£3,111,500) ; 9.— redemption of tho equipment mortgage bonds j 10. —
further dividends on tho old stock of tho company; 11. — if interest on preference bonds
or stock remains unpaid during tho first ten years, tho holder may obtain stock for tho
same ; but no right of action at law shall lie against tho company therefor, unless it be sued
on any of its leases.

The annual charge on the whole undertaking, previous to tho passage of the Act of
1862, basing calculations upon tho figures of the report, wonld be, leaving aside dividend
to stockholders arid interest on provincial debentures, as follows :

Interest on floating debt, 813,797,392, (App. F), at 6 per cent $827,838 12

Do. on debenture debt, (App. G) 1,971,036 37

Uent of leased lines and interest on land, (App. I).... 549,102 34

83,347,977 83

There is nothing published here to show the exact relief in mutter of amount gained by
^Jiis Act, but upon the mere readipg, it would statKi thus ;

M HISTORY 0¥ THE

lutcrcfit on bondu myxvd lor fluatiii^ debt, mmc an above , 8!:<*27,HH.S 12

J)o. on land and rents, do. do r>IO,l02 Hi

Do. on .t"»0(>,(H(l) .sti-rliiif^, o<|uipnicnt inort^a;j;e bonds I |(},(IU() i)^

Do. on dubcnturos, as abovu 8l,'J71;0!)<> ;t7

lioss int. on (J per tout prcf. bonds roduccd to 5, 6l4r),84'.>
Do. 7 ,, ordinary „ i, .'JolJ/JSS

Do. (5 ,. „ „ :;, 2.')0,07r)

7li!»,'-'l:i IM»

I,l'll,s2l 37

.*^2,7()t,7(;i SJ

Siibnofiuont arrangements, cspceiaily in elianging floating debt into pret't.'rcneo stoe'k',
reduced thos<c figures so as to make tlie rcduetion of annual ebarg(! about ono niillion of
dollars. Tlio Act stopped the sheriff, but not the interest.

Wo have heard many dozen times from London of groat improvement to be made by
conducting the enterprise upon "commercial principle.-*." TIow convincing is a phrase I
A company with a capital of thirteen niillions of dollars, owing a debt of sixty million of
dollars, (sec Appendix II,) reduces its debt to thirty millions, and increases its capital to
over forty millions, by admitting creditors into copartnership as preference stockholders,
at the same time promising to pay to preferential or privileged parties over two millions
annually out of the profits, when, instead of profit, there had been a lo.ss of about one
million of dollars annually on tlic revenue account of the road, apart from other expendi-
tures I If "commercial principles" can (diarige an annual loss of more than two millions
of dollars into a profit of over two million.^, they may be safely introduced into all joint-
stock operations.

There arc sound e jmmpreial principles, and there are unsound. Freight may bo taken
from the Western States to Portland or Boston on '' commercial princii)lcs," which may bo
at the same time ruinous principles. The American line:? from the chief western markets to
tido water at Philadelphia, New V'ork, or Hestou, arc shorter than our line to Portland ; they
f.rc run on a more favorable parallel of latitude for winter ; and they are continually being
diminished in length by opening " air lines " from points to points that avoid the first
crooks made necessary in running from town to town. We have the evidence of Mr.
Shanly that our road from Toronto to Montreal instead of being " better " than tl e
American roads, was so infamously constructed by the " eminent English contractors " a.s
to bo positively hilly. The engine that can only tug through a train of fifteen cars from
Toronto, can draw easily a train cf thirty cars on the New Vork Central, and on the
western roads, which cost under 320,000 per mile, tiains are seen of sixty to eighty cars.
Is it sound principle t'> compete for freight which must be carried for a less price, a greater
distance at double cost? Our success in competition for western trade depends upon a
highway made by nature, with comparatively small improvon)ents by man — upon the
superiority of our summer conveyance by water, and not upon the inferiority of our winter
conveyance by rail.

The Grand Trunk Compnny depends on something more positive than '• commercial
principles." Having in various ways got in its grasp sixty millions of dollars of borrowed
capital, either by free loan or forced, cxijlusive of over seven million.^ already paid by the

.\ i

nnAND TRUNK RAILWAY.

province for ii.turoNt, anil llioir Aot of 1SC2, prov'ulinp; that all rightn of action and renicdios
ou all bonJri except pruforotitial, shall coaso and Ix; cxtingutMhcd, and no procoodin>; upuu
><uch bond, or jiid-rnient fijundod thereon, Hhall ho available ii},'ainMt any property or
ciTeclM of the company, and that no execution nhall itt.suo a<;ain()t the company on any
judi;mcnt recovered or to bo recovered, except for mortj^agof*, has tho results of the
aforcHaid sixty millions nafcly in possession, secured a;^ainHt every lej;nl process, and
nil its old creditors set at defiance. All classes of them are said to have a;i;reed to this act
(if bankruptcy before its passage. Tiic eondition of the huL,e eharter of absorption is,
that the company shall continue annual payments of interest on the millions thus swallowed
by conversion into stock. Where is this interest to come from, unless u new oomm ,.nion
of piracy against our public chest or public credit is in course of preparation '( The
undertaking to pay nearly three millions of dollars, in variou.s charges, annually out of tho
profits of a road that may barely keep alive and pay running expenses, appears propostorouB.
Those who have deemed a tear should bo shed for the unfortunate Grand Trunk stock-
holders should be prepared with five tears for its creditors. With an investment of porhapn
loss than ten millions of dollars,* these stockholders were in po.ssession of property, on
whieh there had been an expenditure (good or bad) of over seventy millions, in addition to
all earnings; and this possession is now protected against all legal proceedings — against the
ordinary laws of the land. They are only under a promise to pay interest that they may
safely break, like all previous promises. They control over one thousand miles of Canadian
railways, to bo run with as much irregularity and annoyance to tho public as thoy sec fit.
They havo patronage in tho appointment and employment of men by the thousand,'!' they

* When tlio pro3pcclU3 was issued tlicro had been siibscribcil

in tlie old eonipniiics.. jL' G83,40(» ?3,32r),8jO

i'irst issue of flrancl Trunk .«itoik, "A" shares 1,811,500 8,816,961

Wanted of " FV shnrra to complete innount of present stock 1,301,835

Prc-aont share capital $13,503,049

Thus, only ten millions of dollars lins been subscribed since tlio prospocdis came out. If there

Ims been much change of stock, tho thirteen millions niny not have cost ten to Iho present liolders, for

Ihut would be merely about 25 jicr cent discount. At Inst quotutions it wns at 80 per cent discount.

Tho present value of the whole stock under llio new arrangement may be thus estimnled nt the

prici'3 of last London {|Uolntions :

Original share capital, . .$13,50.3,040, /77) 20 52,700,72!)

4th preferoncc stock— say 20,000,000, Oh 25 5,000,000

3rd " " " 7,142,035,^50 3,571,018

in.

!i?ll,27l,747
This is llic price at which holders arc willing lo sell out, but not the price that others would buy

t Report of Insjiccti't- of Railways for l.SCO; jnihlishcd in 1802.

Number of persons employed ou all the railways of Canada :—

At Head offices 175 On permanent way and work 2,019

Telegrapli operators 127 Kngino men 250

Station agents 308 Firemen 200

Switchmen 242 Brakes nnd Baggage men... . 377

Others at stations 833 Conductors ■. 1 0.'i

Mechanics in repair and machine shops.. 1,.S38 For elevators and shipping.. 14

Total 0,000

HZITORT OF THE

have the patronage of puroha^os onJ small contraotfl Id Conada; thoy have profitu on Hup-
plicB ontl cotnniiHfllonH to glvo obrond ; thoy have influoDco in clcctionH, nnd can control
votcB in parliament ; tlioir iiivoHtniont of ton millionn rankH in our IIhcuI urrangotnontH as
nearly one to ten ngain.st tlio wlu»lo people and wealth of ('nniida. TarilTH nnd taxation nrt!
the great burden of pnrliiunent when aHRemblod. Wo have n fitinnio dopnrtnient, with
cxoiHe, cuRtom Iiouhom and collcctorH. Nine-tonthn of the net amount thoy can nil gather
is to pay tho oxpcnHOs of our provincial government, in every branch, nnd nearly the other
tenth id levied to pay intercnt for tho Orand Trunk. All tho difTuMiltioK of the few pnut
yoarfl, ariHing from a rovonno fulling Bhort of expenditure, are duo to this Mnorificc. Uut
for that wo should have a eontinucd surpluH.

Wo often hear of tho "moral obligations" of tho province towards tho company.
Our moral obligationH hiive been fulfilled faithfully and honorably. All the immorality has
been on tho other iiide. Our only fuuU has been too much good nature in humouring tho
company, like a spoiled child, in every thing they asked. Had wo rigidly held them to
their contracts — had wo rofu.sed to advance tho provincinl giinrantoo further than it could
be rightly claime.l on money expended, "with duo regard to economy" — had wo refused
annual changes by acts of parliament, or the continued use of public funds to " tide over "
thoir embarrassments, thoy would have fallen back on their own resources, expended their
own money judiciously, completed their roads at reasonable cost, nnd by good management
made them self-supporting. Publio money flowed to them too easily, find it not, there
would have been no waste and disappearance of two or three millions of dollars annually.
The debt to tho province thus stands in the public accounts ot 18(33 :

Provincial per cent debentures, due in 1878 and 1880, .€51,111,500 stg., $15,142,63:1 84
Interest paid on ditto from Ist July 1850 to 31st Jan. 1803 7,277,505 01

$U2,420,138 35
This interest, amounting, with commissions, to nearly a million of dollars annually

Pei'tont in the employ of the Qrand Trunk Compamj, 18C0.

Persons Pay ^ day. Persons Pny tHJay.

Managing Director's ofllcc. 3.... $ 8 Laborers 408 |387

Secretary's '< . . 14.... 45 Engineer's department 0.... 41

Paymaster's ".. 5 IG Assistants 227 362

General trailic '<.. 10.... 83 Mechanics 581.... 49C

Agents IC... 40 Locomotive & car d<"i>artment, 1259.. . .1555

About stations, conduct- Store " 21.... 35

ors, &c C44 847 Fuel " 144.. ..143

Total number, 3,330. Daily pay, $4,183 ; or $1,300,000 ^ annum.

This is exclusive of pay to president and directors, and salaries of tlio London ofTicc, nnd for
extra hands employed on temporary service.

A pretty army this, to be scattered over tho country for election work.

Earnings of 12 lines nnd branches in 1860 $C,722,CC6

Expenses of all " " " 5,070,350

Net income (bow much charged to themselves?) $1,040,150

Average earnings per mile $03.05

" expenses per " 53.7.')— or 85 .^ cent.

Average running speed .between stations # hour: Express trainH 29 miles ;

Freight do., 15 miles.
Whole length of lines run In Canada ))y all tho roads 1,880 miles.

URAND TRUNK RAILWAY.

wo tnual continue pixyinp; in perpotiiiJy, uijIckh tlio whole concern id brouglit to unlo, or wo
claim an second nioitgngcos.

(jostly hns boon our introduction to thoflo "eminent cnpitnlistH" who, nccording to
thntmiifltor of ceremonies, Mr. Hinckn, wore to construct all our roads nt " very little cost
to tho province." We nm oftori told of their great eonvenionco, and of tho increased
value c,f real property. Hotli true; property lias jnuch ndvanceil in a dozen yearn, and
railrondM have had their influence, among them many American roadn that touch our
border; but wo might have had all re(|ulred for our eonvcnienco without a ftaerifico of
twenty -two millions of dollars. Many think that but fur tho «can(lal of Grand Trunk
misraanngcmcnt, its evil influence on our Unance.s, and the discredit it threw upon railway
ontorpriHo, wo might to-day have in operation more miles of road, useful to ourselves, run
with more convenience to our people, and doing more to raise tho price of real estuto than
ever the (Jrand Trunk has done, " in running along tlm front," or carrying through freight
from tho western to the eastern states.

And tho London fmnncial agents of tho province, what of them 'i Well, they woro
controller.) of tho (J rand Trunk fichcmo from the beginning, and liave been principal
managers throughout. Thf^ appear as the " English stockholdcrH," whoso meetings in
London, to urgo claims upon tho province, have been called meetings of Messrs. Baring,
Brothers Jk, Co., and Messrs. Glyn, Mills J<c Co., outside their own offices. That they have
sunk much money in tho concern, possibly much more than they intended, is probable, for
tho Province could not continue forever relieving them from their own engagements
volunteered to tho company; but wo must remember they were in receipt of enormous
sums for commission and casual finaneial advantages, which aro counted in by tho agents
of bankrupt corporations as offaets for loss of capital. Tho admission, in a letter to our
Finance Minister, signed by both tho firms, dated 0th June, 1801, relative to sorao small
loans, is indicativo of unprofitable relationship. " Wo considered," they say, " that it was
right that you should bo informed of tho inability of the company to repay them, and that
you would naturally bo interested in being acquainted with a eircumstaneo which tends to

show tho INTIMATE CONNECTION OP THE AFFAIRS OF THE CrllANP TUUNK CcMiVNY
WITH TIIK FINANCIAl* AURANUEMKNTS OF YOUR GOVERNMENT." Their position, as

financial agents for Canada and bankers to tho company, implicated and broutiht to a level
the affairs of a bankrupt corporation with those of a rich province. Provincial interests
became subordinate to Grand Trunk interests, and tho public credit of Cunada, which
should have stood second only to that of Great Britain, fell to companionship with
struggling infant colonicH on the other side of tho globe.* Men situated as theso two firms
have been, must profit by a prolonged existence of tho railway ''company," though it bo
merely in name, and everybody else be a loser. As now organized, they may continue
running tho road, like a hired farm, till all is exhausted. When tho road bed is broken
up, tics rotted, rails worn, cars and engines dilapidated, other plant gone, and buildings in
ruins — when all is got out of past outlay that can be got, then they may abandon possession.

* London quotation of provincial securities — Slarch 2, 18C4.

British 0«1umbia, G per c$nt 102 0104

Nova Scotia, „ 104 „ 100

New Brunswick, „ 101 „ 103

Canada, „ 90 „ 103

38 HISTORY OP THB

But are tho lives and piopcrty of the people of Canada to be daily perilled during u
protracted period of destruction':' Had railways existed in the tiin.3 of our ancestors,
custom and usago would have long since established a common law, irrespective of statute,
declaring a dangerous railway track a nuisance to bo forthwith abated, under the hcavio?t
penalties. This principle of common law exists always, though there may bo no open
declaration, and to it the people, if possessed of spirit, may some day appeal.

lie who would play the part of prophet before the fiict, stands in slippery places, for
coincidences and contingencies In the world's allfiii's, of which tho most far-seeing could
never dream, often laugh to naught tho wisest estimates of studious calculators. Spcaldng,
then, with due reserve for errant possibilities, and admitting the actuality of increased
receipts,* the Grand Trunk Railway Company may some day go again into bankruptcy,
with another series of creditors to share tho fortunes of tho past. The old phrases of
" reviving confidence," "better feeling iu tlie money market," " reduced workino; expenses,"
" relieved embarrassments," "classification of interests," " amicable arrangements," "moral
obligations of tho province," "sensible reaction," "developments of trade and truffle,
involving complications commercial and political," and dozens more like them, which have
for years past formed the whole stock in trade of the London meetings of shareholders, are
worn out, and can no longer pass current as substitute fur <!Asii to pay the company's
present engagements, which arc increased rather than diminished by retention of the
property, if any expcnJitiirc be made for its maintenance, By the Act of 18G2, tlie
capital of all creditors, except .holders of first and second preference bonds, is annihilated
into stock, upon condition of receiving preference interest that the company cannot pay;
the capital invested by the province is, for the time, equally, though oppositely annihilated
by tho pro\ision for nut paying interest; the capital of the old stockholders is being
annihilated in tho attempt to carry on, under onishiug engagements, an undertaking that,
instead of earning a surplus .'•uiricieiit to nicit these engagements, may yearly fall into
arrears. The farce is played out, and the audience disgusted, l^et it end with the
common conclusion, a " flare up."

Out of the ashes of dissolution the first and second bcndlioklers can alorc rise as the
new ]'li(oni.x, and, with tho provincial govcramcnt as second claimant, take the whole.
8ueh original stockholders as Avero wortliy of eonimisseration have disappeared, or, if they
exist, in what way do they command greater sympathy than our own eit.izcns, who manfully
bear their loss in tho Champlain or Laehine roads without squeaking or howling? There

• Comparative ncckli/ rrriinin of (Iraihl. Trunk Ixaihrai/.

ISCO. 18G1. 18G3. 18IJ4.

S $ . :? S

• St woek Jii.ii A0,?,?,1 .^)'.>,588 !ir..l-1S f):i,0(;i!

:!iul (10 • .n:!,33-t r.;),874 ;io,8:m s7,S21

•:rd (io r.O.O!>T ."".,5.1!) I>1,1.".;: Ml,7'i7

■nil do r>2,12'i -17,002 !);i,727. n5,8:!4

1st week Fob .53,52!) .la.ar.a 80,5."8 88,505

2nd do 50,733 10,470 90,l7i) 93,342

3rd do 50,920 42,220 77,100 08,400

4th do 55,091 54,300 90,215 01,080

lit week March 50,458 C.^,309 70,010 90,820

The figures for 1800 and l.'!01 .arc t.ikcii from tlic ccnmissionors' icport; tlioKO for 1803 and 1804
from returns published in tho new.'p.iiierp, Avithout liuowledge of wliat mny lie included for carria{]fe of
gravel, firewood, or other work of the comii.'iny. People niny enquire where tlii.-J increase comes from,
ana what the cost of it '!

fiRAND TIIUNK RAILWAY.

arc alwayd hundreds of .schemes in Londoh, many of them mere bubbles, oftering the entice-
ment of unuMUul profits, upon whicli men, as in all the world over, are ever ready to ri,><k
something. It would be ploasunL if .speeulativo experiments were always profitable, but ii;
i.s not so — they must be entered upon with the possibility of loss. No measure of relief
MOW would repay the poor man or woman who sold out at SO per cent discount, though it
might give the speculator one hundred pounds for wiiat cost him only twenty,* The
creditc's became implicated neither from love, p-itriotism, nor compulsion, but simply as
traders, either in money or coarser merchandize, intent on inordinate gain,| The road,
with its stockholders and creditors, was nothing more than an ordinary commercial complica-
tion, subject to all the incidents thereupon attendant; nor was there anything peculiar in its
failure to remove or take it out of the ordinary cour.->e or inevitable law of trade.

With the manly energy of the British race, ever ready to accept accomplished facts,
we must face the question as a reality. The first and second bondholders and the provin-
cial government are positively owners of the road, with all its branches and appurtenances.
Many men of experience who have crdculatcd the chances, casualties and contingencies,
argue thus : let them take possession — their interests arc equal, fifteen millions of dollars
each — thirty millions of dollars is, leaving out the leased linos, a fair price. Worked upon
this capikuiand the good credit thereby established, not with the vexatious pomp of a German
priufipality, but practically, as a common sense and common trade undertaking, it might pay
its way or become profitable. AVith such an arrangement, we could afford to begcnerous.
We are already paying the interest on our claim as a gift. The principal will only le due
in fr jm fourteen to sixteen years, and we may then feel rich enough to give that also.
Suppose we do better. Fifteen millions of dollars is a big present, but, after all the com-
plications, we might feel ashamed to see every party a loser except the province. We
miglit anticipate, and make the gift now, for wo can oulyycc7it then. Bin dat qui cito
iliU. IJettcr secure the credit of giving twice than have the whole wheedled out of us
without even thanks. With a new organization upon a capital of thirty millions of dollars,
one-half the stock belonging to the preferouce bondholders and the other to the province,
we could resign our half to the old stockholders and their former creditors, to bo divided
as equal justice pro rata between them. This would amount to six or seven shillings in

* J'rires of (Innid Trunk Sccurilifs in Loiulun, 24//t Fcbruanj, 1S04, <^ X'lOO.

Porllaiul rottil ."iO 01

(Jnind Trunk RM. stock lOJ 20^^

1st picfercnco boudj 7:2 74

Doleiveii " 5.') CO

2iul preference bonds CG GS

53
.')'J
42
28
25

Deterred preference bonds t>0

;!rd prv-fercnce stock 40

Deferred " 3S

4th prelcreiice stock 20

Deferred " 23

Tims, the stock and the bonds, iiccordiiiff to their position, range from 20 to 81 •^ cent diKcount
at the latest dates ; six .^hillings in the pound, or 70 per cent, discount on till but the preference bondt),
is ii lietter average tlitin could be got o.'i tiie stock market for the whole lot, preference bonds excepted.

f The onnnissioners in their reiioit show c."itLaviigant waste iu purchase?, expenditure, and piiy-
nient.-^, made, without regard to wants or prices charged, that in part explain how the "capital" bad
become swelled to seventy million, by the aid of" creditors."

In 1801, Mr. William Workman, who, with Mr. Hugh Allan, had, as auditors, examined Grand
Tiuuk account^, sul)niitteil one for supplies furnished by one lirm in Montreal during the past year,
amounting to $203,048. 13, to Mr. William Darling, Mr. Alexander Bryson, and myself. Our report,
published at the time, showed an ovcichirgc of §41,:; j5. 23 above current prices that any other party
would hare paid in llontroal, i)utting the best face on it, as a large allowance was made for commis-
sion. Another scrutiny showed tl, it n person might have paid a bonus of $50,000 for the privilege of
fdriiishing those sujjplics at same prices, and ha.e still made a profit. Imitating the magnificent pro-
digality of our public departments, accounts were "paid on the face," without enquiry, if certitied by
any one, wlicthcr he knew anything about them or not.

HISTORY CF THE

the pound upon their respective claims or investments — an unusually fair dividend on an
unfortunate speculation, and preferable to the threatened loss of every farthing. 3Ir.
Watkins, the president, and Mr. Brydgcs, the managing director here, arc both first-class
men to carry out a reconstruction, or recast, if there bo elsewhere manliness to grapple
with the qusation.

In conclusion so far, the CJrand Trunk llaihvay company of Canada, originating in a
magnificent London stock-jobbing conception, of which Messrs. Baring, Bros. & Co., Glyn,
Mills & Co., and Peto, Brassey, Betts & Jackson, became the exponents, brought into
existence and nurtured into action by their control over the government of the province,
had, in 1862, proved an utter failure, both as a gambling stock in the London money mar-
ket and as a business operation in Canada. To this complcsiou hud it come at last.

Such is the result of reasoning upon documentary evidence found published — such
the doctrinaire of the question ; and when ended, it may be met, like too much of the
world's reasoning, by the word "visionary." "What," says the '"practical" man, "is the
use of talking now ? liCt the dead past bury its dead. The present " accomplished fact "
is a revival, under the Act of 1S62, that, by converting creditors into stockholders, has
created a new company, with a capital of forty to forty-five millions of dollars, and no debts ;
and though this capital may not to-day be worth ten millions, it will surely rise by reason
of enormously increased receipts one hundred per cent within twelve months. The
preference bondholders ask nothing better than their present position j and what nonsense
to expect shareholders to exchange forty-five millions of stock for fifteen millions of
provincial guarantee that has been already given up ! The Grand Trunk may now say to
all advisers and impertinent intcrmeddlers, " Laisscz-nous/airc — let vs fix it."

Not so fast. The fifteen millions op provincial oij.\rantee is not oiven
UP. AND THE Grand Trunk Company, if the people be not upon the alert, may

YET BUY a AVUOLE PARLIAMENT TO OBTAIN IT.

For immediate purposes, the visionary must give place to the practical man ; but
before deciding between them, we must determine " which is which." Ts he the practical
man who affirms the prosperity of the Grand Trunk Company under the present arrange-
ments, or is it he who doubts ? A solution may be essayed upon the last semi-annual report
of the directors. The new company, in getting ten years extension of time, is precisely in
the position of a merchant who has bought an immense bankrupt estate, say a "lumbering
concern," cither his own or that of some other party, and the only (question is, can he save
himself with profit, or has he paid too much ? In one case, he obtains credit that will
carry him through; and in the other, after a few years floundering, he 7nust break down.
To this test must the Grand Trunk be brought, and first stand the liabilities. The following
exhibits the provision made last December out of current receipts for interest :

Interest, &c., paid on land iGl,98G 1 4

Do. on mortgage to Bank ot Upper Canada... 4,423 10 2
Do. promissory notes, European exchange... 1,712 I'd 6
Do. British American Land Co.'s debentures (ilG 8 9

Do. Montreal Seminary debentures 010 8 9

Do. Island Pond debentures.., 2,700

Half-yearly instalment Portland Sinking Fund,.. 2,31112 4

X14,367 10

ORAND TRUNK RAILWAY,

Atlantic and St. Lawrence lease....' 31,002 4 2

Detroit lino lease 11,250

First preference bond interest for half-year 40,020 15

Second do. do. do 24,715

43,242 4 2

71,035 15

i k

£132,245 Oskg.

If this be the half-yearly interest on these accounts, we huvc here $1,287,184 per
annum, and no mention of the city of Montreal bonds shows that all things are not included.
Reference back to page 30 will show that about the same amount is required annually for
wages and salaries. Estimating the " life of a rail " at ten years, over one hundred miles
of track must be relaid annually. The iron would cost over 8300,000 above the value of
the old rails, to which must be added the cost of many hundred thousanJs of tics, with
other accessories. The road-bed, buildings, and fences require continued outliiy ; and then
there is the wear aud tear and destruction of locomotives, cars, and other stock, to be made
good annually, with the fuel, oil, and hundreds of expenditures called for in running the
road, which, under the head of " expenses including reacwals," are seen to be .^3,000,000
per annum. These things added together look very like an annual liability of five millions
of dollars, for previous exposure renders the company's bookkeeping an imperfect data, to
which another million for dividends to preference shareholders must bo added before the
old shareholders or the province can expect anything for dividend or intorost. To cover
all would require a weekly receipt for each of the fil'ty-two week's in the year of over
$125,000 per week in hard eash, bringing " American currency " down to its value, and
omitting tickets foi' carriage of the company's firewood and gravel ; and when the company
can exhibit such receipts, it may be considered as paying its way. Tluoughout these
calculations figures have only been used as approximates, for they are found divergent in
different statements, and would be not more reliable if they agreed.

To this permanent liability must be added the immediate liability for increase of roll-
ing stock, the deficiency in which has for years been paraded as the cause for unsatisfactory
traffic. A comparison between 1861, when the necessity of great increase was shown by
Mr. Sbanly and othert, and 1863,does not exhibit much improvementat the cud of three years.

Tjocomotives -

Cars, 1st class

2nd do. and mixed -

Baggage and Post office

Baggage

Box -

Cattle -

Platform -

Gcavel -

Break vans

Snow plows - • •

Dec. 1860.

Doc. 1863.

212

227

- 92

100

- 36

- 22

1625

1853

- 51

1068

1073

133

- 34 .

r 84 -

42 HISTORY 01 THE

The conimissiuacrs of 1861 found 57 loooiuotivcs out of tho 212, and an immense uum-
bci* of cars unfit for ficrvicc, waiting repairs, or reconstruction. If these things, now, or
old, or useless, arc, like ships of war, kept on tho register, whether in "ordinary" or in
V commission," a catalogue of numbers may give an cxagiu,cr!ited idea of eifcctive I'orco.
Wo lioar much lately of " diminished working expenses," which is always one indication
of neglected rolling stock, and roadway running to destruction.

On the other side of tho account, to meet liabilities, the company published a very
ilatlering statement of receipts and profits.

The following statement shows the percentage rate of ordinary working expenses since
180 1, inclusive: —

Juno half-year. Dec. hnll-yettr.

1861 - 87.3'J per cent. - - 08.64 per cent.
1S02 - - 77.23 " - - - - 59.68 "
180a - - 03.87 '< . - . . 57.56 "

'flic ibllowing statement shows the progress of the net revenue of the company pinoe
1850:"

Year. Miles open. Eavni,.-, Kxpenses, Revenue Yearly

' .. . including Balance. Total.

^ renewals. £ stg. jC stg.

185!)— June... 880 223,930 203,002 20,807) -3 g^^

'' Dec... SSO 282,939 230,448 52,490) ' '

1800— June... 978 ri4,811 268,810 ^^>^^^ 1 102 684

" Dec. ...978 367,847 311,163 56,684 J "'' "

1861~Juno...l090 347,110 300,324 ±0,785 1 ^j., j,,.,

•' Dec. ...1090 419,469 323,701 95,707) "'"''*'

1862— June. .1090 382,992 319,556 63,430 | j^^, .,,,,,

" Dec. ..1090 439,361 332,563 100,797) '"""*

1803— June.. .1090 434,339 310,166 124,173 | .,^y j^^j^

Dec. ..1090 477,838 312,110 165,728)"' ''

Figures were once honorable characters, to be aceeptoJ upon introduction ; but now,
paitalung of the ininiorality of the times, they uiiist be received Avith cousidorato dintrust.
IJnfortunately for their reputation, the first three lines in the above .statcrueui t-liowing a
"revenue balance" or net profit cfctl 19,359 ($r)8i),85!)), did service in tho statcni>iit to
bo fouml on rolerouce back to page 30, where the amount of receipts is made up ;<:^ follows :

1858 *2,2o6,29.;

As above, 1859 £506,809, or 2,466,702

" first half of 1860 314,811, or 1,532,084

86,255,142

Tlie commissioner.s then showed plainly that instead of there being any prolit i\ ihi.s;!
years the positive loss was §10,431. If then the first three half-years' pioJits o('XU0,3r)!) —
in the statement published by the directors of the company for the inforniatiou of in.uilviiul
generally, on the 31st December last — arc thus rudely swept away, Vvliat value f^an we put
on the "revenue balance " of tho following seven half-years ? Who tin tell us tho aojouut

aRAKD TRUNK RAILWAY.

in wood and gravel tickets included, or the discount on ^'American currency/' counted at
par. There was a discount or deduction to be made of 097,488 on what are here returned
as tho profits of the last half year, when the price of gold ranged from 30 to 50. What
umst tho deduction be this year, when gold has run up to over 60 ? Again, the jump in
receipts from 1862 to 1863 would appear excoptional, as the accident of war, business, and
war prices that have raised freights in the States. Will the advanc in traffic be main-
tained when war ends, and the overstocked American roads carry freight " for nothing,"
in their race of competition ?

The extraordinary increase in this last half-year, where tho receipts nearly equal those
of any whole year previous to 1860, and tho profits are called £58,931 sterling more than
in tho corresponding period of the year previous, is thus detailed in tho newspapers :

1862. isg:;.

Miles run 2,324,281 2,532,184

Freight carried 325,337 tons— £286,273 stg. 372,984 tons— £282,067 st<r

Passengers 453,926— £127,180 sfg. 529,723— £170,48-1 stj^.

Gross receipts £439,361 stg. £477,839 stg.

Expenses £332,563 „ £312,111 „

Net profit £106,797 „ £165,728 „

Wood consumed 59,628 cords 58,113 cords

The freight was taken in the last account at a lower rate, as an increase of near
50,000 tons shows a decrease of £4106 sterling in receipts. Passengers were more liberal,
for an increase of 75,797 gave a gain of £43,304 sterling, or $2.78 for each, while the
average rate in 1862 was $1.35. The running of 200,000 more miles than in 1862, with
50,000 tons additional freight and 75,797 additional passengers, on a consumption of 1500
cords less fuel, is a fact to be noted by all inventors of cooking stoves. An increase of 10
per cent in traction moved by a decrease of 2i per cent of force, must suggest tho idea of
'* cooking." It i.« due rather to good luck then management that there has been little loss
of life upon this road from the beginning.

There is a continued harping on the " postal subsidy." The wisest thing in tho
Urand Trunk acts is the provision, that the allowance for mail service shall be fixed by
the Crovernor in Council ; and but for this, we should be compelled to pay the company
another tenth of our revenue for carrying mails, or send them by the old conveyances.
The company itself names the real value of the service by what it charges to express
eompanies who have an accompanying car or share the same.. All we pay above that, is a
clear gift, and what favors do wo owe that demand generosity? From the opening of tho
road to the 30th June 1860, the company received for " cypress " ^101,397, and for
''mails" $456,689, and we want explanation for the difference. At present we arc
paying for postal service $100 per mile for night and day, or about $80,000 per
annum, when, in all justice, the obligation to carry tho mails free should have been
made a condition, when wc undertook to pay nearly a million of dollars of interest annually.
Were the company in the hands of Mr. Brassey himself, he could hardly have the
brass to urge a postal claim, and yet it is one of the ,>olitical " items " on which they are
still fighting the people of Canada.

. The net revenue for 1862 and 1863, so immeasurably in excess of anything preceding'

BISTORT Of THB OIIANS TRUNK RAILWAY.

is stated at £460,184, including *' American ourrenoy/' and, for anything we know to the
contrary, wood and grai^cl tickets ; while the interest due for this same period on the
claims provided for on the Slst December alone amounts to £528,980 sterling, or a
deficiency in the two first years in this one head of $385,052. What will the arrears be
when the net profit is reduced to cosh, and all the other fresh indebtedness of the company
in two years is added ?

If the Grand Trunk stockholders are simply elated with their present prospects, those
of the GroJit Western Railway should be in hysterics; if one is making money, the other
must be 'coining." The three last weekly reports of the Great Western, running, with
its branches, 846 miles, as published in the London Canadian Ketos, amount to $201,920,
while those of the Grand Trunk, riinning 1090 miles, are, for the corresponding three
weeks, $277,671 ; the former reporting earnings for the time of $583.80 per mile, and the
latter $254.74. The return of the Great Western for the week ending 12th March, 1864,
is $75,226.72, and of the Grand Trunk for the week ending 18th March, $100,429.60—
that is, $217.42 per mile per week for one, and $92 13 for the other. Last year the
comparison showed still better for the Great Western, yet its stock is quite as fiat as its
compeers, or flatter, for it is at ^0 per cent discount. Taking the Great Western as a
rule, the receipts of the Grand Trunk must be more than doubled before the stock can rise.

The future is still, as in the days of Homer, " in the lap of the gods," and who shall
say what they will shake out ? It may be golden showers, pouring seven or eight millions
of dollars annually into the cofiers of the Grand Trunk company, to relieve us from the
payment of interest, and provide a sinking fund for payment to the Province of £400,000
stg. on the 1st January, 1877, £1,811,500 on the 1st January, 1879— and £900,000 on
the 1st July, 1880. Time runs fast in the lives of nations and corporations; thirteen years
are soon gone through ; and when the Bank of Upper Canada has made its last payment,
the railway can begin with its first.

But golden showers arc not embraced in the category of modern probabilities. A loss
of twenty to thirty millions of dollars, sunk in operations of the last twelve years, gives
little promise of one hundred millions of profit, required to carry out this programme in
the next twelve. Nobody doubts the energy or ability of Mr. Brydges, but a cruel handi-
cap may lose the best race. An immense investment seldom proves a total loss. Worked
upon a capital commensurate to the capacity of the country, and content with the traffic
that flows naturally, there appears no reason why a fair compensation for service rendered
should not in this, as in other commercial enterprises, produce a fair return ; while
the effort to make interest, not on real capital but on columns of figures represent-
ing capital long ago consumed and no longer in existence, predicates itself upon a
forced trade, at what may prove ruination prices. Our great public concernment is a
safe road, well stocked, running at good speed, and managed with the greatest
convenience for the people. AVhile in the enjoyment of this, we have nothing to say, nor
have the stockholders; unless, failing in their present organization, they seek the only
remedy in a nominal reduction of capital. Then, and for that purpose only, should the
Grand Trunk Bailway Company of Canada be permitted to enter one more appearance
before our high court of parliament.

APPENDIX.

APPENDIX A.

List of Shareholders of the Grand Trunk llailway Company of Canada (A series)
on the 31st December, 1854, (signed Benjamin Holmes, vicc-presid nt,) as returned
by the Provincial Secretary to an Address of the Legislative AHsembly. 28th April »
1855. (App. E.E.) Shares £25 sterling each.

Shares.

W. 8. Alexander 24

Miss C. Alexander 8

Miss A. Alexander . 8

W. D. Alexander 32

G.W.Alexander 16

J. H. AUoyne 24

Miss M. Alexander 40

James Alexander 80

Col. Ilobt. Alexander 24

W. S. Andrews 96

Miss C. S. Alexander 16

John Allan 48

Travers Smith Amory 72

William Alleard 24

A.H.Ashley 112

Thomas Aspinell 24

Anselm de Arroyavo 48

George Ashlin 24

G. Ashley and others 8

Mary Ashlin 24

Henry Barnett 48

C.J.Baker 16

A. C. Barclay „ 48

David Barclay 48

Robt. Botts 16

Joseph Baxeiiclalc 11)2

Henry Back 48

John A. Back 24

Wm. Baker 24

John J'asa 24

E. L. Bette 96

W. G.Beare :J2

Joseph Bennet 8

G. A. J. C. Bentinck 24

Moses Bersoniel 96

G. C. L. Berkeley 16

H. D. Blythe 72

James Blythe 72

Mrs C. B. Blackwood 8

Charles Biggs 56

H. W.Blake 480

W. S. Binney 48

Robt. Blackford 160

Thomas Booth 48

E. A. Bowring 52

James Borland 8

A. Boyd 40

Shares.

W. R.A.Boyle 8

n. Bollngbrooke 24

W. Boorman 8

T. Boorman 40

J.E. Prodhurst 144

Augustus Browne 40

Bragg & Slokdalo 48

C.D.Bruce 48

C. J. Bosanquet 32

David Bromelaw 24

MissC. Bromfield 8

W. S. Broadwood 96

J. S. Broadwood 1 04

James Bruce 96

Hon. P. P. Bouveree 48

Boudier, Fabris & Co 192

T. C. Broadwood 96

A. J. Buuton 48

W. Barker 16

Elislia Bushby 16

Edward Burstall 264

H.Backerfield 8

Henry Bullock 24

J. G.Burke 96

Robert Bushnoll 6

Chas. Butler 24

Charles Binus 48

Thomas Brassey 144

George Buniaru 24

Edw. H. Baldock 192

George A. Bastock 8

Wm. Blaiklock 90

Baring Bros. & Co 6798

P.L.Austin 40

Robert Alexander 25

Edw. W. Chapman 48

W. Chapman .328

H. C. Clapman 200

Miss S. A. Challinor 16

John Chapman 8

W. E. Cuttley 88

Thomas Chapman 30

The.Chiouolm 48

John Chapman 96

J. W. Cuter .. 144

A. Chamberlain 8

Alex. Calder 24

Shares'

Charles Christrun 304

Robt. Chamberlain 16

Frederick Cass 24

W. Castle 24

H. G. Cuttlee 88

R, Campim 16

John Cattley 144

Carden & Whitehead 48

R. S. Cahill 24

Edw. Chalmei-3 48

MissF. Cheerc H

N.Clark 16

T. W. Clagett 16

Sir W. Clay, Bart 72

Revd. C. B. Coney 52

Coulon, Hentsch & Co. . . . 48
Crawford, Cohurt & Co . . . 96

J.E. Colman 256

S. P. Cockerell 48

R. W.Crawford 48

A.Collier -. . . . 16

M.C.Cotton 120

F. R. Frampton 16

A. B. Cochun 48

S. W. Cox 40

Noah Crook 28

E.S. Codd 24

C. Cawthoru 40

John Oouleton 24

W. J. Collier 16

SirW. Cobitt 200

E. Cuthbert 40

Jeffrey Cullcn 16

H. J. Curtis 24

A. K.Cutbill 208

E. B. Cureton 24

T. S. Cutbill 44

Edw. Cropper 210

George Clark IS

Charles Crowden H

Geo. Charlwood .,. 10

Augt. Dashier 1 92

F. A. Dashwood 24

M. D. D. Dalison 24

G. F. Davis 24

R. Daglish, jr 24

Darthey, Bros 24

APPENDIX.

W. T.S.Daniel 48

M. T. D. DeNitre 48

F. Dugnrt \0

John Dillon 1552

O. 11. Donaldson 24

Revd. C. Dinry 8

Henry Druit IG

lieinnmin Draegcr 24

P. Dunbury 72

R. D. Dunn 180

Richd. Dunn 200

S. Dobrce & Sons 18

T. A. Davenport IG

Wra.Earlo 272

Hardman Earle 200

Thomas Earlo 48

Sir J. Easthope 4H

Charles Edwards 24

F.W. Earls 50

H. S. Easty 20

Miss E.Ellis IG

Russell Ellico ;)G

Joseph Esdailo 18

.T. E. Errington 48

Mrs. M. M. L. Ew.irt 40

J. C. Ewart 9G

Eyre Evans 48

Aliss C. Evans 50

William Ewart. 48

T. Farmer 120

O. Furrur 17G

John Farie 24

Thomas Forrance I'C

Robt. Ferguson , 24

Joseph Felham 8

Wm. Tenton 9C

Jamos Fletcher 48

Wm. Fletcher 21

Mrs. A. F. Flower iS

W. H. Fornian 2.-!S

.). 1^ Forsyth 204

C. K. Freshliold 18

11. R. Froshfield 18

J. Forbes 48

Jamos Fraser 9G

T. Fnmklyn K'.S

John Fowler 1 !)2

D. Frasor 24

C.Franks. 8

C. W. Franks ;]2

J. K. Fry 70

E. Farley . 04

David Fvrie 8

C. Fletcher 4H2

G.F. Gardner 8

F. II Goaeh 100

Charl(vs r.ciicb 192

Frank Giles IG

1{. <!I;uL-!tono 30

Ls. li. R. Glyn 24

St. li. U. Glyn & G. G. Glyn 992
E. W. Mills &G. C. Glyn. 1000
St. L. R. Glyn & G. C. Glyn.1024

W.Gladstone 100

Alexander Gillespie 9G

Robt. Gillespie 114

Sharoi.

J. Glen .')

J. N. Gooch 96

F. 1). Goldsmid 48

R. ]J. Oieene 72

G. Greenwood 24

(ieorge Grant 72

C. C.Grevillc 192

T. R. Grove Gl

Edward Grove IG

Miss J. Graham 24

W. 0. Gore 48

G. R. GrifTith 200

Lady C. Greville IG

Miss M. E. II. Greathcd . . IG

Miss E. S. Greathed 8

(r. Gresewood 21

W.F. Grant 192

Col. F. C. Griffiths 21

W.S. Grave 21

A. (iuthrio , 9G

R. Gunter .. GO

Mrs. F. Gnrwood 24

Wm. (Hadatone G4

J. Grclgud 112

Anne Gould 21

G. Ghvsspool 4

Henry Hall .128

F. Ilamson IG

W. H.awkins GOG

.1. Hammond IS

Philip Hardwick 9G

R. Harrison 8

John Il.ackblock 10

J.Harris 21

W. H. Horlon 40

r. 1). Iladow 24

Mrs. E. A. Hardcastlo 48

.T()se])h Hardcaslio 9G

A. Haldanc 9G

T. llankov. 18

Julius HaU S

J. M. Ilervov IG

J. Henry ". 48

I). 1). Iloath :52

Mrs. H. ILathlioId 72

A. &M. G. Hcwat IG

Hoadlnm it Langton 90

F. ITnsch '. .".G3

W. Henderson IC

C.F. Ilenwood IC

Thomas Hilton 24

J. G. R. T. Hilynrd 104

H. Highton 8

Gilbert liibbort 48

R. C. Hilyard GS

II. Hornby 90

Hothagnor & Co 480

Hopkins & Knyvelt 141

R. Ilorre 21

II.F. AH. H. Hornby ..108

T.I). Hopper IG

A. R. Hole 72

H.T.Hope 104

Thonms Hone 48

K. D. Hongson .ind others. 1000

K. D. Hodgson 38G

Shares.

J. S. Hodgson 144

John Hodgson 192

Mrs. M. Ilartable 128

Maxwell Hyslop 10

W. E.Hutchinson 48

Mark Hunter 90

Thos. Huggins 141

Wm. Hunt 48

W. Hackblock 10

Rev. J. Harrison 40

E. F. Hodgson 10

Rt. Hon. W. Hater 90

SirJ. W.Hogg 48

J. Hingston 21

W. Hardiand S

J. W. Harden 90

J. Hopkinson 144

H. Huglings 10

W. H Hornby 48

.lohn Hawker 5

R. Hannah .100

W. .Jackson 2CtO

G. II. Jay.. 24

Andrew Jardine 80

II. M. Jackson 250

William Jackson 500

Abbrecht Tusinger 48

Henry Jessop 9C

E. Johnston 72

Rev..!. Jollands 10

A. r. Johnson 48

T. Irving 8

J. H. Ives 90

D.J.Kay 18

Henry Kelsull :U2

Capt. G. M. Kerne 80

S. Kennard 21

Miss E. Komp 48

G. T. Kemp ;{S4

Major Hakorr 04

Coi. E. Keane 72

A.D.Kelly 21

W. Kentish 24

Charles Kemp 8

John Ketching 114

Rev. J. W. Knife 12

Wm; Kent 8

F. E. Knowlcs 48

D. Kennedy 80

G. II. Lawrence... i:i8

Francis L.imb 40

A. Laurie 24

John Lane 2 )

AV. Langton 144

A. J. Lawrence 8

W. Langdon 32

.Tno. L. Lancaster 24

S. Lawrence 144

W. Lewis 10

Loctapis & Co 72

Lomesurier & Co 144

H. Loe 21

J. J. Legardi 72

G. Lodor 88

Robert Locke 24

Chsirles Lvall 48

APPENDIX.

ire*.

141

IS)*-'

128

I(i

1)|]

14!

i<:

ii;

!)(;

44
10

Bharei.

.). Lynott 21

(SoorgoLyull 18

Cj. .[. Lucos 200

Ippilito TiOOiioni liOO

,1, H. liloyd 18

J. L;iwi'i'iic'o ;!iju

rieorgc Mnxwell 72

A. Maxwull 72

\V. Maxwell 72

W. 11. MiuihUoUI 152

A. McKeii/.io 48

11. A. Muiwleii 1(J

J. Mttynarti 21

J. L. Mullctt 24

11. Martin 48

J. Miirliii, jr rJ2

.1. Miistcrinmi 48

Eiirl of Mfticli 'JG

(}. U. Marliu 210

A. MathoHoii 210

I). Mallicson 10

U. I). Monties Ill

Mallet Ficrcs & Co 21

JFnjor S. Y. Martin 41

(J. Maude 5(1

Lt.-Col. Matbcson 72

Airs. M. Mayo %

Misfl K. Mayo 40

A. T. Mulkor 222

II. Mi'tuvalo 21

SirJ. C. Melvilln 120

J. Mercer, jr 24

Uev. T. Meiiland 10

U. Mercer 48

(J.T.Mitchell 8

T. 11. Mitchell 72

John Mills %

!•'. N. Micklethwaito 48

K. W. Mills (-.21

I'rancis Mills 1000

i-:. W. Mills & (i. G. Glvn. 1)92

('.:Mi!ls& G. 0. Glvn..'.. 0'J2
K W. Mills & St.L. U. Glyn !t02

Miij.-dcnl. C. Middlcton . . 24

.I.S.Mills IG

I'. S. Mitchell IG.

W. U. Mitchell .•!2

l'\ Mills and others \)M

T. E. Moss 500

John Moss !00

J. S. Mops 24

John Moss 48

Geori^e Moore %

Lt. G. M. I\ Moleswortli . . 40

1 [. E. Montgomerie 24

Ellen M. Moss 8

W, IT. Moss 24

n.W. Mo^s 24

.Mrs. II. MoHS 24

K. .Morlson .'JO

.lohnMollot ;!2

J. 15. Moore 72

JolmMonktO:! 'S

Win. Murray 48

Morris, Provost <t Co 2(»4

Hear Admiral Moorsom. . . 72

• f<haroi.

W. II. Morgan ." 24

J. Mellor Ifi

Charles Morrison 120

II. .McKeane .'12

U. MeCalniont 4^0

II. .Mc'Calmont 480

l{ov. II. J. 11. Cunniiiiit,'. .. 8

John Nelson 48

Fowler Newsam 40

1\ S. MeDongall 10

G. T. Hichulni HG

J. Nield, jr 24

I). Neilson 48

J. J. Nichol 24

W. J. Jewell .3G0

Lo Due do Monchy Nevilles 100

J. & VV. Nicholson & Co.. 144

Charles Otter ;i2

A. F. Osier 72

T. C..Osler 5G

W. Ormslon 24

Miss A. Otter .12

J. T. Oxley 9G

George Payne 192

G.T. Parly 5G

S. M. Peto 5976

E. S. Philpots 40

J. P. Piseatore 192

Hon. and Kev. E. Pellew. 72

(ieorge Pew 24

V. P. Pearco 24

Charles Pearco 24

W. Peto 9G

James Peto 96

W. II. Peuison 24

J. E. Pcmber 8

C. Pegun 48

W. I'itcarn IG

C. Pluniley .S2

Arthur Pittar 48

Rev. C. J. Plumer T.G

.I.J. Pierce 8

W. Poppet IG

.iohn Ploughniiin 10

G. ProLvn 24

Geo. Pollord 24

T. Poyuder 192

Geortfe Provost 216

G. Pritt 13G

Thomas Potts 24

John Poole 48

J. li. Provan 1G8

P. M. Pope 24

W. H. Pounder 48

Joseph Pugh 144

Pully Bros ... 04

S. Il.Pully 24

H. H. Potts 50

G.Rahn 24

James Pambottoni 88

John Hanking ,12

Charles Hecly 24

W.Reely 28

Caj)t. W . Rhodes .... 32

F. J. H. Reeves 48

T. Revnols 48

."^harci.

E. F. S. Uemler M

J. II. Itenton 80

George Reah'y 72

W. Rogly IG

T. P. Rcpley IG

T. (4. UeLallivc 24

Mrs. II. Rockets 8

Goorgo Roots 32

D. A . Rougemont 21

C. H. Robinson lU

W. Rotheram 141

SirC. P. Ronoy 72

SirJ. Rowc 21

John Rose 9G

A. M. lloss 64

L. L. Roberts 8

G. Robinson 21

P. Roberts 48

Mrs. M. A. Russell 8

(} I). Ramsay 72

L. Richardson 48

F. J . Rougemont 4

R. Savill 16

Charles Sartoris 72

W. Scott ilG

Henry Sanders 4S

W. Scott 48

II. R. &W.R. Sandlmck. 48

Leo Schastor 296

S. Schaster 48

J.W.Scott :\2

J. V,'. its. R. Scott 112

John Shepherd 96

Sharpies & Co 48

J. F. Shew 20

W. II. Sitwell 16

II. L. Smale 24

Robt. Slater 32

J.N. Smith 72

Alex. Sinij)Son 72

J.M, Strachan 104

E.T. .Starback 24

Robert Stephenson 9G

G. R. Stephenson 24

Isaac Solly 104

J . Sultzer ;^8

JohnSwii't 1192

G. R. Svmcs 72

lion. John Samaurez 24

R. Snierdon 96

R.W.Taylor 68

John V.Taylor 48

G. E. Taunton 24

Robt. TasseU 24

John Thewnote 16

J. Thomas 24

Joseph Thompson 96

Robert Tiffin 8

John Tilleard 168

George Tierney 48

Joseph Talton 72

R. H. Trehsin 80

J. Tonge 80

F. Tonens 48

A. Tweedie 48

'R. Tacker 16

APPiSADIX.

Shtroa.

Philip TwelU 120

.1. II. Tuke 21

J. II. Turner 40

A. Twoedalo '.Vl

John Undorhill .T2

8. Undorhill 21

W. Undorhill 72

Dftvid Veasey M

K. Vcoms 24

Kobort Viiii..ittttrt 12

W. Vansittart 48

Charles Vesoy .... H

E. A. Vaughau 8

lion. S. P. Verokcr IG

Chiirlco Vcekers 48

Emily Vansittart 12

E. Watson %

T. P. Ward 8

William Wagstaff 168

H.D. Waiter 72

n. Walmsley 40

F. W. Watldna 180

S.Ward 1(5

Chas. Watson 10

Li),dy A . Warrandcr

MiasE. Warden

lion. O. Waldograve ...
Cant. 0. D. Warburton.

11. Jl.Ward

Miss II. W. Ward

Major T. Watson

II. Whenlor

fl. JI. White

T. W. Webster

J. Whatman -

W. (}. Whatman

J . Weedon . . .

Thomas While

V. M. Wogaolen

C. T. White

J. K. Welsh

T. Whatloy

John Whatloy ,

C. Webb

T. J. White •,

Kev. J. Weld

Friend Williamson

Gcorxo Wilkin ,

Hliarei.

. 24
. 24
. 24
. 10
. 72
. 40
. 04
. 384
. 40
. 24
. 410
. 04

8
. 10
. l'J4
. 24
. 10
. GO

8
. 100

8
. 120
. 24

Shsrci^

S. Willis 48

G. T. Wingate 8

II. Williams 16

Mrs. E. A. Williams .... H

O.T.Williams 21

W. Wilkin 24

Chas. Wilkin 24

Ilenrv Wilco.x 8

J. U". Wilcox 24

M.Wills 24

It. W. Wilbraham 8

C. Wilkin & another l(i

W. Doacon & Co 480

W. W. Wood 24

(}. Woodhouso 24

T. (I. Woodhouso 24

P . Woolcy & G. S. Clement 20

C. B. Younj,' 24

George Yoathord 8

Capt. II. B. Young 288

John Yates 4H

(J iles Young 10

John Younnr 24

66,1)28

(There had probably not been much change of stock
In that view these would bo mostly original subscribers.)

at this time from the first distribution.

On tho foregoing lists, which show tho actual etookhulders to that date holding GG,028
shares, amounting to £1,673,200 sterling, there had been £1,037,475 paid up previous to
lat March, 1855. The same shareholders had also paid £648,240 on company's deben-
tures held by them, making their then investment of cash £1,685,715 stg. An examina-
tion will show that of tho 66,928 shares, 23,764, or more than one-third ot the whole,
'stand in the names of Baring, Glyn, Mills, Feto, Brassey, Betts, Jackson, Swift and
Wagstaff, that is the London financial agents of the province, who alloted the stock, tho
English contractors for constructing the road, and the company's solicitors, who directed
tho legal construction of the scheme. O^ tho twelve directors named for Canada in tho
prospectus, only one appears on the list of shareholders. Deducting from tho shares held
by the above named, 1170 shares held by persons connected with Canada, tho whole amount
held by the general British public was 41,994 shares, or when paid up, £1,049,400 stg.

By other returns, signed by Mr. Holmes, of same date (26th April, 1855) it appears
that there were 156 persons in Canada, holding 693 shares (average 4) in tho Quebec and
llichmond Road ; while 10,790, at .3625 stg., or £2,697,500, were held in England. On
the whole £293,690 Ss. Id. stg. had been then paid up. There were 173 stockholders in
tho St. Lawrence and Atlantic road, holding 3,182 shares, at £25, or £795,500, and
4,355 shares were held at the London agency. £195,360 19s. 2d. stg. had been paid tip.
The Toronto & Guelph Company had 159 stockholders, with 34,296 shares at 020 each,
of which 20,000 were in the name of the city of Toronto and 10,398 in that of Czowski &
Co., the remaining 3,898 shares being divided among 157 parties. On all £119,228 3s.
had been paid up.

The whole amount of share capital of tho Grand Trunk Company paid up, by returns
26th April, 1855, may be thus stated : —

On Shares of Grand Trunk proper £1,037,475

do Quebec and Richmond section 293,690 3 1

do Toronto and Guelph do 119.228 3

do St. Lawrence AAtlantiQ dp 195,360 19 2

£1,6 46,754 5 SsJ.

APPENDIX.

•18

S
Mi

K
24
24
21

H
21
21

H
Iti
480
24
21
24
20
24

288

Add to this nmount roccivcd ( n Bondn :—

On UondH of Grand Trunk jtroper £648,2.10 o <i

On St. lAwrcncn & Atlantic Hcction,

for City of MoutronI Bonds. . £102,7.'iy 14 »;

islmid Pond lomi 00,000

I Iritish American Land Company. 20,r)47 18 11

Montronl Sominary 20,.')47 18 1 1

23.1,8.'Ji) 12 4

Un (Quebec and Jliclimond 8oction(Pr«>vl Dobou.) 100,000

«W2,0C.5 12 4

Totn) amount raised to UlMarcb, 1855 e2,fi27.«li) 17 7 utx.

APPENDIX H.

Grand Trunk Railway Company of Canada,
Montreal, 8th Sept., 185.3.

Sir, — I am instructed by the directors to inform you, that they havo had under their
consideration the best means of raising the capital required for the construction of the
Grand Trunk llailway with the least possible delay.

I am therefore to state, that it would bo of great advantage to the company if the
course which they understand was taken in the cases of the St. liawroncc and Atlantic,
and the Ottawa, Huron and Siracoe railways, of scndin<« the provincial debentures for the
amount required by each company to the agents of the province, to bo invested on behalf
of the government, cither in England or in Canada, as the government may direct, can bo
adopted for the Grand Trunk Railway Company.

Tho directors being responsible for all risks with regard to interest and the several
payments to tho contractors, to be made in cash instead of debentures.

Tho Hon. F. Ilincks,

Chairman Railway Commissioners,

Quebec.

I am, sir.

i'our very obedient servant,
(Signed,) (L P. Roney,

Managing Director.

APPENDIX C.

Grand Trunk Railway Company of Canada,
Montreal, 27th Sept., 1853.

Sir, — I am instructed by tho Board of Directors of tho Grand Trunk Railway Com-
pany to bring under the notice of tho Hon. Railway Commissioners tho application by the
company for the present issue of the bonds provided by law,- to bo granted in aid of the
construction of the several sections of tho Grand Trunk Railway, comprised in the Grand
Trunk, tho Quebec and Richmond, and the Grand Trunk East companies.

The directors request that, in view of being enabled to take the most favorable state
of the money market for the negociation of these securities, tho government of Canada will
consent that the same facility be afforded as has been previously granted in the cases of the
St. Lawrence and Atlantic, tho Great Western, and the Ontario, SimcoQ and Huron Rail-
way companies, by issuing to the agents of the province in London the debentures pledged
in aid of tho Grand Trunk Company, to be negotiated by them under the instructions of the
company.

The proceeds to remain as special deposit on account of the company, in such securi-
ties as may be approved by tho London agents of the province and the provincial govern-
ment; the company receiving from time to time, as the law provides, payment from this
fund in lieu of the debentures themselves — and in case of any loss of interest arising, the
company holding itself liable to provide for the same.

APPENDIX.

I am further dirootod to ntato, that on the tanent of tho ^ovorDinont being {ypranted, it
is the intention of tho dircctorH to limit the iHsuo of those dobenturos to such sharoholderH
in the (Jrund Trunk Company, ux, liaving paid up at least forty per cent on their Hubscribod
Htoek, shall bo prepared to pay i'>*r their debentures in full.

I have t I honor to be, 8ir,

Hon. I'\ IlinokH, Your very obedient servant,

Chairman Railway Commissioners, (Signed,) C. I*. Ronev,

(juubec. Managing Director.

APPENDIX D

Copjf n/n Report of a Committee of the Honorable the Exrcuthr Omncil, (htted 29th
Septemhery 1858; approved hy Jlit Excellency the Oovrrnor General in Council
on the aO/A Scpfcmlcr, 1858.

On tho report of tho Chairman of Railway CommissionorH, dated 2()th instant,
requesting your Kxoolloncy's sanction to a minuto passed at a meeting of tho board, held
that day, viz. :

Tho letter of Mr. Roncy, managing director of the Orand Trunk Railway Company,
was again taken up, uud a further communication from the same gentleman, dated 27th
instant, was oIho submitted. Tho commissioncrN are of opinion that a report should be
submitted for tho approval of the Governor in Council, recommending that, in accordance
with tho terras of Mr, Roney's letter of tho 27th instant, tho debentures in aid of the
Grand Trunk Railway Company bo, prepared and transmitted to tho agents of tho province
in London, to bo by them delivered for cash to the parties entitled to receive them under
the condition of thoir prospectus ; and tho commissioners recommend that such portion of
tho money received on account of these bonds as it may be deemed expedient to keep in
England bo invested on account of the province in the joint names of Mr. Thomas Baring,
M.P., and Mr. Georgo C. G!yn, M.P., in such securities as thoy may doom advisable and
for the benefit of tho Grand Trunk Railway Company; and that such portion as may be
issued in Canada may ho deposited in such ono or more chartered banks as may bo
designated by the Grand Trunk Railway Company, and as may agree with them as to tho
rate of interest which Ihey may allow, and the said money to be withdrawn from time to
time, on the application of the Grand Trunk Railway Company for such amount as they
may be entitled to, under tho provisions of their act of incorporation — such application to
be submitted for the consideration of His Excellency tlio Governor in Council. Tho
committee recommend that the sanction requested in the foregoing minuto bo granted.

(Certified.) (Signed,) Wm. H. Lee, Act. C. E.C.

APPENDIX E.

Grand Tntnk Company General Balances, as cslahlished by the Commimonrrs, 186L

Dr.

Expenditure on account of capital $55,293,288 2?,

Portland Sinking Fund 236,250 00

Money in chest 154,032 11

Toronto debentures 400,000 00

Traffic accounts unpaid* 7G3,028 1.^

Fuel and suppliest 467,163 0«

Sundry debtors 119,552 84

Sundry disbursements 79,077 03

Total assets $57,512,:!91 10

* This ia mostly imaginary. The commissioners believed that not more thaa $500,000 could be
made oat of available assets, including the cash on hand.

t When the test of examination was applied, quantities fell short of the book entries.

APPENDIX.

or.

DiMiomit.^, »Vf !fll,hr»l,«i:i 'JiJ

K.\|k!i:ho iiikI iiri'lori'iu r cupital h|,25'J 01

l'!xclinti^<i ami coiiiiniMMionN l2(!,ri.')K 07

lialiuico uiid rovi-iiuu accuuiit 11,1 iH,70l HA

i:V22o,'.»;i:. 17

Or.

SImro c'lipilul uiid (KilxMiluroit l(tGO,UHfi,'.)i;t; 17

LoiiiiH tVoin bankers, Ac «,Hl 1»,h |m i;i

i'loiiliii;,' (it'l)i 2, I7i),r>7'2 «:»

Arroiirs of interest .").'ll,(is.'J 71)

Do. of rent Hl,72i;i.l

Sundry eredilora ."ID, 1 1 1 H,'i

•Sundry ttocounts of di8l)nrsunu'nt (I'Jt'i, 1 22 ;{.">

*70,7;{;J,:i2ii .'.7

.—.--■-•

«70,7:i:j,;12(J 57

APPENDIX 1'.

Fltmtlitij Ikht (>/ a remit Trunk Company/, Hint Ihuanbcr, 1800.

In London, inleresl on debenture ea|iitul. SjtfJ.'jrjjin' 81

IJills piiyablo, running or overduo lf2,"j72,.'J47 l.'l

Hills ol oxchun-ce •_'2,0'j;j 1>7

2,5l)4,Ml 10

LoUMS— Hiirin;,', iJro-i. & Co $1, KIS.lOl: 1»,»

Tlioniiw Hiirin;.', loiui of IHCO 2(11, :i77 'M\

Uiirin;;, llroa. & Co., new loim, LSIJO l.ys^Uiti (!7

(jivn & Co., loan IwdO l,;ts.-),17l IMi

(I.C.Glyn 2 ; 7, is.-) i 00

Glyn, Mills & Co 2, i;{:i WW

•' '' New loun, laGO l.>8,16(; (ICi

Provincial Av'onts, loan aect., IHGO 21.V,h;;;{ G(>

l'"inani'ial A-^'enls of Canada, do., IStli \ow 2, l:J;i,;];{:{ .'tiJ

fioans on ordinary (!onii)any bondM ().'{2,I)GG G5

'' on Toronto City bonds 18;{,7Gr) iH

Pelo&Co 28,71:J :{,•!

• 1). K. Hodgson, loan account 12I,5!)0 22

(ilyn & Co., account current oO,;m t .')G

7,:{77,.'i0G Gl

$10,G27,:{G.'i 52

la Cunuda — Special loan, (jrovernnu'nt of Can.'ula S'n'^jOOO 00

" Jknk of Upper Canadu 200,000 00

iJilla Payable 155,032 12

Duo to merchants and others for supplies 588,540 1(»

\Va;^c3 on account Paymaster, Montreal 125,44:S Gl

Due for wages and supplies, Portland 79,930 40

Duo for Chicago and Detroit lease 166,121 71

Due (rzowski & Co., Sarnia mortgage 4,872 00

Tntorest on Point St. Charles land 2,990 58

Toronto mortgages. 251 38

Toronto rolling mill 6,108 95

Sundry accounts 30,914 59

$1,538,205 86

SUMMARY.

Dno in London $10,627,365 52

Due in Canada 1,538,205 86

• "" * $12,165,571 38

Other debts, omitted, made this inde1)tednes3 on the 8tU May, 1861, $13,797,302.
Some bonds were hypothecated, against these loans, but tho amount could not bo exactly ascer.
tained by the commissionors, wlio found it difficult to reconcile the London account with that kept at
Montreal. The amount on imud, or liypotUooated, acoordinj? lo the I^ondoa ncoount, \vi\m ^67<l|2Sfl
1. 10^, itei'ling.

APPENDIX.

APPENDIX O. .

Ahutiul lixtcievt due on Dthcnturc Dcht hy Graml TrunJc Conipun^f (^statement

30th June, 1860.)

Cnpital. Ink■rl:^t

Montreal City Jobontures, 6 per cent $100,000 00 !?2 1,000 00

Lower Canada L-uulCompiuiy. (I " 100,000 00 0,000 00

Montreal Sominarj Company, <• 100,000 OO (1,000 00

lalanil Pond Conipjiny, ' 7 " 4:18,000 00 iiO.OCO 00

Qiielii'c iw.il Kicliinond Road Company, jior ciiit IS0,(;0(; 07 20,200 00

(iraiidTiTi'k Lst pirteioneo bondi:, C. " 9,7;?:{,:'>.".:5 ;U! ."iS 1,000 00

Do. 2nd do. <> '•' 4,851, uSO 01 201,094 80

Do. 7 percent, do., due 18G2 2,420,341 21 100,424 00

Do. do. do., duo 18G7 2,43:5,;i;!:5 .i;? I70,a;]:{ ;!4

Do. do. do., due 1872 2,288,212 a7 100,174 80

Do. per cent., due — 8,335,821 .11 4'00,149 28

S31,587,20i 20 !?1,1)71,03G 37

To this amount must be added the provincial debenture debt, $15,112,033 3.'>, on which tiic
province now pays the interest, at jier cent, $008,558 — atexclumgc, 9\ per cent, — annuully as a
tree donation, with $9,085 68 as 1 jtcr cent, commission to our financial agents.

Summari/ of Rents uvd Interest j^Mj/ahlc by Grand Trunk Cum^yany, (30/A June, 1S60.)

On debentures $1,971,036 37

■* lease df Atlantic and St. Lawience road 358,034 10

•' lease of Chicago, Detroit, i'i:c 175,200 00

" Umds at I'ointS. Charles , 5,981 K

" lands at Point Levi and Quebec 3,707 17

'• lands at Toronto 720 00

" lands at Sarnia 4,800 OO

" loans from bankers, &c., unpaid 3,420,804 07

" bills payable and bills of exchange unpaid 123,778 03

$2,980,001 41
To which add interest cu balance of floating debt.

APPENDIX 11.

Cuvi2)(fit//'s sfdtcnunt of aovKCKiiJrom which (Urund Trunk liailuaj/ tA/mpau;/ ohUiim-d

funds iij) to Miyf D< limber, 1860.

Corsoiidalcd £tock or shures $13,503,0 l!i (10

Stock not cunsolidatcd 21, 154 IS

Moi'.treal, ishmd Pond, Semiuiuy, and Lai.d Company debuutures. . . l,03!-i,000 00

Quebec and Kichmond road debentures 480,000 07

Company's and 7 percent. " 15,571,783 9!

First and second preference '' 13,799,595 50

Provincial debentures 15, 142,033 3;)

$59,503,482 97
Add premium on sale of debentures 330,693 88

$59,894,176 85
Deduct —

Discount on sale of funds and debentures $1,845,597 70

Exchange and commissions 131,583 11

Preference capital expense account 81,259 04

2,0.'>8,439 8:,

$57,835,737 00
Add floating debt 12,163,213 '07

$69,998,950 07

APPENDIX. 53

Tho Company's iiulebtediiess standa by this stntcnient —

For «lcbfijture» of the y)rovinco, an ttbov(> $15,142,633 00

" othcv dubentiires, art abovo 30,890,050 00

" lloating debt, '< 12,103,213 00 .

$5 8,201, !)02 00

Add to this §1,313,038, to iiiiiko up tho i-oiupliinoiit of ])i'cfcionoo boiidn, witli some items
"t lU)atiiig debt omilled, ami the amount slaud« at ;i?C0.000,000, to which a further addition must be
made for anoara of interest, &e.

the
IS a

60.)

t!nal

APPENDIX I.

COMPANY'S STATEMENT.

Grand Trunh Ccqnlal Aixoimt, 30//t Juue^ 1860.

liECEJl'TS —

Capital raised by shaios and debentures $58,401),G43 01

Loaus—IJills payable 2,112,581 53

" Exchange 302,991 20

'• London bankers 0,853,081 48

Exptuidituie on Detroit road 80,830 44

$07.885,734 32

KXPKNJIITUIIES —

Eastern division, 303 miles $15,845,432 96

Centre « 335 " 17,177,382 80

Western " 190 " 8,750,802 23

888 miles

I'ortUuid division, 149 " 1,615,915 12

Victoria Bridge, paid to date 0,494,067 34

iloUin- stock 4,475,247 35

'■ $54,305,4-17 80

Steamers and Imri^es $274,320 49

raid on Quebec J.asin, &c 123,000 00

Divers accounts 125,238 24

Expenses of London ofHco 116,080 71

Secretary's account, &c 25,232 05

063,877 49

Sundry accomits 9,383,167 08

Detroit and Chicago Junction 41,402 86

Balance of general account on works 3,431,838 49

$07,885,734 32

There is included in the amounts sot down against the four divisions of the road c.fr
$2,000,000 for " general expenses,' and other charges of largo amomit not appertaining to
construction.

APPENDIX.

APPENDIX J.

Rent Pat/able udniutllj/ hy Grand Trunlc Railway Company on St. Lawrence and

Atlantic lease.

Interest on cupitul of St. L. mid A. Oo $2,494,900 00

Do. on company's sterling bonds 486,666 67

Do. do. mortgages 988,000 00

Do. City of Portland bonds 2,000,000 00

Pension to Mrs Jenkins :

Interest on promissory note, at l.'i years, to Mrs. Weeks, 5,000 00

Do. on two other notes 2,000 00

Capital. lutorest @ 6 por cent.

$149,694 00

29,200 00

59,280 00

120,000 00

40 00

.100 00

120 00

$5,976,566 67 $358,634 00

Annual rent for lease of Detroit and Port Huron road —

On share capital $1,095,000 00 at 8 per cent.,

" debenture capital 1,095,000 00 "

$2,190,000 00

$87,600 00
87,600 00

$175,200 00

Interest on purchase of land at Point St. Charles —

Capital. lutoroi^t.

Seminary of Montreal $28,420 00 payable in 1863, $1,705 20

Nuns of the Congrei^'ation 22,000 00 " ' 1858, 1,320 00

Nuns of the Hotel Dieu 34,256 17 " 1864 & 1869, 2,055 37

GreyNuns 15,010 00 " 1863, 900 60

$99,686 17

$5,981 17

Rent for station and wharf at Point Levi and Quebec —

To private individuals $714 67

'* Crown Laud Department 572 50

<• Warehouse Company 2,480 00

3,767 17

Interest on water lot at Toronto, (capital, $12,000 00) 720 00

Do. on lot at Siirnia, ( " $80,000 00) 4,800 00

Summaiy of rent and interest ou land —

Atlantic and St. Lawrence $368,634 00

Port Huron and Detroit 175,200 00

Sarnia 4,800 00

Toronto 720 00

Montreal 5,981 17

Quebec 3,767 17 ,

Total renU $549,102 34

ent.