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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too lerge to be entirely included in one exposure are filmed beginning in the upper loft hand corner, left to right and top to bottom, aa many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent Atre fiimAs A des taux de rAductioi < diff Arents. Lorsque le document est trop grand pour Atc-s raproduit en un seul clichA, il est f limA A partir de I'angle aupAriaur gauche, de gauche A drolte, et de haut en bas, en prenant le nombre d'images nAcessaire. Les diagrammes suivants ]llustrent la mAthode. 1 2 3 1 2 3 4 5 6 §\ PB] A HISTORY if! t or THl « §xmi Cranti llailtoas d Canata, COMPILED FROM PUBLIC DOCUMENTS. BY THOMAS STORROW BROWN. I PBINVED FOR IHB AUTHOR, BT HUNTER, ROSl * 00., ST. UBSULB STREET. 1864. i.) 'k .& M A /- 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 i 4 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 6 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 8 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 Wt 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.