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 3 
 
 RAILT^^Y. 
 
 GENERAL CLAUSES 
 
 OF THE 
 
 TffiNDICRS CALLED 
 
 FOB THE 
 
 LEASING AND WOEKINti OF THE RAILWAY., 
 
 f- 
 
 AND 
 
 Copies orteiulor,s received in Convention therewith 
 
 b / (No. 39.;) 
 
 Printed by order of the Lcghlathc Assemhh, 
 
 k 
 
 r 
 
 L 
 
 1879. 
 
T( 
 
 th( 
 
 Qu 
 
ANSWER 
 
 To AN Address of the Legislative Assembly of the Province of 
 Quebec^, dated the twenty-seventh June last, to J lis Honor the 
 Lieutenant-Governor, asking for : — 
 
 Copies of the tenders willed for and received in connection with 
 the leasing of the Quebec, Montreal, Ottawa and Occidental Railway. 
 
 By order, 
 
 Secretary's Office, 
 Quebec, 16th July 1879. 
 
 AEXANDRE CHAUVEAU 
 
 Secretary. 
 
u 
 
QUEBEC. MONTREAL, OTTAWA & OCCIDENTAL 
 
 RAILWAY. 
 
 GENERAL CONDITIONS 
 
 FOR LHASINCx AND WORKING. 
 
 The Quebec Government contemplates leasing the RailwavH now 
 under con.strnction, and .inch are commonly known a! : ^ 
 
 " The North Shore Railway, " Quebec to 
 Montreal, having a length (including Pilea 
 Branch, 26 miles and 4:;8» feet,) of. 188 Miles, 18G5 feet. 
 
 AND 
 
 " The Montreal Northern Colonization Rail- 
 WAY, " (with St. J(5r(ime Branch, 13 inileH 
 andllGOfeet,)of. jgg « ^^3^ ., 
 
 And it is in contemplation to extend the latter 
 Division from Aylmer to Portage-du-Fort, 
 
 of about ^ en, „ 
 
 50 /* u 
 
 And to connect the same with the subsidized 
 portion of the Canada Central Railway and 
 the Georgian Bay Branch of the olnada 
 Pacific, when these Roads are constructed. 
 The aggregate length of all the lines will 
 then be of about 3^^ « 3g^3 ^^ 
 
 h. 1 '^^'. ^^^ «^'«tions,~with their dividing point at Montreal,-will 
 be leased either separately or all in one, a., when proposals shall hive 
 been received, may to the Government appear most desirable 
 
6 
 
 The lease will exiict the efficient raainteimnce and continuous 
 working of the Railway, with a complete Pw^senger and Freight 
 service, of at leiwt one train of each denomination, each way, daily, over 
 the entire length; passenger cars to be of the most recent and 
 improved construction. 
 
 The term for which the lease will be made, will be 10 years, with 
 the right, reserved to the Government, of resuming possession of the 
 Road after the expiration of the first five years, on the conditions 
 hereinafter mentioned. 
 
 Tenders are to be based on the following forms of rental or 
 consideration : 
 
 1st. A fixed sum per annum for each Section, or for the whole line, 
 as the case may be ; 
 
 2nd. A percentage of the gross earnings, ascertained half-yearly 
 from an examination of the Lessees' books and traffic accounts ; 
 
 3rd. A fixed sum per annum, and, in addition thereto, a certain 
 percentage of gross earnings. 
 
 In whichever of the above forms the Government may elect to 
 have the rent made payable, it is to be payable half-yearly ; and, if 
 the whole, or any part, shall be in the form of a fixed sum, then such 
 fixed sum to be payable in two equal feemi-annual instalments. 
 
 In case the Government should decide to continue the leasing 
 system beyond the first ten-years term, then the parties in possession 
 shall have the option of a second similar term, upon agreeing to pay 
 such increased rent as the traffic accounts may show, in the opinion of 
 the Government of said Province, to be just and reasonable. 
 
 The lines will be delivered to the Lessee, complete^ in accordance 
 with the conditions of the contracts under which they are now being 
 constructed, except that : 
 
 The Government will not supply any engines or cars, or ought 
 else pertaining to rolling stock ; and all such kind of property, belong- 
 ing to the Government, as may be upon the several lines, when lease 
 comes to be made, must be taken by the Lessee at a valuation, mutually 
 to be agreed upon, before execution of the lease. 
 
)ntinuou8 
 
 Freight 
 
 lily, over 
 
 jent and 
 
 Jars, with 
 an of the 
 ;onditions 
 
 rental or 
 hole line, 
 
 alf-yearly 
 
 ts ; 
 
 , a certain 
 
 ' elect to 
 
 r ; and, if 
 
 then such 
 
 :s. 
 
 le leasing 
 possession 
 ig to pay 
 opinion of 
 
 accordance 
 now being 
 
 or ought 
 ty, belong- 
 when lease 
 I, mutually 
 
 Particiiliirs ol'eoustrnction-cohtractrt, can be hjul by persons about 
 rrakin^r on\.r«, ut tlie Offices of the Hallway Commissioners, in Quebec 
 and Montreal, where also mapn and profiles of the lines may be seen. 
 
 If, on the expiration of the ten-years terra, it should be decided 
 not again to lease the Railway, or, if the Government should elect to 
 resume posse«.sion before that time, then the rolling stock belonging to 
 the Lessee, as well as all authorized additions or improvements made 
 to the several lines by and at the cost of the Lessee, will be jissumed 
 and paid for by the Government ut a valuation. The mode of arriring 
 at such valuation, to be more particularly provided for in the lease. 
 
 Should the Governinent elect to resume possession of the Railway 
 dunng the currency of the second half of its term, six months notice 
 of such determination will be given to the Lessee, and compensaticm 
 lor the unexpired ])ortioii of the term, will be allowed. in proportion to 
 the length of time the lease, if undisturbed, would still have to run : 
 the maxiwum compensation tor the full live years, being fixed at an 
 amount not to exceed that of the last previous half year's rental. 
 
 The Railway, while under lease, will be subject to rigid inspec- 
 tion, from time to time, by an Engineer appointed by the Government, 
 and the Lessee will be roipiired to m lintain the lines, in all their parts 
 and appurtenances, in thoroughly good order ; Hnding all necessary 
 materials for such puri)ose. Failure in this c«mdition, will involve 
 forfeiture of contract. 
 
 Any improvements, such as additional stations, sidings, buildings, 
 &c., that the Lessees may desire to make, nnist first be submitted for 
 the approval srnd sanction of the Government. 
 
 h\ the event of the Railway being leased in two Sections iind to 
 separate parties, it must be understood that the part between Montreal 
 (City) an«l the junction with the direct line, between Quebec and 
 Aylmer, will have to be used and worked in common. 
 
 The Tariff of rates to be charged by Lessees, will be subject to 
 provisions of the Quebec Act, 32 VicU)Via, Chap. 51, section 12, and 
 which section will be incorpc united in full iii the Lease. 
 
 Whatever basis of rental may fiiuilly be fixed upon, the Govern- 
 ment will reserve the right of cxamiiiaticn of the traffic siccounts, ani 
 will require the Lessee to render monthly statements of gross receipts, 
 distinguishing passenger from freight earnings. 
 
Po88e«Hi()n will he given jih (oUowh : 
 
 Of the Quehec and Montreal Section (including Piles Branch,) on 
 or alx)ut the Iwt of Decemher 1878, and — 
 
 Of the Montreal and Aylmer Section (including St. J(5rflme 
 Branch,) on or ahout the Ist July 1878. 
 
 In cawe the two Sections between Quel)ec and Montreal, and 
 between Montreal and Aylmer, (together with their Branches,) res- 
 pectively, should not be entirely completed at the dates above men- 
 tioned, the Lessee will be l)ound to suffer and permit the Contractors 
 or the Commissioners to complete the whole of the work under certain 
 Conditions to be agreed upon between the contracting parties when the 
 lease shall be signed. 
 
 Persons offering for the l.ist named Section only, or for the entire 
 line, are requested to state what additional consideration they will be 
 willing to pay for the extension to Portage-du-Fort, when completed 
 and connected with the Canada Central Railway. 
 
 Satisfactory security will I e required for the due performance of 
 the conditions of the lease ; and each proposal must be accompanied by 
 an accepted cheque for $1000 as a guarantee that the proposal is made 
 in good faith. The che(iue will be returned when any offers have been 
 accepted, or when the whole may have been rejected, except the 
 cheque of the person or company whose teiider has been accepted ; 
 which amount w^ill be carried to the credit of the first instalment, at 
 the time of the execution of the Itase ; but, if any person tendering 
 defers to execute a lease conformable to these conditions, then and in 
 such cas*^, said deposit will be confiscated to the Government. 
 
 Quebec, 20th December, 1877. 
 
 J. A. CHAPLEAU, 
 
 Secretary of the Province. 
 
nch,) on 
 J^r6me 
 
 'eal, und 
 BH,) res- 
 )ve men- 
 II tractors 
 r certuiii 
 vhcn tlio 
 
 he entire 
 r will 1)0 
 ample tod 
 
 aiance of 
 )anied by 
 I is made 
 ave been 
 cept the 
 iccepted ; 
 raent, at 
 endering 
 ;u and in 
 
 RETURN 
 
 To AN Address of tl,o Legi»lative Assembly, J„ted the twenty seventh 
 of June last (1879) toUis Honor the Lieiil.nant-Oovernor „rny- 
 n,g lor cop es of the tenders ,u,ked for and received for the leasing 
 ol the Quebec, Montreal, Ottawa and Occidental Uailwav. 
 
 ovince. 
 
: 
 
11 
 
 [Translation.] 
 
 Montreal, 31 8t January 1878. 
 7'o the Commissioners of the Quehec^ 
 
 Montreal, Ottawa and Occidental Railway. 
 
 Quebec. 
 Gentlemen, 
 
 I have the honor to enclose a tender for the lease of the Quebec, 
 Montreal, Ottawa and Occidental Railway, which I have signed as the 
 attorney of a certain number of canltalists whose names shall be 
 submitted to the Government, wl. .lever the latter, after having 
 taken the said tender into consideration, shall express a wish to know 
 them. 
 
 The parties whom I represent request me to inform the Govern- 
 ment that they intend to cause themselves to be constituted into an 
 incorporated company the members whereof shall be subject to the 
 approval of the Government, in case the said company should obtain 
 the lease of the said road. 
 
 I make, in their name, the required deposit of one thousand dollars 
 and I am in a position to affirm that the necessary securities will be 
 given. 
 
 I have the honor to be. 
 Gentlemen, 
 Your obedient servant, 
 
 (Signed,) E. Lef. de BELLEFEUILLE. 
 
12 
 
 [TnrHs/aiiot/.] 
 
 DRAFT OP TENDER FOR THE QUEBEC, MONTREAL, OTTAWA 
 AND OCCIDENTAL RAILWAY. 
 
 The uiiderHigned lor and behalf of the parties by Iiim represented, 
 as set fortli in his letter, lesires to tender for the said road, as shown 
 in the general clauses of the contract of lease., published by the Govern- 
 ment, and on the following terms. 
 
 I. The lessees will lease, Iwth divisions of said railway, or the 
 western division only, according as the Government may deem it 
 advisable. 
 
 II. The lessees bind themselves to keep the road in good order 
 and to work it without interruption, with the stock necessary for the 
 regular service of passengers and goods, which service shall not be less 
 than one passenger train and one freight train per working day, from 
 each end of the line. 
 
 III. The contract shall extend over a period often years. 
 
 IV. The lessees tender the following prices in consideration of 
 such lease. 
 
 lo. They offer as annual fixed rent, the sum of three hundred and 
 fifty dollars per mile, per annum, for the western division and two 
 hundred and fifty dollars for the eastern division of the said Railway, 
 or 
 
 2o. They offer to pay to the Government, twenty per cent of the 
 gross receipts of the road, as as(ortained at the end of each year, by 
 an examination which the Government shall have the right to make 
 of the books and statements of account of the traffic, or 
 
 So. They offer twenty per cent of the gross receipts of the said 
 railway and guarantee that such percentage will reach the prices per 
 mile mentioned in No. ] . 
 
 V. These sums shall be paid semiannually and in case of a fixed 
 price being chosen i!i whole or in part, then such fixed price shall be 
 payable in two equal half yearly instalments, the first whereof shall 
 be paid six months after the lessees shall have taken possession of the 
 whole road or of the western section only, according as they may be 
 lessees of the whole or of that division only. 
 
shall 1 
 
 
 r the 1 
 
 
 y he 
 
 
 
 
 13 
 
 Vr. In ca.se the Govennn..nt hI.uuI.I decide to extend tlie lease 
 for a lonoer period than tlie ter, years, it shall then be lawful for the 
 said lessees to work it durin,^ a second terai of erjual duration, on 
 condition ol bn.ling themselves to the payment of such rent as the 
 Government may deem eqnitabh., acc<,rdino' to the statements of traffic. 
 
 o n. r/V^'''' ^'"' *''" '■'"^''"•>' '^"^" ''^' '^'^'^'l^''^ '^^^'•- i'» '^ thoroughly 
 completed state to the lessees, this also applying to rollin.' tock 
 
 are now beinjr built. 
 
 'O 
 
 VIII Tlie al..,ve prices „ro tl,o»« offcTud by tl.e tenderers for the 
 road cempletewuh a bndge between Hnll and Ottawa; but if c 
 Government de.„re., the tenderers to snpply their own rolli .'^ tl 
 they will do so on the Ibllowing conditions : ° ' 
 
 IX. The company which they will form shall be authorised bv 
 he Legislature of Quebec to issue privilege debentures, payable i^ 
 
 th,rty years Iron, date, hypothecated on the rollin. stock fl^ tscos 
 pnce and bo,.nng five per cent interest, and two per cent for 
 s.nkmg fund. The Government sh.ll , u.rantee th p^y it „' 
 said bond., keeping as security the rolling s,o.k acquired L means of 
 said debentures, as well as the sinking f.md. 
 
 X. If the lease is not continued after the tun v,".rs .,,,1 ,i. 
 Government takes possession of the r„llin<- stock i ,1, II , ?" 
 lessees from all liability for the de en, ""ret e 'Jh t^tJ T "'' 
 reasonable allowance for the linking fund, U.^r "^^I^croflh: 
 roling stock fe., on the tern,s hereiuafler to be ostal li he d b, It 
 sinking fund then in the hands o, the Governmen s Itdedt^t 
 a.»,ndenin,ty,orthe use of or damages done to the sa^^ rolUng 
 
 interfsl^lt dXTtr. '""' ''' ''^" " "'■'""^' ^-" '"^' -'. «>«> 
 
 J uy means ot debentures guaranteed in the 
 
manner above mentioned respecting the purchase of rolling stock, 
 bearing the same rate of interest ; which interest shall likewise be 
 retained out of the rent ; and the revenues received from any other 
 company for the use of said bridge, shall be included in the gross 
 receipts of the road. 
 
 XIV. If at the expiration of the ten years, it should be resolved, 
 to not renew the lea^e, then all the additions or improvements, 
 authorized by the Government and carried out at the expense of the 
 lessees, shall be accepted and paid for by the Government on valua- 
 tion ; which valuation shall be established by arbitration. 
 
 XV. As long as the road is under lease, it shall be subject to inspec- 
 tion by an engineer appointed by the Government, who shall compel 
 the lessees to keep the lines of railway throughout their entire extent 
 and the dependencies thereunto beloni^ingin g(»od order and condition, 
 while allowing for the ordinary wear and tear caused by the working of 
 the road, the Government having to see that nothing be wanting 
 in fact of materials and other working necessaries for the accomplish- 
 ment of said object; and all disputes thereon to be settled by arbi- 
 tration. 
 
 XVI. The non-fuliillment of this condition will entail the rescind- 
 ing of the lease. 
 
 XVII. All improvements such as extra station, double tracks or 
 switches, buildings, &c., which the lessees may desire to make, shall be 
 previously submitted for the approval and sanction of the Government. 
 
 XVIII. In case the western section only be leased to the said 
 tenderers, it shall be understood that the portion extending from 
 Montreal to the junction with the direct line between Quebec and 
 Aylmer shall form part of the western section and the lessees of the 
 western section shall be bound to make proper arrangements to bring 
 the cars of the eastern section to and from Montreal, and also to and 
 from the junction, on the ordinary terms and conditions between 
 Railway (Jompanies. 
 
 XIX. If the lessees of both divisions cannot agree on such con- 
 ditions, they shall be settled by arbitration. 
 
 XX. The tariff of rates which the lessees shall have the right to 
 charge shall be subject to the provisions of the Quebec Railway act 
 
ing stock, 
 
 ikewise be 
 
 my other 
 
 the gross 
 
 J resolved, 
 ovements, 
 ise of the 
 on valua- 
 
 ; to inspec- 
 ill compel 
 ire extent 
 condition, 
 working of 
 wanting 
 icomplish- 
 1 by arbi- 
 
 le rescind- 
 
 tracks or 
 e, shall be 
 verninent. 
 
 ) the said 
 iding from 
 •uebec and 
 lees of the 
 i to bring 
 so to and 
 between 
 
 such con- 
 
 e right to 
 ilway act 
 
 15 
 
 32 Vict. chap. 51, section 12 ; which section shall be held to form part 
 of the deed ofleas«'. 
 
 XXI. But this tender is to be considered as based on the tariff 
 of three cents per mile for first class passengers ; two cents per mile 
 for second class passengers; and of three cents per ton per mile for 
 freight : other prices being in proportion. 
 
 XXII. And if any alteration be made in the tariff, by reducing it 
 below the above figures, a proportionate reduction shall be made in the 
 rent paid by the lessees ; such reduclicn to be fixed by arbitration, if 
 the Government and lessees cannot agree. 
 
 XXIII. Whatever may be the figure at which the amount of rent 
 shall intimately be placed, the Govtirnment shall have the right to 
 examine the statements of account of the traffic and to demand from 
 the lessees annual statements of the gross receipts ; the statements to 
 distinguish the receipts arising from passenger traffic from those due to 
 carriage of freight ; such examination, and production of statements of 
 account above mentioned shall take place one month previous to the 
 date of one of the semi-annual payments of tlie rent. 
 
 XXIV. The lessees shall take possession of the railway in the 
 following manner to wit ; of the Eastern division including the Piles 
 branch, on or aboutthe first December, one thousand eight hundred and 
 seventy eight. 
 
 XXV. Of the Western Division, including the St. Jdrome Branch 
 on or about the first of July, one thousand eight hundred and seventv 
 eight. -^ 
 
 XXVI. In case the said sections between Montreal & Quebec and 
 Montreal & Aylmer, with their respective branches, should not be 
 entirely completed at the dates above mentioned, the lessees shall 
 allow the contractors or the Government to complete the works under 
 certain conditions which shall be determined in the lease. 
 
 XXVII. When the extension of the line to Portage du Fort shall 
 be built and connected with the Canada Central Railway, the lessees 
 shall pay to the Government, over and above the prices abSve 
 mentioned : 
 
r MBgwriiw^iM ■a>M. 
 
 16 
 
 lo. An annual rent of $150.00 per mile per nnniira, or 
 
 2o. Twenty per cent of the gross receipts of that part of that 
 road, or 
 
 3o. They oft'er twenty per cent of the gross receipt ofthat portion of 
 the road, "'guaran teeing that such percentage shall amount to the sum of 
 $150.00 per annum. 
 
 XXVIII. The lessees offer as security for the execution of the 
 provisions of the lease. 
 
 lo. The sinking fund of two per cent per annum on the deben- 
 tures above mentioned. 
 
 2o. The tenderers intend to (Constitute themselve? into a company, 
 with a subscribed capital of one hundred thousand dollars, ($100,000,) 
 on which a ten per cent call shall be made and paid before the lessees 
 enter into possession of the railroad ; the balance of the said subscribed 
 capital, to be transferred to the Government as security for the strict 
 execution of the term of the present lease ; with the understanding, 
 however, that such unpaid portion of the capital may be called for 
 and applied to the working of the railway, or to the payment of 
 damages to which the company might be subject, if the case should 
 arise 
 
 3o. The names of the subscribers to the capital stock of the said 
 company shall be approved by the Government, before the shares subs- 
 cribed shall be distributed and credited to the shareholders of the said 
 company . 
 
 Montreal, 31rst January 1878. 
 
 (Signed.) 
 
 E. LEF. DE BELLEFEUILLE. 
 
 Attorney. 
 
17 
 
 t of that 
 
 portion of 
 he sum of 
 
 n of the 
 he deben- 
 
 L company, 
 1100,000,) 
 lie lessees 
 subscribed 
 the strict 
 irstanding, 
 called for 
 lyment of 
 Lse should 
 
 ■ the said 
 lares subs- 
 of the said 
 
 LE. 
 
 ttorney. 
 
 MONTREAL TELEGRAPH COMPANY. 
 
 Quebec, Jst February 1878. 
 By Telegraph from Montreal 
 
 To Hon. H. G. Malhiot, 
 
 I am authorizod to make the followin- alterations in tender- the 
 minimum guaranteed for the two sections East and West, will be one 
 hundred thousand dollars If West section only is rented, a proportion 
 ot that sum, in proportion to the scale of the prices tendered in offer 
 number one, will be guaranteed ; also two and a half per cent of sinking 
 fund on rolling stock, will be given instead of two. 
 
 [Signed], 
 
 E. L. de BELLEFEUILLE. 
 
 [Transhtimi.] 
 
 Montreal, 25th February 1878. 
 Hon. C. B. de Boucherville, 
 
 Dear Sir, '^"^'^^• 
 
 I beg to notify you that I am authorized to declare that the per- 
 sons in whose name I tendered for the lease of the Quebec, Montreal, 
 Ottawa and Occidental Railway, are the same as those who are now 
 seeking to be incorporated w ler the name of the " Northern Transit 
 Co. " by a bill which was passed by the Legislative Assembly of Que- 
 bec, except that we hope to be ahU to add these names that of L H 
 Massue of Varennes. 
 
 I also beg to say that an addition was made by telegram to the 
 said tender ; that by the said telegram a minimum rental of 
 one hundred thousand dollars is mentioued, and that the said telegram 
 IS to be considered as forming part of the tender. 
 
 I have the honor to be, 
 (Signed,) E. LEP. do BELLEFEUILLE, 
 
18 
 
 
 {TVanfilatiou) 
 
 RAILWAY COMMITTEE OF THE EXECUTIVE COUNCIL. 
 
 Quebec, 2nd March 1878. " 
 Sir, 
 
 The Honorable chairman of the Ruilwny Committee of the 
 Executive Council has instructed me to inform you that the name of 
 L. H. Massue is tobe added to the list of nieuibers of the company 
 organized to lease the Quebec, Montreal, Ottawa & Occidental Railway 
 under the name of the "Northern Transit Company " and whose pro- 
 visional secretary is Mr. de Bellefeuille. 
 
 I have the honor to be, 
 ' Sir, 
 Your most humble servant. 
 
 (Signed,) 
 
 E. MoREAu, Esq., 
 Secretary of the 
 Q. M. 0. & 0. Railway Commissioners. 
 
 ERNEST GAGNON, 
 
 Sec. Dep. Ag. and P. W. 
 
 Montreal, 31st January, 1878. 
 To the Quebec Railway Commission, 
 
 Quebec. 
 Honorable Sir, 
 
 In making you the following proposition for the lease of the Q. M 
 0. & O. Ry. and the branches and extension, we feel it is due to you 
 and also to ourselves to explain the reason why we deviate from the 
 ''Forms of Tender" furnished; in the first plac(3 we could form no correct 
 data as to what the gross earnings of the Road would be ; then the require- | 
 ments of your form of Tender, are that the Lessee shall buy all the 
 rolling stock on the Line and furnish all the additional stock, that 
 the increasing traffic of the road might require, and pay the Govern, 
 ment percentage out of the gross earnings. 
 
W) 
 
 OUNCIL. 
 
 1878. 
 
 nittee of the 
 tlio naiue of 
 the company 
 ntal Railway 
 1 whose pro- 
 
 nt, 
 
 rNON, 
 
 and P. W. 
 
 1878. 
 
 I of the Q. M 
 s due to you 
 *te from the 
 •m no correct 
 1 the require- 
 buy all the 
 stock, that 
 the Govern- 
 
 To do this would nooossitate very largo disbursments indeed, 
 besides the continued oxau.inntion of lH)(»ks, papers etc. by a Govern- 
 mont officer : all which we are of opinion would bo mcn-e tlian men of 
 large means would care to do for the public bonolit. 
 
 After mature consideration, wo oifor to form a Company not to 
 exceed fifteen uieinbers, inchuling the undersigned, some of whom 
 would take places on the lino as responsible officials; in fact would 
 fill the most important positions, and would feel an interest in the 
 economical and effective working of the Road. 
 
 Out of the members of the Company an executive committee or 
 Syndicate would be selected, composed of five, whose duty would be to 
 travel along the whole line, at east twice every month, stop at each 
 station over one train or longer, if necessary, examine books, station 
 houses, cars &c., and make a full report monthly of the general condi- 
 tion of the road, as to increase or decrease of traffic, Rolling stock Mana- 
 gement &c., and at the end of every six months, a full report, as above 
 mentioned, would be presented to the Government, who would, at 
 such times, have the privilege of making an examination of books, 
 papers &c., as to the general working of the Road. 
 
 The Syndicate or Company would lease the 371 miles of Road for 
 the term often (10) years guaranteeing an average of four per cent per 
 annum on the estimated cost, provided however, that the full amount 
 of Rolling Stock as per schedule attached to contract of Messrs. Mac- 
 Donald & McGreevy, shall be furnish by them, also that when the Road 
 18 handed over to us, an inventory shall be made of all the Rolling 
 Stock, on the road, and valued by competent men, which inventory 
 and valuation shall be embodied in the Lease. 
 
 - In the event of any deficiency in the amount ofstocktohave been 
 furnished by the Contractors, Messrs. McDonald and McGreevy, we 
 will make up the deficiency ourselves, taking credit, of course, for such 
 outlay, in our settlements with the Government, and we further agree 
 to keep the Road fully stocked in hcco. ' nee with the demand of the 
 increasing traffic, along the line, and, at .ne termination of the leai-.f^, to 
 return the whole Rolling Stock, that we will have received from the 
 Government in as good a condition as we have received it : allowance 
 made for the usual and natural wear and tear, and, for what additional 
 plant we shall furnish during the term of the lease, the Government will 
 
^/J? 
 
 20 
 
 ;m ' 
 
 have a right to buy it from us, at a price fixed by arbitrators appointed 
 in the usual manner; The Government .sliall pay uh according to a 
 valuation made as above. 
 
 We will put in any extra sidinjijs that may be found necessary on 
 the following terms. 
 
 Excavation or embankment per Cub. yd. 25 cts. 
 
 Tracklaying per lineal yd 15 
 
 Ballasting per Cub. yd 25 
 
 Steel Rails, per Ton $ 45.00 
 
 Each frog complete $100. 00 
 
 And we will do any other ballasting required to complete the 
 Road at 21 cts. per yard, and any extra buildings that may be required, 
 we will build them at the estimate of the Chief Engineer. 
 
 We would also build the extension from Aylmer toQuio to Portage 
 du Fort for the sum of twenty four thousand dollars per mile, which 
 would include purchase of right of way, sufficient Rolling Stock, 
 Stations, &c., in fact, fully equipped and equal to any portion of the 
 Road now complete, and to the satisfaction of the Chief Engineer in 
 charge. As payment for this extension, we would accept the Pro- 
 vince of Quebec Debentures payable in twenty four (24) years from 
 date of issue, bearing interest at 5 per cent per annum. 
 
 As to the particular terms of payments we offer to pay the 
 Government an average interest of four per cent per annum on the 
 cost of the Road and equipment, after deducting bonlisses payable as 
 follows. 
 
 For the first year, two per cent ; ■ 
 
 For the second, third and fourth years, three per cent. 
 
 For the fourth year, four per cent. 
 
 And for the five following years, five per cent, being an average 
 of four per cent for ten years on the estimated cost as above hinted. 
 The dates of the above payments, would be quarterly in advance for 
 the extent of Road delivered to us. 
 
 We have every confidence in our scheraef, and think it is the 
 only way in which the Road will be made to pay, and the country reap 
 a revenue from it. 
 
 (C 
 
:2i 
 
 tors appointed 
 according to a 
 
 1 noceHsary on 
 
 25 cts. 
 
 15 
 
 25 
 5.00 
 }.00 
 
 complete the 
 y be required, 
 
 • 
 
 uio to Portage 
 r mile, which 
 idling Stock, 
 >ortion of the 
 Engineer in 
 ept the Pro- 
 :) years from 
 
 r to pay the 
 inum on the 
 es payable as 
 
 it. 
 
 » an average 
 
 Eibove hinted. 
 
 advance for 
 
 ink it is the 
 I country reap 
 
 m.n,i " 'V'™':"-'""-'"' -■"" ^^^ "'« ''«"«(■>» of our experience 
 men „l „,„1 ,,l,3.„,c„l ,,„w,,., ,„d ,t the e.vpimtiun of the Le« o, ylu 
 Road «n,l .Sto,.k bflck ng„i„ i„ „«.d conditioi.s. ' ^ 
 
 We mibniit with confi,lence the above project for yonr favorahlo 
 «>«mder,.t,o„, a„,l reapectr.,11,- add that, should you wialZy Ztt 
 exp anat,o„. we .shall ,« ,„„„t happy to give the.n ; and ho.dd t 
 wwh ,„ „,, «t„„te any other terms not inconsistent with the mj 
 V'>"'t» ol th.» proposal, we will endeavor to meet your vieu-s 
 
 (Si*,^ned,) 
 
 « 
 u 
 
 A. P. MACDONALD, 
 CHS. B. FALARDEAU, 
 G. SANDERSON, 
 W. H. STEVENSON, 
 0. S. SMITH. 
 
 Montreal, Slst January 1878. 
 Hon. J. A. Chapleau, 
 
 Provincial Secretary, 
 
 Quebec. 
 Sir, 
 
 We the underKigned, hereby offer to lease the Provincial Railways 
 Irom the Government, according to your advertisement of the 20ih 
 December last, as follows : 
 
 "The North Shore R,.ilway " Quebec to Montreal, in- 
 
 eluding the Piles Branch, " about jgg ^jj^^ 
 
 " The Montreal Northern Colonization Railway "including 
 
 the St. Jerome Branch f 23g « 
 
 " Aylmcr to Portage du Fort when constructed ". 
 
 50 
 
 ii 
 
 Or a total of ^\ ^ ^ gyg « 
 
 We would therefore propose to take from the Provincial Govern- 
 
iiieiit all llu.' Rolliuj Stock they Imve on hand at [ircHent, at a valuo 
 to be e.stiinulo4 for by compotont partiet*, to be appointt'd mutually 
 by Govornniout iiiiii iiiraelvos 
 
 That wo will pay lo tlic rioveruiiu'iit twenty (2(1) per cent on 
 the groHH earningH of the Railway, EncloMcd you will find accepted 
 check No. 83G of this date payable to your order. 
 
 Your obedient servantj^, 
 
 (Signed,) 
 
 F. B. M( NAMRK & (>>., 
 
 Contractors, 
 
 Quebec, Ist February 1878. 
 
 To the s^uebec Railway Commissioners,- 
 
 Quebec. 
 Gentlemen, 
 
 Pur.suant to an advertisement in the public journals, signed by 
 the Hon. J. A. Chaplean, secretary of the Province of Quebec, and in 
 accordance with general conditions for leasing and working of the 
 Quebec, Montreal, Ottawa and OccidtMital Railway inviting tenders for 
 the leasing of the Road, I beg to propose for the leasing and working, 
 for a term of ten)/ oars, with right reserved to the Coverninent ot resu- 
 ming possession of the Road, of the Railway now approaching 'rimple- 
 tion between Quebec and Montreal, and betwcn Montreal and A>I:'t"r. 
 with their branches, also of the extension of the last named .ii\ i.^iou 
 to " Portage du Fort", when completed and connected with the Canada 
 Central Railway, which advertisement and general conditions bear date 
 at Quebec, the 20th :'■'.-,. 1877. 
 
 I pro;)ose to pa^ t v. 
 sections of the Railwnv 
 from. 
 
 > t^ r "^ cent upon the total receipts from all 
 ■ d all Mourf" s of revenue accnieing there- 
 
 Thc Rolling Stock now on the several Hneii to be Valued and the 
 amount so determined to be kept or held as a suspense fund against 
 any improvements: such as additional stations, buildings, mill or 
 mining branches or any expenditure, traffic may suggest and made by 
 the contractor. 
 
2d 
 
 id II value 
 I'd mutually 
 
 per cent on 
 ind accepted 
 
 & (>)., 
 Con t motors. 
 
 y 1878. 
 
 !, signed by 
 lebec, and in 
 'kinpj of the 
 2; tenders for 
 nd working, 
 lent ot resu- 
 ling comple- 
 find A_\ I tiller. 
 wwC: ilh ioioii 
 h the Canada 
 ons bear date 
 
 ipts from all 
 •iieing there- 
 
 lucd and the 
 fund against 
 iigs, mill or 
 md made by 
 
 The Government to provide all permanent works such as tanks, 
 water stations, pninps. turn-tubles, weighin-r machines and tia'-k scales, 
 engine houses, coal and wood sheds, si<lin,'s and every thing necessary 
 to the storing and protection of the Rolling Stock. 
 
 The Government to advaifce one half of the cost of all additional 
 rolling ,' lork miiterials, tools in the repairing shop.s, stores and capital 
 expenditure nt five per cent, in addition to the hire or rent of the said 
 road, which contractor binds himself to pay. The controctor to he 
 permitted to assign his contract or transfer his lease to an incorporated 
 company having a capital of not less than five hundred thousand 
 dollars. 
 
 I am prepared to give satislactory security for the due performance 
 of the conditions of the lease, and I deposit, with this my propofil, an 
 accepted cheque for one thousand dollars as a guarantee that my 
 proposal is made in good faith. 
 
 (Signed), 
 Address 
 
 care of M. A. Hrarn, Esq. 
 
 Advocate, 
 Quebec. 
 
 VERNON SMITH C. E. • 
 
 Halifax N. S. 
 
 Montreal, 31st. January 1878. 
 
 Tender for that part of the Quebec, Montreal, Ottawa and Occi- 
 dental Railway, lying between the city of Montreal and the town of 
 Hull, with branch to St. .TerAme : in all 138 miles 11638 ft. and for 
 the contemplated addition of the said Railway, from Aylmer to '' Por- 
 tage du Fort, " of about fifty miles, to connect the same with thi.' Ca- 
 nada Central Railwav. 
 
 « 
 
 The undersigned, for himself and associates, hereby tenders for the 
 lease of the Railway above specified and m terms of the general condi- 
 tions for leasing and working issued by the Government of the Province 
 of Quebec j 
 
 Ist. He will supply the necessary Rolling Stock for the efficient 
 working of the Road, taking that portion of the Rolling Stock now upon 
 the Railway which the Government may desire to dispose of, at a va- 
 
■^;> r ■■'■iiw .j i ! ■ ! ■ 
 
 ■ ■ii L i| HW »ii BJ .i<M H" i|»i» 
 
 S4 
 
 [I I 
 
 il:;i 
 
 ilSv 
 
 hi! 
 
 
 luation which shall be fixed, in case of disagreement, by arbitration in 
 the usual way ; 
 
 2nd. He will efficiently maintain the Railway and operate upon it 
 an efficient service of passenger and freight trains ; 
 
 3rd. The arrangement to be for a period of ten years, with the 
 right to the Government of resuming possession of the Road, after the 
 expiration of the first five years, on the conditions mentioned in the 
 notice asking for tenders : 
 
 4th. In the event of the Quebec, Montreal, Ottawa and Occiden- 
 tal Railway using that portion of the line, now tendered for between 
 the junction with the Ottawa Line and Montreal (city), the parties 
 leasing the said Quebec section shall pay reasonable tolls for the privi- 
 lege of running over the said Railway, and shall work their trains 
 under such reasonable regulations as may be adopted by the under- 
 signed and his associates, for the management of the traffic of the said 
 Railway and failing agreement in regard to such regulation or for the 
 tolls to be paid upon the traffic, the same to be settled by arbitration. 
 
 5th. The undersigned and his associates will pay to the Govern- 
 ment of Quebec twenty per cent of the receipts taken upon the said 
 Railway and they will bind themselves to fully and legitimately 
 develop its business. 
 
 60. It is understood that the clause in the printed conditions as 
 to assumption of additions or improvements, done at the cost of lessee, 
 by the Government, will apply — should he decline to renew con tract at 
 the end of 10 years as well as in the event of the Government 
 declining. 
 
 7th. An accepted cheque for one thousand dollars in terms of the 
 "General Conditions" already refered to, is enclosed. 
 
 (Signed), 
 
 J. L. MILLAR, 
 
 for self and others 
 
 5j, 
 
rbitration in 
 
 )erate upon it 
 
 ars, with the 
 )ad, after the 
 tioned in the 
 
 and Occiden- 
 l for between 
 ), the parties 
 for the privi- 
 their trains 
 3y the under- 
 lie of the said 
 ion or for the 
 Y arbitration. 
 
 ) the Govern- 
 
 upon the said 
 
 legitimately 
 
 conditions as 
 cost of lessee, 
 ew con tract at 
 
 Government 
 
 1 terms of the 
 
 LLAR, 
 
 lelf and others 
 
 ^6 
 
 Quebec; 7th Nov. 1877* 
 
 Sir, 
 
 Referring to my previous letters upon the subject of leasing the 
 Provincial Railways, and their Branches, for a period of twenty five 
 years, and to your verbal request that I should make an offer to lease 
 the 330 miles, or thereabouts which lie between Quebec, Montreal and 
 Aylmer, including the branches, based upon a percentage of earnings, 
 in addition to a given sum per annum of the Gross Earnings withcnit 
 the payment of any such specific sum, I have now the honor to submit 
 the following : 
 
 First, I will give $170 000 per annum and 40, 0^0 of the residue, after 
 the said sum of $170,000 shall have been deducted from the net earnincr« 
 or, 
 
 Second, I wilUgive the said sum of $170,000 per annum and 2,0/0 
 of the Gross Earnings, or, 
 
 Third, T will give 18| 0/0 of the Gross Earnings, without a fixed 
 sum per annum. 
 
 Should either of the two first offers be accepted, it may be under- 
 stood that, when the line between Aylmer and ''• Portage du Fort" shall 
 have been completed and handed over, the stipulated bulk sum shall 
 be increased to $180,000 per annum. 
 
 In the event of the third proposition being accepted, it must be 
 understood that, on the completion of the line to "Portage du Port," 
 the percentage to be paid for the whole line shall be 17^ 0/0 of the 
 gross earnings, without any fixed sum. Should the Government lease 
 to me that portion of the line, between Montreal and Aylmer, on its 
 completion, and before the portion between .Montreal and Quebec is 
 ready to be operated, I shall be willing to pay them 20.0/0 of its Gross 
 Earnings. 
 
 It must, of course, be understood that these offers are based upon 
 
!i 
 
 the assumption that the Road shall be fully completed and suitably 
 equipped. 
 
 I have the honor to be, 
 
 Sir, 
 Your obedient servant, 
 
 (Signed), 
 
 To the Honorable 
 
 C. B. DeBoucherville, 
 
 Minister of Agriculture 
 
 and Public Works. 
 
 P. MITCHELL, 
 
 for self and associates. 
 
 
 !«i 
 
 • ' 
 
 ?j 
 
 ill" 
 
 ; - 
 
 ri i 
 
 Miramichi N. B, 28th January 1878. 
 
 Gentlemen, 
 
 At the request of the Honble. C. B. DeBoucherville, I, on the 
 7th Nov. last, enclosed him, as minister of Agriculture and Public 
 Works, a tender for the running of the Quebec, Montreal, Ottawa and 
 Occidental Railway, a copy of which I now annex, as my tender under 
 your advertisement of the 20th Dec. last, suiting the conditions thereof 
 as to the 10 years period. 
 
 I observed paragraphs third and fourth, on the second page of your 
 printed conditions, in relation to rolling stock, about which I am in 
 doubt; I have construed them to mean that the portion of rolling stock 
 you have on hand, when taken at valuation, is to be given in with the 
 Road, although valued, for the purposes of return when the lease 
 expire. 
 
 I have the honor, to be, 
 
 Your obt. Servant, 
 
 (Signed,) 
 
 To the 
 
 Quebec Railway Commissioners, 
 
 Quebec. 
 
 P. MITCHELL, 
 
 for self and associates. 
 
 ■^ 
 
^7 
 
 suitably 
 
 .ssociates, 
 
 Quebec, Ist February 1878. 
 To the Railway Com. 
 Genllemen, 
 
 Enclosed you will find check for $1,000 and my tender for 
 Western Section of the Q. M. 0. & O. Railway. T may state that a 
 bridge at Ottawa is a necei^sity, as the cost of carting a car load of 
 goods, to and from the trains, costs $8 per car. 
 
 I remain Your's : 
 (Signed,) 
 
 DUNCAN McDonald. 
 
 .878. 
 
 I, on the 
 ,nd Public 
 ttawa and 
 der under 
 ns thereof 
 
 ge of your 
 
 I am in 
 
 ling stock 
 
 1 with the 
 
 the lease 
 
 .L, 
 
 iociates . 
 
 Quebec, 1st. February 1878. 
 Gentlemen, 
 
 I propose to lease the Western section of the Quebec, Montreal 
 O. Railway including St. Jerome Branch (say 137 miles.) 
 
 1st. At sixty thousand dollars per annum, casbor 
 
 2nd. Twenty five per cent of gross earnings 
 
 (Signed,) 
 
 DUNCAN Mcdonald. 
 
 [Translation,] 
 
 Quebec, 3 1st January 1878. 
 To the Commissioners of the 
 
 Q.M. 0. &0. Railway. 
 Gentlemen, 
 
 We have the honor to submit to you the following proposals in con- 
 nection with the lease of the Q. M. 0. & 0. Government Railway from 
 Quebec to Aylmer, with the Piles and St. Jerome branches, forming a 
 total length of 326 miles. 
 
 lo. The Government shall lease the above roads to the under- 
 signed for a period of ten years, in consideration of the annual pay- 
 ment of the sum of ($50,000) fifty thousand dollars besides 15 0/0 on 
 the gross receipts of the road, the whole payable monthly. 
 
■■ i 
 
 2B 
 
 
 
 m 
 
 .1 1 
 
 i'i'' 
 
 ; iti ii : 
 
 i:?;!iii; 
 
 ■'liliiii 
 
 2o. The lessees shall undertake the maintenance in good order of 
 the road, stations, fences &c. 
 
 3o. The rolling stock shall be valued on the delivery thereof and 
 at the expiration of the lease and if any deficit or surplus be found to 
 exist in the value of Rolling. Stock delivered, such difference shall 
 be paid to the party thereunto entitled. 
 
 4o. If it become necessary to make improvements on the road, 
 over and above the ordinary maintenance, such improvements shall 
 only be made with the approval of the Government and of its Engineer. 
 
 In the same manner if it become necessary to establish water 
 communication between Montreal and Longueuil to connect with the 
 Montreal, Portland and Boston Railway, between Berthier and Sorel, 
 to connect with the South Eastern Railway between Quebec and Levis, 
 to connect with the Grand Trunk and Levis and Kennebec Railways, 
 such extraordinary expenditare shall be incurred by the lessees who 
 shall be repaid for the same by the Government ; 
 
 5o. The lessees shall undertake the working of the extension of 
 road between Aylmer and Portage du Fort, as soon as it shall be com- 
 pleted, by giving ihe Govern merit 15 o/o on the gross receipts of the 
 road ; 
 
 60. The lessees bind themselves to maintain the traffic on the 
 road by running two passengers and two freight trains at least, every 
 day, one starting, from Aylmer and the other from Quebec. 
 
 7o. The Government shall appoint a treasurer and inspectors to 
 keep a check on the accounts. The treasurer shall take over all the 
 monies each day and shall dispose ofthe same in the following minner : 
 
 On the first of each month he shall pay the share belonging to the 
 Government, to the Treasurer of the Province, he shall pay the wor- 
 king slaif and f jr materials on the order of the lessees and shall hand 
 them over the balance ; 
 
 80. Inspectors of all kinds shall, by right, have access every where 
 and shall report to the Government on the faithful carrying out of the 
 contract ; 
 
 9o. The mothod of keeping a<3Counts, in all its details, must be 
 approved by the Government ; 
 
 i^ll si: 
 
29 
 
 order of 
 
 ereof and 
 
 found to 
 
 nee shall 
 
 the road, 
 nts shall 
 Engineer. 
 
 sh water 
 with the 
 nd Sorel, 
 nd Levis, 
 ilailways, 
 sees who 
 
 lOo. In case the Government should prefer to take its remuneration 
 in proportion to the traffic, the undersigned, instead of the considera- 
 tion mentioned in the 1st clause hereinabove, would give, in lieu of 
 the price specified, a proportion of 20 o/o, twenty per cent on the gross 
 receipts of the road. 
 
 tion. 
 
 Hoping that our proposals will receive your favorable considera 
 
 We have the honor to be. 
 Gentlemen, 
 Your obedient servants, , 
 
 (Signed,) L. A. SENEGAL & CO. 
 
 " ALEX. McDonnell & co. 
 
 " A. LABERGE, junior. 
 
 ension of 
 [ be com- 
 s of the 
 
 ic on the 
 LSt, every 
 
 ectors to 
 er all the 
 minncr : 
 
 ng to the 
 
 the wor- 
 
 lall hand 
 
 ry where 
 )ut of the 
 
 I, must be 
 
 [Translation.] 
 
 Quebec, 15th February 1878 
 To the 
 
 Hon. C. B. de Boucherville, 
 
 Premier. 
 Sir, 
 
 We had the honor, on the 30th January last, to submit for the 
 consideration of the Government, two propositions to Iccise the Q. M. 
 0. &0. Railway and its branches. 
 
 We take the liberty to now submit to you a third proposition in 
 connection with the two former. 
 
 In the report of the Railway Conunissioners (page 10) it appears 
 that there still remains to be performed certain works to the amount 
 of $689,280.80 to complete the western Section of the road. 
 
 In the event of the Government desiring to have these works 
 completed without delay, we would be happy to undertake them and 
 would bind ourselves to complete them with every possible diligence. 
 
 These works to be payable by monthly payments, upon the 
 amount of which the Government would retain a proportion of 30 per 
 
'^W 'VI V S*^ **^ 
 
 ■■ •' I j t nim t a^J Hmm w rn B 
 
 i i 
 
 I I 
 
 
 I i., 
 
 n 
 
 'I r i 
 
 m\ : 
 
 i: 
 
 30 
 
 cent, which shall be estimated upon the rental of the road, provided 
 always that this drawback does not exceed an amount of $20D,000. 
 
 We should be equally disposed to undertake the building of the 
 extension between Ay I me r and River Quio, for the sum of $15,000 per 
 mile . 
 
 For this consideration, we would give you a complete railway 
 with all its accessories (Rolling Stock excepted) of the same class 
 and equal in all respects to the main line, the whole subject to the ap- 
 proval of the Government Engineers. 
 
 The conditions of payment to be the same as for the works first 
 mentioned. 
 
 We have the honor to be, 
 
 Mr. Preii ier. 
 Your obedient servants, 
 
 (Signed,) 
 
 L.A. SENEGAL & CO. 
 
 ALEX. McDonnell & co. 
 
 A. LABERGE, FILS. 
 
 [Tmvslation^] 
 
 Quebec, 28th February 1878. 
 To THE Hon. G. R. de Boucherville, 
 
 Mr. Premier, 
 
 I have the honor to submit for the consideration of the Government 
 a question of the highest importance for the future and permanent suc- 
 cess of the Quebec, Montreal, Ottawa and Occidental, with a proposi- 
 tion to avert the danger which threatens its commercial future. 
 
 The road, as it is actually built, starts from Quebec to terminate 
 nt Hull, without being connected with any of the network of Canadian 
 Rail .vays and without any means of communication with the American 
 system. 
 
 The only possible traffic is consequently the local traffic between 
 those two points. 
 
, provided 
 r|'20D,000. 
 
 liing of the 
 ;15,000 per 
 
 te railway 
 
 same class 
 
 to the ap- 
 
 works first 
 
 I 
 
 O. 
 
 . &C0. 
 
 Y 1878. 
 
 Government 
 rmanent suc- 
 ;h a proposi- 
 ti! til re. 
 
 to terminate 
 : of Canadian 
 the American 
 
 affic between 
 
 31 
 
 When the road will be finished, to Portage du Fort, it will 
 be connected witli the Georgian Bay and Pacific road ; but it Avill al- 
 ways be on a footing of inferiority as compared with the other lines, 
 for the Ottawa trade find enJing at Ottawa. 
 
 Jt would therefore be importaiit to connect it with the Canada 
 Central, to place it in connnmiication with the Canadian and American 
 systems and benefit the trade of the Ottawa valley. 
 
 The Grand Trunk Company, understanding the importance of this 
 
 outlet, is now making great efiorts to liave the terminus of the Coteau 
 du Lac Railway at Ottawa. 
 
 By means of this new road, the Grand Trunk Company would 
 have a shorter line between Montreal and Ottawa, than the Northem 
 line ; it runs into the City of Ottawa, connects with the Canada Central 
 and will deprive us of a great part of the traffic which we expect to 
 secure . 
 
 The Coteau du Lac Railway Company have obtained from the 
 Ontario Government a charter and a subsidy of $4,000 per mile which 
 they expect to get increased to $5,000 and municipal subscriptions to 
 the amount of $160,000. This amount being inwiifficient to build the 
 road, the Grand Trunk Company propose to come to its assistance in order 
 to facilitate for it a loan of the balance required. 
 
 The Grand Trunk Company to pay aii annual rental of $50,000 
 which sum would be set apart to pay the interest on the contemidated 
 loan . 
 
 If, to this perspective, be added the political interest of the Ontario 
 Government, who are threatened with the loss of the counties of Pres- 
 coot and Glengarry, it must be granted that never will a local enter- 
 prise have been seconded by such powerful influences. 
 
 The only means of averting this contingency, would be to connect 
 the Q. M.O. and 0. Railway, from its actual terminus at Hull with the 
 Canada Central in the City of Ottawa, by constructing a bridge over 
 the Ottawa River, to give to {\y,\\ section of country the same advan- 
 tages as the Grand Trunk propoM's to give it, to anticipate the latter in 
 the execution of the works, in order either to prevent the loan or at 
 least to secure time to eflect connections with the trade of that region 
 before the Grand Trunk can tap it» 
 
32 
 
 in 
 
 '\ ' 
 
 !?■ 
 
 k( 
 
 U 
 
 For this purpose, I have the honor to propose to the Government 
 that the chuiso of our tender of the 30th January last, oftering to 
 increase the rental by $15,000 annually, in the event of the Govern- 
 ment building a bridge over the Ottawa be struck out and the following 
 clause be substituted. 
 
 " The undersigned will construct, '.vith all possible diligence, a 
 " bridge over the Ottawa River and the road necessary to connect the 
 " Q. M. 0. & 0. Railway from its actual terminus at Hull with the 
 " station of the Canada Central Railway in the City of Ottawa." 
 
 ** The Government shall cause to be prepared a plan and estimate 
 " of the total cost of these works and shall permit the undersigned to 
 *• issue debentures to an equal amount : such debentures shall be 
 guaranteed by the Government " 
 
 " The Government may, when it deems proper, purchase this part 
 of the road by indemnifying the undersigned for the amount expended 
 " upon the said works." 
 
 In conclusion, I desire to add that the probable cost of these 
 works will be |400,000. 
 
 If the money can be obtained at 5 per cent interest, the Goven- 
 raent would be liable for a sum of $20,000 a year. In return, the pro- 
 bable increase of traffic would be $300,000 which at 2 per cent would 
 yield a sum of $00,000 as the share coming to the Government. 
 
 I have the honor to be, 
 Mr. Premier, 
 Your very humble and obedient servant, 
 
 (Signed,) L. A. SENEGAL & Co. 
 
 For and in the mimes of the signers of the tender of the 30th 
 January last. 
 
 (Signed, L. A. SENEGAL & Co. 
 
 a 
 it 
 
 ALEX McDONNEL & Co. 
 A. LABEKGE, FILS. 
 
 True Copy, 
 (Signed,) 
 
 E. MoREAU, 
 
 Secretary. 
 
[jrnment 
 ;ering to 
 Govern- 
 )llowing 
 
 gence, a 
 i3ct the 
 vith the 
 
 estimate 
 igned to 
 ihall be 
 
 :his part 
 spended 
 
 )f these 
 
 Goven- 
 iie pro- 
 it would 
 
 b. 
 
 Co. 
 :he 30th 
 
 ). 
 ;Co. 
 
 I