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i*,^'- 
 
 1/ 
 
 CDiflnecto marine 
 transport Railioap Co., £tl 
 
 REP©i?T 
 
 By MR. A. D. PROVAND 
 
 Rdating to tiK negotiations loltb ibe CanatHan eodtnimeni for 
 llK Rtinstatemtnt or ibc Compaiip. 
 
 Presented at a Meeting of the Share and Debenture Holders 
 
 held 20th May, t898 
 
mmmmmmmmm 
 
 TP 
 
 V 
 
 Relatin 
 
 frrsr 
 
 ll 
 
f 
 
 CHIGNECTO MARINE 
 TRANSPORT RAILWAY CO., LTD 
 
 REPORT 
 
 By Mr. a. D. PROVAND 
 
 Relating to the Negotiations with the Canadian Government for 
 the Reinstatement of the Company. 
 
 J'nsntU'if (It i( Mrt'thin of tin- S/turc and Ihln'nture IMh'rs 
 
 /iM ./nf/, Ma//, JS9S. 
 
ClliaNECTO MAPJXI] TIIANSPUIIT RAILWAY 
 
 COMPANY, imm). 
 
 To fke Debantare and Skan'hoi,l>'rs of the ('hignecto Maviiie TravMport 
 
 Hallway Company, Limited. 
 
 Gentlemen, 
 
 From timo to time during the past four years we have held meetings, 
 besiiJcs the Statutory Aiimial meeiiiigs, to consider the negotiations which have 
 bci'ii proceeding with the Canadian (Jovt'rnmeut, lor the legislative reinstatement 
 of the Company and re-enactment of the Subsidy, in order that we might proceed 
 with the Railway and complete it. 
 
 It was in ISi)l that the Contractors sioppt-d the work ot' construction, and in 
 lcSy2 I went to Canada t'jr the tirst time to lay our case before the Government, 
 to jiscertain what ausistance they would give, and ro endeavour to make such 
 arrangements with the Government as would (.'liable the new Contractors to 
 recommence construction ;ui(l complete tin; work. 
 
 Since then I have been seven times to Ottiiwa — makiiif' eis>'ht visits aitosiether 
 — to see tlu' Canadian Government about the I'ompaiiy's atiairs. We have 
 had several interviews with Loril Stratheona and the Right Hon. Sir Charles Tupper, 
 l^art., who have held the office of High Commissioner for Canada during the time 
 the negotiations have been jtending. We have also had interviews in London with 
 the Right lion. Sir dohn Thompson and the Hon. Mr. Foster, I'remier and Finance 
 Minister in the hist Government, an<l with the Right Hon. Sir Wilfrid Lauritir, 
 Premier in the present Government. The Directors and a U'W of the largest 
 investors were present at most o( the interviews. 
 
 Stated brieHy, the relief wo have asked iroin (he Canadian Government is, to 
 re-enact the original Acts of Parlianu'nl reinstating the Compauv in possession of its 
 charter and subsidy, ami to gram us sutHcieiit time to eoui[ile'e the Railway. We 
 have further represented to tln' < Joveniuieiit that if tor any reason they decided 
 not to reinstate the Conipanv, in such case we shoulil be entitled to compensation, 
 and we have said that we should be agreeable to consider with them what amount 
 
would bf ivasonublo. and if then- was a lailitrc to aj^'n-o upon the terms of a si-ttle- 
 mtMit, that the i|U('stion of tho amount of i-om|M'nHation should he ndt-rrt'd to 
 arbitration. 
 
 In March last a reply was r('C«nvo(l from th*^ (Jovcrrimcnt to our rt'iiut'st tor 
 reinstatement. This cauK" in tho form <>f a Report to the Privv Oouneil of a 
 Sub-Committee of the Council to whom the (piestion had been referred, and was 
 to the etieet that they did not consider that tho scheme could be retjarded as one 
 of such public utility as wouhl warrant an application to be made to Parliament 
 for a renewal of the lapsed stibsidy. 'I'he Reply sent to this Report and 
 correspondence connected therewith commences on page 21. For reasons stateij 
 in the Reply we asked tiiat the Report sho\dd be referred back to the Sub- 
 committee for reconsideration. Sir Wilfrid Laurier wrote to uw that this would 
 be done, but no cojnmunication has been reci>ived as to thi' result. 
 
 If they decide not to reinstate the Company we consider we are entitled to 
 compensation, and this was represented to Lord Strathccma, thv lli^rh C^ojumissionor, 
 and Sir Wiltrid Ljuirier last summer, ,ind by letters to both since then, but no 
 communication htvs been received from Ottawa in rci^ard to this. 
 
 Havimr now reached this position we feel it to be our duty to place before vou 
 a statement as to what has occurred not only since you subscribed for the Shares 
 and Debentures.but also as to what took place previous to that in connection with the 
 enterprise. The account which we have to lay before you is ru'cessarily of 
 considerable l(Mit,rth, but we beg that you will carehdiy read and consider it. 
 
 The investing cla.sses of this country have carri<Ml out innumerable publi.- 
 enterprises in all |;arts of the world, both in foreign coiuitritM and in the Colonies. 
 but the treatment which we have e.xperienc.'d from the Canadian (Jovornment in 
 connection wirh this \indertakiug has neithi-r preeedrut nor parallel within the 
 field of former experience. 
 
 For convenience I divide into four parts the statenuMit of the j)roeoedings 
 and events: — (1) previous to the issues of the Company's Shares and 
 Debentures: (2) from the <late of these isstu-s luitil th.- C'ontracrors stopj)e(| 
 the construction of the Railway ; (:{) from the stoppage of construction to the 
 presert time : and (4) what is said in Canada about th.' Railway, and a brief 
 conclusion. 
 
» 
 
 ns of a sfftlc- 
 <• referred to 
 
 r reijuest. tor 
 Council of a 
 •re(l. ami was 
 arded us one 
 1 Parlianienr 
 
 Report and 
 o.axon.s stateil 
 
 to the Snb- 
 at this would 
 
 I entitled to 
 oniinissionor, 
 lien, but no 
 
 I'o before yoii 
 'r the Shares 
 tion with tin- 
 i'cessarily of 
 der it. 
 
 r;\b!e ptililii/ 
 
 ihe Colonios. 
 
 vornnient in 
 
 within thi' 
 
 proeoedin^rs 
 Shares and 
 Dors stopjx'd 
 ction to the 
 
 an<l a brief 
 
IMflllillll Illlli.iUPli 
 
PROCKKDTNOS OF TIIK (.'ANADLVN (JOVERNMENT AND PAIILIA- 
 MENT HEKORK THE COMPANY WAS .JKOlJUHT OUT IN LONDON. 
 
 The aci"o:np!uiyin^r iniip of Nova Scoti.-i. on which the position of the railway 
 is marked, shows that thi ohjoct in view in ponstrnctin^ it was to shorten the 
 joiirnoy fr«»rn ports on th«' Gulf of St. Lawroncf^ to potts in the Hay of Fiiiuiy and 
 also further south, by transporting' vessels by the railway across the Isthmus 
 of Chignocto, thus avoiding the nt'cessity of j,'oing out into the Atlantic and 
 round Nova Scotia, and ctl'ccting a saving of aovoral hundred miles. From the time 
 when the provinces* of Canada were federated and became the Dominion of (Canada 
 in 1866, an increasing interest wa.s takt-n in opening a ronte across the Isthmus 
 of Chignecto in order to efftct this purpose. The idea took practical shape in 
 N»tvember, 1870, when a lloyal Cotnmission specially reported upon the feasibility 
 of a Ship Canal across the Isthmus, and strongly reconunended its being carried 
 out. The Report said that the creation of a trade channi'l across the Istlmus 
 would jusi/ify its construction at almost any cost. 
 
 The Government intetided to carry out the work with public money, and in 
 1872 and 187:5 the (Conservative (lovernmcint then in office voted money to 
 commence construction. The Liberal Governnn'iit, which came into office in 1874, 
 continued Lhis policy and also voted money for construction. The work was first 
 estimated t(» cost !?.'),:U7,()0(). Subseiiunit surveys, however, placed the cost at 
 a much highi-r figure, indeed some of the estimates were as high as nine or ten 
 million dollars, and these increased estimates led to a pestponemeiit of the 
 scheme. Meantime Mr. K.'tchum, a C'anatlian civil engineer, placed proposals 
 before the CJovernment for a Ship Railway instead of a Canal. These were sub- 
 mitted to Mr, (^ollingwood Schr.nber, C.M.G., Chief Engineer to the Canadian 
 Governineni, and his Ktport is ipioted in an Order in Cotincil, approved April iOth 
 18S2. As the siibs<"(|uent Acts of the Canadian Parliament were passed on the 
 recommendations contained in this Onler. it is set out on page 4.). 
 
 The Order in C'euneil shows that before Parliament was asked to grant a 
 subsidy, the Government were entirely satisHed as to the advantageous character 
 of the Ship Railway proposals. It states in brief:— 
 
 1. That for many years great importance nad been attached to obtaining 
 means to shorten the water tlistance between the St. Lawrence and the Bay 
 
 ot Fundv. 
 
 2. That with this object the scheme of a Ship Canal had been kept in 
 
 view since 1820. 
 
6 
 
 3. Thar, the Royal Commission appointed in 1871, after an exhaustive 
 exam nation, reported entii\^ly in favotir of it, and added that — 
 
 .if,- ." 7'o "^^''''^''f^ «ro clearly pointed .nit by the Boanls of Trade of all the leadin.' 
 cities uf Canada and nion n.terestod in the .levolo,„ne„t of our connnercial inter" ts" 
 not snnply merchants of 8t. .John an.i nthor j.laces in the locality, but n Sa t^ 
 of Hanulttn, Toronto, Ottawa, Montreal, and (Quebec, &o." "itrcnants 
 
 4. That the Ship Canal estimates proved to be higher than they were 
 expected to be. and that the Government were to spend their own money in 
 construction. The Railway scheme was then proposed and its suitability and 
 great commercial value to the country were recognised. 
 
 5. That the Government referred the plans and esti.nates to their Chief 
 Engineer, Mr. Coilingwood Schreiber, C.MG., by whom they were approved. 
 
 6. That the Ship Railway was adopted in place of a'ship Canal because it 
 was — 
 
 (rt) practicable of execution ; 
 {b) a good substitute for the Ship Canal ; 
 
 (r) and b.^l great advantage in respect to cost as compared with 
 the proposed Canal. 
 
 In Mr. Schreiber s Report on the Ship Railway .heme, dated February 4th 
 1882, he quotes the following opinion of the Royal Commi-ssioners as contained o.i' 
 page 79 of their Report :— 
 
 necr.sHiJv^r!'^''"*''' ""^."'|"«J !»*''"t« ""t >.ith remarkable force aiul nnaniu.ity the 
 then.." "^' "^ *""'*^ '•"""«'' ^''^' f^^'"""'^^ "f ('!"g"ect.o dividin;^ 
 
 The last :.aragraph in .he Report of Mr. Schreibcr is a.«. folh.ws :- 
 
 time' of "til!" r^''"" *''" •'».••;';•■"'-•" "• '^ «f«ip Ilailway over the Isthmus was, at the 
 u'"u. n w ^•"'."'^«"^'\^;'^ /i^'l-'-t' - «'-^'^t as IS rher,.i„ stated, it nu.st be n.ueh 
 
 aJiSed b;Vir;;;;;;;2:tk^^^^^ *"""^^^ "'"^^ ^'"^ ''^^^ ■" '^- ^-^^ ^' ''- --'^'-^ 
 
 _ Ob the recommendation of the (Jovern.nenr, contained in thr Order 
 in Council already referred to. iVIiameut, th.n took up the bnsines.s. In 1,.«2 
 two Acts were passed, one incorporating the Chignocto Marine Trat.sporr Railway 
 Company, Limited, and the other providing a subsidy of .^150,000. a vear for 
 -•> years. Ihe names of the Incorporators (21 i,i nu.nber) are given m th; Act of ' 
 lucorporatio-.. They w.re all Canadians with the exception of Mr. Kdwin Clark 
 who, as the inventor of hydratihc maehin-ry u^.-A ., UfMng docks, was for that 
 reason included. 
 
In all Acts of the Canadian Parliament authorising and subsidising any public 
 work it is necessary to make the statement contained in Clause 16 of the Act of 
 Incorporation, which is as follows : — 
 
 "It is hereby flecliircd that the cnnKtruction of the said railway is of general 
 importance and a work for tlie general advantage of Canada." 
 
 But the Canadian Parliament did not limit itself to stating in the Acts what 
 was merely legal and necessary. In the preamble of the Act conferring the subsidy 
 it says that this is given — 
 
 "Tu consideration of tl:e great advantages whieli woidd accrue to the Maritime 
 Provinces and tlie InttM'-colonial tradi^ of Canada generally from the construction of a 
 Ship Railway across the Isthmus of Chignecto, &c., ifco." 
 
 and in the preamble of the Act incorporating the Compmy it states that the 
 Petition of the Incorporators is granted because the construction of the Railway 
 would be — 
 
 " espL'cijilly conducive to tlie development of the ccmunercial interests and 
 coasting trade of th.e Maritime Provinces of the Dominion." 
 
 When Parliament, on the rjcommen-lation of the Government, voted the 
 subsidy to the Railway, it gave the most complete proof in its power that it was 
 satiatied as to the merits and ccnnruercial value of the undertaking. iVnd it went 
 beyond this, as the fort;goiiig shows that the Canadian Parliameiic were so anxious 
 to see the Railway carried out, that it recommended it to Britisli investors in the 
 emjihatic language quoted above from the two original Acts. In l«s:i a further 
 Act was passi'd amending tln^ Incorporalion Act of the previous year, and setthng 
 the amornt of the Capital Stock and Mortgage Bonds. 
 
 The opinion of Parliament was summed up by Sir John Macdonald, then 
 
 Premier of Canada, who, when the first Hill was before the House on the 11th 
 
 May, LSS2, spoke of th." great advantagt! to Canada of the financial proposals 
 
 in regard to the Ship Railway, and said — 
 
 "The amount we are called upon to expend is comparatively small, and we are 
 not called upon ro expend that until w.> have assurance of its success I tlunk the 
 Government is to he congratulated on taking up the matter ni the way it has. 
 
 Meantime. Mr. Ketchum cam." to London, placed the scheme and the Acts of 
 Parlian.ent before Sir Benjan.m Baker, K.C.B., a.ul other emi.ient Engineers and 
 Railwav Contractors. The Engineers in London who were consulted approve.l ot 
 the Railwav as meehunicallv suitable for the purpose of carrymg ships over the 
 I.thn.ns hot Mr. Ketchum could not obtain the capital to carry it ..ut on the term 
 offered bv th- (Jovu-rnm.-nt. During the three years following LVS2, Mr. ketchum 
 
H 
 
 came from Canada to London several times in connection with the business and 
 in 188G. in order to furnish an additional inducen.ent to British investors ^the 
 Cxovernment passed another Act changincr the Subsidy of $150 000 a year for 
 2o years to 8170,602 for 20 years. The contract to construct the Railway which 
 wa5 to be completed by the 1st .July, 1889, forms the schedule to this \ct 
 
 Sir Benjamin Baker went twice to Canada in connection with the schen.e 
 and as the Radway was novel and uni.jue in character, careful and detailed 
 surveys beyond what are usually necessary had to be nutde. and this work could 
 only be earned out durin.^r about seven months h. the year, as fur about Hve' 
 months the ground is covered with snow. 
 
 Therefore the preparation of surv,.ys and plans-a,s is frequentlv the case in 
 such un.lertakmgs-occupied .nore time than rhe Kngineers expeited These 
 therefore, were not con.pleted until IHH'A. Si. Benjandn Baker took them with 
 him to Canada, and they were approved by Mis Excellencv the (iovernor General 
 on the 28rd May. 18,SS. In a Report of a Comnmtee of the Honoral>le the Privy 
 Council reconhng their approval of the plans and specifications, there is th'e 
 tollowmg passage : — 
 
 On account of the time ncoosary to rropan- a,„l ,,„„|,k.t„ the plans and 
 ob.an, the approval of the CanaJia,, G,„v,nment, the Incorporators had to apply 
 to Parl,an,..nt n, 1,S88 ,or an cxtonsion of tinu.. and ano.h.r A.-, was passed in 
 
 S^'O. and alxo a fnrthor extension of ,wo years, that was, until the Is, ,l,dy 
 1^9^ nnder a penalty of s,,,„UO a n.onth lor oael, n,.,n,h duri„B which the 
 Uatlway re,na,„o,l uncotopleted. The finance t;la„se» „f tl„. prev.ons Acts were 
 also anien.led by th.s Act ami the Capital increased. 
 
 /^" ";'" ""k ,,laee down „o this ti.ne was clone by the Canadian Parlianteat 
 A. the 21 Incorporators whose natne, are ,dv,.n in the original Act. -I'Lore wa, no 
 
 p.o,aotton of the enterprtse by yonr U.rectors or anyone else in K.^ 1. The 
 
 incorporators who jo.ned to.^ether and forn.ed what 1 n,av call a ,„-o ,:,r..ui 
 ccnpany to see the sche„,e earned into ...xecntion were n.a pron.o.ers in the 
 ordinary sens. J hey never had any linancal interest n, ,he Co.npanv either 
 belore he capttal was Ibnnd in London or s.nce then. They n.a.le no pr„«t i, y 
 
 repaid. \Uu, theexceptton of Mr. ICdwtn Clark they were all Canadians, n.any 
 
9 
 
 )usines8, and 
 iivestors the 
 • a year for 
 lilway which 
 Act. 
 
 the scheme, 
 
 Hid detailed 
 
 work could. 
 
 ■ about five 
 
 the case in 
 ed. These, 
 
 them with 
 lor General 
 e the Privy 
 lere is the 
 
 resfiitiiij,' the 
 
 '> which will 
 
 :unteiiiiil(ited 
 
 [)lans and 
 id to apply 
 i j)a.sst,!d iti 
 ' 1st .inly, 
 Ist July, 
 which thi' 
 Acts Wore 
 
 ^irliatnt'ut 
 JFc was u<» 
 ind. The 
 iro funad 
 •rs ill the 
 iiy either 
 itit i. .J 
 ere hever 
 lis, uiuiiy 
 
 of them were well known public men, and it was from motives of public spirit 
 that they acted as incorporators and formt^d the Company, the object bemg to 
 obtain the capital in London. The gentlemen who so acted were merely part of 
 the necessary machinery to create a company with whom the Government might 
 make a contract and to whoui thoy might give a subsidy, both of which were 
 to be afterwards transferred to the British investors who found the capital. Of 
 these incorporators, Mr. Ketchum alone was afterwards connected with the enter- 
 I)rise, because the railwa}' was originally projected by him. 
 
 Everything was done; openly in Parliament, which had full knowledge of the 
 actual position and intentions of the Incorporators, and it was perfectly well 
 known that they were coming to London to find the capital. This was stated in 
 the House by the Hon. Alexander Mackenzie, who was then leader of the Liberal 
 Opposition (the Party now in power), on the lith May, 18S2, when the first Act 
 was introduced into the House. He then said that — 
 
 " he (Mr. Ketchum) will no doubt obtain the money in the Enijlish market with 
 the gufirantee of the Canadian (joverniuent." 
 
 The same language was held during all the time from the passing of the first 
 Act in 18.S2 to the last Act in IS.SS, on which occasion Sir Charles Tupper, who 
 was then Finance Minister, said: — 
 
 "The (Jovenunent is not asked to pay any money, but simply to enable English 
 capitalists to furnish all the money recpiired to give us the work at half the cost we 
 could obtain these advantages in any other way." 
 
 Therefore, between LSH2 and 1888, the Government passed two original Acts, and 
 amended them by .subseiiuent Acts passed in 18S;}, 1.S8G, and 1888, for the pro 
 furmd Canadian Company compo.se(l of the 21 Licorporators, with the sole object 
 of making the entt^rprise sulKciently satisfactory to investors on this side, to 
 induee them to find the capital. 
 
 The foregoing is a brief account of the Parliamentary history of the enter- 
 prise before it was brought out m this country and the capital offered for sub- 
 seription. Before it was introduced to rarliament at all, it had obtained the 
 sanction and approval ..f the Canadian Government. The scheme stoo.l the test 
 of a long and eompU'i.' exan.inaliou in Canada by Engineers, including the Chief 
 Engineer to the Government, by the Ministers, by Parliament, and by leading 
 c.mmercial authorities. The detailed plans were all submitte<l to, and obtained 
 thesanetioP of, the (lovernmenl. leading Boards of Trade m important cities 
 d other publie bedies passed reM.lutions cordially supporting the i'.iterprise. on 
 
 aiKt 
 
 account ot tiie comiii 
 ri'solutioii to this etlnt 
 
 !<Mal ;m!v 
 
 !ii!a;''es w 
 
 liich would follow it^ eoustnirtioii. 
 
 Thi 
 
 bv the IV, id if Trade ol .St, .lohii, New Brunswick, will 
 
10 
 
 be fond on pa,e 40. Tho local anthoritios in tho district throuKh which th. 
 
 undertaking. The advantages as oon.pared with the Ship Canal wore reue-ttedh- 
 dwelt upon. The latter would have been con«tr,.eted at rJ »^P-^t^*dh 
 
 o«ri +K cu- i> -1 '-oubinu.tea at Uovernnient exuonse 
 
 and the Sh.p Ua.lway wa,, ,leiib„,U,.|y a.l>,pt.,l u„t „„ly because it would sa™ .' 
 
 G„ver„,„ent from „,c„rri„s ,his outlav, a.ul ah., fr iu „„,,„i„rity ever a SW , 
 
 Canal ,„r the r."rp"se „f ,„p„l,i,„ th, „.,„j..,, „,j, „„,„ ,;^,,.„^^ ^ ;;; ^^ 1, 
 but hkewse rou, the fact alludcl to by the Pn.u,ier, «ir .lohu Macdouald i,' 
 
 peech ,,u„ted „„ page 7, that unh-.s the Uaihvay wa, completed to t „ Ja isfi 
 t.on of the Gove™,„e„t, they would „ot be liable to pav anv ,ul,sidv .tl ,S ,' 
 
 It „-,n,ld be difficult to „a,„e auy euterprise of the kind ever brought ,o 
 Loudon to be hnauced that was more con.pletely for,„ie,l than this wZ bv a 
 the ev,dence and guarantee, that our Eugiueer. an,i Fu.ancie,. eoul.l look W b for 
 bnug,„g ,t under the notice of investors. Kor ntany year, befor.. the Ship lai »" 
 was proposed, the Ship Canal wa, warndy advocated by all parties a, I't „ Shti 
 Ra way schon,e when brought f,„..vard. presenting Ju di,'l so ,„.,: ad^.ta 
 over a Canal, was eagerly adopted and promoted in everv wav bv the C-,„adian 
 
 Wn,me„t an.l Pa nent. Kvery state nt Went to p^ve H.at iT v^T 
 
 b> the Canadtan (.over.unent an,l I'arlian.ent as a n..cessary public work, and w 
 had every assurance that ,t would be successful both as an ^[gi, coring sch me a 1 
 also as a commercial venture. ■ 'i, smi me ai,.i 
 
 --'''■■'■f-'"-i'^<'-it - iiiii-iiiii» i««iiii>«i>'iri- iiif 
 
11 
 
 RAISING THE CAPITAL IN LONDON AND COMMENCING 
 CONSTRUCTION OF THE RAILWAY. 
 
 When the Act of 1888 was passed extending the time to complete the 
 Railway and finally fixing the amount of capital to be issued, the Canadian 
 Parliament had completed all that was necessary to enable the Company to be 
 brought out in London and for the Shares and Debentures to be offered to the 
 public for subscription. 
 
 Your directors were then invited to become Members of the Board in London. 
 None of them had any previous connection with the enterprise oi with the 
 Canadian incorporators who first formed the Company. 
 
 The capital required to meet the contract for construction was £700,000 in 
 Debenture Bonds and £800,000 in Preference Shares. 
 
 When everything was ready to make the capital issues, it was found that in 
 the previous year the Canadian Parliament had passed a General Railway Act 
 which regulated the formation of oil railway companies in Canada except in so far 
 as they were governed by special Acts. Section 93 of this General Railway Act 
 deals with the issue of Bonds, and, after setting out certain particulars relating to 
 them, it says in sub-section 4 : — 
 
 " hut no Konds or Dijbonttire.s slmll be ksiiocl until 20 poicentum of the cost has 
 been actually expeiulod oji the work." 
 
 The above sub-section, therefore, prevented the Directors from issuing any 
 Debentures then, and conseqtiently they could only offer the £300,000 Preference 
 Shares. The Prospectus offering these was issued on the 20th March, 1889, and 
 the whole amount was immediately subscribed for at par. 
 
 The work <>t construction was proceeded with as rapidly as possible, but 
 £220,000 had to be expended on the Railway before the Company was legally 
 entitled to issue any of the tTOO.OOO Debentures, and this amount was not 
 expended until the end of the followin<f November. Meantime a chantfo had come 
 over the money market in conse(iuence of threatened financial difficulties in the 
 Argentine Kepublie and other countries. On this account your Directors could 
 only obtain subscriptions for £250,000 of the Debentures out of the total amoun 
 of £700,000 authorised, 'i'lie Pros[ . "is for the £2."iO,000 in Debentures was 
 issued late in 1889, and they were subscribed for at £108 10s. per £100 Bond. 
 
 Early in 18>S9, whi-n the Preference Shares were subscribed for, the £700,000 
 of Debentures could aU-i> have been issuinl and the whole capital required 
 
 No subseqiient financial difficulties 
 
 com 
 
 pU 
 
 Railway 
 
 procured 
 
12 
 
 could then have interfered with its completion. But the conipnisorv postpone- 
 ment until the end of 1889 was fatal, and it was the sole cause of the "Debentures 
 not being subscribed for when a sufficient amount had been expe.ided on the work 
 to legally entitle us to issue them. 
 
 In the prospectuses offering the Preference Shares and Debentures for 
 subscription to the public, the Subsidy Clause in the Act of Parliament was set 
 out, so that every investor knew the terms and conditions on which it became 
 payable. This clause is reprinted on page 46. 
 
 When the proceeds of the Debentures which were sold had been e.xpended on 
 the work, it then became impossible to issue any more on account of the increa.s- 
 mg feeling of distrust in the public miml a.s to the Hnaucial outlook of affairs in 
 the Argentine Republic. Therefore, as the work proceeded, the Contractor was 
 paid in the Debentures themselves against the Engineers' Certificates for work 
 done. The total amount of Debentures issued bv the Company was £404 <)0() 
 leavuier an un-i.ssued balance of £295,100 making £700,000 altogether. 
 
 Many difficulties were encountered in carrying out th.' work. There wis an 
 unprecedented rainfall which kept the ground Hooded and str.pped work for -t 
 considerable part of a whole season. It was also found necessary to make extra 
 excavations in the docks, the foundations for which had to be carHed tw.ntv-four 
 feet deeper than originally intended, in order t,. obtain solid foun.lations for the 
 masonry. The supply of labour w.ts also li.nited. on acco.mt of large works being 
 then earned on in the neighbourhood, which prevented the sub-contractors from 
 being able to obtain as many men as they would otherwise have employed A 
 very serious difficulty was met with at one part of the line where the ground was 
 fom.d to be so boggy that immense excavations, far beyond what were originally 
 estimated, were found to be necessary to prevent possible subsidence afterwards. 
 For these reasons the Contractors found that they would re.p.ire a further year's 
 time to complete the Railway, that is to say to Lst July, 1«9;{ 
 
 Applioatio. was therefore made to the Canadiau (Jovenunent in the beginning 
 of 18J1 for an extension of ri„.. ,;.r one year, an.l to luue the Clause repealed in 
 the Act of 1888 involving the liability to pay .s.-,,00O per nu.uth for each month 
 the works we,Te m an unHnished state after the 1st July, isun J have been 
 unable to ascertain why this penalty was put m the Act of 1888. It was done by 
 the Canadian Incorporators the year before we were connected with the enterprise. 
 So far as I know the Canadian Covernment did not a«k for it. and they nuule no 
 objection to its being repealed in 1891. 
 
 Besides constr,icting the Chigneeto Railway the Contractors were at the time 
 carrying out extensive railway contracts in the Argentine Republic, for which 
 
la 
 
 ory postpone- 
 e Dt'bontures 
 1 on the work 
 
 ?b('ntures for 
 nent was set 
 ;h it became 
 
 expended on 
 r the increas- 
 i of affairs in 
 •n tractor was 
 ites for work 
 'OS £404,900 
 r. 
 
 'here was an 
 1 Work for a 
 L) make extra 
 I twenty-four 
 tions for the 
 works being 
 tractors from 
 in ployed. A 
 
 ground wjus 
 re originally 
 ( afterwards, 
 irther year's 
 
 le beginning 
 ■J repealed in 
 each month 
 I have been 
 wa.s done by 
 e enterprise, 
 ley made no 
 
 at the time 
 .', for which 
 
 they were unable to obtain payment, and as they could not sell any of the 
 (Company's Debentures beyond the .£2.50,000 originally issued to the public they 
 shortly afterwards found that they had exhausted their means and were therefore 
 compelled to suspend the construction of the Railway. When operations were 
 suspended nearly three-quarters of the total work on the Railway had been done, 
 and but for the insurmountable difficulties which the Contractors had to contend 
 with, the Railway would most likely have been completed and ready for being 
 opened in 1S!)2, or early in ISO.*?. 
 
 I have already explained in the first part of this Report how the Canadian 
 Government and Parliament encouraged and promoted the enterprise. It is 
 therefore of importance to see how thi'^ was looked upon by a leador of the 
 Opposition in 1891. When the Bill, askinc; for the extension of one year, 
 was then before the House, the Hon. Sir Richard Cartwright, now Minister of 
 Trad<! and ComuKirco in the present (government, made a short but remarkable 
 statement showing the responsibility of the Canadian Government for the promo- 
 tion of the Railway, and the relation in which they stood towards our Share and 
 Debenture holders. These are his words delivere 1 on the 29th May, 1891 : — 
 
 " Tho fiict of Pfirliamcnt ijniutin^ n subsidy of 8170,000 a year for twenty 
 years to tliis railway, will iiii|>Iy to the iiiiu'ls of English capitalists, from whoso 
 pockets 1 take it tliis uioiiey is expected, that tlie Canadian (loverninent lias looked 
 into the work, tlial tliuy Ijclieve it; to l)e a valii.il)le work, a'ul tliat it nriy fairly be 
 implied tliat tho Government lielieve it to l)e reasouatily {)roHtal)le to tliose people 
 whoso money wo are jtractically .securins,' in conse(iuenco of our havrig granted a 
 sub.sidy." 
 
 Comment cannot add tWrce to the above language, as Sir Richarrtd 
 Cartwright states explicitly that our investors by the offer of a subsidy understood 
 that the Canadian Government had looked into the work, that they believed 
 the Railway was a valuable work and that it would be reasonably protitable. 
 
 The .sole responsible cause of the Contractor being compelled to stop 
 the construction of the Railway, and of all the (^)mpanv's subsequent trouble 
 was the enactment by the Canadian I'arliaineur of sub-section 4 of Clause 93 
 of the General Railway Act of l.SSS. I'.ut for the change in the law 
 then made, the Company could havr issued all the Debentures early in 1889— 
 when th(! I'n^ferouce Shares were subscribed for— and secured the entire capital 
 required to complete the Ra-.lway, ht.t tho sub-section made this course impossible, 
 and when the Companv became legally ."utitled to is.^ue rhi" Debentures, the state 
 of our money market made it no longer j.ossible to do so. 
 
 Ah<I it is to !»■ >u>te<l that it nus ,i/frrin(ir,l^ discovered that the 
 i ,,actnie,it of tfds sab-sedion, ivltick un-o,u/ht uitr Compaay so much mischief, 
 
14 
 
 was found to be a legislative hlunder, and in tSiU ParlUimnit was cmnpelled 
 to repeal it, ivhich the,, did by Section J^ of the Act, Chap. :J7, of thai year. 
 
 Our Company was therefore forced into its ditficulties by the unfortunate error 
 of the Canadian Parliament itself in passing into law what tht-v afterwards found 
 to be a totally unworkable ondition, and secondly by the long continued financial 
 disturbance in London durirg which so many great financial houses s.ispended 
 payment which made it impossible to repair the legislative mistake. 
 
 Therefore you, the Share and Debenture holders, are sufferers, not from anv 
 failure on the part of our Company, but fron, the- default of our Contractors who 
 when they made the Contract were in a position of undoubted monetary standing 
 and were perfectly co.npetent to undertake such a work. The circumstances are 
 such as to entitle us to the active sympathy of the Canadian Government, and 
 this should be extended to the Contractors, whose default was caused by the Act of 
 the Canadian Parliament itself; the consequences of which thev were unable to I 
 withstand owing to the long continued monetary depression ' and to the non- ' 
 fulfilment ot obligation, by Governments for whom they were carrying out large 
 contracts in South America. 
 
15 
 
 WHAT OCCURRED AFTER THE CONTRA(TORS SUSPENDED 
 
 CONSTRUCTION. 
 
 When construction was suspended on th(! Railway, the Contractors were of 
 opinion that the difficulties would be only temporary and that work would bo 
 resumed in the following year. 
 
 The Board first memorialised the (lovermnent for financial assistance. Their 
 communication was replied to by the Hon. Geo. E. Foster, then Minister of 
 Finance, and in stating that the Govemmeut could not give such assistance, he 
 added these words at the end of his letter : — 
 
 "In cominij; to this conclusion, the Oovornment desires to recownise the energy 
 and thoroughness with wiiich the ("oniiHiny iiiis cnnied forwfird its work, iiud to 
 express synipntliy with it in tlio uniisuiil untl untoward circunistances which have been 
 mainly instrumental in produciiii^ what it is hoped will bo only a temporary 
 embarrassment." 
 
 Early in l.S})2, as it was found impossible to issue any Debentures, I 
 proceeded to Canada and asked tho Government to grant the Company an Act 
 authorising the issue of .£350,000 in First Preference Debenture Bonds, which 
 would be sufHcient to complete the Railway, and also to extend the time beyond the 
 1st July: 1H})3, as it had then become impossible to raise the capital and complete 
 the work before that date. 
 
 Parliament thereupon pa.ssed an Act authorising the issue of £350,000, and 
 the Government granteil an Order in Council, approved 9th July,l(S()2 (see page 47), 
 in which, after stating the particulars of the outlay on the works, the amount 
 reciuired to complete them, and the fact that unless the Company had the 
 a.ssurance of the Government of Canada that the time would be extended it would 
 be impossible to make the new Debenture issue, the Order concluded with the 
 two followiiig paragraphs, in the rtrst of which it is stated " that the suspension of 
 the works was owing to nnforeseen circumstances." 
 
 "The Minister, under these circunisUinces, and in view of the large amount of 
 
 time asked for, recommends — 
 
 " That provided that the works necessary to w.mplete the Riihvay and appurttm- 
 ces are actually in progress, an.l the Cou.pany established to the /'^fci«ff t'V'V.V/ „\l\i 
 
 ances are aciuaiiy m pn'mvnn, «..,. i..v. v.,....,.....^ ^ -^ j;,,:^!, T„fi 
 
 (Jovernor in Coimcl, that it has secured all the capital necessary ^''"y/' '; Xi;"^^^^^^ 
 e.iuip tho railway, docks, and ..ther works of the Company in a 1 ^'^^f^^T^'"^ 
 the rciuiremeiits of the Contract above mentioned on '>y »'>'?'•>;*;«'« ^^^ . I uly,l»-)4, 
 
 and that an e.\ten 
 the Government 
 
 s of the t^mtract anove meiuioneo lui .-i .nn.., ...v..... j, -^- -, 
 
 usion of time to the said date for the completion thereof is necessary, 
 at the next session of Parlia.neiit will nH-ommend to IV.rl.amont the 
 
16 
 
 k'Kislfttion n.'cwiy to oxtoml until tlit" Ist .fiily. 1H!M, tl... time within which t.. 
 complete mul H»iIwHy iind uppurti-niinceH iicconlin« to the Haiti contract." 
 
 After receiving the Act iiuthorisinir the issue of £:{:)().()()() First Pn-f.-rence 
 Debentures, the Hoard could not find anv sutticiently substantial Co-. .rnctor t(» 
 undertalte the work, and therefore, I aijain went to Caiuida in September, 1H{)2, to 
 endeavour to Hud a Canadian Contractor, as this had been su£r^ested to me by the 
 Canadian Government while in Oft.iwa in th.' pri'vious Mav. 
 
 In the above <|Uoted clauses from the Order in Council an e.xt.'usion of time is 
 promised to the Company if they secure the necessary capital on or before the 
 Ist July, 1,S!H. and in other communications, and alsi) verbally, the language held 
 to us always implied that when we w<'re ready with our capital to recommence 
 construction, the necessary time would be granted to complete the Railway. 
 
 On the 20th March, 1893, a Deputation of Share and Debenture hohlers 
 waited on the Right Hon. Sir Charles Tupper, Rart., then High C»Mnmissioner for 
 Canada, and by memorial asked for two years' time. In replying to the Deputa- 
 tion, he said :-- 
 
 "That whenever at any reasonable time the Company are in a position to show 
 they havt-ol.tan.e.l the noces.s.»y means to rariy forward tlie w-.rk and resun.e it, the 
 spirit of this Order „. o.incd will h,, carrie.l out and the time will he extende.l to such 
 a pericHl as will l)e fairly necessary to uirry out the work." 
 
 In reference to the Government of Canada, he added :— 
 
 " That they will give you whatever extension of time is found necessary to eiiahle 
 tins enterprise, involving such a large amount of moiu'y which in gon.l faith has i.ceu 
 expended, t.. be carried to successful completion, I entertain no ,loubt whatever." 
 
 A week after this, namely on the 2Sth March, IMK] I went to Paris a.id met 
 the Hon. Sir John Thompson, then I'remier of Canada, an.! Sir Charles Hibbert 
 Tupper. 1 laid before them the Memorial to the High Commis.sioner and 
 explained that as the time wa.s then insufficient to complete the Railway befor" 
 the Ist July, 1804, it was impossible for us to raise the capital by the Preference 
 Mortgage Debentures. Sir John Thompson admitted the necessity of obtaining 
 two yuars' time and re.,uested that prints uf the Memorial' to the High 
 Commissioner and of his reply should be forwarded to the St-cretary of State 
 at Ottawa. He explained that no Orders in Council could be issued until he 
 returned to Canada when he promised to pjac- the matter before the Cabinet. 
 They both expressed themselves as in entire agreement with the Hii-h 
 (Jommissioner's statements in reply to our Memorial as to extending the time. 
 
 In October, 1«93, 1 again went to Canada to endeavour to obtain the necessarv 
 extension of time. I .saw Sir John Thomp.son in Ottawa but wa« informed thar 
 the question could not be considered unti! the return of the Ministers, who were 
 then absont. 
 
 ■-«*Ji«^i4*--.*fc«k-^>ii-,»^£i.«ii«»*w:. 
 
17 
 
 nthiii wliicli t<> 
 
 On Jiiy return from Canada in Movcnibor, l«9:i, as the financial depreasion 
 had become less severe, we sncceeded in niuking a provisional arrangement with 
 Messrs. I'otvrson and !Sons, (Contractors, of Victoria-street, who agreed to send 
 Hngineers to inspect the works in the following spring, us soon as the snow was off 
 the ground. Accordingly, as early as it was possible in IH9+, Messrs. Pearson sent 
 Engineers to survey and report on the Railway preparatory to making a contract to 
 complete it. Their report was received in Jiondon early in June. A contract was ' 
 rhoreu[)on entered into and the original Debenture holders subscribed for sufHcient 
 First Preferenci^ Mortgage lionds to complete the work. When th(.'s<! arrange- 
 ments were; completed, a stuttnnent was forwarded to Sir (Jliarles Tupper, Bart., 
 the High (.^onunissioner, who was satisfied that the Company were in the position 
 required by the Order in Council of 181)2, and I forwanled the toUovving telegram 
 to Ottawa : — 
 
 "To tlie Riglit HunorHhlo Sir John Tlionipson, Ottiiwii. 
 
 " We hiivo now sociirod tho OiipitJil to coinpleto tlie Chignocto Uiiilway, and havo 
 si'ttk'd witli fiish-cliiss tirm of Contractors to conuiionce tho works iinniuiliatoly that 
 we rocoivo an oxtcnsion of tinio sutficiunt to complete them, say two years, for which I 
 now apply on behalf of (Company. 
 
 ^^ ' (Signed) A. D. I'kovand." 
 
 Sir John Thomi)s<)n replied by cable that it was then too late in the Session 
 to consider the (|uesli(>n. 
 
 Notwithstanding this, accompaniml by Messrs. Pearson's Engineer, I went to 
 Canada in July. The Session had, however, closed before my arrival, but I saw 
 Sir John Thompson and also the Hon. Mr. Kosti^r, then Finance Minister. I 
 explained that we were ready to reconunence construction as soon as legislative 
 reinstatement enabled us to raise our capital. Sir John Thomp.son advised, and 
 Mr. Foster eantirn»ed the advice, that 1 should memorialise His Excellency Lord 
 Aberdeen, ( Jovernor (General, and bef..re leaving Canada I wrote and sent to His 
 Excellencv two Memorials, one on behalf of the Hoard of Directors and the other 
 o., behalf'of the Debenture and Share holders, asking for the necessary legislation 
 e.xtending the time to enable us to complete the Railway. No reply was received 
 
 to these Memorials. 
 
 In October, lS!)-t, the Hon. Mr. Foster came to London in connection with 
 fiiiancial business of the Canadian ( J..vernment, and a Deputation of the Share and 
 Debenture holders waited on bin.. Inthe course of his reply to the ])eputation 
 
 Mr. Foster said : — 
 
 -rhe ( invernnumt. however, in this matter is hound to take in .ther considerations 
 
 I' oil - 
 
 than thoHe of strict and ahsohite legahly. aiul 1 ^;!'' ™;;.J^,,,„„„fc_t„,t the Govern 
 can go in an as.snrance as .a responsible membe '^.^'^'^^^^^ ,,ai y,y^ it ou, 
 
 ,,w,,.Y uin take this matter up as was promised Mr. i lovauU, ana we 
 
 iiid that is as far as I 
 jrn- 
 
 OIU" 
 
18 
 
 'I 
 
 act with Kro»t mvv Jul ,I,,ulo,.co ^*""'' ""'* ^"'' *"'""'» *" «'» »'-""«I to 
 
 tl.M the (Juvonu.u.nt w 11 tJk , ho L or ll .[^ I ''''''"•^'>'" "" ''""''^ "* "» 
 think. o,.nH.lontly l„ok for i.^ .nvrth .'.^ .''""" ''^'' ''•' """ >'"» '""^. ' 
 
 The fon.KoinK a.l.mts ,hat tlu- ,„..ral ..bli^nuiuu .,f .lu- novrnmont to the 
 ( ompany was very strong, that we wen- perfectly r,,ht in a.kin, for a cleci.ion a 
 
 u^ ^„;,i ^u„, . .,, "iiiLi » rne tligtj toniniissiDntir. 
 
 Had that hewa, too ,n .„ receive a D,,.u,a.i„„ ' „ „,„l,.,l ,l,at l,o ag,..,! 
 
 ,),,:,?■" '''■ '"""■' "="' '"''• ">'■ ""I"'""'"" ""■'■l> "■"' -iu.,1 o,f hi,,, 
 
 he wo„M „„,.. a l,.t,>.r ,„ ,ho Secretary „( ,h.. l-„,„,.„„,, ,t,„i„« whv h. wa, „„abU. 
 
 aVZT" I'""""""' '""' "'"" """ '•^' """"' "•-•"-'"- «^- ^■""'-- ""--'"'■■ 
 
 I, ; "■ 'I" """, '"^■'"'""« '" 8" '" Wi."ls,.r, w.„.n. Ii,.,l „„ld.„:y two 
 
 Zt '.""'" '■"■ >• '"' "■■•'■"■"»""'-. Th,. „.,„„i.,,>, letter wa, 
 
 tneretore never written, 
 
 ™2,I;""m '"■'7'- "'■':'"""'"••""'- 'his -ff.-'0.od ,h,.. (•a„ad,a„ Cabi„..t 
 • rra ,ge,„o„ts, the reply pr„„„«„l by .Mr. K„,ter w,. „„t received, b„t in May, 
 
 it!l h ""•""""''■, ■' '■"'''" '" ""»"''• "" ""^^ <■-■«„„,..„. were ,he„ re • t,, 
 
 O .a«a th 1 „„. Mr. K,.,„r. M.,„.,t..r „f Ki„a„e... ,vr„tu ,„ „,„ that ,h. <Lu,. 
 t .„u„d .t wa, „„p„s»,ble for them t„ co,.i,,er a„y B,il., ,hat «....s..i„„ i„volv-n,, 
 
 , r i; r '■ '^ '■■"" ■- '""' ""-~- -'"'■ '"■"■ •-'> ^^^ '- ^■'— - ^ 
 
 and 
 
 Ull 
 
 thci 
 
 cir future consideration." ""> '^ *-'""""'""»•'« '"«l"-'l'tiV.ly without prejudice to 
 
 As the Government decicli 
 
 189G, I went to Ottawa in J3ecei..ber, Wji 
 
 ' ' nave a short Session beginning' in .January, 
 
 iSdita^ 
 
 «M!M#«|:K,' 
 
III unliT to renew the ( 'oinpiiiiy's charter mid subsidy, it ih necertHury that two 
 Acts Hhouhl be passed by the Ciuiudiun I'arliameiit. The first w«)iild bo by a 
 Private Hill which hud to |»usm biloic the Hooond— the Subsidy liill — which would 
 be a (^overiiiiieiit iiieiisiire, cnuld lie iiitro(hioed. 
 
 The UiM renewing the t!oiiipM'iy',>^ charter was introduced, and tho second 
 reading taken «»u the !)th Maivh, lH!Mi, when it waw defeated by a majority of 1. 
 Under these cireuniHtanee.s the Hill was a^'airi put down as a (jrovurntui'ut measure 
 to be replaced on tin; Orders for seeond reading'. After another Debate tlu! 
 division on this was taken on the 2()t,li March and the Hill replaced on the Urders 
 of the House by a majority of 17. 
 
 Meuntlme the (Jovernnient had introduced tho Manitoba School Bill — a most 
 contontiou-i measure — and as it was certain that it would occupy all the rest of tho 
 time of I'arliainent, which had to rise in April, and tiiat I should be unable to do 
 anything more for the Conipauy, 1 left Ottawa early ia March and returned to 
 
 London. 
 
 After Parliament rose the Government issm.-d an Order in Council, approved 
 22nd May. (See page 4.S). This Order recites the previous Order in Council of 
 !»th July, 18!>2, and in the three paragraphs quoted below places the following 
 facts on record, namely : — 
 
 "Tho MiniHter olworves tlirtt inulor tlio prtiviHieiis of the hist piuiis^iuph of tho 
 Onler in C..uiu;il tirst iihevo cit.-l, thi- ('..iiipHiiy, l)t'fi.ro rh.- 1st ef .July, lH!t4, socuml 
 ikil tlu' c'lipitJil iiffOHSHiv t(. fully furiiisli and iM|ni|i the U.itiwiiy. Ducks, iind other 
 Works of tho ('(.nipiuiy in nil lospocts in Hcc.nhiiu.i with tho rocpuroiuonts of tho 
 contract al.ove montion.MJ, and is now iviidy JU.d dcsiiuus to procood at onuo to tiui 
 conmlotion ..f tho said lUilway. Docks, and otlu-r W.-rks, pn.vi(h>d an oxtonsi.m ot 
 tin.o within which to coniph-to tho sanio for tho purpose of tin. .^'""J'T^ ""^"''^7 \":" 
 witli tho Dopart.nont of Railways and Canals on tho 4th of Maich, IHHt., in- granted ko 
 tlioui ; such oxtonsion not to oxcoed tliroo years from tho 1st of Octoher next. 
 
 "Tho Minister further states that it appears to him that the delay which has 
 occurred since tho passage of tho Order in Council ai.ovo cited, has heon owuig to 
 ci.TUn.stances entirely l.evond the control of tho Con.pany who arc Inmo Jul.- desirous 
 of coinpletiiiL; tluir undortakini,'. 
 
 "Tho Minister, therefore, rec.nin.ends that at the next Session of PHrliamcnt the 
 Govern ,ont snl.nut the U-i.lation necessary to extend, for tho per.od n.ent.onod aho o 
 Ihrtinu witin!. which to"con>plete tho sai.l Railway and appurtenmices aceordn.g to 
 tho said Contract. " 
 
 The ab.>v.' Onler acknowledges that the- delay subse.iuent to the Order in 
 Council ..f the !tth July. 1M)2, " has been owing to circumstances entirely beyond 
 " the control of the Coinpany,' etc.. an.l is a full a.id complete recognition by the 
 Canadian Goverumenl then in otlice of the Company's claim to reinstatement. 
 
 The Canadian tieneral Klection took place in June, and on the l.,th ot August 
 following some of the new Ministers were in Ottawa and I went there to meet them. 
 
20 
 
 A Committee of the Privy Council was appointed to hear my statement of the 
 case and report to the Cabinet, and I had the honour of presenting the case of the 
 Company before ^his Committee on 2nd September, 1890. Being under the 
 impression that I shoidd obtain an answer T waited until the end of October when 
 the Government informed me that they could not state their intentions until a 
 period nearer the time of the meetintj of Parliament. 
 
 As no answer was received, a De})utation of Share and Debenture holders 
 waited on Lord Stratheona, the High Commissioner for Canada, on the 16th 
 February, last year, and pressed for a reply. Their Memorial was forwarded to 
 Ottawa. When Sir Wilfrid Laurier came to London for the Jubilee, a simil.-> 
 Deputation waited on him at ^he office of the High Commissioner on the'l.Sth July, 
 and on the following day I had another interview with Sir Wilfrid and Lord 
 Strathcon.i. The proceedings at the Deputation were fully recorded, but they 
 would occupy too much space to include in this .statement.' In brief, we pressed 
 them for an answer to our application. We had been readv from June, l.Sf)4 to 
 recommence construction and complete the work, and had' during all that time 
 been unable to obtain any definite reply from the ( Jovernment as to what thev 
 would do. We desired to be reinstated in order to complete the railway but we 
 represented that if the Government for any reason decided not to reinstate us 
 then we considered that we were entitled to be compensated, and were agreeable to 
 negotiate with them as to the amount which would be fair eompmsation and if 
 we Aided to agree a.s to this, wt- were willing to leave the question of amount to be 
 settled by arbitration. Sir Wilfrid Laurier ,)ro,nised that the .p.estion sh<M,Id be 
 taken up and dealt with immediat(,'ly on his return to Ottawa, and after his 
 return I received the following letter from hnn. 
 
 Dear Mr. Pkovank, 
 
 Ottiiwa, 28//( S,i,t. ,„'>,,; 1K!)7. 
 
 With reference t.. the (•lnj,Miect<. .|>iestiun, I l>,u„ght tl.e .u.itfer t.. the nttenti.m 
 
 VoZin^Tir i;"."'>,,"-^'":'' /••"■" '^••^i-l. Hnd it'hHs l,een referred h?^S^! 
 t onimittee of the Privy t ouiicil fcr c.ii.M.iemtiun im.l rei.uit 
 
 athrnutue .,. negative. Ihe penud .,f suspense nn.st e.uno to an end promptly. 
 
 Voins respect fid ly, 
 
 A. D. Pruvand, Ks<j., Lomhm. 
 
 (Signed) 
 
 WILFJUI) L.MUIKII. 
 
 On the 16th February last I received a letter from Lord Stratheona enclosing 
 an Order in Council approved 27th January (see page 4f),) the eonc-lusion of 
 which IS that the Sub-Committee to whon. the ..uestin!! had been r.fernd 
 " are of opinion that the scheme cannot be regarded as one of .si.ch ,mblic"utility 
 
21 
 
 "as would warrant an application to be .nadc to Parliament for a renewal of the 
 '• lapsed subsidy." 
 
 Nothing wa.T said in the Order as to our claim for compensation nor has 
 anything been received from Ottawa on this point up to the present time. 
 
 This brings the account of the negotiations down to a very late date. There 
 was a very large correspondence carried on by myself, the details of which it is 
 unnecessary to set out, as the foregoing substantially covers all matters of 
 importance. It will be seen that since May, 1892, a period of almost six years, 
 we have been unceasing in our endeavours to rescue the Company from the 
 position in which it was placed by the legislative Act of the Canadian Parliament 
 and the consequent default of the Contractors. It is a long and melancholy 
 account, largely made up of Ministerial expressions of sympathy, of Ministerial 
 promises on behalf of the Canadian Government, and of postponements to consider 
 our Memorials, for oidy a few of which any reasons were given. 
 
 The following was the reply which I sent to Sir Wilfrid Laurier in answer to 
 the Order in Council received on the loth February. I hope you will carefully 
 read this letter, as it shows the technicalities with which the Canadian Government 
 have tried to make out an apparent case against the Company, and how 
 these are supplemented by th'^ oinissiou of imiDrtaiit facts, by giving undue 
 importance to others, and by allegations which we, at least, cannot verify. 
 
 Loxnox, '2{)th Mavh, 1898. 
 
 To the J{i;/lit IfoiiornUr 
 
 Sill Wd.Fiui) Laiuikr, K.C.B., 
 
 Priiae Minlshr ti.hd President of the 
 Pvivij Council, (Jttawa, Do inula. 
 
 CllIGNECTO MARINE TRANSPOllT RAILWAY 
 COMPANY. LIMITED. 
 
 Sir. 
 
 On February Kith I received a note from L(>rd Strathcona enclosing a 
 ..opv of an Extract fron. a Report of the Honorable the Privy Council, which Lord 
 Strathcona informed MKM-ontained the decision of the Government m regard to 
 the application s,ibn.itt.d on behalf .t .he Chignecto Murine Transport Radway 
 Company for a renewal of its Charter and its Subsidy. 
 
 In a l-tr..r to l..rd Strathcona dat.'d F.h.uarv 17.lv which was forwarded to 
 you, and also in a !.t...r dated February 25th whieh I sent to you through Lord 
 
9-> 
 
 Strathcoiui, I drew attention to the fact that when wo had the honour of meeting 
 you in London last summer, you informed the deputation of investors and myself 
 that there might be difficulties in the way of obtaining the consent of Parliament 
 to the reinstatement of the Company, and T then said that if the Cabinet decided 
 not to recommend Parliament to reinstate the Company the investors would be 
 willingtoconsidertermsofcompensation, and the substantial question I put iu 
 the two letters above referred to was whether the Government would either come 
 to some agreement with us as to the amount of compensation, or failing 
 agreement, would consent to have the questi .u of compensation referred to at. 
 arbitratioii in whicii the Company's e.|uitable rights should be fully taken int.. 
 consideration. 
 
 I expected that the Sub-Committee when considering reinstatement would 
 also have considered these points, and that before this we should have had a reply 
 to the letters above referred to; but Mr. Ferguson, q.C, of Ottawa, has recently 
 wired that an answer would be received in about a fortnight. On account of this 
 postponement I take the opportunity of sending a brief reply to the Report of the 
 Sub-Committee which will arrive in Ottawa before the fortnight elapses. 
 
 The Report of the Sub-Committee consists of seven clauses It will be 
 convenient to take the first three by themselves .is they relate to the ori-rinal Acts 
 incorporating and subsidising the Company. " 
 
 -'First. It appears that in the year 1882 u .suUsi.ly ..f .SloO.UOO ,i year f,.r i 
 pruviUeil It was conii.leted by the 1st of .July, 188«». lauwa), 
 
 th.. .''f*;'^*"''^- ,I".l^/j'\f""'»al itidenturo wan entered into l.etween the Otticers of 
 
 ,4ur ,',:,' 1,,;:;, ,; r , 'X ,«'r'if,,:'';;;'''i ■■;;' '".r:' • ,?"■;""'■, "-r ' ••■• 
 
 Ih,. „b«vo 1, an i„co,„plc.te tt,;co„„l of lh.3 ..rigin „| tl,, C,„„,,,u,y ,u,.l ..( wl,., 
 vva,, do„„ bj- the G„ve™,„e„t and hul,a„„..,„, 1 ,„e,„u„„,,i .|,.. |.,.i,„.i|,ai ,;>cu i„ 
 he Statement of the Co,npa„j'« case, which I l.aj the h„„..„r .,1 nlaei,,,- b.-for,. . 
 U,„,n,ttee „i the Privy Uuuneii on the -i,,,! .Sep.e.nber, l.ihi, a,.! ..ve„ at ,he ri-k 
 of,to>,e,„e extent, repeating what I then «u,l i, i. ,,:,...ar. ,!,,„ I .houl.l ref.r 
 to the very inipertant on,i»sio.,» Iroin th. above eh,„„, i„ ih,.' U,.p„rt. 
 
23 
 
 of meeting 
 
 atui mjselt 
 
 Parliament 
 
 inet decidorl 
 
 rs would be 
 
 >i) I put ill 
 
 either come 
 
 or tailing 
 
 erred to ati 
 
 taken into 
 
 nient would 
 liad a reply 
 las recently 
 unt of this 
 b'port of the 
 
 is. 
 
 It Will be 
 riginal Acts 
 
 the Cliignocti* 
 
 a year for .i 
 this niilw.iy, 
 
 II! OtHcors of 
 whurel)y thi' 
 
 granted by 
 jtv thi) roji.l 
 isioii of two 
 vorniiiuut of 
 
 nd of what 
 pul facts ill 
 ig before a 
 at the risi; 
 bouid reft r 
 
 The first two Acts to incorporate and subsidise the Company were passed in 
 Mav, 1882. The preambles state that they were passed : — 
 
 "in consideration of the great advuntji^e which would acciie to the Maritime Provinces 
 and the Inter-coh)nial trade of Canada." 
 
 from carrying out the Railway, which would be : — 
 
 " especially conducive to the development of the commercial interests and coastin<r 
 trade of tlie Maritime Provinces, Arc." 
 
 In 1883 the Act of Incorporation was amended in regard to the Capital 
 Stock and Mortgage Bonds which were to be issued. The Canadian Incorporators 
 placed these offers of the Government before Finance houses in London and 
 Sir Benja.nin Baker, the eminent engineer, and from them they received the 
 opinion that the Railway could not be undertaken on the terms. They returned 
 to Canada, and in 1880 an Amending Subsidy Act was passed, altering the terms 
 and making a Contract with the Incorporators to carry out the work. 
 
 Further examinations and surveys were made for the Incorporators by 
 Sir Benjamin Baker, who went twice to Canada for this purpose. On this account 
 an extension of time for one year was necessary in 1888. and in Section 3 of the 
 Act of that year granting this, the Subsidy provisions were again amended to 
 make them acceptable to investors. 
 
 Therefore the Canadian Government passed two original Acts m 1882, and 
 amending Acts in 18,S3, in 1886, and in 18H8. The value and importance to 
 Canada of the enterprise was therefore affirmed and reaffirmed by the Government 
 and Parliament, and the Subsidy and conditions were repeatedly altered until the 
 capital was obtained from British investors. 
 
 It was openlv stated in Parliament by Ministers and ex-Mmisters on both 
 sides of the House; that the object of passing the Acts was to obtain the capital 
 in London to build the Railway. This was expressly referred to by the Hon. 
 Alexander NLaeken.ie. the Leader of the Liberal Opposition of that day, who on 
 11th May, 18S2, when ihe fird Act was being considered, said that:- 
 
 .. ,,.. (Mr. Ke.ohum) will no doul.t obtain the n.oucy in [the English market with 
 the guarantee of the (."anadian (iovernmont. 
 
 ,V„d on tlu. IDth A,nil, IMSS. when the l.t Act given to the Ca^dian 
 Inc,.r,K,rat„rs wa» boforo the Hou.o, Si,- Chari,. Tupper, thou bn,anco Jl.n.tev, 
 
 could obt.iin these advantages ... any othei w,i>. 
 
24 
 
 Therefore, from 1882 to 1888, the Government and Parliament pr,>,„oted thi. 
 egislation with full knowledge that the Incorporators would not earrv out the 
 Contract made with then, to build the Ilailway which forn.s the Schecful. to the 
 Act of 1880, and that their action a.s Incorporator, was .nerely .lirected to obtainin^r 
 .uch measures fron. Par!ia,ne>nt as would n.ake it possible t.> raise the necessary 
 capital 111 Loniloii. ■' 
 
 The. names of the 21 original Incorporators are Riven in the Hrst Act of 1,S,S-. 
 1 hey were all Canadians with the exception of K.lwin ('lark, the inventor of the 
 mach,ner.v nsed in the Lifting Dock. Many of then, were well-known rnblic men 
 and they acted as Incorporators from motives of pnblic spirit. Thev had no 
 hnancial interest in the work either belore it was capitalised or afterwards Thev 
 
 were not .promoters,- They niad. profit in any w.ay. Some of them were out 
 
 of pocket for expenses. The real promoter, were the Canadian (iovertiinent ami 
 Farhament, and they were the only promoters whom we investors ever knew The 
 Incorporators in the Act were to „s tnerely a part of the I'a.liamentary niachinerv 
 of Canada to egalise an enterprise of the kind. The only Incorporator who was 
 
 connected wtth the Company after it was brought ont in London wis Mr Ketchnin. 
 
 the Canadian Kngmeer, who acted as Kesiden, Kngmeer to the Companv. He 
 ™ the original projectur of the Railway , was largely out of pocket for 
 
 prclnmnary expenses, only .a par, of which was ever repaid tohitn 
 
 Ihe thud clause cover, tlie year 18,S,S. IJnt nothing is said about th.. 
 
 a teration of t e General I.t„way law made in that year by iti.an.ent, I 1 J^, 
 
 change was the direct can.se of all the ditKc.lties which afterwards befell the 
 
 Company, I am entitled to draw attention to it. 
 
 bv ,het,r""r'^"p"' °""' """"'""" "'* ""• ' '""'P'"'-^' "■"—■-1 i" March, 18,S!), 
 !>otof h "^''-^''rrr """"" ""^ '''■"'■"""^■^' «"-- At that t„„e .he 
 
 2 ic of Bonds and Debentnre, trntll one-hltl, of the total cost of the work had been 
 a uaily expended on tt. We were therefore debarre.d from issuing our Debenture 
 
 , n I ■ r: ; ;'"V"''"">' I-'P«'t. 1 >.uve dealt with this inLte; 
 
 "ferle t , It ' ,1 T "'''"^'■■■"-"-'"-"' «'"'--"'. and the omissi. fall 
 
 n hCof h "' "'^"'•'"■".;'' ">c Sub-Committee is signiheant. We knew 
 
 ompd led o coinply wi.l, „. we were lorced to postpone the issue of the DeU-nture^ 
 panic ,.h,ch nlttmately over s tins country, as well a. all the leading countries 
 
 it 
 
25 
 
 of the world, was already threatening the money market This sub-section was 
 the direct cause of our being imable to complete the Railway, and the Canadian 
 Government itself, having found that it prevented the execution of public works 
 in Canada, was compelled to repeal it in 1892. I respectfidly submit that the 
 Canadian Government must be held responsible for the existence of this law which 
 prevented the Company from obtaining the whole of thecrpital required at a time 
 when this could have been found, and consuiiuently prevented the completion of 
 the Railway within the contract time. 
 
 Therefore with due submission I contend that the first three paragraphs of the 
 Report are incomplete in their account of what took place, inasnmch as they omit 
 all reference to the position which the Canadian Governnuait and Pn,iliament took 
 up as promoters of the enterprise, and to the alteration made in the General 
 Railway Act of I.S.SS. 
 
 Claiises 4 and 5 of the Report to the Privy Council are as follows:— 
 
 " Fourth Tn l-SiU a still further extension to .Inly 1st, IrtiKJ, was applied for and 
 ^'ranted l.y Parliament to the Company, and penalties incurred for delays amountmg to 
 ):<t>().(M)() a year remitted. 
 
 " Fifth Snhsofiuent to those extensions the Company entered into negotiations 
 with the late(;overnment in the year IS'.L' for the purpose of procunnptdl further 
 extensions, hut the conditions on which the then (Jovernment m thmr rder m Com ci 
 oim2 aureed to recon.men.l a further extension, to w.t, tliat the Company should 
 show that"they had placed then.selves in such a tinancial position as to enable them 
 :: Poce^d Ju the \vork, and should also show that actual progre^ X (WrTi^t 
 were not complied with durmg l-SU:}. nor was any in nnation given to the ^' '^'^iJ"»;;"t 
 that the Company was able to comply with the said cmd.t.ons until a period of two 
 years or thereabouts had elapsed from the i-assmg ot the sai.l Order. 
 
 The fourth clause of the above refers to what wa.s the tirs-. application to 
 Parlia.uent bv the inv..stors as distinct from the original Incorporators, and it is 
 these investors who really constitute the Company. AH previous applications 
 were on behalf of the Canadia.i Incorporators who had no connection whatever 
 with the enterprise except to bring it by the aid of Parlia.nent into a shape 
 suthcietitly attractive to the British uivestor to enable the capital to be raised in 
 
 London. ... . ^ , ,1 •„„ 
 
 KurtlK.,-, llK. Co,u,„itto,. h.r., take advanlage «1 a fact wh-A, „,,stead ot bung 
 „s..,l a,a„,.t ,„, .lu,uUl I ve„t„ro to »a,, . ntitlo u. to geuerou, treatmout. W he„ 
 M,o Urilwav >v.s brofght .0 Loudo,, wc n.igbt havo rogistored a .,cv,- Con.pa„y note 
 bl e sst, ,g the »l,atc.,a„d tt would th.., have b.,o„ n„po.tb.o to »ay ove„ to a 
 
 :l,ioai so,to-a„d that i.s tboo,,!, »e„«o to wht.h it ,. ""^'f^^^^^TZ 
 
 i> r , K au.-.. is'H • but instead ot doing so, we 
 
 n.-i(l.. 'inv annlication to Parliament hetoie i^'i , u^''' ° 
 
 :;:td 1 'o' l.,..., >„ tl.. C. l.a„ cover out by can,.„g out tbe work a. 
 
 a Catmdian Company operating under Caua.uan huv. 
 
2() 
 
 On behalf ofthe investors I therefore beg to protest a^^rainst the refusal of 
 our request for reinstatement being supported ou mere technical grounds Until 
 we found the capital, the Company existed only in a paper and Parliamentary 
 sense, and what was done bef..re March. iNSf). was not d„no .nther by or for 
 those who subscribed the capital of the Company.' 
 
 It is an undeniable fact that extensions of t'ime to cmplete Public Works are 
 applied for and granted as a matter of course. In answer to en.p.i.ies in Ottawa 
 I was unable to tin.l that the Canadian Government had ever refu.sed to any bodv 
 of investors who had spent their money, renewals <>f ti.ne to complete work^s 
 which they had undertaken to carry out. In the J)ebate ,.u the 26th of March 
 189G, in the House, the Ho... Mr. Ives, formerly Minister of Trade and Commerce' 
 and therefore well qualified to speak on the subject, said :- 
 
 From this I presume that our treatment is without precedent in Canadian 
 1 arhamentary annals. 
 
 Besides referring to the applications of the Con.panv for c.xt.nsious of time 
 respecting which I enter the above protest, the fifth clause of the Report refers 
 
 s'th :Vl ''""'■^' ''' ''''' ""' "'^^^'"^ ^'^^''^ P'acesubsequentlv.andit 
 
 IS there stated that no progress had been made :- 
 
 Fron. the above it n.ight b,. luierred that we had not been n.ovu.g in the 
 matter from the tune of the i.s.sue of the Order in Council for about two vears 
 afterwards. Ihis wa« not the case The Order in Council referred to m ( :iuuse o 
 
 was granted m Jidv, 1,S!)2. Diirin-r ileit m.,,) .1, «■ n • , ! . 
 
 •' ■ J^""",h "'-it an.l the following years the financial 
 
 collap..c ^^as so complete that it was impossible to obtain the means to carry out 
 
 any enterprise of this character. On the "'Oth Mireh is-.-i .. t ^ .• ' • i 
 ,,„ c;^ <iL , ,p , -^'" -^^'^rcli, J. S.>.{. a deputation waited 
 on b,r tha,U.s l„pp,r. the,, ,he H.^h (;„„„„ia t ,„,■ ra„a,l.. „„1, tho object 
 
 to la',"'' r'"'""L "'"" "'" '■'"""'"" ''-—"■ "hieh, however, we tailed 
 
 Sd'a,: T ':';' "' "" ^-'■"•^-'"ep chad to » e extent 
 
 ub. nied, a„i hna„c,u. eo„fide„ce wan ret„r„i„,,, ,ve «uecee,led i„ „,ak„,. a 
 
 Contract with Mes.sis Pearson -iud v » r • ^ 'ai^n.^ u 
 
 -MS. Larson and .Son.s, of Loinion, the Contractors, to complete 
 
 - ,,^--Ai*.d-.]t, 
 
27 
 
 K' refusal of 
 
 ds. Until 
 
 •liarnentary 
 
 by or for 
 
 Works are. 
 in Ottawa, 
 any body 
 leto woiks 
 
 of March, 
 Commerce, 
 
 an mstmicu 
 ifive known 
 nuwiil.s hiivtj 
 
 (^uiadian 
 
 IS of time, 
 [)ort refers 
 tly, and it 
 
 iiy WHS hMu 
 
 ■ithoiit.s Iijul 
 
 M^ ill tile 
 two years 
 Clause ') 
 tinaufial 
 •arry out 
 >ii waited 
 he object 
 we failed 
 JS8 of the 
 le extent 
 lakiiig a 
 complete 
 
 the Railway, and in the spring of 1<S!)4, as soon as the snow was off the groimd, 
 they sent engineers to survey and report on the condition of the works. In 
 considering what the Company did during thest; two years, it must not be 
 forgotten that, in Canada, during nearly half ot the year no work at all can 
 
 be done. 
 
 Immediately on the return of Messrs, Pearson's representatives, financial 
 arrangements were made to complete the Railway, and these arrangements proved 
 to be entirely satisfactory to the High Commissioner in London, as required by 
 the Order in Council ; and I telegraphed totheRt. Hon. Sir John Thoiiipson, then 
 Piemier, that we had secured the capital, and received a telegram in reply that it 
 was then too late to pass the necessary legislation. Nevertheless, I went to Canada 
 and saw the Premier and also the Hon. Mr. Foster, Finance Minister, with a view 
 to the reinstatement of the Company in the next Session of I'arliament. Therefore, 
 during the time referred to in C^lause 5, we were doing everything possible to 
 enable the work to be recommenced and completed. 
 
 The years 1892 and IHO.'J covered a period of financial collapse, not only m 
 Lond.,n, but throughout the whole world, during which it was («xtiemely difficult 
 to raise capital for any purpose whatever. These financial difiiculties existed in 
 reference to mat.y large public works, besides the Chignecto Ship Railway, which 
 were being carried on by Contracto.s for For-ign Governments, notably for the 
 Argentine Republic ; bu"t in )h> instance <lid any Government take advantage ot 
 these circumstances. Several Contractors and Companies-from causes which I 
 need not enter upon-found themselves during these years .mable to fulfil their 
 obligatiotis. but the Argentine Government has since settled uith them at a cost 
 of several millions sterling, and has waived defaults which legally it nught have 
 taken advantage of Ma.,y of our investors were also interested in the enterprises 
 referred to ab<,ve. and we hope they will be ultimately justified in believing tnat 
 the treat,n<mt tiiev have experienced from South American Republics will be at 
 least equalled by that which the Ca.iadian Covernment will accord to tliem. 
 
 The following are the remaining Clauses and the conclusion ot the Report :- 
 
 '•Sixth. It further appears that a pn.pusiti..n to '^J-^ J-^^^;;^;;^^!;,,;:^,^';:; 
 C..nM.any,.dti..n.,..suppo..li>yt..eU^^^^ 
 IS'.m; oil tlio oxprt'HS ground that a lenewiu or tut tii.uiLi „ 
 tlio subsiily. 
 
 nui.st ultunately 1)0 tleoiileil. 
 
28 
 
 The sixth clans, and th. Hrst paracrrapli of the seventh clause of tho R.port 
 deal uuh the Hill to ,enew the Clmrt..r of the Con.pany which .as before t ho 
 House in ISI.G. and with the Order in (\>uncil of the 22nd Mav of the san.o year 
 agreen,^ to recommend Parlian,ent to reinstate the Con.pam- and revive its 
 M u ■ ,^'^''''''' '' "^^^^'^'t^^ the defeat of the Bill in the House on the !)th 
 ^.larch, and to the Order in Council having been subse.uentiv pass.d in -direct 
 dehance ot the decision arrived at by Parliament." 
 
 I resi^eetfuUy subndt that the facts do not justifv the description given to 
 them in Clauses 6 and 7. In the Division on the liill, there were .U for and 
 
 Z7rT\ \'~l "'^J'""^' ''' ' ^"'^'- '^^^^' *his was a snap division is, 1 subnut 
 stabhshed by the fact-not mentioned in the Report of the Conunittee-tha, a 
 ^;w days later, namely on March 2Gth, the Hon. Mr. Mclnen.ey moved that the 
 Bill be replaced on the Orders of th.. House for a .second reading, and this was 
 earned by hO to G;^-a majority .,f 17. The Bill «'as therefore a^ain before the 
 House, and tie Order in Council of 22nd May had no connection with, nor was it 
 in dehance of, ,he decision defeating the Bid, because by the reinstatement of the 
 t^ill that decisK.n was practically cancelled. The Order in Council was in fact an 
 agreement to reeommend that the BUI should be pa.s,se,l by Parlianunt, and the 
 Subsidy revived in as full a (iovernnn-nt sense as if the hrst J^ivision on the BUI 
 nad never taken place. 
 
 I re.spe,,.ti,,lly »„b,„it that what ,„ay b. r,.as„„ably .Icsc-ibcl as an accidental 
 
 d,v,»,o„ take,, w„h„ut ,„uch prev.ous dci.bcrat, this was on the !Hh .Ma,vl,, 
 
 and whu-h Ka«. on y a n,aj„„,y ,„ 1. cannut bo considered as a dolibcaf 
 
 the House itscU did not consider it to be snch. 
 
 n^ JL i/<^ih 
 
29 
 
 Thorcfore, I contend that the OhUt in Comioil of May, l.SOG, should be 
 regarded as binding upon the present Government, seeing that the foregoing facts 
 relating to the Order, and to the two Divisions in the Hoine on the Bill, remove 
 all reasons for holding the Oovernnient free from res|)onsibility, as the Committee, 
 in the first paragraph of the seventh clanse, suggest that thoy should be. 
 
 The second paragraph of the seventh clause states that so far from the 
 C'ompanv having been rigorously dealt with, it has received repeated exteiiMons of 
 time, and bus failed to comply with the stipulations agreed to in suttii-ient time to 
 permit of legislation in its favour. 
 
 The last part of the paragraph above tpioted refers to the Company not 
 having been able to obtain the capital early enough in IS!)4. to [)ermit of legislation 
 in that ses.sion. This admits that if we had succeeded in arranging tor the capital 
 soon en.)ugh. the Company ivould have been reinstated in that year. B it the 
 Clommittee surely will not contend that, because we wi-re then too late owing to 
 circumstances entirely beyond our control, we are therefore to be debarred from all 
 further favourable consideration. This would be to argue— not. that we were 
 e.piitably disentitled to relief on the merits— but because certain financial arrange- 
 ments could not be settled by a particular date that the Company ought alone to 
 be the sutlerer from the unav.idable delay. Neither the Government, nor any 
 interest or person in Canada, experienced loss or even prejudice from our being 
 unable for nearly two years after the gra.uing of the Crd.T in Council of 1892, to 
 obtain the rapital to complete the work. Since .June. l,S!»Ka period ot nearly four 
 vears includinir two sessions with a Conservative Administration in power and two 
 sessions with a Liberal Adndnistration, we have been waiting for a reply to our 
 reou- t for time to c.mplete the work. In cminum tairnes,s our petition tor relief 
 sh'uU .rcMudiced on account of delays before June, WM, ^vhich we were 
 
 nowev.es , vent, nor for delavs since that date for which the Governments ot 
 
 lotirpurt. .re entirely responsible, while we alone are the sufferers from 
 
 their inaction. , , , . , 
 
 In ,h.. thinl ,..m.,a,,h .t th.. .ov,mtl, clause it i. statcui that «t,ong pro.c,t. 
 were ,„a,le du,i,,, th,: »„v,.,al ,li,cussi„nH. an.l that the, Oo,npa„y wa» ■warned 
 that »noh n,.,,ln..ti,M,H-.vterrh,. ,„ r s.ate,nent-w„nhl not be tavon,.tbl> 
 
 '"''"'thav,. .litlicnllv in nn.letstan.lins what i. .neant by the warnings refe, red to 
 
 naw. > i,,,„nare n«'d bv some liononrable niombers 
 
 nn ess tliey are to be lak.n as the l,iii<{nagi ■ ,^ , , ,, ,.„„„,„,. ,,.,, 
 
 . 1 • ^ III tli'ir Di'bMtc tlu! i^ompanv \>ti>> 
 
 personal to tlie Con.pany, ..<:, the investors. In lli.ir U.bat , n 
 
 L/Oliipau} .-1 eieiiii ^^.l■■ "' "- -' -• . - 
 
30 
 
 was shown except that we sou^'ht roinHtatcment, and to be allowed 
 
 >wn money in completing' the Hjulway. Trust 
 
 to expend our 
 
 Parliament of Canada, we hat! 
 
 ing in the Uovcrnment and 
 
 the work which had been promoted bv themscl 
 
 idrcady expend<'d nearly £750,000 
 
 in good faith on 
 
 ves, and with which no person on this 
 
 side of the Atlantic was in any way connected until, relyinp upon (Canadian Acts, 
 the capital was furnished. I could .piote the words of many Senators and 
 Members who have stated that our claim is one which the (^a.iadian Government 
 cannot honourably disregard. 
 
 The Hon. Mr. FostiT, Kinunee Mini.ster in the last O. -rnment, told the 
 Deputation that waited ou him in London on the :Ust October, 1H94:— 
 
 2l:i\,^,SZ:' Z ""'"^•"•"^'"" "" ^'- «--"^'^ "^ -'-t .nim.t 1,0 called 
 
 Several Members of the late Government have eontirmed this statement, an<^ 
 no .Alember will express dissent from these views. Indeed in the d>'bat.' on' the 
 yth March, when the Bill was defeated by a majority of 1, even thf Hon. Mr. 
 Welsh, an opponent of the scheme (and who, I was informed, called the divisio.i), 
 referred to the interviews he had had with my.self, in which he admitte.l the moral 
 obligation of the Government to the Co.npany. and used these words :— 
 
 ohligatUn!" ^ "*'''''''*^ '"'" ^" "''^'^ ^" '''" Government un the ground ..f moral 
 And on a former occasion he told the House that :— 
 
 see it adolS "''''' ""^ ''"»«'"™'^1« ^^'^y "f g«"ing out of the Hci.eme I .sl.uuM like t.. 
 
 The last paragraph of Chiuse 7 refers to the testimony of experts and 
 practical men to the etfVct that it is no longer po.ssible to believe that th- 
 enterprise can become a commercial success. 
 
 I have to say with regard to this that no such exp.Tt evidence has ever been 
 submitte.1 to the Company. Or.e statement was repeate.llv made in reference to 
 the difficulties of navigating the Bay of F.uuly. but this wa^; completely disprove.! 
 by Capt. Douglas's report made a year or two ag<. for th.,. Government, sh<.winir 
 that It was an easily navigated water. And I have i„ ,ny possession a large 
 number <,t letters from Shipowners, Shipm.-i.sters, and Shippers of produce; also 
 from firms engaged in the Coal, Lumber, Jiuilding Stone and Gypsum Tra<ies 
 which are favourable to the Railway. 
 
 But I respectfully protest against any question of possible future commercial 
 success being advanced as a reason why the Company should n.,t now be 
 
 
5il 
 
 reinstate.!. If it fail to be a mcohaiiical success wo shall never receive any 
 money whatever tr,),n the (Canadian aovc-riinu-nt. as this is a risk which we 
 ftcc'pted with the Suhsi.ly ; and if it be not a conunercial success, the Company 
 will have to abide by thi- result. 
 
 I have to atUl that it is the first time in our experience that any (.govern- 
 ment has refused to a b.xiy of investors time to complete a public w..rk after 
 thov had expended, on the faith of statutory engaK'ements, more than two-thirds 
 of i'ts total cost. In our case the ^M-i.-vanc.. is a:^.ravated by the tact that thr 
 dithculties of the Company are du. to the before-me..tioned sub-sectmn p a.-ed 
 i„ tho C.-neral Railwav Act of IHS8. which I'arlia.nent was subseciueatly obliRoa 
 to repeal, but not until th.' .nischiof had. in our case, been done. 
 
 Therefore, in conclusion, on behalf of the investors m the Company I 
 respectfully beg to ask that the llcport of the Sub-Committee ot the Honorable 
 the Pnvy Council be referred back to the Sub-Committee for turther consuieration 
 on the grounds herein stated. 
 
 I am. Sir, 
 
 Your most Obedient Servant. 
 
 (Signed) A. ]). PROVAND. 
 
 itl <if inorni 
 
 uultl like to 
 
 • 1 f rufavv. T h-ive received the following acknow- 
 Since this letter arrived at Ottawa I luuc rn.tiv 
 
 lodgment from Sir Wilfri.l Laurier :- 
 
 ,',,,,,- tlu.hnnortu 1,0. .loHf Mr. IVova.Kl, 
 
 ' VmiiK very smcerelj, 
 
 (Si,M.oa) WlLFllTl) L.vnUER. 
 
 A. L). I'lov.iiitl, Ksi|., Ml*. 
 
 , . w, ,1- .,r the iei:ort to tho Sub-Committee 
 As I was af^-aid that the reternng la-K o^ . • ^^^^^^ ^^^ 
 
 ,ni,ht be made a reason f,.r further deU., I .uUh.... I 
 
 Ottawa : 
 
82 
 
 2, WiiiTKKAr.L CoriiT, 
 
 VVkstminstkh, London, 
 
 Moy 2nd, 18!)8. 
 
 To the Uhjln IfovomUe, 
 
 Sir Wir.Kiiii) Lacuiku, K.C.B. 
 
 Prime MiniHtfr ,ind I'rPMident of the. Prlvi/ Conncil, 
 OUdWii, Co)hid<i. 
 
 CHIONECTO SITTP RAILWAY. 
 
 Deau Sir Wn.Fuii) Lai'iher, 
 
 I have t.> thank you for your letter of the 18th inst. received a few .lays ago 
 H. which you >ofonu m. that you will ask the Suh-Connnitteeof the Privy ci.uncil 
 to whom the question has been referred, to recor.sider th. Report which th.y nmde 
 on the subject in January last. ^ 
 
 May I again address you in regard to our ffreat anxietv for an imm-diate 
 answer respecting the reinstate.nent of the Couipany. or failing that as to what the 
 Government will do in reference to agreeing on an amount to be pai.l to us .. 
 eompensation, or to leaving the settlement of that amount to arbitration > 
 
 On this point let me <lraw your attention to the fact that it was on the '>ud 
 September. 1806. that I had the honor of placing the case for the (A.npanv e 
 
 the CM r 1 1 '. ■' '^'""^•' ^'^^' '"'-' ^'^''"'"^^'^^ ^'' --'- i^ -' ' --port to 
 the Cabinet I ha,l reason to expect I should then receive an answer and for thi. 
 
 object waited m Ottawa for fully two months, but had to leave without obtaining 
 any n.,>ly. Twenty months have elapsed since then and meantime our Works at 
 Ohignecto are deteriorating and we are subjected to a continuous heaw exp.nso 
 for maintenance, taxation, and in other ways. Whil.- th. Railway 'is in an 
 
 necessary to complete it. -^ 
 «o,t„'" " "V""^" •■""■ ';"■"=""'■"' '"" "-• Mi"i»'-.TS will .separate and ft.rth.r 
 let us have an a„.«er to our appeal with as liitl,. ,|„|ay as possible. 
 
 
 oamclj. that U .i ,s „,„.de<l to repudiate all moral a., distinct Iro.n le.al ohli.-a- 
 
 
tiouM to tho (yompaiiy, thou it is nurely i»>t tiocpsHnry to poMtpono wvcn for a Hinglo 
 hour K'^'^"K *""'^ **" answor. Time \v(»iil<l only l>«' rtvpiirt'd, if you ititt'n<lf'<l to 
 rfOoi?ni(*f our claiin to (Miuitablf trcatuietit, in which caao there would no doubt be 
 detaiirt to arrange. 
 
 Miiv I further v«'nturn to remind you of atiothcir foature in the case to which I 
 think I alluded when I Haw you in London ? When the Oompany was brou^'ht out 
 in March, lHS!».the security of the ('anadian (Joveriiinent was so highly thou^'ht of 
 that a considerable part of the Shares, an<l afterwards of the Debentures, were 
 taken in Hanking,' circles an<l by Finance houses to h.»ld as investments. Thoy 
 also recommended their clients to invi'st. These houses still hold the securities 
 they origimilly subscribed for. I have had communications from some of them 
 iiKJicatin^' their position. Tiiey considei- that liaving recommended thi^se securities 
 to their friends they are bound to use every i^tfort to protect their interests and to 
 guard against any aimilar occurrences in the future. This movement will be 
 entirely apart from tny negotiations on behalf of the general body of investors. 
 
 I have sent a copy of this letter to Sir CMiarles Tupper and also to the 
 Honorable Mr. Foster. 
 
 I have the honor to be, 
 
 Dear Sir Wilfrid Laurier, 
 
 Yours very sincerely, 
 
 (Signed) A. D. PRUVAND. 
 
34 
 
 WHAT 18 SAID IN CANADA ABOUT THK RAILWAY. 
 
 I have already n-twrvd to my oin^ht visits to Ottawa. I (numl that while the 
 Minister-^ knew the history of the enterprise that many Members of Parliament 
 were unaccniainted with the facts. This was also true of the IVe.ss. 
 
 Shortly before my first visit there had been sotne political and Hnancial 
 scandals in connection with carrying out public works for which the Government 
 had paid large .sums, and the Chignecto Railway was usuallv spok.'u of bv 
 members of the party then in opposition as if it was business of a similar kind 
 At the General Election of INDO, the Chignecto Railway was fre.p.ently 
 referred to in a manner implying that the Governmenr had foumi money for the 
 scheme. So often was this brought to my notice that I Jiad to issfte a circular 
 letter to Members and Senators on the subject (see page 50). So far from their 
 having fnmd any money for the Company, the truth is that the Canadian 
 Government has received from the Company nearly SlOO.OOO in duties on the 
 machinery imported for the Railway. 
 
 Party politics are discussed in Canada with a virulence far beyond anything 
 we know of in this country. No statement is consi.lered too strong to apply to 
 opponents or to anything with which they are or have been connected, and the 
 ('hignecto Railway Charter wa< made a party .piestion. 
 
 I sent copies ot the statement of the Company's av^r, which I presented to 
 the (Inv.rnment, to all the Members and Senators.\tnd in everv instance whi-re I 
 afterwards had the opportunity of talking abm.t th.- Railway they admitted they 
 had been unaware of the iaets until they read the Statenient. Kditors al.so told 
 me that they tirst learnt th.ni from the Statement, and in m..n. than m.e instance 
 I had to call their attention to gross nu.sstatements of tact thev had made about 
 the Company. Nothing that eould pos.sibly be said against us was on.itted by 
 those who desired to make i)arty cai)ital out of the Company s position. 
 
 In the two d..l,ates in the lf(,use whi.h took plan- in LsOO, the language u.sed 
 towards us will ron... a> a surprise not only to you. the Share and J)el)enture 
 holders but also tw our invr.suMg ciasses generilly. WJi-.n Sir Wilfrid Laurier 
 was here last sum.ner the.... was n^f.-rn-rl to. and J f.„md it nece.s.sarv to write to Sir 
 Donald SnulhdH.Nv Lord Strathcona.) on the subj.,.et. 1 leave ,.ut parts of th.- 
 letters which it i^ unnoces.sary to reproduce. 
 
 .■^^jim ••^sM^i^Jit' jS£kv9i ±s»ixmt.M 
 
lat while the 
 Parliatnenr. 
 
 1(1 finaiieial 
 Grovermneiit 
 i>keii of bv 
 imilar kind 
 
 t'n!(jueiitly 
 niey for the 
 
 a circular 
 ■ from their 
 B Cauailiun 
 Lies on the 
 
 d aiiythinsr 
 to apply to 
 '<!, and the 
 
 'esontod to 
 ice where I 
 lit ted they 
 i also told 
 le instance 
 lude about 
 •niitted by 
 
 piat,'t,' used 
 J)el)fiiture 
 d Laurier 
 rite to Sir 
 
 !-!h of Ihr 
 
 2, Whitehall Court, 
 
 WeSI MINSTER, LOXDON, 
 
 July imh, 1897. 
 
 To ike Hon. 
 
 Siu Donald A. Smith, G.C.M.G. 
 
 H'Kjk Coiiunissio7ier for dinnda, 
 17, Victoria Street, S. W. 
 
 CHIGNECTO. 
 
 Dear Sir Donald Smith, 
 
 At our interviews of last Tuesday and Wednesday I spoke of Canadian 
 politicians having made our business a partisan question. 
 
 ****** 
 
 Wo only know it as an enterprise we are endeavouring to carry out tor the 
 Canadian Government, and the investors— a body innocent of any knowledge of 
 Canailian politics or partii's— are sutferers from statements such as were contained 
 in the telegram in question. 
 
 The language used about our Com[)any in Parliament, in the press, and on 
 platforms cannot be justirted. The quotations appended show that we were m 
 effect called swindlers, our enterprise a swindle and a fraud. We are accused of 
 having .sold our issues at a " most terrible discount." (I was a buyer myself and 
 paid par.) Our credit was to be destroyed, and lastly it was said that - It is ot no 
 "consequence to the people of Canada whether the English bondholders or stock- 
 •' holders have lost their m.)ney or not." These are a few of the things said ot us in 
 Parliament, our onlv offence being that we had spent ,1:750,000 of our money on 
 the faith of their Acts passed for the e.xpress purpose of inducmg us to do so on a 
 work cortiHed by them to be for the benefit of the people of Canada. 
 
 Sir Wilfrid Laurier rea<lily admitted that there is no precedent tor the treat- 
 ment we have received, and this is also true regarding the language used towaras 
 tis Bri.ish investors have dealt with every Colony, self-governing and Crown, 
 but no such language w.us ever en.ployed towards investors or such baseless 
 
 accusations made against them. . . ■, ,^ t 
 
 Many candidates at the last General Klecin.n spoke as .t the Government 
 
 had given money to the Company. This was so often repeated that^ I «nt a 
 
 circular to .Men.bers «tating the tacts, copy of which I enclose. My lu. ^mation 
 
n 
 
 is that oven worse lanc^uasre— if rhat were possihl.' -u-.s used towards us bv 
 candidates than in the Hous*' at ( )ttawa. 
 
 The story is ahnost too painful for publicity. If, hcr.vover. no settlement is 
 arrived at soon after the Premier returns to Ottawa I must, of course, put the facts 
 before the investors, who up to the present momeur know not hint,' whatever of 
 what has been saiil of them. The Deputation which aeoompauied me on Tuesday 
 last were not aware until then of the lai),srua,<-e used in Canada in regard to 
 themselves and the enterprise. I have always prevented the.se matt.-rs from 
 becomincr more generally known than was unavoi<lable, as it must be da.naging to 
 the interests of Canada to create in the minds of .several thousand inve."tors a 
 bitter sense of inju.^tice at the treatment they have experienced, aggravated, as it 
 will be, by a knowledge of the language applied to them. 
 
 I am, Dear Sir J)onald Smith, 
 
 Yours very faithfully, 
 
 (Signed) A. D. PiiOVAND. 
 
 QUOTATIONS FROM HANS.VRD, 1H!M;. 
 
 Ma. Li.sTKR.— Piic,'e 3097. 
 
 Page 4632. 
 Page 4031. 
 
 -'•Sir, hy graiitiiiL; tliis Mmiu'y ymi ,,:v .^iviiii; the jm.inctors of thi.s 
 scheiiK- .1 furrluT oiipoit unity f.. .swindli- tlu' Hriti.sli imblic, 
 becau.se the sciieme u{><jn its face i.s .h .swindle." 
 
 -"It i.s a bogus concern." 
 
 "I Imve nn lie.sitatiun in unyiu^ that it is ..iie ..f tlie iu..8t 
 a.-it.uniihng fnuids <.f tlu' present century." 
 
 Mk. M.AKTIX.-Page 4648.--- A fnuul it luts been •.•allea, u is ti.e w„rst kind of ,. f,,iud." 
 
 Ml!. Llster.— Paue VAmi 
 
 Page 4<i34. — 
 
 Mh. Maktin.— Page 4«)4« 
 
 Mit. LiSTKK.— Page 4(i34. 
 
 -Speaking ot tlicse wlio brought out the Coinpanv. he s;iid : 
 "I venture to B^iy by uu-n who have now little if anytliiiv' 
 invested in this scheme. They tlo.Ued the Hon.ls of tlie 
 Company no doubt at a very heavy disoount." 
 
 And referring to our inve.stoi-s having taken the Is.sue.s. said :- 
 'It they have, they have taken them at a most terrible 
 <liscount. 1 lK;y have paid i)ut a small priee for tliem." 
 
 -" I would hive to say for one. tiiat if my v..te is going to liave the 
 eHeet ..f de.stroying the credit of institutions like the 
 U.ignecto Marine Transport Kadway C.mpany in London, 
 1 WouKl b.- v.'iy glad to de.stroy th.n- eledit.' 
 
 "it IS of no cnn.se.|uence to the [ pK- of Canada whether the 
 
 hnu'li.sh H.,ndh.,ld..rs „v sunikluMn-^ have lost their money 
 or not. •' 
 
 -^jr-- 
 

 k'ards us hv 
 
 ettlemont is 
 )r»t the facts 
 whatovor of 
 on Tiu'sdav 
 II regard to 
 lattcrs from 
 lainanfiiig to 
 investors a 
 ivated, as it 
 
 'AND. 
 
 iiotors of this 
 Iritjsli jnil)lic. 
 
 'f the most 
 
 niutl." 
 
 ht' s,ii(l : 
 ' if .iiiythin.! 
 londH (if tht: 
 
 iii'.s, said : — 
 iKt.st tonihle 
 
 lOlll." 
 
 to Iiiivf thi- 
 ns like the 
 ill lioiiilon, 
 
 wln-'tlu!!' the 
 tht'ir money 
 
 37 
 
 1 had again occasion to write to Sir Donald Smith, and the letter further 
 deals with the language applied to ns. 
 
 2, Whitehall Court, 
 
 Westminster, London. 
 
 AuQust im, 1897. 
 To the Hon. 
 
 Sir Donald A. Smith, G.C.M.G., 
 High CommUnoner for Canadn., 
 17, Viclorio. Street, S. W. 
 
 CHIGNECTO. 
 
 Dear Sir Donald Smith, 
 
 ♦ * * * * * 
 
 The suspense is becoming difficult to eudure, and I cannot ask too strongly 
 
 to have this business brought to a close as soon as the Premier returns to Canada. 
 
 If we are not to be reinstated and if some complicated method of compensation 
 
 has to be discussed, this will necessarily cause some delay, btit if the Government 
 
 intend to repudiate everything because we are technically in default-our position 
 
 beitig directly the result of their passing the sub-section to the Railway Bill ot 
 
 1888-there can be no valid reason for further delay. If they do not intend to 
 
 acknowledge their moral and equitable liability arising out of their own Acts and 
 
 .f their pol.cy is to be that recommended by the Hon. Mr. Lister and the Hon. 
 
 Mr. Martin, n.ay I earn..stly urge that they will lose no tune in communicating to 
 
 us their decision. , ^ , •^*. >,. thic 
 
 Ihav,. n.,t hilhevt,, in a„y oonnnm,ication which I have writton «.> th,. 
 .,l,j,.c,, alla.h.,l to ..,th..r political party. C)..r business i. w th the Domunon 
 Govenuncnt without referee, to which par.y >s in power, bu, I led eo.npelled to 
 briup to v.,„r notice the parttsau eharae.er of the treatment we have expefeuced 
 So ar a;ia,„ aware no t;on,erva.ive l,as ever ,sa„l a wor.l aga.n.t ns nnp ung 
 
 ,.„vth, l,sho„orable in our n.oUve or o„r proceeding. On the other l,and 
 
 ho v ,.; we Intve been called .windier, in the pa.t and have been accused ot 
 
 ::„din:, to ,wind.e .n the .nture, the Con.pan, ha, been <'™;-' -/^ ^ 
 
 1 we have been accused of >»,nino false prospectuses and al ^^ ^a J^^-en d n, 
 
 by the supporters ol .he present Adndnistration n> l>arl,a,ne„t and n he, Pr.ss. 
 
 ' A CO es lent in Canada wrote to n,e at Ottawa last year a. follows :- 
 
••^cS 
 
 swindle all bixpayers. Tho term '.swindle' Iihh been used so „fton in Parlinniont 
 without any defence of it, or any usNertion of the justice of its ekiiiis on Parli.uiient. 
 «.r any tlu.vough and systematic declaration of its rights through the press, it is but 
 little wonder tiie scheme has hnally been accepted geiiemlly as a cheating venture." 
 
 T know that tho above is a perfectly true statement of what was said of 
 li-.yself, and those men who endeavour to make the public believe that the 
 Chignecto claim was merely a " cheating venture " and that I was " heading a 
 movement to swindle all tax-payers," are the supporters of the pr. sent Govern- 
 ment. You have spoken lo me about the views held by the people of Canada and 
 the consequent difficulties the Government would have in reinstating the Company, 
 but. may I a.>^k, what can their views be when they have been tol.l little else than 
 falsehoods about the enterprise, and frequently by prominent politicians who must 
 have known better ( The Government have no real difficulties to contend with 
 except those which hav^e been created by the language of their own supporters. I 
 had much difficulty in inducing Members to read the Statement of our claim, but 
 everyone who did so acknowledged that he had previously been unac(|uainted with 
 our true position in regard to the undertaking. In speaking to Members on the 
 subject I found I had to deal not only with those who did not know the facts, but 
 what wa.s more painful still, with those who did not want to know them. The 
 OtUncii Free. Pres.,—a strong supporter of the present Government— followed a 
 series of attacks on us by a.i accusation of having issued false Prospectuses, but 
 when it was made aware of the facts and shown the Prospectuses which rontained 
 the Clau.se in the Act of 188G, setting out the conditions on which tl, • Subsidy 
 was granted, said that "The British investors have been grossly deceived, of 
 that there is not much doubt." We are not yet complaining of being deceived. 
 Canada asked for and obtained our money on the faith <.f the Acts of their Parlia- 
 ment. But if they will not now carry out their bargain, which is all we ask, 
 then we .shall have been grossly deceived. 
 
 I believe that the Conservatives as a party consider the Government bound to 
 keep faith with us and to carry out their bargain. In June, WM; we were ready 
 to recommence construction, and from then until the beginning of last vear,<leaths, 
 changes of Ministry and other circumstances- with all of which you are fa.niliar-' 
 were pleaded as rea^sons for postponing our application for reinstatement. I never 
 considered that these were ade.piate rea.sons, but in our positi.ni we were compelled 
 ro submit and accept those rea.sons as made in good faith. From the last 
 Government we had at least the language of sympathy and regret for what they 
 considered were inevitable delays, and they ultimately recognised our claim by the 
 Order in Council of the 22nd May. iHiHi, which we believe<l would be observed by 
 any Government. 
 
89 
 
 It has been openly stated to me repeatedly that the treatment we have 
 experienced is on account of the Subsidy having been granted by a Conservative 
 Administration. I have asked those who gave me this information, " Are we then 
 " to b(> called swindlers because the use of such language regarding us might 
 " indirectly be a reflection on political opponents irrespectively of its gross injustice 
 " to ourselves and our enterprise ? " While some— I hope not many— public men 
 in Canada seem to regard such conduct with approval, I cannot for a moment 
 believe that the leading men of Canada will not unhesitatingly condemn all such 
 ui\worthy methods of political warfare. 
 
 The longer this matter stands over the more difficult it will be to settle it, 
 and the more certainly will there be an outbreak of just indignation on the parr 
 of our investors at the treatment they have received. For years I have tried to 
 bring the negotiations to a close, and if no arrangement is arrived at early in 
 October I must place before our investors, and also those in the Investing 
 Companies holding our issues, a full account of what has taken place, of the 
 reasons why I have failed, of the treatment we have received, and of the language 
 which has been applied to us. It will then be impossible any longer to conceal 
 the fact that the Members of one political Party in Canada are the authors of the 
 deliberate falsehoods uttered and of the abuse to which we have been sub]ected. 
 
 I have been to Canada again and again to represent the hardship of our 
 case which has been adnntted by Members of both the last and the present 
 Governn.ent. Nevertheless a ser,tloment is postponed, while our property is 
 deteriorating year after year. We are distant and voteless claimants, and are 
 treated as such. If a Canadian body of investors had found the money, no one 
 who knows Canada will ventnn,- to say ihey ...mid have had to wait years for 
 reinstatement. While vou have informed me that time could not be found to 
 consider the very simple issue which i. presented in our ca.e, nevertheless ample 
 time has been found to consi<ler new and complicated proposals for which fresh 
 deman.ls wUl be ,nade upon our investors, such as the Fast Atlantic bervice, for 
 which £2.()()(),()()0 are now being asked in London. 
 
 I know that we had. and stdl have, n.any rVie,>ds an.ongst the public men of 
 Canada. On page of the pru., o, the ad.lres. ^ ^" "^^^^^'"^^ ^;^ 
 of the Comndttee of the Cabinet last S.pten.ber, you will .m r-^;i-^ ^ 
 the Hon. Mr. Power, which w.re those of an honest opponent. In 1892, .hen ^^. 
 Ippliedto 1'arlian.nt for power to issue Preference Debentures, hoping by hat 
 rins to raise n.oney to cou.p.ete the work which we had b^n 1-^^^ ^- 
 ..btainmg by the sub-section to the Railway Act of 1888. the Hon. Mi. Kaulbach 
 
 said: — 
 
40 
 
 " If we attempt now by any means to prevent this undertiikins from going on, 
 after an expenditure of .«;;,r>(X),(MM), we will .slmw that we are endeavouring to 
 repudiate our (d)liyations. The object of this auieiidnient is to frustrate the "liill 
 altogether and to stultify ourselves and make the people tif Kngland feel that thoy 
 have no confidence in the future legislation of the country. We iiave, l>y the subsidy 
 we have offered, induced capitalists to iro into this enterprise, and iuvest their imtney, 
 and if we now repudiate our agreement we will be acting in bad faith with those 
 people. ... If wo throw out the Hill, and by so doing ruin this undertaking, 
 it will be for ever a monument to the perfidy i)f Parliament in trying to get rid of an 
 honorable obligation which we assumed, and by which we entrapped the capitjilists 
 of England into investing then- money in an enterprise for which they l)elieved they 
 had the guarantee of Canatbi." 
 
 This is the truth both as regards how we were iuc '•' invest our monev 
 
 in the enterprise and the motives for opposingr our chiinia. Furthf>r v^omnient is 
 unneccessary : the views thus expressed by the Hon. Mr. Kaulbach are held by 
 many politicians and business men in Canada. 
 
 May I add one word more ? All that has been said of us in Canada does not 
 in the lease affect our belief in our own case. We know that we are right, and 
 that Canada is morally bound by every honorable sentiment that can animate a 
 Government to recognise our claim, and either reinstate us or pav ade(iuate 
 corapansation, and until a settlement is arrived at I am certain this (piestion will 
 not be closed. 
 
 I am, dear Sir Donald Smith, 
 
 Yours faithfullv, 
 (Signed) A. 1). IMIOVAXI). 
 
 The foregoing shows what has been said about us by c. , Lain members of the 
 political Party at present in power. But the hist (iovernment by the Order in 
 Council approved 22nd May, 1.S9G, fully admitted our right to reinstatenuMit 
 and recommended Parliament to carry it into et!'ect, and if tiny had had a 
 majority at the last General Election, and been reinstated in power, they would 
 undoubtedly have given their recommendation legislative etiect. While v«»n 
 should know what has been said against you in Canada by a certain section id 
 politicians on the platform, in the press, and in Parliament, these utterances 
 must not be taken as representing Canada and its peopb-, nor even as repre- 
 senting all those who are in political alliance with the men who have made use 
 of the language to which I refer. I liavo .pioted in the Appendix (see pages 50 to ')2) 
 e.vpressions of opinion by politicians favorable to the Company. I may here 
 add that while in (Canada I had tnany cMiversations with Banki.Ts, .M.^rehants, 
 
41 
 
 rom yomg on, 
 h-avoiirinij! to 
 iiitu tho Bill 
 f'H'l tliJit thoy 
 >y tli« .suhsitly 
 
 tlu'ir iiiitnoy, 
 h witii thdso 
 
 uiulLTtnkiiiy, 
 fjet rill of an 
 iu' cji|)itjilists 
 l)oliuvecl they 
 
 our money 
 cominont is 
 fire held by 
 
 Ja does not 
 
 riglit, and 
 
 animate a 
 
 y adt'(juarr 
 
 lestion will 
 
 AND. 
 
 bers of the 
 le Order iu 
 ii,«tatenu;nt 
 lad had a 
 hey would 
 VVhih' you 
 
 section of 
 
 utterances 
 u as repre- 
 
 made use 
 !S 50 to ')2) 
 
 may here 
 M'rehants, 
 
 and business men, and in every instance thoy expressed the opinion that the 
 Government was honorably bound either to reinstate or compensate the Company. 
 A natural ipiestion for yon to ask is, Why shoidd we suffcir because of 
 political differences in Canada, eonsidermg that we have nothing whatever to do 
 with it, our business being with the Canadian Government without reference to 
 
 which party is in powtir ! 
 
 Many paragraphs could be quoted from the press in ('anada, sympathising 
 with the position of the Company. I (piote two, the first of which is taken from 
 the Torovto Giohe, which possesses a cotnmanding inHiience in Canada, and is the 
 chief supporter in the press of the present Liberal Government. In an article 
 dealing with the ('hignecto Railway, in l.S!)l, it said :— 
 
 "Tho (luustion iiioie iiniiio«liiitely coiiconiiug tho Cmiiidiivn people is to what 
 extent the Dominion (iove.niMent is li.'vl.le. It is true that the prouuso of a twenty 
 vears' sul.sidy was eonditional on the coiupletiun of the work hut it is equally obvious 
 that the action of I'arlianieut was the l.ait which eaught the Bntisli investor who 
 ouUl not have bitten at a nake-l hook. The original subsidy ,.roiuise.l in 1882 was 
 for !^15().00() a year for twenty-tive years, but in 188<; this was changed to ^ subsidy o 
 .«17<M)06 a year for twenty years. If we repudiate a 1 responsibility, a.s tcrhuM-alUj ue 
 sLddbe uLuaM in d„in,,, the credit of the Doniinion would sutler, for there can be 
 cloibt that we have incurred a considerable degree u moral responsibility m 
 " nn^c n w h the undertaking. Just now we cannot atfor.l to run fresh risks in the 
 1 r ish n u.ey markets. The census ti^ures, the Ottawa and ( ueW scandals the 
 hiVt^, rv . f tluf bankrupt railroads in the Maritime Provinces which atter having been 
 ml .UoDoininion ..r Provincial l.onuses, have been unloaded upon ^^"f ^h^ b 
 a^^ o£ tlttl have lu.t done us any good over there ; j-^l ^^ --;;^ ^'^'^"^^ - 
 cautious is dealing with the Clngnecto eiiteri.rise lest it should cieatt a putect 
 
 stampede." 
 
 The foregoing shows that the denial of our clai.). would in the opinion of the 
 Toroniu Gloh., the lea.ling Liberal newspaper in Canada, he npad^ation on 
 
 The olh.r ,|U0tati„n i. .ocent, a.-l is Iron, the Ott.nm Dad;, Free P«.«, 
 which i. al»« a strong supportor of tli. present Liberal a.l,nnustrat.on. 
 
 The article after cnunenting upon the .ssue el the Rcpo" of tie 
 Snb.Co,„mit,ce of the C'onncil, >vhich .Iclincd to recon,me.>d Parltament to 
 reinstate the Company, then says :— 
 
 f ( tl,.> c-ise which is .dmost painful ((.s (7 practically 
 
 "But there is an aspect of t i c, c M ^^^^^ J,^,i„^.,,,ti..n given it by 
 
 anwuHts to a natio,ud di.iinicc. On ^'n^ ^'"^•^ ^ ^ Biitain have been 
 
42 
 
 CONCLUSION. 
 
 The facts set out in the forosroini,' statomcnt aro too nmnerous to sum rnarisc 
 but thiTe are two or three matters which aro entitled to notice. 
 
 A meetinn; might have been held soDuer, btit it has been put off from 
 time to time penuinir a definite reply from the Canadian Government. It has, how- 
 ever, now become imperative that you should be called totjether without further 
 delay to be informed of the position of the nejrotiations. The Sub-Committee of 
 the Privy Council are, according to the letter which. I r.'ceivcd from Sir Wilfrid 
 Laurier. reconsidering the .luestioti of reinstatement. If they finally decide not t.. 
 recommend that course, there will then arise the .juestion of compensation and 
 how it is to be dealt with. In view uf the many postponements which we have 
 already experienced, I am unable to say wh(>n a final answer will be received, but 
 I do not think it can be delayed much Ittnger. 
 
 The -luestion of granting time to complete the Railway is many times referre.l 
 to in the previous pages. In all such contracts the time to complete the work is 
 tisually stated, but extensions of that time are granted as a matter of course. In 
 this ca-se we were spending our own money, and the delay ha.s not prejudicially 
 affected in the slightest degree either Canada (»r any ( 'anadian interest. The onl v 
 persons who have suffered are ourselves. Further, the d(>tault on our part is onfv 
 technical, and arises through our Contractors stopping construction, and this was 
 the direct effect of the (Canadian Parliament's change in the law by the (Jenenil 
 Railway Act of I88.S. 
 
 In any case a default in point of time should he con.sidered relative to its 
 origin. Work on the Railway was kept back by various natural difficulties, 
 excessive rainfall, the absence of solid rock foundations within the calculated depth, 
 and boggy places on the line which could not be known before the work was in 
 process of being carried out. The delay thus occasioned e<pialled from one to two 
 sea.sons. But such .)bstac!es might have taken years to overcome, and it is 
 certain that even a delay of years, arising from unavc.idable causes, would furnish 
 no equitable rea-son for refu.sing all the time that was nece.s.sary to complete the 
 Railway. There is no precedent either in Canada or ..ut of i't for the Canadian 
 Covernment's doing so. having n>gard t., the acts that we ux're spending our own 
 money and were prejudicing no interest whatever exc.'pt <,ur own by the delay 
 
 The follouing letter from Mr. R. D. M. Littler. Q.C, one of the best known 
 leaders ..f o.ir hirliamentary Har, shows how applications for time are dealt with 
 by the BHnsh Parliament. Mr. Littler was Chairman of an i.ivestne.M.t Co.npanv 
 
43 
 
 o sum inarist 
 
 uhifli ^iibstTiht'ii lor .some of thu Coinicuiy's hiltcntiirfs und I'rotoreiu'i' shaix's. 
 lie was to a('rum[)!i v th'' (lujuihitiou which wiiittd on ilu- Hon. Mr. Foster, 
 the t'iuiiitliaii Kiiiauri- Minister, in Lo-idon, hut iit the last iiiointnt lie rouml 
 iiiiiist'll uiiabU> to ho pn'sciit and sml this IctU'r: 
 
 put otf from 
 
 It hius, how- 
 
 thout further 
 
 Coinniitteo of 
 
 111 Sir Wilfrid 
 
 decide not to 
 
 )ensation and 
 
 'hich we have 
 
 received, but 
 
 imes referred 
 e the work is 
 >f course. In 
 prejudicially 
 St. The only 
 r part is only 
 and this was 
 ,' the ( Jenerul 
 
 dative to its 
 
 I difficulties, 
 iilated depth, 
 
 Work was in 
 
 II one to two 
 le, and it is 
 ('ould furnish 
 complete the 
 lie Canadian 
 lint,' our own 
 he delay. 
 
 ! best knt>wn 
 •e dealt with 
 nt Company 
 
 '"J I'cMP CofUT, Tkmplk, 
 
 My Dear Mii. Piiovani», 
 
 Chignkcto. 
 
 " 1 very niiii'li foivr, hh I told you. tli.it I sh.iU Ik; un;il>lo tn Uo with ymi in yur .ittomUnco 
 on tlif I-'mluk-i! MnustiT to-niorn.w owini^ t.. tlii^ .sliortnoss .if tluMiuMco ami a vury niHKUutivi^ 
 pivvinus ,.n.'a>'i'iii."nt. 1 sIk.iiM liavo mucli lik.'d to luvi- Ik'oii with you, roiiresi-ntinu; as 1 do 
 £40,000 of suTid luoMoy ii.vi)sti'<l in leli.mci^ on what wi> hdicviMl, an<l still h.diuve, to he tho 
 dosJrvi^dly ^'ood imuif for iibsoluto good faith of tlio Govermnent of Canada. 
 
 "Of eourso, on most of tlio .nu-stiuiis T cnmot pivtoiid to speak with anythiim lik- the 
 authority of tlu-so intimattdy cnnm-ct..d with th... City, hut nn ono point 1 am ^K'ar, and that 
 k that'tiow nearly tluity years' .xp..,i..K.,- of tlif pnuti.c ..f l„.th H-f-/ ^ ^ ''J^ ;;i 
 I'arliani.^nt assures niu that, undor suoh .•iivuni,stanc..s. nut a stnuie ( oKimift.T of eithei 11. -um 
 could l)u found to refuse an e.xte.ision of time to those who had e.^i^ended tluir money uiu u 
 vo -M-oat d.Hi.M.lties.an.l th.at, oven were it neeessary to a,ain and a.uam nniew the ..pplica m ^ 
 believe 1 am absolutely ri,ht in sayin, that no sin,le railway work n, London - - - J^ 
 years has t.een made within the tiin.- ori-inally limited. Many have had ten oi t vcl t 
 lea^' extension. It is true th.at there was not n. ,u.y of these eases .ciiy question of g.mranue 
 m^th^Mnakes the position stronger : for here not a soul would •'-'• >'-:;^t ''i^.^S " 
 Chi^a.eeto. .save in the belief th.at Canada i,',ave the guarantee because s e w.mt '' ^ > 
 
 •u d was determined to have it. Their country has sutlered no loss save that ot the del.i) o tlit 
 i:;::; .'.he works as eomplete.l (while i, has reeeivd the .-. of tl.e outlay ;;^ ;- mo yX 
 l„it we on the cntiarv, have h.st heavilvm interest .m our outlay and m .dl tliL expense or 
 lu^lonnn'^o <':;.',.!-- N'" wnnaturaily Ibitish investors "'--;';;,^^'-- ,;;;;— ,, 
 irresistible at h.m.e- should prevail lu ease of ne.d in ( .mada. 1 own I bd the less u...e 
 n.y mabilitv to attend when I think of the m..ral p..siti..ii we hold. 
 
 .. I cannot conceive it p,.ssible that an answer can be f.,un,l to ,..ur ar,u,m.nts which w^ud 
 satisfy n..t only us who /h,.y invested but any person asked m the tutuu ..n 
 Canadian .iua.o.tees. Yours truly. ^^^^.^^^^^^^ ^^ ^^ ^^ ^^^^_^^^ „ 
 
 •I'he sum at stake is lar^e. About tlTr.O.OOO Itave been spent ..u the Rail^.^- 
 all of winch, e.xcept the a.nount pai.l for hydra.dic machinery .wlucli had to be 
 made here), administration, and other necessary exposes, has been expended tn 
 Catiada in duties, carriage, in labor, a.nl lor tnaterial. Hy the terms of the Utitrac 
 we are hound to repay the ( "anadian ( lovertnuent tl>e whole ot ^h. Subsu 
 reeeived. alter meeting the agrcd dividend, Hut assumi.iK that we collected all 
 the Subsidy lor .he full term of 20 years^-a.i ex trentely unlikely contn.g..cy-- 
 _it wotdd'amount to less than we slcdl ..xoend on the Railway m Unada i^. b 
 
 Th.. Rulwav h.. l>.-e-i c..nst,-n,.>..MW-- a ,n..,al ,.tn,.o.. atid ,s n.isutt,^^^^ 
 
 lor any other. If therebav we are no, ,o l. re.nsta>..d or cotnpeasated, we shall 
 lose the JCTo^l.UlK) 
 
 I ueieion- v\e .ii< ..••> > 1 t 1 u„ 
 
 . , , , X- , .,...1, j-i^k as thi^ w.is e .titeinplated by 
 
 we ha\o cxiMiul.'a. .>o .s,K.. ii 
 
44 
 
 lis when wo snbxoriliod for thf Shares aiul Dchcnturos. Utuior no cirouinstanros 
 ciMiId \v(> havf snpfiosed that on tuvouDt of the dcfatilt of our ("ontrat't, or in com- 
 pleting tht' Railway within tho tinu.' tixi-tl, w.- should have boen doprivi'd of onr 
 wholo property. The piMialtics in a Contract for snch a work arc ranlv cxactiMJ. 
 and then only to niei't at-tnal Ioks, but in this caso the penalty will involve the 
 loss of the whole amonnt invested, and this will be ineiiried for a default, triflitiij 
 when eonsidered relative to the magnitude of the enterpri-te it.self. juid from whirh 
 no one hu.s siitiered joss except ourselves. Such a penalty has never vet been 
 e.xact.ed l)y any (Jovernment under such eircumstanecs. If we could h.-ive for a 
 moment, imagined that the Canadian ( tovernnieiit would have treated us a.s thev 
 have done, we would not have invested one shilling in the enterpri.se.; and whil. 
 this question remains unsettleil. it will be nothing ie.ss than a natiomd mi.sfortuuf 
 if they can find in ihih market investors who will furnish capital for any .similar 
 undertaking. 
 
 No answer can be accepted as final Irom the (Canadian (Jovernment without a 
 settlement of our claims. The »|uestion must be kept prominentiv before our 
 public in order that every country may know that it is impossible for «»ur investing 
 classes to accept .such treatment. If the Canadian (iovernment do not reinstate 
 or compei;sate the Company this policy will firstly atfeet (tur.selves, but it will 
 ultimately also affect all our investing classes. If wf tamely submit to the 
 repudiation by the Canadian Government of its obligations in this case, it will be 
 accepted as a precedent by all other countries which they may follow when it 
 suits their convenience. 
 
 I am, Centleman, 
 
 Your obedient servant, 
 
 A. J). PRO VAN 1). 
 
4.') 
 
 APPKNDIX. 
 
 Copy of a Jifport of the Committei: of thfi llonmuihk I'rictj Conucll, apiirovcd by Ilia 
 Exiylleitrij till' Gorf.r nor Opufiml in Cnnrvil on thn lltli April, ISS-j. 
 
 On II roi»(>it (litod lOtli April, IKH'i, fnun tht^ MiniHtor of [{iiihvayH uiid Ciiimls, Hiilniiittiiig 
 proiMisitioiiN of Mr. H. G. 0. Kutclimn, siipiiorttnl hy ii Uri^'i^ iiuihs of t.-vidniiw i<oiii« I., prove 
 thoir entire praeticaliility under wliicli, sli..iild it he count, imnee.l. u Company wdl lie forined 
 for the con.struetion iind openition of ii line of slnp niilwiiy tiero.sh the l.stlnniis of (,'iii«necto, 
 toc-oinieet Uiiie Verte with I'.iiy o. Ktniily. sucii hno l.eing imilt lietween iv j)ort iit the mouth 
 of tlu' riv.>r I,!i Thmehe on tin- Hay of Knndy. and Tiyuisli ll.ad. on Haie Verte, a distance of 
 about 17 miles. 'I'he Minister Htates that a ntnnlier of ar<{ument.s and st.vtistical facta showinfj 
 llioeonunereial value of tlie projected work to tlie eonntry at lai-^e, (lie coyeney of which hu 
 (the Minister) fnllv reco;j:ni/.es, are set fortli in pamplilets siil.mitted hy the ori:,'iiiator of the 
 sehenie which l.aniphlets accompany the prusont Me.mo ; that in .•oiiHideratioii of the work to 
 he exei-nted the Company asks from llie (loverniiieiit assistance as follows ;- .V subsidy of 
 5«ir.(t(M»0 per annum, for"a perio.l of iT. years; the entry free of duty of all huIh ; the entry 
 fiee of duty of sucii materials and machinery re.piiie.l for the hydraulic litts and other pini-oHes 
 n.s were not made or manufactured in Cana.hi ; tlu- cania-e free of all sucli mati'iials over 
 (iovonnnent Railways. The Minister observes in relation to tlu^ above scheme tliat for many 
 vears ,,a«t very considerable importance has been att^tched to the possession of means liy which 
 he witer .listlnce between the St. I.twrenee river and the Hay of t undy, ivpre«ent.ii. the 
 umvi.'ationof tin entire Province of Nova Scotia, couid be reduced : that as ea-.l) 
 
 cuciimi 
 
 18-.'r. a survey for ,i canal across the isthmus of Chi|.Miecto was etiected and that turther in the 
 year 1«71. n commission Kat f..r the cnsideratioi. of the matter. I his commission, afte. an 
 exhaustive entpiiry. reported as follows : 
 
 " Insei-arably cnnected with the j^rowth of inter-c.doni.d trade is the c;i.nstruction 
 of the Haie Verte Canal across the isthmus cmiiectin- the I'rovinces of Nova Su.tia 
 and New Hriinswick. 
 
 -The a,lvanta..-es that must liccrue not merely to the Dominion as -'^ ^vho e but o 
 the commerce of the Maritime Province, are m. eieaily pointc.l oi t 1. ^^ -^^^^^^^^^^^ 
 Trade of all the leadin;^ cities of Canada, and by men niteres ed in < Y'*- ; ' ~; , 
 our con.n.etvial interests, not simply the meivha.its of M, do in s a id o . ] 1. . > 
 the h..'ality of the proposed canal, but merchants ot Haii.ilto,,, '''' "^''- '"^ , ' 
 Montreal, ^nd Muebic, Ihat it is supertl.ious for tli- coiiimissioue.s to do moie tlian 
 i)rietly refer to a few .salient features of the scheme. 
 The Minisfr further observes that, as an instance of the -'vij'-; ''-Ji^'--; ';;,.;;;; ^^1 u, 
 tlie commissionei. state the distance by the --».,,« rouU. via ^-^ ;.',;- :;,;;:;■;„. ., ,,is 
 to .St. Join, -namely r.tX. miles -would be ^•''''' ^'''. ^'V L ' lief Fii dneer of -overument 
 canal. The Minister havin- referred the wlmle .piestion to the ( Inet hu„i 
 railways he reports as follows : ~ 
 
 1 That the pr.Mect is Olio (luiteiu-acticable of execution. 
 
 i: That the Ihip nulway as proposed would be a , 1 substitute for the canal ongn.ally 
 
 coiiteinplat.'d , , . r i „. ,,i,i i,.. im^itlv 
 
 :, That the advantage m r.spect of^cost ■--'M--' -; '/^i.;; .J^r';!: dl' iwtnmilllt 
 
 in favour -f the ship railway, the cos, of.i bdf.ide -^"^' ^^ ^^^; ^' ^J , ,,^ ,^, company, 
 
 ^^z^J;;::.:";'^^^^^^ "^ -'"-" ^"^ ^ ^ 
 
 ''''Sio M;;;;^er submits an esti te m.de by Mr. K.c.nm. u,^. jj- ^Hl/i'lilli'Srs^;;; 
 
 ,he cost of tlH. projected ship -'l-^- '";:^^;^;;:;^ ' :'rw d ho t'lnef Kngineer of (b>vetn- 
 estim.'ite anioUiLlin- to the sum ot M,.... U»l , .is to » ;' j f,, ouautities and the 
 
 montca.ulsrepori. that, accepting' .Mr. Keuhum s ivpu .... m.iti 
 
4({ 
 
 tlmiiictt r nf tlif line tlwif cnn lu» <()itiiiiii«<l. tlu<nmt of tl 
 
 Hiiiialilv iiinl |iiTiiiiiiuiil I'liimnti r. wmilil, in liis i>|iiiii<>ii, li(> at liMsf i| 
 
 It' works I irnjH )-*»«< 1. if tliniiiulinut of ^ 
 
 MiiiiHtiT, in vi»nv nf tli 
 
 H- •»lllll ll'lllH'M 
 
 (' ift'iu'ially fu-kiunvli'ilnfil iiii|inrtinni' tn flu- rniunu'rcinl iiitcif^fs of fh,. 
 
 wholf iM.iinlrv nf nu-,ins ^f croN-^iiiu t!ic UtliiniiH of ('liiL,'ii.-.l.i. .in.l fnitl 
 
 fciiNil'ility nf rhi' jilaii now |iro|iiisfil ami tl 
 
 III VK'W o 
 
 f til. 
 
 If sa\ iiii; Cost wliU'li It otIiTs as loiiipaii'il with ciiii.ii 
 
 ooiiHtrii.tioii. rccoMnntinls that aufhoiity li»' irivon for tli.- ciitcriiii; into niraii . 
 
 Mt'ssrs. Kffciiiiiii and Co. mi ih<> followiiii,' t.'iiiis for tht- construction of ,\ lint* of Hliip mil 
 
 Ui'MHMitH with 
 
 luroNS the isthniiis, wifli the ilintinct iiiitlcrHtiiiKliii',' tliat all risk .in.l 
 
 wiiv 
 
 <'X|iciiilitiirc coniK'ctiil 
 
 thcrowitli 1>.' l)orii<' hy th<> company, ami that the said Iiin«. l.cinn suhsiantiallv Imilt. thoioni(hl\ 
 ciMippcil, an.l ca|..ih]c of sat isfminrils iirrt..|inm.4 the services set forth in Mr. Ketclni 
 
 Mini ,s 
 
 .Her. a siil.si.ly nf .■<1.-,(>.(NMI a v.arl.e u'laiite.i l.v the < Joverniiieiil. -ii-h Mil.hiiJy to I 
 InyahU- tor a term of lVi 
 
 - . ' years and no longer, and tliaf payment coiunienei- whenever tht 
 
 Nhip railway sliall i.e in full tipenitioii. anil ennfiniie ..nlv iliiriii'!; siieli time hh it may lie satis 
 factt.rily worketi, Kurt lierinore. that the tnils to I.e chaiL'etl l.v the company he siil/jeet to tli, 
 approval oi the ({t.vernor in I' " " ' 
 
 oiiiu-i 
 
 Th 
 
 Caniils. and submit tl 
 
 mmittee e(.nciir in forej^oin.,' recoinnieiulation of the Minister of Kail 
 
 ways and 
 
 fi 
 
 or remis.sion of duties and free traiisi 
 
 le .same for your Kxcelleiicy's approval, it lieiiiu' understood that the cl 
 
 iiiHhion on material he not eiilertaiiiet 
 
 anil 
 
 Thu fu'lowii 
 
 20tli October, I-Sn;}. in \] 
 
 It,' rf><)luti.)ii was pas.s.'d hy flu- Hoard of 'IVatli- of St. John, N.T. 
 
 IVO 
 
 iir of thf Slii|) Railway, ;iii<l is uii fxampK- of tli 
 
 exprt'.s.sioiis ot approval ami .support inadr hy piihlii- hodits 
 
 M7,. 
 
 <iulf of .St. Lawr 
 
 r>ns, means of comniunieiition Let ,i the w.iters of the Hay <.f Kiunly antl tli 
 
 lice, whereby products of the several I'tovinc.s liordcnni^ theicoii may 1 
 
 may I.e sal'dy (.niiveved acios.s the Istl 
 1 
 
 "0" 
 eiicnunterin;.,' tlie ilaii;,'eious njivi'.,'at inn of the .\tl.aiitic coast of .Nova 
 
 'M. 
 
 interch.iimed without 
 
 Scotia, wherehy ste.iiiK^rs and sailiii;,' vesHels, ailapteil as w.ll for inland as f<»r t.tjean naviiratit 
 
 meiit or hreaking hulk, and wlierel.y the s.iilinL' tlistance Let 
 
 mills of <'hii;necto. without the cost ,Mirl delay of traiishi|i- 
 
 and 
 
 ig - 
 
 west of .said Isthmus mav \n- reiliiced about (KX) mil 
 
 tweeii this j.ort and ;ill ports nortli 
 
 vnhmie of trade .iml I 
 and (iiilf of St. Lawr 
 
 Wn\| 
 
 Id 
 
 liiafi'i'lullv increase till 
 
 .eiielit tlu' shipping' inter, sts of this and other pmts in the Uay of Fuiidy 
 
 i'lice 
 
 .IIK 
 
 HV.t 
 
 tisl 
 
 lit, by means of a Ship Railway aero^.s the I.sthmus, th.' nbj,rts afnres lid ni.iy he 
 
 I'velnpiiient nf the a'^'ricult nial, miniin,'. lumbering', and 
 
 acconjplishotl, ami tlius stimulate the d 
 
 mil,' resources of the districts conti 
 
 lljiil 
 
 MV, 
 
 l^uous tt. the aforenaid ports ; an<i 
 
 K/vr/.s, a company has been formed for tl 
 
 lad 
 
 way. with en 
 
 le eonstriictinii and oheration > 
 
 >{ a SI 
 
 miiindinus docks and hydi.iulic lifts, for r.tisin^' and tr.iiisp' iitiny over its 1 
 
 ell Vessels of l.tMMl tolls register ; therefi 
 
 lip 
 
 IIIC 
 
 ore 
 
 •V.v./(V'/, That this Ht.ard is of opinion th.it tlie iindertakin-,' of Haid Cnmi. 
 
 f....;i;.. . .. ^ 1 , ' . . ' 
 
 ... , - iii; ni Hai<i I niiipanv would 
 
 greatly fii<jilitate trade and commerce betwe.ii the eastern ami western 
 further 
 
 provinces ; ami 
 
 1 ''"!'"'" •''"'' ^'''^ '5oard cor.li.illy approves tlie pmjeet for biiildinu the said Siiip 
 Kailway, believini; that this is a ninvement whicii wjII cnimiieiid itself tn ;ill elasses. and prove 
 to be nf ;rre.it cnnveilielice and beneti! tn nur tJ.t.le and cnnimelce ;'enerallv." 
 
 THH CL.VrSK IN TIIK Ai'V of l'.\ 1{ LI ,\ .M KNT ltKL.\.lN(i To THE 
 
 sri'.SlhY IS AS |-()L1.<)\VS:- 
 
 "8. Her Majesty th. h hereby lur herself, her heirs and suci,-essors, covenant, promise 
 and a-free to and with the v.'oinpany, their succes8..rs and assisrns. in the iiiaiiiier followiiii-, 
 
 th.at is to saj' : — 
 
 "(1) Should the said railway ami tb.ck.s, ami works appiirteii.int to the prescii! 
 undertaking, be completed in every respect in accordance with this contr.iet, and 
 hhn.akl tliey be accepted .a.s such by f Ip^ ( Snvernor in L'..imcil. then and iu .-iuch ea.se 
 
lirilllullllMt of ;t 
 I tllllK'll. 'I'lli 
 htl'M'^fs i.f till' 
 III vii'W (if (lie 
 
 It'll with cHiiiil 
 iit^tMiituitM with 
 I'f Kliip niilwiiv 
 
 tlll'c t'liMlll'l'li'il 
 
 mil, tlminiiiflily 
 
 Mr. Kcii'liiiiiii 
 
 siil«hi(ly t(i III' 
 
 wlu'iu'vt-r fill' 
 
 limy !•«' HiWis 
 
 HlllljfCt til till' 
 
 liiiilwiiys ainl 
 tli.it tlit> olaiiii 
 
 . .lohii, N.I!., 
 iiuiiU- !>!' tilt' 
 
 Kiliuly anil the 
 u'rciiii may In 
 
 I'IHIhI of S'llV.l 
 
 i*aii iiavi^atiiiii, 
 lay iif traiislii|i- 
 ail |ii'rts north 
 ly mcri'.isi' tlur 
 Uay I if Fiiiiily 
 
 'ii'sii'I iii.iy III' 
 liiiiilieriii^, ami 
 
 Imii iif a Slii|> 
 Ig iiVlT its line 
 
 iim|iaiiy wmilil 
 inviiiccs ; and 
 
 tin- saiil Sliiji 
 i.st'.s, and piuvo 
 
 TO TIIH 
 
 riianl, |iriinii--i' 
 iin-r followni'.^. 
 
 In till' pri'Srll! 
 
 I'niitracf, aii'l 
 ii<l ill .lueh case 
 
 iinly and ho Imhw diiriiitf tlio tunii nf twi-nty yiai-s frtiii tlio dati- uf Haid acoi-ptaiien liy 
 till' ( Jiivi'innr ill Ctiiiiiiil, hh llin Hiiid ^liiit railway i'* l<i'|it. in thuriiiii;li n'|Miir ami Hatin- 
 fai't'irily |ii rtnrins tin- mimvii'iih aluri'Maid tn tlif hatiMl'actinn uf tin- (tnvt-rnniiuit, a 
 siiltsidy at till' rati' iif .SI7<>,*»(>- |»'r annum MJiali Ko payaMi' tn tlir ('iim|iaiiy at thii 
 I'liil itf t'ai'ii lialf yrar in instdiiniiilH uf ><H.>,;;u| ; it lifiiiif I'Xpii'Hsly umltirNtiind 
 ami auiiu'd, liuwi'vor, that, nnih snlisidy shall iml Im payahli' fur any piriuil during 
 till! H'lid twi'tity yoaiH diirini< which tlm I'linditimis hIidm- iiii'iitiinii'il luu,. imt hi'i'ti 
 coinplit'il with. 
 
 " (2.) Thf ('iiiiipaiiy sli.-iU ••iily call iipnn tin) (invurnuieiit nf Canada fur thu pa; - 
 niciit iif siii'h piiitiiiii uf till' Miiltsidv, pasalilc an afuri'iiiciitinncd (« hicli sii.ili imt in any 
 casi' I'M'oi'd till' aiii'iiiiit tln'ii due i<v p.iyalih'). as may In- r('i|iiiii'i| tu iiiaki' up (liu not 
 u.iriiinnK nf tin' iindi'rlalviii'^ tn si'M'ii pir o nl. pi^r annum mi tlm authmisi'il sharo and 
 liniid capital nf till' Cimipany (!j<r),rt(Ht,OiH)). 
 
 '■(;{.) Ill casi! the carninU'S nf tin- imdorlukinn slinuld I'M-i-cd .si'vcn pi r I'l'iit, pur 
 aiinuin iipmi thu afnii-uii'iitinin'd capital, the (.'nmpiny a„'ii'i's In jiay nvor to !lur 
 iMaji'sly'H (iiivcrnmi'iit nf Canada, niic half of tin- Hiirplim iirnlit Imyniid tlm .>*aid seven 
 p.r emit., until the wlmh' nf tjn' nuhsidy which may ihcn have hciMi paid tn thu 
 Ciiinp.inyHhall have licmi repaid tn iln- <invernmcut hy the Cmupany.'' 
 
 €()/>!/ of >' firf)ort <)/■ a Cnmrnitt,;- »/ ih- lh>,tn,-'<hl<: tlw I'rlr;/ ('„>ia<'ll, 'ipproi-rd hy 
 11 ix h'.irf/f>'iiry tif <!<)ff>'ni>r (.''-ii'i-a' in Coniiril on llf 'Mh Jiihi, 1^'.'-. 
 
 On a Uepnrt dated 7th .Inlv. 1HH2. frmn the .Minister of iJaiiw.ays and Canals, statini,' that 
 the Chi'-iu'cin .Marine Traiispuri U lilw.ay Cnuipany has inadu apphcatim. tn him with a view to 
 nhtamiii'^ line ve.ars extensinn nf the lime imw limited fnr the enniplotimi nf t"'e wnrks n ho 
 cnnstrucu'd hy the Company uiid-r the Cnnti.ct entered intn with the I epar mcnt ot H'^'l" J;^ 
 and Canals .,., the Itli March, I.HSi;. That the Cnuipany. in supprnt nt mucIi apphcatim. has 
 represented that al.-mt Tf. per cent. u. value nf tlie wrnks uu.leriakc.i '=vv;' -;;'; "''Y^'''^V^. 
 a. expenditure hy the Cmnp'tny nf hctweeii ^;!.0(.il.(H>U ,tiid .>^, (Kill, XMl : that U ^Mll 
 • pnr.^ •m-aiu,liim.ihillar,fu,therexpmiditurotncnn,pli'te tie works; thai the nperat.ons 
 , ,' 1 i works M'le suspended in the latt'er part of last year, and have not heon recmuincnccd 
 tla his suspension wasowim,' to the ■ ' -mpany's enntru'tms hmnu miahle ,n the depressed 
 s'ue .; the money market mnuse money on the Cmupany s s.-untii. ; ^^;^-^,^lX^^ 
 the further necessary capital to r. .'.muience and cuupl-.e .1... wmks '''•, ^ j; '1^.'"- '^i; ^^^^^^^^^^^^^^^^^ 
 and h.isnl.t.dned.autlinritv from I'arli.tment at its prese.i M'ssmn to is.sue ^ '^.^ ' ^"^ 
 
 Mni„a,.. 1! IslntI xu-ntnf £:!:.'K'''»''^';'''ln.^; tl^tthe l)irec...rsfi.^ a^^^^^^^ cai 
 
 npnii tlu'M. Uniids nl.ia.n ill.' re.pusHe ci,ina m • ..iiKte .he wn.ks . e J^> j I - 
 
 r:asnnahly certain that the time fnr the ^-^f^}^';;i^,\:^t^^^^^^ 
 
 fnr at leant one year from the time '''•- '^ :;,'/:;;, Z:^ ;,;.,,,:, .,f the works, as well 
 
 reuUS te nw 11" tn the line which has alreail> Deeli |n>I s.iui tm SI 11 - imli'ss 
 
 as 1... hat whi.l, must .UH.essarily elapse heforo tlu-y cmi now he r— " - 
 
 ,!.. (•,.i..p...y cm slin. that they have ''- --^^^ "j , ^^ ;;; ^ sZ / f V^^ ^ 
 
 ■;i\t:;rl::;:::;;;lj;;:r::nt:^:t'::a=^^ 
 
 tn eiide.avour to niise the money necessary nn I he new l.ni.d issue. 
 
 1 ,, , ; .M- ,,(■ till' i iii'e amount nf iirivalo capital 
 
 The Mini.ster under these circumstances, and ... ^ '•?\''' ' ' ^ 'j' ^ ' . . fact that the works 
 
 which appears to have been already investod in the Muks o " ;^' ^ „.,f.i,.e,seen 
 
 "I -• ' i '»• >•• ■■•-■>>• '■' ''••;■;'• ''''^a;^:::^:"";;.. t o i:;in r ^^r^i^r cap„ai ami t.. 
 
 eircum.staiice.s. ,iiid that .t wnuld appeal neie.ssaiv lu 'yiu ,,,„,,,,,as — 
 
 comiilete the wmks m have the ad.li.ional time asked foi, lei-omm.nas . 
 
 . ,. I .1.. til.. If'iilwav and aiiiiuiteii.uices iins 
 That provided that the works necessary to eo.uplete the ad^^^^^ Le (iovcnmr in 
 
 ...tually ill progress, and t'n /'-'"l-">' •■^':'': l;'';;!, to n" ml e.p.ip the railway, docks 
 Cnuiicil that I. has secured all the cap. al "-'■7;' ;, . ' ,1,, re,,,inrcments uf the Contract 
 
 .and other vvork« of th.e Company m "dl respects acioi.linj, to 1 
 
•i8 
 
 above nientionod on or hoforo tho 1st .Ttily. 1H!>4. and tliat an oxtensioii of timo to tho said date 
 for tho eomplfti.m thereof, is necessary, the (Joverninent at the next session of Parliament will 
 recommend to Parliament the le<,'islati.>n necessary to extend until the 1st .Inly, 1894, the 
 time within which to complete said Railway and appurtenances according to the said contract. 
 The Committee sulhuit the above recommendation for Your Excellency's approval. 
 
 Extract from >t h'eporl of the. Committee of the Honorable th-. Prii'i/ Council^ approved 
 hy //is ExceUency, the Governor General, on the 'I'lnd Mni), 1S96. 
 
 On a Report d ited L'4tii February, 18!Ki, from the Minister of Railways and Canals. 
 Kubmitfin^ for consideration the following approved Minute of Council, dated tho 9th July, 18!»l'. 
 
 "< )u a Report datcfl 7tii .luly. 18<>2. from the Minister of Riilw.ays and Canals, statin,' 
 that the Chignecto Mirine Transport Railway Comi)any lias made a|(plication to him, with h 
 view to obtaining one year's extension ot the time now liniited for the completion of tlie \Vork-> 
 to be constructe.l by the Company under the ontract entered into with the Department of 
 Rjiilways and Canals on the 4th of March. 188(). That the Company in .sup|)ort of such application 
 has represented that about seventy-live per cent, in valui" of the Works midertakeii havo 
 been constructed at an expenditure by the Company of between !?:!.<«K),(KM> .ind t!4,<MM).iMK) 
 that it will require over 81,<XU»,(KX» further expenditure to com|.]ute the Works, that 
 the operations on tlie Works wt-re siispunded in tiie latter part of la«t year, and have not 
 been re-commenced, that tins susfiension was owinj^ to the Company's cimtractxira bein<j unable, 
 in the depressed state of the money market, to rai,se money (ui the t'omjtiny's securities. 
 That in order to raise tile further necessary capital tore-commence and complete the Works, 
 the Company aj»plied for, and has obtained authority from Parliament at its pn>sent Session, t.. 
 issue first Preference Mortgage Hon. Is to the extent of f;!r)i».IHX» st.;iliiig That the I)irect(n-s 
 feel s.atistied they can. upon these Roiids, obtain the recpiisite capital to complete thest- Works, 
 provided they can feel reasonably certain th.it the time for the cr.mpletion of tlie Work will la- 
 extended by Parliament for at least one year from the time now limited, which is the 1st .Fulv. 
 181)o, that this extension is rcpiisite owing to the time which ha.s already been lost since the 
 .stoppage of the Works, as Well as to th.it which must necessarilv elapse before they can now be 
 re-C(mimenced. but that unless' th.- Conipiiiy c-\n s!iow that thev have the assurance of the 
 liovernment of fJanada that a Hill will be introduced and jji-omoted by the (foV(-rnment at the 
 next Session of Pirliameiit extending the time for the completion of tin; Works as above 
 mentioned, it. will be useless for the Directors to endeavour to raise the uionev nece.ssary on 
 the new liond-issue. 
 
 ••Tlie Minister under these circumstances, and in view ,>f the large amount of jirivate capital 
 which appears to have been already invested in the works, (.f the further fact that the works 
 apjiear t.« be so nearly completed, tliat the suspension of the works was owing to uuf.ue.->een 
 circuiHslaiii-es. and that it would ajipear necessary in order to .dit.iin the fiirtlier capital and to 
 complete i!k! works, to have the addirionul time aske<l for. recommends : 
 
 " That providi;d that the works neces.«tary to complete; the Itailway and .ippurtenances are 
 actually in progress, and the Coinp.iiiy establishes to tin- satisfaction of "liie < lovenior inCuincil 
 that It has secured all tiie capital iiecess.-iry fully to furnish and e-piip the ltiilw;iy, d..cks. and 
 other Works ..f the Coiiipaii). in all respects (i/jcording to the reipiirements of the oi.nlract above 
 mentioned, mx ..r ii. fore the first of .July, 18!»4, .and that an extension of time to the sai<l date 
 for thecoiiiplelion thereof, is necess.iry. the <iovenimeiit at the next session of I'arliaiiient will 
 recommend to Parliament the legislat.,.n nect-ssary to extend until the first of .lulv, 18;M, the 
 time within which to complete said Railw.iy ,ind appurtenances .iceording to the s.nd contract.' 
 
 The Minister desires also to refer t. tlie minute passed on the '21st dav of October, 18!»;;, 
 with reference to :iii application of tiie Chigiiecio M.inne Transport Riilw.iy <'ompauv, in which 
 the gram of any further ai.l to tie- |.roject of that ("oinpauv was rleclined.' and to call aftenti-.i 
 to the fa-t that there., u.-sts wiiieii were so dealt with bv that ( )rder of (\.uncil. was one for a 
 re arr.ingeinent of the sub.sidy to the project, which wouhl have involved a change in tii- 
 principle upon which the aid is granted, and that tho refusal in tlie Ord-r in Council last 
 mcJtlioued refers to that rcijUc.-t. 
 
49 
 
 Tlu' MiTiistor ()bser\-es that \inder the provisions of th»; biHt pfiragniph of the Order in 
 Council first hWovc citod, the Compm.y, hot'oro the tirnt of July, 1H!>4, souurod all tlio capital 
 necessary to fully furnish and ecpiip tiie Hailway, Docks, an<l other Works of the Company in 
 .•vll respects in accordance witli the recpiironients of the contract ahove nioutioned, and is now 
 ready and desirous to proceed at once to the completion of the said Railway, Docks, and other 
 Works, provided an extension of tinij within which to complete the same for tlie purpose of 
 the contract entered into with the Department of Railways and (!anals on the 4th of March, 
 lH8(i, he granted to thorn ; such extension not to exceed three yearn from the first of October 
 next. 
 
 The Minister further states that it appears to him that the delay which has occurred since 
 the i)assa«e of ti»e Order in CJouncil above cited, has been owing to circumstances entirely 
 beyond tiio control of the Company, who are bond ddi: desinnis of completing their undertaking. 
 
 The Minister therefore recommends that at the next Session of Parlianient, the Govern- 
 ment sul)mit the legishition necessary to extend for the period meuMoned aliove the time within 
 which to complete the said Railway and appin-tenances according to the said contract. 
 
 The Conunittee submit the above for Your Excellency's approval. 
 
 Extrart from a /i>'p'>rt of the Cominitte.e of the Honorable th: Privy Council, approved 
 by His EvrdUnry, the Onvernor-General, on the -llth January, 1898. 
 
 The .Sub-Committee of the Privy Council to whom the sul)ject of the Chignecto Marine 
 Railway Company was referred, rei)ort as follows : — 
 
 " F.rs/ It api.ears that in the year ISS'i a subsidy of .?ir,i»,0(»l) a year for a period of 
 25 years was authorise<l to be paid upon the construction of this radway, provided it was 
 completed by the 1st of July, 1HH!>. 
 
 '•.S-,.,-<„„/ In ISSC. a foriual indenture w.as entered into between the Otlicers of the 
 Chignecto Marine Railway Company and the (Jovernment of Canada, whereby the saul 
 Company agreed to complete the said road by the 1st of .luiy, !««.». 
 
 " nini In 1HS.S an extension of one year appears to iiave been granted by I™»"ent 
 counled with the pi^.viso, tha. in the event of failing to complete the road by the 1st of .July, 
 iS hM upJvshoud be allowed a further extension of tw.. years on cund.tu.n o payn^' 
 .riine of .s.-...l.>> a month to the .iovernuumt of Canada for each montii during which the 
 works remained uncompleted. ,. , r i 
 
 •' F. ,n-H, In l.HiH ,i still further extension to .July tlie 1st, IS'.Ki, w.as applied for and 
 grante! ;;; l'a,l!L...n; to the Company, and penakies incurred for delays amounting to 
 |!(1(>,()<H» a v-'ar n'liiittftl. . . 
 
 .. F^fiu. Subscpient t,. these extensions, tiie C.mpany ^-'^.^XJit:^:^ "2 ho 
 ,,,,,;„,..,„„„„ H. tie year lH-.:i for the purp,- ,. V^-^^^^^ ^r Sag S to 
 conditions on which the then .iove.nu.en m tiunr * f ' , /; ^''^i,,,; „^ ,,,^ ,,l,,ed 
 recommend a further extension, to w.t. that the \'''''l'' '>' ™\ ^ *|^^ ^j^^^^ ,,,,1 . lu.uld 
 
 theu.selves in such a tinancial position as to enable them 'M ' - ;,' , Ln,,/ S-..:!. nor was 
 also .how that a,..ual progress was being made ^;;7;\,;;;;' ^^ ' ,^;;:1;;:; ^y wah the saul 
 anv intunatioM -.ven to th.' (lovernment th, ^''^ * " I '; 'L,,,.,x f,om the passing of the 
 conditions until a period of tw- yeirs or tli 'reih.uts ha I .lap.tci i 
 
 "'^" ' nJ:;.. I, further a, ars tha, a ^^'^^-^^-1:^-^-;-,^::.^^ 
 
 ,.l,hough supporl,Ml l.y tho iat.. (iovernment. w.a, ^^■'''^2^'}f^':2^ 
 groun.l thacM renewal of th. charter miglu involve a ^ " ' ^ ^ ^ . ^^^^^^.^^^ 
 
 '. .SVr.H^/., Th.at the l.te ( iovernment did on th- -" , „f ■, V, ,,i,,i .,f tlie sa.d subsidy, 
 .,f ,.,,,i,„...,.,, pass an iTder in (•oui.cd agree.ng ^^: ^^Zt^^^^^^^ '^'•'■'ved at by 
 ,„., „.., .noh nrder, bein. 1--;^.-; ;,;;"; j';";;;;;; ,;'.:, t:;;':;iccessors much less ou the 
 Parliament can m m. way be reuat.ie.l .i-^ "",-„,':, „„,.i,. l,o decided." 
 I'.ui.am.M.L of Canada by whom such .p.est.ons must ultimald.v I.e 
 
60 
 
 The Sub-Coinmittco observo th:it it, would iippeiir tlioioforo, tluit so far fruni having been 
 rigorously doalt with, tl;e Company has roci'ivod ropoati-d oxtfiisions and havo faih^d to comply 
 with the stipulations agreed to by themselves in sntHeient time to jtermit of legislation in their 
 favour. 
 
 It would also ap[)ear that the late (lovernment were unable to olitain a renewal of the 
 Company's cliarler from Parliament, and throughout tlie several <Iiseussions strong protests 
 were invarialily made against furtlier extensimis, and that the Company were warned that such 
 applications would not be fa\iiurably regardecl. 
 
 The 8;ib-Committee, in viev,- of the altove recited facts and bearing in mind the altnnat 
 universal testinxmy of exjierts and practical men of ail shades of o[)inion that it is no lou'^'er 
 |)ossible to believe that this enterprise can lieeome a commercial success, under, any circmn- 
 stances, are of opinion that the scheme cannot be regarded as one of such [)ui)lic utility as 
 would warrant an ap',)lication to be made to Parliament for a renewal of the lapsed subsidy. 
 
 The Committee, concurring in tho aliovc report, sul)n>it the same for Vour Kxcellency.i 
 approval. 
 
 J 
 
 The following letter was sent to all the Members of the Canadian Parliament : — 
 
 Vhujiieclo IShifj liiiiluxty. 
 
 Rideau Club, ( )tuiwa, Sc^tt'tnlwr 2'3ril, WM. 
 
 Dkak Siu,^-()n belialf of the Britisli investors in the aliove enterprise 1 have come tri 
 Canada and ap]jlied to the Dominion (ioverument for .i revival of the subsitly to the Railway, 
 in oitler that it maybe completeil and opened for traffic. The cost t)f the W(»rk has l)eeii 
 8.'{,50i>,()(Ht which ha:! been entirely piovided by tiie investors without reci'iving a cent nf 
 public money, and has been expended for lal)our, for machinery, and l'i>r material ; nothing lias 
 lieen i.'.id out for any other purpose whatevei'. 'I'he {Railway is n-w about tliree fourtlis cini- 
 structed and could likely bi- finished in two seasons. The investors are in no waj' responsible 
 for the unavoidaf)le delays which havt prevented the works being completeil. 
 
 Inaccurate st,;itements have so frequently l)een made in reference thereto that many 
 erroneous opinions have been formed about the Railway. I therefore beg to enclose a 
 l)amphlet giving a firief account of the origin and position of the enterprise and respectfuliv 
 I'eifuest its perusal. 
 
 The present investors have suf»8cribe<l the cai>ital to comph-te the works, which will he 
 called up and construction re-commenced as soon as the Dominion Parliament }ias.ses the 
 ueces.sary legislat ion. 
 
 In reference to the trafiie prospt'cts I beg to refer y.iu to a letter of the late .Mr. Ketcliuiii. 
 C.E., the {irojector of the ItaiUay, on page •_*»; of the pami'liht. I am. Sir, your oliedient 
 servant, 
 
 (Signed) A. D. PKOVAMI. 
 
 Rearitig on rlic moral iind « iniiahlf liahilitv 'd' ( 'unada to tlu' Cuiiipaiiy, 1 
 beg to i|uot«' a {fw opinion.'* oxpiv.s-.iMl in dcharr : 
 
 In IN!)!, tin- ("omp:iiiy a|>|>litMl to I'/irlianicnt for oiif Vf.ir's oxton.sion of 
 time, and in rcftTtsnec lo this ait|ili'\itioii th,. H,,ii. Sir .loliu Ahbott said : 
 
 "It seems to me tiiat we are to a .jreat de'.,'ree Ixiinid in good faith D give thesi' 
 contractors tho opportunity of compleiin_' this work. ! do not, si>e very well how w- 
 could refuse them. 1 think a refusal to allow men wlio have spent tliree millions of 
 dollars to spend J:<l,.'»0(),oo<» more would work very unfoitun itely on our enter-' 
 j>ri.ses, when we apply to Knu-land to borrow money to tinish them with, and I think 
 it w.juld be an extremely hard measure to mete out to these contractors to .s.iy that, 
 not having completed their work witiiin th.,- jireci.se tune inentioneii lu the contract, 
 they shuuid be luulct uf so iariH; a sum as ilu-y iiaVe iii\ehleti m ii.'' 
 
51 
 
 The Hon. Mr. Power, following Sir John Abbott, said: 
 
 *' I do ni)t rise fur tho imrpfise of opposing the motion nf t.lie Iwulor of the 
 (iovernnn'nt, hecauso I cannul help fooling, us tlio hon. gont Ionian litis said, tiiiit the 
 faith of the oountry is pledged to this undertaking, and tho gontloiuan who have 
 I'harge of it have given the best evidence of their good faith in spending tiie large 
 sum of money which they have spent on the undertaking. T have never been a 
 believer in tho utility of the work, and 1 never thought it was a scheme which should 
 receive the inimense subsidy from the Ciovernment of this country which it is to 
 receive when completed. lUit tliat is a matter as to which my views were not shared 
 by the majority of this T'')use, or a majority of the uthor Hnnse. That being the 
 case, I thilik there woidd be im justification perha|)s in nur undertaking now to stop 
 the j)rogreHH of the work." 
 
 T]w Hon. Mr. Hotsford said : 
 
 "Tlie Parliament of tho Donuniou is pledged to these parties to assist them as far 
 as possible, and it would be a broacli of trust -in my opinion a breach of contidence— 
 that could liardly be justified ))y any legislative body." 
 
 "Tho money has been advanced by capitalists in Kngland ujem the faitli of tlie 
 Parliament of Canada." 
 
 The Hon. Mr. Howland '■aid : 
 
 "It would 1)0 very unjust nu the part <>\ tliis Parliament, after ;ui expenditure of 
 three millions of dollars ..n'tlie w..rk, to ste[) in and invvent its L'..iniile1ion." 
 
 The Hon. Mr. I'oirer : (in Frencli) 
 
 "I think it would bit bad policy i.. refuse tliis extension ..f time to a company 
 
 tliat has shown such g I faitli. a company wliicli has alna.ly ^pont three nullions 
 
 of dollars of its own capital on the enterprise, without demandmg one cent of 
 assistance from tlie Government a cmpany wliicli at tlieir own exiRMise will complete 
 the work if tb..y aiv not ..bstiueted. The Coiupany have to ask t..r rhis extension 
 through no fault of their own. The ditliculties in uliicli Paring P.ros. and other 
 Kn>dish companies l)ecHnie involved atlected tho enterprise. That they have lieen able 
 to continue their work shows tliat Knglish caiiitilists have cnutuleiice in this project, 
 especially in vi.^w of tho fact that the (iovernmeiit of Canada lias invested nothing 
 in the w.-rk. Tins road has been gra.led. the rails have been laid, and more than 
 two-thirds of th.- work has been d-ne. To refuse now to tl.is Cnnipany tho extensi.m 
 asked f..r wmild be something unprecedented in the history «f "ur U^islatK-n. 
 
 In 1S<)2 applirution was made U. Parliament tor powor to issue Preference 
 Debentnres for sntlieient capital to complete the work. On tliat occasion the 
 Hon. Mr. Dover said : 
 
 -Now, would it bo fair on our part to g.. back >M-".'l''' 'f -^';S''". ^';;;!, 'I;:;;^':';; 
 numt has already passed, and repudiate the whole tran^iction, -'";;' '^■;;^.^'\' ^ 
 have laid out some three million of dollars on the enterprise /,;";;, 
 in goo.l faith under their charter. They spent all then- own n.onej ■'''^.; ' J,; .' ■; 
 
 bon-ow, and did so much of the work that i' ''^ •^'<''''"^;'l^^''^ "'"'^ ^'^ '"l" T. n^^^^^^^ 
 been spent on it. Are we to deprive the parties ^.lio Uld -^'''r' ;-;;^-'-^.^'^. '^ 
 of their rights, which they will be practically depnve<l of it ''^" '''';^>/' '''!,, '^, 
 .„ If tin. railway is not Hnished the property is virtually ot ';' -> ^J , / {'X 
 U will 1... no benefit to the Company, and certan.ly 7'';^; ;' .'^V ."^^ ! s dven, 
 
 «• -y- •» •'-■••'-^ >'I-... -,.- --;;;':- U'r^rt^tdS'aciliJmJnnom 
 
 and that tins Company are permntcd .it then o„n \.ui ro i.u 
 
52 
 
 money, that will completo the work in sucli » iniiniier thiit it will be able to earn 
 Honiething ; at the same time, if they coninly witli tlie conditions of the olmrter that 
 they obtained from Parliament, they will bo entitled to the subsidy that the country 
 has jinniuscd thorn." 
 
 country 
 
 Thi' Hon. Mr. Ktuiibach said : 
 
 ♦ ♦ * "but we are in this position, that by our (.wn act wo have granted tic 
 charter, and induced capit»ilists to expend a Ian,'e amount of money -not money of 
 Canada, but money of other people brou-^lit int.. this c.mntry in the construction of 
 this work. Should the Company fail now in getting what they asked for, the money 
 would be lost to those peraons who have eml)arked in this undert>ikini' uix.n the fait'l 
 of the legislation of this country." 
 
 And on a subso(|iient occtision a few days later he acrain spoke the language 
 which I have cuJoted on page 40. 
 
 The foregoing could be added to by many other expressions of opinion, to 
 the effect that a refu.«al to re-instate the Company would bo unjust treatment to 
 the investor.^ who found the capital. 
 
 Printed by the Nati ..,^1 Pre« Agency, Limited. Whitefriftr. H<n»«.. C.roielito Htrwut.Londoii. E.G. 
 
)e able to earn 
 10 oli.irter that 
 at the country 
 
 /e granted tlu 
 not money of 
 onstructioii of 
 n; the money 
 iI)on the faitj. 
 
 he lu 
 
 uguage 
 
 opinion, to 
 .reatment to 
 
 tnuuii, ti.C.