IMAGF EVALUATION TEST TARGET (MT-3) m^ /> f/ .fi z 1.0 I.I Iff I'M m 1:25 nil 1.4 12.0 1.6 <^ % ^ o^ ^4 Gy^' Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 % iV iV :\ \ ^9) V 55%'> <3 Q> ■<> ' signifie "A SUIVRE", le symbole y signifie "FIN". rrata :o selure, 1 d 3 32X Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in ore exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The followiri diagrams illustrate the method: 1 2 3 Les cartes, planches, tableaux, etc., peuvent Atre film6s d des taux de reduction diffirents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, 11 est fiimi d partir de I'angle sup^rieur gauche, de gauche ift droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants iliustrent la mithode. 1 2 3 4 5 6 mmmm I ■ % (Srartb ®nmk fiailfoair of dfaimba* -%: VERBATIM REPORT OF THE PROCEEDINGS AT TIIK ADJOURNED HALF YEARLY GENERAL MEETING, HKLD AT THE '^ LONDON TAVERN, BISHOPSGATE STEEET, LONDON, On THURSDAY, MAY 30th, 1867, IN P.DRSUANCE OF THE FOLLOWING ADVKUTI8KMENT : — Notice is hereby given that the Adjourned Half- Yearly General Meeting of this Company will be held at the London Tavern, Bishopsgate Street, Loudon, E.C., on Thursday, the 30th Inst., at One p.m. precisely. By Or 1 4 ti- ''§ 5?iS2 It % (Srantr Crunk |biltoag 0f Cartaba, VERBATIM REPORT OF THE PROCEEDINGS OF lUB ^bjourneb §\x\l])mh (general gteijtmg, HELD AT THE LONDON TAVERN, BISHOPSGATE STREET, LONDON, ON THURSDAY, MAY 30tU, 1867. E. W. Watkix, Esq., M.P., President of tlie Compuny, in the Chair, The Chaikman, in commencing the business, said : I think it will be convenien.% be lore I troulle vou with a few obser- rations, to ask Mr. Grant, the secretary, to read in crfenfto the report which we have sent out, to refresh our remem- brauce. M The Secretaky then read the Directors' Report of the 22nd of May last. The Chairman then rose and said : I will ask your attention for a short time, while I endeavour to explain a I'ttle more in detail tliun it was possible to do within the limits of that report, tlie reasons wliich have hiduced the Committee of sliare and bondholders, and the ])ircctors to lay tliis financial scheme to-day before you. I shall ask you to be good enough to direct your minds to the report itself, and not to any of those anoiiyiuous criticisms and stutemenls which, unfor- tunntely, certain parties connected with us are always so fond of circulaling. The object of the proposal is to increase tlie net profit of your undertaking. We have reported to you on niauy former occasions that we were approaching the point Mhcn the amount of plant at our disposal was insufHcicnt thorouglily to develop the traffic which the country alfoided, and therefore to maximise the amount of 4 Repoft of A (Ijourind Met Uny, h2. Tlie Secuetaky read the » hiuse, which runs as toUows ;-— " The company mav, from time to time, raise, by tlie creation and issue of bo^ids/any sum or sums of money notexceednig in the wliole five liundred thousand pounds sterhng, such bonds to be called equipment mortgage bonds, to be redeem- able at ])eriods not exceeding fifteen years from the thirty- tirst of December, one thousand eight hundred and sixty-one, and to bear interest not exceeding six per cent, per annum, and to constitute a first charge or hypothec, both for prm- <;ipal and inter(>st, uptm and overall tlie company's railways, works, rolling .stock, and other plant, prior to aH ^'ther charges of hy])othecs tliereon, and the money so raised shall be applied to' tlie ])roviding of additional sidings, wharfage, station and storage accommodation, elevators, rolling stock, and other plant, orU) some one or more of such objects." The Chairman continued: 'JMion, gentlemen, if you authorise us to-dav to go' to rarlianient for this optional measure we should' exactly keep that (dause, but we should add to it the further words:— "That in addition to this .security there should be the ])ostal and military revenue as further security for these equipment mortgage bonds.'" That is to say, the equipment mortgage bondholder would have every security he has now, and in addition the £40,000, £50^)00, or £00,000 of revenue which now must go to one particular class. Therefore the position between tlie two is this : The postal and military bondholder for 12s. per ccnt.^ more than the average, gives up entirely any increase of revenue beyond that, and throws into the common pot the special security he has got, taking, in point of fact, 7-17ths, instead of*^ the whole of it. Let us assume for a moment that it is £50,000. At present that £50,000 belongs to him and to no one else. It is now proposed that he shall throw that £50,000 in the general pot, and take his share, which would be 7-17ths instead of the whole of it. The equipment boudh<*ldcr would h;ivc thai luvge amount of It Rfljwrt of A'ljonriiril Mrdutij, Jul. I M,iy ^i.)f/t, I8(i7. 7 revenue thrown into his security, but the amount of the honds would he increfiscd from i;r)(»0,()OO to 1 1,700,000, To tluit extent tlie total interest upon tliose oquii)nient bonds would be duniii«>od, providing,' Ihe not i-ovenue did not increase ; but hero let mo cull your attention to the initial point. First, it is necessary to increase the net profit ; secondly, that can only be done by addition to the plant ; and thirdly, that can bo done only by additional capital. That brings us to the point that if wo are right the increase of net revenue will be so large tliat the position of the equipment bonds must clearly, in every sense, bo improved and benefited. With regard to' the first preference bondholders, I say, tlien, that the increase of the net revenue of the line must in every way be to his ad- vantage. Tliat is almost a self-evident proposition. To the other classes of bondliolders it is of vital importance. I would appeal to the first preference bondholder to consider for a moment that, although no doubt he is entitled to his interest, and to object if he thinks he is to be burdened with any prior charge either certain or contingent, that this is a concern in which wo ave all partner^, and if anything can be done which, without iniuring hin\ will benefit the rest, I think lie is bound in good feeling aui! kindness to make some littlo concession in order that it may be done. I think the first preference bondholders will look at the matter in this light. Now, lot us see whether two propositions, very material to this argument, are correct or not . One is the anticipation in this report that the postal and military revenue may in a reasonable period, say of five years, increase one-half in excess of the inctnne of 18G6-7. In that case it would, with the £30,000 now paid to the equipment bondliolders, amount to £102,000 a-year, o.r to a sum per annum just equal to what would be the interest on the total amount of tlie equipment bonds if our scheme wore adopt(>d. In that case, what com- plaint could any one make, five years hence, of having a pre- l)rcforence ])ut over him ? If we are wrong in our calcula- tions show us how; but if we are right, I wish to know where, five years hence, there will be any ground of com- plaint whatever ? Let us now look to the "intervening period of five years. There was a proposition made, and I was ready to entertain it, but others took a different view, that this increase of interest to the postal and military bonds should be suspended for two or three years, so as to give time by the construction of the Intercolonial Eailway to make it absolutely and entirely certain that the increase of net profit w*/u3d be larger than any increase of interest on tha^c new 8 lit port u/'Ai/JuonuU Mtititn/, /ah/ Mu:/ JUI///, I8(il boiuU. Hut let us look at tlu; iiitcrvciuu^' period. Are we to suppose, it' we get a supply of nmv enginoH and curriugcs, and Clin do moro truiRc, that the revenue is to he stationary ? We cannot suppose anything oi' the kind. Any gentleniau may make this calculatioii for himselt'. Fiook over the ac- counts of our i'Jiglish railways, and you will find that every engine worked earns in gross revenue twice its original coat; and taking tlie English rate of working exi)enscs, r;ither more than it8 original co5«t every year — that is to way, if an engine costs .t':^,(JUO and you divide the total traffic hy the number of engines, the result will he something over £1,000 of gross profit and something over £'2,U00 of net profit. Take your own accounts. You have 2!)H engines, so }ou can make the calculation for yourselves ; and you will find that each engine, in gross money, covers about twice its cost, and in net money it covers its whole cost in 14 or 15 months. Now if you throw 50 engines into the concern at acostofi!'2,00()eu(di, it seems pretty evident that it must increase your net revenue. Tt would produce something like£no,000or£100,000 a year; }«kI tlierefore the thing to my mind is obvious that providing these engines must result in u large increase of the net in- come of the company. Therefore, I don't think that for the intervening period there need be any cause to feur. IJut, gentlemen, going back to the proposition that it is necessary to increase tlie net profit, and that the increase can only take ])lace by larger means of carrying ti-affic, all we have to say, us aboard, is that if any gentleman can show a better scheme than ours, we are not wedded to our own proposal. The com- mittee we consulted represented something like, with the holding of the directors, £4,000,000 of the various holdings of the company, and therefore they wore not likely to be pre- judiced, or to do anything rash or dangerous to any one. But if any gentleman can suggest a better scheme let us have it discussed to-day, and if better we shall be only too glad to adopt it. In addition to that T am instructed 1)\ the directors to say that, so anxious are thoy to avoid the slightest matter of complaint, that if there Avere, not a majority against the adoption of the report at this meeting, but if there was a decidedly expressed opinion even from a minority that this was not desirable, we should withdraw it, and should not imder the circumstances contemplated go to the Canoflian Tarliament. Our only desire is to pay interest on «'very class of the bonds as soon as we can. We have sug- gested the mca.ns and the machincjy for doing i(, and by which 1 i lltpoH of AdJuui'HHl Mtttiny, h4d May 'mit, 1807. \vi' bt'liovo you will bo »h\v to rais." tlio nrccssiiry oapitiil. < usk ^ou whctlu'v you coiinir with us in thinfdiig this luodo (Icsirublo. If you do not, let us postpone this scliomo Hiid wait to wutch the devohjpinent of events in Cuniida, hoping that the construction of the Intercolonial Railway may throw sotne light on our uffain<, and show ud vantao-es which wo do not at present see. But if you, on the other hand, tliink that this scheme which wo have so carefully oon- MideuHl is one which, on the whole, meets the case, then we ask you not to adopt it, but to permit us to obtain permissive legislation. What we further propose is that if that legis- lation is granted by this, the Hist Parliament of confederated ( anadii. tiiat wc shall bring the bill to you here and invite your considei-ation of it by each class of 'bondholder separately, (Hear, hear.) AVe propose that a majority of three-fifths of each (dass, taken sei)aratcly, shall be necessary before the bill c(.ines into o])oration. What other course could be taken ? If we had not brought a financial fichcme 1 fore you, under .uch circumstances, I think we sliould have been open to blame. Now that we have brought such a scheme before you, it IS for you to discuss it and to advise us what is l)est to be done. Let us then act together in harmony in carry mg out that which is determined to be the best tiling to I e done. In order that no mistake may be made and that no man may have any grievance or complaint, we say dis- tinctly tluit we will merely get permission to do this. We will then call together each class of bondholder to look at it with the eyes of his individual position, and to say whether it sliall be adopted or not. Under these circumstances, I do not tliink I need trouble you with any further observations beyond this single word, that, of course, if we get power to raise this money, we do not i)ropose to lay it out all at once. V\ e sliall do It gradually, feeling our way and increasing the plant in proportion as we see the net profit increasing day by day. We are not going to rush into any speculation or take any course w liich is not a cautious one. ^Ye shall care- fully watch the development of net profits, and throw in an additional snpply of plant as wo see additional traffic requir- nig It. The resolution I shall move is as fcdlows. and I may here say that the words are somewhat altered from those used in the resolution of the commiltee. A SiTAKErioi/nEK : Ihit before reading the resolution will you say why you propose to change the name of the com- II 10 lleporl iif Adjmmml Medimj, held 2I«y 30/A, 1867. Tl,. riiMUMAN ■ I will do so, but perhaps having gone so f -^ ill hn f, WI to settle this matter first. The resolution I^Ihalmovtritk altered from that stated in the report, Ltl to sle of the words there causing doul.t m the minds • ,^,! onui»ment bondholders as to their present security. f A^.Z ri'eadin" over those ™rds that they wore liable o'thTtargro^nSt? being sufficiently definite, and there- ^-.^&^^^rbe"^rdCi"«.^^^^^^^^ of the CanSn ffilamcnt lo convert the postal and military bonds ^;ril,200.000, into equj-nt ™»*ff ,''™^^^^^^ ^^t -^tlll Cring 'a^fiie^'rat of'Tte^est'lf [say) six per gage bonds bcaung ^^ £480,000 equipment Zl^tZ ;^^res of the company : «- whole jssu^^o ^tritrnoSted by the equipment mortgage bondholders security possesseaoy i g ^^ ^ ^^ "".ftbitefifhs hi value of tho postal and military bonds, ''°l „/ .tee'fiftbs in vVe of each'elass of bonds and stocks rt— d" — Uy or by progi "' "/-l^S ^'kS°Sution now entirely carries out ^'ta' ^ '-^ . : 1 Tf it is passed, we shall have made I think a fair, • indbenSl settlement with the equipment bond- just, and O'ntmi, ^Vo shall have got power to raise holders, m your inteiebts. \ - t,,„\„icrtaking, and £480,000 to '»7|;^;;t:tlwf most valuable and Sseful ■ '^'tTdt; tflure'one undertaking. Sow, the other "f • f we m-ono4d n the Bill was to change tho name of object we Piopo^jo. ^^^^^^^ ^,^^ _.^,,^^^„ ^^j the Company. ^1) ™ .„^, intercolonial Railway will We do so fo. tins le. o ^^_^^ ^ "S there «m be an entire unbroken link of comniunl- )s opened theiewiu u . , ,■ to tho western boundary eationfrom ^ddaxj ^^^^ ff ,^^,, ,,ned Canada. The of Canada llie^lK^^co^)^^^^^,.^.^^ and Upper and names "^ ^«^.%^';°^'VcW^ are to be abolished. The :• ::^f^e:;rtd J^,:..'^^" ;;ieccs .. rai,way_ one % one so »lution i-eport, minds curity. 3 liable there- of the bonds, a rate b mort- six per ipnient ssuo of ).— The me and [holders he con- T bonds, i stocks pecially )lied for iin Ruil- I huvc k a fair, it bond- to raise ing, and id useful he other name of on why. way will 'hen that omniuni- boundary da. The pper and ed. The atinent is ler these svav — one Report of Adjourhcd MediiKj, hid May 30t/i, 1867. 11 the Intercolonial, another the Grand Trunk, and the third the Buffalo and Lake Huron— to call the whole thing the Canadian Railway, adopting the name of the country. I don't say there is any magic in the name, but 1 tliink it is a more modest and appropriate title, and one which will cover the whole undertaking. I tliink on the whole you will not think that to be an unwise proposal. I will now move the resolution whicli I have read, and I am most anxious to hear the observations of the bond and stock-holders on the question. ^Ir. ViLLEJJOisNET thought that information should be given to the meeting as to the £25,000 advanced by Messrs, Baring and Glyn. He wished to know on what terms that sum had been procured. With respect to the proposals sub- mitted to the meeting, he had heard similar arguments used by the chairman on many former occasions. The share- liolders were too old and experienced to imagine that the raising of half-a- million additional capital would bring traffic to the line. The proprietors were willing to exercise forbearance with respect to the receipt of dividends, but for- bearance had its limit, and he did not see how the Company was to be extricated from the diiliculties surroundino-it. He did not think the traffic of a nature to require any increase of capital. (Oh, oh.) Mr. Smith accepted the invitation of the chairman to discuss the question before the meeting in a fair and liberal spirit. Ho hnd sufficient confidence in the board to believe that they would not recommend the step they had unless they believed the new capital to be imperatively necessary. He coidd not, however, concur in the pi'oposition submitted l)y the board, and thought it would be exceedingly unwise to go into the market proposing to rai.-e i:500,00(r additional capital, when they showed that the issue of these bonds Mas connected with first jireference obligations, not for one-half — but for one and three-quarter millions. He thought it would be ii tinancial bluuflor to do that, as they wouFd not in such ease be in a position to sell the £480,000 equipment bonds for the same price as if they formed part only of one million of equipment capital. The proposed departure from the Arrangements Act of 1862 would, in the present excitefl state of the public mind with respect to railway property, be exceedingly unwise. The postal and military bondholders obtained more than they had agreed to take bv virtue of that arrangeTuent, as they got tJie military as well as the postal receijUs. and \\\v\ had them secured to them for ten in'^tcad 12 Heport of Adjourned Mniiny, held May mh, 18G7. D V ix ,rnnv« mo 110.) Hg protested against any of lor five years. J^f^^J^L. He did not entertain any foolerieT ^S over, and the Confederation scheme was tooleries >^cre ov , increase. He not 7L ylt romethfng like 3 per <■-*, -^ '''nrXg c,^^ fn mvp them a first claim on the Oompan}, taKing ?h r bond LmUiem at 60. The first preference bond- holders were entitled to 6 per cent, but taking only 5 per .Pnt that security is now worth in the market only 55 , >et thev were asked to give 60 for 3 per cent secnrities, which sSies were to be placed before them. After having with gre^leli^^^^^^^^ coL to aiul adopted every sort of eo^pr^^^^ mise thev now found some Bens ex machma put up to intei ?Sie with\he existing arrangements. It was said that this was To be only a permissive bill, but they all knew what Tis meant in railway legislation. A permissive bill meant of nourse would liave no objection to it. It w.is a very fc,ooii arrargement for tlieni. He' felt satistel tliere was consulcr- aWe danger in disturbing tlic existing a™"^':™^-'*' ""^if?" confided that by adopting it tliey would ^^ot only stid ify themselves, but be sanctioning a '^'\^''^''^fZtT^n financial measure. He proposed, therefore, to move as an ■micndment, "that the proposal to convert ±,1,200,UUU postal "Id Sry bonds into £720,000 equipment bonds be not '" AFr Clifton seconded the amendment. Mr MoxoN would have been better pleased if the Direc ors had mendoned the names of those S-tlemcn who were c^^^^^^^^^ upon to act as a committee and center with the 1^ ^^^ ^r , 'id who had sanctioned the proposal now before the meet- r Tnd would like to know the amount and description ot ^r^iidi they held in the concern, ^J^^^:^ u-entlemen who had any expenence m raihvay managemeni. ¥ equ'e concurred with Mr. Smith, that it was -ry d.uigo - ous around which they were now treading, and thought it ous g ouim will i ^^^^^^^^^ ^^ postponed until the would -ju oetiei inai. uii- i! ^ i „.;,,i,iiw, 'ihlp to regular meeting in October next, when all Mould be able to s 1 r I M t any n any made •"enian B was e not Iso to vorked le last w pro- taking bond- r 5 per 5; yet , which I OP with omx)ro- ) inter- lat this w what L meant ) settled rs, they, ;ry good onsider- and felt stultify I unjust TQ as an )0 postal 3 be not Directors ire called )irectors, he nieet- •iptioii of they were lageraent . y danger- hought it 1 until the )e able to liepoH of Adjonriml Mcrtiny, held May -iOf/t, 18(>7. l:i know more ly the position in which they were placed. (Hear, heti Mr. Han said that he held some equipment mortgage bonds, and liud been induced to purchase them by a state- ment circulated with the prospectus, that they were a firot and prior charge to all others upon the railway and works, rolling stock, and other plant. It was upon the faith of this statement that he had taken the bonds, and but for that he would not have invested a shilling in the concern. By the proposal now before the meeting this priority and security would be entirely taken away. Another reason which induced him to take the bonds was that the whole amount of them was comparatively small, but he was now asked to admit a large number of other persons to come in and share with them. (Hear, hear.) He thought it a mosb unreasonable proposition. If subsequent bondholders were willing to admit this new priority over them, he of course had no objection ; that was their affair and not his. He thought that their position sliould be strictly maintained. Mr. CoNYHEARE objected to both the principle and details of the measure. The only redeeming point in the proposi- tion was that each class of bondholders was to have ihe right of expressing their opinion upon it, and it was not to be acted upon without the sanction of three-fifths. He objected also to the arrangement of merging the postal and military bonds into one larger sum, and would have preferred that they should have stood alone to tell their own story. He dissented from the proposal to change the name of the rail- way ; and to adopt that suggested by the board would be to ignore the existence of the Great Western Railway of Canada, which was a well-conducted line. Mr. Dlckett suggested that before carrying out the pro- posal the board should apply to the Canadian Parliament to see whether they would not take the concern off their hands altogether. (A laugh.) He thought that such a proposal would test the sincerity of those who were in tlie habit of expressing such sanguine opinions as to the future of Canada. Mr. FiLDES, M.P., conctirred in the suggestion which had been made, postponing the decision upon this subject till October, as by that time they might be in a position to deter- mine what better course to pursue. One of the speakers had said that the meeting ought to have some information with respect to the traffic whicli was to be obtained in return for U Report of Atljonnii'il Mtrtlmj, hi-hi May 'M)l7i, 18(i7. this expenditure. If ho had read ^Cr. Ih'vdges' ^port he would have seen ample evidence on this point. He (Mr. Fildes) always looked upon it as a good sign when a railway wanted additional rolling stock. Increased business and traffic in the case of the Grand Trunk meant increased profit. In the past five years the traffic had increased 47| per cent., while the working expenses had decreased 19 per cent.,lcavmg of course a very considerable profit to the Company. Mr, Bryd'^es gives in his report his reasons for believing that with increased rolling stock large additions to the revenue might be obtained. The only wonder to his mind wa5 that with such insufficient means at his disposal the general manager should have been able to add so largely to the business carried by the line, and should have been able to reduce the working expenses from 79 to 60 per cent., and increase the profits by a sum of £347,000. If they could hit upon some plan by which they wouhl be enabled to raise capital to provide rolling stock, and with the traffic of the Intercolonial Rail- way brought upon the road, with the agreement just entered into with the Great Western of Canada, which would largely help the traffic of the Grand Trunk, he thought the result would be most satisfactory. If they would not provide rolling stock nor the means by which they could be equipped, they could not complain if the working of the line should be unsatisfaclorv. The Directors might fairly reply to any complaints upon that head, that they wanted rolling stock and they refused to give it to them. If the means of doing the work were denied to the Directors, it was not possible for them to make dividends for the proprietors. (Hear, hear.) . i i »r Mr. Newmarch, referring to the observation made by Mr. Smith, said that that gentleman was not quite accurate in his statements respecting the Arrangements Act of 1862.^ It was a distinct part of the scheme that the postal and military revenues should be given to all classes of creditors. The arrangement was that they should take a certain number ot shillings in the pound of their claim in these bonds, and for the"remainder a certain number of shillings in the pound at a certain price of fourth preferentie stock, and that in return for these the creditors should give up a certain amount of the Company's securities which they held. With regard to the disturbance of the settlement of 1862, it should be°borne in mind that when that settlement was eomo to, nobody expected ;i civil war in America wliich wouhl last four or hve Report of Ad jour Hid Mn'fhuj, hvld May -'iO///, 1807. 15 years. It was llmt whicli had disconcerfed all tlio anticipa- tions and finances of this Company. He was quite within the mark when he said that nearly the whole of the money which the Company had received from equipment bonds had been as good as lost to the Company, not by extravagance or neglect, but by the loss incurred on the American exchange. The working capital raised five years ago had not been capable of being applied to the purposes for which it was intended, be- cause the American war had inflicted loss upon the Company t T'Alll'^^^' "^^"^^^ P^^^* ^^« that when the scuttle! ment of 1862 was made there was every probability, looking to the negotiations then in progress, that the Intercolonial Railway would have been commenced in 1863, and ^>-ould have been finished before this, and in that case the Grand thTvlr ar "'^'i P'"^^"'' ^^'^'^y ^y *^'^ completion of mat work. (Jlcar, hear.) Mr. Creak had some difficulty in understanding the position of the question before the meeting. If he voted tor the amendment of Mr. Smith he should be dealing only witli one portion of the scheme proposed. If the Z'^i iSn Ir' '""""? '^ '"^"^^ "°* ^^ Po^^^i^lc to raise the £480,000 required, and if that could not be raised Avhat then would l)e tlic position of the Company ? It was all very well for gentlemen to come down aid propose ainendmcnts wliioh would throw directors, who hid con- sulted together upon tlie subject, upon their backs, and not suomit any otlier plan for their approval. (Hear.) • • '• ^'l^TJIo'^-^P^'^"^'^ *^'^* ^'^ ^«^^ no objection to the nnsing of £480,000, but he objected to mixing the scheme up Mtli one for the conversion of the postal and military bonds as pro])o.sc'd. •' Mr. CjtEAK in ropiv to tlio explanation, answered that it vas nnposs.blo to raise £.-,00,000 ou equipment mortgao-o 1Z9 "r".!'r. t^^*T;vere prepnred to alter the arrangenient of 18bi. If tins could not be done, was Mr. Smith piepared to take ei^iy penny of net revenue until the Companv M'ere supplied with a sufficient amount of rolling stock, and the ime put into good working orcVr ? (Hear, hear.) If he wonlrr;. ^u^"'"^ ^"' ^^''.*' ^' '^''^ ^^* ''^ ^^-^^^t' advantage would losult from negativing the pro])osition of the Direo- Wn./~ • l'^ l^yoposal were rejected, he should certainly lohlers unti the Inie were put into thorough woiizin^j order. (Hear, lioar.) ^ IG Report of Ailjuuruf^d MrtHtnj, held Mtiy -jO//'. I'^'J/. Mr. Thomas Bvring, M.P. : T do not wish to anticipate any answers that may be given to tlie questions that have been asked, as they will be given much better by my hon. friend the Chnirman. I only wish that the meeting should perfectly well understand that the present proposal is not one submitted by the postal and military bondholders. I believe their interest would be not to adopt it. I do not think there is any con- cession to the postal bondholders in the proposed arrange- ment, excepting the conversion of what is now an unsaleable into a marketable security. They are, to a certain extent, sure of the same amount of dividend, which you cannot take from them or lessen. (Hear.) Their interest must be paid, and in this respect they stand in a better position tlian any other class of bondholders. Mr. Smith has stated tluit the postal and military bondholders got more than they had agreed to take. He said they were, in the first instance, postal bond- holders, and were not entitled to the military subsidy. It the hon. gentleman will refer to the resolution of the com- mittee, he will find it there stated that " both the postal and military subsidies should be set apart as a means by which relief was to be sought from the burden of judgment and other debts/' and I find the name of 3Ir. Smith attached to that recommendation. I think, therefore, it was a mistake on the part of that gentleman to say that the postal bondholders had got more than bad been agreed to give them. (Hear, hear.) If we are all agreed ihiit no more money is wanted, then I think we are quite right in negativing this resolution, or any other which is proposed to raise money ; but if they attached confidence to the report of Mr. Brydges, it was clear that our traffic receipts and revenue could not be increased without further outlay to provide additional loco- motive and other stock. How is tliat to be provided ? If you can raise the money by other means, I sliould like to hear what the plan is. I do not attach any particular im- portance to the plan now proposed, and shall be happy it you can raise the money by any other means. If we can raise the money wanted, then I think the meeting would be per- fectly justified in not accepting the proposal submitted, and the Directors would be quite willing to exclude any arruuge- ments with the postal and military l^ondholders. One_ gen- tleman has suggested that we should postpone the considera- tion of the scheme until the autumn. If we do that there can be no in;^!';^"ki-"M-lKul not been bcnefito,! be'ulj'uth"^' "^' "^^'^'^' ---'l-'^tion or the question Mv. (YiFTox s(>,.ouded tlie amondniriit. :^rr. Samshuuv (.onsidoiT."io; to rarliament to alter thc^ A.-t of n T". 't '"^-!f^ -'' '^''^'"y *'^^ ^'^'^l^t of ihe Company (OlV olM riie ( hainnan had said that If they ea It that were so, lef them send a mirion engines by all means ; they would soon get rieh. A X h not see where the traflle was to come l%om for this ne v rollmg-stock he approved of the proposal lor adiournment m onler to enable the DIredors to^ubmi, some doiXr^i^ Captain Tyler, RE., said tliat he was one who liad re- een-ed an mvitation from the DIreetors to meet and con er uith them and m reply lo the gentleman who had asked what were the hoklings of the persons who lund been i suited, he sated that he held more than £11.000 of L'd preference^ bonds, m addition to some other small amounts 18 Report of Adjourned Meetiixj, field Mai/ SOf/i, 1867. When the subject was under disnussion, ho expressed an opinion that so'far as the market value of the VJovfy^^H concerned it was really in a worse condition han it ever was^and he stated that in his opinion it was not the time to create any preference charge in any shape or way. At tiie same time he could not see how the money which was xC- quired could be raised except by the plan now Proposed and the question before the meeting practically was whetliei it was most desirable for them to have the money or leave un- disturbed the settlement of 1862. The Chairman : I do not think we have wasted time in ventilating and discussing this subject as we have This is a proposition not, as has been said, of the lioard of Directors alone, but proposed m accordance with your own suggestions when we met at the half-yearly meeting. Therefoil, though your Directors do not in any way seek to shirk he responsibility under which they ought to be for any proposition laid before you, still they wish to re^ present that they have taken every means to get the best an ^ost impartial counsel in discussing the subject, ^y friend Mr Moxon has asked who the committee were, ^e pio- ceeied on the principle of taking thirty of tj^e largest hold^^^^^^ of the different kinds of stocks ; and I stated that the total amount of money represonted--! find that every stock of the Company was about equally represented--was about £4 000 000. It was a most impartial representation, and ot those gentlemen who were summoned J.^^f ^^^f^^^^'i r'"i .f attended. It would not be right to divulge the holding o any particular gentleman, but I am ready, if Mr. Moxon wishes, to show him the names of every one of those gentle, men, and the total amount of money held. If I ask him to look over that list presently (handing Mr. Moxon a paper), Ue will see that it contains the names of gentlemen about as s^ibstantial, and as able, as any tliatcould be named (Hear^) Now, with regard to the scheme itself, I think it has been, .renemlly speaking, admitted, though one or two have taken a contrary view, that it is necessary ^^'YT^L^'^f^l of plant available for the development of the traffic ot the conipanv. Two gentlemen, who rather entertain a contrary opS,^doubt whether the traffic is there. But will any practical man toll me how you are to have traffic first, and have the plant to work it afterwards? Are we to get a pn«sene-er to come and build on your Ime m the hope^ that it will be able at some future time to carry hnu? tan you Mqm't of Adjourned Meeting, held May 30M, 18G7. 19 usk a man to store his corn, and wait till ymi ffot engines and waggons to carry it away for him ? Or a?o vou not rather to watch tlic progress of your own VrnffiJ seo wW TgottnTr -"^ 'tl T'^'^ wheiValTneclL may bt got, and havmg satistied your minds on those points n-et the means of doing the work there is to do? (iFSeai uecause Ml ViUeboisnet seems to think I don't know anv thmg abou the aflairs of the Company. (" Hear hear^' from Mr. Adams ) Mr. Adams seems to sympathise wiih hat remark. (A laugh.) But really the^D&ectors hud raffic rT.orY^^ T"^ '' ascertai/ whethertte" wis bv read^L fi ^""^ ^'^"^^ '""^? '""''S^'^ "^^o this matter five vear? f ^^ures representing the progress of the last If you find ff.'.;f in 1 '^' '"'" "^' '""'''^'^ '' remarkable, traffic 47r. ^'^^ ^T' ^^^ ^^^ '""^'^^'^ t^e total t affic 47i per cent., you have a fair criterion of what the increase may be in the future, provided vou have M? ZZ' '^ 'r^ *^": ^^^^■^- I^ut^ve selt'^over f; Mr Brydges, and went into the question with him. He made a report, which was sent to every share and bS olde Mr. Brydges attended here, and after a three hoS diW: Hion, I main am that the whole subject was turned up kle \Zl 1 I l^avc every conhdence-from the figures whicli I X f'p^ 'f""''''} *;',"^^ ^^^^^ »^y knowledge of the t^i affic of Canada, and of the ' through business,' which is so urgently and persistently pressed Spon us— thnf A,! \\ vuling of ^20l),000wortUfaddrtirUdHng!^^Ll'; vithm a reasonable time raise our weekly reSeipts-wWc tn-T^ an average of £;32,()00, or say, .€6,000 a week as agamst a rise of upwards of £8,000 in th^ last five years!^' It IS upon tliat carelul consideration of the subject, and upon that repor from a practical man who discusses he whSe bctore you. No one can accuse the board of having gone has ily or negligently into this matter, or of having pLosed a scheme to you,without theconviction that the traffic was theil provided we have the means of doing the work. I am not one of tho e who thinkCanada is going to be stationary, I believe tha? now tlie confederation is consolidated, Canada will be highly 20 llrowt of AdjoKmeil 2fn'tiiuj, held Mai/ 'M)(h, 1-S07. pvo-iessiNv in every scl^<^ I I'olievo tliorc is uow n rutuir bet'oro the Grand Trunk i.ud otlior undcM'takmo-s n\ Inch linve before been so nrofttloss. Tluit is my opinion, 1ml d cou.so ON-erv prcntlcnum can form hi. own. lUit hero nvo iKivobrou-l, a pbnn pniclie.l propu^llion. I tbink tb.o .^'roat niajority ol opinion is t1uitwoou;;'litlobav.Mnov«>pbn( m order to make a cinsiderable and in-ogrossivo iuldi; ion l,o the net rovonm>. Is ow the queslion comes, is tl.is nn opi)orlnne moment to raise iioNveapilal? We tell yo-i in ti.. rejxn-t Ih'it wo do not think it is an o^)portunetii.io to rai-e money, iiml we tell >nu distinetlv we do not propose to ritiM. money tdl tiie pn.per time. Wo merely ask you to enable us to -o lo ihe ( anadian Parliament lo -ei po^^er to dosowlu-n thelin.e is opportum'. lint we do not propose even then to doso, till we brin- the Hcheme as enacted by the Canadian Parliament, and eimMe you tovotein your soparatcclasses.anddeeidc- asyon please. I Uunk no scheme could be more prudent-have (vrea I er regard loi; the rio-hts of each class of .eenvity, or be brmi-lrt lonvard m u more fair and honest manner. The question is, Avhe ner yon choose to give vonr consent to tl,o powers we seek. Une .rontleman proiK.ecs we should udj.iurn the con^idei-alioiiot the question ; and Mr. Bmith's amendment goes to deul with that part of the subject which involves llie conversion ot the postal and military bonds. I don't think 1 could liouestU ask Mr. llaiikev uiid the other equlpjiicnt mort-a-o beiul- holders to -0 into the scheme, they knowmj.!; there was g..ni- to be a pre-preferc nee, unless tlie postal and miluary revcaiue was pari of the whole atirir. I beiiove that the postal and miliurv revenue will in a few years anionnt to as mncli ns the diilcrence between the £30,000 and ti>e£lt2,0u0. It that is so tliere will bo no pre.])ieference, and T don t think in that sense there will be. Jiut if that postal and nnbiary money is not bo thrown into tlie pot, li Mr. llankeyis m.t 1o be secured by liavhi- a cluiiu on the postal and nnlrtiiry as well ae the oViier moneys of the Comnany, 1 dmi t tinnk i on t of veil an iiie uiin;i jiiuji^_»- v^- <■— ~- ■ . ■ . .-, . m-ht to a.k him to go in wltliout telling Inra, m that ca.e .hel-emaybe a pre-preference. Thcyreloi^, it the iirst part of the resolution is negaiived, I shall aMC von m common iusti(.o to divide the cipiipment mortgage bonds into two classes. Ko. 1 and Ko. ^, giving ttie loviner to the pre- sent equipment mortgage bondi)oloe>-s. l)nt ir you \m l allow us to make this arr.ngeu.eut and throw all the postal and military revenue into the same IJ^t lor the protecth.n of the equipment mortgage bondhohlers, Ii<;m-I 0/ Mjo.u;u.J MnUiuj, /„./,/ 31.,!/ W, iHCT. ^f ,t ve mob,'' '"'"" "n^^u.^cvs.ful, that point wo nu.t can l^: ! ^ • 1^:;;^^^"' ' ""'''''' ^'>' of t]io])ust Hvoyoars wlii;.], n. I) '"^ ^''*' ^•i'-<"'in«tan('o« "'-or- o, thron^b ao^^ . ^^ :'jf .f^^"?'/'^^'! 1 1-pe will ;-n very Lard and anii! Ltl ,/" ^le^u. ""^'j"' J? ^^''« think we can lioiu,, to a coikI o • ,i i ■ ' ^'^'''''' ^-^^^t f umur.. Even Iho.o i^.' a.^ ^o Uo-, ""P='«y-»-"t of you. with roo,a,i to the com o ,^ i •} ""^ '''^''"" ^'''^'^^ ^Inii^s t-u.t undo. on. Inan^!^;^; t ^l J^t'll^^ iT ^^^' ^'^^^^ Ims been protected, and that tbe X?voi' t ^^^^I'^■''r■'y ;.sma belter sialo than wh<.n w o J^"^, " ''^^^^^^^^^^ (Hear, hear.) I know ti.'.f i A .,. ^^'^ "'aiiaovinent. to do that, nofwith;^ acl :' h^.? """'^ '^ ^'^ ^'^''^ ^^^^" ^^^e the hard tliino.; whieli are eeeasio 'hv hi n '"''T^ 'T"" ^^ I qui e synipalhiso wit), iho ie ::t- Tt^'^^^^^-) J^ut 111 pi']\;ito a!)d in r)nl)lh. fl f "J- -liave made it myself I'ona and ^harelll 7 ! .^n hi '']^ '^r''''^ "n^ the the same yiews, iho bo d •, d b , i^^*' '^^ ^ ^^"^^ t«ko infusion of a li <]em- v' ' / f ''^^^''^''^'^'•' •^^^""^"l try the 1 yoii like, to imUo ;,Hv „llcT,ti,m ,■, n 1 ', '^"' ™onor 22 Report of AdjoHrned Meeting, held May 30///, 18G7. Tt is entirclva question of coiificlonce ; you arc the cotiBtituont b Mlv v^^i arc Yom- «crvunt«. When you tike to chungo you have u"lr is wheth^;-, under the -reumstuncos^ ^ are doin- a freat deal of work m cari7mg through trathc whicrfo's^ot, they think, nay sufficient proht-(hea^ hoai{- t mi.^ht not be possible to decline some of that tmffic I urn very anxiius that this question should be tkd satirctorify to the ininds of the ^ond and share holders. So I will tell you what I have done, w" -- eurrenco of the board ana oi Mr. Brydges. 1 have askea cSn Tyler whether he will go witli me next August to Am ca, aCl make a report to the Boaixl of his T^^^^-^^ regard io the working of this ^through f ^A^^;; ,^/^^^^\^^'i;^ I have not quite got the prorise of Captain Tylei that he wm comply with that voqiest from the board and myself^ but I tii^n this meeting endorses that request (aptam Tyb mav be induced to give us the advantage of his yeiy laige Srience (Cheeil) Coming now to the question I have toTubS to U,-MV-vhether the ^oard a- v.m^^^ thpir auo-o-estion, I will, in conclusion, say I don t UiinK wc 'ridK takeA a fairer course. I believe it will be satis- factorv to you, and I am sure Captain Tyler's assistance wi be wefcome and valuable to us. I hope, therefore, you wil aerie toThe suggestion I have made. I will now put the Stion, first submitting to you Mr. S^^^h ^amendme^^^^^^^ Til repW to a question, the Chairman explained that the postal and^military bonds were almost in perpetuity, bemg lor 500 vears. The equipment bonds were for 15 years, ouu yeais. xuc i i , to the meeting The amendment of Mr. bmith was .. \ s and was lost by a large majority, el' -u --^ds onl, bun, 'triw\'rS:[uired whether in the proposed bill the IWors would not consent to allow the new equipment bonds to be described as equipment bonds JNo. Z f The Chmkman stated that what he had meant was that if the ar^iiamerof Mr. Smith had been carried he should have W Sg t have had the bonds so described,but he said that the fullest opportunity would be given to equipment mort- V I > Rj'ort 0/ A„J..,r„cU M..e>in,, Mu ^y ao//,, ,867 23 which ,.„uia be sC;,"«l fn'",,""^ "-I'^sonablo propositio^ hajjd. only being hcU upi it, iv/nr "''«'' ""'J'""y' «'«'" the Company, ho dil not i„S *° '""^'"'-^ "■" '"""" "f present. The resolution, wi h this al, f,?"' "'"* <^'""'' «' an ovcrwbclraing maioritv fl,l, ■ '™' '"'» """''kI by On the s«ggefti„;;^:ffe"'^;';^;^"K ""'y "me diasentients^ of ^i^r:;tZ7^^^TTlt'^'' f '"'."''«' -*!« «'e view ?uegestion a» to Captain Tyler „"1'1» '? "■f?™"" *" J"^ •n the autumn, and °he result XT-,";? 1'"." '° Canada unanimous approval. ^°'"™'' *'"" 't met with R-^fT™ dfarvrai^'?!; r '^^ -f ^^ "^ *'^-