IMAGE EVALUATION TEST TARGET (MT-3) // 1.0 I.I IIIIIM 2.0 18 1.25 1.4 1.6 = ^ 6" - ^ ► Photographic Sciences Corporation 23 WfST MAIN STREET WEBSTER, N.Y. M580 (716) 873-4503 w^ ^ > ftH i/.A CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques %m Technical and Bibliographic Notat/Notet tachniquas at bibliographiquas The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. Coloured covers/ Couverture de couleur I I Covers damaged/ D D D D D Couverture endommag^e Covers restored and/or laminated/ Couverture restaurAe et/ou pelliculAe I I Cover title missing/ Le titre de couverture manque I I Coloured maps/ Cartes geographiques en couleur Coloured ink (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) I I Coloured plates and/or illustrations/ D Planches et/ou Illustrations en couleur Bound with other material/ Reli6 avec d'autres documents Tight binding may cause shadows or distortion along interior margin/ La reliure serr^e pe^^t causer de I'ombre ou de la distortion le long de la marge intirieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ 11 se peut que certaines pages blanches ajouties lors d'une restauration apparaissent dans le texte, mais, lorsque cela 6tait possible, ces pages n'ont pas 6t6 filmies. Additional comments:/ Commentaires suppl6mentaires: L'Institut a microfilm* le meilleur exemplaire qu'il lui a At* possible de se procurer. Les details da cat exemplaire qui sont peut-Atre uniques du point de vue bibliographique. qui peuvent modifier une image reproduite, ou qui peuvent exiger une modification dans la mithode normale de filmage sont indiquAs ci-dessous. I I Coloured pages/ Pages de couleur Pages damaged/ Pages endommagies □ Pages restored and/or laminated/ Pages restauries et/ou pelliculdes V Pages discoloured, stained or foxed/ Pages d^color^es, tachetios ou piqudes r~| Pages detached/ D Pages d6tach6es Showthrough/ Transparence Quality of prir Quality in^gale de ('impression Includes supplementary materii Comprend du matdriel supplimentaire Only edition available/ Seule Edition disponible V~P[ Showthrough/ I I Quality of print varies/ I I Includes supplementary material/ I I Only edition available/ Pages wholly or partially obscured by errata slips, tissues, etc., have been ref limed to ensure the best possible image/ Les pages totalement ou partiellement obscurcies par un feuillet d'errata, une pelure, etc., ont dt6 film6es A nouveau de fapon d obtenir la meilleure image possible. Tl to T» P< of fil Oi be th si( ot fir si( or Th sh Til wl Ml dif en bei rig rec me This item is filmed at the reduction ratio checked below/ Ce document est film* au taux de reduction indiqu* ci-dessous. 10X 14X 18X 22X 12X 16X J_ 20X 26X 30X a4x 28X D 32X The copy filmad hare has baan raproducad thanks to tha ganarosity of: La Biblib Jikiue d« la Villa da Montrtel L'axamplaira film* fut raprodult grAca A la gAn6roslt4 da: La BibliotMqua da la Villa da MontrM Tha imagas appearing hara ara tha bast quality possible considering the condition and legibility of the original copy and in Icaeping with the filming contract specifications. Original copies in printed paper covers are filmed beginning with the front cover and ending on the last page with a printed or illustrated impres- sion, or the bacic cover when appropriate. All other original copies ara filmed beginning on the first page with a printed or illustrated impres- sion, and ending on the last page with a printed or illustrated impression. The last recorded frame on each microfiche shall contain tha symbol — »- (meaning "CON- TINUED"), or the symbol V (meaning "END"), whichever applies. Maps, pla, 9s. charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure ara filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate tha method: Les imagas suivantes ont €ti reproduites avac la plus grand soin, compta tenu de la condition at de la nattet« de I'exemplaire film«, et en conformity avac las conditions du contrat de filmage. Les exemplairas originaux dont la couvarture en papier est imprimAe sont filmte en commenpant par la premier plat et en terminant soit par la darniAre page qui comporte une empreinte d'impression ou d'illustration, soit par la second plat, salon le cas. Tous las autres exemplairas originaux sont filmte en commenpant par la pramiire page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dorniAra page qui comporte une telle empreinte. Un des symboles suivants apparaltra sur la darnlAre image do cheque microfiche, selon le cas: le symbols — »> signifie "A SUiVRE", le symbols V signifie "FIN". Les cartas, planches, tableaux, etc., peuvent Atre filmAs A des taux de reduction diffArents. Lorsque le document est trop grand pour Atra reproduit en un seul clichA, 11 est film* A partir da Tangle supArieur gauche, de gauche A droite, et de haut en bas, en prenant la nombre d'images nAcessaire. Les diagrammes suivants iliustrent la mAthode. 1 2 3 1 2 3 4 5 6 ^ M It 1. li X ■ \^,?iiD 7 j^^ ' I'll 7lV] 33604 NORTH SHORE RAILWAY. — »« > lii I ' i n i r aj««l » i « l «» THE CHIEF ENGINEER AGAINST THE PRESIDENT. APBIL, 1675. BIBLIOTHEQUE DE LA VILLE DE MONTREAL COLLECTION GAGNON 29 Porme IR80— 1 -.'<• • ■» i- ■ ,i.* ':" V 'M '';i:fMM m V, ^^♦<»i ' ■'■■ ' -/,\^ '^^'' ■■■■ ;'^A-,->f- •■*»■¥;, :s^ -m ^ &".: j^-*5' r. ;v)5»;trf f£i^/iA v/^ ,s , .1.' V' :*w^- ~i„ s Wu:-- stV. vc<^, :>-3",,-;,.-:.v; iiU-'ifc;';^' •', , x^ ^m ■.■4 r .j-V ' ""i ; >' • ' ^^'Jfi ?*-^. NOR III SIIOKi: R All. WAN'. Ihffcrences between the ('nii.i Mncim-.i.k, iDid the PkisiDi.Nr oj the Company. • — wC* - - - CONTAINING I. J J ETTE R8 y'/'o/w the ('hiej Khf/mcfr to the Sivri- tary and Hoard of Drracfors, reaiuctinfi the rom7netice)itrnt of Legal Proceed inns ajfainst the President. J)ated April 14///, Xoth and 2ec. 1, lo74. NORTH SllORK RAII.WAV THE CHIEF ENGINEER AGAINST THE PRESIDENT. Lellcr (o (iic Sccrctiirv <'i:'///<'' uolicc of Pi'ocirf/iftos. Ol'FirE OF THE EXC.TXEER IN rillEI'. QuoIhm-, April 14th 187'k Mi>'. Seci.t.taky, • I consider it to he my duty to inform tin* lioard of Directors, that I am about to (.onimence leual jiro- ceediiiLi.s ai»aiii8t Col. Wm, Rhodes, the President of the Company, lor dd'anuition of character, growing- out of chaigcN and insinuations which have hcen put in circula- tion l)y him, t(» the ctlect that I had a i)ecuniary interest in ihc contract with the Chicago Contractinii' Company lor tlie construction and ecjuipment of tin' road ; and also that I have attempted to force the present Contractor to l)rovide for and recognize that interest. I have given the most n fu/tia/i/icd di'iiial to these charges, on all proper occasions ; and have, ui)on one occasion called the attention of the President to tin' matter in the presence of the Board, upon which occasion he stated distinctly that he had never regarded it as of suliicient r 2 KOUTII SHORE RAITiWAY. imi>ortance to briiiir it before the lioard ; notwitliKtimding ull which, tljf Prt'K'deiit has persistently eontiiiiu«d to re-iterate these charjj^ef, in a still more aggravated I'orm. The only alternative remaining tome therefore, is to iHbrd him the earliest opportunity to make his charges good, in a Court of Justice. I have been jjuhiced to take this course for the r-ason, that it would prt'K.ibly be much more acceptable lo the Board, as it ceriinnly is to myself, than it would be to have a long and \\ i-ai y investigation irifluH the Hoard, respecting mailers which are entirely foreign froiu the immediate and more direct interests of the Railway Com- pany. I hav»' I he honor to remain, Mr. Secretary, Your Obedient Servant, 8. SEYMOIR, A. II. A^EKRKT, Chief Enuine'r. Secretary N. S Uy. Co. (Quebec. Fitr/lii'r /c//er to tlie Secretary. Ol FKi: OF THE KNCJIXEER IN CHIEF. Quebec, April 16th, 1875. Mr. Secketary, Ueferriiiii ro my letter of yesterday, in which I informed you that '• I was about to commence legal pro- ceedings against the President of the Company for defama- tion of character. " ^:^c., it has occured to me that, under all the circumstances connected with the case, it might be CHIEF ENtHNEER VEHSUS I'RKSIDENT. 8 considered due to the IJoard of Directors, (hut I shouM htate with mor«' i>articiihirity than was shit«Ml in that letter, the reasons which have induced nie to lak*' this course at the present time. It will be remembered that in the rail of 1S74, the President placed in the hands of the Hoard, a volumhious corres])ondence, in which I was charged with neglect of duty, to such an extent, that th«^ President had lost his confidence both in myself, and in the (n-gani/ation of my staff. The Contractor had also filed a voluminous correspon- dence with ihe Board, in which I was charged with embarrassing him in the execution of the work. And intimating Aery distinctly, that he should abandon the contract unless an entire change was eliected in the Engineer Department. The trovernment Jiad also appointed an Inspecting ICngineer, who had reported that the work already dcme, did not come up to the requirements of a first-class road. The charges of the President had been referred to the l]xecutive Committee ; and I had placed in the hands of the Chairman of that Committee, my defence. The charges of the Contractor had been fully answered ; Avhich answers were read before the Board, and placed on file in your office. I had also prepared answ^ers to all the objections made by the Government Engineer, respecting the character of the work, &c , which were read before the Board. It had come to my knowdedge that the President had spoken very freely and publicly about his want of confi- dence in my administration of the office of Chief Engl- XmBTM SHOIIE KAILNVAV iiecr : ait«l that h Chicago Conlracrin? rec<>ifiiizt' that interest, in order to .«etth' all of hu dithi-ulties with me. I had •-alhnl parliciil^r altcntioii to tiicHe fact.s, in niv defense airain'^8 the Pr^'sident's chaii»«s ; and liad made an unrjaalitit-d d<(*nia] .''t- fully made to my i«-itier to you of thf I'lth ius-t.. transmit- tinjT my defeii«#- and th«* correspondcnci' reliitiny tlicreto. The (rovemmorut haviuir refusi'd, on account of the representations mad*- hy its Engineer, to advance any more Uioney of the Company : and the inlernal complications t,^rowinir oat of th*- rs pirEsini:.\r. The Prt'Ni(l«MH Jil>«> ni:ul»' :• |ml»li<- :innr>iiiis had l»«'('ii safislattoiily arraiiff«*«l : aiio!ipectin«' the result ; for I knew that I would not be condemned without a f-ur and imparti-ii investigation. liut I learned subseqnentlv and from perfectly reliable sources, iha^, in hi?= zeal to destroy my private character and prol'essional reputation, which are my only capital in this world, and the only legacy that I can, at my 6 NORTH SHORE RAILWAY. period of life, hope to leave to ray family, ho had been equally industrious in publishing his charges and allega- tions to the outside world, who could not be expected to form the same just and unbiassed opinion of their truth- fulness or falsity as the members of the Board with whom I had been so long and so intimately associated; and to whom I feel so deeply grateful foi the expressions of their past and continued confidence, which -^re contained in the Itesolutions adopted by the Board on the Sth instant. It has always appeared to me that the facts, which have since become so generally known, respecting the secret transfer of the contract without my knowledge ; also the subsequent efforts of the original Contractors to keep me in ignorance of the transfer; and my later endorsements of the present Contractor ; to say nothing of my still later and unwearied efforts, almost single handed and alone, to pre- serve the integrity of the original contract and specifica- tions against the attacks of outside parties, with a view only of saving to the Company and the Contractor a large and useless expenditure in the construction of the Road, would in due time serve as a sufficient protection against, and answer to these false and malicious charges. But it seems that the President has " eared for none of these things " ; and that from the first inception of the idea of my complicity in the original contract, he has followed it, and still seems determined to follow it with the most relentless pertinacity, until he shall succeed in driving me from the road and the country in disgrace. The conviction has therefore forced itself upon my mind, as stated in my letter to you of yesterday, that : " The only alternative remaining to me, is to afford the President the CHIEF ENGINEER V'RSUS PRESIDENT. earliest opportunity to make his charges good in a court of j^ustice. " I have only to add, Mr. Secretary, that while I regret exceedingly the necessity which seems to impel me to take this course, during the present somewhat critical period in the Company's affairs ; yet I feel the greatest confidence that, unless the parties upon whose evidence the President apparently relies to substantiate his charges, are prepared to add the crime of the grossest perjury, to that of the most unvmrrnnfable ronspirar//, in order to accomplish my ruin in this life, I shall hope for a full vindication of my cha- racter at an early day. The President alone has the power to rendtu" this pro- ceeding unnecessary, by a complete and unequivocal withdrawal of these charg«»s and ullogntions, in such a manner as to undo, so far as may now be possible, the injury which they have already, and are still liable to cause me. In which case I should expect, as a further act of justice and good faith on his part, that he would place at my disposal such letters, or other statements as he may have received from any of the members ol' the late Chicago Contracting Company, or any others parties, as will aid me ill obtaining that Justice from them, which it will be the main object of my life to secure. I beg to remain, ;Mr. Secretary, Your Obt. Servant, A. II. Yerret, Esq., Secretary, N. S. Ry. Co., Quebec. S. SEYMOUR, Chief Engineer. THE CHIEF ENGINEER TO THE BOARD OF DIRECTORS. -*o^»;r NORTH SHORK RATLWAV. OFFICE OF THE EKGINEER IN CHIEF. Quebec, April 20th, 1875. Gentlemen, Understanding that the President has called a special meeting of the Board, for to-morrow, the 21st instant, for the purpose of considerinj" the existing difficulties between the President and the Chief Engineer, I have deemed it proper to prepare and place before you the following explanatorij statement^ in addition to my letters to the Secretary of the 14th and 15th instant, which I presume are to be placed before you by the President, as the cause which has induced him to call this special meetrng. About four years ago, I was induced, primarily through the solicitations and representations of Colonel William Rhodes, who was then a Director, and is now the President of the North Shore Railway Company, to break in upon a large and lucrative practice, as General Consulting NORTH SHORE RAILWAY. Engineer in the City of New-York ; and to lend my name and influence, and also to devote a portion of my time, in an effort to resuscitate this Koad, and place its affairs in a position where they would attract the attention of Railw^ay men and Capitalists, to such an extent as would induce them to undertake its construction. I therefore accepted the appointment of Consulting Engineer, in July, 1871 ; and afterwards accept<'intment of Consulting Engineer, that I would be required to devote only a portion of my time to the affairs of this Company ; and also that my duties would be more of an ad%is<*3 y than oi an executive nature ; other- wise I could not. consistently with my own interests, and other engagement*, have consented to accept the position. But either the good or ill-will of events, have seemed to irresistibly lead„ or force me, from one step to another, until, since the date of the contract, three years ago, I have found myself devoting my entire time, and the best ener- gies of my body and mind to the interests of the Company ; and consequently, I find that my former business relations NORTH SHORE RAILWAY. ill N"ew-York, and elsewhere, have become almost entirely severed. In looking back, hewever, over the period of time during which I have had the honor of being connected with the road, it is a most pleasing reflection, that it has slowly emerged from the almost CAr//.<«/i> state, in which it existed at the time of my first appointment, until it has now rea- ched, and will continue to hold its proper rank and posi- tion among the most important first-class Raifivn// Enlei- jM"i>e'<, in this or any other country. And it will always be a source of great pride and satis- faction to feel, that I have, at least to some extent, been the humble agent in briniring about this result. It is also a source of very irreat satisfaction to me that during my long connection with the road as Consulting and Acting Chief Engineer, I have been fully sustained and endorsed by the Board of Directors ; in every important matter that has come np for its final consideration and decision. In continuing to hold the respf»nsible position of the Company's Consulting Engineer. I shall still hope to retain the full confidence of the Board of Directors ; and also to be able to render the Company many important services, before th( great "Work which it has in hand, shall have been fully accomplished. If the Board shall meet with any unlooked for delay in selecting a competent and trustworthy permanent Chief Engineer, I would respectfully recommend that my pre- sent Chief Assistant, Col. George W. Butterfield, be appointed as Acting Chief Engineer, from and after the Ist of May next, until such time as the Board may be able !ii I i ii (1 ;! 4 NORTH SHORE RAILWAY. to make a permanent appointment. Col. Butterfield has now been engaged upon the road a year, and is entirely familiar with the details of the work. He has also, under my general direction, prepared all the working plans and specifications for the different structures. He has had a very large professional experience, both in Canada and in the United States. I have always found him thoroughly honest, capable and industrious ; and have therefore no hesitation in endorsing him as being fully competent to fill the position, at least during any interim that may occur. After thanking the Board, and every one of its Members, including the Secretary, for the uniform kindness and con- sideration which have been extended to me on all occa- sions : I have the honor to remain, Gentlemen, Your obedient servant, SILAS SEYMOUR, Consulting, and Acting Chief Engineer. To THE Honorable THE Board of Directors OF the North Shore Railway Company. NORTH SHORE RAILW4Y HI^SOLUTIONS ABOmB BY THE BOARB. ^ At a meeting of the R„, ^ *?"^'""'' '"* ^P"'' ^S^*- ShoreMwayCo held vet ; ""'"" "^ ">« ^orth- -Kcso/wrf._Xhat, where-,* . „ ' received from Ge, ^Zll '°""»'""<'*"<>" ha« just been CW Engineer of this C^^l^^";^' -'> Acting be reheved from the fnrthern ; ''*' ""i"^'^' «<> Acting Chief Engineer iol'^'fT""' "''>'« Unties of -nt month ; and Xet ' "" "'"^'^ "^ *« P- «We and proper, in^Jf ^ """ '" ''<' '•°"' --on- *o 'He intere..t,, of the clp^; t'l "' '"""'"' "^^■""o" not conl.mpla,,.d at the time L u T'"*^ ''^'"^ "'»" ™ With the road, he lit;' e« "'" '^^-"' ^ ■ti'^ solved Til. if fU- T> ;f 'He Acting CtS. it m" r-'"'" '^^ -i-' ur her perfornianoo ol°t " I, ""'T'"' '"m from the 'Hat offlee, on and alter th c o 7,^'""" P"^'-"'"^ 'o vvith this Company «; ittcolls.dr'" p""" '"* ^"""^'^''on has eonlidenee that Genernl S = ^"='"'^<='-' 'Hi« Board 'o 'he interests of the C b /^ r"'; "'" remain faithful «fH-n>ind, and the resnl^o'^sC""^ 'He best energies ^■onai experience, to the sacc.ss„r^ «»d varied profes- great and most important P„b,ic1^r';"=':°"'PHshment of a ha« BO long been connected '"'"P"^'"' '^"H which he Certified, A. II. VEKRET, Secretary. riFi' ii ' mi J^ ORTH ^HOI^E R VAILWAY. REPLY OF THE CHIEF ENGINEER TO THE BOARD OF DIRECTORS. INANSWEKTOTHECHAR0KS.NBAU.K0AnONS MADE BV THE PRESIDENT OF THE COMPANV. WITH FIVE APPENDICES. ■I : . ■;'!' NORTH SHORE RAILWAY. THE CHIEF ENGINEER AGAINST THE FBESIDENT; AND VICE VERSA. The Chief Engineer charges the President with having publicly circulated reports, to the effect, that he, the Chief Engineer, was in collusion with the members of the Chi- cago Contracting Company, in the original contract for the construction and equipment of the North Shore Rail- w^ay ; and with having an understanding and agreement with that Company, or some of its members, by which he, the Chief Engineer, had, or was to have an interest of five per-cent in the net proceeds of that contract. Also that he, the Chief Engineer, has used his position upon the road to force the present Contractor, and assignee of the original contract, to either recognize that interest, or pay to him the sum of Fifty thousand dollars. The Chief Engineer unequivocally denies these charges and allegations ; and has given notice to the President and Board of Directors, by letter addressed to the Secre- tary, on the 14th April, 1875, that he shall commence legal proceedings against the President, for defamation of character, &c. 1 i I 2 NORTH SHORE RAILWAY. Upou receiving the above notice, the President ordered that a special meeting of the Board be called : " on Wed- nesday next, the 21st inst., at 10 o'clock A. M., to take into consideration the difficulties between the President and the Chief Engineer of the Company. " No notice was given to the Chief Engineer of the calling of this meeting. The Board met at the time appointed ; and, after hear- ing only the President's side of the question, adopted tho following Resolution : " Resolved. — That inasmuch as the President of this Company has made certain charges against the Chief Engineer thereof, and addressed certain letters in support, which seem to this Board to require investigation, that the whole matter in dispute be by this Board referred to a Committee of five, to examine into all such charges of the President, with instructions to examine into all docu- ments and witnesses as they may consider necessary* said Committee also to enquire into all statements made by the Chief Engineer respecting the President, which the latter requests should be inquired into, and report to the Board on these points as soon as possible ; said Com- mittee to consist of the Mayor of Quebec, Honorable's Robertson and Garneau, and Messrs Thomson and J. G. Ross. " The special Committee met on the evening of the same day, and after appointing a Chairman, allowed the Presi- dent to make a verbal statement of his charges, and refer- ence to such proofs as he relied upon to sustain them. After which the Committee adjourned until Monday, the 26th April, with the understanding that the President would then present his entire case in writing. CHIEF ENGINEER VERSUS PRESIDENT. 8 Having, after considerable delay, been favored by the Committee, with the papers in the case, the Chief Engi- neer, in endeavoring to defend himself against the charges and allegations of the President, desires first to thank the Board of Directors for having so promptly referred the matter to a special Committee for investigation ; and also to thank the Committee for having placed in his hands the written statement of the President containing these charges ; together with the documents upon which he relies to establish their truth ; and thus affording him the first opportunity which he has ever had, to openly refute them, at least, so far as it can now be done before an extra-judicial Tribunal. same 'resi- fefer- lem. [, the (dent ■'4 REVIEW OF THE PRESIDENT'S STATEMENT. ii From the written statement of the President, it appears that he re-iterates his charges of complicity in the contract, to the fullest extent ; and that he relies upon letters and statements, received from the different members of the late Chicago Contracting Company, and their former Cashier, who is also the Cashier of the present Contractor ; and also upon the corroborative evidence furnished in connection with the original negotiation of the contract ; and its sub- sequent administration by the Chief Engineer ; and his re- lations and intercourse, both in respect of the original Contractors, and the present Contractor, as affording evidence sufficient to substantiate his charges to the satis- faction of the Special Committee, and the Board of Direc- tors. Referring to the PresidentV -tatement concerning " the great intimacy and apparent friendship, which existed between myself and the Chicago Contracting Firm ; " I will remark, that this intimacy and friendship commenced with Messrs. Smith and Dunlap, many yeais before the date of the contract ; and I will freely admit that they continued in a manner every way consistent with our subsequent re- lations under the contract, until the secret sale and trans- fer of this contract, on January 12, 18Y4. CHIEF KNOINKEB VERSUS PRESIDENT. As to the 'effect of this former friendship upon the Com- pany's interests, during the negotiation of the contract, it is proper to remark, that Col. Rhodes was a prominent and active member of the Committee of Directors, which had this matter in charge ; and that while the balance of the Committee and myself, were using our utmost endeavors to keep the contract price within the present sum of seven million dollars. Col. Rhodes persisted in advocating a much larger sum ; until finding that neither a majority of the Committee nor myself, would yield the point, he wrote an indignant letter to the President of the Company, and threatened to leave New York the next morning, unless the Committee yielded to his views. With reference to the effect of this intimacy and friend- ship upon the Company's interests, while the contract re- mained in the hands of the Chicago Contracting Company ; I beg leave to refer to the well known facts, that it had been almost solely thiough my representations that they had undertaken the contract ; and therefore I felt, in honor and good faith, bound to afford them all the assistance in my power, consistent with my position as Chief Engineer of the Company, to enable them to carry it out success- fully, particularly so long as they kept faith with the Com- pany by complying with the conditions of the contract ; and also with the negotiating Committee and myself, with reference to the amount of their own means which they would invest in the Enterprise. Upon their hesitating to do this ; and believing that the interests of the Railway Company required it, I even went to Europe at their request, and without any extra compensation, in order to aid them in their premature efforts to place the Bonds. I r . \ 1 f 6 NOBTH SHORE RAILWAY. then returned here, and procured from the Railway Com' pany a large concession of stock, in order to place it with the Bonds ; and thns, as was supposed at the time, place their financial arrangements beyond the reach of any possible contingency. All this was done openly, and with the knowledge and approval of the Railway Company. The efforts to place the Bonds having failed ; and finding that the parties still seemed inclined to await the course of future events before proceeding with the work, I addres-. sed a letter to the Chicago Contracting Company, on the 29th July, 1873, which will be found appended hereto; and to which I beg leave to refer as showing the views which I then entertained respecting their obligations to keep faith with all parties, by proceeding promptly with the work. This appeal however had no effiect, except to obtain from them an assurance that they would immediately assess themselves to the extent of a half million dollars, and go on w^th the work ; but the season wore away, and nothing was done. In December 1873, Smith and Dunlap, came to Quebec; and assured me that their financial arrangements, were so far completed as to secure their success, provided the " Quebec Railway Aid Act," which was then in contem- plation by the G-overnment, became a law. Their frequent and somewhat mysterious conferences- with ihe Attorney G-oneral, soemed to confirmthis impres- sion ; and my confidence in their good faith, and in the final fiuccess of the enterprise, had never been greater than it was up to the evening of the 14th January 1874, when I CHIKF ENGINEER VERSUS PRESIDENT. 7 was told, under an injunction of secrecy, that the contract iiad actually been sold and transferred to the Hon. Thomas McGreevy, on the 12th January, for a consideration of ^225,000 ; and that Smith and Dunlap had come to Quebec for that especial purpose. This most extraordinary and unjustifiable duplicity finally culminated in Dunlap's letter to mo from Montreal, dated the 16th January, a copy of which is appended hereto ; and the fact of my " not even acknowledging or replying to " it promptly, and in a business way, is now referred to by the President, as an additional evidence of my guilt. The Chief Engineer therefore respectfully submits, that, in view of all the circumstances preceding, attending, and following this transfer of the contract, some of which will be more fully referred to hereafter, he was fully justified in withdrawing his friendship and confidence from these Parties ; and in openly denouncing them to the President and Board of Directors, and to the whole world, as men who had forfeited all claims to the confidence of the Railway Company, the public, and himself. The first public expression of his feelings respecting the transfer of the Contract, was embodied by the Chief Engineer, in his " Report upon the Quebec Railway Aid Act of 1874." under date of Feb. 5, 1874 ; an extract from which is appended hereto, to which particular reference is invited, in connection with this case, as expressive of the views which he then entertained respecting both the original and present Contractors. With reference to the remark made by the President that, while in England " he took no part in any business m KOETH SHOSE RAILWAY. of the Bailwaj ; " I beg to append hereto, copies of some letters and extracts, which I received from him during hi» absence, as showing his unabated interest in matters which were gcnng on here, as well as in the final success of the Enterprise. With reference to the allusion made by the President to the ** comrse of comduct " pursued by the Chief Engineer *• towards Mr. Prince, one of the American party " ; and the subsequent and secret Championship by the President of the cause of the injured Cashier of the Contractors^ as against the Km^hwer in Chief of (he Railway Company j it is not proposed to make any reference, or remark, in this place. "With reference to the official inspection of the line by the President and Directors ; and the subsequent personal inspecliom omfooi^nd alone, by the President, in order, as he stated to me afterwards, to satisfy himself of the fact of my complicity in the original Contract ; together with the correspondence resulting therefrom, I beg leave to refer the Committee to the accompanying printed pamphlet, en- titled : " Remarks of the Chief Engineer upon charges made by the President." Dat d December 1st, 1874. These " Remarks "^ were placed iv the hands of the Chairman of the Executive Committee, to whom the matter had been referred by the Board of Directors, on Dec. 9th, 1874. If the pamphl«^t was delayed in reaching the Board, until the 10th of the follo^ving April, as stated by the President, I presume that th** Chairman will be able to make very satis- factory explanatioiis to the Committee, and also to the Board. I am quite certain, however,that he will do me the justice to say that I never showed the least hesitation in having, but CHIEF ENUINEEK VERSUS PRESIDENT. rather an anxiety to have the whole subject brought to the notice of the Board, at any time when, in his opinion, the interests of tho Company would be promoted thereby. I desire to remark however, in passing, that the theory upon which that defense of the Engineering- organization was based, has since been confirmed to a remarkable degree. With reference to the allusion made in the President's Ftat "nnent, to -ts; " I have to remark, that the President never, to my knowledge, called upon me for any such purpose. On the contrary, I took • an occasion when he honored me with a call upon an entirely ditt'erent subject, to draw his attention to what I had heard of his saying to Directors and outsides parties, respecting the statements made by Mr. Keith ; upon which he seemed somewhat embarrassed ; but finally admitted the fact, and stated, very frankly, that his inspection of the line on foot ; and his subsequent course toward inyself and the Engineering staff, had been inspired by Keith's statement, and with a particular view of finding something tangible upon the line, that would confirm the charge. I asked him if he had succeeded in finding anything of the kind ; and he replied that h? had>fonnd nothing except \ ^ CHIEF ENGINEER VERSUS PRESIDENT. M the low grades upon Section 6, which he thought were more favorable to the Chicago Contracting Company, than the grades, as arranged upon other parts of the line, were for Mr. McGreevy. Upon my asking him whether he had discovered any change, either in the profiles or grades, since the contract had been in Mr. McGreevy's hands excei^t such as would save unnecessary expense to the Contractor, he replied to the effect : " that he did not understand the ups and downs of my proliles at all ; and that he could only judge of the matter by what he saw upon the line." I took occasion, during that conversation, which is the only one I ever had with him upon this subject, except in the presence of the Board, to make the mobt unqualified denial of Keith's charge ; and he left me, as I then sup- posed, with a firm conviction that it had no foundation in fact. It seems however, from his present statement, that hig mind has never been quite at ease upon the subject, from the fact that he *' hab never been able to understand why- it was necessary to detain the consent of the Chief Engi- neer of the North Shore Kail way, lo an action i^ i e United States to receive Commissions on any Contracts made by this Company ", &c. This remark refers to the closing paragraph in a letter (which the President appends to his fStaiement,) which I had addressed to Mr. Dunlap in Jan- uary last, asking him to contradict the Statement made by Keith ; and is as follows : " My cousin, M. T. Seymour, thinks he has a just claim agaiiitut /our party for services as Agent, in procuring the Contract I did not consent that he should nommenco legal proceedings in the matter, i« NORTH SHORE RAILWAY. 1: V'i until after I was informed of Mr. Keith's Statement above referred to ; but I have since told him to do as he pleased." Desiring that there may be no further misapprehension respecting this matter, I will state, as I have stated before on all proper occasions, that my Cousin was the sole Agent through whom I was put in communication with these parties ; and that they, as he claims, having failed to comply with an agreemen. with him, by which he was to be benefitted by the Contract ; and having sold the Con- tract for a large bonus, without having tendered him any satisfaction, he proposed to take legal proceedings against them. Inasmuch as I would necessarily be the main witness in the case ; and not desiring to become embarrassed with frequent attendance as a witness, in the United-States, during my official connection with the road, I prevailed upon him to postpone it for the time being. But when I heard of the foul slan- der promulgated by Keith, I at once wrote to my Cousin, that I would withdraw my objection, and that he could take his own course in the matter. And, as is my custom in all such matters, I frankly stated the fact to Dunlap, so that he could be governed accordingly. It seems, however, that even this slight circumstance has, in the mind of tLe President, become magnified into the most conclusive evidence of my guilt. And also, that this fact, in connection with the letters which he, together with .with his friend, the Cashier of the Contractor, have recent- ly received from Dunlap and Keith, " All tend to show ihat the loose screw is to be looked for in the Engiusering Department.^^ CHIEF ENGINEER VERSUS PRESIDENT. 18 It is quite true, as stated so eloquently in the closing peroration of the President, that other, and I think much more important issues, as affecting the true interests of the Company, have intervened, to divert the attention of the Board to such an extent, that this one great idea of the President's mind, seems to have been lost sight of by every one but himself, until within a few weeks past. But I deny emphatically, ihat these side-issues have been raised by the Chief Engineer, as the President states, " to envelope the whole subject with mystery, and so gain time, and cause delay. " On the contrary, I claim that these " side-issues " were thrust upon the Company, and upon the Chief Engineer, entirely though the agency of the President himself, by his improper interference with matters upon the line which did not pertain to his office ; and by his promptings to the G-overnment Engineer, as well as his Reports to the Board, respecting the character and details of the work, of all which he could not, from the nature of things, be a coinpf'tent judge. Tiu labor of defending my Department, as well as the Litegrit y" of the original contract, from these attacks, was tiierefore very justly and necessarily thrown upon my own shoulders ; and as to the degree of success with which this duty to the Company, as well as to myself, has been performed, almost single handed and alone, (the full i^isnlts of which can only be determined hereafter) I am xsoi Bi&Y j,med to refer to the " Volumes which have been written^ and which are so sneeringly alluded to in the statement of the President. It will also be remembered that, whUe laboring day and night in the po^'formance of this, a '!: now seems, m 1 m u NORTH SHORE KAILWAY. thankless duty to the Company, I did not lose sight of that other duty to myself, of vindicating my character, at least before the Board ol Directors, from the slanderous insinuations of the President; and that I therefore deman- ded of him, in the presence of the Board, that, in case he had mentioned this slander to Mr. Fleming, I should claim the right to be heard in the matter by Mr. Fleming, before his report upon the existing differences should be submitted to th I>any. It seems, howeve:, that the President, during all these side issues, has never lost scent of his real game ; and that at this late day, after having informed the Board, *' that he did not regard Keith's statement as of sufficient importance to call their attention to it." And after having stated publicly, " that all differences had been amicably adjusted " And after having, within a few weeks, approved of the adoption of a resolution, by the Board, futli/ endorsing the Chief Engineer, he has at last arrived at the conclusion as stated by him : '• that Colonel Rhodes and General Seymour, cannot hold their relative Offices and work together.^'' Under ordinary circumstances, an intimation of this kind, from the Chairman of the Board of Directors, whose Ser- vant I am, should be regarded as a sufficient intimation, to place my resignation at his disposal; but unfortunately in this case, the President has placed it out of my power to do so, without its being regarded as a full confession of my guilt ; anJ I am therefore reluctantly compelled, in justice to my own character and reputation, to join issue with him before his own Board ; and also before the Courts, in order to purge my character from the foul stain which he has deliberately cast upon it. CHIEF ENGINEER VERSUS PRESIDENT 15 Leaving now the further consideration of the President's statement, I will proceed more directly with my own defense against the charges therein con! ained, of collusion or complicity with the members of the Chicago Contracting Company, to defraud the Railway Company. In doing this, I will iirst call attention to the character of the Parties upon whose written an 'I verbal statements he relies to substantiate his charges ; and then submit such further points and considerations, to the Committee, as may appear to have a direct bearing upon the case. i 1 m STATEMENT OF THE CHIEF ENGINEER ' Respecting the parties upon whose letters and statements the President relies to substantiate his charges res- pecting the complicity of the Chief Engineer in the Contract Aa;i I-: (W Perry H. Smith and George L. Dunlap. "With reference to &mith and Dunlap, it is veiy well known that they accumulated larg-e fortunes each, while joint managers of the Chicago and North Western Rail- way, of which, during a long period, Smith was first Vice President and principal Executive officer, and Dunlap General Manager. The Chief Engineer therefore felt quite willing that they should invest a portion of their surplus earnings in the promotion of the construction of the North Shore Railway. They and their associates were fully and honorably pledged to invest at least one million dollars in. work upon the road, before placing the securities of the Company upon the market ; instead of which, both Smith and Dunlap left for Europe within three months after sign- ing the contract, and before commencing the work of con- struction to any extent; and spent a year in hawking the Company's bonds through the money markets of Europe CHIEF ENGINEER VERSUS PRESIDENT. 17 then, fiiiling to sell the bonds, they returned to this country and sold the contract to Hon. Thos. McG-reevy for a large "bonus, without the consent of the Railway Company, or the knowledge of the Chief Engineer ; and left the country with the plunder in their pockets, and a lie in their mouths, as evidenced by the letter written from Montreal by Dunlap to the Chief Engineer, four days after the transfer. Samuel L. Keith. mII m 4 With reference to Keith, it is proposed to show, that when he ^vas first introduced to the C'hief Engineer, by M. T. Seymour in Chicago, he represented that he was a retired Contractor with a large fortune ; and aT)undautly able, in connection with his proposed associates, to furnish all the means required to secure the immediate construc- tion of the road ; whereas, it was afterwards fou'ul that he was substantially a bankrupt at the time, and expected to recuperate his fortune out of this contract. Also that he borrowed some money from a Chicago bank, to keep up his interest, which he afterwards refused to pay ; and the President or Cashier was obliged to come to Quebec and make the best settlement he could, by taking " cats and dogs " for a portion of the debt ; while Keith was holding Mr. McGreevy's paper, or its proceeds, in his picket, for his share of the investment and bonus. Also that Smith and Dunlap, in December, 1873, represented to the Chief Engineer that Keith had deceived them grossly as to his means ; that th^y had been obliged to advance money for him continually ; that they had already reduced his inte- 3 ■ ''■ »9, ill -^:f, ii |ii^ ■hi 1 - iP::v 1 ':i ■i;ii. ■i' ,P'ii It 18 NORTH SHORE RAILWAY. rest ; and that unless he gave good security for the future, they should throw him over-board entirely. It will be showa further, that a few weeks after the transfer of the contract, Keith called upon the Chief Engineer, for the purpose of exonerating himself from any blame in the matter, upon the ground that the thing had been closed, by Smith and Dunlap, without his knowledge and consent ; and that they had compslled him to sign the transfer with them. He also stated that they had not divided with him fairly ; they keeping nearly all the bonus to themselves, and only paying him back his ad- vances ; but if he ever should meet them in Chicago, he would g-et even ivith them. The Chief Engineer told him that he felt disgraced and humiliated before the Railway Com- pany, and the people of Canada, for ever having brought the parties into Canada, and endorsing them as men of character and integrity ; and that he hoped this would be the last he would ever see or hear of any of the party ; upon which Keith left abruptly, swearing that he would also f;et even with the Chief Engineer, before he left Canada ; which threat was afterwards repeated to several other persons in Quebec. It will also be shown, that Keith afterwards sold at auction and i)rivate sale, and pocketed the proceeds of a large amount of property and plant, which had been pur- chased for Railway purposes ; all of which, really and in good faith, were transferred with the contract. It will also be show^n that Keith, during his stay in Quebec, after the transfer of the contract, and his efforts to pick the bones of the decaying carcase of the Chicago Contracting Company, spent most of his time in obtaining CHIEF ENGINEER VEHSUS PRESIDENT. 19 information from the Contractor's office, respecting the snb-letting of the work ; and in forming combinations to obtain an interest in some of the sub-contracts ; and also in magnifying the difficulty and expense of doing the work, to parties who were not in his ring ; until, failing in these efforts, as he supposed and alleged, through the agency of the Chief Engineer ; end learning also that the Chief Engineer had denounced him openly for selling property that did not belong to him, he finally left Quebec in disgust, on the 12th Oetober, 1874, without having yet got " even ivilh the Chief Engineer. " Fortunately, how- ever, he happened to meet the President and Vice-Presi- dent of the I? ail way Company, on the boat to Montreal . and therefore, feeling quite sure that he could place the boundary line of the Province, if not of the Dominion, between the Chief Engineer and himself, before the vile slander would reach his ears, he embraced the last oppor- tunity to inflict a most cowardly, but as he undoubtedly supposed a, fatal slab at the heart of the Chief Engineer, by concocting the story, which it seems to have been the main object of the President's subsequent official acts, respecting the Chief Engineer, to substantiate and render effectual for accomplishing his ruin. ■'4 John T. Prince, Junior, Cashier. With reference to Prince, I hardly know what to say that will do him full justice. He seems to have been the prime mover, and Chief Con- spiritor in the affair, for the purpose, as he openly alleges, of " retaliating^' against the Chief Engineer for some sup- posed wrong, or under-handed injury ; which he admits 20 NORTH SHORE RAILV kY. has resulted to his advantage, so far as his present em- ployer is concerned. But nevertheless, to use the exceed- ingly happy expression, so often used by his friond Keith, he is determined " to gel even ivilh the Chief Engineer " by *' retaliation." I had often heard of the " Cashier's'' playful threats " to drive all the Seymour's out of Quebec " ; and 1 have once or twice had occasion to refer to him in my official commu- nications with the Company and the Contractor ; but I utterly disclaim ever having done so underhandedly., or for the purpose of doing him unmerited injury. In fact, the first of these communications was addressed directly to himself, calling his attention to a slight discre- pancy, (only 11,322.61;, in two certified statements which he had returned to me, of the expenditures of the Chicago Contracting Company, during the month of November 1873. The next of these communications was also official^ but I think with himself verbally.when I merely remarked, that I thought he did very wrong to allow Keith to sell, without protest, the horses, buck-board, and other property, which he had returned to me over his own signature, as expendi- tures upon the road ; and which he knew had been era" braced in my monthly estimates, and therefore belonged to his present employer ; to all of which he blandly replied " that the vouchers had all been sent to Chicago, and therefore it' was quite imjiossible for him to tell anything about it " The next of these communications was also official, and addressed openly to the Contractor, to the effect : "that the impeiious and overbearing style adopted by the CHIKF ENGINEER VERSUS PRESIDENT. 21 Cashier, in his intercourse and correspondonce with mem- bers of the Engineering Staff, has become exceodingly offensive; and if persisted in, I shall feel compelled, for the proper protection of my sub-ordinates, to issue an order prohibiting any member of the Staff from holding further official intercourse or correspondence with him, upon matters connected with the Road." The next communication was also o/flciaf, and addressed to the Contractor, in which his attention was called to a little discrepancy, (only $21,014.07), between a certified statement of expenditures which had been furnished to me by his Cashier, upon which to base my progress esti- mates, and the footings of the vouchers which were after- wards furnished to me, for the same purpose, from the Contractor's office ; upon which occasion I merely remarked that : " A result of this kind, as a matter of course, has a tendency to destroy all confidence in any statement of this nature which may hereafter emanate from that source. " Upon being furnished, subsequently, with a copy of a complaining letter which the cashier had addressed to the Contractor upon the subject, from which the following is an extract: "he (the Chief Engineer) appears '; i e unsa- tisfied still, as I am informed he has lately brought the matter to the notice of the Board of Directors (referring to the letter from which the ab v'^e extract is taken, a copy of which had been filed with the Secretary) and complains to them that I am still in the employ of the Contractor, " I hastened to embody the following certificate, in a com- munication which I had the honor of addressing to the Board of Directors, on the 13th Feb., 1875, which I trust, ■ il i rir 22 XOBTH SHOftE RAILWAY. when the fact* come to the Cashier's knowledge, will fully satisfy his sensitive mind upon that subject : " I desire also to put the mind of the Cashier at rest, at once and for-^ver, respecting all apprehensions he entertain in relation to my personal " unsatisfaction, or " complaints to the Company," so far as his relations with either myself or th<» Railway Company are concerned, by certifying mmi mmeqttivofally that I regard him as most peculiarly fitted, in every respect, for the performance of the very ardnoos and responsible duties which have been assigned to him. in the Construction and Financial Departm*-^nts of the Road. " The above recommendation, when taken in connection with the important fact, as stated in his letter to t President of the 31st March, 1875, as foUovA's : " but fin* that the $»tatements made by Gen. Seymour were having if anything a contrary eifect on Mr. McGreevy from what he intended. I withheld the information, not wishing to injure him," should certainly induce the Cashier to refrain from anv further " reWiafion" unless he has become satis- fied that the course which he has taken in this matter, will raise him still higher in the estimation of his present Employer. POINTS SUBMITTED BY THE CHIEP ENGINEER. /^or the consideration of the S/>ecial Committee, in answer to the charges respecting his complicity in the contract. Ist. That inasmuch as the Presidont first received information respecting the supposed complicity of the Chief Engineer in the contraction he 12th Octobor, 1874, directly from Samuel L. Keith, whom he knew to be a member of the Chicaco Contracting Company, it was his duty, if he believed in the truth of th«^ information, to cal the immediate attention of the Chief Engineer to the fact » and, if he did not exculpate himself fully, to suspend him at once, and report the case to the Board of Directors. 2nd. That inasmuch as the President did not do this ; but on the contrary, has continued his official relations and intercourse with the Chief Engineer, upon the same terms as he had done before receiving this information ; and that, some mouths afterwards, he informed the Chief Engineer in the presence of the Board, substantially : " that he did not regard the matter as of sufficient importance to jostifY him in bringing it to the notice of the Board ; and that it probably never would have been brought to the notice of the Board, if he, the Chief Engineer had not then openly called attention to it; " and subsequently, on the 17th March last, the President having made a public decia- :»'^.i ill ii: 24 NORTH SHORE RAILWAY. ration, before nearly two hundred people, to the effect : " that all difficulties had been satisfactorily arranged, and that we were now on the eve of a new departure," &C' And still later, on the 8th of April, 1875, having given his full and open concurrence to a Kesolution adopted by the Board of Directors, in which the long and faithful devotion of the Chief Engineer to the interests of the Company is fully endorsed ; and the coiifidence of the Board in his future faithfulness to the interests of the Road, fully declared. And inaisinuch as the Chief Engineer is not charged by the President, in his present statement, with having committed any act, since the dato of the above mentioned acts and declarations of the President, which can justly be regarded as forfeiting his claim upon the (,'ompany for its continned confidence, it is submitted that neither the Committee, nor the Board, have any just grounds for taking further proceedings in the matter. 3rd. That iiiasmucli as the origmal verbal statement made by Keith, is quite as direct and reliable as any written statements which he or his associates have since made, the President has no more grounds tor believing iu the truth of these statements now, than he had on the 12th October last ; and therefore, having condoned or dis- regarded the original statement, he has now no rifrht,^ either in justice or equity, to ask the Board to td-ke any action in Ihe matter. 4ih. That there is nothing, either in the President's state- ment, or in his correspondence with Keith, to show that his Ir.te efforts to establish th? truth of his charges, have been conducted in his official capacity as the President o£ the Company. On the contravy, Keith's letter of March GRIEF ENGINEER VERSUS PRESIDENT. 25 til is- 26th, 1875, ill which reference is made to : " your letter enclosed in one from Mr. Prince," is addressed to : " Ool. Wm. Rhodes, Quebec, My dear Colonel,'' from which the inference is conclusive that it was a priv lie correspondem 6, Otherwise the letter \rhich Keith had received from " Col. Wm. R; odcb," and Keith's reply thereto, should have passed through the hands of the Secretary, and become matters of record in the Company's Office. The same remark will apply to the letters from Prince to the President ; and the copies of letters received by Prince from Dunlap, which were en- closed to the President for his private information and guidance ; all of which should have been depo.vited with the Secretarj'-, and thus rendered accessible to the Direc- tors at k'ast, if not to the Chief Engineer, whose proper standing with the Company was so much endangered by them. It is therefore submitted that these facts place the Pre- sident outside of the Company's interference and protection; and that they should be regarded as sufficient to justify the Board in refusing '' pnrticipntion in the responsibilities the President has assumed " in his statement. 6th. That a careful analysis of the President's statement and the letters submitted by him in support of his case, will show that each of the parties has a special moiive for pressing and confirming these charges against the Chief Engineer at the present time, as for instance . Prince, openly avows his motive to be *Wet(dtation " for pre- vious supposed or real injuries. Keitli, shows very clearly that he also has a grievance to redress, and that he is still determined " to get even with the Chief Engineer. ^^ in ■'! ' ■; 5 II ■ i=i. 26 NORTH SHORE RAILWAY. Dunlap, is wiUitig that his brother-in-law Print e, shall make Keith's letter and charges public, if he finds it neces- sary to do so for his oion protection against the Chief En- gineer. Smith, " might wish to use it in the suit which Mark Sey- mour has brought against him in New York; as stat»>d in Keith's letter ; and, Col. Rhodes, is threatened by^thc Chief Engineer with a suit in the Courts for defamation of character ; and it is there- fore of the last importance to him, that he should convince if possible, in advance.the Board of Directors^of the truth of his charges, and ^hus induce them to assume " participa- tion in the responsibility the President has assumed." It is therefore submitted, that these motives and con- siderations should have very great weight with the Com- mittee, in the investigation of the case at the present tiire. 6th. That the foregoing statement of the Chief Engi- neer, respecting the parties upon whose letters and state- ments, the President depends to substantiate his charges, is sufiicieut to show, that no reliance whatever should be placed upon either their verbal or written statements ; and that, when taken in connection with the fact, above stated, of their direct interest in the result ; and also in view of the course which they have already taken in this matter, the conclusion would seem to be quite justifiable, that at least a very large margin should be allowed for any statement which some of them might make under oath, in this particular case. Tth. That the laws under which we live, and upon which v\re must rely in the last entreme, for protection against unjustifiable conspiracies, and slanderous assaults CHIEF ENGINEER VERSUS PRESIDENT. 27 of this nature?, declare to the effect ; " that every person should be regarded as innuccnty until he is proved to be guilty ^^ It was upon the justice of this principle that the Chief Engineer relied, when he determined to afford the President an opportunity to prove the truth of his public charges and allegations in a Court of Justice : and also when he wrote to the Secretary on the 15th April, 1875 ; " That unless the parties upon whom the President relies to substantiate his charges, are prepared to add the crime of the grossest perjury to that of the most unwarrantable conspiracy, in order to accomplish my ruin in this life, I shall hope for a fall vindication of my character at an early day." It is therefore submitted, that the special Ccmraittee nnd the Board of Directors, should be guided by the same just principle, in any further action that may be taken in this matter. 8th. That the President having determined, that before bei li^ called upon to respond to his charges in a court of Justi e, where statements can be made only ynder the solemnity of an oath, he will first have an investigation by the Board of Directors, where oaths are inadmissible ; and where the probable facts can be determined only by means of the verbal or written statements of interested and irres- ponsible parties, together with such concurrent circum- sta'ices as may appear to have a direct or remote bearing upon the case ; it is therefore submitted, that the counter statements and denials of the Chief Engineer, together with t.ach attendant circumstances and probabilities as may appear to have an equally direct or remote bearing upon the cake, should be regarded as having, at least, equal I --3 1 1>;P . 'If li 'f : i. 1:1 2|B NORTH SHORE RAILWAY. weight and importance with the Committee, and the Board of Directors. 9th. That the following propositions are therefore res- pectfully submitted by the Chief Engineer, as showing that all the attendant circumstances, and probabilities in the case, are decidedly against the truth of the charges of the President. It is not alleged in any of the letters produced by the PresidvMit, that the Chief Engineer had ever spoken to Keith, directly upon this subject ; but the whole case seems to depend upon what Keith says that Smith and Dunlap > ither have said, or promise to say hereafter, upon the suhject. Having made it a rule of my life, never to have any complications of this nature with Contractors, is it at all probable that I would depart from this rule in the present case, for the paltry, and even contingent consideration of fifty thousand dollars, a portion of which, as Smith is sup- posed to be prepared to state, was to be expended in a house, and the remainder was to support myself and family for life ; particularly when a kind I'rovidence had already secured to my family a house and home that is worth at least half the amount that it is alleged was to be my share of the profits- in the Contract ? Having a salary fixed at six thousand dollars per year, as Consulting Engineer of the road, at the date of the con- tract, is it at all probable that ih? Contra jtors would have then consented to my receiving ten thousand dollars per year as Chief Engineer, after that date, (more than double the salary then being received by any Engineer in Canada) if it had been previously understood and agreed that I was to have a direct, or even a contiv.gent interest in the finan- cial result of the contract ? CHIEF ENGINEER VERSUS PRESIDENT. 29 Dunlap having, in London, during the month of May 1873, while referring to the extra risk and expense at- tending my then and probable future visits to Europe, for the sole benefit of the Contractors, informed me that himself and Smith had always intended that I would make as much out of the contract as either of them ; and upon my declining to entertain such an idea, saying further, that from the positions which I had held, it was my own fault that I was not rich enough to buy out both himself and Smith, and that I deserved to remain poor so long as I entertained such ridiculous notions ; and then afterwards repeating to a mutual friend, the substance of his conver- sation with me, is it at all probable that he would have made these statements, if the agreement with which I am now charged had existed ? Having requested Dunlap to purchase for me a watch in Europe, which he did, and sent to me in the Fall of 1872, is it at all likely, that, upon h * return from Europe, in 1873, he would have directed his Cashier to charge me, and credit himself with the amount, which he did, and I cheerfully paid, if he had then understood that I was a partner with him in the contract ? Having upon the sale of the contract, represented to the present Contractor the arrangement which had been made with me as to salary; and obtaining his as&arance that the arrangement would be carried out in good faith on his part ; is it at all likely that Smith and Dunlap would have neglected to mention the more important arrrangement as to my pecuniary interest in the contract ; or that, if they had done so, the present Contractor would have failed to •call my attention to the latter understanding, when he did ■;'1 ■^H Il 11 30 NORTH SHORE RAILWAY. & to the first, if it had previously been understood that I had «uch an interest ? Having secretly sold the contract for a bonus of from, seventy-five thousand to one hundred thousand dollars,, without my knowledge and consent ; and having left th» Country with the proceeds in their pockets, without evea then or thereafter offering to share the plunder with me,, is it at all probable ihat Just and honorable men would have treated even a silent partner in this manner ; and then,, worse than all, come back upon him and attempt to ruin his character and professional reputation, by charging him with the very act, which, if committed, they must admit,, and others must infer, was the sole means of securing to them the contract, and the bonus which they received for it T They having done all this ; is it at all probable, that if the charge were true, I would proceed at once to incur the hatred and displeasure of their Cashier, Uunlap's- brother-in-law, who must have been in their secrots ; or that I woald einbracj the first opportunity to denounce their partner Keith, (who happened to be the only one within my reach,) for the perfidy of himself, and partners,, who had doceivei both the public, the Railway Company a id myself with reference to their real intentions to construct the Road; and also for his own dishonesty in selling property that belonged to the present Contractor;, and, all this, if he held me at his mercy, and had the pov^er at any time to expose me; and is it not quite un. accountable that he did not threaten me with this exposure on the spot, and thus prevent me from denouncing him further ; and also from interc 3pting his future plans con- cerning \ne Road ? , CHIEF ENGINEER VERSUS PRESIDENT. «fl Or is it at all probable, that, upon my first hearinff of the verbal statement made upon the Boat, by Keith to the President, I would have alluded to the matter in my defense against the President's charges, under date of December 1st, 1874 : " with a view to a most rigid and thorough investi- gation" ; or that I would have had the assurance to write to Dunlap, on the 18th January, 1875, asking him to contradict the statement made by Keith ; or that a month later, thinking that the President might have mentioned the matter to Mr. Fleming, I would have had the auJucity to call his attention to the subject before the Board ; or that, after having been, as I then supposed, reliably informed of the contents of Dunlap's letters to Prince, which had found their way into the hands of the Pres- ident, who was busily publishing their contents to the world, I would have written Dunlap a threatening letter, on the 3rd April, 1875, to the effect : " that, unless you undo this foul wrong at once, by retracting your false and malicious statements, if time, health, and means are gra- <;iously spared to me, and so sure as there is a Grod above, I will follow you to your death-bed if necessary, in order to obtain justice, and^ftSin^paration " ; or that, even since all this, I would have openly charged the President with the wrongs which he was inflicting upon me ; and declared to the Company which I was serving, my determination to commence legal proceedings against its President, unless he retracted his false charges, and made me every repara- tion in his power ? Does all this look like the work of a Traitor Bud Hypocrite ? Does it not rather convey to the mind the idea of an innocent -and injured man, who, after struggling for weary months i ■ :■■ i ! ■ ; ■ I !i..:-;i 82 NORTH SHORE RAILWAY. m Ik l|»s fii ":■ against the insidious attacks of a revengeful foe ; and feeling conscious that the ground upon which he stands is daily crumbling from under his feet, by reason of the secret undermining and machinations, carried on under the eye, and with the approval of the President of the Company, whose duty, in his high position, would appear to be to defend and protert, rather than to crush and ruin him, strikes boldly and fearlessly, although perhaps unwisely, out at his cowardly adversary, at the first moment when he can sieze anything real or tangible at which to aim his blows ; and who, in the consciousness of his own innocence and integrity, openly demands that his calum- niators shall meet him, upon equal terms, in a Court of Justice, where something more than secret whisperings and insinuations ; or even gratuitous and open verbal and written statements are required., before a man's private character and professional reputation shall become a sacii- fice to their envy, hatred or revenge ? It is therefore submitted, in conclusion, that the entire case presents the appearance of a most foul Compiract/, in which Prince, Dunlap, and Smith while endeavoring to avoid all personal responsibility, are maki^ cats-paws of Col. Rhodes and Keith, merely for the purpose of promoting their own selfish purposes ; and that Col. Rhodes, upon finding himself caught in the snare, suddenly desires to assume the, character of Pnsident, and thus throw the entire re* sponsibility of his acts upon the Railway Company. i^Mt- THB CHIEF ENGINEER SUBMITS THE CASE. Referring to the present Contractor, for any information he may give, respecting the efforts of the Chief Engineer to obtain his check for Fifty thousand dollars^ or any other sum. Referring also, to his letters upon this subject, to the Secre- tary, of the 14th and 15th April, and to the Board of Directors, of the 20th April, 1 875, which are now in the hands of the Committee, the Chief Engineer is prepared, with the foregoing remarks, to leave the case in the hands of the Special Committee, and the Board of Directors, so far as this investigation is concerned. In doing this, he is fully conscious of the claims which the President has upon the Board of which he is Chair- man, for its protection and support, as against a surbordi- nate Officer of the Company. But nevertheless, the feeling of entire consciousness in his own past and present integrity to the Company, and oil its interests ; and the further conviction that " thrice armed is he whose cause isjusty'^ impel him to place the utmost con- fidence in the resultj^so far as it can be affected by the calm and deliberate judgment of the Board of Directors, after the most strict and impartial investigation. All of which is most respectfully submitted, SILAS SEYMOUR, Chief Engineer. To THE Special Committee, AND THE Board of Directors of the North Shore Railway C(»mpany. Quebec, 30th April, 1875. r \^i: "I APPENDICES TO THE CHIEF ENGINEEB'S REPLY TO THE CHARGES MADE BY THE PRESIDENT. I, Letter from the Chief Engineer to the Chicago Contracting Company, dated July 29, 1873.... TI. Letter from Geo. L. Dunlap to the Chief Engineer dated Montreal, June 16, l874 in. Extract from " Report of the Chief Engineer, upon the Quebec Railway Aid Act of 1874," dated Feb. 6, 1874 IV. Letters from the President while in Europe, to the Chief Engineer V. Letter from the Chief Engineer to the Secretary, transmitting " Historical Review of the Gov- ernment Standard," dated April 12, 1875 1 ] t ermit of its being opened for business, by the running of one or more daily trains between the Cities of Quebec and Montreal, within the year 1874. 2nd. To fully complete and equip tb.e afosesaid Main ^i n mI? iii;^ •'' ! 2 APPENDIX No. 1. Line, in accordance with the terras and conditions of the orig-inai contract, on or before September 1st 1875, and, 8rd. To lully complete and equip the Main Line, on or before December 1st 1875; and the Piles Branch, on or before May 1st 1877. Havinj^ had, as you are aware, a somewhat large and varied experience in driving work of this kind to com- pletion, agniml lime, as it were, I deem I my duty to point out certain reason?, which to my miiid are perfesjtly con- clusive, as showing the physical impracticability of accom- plishing the tirst, and in all probability the second of uiese undertakinu's, within anv reasonable limits a& to cost, without the expenditure of a considerable amount of money during the present year. 1. The riii'ht of wav should be so far secured, as to prevent any delay in taking possession of any portion of" the ?.ine, on or before the commencement of the working seasun of 18"i'4. otherwise th«^ work will be liable to serious detentions from litigations, &c. 2. The work of graduation is comparatively light for most of the distance, and can be completed withni from two to four months from the time of its commencement, with an adequate force of men and teams ; but there are, in all, some eight or ten milos of grading, which should be got well under way during the present working season, in order to secure its completion in time to Jay the track over it during the Fall of 1874. 3. The timber and stone required in piling and crib- bing for the deep water bridge foundations, should be all delivered upon the ground before the close of navigation this year; and these foundations should all be put ia and well secured, before the ice leaves the streams next. Spring ; otherwise it will be very difficult and expensive^ if not impossible to get them ready for the masonry in. time to secure its completion as soon as it will be required for raising the superstructure of the bridges. 4. The stone quarries should all to be opened duringf^ the present season, and a good supply of stone delivered upon the ground at each locality where masonry is required, in time to commence laying as early as practicable next year ; otherwise the masonry cannot be completed in time for the faisitig of the superstructure of the large- bridges, as soon as the track should be laid over them. APPENDIX No. 1. 8 'I 5. The timber required for all bridges, should be con- tracted for early during- the present season, in order that it may be manufactured, and delivered upon the ground as early as possible, or whenever it may be wanted, during the next season ; otherwise it will be very difficult, if not impossible to procure it. 6. The cross ties should all be contracted for early during the coming Fall ; otherwise it will be very dilii- cult, as well as expensive, to secure their delivery upon the line as soon as wanted. Without entering into a close calculation, I would estimate that about five hundred thousand dollars should be expended in the manner above indicated, between this date, and the first of May next, in order to ensure success. If you can raise the necessary meant' to enable you to comply substantially with the foregoing conditions, I should feel great confidence in your getting the track laid in good working order, between Quebec and Mon- treal, during the working season of 1 874 ; and also in the full completion of the Main Line, according to contract, on or before the 1st September, 1875, provided always, that you can command the requisite amount of skilled and common labor, to accomplish the work. On the other hand, unless you can accomplish as much as this, during the present year, I do not see the way clear for your completing the work within the time or times specified in your contract. And even with the expenditure above indicated, if compelled to be made late during the present season ; and the balance of the work required to be driven under every conceiveable disadvan- tage, during the working season of 1874, I conceive that the work and materials will cost a very large per-centage over and above what they would have cost, if the work could have been prosecuted in the ordinary way, during the prepent year. ^ When I left London, on the 14th of May last, for the pur- pose of presenting to the Railway Company, a statement of your difficulties, and applying in your behalf for a further concession of Three Million dollars of Capital ■Stock, to be placed with the bonds, it was distinctly understood, be tb by yourself, and by the parties who had agreed to form a syndicate which would eupply the money for constructing the Road, that, if the concession WW APPENDIX No. 1. {■}) m granted by the Company, the work would be resumed im- mediately, and carried forward without interruption to completion ; and I was authorized, by letter from these parties, and by a cable received from your Mr. Dunlap, to give the most positive assurances to the Board of Direc- tors to that effect. Furthermore, I have every reason to believe that with- out this assurance, the concession could not have been ob- tained; and your, failure to resume the worV^ and the failure of the ^>arties in London to provide the necessary means for its prosecution, have therefore placed me in a very awkward position, not only in my relatione to the Railway Company, but also to the Provincial Government, to the City Authorities of Quebec, and to the general public, all of whom placed the most implicit faith in my assurances, and favored your application accordingly. In order tc give you ample time to complete the track of the Main Line, 1 extended the time several months longer than the time specified in the form of Supplemental Con- tract prepared in London ; but in doing so, I anticipated that you would require all the working months of this and the coming year, to enable you to do the work economi- cally, and within my estimate of its cost. It you are to lose the present season entirely, and are forced to crowd all the work that should be done in two seasons into one, you will not only be compelled to add a very large per-centage to my estimate of the cost ; but will, in all probability, fail entirely in carrying out your en- gagements with the Railway Company. This failure on your part, as you must be aware, will not only prove a great loss and disappointment to the Railway Company, but your own reputation, both as individuals, and as a Contracting Company, besides a very large per- centage in the actual cost of the work, are in my opinion, entirely dependent upon your expending a sufficient amount, during the piesent year, to secure beyond any contingency the completion of your contract within the- time, and according to the conditions, therein specified. Indulging the hope that the foregoing view of the case,, when carefully considered, will induce you to leave no means untried to accomplish an object so desirable as the keeping of your faith with the Railway Company and the: APPENDIX No. 1. 5 PubUc at large, by successfully carrying out a great work, the completion of which we all have so much at heart. I have the honor to remain, Gentlemen, Your Obt. Servt., (Signed), To THE Chicago Contracting Company SILAS SEYMOUR, Eng. in Chief i| !i "'i f ?i I* i, APPENDIX NO 2. I|JP^ Letter from Geo. L. Dunlap to the Chief Engineer. Montreal, January 16, 1874. Dear General, TVe find matters here quite satisfactory indeed, as you have very often remarked, they cannot be in a better shape. I wanted to advise with you yesterday upon a matter, but felt so perfectly assured in my own mind that the sub- ject would have met with your complete approval, that I omitted to do so. Both Mr. Smith and myself feel much better about the North Shore Enterprise now than ever before, since we think we can plainly see that the plans now about matured will result in tlie early completion of the road, and the Government deserve commendation for their sagacious concessions. Believing that all things will conspire for good. I am, my dear General, Very truly, (Signed,) GEO. L. DUNLAP Gen. S. Seymour, Chief Eugiueer North Shore Railway, Quebec. ?!■ APPENDIX N O o lixiract from the " Report of the Chief Engineer upon the Quebec Railway Aid Act of 1874" Dated Fed. 5, 18J4. '• TRANSFER OF THE CONTRACT •' It may be expected that, before closing this report, some allusion will be made to the transfer, which it is understood has recently been made of the existing* contract to the Hon Thomas McGreevy, of this City ; which contract was executed in good faith, by the Railway Com- pany, on the 5th April, 1812, with Messrs Perry H. Smith, Samuel L. Keith and Greorge L. Dunlap, all of Chicago, Illinois, and doing business here in the name ol the Chicago Contracting Company. Inasmuch as neither the Railway Company, nor any of its officers, have as yet been favored with a notice of this transfer, or an intimation as to its conditions, I can only assume that when the matter is brought properly before the iioard of Directors, it will receive such careful consi- deration and action, as will be calculated to promote the best inter( (its of the Railway Company. Having been chiefly instrumental in bringing about the negotiatio:i of a contract with these parties ; and therefore being very justly held responsible to a certain extent, both by the Railway Company and the Public, lor its being carried out in good faith on their part, I may be per- mitted to say, that it is a source of great satisfaction to me personally to know, that, except the general loss of more than a year's time in the completion of the road, the Rail- f| 14 ■^li' 2 APPENDIX No. 3. Uiy Company has sustained no pecuniary loss by the de- linquency of these Contractors ; and that the result of the contract thus far has been, an expenditure oii their part of about 1200,000 a portion of which has gone to re-imburse the Company for the most of its f rmer expenditures, and to pay its current expenses ; and the most of the balance has been legitimately expended in paying for right of way, grading and engineering, all of which may be made available in the further prosecution of the work. I may also state further, and with equal frankness, that in my opinion it will be quite fortunate for the Railway Company, if it shall be found that the contract has falien into the hands of Mr McG-reevy, whosename, reputation and acknowledged financial ability, will undoubtedly prove to be a source of great additional strength to the Enterprise. The fact that Mr McGrreevy, has alreadv assumed the contract, would seem to indicate that he feels entire confi- dence in his ability to carry out, either the present contract, or such a modification thereof as the company may consis- tently sanction ; and therefore, while in the one case you have had American Contractors, whose sympathies, and interests were very naturally quite foreign to those of your own Grovernment and people ; and whose principal object as they have already demonstrated, was to make as much money out of the contract as possible, and take it with' them out of the Province ; in the other case, you will have an entirely responsible Canadian Contractor, whose sym- pathies and interests will necessarily be in full accord with your own Government and people ; and whose profits, if he should be so fortunate as to realize any from the con- tract, will but add so much to the wealth of the City and Province of Quebec. ' It has for a long time been quite apparent, that, not only the Railway Company, but also the Government arid people of Canada, were becoming more and more dissa- tisfied with the great want of energy and financial strength manifested by these American Contractors, in the prosecu- tion of the work ; and I would therefore expect thjBit a change of this kind, at the present time, would be regarded with great favor, by all parties interested in a speedy re- sumption of work, and an early completion of the road. " :n; it APPENDIX NO 4. Letters fro77t the President, while in Europe, to the Chief Engineer. \ Extract of letter dated, Birnam Woods, Dunheld, General S. Seymour, Perthshire, Quebec, Scotland, Canada. 26th July, 1874. My dear General, I received a short note some time ago from you, report- ing a continuation of the discussion at Quebec, as to the party who were to embark their money, and take chances in the construction of the Railway. From all I can learn of investments in England, there appear to be so many favorable opportunities of placing money any where and every where, and at all rates of interest, that it will be very difficult to engage any Capitalists in our favour, unless we bait very high ; our security is a Railway which will have to be completed hereafter out of its income, and some lands of no real value, except for its timber, which is not yet in our possession. The Railway in the first instance will have to be built out of the funds of our Contractor and his two Allies the Province and the City of Quebec, and if any or a,ll of these interests mistrust each other» then we shall stick. There is of course no object to be gained by Mr. McGreevy exhausting his means, and so losing the advan- tage of being a rich man, as he will only place himself at ..\ w - -\ 'A A ,. . 1 ■ 1 ■ ' 1 ■ jj''"' 2 APPENDIX No. 4. ihe mercy of a public who have already shown the estima> tion they place on such services as those of Mr. Russell. This market is full of Canadian securities, I note, the G-rand Trunk oft'er $300,000 permanent five per cent at A Quebec party also want ^6200,000, .£100,000 cash to- enable them to ship butchers meat to England, which they state can be purchased at a Canadian Port for $0, and shipped for 1 penny per lb. to Liverpool, viz. : 4d. per lb., they wanted me to be a party to this concern, but I de- clined because butchers meat of first quality costs now in Quebec and Montreal $10 the cwt. and I do not know why jei00,0u0 is wanted. ^£5000 worth of meat shipped to- Liverpool and sold for cash on its arrival could be all done on ordinary bank credit of sixty days. I mention this scheme as it is one of Mr. Robertson's to benefit the Townships; and illustrates what a parcel of fools Canadians think the English to be, totally forgettinff- that the English Commissariat know what has been paid for beef to be issued to the troops in Canada for the lasi. fifty years." ^ Yours faithfully, (Signed,) W. RHODES. T/ie President to the Chief Engineer, Extract of letter dated, Kiswick, "Westmoreland, England, 4th August, 1874 Mt dear General, I have your letter relating to you Engineering difficulty with the Contractor, and I note that an expenditure on his part is still progressing. It ought to be our policy to get as^ much money as possible out of the private funds of the Contractor, spent on the works, and to involve the Govern- APPENDIX No. 4. 8 ment both in the management, as well as in the construc- tion of the road. I am of opinion that by next session, the Government will have a new Railway policy similar to that of India, viz. : to build our Railw^ays out of funds raised from their own Government sources, and construct first the lines, that oiFer every prospect of paying something considerable towards working expenses. As we are working, our Contractor intends to build an inferior line in the first place, use up our rails in ballasting, -and leave us to contend with a series of financial difficul- ties, caused by our acceptance of a work, which will require large annual repairs for many years, before it may be considered a first class road, and the construction account closed. If Mr. McGreevy sells his Bonds well, he will make a road in proportion to his profits, but as I notice such Jiail- w^ay securities as Pa. Central are sold here at 46 ($50) and will at that pay eleven per cent interest, I do not think his prospect of selling Railway Bonds good ; and I dont believe he has made" any but very moderate financial arrangements in England. Consequently, Mr. McGreevy may contemplate the necessity of passing all kinds of infe- rior work in satisfaction of his contract. I have no letters from Mr. McGreevy requesting me to call upon the so called London Agents, and as I have no business in London of my own, I do not propose to go to Town. If Mr. McGreevy can be induced to make a good show of work this Autumn a great point will be gained." .... ■ *2 •I? ' W ■ m i 'I Yours faithfully, (Signed,) W. RHODES. ) • ■ 1 ' 1 * 1 ■■■■ i 1 i'l'"' i 11 11 APPENDIX N ' 5. Letter from the Chief Engineer to the Secretary, trans- mitting " Historieal Rcineiv of the Government Standard." NORTH ^HOliK RAILWAY. OFFICE THE OF EXOINEEU IN CHIEF, Quebec, April 12th, 1875 "Mr. Secret AiiY, You will please find herewith, thirty printed copies of of a " Historical Eeview of the Government Standard " which I have recently prepared for the use of the Com- pany. It was my intention that this document should be placed belore the Board of Directors, at its last monthly meetinjy held on the 8th instant ; and previous to my letter of the 7th instant, in which I request to be relieved from the further performance of the duties of Acting Chief Engineer ; but the delay in printing prevented this from being done. I would therefore respectfully request that copies of it be sent to the different members of the Board,and also to the Provincial Government, and the City Council of Quebec, in order that some intelligent and decisive action may be taken upon the subject at the next meeting of the Board, Assuming that the conclusions arrived at in this docu menf are based upon facts, and sound reasoning, as I believe they are, it would seem to be clearly the duty, ■A APPENDIX No. 5. as wiA] as the infer^st of th« Company, to urffo upon the Gov»'rnin»*nt lh«? justice and exj)edieiicy oi' i\n imrn^'diatf* abaiidoitrn^iit of :ii« most, if not all of tlin foolish and unreasonaMr' requiri'mtutis of their Knginet^r, as embo- died in the pre>«ful ** ??tandard ;" and that the Company and th^' Coniraclor h^ allowed to pros.^cute the v ork iu future, very much upon the basis that it has bi'en prose- cuted in th • past, or before the advent of this Uovernment Enuineer. 11 ihi' pres". I do not see how it can consistently persist in h^-apins" additional and unnecessary liurdens upon th' Company and the Contractor, at this most critical period in the history of the Enlerjmse, when, if reports from abroad are tru**. there seems to be very little if any hope of obtaiuiuir money from that quarter, to carry on the \vork upon any ba.*is whatever ; and when, therefore, by insistinir upou ih«- full '' /Mmnd of Jleair the Government stands in very 2T«--at danir'r of losini»' its entire debt ; or rather of defeasing- the object which it originally had in view by !>^rautin? aid to the road Inasmuch as the enclosed document is probably the last communication of any considerable length or impor- tance, that I »ha!! have the honor of placing })efore the Board of Directors, upon this or any other subject while I remain the Afrlimsr Chief Etv^ineer of the road, I desire to state, that in th*-; future I shall rr.lv with entire confidence upon it. in conn--crion with pre\ ious reports which I have presented to th^^ Board upon this subject, lor a full and complete vindi«:-ation of my past administration of the office of Chief Eugin, 1874. 5th. In a pamphlet containing, *' Views of thi^ Engineer in Chief respecting his powers, duties and responsibilities," dated July 16, 1874. 6th. In a pamphlet containing '• Views of the Chief Engi- neer respecting his powers under the contract to change the line, grades and plans, during construction," dated January 30, 1875. 7th. In a " Report of the Chief Engineer upon the Situ- ation," with seven appendices, dated March 4, 1875. 8th. In a printed " Historical Review of the Govern- ment Standard, by the Engineer in Chief," (now transmit- ted,) dated April 6, 1875. A reference to the above documents will show, that my own views as to the clearly expressi^-d requirements, of the contract ; and the character or class of road originally con- templated, and now being esecuted under it, are now and always have been in full accord with the views of Mr. Walter Shanly, and other practical Railway men, both in this Country, and in the United-States, upon the same sub- jects. While at the same time it is equally manifest that these views differ in some imi>ortant particulars, from the views entertained by another class of Engineers, " lohose financial experiences, \&,& stated by Mr. Shanly,) have been wholly in Government pastures J^ It remains therefore for the Railway Company, the Provincial Government, and the City of Quebec, to decide as to which of these theories they will adhere in their future policy respecting this road. To my own mind it is quite clear, that if the theory I 111 'I i !t mmmm mm SIS 4 APPENDIX No. 5. which I have always advocated had been strictly adhered to, the road would be now in a much more advanced con- dition than it is ; and that the prospects of its speedy com- pletion would be much more promising than they now are. While on the other hand, it is equally clear, that if this theory is not adopted and fully adhered to, it is very questionable whether, under its present organization, the road will ever be built at all. I have the honor to remain, Mr. Secretary, Your obt. servt, (Signed), S. SEYMOUR, Chief Engineer. A. H. Verket, "^^sq., Secretary N. S. R. Co., Quebec. u NOKTH SHORE RAILWAY. REMARKS OF THE CHIEF ENGINEER UPON THE CHARGES MADE liY THE PRESir)ENT OF THE COMPANV IN RELATION TO THE INEFFICIENCY OF THF. ENGINEER DEPARTMENT, AND THE GENERAL CHARACTER OF THE WORK. oojo^oo—— : t I. STATEMENT OF CHARdES. The first chargt ^ made by the President, are contained in his report (»!* a tour of inspection, in Company with several of the Directors, on the 16tn, I7th and 18th of September, 1874, o\'er the line of the road from Quebec to Three Rivers, This report was submitted to the Board of Directors at their monthly meeting", held in Oct .ber last, from which the following are extracts : " There are no works bearing a finished character, except the fences ; these I am sorry to say, refiect very little credit on our Engineering Department, v/hose business it is to supervise and report specially upon the character and quality of work under construction, and reject such as is not in accordance with the contract. " And again : " I am sorry, also, to report It REMARKS OF THE CHIEF ENGINEER. ;!: I ill that I did not find our Eng-ineering arrangements to be such as I expected. The officers appeared to me to be defi- cient in energy, as well as in a knowledge of what the country can afibrd in Iho construction of the llailway." And again : " Unless W3 improve our organization, we shall not fully realize the public expectation, viz : that the North Shore Hallway will be a first-class work." The second charge is contained in the President's letter to the Chief-Engineer, under date of October 20, 1874, from which the following is an extract : " I could gain no evidence of the Residencies having been inspected at all, or at regular periods, by the officers at the heads of those departments, consequently, there arc many works neglected, and others constructed in a manner which shews great ignorance or neglect in the persons conn<'cted with such works." The third charge is contained in the President's letter to the Chief-Engineer, under date of November 9, 1874, from which the following is an extract : " I regret exceedingly that I do not find myself in a position to give prtiisc to the, Engineering Stafi", as repre- sented by yourself and your Chief Officers ; but as I hold that the Directors become ultimately responsible for the manner in which the moneys of the Company are expended, they v.'ould be grossly neglecting their duty, if they main- tained in their service, officers who are not in th^f full enjoyment of their confidence. I have, therefore, ^ven my ' opinion of ihe position with a full knowledg ncy the work; which impression::' wo; e iindoubledly the moving cause for his subsequent inspection of the line on foot, which has given rise to the somewhat voluminous corres- pondence which he has thought proper to place before the Board of Directors. It should also be remarked, with reference to the Presi- dent's Report of this trip, that upon its being read to the Board of Directors by the President, I was very properly sum- moned before the Board, and given an opportunity to read the Report ; and also to make such explanations as I might think proper,with reference to the charges therein contained. I explained quite briefly, and as I then supposed, satisfac- torily to the Board, the state of the fencing question, and one or two other matters to which the President had called my attention while passing over the line. And also, the reasons why I had felt it to be my duty to hurry the Directors over the line, without giving them an opportunity to see more of the work. In doing this, however, I must beg leave to state, that I felt every confidence that the President, when he should take his proposed walking trip over the line, would give some person connected with the Engineering Department, upon which he had so summarily passed judgment, at least an opportunity of passing over the line with him ; and of explaining, upon the spot, any matters to which he might think proper to call their attention ; and that his mind would thus become relieved from the anxiety, which he had so frankly expressed iu his report to the Board, respecting the dangers to which the Company would become exposed, unless the Engineer* ing organization should be improved. But it seems that in this, as I then supposed very reasonable expectation, I was doomed to be dissappointed, as will more fully appear 10 REMARKS OF THE CHIEF ENGINEER. lii! from the correspondence which preceded and resulted from that trip. Before referring particularly to this correspondence, however, it is proper to state that, at the date of the Pre- sident's walk over the line, my time was, and had been for some days previously, occupied almost entirely in the pre- paration of a revised schedule of quantities and values, upon which to base the monthly estimates which had been provided for by the contract. And as the President had given me written instructions, dated 7th October, requiring me to furnish him with one of these estimates " as soon as possible," I did not feel at liberty to suspend, either the preparation of this schedule, or of the estimate, unless au- thorized or required by him personally to do so. The time of the Resident Engineers had also been very much occupied with office work during the same period, in order to supply me with the data required for these puri)oses ; so that it happened to be particularly inconvenient, just at that time, for any one connected with the Engineer Department, to accompany the President over the line. IV. THE president's INSPECTION ON FOOT. Referring now directly to the correspondence, it will be seen that, on the 8th October, the President gave me official notice of his proposed trip ; and requested me " to give such instructions to my Resident Engineers as would place him in a position to have the advantage of such recent knowledge as might be in their possession." Although the wording of this portion of the President's letter seemed to be somewhat vague and ambiguous, I did not hesitate to construe it as meaning that he did not expect me to accompany him upon his trip ; but that he did expect «!*' THE PRESIDENTS INSPECTION ON FOOT. 11 le le t the Residiuit En^-ineers to do so ; and I therotbre. imme- diately enclosed a copy of his letter to each oi'the Kesideiit Engineers, with instructions to meet the President at the times and places designated by him " with all the plans, profiles and maps necessary to afford him a full knowledge of the work in all its details ; "and also " to accompany him over their respective Residencies." It will be seen by referring again to the President's letter of the 8th October, that he proposed " to proceed to Mont- real on Monday (Oct. 12th) and on Tuesday, examine the line of Railway, between that City and the Bout-de-lisle, continuing his journey the next day, Wednesday, via Industrie, to Three Rivers, where he hoped to arrive on Friday. On Saturday he proposed to leave on foot for Quebec, over the whole line of Railway, walking about twenty-five miles per day." This part of his programme seemed to be so very clear and explicit, that I could not entertain a doubt as to its real meaning; nor that Mr. Chandler, Resident Engineer at Montreal, would meet the President on the arrival of the boat, on Tuesday morning, and accompany him to Three Rivers; that Mr. Hamlin, Resident Engineer at Three Rivers, would meet him on Saturday morning, and accompany him over his Reeidency ; and that Mr. Lindsay, Resident Engineer at Quebec, would meet him at G-rondine, the west end of his Residency, either on the following Sunday or Monday, and accompany him over his Residency to the City of Quebec. And I therefore, ventured to indulge in a feeling of great con- fidence that, upon the President's return over the line to Quebec, his mind would be more at ease with reference to the character of the work ; and also, that his prejudices ii ?! IMAGE EVALUATION TEST TARGET (MT-S) L

> ^v:^"^ /: '>/ o^ /J «*v^ 7 Photographic Sciences Corporation ^>' 23 WEST MAIN STREET WEBSTER, NY. USSO (716) •77-4SC3 '^ L

m his Field Notes, relating principally to the unsatisfactory state of the clearing and grubbing, fencing, spoil banks, &c., all of which, I endeavored to explain to him, were yet in an unfinished state, and had not been accepted from the Contractor. From the confident tone in which the President referred to his notes, as confirming his previous impressions of the inefficiency of the Engineers ; and his persistency in refu- sing to entertain the explanations which I gave him; together with the fact that he had thus far succeeded in evading the Resident Engineers ; and his avowed preference of going over the work entirely alone, so that the Engi- neers, in direct charge of the work, could have no opportu- nity, either of profiting by his suggestions, or of explaining any irregularities which he might think proper to point out to them, upon the ground, I began to doubt whether I had placed a right construction upon that part of the Pre- sident's letter of the 8th October, in which he said : '' I would be obliged to you to give such instructions to your Besident Engineers, as will place me in a position to have the advantage of such recent knowledge as may be in their j;>ossession " ; and to believe that he had never intended that they should accompany him over their work. The impression also began to dawn upon my mind, which, I am sorry to say, has since grown into a settled and irresist- ible conviction, that the chief object of the President's inspec- .tion of the line, was not to improve the character of the work ; but to endeavor to make good the charges respecting the inefficiency of the Engineer Department, which were contained in his previous report to the Board ; and thus, if possible, to destroy the present Engineering organization •of the Company. I! ! 18 REMARKS OF THE CHIEF ENGINEER. )' 1 I . -.1 ! . hi I ! i li: \ m \ in ' V it * lllih III'' 1 1! If i S\ He had previously told me that " he was after Mr. Lindsay," the Engineer of the Ist Residency, because of the remark which he had made respecting the fencing, and the scarcity of cedar timber in the country ; and also be- cause ho had seen him driving upon the St. Louis Road with his family, when he should have been upon his work ; but I had not suspected until now, that he was after the Chief Engineer, as well as his subordinates upon the staff I had, to the best of my ability, been resisting for months, the open and undisguised efforts of the Contractor, either to break down or to destroy the efficiency of the Engineer- ing organization, for the reason that better work and materials were required than he claimed were called for under his contract ; and I was fully prepared for this legitimate fire from the front, because it was a strict matter of business, or profit on the part of the Contractor, involving as I very well knew, hundreds of thousands of dollars, in the ultimate cost of the work. But, I must confess that I was not entirely prepared to have the President of the Company, whose interests I had so faithfully endeavored to protect, open a most galling fire from a masked battery in iny rear, for the contrary and avowed reason, that work and materials had been accepted from the Contractor, which were far below the standard required by the contract; and tliis, just at a time when my Estimates, embracing the quantities and values " of work done, materials delivered and ready for delivery, and for payments made on account thereof, ' amounting in the- aggregate to more than $600,000, were to xindergo the most searching investigation, not only by the Board of Directors, on the part of the Railway Company, but by competent SYNOPSIS OF THE CORRESPONDENCE. 19 and distinguished Engineers, on the part of the Government and the City Council of Quebec. Whether the impressions which had obtained possession of my mind, at the time above referred to, were well founded or otherwise, may perhaps be regarded as entirely unimportant when considered with reference to their ultimate bearing upon the case. . But, I must beg leave to submit, wuth the greatest respect for the President, as well as the most entire confidence in his disinterested devotion to the best interests of the Railway Company and, perhaps very properly, of the Con- tractor also, that I had very good grounds upon which to base my conclusions ; and also that, if his ultimate object was what it then appeared to be, his mode of accomplishing it could not be considered as entirely consistent w^ith what even he would regard, under all the circumstances, as " Old fashioned English fair play." The President left Pont-Rouge, alone, early on Saturday morning, October 17th, on his w^ay to Quebec, reaching his home during the same day. I met him accidently at the River-Noire, as he was passing, and had some further con- versation with reference to the fencing and burning of brush. Thus ended the President's tour of Inspection. i V. SYNOPSIS OF THE CORRESPONDENCE. A further reference to the correspondence which follow- ed, will show that : On the 20th October, the President informed me officially of his inspection of the line ; and called my attention to so REMARKS OF THE CHIEF ENGINEER. t ■■ several matters which needed correction ; enclosing also a copy of his field notes, for more particular information. On the 23rd October, I acknowledged the receipt of his letter and field notes ; informing him also that I would reply more fully to his letter, after receiving reports from the Resident Engineers, to whom I had enclosed a copy. On the same date,I enclosed copies of the President's letter of the 20th October, and his field notes, to Messrs. Lindsay and Hamlin, Resident Engineers, with a request that they would report upon the same, at their earliest convenience. On the 24th October, Mr. Lindsay, Resident Engineer at Quebec, sent me his Report ; and on the 28th October, Mr. Hamlin, Resident Engineer at Three Rivers, sent me also his Report. On the 3rd November, I transmitted copies of the Reports received from the Resident Engineers, to the Pres- ident ; and also gave such information as he had asked for with reference to my own inspections of the work in pro- gress, together with specifications of fencing, ties, &c., remarking also at the close of the letter : " that it will be entirely agreeable to me, as I presume it will be to the Resident Engineers, to have your letter of the 20th Octo- ber, together with your field notes, and the entire corres- pondence which has resulted from your recent inspection of the work, laid before the Board of Directors, whenever in your opinion, the interests of the Company may require it." On the 6th November, the President acknowledged the receipt of my letter of the 3rd, containing copies of the Resident Engineers Reports, &c. ; and asked for further explanations about the low grade on section 5, stating at the SYNOPSIS OF THE CORRESPONDENCE. 21 he ihe ler the same time, that the explanation of the Resident Engineer, Mr. Lindsay, was " both unsatisfactory and incorrect." On the 9th November, I answered the President's letter of the 6th, making further explanations respecting the grade on Section 6. confirming what had been said by the Resident Engineer ; and also correcting several other mis-statements contained in the President's letter. I also disavowed having expressed any desire to have this cor- respondence placed before the Board of Directors ; but, at the same time, expressed great confidence that if it should be placed before them, a fair opportunity would be given for explanations, &c. On the 9th November, the President made a further acknowledgment of the receipt of my letter of the 3rd and its accompanying documents, in which he informed me : " that the only reply that he could accept as satisfactory was that of the officer in charge of No. 2 Residency." Also, '' that the Report of the Officer in charge of No. 1 Residency is inaccurate, coarse and impertinent." Also, with reference to my own inspection of the work, that : " I am, therefore, still under the impression that the line has never been thoroughly inspected by its Chief Engineer." And closing with a declaration of his own want of confidence in myself and my Chief Officers ; and his determination, after receiving certain further information respecting the fences, &c., to place the correspondence before the Board of Directors, because, to use his own language : " I cannot refuse you such a measure of justice, even if I had the power to do so." On the 10th November, I replied to the President's letter of the 9th, stating that it was not in my power to furnish him with any further information respecting either the i ?f .-f s 82 REMARKS OF THE CHIEF ENGINEER. grade on Seerience upon some of the most thoroughly constructed Railways in Canada, and in the United States. And that during the six years previous to his appointment upon this Road, on the 1st of April, 1874, he occupied the position of Division or Resident Engineer in charge of some of the most difficult work upon the Intercolonial Railway. Mr. Lindsay's appointment was urged upon me by several of the Directors in person, as well as by the Contractor ; and his testimonials are of the highest and most satisfactory character. The work of construction upon the 1st Residency, had been partially resumed by the present Contractor, before Mr. Lindsay, who was then engaged in re-locating the line upon the 2ud Residency, could take it fully in charge ; and since he was assigned to the full charge of the 1st Residency, on the 15th June last, his time has necessarily DEFENCE OF THE RESIDENT ENGINEERS. 25 had Ifore line 1st been very much occupied in surveying, and preparing the necessary plans, profiles, and estimates, of the numerous lines within and near the City of Quebec, preparatory to their submission, by the Chief Engineer, to the Board of Directors. But even with these extra duties to perform, I have every reason to believe that he has always found time to give the work of construction, upon his Residency, all the personal care and supervision that it required. He had three intelligent Assistants, in charge of sub-divisions of about thirteen miles each, who were constantly upon the line ; and with whom he was in almost daily communication, either by letter, telegraph, or in person ; and when I have had occasion to inspect any portion of his work with him, I have always found him fully posted as to all the details of the work ; and, as a matter which I have regarded as of the utmost importance, I have never failed to find him thoroughly honest and impregnable, as against the most constant and persistent efforts on the part of the Contractor, and his agents.or sub-contractors, to force upon the Company a character of work and materials, which were very far below the standard required by the contract and speci- fications. Entertaining, as I most sincerely do, the foregoing con- victions with reference to Mr. Lindsay, and the faithful manner in which he has performed his duties to the Com- pany, I trust that, whatever the consequences may be to myself, I shall be pardoned by the Board of Directors, for declining to join the President in a personal crusade against Mr. Lindsay ; either on account of his thoughtless and uncalled for remark, respecting the present comparative scarcity of cedar timber along the line of the Railway ; or I 26 REMARKS OF THE CHIEF ENOINEER on account of his more recent offence, of being accidentally seen by the President, on one occasion, while he was drivings in the evening with his wife and children upon the St. Lewis Eoad, when, in the opinion of the President, hfr should have been upon his work. I have to state, further, with reference to Mr. Lindsay's case, that I must regard his reply to the President's charges,, contained in his letter to me, of October 24th, and embodied in the correspondence now under consideration, as being entirely complete and unanswerable, so far as the main facts are concerned, with the exception, perhaps, of an un- important misconstruction of the text of the President's field notes, respecting the quality of masonry at the Port- neuf Bridge. Finding, however, that the President, in his notice of this reply, was pleased to stigmatize it as being " inaccurate^ coarse and impertinent,^' I considered it to be my duty to transmit to Mr. Lindsay a copy of the President's letter of the 9th November, in which the above, as well as several other equally offensive passages occur, in order that he might, if he wished to do so, furnish me with a reply which it would be proper to place, with the other correspondence before the Executive Committee and the Board of Directors ; and I have taken pleasure in placing with the Secretary, a copy of my letter to Mr. Lindsay, enclosing a copy of the President's last letter, and his very temperate and well con- sidered reply thereto ; and also, as requested by Mr. Lindsay, a copy of his report to me upon the subject of Fencing, under date of October 7, 1874; an examination of which will show the exact condition of this much vexed question, so far as- Mr. Lindsay's ofiicial action was concerned. '.I >' T to of eral he ich nee )rs; y,a the :on- jay, ider low as DEFENCE OF THE RESIDENT ENGINEERS. 27 Inasmuch as the President has been pleased to ctate, in his letter of the 9th November, " that the only reply that I can accept as satisfactory is that of the OflBcer in charge of No. 2. Residency " ; it seems to be quite unnecessary for me to say anything, in this place, with reference to the charges made against Mr. Hamlin, the Engineer in charge of that Residency ; which charges are contained in the pre- vious letters and field notes, received by me from the Pre- sident ; and embodied in the correspondence. I must beg leave to state, however, in justice to this most faithful and valuable Officer, that, although his appointment, on the 15th June last, was made by me solely at the request, or rather the dictation, of Mr. Robert H. McGreevy, upon whose work, on the Intercolonial Railway Mr. Hamlin had previously been engaged as a Division Engineer for the Government, and afterwards by the Contractor ; and that although from this somewhat suspi- cious circumstance, a feeling of distrust would very naturally enter into my own mind, as I know it has in the minds of some of the Directors, with reference to the relations which might exist between the parties ; parti- cularly when I became more and more acquainted with Mr. R. H. McGreevy's determination to ignore the position and authority of the Chief Engineer, and his subordinates upon the line ; yet notwithstanding all these adverse cir- cumstances, I am most happy in having an opportunity to bear my unqualified testimony to the ability, integrity, industry, and entire devotion to the Company's interests, which have been manifested on the part of Mr. Hamlin, ever since his connection with the Road. I shall therefore consider it most unfortunate for the Company, if either by reason of thd unfounded charges of the President, or ti', i 1 28 REMARKS OF THE CHIEF ENGINEER. the disappointed expectations of Mr. R. H. McGrreevy, his services should be lost to the Company before the final completion of that portion of the road upon which he is now employed. VII. DEFENCE OF THE CHIEF ENGINEER. Having thus, although quite inadequately, performed a most pleasing duty, as well as an act of justice to the Resident Engineers, whose good name and professional reputation have been assailed by the President of the Rail- way Company, to whose best interests I sincerely believe them to be so entirely devoted ; and upon whose verdict, in the case now before its Board of Directors,depends so largely, if not entirely, their future professional success in life, as well as the welfare and happiness of their families ; it now becomes my more unpleasant, but equally imperative duty, in view of the same professional, as well as personal considerations, to speak of the charges, either expressed or implied, which are contained in the reports made by the President to the Board of Directors; and in his letters, which are embodied in the correspondence now under consideration, so far as they relate personally to myself; and to the manner in which I have performed the impor- tant and responsible duties pertaining to the Office of Engineer in Chief of the North Shore Railway, since my appointment, on July 24th, 1871. In view of the fact, that but a small minority of the eighteen Members composing the present Board of Direc- tors, are at all familiar with the circumstances under which I first became connected with this Road, I propose, as a matter of history, as well as in self defence, to refer in the first instance, quite briefly, and without intentional egotism. IN HIS OWN DEFENCE. 29 to some of the more important events which preceded, as well as followed, my appointment as Chief Engineer. In the month of September, 1870, Mr. T. C. Durant, of New- York, with whom, as Vice-President and General Manager of the Union Pacific Railroad, I had been asso- ciated as Consulting Engineer, during its entire construc- tion, invited me to accompany him to Montreal, Three- Rivers and Quebec, for the purpose of looking into and obtaining information respecting the merits of the North Shore Railway and Piles Branch, together with the land grants which had been appropriated by the Government in aid of the enterprise. After spending several days in the above investigation, accompanied by Mr. "Willis Russell, Mr. P. B. Vanasse and others, we returned to New- York with a very high appre- ciation of the value and importance of the undertaking. During the following Spring, I was called upon, at my office in New- York, by Col. Wm. Rhodes, Director, and Mr. Dunn, Treasurer of the North Shore Railway Company, who informed me that they had been requested by the Board of Directors, to see me with reference to taking charge of the road as Chief Engineer ; and, if my engage- ments would not permit of my doing so, to ask me to recommend a competent Engineer for the position. Col. Rhodes called upon me once or twice afterwards, upon the same business. In the month of May 1871, 1 again visited Quebec in the interest of Dr. Durant, for the purpose of satisfying both him and myself, as to whether there was sufficient vitality in the entreprise to justify us in taking hold of it at that time ; after spending several days here, I informed the President, Col. Rhodes, Mr. Russell, and such others of the i It Ui «0 REMARKS OF THE CHIEF ENGINEER. 1 if n Directors as I happened to meet, that if they would come to New- York with proper data and authority, I thought they might close an arrangement with Dr. Durant, for constructing the road. On the 8th July, 1871, a Committee of Directors com- posed of the President, Hon. Jos. Cauchon, and Messrs. Irvine, Rhodes, Russell and Taschereau, Directors, visited New- York with the maps and profiles of the line ; and on the 13th, closed an arrangement with Dr. Durant, by which he was to furnish the moans required for making a new survey of the road. It was also arranged that I should come here and direct the surveys in behalf of the Railway Company. On the 20th July, Dr. Durant informed me, in New- York, that he could not keep his engagement with the North Shore Railway Committee ; and advised me not to come to Canada. I started, however, on the same evening for Quebec, in accordance with my agreement, arriving here on Saturday, July 23, 1871. The President and Directors were very much disap- pointed and disheartened upon my notifying them of Dr. Durant's decision ; but requested me to drive over the line, and inform them whether I could aid them in procuring the necessary means for constructing the road. Upon returning to Quebec, after examining the capabil- ities and resources of the country, I informed the Presi- dent and Directors, that if they could raise the means among themselves for a re-survey of the line, so that I could have reliable data upon which to base an estimate and report, 1 had no doubt that I could induce some of my friends, whom I knew to possess the necessary experience and capital, to undertake the construction of the road ; IN HIS OWN DEFENCE. 31 provided the Company would appropriate for that purpose, its land grant, the one million dollars of City subscrip- tion, and the one million dollars of Municipal subscriptions which the Directors felt quite sure of obtaining from the Counties and Parishes along the line. The members of the New- York Committee accordingly met in Quebec, on the 28th July, and agreed to raise live thousand dollars among themselves, towards defraying the expenses of the survey ; and also authorized me to open negotiations with responsible parties, for the construction of the road ; and also, to re-survey the line. Which action, as I have always regarded it, was the important and decisive step which finally resulted in placing the construction of the road beyond the reach of any ordinary contingency. After spending some days with the President, Dr. Ross and Mr. Russell, in visiting the counties west of Three Rivers, with a view of creating some enthusiasm about the road, 1 went to Chicago for the purpose of meeting some parties from Wisconsin, with whom I had already opened a correspondence with reference to constructing the road. Failing to meet these parties according to appointment, I was induced, entirely through the instrumentality of my cousin, M. T. Seymour, who was then living in Chicago, to open a negotiation with Messrs. P. H. Smith, George L. Dunlap and Samuel L. Keith, of Chicago ; which resulted in a proposition on their part, to construct and equip the road upon the basis above referred to ; which proposition was afterwards accepted by the Railway Company. A complete survey was also made of the line, during the Summer and Fall of 1871, with a view, mainly, of inducing the Counties and Parishes along the line, to subscribe to ,^if 82 REMARKS OF THE CHIEF ENGINEER. '\i k n Ik V ? i' i ■ H I U )'■ r f ^n ij the Stock of the Company; but owing to a defection in the County of Champlain, the entire subscription failed ; and it was therefore thought for a time, that there was no further present hope for the road. During the following February, however, I succeeded in bringing the parties together again in New York, for the purpose of renewing the negotiations upon the then dimi- nished basis of the Company's assets ; which negotiations terminated in a renewed agreement on the 18th of Febru- ary ; and the signing of a final contract by the parties, at Quebec, on April 5, 1872. It may also be proper to mention, in this connection, that during the negotiation of this contract, my salary as Chief Engineer, which had not been previously decided upon, became the subject of discussion between the Con- tractors, the Committee and myself; and it was then fully agreed and understood, that it was to be fixed at ten thousand dollars per annum, exclusive of travelling and incidental expenses, during the construction of the Eoad. It was very well known to the Contractors, that during the previous several years, I had been receiving compen- sation for my professional services, in the United States, quite equal to that amount per annum ; and they therefore expressed themselves as being quite pleased as well as surprised, that I was willing to sever my business connec- tions in the States, and to accept so moderate a salary, particularly when the important services which I had rendered to themselves, as well as to the Railway Com- pany, were taken into consideration. During the year 187^, the entire line was re-surveyed, and located with reference solely to obtaining the best Engineering route " of which the capabilities of the couu- IN HIS OWN DEFENCE. 33 i FY' id iry would reasonably admit " as provided for in the con- tract. The work of construction was also commenced from the City of Quebec, westward, and several miles of grading completed. In the meantime I had prepared full detailed reports, respecting the probable cost and future earaings of the road ; and also, of the value of the Company's land grant, with a view of enabling the Contractors to place the securities of the Company upon the market at the proper time. Two of the Contractors, Messrs. Dunlap and Smith, sailed for Europe, on July 20, 1872, for the purpose of placing these securities upon the market ; and remained there until the summer of 1873. At their request, I left Quebec on the 28th February, 1873, with full Maps, Pro- files, Reports and Estimates of the line ; and joined them in London on the 13th of the following March. I remained in London until the 14th of May, and then returned to Quebec, for the purpose of obtaining an important modification of the contract, on the part of the Hallway Company. I arrived here on the 25th May ; and on the 7th of June, cabled to the Contractors in London, that the Company had acceded to the modification of the Contract. The work of construction was not resumed by the Con- tractors in 1878, although some Engineering was done, at difi'erent points upon the line, with a view of improving the previous location. On the 12th of January, 1874, the contract was trans- ferred to Hon. Thomas McQ-reevy, of Quebec, for a very- large bonus over and above past expenditures ; and it 34 REMARKS OF THE CHIEF ENQINEER * s :< '-■■ 3 lU I was distinctly understood and agreed at the time, that no change was to be made in the Engineering organization, in consequence of this transfer. The transfer of the contract was afterwards duly recog* nized by the Railway Company ; and a supplemental con- tract was entered into with Mr. McGrreevy, on the 21 st of February 1873, in which was embodied the provisions of the •' Railway Aid Act " ; which had, in the meantime, been enacted by the Provincial Government. After placing the administration of his contract in the hands of his brother, the Hon. Thomas McGreevy left for Europe, on the evening of the same day, 21st February ; and he returned to Quebec on 2nd of May following ; having, as he then informed me, completed all the financial arrange- ments necessary f jr a vigorous prosecution of the work. The principal events which have occurred since the return of the Contractor, from Europe, and which may be regarded as having a bearing upon this case, are so fresh in the minds of most of the present Directors, that I deem it entirely unnecessary to refer to them at any length, in this com- munication. It will be sufficient to state, generally, that the work of construction has progressed very slowly and unsatisfac- torily, between Quebec and Three Rivers ; and that a con- stant warfare has been waged by the Contractor, against the Engineering Department, with a view of obtaining the control of the appointments, as well as of the salaries of the Engineering Staff ; and thus to enable him to execute the work in such a manner as might best promote his own interests. While, on the part of the Chief Engineer, an equally vigorous resistance has been made against these- efforts of the Contractor, with a view of securing a proper IN HIS OWN DEFENCE. 85 rork fac- ;on- ithe the Is of pte mn an kese- execution of the work, in accorclanco with the provisions of the contract. This, to me most unpleasant controversy, has at times reached such a point, that I have been compelled to call upon the Board of Directors for protection ; and I am happy to state, that thus far they have endorsed and sustained my course in this mutter. I am also equally happy in the belief, that up to the date of the President's Report to the Board, respecting his tour of inspection over the line with the Directors, in September last, my unremitted efforts to promote the best interests of the Company, in whatever position I may have been placed, were fully appreciated and approved by the Company ; and that, at least up to that time, 1 was in the enjoyment of the full confidence of every Member of the Board of Directors, as well as of the President himself. It would almost appear, that having reached this point in my defence with so clear and satisfactory a record, I might safely leave my case in the hands of the Directors ; but, most unfortunately, I am here met, face to face, with these most damaging charges and insinuations of the Pre- sident ; which if not refuted, or satisfactorily explained, must necessarily destroy my future usefulness to the Com- pany ; and at the same time cast a blot upon my character and professional reputation, which are dearer to me than life itself; and which it has been the work of a lifetime to establish. It therefore becomes my duty to refer again to the writ- ten statements and field notes, upon which the President .seems to have rested his case. In doing this I must beg leave to submit, with all due respect to the President, that even if his charges can 86 REMARKS OF THE CHIEF ENOINEER all be shown to be based upon facts, they still appear to be so trivial and unimportant in their character particularly wh<»n compared with the magnitude of the results which he proposes to accomplish, that it seems almost like trifling with a very serious subject, to refer to them in a manner that would be considered at all appro- priate to the occasion. In fact, I have come to regard them very much in the light with which the President would undoubtedly regard my own statements and field notes, in case I should, during his absence, make an inspection of his fruit farm, winter garden and piggery, in the management of all which he has been so deservedly successful ; and in all the details r . which I am but a simple novice. The President however never seems to tire of exhibiting these statements and field notes of his, to all sorts of per- sons, at all sorts of times. I hear of his discussing their merits with Mr. R. H. McGreevy ; I hear his Brother refer- ring to them triumphantly in public places ; and he even goes so far as to give the Government Engineer, upon whose report tue Contractor depends for one third of his monthly estimates ; the benefit of their perusal as a guide to him in his inspection of the work, in behalf of the Government. As to whether tnis extraordinary course, on the part of the President, is entirely consistent with his position ; and also with the fact that the correspondence had previously Ijeen placed, by himself, in the hands of the Board of Directors ; and by them referred to the Excutive Com- mittee for examination and report, is a matter for the Board to consider, irrespective of any remarks that I might think proper to make upon the subject. - IN HIS OWN DEFENCE. 87 of id My lof rd The President fseems to have entirely lost si^fht ol'the Itict that the contract gives the Chief Engineer power, and makes it his duty " to reject or condemn, at any stage or condition of the ivork, all workmanship or mat«'rials which, in his opinion, may he imperfect or unsuitable," and that it also provides that : •' the Contractor shall correct or replace the same to the entire satisfaction of the Engineer. " It will be observed however, that the President has not charged the Chief Enginer either with accepting,or including in the Contractor's estimates, any work or materials that are not in conformity with the provisions of the contract. The nearest ajip roach that he has made to this charge, will be found in his letter of the 9th November, when he requests me to send into his office, " a specification of the vorks that the Company have paid for under the heading : " Fences and Gates, cash value, $2,947.50." The only requirement contained in the contract with reference to the above item, is the following : "A good and substantial fence, to be composed of durable material, must be constructed along the boundary line of the Company's lands, upon both sides of the Railway, throughout its en- tire length : and convenient gates must be inserted when- ever required for farm crossings, or other purposes." Believing that the character of the fencing which had been constructed by the Contractor, at the time of pre- paring and certifying to the estimate referred to by the President, did not come up to the requirements of the contract ; and being, as I supposed, fully sustained in this belief by the openly expressed opinion of the President himself, I included in that estimate only one half of the amount which he had constructed, and allowed him nothing for the materials which he had on hand. m li'lll ! 38 BEMARKS OF THE CHIEF ENGINEER ii' ill For further information respecting the matter of fencing, I beg respectfully to refer to a letter which I had the honor of addressing to the Secretary of the Company, upon that subject, under date of April 10, 1874 ; and also to the report of the Resident Engineer upon the same subject, hereinbefore referred to. "With reference to the very severe and sarcastic allusion contained in the President's letter of the 9th November, respecting his " finding the Company in possession of two lines of Railway on Residency No. 2, whilst the one upon which the works are built, is not the line we have paid for ; this blunder is one of the Engineers," &c., &c. ; I have to remark, that this case was brought to my special notice in the month of August last, upon being referred to me by the Secretary, enclosing the complaint made by several of the inhabitants of St. Anne, with reference to the loss of their timber, &c. At the monthly meeting of the Board, held in September, I made a verbal report upon the subject ; and also read to the Board a report which I had received from the Resident Engineer upon the same subject ; all of which I understood at the time to be perfectly satisfactory to the Board of Directors ; and I therefore consider it quite out of place to enlarge upon the subject again, except to state, what I am fully prepared to demonstrate, that the change in the line above referred to, has resulted largely to the benefit of the Contractor, as well as to the Railway Company. "With reference to the conclusion arrived at by the Pre- sident, in his letter of 9th November : " That the line has never been thoroughly inspected by its Chief Engineer, ** I have to state, that I have never yet made an inspection of the line that will at all compare with the one so recently IN HIS OWN DEFENCE. 89 made by the President, either in the manual labor involved in its execution, or in the results which it was evidently intended to accomplish. Either myself, or my Chief Assistant, have however, visited and inspected every portion of the work in progress several times during the past season ; and I have made it a special duty to visit personally, either once or twice during each month, every work of importance along the entire line, between Quebec and Three Rivers, If I have not made these inspections so often, and so thoroughly, as the President would seen to indicate it was my duty to do, I beg to assure the Directors that it was not for the want of a desire to do so on my part ; because I have always regarded it as by far the most pleasing, as well as interesting branch of my professional duty, to supervise and watch the progress of work under con- struction ; and if other and more pressing duties would permit, I would much prefer spending my entire time upon the line, than to spend it in any other manner con- nected with the various duties pertaining to my office. Inasmuch as many of the Directors, among whom I will also include the President, are quite familiar with the manner in which my time has been spent, during the past season, I will venture to leave this charge in their hands, without further comment. The President has labored very hard, in several of his letters, to establish the fact, or at least to convey the impression, that I have discriminated against the present Contractor in the arrangement of the grades upon the line ; and he has made frequent reference to the " low grade on. section fiv e," as arranged for the Chicago Contracting Com- pany ; and cor/.pared it with other grades upon the line as 40 REMARKS OF THE CHIEF ENGINEER A K» ti« ' arranged for the present Contractor, in order to confirm this charge. It seems to me that this most cruel and calumnious charge, has been sufficiently refuted in my written explanations to the President, as well as in the reply of Mr. Lindsay, Resi- dent Engineer. But as the President, in his last letter of November 9th, seems to persist in requiring further explanations upon this particular subject, I can only appeal to my Chief Assistant, and Eesident Engineers, as to whether I have not carefully and invariably stu- died the true interests of the present Contractor ; both as regards earth-works, and mechanical structvires, in every case where it could be done with safety to the work ; and the Contractor himself, or even his Brother, R. H. McGrreevy, must, if they have any regard for the truth, bear me witness, that I have never failed to consider any case of the kind, which has been brought to my notice ; and to decide as favorably to the interests of the Contractor, as the circumstances of the case would justify. With reference to the question of " farm and road crossings, cattle guards," &c., referred to in the President's letters and field notes, I have only to say that no finished and permanent cattle-ga8rds, nor crossings, have yet been constructed upon the line ; and consequently, the ones which he saw are probably designed only to serve a tem- porary purpose. "With reference to " spoil banks, " " brush, " " stumps, '* &c., &c., which the President found scattered in such pro- fusion, and in all sorts of improper places along the line, I can only offer in explanation what has been so well said S IN HIS OWN DEFENCE. 41 by the Resident Engineers ; which is in substance, that the Contractor and his agents, have in many cases refused to comply with the instructions of the Engineers with reference to these items ; but that sufficient quantities have been retained from his Estimates to guarantee the proper performance of the work, before it is accepted and paid for by the Company. Having thus noticed, as I believe, all of the specifications referred to in the President's charges, I desire to call attention to the important fact, that none of these specifi- cations refer to work or materials, the imperfections in which, if any, may not be remedied at any time before the acceptance of the Railway by the Company ; and that no objections are made to more important works, the imper- fections in which it would be impossible, either to point out, or to remedy hereafter It should also be borne in mind, in this connection, that the contract being for a " lump sum, " as it is called, the Contractor cannot consistently be required to perform any particular portion of his work, at any specified time, pro- vided the entire icork is completed in the manner and within the time specified in the contract ; and therefore, the Engineer can only endeavor to see, that when the work is done, it is properly done. It is also important to mention, in connection with this entire case, that the present Contractor, when he purchased the contract from the Chicago Contracting Company, evidently supposed that he was also purchasing the full control of the Egnineering Department, if not of the Rail- way Company itself In pursuance of this idea, hia fiiit MMiWiiiga^tr'^iAwk- WM f e i f a n ai ng tbr a ttgfh tbo e ntiro ooi i mty of Pogtnonf ; I : 42 REMARKS OF THE CHIEF ENGINEER V.^i k.i ■41 h im f= tmd nearly if not all of his krtw^sub-con tracts provide, that the work is to conform to the directions of his own Engi- neers, instead of those of the Railway Company ; and the work and material are in some cases provided to be of a very different character from those specified in his contract with the Railway Company. It is also very well known, that Mr. R. H. McGreevy has repeateadly told his Sub-Contractors and foremen, not to pay any attention to the directions of my Assistants ; but to do the work as he directed ; otherwise he would not be responsible for the payment of thei" estimates. The result of this has been that the sub-contractor has endeavored, in the first instance, to slight his work as much as possible ; and when he found that this kind of work would not be accepted ; and that his prices would not cover the expenses of such work as was required by the Chief Engineer, and his Staff; he has, as a general rule, abandoned it in an unfinished state, such as the President happened to find it in, during hif' recent inspection of the line ; and in several instances these deluded sub-con- tractors, have finished their unfortunate career in the Jail ; while their unsuspecting creditors along the line, are suffering most seriously from their defalcations. A further result of this idea of the principal Contractor has been, that he has absolutely refused to pay the mem- bers of the Engineering Staff, the rates that are allowed for similar services upon other Canadian Railways, now in progress ; and has never yielded his right, not only to dictate the appointments ; but to control the salaries and incidental expenses of all members of the staff. In con sequence this mistaken economy, I have already lost the services of one of my most valuable Assistants ; and several IN HIS OWN DEFENCE. 43 of the others will undoubtedly leave, before the resumption of work next season. I haA'e, as before stated, felt it to be my duty to resist this construction of the contract, by every justifiable means at my command ; and in doing so I have, as a matter of couise, incurred the ill-will of the Contractor, and of every one connected with his Department; while, I am sorry to say, the Board of Directors, instead of coming promptly to the rescue, have seen fit to postpone decisive action from month to month, upon the Contractor's yielding a reluctant consent to pay the monthly pay-rolls of the staff, at these reduced rates ; until finally, on the 2Gth ultimo, I received an official notice from the Secretary, informing me, by order of the President: " that it is the opinion of the Board that the Engineer in Chief possesses all the neces- sary powers for the control of the Engineering Department, and that he is held personally responsible for the due ad- ministration of his office." It will be observed however, that the above notice was not communicated to me by the President, until it suited his purpose to fasten upon the shoulders of the Engineer in Chief, the responsibility of all the bad work and mate- rials which he claims to have discovered ; as well as all the delinquencies of the Engineering Staff, and of the sub- contractors, upon the line. While the result of this state of things has been most unpleasant to myself personally, it has also undoubtedly had the effect to impress upon the minds of the Resident and Assistant Engineers, that I had not acted in good faith towards them ; and also that their services and respon- sibilities were not duly appreciated, either by the Railway Company, or by the Contractor. 44 REMARKS OF THE CHIEF ENGINEER These Engineers were all employed with the distinct understanding, as expressed in the Regulations, that their rates of pay would be made to conform to the rates adopted upon other first class Railways in Canada ; but the Con- tractor has, as before stated, absolutely refused to pay those rates; although he has very well known that the Engineering force employed upon the line under con- struction, has always been much smaller, comparatively speaking, than upon any other similarly situated work in Canada. As an evidence of this, I will stat.p. for the infor- mation of the Board, that upon the Nor :hern Colonization Railway, the monthly expenses of the field staff are $*27.15 X^er mile ; while upon this road, when fully organized, they will be only |21.87| per month per mile. As to whether this state of things has had a tendency to strengthen the hands of the Chief Engineer, in his efforts to elevate his staff to that standard of efficiency, which the President seems to have been so greatly disapi)ointed in not finding upon the line ; and for which, as stated in the above letter from the Secretary : " he is held personally responsible," I will leave for the Dirctors to determine. As an evidence that the Contractor still persists in his right to control the Engineering Department ; and also that the President of the Railway Company, notwithstanding the above notice, still recognizes that right, I beg leave to append hereto, for the information of the Committee and the Board of Directors, a correspondence which has re- cently taken place between the Contractor, the Secretary by order of President, and myself, with reference to an entire disbandment of the Staff', on and after the 1st of December instant. Having, however, at this late day, received the above IN HIS OWN DEEENCE. 45 official notice, which I am bound to assume, reflects the views of the Board of Directors ; and having-, as will be seen from the correspondence above referred to, terminated all appointments in the Staff, after the close of the present year ; I now, for the first time, feel that I shall have the full support of the Board of Directors, in making such a reorganization of the Staff, after that dale, as the then con- dition of the work, and all the circumstances of the case may seem to justify ; and for which I shall then, if per- mitted to do so, be fully prepared to meet and assume all the responsibilities. My own " views rc-pcctinu" the pow«'rs, duties, and re- sponsibilities of the Engineer in Chief "have already been presented to the Board ol'Directors, at some length ; and it will therefore be supererogatory for me to refer to them again, except to request, that before taking final action in the case now under consideration, the Board will be pleased to give these views such attention as the impor- tance of the subject ; and its intimate connection with the principles involved in the present case, may seem to demand. I have only to remark, in conclusion, that, from the facts already developed, 1 am thoroughly convinced that there is a perfect understanding between the President and the Contractor, as to the ultimate result which both have determined to accomplish, by means of the present con- troversy, to wit : the breaking down of the present En- gineering organization upon the Road ; although, as before stated, they are each endeavoring to accomplish this result from directly opposite points of attack. And further, that when this result shall have been accomplished, they 46 REMARKS OF THE CHIEF ENGINEER m ■■{* ■ i If- will unite in a recommendation to the Board, for a re-organi- zation of the Department, upon a basis that shall be more in accordance with the views of the President ; and with .:.e interests of the Contractor. It is therefore upon this theory of the case, that i have proceeded with my defence ; but if the Directors shall find that these convictions have no real foundation in fact; I trust that, not only the Board, but that the President and the Contractor will pardon much that I have said, that otherwise would very justly be regarded as entirely irre- levant to the case. If however, it shall be found, either upon the present invest'gation of the case, or from the results which may speedly follow, that my convictions are well founded ; it will then be full time for the Board of Directors, representing as they do, the respective interests of the Government, the City of Quebec, and the holders of the Stock and Debentures of the Railw^ay Company, to consider, whether the object jointly sought to be accom- plished by the President, who certainly can have no pecu- niary interest in the question ; and by the Contractor, who evidently has a very large pecuniary interest in the question, will, if accomplished, best subserve the interests of their Constituencies, in securing to them, and to the Country at large, a first-ciass Railivay ; such as is fully provided, and most liberally paid for, under the provisions of the present contract. Whatever may be the final action of the Board of Directors upon this, perhaps the most important question that ever has, or ever will come before it, I beg to assure the Board, that I shall still entertain a feeling of perfect consciousness* of having at least endeavored, to the best of my ability IN HIS OWN DEFENCE. 47 and judgment, to perform my whole duty to th«» Railway Company, to the Contractor and to the Public, during the entire time in which I have had the honor of holding the position which I now occupy. Since writing the foregoing, I have received informa- tion, from a source which I do not feel at liberty to dis- regard, to the effect, that the President really believes that I had a pecuniary interest in the results of the original contract under the Chicago Contracting Company ; and that my apparent hostility to the present Contractor, grows out of the fact that he has thus far refused to recognize that interest ; ul.so, that this belief, on the part of the President, is the real key to his present opposition to me. If this be so, \vhiIo I appreciate to the fullest extent the justice of tho President's want of confidence in me, if this belief is well founded; I can but regret excee- dingly that it did not suit his j)urpose to place me in a position to refute this most false and malicious accusation, instead of giving it that whispered and mysterious currency which is always so dangerously fatal to the victim of such a charge. As it is, however, I can only give the most unqualified denial of its truth ; and beg that the authority upon which the belief is based, may be placed before the Board of Directors at once, with a view to a most rigid and thorough investigation. All of which is most respecfully submitted, for the consideration of the Executive Committee, and the Board of Directors. SILAS SEYMOUR, Engineer in Chiel^ Dated Quebec, December, 1, 1874. G S k tc C I a y - APPENDIX. Containino the correspondence referred to on page 44 respecting the reduction of the Engineering Staff on 1st December, 18J4. SECRETARY TO THE CHIEF ENGINEER. OFFICE OF THE NORTH SHORE RAILWAY COMPANY, Quebec, 24tli Noveinhor, 1ST4. GENERAL S. SRYMOUR, Chief Engineer, North Shore Railway. Sir, I have been instructed to transmit you herewith, the copy of a letter addressed to day by the North Shore l?aihvay Contractor, to the President of the Company, and to request you will please report without delay on its contents. I have the honor to be, Sir, Your most obedient servant, (Signed), A. 11. VERRET, Secretary. CONTRACTOR TO THE PRESIDENT. Quebec, 24 November, 1874. CoL. Wm. RHODES, President N. S. E. Co. Dear Sir, As the working season on the line of Railway has terminated, and I am desirous to be relieved of all unnecessary expense, I wish jou to see that all the Engineering Staff are notitied that after 1st 2 APPENDIX. prox. tlioir services will bo dispensed with, and thereby save a considerable outlay. The only exception 1 would make to this notification would Ix?, one IJesident En<;;ineer from Three Rivers to Quebec, one draughtsman at (Quebec. If by any means they are kept on after the l>t j»rox, I hope I will not be called on for the payment of tlieir salaries. I remain yours, Very truly, (SifcMied), RoBT. II. McGREEVY, For the Contractor. CHIEF ENGINEER TO THE SECRETARY. NORTH SHORE RAILAVAY. OFFICE OF THE ENGINEER IN CHIEF. Quebec, November 25, 1874. Dear Sir, I have to acknowledge the receipt of your favor of the 24th instant, enclosing a communication of the same date, addressed by the Contractor to the President of the Company, in which the President is requested as follows : '* to see that all the Engineering Staff are notified that after 1st Proximo, their services Avill be dispensed with, and thereby save a considerable outlay. The only exception I would make to this notification would be one Resi- dent Engineer from Three Rivers to Quebec, one draughtsman at Quebec," & ;. I am also vcjuested to report without delay upon the contents of the Contractors letter. The oruy report which I can consistently make upon the contents of this letter, at the present time, is that I consider it entirely out of place for the Contractor to address such a letter to the President ; and further, that if this were not the case, it is entirely impracticable to comply with its requirements at the present time. I will state, however, for the information of the President, that under the Regulations of the Engineer Department, a copy of which is on file, both in your office, and in that of the Contractor, " the services of any member of the Staff may be disj)ensed with upon his being given one months notice." Notice was accordingly given, at the close of last month, by APPENDIX. by the ring II be .lily :esi- at 3nts I the \t it Ir to ]t is Ithe that lich Ithe 3on by ■which the fioUi Staft', holwi't'ii (^lU'boc and Three Itivcrs, will bo materially romUioed ul the fl(»se of ilu' pivscnt niontli. Upon beinj^ informed by the Pre>ident, who for some time past seems to have become the chosen medium of the Contractoi- for com- municating with the Kngineer Department, that the letter of the Contractor is to be regarded as sutficieiit notice of an entire sus- pension of all work upon, or in connection with the line between Quebec and Three Rivers, during any consideraltle length of time; and that he does not intend to])rocure the right of way, nor to com- mence the work of construction west of Three Rivers, during the early part of the season of 1875 ; and also that he will not re(|uire any monthly or jirogress estimates during the coming Winter, I will at once give the requisite notice to the remaining members of the Engineering Start", so as to be prepared, at the close of the coming month, and the present year, to reduce the Statf to the lowest limits to which the interests of the Railway Compan\', and the then circumstances of the case will reasonably admit. I" this connection, I beg leave to state further, that i. ig received oflicial notice from j'ou, under instructions from i fio President, " that it is the opinion of the Board that the Kngii.. cr in Chief ])Ossesses all the necessaiy jtowers for the contnd of the Engineering Department ; and that he is held personally respon- sible for the due administration of his Office, " 1 shall in the future, as 1 have in the past, consider it to be quite as much in the line of my duty, to meet the just expectations of the Board of Directors, as well as of the Contractor, with reference to the most economical organization of the Statf of which the circumstances will admit, during the ditterent stages of the work in progress, as it is to use my best endeavors to see that the Road is constructed by the Contractor in accordance with the true spirit and meaning of the contract ; and also, that I feel quite prepared to meet all the responsibilities connected with both branches of my duty, to the full satisfaction of the Board of Directors; provided always, that I am left free to use my own desinterested judgment and discretion ■with reference to all matters connected with the " due adminis- tration of my office, "for which I am to be held "personally responsible. I have the honor to remain, Mr. Secretary, Your Obedient Servent, (Signed), S. SEYMOUR, Engineer in Chief A. H. VERRET, Esq., Secretary North Shore Ilailway Co., Quebec. APPENDIX. CHIEF ENGINEER TO THE SECRETARY. NOETII SHOEE EAILWAY. OFFICE OF THE ENGINEER IN CHIEF. Quebec, November 27th., 1874. Dear Sir, * Eeferring to my letter to you of the 25th instant, respecting the reduction of the Engineering Statl', to which no response has as yet been received from the President; and finding that the monthly notice of discharge required by the Eeguhitions, must be forwarded to the Resident Engineers to-day, in order to render it fully effective on the 81st December next ; I beg to inform yoa that 1 have Ihia day iorwarded to 3Iessrs. Lindsay and Ilamlin, Eesident Engineers, each a communication, of which the enclosed is a copy. A similar notice was sent to Mr. Chandler, Eesident Engineer at Montreal, several days since. llojiing that the course which I have taken in this matter, will meet with the approval of the President and the Contractor. I have the honor to remain, Mr. Secretarj', Your very truly, (Signed), S. SP:YM0UE, Engineer in Chief. A. II. VEEEET, Esq., Secretary North Shore Eailway Co., Quebec. chief engineer to the RESIDENT ENGINEERS. NOETII SHOEE EAILWAY. OFFICE OF THE ENGINEER IN CHIEF. Quebec, November 27, 187 j.-. Dear Sir, It becomes my duty to inform yon, that it has pleased thu President of the Eailway Company to instruct the Secretary, to ti*ansmit to the Chief Engineer, a copy of a letter, addressed on the 24th instant, by the North Shore Eailway Contractor, to the President of the Company, from which the following is an extract : " I wish you to see that all the Engineering Staff are notified that after 1st prox, their services will be dispensed with. " APPENDIX. Feeling an earnest desire to meet the just expectations of the Eailway Coni])any, jind ofilie Contractor, by .educing the exjicn- ses of the Stati to its lowest practicable limits during tlie coming winter months, it becomes my further duty to give you notice, as required by the Eegulations, that after the clobe of the month of December next, y(.ur services, under your preeent appointment, will terminate ; and 1 will tliank 30U to extend this notice in proper form, to every person connected with the Staff uj)On the Residency under your charge. In giving the above notice at the present time, however, 1 reserve the right to retain in the service of the Company, after the close of December, such members of the present Staff, as the t!ien condition of the work, and the circumstances of the case may seem to require. In view of the present partial suspension of work upon the line, on account of the inclemency of the weather; and of the probabi- lity that much of the work will remain in a state of suspense during the next four or five months ; and also in view of the fact, that the estimate for the present month, may be the last one that you may be called upon to make of the work done and of materials delivered, and ready for delivery upon your Residency ; it becomes my further duty to call your particular attention to the impor- tance of having every item composing this estimate, measured and computed with the greatest precision and accuracy ; also, that the quantities returned by you of work done, materials delivered, &c., should embrace only such as come fully up to the requirements of the contract and specifications ; and also, that the estimate of materials delivered and reftdy for delivery, should embrace only such as have actually been paid for by, and aro now in possession of the principal Contractor, or his authorized agents, to such an extent, that upon being included in the monthly or progress estimates prepared in this office, and paid by the Eailway Com- ] any, they will be quite sure of being eventually jilaced in the >\ ork for which they were designed. In cases of doubt in relation to any of the foregoing points, you will please enter the quest! lable items in your supplemental esitimate, Avith full cxplanatc ;> 1 cmarks ; so that the question may 1)0 decided hero, before the next progress estimate is certified b}' the Cliief Engineer, and laid before the Board of Directors. Your very truly, (Signed), S. SEYMOUR, Engineer in Chief. To JOHN LINDSAY ,\^ L. B. HAMLIN, Resident Engineers, North Shore Railway.