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Clu^J^fi6 (uJ^ A v5 
 
 2/0 
 
 GRAND TRUNK RAILWAY OF CANADA. 
 
 VERBATIM 
 
 EEPORT OF THE PROCEEDINGS 
 
 AT THK 
 
 SPECIAL GENERAL MEETTF: 
 
 HELD XX THE 
 
 i 
 
 LONDON TAYEllN, BISKOPSGATE 
 LONDON, 
 
 On FRIDAY, DECEMBER 28th, 1866, 
 
 Ilf PURSDAirCE OF THE FOLLOWING ADVEETISEMENT: 
 
 "lyOTICE IS HEFiKBY GIVKX, tlmt a Sprcinl General Meeting of the Com,.any 
 ll will 1)0 held at the London Tavern, JSi.shopsgnt.i Street, London, K.t'., on 
 Fridiiy, tlie ^stli day of Decuniljcr, at One o'clock i).m. pi-cciscly, for the i)iiri)oso 
 Dfiicc'eptinf,' the Act i)assed in tlio hist session of the Parliament of the province 
 of L'aniidiv, and entitled " An Act to legalise and confirm an agreement made 1)0- 
 " tween the (^>raud Trunk Railway Company of Canada and the IJuffalo and Lake 
 " Huron Railway ("ompuny." 
 
 At this meeting, under the provisions of the Grand Trunk Arrangements' Act, 
 1H()2 (section ai), Bondholders as well as Stockholders may vote in person or by 
 jiroxy ill respect of such bonds as have been duly registered and deposited with 
 the Company (section 32). (By order) 
 
 KDWARD V7. WATKIN, Presideut, 
 JOHN M. GRANT, Secretary. 
 Graud Trunk Railway Offitos, 
 21, Old Broad Street, K.C. 
 
 October 26th, 1866. 
 
 ^^ ."- '^ 
 
 //■ 
 
 *vVAT^ULd: 
 
 LONDON : 
 
 AND SONS, LONDON \ 
 
 ^ 
 
 Q) 
 
 'U' 
 
 18«7- 
 
 ^„y- 
 
#rantr Cnmft l\aillwa|) of Canalici. 
 
 VERBVTIM 
 
 REPORT or THE rROOEEDINGS 
 
 OF TUB 
 
 Special General Btccfmg, 
 
 HELD AT THH LONDON TA7ERN, BISHOPSaATE STREET, 
 LONDON, ON FRIDAY, DECEMBER 2Stli, 1800. 
 
 E. W. Watkix, Esq., M.V., Presidout, of tlio Company, 
 luiviii«j;' taken the Cliair, 
 
 Mr. J. ]\[. Grant, tlie Secretary, road the notice convening 
 tlio .Moetinj^'. 
 
 Tho Cliaiinian then said — 
 
 Gentlemen, — I will now proceed, as briefly as I possibly 
 can, to state to you tlio business tor wlii(^li wo have suin- 
 moned you togetlier to-day, imd I may sjiy at tlie outset that 
 tlie arran<i:ement whieli will be laid before you rests entirely 
 in your own hands. You liave power to aceep"t it, and you have 
 the power to reject it. If you tlilidv it is i'or your interest to 
 accept^ it, I trust you will do so; if on the other hand you 
 think it is not, it is quite in your ])ower, as I said before, to 
 say that it shall not procet-d fuither. In tlie first place, 
 however, I want to ask you to (>onsider the (piestion in each 
 one of four diif cut jxiints of viinv. .I'irst, wlu^ther that 
 arrangement will lead to a h)ss cither present or ultinuitc. 
 (Ilcnir, hear.) 8ec(mdly, whether it will strengthen or 
 weaken your penuanent position. Thirdly, whctlier it is 
 
4 
 
 Rvport of Special Mvofitxj, Dccotnher '2Sf/i, \H(\(\, 
 
 iio('(V'*s!iry, in order to oomplete v<nir system, us what is called 
 im " idl rail" ruutt>, tVoiiv the Eastern to tlic AV(>st(Mn Stat(>s 
 of America ; und t'ointhly, wliotluu" it would not dama<4e you 
 it* this laihvay of 1(51 miles lon<>' sliould <>h>T intoth(» hands of 
 any one of your (competitors? If you achlress your minds to 
 these four points, and follow me, I will endeavour to o'vo you 
 the facts and arjj[unients as hriefly as I can with regard to 
 each one of them. The general principle, however, which I 
 wisli ro lay down is one upon wliich I have no douht there 
 will 1)0 a common ao-ivement amoni>' us at startin<»'. It is that 
 no air.in^etuent of any kind ouu,']it to he come to whi(!h will 
 est al)lish a i)re-profcrenee o\er any of the existing- preferences 
 of the company. (Cheers.) That is a principle wlii(di I 
 have always insisted upon, and it is one which, so far as any 
 advice or action of mine is (ioncenied, has never in this com- 
 pany been infringed, and has never been infringed in any 
 concern with which I have been connected. Wlien, there- 
 fore, I s(>e an English railway company proposing seiiously 
 to infringe that principle I think I am bound to allude to it, 
 and to state plainly that it is a principle wliich I hope never 
 to see adopted in this country. Let me clear oft' some mis- 
 understanding \\hich ought never to have existed, and wliich 
 has only existed in consequence of a certain amount of mis- 
 representation, by just reminding you for a moment of what 
 you di;l in 1801 — not wliat I did, for I had no connection 
 with you then — but what you did yourselves. In the midst of 
 tlie greatest diificulties, you had a re-settlement of your alt'airs. 
 You first called a meeting of (>very interest into wliicli this 
 company is divided, and you then selected a conmiittee whi(di 
 fairly represented every one of those interests. That com- 
 mittee made a report which was laid before and confirmed by 
 a meeting of all the interests of the company. Upon that 
 report, so arrived at and confirmed, a bill was i)rosecuted and 
 carried with some alterations, but not very considerable ones, 
 in the Canadian l^lrliaTnent, which constituted the re-settle- 
 ment of the affairs of this company, dated August, 18()2. 
 Now, I have said, there should be no prc-preferences. I 
 dare say that some who hear nie will say that those very 
 ara-angements established a pre-preferonce so far as 
 they went ; but they were arrangements which met with your 
 entire consent, and t]u>y ap])eared to you to be matter of 
 absolute necessity. You thought that was the only mode 
 
to acevpt Act coitfiniiihi/ Jiitjf'alo At/rccincni. 
 
 5 
 
 this 
 
 ill wliieli tlio (lifRcullios of Iho oonciTn could be llion dealt 
 w illi. Ill the J'liiglish case to which I luivc alluded, my dis- 
 uppi'oval would conio to nothing if 1 did not know that thero 
 were other ways of dealiii<»; with the diiheulties of that Ku^i^lish 
 concern without infringing upon the rights of the dehenture- 
 holders. This is a digression, however, for whicli 1 ought to 
 apologise, but at the time when this resettlement of your 
 affairs took place the ooui'se you took was the only one tliut 
 was in your opinion possible. You owed two millions to 
 trade creditors for the comi)letion of your railway — that is 
 to say, somebody had found two millions to complete the 
 work, and make the railway a completed property. If it were 
 not completed there would be no interest, either for the first 
 or second ])reference or any other bondholders. Having 
 found the two millions to make it a completed property, did 
 they say they woidd have their pound of tlesh, did they say 
 that if they were not paid they would sell tlie lino? Ts'o! 
 The}' were paid a sum of money < n the security of tlie j)()stal 
 revenue and a certain otlu-r amount in 4th preference stock. 
 They did not get a cash dividend of more than lOs, in the 
 pound, and they took that, because having had to do with 
 the inception and jjrogress of the underiaking, they had be- 
 come morally responsible to you and ^\ishcd to ])reserve that 
 high chavucter for integrity and good faith which hitherto 
 has always had a home and refuge in the city of I.ondon. 
 (Cheers.) Tliat being the state of things, whatever arrange- 
 ment you made witli respect to pie-existing lights Avas 
 qualified by necessity and constant, and was accompanied by 
 the Tiiost self-sacrificing act that any body of capitalists 
 could perform ; therefore I tliink that no stigma can be 
 thrown upon the Grand Trunk Railway for anything it has 
 done in that direction. (Cheers.) Proceeding, however, 
 to the business before a on. 1 say again that if t;nv man 
 can show tiiat the arrangement proposed to-day does at 
 the jn'csent moment, and will in future, in its practical 
 operation, amount to the establislimcnt of a pre-preference, 
 do not confirm it. It is not an amalgamation, nor is it a 
 lease — it is a fusion of the total gross and net receipts of two 
 concerns working together in concord and unity in such a. 
 way as Avill maximinuise the net profits and advantages of 
 both. jN'ow let me say a word upon the history of the nego- 
 tiuLions. This is not a new matter, it has not been done on the 
 
6 
 
 Report of S^pvcial Mwtiiuj, Ltnmlxr 28///, IHCKI, 
 
 instant, Imstily, without ronsideratloii, l)ut tlir iiiatlor luis 
 been before you lVo(iuoufly, and Ims l.crii (lisciissed upon 
 many occasions. Tlio first date I niiisl <riv(> you is l-'ebruary, 
 1800, when nojrotiations took ],htco between tlie (n-arnl 
 Irunkand the CJreat W(«stern of Canada, wliich led to an 
 iigrecment, never eonfiniied by vow. in my oimiioii, of a very 
 unwise and unjust eluiracter— whicdi a<,n-eement was ston<rlv 
 objec^tedto by the iJuffah) and Lake JIuron (Vmipany, mid 
 on November 20th, IS(J(), a .stron- letter was written by the 
 chairman of that company, calling- attention to the a-n-ec- 
 ment, which led to a conference between :\Ir. Ross. :Mr. Bhu'k- 
 well, and Mv. Blake with the Btilfalo and Lake Ihiron Com- 
 pany; and in March ISO I, an aoreement was come to 
 between Mr. Hhanly, acting, for the (Jrand Trunk Bailway 
 Company, and jNIr. Carter, acting for the Lull'ulo and Lake 
 Huron Company, which regulated an interchange of traffic, 
 80 tar as that could be done, and establislunl a throuo-li rate 
 sys^m, with division accoiding to mileage upon smdi 
 traihc as could be developed between tliem. It also gave 
 the joint use of the station at .Stratford and at other points. 
 Ihat agreement whicli was subject to six mouths' 
 notice, worked well, and was followiHl by wliat took place 
 as reported to you in J)ecoml)cr, LSfil, vi:^., tlie pr.mosid of 
 u union of interest between the Great Western of Canada 
 and the Buffalo and Lake Huron Company and ourselves. 
 Ihat proposal follosved my first visit to Canada in iStil, and, 
 altliough 1 am sorry to be somewhat tedicais, yet wishin<- 
 you to know the whole of tlie case, I will, with your i.ermis" 
 sion, recapitulate what I said to you in my report"of December 
 m that year : — 
 
 " As respects the net profit to bo canicl on your and on oth(>r 
 Canadian rudways, niudi may ho accomplislud l.y c..-,.,,rrati(,n 
 and union amongst the larger iiitoivsts conoornod. i haw laid 
 before you proposals, suggostod in concert with the niana-oi's of 
 the two other companies, f.,r more friondly and iiormnnont arrange- 
 ments between your com].any, the PnitUdo and Lake Huron, and 
 tlie trreat Western, and whidi ti-rms ar.. now umlor (Uscussion in 
 J-ondon. If caiTied out, I believe tliey W(add secure to cadi 
 ot those comi.anies a considerable accession of tralllc at more rc- 
 iiinnerative rates. Tlioy wonld economise <'xp,>nditai-e, utilise tlie 
 plant of the three coini)anics to a great extent, save outlav of 
 capital, and afford greater facilities to the public. At the same 
 
th(> 
 
 to \tcefpt Act coHjlrmituj DtijfaJo Agreement. 7 
 
 tinio tlio arrun]!;j(MnontH Hn;:c<;;osto(l Wduld ho in aopordanco with the 
 tnio jMilioy of ( 'iiiiHilii, its tciuliiiy to develop on ii .sound and por- 
 iniiticnt basis the route of the St. Lawrence." 
 
 A bill was iufroducL'd iiito tlio Oanudiiin rurliumeut in 
 ISOI, but, as 1 reportod to you in July, 18(J2, " the JJoard of 
 " tho Grout "NVcstoru Company of Canada havino; ultimately 
 ** docdiuod the terms of arranjivnu nt, sug'^^ested the previou.s 
 " autumn between the Giiind Tiunk and Gri-at Western, and 
 *' also between those companies and tlio lUilfalo and Jjake 
 *Mluron Company, and much delay in comnmuiratin<^ that 
 "decision havinj^ unav()i(hil)ly arisen, nej^otiatiims were re- 
 *' .sumed by the then chairnjan of tlu; (ireat AVestern Company, 
 *'3lr. Head, and the alternoon before I left Enj^land for 
 " Canada, tho term.s of a new an-anocmont on the general 
 *' sehenje ])roposed by Mr. Head were, subject to the tecttlement 
 *' of some important details in Ctinada, contirmedby the Great 
 *'■ Western IJoard. After my arrival in Canadii, and in accord- 
 " ancG with tliat arrangement, an agreement was also entered 
 "intoAvith tho IJuifalo and Lake Huron Company as follows: — 
 
 "Tliat we, tli(( undersign(id, actuig as the representativt^s of tlio 
 (Trand Trunk ivailway wf Canada, the (Jreat Western Hallway of 
 Canada, and tho ilii!iiil(t and Lalce liiiron Ivailway Conipany, do 
 liereliy nmtually agree to make in chis present session aii[)lieatiou 
 to the Canadian Legislature for an Act to lie in sueli form a.s may 
 i»(>et the approval of the Hon. .Mr. Caitier and the Hon. ^!r. Mao- 
 ♦lonaid, AUorneys-Cieneial of the Province, to enable the tliree 
 ahove-uami'd couijianit s to v.oi-k toge.her as one railway com[)any, 
 and that the (tovenimeiit lie a)tplietl to to support and earrv 
 througli such ap|)lieation. We do also hei'ehy agn • that the tliree 
 chairmen in London (ICnf.da'.id) ^;llil!l settle all tlie nione}" and other 
 terms so far as the Ihitialo and Lake Huron Kailway Company is 
 concerned, eitlier at once, or oil the }iassing of the aforesaid ' En- 
 ahling Act,' as the respective hoards in London may decide." 
 
 In December, 18(52, tiie report tlie Directors made to you was 
 confirmed, and tliat report contains this passage : — 
 
 " The Passenger vecei])ts of the con)pany, always liithei'to meagre, 
 liave shown, when compared with the corres])on(Ung half-year of 
 18G1, a considerable falling off, arising' partly from the eml)a,i;rass 
 nients in tlu' LTnited States, and partly from the reduetion, in the 
 earlier ))i\rt of the half-year, of the tlirougli Western passenger 
 uain service of the L^rujid Trunk Company, made in ex])ectation 
 
8 
 
 Pppnrf of Sprrini Mufimj, D,r, ihcr t>8f/i, 18(1(1, 
 
 of mi curly tuHion witli llic (livnt Western ('(.nq.anv. im»l rcsiilt- 
 iiiK for tlu' tiiiu' in coii.siik'iuljk' lu'iidit to tliat cunipMiiv. This 
 tlmiiiirli hM'ivie,' liius iK'ciuvstoml. Soiuc »lili;ivnn'M InivilifriiriMi'u 
 in CmmikIii, l.ctsvccM t!i.. (I.iiiid Tniiik nii.l ( iicnt W.iHtein Cnin- 
 panit's, tho licaid nia.lc an olU-r to tlie (livat Western Hoard in 
 Knuland to iij,'re« for houio iixed teiin to refer all «nieHtionH «)f 
 dilleiviicMf hetwecii the two euiii|ianies t(» fiieiidly url.itiatittn, and, 
 althoii<,di this oiler wa.s not aeeepted, the (Jivnt Western IJoiii.l 
 expressed its desin; to meet and en.havonr <r dispos" of nil such 
 qiu'sfiont* ns they uiosc, in the lir.st instance. 'J he tli»-ongh working 
 arraM<;enients witii the IhilDdo an<l Like IFuion Company for ii" 
 terclianj,'e of trallic with New York and the Wastern States, have 
 I'cen much improved during tin- half-year ; bnt trallic has l.eeu 
 lost to the r.utliilo Company for want of an ade(|nate sup|.lv o*" 
 lollm-r stock, and the rate of exchange has dc.-,ti()yed much of" tho 
 jn-ofit, on the tralHc actnally carried l.y this r<.uti'! The directors 
 will endeavour to jn-cservc! friendly relations, and to extend intor- 
 chang.. of trallic with all the ruihvavs eonne.-ting with the Grand 
 Trunk." 
 
 Tlion, ao-ain, if wo look to tlu> followliio- rcpoi't in ,Jiuu\ 18(;;}, 
 Avhicli was also laid bi-l'uro yon and tHnillrnied, vou will find 
 it tlioro stated : — 
 
 " The anxiety of the J5oard to preserve cordial relations with 
 the Great AVestei-n Company of Canada has been often cxliihited 
 during the j.ast two years, and the last report states that an oll'er 
 had hecn made on l.clitdi'of the Grand Trunk Railway Comiiany 
 to the Uoard of the Great Western Jiailway Cumpaiiv, to sul.mit 
 all matters in diir.rence to arhitration, and had l-cin (Krlincd. 
 Duiiiig the ))ast liall'ycar (iuesti(.ns have arisen, as the I'.oard fore- 
 saw, which might have Keen thus (juietly disposed of, and if further 
 and needless competition should unfortnnately now arise, yo\ir 
 ]}oiii'(l, whih' jirotectingyoui-Just rights, will not be responsible for 
 any un:oward consecpieuccs to other interests." 
 
 Then wc como to tho af^rconicnt of ;31st DooonilxT, LSdO. 
 I do not mean the agro(>nient I have to lay before you to- 
 day, but that of JJoeember, LSO;], which proposes a system of 
 " throuoh-booking," and gives to each (;ompany respectively 
 running powers over the lines of the other for certain pre- 
 seribed traffic, and then provides for the ultimate lavino- 
 down of a third line between tho two points ; but limits"^ thS 
 powers to a certain extent, confining the running of tho (irand 
 Tnmk over the lUitfalo Company's line to the through trailiu, 
 
to acvept Art attijirtnitui Jiiifftt/o Aijrivmcnt. 
 
 9 
 
 rcsiilt- 
 This 
 
 lo tlic exclusion of flio local. "\V(> found, liowcvcr, that wo 
 could Lj,(t no piotlt if wo were dcltiu-vt'd from picking uj) and 
 sett in;;- down tho locul trullic, and tho trains contincd to 
 " throu}fh truiH(! " would not jiay. In conMoquonco of that 
 wo nuulc tho contract of .June, 1S(1 1, and at tho mooting; that 
 was held liert' on tho !Mh of Juno, ahhou<i;h thi' seal of 
 ooni|niny was not attached till sonu^ time later, that 
 uji;roonu'nt was contirnu'd. I went, at that moot in{X, at ^nvat 
 len^A'th into tho question hofore you. Und(>r one of tho clauses 
 of ttiat a^i-ei'inont if was I'Vovided that an Act of tho < anadian 
 l*arliunient should 1-e a;)|)lied foi', and allhouj;h tln^ a;;i'eo- 
 mont thus had received the sanction of tho proprietors at a 
 special nu'(>tinu,-, still, as it was a nuitter of <i:roat importanco 
 that you should ha\ o <;iven to you the full and eoiupleto power 
 of I'l'visinpf your own decision, a clause was introduced into tlu; 
 ]{ill, which jjiovided ihat tlu; .\ct should not come into fort e 
 until you luul a^-ain considered and contirnied tho decision pre- 
 viously conu; to. The Bill was passed, and its ojjponents wero 
 mainly tho ro])r<^sentativos of the ( Jrt at, AVestern of Canada. 
 Now, as everybody knows, my policy and my roconnnendations 
 have always been that tho (jireatAVestern of Canada, tho Ihitfalo 
 and Lake Huron, and tho Grand Trunk, should work to^-ethor 
 in u most cordial manner, in ordi r to increase tho dev(>lop- 
 nu>nt of tho tratlio, and malce together an "'all rail" lino 
 throuj^'h Canada. Tho efiect of tlmt would be that a very 
 largo i)rofit, whitdi could not be derf/ed ^\hilo tho three eon- 
 oorns wore separate, would be derivid when that union took 
 place. If the Great Western, and JhiU'alo, and (i rand Trunk 
 wero one concern, and had one interest in working, the result 
 wouhl be that in u groat many cases, if not in all, the Grout 
 Western, instead of handing all that truilio which comes to 
 the Suspension J bridge to the American lines, would send it 
 along yours, and instead of going 20i) miles, perhaps, v\vy 
 the separate, it woukl traverse 800 or 1,000 miles of the col- 
 loctivo Groat Western and Grand Tiunk system. It is like two 
 nuMi in a business, one buying and the other selling, comi)i>ting 
 with each other, whereas, by working harmoniously together, 
 tliey both get the profits. I think I may claim that I 
 have never asked you to do anything that Mould pre^■ont a 
 friendly union with the Great Western of Canada; on the 
 contrary, I have exhausted every effort during tho past five 
 yourjd that I have been connected with tho company to bring 
 
10 
 
 Report of Sperial Mvethui, Docmhor mi,, i.,6(;, 
 
 not to enable tl.em to ol,s(nio(- ourhein n - 11 , l' • IW C 
 
 mmmm 
 
 tho e lines m existence, an.l that beino- tbe er -or t nt 
 made we must endeavour to comrt it in t e bos .-, 
 
 tl ' , r ^ "'>)e<^t".ii ,v IK,, aroso in my iniiul witli n.Hu.it 
 TT«,v 1 cu : ^*-^'^^^^ ^" 1^ ^^ii'^ tlio bare poss Inlitv of flm 
 
 I ,„'■■? f "' L"sto.ns ,luti,-s. or nnylliim. to olistn.o 
 W 'vc f'nt' 'r' ^''"r;""'"''^ ^"''1 i"<livi,lu.l..-l,ut 1 1 n 
 
 th- t of I "'\"'<^»''' I""-"'" a I"'I!<y w'airl, h «■.)■■«. tlK.n 
 
 '■oL°,i;;'r:^ ""■'"■ ^';'";'"'' -'"l-"", ionhc rnoaon, (4 
 .1 .t f , * «'>"il.v.» Ihrmo-.x. lilx.n,l. I ,lon„t hdiovc 
 
 ir t Tlv, •"',""""5 "* *'"■■ t'"''«l States Mill „..( i„ 1 
 IvMvH,. 1 •- \JJ^^i^. iita;.) -iiH re IS one ])()iu(.i louo']. 
 
 a to";: ;,;:'■;,;■"'■ •=- -»'>-a,io:/, „,i...... ,v,,i..i' tiliv 'i,;:, 
 
 a„i»toclM,u..||„.s,,;.,. n,l... ,„,]„. A,„.Ti,,„,lin..s.:,ml, hut 
 
 ^ 
 ^ 
 
 ,..^ 
 
 I 
 
 i 
 
 I 
 
ht accept Act eoiiJiniiiiKj JiuJ/'a/o Aijrccmcnt. 
 
 11 
 
 wo slumld <:(ivo up sollinn. cur lickcts In Amoi-ica tlirouo-h our 
 own system of ngoiirifs. Now. our \y\\\\i object has been to 
 make the Grioul Tiuuk a po])uhir route for passeuo-er and 
 ^•oods traffic from the Alhuitic cities to tlie Western '^States. 
 The devch)pment of your " tliroiioh traffic;" has shown iluit 
 that policy lias been successful. A cordial understanding 
 has been come to as reg'ards transit between those carrying- 
 cm trade in Canada and the United States, which has'had 
 not merely a good effect upon your resources, but has 
 produced an excellent moral effect in making tlie t^'aders 
 on each side of the border moie dis^josed to co-operate and less 
 disposed to quarj'c' tlum tliey were bel'ore. (Che(-rs.) What 
 woxdd have been the consequences if wo had fallen into llic 
 traj) set for us by the American lines? Do you lliink you 
 would have luid nuich of the "through trafHc"'if tliey wi^re to 
 sell the tickets for you? Would 'you not have raised an 
 angry feeling among American merchants,, who are no^\• vour 
 customers I Tliey would say, and very justly, "You have 
 done away with a,ll the advantages whi'di' fornu'ily resulted 
 to us from yo'u- liberal poliry, and we will now get ou'r Govern- 
 ment to abolish the lU iidi'ng Act." ^\\\ yom- directors, no 
 doubt, do sometimes make n:Ist;:,kes, but l' do not think w(> 
 have acted wrongly in t lie ccnivse which va- have taken. I 
 thcmght the proposal sosi ri(,u-;a one that I had intended to o'o 
 out to America to (onhn- with ?Jr. Ib'vdgcs on th(^ subject; 
 but I heard at tl;e end of October that tlie lialtimore" and 
 Ohio,oneofther!)ur American c(.mi'auiesjiad stale d that they 
 would withdraw from the coml.ina'ticn. In tluit altered state 
 of the case our insti actions to '},\v. I'rydges were to protect 
 the interests of the Crand Trunk, for it was quite clear that 
 we could not go into a com! inalM.n \\:]\vi\ we were threatened 
 Avith ostracism and v.it!) tlie sto].j;a,ge of our througli traffic 
 if wo_ rel'used. Well, now, much has been said about this 
 combination, and our reI'M.-.al to j(»inin it, and the consequent 
 competition that rei'usal lev! to. " The brief answer to it all is 
 to be found in a pai'agrap»h in a htter \\Tiich 1 received this 
 morning from M r. iJrx dges. The letter bears date 3Iontreal, 
 l)ecember 14. lie says ;—'• The fight with the American 
 linos has been brought to a conclusion, they having agreed to 
 the terms which we have all along (.ffe'red them— viz., a 
 discrhninating rate in ( ir favour between llu^ Wost and the 
 Xew England Slnt(\s, both in pas.sengers and treiuht." 
 (Loud cheers.) And he furtlicr adds: •■ Tlu>e AnaTican 
 
 4 
 
12 Effort of Special 3Iccii,i<i, Dccewhvr 28///, i860. 
 
 lines have been sadly disappointed that our traffic returns 
 have not shown a diminution during- the time thev chose t(» 
 fight us but tluit, on tlie contrary, we are the onlv railway 
 on this Continent, east ot Chicago, which, during the last six 
 raontlis, has shown any increase at all." (J.oud cheers.) 
 iNow, gentlemen, I dismiss that subject. With re-ard to the 
 question of tnifhc, Mr. Brydges 'estimates J^Ct^^ 
 tra he m tlie hall-ycar, notwitlistanding the disadvantages 
 under whicli it has been working, of £10,000 sterlin.v 
 whereas, on the other hand, the Great Western returns, ?o 
 iai- as they have been published, show a decrease already of 
 ^o(v.84; the Michigan Central, £;}8,'200 ; the 31ieluVn 
 Southern, £20,000 ; the Illinois Central, £1:^7.000; %o 
 ( lucago and Alton, £4o,000 ; and t)ie Erie, £51,000. Now 
 1 think that, inasmuch as the same causes that operated to 
 tlieir disadvantage with regard to tlieir ••'through traffic" have 
 operated to ours, tliis is a proof, added to many otliers. tlu.t 
 the development o your resources still cc iitinues, and that 
 we can look forward to iurtlier developmenc in future of the 
 o(.,l traihc m t],e country to which we always look as the back- 
 bone o our revenue on all occasions. (Clieers.) I don't know 
 that 1 have much more to say, except again to allude to the 
 tour points with whicli we started. Tlie first (uiestion I a.k 
 you o consider, and after all it is the main question in the 
 bondludders' point ot view, tliougli not in the sluireholders' 
 will this arrangement cause a loss? In tiie report whicli has 
 been sent to you we have shown you franklv llie operation of 
 he agreement under eacli half-year, aiuf that there is a 
 balance o loss u|)on the two years' working equivalent to 
 £12,2^4, to Avhich the loss on American currency must be 
 added. I may mention in round figures, and I could give 
 the details It required, that the total traffic we have inter- 
 changed with tlie liulfalo and Lake Huron Comi)any within 
 t he ast twelve months lias amounted to nearlv ,^2.000 00l> 
 Ut tliat amount we have earned on the Bullalo" and LakJ 
 I uron line i^l,200,0()0, k;aving $800,000 as the traffic thro 
 on this line by the Euffido Company. If tlie iJuffido line 
 belonged to tlie (uvat A\ esteni or one of the American lines 
 the whole o that traffic would not be lost to us. for much' 
 
 W Tl'n rm,/''^'^"' v"^"'^ ^^' ''''''''^^' 8^00,000 repre- 
 sents £100,000 and, It you take off the discount and allow 
 tor what would in any case be exchanged with us. that suui 
 would be much reduced. To go to 1 lie very verge of the thin..- 
 
30. 
 
 to accept Act confirming Ihijf'alo Atp'eemont. 
 
 13 
 
 returns 
 ' chose to 
 Y railway 
 e lust six 
 
 cheers.) 
 ird to the 
 srease of 
 
 vantag'es 
 sterling-j 
 
 turns, so 
 
 1 ready of 
 lichigt'.n 
 )0 ; 'the 
 
 Now, 
 >rfited to 
 ie" liave 
 L^rs, til at 
 md that 
 ■e of tlio 
 he huck- 
 I't know 
 a to the 
 m I ask 
 
 in ilio 
 lolders', 
 lieh has 
 at ion of 
 re is u 
 dent to 
 nist be 
 Id give 
 
 hiter- 
 within 
 
 :»o,ooi>. 
 
 I Lake 
 thrown 
 lo lino 
 1 lines, 
 
 much 
 
 repre- 
 L allow 
 it sum 
 liuu' — 
 
 I will put it as high as you like — and suppose that you get 
 thr(!e-fourths only as the profit, even then it is plain, taking 
 the account on both and not only on one side, you are. over 
 and over again paid in money for the possession of this line. 
 Tluit is a question -which any man can demonstrate for 
 himself; but we recpested ^Ir. Jirydges and Mr. Ilickson to 
 go thoroughly into this question of interchange of traffic, 
 and we give you these figures as their calculation of total 
 residts. Any one can investigate them, we are quite willing^ 
 to sliow them to Grand Trunk sliareholders who do not come 
 here to represent Great Western interests. Then, again, 
 with respect to the working of the line, any one must know 
 that if the two are worked as one they can be worked much 
 more economically, and that is a matter which is to be 
 brought into consideration in deciding '' does this arrange- 
 ment involve loss or give profit?" I ask, with regard to the 
 second point, will it strengthen your pennunent position, 
 knowing the original mistake that was made in the Great 
 AVcstern line, and vour lin-:; not being made a throuy-h line 
 instead of two competing lines, and knowing the fact that the 
 (Jreat AVcstern intends to remain a permanently indepen- 
 dent line, and to ally itself with American routes ? Will 
 any man doubt fen- a momcut that the possession of the 
 Buffalo and Lake Huron llailway, as a continuation of your 
 line, enabling it to be placed in conjunction with the Erie 
 and Xew York Central, will greatly strengthen your position ? 
 It mu}- be said, will you not strengthen their position as well ? 
 < )f course you will. Tlien it may also be said, but you have 
 given very good terms to these people. I am willing to 
 admit tlv.t we have ; but was it not to your interest that 
 we slu:)uld do so ? A glance at the niap proves the second 
 pi'oposition, that the ])ossession of this line strengthens your 
 position. I come then to the third point, whether it is neces- 
 sary, by the possession of this railway of iOl miles, to complete 
 our system as ''an .nil rail " route to Buffalo and towards Xew 
 York. That idso is pi'ovcd by tlie map. J low could the (irand 
 Trunk extend its trafHc over the ]Sew York Central and Erie 
 lines, embracing with their subsidaries a system of 1,800 
 miles, unh^ss it has possession of the line to Buffalo ? Then 
 I come to the fourth point — Would the possession of this line 
 by tlie Great AVestern or any otlier competing line assisted by 
 the Great Western, have a tendency to damage and cripple us ? 
 I should tliink that you have sufHcient experience of the 
 
14 
 
 Uvpnrt uf Spirlnl Mntnuj, Dvcrmlnr '^^f//, 180(1, 
 
 w 
 
 0].oriiti()ns of tlio Great Western of Canada to ^varn you nol 
 readily t.) liaye ^^-our system cut olF a! P.i'is. Let us assume 
 t hat^tlie Inilhilo luie beloiin^d to tlu; Xew Vork CvnXvid or to 
 the Crreat We.stcrn -N\l]at woul'l be tla^ eifecl upon tlie trafJie 
 g-omg to I>ostou ? Instead of liavin- the mileao'e for tlie wlioli^ 
 b()() nnlos, as ^vn now have, if they liad ]>ossession of this fun- 
 nel, you wouW ho stopped hy tlie Great Western, who, follow- 
 ino> out their duty an<l interesis, would deliver it to the 
 American hues. Can any man, taking- a. calm and dispassion- 
 ate viewot tins question, and considering it in that serious 
 manner in which alone it ou-ht to he considered, doubt for a 
 moment that it would be a serious damage to the (irand Trunk 
 to bo deprived of the possession of the liutlalo and Lako 
 Huron line ? (" Hear, hear.'") There, gentlemen, I think I 
 have proved my case. At all events, I jjave laid before you 
 tliolactsand arguments-a,rguments against as well as for, 
 ^vJlIch I thmk ought to induce you on tlio whole to agree to 
 the proposition \\-hich I ha\G to su'.Muit. 
 
 I will conclude by saying that, nt»t satisfied with our own 
 opinum, wo referred tlie matter to jtessrs. ]5rydges and 
 llickson, >Mth nistructions to make a special report on the 
 .subject, so that if there were anv n(>w circumslances wliich 
 miglit imtigate or alter tlieir opinion, vou ^anM luive an 
 opijortunrty of re-eonsideiing it. 'Vlmt Report was dated 8rd 
 ot December last, ami contains tlio following passages :— 
 
 " In regard tn t!u« ilirou-li tmltlo, the ix.s.ossieu of tlie JJatlhlo 
 Lmc between Stratford and Fort K,i.. h/is been ..f verv consider- 
 able value to tho (h-and Trunk tJonipany's main li.H> b.'tween 
 tetrattonl and Detroit, because, wjien the two ii„es were worked 
 mdepei atly, there was never any pro;,.- control of action, and 
 the cousequeuoe was, that the tliron-li husiness was o-,,u,a'ally 
 fsinall; but, sbice the line has been w<.i'ked as j.art of tlPe Grand 
 irimk system, this throa-h business has been very consid.'ral.ly 
 iiicrease<l, especially in i)asse!i;4ers. * •-• * i 
 
 It is true that the course of trade in Westc>ni Canada is somewhat 
 cnanging, and that a smaller (|uautitv of produce iinds its way to 
 American markets across the Niagnvi, fronti,.r. and a !ai--.-r (nian- 
 tity to Montreal and the J.o>\cr Trovinces, throu-ir the St 
 LaAvreiKv and 1,v May of Poftlan<l. Still ne Ihid tla- bnsiu(>ss" 
 that IS <)tf('rnip; to "(t acr(,ss th(> Niagara frontha- jit Jhitlido, ru.t- 
 withstanding tli<' large iucrease taking ].laee in that to the- l.ower 
 J roymces, is also growing, ami it would n^ally serni. fr.an our 
 traflic returns, as if the Custom's dilHculties, which the ( Wf-ress 
 ol the United States hav(> throun. iji the N\a\ of the trade, have 
 
 ? 
 
 > 
 
Id, 
 
 vou not 
 s {issuino 
 tral or to 
 lie trafHc 
 lie Avholi^ 
 tills I'uii- 
 ), foUow- 
 t to the 
 spussion- 
 t serious 
 ubt for a 
 (ITrunk 
 1(1 I.ako 
 think I 
 I'oi'c you 
 1 as for, 
 ii^'ree to 
 
 )ur own 
 :cs and 
 t on tlio 
 i wliic'h 
 lavo an 
 ted 3rd 
 
 JJutfalo 
 >iisi(Ier- 
 bctwoeii 
 
 • 111, ami 
 
 Micrally 
 
 (Ira I id 
 
 (It'i'altly 
 
 ncwliat 
 
 way t(j 
 
 ■ i|iiaii- 
 
 :lie 8t. 
 
 ILsillOSS 
 
 i>, Hot- 
 Lower 
 im our 
 
 •ngrcs.s 
 c, liavo 
 
 to arci'pf Acf vi>nfinuinii En (fa In Af/rccmaif. 
 
 15 
 
 not. liad tilt' fH'c't, of (liiiiinisliiTiir it to the cxti'iit that \ras 
 uiiticiiiatcd. That tiiu course of !fi,dslati()ii hi the United States 
 will c'oiitluiie, f( !■ ^,oiiie years to e(4iie. of th(> saiiu> cliaractor as 
 that which was adoiited at the last Session of (.'oii;i:ress, is prol.aMe ; 
 hut that it will l>e ulthiiately ptrinanently ad(.ptcd seems almost 
 im|tossih]e to helicAt'. The greater the ri'strictious thrown in the 
 way of intercliann'c of trade between Canachi and the' United 
 (States, the .juicker it seems to us must the natni'al recoil from 
 sTich a state of circuuistauces ensue, and when once the l)arriers 
 are Inoken dowji, the tlcnv of trade will be greater than ever it 
 Was before. 
 
 " Whilst, therefore, fidly knowing that tin: present political and 
 connneicial condition of affairs in tlie United States may be cal- 
 culated for a time to r(>tai'd what would ulherwise be a very large 
 trade, W(^ are of opiidon this (piestion should not be looked at 
 wu)[»ly as one all'ectiiig our j.osition lo-ilay. but as certain to be 
 s(H)ner or later ehang'od in (he direction of more enlightened 
 vi(jws. 
 
 " We consider that New Yoik, b(>ing tlie great commercial 
 centre of thi> Uiated St!\tes, it would be inj'uiious to a proi)er 
 growtli of our trade if, as regards the uiiiin shi[»p!ng poii.its on the 
 Atlantic, we were not in a position at the West to oifer to all those 
 who (hsire to send rlieii' pro[ievty to New York, as good a route as 
 other lines jtossess. There is a \rry large amount of business done 
 by ])ui'ties in the West with New Y(,y\i, Eoston, and other phices. 
 They vvo;.!!! tertaiuly l»refer to deal with a {'omiiany which would 
 send theu' pro|)erty to all i.h(;se pohits, ratiau- tlian to have to con- 
 line themselves, as in our ease, to enly thc^se ])laces with which a 
 cei'tain [iro])ortion (if their busine.^s is traiisacted." 
 * » * * * * 
 
 " Wi^ ha'.e in I'onelusion. tlierefore, only to ex])ress our strong 
 conviction that the true intercuts of this Comi>any require that 
 tlie agreement with the Ihitfalo and I,ake Huron Company should 
 b(^ confirmed." (( 'lii-ers.) 
 
 I now heg'tonioveilie following' resolution — '^'' That the Act 
 passed in tlie last Session of the Parlianiont of the Province 
 of Canada, and entitled 'An A(d to legalise and confirm an 
 Agrccnient made bei ween the firand Trunk liailway Com])any 
 of Canada and tlie Ijufi'alo and Lake Huron llailVay Com- 
 pany/ 1)0 aeeepted." 
 
 Mv. PoTiKU seconded ire motion. 
 
 The (.'iiATiiMAN— Genii- lucn, I am noM- in your liands. 
 
 Mr. IsifKKAvooT) thouglit that tlic Chairman had made a 
 slight mistake in staling' that no pre-prel'eivuce has been 
 
16 lirporf of Sprdal MMn,,,, B,.,cmhcr 28/^, ] m, 
 
 Tr(.wji,sini„r|o.i„al,sh.„vlu,Ic|or 
 
 osfal,]fs]u,l in tin's r„ini):inv 
 
 first, second and third dd.cutu 1 """^ '^"* "^'^ ^"^>' *^'« 
 
 but also the eciuip,„ont ni^ "^ " n^' ^Zr" "'"' 'T^ 
 point upon wliiol ]io thnno-U i i -iJ^w-e was anotlicr 
 
 that wa. that ho cLdemU .'.V'"^'^'', '"^ ^^^ ^^•-■'^-nd 
 Chairman of tlie Cth 1 -.iV li^^^"'^^ *'>^"- ^^'^^^ tlic 
 deemed it neeessty tfiTo Inofl " ^'""^^^"^^ ^^^^ 
 
 iioN-cr been in suclil bad nosifinn I'i <^ «"'Pany, which ],ad 
 
 wuy. Some time\l, the^S 3 T T '"^ ^^'^"^'^ ^^'^'J" 
 roceiving .t;7 000 f wM- ' i "''' I'^^'il^ay was only 
 
 i*30,000:andirLtole];' rrV' '''''' "^'^^' ^^^^"vin^ 
 -o^.er the LoncIT Si^hJlSl^^^l^r K^il^-f ^^ ^""^ ^^ 
 would be m a sinular state of prosperity ^ ^ "'^^""^ 
 
 ^12,000 on the tl tars Wf ^^Jf ^^^^ total loss was 
 
 that loss M-as nu.de in^ a mur .1 ^ " ^^'' ^7'"^*"^' I'^^'t^o^i of 
 fact, lost more, a d vcro s 1 " .?" ^"^""^•. ^^^^^^^^ '^-^^ "^ 
 wouldseemto^how;^.^ y^^ £3"^ ^^- -port 
 
 capifnl cost of tlie tun U,„.« tf ,. • ■** /''"'"'"''""^ "' 'ho 
 
 .sh'uidiK^iK,oo,.:iJ ^d :o';™rr- "'"'"^ ?^* i'™«*» 
 
 outlay, „nd not upon to il ' c .'•"I'<'<-<ivc oaj.ital 
 
 the JU,«aIo and S , . I^?™ hti?' "T'''^ •'"" °*' 
 monta ill regard to iLnvd,,;, ,f . "'"' '''tfly lioaid some arsu- 
 
 frarod thatatpri^ntt h":X™v "'°'' ""Lopular, bnt ho 
 
 quostion, and ^^:^X::zz:^t^^^ '?•'* ■^ 
 
 Huron Company. He would l^o o. ...i . I J^^^^^do and Lake 
 of the directors of the G^nd Trunh P ^'""^' ^^'^'^'^^"- ^'^V 
 
 ;n any way with the bS^^^^ ^ ^;;;:-i----eeted 
 
 becau.se hey had heard so many thii^^^J wi 1 n ?ho^i"?7^^' 
 months in which some of the Lneatest nanVpil 1 '''^ >''^ 
 up m the most un])leas^int mnn. Z vi '^"^ ^^^^ ^^ixed 
 
 Co.npan,a.M.?^i/l|£?-'i:rSrtli;",£d 
 
ism, 
 
 I Nluir(<li()l(lor 
 ^ of t]u> firHt 
 not only tlio 
 nt ovcr'jiini, 
 was anotlior 
 1 word, and 
 ns tJiat tlic 
 tnpany Juul 
 , whi(;h Jiad 
 LVunk liail- 
 y Avas only 
 ' roccivin<^ 
 iro time or 
 y Coin])any 
 
 (} to by the 
 ' tho oxist- 
 1 in far too 
 d loss was 
 portion of 
 ^y liad, in 
 'he report 
 iico in the 
 ct i)rofits 
 ^0 capital 
 ' for mile, 
 jIo tliat of 
 miQ ai'gu- 
 Hmiclinie 
 1', but he 
 [)osite ox- 
 1 to ask a 
 indLako 
 ther any 
 ^nnectcd 
 ompanj^, 
 last fc\v 
 n mixed 
 matters, 
 They 
 P)utfalo 
 irectors 
 
 /o accept Act coiijinnituj liuffalo Aijrccmcnt. 
 
 n 
 
 of that Tonipany wore conneetod in any way witli tliis, and 
 if, on the other hand, tho diroctoi's of' this C'o^upany were 
 (!onnooted in any way with that Company. 
 
 Mr. SroKKs— I !i:n one oi those who wish to support and 
 help oil tho pr(>s(Mii: hoard of manaseuiont. I eame into this 
 concoin sumo years ago, and 1 found tliat until within four 
 or hvo years ago it was going vor>' far hack indeed. Step 
 by sto]) wo appeared to bo going back ; but about that tinu; a 
 rolorm was made in tlie Board, and since then everything 
 has been don;^ tliat the Board of Directors could possfbly do 
 to further the interests of tlie (ompauy. We have luade 
 great progress since th.on, and we have invariably gone on in 
 the riglit direction. (Cheers.) You have heard I'roi.i the 
 ( 'luurman to-day tliat tho connection with the Jhdfalo railway 
 is not a mattei' of six months or any other short period, but tluit 
 the arrangement has been in oxi,.'tonce for some two or tliroo 
 years. ^ Great progress has already been nuuh^, and under its 
 provisions it has been proved to bo for the united interest of 
 both railwtiys, and I shall therefore give my C(n-dial assent 
 to tlie amaigamatiui. I think it is a good' thing for our 
 interests, and as I said before, I believe tlie Uiroc'tors are 
 doing the utmost that can be done lo forward the interests 
 of the Shareholders of the (J rand Trunk llaihvay Company. 
 (Hear, lioar.) 
 
 3,1 r. IlAJiTHiDciF, -I should rather like, Mr. Chairman, to 
 know something of your views in connection witli the Great 
 AV^estern Jiailway of Canada in relation to this lease. I 
 took a great deal of interest jji the Bull'alo qu-stion, which 
 >\as Olio that was veiy mucli considered by the late coni- 
 miiloe of investigation. I luive all ahuig felt, as I liave 
 beloie slated, that it v/ould bo well to liave entered into 
 fri(;ndly relations as well with the Great Western of CaiuKhi 
 luiilway as with the Buifalo and Lake Huron llaihvay Com- 
 jiany. Now, I am anxious that tliat friendly relationshi]) 
 shouhl still be secured, and I hope tliat the Chairman will 
 1)0 able to tell me that he still desires to work in union with 
 the Great AVe.stern of Canada luiilway Comi)any, because t 
 must say that he has raised a degree ol' alarm in my luhid by 
 the observations which he has made, and aUo by tile extracts 
 from llio letters which ho has read, because' those letters 
 state that the arrangement we have made with the Buffalo 
 and I.ake Huron Railway would be the means of competiti^ 
 
 

 18 
 
 Ji''j>(,r/ of Spn'ud M(rtin>jyT)vrn),hrr2^l/i, ISlHI, 
 
 witli Iho (u-oat A\ cvstoru on^.i.ad. iJailwav. N(,w, T coiifr.sH 
 t luit tlmt 18 what T I'car. If aa'o net into cuiupetition iiistiad 
 ut workmji: ni Lanii.my iind union with that ('..innany, nmcii 
 of tlio proht will he lust whifl, would othonvi.v' aceruo if 
 we worked m harmony. I am siuv that it would not d<. to 
 amalgamate theeapital aceount, heeause if anylhin..' of tln.l 
 kind were attempted a variety of questi.ms w.,uhl he hitro- 
 duee,l that wouM douhtless tend to prevent union; hut I think 
 tiuit It "ii-ht he arrann,Hl that the o,,.atcst amount of earn- 
 ings shall he ohtained hy ea(di Cnupanv and divided fairlv 
 hotu-een them. No one ean douht that 'it is i,i lavour of ih'e 
 
 nand Irunk ot ( anada Railway that there shouhl he a union 
 hetween it ^mc tl.o Buffalo and Lake Huron limlwav 
 
 ompany. 1 hat hem g so, T am anxious that we should no't 
 
 osethe heneht of that union hy going into eompetition willi 
 
 he Great AVestern of Canada llailway, which eould not hut 
 
 >ad to results which Mould he hijurious to hoth. (Jlear 
 
 near.) ^ -' 
 
 Ln?^""" ^'!f' V^a'l'' "''^ "-^ ^^ "i'l^"''^^ ^''^ ""'''^1 f'f interests 
 
 Gland Irunk of (^.nada Railway Companv. AVe 'have heeii 
 vorking n„,v together for two years, during whieh time we 
 lave had the entire possession of their pro])ertv. and it would 
 l)e extrcm.lyahsurd to dispute and upset the existing arran-v- 
 nicnt, even it we had the ])ower to do so. Jkit I rise for The 
 purp,)se of asking tl.e eliairman whether it isstrictlvaccurutc 
 that the course v. meh has heen adopted does nJt make a 
 '•harge over the preference stock of the (Irand Trunk of 
 Canada Ivailuay Company. As I read it, it does, and a verv 
 
 fv^r' T' V ^"'""T '^ '^''^'' ^''''* ^^^'^"'-^^ any dividend ii 
 pair on the preference shares in the Grand Trunk of Canada 
 Railway Company, this amount is to ho divided. T think 
 
 UvTll '''' p'V'" "n'"^^^' ''^^^^''^ '' '^'^'^ the RufFalo and 
 Lake Huron Railway Company is entitled to a first eluuM.e 
 on the receipts of the Grand Trunk of Canada Railway 
 and that being so, it s'.ems there is a large amount of 
 money to divide m preference to t];e existing stock. There 
 i.s another j.omt on whicji I should like to have some ex- 
 phmation ; not only is there an actual loss as it sec-ms io 
 
 ;;.l of - .l'^'^'' ^^'^^ arrangement, hut there is an ini- 
 menso loss on the depreciation of American currencv. I think 
 
 Ueai h out. lliat loss is very consulerahle in the last halUvcar 
 
1 
 i 
 
 180(1, 
 
 \y, T ('(infi'sM 
 itioii instc.ifl 
 i[)iiny, niucii 
 >o ucci'uo ii' 
 1(1 not do to 
 liiij^' of tlinl 
 .<! bo intro- 
 
 but I think 
 mt of eiirn- 
 vidod fairly 
 Lvour of ihc 
 I be a union 
 m liadway 
 
 sliould not 
 t'tition witli 
 uld not l)ut 
 li. (Hear. 
 
 of interests 
 y and the 
 
 have been 
 I'll time we 
 id it would 
 l,^• arraniL>'e- 
 iso for tlie 
 ly accurate 
 ot make a 
 
 Trunk of 
 iiul a very 
 dividend is 
 of r/ana(Ui 
 • I think 
 •iifFalo and 
 r«t eharg'o 
 
 Railway, 
 amount of 
 k. 'J'lieie 
 
 some ex- 
 
 scenis to 
 ' is an iin- 
 . Itliink 
 iL>'ht luore 
 h;ilf-vear. 
 
 f(j iiccept Act coii^firiniii'j Bujf'iilo Aijrccmcuf. 
 
 lU 
 
 !ind I thiidv I am under,statiii<>' tlie facts wlu'U I say that, taking 
 the loss for th(> last half-year at i;i;j,OUO, if you take the 
 trouble to examine the statement made with reference to the 
 loss of 80U,()0i » dollars, you will find that there has been a. 
 much greater loss on Ameiican currenc^y. If you turn it 
 into English money, it is £ 100,000 ; but I think I am not in- 
 correct if I say that the amount of the loss on American 
 currency is equal to from 40 to 00 per cent., that is, £04,000 
 on the £ 1 00,000 ; therefore, the net receipts have not 
 been £130,000 but under £100,000, and when you add to 
 that the cost of the Grand Trunk Railway, including repairs 
 and renewals, it brings it up to 70 or 80 i)er cent. ; so you see 
 what an enormous amount of net i)rotit you have to make in 
 order to pay the JUitfalo and Lake lluron lliulway. Now, Sir, 
 I wish to state these facts, not with any intention or notion of 
 upsetting the whole affair, but with the hope of endeavouring 
 to impress upon you the ne(;essity of entering into no more 
 leases, an\algamations, oi' arrangements of any kind wdiatever, 
 that, in my oi)inion, is the first duty of the Grand Trunk Rail- 
 way. Now, iu reference to the arrangement made with the 
 American lines, I will say a word or two upon that. It is 
 quite useless to take up your time any further upon the ar- 
 rangement with the Buffalo Company. The object of the 
 combination^of the Americnm lines was clearly to obtain the 
 largest amount of net profit for the shareholders. You arc 
 aware that the American lines for the last four years and 
 upwards have been worked at an enormous per centage on the 
 cost. They have received their fares in " green-backs," as 
 you have received your dividends in " white-backs," and 
 their exjjenses are consequently enormously increased, all of 
 them having to be paid at gold rates. Their object, therefore, 
 was to obtain an increase of fares, and I should say a more; 
 laudable object could not have been introduced by those gen- 
 tlemen who had the interests of their shareholders at heart, 
 and wished to pay them better dividends ; I should, therefore, 
 express my regret that the Grand Trunk of Canada Railway 
 Company refused to enter into a combination with them for 
 the purpose of obtaining remunerative fares. 
 
 The Cm. VI UMAX — We have done so, but we have entered 
 into arrangements on cur own terms, and not as part of a 
 combination, 
 
 Mr. Adams — I am hajjpy to hear that you have done so 
 
20 
 
 Itvport of Special Mirliiu/, Dnrmhn' 2Sfh, I8(i(), 
 
 nou', hut I flunk it uouM luivo luvii i.iu,.], l.ntor if you Irul 
 don. su at tl.coonwncn.onu.nt of iho .•..nibi.mtion ^ 
 
 Mr. A.,AM.s_lho A,ne,„.mi cliroetorsure net nu.n wlu, arc 
 lioro unroasouahle than anyollicrs. I .annot see any ,4 n 
 «• .ywe couM not have c-,„o.v,l Into that (onihinaH.n on"- 
 tan t.nnH o« well as into any o11u>r railway aoivcnunt. 1 ' t 
 
 ha ^ar W T"" "' •'■"^"' '^^^'^'^^^'^'^^ ^'»^- ^iic next 
 
 v«vtrfH;o?th\'''r ''^r'r' ''' "^""'Toliso tluMvholo rail- 
 yy tialhcol thocoh)ny,au,lInuistmnin.l this Meothi..' that 
 11.JM-0 IS ano hor railway whieli is likely toinlerlero ye ry e i 
 
 K lu'" 7' i<;:aif-' In ^'^'^"^^^'' ^'"^ Great ^{^sl^n 
 K.nhs av . J lul all I c.uhl to prevent tlie i)roinoters of that 
 
 01 UM^^ iit J.uUalo, a 1(1 work it iiicunneetion with our raihviv 
 JO- c.n. In my opm on all tlie Grand Trunk iS w" h^ 
 to do IS to earry out its own work and to deycdono t \h cr 
 utino.st extentits own o.,eat resources. It ou<.ht not 1 eJi 
 lore, to enter into_ any leases, anndo.anialions,".n "erne is oi 
 amuij^enients, whicli invoh. a prJterence chaise "" X 
 t'xistmo- stock lam certain that betbro many ycaVha vo 
 
 country like that oi' Canada, the tralll^^wdl t ^i^'ly 
 
 ncrease, and it tlie tralhc conveyed u]K,n this IS w yln 
 
 creases, your expenses will diminish and you will . ile o 
 
 noKKis. \Vc have been waitino- niaiiy years ami we h-ivo 
 
 unioitmiateh that some time has always, ],i(]ierto been hi 
 lie remote luturc-stiU we have always^ been t mm"i h 1, 
 |Ne shall at some time or otlier, have u substan ial i • h J 
 
 a.rW I'n^ ;r '^^^^^'-y^^ the dividend was ^Q^, 
 and lad it not been for some expenses of former years it 
 would haye been larger. I hope, tl.erefore/ti \l un ;x 
 come to make up tlie accounts this half-year, the e w II 1 ' o 
 nore charges h.P renewals or repairs. JsJ^me jK^of ou i e 
 have nodoub been much improyed,and tliere is e^ery re- on 
 to believe that m future years we will have a 're ttly in- 
 proved property. o^<-atiy mi- 
 
ir you liiul 
 
 own trrnis. 
 en wlio arc 
 iiny iVcison 
 inn on cer- 
 unt. If it 
 have felt u 
 1' tiic next 
 tvliole rail- 
 -'eting that 
 very eon- 
 AV^estem 
 2i'.s of that 
 ernational 
 ir railway 
 ilway has 
 •0 to their 
 lot, Ihere- 
 ements or 
 over the 
 cars havG 
 )e a great 
 :h various 
 1 growing 
 ■y larg(>ly 
 Iw-ay in- 
 5 able to 
 he shai'c- 
 we have 
 although 
 , been in 
 m'd that 
 li^wlen(l. 
 :)t better, 
 years, it 
 wlien we 
 ill be no 
 our line 
 y I'eason 
 itlv ini- 
 
 fo (((t'i'pt Acf roiijinniii;/ Ptujlnlo Af/rcChfOlf. 
 
 21 
 
 Mr. CoXYUFAUF, — T am an\iou>* to say a few words on a 
 much higher priiu'ii)le than the (|uestion has hitherto l)een 
 put. r liold in my hand a letter from a noble loi'd, whose 
 opinion on railway matters is entitled to the greatest weight ; 
 I mean liord lledesdale, who lias expressed himself very 
 sti'ongly with refer(>nee to eonlinuod extensions, and to the 
 impolicy of railway eompanies involving themsidves in such 
 diliiculties as nuiny of them are now under. 1 am sure that 
 no one wishes nu)re than myself for the su(;cess of this great 
 Canadian undertaking. No one more than I do wislu^s to 
 see it productive to its fulhvst extent; but at the same time 
 no one more than mys(df wishes to see r(\spccted those rights 
 which all honest men in evei'y coinitry wish to see respected. 
 I therefore nuist say that I feel we are not the people who 
 ought to come hero to fight as (xhareholders, for the ]nii'posoof 
 establishing a pre-])ri()rily over the liglits of gentlemen who 
 poss(>ss first prefertMKjes in this company. 1 say, as I said 
 at the time the original Avrangemcnt Act was passed, 
 that it ought to have heen referred to the several 
 classes reserving their several rights, and it is not for 
 us, the ordinary shareholders, who are mortgagors, to 
 do anything which will destroy the moitgagees' rights. 
 I do not nn^iu to say that I could follow the clear and lucid 
 statement of the Chairnnm in su(di a way tis to answer it ; 
 no one who hears our (Jhairnian gohig through a st dement 
 of facts and liguves can do so witliout beiag struck with the 
 clear and lu( id way in which he puts them to you. 1 think 
 a great deal might be said witli reference to the different 
 routes andjthe very consid(>rable differences in the mileage 
 system. AMien, however, we are asked to enter ui)on a new 
 system of trailic running (vist and west, in connection with 
 the AnHH'ican liiu:'S, and at the same tinu* to take measures 
 to protect our own interests, I tliiidc that th-^ question which 
 Mr. Ilarti'idge has put as to wiiether it will not lead to u 
 possible competition of a seiious character hetween us and 
 the Great Western of Canada, is one of a wry important cha- 
 ract( r, and which cannot he looked at without a feeling of 
 alarm. When T look at the future of the imdertakiug and 
 to tlu; fact that prefei-^^iices have been put, over and over 
 again, before existing preferences, I say that we ought to pause 
 l)efo]-e we u'ive our consent to anv leases or arranijements 
 which, howevei' they may pay us in the long run, will of neccs- 
 
J^2 
 
 I!' port of Spevial Mnfhuj, Dmrnhrr ^^m, lS(i(;, 
 
 M-tvin,]K.s,.ui.n.lonMu-o«ImrK(MH,,o-mn,sf,nrcnIou«in(,itir-,arP« 
 do 1,0, t iunk sud. n ,>ror<.rdino. „n' \umvHi ^m^uMX^H^' 
 tiikni 111 ((.niiect on will, <l,o I'act tl.nt wrw.,., • , 
 
 "HKluluubt the wisdom of t ho Lie y X^^^^ 
 
 ;S.!57^i;;^;^;ir^ t" 
 (11.11 .md lucid stiKHiiont jis closolv as I en,,!,' I -""^H 
 renunn ono or ,„o i„n»is uj„m vl.icl 1 lik iuii', vff" 
 
 •,P 
 

 « 
 
 
 4 
 
 (iC, 
 
 
 >5tj:;jif>oofl. 
 
 
 ^vlu'n it in 
 
 
 lircd com- 
 
 1 
 
 ^y, I very 
 
 
 |>*('d to bo 
 
 
 licCluiii'- 
 
 A 
 
 ustotlio 
 
 
 he Great 
 
 :i 
 
 't'<'ausc I 
 
 . / 
 
 time or 
 
 " \ 
 
 t'd States 
 
 
 5 jnesont 
 
 '• 
 
 akcn by 
 
 
 CO years, 
 
 
 utuiv of 
 
 
 b(>Ii('ve, 
 
 
 mn, t}i(> 
 
 
 part of 
 
 
 beconKj 
 
 
 ss upon 
 
 
 e broad 
 
 
 ' to uy, 
 
 
 not ieel 
 
 
 !ieve to 
 
 
 i^ht not 
 
 
 ! which 
 
 
 or the 
 
 
 / be a 
 
 
 mttinj^ 
 
 
 Iso for 
 
 
 romely 
 
 
 ie yet 
 
 
 artlier 
 
 
 nts on 
 
 
 i. In 
 
 
 :)n the 
 
 
 erica n 
 
 
 -, and 
 
 
 tpo.sed 
 
 
 tlic 
 
 
 kI is, 
 
 
 hi nccrpi Avt conflrmiii'j linjUlo Ji/ircfunif. 
 
 23 
 
 wlmt wii^ tlie prt'(is»> ilUrt of that n.nibinii! ion, and what 
 wen' the terms upon whirli we wt-re to enter into it ? W ith 
 rej^urd to the seeoixl pt.iiit we really know nothiiij^ ut all, and 
 jiirtlmt we know inrespei-tto the first is fr<.ni the stateaient 
 niadcby tlie AssoeiatedCoinpiuiits. That sliiteim-nt mnoimls 
 1(1 this, tliat the ..hjr't of the combination was to obtain re- 
 miiueralive rates lor the tratlic curried ; the rates liitherto,as 
 lias been freipintly mentioned, not havin;^- been sulUciently 
 vemiinorutivo. A seceiid object which they had in view ni 
 iioivtMiij;- to that (M)mbiuatioii was to (h) iiwuy with the sale 
 oFtickcrs by commission a-t'iicics, wliich was a system which 
 the associated railways found extremely o!)]ectionabU' ; their 
 third ol)ject was to do uway with I'loe passes, which had 
 been very miu-h abused. We may then state shortly that 
 tlu' securing? of rcmuneiativu rat(>r. the doinj,' away with the 
 ticket aovncies, and the abolition of \ho. free pass system 
 were the (»bjects of that comhination, and certainly it api>i"ars 
 to me that they were very laudable objects indeed to he 
 iiccomplished. I don't know whether I am <pate correct or 
 not, hut [ have an indistinct recollection that it was stated 
 at the time that the munaj-^ersof the (liand Truidc ilailway 
 had to some degree fallen into this combination, but a little 
 while after it was stated that th(>v had not . t)ne tiling appears 
 quite certain, and that is that tliis (Jompany not only repu- 
 diated the urrangemeiit which was in ide by the other eoui- 
 paiiies which were parties to it, but refused persistently to 
 uccedo to join in a combination which would have tlu^ eiiect 
 of raising' the fares, but actually embarkeil with another 
 company in an undertaking, tlie basis of the agreenumt 
 between them consisting in the jobit lowering ot the lares 
 on 1 he one hand, and a persistence in the touting systeiu ot the 
 sale of tickets by agencies on the other. I understand that tlu^ 
 combination has failed entirely in consequence of our retusal to 
 accede to it. Whether or not the allegation that the agreement 
 we have made with the lUilfalo and Lake Huron Line will have 
 the tendency to make other companies assume an aspect lios- 
 tile to us -livX run their trains in a manner that will be as 
 inconvetiient as possihle to us is correct or not, I do not 
 know; but I feel that it is now rather too late in the day to 
 meddle with the agreement. There is one provision in the 
 lease which was not touched upon by Mr. Adams or Mr. 
 t 'onybeare. 1 do not think they have seen it ; but it they 
 
24 
 
 Hvport of Hpvchil MiTfnuj, Dnrtnhrr 2m, 18GG, 
 
 have tlioy (lid not hoUlc it. nnd to n-lild 
 
 attention in order to m 
 
 the 4tli olau- 
 
 ivn you to what it 
 
 1 1 wish to direct 
 
 e or eondiiion of tlie I 
 
 rn 
 
 "y lead. It 
 
 voiiv 
 
 13 
 
 in tlio event of any a ldi(i„nal eapital 
 
 ease, whicli i)rovides tliat 
 
 j.mrpase of repairs, ,^r,., the nion(>v sliall I 
 
 pital bein--- re(iuired for tl 
 
 lO 
 
 he a tirst c] 
 
 takin 
 
 'ini-yo upon tlio joint net^ 
 
 1^'^, oron tlio iict receipts of tlie w]u)]o 1 
 
 )(> raised and shall 
 m-eipts of thetwounder- 
 
 eliiu-n'c of .i'l; per cent. ])vi 
 
 pendedfor the joint p 
 
 I'liised sliall be c\ 
 
 tiildiv^. A\)w, that 
 
 ereation of ,£'(; per cenV stock 
 
 ninuin, a))d that t 
 
 "le, at a fixerl 
 <e money so 
 
 appears to ine to lead t 
 
 ui-])osos of such uiid 
 
 er- 
 
 o an indelinite 
 
 Mr. ( 
 
 ONYHKAliK 
 
 ^es, and preference stock 
 
 this pn.vi<i„;, -i^ci -^ TttVr ';;;;.7:rj;;:,7;v*'''' "••"* ?*■ 
 t ..t k "s„.,, „,„ - to i.o' inv,^ ' 7;:;!' ;:;M.:':":f 
 
 nil the nrccs.siivj',, 1,^ stock &,■ '■ Vl,., r I'""""* "* 
 tj.t.to (hat ? I do not m«,n „ a . ;i,,H " „ '" ' '■■■'". ™'^ 
 1>iiit on to ma'<o ii^o „r tl,A , ' ™ >'""' <-""t<'i!i- 
 
 il.c.lausc/o ,,r , ten ,, 'T,,f'"''' '" -V" -""'-• "- 
 
 .^.".".lin, not „al, ol' wilt ! 'd !' „*:: '' t;'"" '"l""'; 
 
 but wl.at I ,vi.l, (o lunnvi; „■'"',■' '""'^ "'«'■■*'•'' i'. 
 it. {lh:n; hear ) '* "'"'■'' "'">' >«•■ '"^'Jo of 
 
 pvi^toLJlr^^ioi" :;,;":;::.:',;^7i''t.i;rv "■""^!^ *'- '™- 
 
 occasion to say a icsv ^vV■] .^ i'ke on the present 
 
 '" '^".> 'i iew words with resnect ti^ flw^ i^ i i 
 
 m releronce to the select CVnnudttee o ' w ,1 ^\'' ^"'''''^' r^ 
 -^isniy of the -ventlenieii wl,o ' i ^ "''" a member. 
 
 >n..lo; tl.e inin,v, on , a it , "''"''7 '"■''">• •-<■■" to b, 
 
 f 
 
3G, 
 
 VOi't youi' 
 
 (I. it is 
 iflos fluit 
 d for tlio 
 111(1 shall 
 '<> luidor- 
 tt u fixcfl 
 loney so 
 !i luuli-r- 
 idoliiiite 
 
 lat it is 
 vovih of 
 loiioy is 
 iioction 
 
 ' C'laUSt; 
 
 Iiaso of 
 ■'tn one 
 
 DlltODl- 
 
 ('!• tin's 
 ormino 
 I, more 
 ut any 
 to put 
 M'Ord.s 
 dii'cc- 
 ■judicc 
 iHvred 
 ludor- 
 ! loo-al 
 I'i.uUt, 
 :ed it, 
 idu of 
 
 i l^ro- 
 oscnt 
 '., and 
 nl)(>r. 
 to be 
 v.y of 
 50 on 
 
 to accept Act co)ifinniiitj Bujf'alo Ayrcemoit. 
 
 25 
 
 puitinc^ pro-prcfcronoes, as tlioy have ])oon styled by tlio 
 iHC of'ii no u'- fan plod phrase, hoi'oro all tlio oxisting- charg-os of 
 the Company, and one of the pr()])riotors who spoke with groat 
 force upon that point in the body of the room, referred to 
 somothhig v\hlch took pluoe in tho early history of the Gom- 
 pnnv, with regard to tlie dc^benturos, by which fejomo former 
 charge had bet^i put before thom. V>\\i he qnite forgot to 
 explain that wliik) undoubtedly somovhing has been put 
 before them, something has also boon put behind them, and 
 that the £;5,0u().000 advanced by the (.'anadian (lovernmont 
 instead of remaining before the ordinary b<mds, as originally 
 suggested, and indeed conditioned by the rrovince, has by 
 an Act of the colonial legislature, been placed behind them. 
 He has also forgotten that it was the settled policy of tho 
 Committee^ on winch \ served to have nopre-preforences at all. 
 The piincii)lo of that committee was to deal out even-handed 
 justice to every class of bcmdliolders, and shareholders, and 
 tliercforo wo said to the St. k;iwrence Company and all 
 other companies, "' You must all stand back : >\e will not ask 
 A, V>. or C to bear the burden alone, but you must all consent 
 to be put back, and no pro-]u'eterence can be allowed." 
 I know it is said that there actually was a smtdl pro-pre- 
 ference created at that linu\ That is true. There was a small 
 sum of money required for tho ecpiipment of tho lino, and tho 
 Commitiec tliouglit that thoreouglit to be apro-proforencecrea- 
 tod for that simi. for tho obvious nason that unless a sulHcioncy 
 of stock could be put upon tho lino no money could bo earned, 
 and you wore all concerned in earning something. Th(>ro was, 
 however, no reason why A, B, or (J should boar the whole of 
 tho burden. We thought that all ought to contribute, and 
 that was tlio reason why tho i.'oUi>,i)iiO equii)ment bonds 
 wore placed in the position in wluch tlioy now stand. (Hoar, 
 hear.) So far, I think you ••v(> boiuitl to acknowledge the 
 justice of the policy ad()[)led by tho Conunittee. liot mo say 
 that that Committee did two things. It did the work which 
 you told it to do, and it cost you very little \\i doing it. 
 AVhen tho Committoo had dispo>ed of its work it vanished, 
 and its work remains behind. With regard to tho questions 
 which wo have had brought before us to-day, you must recol- 
 lect that the present Ikuird did not make or in any way pro- 
 nioto the nmltiplicity of Ihies at the western extremity of 
 Canada. Wo found tluMU in existence, and wo had to con- 
 
2G 
 
 Ur}>ort iff Special Mntituj, IMonhcr 2'S///, 1806 
 
 .sH or 1,1 ^vh.t way we could work with tliciii in a rnuni.cr most 
 cMlc'uh. e,l t<. i)roMiote your interest. The liutfalo and Lake 
 I'n'on ( onipany',sline,as;he Cluiirinan luts explained to you in 
 detail, must alu-ays be mlimately eonneeted iVom its .voo- 
 «Taplncal relatioiisln]), with the Uraiid Trunk of Canada 
 Ihat belli,, so, and the Committee seeing tlud, tlioremu.4' 
 
 and X' IS rV" Vt "^''^^ ^''^''''''' ^^^^ Grand Trunk 
 and the Lufralo and Lake Jluvon lines, they came to a 
 
 unanimous decision upon th.e subject, and not only were 
 the Coninn tee in favour of wckiiij. witli the utmost 
 ha,jnony with the Bulhdo and Lake Ihiron Com^.n^ 
 I belu.ve It IS notorious, that tJiero was the strono-est 
 isposition upon the part of the (Irand Trunk to ^^" rl 
 m harmony with the Great NVestern of Canada and 
 cN(n to do something- more than that, if the Great AVost- 
 erii ol ( anada were williuo-. J]ut, -ontlemen, if they M'ere 
 !;ot willing, surely tliat is no reason Shy we should not <^i1 ^ • 
 no some arnmgement with the l^uffiilo and Lake Huron 
 LalI^^ay, and tliat is what ym are doing. iJurino. tbe last 
 two years we have iieard a great deal about amalglun ion 
 
 Ivour";?^^^ -te-H>nS and scarcely anything ^Wiatevci h; 
 lavoui ot them; but I wisli to im])ress upon ySu that this is 
 no an amalgamation, that it is not a new line, and that s 
 ^lotanextei^ion; hy this agreement we simplv say to 1^ 
 ].nftalo and Lake Huron Kailway, " \V, iUul n ou havx> a line 
 jn t^us direction we tind you in existence, we wish to ^ ^ 
 in harmony with you. but we do not wish to do anvthin.t 
 Mvpt by a binding arrangement, l,y which there shall be a 
 joint purse and a mint manaovm.-nf in ,w.^.. „ \.r 
 
 jmnt^pm^se and a joint manage niJnt, in " conseq^^^^^r Jf 
 ohts shall be divided in a certain ratio." 
 
 which the ni>t iiv 
 
 J . , '^ JI.....O „.u.ai uu u.Mucd m a certain ratio." 
 
 .! to tl,e r, t,o; it i, i,„t ,. q„es,i„„ o( ,„n.l,,„.iati,m at all. 
 Ihove ea,i bo no ,hs,,„f,c wl.atovov u,.o„ ll.at ,m.t of tlic ,a"e 
 wlmye ko.vd tlu- fac,t» .ivon l,y ti.e Cl.airnL, a„,l you ,d 
 
 of ,1 .t rcccpfs, A\ 1,,,,, ,!„,„ i., „„, ,„„,„i,:o. oltl,o „!,rL,. f1,.,t 
 M .111 f bu.cly, 1 the two loiicci-ns woio to bo put toiotlicr, and 
 
 he £^7 'W ."'"''""•'•;■ ^ "" ^''1'" '"'"■ fI-% ""'l^vo will take 
 me ±,S7 (ol couisc, t do not bind i!i\solf to tlicso fiomvs > 
 «.vi.ly .1,0 Jiulialo and Lako llurun Conipuny woubl ",;* 
 
to accept Act cotijiruiiiitj Hnjf'alo Ayt'cmtviit. 
 
 27 
 
 ig- 
 
 "thank you for notliinu', the £13 has actually been earned 
 on our lino, and the £87 on yours." The only point in dis- 
 cussion should be as to the exact proportion in which the re- 
 ceipts should be divided. There may be some difference of 
 opinion as to whether it ouf^-ht to he £13 or £131, or £13|, or 
 some other decimal ; but, as re<>'ards tlio earnin<^ and the 
 origin of tlie money you have to divide, tlie Jjuffalo and 
 Lake Huron Company can say '' it is just as much ours as 
 yours because it has been earned upon our line, or because we 
 have earned it upon yours;" tliei-efore all the arguments 
 which have been advanced, with respec^t to this being a pre- 
 prct'erence, are entirely fallacious and beyond the mark. 
 I may say I heard quite enough during the investigation 
 and examination of witnesses before the Committee to 
 satisfy me tluit the true policy of those who made 
 these railways is to work together, and not in com- 
 petition Avith one another, and it is because the ar- 
 rangement before you to-day is a very practical one for 
 working together, that 1 believe it will commend itself 
 entirely to your judgment. I heard the sjjcecli of Mr. 
 Adams with great pleasure ; he gave the meeting a prac- 
 tical idea, and cordially admitted the wisdom of the 
 course pursued by the J3oard. 1 might also congratulate 
 Mr. Conybeare on the very great difference between his 
 speech and the two papers he has distiibuted. I found a 
 great amount of the printed matter of this ])aper such as I 
 could not at all admire ; but after the very handsome amende 
 whicli Mr. Conybeare has made to-day, which is one of the 
 ftnv remarkable things in his career which I shall bear in 
 mind, and after the statemeut that he has made that he is 
 convinced of tlie wisdom of the policy of the lioard, I shall 
 not nudce any further comments ui)on these papers. (Cheers.) 
 
 Mr. CoNYMF.AUK — I did not say exactly that I was con- 
 vinced ; 1 said I might have been if I were not sustained by 
 another principle. 
 
 The Chairman — In reidy tothe several questions that had 
 been put, said as regards the statement of .Mr. Isherwood, that 
 the hrst and second jjreference bonds had been placed 
 before his original bonds, that gentleman ought to obtain 
 an accurate knowledge of facts before they make such 
 remarks. The £3,000,000 advanced by the Canadian 
 Government was put, as ]Mr. ^S'ewmarch says, behind 
 
28 Report of Special Mrctiug, Drcnnkr 28fh, 18G6, 
 
 everything else to cniiblo the creation of £3,000,000 of 
 preference bonds to take exactly the same i)lace. 2,000,000 
 of those bonds were created tirst, and, I think, one million 
 Avas created afterwards, inakinf^ up the £3,000,000, so that in 
 point of fact it is not fair to say tliat the preference bonds 
 had anythhi!^ put before them. (Hear, hear). 
 
 Mr. IsiiKitwooD— I only meant to say, that as an orighial 
 debenture holder that t)iere has been 'a first, se(!ond, and 
 third mortg-ao-e bond created over me ; I do not think there 
 can be any question about that. 
 
 Tlie CiiAiiiMAX — The question is whether, practically, as 
 regards tlie ordinary bonds referred to, any kind of ari'ango- 
 ment was ma ie which created a charge over them. Tlio 
 honourable gentleman will see it is true tliat the first and 
 second preference bonds were put technically over the or- 
 dinary bonds of tlie Company: but why ? Because there Avas a 
 preference put after them, a*^ preference of £o,000,000 of tlie 
 Canadian Government Bonds which originally was placed 
 before them. It is perfectly clear that if the Government of 
 Canada, avIio had a preference to the extent of £;'),l 00,000 
 over you, chose to say '• We will throw our preference over- 
 board to enable £3,000,000 of preference bonds to be created 
 in place of ours," you could not say tliat you were thereby 
 placed in a worse position. For the o])eration involved 
 merely placing £3,000,000 of ri-efercnce Bonds in lieu, and 
 at the same rate of interest, of the £3,000.000 ' held 
 by the Government and people of Canada. I will now pro- 
 coed to answer some of the questions Avhich have been raised. 
 In the tirst instance permit me to say that I should not have 
 alluded to tlie circumstance of any other railway companv, 
 had it not been for a charge that I saw in a letter signed 
 " Germanicus," published in a morning paper, to the c^Hect 
 that the same thing which had been condemned in the case of 
 the London Chatham and Dover was behio- done by the 
 Grand Trunk Company. I thought it desirable that that im- 
 pression should atoncc^be removed, and I thought it my duty 
 to show at once thatthe arrangement now under discussion is a 
 totally dilfcrent thing, while, as regards the past, the circum- 
 stancep were not the same. The fact of consent existed in your 
 case : it does not exist in the case quoted. The fact of obvious, 
 and undoubted necessity existed in vour case.while in lh(> other 
 I contend that it does not exist. Under all the circumstances, 
 
fo accept Art conftrmiiic/ Buffalo Aijvccment. 
 
 29 
 
 I donot know that the Gnind Trunk llaihvay is charfyeal)lc\vi*-li 
 anytliinjj;- which can i'aivly ho excepted af>'ainst, while undoub- 
 tedly acting- with the lull knowledge and consent of its bond and 
 stockholders, it simply took the measures best calculated to 
 l)r()niote their interests. ] )r. Jolmson wishes me to go into 
 details on the subject of the American combination. We 
 certainly declined to combine, and we also declined to adopt 
 a system of rates and arrangements bad for you and bad for the 
 public ; and while as anxious as anybody to augment the net 
 profits of our workuig, we made certain stipulations fully 
 justified by your special interests. These stipulations have 
 now been agreed to. This combination, ha\ing at first de- 
 clined our proposals, afterwards endeavoured to force us into 
 its ranks by a most tyrannical system of exclusion and 
 obstruction. Who, then, was it that threw the first stone ? 
 I say they did ; because they actually threatened to stop, and 
 did attempt to stop, our through traffic. When, however, they 
 said to us, '• AV.e will stop your trafhc," we said, "So hmg 
 as you stop our traffic we will put down ycnir passenger 
 rates till you see your error." And in dohig so we made 
 a profit : they sustained, all round, a serious loss. But the 
 moment they ceased to stop our trailic we put up these rates. 
 AVe were always perfectly ready to raise the rates generally, 
 and, wherever possible, to the most remunerative standard. But 
 what they at first proposed would have destroyed our inde- 
 pendent control over our trathc, and with it would 
 have destroyed that popular route, through Canada, for 
 the produce of the west ^\•hicll we have so success- 
 fully, and at such pains now firndy establislied. I 
 repeat that wo by lowering the passenger rates broke down 
 tlie combination against us ; but it is but fair to say that I 
 think the eifect of such combinations as that proposed would 
 have been to drive the public off your line, and you do not 
 know what the consequences would have been, either politi- 
 cal or pecuniary. The noble western farmer, now your friend 
 and customer, would have been alienated, and how do we know 
 that he might not have been led to say to his Government, 
 *' These British carriers are ready to assist in damaging our 
 rights of transit — now aboli^h the lionding Acts." I say 
 that that is by no means an im])robable supposition. If gen- 
 tlemen had a little more practical knowledge on these ques- 
 tions, I tliink they woidd agree tluit we have taken 
 
30 
 
 llcport of l^pi'vidl Mcilliiij, Ih'Ci'mbcr '2S//i, 18GG, 
 
 the YV^ht course— the only coui'so open to us to protect yt)U. 
 ]Uit there were five tlirou;;-li linos, inclmliii};- your own, and 
 the discussions wore not altogether hroken oif when one of 
 the five retired. After that, wluitevir it nii-^ht have been 
 before, your course was perfectly clear, for it coidd be of no 
 earthly use to join in a movement already broken down, espe- 
 cially when its success would simply and plainly have 
 given the control of all your througii arrangements into 
 other and competing hands. If you agreed to a combination 
 of that kind, I repeat you would have had to give up much of 
 your througli tralfic entirely. I will only add one word about 
 what has been said with regard to c(nupetition with the Great 
 Western of Canada llaihvay. ^Ir. Ilartridge knows very well 
 that I am a man of iieace ; but, at the same time, if I am com- 
 pelled to fight, why I do my best. (Hear, hear.) I consider 
 that thedirectors are not here to indulgein any personal feelings, 
 but to nuxke the best of the property, and, doubtless, a policy 
 of peace is infinitely preferable, because more ])rofitable, as 
 well as more agreeable than a policy of war. With regard 
 to tlie Great AVostern of Canada llailway, we have always 
 })een ready to meet them, and to nuike the most frieiidly 
 arrangements with them. By such arrangements we should 
 be enabled to reduce the expenses and increase our profits. 
 I only wish the Great Western Kailway woidd even now 
 come forward and a('cei)t what we oti'ered to them two years 
 ago, viz., an independent arbitration, which should deal 
 with every question in dispute as it arose, so that we need 
 never trouble you with these matters at all. If they would 
 only propose that, I will undertake that the ])rop()sitlon shall 
 be at once laid before our Board, and I have little doubt it 
 will be frankly accepted. I need scarcely troulde you any 
 further, because Mr. Xewmarch has touched upon various 
 points to which my attention had been drawn. I will merely 
 answer the question, as to whether any of the directors of 
 this Company are connecterl in any way by personal holding 
 or interest with the Butfalo and Lake Huron llailway 
 property. I must say that it is a very hurailiatiT^g thing for 
 any member of the Board to have to answer such a question 
 so put ; but I will say this for myselt", and for each member 
 of the Board of the Cfrand Trunk of Canada llailway, that not 
 one of them holds, or ever held, a single share or security in 
 the Bufi'alo imd liuke Huron Kailway. (Cheers.) I will 
 
to a<'Ci))f Act fonjinjiiii;/ Ihijf'dio Af/rcriiifi/f. 
 
 ni 
 
 also add, tluit not one of our oflioers liolds now, or lias ovor 
 had any iutorcst of any kind in that company, nor do I 
 belicvo that iinyono connected \vith the ('(inipany has any 
 such interest, save that some t'vw sliareliohk'vs of tliis (\jni- 
 pany may have an interest in it, as some have als.o in the 
 Great Western. 
 
 Mr. Wyi.d — I am perfectly satisfied -with the statement 
 that tlie Chairman has made. I know that many tilings ar{> 
 said, and it lias been said that one of tlie directors of the 
 South Eastern Company did that very thing in this country, 
 viz., took a number of shares in a company for the very 
 purpose of reaping- a benefit from a subsequent amalgiima- 
 tion. 
 
 The Chairman — T do not know to whom the honourable 
 gentleman refers. If there has been any such transaction, I 
 am of opinion that it shoiild be ])ul)li('ly exposed, and I 
 should therefore ])refer that any gentleman making such a 
 statement should mention the name and address of the per- 
 son to whom he alludes. I certainly felt a considerable 
 amoiint of humiliation in answering the question, because 
 suspicions of that kind ought not to be thrown out through 
 such (questions, unless upon the gravest grounds. IMen 
 like ^Messrs. Ihiring, Glyn and others, ludding so high 
 a position in the City of liondon, arc least of all likely 
 to be influenced by considerations of that kind. I think I 
 have now gone through and answered all those matters to 
 which my attention has been called, and I must ask you to 
 hold up your hands in favour or against the proposition that 
 has been submitted to you. 
 
 ])r. Jonxsox — ^You have not answered my question, Sir, 
 with respect to the operation of the fourth clause, and the 
 power creating future preference stock under it. 
 
 The Chairman -I beg your pardon, that is a point which 
 certainly escaped me. The fourth clause of the agreement 
 provides that the I'mffalo and I^ake Huron sb.all pay its share 
 of the cost of any working stock that shall be rccptired to bo 
 raised to meet the reasonable and necessary working of the 
 lino. If no such clause had been introduced the oflect would 
 have been that, if we wanted new engines and wo had to 
 order 100 or any other number, you would have been at the 
 whole expense of finding the capital, but under tlie clause 
 as it stands you are protected from such a danger. If vou 
 
o2 licjjorf of Spicidl Mevtiiiij, Dauinbi r 28//i, 18GG. 
 
 want raui'C caialal to [ji'ovldo for more trdtiU; tlio Buffalo 
 aro to find tliuir sliaro and you are to Hud yours. ])r. 
 Jolnison's iniud was very luueli disturbed by .seeiuj^ the 
 Mords ^'^ raising? furliuM' ea))ital." It is quite elear that 
 the Joint Coinuiitteo under this agreement ean have no 
 power of raising- capital or any seeurlty over your hc>ads. 
 Vou have raised a certain amonnt of capital, and a considerable 
 portio'i of that capital is in reseive. What we want is this : 
 .supposing- a certain snni of money is re(piired to bt; si)ent 
 npon the line in order to nuiintain the trallic, we re([uiro that 
 the Ikilfalo and L;dce Huron ('om])any should raise 15 per 
 cent. t)f it ; so that instead of its heing a chtirge on us, it 
 should be divided proportionally. Tliat does not involve the 
 slightest danger of the creation of any pre-i)reference ; it in 
 merely an ag-icenient that they shall pay their fair and 
 proper share, and the money will be r<H-eived and judiciously 
 laid out, no doubt; but the joint counnlttee will have no 
 power whatever to raise ])rc-preferences. I am certain I am 
 rig-lit on 'this, although 1 do not profess to be u lawyer like 
 ]Mr. Conybeare. Ko doubt as the trallic g'(jes on increasing 
 additional capital will be recpiired fur new plant, and when 
 you havo tt^lay money out this clause simply provide.^ that the 
 lUitfalo and Jiake Huron shall lay theirs out too. 
 
 Mr. CoNYiiiiARi;- It shn])ly amounts to this : that when 
 fresh money is to be raised, instead of your raising- it all, 
 they are to pay a (piota. for the purposes that are rv^quired. 
 
 The C^iiAimiAx — llxactlvso; a^ou have condensed every- 
 thing that I wislied to explain into a single sentence. (Gentle- 
 men, I now beg- to put the resulution. 
 
 The vesolulion v/as then put to the meeting- in the usual 
 way, and carried unanimously. 
 
 The Cji AIRMAN — Geiitlonu>n, I thank you fov your atten- 
 dance, and the patience you have nuuiifested during this lon<^ 
 
 meetnig 
 
 Wr--' 
 
 The proceedings terniiiiated with the usual vote of thanks 
 to the Chairman. 
 
 \i'AjK;ir,.iv,' .sN!-. -xiNv ria.M tu^ Cmu iiMiii;s' hall, London wai.i.,