IMAGE EVALUATION TEST TARGET (MT-3) / (/j /. 1.0 I.I 1.25 ;ff a \m 1^ IM 112.2 - m "— :; m 2.0 1.8 1.4 1.6 <^# > 'cM e. ^*3 ,■>' "^^ v^^/ '>' (? / ^ Photographic Sciences Corporation ^^ V s •<^\^ N> *% V «^ O "^ a 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 V W' C?, CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microraproductions Institut Canadian de mlcroreproductions historiques 1980 Technical and Bibliographic Notes/Notes techniques et bibliographiques 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. L'Institut a microfilm^ le meilleur exemplaire qu'il lui a 6t6 possible de se procurer. Les details de cet exemplaire qui sont peut-Stre uniques du point de vue bibliographique, qui peuvent modifier une image reproduite, ou qui ptuvent exiger une modification dans la mdthode normale de filmage sont indiquds ci-dessous. Q Coloured covers/ Couverture de couleur I I Covers damaged/ D D D D D D Couverture endommagee Covers restored and/or laminated/ Couverture restaur^e et/ou pelliculde I I Cover title missing/ Le titre de couverture manque Coloured maps/ Cartes g^ographiques en couleur Coloured ink (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) Coloured plates and/or illustrations/ Planches et/ou illustrations en couleur Bound with other material/ Relie avec d'autres documents Tight binding may cause shadows or distortion along interior margin/ La reliure serree peut causer de I'ombre ou de la distortion le long de la marge int^rieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ II se peut que certaines pages blanches ajout^es lors d'une restauration apparaissent dans le texte, mais, lorsque cela 6tait possible, ces pages n'ont pas 6t6 filmdes. □ n n n n n Coloured pages/ Pages de couleur Pages damaged/ Pages endommag^es Pages restored and/or laminated/ Pages restaur^es et/ou pellicul§es Pages discoloured, stained or foxed/ Pages ddcolor^es, tachetdes ou piqu^es Pages detached/ Pages detachees Showthrough/ Transparence Quality of print varies/ Qualite inegale de I'impression Includes supplementary material/ Comprend du materiel supplementaire Only edition available/ Seule Edition disponible Pages wholly or partially obscured by errata slips, tissues, etc., have been refilmed to ensure the best possible image/ Les pages totalement ou partiellement obscurcios par un feuillet d'errata, une pelure, etc., ont 6t6 film^es d nouveau de fapon d obtenir la meilleurc image possible. D Additional comments:/ Commentaires suppl6mentaires; This item is filmed at the reduction ratio checked below/ Ce document est film6 au taux de reduction indiqud ci-dessous. 10X 14X 18X 22X 26X SOX y 12X 16X 20X 24X 28X 32X The copy filmed here has been reproduced thanks to the aenerositv of: to the generosity of: Douglas Library Queen's University L'exemplaire film6 fut reproduit grdce d la g6n6rosit6 de: Douglas Library Queen's University The images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. Les images suivantes ont 6td reproduites avec le plus grand soin, compte tenu de la condition et de la nettetd de l'exemplaire film6, et en conformity avec les conditions du contrat de filmage. 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 back cover when appropriate. All other original copies are 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. Les exempiaires originaux dont la couverture en papier est imprimde sont film6s en commenpant par le premier plat et en terminant soit par la dernidre page qui comporte une empreinte d'impression ou d'illustration, soit par le second pEat, selon le cas. Tous les autres exempiaires originaux sont filmds en commenpant par la premiere page qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernidre page qui comporte une telle empreinte. The last recorded frame on each microfiche shall contain the symbol ■^♦- (meaning "CON- TINUED "), or the symbol V (meaning 'END "), whichever applies. Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole — ♦- signifie "A SUIVRE", le symbole V signifie "FIN". Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, es many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reproduit en un seul clichd, il est film^ A partir de Tangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 l2tiKy6' Po^, «9 SI=»EECI3 OF F. W. GLEN, M.R, ON THH SYNDICATE CONTRACT, DHLIVHliEJ) IX TilK HOUSE OF COMMONS, () T T A W A , ON TUESDAY, JANUARY 2r,TH, 1881. ALSO, THi: TKXT OF THE CONTRACT: THE TENDEK OF Hon. Sill W. P. JIOWLANI) AND ASSOC lATllS. Hon. MK. r...AKE-S AMENDMENT, \- THE VOTE. ic // / r r, y : •' « HKONK i.K " STEAM PKINTINK KSTABMSHMKNT, BRO( K STKKKT. 1H81. s ALJ OF F. W. GLEN, MR, vv OM IHH SYNDICATE CONTKACT, DKJJVKliKh IN PHK HOUSE OF COMMONS, () T T A W A , ON TUESDAY, JANUARY i.nH, issl. ALSO, THE TKXT OF TIIK CON 'I'll ACT ; THK rKNhKII OF HON. SIR W. I'. HOWLANh AM) ASSOCIATES, Ht.N. Ml{. HLAKKS AMKNDMKAr. A rFfF VOTK. ]\' II I / H Y : y CHRONICl.K." STKAM FKINTINfi i:STABI,IsnMK,N J , r.KO( K SiKKKT. 18H1. « TIIMIUM IMMBjMnamWWM L -iy.,i ^: »/;ri /«n 1 1/ ii(j/ / X / « * !/ 1/ f » ; I-- HHJ ,' ^ ! f- I t 1 I ''PUK nnniy .iRiuincs nifulr nt tlir ortic^ of tlic Wmiuv ('iiuc.n- I k:i,k tuf ec)pR'> ol' tlic N|K'trli .li'livcn-d in the House nf Commons by ^fr. (lien, tin ni.inlMi for South Oiitiiiio, on tlie Syudicutt* Contnu't, liuvf iudiiccd llic puldiNliri to piTscnt it in ihv following,' foini. • Proper coi rtctioii.s liji,\r Ik-iii lu.-ulr wIumv iniinMUMcics jip. peared in tlw lij^Mii-.-s in ilic luisly ivports of tlir ilaily pr«'ss. Tlio U\\ of the Contiiirt : the Tenths of Sir \V. W I lowland !ind Mssociatos : Hon. Mr. Ijhikc's Anu-iKhnent, s«rou(h"(l hy Mr. G)<'n, and tlje \ote ou the «h\ision. air also supplic*]. THK »M JJJJSIIKlt. i:<^ii 1191 ( » SPEECH OF MR. GLEN, M. P. :o()():- Mlt. SrEAKKH: Aliliouf,'1i ii now nioiulxT of tlic Houses I cannot allow this (liscuHsion to close without cnti'i-iij;,' my protest a<,':iinst the coiifiriu'ition ^A' the contract for the construction of the Canatla Pacific llailway, now u|)on tlic tahle — helievinj,' as I do that its confirmation will seri«tusly imi^'fle the develop- ment and settlojuent of the North-West Territories, and th.it the contnu-t grants privile},'es and exemptions wliich will lend ti> destroy the i)eace, well- heinj;, and prosperity of iliose who may .settlt in that vast rcf^ion. I assume. Sir, that the statements nuide l»y the Honorahle Minister of llailways. and the lii<,dit Honorahle header of the Government, as to the character and quantity of the a5, however, a ^'roat revolution has taken place in the cost of huildin^ railways, the cost of niaintaininj? the road-hed, in the cost of operating railways, and in the value of money. Such a reduction has heen made, that, commercially speakinjj, so far as distance is concerned, Winnipecr is nearer Liverpool to-day than Chicago was in 187'-). In 187:5. the average cost for moving a ton of freight 100 nnles hy the Boston and Alhany. New York Central, New York and Erie, Pennsylvania Central, Pittshnrgh Fort Mayne and Chicago, Lake Shore and Michigan Southern. Michigan 4 Sl'KKCH «JI' Mil. iiLES, M.I'. (!«iitnU, Clu<-aj,'o iin«l Alton, Cliicauo, liiirliiiKtoii and Qiiincy, Chicaj^'o, Mil- waukee and St. I'atil, ChicaK*) and North Wrstt'rn, ('liicaxo, Uock iKlaml and Pai'iHc, and Illinois Central Kailways, wuh one doUai- and Hevrnty seven centn, whereas, in IK71(, tiie avei-ii<^e cost of niovin;^ a ton of freij^ht for 1(H> niih^H over lliese roaiJH, wuh oidy oiH' dollar and two cents, or, in otlier words, in 1871>, a Ion of IVeij^ht eould he moved one tlionsand seven hundred and seventy seven miles for the eosi of niovin<{ the same freight in 1N7:(. one tiiousand and tw«) miles. 'I'iie railways 1 iiave mt;ntion(Hl represent the leaid«'r IJay to Montreal, for i{!) <*eiUs per bushel, wht-ieas the St. Paid and Manitoba Uailway Company charge for carrying it from Emerson to Sf. Paul, ;i distanci^ of MSM miles, froju ;{() to iW c.-iits per bushel. If wheat can Ite carried at even 5 jnills per ton per mile, ni' ;j;{ cents a bushel for '2000 miles. and it is w«>rth to day in Toronto ^l.lo— it woidd be worth 700 miles west of Winnipeg 82 cents, if there was a surplus ovei' and above the jocul requirements. This price would yield tlie producer a fair return for his lal)or, and would give a high commercial value to lands tairly tit for settlement. If wheat was worth only one dollar in T*)ronto, it would still be worth (}7 cents, 700 miles west of Winnipeg, but at the present rate of freight charged liy the St. Paul, Minneap(dis and Manitoba Railway Company, wheat at fl.l.') |)er bushel in Toronto, gn)wn 700 miles west of W^innipeg. would not return to the ]m)ducer the bare cost of pro«luction — let alone giving him any return for his own labor and capital, and %\.\'i i er bushel is much above the average price of wheat in Toronto tor the past fifteen years. The great reduction m the (U>st of railway transportation which has taken place since 187'}, is oni; of the eonnuercial wonders of the age. It is largely this astounding fact which lias ovo'come the conuuercial depression which existed in the United States (hniog the years 187:-{-4-o and "70, increasing the exportation of agricultural products by more than one hundred per cent. It is this fact that is threat- ening to create' a revolution \n the relations existing between landlord and tenant in Mngland, Ireland, ami Scotland. It is this fact which has enabb'd w SI'KKCM OF MK. Cr.KN, M.T. r, liicn;,M, Mil- i IhIiukI an*l H, a 'venty hovcii ml iiixl two i(!H rfiicliiii),' Lie Hei»l)oiii, iiii.l I |K)it«tl over , was can-ie*! authority in at tlie aver- Llie trade Ije- nills jMT ton, tlu' av('raj,'e. il niilt's west St. Paul 1111(1 t.) St. raui, lit'at can \u' 201)0 iuil(>s. lilcs west of lilt' local )!• his lalior, Kiutinf. rt' 1 (J7 CtMllS, L,'etl hy thf IH.l.'i por nni to the an for his laj^e price on ni the is one ol tact which ted Slates ,'ri('nltnral is threat- illonl 11)1(1 lis enaltlfd the farntei's of the west to rniHe cattle upon IIk* plains of 'rexus, mid >vliilf securing to thoinselvpH a fair return for their hilior and capital, undersell the l-'.n^diHli fanner in his own market. It is thih fact which has Hccnred to tin farmers (d' the Western States a fair return for their iaiior and capital, anti enahleH them to hecome Itiv^f consumers of the mamifactnres o( the Kasterii States. It is this fact, and not the prote-etive policy of the Cnited States, whieh has caused a revival in the manniacturin;,' industries of that country. It is tluH fact, chiefly, which has restored the credit of the rinted States and enahlcH them to horrow money in the European mark, as cheaply a.-i any other nation in the world. And. it is this fact, laryidy. which is now attracting' a greater inunher of initni<;rants to the I'nited States than at an\ other time in the history of that country. It is this fat't which has chanj,'- ed the halance of trade, which for the i»ast half century has heen almost continaously a<;ainst the United States, to a lar;,'e halance in their favor, the exports havinj,' exceeded the iiii)>orts durin*,' the past thre*- years, by m(»re than (MMI millions of dollars. It is this fact which has enald&d the people of the United States not only to retain the <,'old and silver they pr(»- duce, hut to draw j(old from other countries; whereas, since the discovery of <(old in California, the United States have heen coiiHtaiit exporters ot }?old. It is this fact that has so enormously increased the jiopulatioii ni' the extreme Western 'States dnriii},' the past few years, as compared with the older stales. The averaj.'!' inerease in )>o])ulatioii dnrin per cent.; Kansas, IGO per cent. : Nebraska. 400 j)er cent.: Texas, nearly 100 per cent. : and I am (piite safe in asserlinj,' that the <.'reater part of thi.i increase has taken place within the past three years. It is this fact. chieHy, which has, within the past few years, entirely chan<;ed the commer''ial as- pect of the American continent, as compared with l'",n),dand. Ireland and Scot- land, and the continent of Europe — increasiu}; to an enormous extent the conunercial value of American securities of all kinds, and attractin<; Euro|)ean capital to this continent to an extent iiitherto unknown for investment. Ti is this fact, lar<,'ely. which enahled the American (lovernment to resume specie payment in 1879. It is this fact wliicli has made the United States the most prosjterous nation in the world to-day. The wheat crop of the United States for the year 1880. is estimated at 400 million hushels. As the foreif^n market tor wheat controls the price in the home maikd. if one cent per hushel is saved in the cost of transportation, it ensin-es the farmers of the United States four million dollars increase in the profit upon their wheat crop alone, and, consecpiently. if .'> cents per hushel is saved in tin- cost ot transpoitati(ni. it is a clear j;ain to the producers of wheat in the Sl'EECH OF MI!. (ILKN, M.V. United StaU^s of 20 aiillion tlolliiis foi- u sinj^'le yt'iir. Now, it' we expect to peopl*' tmi- Nortli-Wcst teiritoines — it' we expect that our puMic lands will Imvn any eonunercial value, we nuist show lo inte!»i1in<:f einij,'rants tliat the products of ouj- farms ean l)e, ami will In- transjtorted to Liverp<>ol as cheaply !X^< j^rain ^'rown in the I'nited States. Unless we can do so, the enormous expenditure w<' are niakinj^ in opening' n)» that tj'rntory will he lost — will h(! so much capital thrown away. Unless we can do so, American railway emij,'rant aj,'ents will point oiu the fact to intendin;,' enii^'rants. and surely divert them from cominj,' to this country. The American emi;;rant aj^eut will require no hetter ar^nmient a<,'ainst the af construction exceed 10 per cent, per anmnn. They will also [nrnxi out the clausi' exemptiuf,' the lands of the lladway Conqiany from taxation foi- 20 years after tlie ;frant from the Crown. They will likewise point out the claus(> exemptinj^ the railway de})ots, work- shops, yaids, elevators, harhors, telej,'raphs. telephones, and rollinjjf stock, forever ; castinf^ upon the settler the hmden — not only oi opeinn<,' roads and huildiny: school houses — htit of ju'otectin^' the Company's property towards whicii the Company will not contrihute one fartl 'n;,'. TJiey will also point out to the intendiu}^ emif^rant the fact tinit the Canadian Government have provided for the construction of only KHX) miles of railway in the fertile helt, containiufj, as they declare. '1^)0 million acres of land fair\y fit for settle- ment, and have }i;ranted s:icli privilej^es and exemptions to the Canada Pacific Railway Company as will practically >^ive them a m(»nopoly of railway huildinj; throu-^diout that vast rej^ion forever. They will also point out to intending eiuij^rants that the three North-Western .\iuerican states — with an SPEECH OF Mil. (iLKN, M.I'. we expect Mic hinds :nints tlmt v('i'P«)x)l as ilo so, the IV will lie American riuits. iiiiil 1 I'liii^'rant settling' in now njion tract, tens ent hroad- iiuies, and, laAe (o in- lin<; in the ace in tlie L' Canadian ■ ininiij^ra- the United ill certain - msti'netion te eonipe- to intend- liiKjuished ('oMii)any, per cent. ids ot' the le ("rown. its. work- n;f stock, •oads and towards Iso pcnnt ent have u; fertile "or settle- Canada lailway It out to with an arei of less than one-half of the nuniher of acres of land fairly fit tor settlement in the North-West territories— have already 10.()H;5 miles of rail- way, and that railways are now hcin;; constructed in the same States moic rai)idly than ever liefore, that, upon the same hasis we should lia\c in the tcrri- loiv lyin^' hetweeu the wi-stern houudary of Manitoba and Kocky Mountains, not le.ss than '24 thousand miles of railway within the next 24 years, if the fanners of that country are to he lualded to compete with fanners in tiic North-Western States in shijipinj,' their j,'rain to the I'.ui'opean market. 'I'lie contx'act contains within itself elements which will de.stroy an\ and e\ery emigration policy which can he proposed or ad(^i)ted. On the contrary, tiie offer made liy Sir Win. I'. Howlaud and his a.ssociates, does not contain a siuf^la clause which can he used hy American emi<,'rati>n a<,'ents to defeat the emij^n'ation policy of this couiiti'v. .Vnd, finally, the .Vmerican emit^Mn- tion a<,'ent will point out to intending' emij,'rants the statement of the llon- orahle Minister of Uailways. that the only possible ndief from the monopoly created hy this contract, if conHrmed, will he a railway to ITudsiui IJay and an outlet for 'A or 4 months during,' the year tiirou;^di tiic icelier^^s o!' the north to I.ivepool. Assmnin^' that 'I'liundei- liay is as neai' tide water as Chica^^o. or, in othei- words iliat tliesi' two points, each of them is ahout one tliousand miles from the sealioai'd. a ton of li'ei;,dit can lie moved at the rates paiil to leading' Anu'ricau railways in ISHO. from a jxiint l(KM) miles west of Thunder hay. or Chica<,'o, as cheajjly as the same h'ei^du could have heen moved from 'I'huiider J5ay or Chicaj^'o to tlie sealioanl in 187)5. 'lakiufi; into consideration that tliere has heen a marked reduction in terminal char^'es in seaboard cities, and also, a reduction in ocean tici<,'lits. — that the risks of ti'ans])ortation have been materially lessened, and the leuf^'th of time recpiired to transport freij^ht liom the interior of the contin- ent to Li'/erpotd very much shortened. I am more than justitied in assert- infi; that W^innipej,', so far as the actual cost of transportation is concerned, is coimnercially nearer Liverpool to-day tiian Chica<,'o was in \H7'.\. And. there is reason to believe, that, within the next ten \'eiirs. such liutlier reduction will be made in the cost of transporting^ frei^^r'nt on luilways and by steamships, as will, connnercially speaking', brinj^ the i)roductions of the ten-itory at the western end of th<' central sectit)n of the Canada Pacific Railway as near Liverpool as Chicago was in IHT.]. If this statement is con'ect, — and I challeu;j;e hont)rable j,'enll( .nen oj)posite to prove that it is not correct — if the lii<,'ht H(»noral)le lealc who settle in the North-West teiritorieH are left free t«» secure such couipetitioii in the tninsiKM-tutioii of fi-ei};lit. as will compel niilwiiy coiiipiiuies to ciutv the freijjht for a just iind reivsonahle profit upon the iU'tuiil cost of iniiisportation. As [ have sftitl, the cost of huildiuj^ rail- ways ; the cost of inaintainin<; the road-hed : the cost of opemtiii^ niilwu^s. afid the value of money, has heen very nuich reduced since 1878, and these causes have made it iM)ssihle for railway companies to enormcyusly reduce the cost of transport inj,' frei-^ht. Jiut, had there not heen a f^reat struf^jjle :kmon<; iiiilway "ompanies to secure htisiness ; had there not heen f^reat com- petition amoii}^ milway companies for freijfhts. the reduced cost of transpor- tation would have simi»ly increased the protits of the railway companies, and not the profits of the farmer. Competition amon^' railway companies has lieen the means of securinor and ca|)ital. The same lands, pro- vided with th(5 means for transj)ortinj,' the produce to market, at such a cost as will secure to the railway com])anies only a just and fair reward for tin- services they render, may be worth in their wild state five dollars per acre, or a dirt'eretice in their connnercial value of Vl'A) million dollars. We are. therefore, called up(»n to decide whether we will create such a railway monopoly as will practically destroy the connnercial value of the lands of the North-West. or whethei" we shall refuse to f^rant to a piivate irresponsible corporation absolute control over the connnercial value of our public lantls. The contract on the table of the House, creates just such a railway monoply SVEElH OF Ml{. (iLES, M.1\ U'tl tVoe t(» will ooiu[tcl {»i-()fit U})(>it iiil(linj( mil- i^ niilwiiys. 8, and these iisly reduce eat strut?f(le 1 {?reat com- of transi)or- ipanies, and npauies has he Western the cost (»r maintaining^' (xhicers and nipanies liy L'V a fair and people who competition le f^reat re- Iways ; the ;t i»f ocean of the 2r)0 Honorahle ks. and Ity M.rth-West. 'tO million icial value. lets of the to the pro- lands, pro- such a cost ard for the s per acre. We are, I railwa\ inds of the esponsihle |hlic lands, monoply as I liave descril>ed, for 20 years — completely ties the hands of the people who may settle in that cctuntry, and jjrevenfs thenj from secin-itij,' to ijiem selves and their children a just rewanl for tln'ir lahor. The offer whicli iuis Iteen made hy Sir William V. Howhind and his associates, t(> ; Minnesota. «).();J8, or a total pojjulation for the 5$ states of ■)()2,(')7r). In 1M7<». Iowa had a population of 1,188,207 ; Wisconsin, 1,0')1.;5'>1 ; Minnesota, 4;}8.2'<7. o population for the '.\ states of 2.()7r»,81;'». so that, in 20 years, the ]Hipulat of these three states increased 2,17r),2r)0. In I8r>0. the three states just named ju'oduced 21.ri8«).21<) hushels of yrain. In I8«i0, they ))roroduced, 21U.(KJ0,(KK) hushtds of <^rain. Now, Sir, if my stat<'ment is cojrecl, that Winnipetj — so far as the cost of transportation is concerned — is as near Liverpo«d as ("hieago was ■IHI m^- 10 SPEECH OF m\. (iLEN, M.F'. in 1H7;}. and if our liiinls are as valual)l(' Coi- a^'ncuUural purposes — if tliey are jis proiliictivc as tlio lands of Wisconsin. Minnesota and Iowa, — there is no reason vviiy llie settlement and ap'icnltural development of that rej^ion should not he as ^reat and as rapid as it has heen in the States named. In IH')!') Wisconsin had 1H7 miles of railway, Minnesota not any, Iowa, (58. or a total for the three states of '25;") miles of railway. In IHiy)], Wisconsin had ilOf) miles of railway, Minnesota 81, Iowa 7i)'i. oi- a total for the three states of 1728 miles of railway. In 1870. Wisconsin had l.Vjr). Minnesota, 101)2. Iowa. 2()8;<, or a total of TjIMH) miles of railway foi- tiie thiee states. In 187i>. Wisconsin hail 28i»C). ;\Iinnesota. ;MX)8, Iowa, 477'.». or a total of 10.()8:$ miles of railway for the three states. Or. in 24 years, the increased railway mileaj^e of tiiese three states, (with a total area e([Mal to less than one-lialf of the land fairly tit for settlement, contained in tin' ilistrict lyin;^ iietween Manitoha and the Kocky Mountains), was 10,428 miles. If we desire that oui" terntories should deveh)p as rapidly as tli(>se three states have developed, we nuist provide for the construction of at least an ecpial munher of miles of railway in ])ropoi-tion to the area, or at least 24.tK)0 miles within the next 24 years. T(t secure the construction of such a nundier of miles of railway, we nuxst not put any stumhliui,' Itlocdis in the way of the l)uildin<^ of railways hy private entei'piise, assisted l>v nnmicipai or provincial siihsidies. 'i'here are (juite ditlicultics enou^di to overcome to prevent the opening up of the country hy railways without the Dominion Government interferinf this enormous nundier of miles of railway will still leave us at a disadxantaj^e as compared to the thr(;e states nuiui'd But, supposint,' that the Canada Pacific Railway Company, under the contract now upon the talde, construct one-half of the amount, or 12 thousand miles of railway durinj^ the next 24 years, and even this lar^(> amount will not secure the rapiil setth-uient of that country — let us estimate the value of the claUvSe, — exemptinjjj the company from duty upon steel rails, and all material used in the construction of the main lines and hi'anches, telegraph lines, telephone lines, &c. Twelve thousand miles of railway means, indudin",' the average numher of miles of switches reported hy the railways of the United States — at least 14,000 miles of single track. Estimating rails, fi'^h plates, spikes, holts and nuts, at 200 tons per mile. it wl aloil tonj is con — e\ luihl duril mail alreJ dut>| wort und< rails appii tlie ; *■ -M rposes — if they Fowa, — there is ol thiit iv;,noii Les luujieil. In ', It)wa, G8, or Wisconsin had he thivi' states innesota, l()i»2. att's. In 1H7!>. of 10,(588 miles reaseil railway tlian one-half l^-inj; l)otween we desire that ave developed, nilier of miles vithin the next iles of railway, inf^ of i-ailways ^iidies. There iw^ np of the erferin^', and. years, exce})! <• interests are lat to insure necessary to ai'ea as has 1 Minnesota. 4 years, of at is enormous as compared ific Railway one-half of 1 years, and at country — ly from duty e main lines iisand miles lies reported single track. IS per mile. BPKECH OF MR. GLEN, M.P. 11 it will require 'J.H(M»,(KX» tons of iroji and steel to construct the rond hed alone, not includin«? iron for Iirid;,'e8, which, at an average price of |40 per ton, RiveB a value of $112,000,(K)0. A duty of ten per cent, on this amount i.K equal to $11.2(X),(XK). which is the value of tiie clause "exemptinjj the compaiiy from duty upon steel rails, fish plates, spikes, holts and nuts," alom- — even if they only construct one-half as many miles of railway per square mile as have already been coiistructed in the three North -Western States during the past '24 years. If, on the one hand, Sir, they do construct as many miles of railway in tlje North-Weat in proportion to the area, as have ah'eady been constructed in the three states named, the exeujption from duty upon the steel rails, fish plates, spikes, bolts and nuts, alone would be worth $22,400,000. Supposing only 12,000 miles of railway is constructed under the contract now upon the table, exempti(tu from duty upon steel rails, fish plates, spikes, bolts, nuts, wire, material for bridges, telegraphic apparatus, &c., will be wortli at least. 812.i>00,(M)0. 1 cannot help calling' the attention of the House to the fact that, if it be true that the producer pays the duty, we are losing a splendid opportunity of making the producers of iron and steel in the United States and England pay at least the enorm- ous cash bonus we are under this contract giving the Syndicate for the con- struction of this road. A duty of _.') per cent., (and farmers are compelled to pay a duty of 30 per cent, upon the implements they require to gather their crops), upon $12,000,000, which is the value of the iron and steel which will be required in the construction of only 12,000 miles of railway, would give us the magnificent sum of $28,000,000, — enough to pay not only the cash bonus we are giving the Syndicate under this contract, but, also, a sutticienf sum to secure the construction of the Sault Ste Marie branch. If, on the other hand, it be true that the consumers pay the duty, what a monstrous fraud the National Policy is upon the consumers of this country. I desirr to call the attention of the House to the grand opportunity which the Government has to secure by a protective duty upon steel and iron, the early and rapid developement of the iron mines of this country. Here is a sure market, including the iron required for the construction of cars, loco- motives, bridges, &c., for not less than four million tons of iron within !1m- next 24 years, .\dding to this the amount required for railway^ in the older provinces, and the amount used in the ordinary business of the cotmtry — namely, about 20<) tons per annum, and we shall have a hon^e market for ten million tons of iron and steel, the avi'rage value (»f which may be safely ep- timatated at $40 per ton, or a total of $4(H),(M)0,(MX), which immense sunj must otherwise be sent abroad, to the great grief of honorable gentlemen oppo.site, to employ English and American capital and labor. The developement of the iron industry in Canada would give employment to tens of thousand of skillfd BaOH V2 SPEECH 01' MU. (ILEN, M.I'. Jill It! Workmen. RnlarKing tlu* lioiiie iniirk<'t for oiir variouH iiiamif'iictnrinf,' in- iluHtries, and vrcntinif n deiiiand for a very Inviiv iininb-'r of inniiiyrantR. Com- l)annl witlj tijis, tlu- construction of o.ie or more 8n764.*2r> ; in 1878. *8(»9.8«}, per mile. « r an increase in th»- rate of taxation per mile, between 1804 and 1878. of one lamdred per cent. In 187M tliere were in operali(»n in France i:{.871 (I'lnglisln miles t>t railway. 'I'lit direct taxes i)aid to the Govemmeot was Jin.lo.l.OOO, (>r at the rate ol 1^1880.93 per mile. The indirect taxes, such as the free conveyance of the mails, troops, numitions of war, Government servants, Government bullion, t&c, Ac, amoimted in value to 16 million dollars The Paris. Lyons and Mediterranean Hallway returned t • the Government nearly eleven per cenl. per annum in taxes, on the cash subsidy granted by the Gi»veniinent to aid in the construction of the railway, and at the end of seventy yj-ars the road reverts to the state. I have the opinion (d" Mr. Charles f'rancis Adams, junior, that the 94,000 miles of railway, now in operation in the United States — (which is equal to one-luilf the railway mileage of the world— 48.000 miles of which have been constiiicted since the beginning of the year 1870) — pays upon the average $H(>0 per mile, or an aggregate of ^28.20O,(»OO jut annum. We have here the actual policy o\' the three most enlightened nations of the world respecting the taxation of railways, showing that in Knglaud in the year 1878, the Government received a revenue of SlO,200.0()(i from r2,59"2 miles of railway. That in France, for the year 1879, t'loni 18,871 mile-* of railway, the French Government received nearly 80 million dollars in revenue. That the revenue derived from taxation of railways in the United States was *28,'i00,000. or a total for the three countries of $74,- 400,000, an amount thx'ee times as great as the entin- revenue of tin Dominion. English and French Government returns, and the returns of Railway Companies in the United States, show that the rate of taxation per mile is regularly and constantly increasing. Therefore, taking into con- sideration that more than one-half of the railways of the United States have been constructed since the beginning of the year 187(1 — it is not unreasonable to value for a period of fifty years — exemption from taxation for the 12 thousand miles of railway I assume will be built in the North West terri- tories under this contract, at #500 per mile per annum, or a total of six million dollars. Capitalized at 5 per cent, the exemption would be worth 125 million dolln)'s. The taxation of railways is so important a question that the Government of the United States, during the past year, obtained through its foreign ministers a statement of the policy pm-sued by England and continental nations, towards railways in this respect, and the manner in which the tax was collected. Reports were received from Austria. Belgium. Enghind, France, Gennauy. Holland, Hungary. Russia, and Switzerland. The only Government exempting railways from taxation, is that of Hungary, and in that countiy concessions are granted railway 14 SI'EKCH OK VfR. (iI.EN. M.V. 1; I'uiupanieK I'kir '.(0 ytiiu'H, witli tlic condition tliat at the ond of tliat period the whole fruncliiHe and property, witli an equipment equal to the original anionnt nliould revert to the state. Of the HG StateH of the American Union, all Iff them, without a «inj,'le exceptic" tax railway property, rolling stock, road bed, ike , &c., and I have not been able to tiud a Hingle inntauce iu the history of American or I'^uropean llailway (^ompanieH in which a perpetual exemption from taxation lias ever been granted. Exemption from taxation fur a few years only, has been granted in some states of the American Union for special reasouK. but the general polit^y of all nations is to treat railway property the i-ame as thai of a private iudi\iilual. Tiie manner of (;ollecting the tax varies somewhat in diflen-nt states aixl ccHuitrieH, but the fact remains that all countries colb-ct iu our way or another a vei*y large revenue from railway corporations. Thk Law in Alaiiama. Ueturns are made to a State lloiird of the whole length of track antl of the lengtli in each county and town ; iilso of the value of the road and of all real estate used for operating it, a))d oi' the rolling stock. The board finds the value of each uiiU' of r(jad, and notifies the usses>4ors of coimtics and towns of the amount assessable by them, depending upon the number of miles in their limits. They add the value of other real estate, and of tools and machinery, and assess on the aggregate as on the estate of an individual. The value of real «'state is to be asseased ais if owned in fee, simple without any deduction for niortgages or other cause, 'i'here is no appeal from the decision of the State Board. The penalty for not uj king returns is double taxation — obtained by adding one hundred per <'ent. to the assessable value as found. In Arkansas. The County Clerks of the several counties through which a railroad runs are constituted a 13oard, to annually "ascertain the value of all personal property, moneys and credits of such company, and appraise the same at its true value in money." They may require detailed statements under oath, and in ascertaining values, — road-bed. stations and other realty, necessary bo the daily running operations of tlie road, are to be estimated as personal property. The fundamental principle is that of a property tax, levied upon an arbitrary valuation and paid directly by the corporation. In Califoknia — Railroad corporations are taxed as holders of realty, on the laud occupied as right of way, with the track and all structures thereon aa a whole, at a certain pum per mile. On land not used as track, railroads are taxed like other property holders, on "the cash value of real estate,"' and separately on the "cash value of improvements" thereon. The personal property is asseRse^l of that jM'rioil to the original nienoun Union, ^ rolling stock, inntuuce in the oh a perpetual I'roin taxation inencan Union t treat railway er of collecting le faet reniuinH j'cvenne fvoni )f trftek an«l of road antl of all lie board finds ' counties and lie ninnher of , and of tools an individual, nple without peal from the ns is double iessable value railroad runs all personal e same at its under oath, , necessary as personal levied upon ad occupied whole, at a taxed like parately on is asseRsed SPEECH OK MK. (IJ.EN, M.l*. u wherever it is found, except the rolling stock, which is assessed in each county Uirough which tlie road runs, in p)x>portion tt* road iu each county. The assessment of each county is sent to the Board of Supervisors, thence it goes through the county auditor to the State Board of Etpuili/ation, ooutiisting of the Governor and two other otiicials, who levied a Kutlicieiit rate to raise the amount directed by legislation. lOach County BoanI, having received a state rate, collected the state tax and intth fixed the county rate and colleeUMi it. Municipal authorities assessed and collected taxes on property found within each town or city. Under the new c«ntstitutioii the property to be taxed includes credits, bonds, stocks, dues, and franchises ; a State Board of E(ptali/ution and County Boards are provitled for. The State Board is to assess the franchises, I'ight of way, road-bed, luils. iiud rolling stock of nil railways running througli more than one county at their ucluiil value, and apportion it to each county and nnuii<-ipitlity in proportion to the length of road therein. All other projMjrty is assessed in (he place in which it is situated. In Coix>k.\uo — The State Board linds the value of all property, »"eal and personal, used fur raih'oad purposes, considering all the circumstances <»f the roa road in the state bears to the whole length thereof — deducting the amoimt of local taxes paid on land not used for railroad purposes. The amotmt of municipal railway bonds of which the avails have been used for the road ; is included as part of the debt on which taxes are assessed. This is paid to the StaU* Treasurer, and is in lieu of all taxes on the property or roads of the C'ompany. The state tax is assessed on the amotmt as returned by the railways, and is corrected by the State Board of Equalisation, whose decisituj is final. In Dklawark — liailroad corporations are taxed on land just as other owners of land are taxed. A yearly of one-half of one per cent, is laid on actual cash value, y tHx is laid of 10 per cent, on net income, and when the rotul extends to other states both these taxes are laid in proportion to length within Delaware to the whole length of the road. There is also a tax of ten cents on each passenger c/imed within the state. An animal tax is laid of $100 on each engine ; $2ii on each passenger car, and $10 on each freight car used during the year by any railroad company incorporated by, or doing business in the state. The right to levy this tax in being contested in the United States Supreme Cojut. ir; HVKKi'ii or MIC. f;M-:N, ^f.I'. (I l.\ l'l,t)Kll»V Kiich roil I iTtuniH to tlu- State Ci/inptrolliT tht- lt'ii;,'tli ami \iilttr of tin- roiul, incUi.linj; tho nj^lit of way and roUin;^ sliH*k. Tlic coinptrolltT iipportioii-^ \\u' luiumut to ouch mile, uml iuforins the (•ouuty otticci's wlio ii«M to tlu-ir couutit'K, sliaif tl»o other property in said county ami levy li tax <»n the wnffvv- •^•aIv as «>ii the pn»perty of an imlividnal. (fKOR(»IA — The iiiilway coniimnies are taxed like individuals on the value of the road hed truck, stations, rollinj; sundi. and all othei- proin-rty. real and jHM-Konal. The nite has Inren one-hiiir of one jH-r c<'nt. ('«>nnty taxes are levi»-d at a pei- Cent, tin the state tax, aitd on the siuue valuation. In li.LiNOirt — Taxes aiv levied on mih-oad cor|K)ralions as on other coriNtrations a)id on individuals, uecordinf; to the value of tlwir projH'rty. Tli»' ii;,'ht of way, all hacks, stations, and iiiiprovenients on the nj,'ht of way aiv assesed l>y tin- State Board of Isqnalization. AH other real estate is assessed as the land of individual is. All jwi-sonal j>roi)erty, except ndlin^ stock is assessed whereve)- it is t\)und on May 1st. If tl»e value of the capital st«)ck exceeds the value of tile real and iH'rsonal estate the increase is assessed as capital stock. The vahie of rollin<; stock is fixed hy the State lioard. and distrilnUed foi- taxation anionj; the co\inties and niunicii)aIitieH, in proi)oi'tion to the leuf^th of rt»ad therein. The value of rij^ht of way, after hein^ assi'sst'd by the State HoanI, is distiihut- ed in like manner, except that side and second tmcks and hnildin<,'s on the ri}?ht of way are taxed where they are situated. Thei*e is no appeal from the State Board. In Indiana — The law of taxation is the same as in Illinois, except in throe paitieulai-s. The whole capital stock is liable by law to be valued by the State Board and and distributed for taxation to the counties and towns in proportion to the lenroperty. Assessments are made on the value of the entire railway, at the estimated value of each mile, includin*:; in the estimate rijjht of way, brid{?es. rolling,' stock, stations, and all other property exclusively used for ralroad pui-jKises. Shares are taxed at their market value to the holdei-s thereof. In Kansas — • The general principle of taxation is assessment on alll property at its \alue in money. "Railroad property" is assessed by a State Board who esti- mate the value of the real estate connected with the right of way, and used in »« • .■^- '■^^^^^'■^if^Vf Vlllltr of tlw h'V ii|)|>orti«>MN add to tlu'ii- i>n the ftK>f»'«'- w of tlic roiid md iH'i-soiuil. ?v\ed at ft i)or itioiiH a)id oil t of way. till ■*psed l»y the ' the land of fiOi\ wIhm'cvci- the vahic of . The value ation aiiioiij; oad therein. in diKtiihut- iii^H on the ftl from th(* larticulaiN. Board and •tion to the is taxed to ithiatioi). KKessinents ne of each stations, "Allures are rtv at its who esti- id used in SI'KKCH OK MU. t.I.KN, M 1\ 1 ihe daily v>^wrati<»ij of the road> including rails tivN, "I'miK-iiiM'h" uutl liuildin^'s. To UiiH is a4ldDd all laoueyH, creditH, iukI protits all rolling' ht«iek ownc>d or hh' li hy ihti coiujiaiiy. And the taxahle value un iiMCortaiiied Ity thiN addilion i<. jipportioiU'd uinoii;r the counties and luunieijialitieh in ]ti-i«jMirti tin* len<,'tli r of road therein. Ileal eMiite, not included in the al«»ve de^cri])tion that ii« real estate not used in the daily ojH-ralion of the road, is ta\«'d lik< (Ik iand i' tlx' piTCfdiii^ yonr. Kroiii tli(* viihmtion for niiliimd ('oni|Niiiu>H jh dcdurtctl nn ittnount proixtrtioned lo thiit |M>rtii)n of tlu'ir len(,'tli lyin^ U^yond the state liinitK, — the vahie of real OHtnte nnd nmcliinery loouted and suhjcnt .<> h>nil tnxeH within the Htnte. 'I'axet* nre \mu\ hy the i-uilroud cor|M>rntionH to the state treuHnrer, wIjo is Moiiiinnlly tax eomniissioner. nnd who, with the lUKhtor und one nieinher ol the con^u'il, constitute it Board of Api>eal for coiTection er mile, and three [yer cent, on gross earnings exceeding that sum. There is also a tax of three per cent, on receipts from passengem carried in any place or sleep- ing car, or any car for which an extra price is paid ; and a tax of two per cent, on gross receipts derived from leasing or hiring of cars by any "sjwcial," "fast," "colored," or other freight line. Real estate not used for milroud j>urpo8eH is subject to local taxes where it lies. In Minnkhota — A tax of three i>er cent, on gross earnings is laid in lieu of all other taxea. but by special legislation the amount of taxes has been reduced for a term of years, including the Northern Pacific. Taxes foi- each year are assessed on the eaniings for the year preceeding. Mississippi — A tax of $80 per mile is laid in full, of all state, county, and munici))al taxes on railway property. Real estate, not used for milroad piuqioses, is taxed locally like the land of individuals. And the same is tnie of personal propert,>- not used for railroad purposes. Stock is taxed to its whole, or at itP market value. One-half of the franchise taxes goes to the counties through which the road runs — the balance to the state. Ik Missouri — The constitution of Missouri provides that all coi-porations in the state, oi- doing business therein, shall be subject to taxation on all property owned oi- used by them, and on gi'oss or net earnings, and on franchise or capital stot'k. The law provides that, for purposes of taxation, each road shall furnish the state auditor a statement of the length of the road and of extra tracks with depots, water tanks and turn-tables ; the length in each county and munici- pality ; the number of engines and cars, and all other moveable property owned and used by them, and the value thereof. Like statements are sent to each county. The State Board of assessment and equalization revise the estimates. The State Board apportions the value of the pi^operty above named to each county and municipality in proportion to the ratio of miles of each road pi-opfMliiiK" yi'ttf. int propoi'tioiu'tl the vnhie of rcul itiitii the Htntc. •oHKurer, who is one luomher «»! ■rrorH, and their lih'oad pnrpoHt'M. I2.(MH) per niih-. There is alBO ti V place or sleep - of two per cent. H|)ecial," "faKt," road ptn'poseH is all other taxes. ?(1 for a term ol' asBcssed on the and ninnieipal id puqioses, is lie of pernonal I'liole. or at it? 11 ties tliroufjh |n the state, oj- !rty owned ov capital stock. [ill furnish t\w \n tracks with and munici- >pei'ty owned I sent to each the estimates. inied to each I of each road S1'KK<'H l)K Mil. (i).KN, M.I'. 1'.) therein, to tlie whoii- h>nKlh of llii- r«itid in th*- htiUi', iiiiil tiixcH are iihKfhHtd on such iipportionineut. liocal taxcK an- aHMeHMcd on all pro))<>rt\ not hpeciti«-d idnive, inclu(iin<; hiiiiU. workslxips. round liousex and other hiiildiii;;^, funiilnrc iiud other p«>rN<»n!il pioperty, )>,v local M^'i tiu- properly of the corpor.itions at the cash value for each inih;. ;in(l (li\ides the whole amount Ity thi nundit-r of miles to ^^et tlie value of each. In iloin<; this they use the nrport lUid any other infoiniiiliini that they can j(el. The Hoard does not assess the value of any macinel" assesses these. The county commissioners tidjust tin- numher of miles and aintxiiit atnon;; the various iminicipalitics, iuldiiig 50 per cent, when ii rep(U"t has not been mnile liy the raihiind eompnny. Iv Nkvaoa — llailway tuxes are assessed on the cash value oi the property in each eoimty, by the county assessors, both of real and persoiuil estate Uolliu}.' stock is taxed in eiich coiinty in proportion to the length of road tliereiu. In Nkw Hamphhikk — Railways are taxed on nil their property, including road bed. buildings, rtdliuf; stock and ecpnpment-i. at the ftvera<,'e rate of tftxati<»n in all the towTis and cities of the state. In Nkw Jkrsey — Ihiilway com})anies arc taxed nne-liivlf per cent, on the true value of the iiiaii used by them, equipments and appendages. The company makes re- luruH of this value — the railroad tax commissioners have power to revise it. Upon all real estate owned or used for a road, except the main track IfHi feet in width, railway companioi^ pay county and town taxes where it is stated, at one per cent, on the value. Railway stock is taxed in the hands of the owners therooC. Valuation for county and municipal purposes is made once in three years by the commissioner of railway taxation. Personal property not connected with the road is taxed as it is to individuals. Special provisions are made, whereby the United New Jerwey Railroad and Canal li •20 SrEK(H OK MK. GLEN. M.I'. Coinpiuiy pay a tiwA siiin ol' 9*2WH,ri8 Hiiiiually in full, of all 8tate taxes on its roadx, on cti'tain roiulitions. In Nkw Yokk — There are no taxes exrept local oiits. uiul these are lai{' its tiiu value in money. The real f-slatc of eacii )iiilri>iid is taxed in the pluce where it lies ; hut jHiitMMjal projwrty is held to include the road-hed, water and wood stations, and all other such i-ealty as is necessary for the ihiily nmnnin}^ ojiemtions of the road. A hoard (•(insisting of county am li tot's of the counties throu;,'ij which any milroad nuis. estimates the value of all the pei'sonal projierty of the milroad company. including the ahove named items, and apportions it among the counties and uiumcipahtieH through which it nms, ho that to each shall he apjiortioned such part thereof as shall e(]ualize the relative value of the i^eal estate, stnictures and stationary personal proi)erty of such milroad company in the state and so that the ndling stock (including vhat hired or nui under control of the company), shall he ajiportioned to each county and place, in proportion to its part of the whole road in the state. The county hoards report to a State Board of E(]uali/ation, from wlu)se decision there is no appeal. In Orkoon — The only j)rovision pectJiar to raikoads seems to he that rolling stock is taxed in the county where the jirincipal depot or business is done, hut if either terminus or any dej)ot is in the coxmty where the princijjal office is, it shall he taxed there. In Pennsylvania — All raili'oad companies paying dividends of six per cent, or more, pay u Ktate tax of one -half mill on each dollar of capital stock. When the dividend is less than six per cent., the tax is three mills upon each dollar of appraised value ol' capital stock. In luldition to this all raih'oad companies (and also telegraph, ))alace-car and sleeping-car companies), pay a tax of eight tenths of one pel- cent, on gross receipts. In Uhodk Island — Railway coq)orations ai'e taxed like other corporations and like individuals. on the value of their estate. Each town taxes the roads inuming through it on the value of its track and other real estate. Holders of stock are taxed ac- cording to its value. In South Carolina — Tlie constitution reijuires ecpial taxation of all property according tt) its value, liy law, the road-bed, right of way and stations, are regarded as per- soil sidl out slal rolj lra<| null taxJ real and AlK oft the In '"for net al wh: on ( nun In on 1 taxi stO( reti ant to 1 In pri rai ret thi la' ar pr all Htate taxes on I «>i) the real and as taxes are laid t>ii rolliuf^ stock, tiiial. The New r mile in 187'.l. >ney. The real HiitKJDal j)ri)i)ertv 1(1 all other such e road. A hoard ,ny nvilroad niiis, lilroad company, the counties and apportioned such estate, stnictures in the state and ;r control of the proportion to its eport to a Staff rolling stock is ne, hut if either ce is, it shall he or more, pay a len the dividend |ar of appraised mies (an«l also «'i},'ht tenths of |ke individuals. throu}i[h it on are taxed ac- |cordii)g to its ,'arded as per- Sl'ERCH OV Mil (VI, EN, M.I'. 21 MUial property. .Vu annual retuni is made (d' the leiii^'th of triieks, iiuiin and side, the value (d' all ltiiiltlin;;s. statitmary engines, implements, rolling stock, t'loneys and credits : also (»f the valne of the whole road and equipments in and out of the state. an the amount ot real estate and lixtd pioperty tlierein, as a l>asis for assessment. Htit all property, real an 1 personal, used for railway purposes, and all real estate vfhich the eomjiany is allo\veil_ to hold, is to l>e assessed at its actual value, without rej^ard lo cost. Ueal estate used for any purpose not immediately (tounected with tlio roml, is laxtd like the property of individuals. In Wisconsin— A state license tax lakes the idat^e of all state and local taxes, •)n all real and personal projierty used for railwjiy purposes. ex(!«!pt special assessment for local iui 'rovcmi nts iu towns aiil villiiijfeH. The annual license fees for tht operation of siieh lailways is as follows : — 1st. l<'our per <'entum of f^ross i^arniiif^s of all railro.ads, except those operated on pile and pontoon, or pontoon bridtres, whi>s<' «,'ross earninjfs etjual or excf (>))era1.ed road. •Jml. I'^ive dollars per mile of operated railway of ail I'oails wiioso fjjross t-arnin'^s eiceetl loOO dollars per mile, per annum, and are less than oOOO dollars per mile, per iiMiunn, of operat,<^d road, and in itdditioii, two per ct'iitum of their j);ross earnings in excess of ir>(X) dollars per mile, per annum. iJrd. I'i%e dollars per mile, of operated roatl. by all com- panies whose yross earniiij^s are les.s than loOO dollars, per mile, per annum. 4th. Two per (^tnilum of the ijross earninjjis of all railroads which are operated upon j)ile oi' pontoou. or pontoon bridi^es, which ;^ross earnmgs shall be returned to such parts thereof as are within the state. .\ssumintr that four ceiit^ per ai ni!irk(!t vuluc, iniHH tlirou^li tlio *• Kiinic valuation the proportionati tlie state an com- Le value and t\n s, is tul(lei, and assumint,' (hat (he whole luimbir of acres will Ik- liehl by th«^ ronipany I'or an avenji^' <»( twehe yeaiN, tlMJ value of exempti<»M from taxation H|'<»h rlieir laMd> is w'<»rlh »«el\e Miillion dr only «»ne-half the rates now bein-^ charf^ed by (he same j»entlemeii who own tin- St. Paul. Mimteapolis and Manitoba Kailway. it will be seen that they will take fr»»m the pockets of the fanners on the Krain pri)duced, U(» le.ss a sum than ten million dollars annually. It will be fair to assume that for the transportation of fuel. hmilxM", machinery, n)erohanilize of all kinds, and other a^^rie-ultural products, that uuist l)e shipped into or otit of the North-West terriUu-ies, iheV will exact an equal ann)unt over and above a fair and reasonable profit nyou the cost of Rovvices they render. inakineen made, from orsf»m/incree chni-ged hy file n* .way eomj>any. fn this way the capital stock and iMnids of the Union I'acific Kftiiway ('om]>any and the Central Pacific Kailway Comyany — com- posing the line from Omalia to Han Fmnciseo, has been increased to $2()8.00().- IKX), ten i>er cent, upon wiiich would l»e $2().80(),0(K). Whereas the actual cost of construction did not exceed one-half the sum. Tlie Canada Pacific Wail way Company may purchase the Ottawa, Montreal. (^uelMJC and Occidental I'ailway. for the sum of 14 million doUai-s, and under the contract exact ten per cent ujion that sum hefore the Government could interfere to i*e^ilate the tolls. As is well known the leading niemhei-s of the Syndicate purchased the .St. Paul and Manitol«i Railway for a sum not exceedinf? ten miUion dollars. The roae chiiTijed l»y ij(Ih of the Union Comyany — com- iHed to $2(>8.00().- lereas the actual } Canada Pacific jc and Occidenta! •ontract exact ten •e to re^ilate tht- ite purchased the 1 million dollars. There is nothing inj,' this road at )ntract the Gov- I Pacific Railway ollars had heen to construct or or Halifax, or ■an demand ten lilway Company- A'ith the power ;o tidewater or n as to ^ive the ates which they rations to come. nents made by ultnral lands in i-y of Manitoba •e is 250 million I a quaUty that ified in issunijf ars per acre for Ihe road. It is |fi*om Winnipeg II inif^ht as well nndertAke in do the carrying trtule between Montreal and LiverjHKtl witJi om* steamship. The value of the chiuse exempting tK»uj duty st<'el mils, bolts, nuts, spikes, hsh-plates, iron tor bridges, wii-e for telegraphs and telephones, lelegi-aphic apparatus, ^'c, &c.. is worth at the lowest calculation, one thousand er mile, i>er annum, or, cai)italiK,ed ai tive iMjr cent., ^10,000 per mile. 8o thai it is plainly evident that net<' witJi the Canada Pacific Ihiilwnv <.'ly ol milwa.x building for twenty yeai's, was lor the purpose of preventing the constmction of competing lines. It is idle to supiMJse that pnvate capital will cunstrucl branch hues which ai"e simply feeders to a uuiin line, which al)solutely controls and can dictate the price which the branch lines shall Iw aiU)wetl for trans' ])orting freights. We are tbired to conclude, therefore, tliat the conslructitui of railways in that vast teriitoiy nuist be. and will W, under the contntl of liie Canaila Pacific Railway Company. They will have in their hands the absolute control of the conmiei-cial value of the 226 milhon acres, "fairly fit for settle* inent," which, it is said, will still belong to the Government after they shall have >Mlected the 25 million acres gi-anted under this contract. If we ex))ect ler for East York, the honorable member for Hanulton, and the honorable member for North Simcoe, regretting their 1^1 '26 .STKKC'H OF >r!!. (iLKS, Jf f. ii^ ntiav<>iiltl>l«! u)»H«)n(-'f>, itiid exproHHiug ilicir sln>u«; syinputli.v with tFn» o(»jert ol the (Icpittiitioii. 'I'lip lioiioniMe Minislcr of Uailwiiys inmU> u speech upon tlmt (M'Cftsioii which j^rtv*' iiii; vciy ^^n-nl Hulisfiwiion. i thouj^rht il wan a t^ooil t*pn<» i\<>w— so <^\h*<\ thii\ 1 pco|»««M«» to reiwl it tu lh«- Hoiist*. SiK Chaklkh TiTppKK. — "I uiu iiidiiitMl tt> iHrlievt? thi»t if n connoctioii wi>rt' iiDiilc with tine Siiuh Sto Miiiie l>y ii line of niilwny exteiMlinj; from hen- ?>y (iravcuhursl muJ Sii>iKsiii«(, hikI fn)iii! NJoutivul l>v the CjiuhiIji Centnii iinakotiu ■iind the conntncs in tht* ncij^hlKM'hood (>f St. I'anI and .\Iim>eai>ohs — down llirou^h our country, hut that it is not fniu<;ljl with the danger that I at first iipproh(>n(hjd, Iwcausf, 1 Ixdieve we should In- cnai'lcfl by a \'n\f of stoain communit'ation from Sault Sic Mario to Thundi-r Jlay, and hy tlie (ioveniment roatl from the Noilh-WcHl to'tiif latter |K>int. whicli we aiv now eonstruetin^ a.-i rapidly as ]H>s,4iMe, to make our lines of coininunication .-tO much cheape)". niid hrin^ at the same lime the j;roat NoitliWost into so much more rapid irommunicatiou with tlie centres of jwpulation in the older aut any injury to the country, a <^reUit advaiitaj^e. 1 m* further. ;;entlemeu. tliini any pfii"son here has ;(one to day in relation to the provincial chanuHer ol this pnijcL't wliich yoa h ive in h iiid. I Ij^lieve il is not ouly not a Toronto, i>r ;i Hamilton, or a Belleville project — I Weliev.- it is not oulv not merely a project in which the intercalR ot Ontario are concerned, but a project in which the interest of thr whole ]>oiuinion are concerned. I look upon it as of th< •greatest possible conseipience to the success of our efTorfs in developiiif^ th< ;(reat Nortli-West. There is nothing tlmt can so nuich contribute to the uponin^ up of the mpid settletnont, and the trade conveniences of that iiu- jnense fertle territory, as the most easy and rat)i n>nil il to tilt t it' n connoction eiidinj; tVoiii hen- Ditil.-i ('eiitnil hikI fttVct of l»rin},'iiip iimcrtotu. I>iiki)tiu iii)eai>«>lis — down iRer thikt 1 ut tirst a line of steam the (ioveninient now construct in;; i> much cheaper. nnch more rapitl nul mort- nettled lender it, instead then ;ji>nlleni('n. icial chanvcter of y iu>t a Toronto, ilv not mereh' :t project in which |.K>n it as of the n developing' tht >ittrihnte to th( ices of that im- atiou8 witli tiic s, and unythiu;; he manufactur- Cana7 :i,polis, and the surrounding; country — the advautay;e which the people livin;,' in that Bection <»f the country find tiiey will derivi- from reachiu;; tlie sealioaid hy a much shorter, easier, and cheaper rout*- than any otlier. (nanuly ouv constructed to Sault Ste Marie), must result in ihr couHtruotiou of tliat road sit an early day." SpeakinR of the construction of tlie Sault Ste Marie llailway, the hotmr' ible MinisUu- of Railways ivmarktMl further : — •*I had an opportunity of discussing; this matter ii. few days h<^'o with Mr. Dawson, the member for Al<;onia. I asked that gentleman what woirld he fhe prospect of keepinj; up a winter water communication hetweeii Snult Sff Marie and Thunder Hay, He stcted that then' was a <;ood liarhor at Sault Ste Marie, that the lake would be entirely open during; the winter, and that fhe navigation would not be i rrupted for more tlian Hve or six weeks." The honorable Minister of Railways met a di'putatioii from the .\{ontreiil Hoard of Trade, Januaiy 8th., IHHO. 1 read from the Toronto .Vff// report <»f lanuaiy 9th., 1880 :— Sir CJliarlos Tupper, spoke as follows : — **The Government haviui; pro- vided for the extension of the Canada Central to Lake Nipissinj;, it hud laturally attracted a ;;reat deal of attention to the scheme, and the project to ■arry on that road from Nipissint; directt to Sault Ste Marie, had received iui iidditioual impetus from the attdution whicli had been ;;iven to the question by the railway ma^jnates and persons iuterested in the developement of the North western States. They found on lookinj; at the map that it was almost :in air line running,' from St. Paul ane completed by the first of July, 188'2, and there woultl he no difficulty, from what he could learn of the character of the country, in hnviufj the extension fi-om Nipissinf^ to the Sault completed at the same time. Assuniinj( that no 'movement wotild be made towards tlie construction from MimiPapolis or Duluth to th<> Sault, it would not in the »li<,'liteHt dejjree aftect his anxiety to see our own line extended to that point. \Vhile it would not secure the trade of the North-western States, it would «five our own North- West a vast advantajje over the adjoining territory, from the facility with which they could send their produce to the sea. I can, therefore, see nothinji to prevent the Government and the country from beinj,' interested in this project." I ilso desire to call the attention of House, and particularly, the honorable incnilter for Welland, to an editorial in the Toronto Mail of November 'i'ind. 1H71), as follows :— "It can hardly be said, as a result of the intei'view held on Friday last, that the Government is committed to a positive promise of subsidizing a line ot railway via Gravenhurst and Nipissing to the Sault Ste Marie, but it certainly may be said that as no public work was ever presented to a Ministei- by so impartial and powerful a deputation, so no deputation had ever a more explicit and satisfactoi-y adoption of their policy by a Minister. The com- mercial necessities and possibilities of the country have increased, «,nd pend- inj,' the completion of railway connection between Nipissing and Thunder Bay, the Sault Ste. Marie line becomes of pressing importance in the eyes ot men too much devoted to gi'eat public objects to be moved by selfish motives, and too various in political colour to be suspected of partizan strategy. Tlu- earlier opinion was that the Sault Ste Marie line would place us at the dis- posal of the Americans. The present opinion appears to be reverting to n great extent to Sir Hugh Allan's old idea, that it would enable us to offer a shoi'ter route to the seaboard to American commerce, and enable us to rival their older and hitherto unrivalled commercial routes. The future of thi^ new line is now in the hands of three powerful combinations. It is in the hands of the Ontario Government, so far as the Provincial subsidy is con- ceraed ; it is in the hands of the Dominion Government, so far as the aid to be expected from that (piarter is concerned ; and it is in the hands of tlu gentlemen who formed the deputation, and of those whom they represented on the occasion. Public opinion, the opinion of the press, commercial opinion, and official opinion, all combine to approve of the connection with the Sault. n Nipinsiii;,' to tJit Uiver, settled tlit- i'ect at the earliest the Government ami there would of the country, in at tlie sume time. construction From litest (lef^ree atiect i'hile it would not our own North - the facility with efore, see nothing interested in this •ly, the honorahh Novemher *2'2nd. d on Friday last, subsidizing a lin( te Marie, hut it ted to a Minister had ever a more lister. The com- ased, n,nd pend- U and Thunder e in the eyes of selfisli motives. |» strategy. The us at the dis- reverting to n U8 to offer a liable US to rival future of thi^ is. It is in the subsidy is con- !ir as the aid to hands of the ley represented ercial opinion. ith the Sault. Sl'KECH OK Mil. tlLEN, M.P. '20 .md it will he a strange thing it, in these days of great confiihnce and «>f rapiil rowth, we do not witness the speedy accomplishment of so heavily endorsed ;in undertaking." Mr. Speaker, 1 approved of this etlitorial when I fii-st reail it, and 1 aji* prove of it now. I no not think that my honorable friend from West Durham presented the desirability of the inmiediate construction of the Sault Ste Marie road very much better than the honoraide Minister of Railways did in hix speeches at Toronto a»jd Montreal, or than the Govei'timent organ, the Toronto Mail. The reasons which a year ago justified and denumded tlie eiirly constniction of that road are stronger to-ilay than they were then. The immediate completion of the Northern Pacific Railway is assured; the ct)n- struction of the line between Sault Ste Marie and Duluth is now being piished forward; the trade of the North-western States has developed greatly within the past year, and we all appreciate more than ever before the desirability of directing the trade of the North-western States to our seaboard towns. Since that time the Grand Tnmk have completed the line between Port Huron and Chicago, and thunng the first year received 29 per cent, of its entire traffic through its Chicago connection. The census of the Llnited States has been taken, showing an enormous increase in the population of the states ami territories, which would be tributary to the Northern Pacific Railway, and wjjose trade would find the shortest, cheapest, and most direct route to the seaboard over the Sault Ste Marie route. The population of Minnesota, Wisconsin, W^ashington, Oregon, Montana, Dakota, Idaho and Northern Michigan, states and territories through which the Northern Pacific Railway passes, already have a population of thi'ee millions, according to the census of 1880 — increasing at the rate of more than one hundred per cent, in ten years, so that within ten years it will be within bounds to say that the North-western States, whose easiest, cheapest, and most direct outlet to the seaboard will be via Sault Ste Marie, will have a population of six millions, which will probably be as great as the entire popxilation of the Dominion at that time. Under the pooling arrangements of the Trunk lines, the Grand Trunk was allowed only seven per cent, of the traffic centreing at Chicago, and yet its earnings from its (^hicago connections amounted to five million dollars the first year after the road was opened from Port Huron direct to Chicago. This will enable us to estimate the value to Canada of another direct connection with the trade of the North-western States. The gross receipts of the Union Pacific and (Central Pacific Railway Companies for the year 1880 exceeded foi'ty-five million dollars, and it is estimated that for the year 1881 the will exceed fifty millions. Assuming that a portion of the through traffic of this line will be secured by the Nortliern Pacific Railway Company, and that its cheapest, most direct and natural course will be via Sault Ste Marie to Montreal, I think I am Ill :J0 HVKFA'U OF MK. rW.KN, M.f. jiiHtiHcd in Hayinj,' tliat iIm- Irmle of ilip NnrtliwiHtcin StaU-.H. to !«• M'cmvtl l»v tlio Siiiilt Sti' .Mt»ri»' iroiiiicetioii, will Iw of fi»r yrHut«T viilni' than tli»> tnuli now Hceured l>y tliu Cliicu timt, :tt an ei»rly of tlu- Nortli-w«>Htuni HtateH which we obtttin thr(>nf,'h the (iriiml 'I'rnnk, l>nt ii1h>, the tntdff which conieH from the Stute» to Moutn-nl through (h(! Wfllund iiiiii St. Lawrence (.'analH- Hut throwing uHide the value of tiif .VnifHcan trade which must flow to Montreal over the Siuilt Stc Marie line. I dc-iirc to call the attention of the Honse to two or throe stattMiientH made liv the honoral>le MiniHtci' of Uuilwayn in liin re|dy to the ilei>ntationH who waited npon him at Montreal and Toronto, tie diHtinctlv .states that th« • • • (fovernment will conjplete the line from Thunder Bay to the Reil iliver \>\ •luly Ist . 1882, and that the line can he (completed from Nipissinj; to Sanlr Ste Miirie by that time. If this be true, there will he no difticnlty in secnriuf; the construction of the Sault Ste Murie Hraiich and iiuvinj^ it oi)€n for trutlic l>y the firHt day of May, I88rt — thereby skjcurinj;, as the honorable Ministei says, a cheaper route for the trattic with our own North- West than via St. I'aul and Duluth or Chicaj^o. 1 also desire t() (rail the attention of the House to the rttatement made by tlie honorable Minister of Kailways. that tliere is a t^ood harbor .it Sault Ste Murie, aotl that the honorable member for Al^onia informed him that ''the Uke would be entirely open during the winter and that navij,'-uti()n would not be interrupted for more than the or »ix weeks." Now, Sir, we have the authority of the honorable Minister of Kailways foi- statintf that the m'lst direct and cheapest route to the North-WeKt territories, can be constructed within two years from the first of July next ; that it will y:ive a route throuf?h oiu' own territory for at least ten mouths and a half in each .vear — statements, which, if they were true when made by the houorabh- Minister of Railways in Toronto and Montreal, are true to-day, and are jjood and sufficient reasons for the immediate construction of the. Sault Ste Marie road. The honorable Minister of Agriculture has admitted that the K^'ent majority of the emigrants arrived in this country during the period of navi- gation, and that the great majority of emigrants go to Manitoba during the season of navigation. If this be true, within two yeare we can have the shortest, most direct and cheapest route — not only foi- freight but for emi- grants — through our own territory, if we construct the Sault Ste Marie branch — whereas if we do not construct this line we must continue for ten years to .send our emigrants through the United States where, it is said by houorabb- ministers, a large [)roportiou of them are induced to settle. We are asked to proceed with the immediate construction of the Eastern, or Ijake Superictr section, for the purpose of securing a route through our own territory for about five or six weeks in each year, and that six weeks at a time when the traffic I'll liil ft le 10 ud hu HV oil ife. ctu cut [laj tei iu lO I ORt iipil iiore n ot ive I Iocs )f ra vers ivrn: hat ear ime lOt ( he: in i, argi I'he nill It i a tl hav iou s>er\ »'.H. t(» III- wpu/vtl till*- tiiiiii tlio tnidi- ink Uitilwtiy, iiikI. II vulue~iu>t onl\ ronjjli tlif (iiand Moijtnnl throiii,'li the value of tlin uU Stc Murie liiu'. statfMiientH inaih- iie|>iitatioiiH who V .states titat tb«- ho Rod llivf-r 1(\ Ni|)isHJiij,' to Snulr ic'iiltv in Hocnnnf- t oi>eii for traffic njorahh' MitiiKtcr We«t tlian via S(. SrKK( H OF MU. (il.KN, MP. :\ two.i'U thf oliU'r nud tlu- iicwt-r proviiiccH in at thf lnwi-ftt |M>int. \Vt> liavi' iii'd, Mr. Spt'ak)'!-, much ftviupHthy *>\pr«'Hrif«l for thr poor Hyndiciitr. I link a htth- sympathy for th(> poor fariiH-rH who an* invited and », cost upon tli> verago thirty thousand dollars per mile, or 2580 million dollar^, the net 'iirnin{»6 were ofpial to eight and a half per cent. It must tiot be for<,'ott(ii hat more than one-half of the railways have been constructed within ten ,'earH, and therefore, a very larf^e proportion of thera have been but a short ime in operation and their business has not been fully developed. We niust lot overlook the fact, also, that over twenty-six thousand miles lay west oi he Mississippi River in the new states and temtories. There is no business )n this continent employing so larfje an amount of capital \vhich has paid as liY'^e net returns upon the average as eonstinictiug and operating railways. The net profits to the National Banks of the United States, employing 2 t'liniier to no only pay tin* cost of oinniinj,' toikIh and iMiildiri},' «cliool liouHes, ike, but actnjill_\ lo pay the cuiiro cost of prolcctinj^ the projK'rty of the railway company The 9))0 milcHiiiroiit^h the prairie section can unilonl>totny he })nilt and e(piippei for ten million dt>lliirs. The constniction of the Sault Hie Marie l)ranch can i) seenreil for three million dollars, in all thiiteen million dollars, which at four pe cent. jHT annum would heccpjal loan animal tax up«)n thcconntiy of .ViOthoUKain ilollinH, Under this c(»ntract the (iovernment are to complete the line froii 'i'lmnder Kay to W'innipej^, and now own the line I 'm Pemhina to Winnijie;,' The honorable Miniater of Jtailways has said thai the pmirie section wouli '^* 111 ii-()| (Mil II nil '1'1'P •enl| levj ;i'ai| hmnediately pay workinj^ expenseH and a fair ami reasonable interest upoi the cost of construction. The (fovernment can borrow money at four pei cent per annimi. Now, suppose the Government were to announce that thej would construct the prairie section as a Government work, and so arraufje thf tolls on tile prairie .section and the Thunder Bay and Pembina branches a to pay the Oov«(rnnient only four per cent, net upon the actual outlay for thi next '") years, and that private corpora linns ' ' be ijUowed to build a many brancliea as the development of the country demanded, that the freiffhth received fnun the branch lines would be transported over the main line upon as favorable terms as any other traffic, and the lands offered to actual settlers and to such only, at a fair price, we should then have a policy which would hiduce eini<,'rants to .settle in that country. Whereas if we confirm this con tract we create monopolies and j^rant privilej^es and exemptions which will tend to divert emigration to the United States. I am opposed to the confir (nation of the contract now upon the table, because it createh a practical iuonoi)oly in the constniction of railways throuj^hout the fertile section for twenty years, and jjrants privileges and exemptions which will tend to per petuate that monopoly. Secondly, because it exempts the lands and property of the railway company from taxation, thereby unjiistly increasint; the taxation of the fanners whom we hope to induce to settle in that country. Thirdly, because the muilierial used in the construction of the road-bed is oxempt from the ordinary and rej^ular custom duties imposed upon other branches o.f business. Fourthly, because under the contract the Government surrender their rij^ht to control the toll.'' of the railway company until after the net profits of the company exceed ten per cent. — thereby transfemng to an irresponsible corporation a control over the carrying trade of the entire country, north and west of Lake Superior, and, fifthly, because the Govern- ment have now in their possession from thoroughly responcible parties an offer to construct the road for a less consideration and upon much better terms and conditions. Sixthly. For the reason that the Government in granting Ar Sl'EECH or MH. l.I.EN, M.l', m >l"iny tVoiu tjixiitioii ^' the f'liriuer to no| leH, Ac, Imu nctnall^ railway conipany, <• f>uilt aiifl «'(|niitj)t',l rarie hraufli can lit] •«.wliicli at foiirpe itryofrj'iOtlionHa... plote tlie line from I'iiia to Winnii)ej fiirie section would able interest upon Honey at fotn- pei nnonnce that thejj find so an-antfe th( iibina branches a.' iual outlay for th. owed to build ai I that the freif?hti e main line ui)o»i to actual settk-rsi i<^y winch would confirm this con- •tions which will fed to the confir- etiteb a practical ertile section forj vill tend toper the lands and] justly increasinyl in that country, the road-bed is ied upon otheri he Government >any until after transfen-ing to B of the entire ?e the Govern - ble parties an h better terms 't in grantinfr > a.M,bH.dy 80 lar,.e u proportion of the ..ntir.. co«t ... consiru.tin. th. Mlway. KhonM have reserved the ri«ht U, n.un.o the ro,nl fur a r.aM.nal.l. l-roht over and above the capital, if any, invcKto.l by the conipanv in it. oustrucfon Seventhly. For the rea..,. that the contract ha.s Uvn n.ade udnect violation of tlu Canada I'aciHc Railway Act of 1H74. re,|ninnK ib... |>..bhc tenders when received shoul.l be subnntted to Tarliamont for it. l.proval. tor these reasons and nniny oiIutk which 1 might u.enti..n I ^e«thv.u, that the confirmation of the contract will seriouslv iuij.ede the :levelopenu.nt un.l settlen.ent of the North-West tcniU.ries." and that i, ;rants pnvileges an.l exen.ptioDK whi.-h will tend to destroy the peace ^•ell-bemg and prosperity of tho«e who ,nay settle in that vast re« on -' Applause.) • • '^ ^>Ji J'. JJ. NixtJi line from t}je J>.>tt..)„, /,„• 2tHi tn„s. re«eiiu'iU umdi' bitwffii llt-r Miiji'HLV the (jueeri uuliiif^ in n;sj)oot ol' th<' Doniinioii of Ciin.ula. and lH*rein repr«*H<'nti'rf(e SU^dicii ami l)uncaii Mclntyi't', <^< Moninial, in ^'.imulii ; .lolm S. Keiuieily of New York, in tlu- State of Nhw York; liicliHnl K .\ii;^us ami Jaiiios .1. Hill, of St. l^aiil, in tlie State of Minnesota; Morton, ItoHi' lit i'o., of liOiulon, Enj^iuud, unri Kt>nli Ittinarli & Co, of Pans. Franc*'. WitiU'rts : 'JMiat tii<> i)arti«.*M luicto havf cnutiai'tcd and a^i'«'od witli each i>llicr as follows, nanx-iv : I. For iJii' hettt'r int(^r|)n'tation of this contract, it is hereby declared that I ic jjortion of railway hen-inaftcr iuiUcd the eaHtern section, shall comprise tliat part of the Canada Pacific Railway tt) he con.Urnctcd, extending,' I 'onj iJie Western t^-rininus ol the Canada (ycniral Railway, near the <>Hst end of f^ake Nipissinu, ktiown as Callentler Station, to a point ot junction with that jjortio") of the saiil Canada Pacific Railway now in course of construction extending: tVoni r.ake Superior lo Selkirk on the east side of the Red River; which latter portion IS hi-reinafter called the Lake Superior section. riiat the portion ot said i-ailwa^' now partially in <'ourse of (construction, extendiuf? from Selkirk to Kandoops. is Iiereinafter calleil the central seetiovi : and the portion of said railway now in course of construction, txtendinu iVnni Kandoops to Port Moody, is hereinafter called the western section. ^nd tliat the words "the Canadian Pacific Railway," are intended to mean llie entire railway as ties- cribeil in the Act H7th Victoria, cap 14. lite imlividual parties hereto, ar«' hereinafter d(>scribed as the company: and the (lovernment of Canada is iiereinalter called tlie Gov«'rnntent. . •2. The <'ontractors iinmediaUdy alter the ory^ani/ ition of fiie said com- pany, sliall deposit with ♦'"' Crosermnent i|l,tK)((,(K)0 in cash or approved secMirities. as a security tor the construction of the railway hereby contractiMl fi)r The (lovt'rmntMit shall pay to the company interest on the cash deposit- ed at tlie rati; of four jjhi' cent, per annum, half-yearly iv.d shall pay over to tile company the interest received upon securities deposited, the whole; until didaull in the jjerformance i>f the conditions hereof, or until the repayment of the dej)osit, and shall return the deposit to the company on the completion of the railway, accordin<; to the terms hereof, with any interest aceru(;i'oximate standard whereby the qnidity and the ••luiracter of th«' railway and oi' tlie materials umuI in the eonstruction thereof. «nd the e(iuij»ment thereof may l>e re<;ulated. tlie Inion Pacific Railway of the United States as the same was wlien tii-st constructed, is hereby selcctetl and lixed as such standard. And if tlie (n)vernment ami the company should he unable to af^ree as to whether or not any work done or materials furnished under the contract are in fair conformity with such standard, or as to any other question of fiw^t. e\i'hidin»j (justions of law. the subject of disa-jjieement shall lal slJ thl col thl shI oul anl byf ,^('(| t\J be. tiol for THK SVNblCATK CONTRACT. ao 'or(je SlepheiLw '' the Cana(i(i\ > reprcHciitcil an.J iist4.r of HaiUinsI . '><' MomrtN-il, in ^ Vork; HidiHnl innesotji ; MortonJ f l^aris. I'lanc. agnuKl witJi eufhl ■<-••)> (lerlarod tluil II, shall compiisr ten.lin-,' 1 -oni \hu cast end of Lak. with that i)oitio:i ncticjii t>xt«^ii(lin^' k<'r; which latter y whom the evpense of such reference shall be defrayed. And if .^noh two [referees should be unabN> to aj^jree upon a third referee, hn shall be appoiuleil at the instance of either party hereto.- after notice to the other, by the Chief •fr.stice of the Supreme Court of Canaila. And the decision (d" swell refercfs, or of the majority of them, shall be final. 4. The work of construction shall be commenced at the eastern section not later than the first day of July next, and the work upon the central section shall be conunenced by the company at such point towards the eastern end thereof on the portion of the line now under cotistrucliini lus shall Ite lound convenient and as .shall be approved by the Government. tU ii date not later than the first May next. And the work upon the eastern and central sections, shall be vif^orously and contimiously carried on at such rate of annual pro^jrifss on each .section as shall enable the comitauy to complete and e(i!ii|i the sann- and each of them, in runnin>r order, ori or lud'ore the first day of May. IH'.tl. liy which date the company hereby a;(ree to complete ami eipiip the >aid sections in conformity with this contract, unless preventeil hy the act of G»nl. the Queen's enemies, intestine disturbances, epidemics, floods, or oilier causes itevond the control oftlie company. .Vnd in caseof the inttu-ruption or oiistrnc- tion of the work of construction froi any of the said causes, the time fixed for the completion of the railway shall be cxtemled for a corresponding,' peiioil. «). The company sliall pay to the Oovernment the cost, accordin^f to the contract of t^ie portion of railway. 1(X) miles in len-^th. extending' from the city of Winnipe<; westward up to the time at which the work was taken out of the hands of the contractor and the expense since incurred by tlx' (jt>veinmeia in the work of construction, but shall have the inght to assume the said work at any time and complete the same, paying' the cost of construction as aforesaid so far as the .same shall then have been incurred by the Governnieiit. (). Unless prevented by the act of God. the Queen's enemies, intestine disturbances, epidemics, floods or other causes heyond the contitd of the (io\ • eminent, the Government shall cau.se to be completed the said Lake Siipeiior section, by the dates fixed by the existing contracts for the construction thereof: and shall also cause to be completed the portion of the .said w'^stern section now under contract, luimely, froni Kamloops lo Yale, within the period fixed by the contracts therefor, namely, by the thirtieth day of June. IBH.") : and shall also cause to be completed, on or before the first day of May. IH'.M. the remaining portion of the said western section, lying between Yale and Port Moody, which shall be con ^tructed of equally good qxialitv in every respect with the standard hereby created for the portion 'lereby cmitracted for. And the said Lake Superior section, and the portions of the said western section now under contract, shall be completed as nearly as practicable according to the specifications and conditions of the contracts therefor, except in so far as the same have been modified by the Government prior to this contract. 7. The railway constructed under the terms herev)f shall be the |)roj)erty of the company : and pending the completion of the easte)'< and central se<'- tions, the Government shall tratisfer to the com))any the possession and nght to work and nm the several portions of the Canada Pacific Railway already c w m m w- THE HYNWCATK COJiTK.iCT. •«>. In consideration of th. , "Maintain saidsubHiji,.,,^ ^^ ;j"e Jhai , equipped, mafnta feS .^^^T^^^"^ "^^^ »^« "'la. proceed, in nanne -,n i ^""'\'^"'' granted as t) r ^ T '.*P*^^'ated, tJie .„ - The said sZil "''"'" ^''"•'•*-- SSlW-nri^^^ lollow,s, namely L"""'-^ '" '"«"«>' i« hereby divide,! ;: '"^ ^ ^ y 'iivi.ied an-<^, '^ 2.1,1.-4.50 '' ' ^^ if."/'!?. ;^"'f « per mile tJENTRAL SECTION. ■Assumed at «.50 miles s„h«,- 1 ^'^^^'^^^^^ SECTION. '-^-'bsulyeaualto9,015..35acre.permi]e... 1I,2.30,00(J 7,500,000 «,2oO,00(J 18,750,000 -•^hall I,e re,pue.?X "".' 'i;^^'^^"' ^^^ether wtrsuH^''"^-''^ ^^ ^« ^J'"i^^ ^''•'iiit t,) tlae comna, V H "^ ^'"'^'^^ tljereon tJie C ' ^^iipinent tJiereof the c.nipunv haNin" .j^ ^ -'i"'''^^'^" ^'^ereof iua,le ^?i ^^^^, ^^^^'^to, accord- •>'tlu,Govei-n, ent^'iin •*^'^'"" of receiving, i ■ I i n n? ^^^'^^^^'^''^ I»-ovi,led • fell-- '"^i '^- ^S-SSi-;? 5?;?4sS',;;f "om tJie subsidy to l,e thero- I'l sh be ex in frc: co: aft Gc cai wli all sal (XX the par cas sue rec^ the sue ofs bef sun slia of mill f,'i-ai for : at tl reqi raih Gov plat( mati of a requ the , vpi 3on.stnictecl by the ompany, and the the al)sohite pro- liter and forever my. ^session of each ot lie company shall stablslied for the ereafter maintain ee to >?rant to tlie XK),000 acres, for :iailway sliall be id operated, tlie ^ of constniction lat is to say : iqipropriated as 300,000 )00,000 810,000,000 100,000 $25,000,000 H follows, siibject 0,000 fO,(J()0 18,750,000 |),000 25,000,000 iby contracted Iso as to admit Vinent thereof jiiall pay and ]ereto, accord - >re provided ; linable bonds land nominal laccording to 1 Government or near tlie ^t, steel rails advance of Jetpisition of jrmined i)y (•eof at tJie |d shall be |o he th?re- THE SYNIUC'ATE CONTRACT. 37 after paid, upon the settlement for each sootion of 20 miles of railway, which proi»ortion shall correspond witli the proportion of such rails and fasteninj^'s whicli have been used in the construction of such sections. d. Until the fli-st day of January. IHH'i, the comjiany shall have tlie option, instead of issuin<{ land ^rant bonds as iiereinafter provided, of sul)stitntint; the payment by the Govermnont of tlie interest (or part of the interest) on bonds of the company, mortj,'af;int( the railway and the lands to be j^ranted by the Govennnent. ruuninjj over such tenn of years as may bt; apjtroved by the the Governor in Council in lieu of the ca>h subsidy hereby ajifreed to be j,'ranted to the company or any part thereof; such piiymeuts of interest to be e(piivalent accordni},' to actuarial calciUiition to the conespondinj^ cash pay- ment, the Govermuent allowin<( four per cent, interest on monies deposited with them ; and the coupons representing^ the interest on such bonds shall be j,'uaranteed by the Government to the extent of such e(iuivalent. And the liroceeds of the sale of such l)onds to the extent of not more than $25,000,000 shall be deposited with the Government, and the balance of such proceeds shall be placed elsewhere by the company, to the satisfaction, and under the exclusive control of the Government ; failin*,' which last condition the bonds in excess of those scdd shall remain in the hands of the Government. And from time to time as the work proceeds, the Govermuent «!;:ill pay over to the company : firstly, out of the amount so tt» l>e placed by the company. — and after the expenditure of that amount, out of the amount depositeil with the Government. — sums of money bearinj^^ the same proportion to the mileajje cash subsidy hereby aj^reed upon, which the net proceeds of such sale (if tlie whole of such bonds are sold upon the jssue thereof) or, if such bonds be not all then sold, the net proceeds of the issue, calculated at the rate at which the sale of pai't of them shall have been made, shall bear to the sum of $2").0()0.- 000. But if only a portion of the bond issue be sold, the amount earned by the company aecordinjjto the proportion aforesaid, shall be paid to the company, partly out of the bonds in the hands of the Government, and partly out of the cash deposited with the Government, in similar jiroportions to the amomit of such bonds sold and remaining unsold respectively ; and the comi)any shall receive the bonds so paid as cash at the rate at which the said partial sale thereof shall have been made. And the Government will receive and hold such sum of money towards the creation of a sinkinj; fund for the redemption of such bonds and upon such terms and conditions ; as shall be a«?reed upon between the Government and tlie company. «. If the company avail themselves of the option "[ranted by clausf d, the sum of !$2,000 per mile for the first eight hundred miles of the central section shall be deducted pro rata from the amount payable to the company in respect of the said eif^ht hundred miles, and shall be appropriated to increase the mileage cash subsidy appropriated to the remainder of the said central section. 10. In further consideration of the premises the Go\ernment shall also grant to the company the lands retpiired for the road-bed of the railwa3', and for its stations, station grounds, workshops, dock gi'ound and water frontage at the teriuini on na\'igable waters, buildings, yards, and other appurtenances retpiired for the convenient and effectual constniction and working of the railway, in so far as such land shall be vested in the Government. And the Government shall also pennit the admission free of duty, of all steel rails, fish plates and other fastenings, spikes, bolts and nuts, wire, timber and all material for bridges, to be used in the original constniction of the railway, and of a telegraph line in connection therewith, and all telegraphic apparatus required for the fii-st equipment of such telegraph line. And will convey to the company, at cost pince. with interest, all rails and fastenings bought in or m TFiK s\NiiioArK CON ri!A( r. Nincc the year 1H7!», and otlii'i- iimteriHl f'oi- foiistruction in tlie possession ofoi' [iiireliased liy tlie Govt tniiiitiit at a valuation: such rails, fastening's and Miatfiial not liein^' reqtiircii Ity it tor tlu- constnu-tion of lh<' saitl Fiake Siiperior and western sections. 11. Tlie <,'rant of land luMvhy a^'reed to he made to the conipany. shall In- so made in alternate sections of (>40 acres each, extendin},' hack 24 miles deep, on each side ol' the railway, from Winnipeg' to Jasper House, in so far as such lands shall l.e vested in the (lovermnent. the company receivin;^ the sections I'carin;.' uneven mnnhers. But should any of such sections consist in a materi- iii dey[i'ee of lainl not fiirly fit for settlement, the company shall not he ohli','ed to receive them as a part of such j,'rant, and the iletioiency therehy caused and iin,\- furtlier deficiency whirh may arise from the insuflicient (piantity of land ;tlon<^ the said jmrtion of railway, to complete the said 2.'»,()()0,0(M) acres, or iVoni the jirevalence of lakes and water stretches in the section ^'ranted (which lakes and water stretches shall not be computed in the aci'eaj^e of such sec- tions), shall he made up from other portions to l)e selected by the company in the tract known as t'.ie fertile helt, that is to say the land lyinj^ between parallells 4!) and 57 dej^rees of north latitude or elsewhere at the option of the company by the gi'ant therein ol siiniliar alternate sections extending hack 24 miles deep on each side of any branch line or lines of railway to be located by the company, and to be shown on a map or plan thereof deposited with the Minister of Railways; or of any common frontline or lines agreed upon lietween the Government and the company, the conditions hereinbefore stated lis to latids not fairly fit for settlement to be api)licable to such additional grants. And the company may with the consent of the Government, select in the North-West territories any ti'act or tracts of land not taken up as a means of supplying or partially supjdying such deficiency But such grants shall be made onlj' from lands remaining vested in the Govermnent. 12. The Government shall extinguish t le Indian title afiecting the lands herein appropriated, and to be hereinafter granted in aid of the railway. 18. The company shall have the right, subject to the approval of the Governor in Council to lay out and locate the line of the railway hereby con- tracted for, as they may see fit, perserving the following terminal points, namely : f)om Callander station to the point oi junction with the Lake Superior section ; and from Selkirk to the junction with the western section ;il Kamloops l)y way of the Yellow Head Pass. 14. The company shall have the right, from time to time, to lay out, construct, etjuip, .maintain and work branch lines of railway tx'oui any point or points ulong their main line of railway, to any point or points within the territory of the Dominion. Provided always tliat before commencing any branch they shall first deposit a map and plan of such branch in the Depart- ment of Railways. Ad<1 the Government hall grant to the company the lands re(piired for the road bed of such branches, and for the stations, station grouds, buildings, workshops, yards and other appurtenances I'equisite for the efficient constriiction and working of such branches in so far as such lands are vested in the Government. 15. From 20 years from the date hereof, no hue of railway shall be authorized by the Dominion Parliament to be constructed south of the Canada Pacific Railway, frt)m any point at or near the Canada Pacific Railway except such line as shall run south west, or to the westward of south west : nor to within fifteen miles ot latitude 49. And in the establishment of any new Province in the North-West territories, pro\ision shall be made for continuing such prohibition .ifter such establishment until the expiration of the said period. ;l| \'l l] iM l\ ;ll isi .-III tif (li lie posKesKioii of or K. fasteiiiii^rs and fiiil r«ike Snperidi- •'oinpaiiy. .slmll l.c ^k 24 miles derp. ill so far us sucJi iviii",' tlie sections 'iisist in a niateri- ill not he obli^'ed ereby caused and quantity of land ()<)0,(l()() acres, or II Ki'iinted (whieli af,'o of such sec- ' tlie company in d lyinf,' l)etween the option of the xtending back '24 to be located by posited with the Iff .i«^reed npon reiubefore stated such additional 'ernment, select )t taken up as a put such ijfrants lent. eciin«,' the lands railway. n'i"oval of the ly hereby con- •ininal points, ith the Lake estern section e, to lay out. oin any point nts within the mencing any the De]iart- iny the lands iiition j?rouds, the efficient ds are vested 'ay shall be the Canada II [Iway except |ve8f ; nor to any new ('ontinuinj^ of the said THE SYN'DlC.vrE (OXTHACT. :V.) 16. The Canadian Paeilic Itaihvay, and all slatiou> siiid station j^rvniiidN, work-shops, biiildiaj^s, yards and other property, rolliuir sto«'k and appinleii- .uices required and used for the construction and working tliert'if any interest thereon. And if anj' of such bonds no to be retained by the said laud grant bonds, the same number of dollars as the number of acres of land subsidy which shall then have lieen earned by them, less one fifth thereof, that is to say, if the boiuls are sold at par, but if they are sold at less than par, then a deduction shall bo made therefrom corresponding to the discount at 40 THE SYXDICATE CONTRACT. liiii I n'liicli Hiicli (K)n(Is are hoU. Aud such luiid r at the tiiue of the is'iie of .micli lx>nds. 19. n»e eouipauy hIiuII pay any expeiisen whic-'a shall Inr iiuMUTed hv thi Government in canyinj; out the proNisioiis of the two last preet-dinjj clauses ot this contract. 20 If the coini»anv »h )uld not i.wue such land yrnnt IxMids. then tli( Government Hhall retain from out of each fji'ant to Ix- made fn>m time to tiiue. evei-y fifth section of the binds hereby aiffi'eed to Ui <(ninted, such lands to Ik j*o retained as security for the pnriK>»»>s, and foi- tlie lenj^th of time, mentioned in section eifjhteen hereof. And such lands njay l)e soil in such manner and at such prices as shall he a^jreed upon l^etween the Government and tlu company, and in that case the pnce thereof aliail 1h> ymu} to, and held l>y tlu Government for the same i>erio(i, and for the same puri>o»e as the Lmd itself, the Govennnent ixiyin*? four per cent, per annum interest thereon. And other necurities satisfactory to the Government may l>e substituted for snch lands or money by a«freement with the Government. 'Jl 'V\\e, comi>aijy to l»e iucorponiteowei*s to eimbb iliiiu to cany out the fore^'oin^r contrjict, and this contract shall only \n liindiufj in the event of an Act of incoipoi-ati<>n l»einfj ffronted to the company ill the form hereby appended as Schedule A. 22. The Kailway Act of 1879, in so far as the pnnisions of the satnc art applicaide to the nndertakine uP. Grenfell. Signed in presence of F. Br.vun, aud Seal of the Department hereto affixed by Sir Charlks TuppER, in presence of (Sifjned) F. Braun. lal uvi eril )V-| Ml I Mill tf (1 rliej iubJ the n s the con iubt vesi sha ext the con eon ten \n tofi the )fl the fac -Mt SCI lUi an re I en CO as "I ' com eve(f to tiieti, ty for tlip siiid Iuik) relieved tlipreonti ' of Wich lx>ll(l8. Ih.* iiKMUTed l*v tli< •rpec-diiijr clanses ot THE SYNDICATE CONTIUOT, 41 CHEDULE A, REFERRED TO IN THE FOREGOINCJ CON> TRACT. t IkmkIs. then tlu fn>in time to tiiuc. It such lands to Ix >f time, mentioned such manner and rernment iui(i tlu o, and lield I>v tlit »s the Lind itself, ereon. And othei I for Hneh lands oi INCORPORATION. l>owei-s to t'nal>l( net shall only In 'd to the company s of the sa)ne art 1 in Po far as tlie.\ to the provision,- fhall apply to the •f prestnts at thf and Canals •Iif-n. ■nfell. 1. George Stephen, of Moutreal, iu Canada^ Esquire; Duurau Mc-liityns Montreal, aforesaid. Merchant ; John S. Kennedy, of Ncw'^'ork, in the jtate of New York, Banker ; tlie tirna of Morton, Uose and Company, of jondon, in England, Merchants; the firm of Kohn, Keinach and Company, f Paris, in France, Bankers; Richard B. Angus and .Ijunes J. Hill, h'tth of ^t. Paul, in the State of Minnesota, Escjuires ; with all such other pei-sons and •orporations as shall become shareholders in the company hereby incorporated, iliall be and they are hereby constituted a body corporate and politic, by the jame of the "Canadian Pacific Uailway Company." 2. The capital stock of the company shall be twenty-five million dollars, livided into shares of one hundred dollars each, which shares shall be trans- erable in such manner and upon such conditions as shall be provided by tliu ly-lawR of the company ; and such shares, or any part thereof, maj' be grant- Mi and issued as paid-up shares for value bona, fide received by the company, 'ither in money at par or at such price and upon such conditions as the board »f dii'ectors may fix ; or as part of the consideration of any contract made by the company. li. As soon as five million dollars of the stock of the company have been subscribed, and thirty per centum thereof paid up, and upon the deposit with the Minister of Finance of the Dominion of one million dollars in moD'-}-, or in securities approved by the Governor in Council, for the purpose and upon die conditions in the foregoing contract provided, the said contract shall bo- •ome and be transferred to the company, without the execution of any deed or ini-trument in that behalf; and the company shall, thereupon, become axul be vested with all the rights of the contractors named in the said contract, and shall be subject to, and liable for, all their duties and obligations, to the same extent and in the same manner as if the said contract had been executed by the said company instead of by the said contractors ; and thereupon the said contractors, as individuals, shall cease to have any right or interest in the said contract, and shall not be subject to any liability or responsibility under the terms thereof otherwise than as members of the corporation hereby created. A.nd upon the performance of the said conditions respecting the subscription of stock, the partial payment thereof, and the deposit of one million dollars to the satisfaction of the Governor in Council, the publication by the Secretary )f State in the Canada Gazette, of a notice that the transfer of the contract to the company has been effected and completed shall be conclusive proof of the fact. And the company shall cause to be paid up, on or before the first day of -May next, a further Instalment of twenty per centum upon the said first sub- scription of five million dollars, of which call thirty days notice by circular mailed to each shareholder shall be sufficient. And the company shall call in, luul cause to be paid up, on or before the Slst day of December, 1882, the i^mainder of the said first subscription of five million dollars. 4. All the franchises and powers necessary or useful to the company to enable them to carry out, perform, enforce, use and avail themselves of, every condition, stipulation, obligation, duty, right, remedy, privilege, and advantage agreed upon, contained or described in the said contract, are hereby conferred upon the company. And the enactment of the special provisions hereinafter 42 THK .SV>^I)ICATJ': CUN'TIJACT cont.iincil hIhiII iwrt !••• held tiiir or (lcr();,'iitc from tin- m-nc-rality of tin fviincliiwi* :in(l i><»\vor.-' »«» hereliv roiit'crrcd iijwm tlu-m. IHRKCTOUS. .") 'l"iic siiid (»«'(>ri,'f Htcpln-n, l>iiucaii Mchityix-. -folm S. KtMiiicily, iJichaiii Ji. .\n;,'iiH, .Iame^^ .1. Hill, Henrv Stiiftonl NortlicotP, i>( liondoit, afoiVHiiiil Ksrs shall not in all (xcecd fifteen in nninher ; and the majority of the directors, of whom th president shall he one, shall he British suhjects. And tht Hoard of Directori' so constitnted shall have all the powers herehy conferred npon the directors ot the company, and they shall hold olftce until the first annual meetin»j of tht Khftreholders of the company. (>. Each of the directors of the company, hereby appointed, or hereaftei appointed or elected, shall iiold at least two hundred and fifty shares of the stock of the company. But the nnmber of directors to be hereafter elected hy the shareholdei's shiill be such, not exceeding,' fifteen, as shall be lised by bydaw, and subject to the same conditions as the director a])i>ointed by, or under the authority of, the last precedin<; section the number thereof may be hereafter altered from time to time in like maimer. The votes for their elec- tion shall be bj' ballot. 7. A majority of the directors shall form a (luonim of the board, and until otherwise provideil by bydaw, directors may vote and act by proxy, such proxy to be held by ft director only : but no director shall hold more than two proxies, and no meetinp; of directors shall be competent to «:ranFact business unless at least three directors are present thereat in person, the remaining number of directors required to form a auy in the office, at the seat of Government of the Province or Territory to which such By-law shall apply, of the Clerk or Prothonotary of the hitfhest. or one of the hi>i[hest. Courts of civil jurisdiction of such Province or Territory. And if any cause of action shall arise against the Company within any Province or Territory, and any writ or process be issued against the Company thereon out of any Court in such Province or Territory, service of such process may be validly made upon the company at the place within siich Province or Territory so appointed and fixed : but if the company fail to appoint and fix such place, or to deposit as hereinbefore provided, the by-law made in that >ehalf, any THK SYN1»1(ATK rONTh.U'T. 4:1 i' ^nicralih- of tli. Ivciiii(«(ly. Hic-liiU'.i ''Oiidoii, iit'ori'said. limit, Cliarlt's Duyl l{<'iimcli. of F'ai-is. < of tlip coiupiiiiv.j WH sluill not in ull| org, of wlioni til' lioiinl of Directors I >n the (lir<'ctorK oi I ml nieetinj; of tli< | itoi]. or liereaftei fiffy shares of th<- hereafter electfil nil all he lised h\ appointed hy, fir | !• tliereof may Ik te8 for their eler- hoard, and until 'ro\y, such prox,\ than two proxies. nsinesR nnless m inin^' number f.t es. mber an ExecMi- iinaaction of the ties as shall he lemher of sncli at tlie city of appoint and jell the business |or shareholders And the com- di Province or |)t process may [ansinfj vvithiii time, cluin}j:e [ginj,' an\ such hy the Cojii- |v Territory to fhe hitjhest. .n or Territor} . any Provincf pany thereon [oeess may ht or Territory such place. Ii >ehalf, i\n\ 'Uch process maybe vulidlv Kerved upon the company, at any <>J the Muli(»ii> Itftht' said raihvaiy within sucJi Provinc*- ov Territory. ttHARKUOI.IiKRK. 10. Tlie Hrflt uunua) lueetin^ of the shareholders of llie c^nupauy, tor tin' ippointuieut of directors, shall he heid on the seconf such meetin^^s shad he ;;iven by tiie piiblication thereof in the t'<»//«e convened in such uianner as sliall l»e ju-ovided by the by-laws. And except as hereinafter pro- xided. notice of sudi meetinjis shall be j^iven in the same manner as notice of iimual general meetin;,'s, the pur[)ose f iViuliimt in the saiil imiviuof ; jiml alw> oliinr IjrHitehfs to Fm l liiiM' provi<1i"il l»y tlu* nniil oontntot till* said I'mnciii-n ti> Ix- ot flic <;au;re afoivsHiil ; and the Miid main liu(* t>l railway, ami the j^aid bi-atu-h line-' of railway, nhall he conmiciiced nixl com fdeted as jM'ovitlod hy tho ^aid contract : ami ti>'4«"tlu'r with stjch otliev hranol lines HH hIihII he lierealter cunstnu'ted hy the said compnny, and any e\ten»ioi of the said luuiu line of railway that shall hereafter be eonfltructed or arquirei i>y the comi>any. shall c«>nstitnte the line of railway hereinafter called TH^ Canadian l'At:iKH' Railway, 10. The company may construct, maintain and work u continuous tele r^raph line and telephone lines throtii^hont and alon;; the whole line of tin- Canadian Pacific Hail way, or any part thereof, and may alnt) conntruct o) luvjuire l»y purchase, lease or otherwise, any other line or lines of telefjrapli connectinf,' with the line so to he constructed alon'' the lino of the said i"ailway and may undertake the transmission of measajjes for the public by any such liiH' or lines of telegraph or telephone, and collect tolls for so doin^es for hire, they shall he subject to the provisions of the fourteenth, tifteentli and sixteenth Kections of chapter sixty-seven of the Consolidated Htatutes of Canada. And they may use any improvement that nuiy hereafter he invented (subject to tin ri«(hts of patentees) for telegraphing' and telephoning;, and any other means ot commtuiication that may he deemed expedient by the company at any time hereafter. POWKKH. 17. "The Consolidated Railway Act, 187'.'. '' in so far as the provisions ol the same are applicable to the undertakinj; authorized by this charter, and in K> far as they are not inconsistent with or contrary to the provisions hereof, and save and except as hereinafter provided, is hereby incorporated herewith. 18. As respects the said railway, the seventh section ol ^'The Consolidated Uailway Act, 1879," relating,' to Powers, and the eighth section thereof relating to Vlans and Surveys, shall be subject to the following; provisions : — a. The company shall have the rifjht to take, use and hold the beach and .and below hi^^h water mark, in any stream, lake. navi<,'able water, fjulf or sea. iu so far as the same shall be vested in the crown and shall not be required by the crown ; to such extent as shall be required by the compay for its railwa\ and other works, and a> shall be exhibited by a map or plan thereof deposited in th*' office of the Minister of Kailways. lUit the provisions of this sab-section shall not apply to any beach or land lyin;; East of Lake Nipissinj; except with tlie ai)provaI of the Governor iu Council. li. It shall be sufficient that the map or plan and book of reference for any I'ortion of the line of the railway, not being within any district or county for which there is a Clerk of the Peace, be deposited in the office of the Minister of llailways of Canada, and any omission, mis-statement or erroneous dcscinp- tion of any lands therein mav be corrected by the company, with the conseul of the Minister and certitied hv him: and the comnanv mav then make th< railway in accordance with such certified correction. c. The eleventh sub-section of the ~aid eighth section of the Railway Act r^hall not apply to any portio'n of the railway passing over ungranted lands of the crown, or lands not within any surveyed township in any province ; and in fiuch places, deviations not txcee 8 : — tlie beach and '1-, j,'ulf or sea, »e reijuired by or its railway i(()f depositell 'lis sab-section i« except with ference for any or county for the Minister QeouK descrip- the conseui len make tin Hailway Act ftuteci lands of ince ; and in n on tlie map without any nay be founll THE SYNDK ATi: CONTnAC T. 4') « xpedienl muy he authori/.ed b\ order of the (iovernor in Council, and the company may then make their railway in aci^irdanre witii r^ucli authori/ed deviation. ,'' such •,'reater extent taken, in any cast', beinjif allowed by the Governmeut. and shown on the maps or plans deposit« 1 with the Minister of Kailways. 2(b The limit to the reduction of tolls by tli> Parliament of Canada pro- vided for by the eleventh sub-section of the 17th section of the CoinioHihitfd Hailway Act, 1870, respecting' tolls, is hereby extended, so that such redu; hereby limited to the same extent with relation to the profit of the company, and to its net reveime, as that to which the power of Parliament to reduce tolls is limited by said sub-section eleven as lierebv amended. %■' • 21. The first and second .sub-sections of section 22, of the Consofiduttd Railwaij Act, 1879, shall not apply to the Ca;iadian Pacific Railway Company; and it is hereby enacted that the transfer of shares in the undertakinj^ shall be made only upon the books of i,lie company in i erson or by attorney, and shall not be valid unless .so made ; and t]»e form and mode of transfer shall be such as shall be from time to time regulate^! by the by-laws of the company. .\nd the funds of the company shall not be used in any advance npon the security «>f any of the shares or stock of the company. 22. The third and fourth sub-sections of said section 22 of the Consolidat- ed Railway Act of 1879, shall be subject to the followinff provisions, namely, that if before the completion of the railway and works under the said contract, any transfer should purport to be made of any stock or share in the company, or any transmission of any shiire should be effected under the provisions of said r n1 i^ i w, THK s^K^>I('AT^: co.ntkact. HMl*-M>c(i<>ii riMii' ; t«> 11 i>ei>i«>ii nut iilrtMulv ii »litii'fliol(l«-r in tli** ('oiii{Mtii\ : itiid it in tilt' oiiininii ot the lU>ui° pcrHon mot \wiui; uhviwly a sliarolu>l(lt>r) to wlioin hucIi tranotVr or transmiHHion hIiuII l>(> made «»' t'tVci-ttil nlioiild Itt- iM-o-ptt'd a» a sliarflioldrr : llu- lUrcrtorH niu,\ Ity rHHoliitioii veto hiicIi tiaiD^ft-r nr ti'aiiH!iiii>sii>ii ; uml tlit-t'ciiftci', aud iilitil altor tlic coiupli'tiou ot the Huid niilvAay uud workH under tlie Htiid contract. ^lu■ll iMTHonH sluill not bo, or In- rcco^ni/.«-d n-* a shandioldcr in the company : and lite oi-i<{innl sharuliolder, or hiH estate, aH the case may he, hIuiU remain huhjtict to all the ohli^ationH of a .shareliolder in tiie coinimny, witli all tht I it,'I»ts conferred npon a shareholder tmder tliis Act. ihjt any firm holding' li.iid-np sluireh in the company niay iranHler the whoh' or any of such Rliare^ to any partner in ^ncli firm havin;; already an interest us such partner in sudi shareH, without heinj,' 8ul)ject to >^nch veto. .Vnd in the event of f-uch veto l'cinu nineteen, relatin",' to I'ukhiuknt anp iMicKCTOus. THKIR Ki.Ki'TioN ANU Di'TiKs; sul> Section two of section twenty four, relatiuf,' to Bv-i,a\vs, Notu'ks, Ac, sub-sections, five aud six of section fweuty-eeven, relatinjj to GK>fKKAi, provisions, and section ninety-seven, re- latint,' to Railway 1'und, of tiie CovKnlidnted Uailwaij Art, 1879, slmll not, tior shall any of them apply to the Canadian Pacific Railway or to tlu' cuinpany hereby incorporated. •24. The said company shall utturd all reasonable facilities to the Ontario I'aciftc Junction Railway Company when their railway shall be completed to ii point of junction with the Canada I'acific Railway ; and to the Canada Central Railway Company, for the receiving, forwarding and delivering of traffic upon and from the railways of the said companies, respectively ; aiul for the return of can'iages, tnicks and other vehicles; and no one of the said companies shall f?ive or continue anj- preference or advantarfciculav description of traffic, to any prejudice or disadvantaf^e in any respect wliatsoever: and any one of said companies which shall have auA terminus or station near any termijuis or station of either of the othei-s, shall itfford all reasonable facilities for receivin,!» aud forvvardinj? all the traffic arri\ • iiii: by eitlier of the others, without any xnu'easonable delay, aud without an.\ preference or advantaf^e, or prejudice or disailvantaject to the same char<^es for siiniliar services; without gi*autin{j or allowiuf^^ any preference or advantage to the traffic coming from or goin^ upon one of such railways over such traffic coming from or ^[oing upon the other of them, reserving, liowever, to the said Canadian Pacific railway Company the right of making special rates for purchasers of land, or for emigrants or intending emigrants, which special rates shall not govern or affect the rates of passenger traffic as between the said company and the said two above named companies or either of them. \nd any agreement nuvde between any two of the said THK SYNDICATE CONTKAOT. 47 tlint tli(« ptTsoii • HUsiiiiHsion Hiiuli !«• (lirectorH nitt\ • I'l'tt'/, uu,| until lit' m'ul routiact, » till- coinpunv : l>t', hIuiU remain ».v, with all tilt ».V Hnu Jiol(liiij,r y «»f such share). jMirtner in aiu], ■Mt 1)1" mch veto liwion so vetoed y after the com 'ifli completion. H, nor iiave any I'UKHinKNT ANI. lection twenty six of Bection Kt'ty-seven, re- ^79. sliall not. ''".v or to tin to the Ontario completed to » tilt' Canada lU'liverinjf ol ■ctively; and »e of the said or in favor oJ »ny reHpecl •tlier thereof. iita{,'e in any 11 have any otIiei-K, shiiil traffic arri\ • vvithont an\ no olwtruc- 'iiu' of com - tinjert. Iiy ■fil railwa\ 1*11 receive oint on tlit J,' over the Se rate and r allovvinj,' )on one of !• of them. V the ri^'ht intending passengei companies f the said IH (ompanicH contrary to the fort';; an exteiiHion of the railway hen'hy auMiori/ed to )>e cuufltructed ; may pun-iniKi- or acquire by lease or otherwise, and hold and operate, the Canada Central Railway, or may ai>ial<,'amate therewith, and may purchaHc or acquire liy lease or otlierwine and hold and operate a line or lin»'8 of railway from the city of Ottawa to any point at navi^ahle water on the .'Vtlanti'' neahoard or to any intermediate point, or may acquire runnin<,' powers over any railway now constructed between Ottawa aiid any >uch poiiu i«r intermediate point. .\nd the company may purchase or rtc(piire any autdi railway subject to Mich existing; niorti,Mj,'es. char^eH or liens thereon as shall be ajjreed upon ; anil shall possess with regard to any lines of railway so jnir- ciiased, or acipiired, and becomiu); the property of the company, the same powers as to the issue of bonds thereon, or on any of them, to an aTiiouiit not exceeding' twenty thousand dollars per mile ; and as to the security for such lionds, as are conferred upon the company by the twenty-seventh section hereof, in respect of bonds to be issued upon the Canadian Pacific Uailway. Ktit such i. sue of bonds shall not affect the rij^ht of any hohler of mortj^aj^es or other charges already existin<,' upon any line of railway so purchased or acipiired ; and the amount of bonds hereby authoriy:(Ml to be i>sueil upon such line of railway shall be dimiuished by the amount of such existiaj( mortgages or charges thereon. 20. Tlie company shall have power and authority to erect and maintain (h)ck3, dockyards, wharves, slips and piers at any point on or in connection with the said Canadian Pacific Railway, and at all the termini thereof on navigable water, for the conveoieoce and accommodation of vessels and elevators : and also to acquire, and work elevators, and to acquire, own, hold, charter, work, and run, steam and other vessels for cargo and passengers upon any navigable water, which the Canadian Pacific Railway may reach or connect with. «V-L.\WH. « 27. The by-laws of the company ixiay provide for the rennmeration of the president and dii'ectors of the company, and of any executive committee of such directors ; and for the transfer of stock and shares ; the registration and inscription of stock, shares, and bonds, and the transfer of registered bonds : nnd the payment of dividends and interest ; at any place or places within or beyond tlie limits of Canada ; and for all other matters required by the said contract or by this Act to be regulated by by-laws. But the by laws of the company made as pro\ ided by law shall in no case have any force or effect after the next general meeting of shareholders, which shall be held after the passage of such by-laws, unless they are approved hy such meeting. HONDS. 28. The company, imder the authority of a special general meeting of the .-.hareholders called for the purpose, mav issue mortgage bonds to the extent of ten thousand dollars per mile of the Canadian Pacific Railway for the pur- pose of the tmdertaking authorized by the present Act ; which issue shall ctr stitute a first mortgage and privilege upon the said railway, constructed or ac(|uired, and to be thereafter conatructed, or acquired, and upon its property, real and personal, acquired and to be thereafter acquired including rolling stock, and plant ; and ujxm its tolb and revenues (after deducting firom sucli tolls and revenues of working expenses) ; and upon the franchises of the company ; the whole as shall be declared and described as so mortgaged in an\ « 48 THE SYNIUCATE CONTRACT. ilfunl oi" inortj^iii,'*' '•■'^ Ijereiniit'ter provided. Provided always, liowever, timt i' ihi: coinpiiriy sball have issued, or shall intend to issue land j»raut bonds undtr tlie provisions of the thirteenth section hereof, the lands jjranted and to be t^rantful by the (lovernnient to the company ina\' bo excluded from the oper .•ition of Kudi rnurtj^age and privilege : and prondetl also that such mortga<_'e and privile.;,'*' sliall not attach upon any property which the company are here- by, or hy tin: said contriw^t, authorized to aced by the holders of such bonds or l»y any trustee or tnistees for tliem in default of such payment ; and the en- fnn'ement of such remedies ; and may provide for such forfeitures and penal ties, in default of such payment ; as niuy be a})proved by such meeting ; and may uho contjiin, with the approval aforesaid, authority to the trustee or trus- t ovisions oi nershij) ,,,• 'lace undo' ■I', the said er the jmi 'i-el)y niodi- iiiiif,' bonds of bonds li,' twenty preceding' •outract, ii sue of which is coiiteinji- itted by sub-sectiou d of clause ".> of the said contract, and by the tliirtytirst H>.'ction hereof. ;K). The company may al>o issue mortgage bonds to the extent of twenty - five million dollars upon the lands ^franted ijj aid of the said railway iin« of the bonds secured tliereby. remedies, autiiority, power and privileges and may provide for forfeitures and penaltiep, similar to those whicli may be inserted and provided for under the provisions of this Act in any deed securing tiie issue of bonds on the railway, together with tiuch other provisions and con- ditions not iuconsiritent with law or with this Act as slrall be so authorized. And such bonds may be styled Land Grant Bonds, and they and tlie proceeds thereof shall be dealt with in the manner provided hi the said contract, ;{1. The company may in the place and stead of the said land grant l)onds, L-isue bonds under the twenty-eighth section hereof, to such amount as they shall agree with the Government to issue, with the interest guaranteed l)v the Government as provided for in the said contract : such lionds to constitute a mortgage upon the property of the company and its franchises ac(iuired and to be thereafter acquired — including the main hue of the Canadian Pacific Hail- waj', and the branches thereof hereinbefore described, with the plant and rolling stock thereof acquired and to be thereafter acquired, but exclusive of such other brandies thereof and of such pers;onal property as shall be excluded i)y the deed of mortgage to be executed as security for such issue. And the provisions of the said twenty -eighth sectiou shall apply to such issue of bonds, and to the security which may be given for the payment thereof, and they and the proceeds thereof shall b*- dealt with as hereby and by the .saiil contract provided. {\2. It sliiili not be necessary to affix the seal of the company to any mortgage bond issued under the authority of this Act : and every such bond i.«sued without such seal -ihall have the same force and effect ; and be held, treated and dealt with l)y .ill courts oi law and of equity : as if it were sealed with the seal of the company. And if it is provided by the mortgage deed executed to secure the issue of any bonds, that any of the signatures to such bonds or to the coupons thereto appended ; uiay be engi'aved. stamped or lithogr plied signatures shall be vali-l and binding on the company. ;•{;?. The phrase "working expense.-' shall mean and mclude all expenses of maintenance of the railway, and of the stations, buildings, works and con- veniencies belonging thereto, and af the rolling and other stock and moveable plant used in the woikitig thereof, and also all such tolls, rents or annual sums as may be paid in respect of the hire of engines, carriages or waggons let to the company ; also, all rent, charges, or interest on the purchase money of lands belonging to the company, pm-chased but not paid for, or not fully paid for ; and also all expenses of and incidental to. working the railway and the traffic thereon, incltidmg stores and con.sum»ble articles ; also rates, taxes. 50 THE SYNDICATE CONTRACT. insurance iiijy-laws of the company. 'do. It shall not be necessaiy, in order to presei've the priority, lien, cliarge, mortgage or j)rivilege. ])uri)orting to api)ertain to or i>e created by any bond issued or mortgage deed executed under the ja-ovisions of tliis Aci, that such ))ond or deed should be enregistered in any manner, or in any place whatever, iiul every such mortgage deed shall be deposited in the office of the secretary of stav^ : of which deposit notice shall be given in the Canada Gazette. .\nd in like manner any agreement entered into by the company, under section thirty-foju- of this Act, shall also be deposited in the said office. And a copy of any such mortgage deed, or agreement, certified to be a true copy by the Secretary of State or his deputj', shall be received as prima facie evidence of the original in all courts of justice, without proof of the signatures or seal upon such original. HO. Tf, at any time, any agreement be made by the company with an_\' persons intending to become bo^d-holders of the company : or be contained in any mortgage deed executed under the authority of this Act ; restricting the issue of bonds by the company, under the powers conferred by this Act ; or defining or limiting the mode of exercising such powei-s ; the company, after the deposit thereof with the Seci'etaiy of State as hereinbefore provided, shall not act upon sxich powers otherwise than as defined, restricted and limited by such agi-oement. And no bond thereafter issued l>v the company, and no order, resolution or proceeding thereafter made, passe« or perference according to such stock shall not ijiteil'ere with the lien, mortgat,'e and pri\'ilege attaching to bonds issueil under the authority of this Act. .\nd the holders of such preferred stock siiall have such power of voting at meetings of share! lolders, as shall be confen-ed upon them by the by-laws of the company. THE SYNDICATE CONTliACT. 51 s ami ujif^cK I traffic, and ;y, legal ami ? railway <>r so issued in or francs. oi- nominations lie whole or li conditions '. deteniiine. lit after the .' the holdei- I holder in- Jtered or i li- re, in sucli iucii place ; e company. ien, chartje, ; any l)ond , that such e whatever, e secretary- zette. And der section nd a copy i>P.V t)y the evidence of I' seal u})(>n with any intained in lictiufj; the Is Act : or )any. after ided, shall iniited hy y. and no (company. i, shall 1)»' IprefeiTed Mlai's per k)pertain- sliall he liei-son or I luettinjjf issue at le <,Miarn- lhe lien, of this voting Ihy-lawK KXECUTIOK OF AOEKKMK.N'T. 88. Every contract, a<,'reement, euj,'a< AND ASSOCIATES l-(Ui'lllEC()NSTUUCTlON OFTHE CANADA PACIFIC RAIL- WAY, JANUARY 1-iTH IHHI. m m * 'i\> ih, ii,„„>i',ihi,- sin ijHAiiLi.a rrrr'f'Hi, k.c.mjt., m.p., Minh- hi i>i li'nilirii nj l.'onmla, ( Htawu. SiH, -Tlu' MiulcTsi^^Miftl, vvliu, tor tlu! purport" licveiiudlfr Ht.'t out, cull thoui- sclx'H tilt' Coiiipiiiiv, huvt' tlu^ honor to sulnnit tlu f'()ll()winuny on the completion of the railway, accordinjj^ to the terms liereof. with any intenst accrued thereon. :■). The company will lay out, construct and e«piip the said eastern section, ami the said central section, of a uniform ^'au};e of 4 feet 8^ inches, and in order to establish an approximate standard whereby the quality and the char- acter of the lailway and of the materials used in tlie construction thereof, and of the eiiuipment thereof may be rej,'ulated, the l.^iion Pacific Railway of the LHiited States, as the same was in 1H7B, is hereby selected and fixed as such standard. And if the Government and the company should be unable to agree as to whether or not any work dojie or materials furnished are in fair con- formity with such standard, ox as to any other <|uestion of fact, excluding :r ISOCIATES RAIL- , Ottawa. t, CiiU thoiu- positioiifl lor ;liHt the poi- ise that part the westc-rii i;e Nipissinj,'. 11 of the Hiiitl ij; irom Lake ■r portion is !ii(l railway, KamloopK, lilway now , is herein- ian Pacitic in the Act s offer are ula is here- eoiupauy, cnrities, as lall pay to r cent, per st received nee of the return the int^ to the rn section, I en, antl in the char- [ereof, and [ly of tlio as such |e to agi'ee fair con- loxchidinf^ THK I ANAl'lAN TENDEll. questions oflaw, the sulij»*cl of i)i;;a;;reeiueut shall he from tiin<' to liiin' referr- ed to the determination of three referees, one of whom shall he cho>^en \>y the Government, one hy the eompjtuy» '"xl one by the two refei"ees so chosen, ant" Canada. And the decision of such referees, or of the majority of them, shall lie final. 4. The work of cuustruction shall lif- commenced at the eastern extieniity of the eastern section not later than the fiist day of July next, and the work upon the central section shall he commenced by the company at siu'li point towards th<' eastern end thereof on the portion of the line now under constmc- tion as shall he foimd con^enient and as shall he approved hy the Govennnent. at a date not later than the 1st May next. And the woi'k upon the eastern and central sections, shall he vit,'orously and continuouslj- carried on at such rate of annual pro^'ress on eac!) section as shall enahle the company to (com- plete and e(iuip the same end each of them, in running order, on or hefore the first day of May, 1891, by which date the company shall complete and equip the said sections in conformity with this proposal, unless prevented hy the act of God, the Queen's enemies, intenstioe disturbances, epidemics, floods, or other causes beyond ihe control of the company. And hi case of the interiiiji- tion or obstruction of the work of ct)Ustruction from any of the said causes, the time fixed for the completion of tlie railway shall be extended for a corres- pondin<,' period. 5. The company sJiall pay to the Government the cost, accordinpf to the contract of the portion tif railway, lt)0 miles in lenj^th, extending fi'om the City of Winnipeg westward up to the time at which the work was taken out of the hands of the contractor and the expenses since incurred by the Govern- ment in the work of constmction, but shad have the rij^ht to assume the said work at any time and complete the same, paying the cost of constnictiou as aforesaid so far as the same shall then have been incurred by the Government. 6. Unless prevented by the act of God, the Queen's enemies, intestine disturbances, epidemics, floods or other causes beyond the control of the Government, the Government sliall cause to be completed the >aid F.ake Suj)erior section, by the dates fixed by the existing contracts for the construc- tion thereof; and shall also cause to be completed the portion of the said western section now under contract, namely, from Kamloops to Yale, within the period fixed by the contracts therefor, namel}-, by the thirtieth day of •fune. 188.') ; and shall also cause to be completed, on or hefore the first day of May, 1891, the remaining portion of the said western section, lying between Yale and Port Moody, which shall be constructed of ecjually good quality in everv respect with the standard hereby created for the portion hereby temhred for. And the said Lake Superior section, and the portions of the said western section now under contract, shall be completed a,« nearly as j)ractieable accord- ing to the specifications and conditions of the contracts thex'efor except in so far as the same have been modified by the Government prior to the ilRt dav of October, 1880. 7. The railway eonstnieteil under the terms hereof shall he the property of the company : and pending the completion of the eastern md central sec- tions, the Govei'umenl shall transfer to the company the possession and light to work and run the several portions of the Canadian Pacific Railwuj- already constructed or as the same snail he completed. And upon the couipletion of the eastern and central sections, the Govcrnint'ut shall convey to the company. 54 THE CANADIAN TENDER. with a sin'tiiMo niluibcr of station bniklinf,'H and with water sen'ice (but with- out e(jiiifiiiient), those portions of the Canadian Pacific Railway constructed ox- lo bo coHHtructed by the Government, that portion whiclj hIuiU tlien bo com- pleted ; and upon coniplotion of the remainder of the portion of railway to be constructed by the Government, that portion shall also be conveyed to the company, and the Canadian PaHific Kailway nhall become and be thereafter the absolute property of the compan}'. Ami the company shall thereafter and forever efficiently maintain, work and run the Canadian Pocific Railway. 8. Upon the reception from the Government of the possession of each of the respective portions of the Canadian Pacific Railway, the company shall <(]iiip the same in conformity with the stantbird herein established, and shall thereafter maintain and efficiently operate the same. 9. In consideration of the premises, the Government shall ffi*ant to the company a subsidy in money of ft"22,()0(>,00U, and iu land of 2'2,()0(),0()() acres, for which subsidies the construction of the Canadian Pacific Railway shall bo (■ouji»leted and the same shall 1/e equipped, maintained and operated, the said Kubsidies respectively to be paid and {^I'anted as the work of construction shall proceed, in manner and upon the conditions followinv divided and appropriated aw follows, namely :— CENTRAL SECTION, AshUDit'd !it l,i}oO lullos — Ist.-iKJO miles, at ft7,;53;3.33 per mile 8t5,(KX),000 2,1,1.— 450 milcH, at U12,00() per mile 5,400,000 »12,000,0(JO EASTERN SECTION. Assumed at G50 miles, subsidy equal to $15,384.(51 per mile 10,0,250,()0(J 22,m)0,000 than 20 inning of all l)e re- nt to the 1^ to the the coni- Is of the amount rial cal- ing four Inear the feel rails ranee of THE CANADIAN TENDER. f^^ ')'j the requii'ements for such construction, the Government, on the recjusition of the company, bhall, upon such terms and conditions as shall bt^ dctcrminod by llie Government, advance thereon three-fourths of the value thereof at the place of delivery. And a proportion of the amount so advanced shall be de- ducted according to such terms and conditions from the subsidy to l)e there- after paid, upon the settlement for eacli section of 20 miles of railway, whicli proportion shall correspond with the proportion of such rails and fastenin<,'s which have been used in the construction of such sectiouB. d. Until the first day of January, 1882, the company shall have the option, instead of issuing land grant bonds as hereinafter provided, of substitut- ing the payment by the Government of the interest (or part of the interest) on bonds of the company, mortgaging the railway and the lands to be grante(i by Goveruiuent, running over sach term of j'ears as nuiy be ajjproved by the Governor in Council in lieu of the cash subsidy to be granted to the company or any part thereof under the terms hereof; such payments of interest to be equivalent according to actuarial calculation to the coiTesponding casli pay- ment, the Govermuent allowing four per cent, interest on the moneys deposit- ed with them ; and the coupons representing the interest on such bonds shall be guaranteed by the Government to the extent of such ecpiivalent. And the proceeds of the sale of such bends, to the extent of not more than $25, 000,000, shall be deposited with the Goveriunent, and the balance of such pi-oceeds shall be placed elsewhei'e bj' the company, to the satisfaction, and under tiio exclusive control of the Government; failing which last condition the bonds in excess of those sold shall remain in the hands of the Government. And from time to time as the work proceeds, the Government shall pay over to the com- pany — und, after the expenditure of the amount, out of the amount deposited with the Government — sums of money bearing the same proportion of the mileage cash subsidy hereby agreed upon, which the net proceeds of such sale (if the whole of such bonds are sold upon the issue thereof or, if such bonds bo not all then sold, the net proceeds of the issue, calculated at the rate at which the sale of part of them shall have been made, shall bear the sum of $2;"3,00O,- 000. But if only a portion of the bond issue be sold, the amount earned by the company, according to tho proportion aforesaid, shall be paid to the company, partly out of the bonds in the hands of the Government, and partly out of the cash deposited with the Government, in similar proportions to the amount of such bonds sold and remaining unsold I'espectively : and the company shall receive the bonds so paid as cash at the rate as which the said partial sale thereof shall have been made. And the Government will receive and hold such sum of money tewarda the creation of a sinking fund for the redemption of such bonds and upon such terms and conditions as shall be agreed upon be- tween the Government and the company. e. If the company avail them«!elves of the option granted by clau'e d, the sum of $2,000 per mib for the first eight hundred miles of tlie central section shall de deducted pro rata from the amount payable to the company in re- spect of the said eight hundred miles, and shall be appropriated to increase tlie mileage cash subsidy appropriated to the remainder of the said central section. 10. In further consideration of the premises the Government shall also grant to the companj' the lands required for the road bed of the railway, and for its stations, station grounds, workshops, dock ground and water frontage at the termini on navigable waters, buildings, yards, and other appurtenances re- quired for the convenient and elTectual construction and working of the rail- way, in so far as such land sha^l be vested in the Government. And will con- vey to the company, at cost price, with interest, all rails and fastenings bought ')() THK CAN A MI AN TKNDKK. ill (»r Hi'iipt' fJic \ciir 187'.*, uiul ytlu'i* mutcriiils for (roiiHtriictioii in (lu* pany shall have the right, from time to time, to lay out, con- struct, equip, maintain and work ])ranch lines of railway, from any point or points along their main line of railway, to any point or points within the terii- tory of the Dominion. Provided always, the before commencing tmy branch, they shall first deposit a map of such branch in the De])aitment of Railways. And the Government shall grant to the company the lands required for the road bed of such branches, and for the stations, station grounds, buildings, workshops, yards and other appurtenances requisite for the efficient construction and working of such branches in so far as such lands are vested in the Govern- ment. 15. The company shall be authorized by their Act of incorporation lo issue IxJnds, secured upon the laud granted and to he granted to the company, cou- taijiing provisions for the use of such bonds in the acquisition of such lands, and such other conditions as the company shall see fit ; such issue to be for 1^2'),- (XX),000. And should the companj' make such issue of land grant bonds, then they shall deposit them in the hands of the Govenanent ; and the Government shall retain and hold one-fifth of such bonds as security for the due peribrmance of the present contract in respect of the maintenance and continuous working Jn),s.■^es.'^l♦•M 'tiini^K iiiiiJ sniil Luke (•oini»iiu,v. ij^ brtck 24 [oune, in so \ R'CC'iviiin i*»ns consisi ly hIiuII not cy tlu-reliy iiiHufficient uiil 22,000, the sections the acreaf,'<' jted by tlit hinil lyiii",' t th(! option * oxtentlinj; lilway to h»- )!' (lopoHited ines agreed leveinliei'orc ph addition- inent, select ken up as u e only fron. andn lievein »val of tlie contracted inely : fi'om ■ction ; and })y way of i\ out, COll- hy point oi' fell the tervi- my Itranch. Railways. •ed foi- the buildings. lonstruction Ihe Govern - liun to issuf ^pany, con- lands, an.- l>onds, then government lert'onnance Ins working THK CANADIAN TENDtH. 57 «.f,tlie railway hy thi' ron)i)any, as herein mentioned, for ten yvuvs niwr the romplt'tion thert'of, and tiu! remaiiting 82(),(J(KJ,0()0 of such bonds shall br doall with as hen'iuatti'r pn)vid<'d. Ano b)ng as no default shall occur in the nuiintenance and working of tlic said ("anadian I'acitic i{ailwiiy. tlic (Government .shall not present or demand j)av- incnl of tin- coupons t»f such boiuls. nor recpurc payment of any interest there- on. Anuri)oses a.>% the Ixuids s(» paid off, paying interest thereon ill four per cent per anmmi so long as default is not nuide by the companv in the performance of the conditions hereof. And at the end of the said period of fen years from the comi)letion of the said railway, if no default shall tlien have occurred in such maint(!nauce and working thereof, tiie saiil bomls, or if anv of I hem shall then have been paid off, the remainder of said bonds aTid the monev received foi- tliose paid off, with accrued interest, shall be delivered l»ack by the Covernment to the company with all the coupons atttiched to such bonds. lUit if such default should occur, the (Tovernment nniy thereafter recjuire pay- ment of interest on tlie bonds so held, and shall not be oblig(!d iti continue to pay interest on the nuniey representing bonds paid off; and while the Govern- .iient shall nstain the right to hold the sanl portion of the said land grant l)onds, other securities satisfactory to the Government may bo sulistituted for them by the company by agreement with the Government. Hi. If the company shall find it necessary or expedient to sell the retuain- ing ft2t),0(K),0(X) of 'and grant l)onds, or a large portion thereof than in the pro- jutition of one dollhr tor each acre of land then earned by the c(tm])any, they sliall be allowi'd to do so Imt the proceeds tliereof. over and above the amount III which the company shall b(; entitled as herein provided, shall i)e iu'h nninner as shall be provided tor at the time of the issue of such I)ond«. 17. The comiiany shall j»ay any expenses which shall be incurred by the ' iovernment in carrying out tlie provision of the two last jireceding clauses of tins contract. IH. If the company should not issue such land grant bonds, then the ilovernni'int shall retain fiom out of each grant to be maile from time to time, every tilth section of the lands hereby agi'eiMl to be granted, such lands to be so retained as security for the ])urposes, ami for the lengtJi of tune, menti()ne0(),0(X) : and in all other respects the ])rovisions of this proposal shall apply to the said l)ranch lino so far as api)licahle thereto. 21. In the event of the Government desiring to postpone or withdraw from constniction the western section of the said railway, extending from Kamloops to Port Moody, they shall he at liberty to do so, and in that event the Government shall not bo at liberty to do so, and in that event the Govern- ment shall not be bound to complete and hand over to the comi)any the said western section under the (Uh and 7th clause hereof; but except so far as it relates and is applicable to the construction of the said western section by the Government, this proposal shall stand f,'ood and be bindiii}^ upon the company. 22. In the event of the Governmeni desiriufj; to postpone or withdraw from constniction by the company hei'eunder the westei'ly portion of the central section of said railway, benig the westerly 450 miles thereof, as men- tioned in the Uth clause of this proposal, the company offers to ri uu the sub- eidy in money and land by the amount apportioned to the said westerly 4.50 miles of the central section under the said Oth clause hereof — that is to say. ^.'), 400,000 and 0,750,000 acres of land ; and in the event of such postponement or withdrawal by the Government of the said westerely 450 miles of the central section, then this proposal shall stand in all other respects, and in so far as the same shall not exclusively relate to the constructing, equipment, or op- erating of said 450 miles. 28. At any time after the completion of the Canadian Pacitic Railway, or of the parts thereof that are to be completed hereunder, the Government shall lie entitled to acquire the same and all the propei'ty and assets of the company, payiufj therefor such compensation as may be aj^reed upon ; or in case of dis- at^i'eement, such compensation shall be settled by the decision of the majorit\' of three arbitrators, one to be chosen by the Government, one by the coiBpany, and the third by the two so appointed. 24. The company to be incorporated, with sufficient ])0wers to enable them to carry out the forcf^oing offer, and this proposal, shall only be binding in the event of. an Act of incorporation being granted to the company, substan- tially as set out in Schedule A, hereto. 25. The Railway Act of 1869, in so far as the provisions of the same are applicable to the undertaking referred to in this proposal, and in so far as they are not inconsistent herewith or inconsistent with or contrai'y to the provisions of the Act of incorpoi'ation to be granted to the company, shall apply to the Canadian Pacific Railway. Signed, W. P. Rowland, Toronto. A. R. McMastfr, Toronto. H. H. Cook, Toronto. iinipiit (leHi'r- ction of tfie money uiul railway un- 3 and n/i.W.- ti4, and in ho iniimient, or said OHRtern to conHtmct Canadian "K, to Hault at and for a liis jJropoKal ir withdraw ndinf,' from that event ;he Govern - ly the Haid Ko far as it ion hy the e company. I' witlidraw ion of the >f, as men- c ^ the 8uh- Bsterly 450 it is to say, tponement les of tlie id in so far lent, or op- Railway, or ment shail i company, cas9 of dis- e majority company-, to enable he bindinfj 7, substan- same are Far as they provisions )ly to the •rViU CANADIAN TKSDKH. m <8i^'ii«'d( John liHVs, Holioitor. Hi{fiH','sU»n. William I>. Lovirr, Yannotuh. jnm V. Killwn. Alkx. (jihson. I'Vedericton. J{ab.vkt ii McKav, JJenfroH'. SCHKDVLK A, liKFKliRFJ) TO IN THE KOHEOolNfJ i'lio. PosAj. OK contj:act. )N^^'|'"h1 a. »{. McManter. H. H. Cook. James Mc- • olm I motoi, 1. S. Stevenson, A. T. Wood, A. W. I{oks. (Jtor<'e A. (\,>c P„l,... Rowland. .Larkin Allan (iihnour. John Carruthers, Will hun i Wi ^.,1 Alexander ( .bsou. al of the Don.inion of Canada, wit h all such o he tirZ uul c.,r,M>ra,onH as shall hee,mu. shareholders in the companv heeln^ nc ora ed. shall W and they jm- hen,by <-onstittUed a body cor,K,n.te an p t .. by the name ol the -Canadia.. Pacilip h'ailway Compan.;'." ti. The capital stoek of the company shall be twentv-tivp million dollars dmde,l nuo shares ol one hund,^,! dollars each, which shares shal be , n h wf„ ;!f '' '""""^'' ""'' 'r" '^"^'* ,,„,,iti,,„, ,^^ ^,,^^1, , p,ovid.d h he unS.'' """'-T"- \ """^ r^' ''"^^"'^' ''' «"> I''"t thereof; mav be ^mn .d ud issued as paul-up shares for value bona fld'' received bv the company .•-thor n. n.oney at p.„. ..,• .„ sneh pnee and upon such conditions as thlTQ (i ()() THK ( ANAltlAN TKM>KK. «>!' ilir* cldi'h limy Hx ; or us pint of tin- I'uiihidfration ot iiiiy cniitrart iniiili' hy till- (!«)tii]Miny. {ill Willi a vii-w to Kivi' nil opportunity of Huhhcriluii)/ loi stock in tlic ciiiiiptiiiy, st«)(;k IiooKh hIiiiII ho opoiuui in Montrciil, 'roioiitt*, il.-tlifiix. St. John, N.Il. Cliinlottctown. \Vinnip«K> '"»ti mIiIcIi it sliiiil Heitin to thciii ino.vpuiUent to uccopt. H Ah houii m iivc tnillion ilolliirs of tlic Klock of llu> coiiiptiiiy liavc hia-ii NuliHcrilxul, and tliirty p«'r centum tluMrof paid up. and ufum tlic di'jtortit with tlic Minister ol I'inancc ot tlic Dominion of one million dollars in nioiny. or in Mc(;uriticH approved l»y the Governor in ('ouncil, f«)r the p\U'poH«' and upon tlu' c«>n(iiti<)nH in the forc^joins^ contract provided, the said contrio't hIuiU iiecomc and ho traiiNferred to the company, without the execution of any dceil or instni- menl in that l)ehalf ; and the conipiiny mIhiII, thereupon, hi-couie and he vested with all t!ie rights oi the coiitractoi'N named in the saitl contract, and shall he Kuhject to. and liahle for, all their duties and «ildi),'ations, to the same extent aiul in the same mioiner a.s if the saiti contract had lieen executed hy the said company instead of hy the said uoutractt)rH ; and thereupon the said contrac- tors, as individuals, shall eoiiMe to have any ri^lit or interest in the said con- tract, and shall not he suhject to any liahility or responKihility under the tenn^ thereof otherwise! than as memhers of the corjtoration herehy created. And upon the performance of the said conditions, respectin;,' the suhscriplion of stock, the partial payment thereof, and the ileposit of one million dollars, to the satisfaction of the Governor in Couucil, the ]mhlication hy the Secretary of State in the I'nnuda Gazette, of a notice that the transfer of the contract to the company has heen effected and completed, shall he conclusive proof of the fuct. And the company shall cause to he paid up. on or hefore the tirst day ol May next, a fiu'ther instalment of twenty per centum upon the said first suh- scriplion of five million dollars, of which call thirty days notice hy circular, mailed to eaor of directors to he hereafter elected hy the shai'dholders shall he such, not exceediujr fifteeji, as shall he fixed by hv- ■4 THK CANADIAN TKNhKH. r.l 't rimili* lt\ ttnck in till' i. St. John. ^-.^. tlllit the eh it siiall Imvt' ln't'ii fpoKit witli oiu'V. or ill 1*1 inxin tli<> »11 ncc'oiut' I or instni- II 1»«! VCStftI III shall l>(> line extent y the siiiil id contraio- ^ Hjiid con- • the tenns ited. And cription of lars, to the Kcretarv of <'ontracl to )root' of the Krst (Uiy of first Huh- . circuhii-. nil (Mill in, '2. the re- lin])uny to of. eveiT itd\jintiij,'e eonferii''! (•(■(•iiijifter litv •>fthe iiinthers. r.ovitt. iHt direo- [he direc- he direc- lAnd the ronteiTed the first lierciifter V of the acted hv hv l.v- liiw, !ind Huhjeot ti» the sHine condicionH uh the directors niipuinted l>y, or vuider tlmiiuthorify of, the hiHt precedinj^ section ; the inu>d»er thereof may b<' here- after altered from time to ti>n<» in lik« nninner. The voten for their el«oti. The chief place of huHinesH of the company -iliall he at the city «»f M«>n- Ireal, hiit the company may, from time to time, hy hydaw, appoint !in«l fix other places within or heyonil the limits of Canada at which the husiness of the I'ompany may he transacted ; and at which the directors or shareholders nni\ meet, when called as shall he determined by the by-laws. Ami the compaiiv shall appoint and fix by by-law, at least one place in each province or territory tbrouf^h which the railway shall pass, where service of the process may in- made, tipon the company, in respect of any cause of action arisinj,' within such province or territory ; and may afterwards, from time to time, diaiifii! snany. at any of the stutious of the >nid cailwiiy within .>uch firovince or territory. aHARKHOI.DKKS. 10. The first animal meeting of the sharehoblers of the company, for tlif !ip])ointment of directors, shall be held on the second Wednesday in Mhv. IHH-J. ;it the principal office of the company, in Montreal; and the annuHl },'eueial meeting of shareholders, for the election of directors and the Itaiisactioii ol Imsiness generally, shall be held on the same day in each year thereafter at the same place unless otherwise provided by the by-laws. And notice of each ol such meetings shall be given by the pubUcation thereof in the ('fDimln (ianeffr for four weeks, and by such further means as shall from time to time be direet- ed by the by-laws. 11. Special general meetings of the shareholdei's may be convened in sueii manner as shall be provided by the by-laws. And except as bei'cinafter pro- vided, notice of such meetings shall be given in the same manner as notices of annual general meetings, the pm-pose for which such meeting is called being mentioned in the notices thereof; and, except as hereinnfter provided, all such meetings shall be held at the chief place of busines of the company. ■^ 62 THE CANA/iIA.V TKKr»KR. It! 12. 1 1' at any tiuui before tlie lirHt autntal uioeting of thu Kiiiiriiiolitors o^' tht; (ionipany, it should l)ecome nxjXMlient that a lueeting of tlie (UroctorH of tht fuunjmny, or a Hpecial >?eneral niveting of the sharelioldorH of the company. Klimild im lield, before Hncli inoctiiiK can eonveiiiently be called, and notice thereof ;^iven in the manner jjrovideil by tliin Act, or by the bydawH; or before by-laws in that )ehalf have been patwed ; and at a place other than at the chief place of buHinetw of the company in Nfontreal l>eforc the enatirment of a It.ydaw aiithoiTHin^ the holding of snch meeting elHewhere ; it nhall be lawful for tlu pi-cHident or fi>v imy three of the dir(j(!t«)rM of tlu; company to call si>ecial meet- in^^» either of directoi'N or of shareholders, or of both, to be held at the city of l.ondo)! in Kngland, at tijues and i>lHre» r»iHpectively. to be stated in the notices to be give)! of snch raeotingB respectively. And notiecH of snch meetings may be validly given by a circular mailed to the ordinary adresii of each shareholder as the cafw niay be, in time to enable him to attend Hnch meeting, stating in generiil t(?niiH the pnipose of the intended meeting. AihI in the case ot ii meeting t>f shareholders, the proceedings of snch meeting shall be held to be vaUd i^md sutiicient, and to be biniling t)n the compiiny in all respects, if every shiirtiholder of the company be present thereat in person o)- by proxy notwith- standing that notice of such meeting shall not have been given in the manner required by this Act. IS5. No sJHii'eholder holding shares upon which any call is overdue anrk a continuous line of railway, of the gauge of four feet eight and one-half inches ; which railway shall extend from the terminus of the Canada ('entra! ItMilway near Lake Nipissing, known as OaUander 8ta.tion, to Port Moody in the province of British (3ohmibia ; and also, a branch line of railway from some point on the main line of railway to Kort William on Thunder Bay; and also the existing branch line of railway from Selkirk in the Province of Manitoba to Pembina in the said province ; and ■ Iso other branches to be located by the company from time to time as provided by the said contract ; the said branches to be of the gauge aforesaid ; and the said main line of railway, shall be com- menced and completed as provided by the said contract ; and together with Ruch otlno' branch linas as shall hereafter l>e constructed by the saiil company, (tnd any extension of the said main line of railway that shall hereafter be con- Rtructed or ac(ptired by the company, shall constittite the line of railway here- inafter (nilU'd Thk Canadian Paoiph; Hailway. U). The company may construct, maintain and work a continuous tele graph line and telephone lines throughout and along the whole line of the (/anadu Pacific Railway, or any part thereof, and may also construct or acqiiire by purchase, lease or otherwise, any otlnir line or lines of telegraph connecting witli the line so to be constructed along the line of the said railway, and may Undertake the transmission of messages for the jiublic by any such line or lines of telegraph or telephone, and collect tolls for no doing ; or may lease such line or lines of telegraph or telephone, »)r anv portion thereof; and, if they think proper to undertake the transmission of messages for the public by any such line or linew of telegraph or telephone, and collect t^lls for so doing; or may lease such line or Unes of telegriiph or telephone, or any portion thereof; anii< if they think proper to undertake the transmission of messages for hire, ■tiIjoIiIi*rs oi' crtorH of thir 1 company, and notice : or l)efor».' lit the chict' of a ]iy -law .'ful for ilu- lecial meet- th« city of th« notices etiiigs niny 'harehokler . stating in =1 caHo ot It i held to hf •ts, if ev(}ry y notwith- ihe uianne)- ue and nn- =!e provided be hiniHeb' iwenty pei' intain ami id one-half a ('entra! Moody in from some and also anitoba to ul by the branches bo com- ther with •I'lupany. be con- r'ay here- (Xlrt tele of th<' r actjuin )nuecfinj,' and may ft or hues ase siicli if they by any oin>?; o)' thereof ; for hire. THE CANADIAN TENDER* m they Hliall be subject to the provisions of the fourteenth and sixteenth sections of chapter Hixty-Heven of tlie Connolidated Htatntes of Canada. \nd they may use any improvement that may hereafter be invented (subject to the ris^ht nf patentees) for telegraphing or telephoninf^, and any other means cf comnnini cation that may be deemed expedient by the company at any time liereaften POWKRS. 17. 'The Consolidated liailway Act. 187i),'' in so far as the proviHions of the Ham are applicable to the utidertakini<[ authorized by this charter, an.) in so far a8 they are not inconsistent with or contrary to the provisions hereof, *md save and expect as hereinafter provided, is hereby incorporatER. m ■^ Ciiilwuv : itiid also to lay ont sind :ippro|>riatf to tlie usf of the eoiufmny, ■"» iXrt'itler extent of liiuds, wlietlier puMic or private, for stutiouH, depots, work- .nhopH, ]»nil(1in^s, nidp-ti'iirkH. wliarven, hiirlKH-s ind roadway, and for eHtaidisli- •11^ si'ioens a^aiiiBt Know, than the hreadth and (piantity mentioned in " Thf ('i>nm>lidftf(fd liailuni]! ^rM879."' such y^reater i-xtont taken, in any cano, beinji .rl lowed hy the Govornineut. and shown ou the luapH or i>Ian» deposited with thr- Minister of llailwayn. 2 t. The liiuit t> the redxu'tion of tolls by the ParHament of Canada pro- viiied for l>v the eleventli Hub-Heirtiori of the 17th section of the Con^oUdnted Hailuuiy Art, 1879, re.Hpeotinj,' Tow.s, is liereliy extended, so that snch reduction n\n.y be to such an extent tliat sncli tolls when reduced shall not ]>rodnee less than ten per cent, per annum protit on the capital actually expended in the cotistruction of tlie Railvvay, instead of not less than fifteen per cent, per annum profit, as ijrovided by the said sul»-section : and so also that such reduction shall not be made unless the net income of the company, ascertained as de- scribed in said sub-section, shall have exceeded ten per cent, per atmum instead of fifteen per cent. ])er annum as pro\'ided by the said sub-section. 21. The lirst and second sub sections of section 22. of the Consolidated Ji'tllivny Act, 1879, shall not apply to the Canadian Pacific Railway Company: and it is hereby enacted that the transfer of shares in the undertaking shall be made only upon the books of the company in person or by attorney, and shall not be valid unless so made ; and the form and mode of transfer shaU be such as shall be from time to time regulated by the By-lav/s of the company. And the fimds of the company shall not be used in any advance upon the secuvitj of any of the shares or stock of the company. 22. The third and fourth sub-sections of said section 22 of the Consolidated Kailway Act of 1979 shall be subject to the following provisions, namely, that if before the completion of the railway and works under the said contract, any transfer should purport to be made of any stock or share in the com any, or any transmission of any share should be effected under the provisions of said sub-section four ; to a person not a shareholder in the company ; and ii in the opinion of the Board it should not be expedient that the person (not being already a shareholder) to whom such transfer or transmission shall be made or effected should be accepted as a shareholder ; the Directors may by resolution veto sucli transfer or transmission ; and thereafter, and until the completion of the said railway and works under the said contract, such pen-on shall not be. or be recognized as a shareholder in the company ; and the origijuil share- holder, or his estate, as the case may be. shall remain subject to all the obliga- tions of a shareholder in tlie company, with all the rights conferred upon a shareholder under this Act. But any firm holdic;, paid-up sliares in the com- pany may transfer the whole or any of such shares to any partner in such firm having already an interest as such partner in such shares, without being sub- ject to such veto. And in the event of such veto being exercised, a note shall be taken of the transfer or transmission so vetoed in order that it may be re- corded in the books of the company after the completion of the railway and works as aforesfiid : But until such completion, the transfer or transmission so vetoed shall not confer any rights, nor have any effect of any nature or kind whatever as respects the company. 23. Sub-section sixteen of section nineteen, relating to Prksidknt ani» DiRKCTORS, THKiR KiiKCTioN AND DUTiKS ; sub-sectiou two of section twenty-four, relating to By-t,aws, Notioks, ike. ; sub sections five and six of section twenty- eight, relating to Qrnkrat. provisions ; and section ninety-seven, relating to Railway Fund, of the Consolidated Railway Act, 1879, shall not, nor shall any of them apply to the Canadian Pacific Railway or to the compiiny hereby yiu\muy, a »otR, work- eHtaldisli- in " TJiJ' r'une, beiujj sited with nttdu pro- nHolidated reduction odncc less led in tlie >er annum reduction led as de- im instead molidated 2ovL\\>Any ; ig shall be and shall iU be such my. And le security nsolidated nely. that tract, any u anj-, or IS of said ii in the not bein^' ; made or esolutiou letion of not be. al sliare- obli}»a- upon a he com- uch firm n<,' sub- te shall ' be re- t'ay anEK. incoqwrattMl. 24. The said compao}' shall afford all reaaonaldo facilities to tlu' Ontario Pacific Junction Railway Company when their railway shall be com -leleil to .1 j'oint of junction, with the Canadian Pacific Railway; and to tin- Ciiniidn Central Uiiilway Company, lor the receiving, forwarding and »b'li\(riiig of traffic upon and from the railways of the said companies, respectively: itii- ject to the same charges for similar services ; without granting or allowing uny preference or advantage to the traffic coming from or going upon one of micIi railways over .such traffic coming from or going upon tlie other of them. )X'Her\ ■ ing, however, to the said Canadian Pacific Railway Company the right of" making special rates for purchasers of land, or for emigrants or intending emi- grants, which special rates shall not govern or affect the rato« of passen>,'er traffic as between the said company and the said two above nahned companies or either of them. And any agreemeut made between any tW(i of the saih' water, for tJie convenience and acconiiuodation oC vesMels and eleva- lorn ; and also to acquire and work elevators, and to acquire, own, hold, charter, work, and run, .steam and other veHKelH for carf^o and pahsenf,'er8 upon iiavi^iahle water, which the Canadian Pacific Railway may reach or connect with. BY-LAWS, 27. The by-laws of the company may provide for the remtmeratio)i of tlie j)re.Hident and directors of the company, and of any executive committee of such directors ; and for the Iraupfer of ritock on shares : the registration and inscription of stock, slmres and bomls, and the transfer of re<(istered bonds; and tlie ])iiyment ol dividends and interes ; at any place or places within or beyond the- limits of Canada ; and for all other matters required by the eaid contract or by this Act to be rejjulated by by laws. But the by-laws of the c«»mpany made as provided by law shall in no case have any force or effect after the next {general meetiuj? of the shareholders, whicrli shall be held after tlie passatjo of such by-law-;, unless they ar<' approved by such meeting. .'lONDH. 28. '.rhe company under the authority of a special general meeting of the shareholders called for the purpose, may issue ujortgage. bonds to the extent of ten thousand dollars per mile of the Canadian Pacific Railway for the purposes of the undertaking authorized by the present Act ; which issue shall constitute a first mortgage and privilege tipon the said railway, con- structed or accjuired, and to be thereafter constructed, or acquired, and uj)on its property, real and personal, accjuired and to be thereafter ac(iuired including rolling stock, and plant ; and upon it"* tolls and revenues (after de- duction from such tolls and revenues of working expenses) ; and upon the franchises of the company ; the whole as shall be declared and described as so mortgaged in any deed of mortgage as hereinafter provided. Provided always, however, that if the company shall have issued, or shall intend to issue land grant honds under the provisions of the thirtieth section her<'of. the land grant- ed and to be granted by the Government to the company may be excluiled from the operation of such mortgage and privilege ; and provided also that such mortgage and privilege shall not attach upon any proi)erty which the company are hereby, or by the said contract, authorized to acquirt; or receive receive trom the Government of Canada until the same shall be convoyed by the (fovtrnment to the company ; but shall attach upon sueli^ property, if so declared in such deed, as soon as the same shall be conveyed to the comj)any. And such mortgage and privilege may be evidenced by a deed or deeds of mortgage executed by the company, with the atithoritv of its shareholders ex- ju'essed by a resolution passed at such special general mooting ; and any such deed may contain such description of the property mortgaged by such deed, and stich conditions respecting the payment of the bonds secured tb.oroby and of th(> interest thereon, and the remedies which shall be enjoyed by the holders o I such bonds or by any trustee or trustees for them in default of such pay- ment ; and the enforcement of such remedies ; and may provide for such fo» feitures and nenalties in default of audi payment ; and as may be approved by such meeting ; and may also contain, with the approval aforesaid, authority to the tnistee or trustees, upon such default, as one of sucli remedies, to ttiko possession of the railway and property mortgaged, and to hold and run the same for the benefit of the bondholders thereof for a time to be limited by such deed ; or to sell the said railway and property, atter such delay, and upon such terms and conditions as may be slated in such deed ; and with like approval any such deed may contain provisions to the effect that THK CANADIAN TENDER. 07 i thereof on Is and eleva ■ , own, liold, 'eiif,'er8 upou h or con u Oft ■ration of the jomuiittoe of Htration ami ierefl bonds ; es within or Viy the eaid -laws of the arce or effect e held after 'ting. peting of the the extent of the pnrposeK issne sliall ilway, con- qnired, and ter accjuired es (after de- d upou the crihed as ho ded always, » issue land land grant- >e exckuled d also tliat which the or receive nvoyed by lerty. if so company. )r deeds of holders ex- 1 any such such deed. oreby and he holders such pav- ' such foi proved by authoi'ity remedies, I to hold a time t(» alter such deed ; and ffect that up«>n such detuult and upou such other conditions as shall be desoril»ed in Hucb dee 1, the right of voting poRHeatted by the sbareholderK of the ctuupany. nnd by the holders of pw^ferred stock therein, or by either of t'uein, sliall cease and de- terraine, and shall thereafter appertain to the bondholders, or to ihein and to the holders of the whole or of any part of the preferred stock of the company, us shall be declared by such deed ; and such deed may also proviile for the conditional or absolute cancellation after such sale of any or all of the shares so deprived of voting power ; or of any or all of the prefenred stock of th»- coui- pany, or Iwth ; and may also, either directly by its terms, or indirecth by reference to the by-laws of the company, provide for the mode of enforcing aiul exercising the powers and authority to be conferred and defined by such deeil, under the provisions hereof. And such deed, and the provisions liiernt as provided for in the .said contract ; Biich bouds to conHtitiite a luortga^i: upon thi' property of tht; company and itw franchinea acquired and to be there- iitt(;r Hcciuircd —including the main line of the Canadian Paciiic Railway, nnd ti»«> brunches tliereof hereinbefore described, with the plant and rolling Block ihoreof ivcquiri.'d and to bo thereafter ftC(juired, but t-xcluKive of such othe)- liijiMcljcs Miercof and of Htich pernonal property aa shall be excluded by the deed ol tnortj,'af^e to be executed as security for such issue. And the provinionH ol tlu' Hiiid twenty-eighth Kection shall apply to such iHSue of lx>nds, and to the sffurity which may be given for the payment thereof, and they and the pi'o- i.-eedH there«>f shall be dealt with as hei-eby and by the said contract provided. H2. It shall not be necossarj' to affix the seal of the company to any mort- ^aj,'(' bond insiUMl under the autliority of this Act ; and every Huch bond issued v^itiiout sndi seal phall have the same force and elTect ; and l)e held, treated iiiid dealt with by all courts of law and equity, as if it were sealed with the seal III' the company And if it is provided by the mortgage deed executed to secure the isHue of any bonds, that any of the signatures to such bonds or to thw coupons tlicreto appended, may be engraved, stamped or litlu)graphed thereon, such engraved, stamped or lithographed signatures shall be vahd and binding on the company. ;-5B. The phrase " working expenses" shall mean and include all expenses of maintenance of the railway, and of the stations, buildings, works and con- veniancefi belonging thereto, and of the rolling and other ssock and moveable pbmt u^ed in the working thereof, and also all such tolls, rents or annual sums as may be paid in respect of the hire of engines, carriages or waggons let to the cumjntiiy ; also, all rent, charges, or interest on the purchase money of lands belonging to the company, purchased but not paid for, or not fully paid for : anil also all <'xpenH-:s of and incidental to, working the railway and the traffic thereon, including stores and consumable articles ; also rates, taxes, insurance and compensation for accidents or losses; also all salaries and wages of persons employed in and about the working of the railway and traffic, and all office and management expenses, inchiding directors' fee, agency, legal and othei; like expenses. y4. The bouds authorized by tins Act to be issued upon the railway or upon the lands to bo granted to the company, or both, may bo so issued in whole or in ])art in the denomination of dollars, pounds sterling or francs, or in an;s or all of them, and the coupons may be for payment in denominations similar to those of the bond to. which they are attached. And the whole or any of such lionds may be pledged, negotiated or sold upon such conditions and at such price as. the Board of Directors shall from time to time determine. And provision ujay be made by the by-laws of the company, that after the issue of any bond, the same may be surrendered to the company by tJie holder thereof, and the company may, in exchange therefor, issue to such holder in- scribed stock of the company which inscribed stock may be registered or in- scribed at the chief place of business of the company or elsewhere, in such iriaimer, with such rights, liens, privileges and preferences ; at such place ; and upon such conditions ; as shall bo provided by the by-laws of the company. 35. It shall not be necessary, in order to preserve the priority, lien, chargi', mortgage or privilege, purporting to appertain to or to be created by any bond issued or mortgage deed executed under the provisions of this Act, that such bond or deed should be enregistered in any manner, or in any place whatever. But every such mortgage dsed shall be deposited in the office of the Secretary of State : of w^hich dejiosit notice shall be given in the Canada Qazette. And in Uke manner any agreement entered into by the company, under section THK CANADIAN TENDER. ()l) the Govern- a iuortf;;tigt; to be there - iilwtvy, mill olhng block mich othe)- by the tlecd roviBions ol and to the 11(1 tlie pro- provided. any mort- bond issnod 1 eld, treated ^ith the seal ed to secure s or to tliH H'd thereon, and binding: ill expenses rka and con- d move able innual huuis ns let to the ley of lands y paid for : tlie traffic 1, insurance s of personH 1 office and othei; like railway or issued in rancs, or in lominations le whole or [litions and determine. ]r the JHsue Iblie hold(;i [holder in- Ired or in- |e, in such dace : and ipany. sn, charge. I any bond that such Iwhatever. ISecretarv [ftc. And T section thirty-four of this Act, shall alsd be deposited in the aoid ofhce. And n copy ol any such mortgage deed, or agreement, certified to be a true copy by the Secretary of State or his deputy, shall be received as prima facie evidence ol the original in all courts of justice, without proof of the signatures or seal up<>»i such original. 86. If, at any time, any agreement be made by the company with any persons intending to become liondholders of the company ; or be coiituiiifd in any mortgage deed executed under the authority of this Act ; restricting the issue of bonds by the company, under the powers conferred by this Act ; or defining or hmitiiig the mode of exercising such powers ; the company, after the deposit tlieieof with the Secretary of State as hereinbefore provided, shall not act upon such powers otherwise thau as defined, restricted and limited bv .such agreement. And iio bond thereafter issued by the company, and ii<' order, resolution or proceeding thereafter made, passed or had l»y the company, or by the board of directors, contrary to the termB of such agreement, shall be valid or effectual. 37. The company may, from time to time, issue guaranteed or preferred stock at any price, to such amount, not exceeding ten thousand didbirsi. per mile, and upon such conditions as to the preferonces and privileges appertaining thereto, or to different issues or classes thereof, and otherwise as shall I)e auth- orized by the majority in value of the sliareiiolders present in person, or repre- rented by proxy at any annual meeting or at any special general meeting thereof called for the purpose, notice of the intention to propose such issuv- iit such meeting being given in the notice calling such meeting. l>ut the gaar- autee or preference accorded to such stock shall not interfere with the lien, mortgage and privilege attiiching to bonds issued under the authority of thit^ Act. And the holders of j-uch preferred stock shall have snch power of voting at meetings of sharehoMer-i, as shall be confeiTed upon them by the by-laws of the company. KXKCUTION Of AQRKKMENTS. 38. Every contract, agreement, i-ngagement, scrip cerlilicatc or baigtiiii made, and every bill of exchange dniwi'.. accepted or endorsed, and overy pro- missory note und cheque made, drawn or endorsed on behalf of the company. by any agent, officer or servant of the company, in general acc(U'dance with his powers as such under the by-laws of the company, shall be binding upon the company ; and in no case shall it be necessary to have the seal of the corn})an\ ;iffixed to any such biU, note, cheque, contract, agn.'ement, engagement, bar- gain, or scrip certificate, or to [)rove that the same was made, drawn, accepted or endorsed as the case may be, in pursuance of any b3'-law or special vote oi order ; nor shall the party so acting as iigent, officer or servant of the company be subjected individually to any liability, whatsoever, to anj' third party tlure- Ibr ; Provided always, that nothing in this Act shall be construed to authori/.f the company to issue any note payable to the bearer thereof, or any promissory note intended to be circulated h'^ money, or as the note of a bank, or to engage in the business of banking or insurance. OKNKKAL I'KoVlSlONS. 38. The company shall, from time to time, furnish such reports of tlie pro- gress of the work, with such detuds and plans of the work, as the Government may require. 40. As respects places not within any Province, any notice required by the Consolidated Railway Act, 1879, to be given in the "Official Gazette" of a Pro- vuice. may be given in the Canada Gazctie. ^ 70 THE CANADIAN TKNDER. U. JJi^iflH and coiivcyiincoH of liindri to ttio conipuny for the puqjoscK of \.\itn Act, (iiut Wwiti It'ttn-H p»tont from the Crown) may, in mo fur hh circum- uliitu't^H will inhnit, b»! in flie form followiiiff, thai in to Hay ; — " Ktiitw all men by the^e proHunta, that I, A.B., in mniHideration of puiil to uw. I'V the Caniiihun Pacific Itailway Coinpiiuy, tin- r»ic«Mpt whereof in lurtiby iicknow!v(i^,'r(l, grant, bargain, hoU and convey unto the said The Cantt- diun I':u;it>c Ittiilway Company, their HUccessors and atwignfi, all that tract or parcel (i'linid (de.itcribf. the land) to have and to hold the uaid land and prem- ini'H niiti) the Haid company, thojr AucceHHorH and aHui^nH for ever. " WilnehM my hand and Heal thit* day of one tlionsand •'i}^'ht hmidred and " Signt'd, Healed and delivered ) in prenence of > •* c.h. or in any other form to the hke ftieet. And eTory deed made in aceordaixii' herewith rtliall be held and con.strwed to imjwse upon the vendor execntin*; tin 8umt-, tlit^ obligation of guaranteeing the eompany itnd itn aHHiguH againnt all dower and claim for dower and against all hvpothecs and mortgagoK and against all lienn and ehargen what:-»oevcr, and abso that \w han a good, valid and tranf^- feruble title thereto. A.B. [L.».l Nil W. p. iiOWLANl) AND HIS A8S0C1ATES, ALL OF WHOM RESIDE IN CANADA, DEPOSITED WITH THE GOVERNMENT ONE MILLION FOUR HUNDRED AND TWENTY THOUSAND DOLLARS as socuvitv for the fuithfuf l.>frfoimaiiot' of thr- toiinH and tX)ii(iilions of their offor, if it nvjih acetipltjtl by the Gosoruraeut und tiouiinned by Parliauu'iit. Mr. Geo. Stephou and hih ahHOciaten (only one of whom bcwidt;*^ himw^lf roHidos in Canada,) did not mukf an} (h"ii)osit of any kind. or give tho Governinont an} security \vhate\«jr outside of the contract, that they would comply witii ita tcrrab and conditions, if the contract made by tliera with tho Govonmiont was eonfii'rnt«d by Parliament. Mil. IlLAKE 8 AMENDMENT. purpoav'« of HH circuio ij of whereof \n The Cun» tat tract or and preiu- [L.H.] acconlaiXM' ;«cotin<; tlu AgaiiiHt all and HgainHt [I and irauF.- ALL Of IH THE r> AND ic t'aitlii'ut iJ' it wjiH lout. l;iiiv kind. |i) of the litioriB. if iniiHcl bv AMENDMENT MOVED BY THE HON. EDWARD llLAKE. January 'iOTii, IHMI. Thai the Haid roHohttionn hf uot uow road a Ruuoud tiuiu, bxit t)iat it hi; Uenolotid, — That the late (Joverninent invited tenders for the cuiifilniction iinti working of the ('anadian Pacific Railway, under the Act uf 1H74. That no temiem were received in anHwer to tho^e iiivitatioDK. That the policy of the proBent Government approved by this iloUHe in the Session of 1H79 was to obtain Imperial aid lowardw the work. That the poUcy of tJie present Government approved by this HottM- in (hf S«.'8Rioa of 188(> was to construct the railway as a Government work. That it appears that during the recess the Government determined to :it- tempt to make a contract for the construction and working ot the railway on wholly new conditions. That the Canadian Paeitic Railway Act provides that the works en utn section or sub-section of the railway shall not be given out to any eonrracfor except after tenders shall have been obtained therefor. , That the Government did not invite t<;nd> taken in the North-West Territories, between Selkirk and Jasper, and is not to include any land not fairly fit fo? settlement. 4. Ry the Act the land not to be found near the railway is (o W :ippropr>- at*;d at other places, to be determined by the Government. 72 MK. BliAKK H AMENDMENT. i 1 i^ By tlif c'ttiitmct the ronlriM'tors are ^iven Inrfje iiowei-H of Helectioo of the liDkd. r>. IJy the Aft th»' (tovcrmnoiit is to huvc control of the Hfile» i>f two-thirds of tile huiil ^'riint. Hy thf» coiitriiPt thin power is taken uwity. G. By the Aft tlio subsidy and h»nd fjnint iiro to l»e payable in proportion to thf v:tli)t> of thf work done hb fonipariHl with tho eatimated value of the whole work fontracted for. ily tho fontriict tho Huhsidy and land jjrant are to he jmyablo in amounts wholly (li.sjtropoitionHte on tho praino Koction, whifh in the easiest and most Itrotitalile and is intended to be the earlioHt completed. 7. Under the Act tho property and uapitul stoek of the company remain liable to Dominion, I'rovineiul and municipal taxation. By the eontraet nufh property and capital stock are perpetually exempted from taxation by the Dominion, new FrovinccH or municipalities therein. 8. Under the Act tl" ' nid ^rant of the company remains subject to taxation. By the contract t ' j^rant is exempted from tho Dominion, Provincial and municipal t.i'xal' re mentioned until sold or occupied for twenty scars fr^m the date ot , rtrftiit- 9. Und(»r the Act all the materials n'tjuired by the contractors remain sub- ,iect to import duties. By tJu" contj-act a lar}»e part of such materials is exempted from import duties. 10 Under the Act Parliament ai»'l any new Provinces are in no v^-ise hin- dered from authorizing the construction of other railways as the public interest may require. By the contract it in ajjreed that Parliament and any new l*rovinces shall not for twenty years autlioriTie the construction of any railways running in cer- tain directions which might interfere with the Canadian Pacific Railway. 11. By the Act, the Governraeut has unrestricted power to regulate from time to time the tariff of tolls. By the contract, the power of the Government to reduce an established tariff is limited to the case in which the company is making a net revenue ex- ceeding 10 per cent, on the capital invested in the construction of the railway. 12. Untler the Act the Government would have power to prescj-ibe from time to time the accommodation and the trains to be provided by the company. Bj- the contract such power is not given to the Government. 18. Under the Act the Government would have power to acquire the rail- way at any time tho public interest might demand. By the contract the Government has no such power. 14. By the Act the grades of the railway and the materials and manner of consti'uctiun and the mode of working, inpluding the description and capacity of the rolling stock are to be such as may be determined by the Governor in Council ; and it was foniierly the declared policy of Governments and Parlia- ment that the grades should be very low. By the contract the Union Pacific Railway as first constructed is fixed as the approximate standard ; and its grades are very high. 15. By the Act no power is given to the company to build branch railways, save one to Georgian Bay and one to Pembina. By the contract power is given to the company forever to build branch lines in various parts of the Dominion. tua of tJi«- two-tliirdn ftroportioi) ue of tho 1 amounts and mo8t ay remain uxempted roin. o taxation. Provinciiil for twenty Mnain Hub- ara import > \vi8e hin- lic interettl iDceH Hliall inp in cer- ay. late from Htablislied enue ex- mil way. ribe from ompany. tbn rail- annor of capacity ernor iu I Pai'lia- fixed as railways, brancL Mil. HLAKE S AMENDMENT. u 16. By Uiti contract divers other in){K)rtant privilogeH and powttrH are given to the company nut authorized or contemplated ny tlio Act. That Huch'new conditions wholly alter the hafiiH for tenderin>(. That no opportunity won xivcn to Canadian capitalists or to tlie public to lender tor the work on the baniR of any such now comlitions. That by the Canadian Pacific Hallway Act it i8 provided tliat no contnu-L made under tlie authority of that Act for the construction of an^ portion of the main line of the railway Hhall be bin(hn;< until it Nhall have been laid before (lie House of Comnions for t»ne niontli withtut being disapproved, unit HSHOoncr approved bv a resohition of the IIouk*^ That tlie contract now on the table doeH not come within tlx' (rovisions n: J he said Act ; and is of no force unlcHH le{,'ahzed by I'arhament. That the said contract cxpre^Hly provideK that the same Nhall be binding <)nly in the event of an Act of incorporation being granted t\.» .tlie pnyectiil company as «et out in Schedule A. to the contract. That Parliament in free to reject such a Bill. That it Ih now proposed that Parliament shall legaliKe tlie contvact. That this House is under no obligation to do so, and it is its duty te n-fuw lo do so, unless Mitisfied that the public interest requires such a step. That the conditions of the contract are extremely onerous and disadvanf,- ageouK to the country. That it now appears that terms much more favorable to the country can be obtained. That on the 14th day of January instant, only five weeks efter the said new conditions were made public, an offer, which is now on the table, wns made to the Government by Canadian capitalists of high standing and ample means, credit, and business ability, comprising Sir W. P. Hotvlatid, H. //. Goolc, A. li. McMaster, Wm. Hrvdrii; John Stuart, John Proctor, P. S. Stephenson, John Walker, D. Macfie, Paleq Rowland, A. T. Wood, Alhiu Oilnwur, J. Carruthern, K, Chisholm, A. W. Eons, Geo. A. Cor, P. Larkin, W. D. Lovitt, Barnet d' McKay, James McLaren, and Alexander Gibson, u> completi: those parts of the railway to be built by the contractoix, and to equip and maintain and work the whole railway from Lake Nipissing to the Pacitic Ocean, and to perform all the obligations undertaken by the contractors on terms far less onerous to the country, in the following respects : — 1. The contract provides for a cash siibsidy of $26,000,000, and a laud grant of 25,000,000 acres. The offer proposes to accept $22,000,000 and 22,000.000 acres, making a saving of $8,000,000 in cash, and .M, 000,000 acres, equal, at the (lovi'mmenf, estimatf of $H.18 per acre, to $9,ol0,000, or a total saving of $12,640,000 on this head. 2. The contract provides as a standard the Union Pacifn: Railway as first constructed. The offer proposes that railway as in 1873. a. The contract provides for the giving of $9,0(M»,000 and ll,2iiO,000 acres for the prairie 900 miles. The offer proposes to accept $6,600,000 cash and 9,000,000 acres for the same work, making a saving on that part of $2,400,000 and 2,260,000 acres, or a total saving on that part, at the Government, of $9,655,000. 4. The contract provides for the giving of $6,000,000 cash and 7,600,000 acres for the Western four hundred and fifty miles to Kamloops. The offer proposes to accept $5,400,000 cash tmd 6,75(»,000 acres for the same work, making a saving on that part, of $600,000 cash and 750,000 acres, or a total saving on that part, at the Government estimate, of $2,985,000. '■I I 71 MK. BLAKK H VMKNDMKNT •'S. The oontmct providwH timt thr Govt^rniniMit nliall permit tlin adiniKHion lit*** oi' duty of all Hl«(>l rHJlH, fiHli-pliitoH liiid ollior taKt«>niii(;s. HiiikoH, boltH and iiutH, wiro, tiiiiU'r, and all inHterial tor hridf^itti tl( ^riipli line in ooututction tlurowith and nil t('l«'trraidii(' aiiparatuft nvjuiri'd for tlie tjrst ♦•(iuipin*»nt of hucIi telegraph linr. Th«' odvr propose', to undertakH tli« oluiKatiouH without any oxwiuptioiis from duty, thuH offecliug a further lar^o j?ain to tho «i construct- ed Houth of tho Canadian Pacific Uailway from any point, at or ni^ar tho Cann dian i'acific Uailway, except Huch line aH Hhall nm Koutli-w^Ht or to tho wcHt ward of south-wbHt ; nor to within fifteen milcH of latitude 4U ; and that in the CKtahhshment of any n«w Provinoi' in the Noilli-WeMt Terntories provihion Khali lif> made for contiiiiiin){ such prohibition after such estahliHhment until the t'Xpiralion of* the said (>eriod. The offer proposes to undertake the obligations without any such r«Htnc- liuns, thus preventiitK the creation of the liegislativo monopoly in favor of the company, provided by the contract, and preserving to Parliament and tin; new Pronnces unfettered by the contract, their freedom to chartt«r railways and U> create competitive routes as the public interest may require, and by this moauK blotting out one of the most objectionable features of the contract. 7. The contmct provides that tho Canadian Pacific Uailway and all stations and Htation grounds, workshops, buildings, yards, anil other property, rolling stock and appurtenances, reijuired and used for the construction and workinj^ thereof, and the capital stock of the company, shall bo forever free from taxation by the Dominion or by any Province hereafter to be established or by an.\ municipal corporation therein. The offer proposes to undertake the obligations without any such exemp- tion, thereby effecting a great further public gain. 8. The contract provides, that tho lands of the company in the North-west TerritorioH until they are either sold or occupied, shall also be free from such taxation for twenty years after the grant from the ('rown. The offer proposes to undertake tho obligations without an.> such exemp tion, thereby effecting a great further public gain, and removing a most neriouh hindrance to the development of the North-west. 0. The contract contains no provision giving to the Government power to acquire the railway. The offor proposes that the Government shall be entitled at any time after completion to acquire the railway on terms to be settled by agreement or arbi- tration, thus enabling tho Government, in case the public interest shall be found at any time to demand that step, to acquire the railway with a view to its being dealt with as those interests may then require. 10. The contract provides for the passing of an Act which would limit the power of the Govemor-in-Council to reduce tolls once established to the ease in whicli the company's net piofit shall exceed 10 per cent, on the capital invested in the construction of the milway. The offer proposes that there shall be no such limitation, and that the i»ro- viaions of the General Railway Act shall apply, giving the Govornor-in-Council unrestricted power to regulate established tolls from time to time as the public interest may require, 11. The contract makes no provifiiou for the allotment of stock in the com- pany in the several Provinces. The offer proposes that the Act to be passed shall provide for tho opening of stock books in the principal cities of each Pro\'inoe with a view to such allot- ment. n tttlintHHiot) I, boltH and riKinnl con- vitli hihI nil raph lino, oxuiuptions thoreof, no fl constnict- r tho Caiui tho WOHt that in th( i)H provihiun 3nt until thi> uch rnKtrif- liivor of thf- nd th<; now vayH and to - this moans 1 all HtationK orty, rollinR ,nd working om taxation I or by an\ uch oxotup- North-woat from Huch |ich exemp lost KeriouK U powor U) tinio ufttr) h.ui or arbi- lll be found ]o its bfiinf; limit the the oaso in il investod vt tho pro- in-Council the public I the com- openiiif: luch allot - MU. ULXRK S AMENDMENT. 75 Thai tlK* s.iitl oIYor lte«iidf.s its proposal for tho wiudo line, rontains oortiuu ;tU( rnativc proposals in case tlto (iovcrnniont NJuiuld dosiro to withdraw from or jMotjHMU' tlio con>h.sal.s aro wot surh att nIiouM \h' aro .li Ciiuada ovoi' $1,4(MJ,(MK), which is lield by sudi banks as MK-nrity that if the tender is accepted and tho charter ^'i-antod, tho million of dollars to U> de[K)Kit«tl with the (iovernment as security for couhtruetion will Ik- deixisited as piy)[K>sed by the tender. That it is not in tlie public iut<-rost thfit the otmtntct according' to the torin^ *d' wliich the $-J.>.(HM».OtH» and '.i.'#.0()(.»,(KX) acre.s arc prop»»sod In hv <:raii(.d should be ieijaiized. Yeas : McHJ*ieiirj< Auf;iiu, Itiiiii, J'.eebard, i'.liikf, |tor(b-ii, lloiirHHs:^, Jtrowii, JUirpoH (St. JoJiii), lUirjiee (Smilmry), (.'iiiiieroii (HiuiMi), Caitwrijilit. (.'a soy, CaK^^rKiii, Clinrlton, ('ixkhurii, (MtiMk(«k;«), ItUIIUIllt, l-'iset, I'leniintf, Allison, Avkoll, IJaker, llHiiueriuaii, iianiard, Heaty. HeHUohcHU*', BeiKiit, nerfjeriMi, ncrgiti, Bill, Bolduf, Boultbee, r>ourbe:*ii, Bowell. Brecken, Brookn, Bu aster, Bunting, Buriibam, farUiig, C a roil, (Uiuou, Cofkburu (Noi'tUum'd), (•(.ll.y. t'ounell, t»e(iffri, Ityiaiil, Seriver, Skiimer, Snii*)/. Siithf rlAiid, TlioiupNon I llnldiia.'iml). Trow, ^Vold(.u, Wbeler, "Wiser and Yeo.— 54. Meraef, Met hot, MoittpUisir, Mousseaii, Muttart, O'Connor, Ogdeu, Ortou, Ouiuiet, I'attersou {Kssox), I'iusouneiuiU, Piatt. IMuml), Pope (Coniplonl, Pope (yueeiisl, Poupore, Itichey, Robertson (HanuUi»n), UocheHter, Ross (Dundan), Etoufeau, Routiner, Royal, Ryan (Marquette) Ffyau (Montrea'.), Rykert, 7(5 Oourwl,. P'nrrit'r, P'lithVx'irt,. Daly, Dm HIS*, DawKon, 1 )oH»iilr>i«»rsv DcBJtMdiii*,, Dtxnvillc, Doull, Oiieas, Klhottt,. I'aiTow, ^'ortiii, JkfK, ^lAKE « AMr^^P^El^T, M.-uMlowftld i.Sir .fobjiV, .MrDbiiwIA (Crtpe B/itcfi), Mcl>ot,-»l(l (Pklou), McI>oii«l»T (Vklcviw,. !»■»>, MtM.-irallRaji ^cCoilum-y Mt:C^iftdiv *eott, Velli^r, V»)i», Valk-c, W»de, ^•■lillsct (Y«wk). White iCai-dwfUiV Vv'illi.MUS! rikI H(m reati a wecuiKi time, but that it he resolved, that in tl>e (^>ij>ioi> of this; Monsp, ttnjilei^ h1ici?1(1 \yc invited ftn' tlve cciistni'cticii and ivfxTntioii oi' lljc mil- Viiy, lA)t>rre I''ui'lip.nie}il i# asfet>d to nitity n,ny contract fw the ^s«llJe, Mr/ l^tiCHARiT tberJ moved in arDendiiKmt* that Jhe «ftid re8»i'hiti<'niH' Ix? not flow read a secoisd tin»e, l)i»t tliat it W Resolved, That \mar to, and dunujj tli»' Jasl (fenmal ElectiCTi, it Wa« thepclicy »M" all jTai-ties, that the an-angeioentH for Che colistniotitni of tlje CaniVkifMi Facilic Itailwuy whrnikl he sixh as th« ref^nM^eK' f)l the col>ntrv «'oi.»ld jAn'mit, without mci'camiiff the fonner ratf^s tA taxjition, ind that the Mnji'U, if to he constrncttd by a cmnpaiTiy, shov^ld Vm let «M}ly at'te)- tendci!* hiui hofti obtaiulcJ thei'efor, and should be subjected to purchase by tin fToveiiuneut at 10 jwjr c«nt o\ci' cost, after dediK'ting tlie public expniditure ; ;jilate the to.'ls to be taken, and to pn .scribe the acconnnodatiooj to be s<'rk o*' aboiit 00 millions of dollais, exclusive of i)it,r»0("),00(), makiii'i a total con- AMENr)MENTS» 77 ft ►ion of tliiS' oi' ibc ruil- my.- Iw not (llil'JB^ tilt* rfoiientH foi' ■t tiixution, only iiCtcr )ase 1*3' tin [Teiiditnre ; ikl Iw sub ■ Inrestricted 'scribe the artcn rtiicl) lid on the Reil policy, jtirifHl, all It thronf^h 111 resolu- contraol \e l»y tlie lexcinsive th at llie •till ("on- sitWatirtrt •of at'iivil ^U'O.CWO.O'X), while tine raih->ail it-^elf is f'stnniited l»y Oov' enuncut Ut cost not more than $84.(KX*, will «nul>Je it to be oonstrnctc'l at much less cost, a«d within a t'ea,sona!)lc time ; — which was nejijattvcd. Mr. Lacrikk then moved in amendment, that the said i"e«»lutiv»ns W not I <\v road a second time, but that it be ResolvecL, That the contract wspertinj! tlie Cuuadiun I'acitic Railway provides for the c miles, tlian the existing i-oute to New York ; and this ad- vantage t<>gether with the further gain of abu«il ti50 miles in the ocean voyage to Liverpool, would give this i-oute a commanding position, and s« cure g*'eal benefit to the (vumtrv at large ; that the constmction of the line to liie Sault or tioulai'- Ibiy vjuld also give a first-class rail and water route via Sault Ste. Marie and Thunder Hay. within our own Umits by the shortest iwssible line for the IransjKirt of emigrants, goods and produce; tiiat the construction of the line from Sturgeon IJiver to or bej'oiul Thunder Bay to the North of liake Superior, is under the circumstances prenniture, and should not be now undertaken ;— which w.is negatived. .\fr. MiM.s moveil in amendment, that, the said resolutions be not aow read ;v second time, but that it be Resolved, That the contract tor the construction of the Can-.tdiyn Paciiic IJailwii,;, , while it gives to the company the absolute and |iei7»etuiil right to build brimch lines of railway from any poiut or points along then- line, to any point or points within th? Tenntories of the Dominion, and cedes to the com})!in\ free ;ill Crovernmetit lamls required in connection with such branches, providt^s that for 20 ye rs no line of railway shall be authorized )iy the Donuiuoii l'a.:!iam"nt ov by any new Province to be constnicted South of the Ciinadian I'acific Hudwa.N mm any point at or near that railway, excei.»t such as shall ^un South-west, or to the Westward of South-west, nor to within If) miles of the boimdary between the United States and C nada : the same contract cedes tany enil)i;it'CM- the cUivf piopri- ^tor.s ol' ili(! St. Paul ami Manitcdia Railway, the only pn-sont moans of niilway I'oijiniunicntion with the Noith-wei*t ; and tlnis, not only i« tlirre no pn)visioi> lor sfcurii);^ competition, hnt there is provision wecnrinK the euinpany against (•tiiiip«..titio)i, anil ihey are seeiu'ed in a nionojjoly of the trade and traftie of th»- N'ortii-west, for at leartt 20 years, and tlje sjiid contract i^, m this rosjject, olt- ,j»'(.'tionaltle ; — which was negatived, Mr. IJoRDF.N then moved in amendment, that the said resohnions lie not now read a second time, hut that it be lienolred. That the contract re>f^))ectini,' Uie Canadian Vacitic Railway provider, that vhe company sliali not he obli^'ed Id receive any Kection of land, consistinji; in any material derrree of land not fairly lit for settlement, and that lakes and water atretclies shall not 1j« com- puted in tlie acreaj,'e of the company's sections, a))d j^ives to th.^ company llif ri^dit of selectinn; in alternate blocks anywhere in the fertile Ixlt or elsewhere the amount of the large ueticiency in the acreage to be found within '24 miles !»f the main line, thns including coal, mineral, timber, stone-tpiarry, petroleum II nd siilt producing lands in their choiee, and gives to the company, witli the consent of the Government, the right to select in the North \Vest TcnitoiieH any tracts of land not taken up in order to supply the deticioncy, and jmnides no proper means of deciding whether the alternate sections on tlie main liuf and branches should be accepted by the company ; and that the said contract ifl, in these particulars, unjust and impolitic ; — wliich was negatived. Mr. Anoun tlien moved in amendment, tliat the saiil lesohitions be no( now read a second time, but that it be Heaolved, Tliat llie contract respecting tlie Canadian Pacific Railway provides for a distril»ntion of the money aj)d land !i) l)e given for the work, wiiolly arbitrary and disjiroportionate ; that land and money, far in excess of the proportionate cost, is assigned to the j»rai)ie part, the easiest and inost productive portion of the railway, which it is alleged will be constructe«l within i) years, by whii'h time the compuiiy will be entitled in cash and lauds t) a surphis amomifing, according to the Govennnenl estimate of the lands at 1)2.18 an acre, to over J3t millions, which surplus KJiould liave been reserved and ap]ilied towards the construction ami working of tlie eastern and western ends, and that the said contract is, in tins respect, ol»jcctionabie : which was negatived. ; ■ ■ • . . . j Mr. Trow then moved in amendment, that the said resolutions be not now read a second time, but that it be liesolved, That the contract respecting tlie Canadian Pacific Railway exempts 2,'5 millions of acres of the choice lands of the company from Dojnhiion, Provincial and municipal taxation, until such lands are either sold or occupied for 20 years after the grant thereof from the Crown ; that such exemption is ujijust and will impose undue burdens on the settlers on the alternate sections, who will be obliged to make improvements and incur expenses, enhancing the value of the company's lauds without re- ceiving their fair share of the cost of such improvements and expenses ; that such exemptions by freeing the company from the burdens of taxation, will re- duce the inducements to the company to sell th«;ir lanes early, and will enable the company free of expense to hold their lands, till their value has Ijeen greatly enhanced by the labors of tlie adjoining settlers, and that tlie said con- tract is, in this respect, objectionable ; which was negatived. Mr. Patkrson (Brant) then moved in amenst expensive pavl« of the rail- of railway o pn)visioii my uj^iiinst aftic til' il)»- 'OHjjeet, t)l»- on.H li«> iiDi l»e (>blif,'e(l )f laml not i>t In; ciMii mpaiiy llir • elHf>wliei'f n 24 niile-^ , potrolciiiii ;, with the Trn'itoripH 111 provi(l«;^i iiiain liiD- ill coutrari ons be not [ respcf'tiii;; jy autl laii'l lit Ianil ill 11 ostiiualf loulil have he eastern ctioJiable : be not »)o\v (ectinj^ the le laruls <»|' luntil HHch t'roDi tli«' 'MS on the •ovements [itliotU re- ises ; that 1), will re- I'ill enable Iha.s been said con- fcsohitions itra«'t ra- le finality M»les the [he (iov- the rail- AMENDMENTS. 70 way, wliioli are to be built by CJovernmetit during' tli« no\l 10 years, and (jtnt Uie saiil conuaet is, in this respect, objectionaiile ;— which was no^^ativeil. Mr. RiNi-HKT then moved in amendment, that the said resolutions be n. I now read a second time, but that it i)e hesolreil^ That the coutiact respectini^ the Canadian Pacitic IJailway contains provision lor ceding to tlie company 25 millions of acres of choice lands in the North-West, but it does not, as it should, embrace any provision that such lands shall be open to sale to actual settlers at any maximum price ; that the aitsence of such provisKui will enable the com- pany to lock up the lands at their pleasure for a loni^ time, and so be injurious to the proj^ress of the country, ami ad,i taxation by tlie Dominion, or l)y any Province to be hereafter tstablisiieu, or by any municipal corporation therein. That the property of the corporation will be in substance a gift from the public ; and its exemj)tion from taxes is unjus(, creates an unfair incidence of fixation, and gives an iindue advantage to the company over otlier railway eompanies, calcubited to lU'eveut the construction of competing lin<'s, and the contract is, in this respect, objectionable ; — which was negatived. Mr. Pioss (Middlesex) tlien moved in amendment, that the said resoluti>)ns be not now read a second time, but that it be Rrxolved^ That the contract re- specting the Canadian Paeitic Railway >)rovides, that Parliament shall not have power to interfere with (he tolls, charged by the company, uidess the samd produce, first the working expenses of the whole line, mcluding the British (Columbia and Lake Superior sections, which working expenses comprise all expenses of maintenance of the railway and of the stations, buildings, work- shops and a])i)urtenances belonging thereto, ami the rolling-stock and otbev stock and moveable plant used in the working thereof, and also hire of engines, rents, charges and interest on lands not jniid for, and all expenses incidental to working the railway and the traffic thereon, including stores and all consumable articles, and also rates, taxes, insurance and compensation for accidents or losses, also all salaries and wages of persons employed in connection with the railway or traffic, and all office and management expenses, including directors' fees, agency, legal and other like expenses, and thereafter a profit at least of 10 per cent on the capital expended on the construction of the railway which in- chules the public money and the proceeds of the public lauds so expended, thus restraining Parliament fi'om interfering unless the company receives at least ^H,()00,00() a year profit, on a private capital of merely nominal amount ; that Parliament ought to have power to regidate the tolls on the railway from time to time, as and when the public interest recjuires, and that the contract is, in this respect, objectionable ; — which was negatived. Mr. ScRiVER then moved in amendment, that the said resolutions be not now read a second time, but that it be Rennlvt'd, That the c«ui(ract respecting the Canadian Pacific Railway j)ermits the couipany to lay out the line of tho railw;xy »h they may see fit, subject to the approval of the (.lovernor in Council, preserving only the following terminal point-- — Calan-er station to a point of junction with the Lake Sunerior section, ajul Selkirk to tlio junction with the western section by way of the Yellow Head Pass; that the latitude thus allowed ^ :t. #- 80 AlfEXDMEM'S. P would onalilc the eomiiiuiy to cUHect the line tliroii^^ii the prairie country in such a iDitniKT us luryelv to detV-at the nmin ohject of istahlishiuij a ^vi'nt central roi il thronjili the Nortli-West, us is proposed l>y the route now adopted: that ))0 HuhHtaiiliiil chaii^i^e slionld be made in tiie route without the Kuuction ol° rarhamen). !\»ul that the eoutraot i». in tliis respect, olyectiouable ;— wliicli was ue;,'H ived. Mr. GuTHKrK then moved in amendment, tliat the said res(dntion» he nof now rend tl»e second time, hut tliat it be Rcnoh'cd, That l>y the ('ouRohdated Ilaihvay Act, 1870, it is provided that every liv-hiw fixinjif and rej,'uhitinf^ the tolls to he taken hy a railway company, sliall l>e .subject to revision by the Governor in Council from time to time, after jiliproval tliereof. That the exercise by the Governor in Cotnicil of tJio power of reducingf tolU uiiiler tlte said Act, is by tlie contract respectinj^ the Canadian Pacific Railway, hniiled as re^'ards the said company to s;icli extent, that the tolls when reduced Khali not produ(;e less than li) pry vent per annum profit on the capital actually expended in tlie construction of the railway, and that the net income of thn company horn all sources shall not be less than It) per cent on the capital so expended. That tlie Governor in Council should have in the case of the Canadian I'acific Uailway Company the same unrestric'^ I power which is possessed in the ease of such other railways of revisinj,' from time to time, a3 the public interest may re(piire any tarifl' of tolls, and thiit the contract is, in this particu- lar, oltjectionable ; —which was negatived. Mr. CASdK.viN tlieri moved in amendnient, that the said resolutions he not now rt-ad a second time, Ijut that it he Resolved, Tiiat tlie contract respectinji the Canadian Pacific Railway makes )io provision for the establishment of an e\ecutive couuiiission or other machinery for regulating the tolls and seem'ing prober accommodatioJi to the pul)lic on the railway, which is to he built practi eally at the puldic cost ; that such provision should be made, and that the con tract IS. in this respect, ol\jectionai>le ; -which was negatived. Mr. C.vMKKON (Huron) then moved in aniendment, that the said resohition^ be not now read a second time, but that it he Iii'solr>'tl, That the contract respecting the Canadian Pacific Railway, laid on the table, does not. as it shouhl, provide for the running powers for tlu- (^►u'^liec. .VIoutreal. Ottawa and Occidental Railway, md for the Ontario and I'acific Junction Railw 'y, over the 6;$ miles from Nipissiug to Sturgeon River, which form the line comnioi\ lo the through line, and the Sault Ste Marie line. .\nd tliat the contract does not make satisfactory provision for securing thr trafiic to ajid from .Montreal and the East by the Quebec, Montreal, Ottawn and Occidental Railway against preferential charges which the (^madian Pacific Itiiilway may establish in favor of the Canada ("entral Railway, the St. fiawr enc(^ and Ottawa ILiilway, the Coteau Railway, or other lines of railway to tlie South and I'last, nor against the preferential charges which it may be the in tercst of the ('anadiau Pacific Railway to establish, in case of the autlu>ri/ed and ctuilemplated ac(piisiliou thereof of, or amalgamation with, or of the iiso of running powers over the Canada Central Railway, nor in the case the Cana- dian Pacific Railway amalgamates with, or obtains running powers over tin- St. liawrence and Ottawa Railway, the Coteaxi Railway, or any other railway running South or East. Nor do(>s the said contract make satisfactory provisioJi for .securing th< tratVic to and from Ontario, by the Ontario and Pacific .Innction tiailway, against the prej'ercntial charges wliich it may be the interval of the Can:' 'H" Pacific Raihvav lo estaldisji in the event of the authorizeil and contemolaieil W7&,-w.: AMENDMENTS. SI ions Iw 11(1? time, aftfj- rosohitjojis ■al, Ottawit _r lailwav ltPiunlact''l aw^nlRllion of,oif iunali^'amatiitn \vitli,or us« vjf niiiDiii^' pinvcJS ovor.tlu' l'iina•• not now i-ead the second time, hut that it l»e Befiolvr)!. Tliat the (>fr. FisKT then ujoved in amendment, that the said resolutions be not now read a second time, hut tliat il be Resolved^ That t)»e contract resi>ectinjij iho Canadian Taciftc Hailway makes no sufficient or satisfactory provision for the ronstructiou of the work in a proper manner, or its efficient operation after- wards, nor does it, as it should, provide that so much of the work, as is done l>y the company, shall, in case tliey make default in completing the railway, belonjj to the Government, and that the contract is, in these respectvS, objectionable;-- M hich was negatived. Mr. LaHuk then moved in aun-ndment, that tl»e said vesohuinns he noi »iow read a second time, hut that it be liaolvcd. That the contract n-specting the Canadian Pacific Railway makes no provision for the creation or continii- Huce of a substantial Canadian interest in the stock of the company, nov does >t guard against the transfer of a controlling interest to forcignei-s at any tinio of the incorporation of the company, and it provides that the eompan>- may appoint and fix phices of l)usines8 Iteyond the limits <»f Canada, where tli'' bnsi- ii»;ss of the compai«y may he transacted, and at wliich the directors and share- holders may meet ; tliat under this provision the important business of the eompany may be transacted, and its directors and slmreliohh'rs meetings held in St, Paul, Minnesota, or New Y>'n']<;, or elsewhere in the I'nited Statis ; thsn. -^uch power should not Ite given, and tliat the contract in this aspect, is oh- jf'ctionable ; — which was negatived. Mr. KiNc then moved in amendment, that tlie said resolutions be not now read a second time, but that it be Resolved, That the contiaci rwspecling the Canadian Pacilic Railway pro- vides as a standard whereby the (piality anme memlitrs of the Syndicate have expressed their intention to abide by the standard of the IJnion Pacific Kailway, as it was in February, 1873, — that this letter is not binding on the projected companj', — that neither of the said proposed standards is satisfactory, -that there are objectionable details in the construction of the I nion Pa<;i6o liailway, — that the conformation of the ground on the route of the Caniuliiii! I^acific Railway admits of much better alignments and grades than those of the Union Pacific Railway, — that this was recoguizerl in the c«mtract ma'^ ? by the Government with Sir Hugh Allan and others in 187H, tvhich provided in this respect, that the Union Pacific Railway should not be the standard wilii respect to any minor details in .its construction and working, which may be found objectionable, and with respect to its alignments and grades which shouM be as favorable as the nature of the country will adnsil without undue exiu'iidi- 'rn»ii"ii iiiiiin i nniiiniiiriiwiiiiiiitui i I'lin i' niiii i m iii iniPiii II iii ii iiiiiiiii | ii I III I III Hi l l III iiii|ii ii ii i |inmj; . I II 82 AMr:NI»MENTS. W : turo, — that tilt- conlracf ami letter on the tahle coutuiu i o .^uch provision, ani provide ii stididard lower tliun that of the Allan contract, nnsnitable to tht- country, and cnlcnluted to secure an inferior railway. --that tlie condition of the L'nion Pacilic IJailway was very diflferent when first constnicteil t'ronj its condition in February, 187i!, and its present condition is .ilso very different I'roni its condition in l''ebrnary, 1873,— that in order to apply its former condi tion U8 a standard for the Canadian I'acitic Railway, it would be necessary ti> enga;^e in an in(iuiry us to what its condition actually was n>any years Hf,'o. And this renders the proposed standard unsatisfactt)ry, and that the contract is. in tiiese reapects, objectionable ; — which was nej^atived. Mr. M.U'DONNKiJ^ (Inverness) then moved in amendment, that the .said re solutions be not now read a second time, but tliut it be lie.ioloed. That tiie con- trad r^spectin^ the Canadian I'acilic llailway does not preserve to the (iovern menl the rij^ht to j^ive to other corporations running powers over the Thundtr I5ay line and the Pembina branch : but improperly cedes to the company tin- absolute and exclusive rij,'ht to these avenues to the Xorth-West, and the said contract is, in this respect, objectionable ; — whicn was negatived. Mr. Casky theu moved in amendment, that the. said resolutions \>e not no* read a second time, but that it be Rcnolced, That the contract respecting; the Canadian Pacific Railway makes no provision for the Government havinj,' a rij^ht. at its option, to actpiire th(' railway on proper terms, having regard lo thn amount of public resources invested in the enterprise ; that the public security may re([uire the exercise by the Government of such an option, an. I that the right should be secured by the contract, which is, in this respect, oiijeclionable ;— -which was negatived. OPINIONS OF THE PRESS :o: Ontario liefotnmr, Febrwirif bt't, 1881. MK. F. W. GLEN'S CANADA PACIFIC P.AILWAY SPEECH. The following letter, published in the Afnil, was written by Mr. William Lukes, formerly of Newmarket, but now of Toronto, who has been engaged in the produce business for many years — a man who should be well iutormed on the subject, and, therefore, we are- compelled to believe that in writing the letter, he was inspired by a desire to make a point in the interest of his party rather than in the interest of the farmers. He pays • "The utterances of the member for South Ontario, as reported in the GIol"' of to-day. on the syndicate are amazing, and calculated to mislead the public on the (piestion, especially as the same are endorsed in your Parliamentary summary as l>eing replete with valuable statistical information bearing on tll^• (inestion. Mr. Glen says the crop (»f wheat in the United States was 4t)().0(M).- UOO bushels last year, and that the saving of one cent per bushel on freight in- sures the farmers of the United States a profit of $4U.()00.(MK). and that the fiv, cent^ saved in the C03l of transport ition is a. ch-ar gain v'i *"iJl»,tHH>,(»0(i t.' ihr OPINIONS OF THE TRESS. 8:J i»vi>ioM. ail' I table to tilt- [•onditiou of :e(l frojn its 'jy (lifVereiit riuer condi iccessary to r years h<,m. ihe contract the .said re liat the ct>ii- the Govern he Thiuidtr Dinpany thi- riid tlie sail! I be not iiovv ■ipeetiujj the lit having' ;i ng ref^ard to t the public option, an.l :his respect. ESS, SPEECH. Lr. William Miga^ed ill » formed on a-itiii"; the his party the Gh>h>' [the piildic Jiamentary \\\% on the Is 400.001 ).- JVeifjlit ii(- lat the fivi |>00 t.« the producer in a .sins;le year. These figures need no comment, being so utterly eiToneous, but Mr. Glen'a arginnent is so fallacious as to require contradiction. He assumes that the entire crop ip being transported, which is far from correct. There are deductions to be fairly made, such as the amount recjuiretl for seed and home conflumptiou for the farmer and those depending on hiiu, which i» never subject to any freight or railroad transportation whatever, being carried to mill by his own teams. Again deducting the amount as used by the above from '250,000,000 bushels, as the consumptive demand of the whole people of the United States, the balance is cariied as local freight, oidy leaving Bomething like 50,000,000 or 60,(tOO,000 bushels to be carried as through freight, on whicii the calculation should be made. Mr. Glen says that our farmers are paying a iluty of thirty per cent, upon the implements reijuired to gather their crops. I think this requires an explanation, as I and many others are not aware that such implements are but little if any dearer than before the era of the N.P. It is certainly due to the public that the lion, member should correct or substan- tiate the matter referred to." We have befoi'e us Mr. Glen's speech as reported in the Hansard^ and find that the forty millions above referred to should be four millions, and the two hundred millions should be 20 millioTis. It is simply a clerical error in tele* graphing the speech and needs no further comment. If Mr. Lukes will refer to the present tariff he will find that Mr. Glen is correct in saying that the duty upon agricultural implements is thirty per cent. If he (Mr. Lukes) had exuia- ined the statement oi the exports from the United States he would have learned that there was exported from that country for the year ending June 80th, 1880, one hundred and sixty million bushels of wheat, allowing five bnsliels of wheat for each barrel of flour exported ; instead of, as he would have us believe fifty or sixty million bushels. We are surprised that a grain dealer, so rea.iy to rush into print, should show such utter ignorance t.f the subject he discusses so glibly. But the chief point in Mr. Lukes' letter is his attempt to show that a reduction in freight only affects the value of the wheat actually exported from the country. He (Mr. Lukes) knows perfectly well tliat the price in Liverpool controls the price in every local market in Ontario, that the price in I^iverpool is cabled every day to Montreal and Toronto, and that the buyers throughout the countiy receive information daily from their correspondents in Toronto and Montreal. If the price falls in Liverpool, it falls promptly in Montreal, To- ronto, and the local markets throughout the country. If it rises in Liverpool, a rise takes place in the Canadian markets ae well as the markets in the United States. The price in Liverjiool, less the cost of transportation, fixes the price in Montreal and Toronto and likewise in the local markets. If there is a fall in freights there will be a rise in prices ; if there is an increase in freights there will be a fall in prices in all the markets in the country. When ocean freigiiis on cattle rose to a very high point, last winter, it reduced the price that the buyers were able to pay the farmers for cattle. As there was no coirespondiug increase in the value in Liverpool of cattle, it was necessary that the price here should be reduced, othei'wise the buyers would have lost the increase in rates of freight. If wheat is worth $1.15 per bushel in Oshawa to ship abroad, it is worth just the same price in Oshawa to buy and grind for local consumption. The miller who buys for local consumption pay^^ no more nor any less than the dealer who buys for exportation, so that the foreign market fixes the price, nut only for what is shipped abroad but the price the farmer receives for what is consmned at home, whether he sells it to his neighbor for seed, or to his neigh- bor, a miller, for local consumption, or to his neighbor, a produce dealer, for exportation. Any reduction in the cost of transportation increases the prico the famier will get, not only for what is exported, but for all the crop he has for sale. This is a fact so well known to all farmers that we wonder a gentle- I w 9 84 OriNIONS OF THE PRESS. SI ik 1 I I mail of Mr. r.uke>' pi-ac'tical knowlcd^'e of tlie (>ra.in business rIiouM have vvritteii ko (lisinKfuiiong a letter as lie addressed to the Mail. The cost of transportation includes freiglits, interest, commissions, risk, and a reasonable profit for the sen'iccs rendered by the shipper.. Mr. Glen was (piite ri<,'ht in sayiu>( that, if the wheat crop of the United States was four hundred miUion bushels over and above the amount consumed by the producers themselves, a reduction of one cent per bushel in the cost of transporting the surplus to Liverpool would be e([uul to a gain to the farmers of four million dollars, and consequently a reduction of five cents per bushel was equal to a gain of twenty million dollars per yeur ui)on the wheat crop alone. If the farmers of Ontario produce twenty-five million bushels of wheat over and above the amount they themselves consume and one cent per bushel is saved in tranpporting it to market it is an additional profit of $250,000 per annum. If five cents per bushel be saved in the cost of transportation it is a clear gain of $ I, '250,000. If all other surplus agricultural ju-oduce, animals and their products, the produce of forests and mines, is e([ual to three times the surplus wheat crop, a savitig in the cost of transportation on the whole at the rate of one cent per bushel on wheat would be worth one million dollars per annum to the producer> of Ontario alone. A saving at the rate of five cents per bushel on wheat woul "" be a gain of five million dollars per annum, or one hundred million dollars in twenty years. Upon the same basis, in addition to this enormous amount there would be almost, if not quite, as much saved by a like reduction in the cost of transport- ation \\\yov) all the goods, inerchaudise and products consumed in Ontario. If a farmer in the North-West produces over and above what he consjunes products of all kinds ecpial to two thousand bushels of wlieat and in transport- ing to Liverpool, — its ultimate market, — the cost of transportation is reduced equal to five cents per bushel, he gains one hundred dollars. If this sum is put at interest at seven per cent, and the same amount added each year for thirty- one years, at the and of that period he will have $10,i'05, which is far more than the average farmer of the older provinces is worth over and above his liabilities at seventy years of age. So that a sum eipial to five cents per bushel on wheat saved in the cost of transporting the surplus agricultural products of the North-West to market is more than the average net savings of all our farmers. If the Syndicate only exact five cents per bushel more than they should exact for transporting the surplus proilucts of the North-West te the seaboard, they will take from the farmers an amount greater than their entire average net earnings. The St. Paul and Manitoba Bailway Company, owned by the most active members of the Syndicate who will control its policy, now exact for transport- ing wheat from Winnipeg to St. Paul at least twenty cent; per bushel over and above a liberal profit upon the cost of transportation. The offer made by Sir W. P. How 'and and his associates gave the Govern- ment entire control over the tolls to be charged by the company, and in this Kspect alone was worth millions annually to those who settle in the North- West, as compared to the contract made by the Government and Mr. Geo. Stejihen and his associates. The more the subject of railway transportation is investigated, the more clearly is it seen to be the most important commercial question of the present Jay. When counties, cities, towns and villages are granting bonuses upon such OHNIOXS OF .THE HlESS, iliould have The cost of I reasonable the United t consumed in the cost the farmers per Imshel wheat croi> 8 of wheat per inishel i50,(>0() per tion it is a odticts, the eat crop, a e cent per ? producers 85 I»urt of tlie Dominion Govern, i, 7 '!' . 'T'\"''''' *"^» ^"""""1 "I'oo h. perpetual monopoiroverthe c"mi,t tlt'n '" ^'* *** I'^^rliani.nt an'ahnost ed iu our NorthSvWt A« MrOle^Mnll °^'*' -^'^/.'^ '""'^'^'y *« '« «"'»Pn«- milway transportation ifi more hm oH,. n i^ T^ '" '\!« .«P^^^*''' the question of tion. We trust it is a % Sc tK^^^^^^ ««• '"''i'"^'^'* taxa- l.roducers and consumeiN Sp F^r '*'''*^1''^ ''^^ ^"'■"^'•'t attention of the t-presentativesTriSment a c^areful'^i'nT"^ ''ff '^'''' ^'" •^*^'"«"'' «' '^'"'^ - Win p.teet .hem A^n/^ .^i^ ^l^^J^^i^Jl^EiC^ ^"^' ^"'^'" a gain of ?uty years. ? would he transport- :ario. consumes transport- 8 reduced lum is put ■or thirty- far more above his )er bushel •oduots of )f all our ;han they 8t te the leir entire )st active rausport- over and ' Goveru- d iu this e North - Mr. Geo. he more ■ present pon such