N> IMAGE EVALUATION TEST TARGET (MT-3) 1.0 1.1 Ki|21 125 ■tt iiii 12.2 :^ U£ 12.0 M 1 = III— IJ^ < 6" > HiGtogFaphic Sdences Corpjration 23 WBT MAIN STRUT WIBSTIR,N.Y. 14StO ( 71* ) •72-4503 CIHM/ICMH Microfiche Series. CIHIVI/iCIVIH Collection de microfiches. Canadian Institute for Historical Microreproductions / institut Canadian da microraproductions historiquas Technical and Bibliographic Notat/Notas tachniquat at bibliographiquas Tha Instituta has attamptad to obtain tha bast original copy avnilabia for filming. Faaturas of this copy which may ba bibliographically uniqua, which may altar any of tha imagas in tha raproduction, or which may significantly change the usual method of filming, are checked below. □ Coloured covers/ Couverture de couleur I I Covers damaged/ D D D D Couverture endommagte Covers restored and/or laminated/ Couverture restaurte et/ou pelliculAe I — I Cover title missing/ Le titre de couverture manque □ Coloured maps/ Cartes g6ographiques en couleur □ Coloured inic (i.e. other than blue or black)/ Encre de couleur (i.e. autre que bleue ou noire) I — I Coloured plates and/or illustrations/ Planches et/ou l^iustrations en couleur Bound wit ReliA avac u Miar material/ .eras documents Tight binding may cause shadows or distortion along interior margin/ La re liure serr^e peut causer de I'ombre ou de la distortion la 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 ajoutAes lors d'une restauration apparaissant dans la texts, mais, lorsque cela Atait possible, ces pages n'ont pas titi filmAes. Additional comments:/ Commentairas supplAmentaires: L'institut a microf iilmA la meilleur exemplaira qu'ii lui a 6tA possible de se procurer. Les details da cat exemplaire qui sont peut-Atre uniques du point de vue bibliographiqua. qui peuvent modifier une image reproduite. ou qui peuvent exiger une modification dans la mAthoda normaia de filmage sont indiquAs ci-dessous. I — I Coloured pages/ n ^ D D Pages de couleur Pages damaged/ Pages endommagtes Pages restored and/or laminated/ Pages restaurAas et/ou pelliculAes Pages discoloured, stained or foxed/ Pages dAcolortes. tachaties ou piquies Pages detached/ Pages dAtachtes Showthrough/ Transparence I I Quality of print varies/ Quality in^gala de ('impression Includes supplementary material/ Comprend du material suppiAmentaire Only edition available/ Seule Mition disponibie Pages wholly or partially obscured by errata slips, tissues, etc.. nave been refilmed to ensure the best possible image/ Les pages totaiement ou partieilement obscurcies par un feuillet d'errata. une pelure. etc.. ont At* fiimAes A nouveau da fapon A obtanir la meilleure image possible. Tl to Tl P< o\ fil O b( t» si oi fil si OI T si T VI M d! e( bi ri ri nr This item is filmed at the reduction ratio checked below/ Ce document est filmA au taux de reduction indiquA cl-desaous. 10X 14X 18X 22X v/^ 20X 30X 12X MX »X 24X 28X 32X TIm copy fllm«d hora hm bwin roproduoMl thanks to th« gonorosity of: DouglM Library Quaan's Unkvaraity L'axamplaira film4 fut raproduK grica A la ginAroaltA da: Douglas Library Quaan's Univarsity Tha imagaa appaaring hara ara tha Isaat quality poaalbia eonaidaring tha condition and laglblllty of tha original copy and in kaaping with tha filming contract spacif Icationa. OrigSnal copiaa in printad papar covara ara fllmad baginning with tha front covar and andtng on tha last paga with a printad or iliuatratad impras- aion, or tha back covar whan approprlata. All othar original copiaa ara fllmad baginning on tha firat paga with a printad or iliuatratad impraa- sion, and anding on tha laat paga with a printad or iliuatratad impraaalon. Laa imagaa aulvantas ont 4t4 raprodultaa avac la plua grand aoin, compta tanu da la condition at da la nattat* da l'axamplaira f ilmA, at an conformM avac las conditions du contrat da fllmaga. Laa axamplairaa originaux dont la couvartura en papiar aat ImprimAa aont fllmte an commandant par la pramiar plat at an tarmlnant salt par ia darnlAra paga qui comporta una amprainta d'impraaaion ou d'illuatration. aolt par la sacond plat, aalon ia caa. Tous laa autraa axamplairaa originaux aont fllmte an commandant par la pramlAra paga qui comporta una amprainta d'impraaaion ou d'iilustration at an tarmlnant par la darnlAra paga qui comporta una talla amprainta. Tha last racordad frama on aach microficha shall contain tha symbol — ► (moaning "CON- TINUED"), or tha symbol V (moaning "END"), whichavar appiias. Un daa symbolaa suivants apparattra aur la darnlAra imaga de chaqua microficha, salon la caa: la symbols -^ signifia "A SUIVRE", la aymbola Y signifia "FIN". Maps, plataa, charta, ate. may ba fllmad at diffarant reduction ratioa. Thoaa too large to ba entirely Included In one expoaura ara filmed beginning In the upper left hand corner, left to right and top to bottom, aa many framea aa required. The folSowing diagrama iliuatrate the method: Lea cartas, planches, tableaux, etc., peuvent Atre fiimis A des taux da rMuctlon diff Arenta. Lorsqua la document eat trop grand pour Atra reproduit en un aaul cllchA, il eat f iimA A partir da i'angle aupArlaur gauche, de gauche A droite, et de haut an baa, an prenant la nombra d'images nteessaira. Lea diagrammea auivants illustrant la mithoda. 1 2 3 1 2 3 4 5 6 m Mm ":t!xrn::;'*':*-' I i\l;i.i Ik- / 7:.: y C •^ -%^ "^ P^.A^'i le rti^ults would arisi- from the laying down of a third rail, so as to accommodate American IraHIe without break of gituge, on the western portions of the Grand 1'runk. They would be gUd to learn between what points such a third luil (if desirable at all) eould be laid with most advantage, tin- probable cost, and the probable lime to bt; oecnpied in comi)leting the work. You will huirn the results (»f the Traffic arrangement of March i^last with the (Ireat AYestern of (Janada Railway, and you nnty probably bu uble to make suggestions for further etfective arrauge- jncuts of a siniilMr mutual and amicable kind with that or other Com- j(i lilies. It is tlu' d'.sire of the Directors that all the tojncs referred to in tlds letter should be (liscussed by you in the freest manner with 3lr. Hiiydges. Mr. Ilickson. and the statf in Canada, and should be reported llpou by you jointly to the Board in London as early as possible after your retun-. lo this eouiitiy. * As you are both fully aware from the repeated personal interviews %hieh have taken place with yon, the object of the Board in asking you |i» favour them and the Company by uiulertaking this mission, is pminently and purely prticttcaf. The Directors feel that the American '^''ar has plunged the Company into most severe, prolonged, and pei-plexing difficulties, has defeated the most careful calculations, and has disturbed '|lans of policy apparently framed in the most cautious spirit. " Tiie Board tlesiie tluit the Bond and Shareholders should have atibrdcd |i> them the soundest and most independent means of judging whether the Ijest course has been followed in dealing with these new, embarrassing, and unforeseen events. Ajid theretbre it is that you have been requested to ]>roceed to Canada, and to api)ly your previous large experience, and the new facts you will there collect iji disctissing with the Executive of the Company on the spot the present stjite of the property, and tlie most certain and economical means of increasing the revenue, and lessening the ex]>enditure. The Secretai'y will forwaid to you a complete set of Beporis. Acts, tkc, rekting to tlio Conijiatiy, iUid llu! Ollircvi will s)ii»i»ly iiiiy iuloriuatiou necessary ior the j»ur|)ose« c»f your mission, sul>ject, »•!' coxirso, lo tho condition that siuch information is to be regarded by you asconti between Ohicrf/o and For Hand by the Michigan Central and Grand Trunk Railways is 1,145 miles. The dista*^^es bet^ 'en CJdcago and Boston by the various ampei ig lines ame ; — HHSS!' ^n^ 10 CAPTAIN TYLEK—REPORT on via Portland ... Grand Trunk Railway ^ vkf A^ormont Ctn- " I tral Railway,.. 1,187 Great AYcstcrn and New York Central Railways Lake Shore and Erie Railways Pennsylvania Central Railway, via Pitts- 1,253 miles. jj 1,016 „ 1,195 „ burg 1,145 miles. 1,240 „ 1,487 miles. 989 Baltimore and Ohio Railway ... ft" The distances from Chicago to New York are : — Grand Trunk Railway, r/ia Michigan Cen- tral Railway and Portland Grand Trunk Railway, i-ia Michigan Con- tra! Railway, Buffalo, and New York Central Railway ... Grand Trunk Railway via 3')etrcit, Buffalo, and Erie Railway would be Great Western and New York Central ... Pennsylvania Central Railway ... Baltimore and Ohio Railway ... By Toledo, Cleveland, and Dunkirk By Crestline and Dunkirk By Mansfield and Salamanca ... ,1 965 960 918 1,012 960 957 976 Agencies. The competition thus continually carried on for traflBo has led to the extensive employment of " Agencies " on the part of these various companies. The Grand Trunk agent at New York, Mr. Beach, sells passenger tickets, makes contracts for freight, and exercises a supervision CONDITION AND PROSPECTS of LINE, 1867. 11 53 miles. 87 „ 16 „ 95 „ 45 miles. !4r) „ 187 miles. )89 )65 )60 ns )12 ^60 357 976 3> ibr traffic ncies " on ind Trunk er tickets, apervision over other agents. There are Grand Trunk offices at Bangor, Boston, Buffalo, Chicago, Detroit, Milwaukee, New York, and Ogdensburg, with an average of three paid agents for each office. The paid agents make the greater number of contracts for Ereight, and there are about 30 sub-agents in communication with each office, employed principally in the sale of Passenger tickets. The cost of these agencies in the States and in Canada, as charged in the accounts for the past half-year, to 30th Juno, 1867, was £8,804, against £9,70i for the first half- year of 1866. The charge for the year 1865 was £18,903 ; for 1866, £19,591. The amount of traffic obtained by them for tlic year ending 30th June, 1867, is estimated at $898,000, or, after deducting the proportion to other companies, at about £100,000. Other companies adopt similar measures for obtaining traffic. The Baltimore and Ohio, and the Pennsylvania Central Railroads have agencies at Portland and even at Bangor, the former being 500 and tlie latter 650 miles to the north of Philadelphia. The Great VV^estern llailway Company charged in their accounts for the past half-year £3,54^1, and for the first half-year of 1866, £4,695 for adver- tising and agency. Any fusion of the Agencies of lihc Grand Trunk and Great Western Companies, in the event of more intimate relations being here- after established between them, would naturally lead to a joint arrangement also with regard to the ngencies of the Michigan Central Company, which are already combined in some places with those of the Great w 13 CAPTATN TYLER— REPORT o\ 1 Western Company. These thres companies would thus be in a better position to compete economically with the combination of the "Michigan Southern, and Lake Shore" and other railroads. The Agency Expenses in- curred in the competition between the Grand Trunk in its own behalf and the Great Western Company in opjiosition to it, would cease. Tlic proportion payable by the Grand Trunk Company for agency falling to, say one-third of its present rate, the per centage of agency expenses to nett profit (gained upon low rates), and the commission upon passenger traffic (which now amounts to about 20 per cent, on the receipts), would be materially decreased. And more remunerative rates for freight east and west would be established. Express Companies. -American Lines. The employment of Kvpress Companiea is another feature in the workino? of American Kailwavs which must not be lost sight of in considering the question of competition with them, and the difficulties of avoiding it. These companies were originally formed with the idea of facilitating (in the absence of through-rates between the different Railroad Companies and clearing- house arrangements), the conveyance of traffic over continuous si/stenis of different lines ; and they have in years past been a source of great profit. The officers of the railroad companies are, as share- holders, in many cases directly interested in their suc- cess, and they have made advantageous terms with the railroad companies. They assist in advertisinsj the .^ •uld thus with tho nd Lako tenses in- ink in its pjiosition he Granr 100 ]' 1 1 2 4 1 2 :i 1 1 2 .". 4 1 1 2 ' n 1 C. C. V. c. 0. ('. c. c. c. c. c. e. ; 1 e. c. e. 20 i;] 12/, ]'2h 20 20 111 17^, .".:» 25 2.-'. 20 in :io 27 These rates average )er ion of 2,000 ll.s. ii? c. !i? c. s? 0. i? e. J^ c $ c. !-> cJ ij^ c. !ii< >< e. i'^ c. >' e. 8 e. }? e. $ <■. O.T) ' ]."•!• J.^' ]■".» i i j 1 ] .">ll ■[ .'.HI 1 ."I ■ ] .'ill "1 .>-'i j.'ii ] .'jii i.M 2.'« ].:^.' 1.:. During' the past summer the Passenger fares on the Pviviei'e du Louj) section were as low as 1 i'',fu ^^^^ ^^^^ ly-J,; cent per mile; between Toronto and Detroit Ivckf ^^^^^ PPI' i^^ilc ; between Montreal and Poinl Levi (for first-class passengers) 1-yJ\, cent per mile ; between Detroit and Portland only $9.50, or ly^J\, cent per mile. And during a short period of eompetition with steam- boats they fell to i;f',y of a cent p(H' mile. ri Working Expenses and Earnings. The Working Expenses, including discount on Ameri- can currency, amoimted for the year 1866, as accurately as can be ascertained, for Passenger train§ to $1,02 per train CONDITION AND PROSPECTS of LINE, 1867. 17 LOXnON 4.')1 Miles. Hiltc ])or 100 I: 2 .'} 1 f. C. C. I I I I ^ c. 6 0. $ V. 3s on tlie cent and I Detroit *oinl Levi between per mile, til stoam- n Ameri- irately as per train mile, and for Jreight trains to $0.97 per train mile : or, for tlie wliole, to 99 cents i^er train mile. The total earnings lor the same year readied $1.44i for passenger trains, and .^1.29 for freight trains, or for the whole $1.36 per train mile. The working' expenses for that year, which were 69.05 per cent, for the lirst half, and 76.15 per cent, for tlie second Jialf, averaged 72.9 per cent, of the gross receipts. The ri^snlts of the first ludf of the current year — 18(37, wore still more discouraging, inasmuch as the total working expenses amounted (including disconnt on cur- rency and renewals) to 85 per cent, on the gross receipts. This unfortunate result was owing to a falling off in traffic after the defective Harvest of 1866, to the rise which occurred at the same time in the price of labour and the cost of fuel, to the heav\' charges for renewal and maintenance, and to certain contingencies. Tlie expenses on tlie Grand Trunk Eaihvay per Traill Mile ar(^ light in comparison with those on other railways in Canada and the United States, though not with these* in England, being, as stated, 8().9i) for the year 186(5,— against ^1.10 for the Great Western of Canada llaihvav — ^1.51 for the Michis-an Southern Railway, — ,^1.83 for the New York Central Railway, — .sl.70 for the Erie Railway, — J^l. 41 for the Illinois Central Railway, — .S5O.97 for tlu) Northern Railway of Canada, — Sl.82 for the Chicago, Burlington and Quineey Railway, — and 2s. 5kl. for the United Kingdom. Rut the (earnings arc also light as com- pared with most of those lines, being, per train mile, only i^l.3ii for the Grand Trunk Railway, — against I'l f IS CAPTAIN TYLEll-llEPORT oi $2.37 lor the Great Western Railway,~82.37 ibr the Michio'an Southern Jiailwav, — $2.36 I'or the New York Central Kailway— .^2.18 lor tlie Erie Railway— $2.11 lor the Illinois Central Railway — Sl-lSfof the Nortlierii of Canada Railway — j^3.34 ibr the Chica£>o, Bur- lington and Quincey Railway — and 5s. 1-Jd. Ibr the United Kingdom. 'Hie average number of Cars in the freight trains is estimated at 15 1, and the av(;/age nett load of (*ach train at 1 50 Canadian tons of 2,000 lbs., the Throui;'!) fi-eiiyht traflic beinu,' y-eneralh- carried in heavier, and tlie Local freiglit traflic in ligliter trains. The average number of Passengers per train in the year 1866 was, as nearly as can be ascertained, 120. The? nett cost of conveyance per mih* for each ton of goods was, on this calculation, 0.65 of a cent., and for eacli pas- senger 0.85 of a cent ; deducting these from the Earnings there was an average profit in tliat year of 0-35 ol' a cent., or a little over 29 per cent, on each passeiigc r, and ()'21 of a cent., or a little over 21 per cent, on eacli ton of goods. I conclude^ both from the figures and explanations which I liave received,, and from personal observation along the line of the railway, that the Working Expenses have, under the circumstances in wliicli the Company was placed, been kept down as much as possible, and that though the rates and fares have in many cases brought in but very little profit, yet none of the traffic has unless in certain exceptional cases been actually carried at a loss. The above per centage to the receipts may, how- ever, be reduced in the future. The comparative cost 1 CONDITION KMi PIIOSPKCTS oi LINE, 1867. 10 I'or the i^w York -$2.11 J^ortliern -), Bur- ibr the Curs ill 000 lbs., Tied in • trains, tlic year rhe nett [)(h was, cli pas- ilarnings 35 of a ^(H', and aeli ton inations [}rvation xponses ompaiiy )le, and y eases affic has irried at y, how- ive cost 6f Maintenance ought to be considerably less when the Permanent Way and Rolling Stock (as I shall show here- after) are in bcttei" condition. The general expenses iVill bear a smaller proportion to the receipts as the traffic increases. The passenger trains, which are at a minimum, averaging two trains a day each way, will be better filled. The loss which the Company noAv suiters jinnufilly in maintaining and working the line from (Quebec to Kiviere du Loup, will be converted into a prolil after tiie opening of the Intercolonial Railway. The cost of Labour and Materials, whicli have been ijitlated as a result of the War in America, will sooner or later fall to sometliini>' like their normal rates. Peat J^'uel will be cheaper than wood. The Freight cars which now weigh ten tons and carry ten tons of load, may be so constru(.*ted in future as to carry a greater proportion of nett load to dead weight, and a step has already been mad(^ by Mr. Eaton, the Locomotive Super- intendent, in this dir(?ction. The costs of Agency will be decreased when ihe. time has arrived for an amalga- mation of interests with the Great W^estern Railway, and for working arrangements with other lines. On the other hand, the Nett rates and fares for foreign traffic will improve as the loss by discount on American Currency (to which 1 shall hereafter specially refer) de- creases. They may 1)e somewhat raised at the same time that the traffic will improve as increased facilities are afforded for its conveyance, and when the Road and Rolling stock, being in better condition, find greater favour Avith, and gain greater confidence from, the 2a CAPTAIN TYLER -llEPORT ox ;:!:'' i'Ul travelling public. The settlement of the countiy, and the further development of its resources will tend to- wards the same result. They will be raised to some extent when it becomes possible to make tariff arrangements for the avoidance of competition with other Companies ; and a groiitly increased mileage lor the joint traflBc would also be obtained by a fusion of interests with the Great AA'estern Company. There will, apparently, bo difficulties in th«3 way of making arrangements with the American Companies for some time to come. The various Through rates from Chicago to the -Sew Englaml States are in the hands of numerous (altogether about thirty) Com- panies, with diverse interests, more or less bound to express Companies, and unable to agree with each other. They have all been, and are still, com- pelled to charge low fares, ])ecause the New York Cen- tral Railway is not permitted by law of the Stat(5 of New York to demand more than 2 cents, in Currency per passenger per mile between Buflfalo and New York. This fare was exacted as a maximum from the New Y^ork Central Company when the amalgamation of the lines from Albany to Buflfalo and Suspension Bridge was sanctioned ; and it has borne very hardly upon that, as well as upon other Companies, from time to time, but es- pecially when gold was at a much higher premiimi. The Company have twice succeeded in passing a Bill through the Legislature of New York for the purpose of evading this obligation, but it was in each case vetoed by the Governor of the State. [try, and tend to- to some e tariff ion with cage lor Vision of ! way of impanies gli rates are in by) Coui- ) bound •ec with 11, com- ork Cen- Stat(5 of 'urreuey w York, he New of the dge was that, as but es- m. The hrough evading by the COjS^DITION and prospects of LINE, :8C7. 21 Negotiations have, however, recently been carried on between the Hudson River, the Now York Central, and the Lake Siioro and Michigan Southern Hall- way Companies, which will probably be followed, sooner or later, by combinations, first bi^tween these lines, and afte.\va;ds of continuous lines on other through routes ; and, as these arc more or less carried out, agreements as to equal rates and fares between the East and the West will be facilitated. This is a subject in regard to which it ^^■()uld appear that iio further action can now be advantageously taken; but it will, doubtless, be kept steadily in vitnv, and no proper opportunity will be uegleet(^d in future of com- bining agencies, and of agreeing to raise fares at com- peting points. Analysis of Traffic. The relative and actual Traffic Value of tlie various flistriets of Ihe Grand Trunk Railway, and the ini- |jrovement upon tliem since the year 1802, is shown |n the following analysis, in which, after deducting ^rtago, Avhai'fage, and such charges, the f/ross Receipts l^'C glcen in dollars per 3Iile per week, as the average for TOie half-years ending in the periods stated; — Ha]|-year ending IJec, 18G2. miles. SOtliJuiio. '1867. " 18GU.' 3 1st. Dec. r2.47 Grand Trunk Proper, ... 882 l^l 84.84 S7.20 $101.88 Atlantic District 140 122.58 120.31 i Montreal and Cliauiplain 84 48.47 51.99 I Buffalo and Godurich ... 101 03.88 09.09 jjl|8.32 ! Detroit and Port Huron 59 90.01 112.34 ' Doon Branch 7 2.80 2.71 Three RiversBrauch 35 11.28 8.88 m Total ... 1377 § 2 Average of the whole 82.19 89.89 1805. 1800. !G;ioo40 97.07 140.22 143.23 00.47 08.43 08.83 82.89 121.04 115.00 2.19 2.81 14.38 11.75 ^97.46 96.81 ■"%! i>!j c^^^TAI^ tyj;i:u— PiKroRT on And the ibllowiii;»' air similar averages for certain portions of the above districts :■ H»lt-yoar ending Dec, 1862. Dec. 'M%t, 1866. SC3.64 100.12 104.83 100.96 37.87 07.40 12.66 SainiaaiiK I Toronto T;il20.68 Toronto und Kinymtou 140.24 Kingston iind Muntmil 132.52 Montreal luid Riuhinoiid 116.34 Richmond nnd Point Levi 40.66 Richmond and Island ronil 86.13 Chandiere Junction nndRivit-re thi Loup 14.12 186r> . 1U.7«' 130.4-.' 126..".K I14.1K 30.88 08.4: 1 15.77 This Traffic must alwavs be of afluctuatini;' character, dependent to a very considerable extent upon th«' Harvests ; being-, relatively, lighter in summer, when the competition from the water is greatest, and heavier after harvest-time and on the opening of Navigation in May. Increase of Traffic. Of the two descriptions — local and through traffic — of which it is made up, the Local traffic can onh grow gradually as the country becomes settled and its means of production arc increased, while the Through traffic is already in existences in ample quantity and increases more rapidly. Much more of it might In the Spring and Fall, and even during the Winter, be carried over the Grand Trunk System if increased facilities, which I shall hereafter point out, were afforded. I learnt, for instance, from Mr. Spencer, the Steam- boat Agent at Chicago, on the 4th of October, 1807, thai lie could easily have secured eight steamboat loads, ol 6,000 barrels each, per week, at rates averaging $2 u barrel, for Boston and Portland vid Saraia, if the Grand If (( (( ■ alm^ (^ON'DITH •>• \M) PPtf >SPErTS oi LINE, 18G7. liU 'I'tam 180a. 130.4..' i*26.r.K 3ft.8H 08.4;; 15.77 m 24 r>2 34 55 13 12 haractcr. pon the ivlien the vicr after in Mav. traffic- pan onl\ « I and its Through quantity it might rinter, be increased 3 afforded. 16 Steam - 1807, that i loads, ol ;ing $2 u the Grand Trunk Company hud heen in a position to forward tlicm ; that thousands of barrels were then passing over his dock to the Buffalo ])oats which woukl have boon sent more conveniently and in preference rid Sarnia ; and that the rates would then have continued hotter than the lilgliost of the Grand Trunk Local Tariff up to the close of navigation. La the autumn of 18(55, also, the through rate in flour was $2.00 per barrel, of which the Grand Trunk proportion was $1.95, while the local rale from Sarnia was $1 in gold. Mr. Spencer was of opinion that if better laeilities for the carriage of through freiglit could be given there was "hardly a limit to ** wl it could he done," and " that a daily line could be " fully loaded throughout the season of navigation if " ])ropcrty could be taken at Sarnia and shipped thence ** (by railway) without detention, instead of running " only a tri- weekly as now, and even then being coni- ** pelled to run the boats to Buffalo just at the time " when the freights become most plentiful and rates the ** highest," and be added, ** I trust the troubles that " have occurred this way every season will be remedied " the next." . There were, hoAVcver, 12 Steamboats (including 5 (rf Evans' line) running in connection with the New York Central Kail way, 12 (of the Western Trans- portation Company) in connection with the Erie Hall- way, and 7 (of the Xorthern Transportation Company) to the Ogdensburgh Road, all in direct competition to eastern points, with the Grand Trunk system. 24 CAPTAT:N TYLER— report on Chicago. The Population of Chicago has increased from 4,853 in 1810 to 208,000 in 18G6, and (as estimated) 220,000 in 1807. Its commerce is one of the marvels of the age. There were for\varded from this city in the years 1851, and 1866-7, respectively, Year endin;;' 31st Ma veil. 1S54. 18G6-7. Flour (harrels) 111,627 2,197,787 Wheat (bushels) 2,306,925 .. 10,341,519 Corn (bushels) (),626,054 .. 32,953,530 Oats (bushels) 3,229,987 9.561,223 Rye (bushels) 1,189,895 Barley (bushels) 117,811 1,398,528 Hides (lbs.) 43,166 .. 23,334,791 Hogs (No.) — 672,769 Hogs (packed) 52,819 639,382 Beef Cattle (No.) ... 11,221 '260,833 Beef Cattle (packed; . . . 23,691 25,998 Sheep ^f>^\^} 95,000 Seeds (lbs)... 1 OfifF, 2,181,913 .. 13,316,210 Wool (lbs.)... 2,158,162 ... 12,891,933 The " Union Stock Yards" cover 315 acres of prairie land on the south ')f the city, four miles distant from it. Upwards of a million dollars have been expended on them, nine railroads communicate with them, and thc^ contain, including a magnificent hotel, every possible convenience for man and beast. CONDITION AKi) TROSPECTS oi LINE, 18G7. 25 om 4,853 I 220,000 els of the tbe years Year ending- 31st Mavcli, 18G6-7. 2,197,787 10,341,519 J2,953,530 9.501,223 1,489,895 1,398,528 23,334,791 672,769 039,382 260,833 25,998 95,000 .3,316,210 .2,891,933 I of prairie it from it. )cnde(l on and the;- ' possible The Grand Trunk Company are, as will be seen by the distances already given, in a tolerably good position to compete for those portions of this vast traffic which go to Boston and to all points between Boston and Port- land, but they are under a great disadvantage as regards New York. They have 1,487 miles to traverse by way of Portland, in place of distances by the other routes varying from 918 up to 1,012 miles ; and they have an inconvenient Forrv over the Niaajara Eiver between Fort Erie and Buffalo to connect them with the New York Central Railway, and no connection at all with the Erie Raib.vay at Buffalo. It has been considered desir- able, in order to load cars which would otlierwise return empty from the East, or to fill up Local trains, or for other reasons, to carry freight over thf^ 1,487 miles via Portland between New York and Chicago ; and the steamers between Portland and New York afford tlic means of obtaining such traffic to a considerable extent ; but considering the very low rates at which it must be carried, it is, to say the least, a question for your careful investigation whether the Company would not do better without it. On the other hand, the route rid Sarnia and Buffalo has many natural advantages, and would command a heavy and paying traffic, if only there were proper facilities for its conveyance. The distance by the Grand Trunk and Eric Railways from Chicago to New York, is, as I have already shown, no greater than by the Great Western and Ne\v^ York Central Railways ; and the benefit of such traffic would be received over 259 miles of the Grand Trunk system. The city of Buffalo was fW 20 CAPTAIN TYLEK-llKrOJlT on once a great western mart, and now, containing npwarcU of 100,000 inhabitants, forms the principal intermediate market between Chicago and the eastern cities. Its con- nections Avith Albany, Boston, and Xcw York, by the New York Central, Hudson Eivcr and Erie railroads, and th(! Erie Canal, — with the Hudson River, also from Albany to New York, secure its p<^sition. And th( products of th<' west arc frequently ctfered at its markoi before travellinii: further eastward. Buffalo Ferry and Bridge. The existing ferry across the Niagara Hi ver, l)etw(»eii I'ort Erie on one side, and Black Eock, near Buffalo, oi the other, is in an exposed and inconvenient situation. Th(» steamboat is frequently delayed in certain states ol the weather, so tliat it is impossible for passenger^j t(' '^^ make tlunr connections" Avith the N(nv York Central and Erie Railways. There being no track to connect th( (ji'and Trunk (any more than the Great Western) systiMii with the Erie Railway, passengers and freight have now to be carried bv road for a considerable distance between the two stations. The Grand Trunk is thus placed at a great disadvantage in competing with other lines. 'V.\u co.st of working the ferry, including repairs to the steam- boat and engines, is .$30,000 per annum. The main- tenance of the works at the landing placesj including the swing bridge at Buffalo, will cost next year $11,000, and in subsequent years §6,000 to .<7,000. Nearly s;50,00<' a year is ])aid to the New York Central Company for the use of three miles of tlunr track. The present ferryboni has been w^orking for upwards of 10 years, and for tin » npwai'ds prmediiitc Its con- k, by the railroads, also froni And tht ts markoi , l)Ct\V<^Cll lufFalo, oil situation. I states ol oncers 1(' Central nnect tin n) svst(Mi! have now 3 between laced at a nes. Tin lie steam- he main- iulini»' th( ,000, and r s;50,00(' i\\ for th( e Icrrvboni V id for tln' CONDITION AND PP.0SPFX1TS of LINE, 1807. *>7 fifreater part of that time by night as well as by day. I examined her in dock at Buffalo, while she was under- going* a thorough repair, and observed that it would be impossible to keep her afloat for more than four years longer. The cost of a new boat at the end of that tim«5 would, after deducting the value of the old one, hi $100,000. Omitting salaries and Avages, allowing for interest on capital to be expended in the new boat required in 1871, and adding it to the above items, the annual cost of working and maintaining tlu; Eerry,and of the eonnection witii the New Y'ork Central Raihvay, niny be set down at .$70,000, wliieli, at per cent., v(.'presents a capital of .$l,lGn,()66, say of £230,000 ; or, atj 7 per cent, of £200,000. The project for an International Bridge at this place which promised so much a few years since appears now to liave fallen to the ground. Assistance can no longer he ex])eeted from the com])anies which were to have joined in carrying it out. The ])ridge might, if monev can be raised for it, be more? economicallv built by the Grand Trunlc Company than if arrangements were? made with a st^parate compajiy for its construction, and it would be a j)t^rman(mt advantage to the Company to have entire possession of it. It should be constructed with solid piers, cither of masoiuy where the bed of the river is rock, or with large iron cylinders filled with masonry where it is of softer material. In the super- structure, (dieapness of construction miglit be combined with safety and facility for repair by the employment oi' 4?irders, to which I shall elsewliere j-eHn*, made up of a 2S CAPTAIN TYLER— RErORT ox wooden (Howe) truss, with a bottom boom of rivete,! iron plates. Allowing ^6100,000 for D miles of railwn;, (on both sides of the river) in connection with it, includ- ing the cost of the necessary land round the city o! Buffalo and the approaches, and £150,000 for the bridgi itself, its total cost would amount to £250,000. Tli, cost of working and maintaining it -svovild be less thji: that of the existing ferry, and the remainder may 1); considered on the abandonment of the ferry to ^' towards the construction of the bridg(\ Break of Gauge. There would still, however, be two breaks of gang between Chicago and Boston, or New York. The gauui of the Grand Trunk llaihvay from Sarnia to Buffalo is 5ft. Gin. The gauge of the Michigan Central aiu Michigan Southern Railways in the w^est, as -well as of tin Detroit and Port Huron branch, is 4 ft. S-i in., and the gauges of the New York Central and Erie Hallways ii; the east, are, respectively, 4 ft. 8 J- in., and G feet. Thi> inconvenience has led to the project, so frequently advo- cated, for In vino- down 200 miles of third rail betwcff Sarnia and I'ort Erie. But I cannot recommend tlir" any provision should be made for carrying out t]ii> scheme. The cost of it would not be less in its entirely than £175,000. The gauge of the Erie Railway wouli' still be differeut from either of the gauges thus laid or. the Grand Trunk Railway. And a little consideralioi will show that the benefit to be derived from it woui(' *; *.*' ■ CONDITION AND rPtOSPECTS of LINE, 1807. 2V>' of rivete,' [)f railwa;, it, includ. 10 citv (i! the bridg! 000. Th. less thn: T niav ^i t ry to ^' I of gaiii; riie j^aiiu) EufFalo i> iitral aiu II as of till ,, and the ail ways Ii: !et. Thi^ ntly advo- I betwet'i mend tliri' ^ out tlli^ ts entiivi;, ^vav wovili' iU9 laid or isideralior II it "\voui(' Hot bo commensurate with the ahove cost. The distance bet^Neen Chicago and New York is 905 miles by the Michigan Central, Grand Trunk, and Erie Eailways, or 980 miles by the Michigan Central, Grand Trimk, and New York Central Railways, while,. Detroit and Buffalo, important cities, containing respec- tively 120,000 and 100,000 inhabitants, are favourably situated for change of vehicles or for stoppage. Detroit is 284 miles from Chicago. Buffalo is 447 miles by the New York Central, or 123 by the Erie Eailway, from New York. It is far more desirable and agreeable (especially in America) for the passengers to change carriages every 300 or 100 miles, as at Detroit and Buffalo, than that they should go through without change for upwards of 900 miles and 30 hours, if only the change be made at convenient hours, with proper accommodation, and not too hurriedly. The carriages require to be cleaned and Tentilated after a journey of about 300 miles. Sleeping carriages are necessary for one part of the journey, and day carriages for another part ; and it is better in this particular ease to keep them more or less distinct rather than to use a combined carriage for both purposes. It is absolutely necessary, also, in the case of cattle and hogs, that they should be taken out of the cars at such intervals for rest and food, loesides which they are fre- quently exposed for sale at Detroit or Buffalo on their way eastward. Transferring traffic from one car :to another is Avith some classes of freight a very simple and cheap operation. And it is, in fact, only with r(^gard to a small proportion of the whole traifie ^4 m CAPTAIN TYLEll— lacrOllT on tliat it is necessary, or even desinihlo, to make soim juTangeuient by which transhipment or break of bulk shall be avoided. A variety of suggestions have been madi for avoiding such transhipment — as, for instance, com- pound wheels with double treads, and wheels shiftini:^ oi: theiraxles; and "compromise" wheels, with treads of cx1i\' width, are in common use on the railways connected wirl or runninii' throuf'-h the State of Ohio, bv means of wliicl the cars run with great if not equal salety and facilit) along the 4 ft. 8-J in. and 5 ft. gauges. But it so happen^ tliat the cars in use in America are peculiarly adaptc;! for beini;- transferred without interferiui? with theii loads from one gauge to another. They run invariablv on "bo2,'ie-trucks," connected with the bodies by a central pin only. The bodies and trucks may therefore be juad liiter-chLUigeable, and ditferent trucks may be raiuh tor the same body, adajjted to any gauge. 'lliciv would fm'ther he no difficulty in chan^'inLi' tin trucks without unloadini;,' the cars, — by liftinij: the ])odics and by running out the trucks of the gauge on wliich ;i Train has been travelling and running in trucks for tlu ;ly adapts ';i with theii invariable )v a central L'o bi^ madi bo iiiadi e. 'riu'iv iging' tii( the bodies a wlricli ;i -'ks for tlu arrani;'t)- i<»' mav bt at us, or b\ e trucks ol )peratiou<. >ied would occur at 3 of i;*aug( four da vs. But from this deiayshould be deducted the time thatwould otherwise be devoted to examination and lubrication of the trucks at tlie same places. And it would be rather an advantage, under any circumstances, to acnd forward freshlv examined trucks every 300 or 400 miles. As the chani!?es Avould oiilv (»ecur at the two ends of the Grand Trunk system, tliere could lie no (.'onfusion (consequent upon tlie trucks of the cars being- in one place and tht^ liodies in another. It would be, as I liave explained, only a ])roportion of the freight traffic, and none of tluc passenger and cattle traffic, that would retpiire such a ohang(\ And the expense of tlie Jiecessary apparatus, with its niaintrnance and workini'", would be verv triflinu' <;onipai'ed with €175,000, — the expense of laying a third rail for 200 miles between Sarnia and Port Erie, and of making alterations consequent upon it in the way and works. It is desirable for other reas(ms, as well as with a view to tlu; ears A\'orking thus o^er diffcn'ent gauges, that the botlio\s and trucks shoidd ))e made interchange- able, and on a uniform pattern, in the case of all rencAvals and all additions in. future to the rolling stock. The bri>ak oi gauge between tlu^ Grand Trunk Railway and the connecting lines at either end of it, will cease under the above arrangement to bo a serious inconve- nienco to the through traffic, or any bar to the utility of the bridge over the Niagara river at Buffalo. That bridge will enable the Grand Trunk Company to com- pete; successfully with the Great Western Company for all traffic between Detroit and Buffalo, and will go far to destroy the position of temporary superiority as regards through traffic in which the third '62 CAPTAIN TYLER— RErORT on rail latoly laid down and the Suspension Bridge has placed the Great Western Company. That compau) carried about 17,000 through passengers, and received from them about $112,000 during the month of Septem. ber by that route, while the Grand Trunk Company received only $18,000 from 2,901 through passengers, The passenger and freight traffic over 259 miles of tin Grand Trunk system would, apparently, both be quad- rupled, and the stock yards of Chicago would be brought into direct connection with those of Buffalo over that system, by the construction of this bridge, and the con- templated portions of line at cither end of it. Widening of Gauge, Detroit to Fort Huron. But to obtain this result another measure is requisito — the widening of the gauge between Detroit and Poii Huron. This line, 59 miles long, was originally laid or a gauge of 4-ft. 8i-in., under the idea that the narrov gauge cars of the Michigan lines would thus be enabled to go forward as far as Port Huron. But experience ha^ shown that a considerable amount of traffic is lost because these companies do not care to send their cars forward And the delay Avhich now takes place in transhipment at Port Huron is all time lost, during which the broad- gauge stock would be better employed in running back- wards and forwards to Detroit. Passengers arriviu^ from the Michigan lines are now obliged to change ai Detroit or Detroit Junction into the narrow gauge cai^ of the Grand Trunk Company, and then, after a journc} Jritlge has company [I receivod of Septoiu. Company )asscngers. iles of till 1 be quad- be brought ) over that id the con- uron. s requisite and Por! ly laid oi \e narrow 30 enabh'C riencc lias )st because forward ishipment he broad- ling back- 3 arriving chansje a; ^auge car^ a journcv CONDITION AND PROSPECTS of LINE, 1807. 3;J of only 59 miles, they have to change again into the broad gauge cars of the same Company. Passengers towards Michigan suffer a similar inconvenience in tlio reverse direction. And the freight traffic is subjected in bofli 'vections, more or less, to the same disad- vantage. Passengers and freight to and ft'om Detroit or^y are transhipped at 59 miles from their place of starting or arrival as the case may be. The narrow- gauge rolling stock of this branch consists, besides engines, of 12 passenger, 3 baggage, and 60 freight cars, which are, as regards freight, insufficient for the traffic. Under these circumstances it is clearly for the advantage of the Company that the gauge of this branch should be widened as soon as possible to 5- ft. 6-in., in order that it may be the same as on the other 1,318 miles of the Grand Trunk system, and that the cars maypass from the Detroit line to other parts of the system without transhipment. The actual cost of removing the rails and re-fixing them, (which must necessarily be done rapidly) would be... ... ... ... £3,000. Sheds, &c., for transhipment of freight at Detroit junction would cost ... ... 3,000 Kails and crossini^s for the lEichii^'an Central Railway, the Company having consented on re- ceiving them to add a third rail to their line, after deducting for old rails taken up from mixed-gauge sidings at Port Huron New broad-gauge trucks for 75 cars The duties on broad-gauge engines sent Carried forward ... 2,500 5,000 £13,500 'M CArTAIN TYLEIl -BEPORT ox Brought forward ... £13,50(> across the front irr would amount at the present rate to r*^. «»• Settini; contini?(»nci(»s at 5,000 1,500 The total cost of the altemtion may he estimated at ... ••• ... £20,000 The gradients heing light upon this section, and the climate, west of Sarnia, less severe than on other parts- of the line, (certain hroad-gaugc engines, which are now comparatively useh^ss elsewhere, might with advantage l)e transferred to it. Arrani?ements, such as I have ahove referred to, for avoidiiig the inconvenience of break of gauge, might be made at Detroit as soon as the widening of the imufife to Port Huron has been completed. Ferry over St. Clair River. There v/ill further he required, by the time that the Buffalo bridge is completed, an additional ferry-boat at Sarnia, for the convtn'ance of the extra traffic that may then be expected. There are at present two ferry-boats plying between Port Gratiot (near Port Huron), and Point Edward (near Port Sarnia), where the St. Clair Biver is 1,000 yards wide, named respectively the "Huron" and the "Spicer." The "Huron" has no engines, but carries 18 freight cars, on three lines of rails, on her deck ; and she is swung across by the force of the current in each direction in tow of the •* Spicer." The " Spicer," u«ed principally for passenger traffic, is OONDITIOIS- AND niOSPKCTS oi LTNi:, 1807. 1% •• null supplied with machiaery. Tlic lui?gatfo is examinotl hy tlie custom-lionsc officers cluriiii^ the passage. The next boat should he available for the transi^ort ol passciij^^er and freight cars, and should he provided with iMiglncs. She will cost, with her berths at the wharves on «'MC!i side of the river, i^25,0()0, and this sum may ]w re- (liiircd in tlie course of two or three years. Broad-Gauge Railway through Michigan. AVhile in this part of the country I had an interview uitli a gentleman who has been engaged in the pro- motion of the new railway which it is j^roposed to con- struct on the same jjani^e as the Grand Trunk Raih\ nv W'oni Port Huron to Chicago. I learnt from him, what Ums been previously stated, tliat there is a great demand Ibr this railway, wliicli would pass through a productive tract of country in the state of Michigan. Those wha were interested in its construction, would, it was stated, 1)C prepared to procure the right of Avay, to construct the necessary bridges and works, to complete it to forma tion level, to supply the sleepers and ballast the road- bed, and to fence it in where fences were rc(i aired. Arrangements had been made for entrance into, and ter- minal accommodation in, tlie city of Chicago, in connec- tion with one of the most important of the western lines of railway, on payment of certain tolls, and without any outlay of capital. It was proposed further, that a tirst mortgage should be created on the property in favour of the Grand Trunk Company on condition of their pro^ viding the rails and tlie rolling stock, and that they CAPTAIN TYLKR— IIKPOIIT ov should also in that case possess full rights of manage- ment and control over tlie line. The capital required for this purpose would be 11,200,000. Porthis sum the Grand Trunk Company would 1)6 placed, for all practical purposes, in possession of a line JJ20 miles long, completing its means of throuufh communication on nn unbroken gauge from Portland and Buffalo to Chicaijo. The linf^ would un- doubtedly pay interest on the above sum for its rails and rolling stock, and it would be a great advantage to the Craud Trunk Company thus to obtain direct communi- cation witli and a terminus in Chicago. I suggested that the scheme should be formally embodied and pre- sented, with the signatures of those interested in it, for the consideration of the Grand Trunk Board in London. Intercolonial Railway. Ecciprocity Treaty. There is a more immediate prospect of the completion of the extension which has so lonu? been looked forward to at the eastern extremity of the Grand Trunk system. I found an uni\ ersal desire through the New Dominion of Canada, includini; the provinces, for the speedy con- struction of the Intercolonial Ptailway, which has been, indeed, one of the principal objects of the confederation. The commission under which it is to be constructed has probably been, or will shortly be named ; but the precise route to be adopted is a subject of anxious consideration. An inspection of the lists shoAving the description and quantities of articles now carried by the CONDITION AM) riiOSPECTH «.f LINE, 18(;r. 07 sjtcamcrs via Portland, and cnf|uiii(?s in New Brunswick and Nova Scotia, afforded a hopeful rcsidt. Trade has iji'own vapidly between those Provinces and Canada since the abrogation ol* the Reciprocity Treaty and the prevalence of hi«^h duties in tlie United States. The Grand Trunk Company, after luiving temporarily sufrei*ed, will ultimately benefit by the chang:('. Flour, which was formerly imported principally from the States, now finds its way in large quantities from Canada, and Avill be a large item of traffic eastward on the Intercolonial llail- wtiy. Eish and sugar will travel westward in considerable bulk, and various branches of manufacture which arc m)\\ springing up will add to the receipts in no slight degree. It will not pay to earn- coal, which is so abundant in Nova Scotia, for so long a journey by rail- way, though coal will no doul)t,as well as iron, be conveyed on sections of the line ; but the principle advantage w hich the (Jrand Trunk Company w ill derive from this addition of 100 miles to its eastern end, will be, that the loss which now occurs from working the 211 miles between rtiehmond and Ili\ icre du Lou]), will be con- verted into a profit ; and this alone will be a great relief to the Company. So many interests have sutfered in the States that an attempt will probably l)e made ere long to bring about a renewal, in some shape, of the treaty ; but even if it succeeds, the course of trade cannot now b(^ expected to return to its old channels. The Canadians liave derived a permanent and growing benefit from the lesson which was thus unwisely forced upon them. .'JS CAPTAIN TYLEll— REPORT qn - Tiain MUe Receipts and Expenses. The earnings and expenses per train mil(i on the (Irand Trunk Eailway for 1866 compare witli those in the United Kingdom for 1865, as follows :— Expenses. AVay and Works Locomotive charges Maintenance of Cars Traffic charges (Tcneral charges Miscellaneous (^includin compensation) Taxes, &c. ... llates, taxes, Govern duty, and legal and 1 i araentary charges Discount on currenev ,.. 4 Grank Trunk. Kingdom s. d. s. d. 11. V 5i 1 2 S 1. 2J 1 1 * 8?. ] I- 1 nt ar 2v 2 n I Eai mnirs A i; .5 S S.2 5 1 Profit s.l 6?, s.2 >^ TJie comparison is an interesting one, indicating ih<' (lifl\irence of circumstances, not only in the t\v(» countries, but also as to the svstems of workinj;'. The train-loads are heavier on the Grand Trunk Eailwav, COXDITIOX AM I^liOSPKCTS oi LINE. 1867. -V.) on the h those ingdoDi. inited ingdo s. (1. ) ) ) ) S 8}. D 2} ^ "7 1 5.' '» T! s in^ iIk' le tVFh V 5* The .aiiwnv. tiveragmg, as I' have stated, 150 tons of freight, or 120 passeiii^ers per train. ; whereas those m the United King- ■f lliesc the item of fViel is the most important. 1'he price of cordwood lias from various ■causes increased during the last few years. The land is becoming more ext(nisivcly cleared. T^he farmers have other employment for labour. The distance of haulage to the railway increas(3s in certain localities. The quality of the v>ood, also, has degenerated, soft wood being inferior to hard wood for making steam. The total quantity consumed being upwards of 200,000 <^ords a year, and tho price havini;- ris(ni from $3*15 foi- u superior, to Si'OO foi- an inferior (juality, it may be ♦estimated that the cos. to the Company for facl is com- 4:* CAPTAIjN' TYLiai- JiEPORT ox paratively £40,000 a year more than it was three years ago. Coal has now, indeed, become relatively cheaper than wood on some parts of the line, and it is desirable that copper fire-boxes and tubes shoiiH be inserted in some of the engines with a view to its consumption, particularly as wood appears likely [to rise rather thaii to fall in price for the future. Feat Fuel. Eut another resource is happily ' opening out. Thf- extensive peat bogs which have so long lain useless iu Canada promise now to furnish for a number of years the means of hauling the traffic of the country. Mr. 11^ dges, after several years of labour, and after spend ini; se'itral thousands of pounds in experiments, has at length perfected a machine l)y ^\hich peat can satisfac- torily be prepared for use in locomotive engines. A large barge is fitted with steam machinery for cutting', cleaning, lifting, and distributing the peat. The barge floats in a channel of water, which it forms as it pro- ceed >. Two screws in its front cut and draw in the peat, anl. working in opposite directions, draw i ■ - bar«»e forward at the same time. Tlie peat so cut an'l sucked ill is dredged up by a masticating process; and all roots and indigestible matter being duly separated, the resulting pulp is ejected through a long tele.^copic tube over a considerable area of the bog on each side of the channel. After it has hardened sufficiently it is cut up into pieces of convenient size and shape, and these pieces CON])ITIOX ANj) PllOSrKCTS of LINE, 1867. 41 arc stacked three to^jcllicr to drv in the sun. Tlio system would only succeed in a climate in which the sun is jjowcrful and may be dep !uded on for a certain period of the year, and the work can only be carried on in Canada during certain months. It had been stopped for the season when I visited the machine in October. The peat so prc])ared has been found to burn well in the engines ; and it can b:* use'd and stored more con- veniently than wood. As a ton of it is more serviceable than a cord of Avood, and as it can be delivered at 5^3. 20c. per ton upon the cars of the Company, its use will probably be the means of reducing* the cost of fuel to the price of 1861, and of saving £10,000 a j-ear, or more, as the traffic increases, to the Company. This manufiic- ture, therefore, which is now, I understand, in the hands of a company, is worthy of all encouragement. The (juestion, whether the ])eat so prepared will re-absor]> moisture when stacked for Avinter use, and thus become deteriorated in quality, can only be decided by experi- ment. Rolling Stock. There arc 208 locomotive* engines on iho establishment of the Grand Trunk system, of which 275 are broad and 23 are narrow-gauge engines. But the greater part of the work is necessarily done with a small proportion of them; 4G broacl-gaug(^ engines being too light for winter duty, 10 Ijcing old and ol inferior construction, and 80 freight enginos being capable of taking 12 to 15 42 CAPTAIN TYLEU— iii:P(JilT o.n cars only. Up to the year 1802 tliere Lad been no re- nei>als at the expense of revenue. Sinee that date- thirteen new and one second-hand, engines and tenders hare been added to the stock ; considerable improvements have l)een made in other ways, at a cost of nearly $300,000 ; and a total sum of 5521,550 has been expended (also out of revenue) on additions and improvements to the workshops and machinery. It is further arranged that t\\ clve new engines — costing, say £32,000 — shall for some vears be changed annuallv to revenue, as a mc^ans of brini>- ins; the whole stock "raduailv into better condition. Six of thesecnginos are now under constructionin tlie Company's shops, and six at the Portland Works. The 29 engines on the Buffalo and Lake Huron Eailway are most of them ten years old. They were in g(^neral well l)uilt, they have not been OTer--\\ orked, and they arc in tolerably good order. There arc twenty-three narrow- gauge engines, of which fifteen are on the Champlain, and eight on the Detroit section. The latter, which had, with one exception, been many years in use when tliey came into the Com])any's possession, are neither sufficient in number, nor, in good order, and it is proposed to sell them (with that exception) as soon as the gauge of the line can be a\ idened. The former were also old when they came into the Company's possession, but thev have not since been allowed to deteriorate. The average daily mileage of each engine for the last 5 years has been 68, the averacfefor 1S(>(3 havins: been 09. The average per-centage of engines under repair for the same CONDITION AND niOSPECTS of LINE, 1807. 1.; pi'riod has beeji 20. The avGrai,^o number of cars hauled on caeh train has increased as follows : — • I'asscugcT. Froiglit. MixiJ. Half-year ending June, 1862... :]'\) ... 13-G ... 10*7 „ 18«6... 1-7 ... LV2 ... 11-1) „ Dec, 18G2... J.-.3 ... 15'r> ... 12-4 V 18(>(;... :>.() ... 10-7 ... 12-2 Considering the diiferent classes of enL'-ines ol' which the stock consists, many of which were only intended orii»'inally for lig-lit work, and their condition, the officers of the Company aj)pe;u' to have dojie all that could hv rxpected with them, llic working* ex])enses of the de- partment show a considerable comparative saving since 1862, in the face of an increase in the price of wages and materials, and this saving may be expected to increase materially as the stock is improved and assimilated. The enixines \\hich find most lavour in Canada, and uencrallv in Am<^rica. are constructed Avitli a four- wheeled bogie-truck under their leading, and four coupled wheels under then' trailing 2 Canadian tons, for future use on the Grand 'I'ruuk Eailway. The tenders run upon two l)ogie-trucks. Six-wheel-cou[)le(] engines, siicli as are used in this country, are apt to leave the rails on an uneven or li'ozen road, and it is not safe to use them in Canada. lUie disadvantage of tin* existing pattern of engine is that neither the lour wheels of the bo^ie-truck, nor the ciiiht wheels of the tender, are uvailalde for 44 CAPTAIN TYLEIl— REPORT on rttlhesion ; and that in order to obtain sufficient adhesion for heavy loads in slippery weather, a considerable weight is required upon the four driving wheels. It is a very important object, with reference to the durability of the rails, — to which I shall hereafter refer — and especially on a road-bed which is rigidly frozen for five months in the year, to keep the weights on the wheels as light as possibh\ Tlie class of engine best suited to the climate, and for the various circumstances of the case, would, I have no doubt, be an engine running on two bogie-trucks — eacli provided with a pair of cylin- ders, and four-wheeled or six-wheeled according to the work required — and without a tender. Such an en- gine would be peculiarly safe to travel over a winter road; would combine a minimum wear and tear, to itself and the rails, with a maximum of adhesion, and would be the most effective and most economical that the Company could employ. I had the opportunity some time ago of testing engines of this descrip- tion on the Neath and Brecon Kail way, designed by Mr. Fairlie, and have found the principle to be good, though certain points of detail required improvement. Suv^n engines are also in use for the sharp curves and steep gradients of the Queensland Railway. Cars. Eor eighteen months previously to 1862 the painting and renovation of the car stock was almost at a stand- still, in consequence of the financial difficulties of the CONDITION AND PROSPECTS of LINE, 1867. 43 Company ; and in Septcu.il)er of that year the sidings of the car shops were HUed with disabled cars, some of wliich had not worked for two years. The stock has increased since that date from 3,261 to 1,330, of whicli 298 are applied to passenger, and 4,041 to freight and l)allast purposes. The average mileage of the cars for 1866 was 6,310. The expenses of the car department for that year was $117,331. Tlie average number wait- ing for repair was 221. The stock generally appears to 1)0 in a much better condition than five years ago ; and something has been done towards bringing the bodies and trucks to a uniform pattern. But much remains lo 1)3 effected in these rcsp- volliiig stock uro now impiovcd, ho substituted ior or used ill comLination with indiii-ni1)b(»r in the (^njjincy. tenders, and cars, for the future. Permanent Way and Works. The next ([ucstioii, of the Permanent "VYav, is of pri- mary importance, and I have therefore devoted special attention to it in passing- alonff the line. Out of ijs. 8d, per train mih^ for gross ree(\iptSj and is, IJd. tor total expenses, ll|d. per train mile were expended in 1860 on maintenance and renewal of way and works. The following are the principal peculiarities of the Climate of Canada, as affecting the permanent way: There are excessive ex])ansion and contraction of the rails from extremes of tc^mperatnre betwe(^n summer and winter. The Line is frozen for d- or 5 months in the year to a depth of 5 feet and upwards, and during that time it is exceedingly rigid, and the sleepers cannot be moved. Inequalities occur in the rails from irregular lifting of the sleepers at the commencement of and during the frost, and these are corrected from time to time by the process of shimming — i.e., of inserting wooden packing pieces of the requisite thickness be- tween the rail and the sleeper when the rail requires to be lifted, or of cutting away a portion of the sleeper when the rail requires to be lowered. The Kails are the more exposed to injury in consequence of the rigidity of the road-bed for so many months in the year, by heavy weights passing over them, and they have, when soft, the greater tendency to crush under those weights. CONDITKA' AVii VKOSPKCTS or LINE, 1807. 47 Oil the break-up ol' llie J:'rost, tin* road falls into the worst possible condition, and each yiimmor requires to be spent in repairini:;' the dama^'os of the frost, and in pre- paring for the foUoAv ing* -winter. Good and sufficient Bal- last, which is tlic foiuidation and first requisite of every permanent way, is particnharly rcMpired in such a cli- mate, to prevent, in com])ination with efi'ective Drainage, irreifuiar lifting of the sleep(»rs from frost; to enable tlu' rails to be properly mad(^ up and kept up in tht^ smnmer and during the rains ; and to provide against excessive action on the break-up of the frost. But the (irand Trunk Raihvay was not well-ballasted orin'inallv. and comparatively little has since been done to make lip for the deficiency. About £18,000 has been ex- pended and charged against revenue on this account. There is no difficiiltv in obtainlnii^ Ballast over the whole line, though it has to be led, in some cases, for consider- al)le distances. The following (quantities have been supplied between 1862 and 1800 : — y Ballast put in Track, V.vir- I'nrtllUl... Yiinli. I ( o"f. •Jl, .'>(!!) ; (!.7(C 22 :i.2i'.(! I l.,Vlt> 22 1 m:>:> 2, KM) 821 (i2 so;! 8;i Ditniit. Yimls.! Cost. 1,40() ! o-Kt.Oi (1. T. I'li>llCl-. Y;inis. Cost. i* in.KU :M.!)'.i',t ;:. tu.-)i;» ii.iss) so 2,1(11) 7;ii r.7 >^.5»00 2.7»li 2(i .•fi.SOO i:),s(;9 :5:( IJiiflalo. Divi>inii. Yiii'ds. Cost. l.diiO 11,H(»0 1S,(jO(> l,o;ii S8 4,714 SI r..02'.) 40 Tot.il. Y'lU'ds. i:!.'i.SK>4 ii,r)ii» !»,f>i)0 2."),fir).") 78,900 Cost. 41.701 •»7 14.189 8(i :5,:U2 lu 8,272 «W 21,7('.2 01 JVr Yiinl. C.'iits. 48 CAl'TAIN TYLEU— REPOllT ox It would now be i»'ood economy, in order to add to the durability of the Hails and Sleepers, to save labour in maintenance, to prevent injury to the roUin^t^-stock, and generally in the interest of safety — to complete the ballasting" of the whole line, and to break up at the same time the large stones which now lie in i)arts of it, as soon as possible. Tor this purpose a sum oi* £00,000 will be required ; and inasmuch as this most necessary work has never yet been completed, it would be only fair to charge the cost of it to capital account. The maintenance of the permanent way would then, in future years, be moderate under this head. There are numerous Cuttings on various parts of the system, of which the slopes, having never been properly tvimmed and drained, are a source of much expense and annoyance every year, especially on the break-up of the frost. The estimate for completing the whole is £20,000. They require to be turfed, after being treated in other respects according to circumstances, to resist the action of frost and snow. If £10,000 were expended on these objects in the next two, and any ftu'ther sum that may be required in future years, a great saving* would be effected in subsequent maintenance. As regards Sleepers (or ties) the Grand Trunk system is on an equality with other American and Canadian lines. They have, in the course of renewal, been in- serted in greater number than during construction. Some of the Contractors failed this year to deliver the supplies that were ordered, and there are many now requiring renew^al on some portions of the line, but con- CONDITION AND rUOSl'J'X'TS of LINK, l8Gr. 40 sidcring that they are of larjj^cr size and closer toj^ethcr — on the average 2 ft. 6 in., and in some parts of the litio only 2 ft. apart from centre to centre — it may fairly ]je said that thci Grand Trunk Raihvav is in common witli other railways on tlic American continent, hotter slocpered than many of the railways in this country. The following table shows the nmnher of sleepers that have been laid down in the main line for 7 years : — Ties put into Main Line. \rM-. Ditioit. 1 Wfsttni. C'cutnil. Miiiitri'itl k MiiikI I'oiul. (/lU'licir iinil Ikicliiti'il. Itivicn- (In h(lUl>. Poitliind Cliiiiu- lilairi. Hiitl'ulii 1111(1 ((Otlcricli Tdtr.l. Icitiil hmmI ill 1 "ii-ti'Uctii'ii. 1J«.(HH» j l(il.:UH» 7(»7..">(IO 1 i :!iil.liHi ■J(i-J,7.'(» •J.'0.(MM> :il(l.rt(H» IS'J.CidO ;'..'.j.(K)() •2.sii,i;.-.i) 1 SI III Nil •J().(UMI lid.'JSH r>i,'i'.M> •J."..i);;l . Nil 7'2,7():. , , • • •2:}2.71'.' isi;i Nil n,«7t 1 .V.l.:)i(» :)i,ti(H» :!l.tiHC. •' 13,-itMi • • •_'(l.'l,ll)li |S(l-i ISO ; -iimi ]2l.:i88 •I'.i.-ilC. 11,117 s.ritiii i7.();iG • • • • •J7J,-Jnl isi;:; Nil ;!0,t')'2S 17:!,'ilHi f.'.77.". .■.:i.c.7.i l->.(i7.'. 111, .">.■> I • • • • : ;s( >..•)(> 1- ISIil •i:Xu (M, .'),">{; ■J-JI,KJ4 II.C./.S ;i.-..:i7.'. KJ.'ji;.-. 7."),'.».VJ 1 l,l'l\> 38,:it;o :)l7,ls.-, i.si;;. l-J,(f-'2 sti.jyo •>(!,t;(K> i:!,'.»H'. •j;i,(H-2 '.11, '.MM) i;t,o;i2 81,788 .'.I'j.lf..-. l.sc.c. •ji.g:!'. I j t;;!.7:i7 ! 1 :!'.'.'2'.).'. :!.-.,7i:! 1 lM.'J7(t 1(),(H)0 r)7,'2!M Totid :!S2.l:!l ^..".(►•i,:;!^ They average, as will he seen, «)57,181, or about one- eighth of the whole number, for each year. The woods principally employed, as they can best be obtained, are Avhite oak, tamarak, rock-elm, hemlock, red cherry, and red beech. Tlie five latter cannot be made to last satisfactorily for more on the average than six, or •jO ^'APTAIX TYLllU ~lM:rollT on tlic white oak for more iliaii riirlit, years. Codar Slcepors, which avo chca])cr iji many disiricts, wliicli jirc usually of larger size, and Avhicli (l)cint^' less subjtM'l 1o deenv) will last twice as lonj^. liav«' lallen into disuse. Jk^iui;' softer, they do not hold the spikes so well in the fiVsSl instance, especially in presenting a resistance to lateivil action on the curves. lUit there appears to he no i,^()od r(»ason why they should not he eiuployc^d on the straii^'lil ])0rti()us of the line. Al'ier llu'oe years' wear they arc at least on an equality, as re5j;ards lioldin*^ poAver, with the average of the other desciiplions. And even on tlic curves, two spikes in place of one on the outside of tin* rails, or, what -svould he hetter in llic case of shaq* curves, a wedi>'c-sha]H*d piece of timher, secured ])y two spikes to the sleepers on the outside of tl il, wouhl render them more safe and servifcahle than any others. Beiny' more (>lastic than other sleepers, they would also tend to save the vails when the road is in a rii;i(l condition durhig- the winter; and T have vcMilured to suggest another expedient whicli would, I thin\, he of service in this respect. A puuM^ of tarred felt hair an inch thick ins(^rted on each sleeper and under each rail, Avould prohahly atFord the advantaiics, (1) of deadening' the hlows which the rails receive, par- ticularly at the joints, froni the wheels of the engines and cars as the trams pass ahmg the line when it is frozen; (2) of preventing the rails from working inlo the sleepers ; and (3) of lessening the tendency of the spikes to draw. It is neither necessary nor desirahle that any charge should he made to capital account for CONDITION AM) J'R0M»J:CTS oi- MNi:, isar. -A >lccpeL's. They must all hv rciicwinl, as occasiou rc- t quires, iu the course of iiiMuitouance. Takiiij;' th« life of a CM^dar slccjK'r jil. 12 years, the jivctjii^o lite of the ^loepors iu future at 10 yoiws, aiul the avera^^t^ cost at 21* ceuts, or a sliilling' a picco ; then, with .^,000,000 sleepers iu the track, and o()(),()00 renewed auuually, the pcruuuuMit uiaiuttmauce uuder this liead would not exceed (Ix'sides labour) £15,00') :i yc^ir. Bails.- Renewals effected and required. The question of Hails is far more; serious, and is of irvcat importance witli reference to 1]io future of the ]»ro])erty. The greater part of the I'ei'nianent Way was orij^inally hiid with a f\ (bridi?(») rail (called in Cauada U rail) weighing (53 lbs. to the yard. Thes(^ rails were not of L;'ood quality, and their joints were badly fastened by light chairs, consistinic <>!' wrought- iron plates partly bent up on each side to catch the ends of their flanges. The lli'st chairs weighed 1 1 ll)s., and others, supplied lat(!r, 13 and 1 IJ lbs. each. The rails of this and other sec- tions were (and arc still) seciu'cd to the sleepers acconl- iug to tlu5 simple method — so r'omnion on the continent of AnuH'ica, as well as on tin? continent of Eurojie — of what are called in Ihigland dofj-qytkes. T'he milcai'e of Ilcnewals betw(^e]i 1st JanuaiT, 1860, and tlui 1Mb September, 1S67, is given in the following table : — . - ., m CArTAIN U'i'LER— llEPOET on Renewals of Iron— In riiles. Years. i Detroit. Western. Central. .Montreal (^oelwu ' l!«viere Portland Uichinnd.J f.oup. i Portland 1 1 TOT\r. 1860 Nil. H 34 i 1 14f , 14i : „ 12^- 7oi 1861 )f n 30 14 1 1 12 66] 1862 >> -if 47 19^ i „ ' ,, 9.1 30.^ 1863 >> 21,a o9| 2oj 1 : „ 18.V 126 1864 1 o'-l o9| 31 n 9|, 141 ISGo 2 ' 20 33^ 1 8;| .. M 20 H 10] <»oi 18 GO 5 17 1 1 3G lo\ 1 „ : „ 15] 15 99* 1867 up to lull September ... 1 • •• ••# lot which shows a total of 788 miles, or 98 miles a vear. The 'se re Qewa Is ha^ re been made principally with 2 Iron rc-roUed at or supplied from the following places : — (1) 55,000 tons re-rolled from time to time at the Toronto rolling mill ; (2) ahout 8,000 tons re-rolled at the Bay State mills, near Boston ; (3) about 8,000 tons re-rolled at the Worcester mills ; (4) 5,000 tons supplied from England by theEbbw Vale Company in 1802, and 2,000 tons in 1864 ; (5) 900 tons supplied by the Rhymney Company in lS6i. There have been also some rails ro- roUed latterly at Portland. Of the Toronto Bails 12 J per cent, have been again renewed, and the average life of these rails up to the end of 1S66 may be estimated at less than 8 years. They were at first too light, and the section was not a good CONDITION AND rPtOSPECTS or LINE, 1867. 53 TOT.vr. 7oi 6G| I j 12fi 144 95^ O one. The later rails from that mill have been heavier and of an improved form. They were increased from (i2 lbs. to the yard in 1860, to U lbs. in 1863, to 69 lbs. in 1801, and it is desirable that they should in future weipfh 75 lbs. to the yard. In 1865 puddled bars were imported from En;^- land with n view to improvement for the heads of these rails, ])ut the heads so applied proved to bo too soft, and it has sinee been found more advantageous to place the puddled bars between an upper layer of old bridge-rail iron, improved by a second rolling, and the lower bars of old iron which complete the pile. A head sufficiently hard has thus been combined with a rib and bottom flange of the requisite degi'ee of toughness, and the puddled b[U' opears to have formed a good weld with the iron on either side of it. The llaiis re-rolled at the Bay State and Worcester mills have in like manner proved to be too soft, and have more or less been crushed under the weights of the cngine- Avheels. Nearly the whole of the former iron, and about 20 per cent, of the latter iron, has already been again removed from the track, and the rails re-rolled at Portland have shown similar indications. Of the Rails whicli were sent out in 1862 by the Ebbw Yale Company and were laid down in 1862-3, CO per cent, have already been taken out of the track, a large pro- portion have been shortened or repaired, and few remain in the condition in which they were originally laid. Their average life is estimated at less than five years. Of those sent out by the same company in 1864, at an increased 4 54 CAPTAIN TYLER— REPORT on cost of £2 per ton, and called '*steel headed," the average lile will not, it is considered, he longer than six or seven years. The Rhymney Company's Rails, laid down in "" j64-5, have also worn hadly, and will all be renewed . ■ u by the end of 1868. The life of all these Rails ought, if they had been of suitable quality and of reasonably good iron, to have averaged at least ten years. On this assumption, and taking into account the expense of removing, cutting, and repairing, the loss to the Company from their defects may be estimated to have been directly in money value : — Toronto rails, loss on 55,000 tons ... £60,000 Bay State and Worcester rails, loss on 16,000 tons 40,500 English rails, loss from 186G on 7,000 bons 24,000 Total direct loss in seven years... £124, 500 But the indirect loss has been far greater. About 200 miles of rails, which ought still to he in the track, having been removed from it prematurely, the ofiBcers of the Com])any have found it impossible to renew other portions of the line where renewal was urgently inquired. The old Jl raiU employed by the Contractors during the construction of the railway, and for traffic ever since that time, have unavoidably been kept iu use longer than their condition would otherwise justify. Practures of these rails frequently occurred, and the results of these fractures verage seven Ti by )een of 3 have in, and iittin^, defects money [M) 10 A-boui track, officers ir other ]uired. 11 g the ;r than f these icturee CONDITION AND PROSPFXITS of LINE, 1867. 66 and other defects, by causing accidents and obstructing traffic, with their attendant inconveniences and delays, enhanced the difficulties of the Company to an enormous extent. When the Coni})any was in financial difficulty some years since, the Permanent Way fell into a depreciated condition, as is too frequently the case under such circumstances. Much time and expense would then have been required in any case to raise it from that con- dition. Bat Avhen it l)ecame neccssarv to renew the new rails in jilace of the old onos, the difficulties of the case were, as may bo imaciincd, materially aggra- vated; and it has taxed the officers and servants in charge of the track to the utinost to keep the trains running. The rails have lieen turned end for end cut, patched, and much worn down in the process. They liave been changed from the branches to the main line, and from one pari of the system to anoti.or; and those which had been once rejected from the main line and laid down in sidings, wore even in some cases restored for a further t(H'm ol' service to the main line. It is only ri. They broke mostly, as niiglit b } expected, at a distance of 2 or 3 feet from the joint, but (Vequeiitly in other parts, after being much weakened by wear and tear. These rails, originally 21 feet long, now vary in 56 CAPTAIN TYLllR-PvEPORT on length. It is hardly necessary to say that they must, where the traffic is heavy, be removed from the track as soon as possible, — a process which is beini*- carried out as fast as new iron can ])e obtained. The best of them may, however, with improvements as to joint fastenings, which I shall presently recommend, be left, longer in the track on those parts, as, for instance, on the 250 miles east of lliclimond, where they have been less Avorn, under a very light traffic, and with fewer trains. The following table shows tlie distribution of these A rails, of fish -jointed 2 rails, and of 2 i*ails in chairs, on the 31st December, 186G. Description of Rails in Main Line, 81st December, 1866. tinh In Jo'ntril A '.) • • • 59 Western 107i 821 190 Central ... '2r,,'5i 79 2/;i 91]. SJir, Buffalo suul (jodericli ... 09.'. • *4 161 Berlin Brand I l\ (i • • 1 7 Champlaininduding Bonavonture Bnch. G ■ • » 78 81 Montreal and Island Pond 88.1 Hi}, I HI Quebec and P ic liniond n^ 141 70 90 Eiviei'e du Loup ... ... 118 118 Arthabaska 20 15 .35 Portland 102i 4G.2 1 150 ;; . - . .-..;...-■- 697i 320J 2562- 1,377 CONDITION ANJ) PROSPECTS oi- LINE, 1867. 57 Considerable cliauges have been made since that time, and, indeed, the Traek varies from month to month, and even from day to day, as new or re-rolled rails are re- <;civcd and placed in it, as the best of those released are repaired and re-inserted elsewhere, and as the worst are sent away for sale or to the rollini>; mill. Care is taken, in laying in the new rails, to j^ive them a fair chance as far as sleepers and ballast are concerned. Wliere they have been recently laid down, and in many parts of the line, the track is in fair or in very good working order. There arc, on th(5 other hand, portions, chiefly where the original /\ rails remain in the traek, Avliere rc^newal is still nrgently roqnircd. And the parts which are in good order are mucli intermixed with the parts wiiich are in bad order on diflferent parts of the system. Where the joints of the rails are fished there is fre([uently a want of fish-bolts, owing principally to the diflicnlty of punching or boring the rails which have been cut after Jiaving been injured or cruslied at the (Mids, and partly to the impossibility of getting the platelayers, Avho are obliged constantly to be changing defective rails, and keeping up the 2)ermanent Avay under disadvantageous circumstances, to attend sufficiently to this part of their work. Punching machines are much required in the difi^erent districts, to save the labour of drilling by hand, which is the only means at present available, and a first step towards supplying them has now been taken. Mr. Sacr6, the engineer of the Manchester Sheffield and Lin- colnshire Hallway, has been good enough to interest himself in the matter at my request written from m CAPTAIN* TYIiER— REPORT on Canada; and Mr. Woodhouse has kindly furnished Mr. Brydges with the particulars of the machine used on the London and North Western Railway. I am disposed to recommend that the weight of the lie- rolled Rails, as well as of those sent from England, sliould not in future, on any part of the line where the traffic is considerable, be less than 75 lbs. to the vard. A seciion similar to that which was last approved by the Board may advantageously be adopted. Joint Fastenings. The shape of the fish plates for the 2 r^'^ils may be much improved, and considerable allowance is requisite for the expansion and contraction of the rails during the extremes of temperature. For this purpose it is found desirable to afford ample margin in tlie holes in the fish- j)lates as well as in those of the rails. The system of .suspended fishcd-joints has not been found to answer well in Canada, and that of placing the joints over the sleepers has many disadvantages. The ends of the rails suffer from being hammered by the wheels of the rolling sto<.;k, especially when the road-bed is frozen and rigid. The bolls are apt to get loose. When the joint sleeper is lifted by frost, or when the sleepers on either side of it are thus lifted, a bad joint is formed. A belter method of treating the joints, applicable to other places where the 2 rail is employed as well as to Canada, is that of com- bining suspended lished-joints with a supporting plank of oak 2^ inches thick by 8" broad, under the rail, and resting upon the sleepers on either side of the joint. CONDITION AND PROSPECTS of LINE, 1867. 59 This plank affords support to the frails at the joint, which they require in consequence of the fish-plates not being deep, and it leaves at the same time enough of elasticity to prevent hammering on the ends of the rails. The planks should be let into the sleepers on which they rest, both for lateral stability and in order that the sleepers may not be on a lower level than the inter- mediate sleepers, in which case they would be differently affected by frost. I observed an extraordinary degree of smoothness on a short portion of the Champlain Line, in consequence of a supporting plank of this sort having been laid under the plate-chairs at the joints of the rails ; and I was altogether so much pleased on farther examination with the effect of it ; that I had no hesita- tion in recommending its adoption generally on the Grand Trunk system. It is cheap in application, and suitable to the countr}^ and it will effect a material saving in the ends of the rails, where they wear out most rapidly. A great deal of trouble having been caused by the fish-bolts getting loose, I have recommended that the ends of the bolts should, before they arc inserted in the rails, be dipped in Stockholm tar, — a precaution that has been found very efiicacious in this country for keeping the nuts tight, for preserving the bolts, and for facilitating renewals. Tlie /\ rails also would have lasted for a longer time, would have been less subject to fracture, and would not have occasioned so much damage to the springs and other portions of the rolling-stock if they m CAPTAIJN ITLER— UEPOUT ox had been better secui'ed at the joints. Tliei*(3 are great numbers of them now in the track which will neces- sarily be employed lor several years, and which may bo so employed satisfactorily under light cmgines and light traffic if their joint fastenings be improved. This would be good economy, as tending to prolong their life, to prevent accident, and to save the rolling-stock. I have forwarded to Canada (through the kindness of Mr. Ilberry) sketches of the modes Avliieh have been adopted with rails of a similar though heavier section on the Great Southern and Western Hail way of Ireland. Either a saddle-plate or a steel clip, such as have been used on that railway, combined with the supporting plank above referred to, would form a very efficient fastening ; but a cheaper system, and one better adapted as a temporary expedient to this particular case, would be the com- bination of the supporting plank, the existing chair, and the wooden splice (so common in America) outside the rail, similar to the fastening? before referred to as having been applied on a portion of the Champlaiu. Railway. Durability of Rails. This question of Joint Pastenings is, as affi3cting the life of the rails, of greater importance in an economical point of view, than might appear at first sight ; but that of the quality and suitability of the rails themselves is still more serious. The difficulty of obtaining durable rails of iron has of late years been very generally felt, and has induced an outcry for steel rails in quarters where it would not otherwise have been heard. Much CONDITION AM) PlIOSPECTS of LINE, 1867. (jl trouble has resulted, and much oxpeuso bceu incurred, for the want of rails of g-ood quality in England, and still more in the United States and in Canada. The heavier rails laid down of late years in the United Kingdom, have, in some eases, l)ccn outlasted by the lighter rails of previous years. The eliniato of Canada — severe as it is for 1 or 5 months every year — has been made to hear more than its share of blame for tbe failure of rails that would not have been durable in any eiimate. And in Canada, as elsewhere, after the failure, froni lamination, of steel-headed rails, it has l)een considered that it Avould be better economy in the end to lay down steel rails than to eontitiU(> to use iron with sueli lamen- table residts. The number of fraeiured rails (alreadv referred to), and the softness of some of the rails laid in the track of late years, have, indeed, been sufficient to induce evervone concerned to desire a chanufe of some description, and almost to create a panic as to the (effect of the climate. But I have, after careful inspection and inquiry, become convinced that iron rails of appropriate form, of suitable and reasonably good quality, and of suffi- cient hardness in the heads, mav be made to last on most i)arts of the main line for 15 years, and on tln^ average of the Grand Trunk Raihvay for very much more. There are, in fact, rails now in the tra(;k which have carried a heavy traffic for periods varying from 10 up to even 20 years, in spite of every disadvantage. ^Vs I have already stated, their section was weak, their quality too often inferior, their joint-fastenings bad, the sleepers often hi r>rs 2-ft. to 2-ft. 6-in. apart, in jjjood ballast, with well iisiicd joints, and well maintained, must give a still better result. The real question to bo solved, as far as new rails are con- cerned, is liow to obtain suitable material from the manufacturers. In the case of re-rolled rails it is necessary to provide for the lieads an iron which shall be sufficiently hard, and shall unite with that quality, good welding to the remainder of the pile. T do not anticipate any difficulty in the lattei* eas(^ when once the precise requirement is well understood. The best chance of procuring new rails of superior quality lies probably in insisting on a longer term of guarantee for the rails supplied, in employing the most ndiable manufac- turers, and in paying a price commensurate with'^the value of the article. Xo manufacturer need hav(i any fear of prolonging the guarantee to 7 or even 10 years if he only furnish a suitfible rail ; and in order that there may be no doubt as to what is required, 1 have caused a number of samples to be taken from various parts of the track and forwarded to England, showing in sections of frac- ture those qualities which have failed most completely, and those which have best withstood the climate and the t.'affic. They comprise sjiecimens of /\ rail and ? rail, which have been in use for 20 years. Some of the Coalbrookdale iron between Montreal and Lachine, which has been in the track for that period, will probably last five years longer. CONDITION ANu PROSPECTS of LINE. li?f>7. Gil J defee- circum- )od iron ft. 6-in. ud well LMio real re con- om the ills it is ill shall quality. do not en once 'he best lity lies for the anufac- le value fear of he only may be number le track of frac- pletely, itc and ail and 5ome of achine, robably Bridges and Fencing. The oondition of the Erid'jfcs does not call for aav special remark. The magnificent Bi'idj^e over the St. Lawrence, at ^Eoutreul, is. iji good ordoi*. The greater number of the otlior bridu'cs are of iron and masonry, «r brickwork. Some of tlu; timber bridges aro ])eing strengthened or renewed, espei^ially a large on(^ near Paris. The system known as the Ilowe Truss, is that which has deservedly met with the greatest approval for wooden bridges. It is I'ai' superior to the McCalkmi Truss, which has also been largely (unployed on the Grand Trimk lltiilway, and elsewhere, lint it would bo a great im- provement if, in all future renewals of these bridges, tJie l)ottom chords or booms of the girders were formed of vivetted plate Iron. The lower (diord is, in tlici ease of the Howe Truss, the only portion of timber wliieh is in tension, or whieh is a source of risk. It might be replaced by iron at a small additional per eentage of cost. The wooden girders being twice as d(^cp as tlie iron ones, only half as inueh iron v.oiild be required in the ))ottom booms of the former as in thos(> oi tJie latter. The remaining wooden portions of the trusses could, if the hottoms Avere of iron, be repaired, by the insertion of Jiew parts as they were required. Such a Ijridge Avould, in fact, combiiui facility of repair with nearly the cheap- ness of wood, and all the safety of iron. The Eencing is on many parts of the line in good order. In other parts, and especially on the Portland section, it requires renewal. It is too much subject to destruc- 1^ 64 CAPTAIN TYLER— REPORT on t ion by lire during' the dry season. Eut it is not, com. pavatively, a heavy item. Cost of Future Maintenance. Lookini;', I'lcii, a( the syslfeni as a wholi', it is im- possible to couit'iiiplatc any al)atcmont in the estimat'^s Avhich have hcvn furnislicid Ibi* Maintenance and llcnowalv of Pernianoiu AVay and Works for the next two years. \ ; will re(iuireonthcaven.ge, £120,001) to £130,000 a ye;- for '• maintenance," jCI'50,000 for " rjni.'wals," anc' C20,000 for " improvements," makini;- a total b;itweeii llevcnuc and Capital of, say, €275,0!)i) for the prosen: and two followin;^ years. And to this must at one- be added £60,000, as explaiued above, for Ballasting, and £10,000 for the i'uprovement of tiie Cuttings, both to be ehargod to capital. The above amount of £375,000, is, after all, le-;.> than the avora^ "amount which has Ijccjii cuurgcd on this account in the years 1801, ISC)"), and ]8()o. ^^lie total charge for maintenance ^ renewals, and improvements in 1801, was c£*2G3,dl)7 — iti 1805, (including what Avas brought forward from suspense account) .£308, 127— in 186G, £263,082. But tUe main- tenance of thePermanont Wa vand Works ou^'ht notonth ■ other hand, to demand, in future years, a constant charg > so great as has been antieipat(Hi. W hen once the track has been got into good order, with >)ctt;jr raJs, cedar slecpGrs, good fished- joints, suiTicient ballast, and the other im- provements whitdi I have suggested, the annual cost for maintenance will, under good management, fall withio reasonable proportions. CONDITION AM) PROSPKCTS ov T.INi:, 1S«7. fir. not, conv it is iiii- cstimat s llcno\va]< vcai's. 1; 3D a ycr - Is," ixuv. hotweoii ^ pre sen: at onO' iiUastini:!:, '\it tings, no LI lit ol" [aiuouiit ho years itenance? 1,1.1)7— iti siisp(3ns'.' lie main- iiotoutli ' it cliavjif -' track has sleepers, thcr im- cost for 11 withiD A sum of £1 1-0,000 a-yoar w ill then !)e siinicieut, as for (he exislhu/ trnffia ; l)eing ahoiit 1.0 inst(»ad oi' liS per cent, on the gross receipt?^: and OJd. instead oT ll?,d. per train mile; and reqnirinu' about t'lOO instead ol* C180 per mile per annum of sinu:le line :a kee.]) the way and works in proper order. The (iesecnt from the greater to the smaller sum must, of course, he i»'ra(lnal ; hut, as the line approaches to a more perfect condition the henetit will he jjradunlly felt, in feAver mishaps, in reduced compensation charcje^, and in reduced charges for maintenanc(» — the actual charijcs iucreasinij:, of course, with the increase of the traffic. This sum mav seem, to those who are accustomed to consider the amounts per mile per annum recpiired for 3Iaintenanco and llencwals of A^'ay and Works on the principal lines in this country, to he insufficient; hut rliere is no i»'reater fallacy than that of instituting; exact comparisons hetw(MMi railways i)laced in dissimilar circumstances. The stations and works on the Girand 'friink Railway an* less numerous, and the receipts un- fortunately much lighter, than in the United Kingdom. The ({rand Trunk receipts were only. aft(n* deducting discount on American currency, 4^17. 7s. per mile per week for 186(>. IMic cost of maintenance and renewals in the year 1805 was, on the Ijondon and North Western flailway, £102 per single mile per annum, but for a traffic of £52. ^s. per single mile per week, nearly three times in money value that of the Grand Trunk. The cost on the Lancashire and Yorkshire was similarly 66 OAPTAIN TYLER— REPORT ox £198, for receipts of £50. 5s. ; and the cost on the Norili Eastorn £148 for receipts of £35 ; while the cost for way and works on the railways of the United Kini^doui was, in the same year, £151 per sin«T^le mile per annum, on receipts of £33. 4s. per single mile per week, or nearly twice those of the Grand Trunk Railway. Under these circumstances it is not taking a tix^ sanguine view of the future to state that a proportionalc saving ought to b(? thus effected hefore many years have passed, of £115,000 a-ycar upon the expenditure out of revenvr for way and works for the last tlirec years ; and this is one hoj)eful f(Mture of end of each half-year, to determine whi.t portion of the work which is done in the course of maiutenatiec i 'lould be charged as "renewals,'' and what portion of Wv renewals should be charged as ordinary maintenaTiec No precise rule can be laid down in this particular case to determine wljnt portion of these maiiitenaiKN^ renewals is comprised within iha term ordinary, and how muc^h is extraordinary. The only distinction that can usefully be made is between Capital and Revenue, and this should, I submit, be strictly adhered CONDITION AND PROSPECTS ov LINE, 1867. 67 lie Norlli cost for ungdoin ' annum, week, or ig a too ortlonalc ;ars have ro out of firs : and 1110, thn.t iliould in renewals sly as is iero(V)r< . univcr- )i!icor oi ^ to ilic n of tlxi c ;•' '.011.1(1 1 of tb" tcnancjc. irticul.ir itcnan('(^ rdinary, itinctioii tal and adhered to as directed by the Arrangements Act of 1862 ;— all new work and improvement, in extra stations or warehouse accommodations, in sidings, in extra weight of rails, &c., &c., being charged against Capital, and all renewals of existing work, even tliougli of higher price and better quality, against revenue. Ii is, under ordi- nary circumstances, just as unfair on tlio one hand to those who are (mtitled to present dividends to charge to revenue what ought to go to capital, as it is prejudicial, on the other Jiand, to the future prosperity of a Com- pany to adopt the system of continually increasing its capital for the purj)os<; of avoiding payments wjiicli ouglit to be made out of revenue. The season for work being short in (Janada, it is desirable that the various materials required for main- t^enance and renewals should be provided in future at an earlier period of the year. The only diiliculty in this respect is, that the heavier charges would, in that case, bo incurred in the half-year, which, liaving the lighter traffic, is less able to sustain them, l^ut if the prin- ciple be admitted, that the greater proportion of the materials required for the whole year ought to be supplied during the first half of it, it will only be neces- sary to charge to the accounts of each half- year a fair proportion of the cost of maintenance for the whole year. If this principle l)e not admitted, the officers of the Company will be liable to be put to inconvenience or diificulty — as has actually occurred this year — in consequence? of the failure of contractors to supply sleepers, or of ships being detained at sea with ^ 68 CAFTAIN TYLER— llEPORT ox rails. And extra expense may ultimately be iDCurred from their aot beiug able to carry out the work of vencvvals during the proper season for it., or from its being :ieeessarily postponed altogetlicr. The Stations only that are on evirvcd portions of the Line have, as yet, been generally supplied Avith Signals, and a reasonable request has been made that the system of signalUn'j; should bo eomplcted with a view, not on ly to prevent accidents by collision, but also to save the expense of employing men to protect the trains. To do this efficiently would require an expenditvu'e of £6,000. Great Western Agreement. I have already referred, slightly, to the subject which liav^ been anxiously discussed for so many years, of arrangemcnlg witli the (Jreat \Y(»stern Company. In 1862 an arrangement was nearly cfl'ected for a complete fusion of interests between the Grand Trunk, the Great AVestern, and the Buffalo ami Lake Huron Companies ; but the Great "Western Company tli en considered it more for their inten^st to remain independent, while the other two Companies became practically united into one un- dertaking. Th(» Grand Ti'unk and Great Western Companies have since been in competition with one another : and this competition has naturally resulted in reduction of rates, increase of expenditure, and con- sequently serious loss, probably of £40,000 or £50,000 a year, to both companies. The rcsidt of later negotia- tions has been that the Great Western Company, while OONDITIOil AND PROSrECTS oi IJNE, 18G7. f.H iDCurrcd work oi' its being \s of the Signals. system not onlv save tlie . To do ' £6,000. 'ct wliicli ycAivSi of any. In complete he Great npanies ; 1 it mor(.' ho other one iin- IWestern ith one lilted in nd con- £50,000 negotia- y, while anxious to benefit by an agreement for equal fares, rates, and charges on local traffic, such as now awaits the ap- proval of the Grand Trunk shareholders, have persistently refused to enter into a more intimate alliance with the other tw^o Companies. This agreement will undoubtedly be very beneiicial to the Great Western Company, and would, if it were carried out in a proper spirit, bo of advantage to the Grand Trunk Company. It was hoped that the loaded cars of the (ircat Western Company would, as contemplated in clauses 15 and I of the agree- ment, be allowed to run througb without the delay and expense of transhipment from certain points of the one to certain points of the other system ; and that the two Companies might have been induced to work amicably together in all respects. But the [)i*actical result was, even while I was in Canadii, unfortunate. The Great Western cars continued, in spite of renionstran(;es, to be unloaded at Paris, to the detriment of the Grand Trunk Company ; and arrangemcjits were not made, as was requested, for so loading these cars as to admit ol' their running forward (m tlie GrauujTrunk system. A stock agent at Bufifalo had been induced, by the temptation of a higher salary, to leave the service of the Grand Trunk for that of the Great Western Company. The prospects, therefore, of the two Companies working harmoniously together under this agreement are not so good as they might be ; and, indeed, the present is not a time when the Grand Trunk Company can expect to make termsjcommensurate with its intrinsic value and future prospects. The Grand Trunk Company is now in its worst, the Great Western 5 70 CAPTAIN TSfLEn-EEPOirr ON Oompany in its best position . Their relative conditions and circumstances will be completely altered when the b? idjijo over the Niagara river at Buffalo, and the connections contemplated with the Erie liailway, as well as with the New York Central Railway, have been formed ; when additional rollina; stock has been provided; and when all the various improvements recommended in this report have been carried out. I'he Grand I'runk and Buffalo and Lake Huron joint line Avill then be in a position to benefit by a large proportion of the increasing traffic whicli now flows over tlie Great Western svstem by wav of the Niagara Suspension Bridge, between the Western and the Eastern States. The risini]: fortunes of the one and the falling fortunes of the other will tlicn facilitate the adoption of terms advantageous to both parties ; and in fact the completion of the above works will inevitably lead, sooner or later, to an entire fusion of interests. Such a fusion would save commissions to hundreds ol' rival agents for the sale of through passenger tickets, — would cause the agencies for the solicitation of freight in different parts of the United States to be united, — wot: Id enable the two Companies 1o compote jointly on more favourable terms witli the American routes, — would lead to a reduction in the double service of competing trains through Upper Canada, and of the duplicate staff which is now kept up at the various stations within sight of one another, — would add to the convenience of the public by the formation of joint sta- tions, — would lead generally to more remimerative rates. — would be the means of diverting the heavy traffic CONDITION AND PEOSPECTS oi LINE, 1807 71 3ns and bridge' cotions 4tli tl>c ; Aviieiv I when s report Buffalo ition to traffic by way resterii the one icilitato es ; and 'vitably sis. Ircds ol' jkets, — frcii^ht lited, — ntlv oi\ Rites, — vice of of the various I to the int sta- ^0 rates, r traffic which now passes directly from the (Jreat Western to tlie American lines, for Boston and the New England States, from those lines, and of forwarding it over a longer mileage of the joint Canadian systems to their mutual advantage, — would economise the use of their joint rolling stock, l)y saving transhipment between oars on the same gauge, — would lead by joint manage- ment to a reduction of general charges, — and would cause ,1 cessation of the labour and '^ypense which must otherwise, it is to be feared, continually b(3 devoted to the object of enabling the one or the otht^v Company to obtain further relative advantages. It would appear, therefore, that while an unreserved fusion of interests would be of enormous advantage to both systems, the Grand Trunk Company arc not yet in a position to seek, nor the Great AYestern Company in a mood to accede to such an arrangement. Combina- tion will, ultimately, become far more necessary of th(? two to the Great Western Company, because almost all its traffic and its whole system will be subj(;ct to compe- tition by the Grand Trunk Company, whereas one-fiftli only of the Grand Trunk system would be involved in the sacrifice which such competition would temporarily demand. The present agreement falls very far short of what is required for the avoidance — which would be most desirable — of such competition. It does not deal with the question of "foreign " traffic, wbich will come more prominently forward after the completion of the Buffalo bridge, and which is for tlie time the m 72 CAPTAIN TYLER— REPORT ox principal source of prosperity to the Great Western Company; and its advantage to the Grand Trunk Company will depend upon the spirit in which it is carried out hy the Great Western Company. That Company would suffer materially from bad luirvests or a financial crisis in ^thc States, and may suffer from a combination of the New York Central and Lake Shore lines, which I have already referred to as being probable. The proceedings in Canada to which I have re fenced, and the action which was lately taken at a Grand Trunk meeting by the Deputy-Chairman of the Great Westevn Company, have rendered it the more; necessary that thc^ Grand Trunk Company should be cautious in committiui; themselves for so lonjj;' a period as seven years, (-iausc 10 of the agreement provides, indeed, for its termination on a three months' notice, but subiect to certain differences between the manaijers in Canada unci the Boards in England, the existence of whicli might be dis- puted, and which have reference only to "such matters" as "the rates and fares to be charged in respect of through " traffic from one system to the other." It might ^hus hv. found difficult to determine the agreement, if it were expedient to do so, for any other than those pa 'ticular reasons. And it would therefore, I submit, be anwisc in the Grand Trunk Shareholders to confirm it without the addition of a clause enabling cither party to deter- mine it absolutely, on a six months' notic(», if the necessity for doing so should unhappily arise. estem Trunk ich it That csts or from n a Siiorc ^bablo. ?(i, and Trank ^cstevn lint th(* nittinii Clans*' ination certain nci \hv i)0 (lis- 'S >» irou2:li has hv. were (cular I n wise ithout detor- thc CONDITION /iND PROSPECTS of lilNE, 1867. 73 American Currency. The depreciation of the paper currency of the United States has been frequently referred to as the most serious cause of the difficulties of the Company. The total loss on conversion of that currency, from which no adequate reduction can be made, on account of rise in fares and rates, has been, as stated in the last report of the Directors, .£311,938 from 1862 up to the 30th June of the present year, or on the average, — say, <£G0,000 a year. The actual receipts in that currency with tlie total amounts paid out in the same currency, the balance, and the loss on conversion arc j^iven, as well as the balance of the receipts in Canadian currency in the following table. 1 Canadian Cuircncy. American Currency. 1 Receipts. 2.471,893 Period, 1862 Received. Paid out. Biilancc. 464,281 Loss on Conversion. 66,535 1,530,229 1,065,947 2,121,379 18G3 2.317,887 1,517,521 800,366 129.5.59 2,290,291 1864 3,289,632 2,475,331 814.200 381,610 2,485,928 1865 3,985,068 2,337,032 1,648,036 460.861 2,943,946 1866 3,659,126 2,197,747 1,461,378 370,317 12,313,439 1 Totals 14,781.845 9,593,581 1 5,188,263 1,408,885 N.B.— The amount '• paid out " includes $545,000 invested in the purchase of Atlantic and St. Lawrence Bonds. This opemtion saved a further loss of, say $342,000. 74 CAPTAIN TYLER— REPORT on It will be observed from the above table that except in 18C2, the receipts in greenbacks have formed the greater proportion of the total receipts of the Company ; and that the amounts paid out have borne a varying proportion of rather less than two-thirds on the average, to tlie receipts. Gold was quoted in New York yesterday, tlu^ 10th inst., at 135f, though it has been lower since the war, and it was at one time as high as 260. This varying value of the currency in which more than half the receipts, and so much of the costs of workinj? are paid, c^.uses confusion in all the accounts. The " gross receipts '' of each half-year, as stated in sterling, are very considerably inflated, as well as the expenses. These receipts are made up partly of American, partly of Canadian currency, and being converted into English money at the rate of Canadian currency, theyrej)reseutmore than their true value by the difference on upwards of halt of them between greenbacks and gold. The expenses are paid partly in American and partly in Canadian currency; and they also represent more than their true value by the difference, though on a less proportion of them, be- tween greenbacks and gold. The addition to or deduc- tion from the one or the other of the loss by currency does not lead to an accurate result, because no account is thus taken in either case of the sums paid away in American currency. It is impossible, therefore, ever to arrive at an accurate conclusion as to the actual per centage of working exj)enses to receipts, though the nearest ap- proximation to it is obtained by comparing the former plus loss on currency with the latter, or the latter minufi CONDITION AND PROSPECTS of LINE, 1867. 75 loss on ciuTcncy with tlio fornKn*. Tho Company has thus been receiviug' and p.iying since 18(53 less than has been reproscntotUn the uccoiints, and, ruithcr, the com- parisons which liave been instituted betA\ een correspond- ing halt-years have been always inaccurate. In such, comparisons no account has been taken, either of the varying' price of gold, or of the varying pro])ortious of American to Canadian currency, received or paid away, all of which are important elements in the calculation. It may even happen in a future half-year that receipts nominally less will have a greater sterling value thnn thos(^ of a preceding half-year. And as the recei})ts have appeared to be greater than they were in reality ever since gold has been at a premium, so th(\v will be in sterling value comparatively greater as that premium gradually disappears The only remedy for this state of things is to calculate the receipts and the expenses on a gold basis. This would, no doubt, be a source of consider- able trouble in keeping the accounts, and it is a question for vour consideration, whether the resultini:' accuracv would compensate for the labour Avhich it would entail for the remaining period over which the existence of greenbacks is likely to be prolonged. The more important question that arises in regard to this matter is whether the loss by currency which has now extended over so many yc^ars caimot be obviated by a corresponding rise in rates and ftires. Unfortunately, the through or foreign rates and fares on the Grand Trunk Railway arc governed, as I have already explained, by those of numerous competing systems. The rates for re CAl'TAIN TYIJ^:il— REPORT o>f IVeiglit have been raised on the American railroads to some extent — on an averasje, as it would appear, by about 14 per cent. But this increase is very small in proportion to the present depreciation of the currency, and it was inappreciable when gold was at a premium of IGO per cent. The foreign passenger fares have not been much increased sin(!e the American war. They have been kept down on the competing lines by the obligation which I have already referred to as having been imposed some years ago on the New York Central Railway, to carry passengers at 2 cents a mile. The obligation was ruled, in spite of their protests, to hold good in any legal currency. And that Company was compelled, when gold was at a very high premium, to carry passengers between Albany and Niagara Ealls, mi li to its detriment, at fares which, calculated in gold, were ridiculously small. A similar law of the State of Michigan, prevents the Grand Trunk Company from charging more than four cents a mile on the Detroit and Port Huron section. It is pro- l)able that the through rates and fares w ill remain much as they are as the price of gold falls, and that an im- portant improvement will appear, from this source alone, in the profits of the Grand Trunk Company. It would be idle, in the present state of affairs in America, to speculate as to the time when gold will be again at par. There will, probably, be a rapid fall in its price when, the periods of short indebtedness having expired, the American Government commences to buy up the $400,000,000 of paper now in circulation. CONDITION AND PROSPECTS of IJNK, 1S({7. 77 Prices. The rise which has occurred in ihf pvi('(N of labour and materials luis heretot'oro been lijenorallv ('oiisidcred as n.ixcd up with, and cvm vcsultini^* from, the above ques- tion of greenback currency ; -whereas it appears to me to be entirely distinct from it. Tlie two have, indeed, fallen simultaneously on tlic Company ; and the higher prices have in the States been necessarily paid in paper. But it seems ()])vious, on consider:ition, that such a rise is a natural result of the Avar, and would have followed on the scarcity of h»l)our which it occasioned, even if greenback paper had never been brought into use. There have in fact l)een two sources of increase — a nominal and varying rise to counteract the varying depreciation of the currency, and an actual rise as a result of tlie war. Be that as it mav, the result of the war has been commercially very disastrous to the Com- pany. Rails were re-rolled on the American portions of the line before the war at $25 a ton in gold, and $47 a ton has since been paid for them in currency. Labour has increased 40 per cent, and certain materials as much as 7i) per cent, in currency. Labour has naturally been attracted from Canada by the rise of wages in the States, and wages throughout the frontier of the dominion have thus increased, to the extent, pcrha])s, of 10 per cent., and in some places at a higher rate. They cannot remain per- manently in that inflated condition, and there is further hope, as they fall, for improvement in the prospects of the Company. B OATTAIN TYLER— REPORT ox A i.liii'd result ol' the war has becri Hk^ ir.ipositioii of enormous duties on uU branches, and at all stai^es of manufacture. And the loss to the Company iVoni i'losi three causes has been probably upwards of C100,()0() per annum. Conclusion. I have thus endeavoured to desei-lbe the system ol* the Grand Trunk Eaiiway exactly as I find it ; to afford (1) a just idea of its present condition and of all its difficul- ties ; ['2) a cojuplete statement of tlu; various measures neeessuiy for its improvement ; (»3) a reasonable view of its future prospects. The greater works on the line ar(? of a substantial character, and one of them in particular is far too majjfnifieent for its commercial resources ; but it has suffered from defects of oriq-inal construction as re- gards its permanent way and minor works. A con- siderable j'i'oportion of its mileage is actually worknstant dniiii upon its resources. J limh piices of labour and materials, to a loss extent in Canada, to a greater extent uu the American sections, and heavy duties in America, have combined witii low rates and tar(\'^, received partly in an uncertain and depreciated currency, to eat into the ])roiUs; and it will be easily understood that a slight risi^ m rate s acting simultaneously with a slight fall In jirices would make a vast diilerence in those profits. The Managing Director and Officers in Canada, while al)ly and honestly doing their best fur the concern, liave l)een much hampered in th(.'lr operations by tliese and other adverse circumslauces. They have had the np-lull task not only of maintaining, but of raising, as far as they could, th(» rolling stock as well as the pcH'nianeut way, from a condition of extreme depression. That has been partially aecomj)lished, and 1 have indicated not only the cost of. hrl :dso the necessity for, its completion. In the exi' iuL, cu; ationof the property, twoconrsesprest^it themsMr/^s fo) adoption. It must be allowed to go on eit'i' i vvil hu'i or with a fresh (^xpiUidit(U'i> of capital. If no furtncr capital be expended its improvement will, to say the h^ast, be a gradual process ; :i large propor- tion, if not the whole, of its revenue will, for a series of years, be swallowed up in the cost of maintenance, the payment of fixed charges, and the supply of necessary means and appliances ; and the prospects of cash divi- dends to the preference bond and stockholders will be very remote. If capital can be raised, and if it be ex so CAPTAIN TYLER— REPORT on pended on the various objects which I have indicated in detail, a more speedy return to the proprietors may, with c?ood reason, bo anticipated. The latter policy is that which it is obviously most desirable to pursue, but no further expenditure should bo incurred, except such ais will lead to commensurate economy in working and maintenance, or which will be commercially profitable, or which is necessary to safety. Acting on this principle, I may sum up the amounts which will require to be raised and expended on capital account, as follows : — (1.) Bridge over Niagara lliver at Buffalo, with connections on both sides of the river,- — to be commenced as soon as pos- sible £250,000 (2.) Expense consequent on, and incurred in, widening gauge on Detroit and Port Huron Eailway, — to be carried out at once, — broad gauge engines being supplied from other parts of the system ... 20,000 (3.) Additional steam ferry boat at 8arnia, with wharfage, — berths, &c., — to be ready on completion of the Buffalo Bridge ... 25,000 (4.) 30 engines (including 25 now under construction), 10 passenger cars, 300 freight ears, — required in the course of next year 125,000 (5.) Buildings for engines, — much required 15,000 (6.) Completion of ballasting, — say in 2 years, if possible ... Carried forward 60,000 £495,000 cated in ay, witli ' is that , but no sucli as ng and ofitablc. imounts capital 250,000 20,000 25,000 125,000 15,000 60,000 195,000 CONDITION AND PROSPECTS of LINE, 1867. 81 Bi'ought forward £495,000 (7.) Trimming, draining, and turfing slopes of cuttings 1^8.) Improvements for 3 years in stations, sidings, extra weights of rails and fish- plating (9.) Completion of system of signals (10.) Arrangements for changing trucks of cars at Uulfalo and Detroit, to obviate in- convenience of break of gauge, and an ex- penditure of £175,000 for third rail between Sarnia and 1^'ort Erie, — say ... 5,000 10,000 60,000 6,000 £576,000 Of this amount, about £230,000 for rolling stock, for widening the gauge of the Detroit and Port Hui'on Railway, for " improvements " in Avay and works, for th«; cuttings, for ballasting and signals, for engine buildings, for arrangements for changing trucks of cars at Detroit, lor purchasing land on l)oth sides of the Niagara E-iver, and for the commencement of the Buffalo Bridge, will hi) required as soon as it can be provided. In addition to the above £576,000, a further expendi- ture must be contemplated of: — ' 30 engines, 10 passengers' cars, 300 freight ears, perhaps for 1868-9, but at all events to be ready before the Buffalo bridge is completed ... ... ... £125,000 Buildings for engines, by the same time ... 15,000 further " Improvements " in way & works 30,000 Carried forward ... £170,000 82 TAI'TATTn TYT.ER— Rl'irOIlT ON Uroiig'lit forward Fiirtlicr lor cuttinsrs... Perinancni passeng-ers' station, and extra froii?lit accommodation at Toronto General officns, freiglit wavelioiise, and pas- seni'er station at ijonaventure Street, Montreal Altou^ctlier ... £170,000 10,000 5,000 25,000 £210,000 or these last-mentioiit'd works the frpighl accommo- (kition for extra traffic at Montreal and Toronto are the most pressing. The above two amounts form a total of £786,000 ; and it may he considered rongldy that £500,000 of tliis sum wonld he spent for the Grand Trunk, and £2SG,000 for the purposes of the Ihiffalo and Lak'^ Huron llailway. r»ut inasmuch as "'reatlv inereasini? traffic, such as raav he expected from the aho-'-c developments, always re- (juircs increasing expenditure, and as the Intercolonial [(ailway may now he expected to be rapidly proceeded with; a further sum of .£11 1,000 would be a moderate amount to he added for continsjencies extendini? over the next six or eight years. And a total expenditure of £900,000 should therefore be anticipated, to do justic<' to the property, and to C:»nada. The (piestion then arises, how is this money to be raised r The credit of the company is at the lowest ebb. It has not yet bsei. found practicable to place the re- maining £40,000 of llie existing 6 per cent, equipment mortgage. That security is now nominally quoted at 80 per cent, in the market. The interest upon it was only :i7o,ooo 5,000 25,000 2210,000 3Commo- > are tli(> )()0 ; and 11 lis sum 3,000 for Hallway, li as mav ways rc- rcolonial rocccdcd moderat<' over the lirure of |uipnient ►ted at 80 was only CONDITION Axi) PROSPECTS of LINE, 1867. 83 paid by carrying over a deficit from the past to the <;urrent half-year. Any further mortgage must follow it in the order of precedence. A second equipment mortgage could only be issued on ruinous terms. The proprietors have expended vast sums of money, more freely than wisely, on a great highway, from whicli (Canada has derived and is deriviniv infinite advantaGje. Tlie city of Montreal has grown, and is growing rapidly, as an emporium for western commerce, undoi* its auspices. The price of land and property of every kind throughout the country has largely increased in value. Manufactures are springing up. The land is becoming settled, population is growing, and facility of interc.'oursc has been provided over ^he Avbole length of the Dominion. The proprietors have hitherto received little but hard words for themselves. They nre ready and anxious to proceed yet further, in tlu* hope of working out the undertaking to a successful iss^ue. They are even now promoting a Bill in the Canadian l^arliament for power to raise an additional £500,000. That sum would be insufficient, even if it eouhl be issued at par, for the requirements herein enu- merated. The country and the company would alike ])e benefited if £900,000 were expended, principally in Canada, during tlie next six years. It Avould be more profitable, at; well as more satisfactory to both, if this railway, which will ultimately carry traffic on an un- broken gauge from Ilalifax to Chicago, wore placed in a perfect condition, and were to become, as would tlicn be thecase, a favourite route for American as well as Canadian 1 ' Hi CAPTAIN TYLER— REPORT on LINE, 1867. passeng-ers and produce, between the East and the West. Having regard to all these circumstances, the Govern- ment and people of Canada may now fairly be asked for suuli reasonable assistance as will suffice to improve the credit of the Company, and to enable them to raise funds for the purposes above enumerated. There arc various ways in which assistance might be rendered with mutual advantage. But it would be premature to discuss them here in detail. It is sufficient, for the present, to have demonstrated the reasonable nature, as well as the desirability of the proposal. I have the honour to be, Gentlemen, Your most obedient servant, ' H. W. TYLER. •.t::-.i;;;;-. last:; i- Having accompanied Captain Tyier in his inspection and inquiry, having been in constant consultation with iiim on all subjects which required attention, and having satisfied myself on the different points in question, J entirely concur in the above report. C. W. EBORALL. ! WATERIOW AND 80MS, PIUNTEKS, CAJXPMSrTfV,^^ F;U/L, LONDON WALL.