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" In making such arrangement or appraisement the benefit, likely to be derived " by the Proprietor from tlie Bailway running through his Lond, shall be taken into " consideration, and the damages thereby reduced or extinguished." Steticn 19. '< The monies payable for such Lands and fencing shall form a county obarco." Seetion 20. " Whenever the ntilvays or any portion of them shall bo completed it sh- II be " lav All for the Qovernor in Council to make such arrangements as may be suitable for " workmg the railways as one line by a common management or for working the trunk ** line and branches by separate Commissioners." Another Act of the same Session, 17 Vic, Cap. 2, Legislature of Nova Scotia, 31st of March, 1864. Section 1. ** It shall be lawfUl for the Cbvemor, br and with the adrioe of the ExeoutivA "■ Council, to contract a Loan, on the pledge of the Revenues of this province, whether '^ arising irom the duties upon imports, the sale of Crown Lands, tlie Royalty paid 'ay " miners or the tolls to be collected on the Railways constructed with the moaios « to be borrowed under this Act." St^ioH 2. " Certificates of debt to be called Debentures bearing interest at six per cent " may be issued from time to time, at par, or at such premium as the same may com- « mand, as the Railways proceed." Seetion 8. " The principal of such Debentures shall be paid in full, at the expiration of " Twenty years from the date of their respective issuep." Seetion 4. " The whole of the Revenues to ariso from the receipts of Tolls on such Rail- " ways shall, after the expense of working and maintenance have been paid, be applied " towards the payment of interest on the Debentures, and the surplus shall form a Re- " serve fund for the redemption of the Loan." The Revised Statutes of 1864, 27 Vic, Cap. 70, Legislature of Nova Scotia, 10th of May, 1864, included, among others, a chapter devoted wholly to the subject of Railways. In it the provisions of the Act of 1854, before referred to, were re-enacted. The Act of 1865, 27 Vic, Cap. 13, Legislature of Nova Scotia, 2nd of May, 1865. Section 1. " The Chief Commissioner of Railways, by direction and authority of the " Oovemor in Council, may contract for and ou behalf of the Province, with any respon- '* Bible party or parties, for the conttruetion of the following Sections of the Provincial " Railway, that is to say, from Truro to the boundary line to Now Brunswick, and from " Windsor to Annapolis ; and for the payment of the subventions, on the terms and " under the provisions and stipulations hereinafter set forth and contained. The loca- ** tion of the Hues of the Eaid Railways to be subject to the approval of the Qovernor in " Council." Seetion 2. " The Omlractore for the sections first mentioned (i. e. between Truro and " Amherst), to receive a tubvention, of not more than iper cent, per annum for twenty " years on $iOfiOOper mile of the whole length of said section, and the Provincial Qovem- " ment to take on behalf of the Province atock in the said undertaking, with such *' contractors, to the extent of $400,000." Seetion 8. " The Contractor or Contractors for the section last mentioned (viz. — between " Windsor and Annapolis) to receive a mbvention of not more than 4 pr cent, per annum " for twenty years on (^24,000 per mile of the whole length of the said section, with the " exception of a bridj^, viaduct, or other erection suitable for a Railway across the " River Avon at or near Windsor, tlie latter to be built at the expense of the Province." Seetion 4. " The firtt annual parent of tueh tubventione to fall due, and to be made, at a " period not letis than twelve months after the bona fide commencement to buUd such " sections respectfully." Set Sei Se Se Se Se St S s I & (6) S»elion 6. The Oovernor in Council num, at any time after such contracts or either of them " aro entered iuto, by an Order in Council, declare that the n^entiont or either of them " shall cease, and at what time, and, in lieu of eueh auhventioni or either of them, pay " to tlio Contractor or Contractors, the amount or balance, as th'e case may bo, of such " subvention, or either of them, capitalized either in cash or Provincial Debentures." Section 0. " The Governor in Oounoil as soon as a contract has been entered into for build- " ing the said section last mentioned from Windsor to Annapolis, may make provision, "either by contract or otlierwise, for tlio building of a suitable bridge, viaduct, or other " oreotioD across tiie said Avon River, at or near Windsor aforesaid." Section 7. " The Chvemor in Council mav at any time, before or after the said sections, or '* either of them are or is completed, by an Order in Council, aetume on behalf of the " Province, the ownenhip of the laid leetione or either of them, by paying to the owners *' tlieroof the value of the same, to be ascertained as hereinafter provid^, either in cash *' or Provincial Debentures, at the option of the Governor in Council." Section 8. *' The amount to bo paid under the next preceding section shall be ascertained " by the decision of tlireo arbitrators ; one of whom to be appointed by the Governor in <* Council ; one by the owner or owners of the section, and one by the princioal Score- " tary of State for the Colonies." Section 10. " The Governor, by and with the advice of the Executive Council, may, for the " purposes of this Act, contract a loan on the pledge of the revenues of this Province, " whether arising from the duties upon imports, the sale of crown lands, the royalty "paid upon minerals, or the tolls to bo collected on the railways owned by the " Province." Section 18. The provisions of chapter 70 of the Revised Statutes (1864) referring to Government Railways, were, with certain exceptions in cases where not bearing on the subject, made applicable to the railways to bo built under this Act, the terms ' Commieiionere,' and ' Railway Department ' therein used, were respectively to include the ' contraetore or owner » of these Railways^ and ^property belonging to the contractors * or ownert of the said section of Railways.^ Section 14. " The Chief Engineer of Railways shall report to the Government on the route " or routes proposed, and during the construction of the said lines of railway respec- " tively, shall have power at any time, and at all times, to enter upon the same, and '* examine tlie works ; and it shall be his duty to report to the Government, from time " to time tlie state and condition of such works ; and any failure in the execution, or in " carrying out any of the provisions of such contracts, and generally to watch over the " interests of the Province in reference thereto." Section 15. " Contractors shall arnish names of claimants for damages, instead of Board " of Railway Commit sionors, as mentioned in section 47 of said Chapter, and shall do " all Acts in said section provided to bo done by the Board of Commissioners." Section 16. The moneys payable for lauds for tlio sections hereinbefore mentioned shall " form a county charge." Section 18. " The contracts to bo made under this Act, shall contain stipulations and pro- " visions for the regulation of the tolls and rates for passengers and freight; the " carriage of mails, troops, munitions of war, and other government property on tlie " said lines, and generally for guarding the interests of the Province." The agreement of 22nd of November, luC6, made with Messrs. Funchard Barry & Clark. Section 1. " Whereas an Act of the Legislature of Nova Scotia was passed on or about the " second day of May; one thousand eight hundred and sixty-live, entitled ' An Act to " provide for the construction of two oUier sections of Provincial Railway,' and by such " Act provisions were made for the construction o'' a certain railway from Truro to the " boundary line of New Brunswick, and of a certain other railway from Windsor to " Annapolis." Section 2. " And whereas, in pursuance of the provisions of the said Act, a negotiation has ^been entered into between the said parties hereto, having for its object an arrangement *' by which the said parties of the second part, or their assigns, shall undertake the con- " struction, and (although not authorized by the Act) working of the said section of " the said railway from Windsor to Annapolis, under de provisions of the said Act, sub- t^ lAnf ^rk fliA iAi*ma aYi<1 A/in/4ii:i/\na liai>aiiiat>Ai* mAnfwknail *' ' ject to the terms and conditions hereinafter mentioned.*' m Ai^ 8. •• fl« BikN NdM Mm (nmuAy, til 1866) dhitf te a« »«•<• ^dU* •'■0 flir M It jMMm hwBto, ttiMpt so flnr m ute mum nMjrbj thii agMMMUt bo «BM>dllUid* Tlie OonlvM^ in, ooai4d fiw th«dr own bonoAl, tliat ia, to fluyy Her II«^}aa^a aarwato at 2 oenta per UUe, wd their ^lUdron of fton 8 to 18 jeara af age at half nrioo, and thoae. voder 8 fire^; ofgoen to eancy on^ handred weight of baggaan^ and privatea Ualf thatqiiatttiljr; exoeiia big^ to be paid fbr at 80 oenta per hunarad ml^t per 100 in|lea ; ^, to o»m fler wue*t7*> nUtla at a rate of ohatgea to bo' agreed ijippn by th6 pirtiea hi^to, or t>y ab nmiHire to be ohoion by them in tbe usoal wiqr in caae of diffbrenee, prior to the opmhig of the railway ; and in Mae an umpire cannot be agreed tipon, and abish obargM UtedTbv him, then luoh dmigea ahaU not ezoeed Hba mtea (&rged Ibr Mioli aertiee in the Prorinee of Canada. StiUfm &. <* 11)0. ecmttajBtora to «t«iet and build dver the Avon filTor, near Wfaidaorj a good *< and ni£lui6n:t bridge." 3$eti9m 6. ** The aubTontion, u lanotioned by tjie Lerislatiire, shall be oapitalixed at the *m « iviiff od the sen sial per leir en- (of the Kid I of mt red »P- ties lot led the for rii>- ire ISO ..e. axf be ind ber the ior Si (7) Section 11. " And it ii mutuallr agreod, that prior to tlie oponing ol the railroad, a traflic " arraiipeinoiit Bliali bo mauo Uotwooii tlio said partion of tlio socoiid |)art and tho Pro- " viiicial Uovoriiinuiit, for tho mutual uho and oiuploymont of thoir rospoctivo iinoii of " railway botwoou Halifax and Windsor, and Windsor and Annapolis, including running " powers, or for tho joint operations thereof on equitable terms, to bo settled by two " arbitrators to be chosen b^ tho said parties in tho usual way in cane of diflbrence ; " and in case of failure of said arbitrators to make an award, or to chose an umpire in " the promises, it is further agreed that the said traffic arrangement shall bo settled by " such third person, togethur with one or both of tho sad arbitrators as the Board of " Trado in England shall, on tho application of either of the parties hereto for that " purpose, appoint." * Station 12. " Tlie Government of tlie said Province shall and will well and truly pay, for " tho building and maintenance of tho said bridge across the said River Avon, the sum "of X 82,000." Suction 18. " And it is further mutually agreed between the said parties that the said line " of railway, including tho said bridge, viaduct, aboiteau, or other suitable erection *' across the said River Avon, with all and singular the appurtenances when built, shall " be the property of the said parties of tho second part (i. e. tlie contractors,) or thoir " assigns, and shall be operated, managed, and up holdby them, at their own proper " costs and charges." Section 16. " And it is further mutually agreed, that for the purpose of carrying out tho " agreement, the said parties of tho second part, or their assigns, shall have power to " form a joint stock company, to be incorporated by Act of Parliament of Nova Scotia, " and when and so soon as such company is formed, and capital subscribed to the satis- " faction of the said Chief Oommissionor of Railways of tho Province of Nova Scotia, " tho said intended company, so to bo formed, shall ()0S8e88 tho said railway and works " for the purpose aforesaid, subject to the terms of this agreement." Several Acta have since been passed by the Legislature of Nova Scotia, with the view of reconciling the anomalies apparent in the before recited Acts and Agreement ; but though they in some respects support, still more strongly, the claims of your memorialists, yet as it was on the faith of the Acts and the Agreement before c[Uoted (no other Acts having then been passed) that, your memorialists were induced to embark their capital, they rest their case upon, and (tonfine their remarks to, these. 6, Your memorialists wore led to believe that they were embarking interpreutionofiht in the construction of a Government Railroad ; for all the Acts expressly Documonu. designated it as a Public Provincial Work. The Acts further declared, that it was designed to benefit the Province, and to open up through com- munication with the neighbouring Provinces and States. It appeared to your memorialists, an important portion of the Government system of Railroads, designed to form the Main Trunk of the best through route — as it undoubtedly is — between Halifax, and St. John, New Brunswick. Your memorialists also observed that the Government were to locate the lino ; that tho Counties through which it passed were to provide the land ; that such provision was to operate aa a dedication to the public ; that the Government Engineer was to supervise the work of construction, and to certify the value thereof. Private enterprize, it appeared to your memorialists, was only required to provide a portion of the capital required for the Avork of construction, the Government advancing £188,600 towards the cost. And in reliance on tho good faith of the Government, your memorialists concurretl in the condition, which required them, so long as they might continue to work the Railroad, to carry the Government troops, baggage, stores, and mails at defined and very low rates; and in the restrictions which bound them, on the one hand, to obtain the concurrence of the Government to the tolls to be charged to the public, and on the other, not to sell the line, except to tho Government them- selves, who reserved the power to enter into possession of the Railroad at any time on payment of the cost. (8) Uemorialists relied on protection of tbo Government. Memorialiata com- pleted tliclr pnrt of tlic contract. 7. Your memorialists relied therefore upon the Government both as to the work of construction, and as to the remunerative working of the Railroad when constructed. They also believed that the Government would secure to them a fair interest upon their capital ; and thoy further believed that as the Government could, and no doubt would, take possession of the property when- ever it became remunerative enough to tempt tliem to do so, so also they would take to the property whenever it failed to yield a fair interest on the money embarked in it, and especially so if that jfailuro was brought about by any action of the Government. 8. Your memorialists immediately on their incorporation, and on the faith of the Acts and Agreement before quoted, provided the capital for. and pro- ceeded vigorously with, the construction of the Railroad. The final report of the Government Engineer, presented to the Legislature of Nova Scotia on the 25tli of January, 1870, will show, that your memorialists more than com- {)lied with the terms of their contract, both in letter and in spirit. The fol- owing extracts from that document will, however, suffice to demonstrate this. Grades and Curves. " In this respect the Windsor and Annapolis Railway compares very favorably with "the Nova Scotia Railways, particularly with the Windsor Branch, over which ail " traffic for the western counties from Halifax must be carried." Earthwork. " The width of cuttings averages about eighteen feet, but in many of the clay cuttings " this has been increased. The formation width of embankments is from fifteen to " sixteen feet. Nearly all the embankments were made by carts, and are standing "well." The Avon Bridge.* " The whole of the masonry is built of good sound sandstone and Portland cement, " is first class quarry faced ashlar, well backed with flat bedded stone, and the whole "of the joints and interstices filled with cement." " Great care was taken in its con- " structiou and erection." " Every arrangement was made for the vigorous prosecution " of the work." " The iron work always arrived from England before it was required ; " and in order (o avoid the risk of being behind time, the last two largo spans were sent " from Engla, 1 by the Inman Steamships. Thus in about two years this important work " was completed." Timber Bridges. " The timber used in the construction of all the bridges is the best the country " affords, and is principally black spruce. Every precaution was taken by the Co n- " tractors to have all pilo3 well driven. All the bridges have been thoroughly tested by " the passage of heavy trains, and have stood well." Ballasting. " By the schedule a quantity of ballast, not less than two thousand five hundred " cubic yards to the mile, was required. This has generally been exceeded." Permanent Way. " The whole is laid with the ± rail of two patterns, one weighing sixty-seven poundsf " to the yard — the heaviest rail laid in the country ; the other weighing fifty pounds to " to the yard. Tlie sleepers are principally of black spruce, nine feet long, ten inches " wide, and five inches deep, half round, or flatted, and the mils are carefully bedded " in each. There are over two hundred thousand sleepers in the road. The trains run " very smoothly, with remarkable freedom from oscillation, even when a good rate of " speed is mahitaiucd ; and the fish plate gives a good smooth running road." Stations. " The contract specified that the Contractors were to provide ten stations. Thero * Tliis your memorialists migtit liare built of wood at a considerable saving of expense to tbem. f It will be observed that your memorialists were only required to lay down rails weigliing forty-two pounds to the yard. (9) " arc now twenty-ono on the line. Of those, the principal ones are at Eentvillo and " Annapolis. At both those stations, in addition to the platform and siding accommo- " dation, there are roomy engine slieds, oacli to hold three engines, turn-tables, &c. At " Kentville a largo addition has been made to the engine shod for tlie purposes of a " work shop." Annapolis Pier. " At Annapolis a goods shed has been erected, and a first rate timber pier, built with " crib work well ballasted." " It is four hundred and fifty feet long." " It has a floating " landing stage, and is a very substantial work. Tliis was not required by the contract." Rolling Stock. "The quantity in list anne.\od has been provided by the Contractors. Six of the " engines were sent out from England, and are specially designed for heavy work. Tliey " burn either coal or wood, weigh about fifty tons, and in their design the latest im- "provements were introduced. Tlio boilers are remarkable for their strength." Completion of the Line. "On the 18th of August, 1869, Cviz., four months before the contract time,) seventy " miles of line, from the Gaspereaux to Annapolis, were formally opened by the Gk)ver- •' nor General. Since that time a portion of the lino between Horton and Wolfville has, *' however, been damaged by the breaking of the dykes from high tides. The injury " done was immediately repaired by the Company, so that in December everything was " ready for the opening, and on the 18th of December, a few days later than the con- " tract time, the whole road was open for traffic* 9. Your memorialists having thus completed the construction of the Railroad, proceeded to operate and manage it in the best possible manner. But, though they have continued to work it with energy and regularity now for more than eighteen months, it is with regret that they find, as already com- municated to the Government, that the income, after payment of expenses, is insufficient, not only to permit of any return upon your memorialists' capital, but also of the pavment of any considerable portion of the interest upon the debenture debt. "^Tour memorialists are also, as a consequence, unable to raise the capital with which to discharge the principal of the debenture 'lebt ; and they have therefore been obliged to embark further capital, and incur further liabilities, together amounting to about £60,000, in order to provide for the wants of the Railway, and to meet the accruing debenture interest : and your memorialists venture to submit, as some proof that this deficiency is not due to want of management on their part, that the result of the work- ing of the 145 miles of Government Railways in Nova Scotia in the year ending the 30th of June, 1869, was a gross income of $272,237, obtained upon an ex- penditure of $268,660. (Vide Appendix No. 17 to the General Report of the Minister of Public Works for the year ending 30th of June, 1869.) Whilst in the proceeding year, the income was but $253,994, obtained upon an expen- diture of $255,53d. 10. Your memorialists, under these circumstances, feel themselves com- pelled, with great regret, to state that they cannot offer to continue to work the Railroad under the present unsatisfactory arrangements with the Govern- ment; and they therefore throw themselves upon the protection of the Government, to which they humbly submit they are entitled. 11. Your memorialists venture to submit, that their embarrassments have been greatly increased by the action of the Dominion Government, (who have in this matter become the successors of the Government of the Province of Nova Scotia), who in ignorance, doubtless, of the circumstances under which your memorialists were led to embark their capital in the Railroad, have not only deprived your memorialists of all protection and support, but also denied Mcmonaliats have continiicil to work the line. Roaiilt unsatisractory. Memorialists tlirow tliemselvcs upon the protection of tiie Qoveramunt. Embarrassments in- crenscd by action of Oorernment. * But for the breaiciog of the dylces, over which your memorialists had no coutrul, the whole of the road would have been opened considerably before the contract time. Oonfederation hM altered the viewi of the QoTeni- ment, and made them oompititon. Public and private grounds why Ue- morialiBta ihould be protected. (10) them rights and facilities specifically conceded by the Legislature of the Province of Nova Scotia, and have further fostered and subsidized rival enterprizes con- trary to the spirit and intention of the agreement entered into with that Legislature. 12. Your memorialists are impressed with the belief that the lukewarm, and even hostile, attitude assumed by the Government towards them, has arisen in the main with Confederation, which has made the Government interest in the Intercolonial line of paramount importance. At the time when the Annapolis line was first designed, the Government of the Province of Nova Scotia intended to construct, own, and work the line to Amherst, on the New Brunswick frontier, as well as that to Annapolis, on the Bay of Fundy ; their interest, therefore was, if anything, greater in the Annapolis route than in the Amherst route, the distance from Halifax to Amherst being 122 miles, whilst that to Annapolis was 129 miles : And even when in 1865 the Act was passed authorizing the construction of the lines from Windsor to Annapolis, and from Truro to Amherst by private enterprise, the interest of the Government, viewed in its narrowest and most mercenary light, was but a trifle greater in the Amherst route, seeing that the distance which would then have had to be traversed over the Government lines proper, would have been by the Annapolis route : Halifax to Windsor, 45 miles, and by the Amherst route : Halifax to Truro, 61 miles ; And as it was then clearly the intention of the Government to acquire both the Windsor and Annapolis, and Truro and Amherst Railroads, which, for financial reasons, were at that time designed to be made by private enter- prize, in the first instance ; the ultimate interest of the Government in the two routes was, as before stated, somewhat greater in the Annapolis than in the Amherst route. By the Act of Confederation, the interest of the Govern- ment has become absorbed in the Amherst route. In the first place' the Bailroad fi-om Truro to Amherst, which in 1865 was to have been made by private enterprize in the same way as the Windsor and Annapolis Railroad, was incorporated into, and made part of the Intercolonial system, which at once gave the Government a preponderating interest in the Amherst route ; the interest in the Amherst route being thereby extended from Halifax to Amherst, 122 miles, whilst their interest in the Annapolis route remained confined to the distance between Halifax and Windsor — viz. : — 45 miles. In the second place Confederation still further increased the prepon- derence of interest in the Amherst route, for by it the whole Intercolonial system from Halifax to Riviere de Loup, and from Shediac to St. John, 498 miles, has become the property of the United or Dominion Government, so that it is now the policy of the Government, as has been stated by its officers, to crush out the opposition of the Windsor and Annapolis line. 13. Your memorialists, however, submit that such considerations cannot weigh with a Government so enlightened as that of the Dominion, when once they have the circumstancns cannot when once alists sub- are bound ase, which serves the ) the Pro- ent of the I'i 'I i original grant. (11) Nova Scotia Railways, in his Report of October, 1870, to the Minister of Public Works, speaking of the Windsor and Annapolis Railway, states — " Wlien this line was opened for traffic, the steamer plying between St. John, N. B., " and Windsor, N. S., during the summer months, was withdrawn from the route, and " placed on the route between St. John and Annapolis, connecting with the railway at " the latter port. By this arrangement a regular communication was kept up during " the winter months, between Nova Scotia and New Brunswick, thereby supplying a " want long and seriously felt in both Provinces." But beyond this, it is a fact, that the Revenues, and the value of lands and all other property, in the Counties through which the Railway runs, have been doubled, and even trebled, since the projection of the Railway. And though your memorialists admit that for military purposes, and as a means of communication with the more distant portions of the Dominion, the Inter- colonial Railroad is of great value: yet for the more important purposes of trade and commerce, the Windsor and Annapolis Railroad supplies, not only a great and pressing local want of the western counties of the Province of Nova Scotia, but aifords a route .shorter by 84 miles, more expeditious, and considerably cheaper than the route via Amherst, between those two most important centres of trade — Halifax and St. John, New Brunswick. 14. Your memorialists further submit, that apart from any hopes of insnfficiency of assistance to which they may have been led to look forward, the government contribution of £188,600 was most inadequate, amounting as it did to but £2,200 per mile, out of a total cost of upwards of £9,000 per mile.* Your memorialists also submit that the subvention sanctioned by the Act of 1865, viz.— of 4 per cent, on $24,000 per mile, equivalent to a total subvention of £16,320, sterling, per anr i, although terminable in twenty years, would have been more advan* is to your memoralists ; and further, that if such subvention had been ' -cuized in the terms of clause 5 of that Act, the cap- italized sum to which your memorialists would have been entitled would have been £326,400. Your memorialists further submit that even the original sub- vention was very small, when compared with that offered for the construction of the Railroad between Truro and Amherst, which amounted to 4 per cent, on $40,000 per mile, being equivalent to an annual payment of £19,200, sterling, for twenty years, besides which the Government panted a subscription of $400,000, or £80,000, sterling, towards its cost ; whilst on the 4th of March, 1864, the then Provincial Secretary of the Province of Nova Scotia, in a letter written by him to the European and North American Railway Company (vide Appendix No. 7 to the Journal of the House of Assembly of Nova Scotia for the year 1865) offered a perpetual subvention of £16,000, sterling, to facilitate the construction of the same Railroad. 15. Your memoralists would humbly beg to point out that numerous unsuccessful attempts were made to induce capitalists to embark in the enter- prize, even on terms much more advantageous than those granted to your memorialists. Before your memorialists were led to embark their capital, an agreement had been entered into with the Contractors, Geo. Knight & Co., of London ; and on the 14th of March, 1866, an Act was passed by the Nova Scotia Legislature, incorporating a company, with the object of giving effect thereto, a clause being inserted, however, providing that " This Act shall cease and determine if the railroad herein contemplated and men- " tioned shall not be effectually commenced and vigorously prosecuted within six « months from the passing hereof." Failure of prerioui contractor. * The one hundred and forty-fire miles of Railroad constructed by the QoTernment of Nova Scotia coat $6,791,264, or equal to $46,837, or £9,367, gterling, per mile. (Tide Appendix No, 17 to the General Report of the Uiaiiter of Public Worka, 1869.) Financial preHors in ProTince. (12) Another clause also provided " That tl>o amount of tlio subvention to be paid hereunder shall bo reckoned on " eighty-five miles or £16,320 sterling per annum to bo paid half yearly in London the '■'■ fir»t payment thereof to fall due six monthi after th» comnutuement ofthetoork." And yet on these more &vorabIe terms the arrangement fell through ^om tho inability of those contractors to give effect to it. As showing further the diffi- culty experienced by the Province in inducing capitalists to embark in the onterprize, they venture to refer to the Report of the Chief Commissioner of the (jfovernmcnt Eailwavs of Nova Scotia, bearing date tho 31st of October, 1866. (Vide Appendix Wo. 11 to the Journal of House of Assembly of Nova Scotia, 18^7,) which contains the following paragraphs : " I regret to say that owing to the B^nancial panic, which occurred in Bngland during ** the early part of the present season under which several of the most noted railway " firms succumbed, and which spread general distrust throughout money circles in Eng- " land and on the Continent, the parties who contracted to build the Windsor and An- " napolis railroad w ere unable to fulfill their engagement." " The Honorable Provincial " Secretary and other members of tho Government who have been in London since " July last on other important business, have been indefatigable in their exertions on " behalf of this Line. I think I may say this, that the people of the Western part of " the Province may rely upon some means being found to push on the work with vigor " during the ensuing year. The Government is virtually committed to the undei^ " taking and will not see it abandoned." 16. Your memorialists also submit, that their interests were most seriously affected by the pressure on the financial affairs of the Province, at the time they, embarked in tlie enterprize ; of the 288 miles of Railroad sanctioned in 1854, but 95 miles had been completed ; yet the debt of the Province had increased to nearly five million of dollars. And it appears from a minute of the Chief Engineer of the Government Railways of the 10th of December, 1864, (vide Appendix No. 7 of the Journals of the House of Assembly of Nova Scotia, 1865,) that considerable difficulty was experienced in providing the capital, to secure the completion of the Windsor and Annapolis Railroad, after an adequate provision was made for the completion of the Pictou branch, without making the debt of the Province to exceed the figure of eight million dollars, with which ii, had been agreed the Province should enter the Dominion. This minute is as follows : " Nova Scotia Bailway. " The Government of Nova Scotia desires to secure the construction of a, Railway " from Truro to Moncton ; this, forming part of the Intercolonial, would be built at the " expense of the United Provinces. In anticipation of an union at an early date, this " line may enter into a general arrangement now proposed and its construction be com< " menced under die subvention resolution of last session.* The Government desire to <' secure the construction and completion of a branch to Pictou, and a branch to An- " napolis, for a sum which added to tho present debt of the province would not « exceed $8,000,000 " Present debt 4,858,547 8,141,468 "Pictou line estimated to cost 2,000,000 $1,141,453 "The balance $1,141,458 for the Annapolis line, would not at present be available " and this work would have to be commenced under the subvention resolution passed " by the Legislature lost session."* * The ReiolDtion above referred to was pagsed by the Honorable the Hoaae of AsRembly of Nova Scotia on the 11th of April, 1864, and wai as follows ;— •■ Httolved, That the Executive Government be authorized to secure the construction of the railroad from Truroi (13) " On the Union of the Provinces, the existing raiiwajs, and the Pictou extension, will *' belong to the Confederation Government. In the meantime, the Oovornmont of Nova <' Scotia, in order to facilitate arrangements with parties disposed to carry out these ex- " tensions, will be disposed to lease these lines, receiving therefor the actual net eamingt " until the Union of the Provinces be offocted. Upon the Union of the Provinces tliese " railways to l>e held under the Confederate Qovernment upon such equitable terms as " may be agreed upon. In the event of the Annapolis line, being completed before the " Union of tlio Provinces is effected, it will be operated in connexion witii tlie otlior " linos and under the same management the actual receipts of tlie whole to be allotted " as under. After tl:o Union a similar equitable arrangement to be made. " Lines construitel 93 miles ) ..^o "Pictou line 60 " J "" " Annapolis 85 " 85 228 228 *' Due to the Province Jil of net earnings " Do. Annapolis lino ^ do. do. " In the construction of these lines the Province to furnish right of way and fencing " free, and materials for construction to be carried on existing lines free of charge "(handling not included.) In the Union of the Pro\.iices the balance, $1,141,453, " may be paid for the Annapolis line in lieu of the 20 years' annual bonus of £240 per " mile under the subvention resolution. " The proposed arrangements embrace the following points : " 1. The working of existing lines in the Province, and all lines to be constructed, under " one management on equitable terms." " 2. The building of the Annapolis road under existing Legislative enactments." " 3. The commencement of the Truro and Moncton sections under the authority of the " legislation already obtained." " 4. Tlie completion of the branch to Pictou and Annapolis, for such a sum as will allow " Nova Scotia to enter the Union with a debt not exceed hig f 8,000,000." This document, though ambiguous in some respects, shows conclusively that in order to conform to the terms of the proposed Confederation, and at the same time, secure the commencement of the system of railways which the people of the Province were eager to have completed, the Annapolis line, of 85 miles, was to have allotted to it, but $1,141,453 = $13,429 per mile, whilst the Pictou line, of only 50 miles, which was to be made by the Goverment them- selves, was to have allotted to it |2,000,000 = $40,000 per mile, and assuming the cost of the 95 miles of line, then completed by the Government, to be represented by the then debt of $4,858,547, they cost $51,142 per mile. The arrangements shadowed forth in this document, were evidently intended to bridge over the gap which existed between the completion of the Railways and Confederation : for the same clause which provides that the line from Truro to Monction was to be commenced under the subvention resolution passed by the House of Assembly, also states that it was to be made a part of the Inter- colonial, and constructed at the expense of the United Provinces : and so again it was provided that the Annapolis line should be begun under the subvention resolution, and afterwards re-arranged after the Province entered the Union ; " or from the point of junction with the main line to the border of New Bruntwick, through the agency of any " responsible company, provided no greater liability is incurred than 4 per cent, per annum, upon a capital of "£10,00U, currency, per mile, for a period not to exceed twenty years ; and provided connection is thereby " secured with the railroad from St. Juhu to Shediac ; and that the Qovernment bo authorized to procure the " construction of the line west of Windsor, in the same maoner, to the same extent of 4 per cent, on a capital "of £6,000 per mile-" Iffect it th« OoTtrn- ■leiit bkd con- ■tructed the line. BcftiMl of OoTern- ment to admit rights apcdBcslIj conceded to He- moriallite. f (14) whilst so far as concerned the Pictou branch, the allotment was, for some reason not explained, made fairly ample and definite. 17. Your memorialists would further point out, that had the Government carried out their original intention of constructing, owning, and working the Windsor and Annapolis line themselves, it would, even if it had not cost them more than your memorialists have paid for it, have cost them £770,600 ;* the annual interest on which, at 6 per cent, per annum — the then borrowing rate of the Province of Nova Scotia — would nave amounted to £46,236 ; whereas the Province now, having all the same advantages from the Railroad, only pays £13,236 per annum. 18. Your memorialists humbly beg, further, to {mint out some of the more important instances in which the Government have infringed the specific con- ditions of the Acts and Agreement before quoted. Firstly, and most importantly, they have refused to allow your memorialists to exercise the rights conferred by clause 11 of the Agreement, which provides — , " That prior to the opening of tlie railroad a traffic arrangement shall be made be- " tveen the said parties of the second part (viz. — the contractors), and the Provincial " Government, for the mutual use and employment of their respective lines of railway " betwoen Halifax and Windsor, and Windsor and Annapolis, including running powers, " or fo.- the joint operations thereof, on equitable terms, to be settled by two arbitrators." Your meLiorialists, several months before the line was completed, applied, through their Manager, to the then Minister of Public Works, at Ottawa, as to the exercise of the running power into Halifax, when the Minister intimated that he intended to visit Nova Scotia, and would then look into the matter. The Minister subsequently made the promised visit, and then declined to act in the matter. At this time the line was rapidly approaching completion, and the Manager, failing in his endeavours to obtain arrangements for the exercise of the powers, entered into a temporary arrangement with the then General Superintendent of the Government Railways, for the interchange of traffic. This arrangement, it was distinctly understood, was to be provisional only. Your memorialists need hardly say, that these running powers are essential for the accommodation and developement of the through traffic ; without such powers, your memorialists are quite unable to make the arrangements necessary for the developement of that traffic, upon which the success of the Windsor and Annapolis Railway must always largely depend. Secondly, They have imposed upon your memorialists the payment of duties upon materials and stores imported for the working of the Railway, in direct violation of the provisions of clause 9 of the agreement, which provides — " That all materials and stores required for the construction and working of the rail- 's way shall be entitled to a drawback of the amount of import duties paid thereon." Thirdly, They have allowed your memorialists to be assessed for local taxes, from which your memorialists, as owning a Public Provincial Work, * The £770,600 given above, ai the cost of the line, is made np as folloiva: — OoTernment contribution £188,600 CapiUl of W. and A. Company 300,000 Debentures and floating debt „ 350,000 Cost of Avon Bridge 83,000 le nt \ie m he ,te as ya re n- ur at. be- sial ray rs. ed, ito lat ■he ;he the lOf ral fie. Lial ich nts of ties •eet rail- )cal )rk, I^; (16) were to be exempt, under the Revised Statutes of Nova Scotia of 1864, 28 Vic, Cap. 46, Section 16, which provides — " The follomng property shall bo oxetnpt from taxation : — ^Tho Provincial Poniton- " tiary, and the lands attached thereto. The Provincial Lunatic Asylum, and the lands " attached thereto. The Provincial Railway, Boiling Stock, and fiaUway Stations, and " lands attached thereto, or to the Railway." Your memorialists having submitted this question to the Attorney General of the Province of Nova Scotia, they beg to quote from his opinion as follows :— " That the section is a Public or Provincial Railway is perfectly obvious," and again " to render it clear beyond a dispute tliat the section is a Provincial Railway and Public " Work ; the Statute of 1865 expressly provides that the Oovernmont shall at any timo " take the road entirely into their own hands. As long, thoroforo, as tiie Company am " allowed to hold, manage, and operate the Railway, it must t>e considered and looked " upon as a Provincial Railway, in the hands and possession of a private company or " corporation, who, in consideration of what they have contributed towards its construo- " tion, are allowed to have the management of it, and to receive the profits or earnings " of it to their own use, subject, however, at any time, to band it over to the Government, " upon receiving reasonable compensation for their outlay in its construction, and other " claims upon the property. In this light it may be viewed as a Public Railway in the << hands of a private corporation as (juan) Lessees under the Government." Fourthly, They have failed to comply with the provisions of clause 7 of the Agreement, which provides — " That all lands required for the railway track and appurtenances shall be provided ^^ffratii," " as under the provisions of section 11, chapter 70 of the Revised statutes" (already quoted.) Your memorialists have in one case been sued for a large amount, and have in several instances been threatened with expulsion from the land taken for the Railroad, involving them thereby in considerable litigation and expense. Your memorialists have further never received the land required by them at their Windsor station, although they have, with a view to relieve the Government of expense, agreed, at their request, to receive other lands now in the posses- sion of the Government there, which are, in your memorialists opinion, inferior for their purpose to those originally scheduled by them. Fifthly, They have failed in several respects to comply with the provisions of clause 6 of the Agreement, which provides, " That for the subvention," " capitalized at the agreed sum of X188,600, sterling,' " the Provincial Bonds, or Debentures, issued iu the ordinary form, bearing " 6 per cent, interest, shall be delivered at par to the parties of the second part " (viz. — the Contractors,) or their assignees or nominees; but such Bonds shall only be " delivered with the coupons attached, bearing interest from the preceding Ist of Janu- " ary, or 1st of Julv, as the case may be, prior to such delivery : such delivery to tlio " said parties shall \>e within iDurtcen days from the date of such certificate." Your memorialists, almost immedintcly after they had commenced the work of construction, were informed that the Government would have to substitute cash payments for the Government Bonds. Your memorialists subsequently learned that the inability of the Government to issue the T^onds arose out of a previous contract with the Messrs. Barings, of London. The payments were made in cash in lieu of bonds, and a large discount was moreover insisted upon, and deducted by the Government from the par value. Your n^emorialista deem themselves entitled, therefore, to receive from the Governaaent the amount not only so deducted, but also of any premium obtained by them upon the Bonds. As the Bonds were to have carried interest as from the preceding (16) Prayer of H