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Lea diagrammea suivanta illuatrent la mAthode. 1 2 3 1 2 3 4 5 6 ^.y£/^ V IMH THE AUDITOR GENERAL'S REPORT ON AN APPLICATION FROM THE PRESIDENT AND DIRECTORS OF THE SAiT AIREWS & QUIEC RAIlWAy, FOR A FURTHER ISSUE OF DEBENTURES. \ REPORT ON APPLICATION FROM THE PRESIDENT AND DIRECTORS OF THE SAINT ANDREWS AND WOODSTOCK RAILWAY COMPANY, roil A FUBTHEa ISSUE OF PROVINCrAI. DEBENTURES UNDER THE FACItlTY ACTS OF THE LEGISLATUHB. ft J, • ''"«' ''*""S '>»'"■'« alleged as ovcr-oxpcnded after deducting £30,000 sterling of Debcmuros already' "sned at various ,„es by the Exeeu.ive Go,ernn,en,, as well as . corresponding sum of ilSO.OOO sterling paid in by the Companv lo entitle them to such issue. ' • Before going into particulars regarding this claim, it will be necessary to refer to the two Acts of Assembly of 1851 and 1852 granting the facilities in aid of .he construction of the Railway, and the views taken and acted upon by the late ImZ'""- " ".""'i" "" "■" '"■"''"" ""-J P™'-<=ia' Board Sis eLI '"^T '" ^*'"^"''"'' '""'■ ^""y •"<' «"r'y before His Excel oncy the Lieutenant Governor in Council. law in this Province on the 9th day of July following, it havinir ri:ri.;;u''rT'7 ''''''''■ THefirsts^tiru:! " auebeTRaT Vr" '''«"''»"»" "f the Sain, Andrews and Quebec Railroad Company shall pay into their Treasurer at l?oved L't? ,"' ^'■'^ """"^' """ " """' "« -'isfacto i?; •■ K r: :^z*:s'"- %t' i "'""""' "■" --' -■» uLiuauypam ,«, uiid is ready lo be expended in the l^f.< ♦• conttruction within thit Province of a nallwny from Snint •• Andrewn to Woodcock, the Provincial Treasurer shall he *• authorized by the Lieutenant Governor in Council, to nub *• Bcribo, on behalf of the Province, for iharcfl in the siiid Com- •' pany to tho tiko amount, and in im)ment therefor to deliver •• to the said Company «pecinl Certificatcn of Debt, to be called " Debentures, bearing interest at a rate not exceeding six per *• cent, per annum, tho principal money redeemable in thirty *' years ; and so from time to time when it shall bo satisfac- *• torily proved to the Lieutenant Governor in Council that the " sums theretofore subscrilMjd and paid in by the shareholders of •• the said Company, and the proceeds of the Debentures pre- •• viously delivered, hnvo been expended in the construction of •• the said Railway, and that a further sum of at least £2,000 •• sterling has been actually paid in by the said shareholders, " and is ready to bo expended in like manner, the Provincial " Treasurer shall again be authorized to subscribe on bohalf •• of tho Province for shares in the said Company, to an equal " amount to the sum so paid in and ready to be expended, and " also to pay in full for such shares by a further delivery of " Debentures ; provided always, that the amount of shares in *' tho said Company subscribed and paid for by the Provincial •' Treasurer in any one year, shall not exceed the sum of " £20,000 sterling, and in the whole shall not exceed the sum " of £50,000 sterling ; and provided always, that thesha es to " be delivered to the Provincial Treasurer on account of the " Province, shall be of the same class and description as those •• paid up by the shareholders of the said Company, for the pur- " poses of this Act^ The first application to the Government under this Act was made in August 1851, accompanied by an affidavit of John Wilson, Esquire, President, and J. Robinson, Esquire, a Director of the Company at Saint Andrews, for Debenturec to the amount of £2,000 sterling, to meet as they allege a corresponding amount then paid in and expended on the said Railway since the 28th March 1851. This amount, as they represent, had been paid in by the Class B Shareholderi. The Bp|)lic»ti«n wnn iimtninod, nnd Doliontiircii wrro isNiicd by th« Govornnurnt in Soptomher 1851, for wliirli (.'.'rtifirnfei of Stork of tho unnuHh'icriptioM were receivrd to a liko amount. Tlio Corfificiito rittnclied to tlio (xitiliori and nffidnvit from Mr. Whitlock, Serrrtiiry to tho Ilonrd. Htmea that up to that time, Augugt IH5I, X.'I.'J.OOO currnit'if hadhven expemlvd for IhiUwoy jmrpoHt's by the Board. It will l,n ohs^Tvcd that by the terms of the facility Act of 1851, the Compam/ could onhj claim Dcheuturet ai they from time to time paid' in money, and were prepared to furnish iStocIc of the class and description in Shares as those paid up by the Shareholders of the Company for the purposes of the Act. Tho ClasH B SImroholders failed in mak- ing further payment, and the Claw A Sharohoidcrs in Rnglund having their paid up Stock under their own control, or probably, and in ftct no doulit havin-,' n()propriated through tho Directors there the money from time to time called in, to meet former liabilities, the facilitici*, ho far as this description of Stock stood, for obtaining Debentures, could not bo made available by the Company on ihi.-' side. Thry therefore had no paid up Slock or Shares to offer the Government in exchange for Debentures as prescribed by the Act. See Act 13th Victoria, Cap. 1, intituled •* An Act relating to tho Saint Andrews and Quebec Railway Company." So much for the first Facility At tho next meeting of tho Lcgislntaro in 1852, tlio Com- pany applied by Petition under date of January 10, 1852, {See Petition herewith.) for an Act of Assembly to amend that of 1851, in order us they allege, to remove the difficulties for obtaining Provincial Debentures ; and inter alia, they set forth " that the speedy completion of the remainder of the line, (that " is, the lino from Waweig to Woodstock) is rendered certain *' by a Contract having been arranged for between the Com- " pany in England and Mr. Shaw, of Leeds, for its construction ** to Woodstock ; and which your petitioners were enabled to " entertain mainly through the facility Bill passed at the last " Session of the Legislature, granting an issue of Debentures *'for £50,000 sterling:' This Petition clearly shews that at that timo the f„clllty Act ffrnnting fifty thoumin.i p«„„,N .terlinir Wtts ■till nvailahle, nnd mi» oonHi.l,.re«l ono of f|,c g«„rres from whichtliooi,M,ctmlC«ntraclor»w.,rotomM.ivo,myin,M.tfortl.«ir work. Th« l»«tition further nhmvii •' that i.nfor«e«n dimrultie. " have ar,.en. ami pronent thom.Hvo. to your petitioner, by the peculiar wording of Huch Aet : Firnt, l.y the fir«t Section not clearly shewing or definiuK the nature of the Stock which •• the Company are to transfer to li.e (iovcrn.nent in exchantfo for, and in consideration of the receipt of «uch Debenture •BondH, &c. &c.;" und they pray -that your Honorable •• House will be pleased to obviate and remove the dimoulties •• 8et forth, by altering nnd amen.linff the fir-t Section of such ' Act by expunging in the first Section the words commcnrinir •• ut rrovUed always, that the Shares to be Uelieered to the •• Provincial Treasurer on account of the Province, shall be of ^^ the same class and description as those paid up by the Share^ y%i'.mt»&iewwmm£''. thejf could suhHantiaW under the Act of 1851, and in fact alt that was ttppUed for under that Act. On tlio 18tl, Juno 1852, (he Director! come fi.rvvard and aik for X4,(KM) iterling additioniil D.dienturci to be iisuod. They nllego a^ a reason that £i,m) sterling additional, lince •uch e«,.endituro, had hc^n duly paid in to the Troaiurer of the laid Company. They lupport their application by the requii.to proof, and nffidavilH, among which is a cortifirate from the Treasurer that X4.(KK) nterling had been paid in, and ready to be expended for the piirpoM-s of the road within this Province. This application waw made under the amended Act. The Class A Stockholders paid the money, but the Pro- vince was obliged to take Class I) in satisfaction. The Debentures were issued, and Class 1) Stock received accord- ingly. No further claim for Debentures was made that year, properly authenticated. On the 18th April 1853, an Account is furnished by the Directors at Saint Andrews, shewing the expenditure of the X4,000 sterling, the last Debentures issued, as well QH a similar sum of je4,000 sterling in the hands of the Treasurer, which caused them to be issued. They then shew that in addition to the X8,000 sterling thus laid out upon the road, they had up to that time expended the sum of £12,047 6s. lid. out of funds furnished by the London Board, for which they produce detailed Accounts, accompanied by certificates and uflidavits, and they ask for Provincial Debentures to a like amount. These documents were referred to Messrs. Chandler and Pnrtolow, a Committee of Council, who reported that they were of opinion the Company were entitled under a liberal construction of the Act, to Debentures to the extent of £11,000 sterling, which report was sustained by His Excellency the then Lieutenant Governor in Council, and Debentures were issued accordingly. Taking rather a more extra liberal view of the Act of 1852, the Government allowed in this issue £7,000 sterling as paid Sykea & Co. on the ten miles Contract for work performed, when at the same time it clearly appeared, that after the passing of the Act in 1852, it was expected both by the London Board and the Contractors for the road from by thu fudli.y Art of .h„t y«„r, w«, Lll , ^ *""'"•** to c«,„p|«t« th^t , of th/ro 1? vv" ? "" •*" •^"•''•'^ •un. of xu,(HH. ...„i,., «.u«nn . : 1' "'::;V'"* "■• ponJ«.Ii and the I)iroc.„r. .ct forth .fc».i> "" "" ready for o.,,„„di,„„,, f^, Tl.i ' , '" ,"*"" ''""»"•• ropnrl to Iho Govormnout 'I'l.i , Dirociori, and Council rop„«.d f~;v a nu ''?"-""■ ^"""""'««of «". Karl, in 1854 .l.o C „ ^ ^Z Tl' r""''"'"W be..™. di.,a.i.ned wi.l. .l^eo, mi. „".' 7 /"■•':"' ''»-"« the rood from VVa.voi» i,. w '."'"' "' "'« Contractor, for Work. ,.„.,er th: Ta^' .l";'': "t '""'^ "" """' """» "" .n.iro control „„d nm „gl„„ „t r'™"' '/ 'f'"* "•• wa» not until a late „orio.n^!r. °"" ''°"''"' »"'' " ««.en,e„, to the Go „1' . h '""' ."'"' ""^ """"""=«' • *7.000 sterling ,^°i nT,!„ , * "," <'«'•«"'«"■" of .ho Among .1,0 i.ol.h" "^"T' "'''° '■'''"'"''■' ""f-vourablr. " r" '''"""'"■ ^hi- wa! Government in April ,85, and a '"'r '"" "'"■'"«' "^ '"a «oMe..r,.„a.ch-:.zrr::::^::s:-x^ '•f -«#«»-:».» Co „.c.l. «,!,„. .hoy ,„co.„,„„„,| ,„„, X«,()(H. LrC Ilif ■ ^ .ion on^lT "'::''"«•"■"' "'-I'""" "'» I'rovincial ,,r„„a,. t on uf all , ,„ „„,r„,, ,|,„, „,„ c,„„,,„„j, ,„„,,, ,.,. [^ I no,v proceed .o invn.ii;f„,„ ,|,„ i,e„, eontnincd in .1,^ * ::".;o p::7 ""' "t '" """" »«"-- "'":c « „ .terhng. u. „,c„,i„„„d i„ „,o n«. p„„ „f ,L Repor',! Sterling. The Acconnt .ho«r. (o.M „,„o„„t of expen.Iieur. wifhin th. Proriuc, r,n„ .h« 2H.b M„eh 1B5I to thJ ,.e 17; ^ ''* ^.. .,-y , ,^ Debenture, rccoiml from Oorprnmeut. ^30 000 P..di„ by Shareholders. corre,poudi„g„a.„u„t to meet them, 30,000 cn.noo o o To t i, t b. a,bled an error in c„.cm„.i..„ brh.gi;; curr.n;; »Uo tttrlwg, „gai,„t the Company. . . . . '""""^J' Total claim of the Compauy, 30 -£l2,.S()f) sTF The above »um. of X72,279 5 11 a„d X30, in allXTaSOU 5.; Hd., are particularised in si, several Aec^nn... ffo™ No 10 No. 1. O.enprHl ConitracHon Account, amounting to £\3,350 6 3. Thid Account contains charge, for the fi«t time claimed from the Provino. vrhiclj are a* follow :— * Iron furninhed on ten mile Contract, .. .. .. jCS |32'7o^* Work tlouo by Afyers & Co. on ten mile Contract, itipulateV to bo completed Gist June 1850, before pasting first /r-'"'"'"' 4,860 17 hundrics ns particularised, expended from April 1851 to ^P"'^^^- 1,490 U 3 ^11.474 1 3 No. Amount paid James Sykes & Co., on account of their contracts, £65,426 12 3 currency. This Accoimt contains particulars of payment as follow:— Paid Sykes & Co. by London Board, £44,175 9 3 sterling, and is dated January 29, 1855, certified by J. W. Byrne, Secre- ta»y London Board, and S. H. Whitlock, Secretary Colonial Board. Vouchers are produced to show this expenditure ; it com- mences AugiU 10, 1852, and includes £5,560 paid them on the ten first miles contract, which latter sum has been allowed as a charge in the transactions between the Government and the Colonial Board, under Sykes & Cos. contract of 1852. This contract was entered into June 15, 1852, and was for £7,560 sterling; add to which £1,000 sterling allowed them for extra work, makes the amount £8.560 sterling, £5,360, as 1ms been shoivn, were paid by the London Board, and the remainder, £3,000 sterling, as will hereafter appear, paid by the Colonial Board. The vouchers include the Iron, &c. pur- chased, payments in money made Sykes & Co., in EnHand and the monthly estimates of work done, as furnished by Mr! Light the Engineer. A number of these vouchers are such as would not be deemed sufficient in making a proper audit on this account. True Uiere are acknowledgments of Bills accepted by the London Board, and money paid Sykes & Co. at various times; but in many cases nothing is shown that they were so paid and •in tU Provlnot, unl of their nes; but in II receirod, on account of tl,o contrnct then in tl.o course of ner- fornmnce For .n.tanco, ,>vo bill, of £m sterling end ore .ubjnmed drawn by J„,„„, Syko, & Co., Saint An.lr"w;, o„ fej-ke, 4 Co „f L,verpo„l, but it is „„, ,b„,vn who paidTher Ag„.n, .t would appear that *517 7s. sterling wore for clpcT; concurred by tho London Boar.l. to raise ^7.500 sterling to meet unpaid shares. ° In fact in the absence of a regular authenticated account be weon Sykes & Co. and the London Board, and of one Z between the London and Colonial Boards, i, is ^„i,e -"Zl so to c ass,fy U,e various i,cn,s as to „,„kc a report 3 el .n.elhg.ble. The- Account now under considera.'on a so c„t tn.ns particulars of payment, made Sykes & Co. by the Colo- n,„l Board, made up and commencing August 27Vl852:as Pai.1 Sykes & Co. balance often mile Contract . Sundry other pajujeuts, i:3,000 7,350 16 2 AiiT , r. Sterling, Ad.] London Board's A ecount ngainst Sykes & Co. as detailed, Sterling, Dollars 0) 48. 2d. sterling, add l-Sth. •£10,350 16 2 44,175 3 £54,526 10.905 5 1 _,, Currency, . 1 lie amount charged in Account No. 2, Short charged, arising from error in calculation, i."65,431 10 6 65.426 12 3 £4 18 3 ' •• •• o,.'i(i() •'aid on 70 miles contract, Waweig to U'ood.stock. Sterling, £^i"71 e«lu'i^.etf e,"i" ""':"' '" """''''^"■"^' ^'" '^ "''^ -»''-^ exclusive of extra work, was, at X2300 sterlinjr per mile, .. „, Los8-Amou«ttobepaidinland. .. JO.OOO 70 mile, of road at £2,157 2 10 ".j^Hs '^''''^^'^ ^ ^ P""''^''« 151,000 la I. will bo .eon llmt Syke, & Co. I,y Contract, ,vcro to bo nllowcd for «trn -vork bcyo„,l ,l,o .,ip„|„,i„„, eo„tai„e.l in it. In tbe nb,cnco of information as to what hn» boon allowed lolt?^ f ! '■ r ■;'"""= "'"' ""' '"" «■■■' ■""«» h»vo been completed, for wbich tl.cy received £8,500 sterling for thi. par. of the road, beyond the amount paid and eentraeted fo .he Fachty Acts of 1831 and 1852, and s„pp„,e SyLs & Co. have completed fifteen miles of road on their 70 miles Contract, zi would stand thus — ' tm I 15 mile, at ^2.157 3 per mile. (I take the even num to ^'"""*- avo,.l fraction., it beinsf really .f2,io7 2 10 2.7th« per mile) would amount to ,. *^ y Supposed for extra work. '.[ ^^P^ 5 A.1.1 allcauce estimated for grading 'bVond tl.; 25 mii'e; ' ' ' ' completed, .. 3,000 They are charged ns hiuing been paid, Over.paid, according to this statement, • • ^40.357 5 45,906 5 5 £5,601) 5 But. if the London Board had retained an amoant equal to ::2ZTn'r''''' '"'^'■"'^'' "^^'^^^-^ «-'-^^" & Co. would have been over-paid jei5,698 6 8 sterling. No. 3. Survey and Engineering expense., ..ommencing July 1H5I, ^4,4o77 A \ h-^,'°''*' ^'•"»'"«"' Salary and Travelling charges to 1st /Xpril Ipi2, ,, 280 ^058 7 •«5,fi09 5 18 A. L. Light, Engineer, lerviceH at ^300 per annum- 14 month. commeocingLt July 1861 and ending l.t April iSas, X360 Now .here are only 9 months in that time, consequent!; ^ « month. h.,e to b. deducte.1, at £25 per month. . . ^ . . , 25 >g225 t^ec. M .. ^ .. .. ^75 On the latter charge there i. a mistake of ^75. unless Mr. Light', salary had been increased, of which there ha. been no notice. ^ „ , No- 4. Contingent Account, amounting to .. .. ..^1,326 14 5 Th.8 comprises a variety of charges noiv for the first time c aimed, and wh.ch I consider as almost altogether inadmissi- we. It IS partly made up of travelling charges of the Manager en.plo,ed hy the London Board, to England and back and various other places, and other charges for travelling expenses and Items, as particularised, viz :— s 1 « Travelling charges of Manager £Z'l?\ anJbS: »'""?.'" "^^""•' '"•'^ ^"- «*'-''" *« Engla;'d ^ ^ Expens'es celebra'tfng op'eLing oV RailJa'y. .' .* \\ " ^1^1 \ Salary of Chureh Missionary on Road, .. . " Tl ,1 I Contingencies in 1861. *" " 97 12 5 . . ^1,01 8 1 4 _._ No. 5. Office expense, and Salariss. amounting to .. .. ^1 091 ft o to look after theirl'i / ^/'"P'""') «'«''" «PP«'«»ed by the London Board 1st Jut 1852 .?"'^ J5»onth.. from Ist April 1851 to Salary to 1 St March 1853, .'.' ' "^^^^ ^ ^ Do. to 1 St December 1853, v. ^75 Secretary's Salary to March 1852, .'.' T^ Z I Sundry charges from 1851 to 1852. .. 1 vl I TK *• . ^'1.339 1 xnere8ti8principall»m«il««,,fn-q-i- • , . . .,,-,- — s^ih J , P'"" ^"'sr^ since 1 SI April 1852, 41652 7 2. 14 No. 6. Are chargeg for the following service!:— Printing and advertising, £20 8 Land damngen Tor Railway, 2C0 3 10 Petty expeuiee 52 iq 3 .£2J2 14 9 Vouchere to euftain these chargee have been produced. ^MiMBBBUM This completes a review of the several items contained in the general statement of expenditure on the Railway, as sub- mited to His Excelleny the Lieutenant Governor by the Colonial Board, and may be thus recapitulated — Charges in No. 1 for the first time claimed, jG 11,474 1 3 Do. in No. 3 do. 733 y 7 Do. in No. 4 do. ],326 I4 6 Do. in No. 5 do. 1,339 j From which ^T^Vsi^Ts Deduct Debentures issued in September 1851, £2,000 sterling, dollars @ 4s. 2d , ,, ,, ^^ 2 400 Currency, £12.472 I7 3 The application for a further issue of Debentures being based upon all these charges now for the first time claimed, it is sub- mitted to the consideration of His Excellency the Lieutenant Governor in Council, whether under the Acts of Assembly and the proceedings hitherto had thereon, a case has been made out by the applicants for an additional issue ; besides which, the state of the Account between the London Board and Sykei & Co., as shewn in a preceding part of this Report, should require further explanations before it would be proper to pass it. The amount paid on Smart's Contract, made in the latter part of the year 1854, is contained in General Construction Account, No. 1. Audit Office, June 30, 1855. J. R. PARTELOW. To His Excellency the Lieutenant Governor, &c. &o. &c je20 8 2C0 3 10 52 10 3 i;272 14 9 :ontained in eay, as sub- nor by the eil,474 1 3 733 7 1,326 14 6 1.339 1 E14,872 17 3 2,400 E12.472 17 3 being based d, it is sub- Lieutenant sembly and been made ides which, 1 and Sykes lort, should •per to pass n the latter onstruction BLOW. '/ J. SIMPSON, PRINTER TO THE QUEEN'S MOST EXCELLENT MAJESTY. 0' if m i AJESTY. n