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385.'
N8II

NORTH SHORE RAILWAY OF CANADA

••X) Jf» ■.<■-<

A BRIEF SlvErCll

GF IT5 COMMLRCIAL RELAlIuNS AND FINANCIAL FnOSPECTS.

]))* tlic lion. Jmiiv Ymuxc,

lATi: C-MMi^>F)\r.!i OK i'U':Lic \vi*u::^, AXi) i"i:r^ii»:-xr or riii:
Oi>MiNh*N i:oa:u,) i)f tkaij:: I'l-' caxai'A.

« * > I • • •

" « • • • t •

■ ■ • • • •

P38 5.7/4-

N 8//

• • • •

• «

• • • « • '

« • •• •

• « • • • •

• * • ••

NORTH SHORE RAILWAY

OF CANADA.

»^9-^*yt^-»^ <-* —

The lullowing corrospondoiico l)L't\voen tlic lion.
JosKi'ii Cauchox, Pri'sklciitot' tlie North Sliore I\ailway
Company, and i\ho Pre.^idi'nt ol' tliu SonatcM)!' tlic Domi-
nion of Canada, and the Hon. John Younc;, ionnerly
Commi.ssioncr of Pn))lic Works, and late Prcjsidont of the
Dominion Boardof Trade, will .shew the estimate phiced
npon the vahie, and future fmaneial success of this
important enterprise, by one of the most far seeing
and enlightened men of Canada.

Mr. Young has long occupied a i)rominent position,
not only in the Government of the Dominion, but also
in connection with all the important works of internal
improvement which have had a tendency to develope
the resources of Canada and the great west of the United
States. His opinions, therefore, have come to l)e regarded
both in America and Europe as the most reliable autho-
rity that can be obtained upon such subjects.

62140

NORTH SHORE RAILWAY OF CANADA.

Letter from the President of the North Shore Railway
Covtpaiiy to the Honorable John Young, of Mofitrcal,
asking for his opinion respecting the value of the
securities of the Company.

OFFICE OF THE NORTH SHORE RAILWAY COMPANY.

Quebec, :.)^vi1 Uh, 1872.

The Honorablo

JouN Young,

Montreal.
Dear Sir,

This Company has recently closed a Contract,
with parties of known experience and responsibility, for
the construction and equipment of the main line of its
Railway, extending from the City of Quebec to the City of

Aloiifroal, a distiiiu'O of oii(» hiindriHl and sixty miles ; and
also ol' tlic Piles Uraiich, exleiKlint;' Iroin I ho town ol Three
liivers up llui Valley ol" the St. Maurice River to the (irantl
]'iles, a distance ol" al)out thirty miles. The St. Maurice
liiver is now naviualde above the (irand Piles, a distance
of ahout seventy miles; and Avith som«' sliuht improve-
ments the navii-ation can be extended from lifty to seventy-
iivo miles furtlier.

The total lenu:th of tho main linc^ and branch will ho
about one hundrcnl and ninety miles. The li*iiilway is
to be fully completed and ec^uipped on or before December
1st, 1875. Every thin^" i« to be first class in all resjiects,
and sulliciently ample to perform all the l)usiness that may
be brought to the Uoad.

The entire cost of liaihvay and equipments, includinj^
IJight of Way, Machine Shops, Depots, Enuineeriny and all
contingencies, will be seven million dollars, or an average
of thirty-six thousand eight hundred and forty-two dollars
per mile.

Of this amount tho City of Quebec has suscribed one
million dollars to the stock of the Company, payable as
the work progresses, for which the City issues permanent
consolidated stock certificates, bearing seven per cent
interest.

The remaining six million dollars are provided by
an issue of seven per cent mortgage bonds, which are to
be a first lien upon the Railway and franchises of the
Company ; and also upon two million acres of land
donated to the Company by Act chapter XXI of the Legis-
lature of Quebec, passed Dec. 24th, 1870, a copy of which
is herewith enclosed. These lands are embraced in four
separate l)locks or parcels which are designated upon the
accompanying map, and marked respectively block A, B,
C & D.

In iH't'oliiiliiiL'' lilt' sccurilifs ni' the City of Qni'lx'o, ;is
Well its (li(»si' (.r llii' IJ;iil\viiy Compiiny, it 1m'C(»iii''s a
iiiiittiT of tilt' lirsl iuiportiiiicc |(» sMtisly cupitalisls. hotli iit
Ijomt' iuid iil)r(»;ul, tlmt tln' biisis upon wliitli lljcv aro
issiit'd is pi'iicclly Mtuiid, and Millicifiitlv anii)l(' to sccnro,
iM'yoiid a (jMcslion, ilic pronii)t i):iynu'nt ui'lxdh the inti'iost
and till' principal at maturity.

Your lonu' and intimate kno\v]t'du'(» oC Ihc trade and
resources ol'the Cities of (Quebec and Montreal, as \vell as
ol'tlie inteiincdiatei Towns, ('ounlies and Parishes, which
are traversed hy the Jtailway ; and your y-reat laniiliarity
with the railway and other trallic of the ])()minion of
Canada, and the I'nited States, — and also your knowledj^o
ot'ilie ])resent and i>rosp<>ctive value ol'the hmds granted
})y the (lovernment in aid ol' this Railway, hoth as reiiards
their limhi'r ]>roduct, ami their availal>ilit\- I'or settlement
and au'ricultural ])uri)oses, induce nie to solicit your written
opinion, as to whether the local business ol' (he Jiailway
])et\veen the Cities ol' (Quebec and Montreal ; to<>'ether with
its probable throui>h busiiu'ss. when considered in con-
nection witli the early coni])letion ol'the Northern Coloni-
zation Ifailway Irom Montri'al to Ottawa and renibroko,
iind the Canada Ct-ntral Kailway to Toronto and Iho
Georiiian JJay, and also to a junction with the Northern
racilic Uailway ol' the United States at the Sault Ste
Marie, and with the Pacilie Railway of Canada, the early
comph'tion ol all which cannot be reirarded as beini^ very
far in the future. And al.so when considered in connection
with its Junction at the city of Quebec, with the head of
deep ocean naviijfation upon the St. Lawrence River, and
also with the (Irand Trunk liailway extending- from
Quebec to Iliver du Loup, and th(M-e connecting with the
Intercolonial Ivailway now nearly comph'ted ; and also
with a line of liailways now under construction, upon
the most direct route, across the country from Quebec to

I'ortliuul, lliiliriix Hiid othor hai})ors upon tho Athintic
CoiiKt. Whi'lhcr, ill (JoiiNidcmtioii of all these lulvanliitrcs,
the ('arnin!r.s of thc^ ituilway, takoii in connection with tho
value of tile lands, may, in your opinion, he re<rarded as
fonuinuf such a basis for tho securities of the Company,
as should ^'ive them currency amonj? capitalists who are
seeking for a first class investment.

I have the honor to he very respectfully,
Your oht. servant,

Joseph Cauciion,

Trest. N. S. Ilailvvay Co.

A BRIEF SKETCH

OF THE COMMERCIAL RELATIONS AND FINANCIAL

PROSPECTS OF THE

NORTH SHORE RAILWAY OF CANADA.

Mr. YOUNG'S REPLY.

Montreal, loth April, 1872.

To the Honorable

Joseph Cauchon, M. P.,

President North Shore Railway Co.,
Quebec.
Sir,

I am in receipt of your letter of 6th inst., in which
you state, that from my long and intimate knowledge of
the trade and resources of the Cities of Quebec and Mon-
treal, as well as of intermediate Towns, Counties and
Parishes ; yon are desirous of obtaining from me an ex-
pression of my opinion as to the business, which will be

attiiictod to tho North Slun'o Iluihvny hotwoon Quoboc and
Montrtnil, and to tho vahio of tho piiio lands, prantod l)y
the Govornmont oi Quoboc by the act passed Docembor,
24, 1870, in aid of that ontorpriso.

navin<>' long* been in favor of the construction of your
railway, I have much pleasure in ])riolly stating- my reasons
for believing' that it will prove a commercial success.

At present there is no railway on the north side of tho
St. Lawrence, below Montreal, and the only railway on
the north side of the Ottawa river is that of 12 miles, con-
necting the villages of Carillon and (Irenville. On tho
south shore of the St. Lawrence, the " Grand Trunk " Kail-
way extends from Kiviere du Loup, 180 miles below Que-
bec, crossing" the fSt. Jjawrence to Montreal by the Victoria
Bridge and extending thence to Sarnia, on the river St
Clair, near Detroit. This Avith the extension to Island Pond,
via Richmond, on the Portland route, makes the distance
worked l)y that comj^any 1377 miles. The Groat AVestern
runs from Toronto to Windsor, opposite Detroit, a distance
of 350 miles. A branch extends from the Grand Trunk,
at Prescott, to Ottawa, of 52 miles, another from Brockville
to tho Ottawa Iviver at Sand Point, and a branch also ex-
tends from Toronto to Collingwood, on Georgian Bay, a
distance of 97 miles. These are tho principal lines now
existing in Canada, but the Intercolonial Raihvay from
Riviere du Loup is now being constructed to extend from
that point to Halifax, a distance of G85 miles from Quebec.

Before alluding- to the position of your road, or its power
to compote for Western Canadian and Western States
trade, I shall glance at the traffic in freight and passengers,
which is likely to pass over it, between the Cities of Quebec
and Montreal.

The population of tho former is 62,000 and of the latter in
round numbers 120,000. The distance between the two
cities by your railway will be 100 miles. The grades on

{)

tho road, will ho suporior to any on tho Conlinont. Tho
distance l)y tho (Inuid Trunk from the Eonavonturo Station,
in Montreal, to Quebec, via Ivichmond, is 1<S0 miles. Tho
time between the two cities is increased by the necessity
of changing- at Point Levis, from the Railway to the Ferry-
Boat, which carries the passengers and freight to Quebec,
and this diihculty is greatly increased during the winter
months. With an average speed of 20 miles an hour, tho
dillerence in time will be one hour and a half in favoiir of
the route on the North Shore, and this independent of the
detention at Richmond, which frequently results from not
connecting with the Eastern Trains to and from Portland.
{Supposing the line laid with heavy steel rails, there will
bo no diliiculty in making the average speed 28 miles per
hour, including stoppages, which would be 5.^ hours be-
tween Quebec and Montreal. No change of cars Ijeing ne-
cessary, there would be the same siiccessful competition
with the passenger Steamers on the St. Lawrence during
navigation, as has resulted from the competition of the
railway with the Steamers navigating the Hudson between
Albany and New- York. The travel between Que])ec and
Montreal during the season of navigation is greatly in-
creased by tourists from the United States. The number
of first class i^assengers carried by the Richelieu Company's
Steamers diiring last year exceeded 26,000, and about
38,000 of second class. The best proof of the value of such
travel is, that the Stock of this Company, originally $100 per
share, was increased to 200, yet on this doubled value it
cannot be purchased at less than 180. Was your road com-
pleted, and the time occupied only of to 6 hours, instead
of 13 hours by the Steamer, there can be no doubt that a
large and profitable business would be done.

Independent of this business, and between the two
cities, there is the local traffic. Three Rivers, half way
between Quebec and Montreal, has a population of 7,000.

t \

i I
i i

5 i

It is sitnatcd at the month of tho St. Maiiriro rivor, which
drains a vast territory, covered with forests of i)iuo siiid
other woods. Very hirg'o deposits of Iron exist on it, sonu;
of which are being successfully worked, besides other
mineral deposits. The population is rapidly on the increase,
and when the branch railway is made to the I'iles, and
Steamers placed on tho river a))ove the Piles, naviiiablo
with slight improvements for 140 mili's, a great imprdse
will be given to the trade of this region ; and deals and
lumber will then be carried, at a less cost of transport by
rail from the mills in the interior to Quebec, than at pre-
sent, Berthier is the next largest Town on the route, while
St. Annes, Champlain, Portneuf, Maskinonge, I'Assomption,
liawdon, Industrie, Terrebonne, St. Therese and St.Jeroiue,
will all be feeders to the road in freight and imssengers.

Such are some of the lacts in connection with your
railway, and the position of Quebec.

I have stated that the distance to Halifax, by the Inter-
colonial Kailway from Quebec will be G85 miles, but a
road is now being surveyed from Point Levis to Bangor,
in Maine, of which 30 miles are already built, which will
give a connection with Halifax 230 miles less than by tho
Intercolonial, and 40 miles less to Portland, than by the
Grand Trunk.

I would now direct your attention, as to the position of
your road for attracting passengers and freight traffic from
Western Canada and the AVestern States. Montreal has
lately passed a by-law to be confirmed by the people,
granting one million of dollars to the Northern Colonization
Railway, to connect with yours at Montreal, and to be
extended to Pembroke on the Upper Ottawa. A charter
has been granted by the Dominion Parliament to extend
it thence to the Sault Stc. Marie, at the eastern end of
Lake Superior. The Northern Pacific Railway is now
built from Duluth, at (he western end of Lake Superior, to

I f

t^t. Croix, oil the upper Mississippi. From tlic hitter i)lii(e
it is now coina'ctod with St. rjiul, auil will ho oxIeiKh'd
rapidly to withiti 40 miles oi" Fort Garry. It is dillicult il"
not almost impossihlo to huild a railway north of Lake
Superior, hut every facility is oilered in low grades, and a
straight line, to construct a railway Irom Sault St. Marie,
through Michigan and AVisconsin on the south side oi'tho
Lake to Duluth, and thus connect the Northern raciiio
with your road and the other lines to the Sault St. Marie,
A glance at the map will shew that from those States,
Minesota, and others adjoining, it is almost a straight line
to Montreal and Quel)ec. With a bridge across the Straits,
freight and passengers can be carried from Duluth to
Quebec, without shifting cars, on a 4 feet 8| inch gauge
railway, 3'10 miles shorter than by any other i)ossible road
from the head of Lake Superior to New^ York or Boston.
This fact will have an important bearing on your enter-
prise, because cars can thus bo brought from ^klichigan,
Wisconsin and Minesota, without requiring change or
breaking bulk to Quebec, a Sea Port 480 mile.s nearer
Liverpool than New York, a Port too, accessible from Sea
for ships like the " Groat Eastern," without obstructions
of any kind.

When the Pacific Railway is completed from Duluth,
and connected with your North Shore road, it will be
found that Quebec is 340 miles nearer the Pacific than
])y any other route, w'hile its terminus on the Pacific will
be 500 miles nearer Japan and China, than the Port of
San F'rancisco. And I cannot doubt that this whole
system of Northern and Western Railways will, at Quel)ec,
or near it, be connected with the South Shore of the St.
Lawrence by means of a Bridge adapted to railway trans-
j>ort, thus allowing cars to run from the Paciiic via Quebec
to any of the North lHaslern ports of the Atlantic, without
breaking Imlk.

I f

Aifiiin, a rtfa'l is now projertod and will Ix' spocdily
})uill IVoiu Toronto on a divoct lino, to connt'ct with your
road on tln« Ottawa, near tlic cnpitiil. Thin lino will bring"
tlio trado <tf Tontnto, Iluniillon, Dotroit, Chicai^o, iScc, to
Quohoo, on a nnilbnn eaugc, and by a r(»uto 1') niilos
Khortor than by tho i)ro.sojit routo on tho Orand Trunk
Ifaihvay. Tt is dillicult to/ ostimate tho iniportanco of this
projootod lino, in tho intorosts of your railway. Froii>ht
ol' all kinds, can thon oomo to Quoboc Avithont any tran-
shipment and bo placed on Ix^ird ol' tho Ocean ships ;
uhilo in-bouiul IVeight can, on arrival, be ^t onco placod
on tho cars and taken to Toronto and otlier places west, or
can bo taken by Sault St. Marie and delivered in tho njoro
Northern States of Michigan, "Wisconsin and Minosota, or
to Manitol)a, and tho Pacilic. Wh(Mi this route is opened it
will become tho best for lilmiyrants, for on arrival at
Quebec, they can at onco jirocoed to thoir dt'stination,
without chang'o of cars.

The largest possible imj)rovemonts of the water com-
munication with tho AVestern Lakes, will not prove
inimical to tho parallel railways. On tho contrary, the
success of tho Canadian railways will laro'oly depend on
tho superiority of tho wat(^r routes. AVhilo the St. Law-
rence Canals, in 1870, only attracted 15 / of tho AVostern
trado, tho lilrie Canal, through the State of New York got
85,,. Yet the great donblo track roads parallel with the
canal are tho most successful on tho Continent. The rail-
way has a salutary iniluence on trado from its superior
capacity for carrying passengers, live stock, light and
valuable goods, and such as require quick and rapid
transj^ort. In this way it confers a benefit on the interest
of parallel navigation whether natural or artificial.

I find that besides tho million of dollars granted by the
City of Quebec, in aid of your enterprise, which is oc|ual
to Gold ; your com])any has received a donation of two

! : IV,

million ucivs of f jml.pr Imuls Irom the Oovonunfiil (.rfju.>.
Im'c, l»y ill! Art (,r ih.' I.cL'islaluiv, passed 24th UoeoialxT,
1h70. Those liiiKhs aiv eiul/i.^ "jI in I'our.'st'pariift' IJltxks, or
pimM'ls, ami iire di'seri)>«'4 on tJn- Map ofSmvt'y, as hcinir
covcird with pill.' liinbor, and .*omo with Nprucf andiiard
W(kmI. TiioN*' lands arr situated on the I p[»t'r Ottawa, on tlie
IJatisean, St. Pierre and St. Maurice ltiv«Ms. In the present
rapidly inerea-sint^ value of all ])ine liinher, and other solt
woods, consequent on their decr»»ase in Maine, New-
]5runswick and Michisran, it would ho dilh«-ult to i)lace a
value on such lands without a thorouyh exjjloration of
the territory. From my knowledne of ',(« matter, it will
1)0 safe to consider that Fuur Dol/ars per acre would he a
very moderate estimate of their value ; and this opinion
will he fully horn out l)y th»' fact that white pine at
Quebec is now worth 2;) cents pt^r foot; as well as by the
lawsuit lately decided of Thomson vs. Perkins, in which
evidence was given, by practical men, that each pine tree
on the Oatineau, near Buckingham, was worth Four
Dollars, and judgment was rendered accordingly. It is
now very evident that in consequence of the growiii"-
scarcity, the price will in u lew years be much higher.

Wishing you every success, in your undertaking, and
hoping that the road will be rapidly built.

I am Yours, very respectfully,

JOHN YOUNG,
Late Prest. of the IJominion Board of Trade.