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 COPY OF CONTRACT 
 
 BETWEEN 
 
 HUGH ALLAN & THS POSTMASTER-GENERAL, 
 
 roR A 
 WEEKLY LINE OF OCEAN STEAUEBS 
 
 TO 
 
 Carry the Mails between Liverpool and Canada^ from 
 Ist April, 1860, to 1st January, 1867. 
 
 ^ 
 
 \ 
 
 On the Sixth day of April, in the year of Our Lord One Thou- 
 sand Eight Hundred and Sixty, before us, th« undersigned 
 Public Notaries, duly commissioned and sworn in and for that 
 part of the Province ol Canada, called Lower Canada, residing 
 in the City of Quebec, Personally came and appeared, HUGH 
 ALLAN, Esquire, Merchant, residing in the City of Montreal, 
 of the first part, and the Honorable SIDNEY SMITH, Post- 
 master-General for the Provime of Canada, residing in the city 
 of Quebec, acting hereinfor and on behalf of Her Majesty's 
 Government in the said Province of the second part, authorized 
 for the purposes hereof by an order of the Governor in Council 
 passed under an Act of the Legislature of Canada, of the pre- 
 sent session thereof, intituled, " An Act to grant additional aid 
 " to the Canadian Line of Steamers, and for the Extension of 
 « the Line of Telegraph to Belle-Isle," on the Fifth Day of 
 April instant. 
 
 Which said partieo, acting as aforesaid, in the presence of us 
 the said Notaries, did and do hereby covenant, promise and 
 agree to and with each other in manner and form following, 
 that is to say : 
 
2 
 
 The said Hugh Allan did and doth hereby promise aud 
 engage, and bind and oblige himself, his heirs and assisns, to 
 establish, maintain and keep up a regular line of large and 
 powerful Screw Steamers, to ply between the Port of Liver- 
 pool and the Port of Quebec or Montreal, once in every seven 
 days during the season of and for the navigation of the River 
 bt. Lawrence, and between the Ports of Liverpool and Portland 
 once also in every seven days duriHg the Winter. 
 
 That the said Steamers shall be first-class vessels, and shall 
 not, with the exception of the Anglo-Saxon, Canadian, and 
 North American, now belonging to the said Hugh Allan, be 
 less than two thousand and three hundred tons builder's mea- 
 surement, and not less than five hundred horse-power, and 
 shall not be inferior in speed, comfort and power to the steam- 
 ship called the " Bohemian," belonging to the said Hugh Allan. 
 
 That the said Hugh Allan shall be bound to perform the 
 service to and from Liverpool and to and from Quebec or Mon- 
 treal during the St. Lawrence navigation until its close every 
 year, and to make at least twenty-six trips from Liverpool to 
 Quebec or Montreal during the St. Lawrence navigation, and 
 at least twenty-six trips from Quebec or Montreal to Liverpool 
 during the said time ; and the communication between Liver- 
 pool and Portland shall commence each year at the time of 
 the close of the navigation of the River St. Lawrence, and 
 continue till the opening thereof, and during that time the said 
 Hugh Allan shall be bound to make weekly trips from Liver- 
 pool to Portland, and weekly trips from Portland to Liverpool, 
 so that during each year there shall be provided a weekly ser- 
 vice of fifty-two voyages both to and from America ; the said 
 Contractor hereby binding himself to call with each of the said 
 Steamers, and receive and land the Mails at such Poj:t in Ire- 
 land and in the St. Lawrence as may be from time to time 
 decided upon by the Postmaster-General of this Province. 
 
 And it is covenanted and agreed by and between the said 
 parties, that one of the said Steamers shall leave Liverpool and 
 one shall leave Quebec or Montreal once every seven days 
 
 I 
 
 ^f 
 
^ 
 
 during the St. Lawrence navigation season, and that one shall 
 leave Liverpool and Portland respectively also once every seven 
 days during the time when the navigation shall be closed on 
 the River St. Lawrence in the winter. 
 
 It is understood that the said Contractor shall have the op- 
 tion from time to time of deciding on the Port of Quebec, or 
 that of Montreal for the termination of the trips of the said 
 Vessels to the St. Lawrence, as the state of the water in the 
 River and Lake, or other cause, may in his judgment make it 
 advisable ; but he shall not have the right to terminate the 
 voyage at Quebec without the sanction of the Postmaster- 
 General. 
 
 That two new Steamers shall be built and ready for sea by 
 the first day of January next, and all the said Steamers shall 
 be provided by the said Contractor, and shall be ready, and all the 
 other arrangements made, so as to continue the regular service 
 of the weekly line ; and in the event of the Contractor being 
 unable to continue the regular weekly trips at any time there- 
 after, this present Contract is to be considered and declared 
 null and void and of no effect whatever, and the said Contrac- 
 tor is, within six calendar months thereafter, to repay to the 
 Government of Canada all moneys that may have been ad- 
 vanced to him for and on account of the said service. 
 
 That the said line shall hereafter be maintained regularly and 
 in full operation up to and until the first day of January, in the 
 year One Thousand Eight Hundred and Sixty-seven, and that 
 during that time the said Contractor shall be bound to carry by 
 each trip of the said Steamers such Mails as may be given to 
 him, or to the Officers in charge of his Vessels, by the Post- 
 master-General of this Province for transmission to Liverpool 
 cr Ireland, or by the Post Office authority in Liverpool or Ire- 
 land lor carriage to this Province, or such other Mails between 
 the said Ports as may be required to be carried at the instance 
 or by the command of the Postmaster-General of this Province ; 
 but there is to be no liability under this Contract on the part 
 of the said Contractor for the contents of the said Mails when 
 
the same are not delivered, in case the failure to deliver the 
 same is the result ot the dangers of the sea, or of such ns are 
 peculiar to steam navigation, and not caused by neglect, or by 
 want of proper skill, or by misconduct on the part of the said 
 Contractor, his agents, or servants. 
 
 And the said Contractor shall find and furnish sufficient ac- 
 commodation and space on board each of the said Steamers for 
 keeping the Mails, and for assorting and distributmg the same 
 on board, and to be called « Post Office," and to fit up such 
 apartments in such manner as the said Postmaster-General 
 shall require ; and also shall and will carry and transport on 
 board each of such Steamers such Officers and Clerks, not ex- 
 ceeding two in number in each Steamer, for the purpose of 
 guarding, assorting and taking care of such Mails, and to find 
 and provide them with the usual rations and cabin accommo- 
 dation. 
 
 That the said Contractor shall furnish and supply the said 
 Steamers with sufficient fuel, stores and provisions, tackle, and 
 all things needful and necessary to enable them to perform the 
 voyages contracted for, and to secure the safety of the Mails 
 and Passengers. 
 
 That the days for the departure of the said Steamers shall 
 be appointed by Kis Excellency the Governor General in 
 Council, and so often as he may think fit and proper for the 
 best interests of the public service j provided that in cases of 
 changes two months' notice be given to the Contractor by the 
 Government. The said Postmaster General shall, in case of 
 need, have the right to delay the sailing of any of the said 
 ships for the space of twenty-four hours. 
 
 And by these presents, the said Hugh Allan doth bind and 
 oblige himself to have at all times the command of a sufficient 
 number of Steamers, of the description aforesaid, to perform 
 the trips hereinbefore mentioned and agreed upon ; and that 
 the time occupied by the said Steamers on the outward passage 
 from Liverpool shall not exceed fourteen days, and on the 
 
 
1/ 
 
 homeward pnssago shall not exceed thirteen days on an ave- 
 rage of iHoTTips performed eVery three months. 
 
 That the said Contractor shall and will from time to time, 
 and at all times during the contmuance of this Contract, make 
 such alterations or improvements in the construction, equip- 
 ments, or machinery of each and every of the said Vessels 
 which shall be used by him in the performance of this Contract, 
 as the advanced state of science may suggest, and advertise 
 the sailing of the Steamers in Europe and America in such 
 manner as the Governor in Council may direct. 
 
 The present Contract is thus made for and in consideration 
 of the price or subsidy of Four Hundred and Sixteen Thousand 
 Dollars for each and every year of its duration, beginning from 
 the First Day of April, One Thousand Eight Hundred and 
 Sixty, from which time the existing Contract shall no further 
 exist, save as to the advance made thereon ; and which the 
 said Honorable Sidney Smith, acting as aforesaid, did, and doth 
 hereby promise and bind and oblige the Government of this 
 Province to pay to the said Hugh Allan, or order, as follows, 
 to wit : — 
 
 In consideration of the above, and of the stipulations here- 
 inafter made, and for the purpose of aiding the said Hug', 
 Allan in the building of the said two new Steamers, he thb 
 said Hugh Allan shall receive from Her Majesty's Government 
 in this Province of Canada, and the said Postmaster-General 
 did and doth hereby bind himself to pay to the said Hugh 
 Allan the sum of Two Hundred and Twenty Thousand Dollars, 
 and which the said Hugh Allan acknowledges to have receiv- 
 ed from the said Government before the date of these presents, 
 the same being an advance of part of the subsidy for the year 
 One Thousand Eight Hundred and Sixty, and from the said 
 sum the said Hugh Allan doth hereby release and discharga 
 the said Government : and the said Hugh Allan shall also re- 
 ceive from the Government of Canada aforesaid, on the First 
 
6 
 
 Day of August next, Two Hundred Tliousnnd Dolla |s.an(l the 
 further sum of One Hundred and Twenty Thousand Dollars, 
 on the First Day of January next ; Provided that the said two 
 new Steamers are contracted for and in course of construction 
 before the first of such sums of Two Hundred Thousand Dol- 
 lars is advanced ; and provided further that satisfactory secu- 
 rity be given to the said Government for such advances; and 
 for the future the said annual subsidy of Four Hundred and 
 Sixteen Thousand Dollars shall be paid quarterly every year, 
 and in advance, in four equal instalments of One Hundred and 
 Four Thousand Dollars each, to be paid on the first day of each 
 quarter, that is to say, on the first of the months of April, July, 
 October and January respectively, to the said Contractor, dur- 
 ing the existence of this Contract, 
 
 That for all advances nr^ade and to be made to the said Con- 
 tractor, and for the performance of the service contracted for, 
 satisfactory security shall be taken in such manner and for such 
 amount or amounts as the Government of Canada may direct 
 and desire. 
 
 And it is declared and agreed by and between the said par- 
 ties, that the said Contractor shall not be called upon to pay for 
 light dues, or other Provincial or local dues, taxes, or imposts 
 whatsoever, during this Contract, to which the said Contractor 
 as owner of the Steamers to be employed on the said service 
 should be liable. 
 
 And it is further covenanted and agreed by and between the 
 said parties, that the said Hugh Allan doth bind and oblige 
 himself to pay to the Receiver-General of this Province, for 
 every trip not performed, according to this contract, a penalty 
 of five thousand dollars, and shall not be entitled to the pay- 
 ment for the trip or trips not made in proportion to the amount 
 of the present contract for the whole of the trips contracted 
 for. 
 
 I- 
 
 ! 
 
 It is also expressly understood and agreed that it shall be at 
 

 the opti on of the Govern ment of Canada, to put an end to this 
 contract, and render the same null and void at any time, should 
 the terms and conditions thereof not be fairly fulfilled and 
 carried out in their true and honest meaning, and that without 
 being obliged to have recourse to law ; but should the Govern- 
 ment of Canada determine upon annulling the contract, no 
 penalty shall be payable for the breach or any of the breaches 
 for which the contract shall be so annulled, nor shall any pe- 
 nalty be incurred by any delay occasioned by shipwreck or 
 other accident, not arising from misconduct or from want of 
 skill or foresight on the part of the contractor or his servants. 
 
 It is further agreed, covenanted and understood between 
 the said parties, that the said contractor may bring this con- 
 tract to a close the thirty-first day of December of any year, 
 provided the said contractor shall have previously given notice 
 in writing to the Secretary of the Province of Canada, at least 
 six months before hand, and shall have previously paid into the 
 Office of the Receiver-General of the Province of Canada, all 
 moneys that may have been advanced to him, the contractor, 
 on account of this contract, for which the consideration on his 
 part shall not be fully and satisfactorily performed. 
 
 And for the due execution hereof, the parties have made 
 election of domiciles, towit, the said contractor at his actual 
 residence, and the said Honorable Sidney Smith, at the Post 
 Office Department, at which y 1 jes, &c. For thus, &c. 
 
 Thus done, passed and sealed, at the City of Quebec afore- 
 said, in the Office of Joseph Petitclerc, one of the said Notaries, 
 on the day, month and year first above written, under the 
 number eleven thousand two hundred and nine. 
 
 And the said parties, together with William Hbnry Griffin, 
 Esquire, Deputy Postmaster-General, also present, have set 
 and subscribed their names and signatures to these presents, 
 together with us the said Notaries, in faith and testimony of 
 
s 
 
 the premises, these presents being first duly read according 
 to law. 
 
 Signed on the original, remaining of record in the oflice of 
 Joseph Tetitclerc, one of the undersigned Notaries. 
 
 HUGH ALLAN. 
 SIDNEY SMITH, 
 Postmaster-General of Canada. 
 W. H. GRIFFIN, 
 
 Dpty. P. M. General. 
 Edouard J. Langevin, N.P. 
 Jh. PSTITCtERC, N.P. 
 
 (True Copy.) 
 
 Jh. Pbtttclerc, N.P. 
 
 W 
 
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