IMAGE EVALUATION TEST TARGET (MT-3) 1.0 1.1 11.25 m m m m vs. 120 1.4 ■ 16 I^togFaiiiic _Scifflices CoiporaQon 23 WIST MAIN STRUT WiBSTM,N.Y. 149M (716)172-4903 CIHM/ICMH Microfiche Series. CIHIVI/ICIVIH Collection de microfiches. Canadian Institute for Historical IMicroraproductions / Institut Canadian de microraproductions historiquas Tschnical and Bibliographic Notaa/Notaa tachniquas at bibliographiquas Tha instituta haa attamptad to obtain tha baat originai copy avaiiabia for fiiming. Faaturaa of thia copy which may ba bibliographicaliy uniqua. which may aitar any of tha imagaa in tha raproduction, or which may aignificantly ehanga tha uaual mathod of filming, ara chackad balow. ITtT Coiourad covara/ > YJ Couvartura da coulaur I — I Covars damagad/ n Couvartura andommagia Covars rastorad and/or laminatad/ Couvartura rastaurte at/ou pailiculAa I — I Covar titia missing/ D La titra da couvartura manqua Coiourad mapa/ Cartas gtegraphiquaa an coulaur □ Coiourad ink (i.a. othar than b^ua or black)/ Encra da coulaur (i.a. autra qua blaua ou nbira) I — I Coiourad platas and/or illustrations/ n D D Planchaa at/ou illuatrations an coulaur Bound with othar matarlal/ RaliA avac d'autras documanta Tight binding may cauaa shadows or distortion along intarior margin/ Lareliura aarr*a paut causar da I'ombra ou da la distortion la long da la marga intMaura Blank laavas addad during rastoration may appaar within tha taxt. Whanavar poaaibla. thaaa hava baan omittad from filming/ II sa paut qua cartainaa pagas blanchaa ajoutiaa lors d'una raatauration apparaiaaant dana la taxta. mais. lorsqua cala Atait possibia, cas pagas n'ont pas «t« f llmAaa. Additional commanta:/ Commantairas supplAmantairaa: L'Institut a microfilm* la maillaur axamplaira qu'il lui a itA possibia da sa procurar. Las details da cat axamplaira qui sont paut-Atra uniquas du point da vua bibliographiqua. qui pauvant modifiar una imaga raproduita, ou qui pauvant axigar una modification dans la mAthoda normala da filmaga sont indiquAs ci-dassous. r~n Coiourad pagas/ Pagaa da coulaur Pagas damagad/ Pagas andommagAaa □ Pagas rastorad and/or laminatad/ Pagas rastaurias at/ou palliculias p^Pagas discolourad. stainad or foxad/ L^ Pagas dAcolortes. tachatias ou piquias r~3^Pagas datachad/ li^ Pagas d«tach«as rypShowthrough/ \}lJ Transparanca □ Quality of print varias/ Qualit* inigala da I'imprassion □ Includas supplamantary matarial/ Comprand du material suppMmantaira □ Only adition avaiiabia/ Saula Mition disponibia D Pagaa wholly or partially obscured by arrata slips, tissuas, ate, hava baan rafilmad to ansura tha bast possibia imaga/ Las pagas totalamant ou partiallamant obscurcias par un fauillat d'arrata, una palura. ate. ont M4 filmtas i nouvaau da fa^on A obtanir la maillaura imaga possibia. This itam is filmad at tha raduction ratio chackad balow/ Ca document ast film* au taux da rMuction indiqu4 oi-daaaoua. Thi tot Tht poi ofi filn Ori bai tha aio oth fin aioi or I Th< ahi TIR Ma difl ant ba( Z ma 10X 14X 18X 32X 2iX 30X L 12X 1SX 20X MX 2IX 32X TtM copy film«d her* has bMn r«produe«d thanks to th« ganarotlty of: MrtMpolilM Toronto Libniiy SeeW SdImmm DipartmMit Tho imagot appoaring haro ara tha batt quality poasibia conaidaring tha condition and lagiblllty of tha original copy and in Icaaping with tha filming contract apacif ications. L'axamplaira film* fut raprodult grAea A la giniroait* da: M>tropolltiii Toronto ubnry Soeiol SoiMMM DapMrtmwit Laa Imagas auhrantas ont 4ti raprodultaa avac la nlua grand soin, compta tanu da la condition at da la nattat* da raxamplaira filmA, at an conformity avac laa conditiona du contrat da filmaga. Original copiaa in printad papar covara ara fllmad baginning with tha front covar and anding on tha last paga with a printad or lllustratad Impraa- aion, or tha back covar whan appropriata. All othar original copiaa ara fllmad baginning on tha first paga with a printad or lllustratad impraa- aion, and anding on tha laat paga with a printad or lllustratad impraaaion. Las axamplairas originaux dont la couvartura an paplar rat Imprimis aont filmte an commanoant par la pramiar plat at an tarminant aoit par la darnlAra paga qui comporta una amprainta d'impraasion ou d'illustratlon, aoit par la sacond plat, salon la cas. Toua las autraa axamplairaa originaux sont fiimia w* commandant par la pramlAra paga qui comporta una amprainta d'impraasion ou d'illuatration at an tarminant par la darnlAra paga qui comporta una talla amprainta. Tha laat racordad frama on aach microficha ahali contain tha symbol — ^- (moaning "CON- TINUED"), or tho aymbol ▼ (moaning "END"), whichavar appllaa. Un dM symbolM suivants apparaftra sur la darnlAra Imaga da chaqua microficho. aalon la cas: la symbols — »- signifia "A 8UIVRE". la symbols ▼ signifia "FIN". Maps, platas, charts, ate., may ba fllmad at diffarant raduction ratioa. Thosa too larga to ba antiraly included In ono oxpoaura ara fllmad baginning in tha uppar laft hand comar, laft to right and top to bottom, as many framas aa raquirad. TIm following diagrama illustrata tha mathod: Lm cartas, planchaa, tableaux, ate, pauvant Atra fllmte A dm taux da riductlon diffironta. Lorsqua la document rat trop grand pour Atra reproduit en un soul ciichA, 11 est fiimi A partir da Tangle aupAriaur gauche, do gauche A drolte, et do haut an baa, an prenant la nombre d'imagea nAcaasaira. Las diagrammra suivants iiiustrent la mAthode. 1 2 3 1 2 3 4 S 6 ^WP^\^. W Bf # ■ { !; I WiiW 'il '* '^ ! i i i " i i »r'?r»i'^'^'*nj| S;0r0nta, ^reg mh §xntt |lailtoag. /■ PROPOSAL IS CONNECTION WITH CHANGE OF GAUGE .VXD RECONSTRUCTION OF TUB RAILWAY AND ITS FINANCES. ti cned in January, 1878; and at the present time the following additional Railways are also under construction. The Credit Vallt'i/ Jiaihvai/, which runs from Toronto, and will com- pete with tills Railwiiy at tiie following stations : — Charleston, Alton, Orangeville (at the two latter places it will have stations^). Amaranth, Waldenuir and A;'thur. The rails on this Railway are now laid to Alton, will reach Orangeville this year, and are also already laid to Hillsbui-g, a point which will lonjpcte with Amaranth and Waldemar. This Railway will most likely he in active ojieration next June or July. The Geiinjiaii Bay and Wi'llbujton Itii/wa}/ is under construction between Pulmerston (a station on the Wellington, Grey and Bruce Railway), Mount Forest and Durham ; it is being surveyed at the pi'esent time from Durham to Owen Sound also. T/ie Stratford mid Luke Huron Railway is also under construction between Listowel, Harriston (where it crosses this Kadway), and Wiarton, situated on the Georgian Bay, 20 miles to the north of Gwen Sound. These competitive and intersecting Railways are all of the present standard gauge of the country, 4 feet 8| inches, excepting the Northern Railway of Canada, which still retains the former standard gauge of 5 feet 6 inches, while the Toronto, Chey and Bruce Railway haft the exceptional gauge of .3 feet G inches, which, while it does not allow it to compete upon equal terms with its livals, shuts it out also from any benefit which might be otherwise derived from some of the inter- ■ secting Railways by an exchange of traffic, were it also of the standard gauge of 4 feet 8J inches. The time therefore has arrived, and should be no longer delayed, if life is to be retained in the Toronto, Grey and Bruce Railway, for a vigorous effort to be made by those who are interested in its welfare to put it in such a condition as will at least enable it to compete npon equal terms with its rivals, and draw from them any advantage which may be forthcoming from an interchange of traflSc with any of them. The parties who have such interest in the Railway are tbree in iJ ^ I ss I fesi? I J14, number, viz, : The novernment of Ontario j the varioua municipalities Mrved by the Railway ; and the holderA of the Bonds of the Company. The original Stockholders may be omitted altogether from the cakiila- tion, as their money may be considered lost for ever. The proposal by the oaiTying out of which new life and vigour can be infused into the concern, and its finances placed in such a condition as to bid fair for its prosperity in the future, may be shortly stitted ss follows : — 1 . Tu change the Gauge of the Railway fi-om its present exceptional one to that of 4 feet £^ inches, the standard gauge of the country, and in so doing to reconstruct in a considerable measure the Railway, taking up the present iron rails between Toronto and Owen Sound, and laying in their stead steel rails of 561bs. weight; to do away with the^ present objectionable location across the Humber Valley, substi- tuting in the place of sharp curves, severe gradients, and a timber bridge over the river, a straight line, at a higher level, with compara- tively easy gradients, and an Iron Bridge over the Humber ; to cut down all steep gradients rising towards Toronto (the direction in which the heavy loads have to be carried), so that for the first sixty miles from Toronto, the ruling gradients will be reduced from 1 in 60 or 88 feet per mile to 1 in 89 or 08 feet per mile, thus enabling a loco- motive engine of the same power to take a load of at least four addi- .tional cars ; to do away with all trestlework and timber bridges which have not got at least five years' life still left in them, substituting in- stead masonry and earthwork. To make a connection with the Hamilton and North-Western, and Stratford and Lake Huron Railways for interchange of traffic. To provide proper terminal facilities at Toronto and Owen Sound to permit of the carrying of through traffic. To generally improve the stations, laying new sidings where re- quired- To thoroughly feuce the Railway, and erect snow fences where necessary. lo provide additional machinery for the Repair Shops at Toronto, and to purchase the property and shops which are now held under lease. To alter such of the existing Locomotive Engines and Cars as are available for the purpose, and to provide such additional ones as will be requisite to properly conduct tlie business of the Railway. 2. In order to effect the improvements enumerated above, it is esti- mated that a sum of $950,000, or £190,000 stg., will be needed, but after making an allowance for the value of the old rails and useless Boiling Stock, which is placed at $160,000, or £30,000, the net amount which will be required to be raised will be $800,000, or £160,000. The detailed er.timate of cost is 'appended, and marked Appendix A. ■M ; ^.^1.3 a*-ts»5.v-i-.T>*-.,ix'. 6 '■■.' Thii amount, it ia propuHed, shall b« provided by the three in- terests above named, and in the pro{)ortion8 and manner hereafter set forth. 3. The Oovernvient of Ontario. The new works contemplated are of such manifest advantage to the public, that the (iuvcrnmeni of Ontario are asked to contribute trom the fundH at their disposal an amount of $200,000, or ^£40,000, The reasonH why such a grant ■hould be made have been set forth in detail in n letter addressed to . the Hon. Oliver Mowat, Premier of Ontario, a copy of which, marked Appendix //, is attached. 4. The variotia municipalitiex which the Railway serves &re enumerated in AppenUii»- C. The total amount which it is proponed *} ask them to contribute as their sliare of the work is represented by a ■um of 1^450,000, or ^90,000. There is no doubt that they, more than any other interest, have derived a large benefit from the coiiHt ruction of the llailway; they readily admit this to be the fact, and the table form- ing part of Appeni/ij- C, setting forth the assessed value of the land in each municipality before the construction of tlie Railway and its pre- sent value, proves inconte.-*tably the very great benefit which they have derived from this work in the past. ^leetings have been held with the representatives of nearly every municipality, and considerable encour- agement has been given to the Company at these interviews, the only question between them and the Company being in many instances one ot amount. 6, I'hv BoiideiJ DeU of the Company. — This amounts at the present time iij 12,000,000, or £409,000, bearing interest at the rate of six per cent, per annum, but which has unfortunately only been able to be paid for two years since the issue was authoi'ized by the bondholders, viz., fi-om the Ist of January, 1876, to the Ist January, 1878. The bond* holders have therefore already been sufferers to the extent of two years' interest on their investment, amounting in the gross to #240,000, or j£49,000. They are asked in the pi'esent pro|)08al to forego any claim lor this loss, and to sacrifice their interest for one year more; whioh will bring the bonds up to the date of maturity. The total sacrifice at that time, therefore, which is asked of the bondholders will be $360,000, or £73,500. An informal meeting of the larger bondholders resident in Canada was held in Toronto in the month of October, at which a re[)re8entatioii was present amounting to about #700,000 (£140,000) worth of the bonds, or say one-third of the total issue, at whioh, after they had carefully examined the affairs of the Company and its future prospecta,' they passed the resolution marked Appendix D. The resolution pro- yides that the bonds, when they mature, shall be given up with the last six coupons in exchange for Perpetual Five per cent. Debenture Btock, which shall occupy the same ground now occupied by the First ij ( U MSMkl w I I u Mortgage Bonda, and •b»ll, like them, be a flritt charge and mortgM|;e upon everything upon which the present bondH are a first charge. Tn« Pebenture Stock, however, is not to carrv more than /our per cent, interest during the first three vears, from the lat January, 1881. It ia further provided that during those three years no more tlian three per oent. shall be paid unltSH a Commissioner, to be appointed by the Ontario Oovernment, shall first certify that the Railway has been ^fliciently maintained, and that enough has been fairly earned to pay ^ore. The same safeguard for duly maintiiining and paying no more Chan has been fairly earned by the Railway, is provided for in the year succeeding the first three years, by preventing the Company from paying more than four per cent., unkss the Commissioner shall in like manner certify as before that there is fairly njivn per cent, earned. In the ev^nt, however, of the bondholders ever receiving a less rate of interest than tfiri'e percent., power is reserved to them to take over and control the Railway. The resolution further provides that an iHsue of six per cent. Bonds, maturing in twenty years, and secured by tho Postal Revenue of the Railway, shall he autltori/ed by tho bondholders tu an extent not exceeding $200,000, or i40,000, and that a sum of i|5,000, or £1,000, ahall be set aside annually from the other earnings of the Railway to Provide for the redemption of the Postal Bonds by annual drawings, 'he present Revenue from the Postal Service amounts annually to f 12,000, or £2,«00. 6. To enumerate, then, the varioua sources from whicit the necessary sum of 1800,000 will be derived. They are as follows :— Oovernment of Ontario 15200,000, or £40,000 Municipalities 450,000, or 90.000 Postal Bonds )J 150,000 to 200,000, or 30,000 to £40,000 Totol ij800,000 to $850,000, or £160,000 to £170,000 7. Gorroboratioe Testinwmj. — In order that the best advice the country affords should be brought to bear on the proposal for changinsr the gauge and reconstructing the Railway, Col. Gzowski, C.E., and Walter Shanley, E'lq., C.E., .than whom there are no more eminent engineers in Canada, were invited by the Company to inspect the Railway, its equipment, and everything necessary to enable them to arrive at a thorough understanding of the whole case, and the circum- stances connected therewith. The result of their inspection has been embodied by them in a Report, Appendix E., which should be read with, all the oare that the opinion of such eminent gentlemen undoubtedly will command. Mr. Hickson, the General Manager of the Grand Trunk Railway, has also looked into the matter, and a copy of his letter on the subject, Appyndix F., is also attacheiL A table, Appendix G., has also been prepared which shows the earnings per mile of Eailway, upon the Northern Railway of Canada, the "NYelliDgton, Grey and Bruce Railway, and the London, Huron and Bruce Railway wide or standard gaunje Railways, in comparison with what has been earned upon the narrow gauge Toronto, Orey and Bruce Railway during the past year, 1878. These Railways, as has already been pointed out, to a great extent serve the same territory, and it may be considered a fair evidence of the increased value of the traffic to be expected when the gauge of the Toronto, Grey and Bruce Railway is assimilated to that of the leading Lines of the country. EDMUND WRAGGE, Chi*>/ Engineer and General Manager. [. Toronto, 2l8t November, 1879. it { ) la mfm 1*I**W i the lada, uron rison and I has tory, r the truce ler. it { ) Hi APPENDIX A. ToKONTO, UtL October, 1879. Eatimated coat of Changing the Gauge from 3 feet 6 inches to 4 feet 8J inches. Sundry short Deviations \. Deviation at Humber Valley Alterations to Bridges and Culverts " Cattle Guards " Station Grounds , " Shops at Toronto , New Station Buildings at Orangeville 20 Miles Double Fencing $500 20 " Snow Fencing 600 11,000 Tons Steel Rails, 56 pounds per lineal yard 33 500 Tons Steel Fish Plates 33 170 " Spikes 55 110 '« Fish Bolts 75 140,000 New Tks Track-laying and Chnnging Rails Ballasting (say) Purchase of Queen's Wharf Shops Elevator and Harbour Works at Owen Sound . . . Hamilton and North-Westcin Works 00 00 00 00 00 00 20 $7,000 60,000 53,000 2,000 14,000 10.000 6,000 10,000 12,000 363,000 16,500 9,350 8,250 28,000 35,760 7,000 20,000 15,000 7,500 Holling Stock. -|684,3GO» (C 4 New 50 " 4 2 3 5 Locomotives $7,500 Box Cars 500 Passenger Cars 4,500 Baggage and P. 0. Cars 2,000 Conductors' Vans 800 Cattle Cars 600 13 Converting Locomotives 2,500 100 160 20 7 18 Box Cars 250 Flat Cars.. 250 Cattle Cars 250 Conductors' Vans 250 Passenger Cars 500 $30,000 25,000 18,000 4,000 2,400 3,000 32,500 25,000 40,000 5,000 1,750 9,000 Contingencies, 7|% -$195,650' $880,010- 66,000 .Carried forward $946,010 10 APPENDIX A.— Continued. Brought forward.... #946,010 £1/ Old Material. 6,500 Tons Old Eails $15 $82,500 • 50 " " Fish Plates....:.... U 700 7 Old Locomotives 3,000 21,000 95 " Box Cars ^ ( 100 9,500 9 " Cattle Cars f. 11) ISO 1,350 60 " Flat Cars (* ^^neeJs^ ^^ ^goo 4 " Vans ) { 100 400 300 Pairs of Old Trucks 100 30,000 . . $149,650 Total $7 96,360 EDMUND WRAGGE, Chief Engineer. I) ) m USSu JMMb mmmmm^mS ,010 ) m 11 APPENDIX B. TO TUE HON. OLIVER MOWAT : Sib, — The . Board of Directors of the Toronto, Grey and Bruce Railvray Company have considered, and in so far as poHsible matured, a sclieme for the widening oi the gauge of the Railway, and for the general improvement of the line, which they 'think will meet with the approval of the Government, and will justity them in the public interest in granting the amount of aid which is to be asked from them towards the undertaking. The adoption of this scheme, the Directors think, will more fully utilize the Government aid previously given to the Company, and will prevent what might probably result from the road remaining as it at present is, the practical loss of former grants made. The municipalities interested in the Railway, recognising the advantages to themselves and to the country generally which would result from the change of gauge, are anxious to assist the Company in completing the proposed new works and improvements, but are deterred from submitting by-laws for bonuses in aid of the undertaking by reason of the uncertainty which exists as to the assistance which the Company may obtain from the Government of Ontario. The feeling in the district served by the line is that without Government a-d the undertaking would be utterly beyond the means of the municipalities, the bondholders and the Company. At the time the line was con- structed there were many believers in the efficiency of a narrow or three feet six inch gauge, and in the ability of a Railway so constructed to do efficiently the work of the country. Experience has however shown that they were in error, and the question as to the advantages of the broad over the narrow guage has ceased now to be a matter of argument, all experience concurring in the belief that the exce,»tional gauge of this road is not now suited to the requirements of this country. The cost of carrying goods is not only increased by tran- shipment from a narrow to a standard gauge, but transhipmeub itself frequently deters shippers from using lines on which freight is subject to it. This is particularly felt in the handling of lumber, timber, and all products of the forest, and said products are a great source of wealth to the district of country served by this Railway. One serious objection was raised to the narrow gauge at the time of the building of this line, which experience has unfortunately shown to have been well founded, namely, the difficulty which would be experienced in keeping tiie line I 12 Appendix B. — Confivuef?. open for traflic during the severe winters of this country. In one year the road betwern Orangeville ond Owen Sound was practically closed, in consequence of snow, for a period of over six weeks, and the same took place in that year on the western division from Arthur to Tees- water. It has always been found that the traffic has been much impeded by snow during the winter months ; and the knowledge that such difficulty has to be contended with, and the probability of the line being often blockaded by snow, deters passengers from using the road as they otherwise might, and shippers from sending goods by it, to the great loss and injury of the country through which the road runs The scheme propounded by the Company is as follows : It is proposed to raise, for the purpose of changing the gauge from three feet six inches to four feet eight inches and a-half, and for making the necessary alterations as set out in the estimates of Messrs. Gzowski and Shanly, and the Chief Engineer of the Company, Mr. Wragsje, the sum of eight hundred thousand dollars over and above the amount that would be realized from the sale of old material ; and the way in which it is intended to raise this money is as follows : Ist. To petition the Government for a subsidy to the extent of $200,000, being in round figures $1,000 per mile over the whole line, and this would make, inclndiiig former grants, a total for the Govern- ment of less than $3,000 ])er mile. 2nd. To obtain bonuses from the different municipalities that have been served by the Eailway (numbering some thirty), to the extent of $460,000. J 3rd. The remaining $150,000 to be made up by the issue and sale of Post al Bonds. In considering this scheme, the Company believe they have dealt justly with all classes of parties interested, and have laid a fair propor- tion of the cost upon each. It is quite certain that bo far as the share capital is concerned, the large amount subscribed and paid up is entirely lost. The municipalities, however, who advanced money in the shape of bonuses to help to build the road, have been even at the present time admittedly more than recouped for the sums which they put into the undertaking. The advantages which they have already derived from the construction of the road show this. They are fully set forth in the schedule relating to the municipalities enclosed herewith, which shows the amount at which each municipality was assessed at the time of the granting of the bonuses, and the amount at the present time. The Company think that the very great increase which has taken place in the assessed value, is due altogether to the building of this road. SI 01 a M ssts ttmmmm sssa rniUm 13 i) H Appendix B. — Continued. Refen-iug to the position of tlie present bondocl debt of |2,000,000, .enclosed you will find copy of a resolution passed at an informal meeting of the bondholders resident in Canada, at which there was represented about $700,000.' H'jlders of more than three-fourths of this amount concurred in the resolution, while one bondholder of over $120,000 was of the opinion that the sacrifices asked of the uud- holdeis were too great, and proposed that the rate .of interest should l>e four per cent, for five years, five per cent, for the five yeai-s following, and thereafter six per cent. The re.solution sets out fully the way in which it is pro [ i il to deal with the bondholders. The intention is that they are to abandon iutei-est for three years, representing a total sum of 1360,000, and are to make a very serious reduction in the rate of interest thereafter. The bondholders therefore propose to make, as will be seen from what has been above stated, great sacrifices to place the property in a [wsition to serve the country, and to try and bring them some small return for the money which they have sunk in the concei'n, and from which they derive no collateral or indirect advantages, as do the niunicipalitie.s. We believe this plan is a perfect necurity against the possibility of this road ever falling again into ditiiculties, or another appeal for assistance ever having to be made to the municipalities or to the Gov- ernment. The low rate of interest proposed to be pkid to the Vjond- holders, and the fact that a Comu)i.>iiliift«iiiii«iii*li lii! t> ^ Uxs^i ii Mr Increase per cent. . since 1870. "Vaugl Albio: Boltonj Caled(| Oarafi; Chingj Mono I Orang Amari Melai Shelb| Mulmj Protoi Arte Osprej Gleni Hollai Euph SuUi Derb Syde: Saravj Owen Wes Luth( Garaf Arthi Arthi MounI Egrerj Nom HarrJ Mint) Howi Wro3 Turn Culr( T«esi 88 52 76 92 89 56 27 424 177 150 124 91 81 75 65 140 123 143 130 151 143 252 58 228 83 140 129 130 281 96 156 'i47 150 74 REMARKS. Incorporated in 1873, out of Albion Tp. Incorporated in 1878, out of Melancthon and Amaranth Townships. Incorporated in 1873, out of Arthur and I^uther Townships. Incorporated in 1873, out of Minto T'p. Incorporated in 1874, out of Howick T'p, Incorporatcid in 1877, out of Culross T'p. ■ittiiiiiiiillilili ».•> 15-16 APPENDIX C. TORONTO, GREY AND BRUOK StatisticH relating to Munici Namk of Municipalities. .Main Line. YaugKan Albion Bolton Village Caledon Oaraf raxa, East Cbinguacousy Mono Orange vi He Town. . , Amaranth Melancthon Sbelburne Village. . . Mulmur Proton Artemesia Osprey Qlenelg Holland Euphrasia Sullivan Derby Sydenham Sarawak Owen Sound Town . Western Division. Luther Oarafraxa, West... . Arthur Village Arthur.. Mount Forest Town . Egremont Normanby Harriston Town.... . Minto Howick Wroxeter Village.. . Turnberry CnlroBS , Teeswater Village. . Asaeased Value when BonuB was granted. 1,803,936 944,369 971,217 282,045 2,161,493 670,366 108,425 161,385 240,000 308,167 256,821 406,471 380,000 380,137 291,086 322,670 220,700 185,607 434,660 50,662 817,271 226,665 422,000 665,466 178,065 510,017 459,866 464,621 284,878 405,820 Equalised Asaeisment when Boniia was granted. I' 2,082,161 987,151 961,505 434,005 2,247,952 633,083 71,500 292,963 262,000 676,673 237,000 367,000 302,000 362,000 342,000 876,640 342,000 232,000 417,000 47,000 427,000 302,948 659,899 579,848 110,000 424.460 434,090 593,722 809,425 442,336 692,624 120,000 A'MMed Value in 1879. 8 2,680,970 1,416,621 153,875 1,240,995 580,930 3,062,575 606,940 479,770 416,231 636,240 91,026 788,895 562,000 844,430 636,930 453,735 467,611 779,125 606,807 653,950 811,420 146,000 1,238,193 663,400 660,355 265,845 1,136,736 363,140 584,991 900,000 318,394 1,179,400 1,838,809 123,262 1,009,720 1,330,670 123,995 Equalised Aafleaament in 1879. 3,923,640 1,608,922 96.000 1,844,748 820,064 3,618,000 806,837 376,000 812,348 604,718 50,000 770,107 532,280 683,782 638,984 487,641 566,940 904,420 762,676 564,168 960,575 118,140 1,0,38,229 1,067,278 1,046,538 195.000, 1,063..395 265,000 97.') f>m 1,000,872 240,000 1,164,070 2.077.395 115,000 1,095,875 1,731.447 209,000 Total Acreage Townaliip. Average { Value per { Acre when I Bonus was! granted. I 67,660 65,886 500 68,324 40,003 79,965 68,337 1,300 63,529 72,895 500 64,677 81,513 67,000 70,770 68,071 66,742 72,000 72,626 38,000 72,000 10,647 6,000 88,459 47,197 900 64,893 730 72,409 66,000 500 69,940 64,409 500 35,068 56,709 500 $ cts. 30 77 17 66 14 00 11 00 28 00 9 00 5 50 3 60 2 5 4 5 5 90 30 97 00 00 5 25 4 6 5 4 70 00 50 75 3 30 13 20 ■ • • « 7 70 5 8.') 6 58 7 70 17 .')0 17 50 12 00 iiiliHiMMaMiiiftMliiiii 16-16 APPENDIX C. 0, GREY AND BRUCE RAILWAY. tiHtics relating to Municipailitm, Average Bed Total Value per Aaro when Average Increase Inoreaae lent Acreage Value Average Iter cent. REMARKS. 9. of ; Bonus was per Acre Value . since Townaliip. granted. in 1879. per Acre. 1870. ^ cts. % ots. % cts. $40 67,660 30 77 58 00 27 23 88 )22 55,886 17 66 27 00 9 35 52 )00 500 f • • • 76 Incorporated in 1873, out of Albion Tp. r48 68,324 14*00 27 00 13 00 92 )64 40,003 11 00 19 00 8 00 89 )00 79,965 28 00 44 00 16 00 56 537 68,337 9 00 11 15 2 16 27 , )00 1,300 . « • • ■ • • • 424 _ J48 63,529 5".V6 12 00 6 50 177 ri8 72,895 3 60 9 00 5 40 150 )00 500 .... ■ • • • Incorporated in 1878, out of Melancthon 107 64,677 • • • • • * • « and Amaranth lownships. 280 81,513 2 90 6 53 3 63 "124 r82 67,000 5 30 10 20 4 90 91 )84 70,770 4 97 9 00 4 03 81 ' Ul 68,071 5 00 7 00 2 00 75 )40 66,742 5 00 8 50 3 50 66 120 72,000 5 26 12 56 7 31 140 V 57fi 72,626 4 70 10 50 5 80 123 168 38,000 6 00 14 85 8 85 143 )75 72,000 5 50 10 55 5 05 130 « 140 10,647 4 75 13 61 8 86 151 , 229 6,000 • • • • • • • • 143 V, 278 88,459 3 30 11 50 8 20 262 )38 47,197 13 20 20 50 7 30 58 )00, 090 • • • • 228 Incorporated in 1873, out of Arthur and i95 64,893 7 70 15 00 7*36 83 Luther Townships. )()0 730 • • • • .... 140 iSO 72,409 5 8.') 13 50 7 "66 129 , 572 66.000 . 6 58 15 00 8 42 130 )00 500 • > • • 281 Incorporated in 1873, out of Minto T'p. )7() 69,940 7 70 15 50 7 80 96 195 64,409 17 50 30 00 12 50 156 )00 500 • • •• • • • • • Incorporated in 1874, out of Howick T'p. i75 35,068 17 50 29 00 > liso 147 147 56,709 12 00 30 50 17 60 150 )00 500 74 \ Incorporated in 1877, out of Culross T'p. '.' ir APPENDIX D. Moved by Mr. A. B. Lee, aeconded by Mr. D. Coulbon, on behalf of the Bank of Toronto, That this meeting having heard the explanations of Mr. Buatty and Mr. Wragge, with regard to the reauHcitation and re-con8truotion of the Toronto, Grey iind Bnice Railway as a standard (or 4 feet 8^ inches) gauge Railway, and having learned the probable total amount of money re(|uired for such a purpose. It is hereby resolved that the proposal made to the bondholders of the Company, which is substantially as follows : 1. The bondholders to exchange the present first mortgage bonds of the Company for an equal amount of perpetual debenture stock, bearing interest as follows : From the first January, 1881, until the 3 Ist December, 1883, at a rate not exceeding four per cent, per annum ; from the 1st of January, 1884, and thereafter, at a rate not exceeding five per cent, per annum. Provided that in case a Commissioner, to be appointed by the Government of Ontario, shall in any year during the first men- tioned period, after notification by the Company that more than three per cent, is proposed to be paid in that year, determine, after examination of the Railway and of the books of the Company, that there are sufficient earnings in that year, after providing for maintenance of the Railway and equipment in good condition and working order, then, in that case, he may order that for such year interest be paid at such a rate as he may deem advisable, but not exceeding four per cent., os he may consider there are moneys available out of the earnings in that year. And after such first-mentioned period, and after notification by the Company that more than four per cent, is proposed to be paid in that year, if such Commissioner shall in like man- ner determine that there are sufficient earnings in any one year, after providing for the maintenance of the Railway and equip- ment in good condition and working order, then in such year interest at such a rate as he may deem advisable, but not ex- ceeding five per cent., as he may consider there are moneys available out of the earnings in that year ; and in case of such order for payment of additional interest, the same shall be paid accordingly. Provided that the said perpetual debenture stock shall sttnd in the same position as the now existing bonds, namely, shall without registration or formal conveyance be a first mortgage 18 Api'RNDIX D. — Continued. and chttrgc upon the Toronto, Qiey and Bruce Railway and upon all and every tlie undertaking and upon the real and lierNonal pro|)erty of the Company, including its rolling itook and equipment now exiBting and at any time hereafter acquired togeth«T with the franchine of the Company. In the event at any time of the interest upon the said deben- ture Htock renmining iinpuid and owing, or in the event of a leHS rate of interest upon the Huid debenture stock than three |)er cent. \rer annum being paid thereon, then at the next general annuul or semi-anniuil meeting oi the Company all holderH of debenture Htock Hhall have and {msMess the same rights and privileges and (luaiifications for Directors and for voting tiH lire attached to ordinary shareholders, provided that the debenture stock and uny transfers thereof shall have been first i-egistered in the same manner as is provided for the rcgistrutiun of ordinary shares. And should the default or partial default in payment of interest as aforesaid take place so that tho right of voting is acquired at a semi-annual meet- ing, then the ordinary shareholders and debenture stock- holders assembled with such proxies as may be present shall choose nine persons to be Directors of the said Company in the same manner as is provided shall take place in the Act to incoriHJnite the Toronto, Grey and Uruce Railway Company, 31 Vict., cap. 40, and any Acts amending tho same, at an annual general meeting of the said Company, and the Direc- tors so elected shall take the place of and exercise all the rights and ]K>wers of the Directors elected ut the [trevious annual general meeting, who shall by this proceeding be superseded by the new Directors. A semi-annual general meeting of share- lioUbM-s shall, after the 1st January, 1881, be held on the second Wednesday in March of each year. 2. The bondholders, in exchanging the present bonds, to forego all arrears of interest, and to give up all unpaid coup- ons, being the lust six (G) coupons which are attached to the bonds, the exchange to bo made between the date of the com- pletion of the change of gauge and the first day of July, 1881. 3. The bondholders to authorize the issue of postal bonds as provided in the several Acts relating to the Toronto, Oi-ey and Bruce Railway, particularly the Act passed in the 4lBt Victoria, a sum not exceeding $5,000 to be set asidcf from the revenue in each year before paying interest on debenture stock, to enable the said postal bonds to be paid off by annual drawings in tweiity years from the date of issue, the first annual drawing to be made in December, 1883, and the bonds so drawn shall •be cancelled and not be re issi.ed. ^;^\ ■i 1 ii»— wpii^— TP »i i , I ■ j,m | ..v i iii»ii n . 19 Be and hereby ii approved, and that this meeting deNirei to express its opinion that the plan proposed by the Company, and which it ha» earefully examined, appoata to bo the best arrangement, und«r all the oiroumstanoes of the oaae, can be entered into by the various parties interested in the Company's welfare. JAS. 0. WORTS, Chairman^ ToBoNTO, Oct. 9tb, 1879. /I > * 20 APPENDIX E. Toronto, 13th November, 1879. To the President and Directors >. Toronto, Grey and Bruce Railway, Toronto. Gentlemen, — In the following memorandum we give you our views of the (;on tern plated changes and improvements in the character of your railway, and on its financial prospects under its improved condition, as the result of our recent inspection of the line and exami- nation of the Chief Engineer's (Mr. Wragge's) estimate of the cost of effecting the proposed improvements. Your line occupies an undoubtedly good territorial position, cover" ing a length of nearly two hundred miles as follows : From Toronto to Orangeville Junction 62 milen. - " Junction north-westwardly to Owen Sound ... 70 " " Junction westwardly to Teeswater 70 " V > V . Total r, 192 miles. Showing its geopraphical outline somewhat in the form of the letter Y — ^1)6 stem 52 miles, and each arm, or prong, 70 miles long ; the points of the latter, Owen Sound and Teeswater respectively, being about 45 miles apart. The road is thus well placed to command, ana were all other conditions equally favourable, certainly woulil command the chief local business of a wide area of highly productive and rapidly growing country ; while its connection with lake navigation at Owen Sound enables it to bid for " through " traffic from without. Your railway, however, is not in undisputed possession of the ter- ritory from whith mainly its revenues are drawn, but is intersectedi once south and twice north-west and west of Orangeville, by the under- mentioned lines : " Hamilton and North- Western," ^' Port-Dover, Stratford and Huron," " "Wellington, Grey and Bruce " (branch of " Great- Western"), while the "London, Huron and Bruce" (also a " Great- Western" appendage) approaches you at one point within 4^ miles, and is but 8 miles off at your Teeswater terminus. With the two first named of these invading lines, you shall be in a position to either comi)etc for or interchange traffic on equal terms. Towaids the other two your attitude is one of competition only, both being controlled hy an interest entirely adverse to yours. But you ^st«&« t ■Ml Mi 9. our acter oved :aini- st of orer- SB. etter ; the >einff , and oand pidly )wen ter- cted> (ider- rn"), age) ff at in a rma both you ■A l-'-A-- » 21 Appbnoix E. — Continued. are mt in a pajitioti eitlier to compete or interchange with the former, or to complete only with the latter two, advantageously to yourselves, for the reason that while the others are of the standard width of 4 feet %^ inches, your line is laid on the exceptional gauge of 3 feet 6 inches. This question of GAUGE ;" is the very foremost one to be considered in discussing the ciianges and improvements needed ; and we say emphatically that without the widening of the track no amount of expenditure that you may make for other improvements will ever enable you to cope success- fully with the other lines within your territory ; that without such radical change the municipalities embarked in it can never derive full benefit from the railway, or the property be made to pay interest on the borrowed capital comprising so large a portion of its cost, and the lenders of which invested in good faith, having no t/tdirect advan- tages to look to for their reward. In the memorandum of particulars and details drawn up by Mr. Wragge for our information, he enumerates the many ways in which the " break of gauge " militates against the successful working of tho railway. It not only isolates it from connecting lines, thus limiting its market to Toronto oaly ; but even in Toronto its evils are~ daily proven, in the preventing of delivery without transhipment of fi-eight destined for warehouses, factories and granaries accessible to railway cars by standard gauge tracks only. The comiietition you have to encounter will soon be still further increased, in the district between Toronto and Orangeville, by the construction into that town of a branch of the Credit Valley Railway, a Toronto road now approaching completion, and alongside of which your " narrow gauge " will have no chance at all. We repeat, then, that the very first step towards retrieving the fortunes of the Toronto, Grey and Bruce Railway, the only way of saving it Irom being crushed out of existence by its wide gauge rivals, is the immediate conversion of its gauge to that of theirs. The other changes contemplated for the improvement of the line are enumerated in Schedule A herewith, and while differing from Mr. Wragge in some matters of detail, we are quite in accord with him as to the works most essential to its proper and permanent restoration, and though in several instances we distribute the expen- diture necessary to such restoration not exactly as he does, our general result agrees very closeiv with his — showing a total needed outlay of about .' $950,000 in which is of course included the changimg of the gauge. Against this amount, however, is to be credited $150,000> the estimated selling cash value of old rails* and other materials, thui reducing the 22 Apppendix E. — Continued. amount of money required to be raised in other ways to, in ronnd numbers $800,000 The scheduled items of outlay will generally explain themselves, but a few remarks here in reference to- some of the larger ones will not be out of place ; and first, as to THE TRACK. It is proposed to lay it with steel rails between Toronto and Owen Sound — 122 miles — that portion of the road having the heaviest traiBSc, and the rails (of iron) being for the most part worn out. On the Western Division, Orangeville Junction to Teeswater — 70 miles — the iron is still in good condition, and we concur in Mr. Wragge'a idea of getting out of it all the wear, and which may be estimated by' years, still left in it ; renewals — in steel — to be made gradually and from revenue, as a charge upon " maintenance of way ; " which, we- feel satisfied, can be done without involving the necessity of seeking further subsidies or bonuses, and also without again in any way draw- ing upon the bondholders. The steel rail item, with fastenings, etc., absorbs more than half the whole anticipated outlay, and though in view of the upward ten- dency of prices, we have ])ut a higher valuation on rails than Mr. Wragge had done, it is not improbable, unless an early contract be made, that even our estimate ($40 per ton) " may by and by prove/ • nsufficient. ' The second largest item under the head of construction is for straightening the line across the Valley of the Humber, and erecting a new bridj^e over the river. The existing location involves a most objectionable combination of abrupt curves and steep gradients, and the, improvement to be eifected by the proposed outlay ($66,000) at thia point will be a very noticeable and im] ortaut one. It is also designed to expend a considerable sum ($53,000) in the reconstruction of and givincf. a character of stability to bridges and culverts generally. The bridging is not a large feature in the construc- tion of the road, and one of the chief structures of the kind is on the *'spur" from the main line (Western Division) into the Village of Mount Forest, where it might perhaps be judicious not to incur an) outlay, but abatadoning the spur (about a mile long) by which the village is reached, erect a station on the main line, to which the businesa of the place should come. ROLLING STOCK. Under this heading it is proposed to expend something over 1190,000 in supplying a certain number of new engines and cars, and remodel- V '•V'' t^ i ^^^4 ^ i.-^i 23 Appendix E. — Continued, ling the present ones to adapt them to the widened gauge. This, with the roadway in its improved condition, should give rolling stock enough to serve the existing needs of traffic, and as the latter grows, additional power can be provided for out of increasing revenue. Under the above arrangement and expenditure the road, recon- structed on the standard gauge, would open with 17 Engines. ; 16 Passenger Cars. 335 Freight Cars. 4 Post Office and Express Cars. 4 Baggage and Smoking Cars. . 10 Conductors' Vans, etc. ■", > '■■■■■-^- --. ■. . , ■■■ THE BOAD-BED we found, for the most part, in very fair order, having been originally well constructed, and now requiring comparatively little work or money to suit it to the wider track. The estimate for changes and improve- ments in this direction provides for the " easing " of some particularly objectionable grades, and covers as much alteration in that respect as can be judiciously undertaken. ' ; r THE FUTURE OF THE RAILWAY. In looking into the traffic returns for the seven years that the I'oad has been in use, we find that in one year (1876) the ^ross I'eceipts were $372|336> *'^® highest figure ever reached, and were derived ohiefly from " the Farm ;" the next largest source of traffic was " the Forest," — in many years the largest of all. Under the depressed con- dition of business of all classes prevailing the last few years, earnings fell off very much, of course, while — owing to the crippled condition of the line — working expenses equally, of course, increased. The timber traffic, the main item of revenue in the earlier history of your railway, now shows a marked declension year by year. This was to have boon expected ; but as the forests recede the area of cultivated land widens, and in its products will be found the enduring and always increasing wealth of the country. The Townships traversed by your forked highway are simply splendid as agricultural districts, and with the projected improvements carried out, and having the metropolitan city of Toronto for its port of delivery, the Toronto, Grey and Bruce Railway should assuredly be able to appropriate against «11 competitors the largest share of the local business, and to draw considerable traffic from the Upper Lake besides. The amount of revenue already earned in one year (the " best year "*' as quoted above) falls not very far short of enough, with working expenses brought 24 ' ' Appendix E. — Continued. down to a mimmnm; to pay intereHt on the bon«led debt, and all other liabilities as well. Thnt the revenue can he largely and speedily increased beyond the amount ($372,336), and that it will go on steadily increasing, we see no reason to doubt; and we as confidently believe that there will, by and by, and as wanted, be " fnrplus earn- ings " enough to provide for such further improvements as nn improving trailtc may demand. Steel rails for the Western Division, additional J^oUing-stock and station accommodation ought to be, as already observed above, all paid for out of earnings — not, of .course^ all at once, but gradually — and the road thus brought to its highest condition of efficiency without the ratepayers being ever again called upon to increase their money-yiants, the burden of which will press less heavily year by year, as the increasing prosperity of the line reflect* that of the country it serves. Respectfully submitted, C. S. GZOWSKI, W. SHANLY. SCHEDULE A. I. ^} TORONTO, GREY AND BRUCE RAILWAY. Estimated cost of ch.■'} / •' (- 26 APPENDIX F. Grand Trunk Railway op Canada. General Manaqeb's OFriCB, Montreal, 19th Nov., 1879. Mv Dear Sir, — I have perused with very great interest the state- ments which you left with me a day or two ago respecting the present position and proposed alterations and improvements of the Toronto, Grey and Bruce Railway. These documents consisted of a letter from yourself addressed to Messrs. Gzowski and Shanly, and the reports of those gentlemen on the present state of the line, with certain estimates of the cost of widening the gauge, and placing the road in a proper position, both as regards its permanent way and its rolling stock, to do an increased business and give that accommodation in the district through which it passes which can alone secure its financial success, and aatisfy the people who contributed so largely in the first instance to its construction. I cannot of course express any opinion as' to the sufiiciency of the estimates, but I should certainly be disposed to accept on that subject the views of two gentlemen so eminently qualified to give an opinion as are Messrs. Gzowski and Shanly. The Toronto, Grey and Bruce, Road was constructed since I became connected with the Grand Trunk Railway. I think you are aware that I ventured at the time when the line was being made to predict that a Railway of an exceptional gauge would not prove a success, and that at no very distant date it would be necessary to change it to the standard gauge of the country. Tho relations of the Grand Trunk Company to the Toronto, Grey and Bruce have been of the most friendly character, and I can say, from personal observation and from my business experience, that every effort has been made to develop the traffic between the two lines, and that the executives of both have worked most earnestly to that end during the whole time that the Toronto, Grey and Bruce has been in existence. I am also equally well aware that the results have been disappointing, and that the Grand Trunk has not received from the road the traffic which they had a right to expect. The exceptional gauge has led to expense in handling traffic at Toronto ; it has proved a complete barrier to the development of some classes of traffic. Under any circumstances and in reference to all business, it entails expense which, in a country like Canada, whore transportation must necessarily be cheap, no railway company can afford. I noticM on looking over your statements that the following were ^^•^ .%■' \ <* t^i ■MM WMH ■"'"■■' ■"■"""<»'' 27 ^ 1.' i (f 0*HJ Appendix F.—Contivued, the earnings of the Toronto, Grey and Bruce Bailway, per mile, for the following years, ending June 30th : 1878 $1,686 1879 1,484 Turning to the accounts of other Companies, and notably those worked by the Great Western Company, running into precisely the flame district, I find that the earnings of the Wellington, Grey and Brtioo line were, per mile, 1878 $2,019 1879 1,850 and of the London, Huron and Bruce line, 1878 : $1,738 1879 1,640 I know of no reason why the Toronto, Grey and Bruce Company should not have earned as large a revenue per mile as these lines, except that to which I have already alluded, namely, the extra ex- pense which has to be incurred in handling traffic, and the almost impossibility of developing some classes of traffic by a railway of an exceptional gauge, which cannot exchange rolling stock with other Companies. Ihe earnings of the Northern Hallway, an older Company, and no doubt to some extent better situated in the district than the Toronto, Orey and Bruce Company is, are very much larger per mile than any of the lines to which I have referred. The district lying north of the Grand Trunk line, between Toronto and Sarnia, is the finest agricultural paft of Canada. Your line runs into the verv heart of it, and with proper f cilities at Owen Sound and at Toronto, which I understand it is proposed to make, I see no reason why, in addition to a large local traffic, you should not also secure in the summer months a large traffic at Owen Sound for transportatii,n to Toronto, either for shipment there, or to be sent eastward by the Grand Trunk BAilway. * With the Toronto, Grey and Bruce line in proper condition, its gauge changed to that of the standard gauge of the country, and fully equipped with rolling stock, I know of no reason why it should not do as well as its neighbours, and fully realise the programme laid down in the papers you placed in my hands, and which are returned herewith. I am, my Dear Sir, Yours very truly, (Signed), J. HICKSON, General Manager. Edmund WnAoaE, Esq., General Manager^ T. G. tmd B. R., Toronto. 38 APPENDIX O. 1878. Compurative (iroxs Jicceipl^ of varium Jiailwaijn — Year ending 30th June — per mile of Riiiltvay. Northern Kuilway of Caimila $4,101 X840 Wellington, Grey and Lruce Itailwiiy 2,022 400 London, Huron and Bruce Railway 1,735 347 Average of Northern Railway, Wellington, Grey and Bruce Kiiiiway, and London, Huron and Bruce Railway ^2 643 £530 Toronto, Grey and Bruce Railway | 694 340 ::' f»S- '\\<'iy'i,]^:ii- \ I A 20 ?er mile. '2. The proportion of aid granted by the Government of Ontario as oompardd with that granted by the Municipalities is less in the case of tbiS'Railway than in the case of the two others I have mentioned ; and which are instanced in this letter because they are those which are- nearest to this Railway. 80 Appendix H. — Continued. The Toronto, Grey and Bruoe Railway received Government Grant ^376,382 Municipal Aid 988,000 •or, in the proiwrtion of 38 to 100. The Uaniilton and North-Western Railway received Government Grant ^406,500 Municipal Aid 719,O0C> or, in the proportion of 5G to 100. • The Credit Valley Railway received Government Grant '. . . $456,000 Municipal Aid, 82?,0Q0 or, in the proportion of 55 to 100. Should the Municipalities grant the further aid of $450,000 now asked from them, and the Government grant the $200,000 asked from them, the proportion of Government to Municipal aid wiU even then only stand at 40 to 100. While upon other Railways it ijaa been as follows : — London, Huron and Bruce 54 to 100 . Port Dover and Lake Huron 53 to 100 Grand Junction 75 to 100 JiTorthern Extension 81 to 100 Kingston and Pembroke 89 to 100 I venture to submit tha'' the people of the district traversed by this Railway have therefore testified in a remarkable manner their public spirit by the liberal aid they have given to the Company, and are in consequence entitled to a more favourable consideration at the hands of the Government than they have hitherto experienced. 3. The Government grant per head of the population on the Line of the Toronto, Grey and Bruce Railway has been less than that upon the two other lines of Railway, as evidenced by the following statement : — Toronto, Grey and Bruce Railway. Population (including Toronto) 184,844 -', Grant i>er capita .. . $2.03 Population (exclusive of Toronto) 104,844 Grant per capita $3.37 Hamilton and North- Western Railway. Population (including Hamilton) 101,638 ' Grant per capita $3.99 Population (exclusive of Hamilton) 71,630 Grant per capita $5.67 B di ai » : J» mm ■MNH * 31 Appendix K.— Continued. Credit Valley Railway. Population (including Toronto) ,. 164,150 Grant per capita $2.77 Population (exclusive of Toronto) 84,151 Grant per CHpitu $5.41 If the Government place the population of the Toronto, Grey and Bruce district upon the same footing as the average of the two other districts, they will increase the grant from $375,382 to the following amounts : — If Toronto and Hamilton populations are included, to $624,000 If Toronto and Hamilton populations are excluded, to $580,000 4. The Government grant in the case of the Toronto, Grey and Bruce Railway has been less per square mile of territory served than in the case of the two other railways. For instance : — Toronto, Orey and Bruce Railway. Area of territory served 2650 sq. miles Grant per square mile $141.00 Hamilton and North-Western Railway. Area of territory served 1450 sq. miles; Grant per square mile, $280.00 Credit Valley Railway. Area of Territory served 1390 sq. miles. Grant per square mile $328.00 To place the Toronto, Grey and Bruce district upon the same footing in this respect would be to increase tho grant from $375,382 to $808,000. It may be noted in this connection that the municipalities have also contributed less per square mile of territory served than to the other two railways. The statistics which form the basis upon which reasons Nos. 3 and 4 are founded are taken from the Sessional Papers No. 79, 1879. 5. It is intended in connection with the change of gauge to provide proper facilities at Owen Sound and Toronto for enabling the Company to do its share in developing the trade of the Georgian Bay ; the • Manitoulin Island, and the North shore of Lake Superior ; as well as to endravour to carry a portion of the produce from Manitoba and the Great North- West. And I would call your attention to the fact that this i-ailway runs from Owen Sound, which is admittedly the best harbour on the Georgian Bay, in the shortest and most direot line to Toronto for 11* I ■III 33 , Apprndix H.— Continueti. the Euat. Tlie aitl, therefore, granted hy the Oovernnient for thin projeot will add greatly to the advantugc to he derivod hy that portion of the Province of Ontario known afi the vast district of Algoma, a territory which, before many years have passed, will probably be divided up into from ten to twenty conHtituenciiw, if every available means is taken of affording it that assiatance for its development by colonization to which, from its great mineral resources and rapidly improving productive pro- jtertioR, it w entitled. C. Since your interview with the deputation above referreil to, I may mention that the solicitor of this Company has held a meeting of the bondholder)) in London, at which they have agreed to the proposals of the Company, as set forth in the document marked Appendix D, accom- panyi g my letter of 22nd November, 1879, and in aooordanoe there- with, they have passed the following resolution : — "That this meeting having road the memorandum submitted by the Toronto, rirey and Bruoe Railway, and heard the explanation of Mr. W. H. Beatty with reference to the same, and although the loss which the l)ondholder8 are called upon to make — namely, three years' interest, amounting to $360,000 or £73,000, and 1 per cent. {)er annum for ever after, in addition to a previous reduction of from 8 and 7 to 6 per cent., is much more than they should be asked to bear, they, under the circumstances, agree thereto, and resolve that the proposal accepted by the Canadian bondholders, m set out in Appendix D in the printed pamphlet, a copy of which appendix is hereunto attached, be, and the same is hereby approved, with the alteration that the said debenture stock shall bear intereat from Jan. 1, 1881, at a 6xed rate of 5 per cent, per annum. This resolution, is, of course, subject to the Government of Ontario and the municipalities interested in the railway contributing suohamount as the Company may require to enable them to carry out the change of gauge and the other improvements proposed." 7. The financial basis of the Company, so far as the question of bonds is concerned, is complete. It has been impossible prior to that question being settled, to meet the various municipalities interested, but from many of them, however, the Board has every assurance that the neces- sary aid will be forthcoming, and in all probability, before the time arrives for the Order in Council, granting Government aid to the rail- way, to be signed by His Honour the Lieutenant-Governor, the majority of the by-laws will have been submitted to a vote of the people, and the day appointed for such vote to be taken. I mention this to show that the financial basis of the Company, so far as time would permit, has been fully matured, and I beg to submit that it is further advanced than many railways could exhibit which have already received grants from the Government. A few examples will suffice to show this : •^"jwpwww*" 3.1 f^STff^ project of the A to, I of the osaU of acoom- there- AiM>BNnix H.— (Iimiinued. fMlenilUi Mni North Hndingit Pailwiuj. Keqiiirementa 1^410^00 Available Assets 80,000 Still to be arranKed .l.'JO.OOO (See SeHHiofial Papers No ;13, 1875(5.) Orand Junction Railway. Kequiremeuts .... $f>H6,000 Available Assets 120,000 Still to be arranged 465,000 (See Sessional Pap«iH No. 33, 187f) 6.) Hamilton and N'oHh-Wtidorn Railmny ( Jartnit nnd. Port Dover section). Requirements 4I] 25,424 Available Assets 20,000 Still to be arranged 106,424 (See Sessional Papers No. 20, 1878.) Victoria Railway (Haliburf on to thu Ottawa River). Requirements f 19,137 per mile. Available Assets nil. Omtariit and Pcteyic Junction Railtoayr Requirements Total cost. Available Assets. « nil. Credit Valley Railway. ^ Requirements 122,306 per mile. Available Assets 5,000 '■' Still to bo arranged 18,395 ", (See SesHional Papers No. 41, 1877.) Taking the above reasons into consideration, as well as those which have been previously laid before you, I trust that the Government will see their way to grant to the country served by this Railway such assistance as, with what they are willing to provide themselves, added to the amount forthcoming from the bondholders, will give them a Railway of a gauge which will place thr m 'n a position equal to that of other localities possessed of Railway facilities — a position which hitherto, owing to the exceptional gauge of this Railway and the small amount of Government aid received, they have unfortunately been un- able to occupy. I have the honour to be, Sir, Your obedient servant, WM. RAMSAY, Vice-President.