IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I m m iiM m m IIIII22 IIM = 2.0 1.8 1.25 1.4 1.6 M 6" - ► V] ferred by the Company, the decision of the Domini(Mi Government is only general, and at the risk of being deemed troublesome, I venture to at^k, if it is intended to repudiate the whole of the claims upon their merits. In order that I may not misunderstand the intention of the Dominion Government on this point, I recapitulate the claims put forward by the Company, which are as follows : — 1. For conpensation in respect of loss and damage occasioned by the p^ast refusal of the Dominion Government to allow the Company to exer- cise the rights and privileges conferred upon them under clause 11 of the Agreement, 22nd November, 1866. 2. To have refunded to them the duties (together with interest thereon) levied upon certain materials and stores imported by them for the construc- tion and working of the Railway ; and to have allowed to them, in terms of clause 9 of the said Agreement, a drawback of all duties upon all stores or materials hereafter to be imported by the Company for either of such purposes. 3. To have paid to them interest upon the prircipal paj^mcnts made under clause 6 of the Agreement, as from the dates from which such pay- ments would, if they had been made in Provincial Bonds in terms of such agreement, have carried interest or dividend, until the date of actual payment. 4. To have paid to them all such sums (together with interest thereon as before mentioned) as were deducted by the Government from the par value of such Provincial Bonds. 6. To have conveyed to them, free of charge, in terms of clause 7 of the Agreement, certain lands required for the railway track and stations. 6. To have conveyed to them, free of chdrge, also in terms of clause 7 of the said agreement, a parcel of land, at or near Winder, and now in the possession of the Dominion Government, and which it was specially agreed with, and enacted by, the Legislature of the Province of Nova Scotia, should be so conveyed to the Company. 7. To be reimbursed all loss and expenses incurred by the Company in respect of the acquisition of the lands required by the Railway, and which were, under clause 7 of the said Agreement, to be conveyed to the Com- pany, free of charge. 8. To be reimbursed all loss, damages, and expenses incurred by the Company in consequence of the Dominion Government charging the Com- pany a higher rate of toll on certain traffic, to wit ; on cattle, horses, hay, &c., conveyed over the line between Windsor and Hdifax, or some part or parts thereof, than that charged to the general public. 9. To be compensatv-d in respect of direct and incidental damages aris- ing out of the subsidizing of steamers by the Government in contravention of the spirit and intention of the Acts and Agreement forming the basis of the Company's proceedings. 4. As to tnat portion of your letter which states that the Government have no funds applicable for the purpose of affording redress or relief to the Com- pany, I apprehend that it is not intended, that the Ministers of the Government would, for that reason, decline to acknowledge any just claim upon the State, even though it might be necessary afterwards to obtain a vote from the Legis* lature fat the purpose of discharging it. 5. As the Company must now, of course, proceed to memorialize the Legis- lature of the Province of Nova Scotia, with whom the contract was originally made, it becomes important that the Company should understand clearly hoir far the Dominion Government claim the rights, and acknowledge the obliga- tions, originally confi rred or imposed upon the Provincial Legislature, under the Acts and the Ag> eement forming the basis of the understanding with the Company. From th * convcisalion which I had with the Hon. the Minister of Public "VTorks, I am ed to believe that the Dominion Government claim to have the right, and acknotvledge the obligation, to deal only with those questions directly affecting the "Customs Revenue, and the Railways taken over by them,* which would, I assui ve, only include the claims before referred to under the sub-heads numbered 1, 2, 6, and 8, and would leave the claims under the sub- heads numbered 3, 4, 6, 7, and 9 to be dealt with by the Provincial Gt>vernment, whilst the right of purchase, under clauses 7, 8, and 10 of the Acts of the Pro- vincial Legistature o" 1865, and the power of controlling the rate of tolls to be charged by the Company to the public under clauses 3 and 8 of the Agreement of 22nd November, ] 866, would, so far as they may now remain in force, also vest in the Provincial Government; and I beg to ask the decision of the Dominion Government upon these points. 6. lam prepared on behalf of the Company, and am, moreover, anxious to meet any representative whom the Government my appoint, with a view to deal with the matter.^ under clause 11 of the said Agreement, which I would point out are not conilned exclusively to a " traffic arrangement, including run- ning powers," but also extend as an alternative to a "joint operation of the two lines. In the interim, of course, the Company continue to suffer direct loss from the delay which the Dominion Government have created, and it must, of course, be understood that the Company's claim for compensation is not to be prejudiced by any action of such representatives, unless such matter of com- pensation be also submitted to them for^heir decision. 7. I cannot conct^al from myself the difficulty of the Company and the Government together, working their traffic efficiently over so long a length as 45 miles of single line, unless the Government complete their line by the erec- tion of proper locking apparati and signals, and the construction of the proper sidings and passing plaj'^s, and appoint signalmen at the proper points ; but being sincerely anxious to avoid trouble, and to make the most of the two lines, in doing which I feel that I shall serve the interests not only of the Com- fany and the Dominion Government, but also of the people of the Province, am prepared, as a lurther effort in the interests of peace, to offer, on behalf of the Company, to lease, work, and maintain the Government line and appur- tenances, from the junction v^ith the Company's line, at Windsor, to the Waverly Junction, for the period of 99 years, and to pay over to the Dominion Government, by way of rental, annually, a sum equal to ten per cent, of the gross toll earned by the Company upon the line, and for the exercise of unre- stricted running po\.ers over the remaining portion of the Government line from sucli Waverly Junction into Halifax, including any extensions thereof to be hereaifcer construe. ed, to pay, by way of toll, annually, a sum equal to forty per cent, of the gross toll earned annually by the Company upon the line — such payment of forty per cent, to include the use of all stations and all conveniences, and a share of the services of the Station Agents, Booking Clerks, and other servants employed by the Government at the stations, depots, and junctions. If this of'er be accepted by the Government, I apprehend that I, on behalf of the Conn pany, and a representative of the Government, with an umpire to be agreed upon between us, would, with the assistance of the Superintendent of the Government line, and of the Manager of the Company's line, have no dif- ficulty in settling the details of the working. * It is neeessarj to add that since tlie abor* letter was written, the writer has been informed bjr the Minister of J\istice that the views of the Minister of Pnblic Works as to the limitation of the liabilit/ of the Dominion OoTernment must b.'we been misinterpreted or mirandentood. 8 8. Assuming as I do that the above offer will be acceptable, and that the view taken by me of the responsibility of the Dominion and Provincial Gk>vern- menta respectively is correct, I would even venture further, and offer that the claims of the Company, before referred to, under the sub^heads numbered 1, 2, 6, and 8, shall, so far as the Dominion Parliament may still decline to admit them, also be submitted to, and be finally dealt with by such arbitrators or umpire, reserving only to the Company the right to prefer their claims under the other sub-heads numbered 3, 4, 5, 7, and 9, together with their request for general aid and assistance, against the Provincial Govemment. 9. In conclusion I would remark that the claims of the Company have now been before the Government at different periods throughout the past eighteen months, and as I am here at great inconvenience to myself, and expense to the Company, wholly and exclusively for the purpose of adjusting the matter with the Dominion Government, I venture to ask for a specific and early reply to the several questions submitted, and propositions made in this letter, and to state that I will remain in Ottawa until I receive such reply. I am, Sir, Tour obedient servant, (Signed) J. A. MANN. Commissioner and Attorney Of the Windsor and Annapolis By. Co., Limited. t}». Department of Public Works, Ottawa, 8tA August, 1871. Sir,— With reference to your reply, dated the 1st instant, to my letter of same date, I have the honor to state, that by the Order in Council of the 28th ultimo, the Minister of Public Works is " authorized to make with the said Company " the traffic arranf;ements, including running powers, mentioned in the Charter " of the said Company, and for that purpose to appoint any officer or arbitrator " required by the Charter of the Windsor and Annapolis Railway Company, "should he, and the said Company be unable to make those traffic arrange- " ments without arbitration." I am now to inform you that with the view of carrying out the t^rms and object of the Order in Council, above referred to, in a friendly practicable manner, and so as to avoid, if possible, having recourse to arbitration, the Minister of Public Works has appointed Sandford Fleming, Esquire, Chief Engineer of the Intercolonial Railway, to confer with the Compan- as its authorized agent, on the subjects referred to, with instruction to report lo him, the Minister, in regard to the arrangements which the Company will a^ee to make with the Government concerning " traffic arrangements " and " running powers. I have the honor to be. Sir, Your obedient servant. \ (SiffnedJ J. A. Mank, Esq., Commissioner and Attorney Windsor and Annapolis Railway, KmtniUe. F. BRAUN, Secretary. i I 9 WlNDSOE AND AnNAPOLIS RAILWAY, . Kentville, 14i3 follows : — Tlu Capital and Debts are : Share Capital -.., .£301,600 Debenture Debt, contracted in accordance with the provisions of the Company's Act of Incorporation 200,000 Other debts of the Compaigr, contracted for the purposes fol- lowing, i. e. : — Ist — To provide for the payment of the Interest on the Debeoture Debt. 2nd^To provide father Boiling Stock, and further Sid- ings, and other accommodation. 3rd — To repair the damages caused by storms and floods.. 60,000 Making the total Capital and Lebte of the Company £551,(00 S3 : i: Th0 IwUmt fVjfobU anmuUfy upon the before mentioned Debenture and other Debts of the Company now amounts to £15,000, towards which the rail- road does not at present earn a single cent. j ,, >>,. The working of the Railroad. The receipts upon the railroad are still insuM- eient to cover the working expenses. In the two years, 1870 and 1871, the deficiency was £2,500 ; while in the three months of January, February, and March of the present year, during which period the Company worked the Windsor Brancn of the Government Line, the deficiency was £3,000. Ezcep- tionally bad weather has prevailed in the present year — snow storms and floods have done great damage, increasing the expenses, and at the same time reducing the receipts — but beyond this the destruction of the Company's rollins stock arising out of the defective and unsafe condition of the Govern- ment Line between Windsor and Waverly Junction, has entailed considerable extra expense upon the Company. The chief cause, however, of the working being nnremunerative is the smallness of the traffic, and the low and unremu- neraUve rates to which the Company are at present confined by the Government. The General Financial Position. Hitherto, the capitalists interested in the Company living in hopes of assistance irovo. the Government, have advanced money with which to provide for the Company's requirements, but this they cannot ofier to do to any greater extent unless assistance is at once extended to the Company by the Government. ^ The capitalists maintain that they are entitled to relief in one of the ways Bbt forth m the Company's Memorial of 26th July, 1871 ; but they are willing if the income of the Company is supplemented by a Loan from the Government to the extent necessary to provide the interest upon the Company's Debts, to arrange to provide the further capital necessary to develope the resources of the railroad, and further to capitalize the whole of the Company's Debts, and thereby relieve the railroad from encumbrance, and secure its benefits to the people of the Province. Such a Loan would not in any way interfere with the right of the Govern- ment to purchase the railroaa at any time under the powers conferred upon them by clauses 7, 8. and 10 of the Act of the Ligislature of Nova Scotia, 28 "Vic, Cap. 13. ' If this assistance be refused, the Company will be powerless to prevent the immediate destruction of the railroad by the creditors — and in that case the lands and money grante provided by the Province towards the construction of this great public work, will be lost ; and for tho first time in the history of a British Colony a section of the Government Railroads will be destroyed by ereditors who are really creditors of the State, while both legally and morally the Government of the Dominion will be bound to refund to the English capitalists the amount of cajntal embarked by them in the railroad. ^ As the subject is one of the most urgent importance, I beg that this applica- tion may be laid before His Excellency the Governor-General in Council without delay. I have the honor to be, Sir, Your obedient servant, 't rr- ts . {Signed) J. A. MANN, Commissioner and Attorney ■I'l' 'jJi'w'i bni ,iw Of the Windsor and Annapolis By. Co., Limited. c \iir^ ;fi; vrrr. ;. i 19 lEnolosure No. 1.] Provincial Seobetabt's Officb, Halifax, N. 3., Ut SepUmbw, 1871. Sib,— I have it in command to acknowledge the receipt of your communica- tion of the 14th ultimo, and to acquaint you that the Government have taken the subject matter of said communication into consideration, and I am instructed to forward you the enclosed copy of a Minute of Coimcil in reference thereto. I am. Sir, Your obedient servant, J. A. Mann, Esq. (Signed) H. CROSSKiLL, Deputy Secretary. Copy of a MiifffXE of Council passed on the 31st day of August, 1871. "That whil'j the Government fully appreciate the great importance of the Line of Railioad known as the Windsor and Annapolis Railway, with its im- proved steamboat communication, and feel that to close this important public work would be a serious injury not only to the counties through which it passes, but to the Province generally, tending, as such would necessarily do, to retard railway extension westwardly; they cannot recognize that any legal obligation rests upon them to compensate the Company for any loss or damage they may have sustained by the Acts of the Dominion Government. " That by the operation of the British North American Act they have been both relieved of the duty, and deprived of the power of redressing the grievances of which Mr. Mann complains, inasmuch as the railway property and rtulway obligations of the Government of Nova Scotia have been exolusiye- ly transferred to the Dominion Government, in whom the Act of Confederation also vested the powers of taxation, by means of which this Province formerly developed its railway policy. " In reference to the proposition to subsidize the Company in conjunction with the Dominion and New Brunswick Governments, the Executive feel that any action they may be called upon to take must entirely depend, even under the most favorable circumstances, upon the steps that may be entertained by the Legislature of Nova Scotia." Certified. W. B. VAIL, Clerk of ComcU. [Em^iomre No. 2.] Sm^ Pbotincial SscREf aby's OnnoE, Hal^axy N. &, 20th Apk, 1872. I have it in command to reply to your communication of the 11th inst, covering the memorial on behalf of the Windsor and Annapolis Railway Company, which, together with all oorrsspondence and papers connected therewith, was, in 20 accordance with your roquest, submitted to the Legislature, and was by that body referred to a special committee, who immediately took the matter into consider- ation. The enclosed dbcument \b a copy of their report, by which you will see that the eonimiftee could not, owin|^ to the limited means at the disposal of the Legis- lature, recommend a further subsidy to the company from the revenues of the Province. The Government are fully alive to the importance of keeping the road open, and to the inconvenienee and injury that would result from the olomng thereof, and as the committee, in their report^ request the Government of the Province to urge on the Dominion Government the necessity of rendering assistance to the Windsor and Annapolis Railway Company, a copy of the said report will be for- warded to the Honorable the Secretary of State for the Provinces, together with an urgent request that the matter will receive the earnest consideration of the Dominion Government. v, I am, Sir, Your obedient servant, J. A. Mamn, Esq., {Signed) Halifax. W. B. VAIL. l!-;iil r-.-r|i;lH' Tbk f^immi idmrnma referred the Memorial of the Windsor and Antti- ;^Hs Bailwiqr Gompaby pra^nig for state relief beg leave to report as follows i-^ Your Committee learn with regret firom the Solicitor of the Company that its financial aBairs are so embanassed as to threaten the closing of the road to the public at no distant day, and your committee would recommend the GovAmment to adopt every means within its power to avert this event Your Committee taking into consideration the large subsidy already contributed m^ t&e Province towards the building of this Railway, the claims of several sections df the Province fi>r the extension of railways through them, the rieeent legislation fbr this ofojecl^ and the limited nieans at the dispCMal of the Legislature, Oahnot recommend the payment of a further subsidy from the local revenue to th^ CbiApany. Your Coiinnittee sympathize with the Company, and regret exceedingly that tibie Ptotiilcial Le^ature has not the means of assisting them in their difficnltieff With a mdney grant, and your Committee would respectfully reqraest the Govern- ment of this Province to urge on the Dominion Government the propriety and necessity of rendering such assistance to the Company as will prevent this useful and important railroad being closed, and in the meantime to endeavor to make such asnngQvaantu as will secure to the travelling public the use of the road. (S^rned) CamtUee Room, 17th Jfril, 1872. iSaiud) L G. Powra, ,.i:AmihiitfBmm D. MACDONALD, SAMUEL RETTIE, WM. HENRY ALLISON, JOHN FLINN, JAMES EISENHAUEB. *'3(t