STACK 
 ANNEX 
 
 5 
 
 431 
 
 ANNUAL STATEMENT 
 
 ■i CANADIAN PACIFIC RAILWAY 
 
 RES»eCTINO THB 
 
 Sir C 
 
 T 
 
 HARLES UPPER, 
 
 MINISTER OF RAILWAYS: 
 
 HOUSE OF COMMONS 
 
 5th FEBRUARY, 1884. 
 
 OTTAWA : 
 
 PRFNTED BY MACLEAN, ROGER & CO., WELLINGTON STREET. 
 
 1884.
 
 ^^^3^KY SOI -i^^^^''
 
 SPEECH 
 
 OF 
 
 SIR CHARLES TOPPER 
 
 ON TH3 
 
 CANADIAN PACIFIC RAILWAY 
 
 RESOLUTIONS, 
 
 FEBRUARY 5TH, I 8 8 4- . 
 
 Sir Charles Tapper moved, that The House do go into 
 ■Committee of the Whole, on Tuesday, next, to take into con- 
 sideration that portion of the Speech from the Throne at 
 the opening of the present Session in which His Excellency 
 informs us that His Government has thought it of the 
 greatest importance for the setilement of the North- West 
 and the development of our trade that the completion of 
 the Canadian Pacific Railway from sea to eea should be 
 hastened, and the Company enabied to open the line 
 throughout by the spring of 1886 ; that with this view, and 
 in order to aid the Company in procuring sufficient capital 
 for the pui'pose by the disposal of its unsold shares, the 
 Government agreed to receive a deposit of money and 
 securities sufficient to pay a minimum three per cent, 
 dividend for ten years on sixty-five millions of the stock, 
 that arrangement being made in the belief that it would 
 give steadiness and increased value to the shares on the 
 market; that a combination of unfavourable circumstances 
 has prevented the fulfilment of these expectations, and the 
 Company has not been able to obtain the roquiied capital 
 by a sale of its stock ; and that the best means of preventing 
 any delay in the gi eat object of the early completion of 
 the railway demands our earnest consideration : And to 
 consider the following Eesolutions: — 
 
 129022;
 
 1. Resolved, That the Government rnay return i/o the 
 Company the securities now held under the third sectiom 
 of the Act 44 Victoria, Chapter 1, inlituloi, An Act respect- 
 ing the Cajiadian Pacific Railway, and under the second sec- 
 tion of the cousti action contract referred to in the said Act. 
 
 2. Resolved, That the money subsidy hereafter payable to 
 the ("ompauy, may be paid as iho work on either the Central 
 or EiJstern Section of the Eailway proceed^:), in the propor- 
 tion which the value of the work done on such section, and 
 for which payment is demanded, beurs to the value of the 
 whole worJc remaining to be done, under the contrijct, 
 on such section. 
 
 3. Resolved, That the time tor the payment bytbeCom-^ 
 pany of the sum of Two Millions Eight Hundred and Fifty 
 three Thousand Nine Hundred and Twelve Dollars 
 (^2,853,912) agreed by the said Company to be paid on 
 or before the First day of February, One Thousand Eight 
 Hundred and Eighty-four (1884) as part of the fund referred 
 to in their agreement with the Government of the Seventh 
 day of November last, shall be extended to the Seventh day 
 of November, One Thousand Eight Hundred and Eighty- 
 eight ( 1888), when the sum of Four Million Five Hundred 
 and Twenty- seven Thousand Dollars ($4,527,000) being the 
 last instalment of the said fund payable by the Company to 
 the Government will fall due, the whole with interest 
 payable half yearly at the rate of four per centum per annum 
 as agreed upon at the time of the execution of the said agree- 
 ment, and that the same shall then be paid to the Govern- 
 ment, together with the said last mentioned amount; form- 
 ing together the sum of Seven Million Three Hundred and 
 Eighty Thousand Nine Hundred and Twelve Dollars 
 ($7,380,912), bearing interest at the said last mentioned 
 rate until paid. 
 
 4. Resolved, That the Government may, out of any un- 
 appropriated moneys forming part of the Consolidated 
 Hevenue Fund of Canada, make a loan to the said Company 
 of an amount in money, not exceeding Twenty-two Million 
 Five Hundred Thousand Dollars ($22,500,000) to be repaid 
 to the Government on or before the firsi day of May, One 
 Thousand Eight Hundred and Ninety-one- (1891), with 
 interest at the rate of five per centum per annum, payable 
 half yearly, until full payment of the principal; and that 
 as part of the said loan the Government may pay to the 
 Company forthwith, such amount not exceeding Seven 
 Million Five Hundred Thousand Dollars, ($7,500,000) as 
 ehall be required by the Company to extinguish its present 
 floating debt, the amount of such debt to bo established to
 
 3 
 
 the patisfaction of the Government : and that the remainder 
 of the said loan shall be paid to the Company as the work 
 of construction proceeds, in the same proportion as that 
 •which is hereby provided for the payraor-.t of the balance of 
 the money subsidy. 
 
 5. Resolved, That as security for the repayment of the 
 said loan, with interest ns aforesaid, and as additional security 
 for the payment of the said sura of Seven Million Three 
 Hundred and Eighty Thousand JSine Hundred and Twelve 
 Dollars ($7,380,912) and interest, falling due on the Seventh 
 day of November, One Thousand Eight Hundred and Eighty- 
 eight (1888), the Government shall have a first lien and 
 charge upon the entire property of the Company real and 
 personal, now owned or hereafter to bo acquired or owned 
 by them, including their main line of Eailway, the exten- 
 sions thereof, their branch lines of Eailway, the whole of 
 their equipment, rolling stock and plant, and including all 
 steamers and vessels ; and also upon the land grant of the 
 Company, earned and to be hereafter earned ; saving always, 
 however, the rights of the holders of the existing mort- 
 gages on the extensions of the line of the Railway from 
 Callander to Brockville and Montreal, as security for the 
 nnpaid balances of the purchase money of the lines consti- 
 tuting the said extensions; and subject to the mortgage upon 
 the land grant, executed by the Company to secure their 
 issue of land grant bonds. That the Government shall con- 
 tinue to hold and retain the entire amount of land grant 
 bonds now in its custody or possession, subject to redemption 
 under the terms of the said land grant mortgage, and with 
 all remedies as to interest, voting power and all other 
 matters in respect thereof, which would be held or possessed, 
 or could be exercised by any purchaser of the said bonds : 
 That all moneys received by the Government from the 
 Trustees of the Land Grant Bonds in redemption of such 
 bonds shall be applied as follows, that is to say: All 
 moneys so received in respect of ton million dollars of the 
 paid bonds shall be applied : Firstly, in extinction of the 
 interest accrued and due upon the said loan, and upon the 
 said sura of Seven Million Three Hundred and Eighty 
 Thousand Nine Hundred and Twelve Dollars (§7,350,912). 
 Secondly, on account of the capital of the said sum of Seven 
 Million Three Hundred and Eighty Thousand Nine Hundred 
 and Twelve Dollars (57,880,912), and Thirdly, on account 
 of the capital of the said loan : — And that the Government 
 may make such arrangements as it shall deem expedient, 
 for securing the payment to it, after the redemption of 
 the land grant bonds, of the proceeds of all sales of lands 
 granted or to bo granted to the Company under the contract,
 
 to be appiiod to the purposes and in the order aforesaid. 
 And that the remaining five million dollars of land grant 
 bonds and money received from the said Trustees in redemp- 
 tion thereof, shall continue to be held on the conditions and 
 for the purposes mentioned in the said contract. 
 
 G. Besolved, That the Government f-hall cause a deed of 
 agreement to be executed by the Company, and on behalf of 
 the Government, providing for such remedieSj terms, and 
 conditions for securiog the application of the enid loan to 
 the purposes for which the same is hereb}^ authorized, and 
 the repayment of the si:id loan, and of the said sum of 
 Seven Million Three Hundred and Eighty Thousand Nine 
 Hundred and Twelve Dollars ($7,380^9 1 L') the whole with 
 interest (including interest on any interest in default) ; for 
 the release of the f^aid lieu and charge upon such repay- 
 ment ; for continuing the sale and realization of the value 
 of the said lands, after the redemption of the land grant 
 bonds, — the payment to the Government of the proceeds 
 of such sales, and the discharge of such lands from the said 
 charge upon payment of the price of sale thereof ; as the 
 Government shall deem expedient, such price not to be less 
 than one dollar and twenty-five cents per acre : — 
 
 Provided always that, among such remedies, terms and 
 conditions, it shall bo agreed and provided, that upon 
 default for twelve months in the payment of any half yearly 
 instalment of interest upon the said loan, or upon the said 
 sum of Seven Million Three Hundred and Eighty Thousand 
 Nine Hundred and Twelve Dollars, or either of them, or in 
 the paj^mentof the piincipal of either of the said 8ums,when 
 the same shall become due, in accordance with the provi- 
 sions hereof, the right of the Company under their contract 
 hereinbefore mentioned, to demand or receive any further 
 cash or land subsidy shall cease and determine, and the 
 said Railway and extensions thereof, branches, equipment, 
 rolling stock, plant, including steamers, and all lands and 
 property of the Company and all land grant bonds then in 
 the possession of the Government shall upon the occurrence 
 and continuance for the said period of twelve months of 
 such default, ijjso facto, and without any notice or proceed- 
 ing whatsoever, vest in Her Majesty, and shall forthwith, 
 thereupon, be taken possession of by the Minister of Rail- 
 ways and Canals, on behalf of the Government of Canada, 
 and each and every employee of the Company shalL from 
 and after the expiry of the said period of twelve months, 
 become and be the employee of the Government during 
 pleasure, and shall hold and possess any matter or thing 
 appertaining to the said Company then in his custody,
 
 5 
 
 as and for the Government ; and the rates of interest, and 
 the terms of payment hereby fixed, shall not be disturbed 
 or altered by the terms of such agreement. 
 
 7. Resolved, That the said Company bo authonzed to 
 execute an agreement of the nature and purport hereinbefoi*e 
 provided for, and to charge its entire property and assets, 
 in manner and form as hereinbefote described ; and in such 
 agreement to agree upon such further and other conditions 
 as the Government may prescribe ; provided that authority 
 to accept the provisions of the Act to be passed in this 
 behalf, and to the Board of Directors of the Company to 
 execute an agreement containing the charges tipon the said 
 Railway and property and the other conditions required or 
 authorized by such Act, shall be granted by the share- 
 holders of the Company, either by a resolution passed at 
 a special general meeting of t-uch shareholders, called for the 
 purpose, by a vote of at least two thirds iu value of such of 
 the shareholders as shall be present or represented at such 
 meeting, or by an instrument or instruments executed by at 
 least two-thirds in value of the whole of tlie shareholders of 
 the Company, in person or represented by their attorneys or 
 pi-oxies respectively^ duly authorized in that bohaif. 
 
 8. Besolved, That until the payment in fall of the indebted- 
 ness of the Company to the Government with interest, all 
 moneys earned and to be earned by the Company as postal 
 subsidy and for transport seivice shall be retained by the 
 Government and shall be applied on account of the interest 
 to become due from time to time upon the loan hereby 
 authorized, and then to the payment of the principal. 
 
 9. Resolved, That the stock of the Companv, amounting to 
 Thirty-five Million Dollars ($35,000,000), now in the hands 
 of the Government, shall be held by the Slinister of Finance, 
 and may be sold by the Company, with the consent of the 
 Government, on condition that the proceeds of such sale, less 
 the amount required to be paid to the Government to secure 
 a half-yearly dividend thereon, at the rate of three per 
 centum per annum, up to the Seventeenth (17ih) day of 
 August, One Thousand Eight Hundred and Ninety-three 
 (1893) inclusive, shall be applied, under the direction of the 
 Government, either to the improvement or extension of 
 the Railway, or its equipment, or to the repayment of the 
 indebtedness of the Company to the Government; and that 
 if at any time the stock of the Company bhoiild reach a 
 price which, in the opiiuon of the Government, would render 
 it expedient to sell the said stock, or any part thereof, then 
 and thereupon, on notice being given to the Company by 
 the Government, requiring that the said stock, or any part
 
 6 
 
 thereof, be sold, and specifying the minimum price at ■which 
 the name ehal! be so sold, the Company shall cause the same 
 to be offered for sale, and Bold in conformity with such 
 notice ; a^-i in default of their doing so, within a reasonable 
 delay (which delay shall be in \he difscretion of the G-overn- 
 meut) the Government thall have the right fo sell the i-amo 
 or any part thereof at or above such minimum price, and 
 shall apply the pioceeds thereof as it is herein provided 
 such proceeds shall be applied in the event of the sale of 
 such stock ly the Company. 
 
 10. Resolved, That so long as the said several sums of 
 money loaned as aforesaid or any p&rt thereof, or the interest 
 thereon remain unpaid, no mortg;^ge, lien or charge of any 
 description shall be created upon the Eailwa}^, property or 
 assets of the Company, or any part thereof; nor shall any 
 stock be issued by the Company, pending such repayment, 
 above or beyond the amount of One Hundred Million Dollara 
 ($100,000,000) to v/hich the same is now limited. 
 
 11. Resolved, That legislative pi-ovision be made for 
 giving eft'ect to the said Eesolutions, and that the mover 
 Siercof have leave to bring in a Bill for that purpose. 
 
 CANADIAN PACIFIC RAILWAY. 
 
 Sir CHARLES TUPPER. Mr. Speaker, in moving that 
 the House resolve itself into Committee of the Whole on 
 the proposed Ee^^olutions respecting the Canadian Pacific 
 Railway, I desire to make a general statement as to the posi- 
 tion of that {:;reat work, lam deeply impressed with the 
 importance of the decision. at which the House may arrive 
 in regard to the Resolutions that I now have the honour to 
 propose. A year ago, when discharging a somewhat simi- 
 lar duty, making a statement to the House in regard to the 
 position that the Canadian Pacific Railway then occupied, I 
 ventured to say that the most sanguine expectations of the 
 promoters of that great enterprise in Parliament had been 
 more than realized; that the work performed by the Cana- 
 dian Pacific Railway Company had been unprecedented in 
 regatd to the vigour with whi h it had been prosecuted, 
 and the success that had attended their efforts. I am glad, 
 Sir, to be able on the present occasion to reiterate that 
 statement, and to say that the position occupied in respect 
 to the progress of that great work is still stronger, still 
 greater, to-day, than it was when I made that statement a 
 year ago. At that time I ventured to aflSrm tha.t if the 
 Canadian Pacific Railway Company made the same pro- 
 gress in the future that they had made in the past, wo had
 
 <jvery reason to believe that the line would be open from 
 ocean to oeean by the end of 1836. In consequence 
 the unabated vigour and the increased energy with which 
 that work has been pushed, I am glad to say that if 
 in the future the same progress is made as in the 
 past, we shall be able lo shorten the period lor its 
 completion by something like a j'ear ; that it is now 
 believed lo ba quite practicable to complete the whole 
 of that gieat enterprise by the end of the year 
 i885, and open the lino for travel and traffic in 
 the spring ot 1S86. I need not say, Sir, to tho House 
 that those who have watched the progress of that work, 
 as I am sure every hon. member of this House has 
 done, will feel the immense importance to this country of 
 that which is practicable being realized at the earliest pos- 
 sible day. The contract entered into less than three years 
 ago—because it is not quite three years since Parlia- 
 ment ratified the contract made with the Canadian Pacific 
 Bailway Company — provided that the Government should 
 «ompleto 428 miles of road from Port Arthur to Eed 
 Eiver, and 213 miles from Port Moody to Kamloops, a 
 total of 641 miles, by the time stated in tho contracts for 
 their completion, which was July, 1885. I am giad to be 
 able to eay that that which the Government undertook to 
 do in relation to the portions of the work that still remained 
 under construction by the Government will be fully realized. 
 As I stated to tho House when last addressing it upon this 
 subject, in order to open the line for traffic in tho spring 
 of last year, it became necessary to transfer to tho Canadian 
 Pacific Pail way Company a portion ot the work which 
 remained to be done on contracts 41 and 42, and work which 
 required to be performed on contracts 13 and 25, bein^ the 
 first section from Port Arthur, in consequence of the long 
 period that had elapsed after tho road was completed, the 
 work required to be executed in order to place it in tho 
 condition in which the Government agreed to hand it over 
 to the Canadian Pacific Railway Company. I stated to the 
 House that it was intended to transfer those works to the 
 Canadian Pacific Railway Company in order that tho road 
 might be operated at the same time that the works 
 of completion were in progress, and as the only practical 
 means by which that important result couid be at- 
 tained. Those arrangements, as you. Sir, are aware from 
 the contract which I have laid on the Table, were carried 
 out. The Canadian Pacific Railway Company took over 
 all the works requiring to be done by the contractors of 
 section 42 at the prices contained in their contract, less 15 
 per centum on the train work that the former contractors had.
 
 8 
 
 undertaken and proposed to do, and to which, as it lessened 
 the cost of the work which was to be done, the Govern- 
 ment and the Company both agreed the contractors were 
 entitled as a matter of justice. That work has consequently 
 been completed, or is being completed by the Canadian 
 Pacific Railway Company upon the same terms as it would 
 have been completed, and at the same cost to the country, 
 under the contract that had been made wiih the contractors 
 for section 42. The portion of the work that rem.ained to be 
 executed on sections ! 3, 25 and 4 1 was also agreed to be done 
 by that Company upon the lowest terms, and at prices which 
 similar work had cost in connection with tho?e contract?. 
 The sum of $286,000 has been paid in relation to that work 
 performed by the Canadian Pacific Railway Company en- 
 tirely outside of their contract for the whole liue. 1 may 
 mention here that I do not take that question into considei'- 
 ation at all, because that contract with the Company is pre- 
 cisely in the same position as contracts with any other pri- 
 vate individuals or conti actors, and has no relation to tho 
 question we are now about to discuss, 1 may say in refer- 
 ence to the works upon the 213 m»iles from Port Moody to 
 Kamloops, that the progress has been of the most satisfac- 
 tory character. As the House is well aware, the contj-ac- 
 tors for those 213 miles were Mr. Mills and Mr. Onderdonk, 
 the latter being engaged in both. On something over 
 89,000,000 of an estimate for the work on that section over 
 87,000, OuO have already been executed, and with the force at 
 their command and tho progress they are making, wo have 
 every assurance that the work will be completed within the 
 time stated in the contract; in fact the track will be laid 
 from Port Moody to Kamloops, through the whole di>tance 
 in September next; and within the time — and I think I 
 might say considerably before the time — named in the con- 
 tract the entire works will be completed. I am glad, Sir, 
 to be able to say that the' further information which wc 
 have acquired, down to the present time, when, as I have 
 already stated, over 87,000,000 of the #9,000,000 proposed 
 expenditure has been completed, shows that the cost of that 
 work will not exceed the estimate which I hsvo already 
 given to the House. Then, Sir, the Company were bound 
 tinder the terms of the contract to construct 650 miles from 
 Callander to Port Arthur, and also to construct a line from 
 Red River to Kamloops, a distance which by the present 
 line is ascertained to be about 1,250 miles, making 1,900 
 miles in all, as nearly as possible. Trains are now running 
 on 1,131 miles, although it is not yet three years since 
 Parliament ratified the contract under which they are 
 working. These facts have reference to the main line ;
 
 9 
 
 but the Company have also constructed 239 miles of 
 branches on which, trains are running, making now in oper- 
 ation of main line and branches no less than 1,370 miles. 
 A large amount of work has also been executed upon 160 
 miles of the line (in addition to the 1,131 miles) of the very 
 heavy works north of Lake Superior. The Company have 
 at this moment over 9,000 men employed in the construc- 
 lion of the portion of the line that remains to be completed 
 in that region ; and, as I have already stated, with the force 
 at their command, and the appliances with which they are 
 prepared to execute the work, we have every reason to 
 believe that it is entirely practicable to complete the Cana- 
 dian Pacific Eailway from end to end by the close of the 
 year 1885. Now, Sir, I may say with reference to the 
 character of tho work, that when the contract was entered 
 into with the Canadian Pacific Railway Company, it was 
 feared by some gentlemen in this House that a 
 sufficiently high standard was not created whereby the 
 Government would secure the construction of 
 that work in as perfect and thorough a manner as it was 
 desirable it should be constructed. My answer to those 
 criticisms was that as they were constructing it for them- 
 selves,, and as the cost of operating the line for all time to 
 come would depend on the mode in which the work was 
 performed, we had in those fiicts a better guarantee than 
 any popsible standard of construction, that the work would 
 be well executed. I thick, Sir, it is not necessary for me 
 to say to this House that the manner in which the 
 Canadian Pacific Eailway Company have executed the 
 work which they have performed is so satisfactory as to 
 command, as it has commanded, the unqualified approval 
 and admiration of every person who has visited and inspect- 
 ed this road and who knows anything of railway con- 
 fitruclion either in the adjoining States or in Canada. A great 
 number of gentlemen, thoroughly qualified to judge of the 
 quality of railway works, have gone over the line, and 
 from them there has been but one opinion, and that 
 opinion is that not only has the contract been 
 fully and faithfully carried out but that it has 
 been exceeded in every particular, ard that on 
 any part of this continent there is not to be found a better 
 road running through a similar country. The Chief 
 Engineer of the Canadian Pacific Eailway has visited 
 the works from time to time, and he affirms, in the 
 fullest possible manner, as also does Mr. Sandford Fleming, 
 formerly Chief Engineer of the Canadian Pacific Eail- 
 way, that it would be impossible to find a work 
 executed in a more satisfactory manner than this work has
 
 10 
 
 been by the Canadian Pacific Bail way Company. It might, 
 perhaps, be desirable for me to give a slight glance at the 
 character of the work which remains to be done. Prom 
 Sudbury Junction to Michipicoton the work is said to be 
 light, the grading for the greater part is of a sandy nature ; 
 this distance is 210 miles. On the 140 miles from Michipico- 
 ton to Pic, the work ie said to be moderately light, the cut- 
 tings generally of clay or sand v?ith some rock. From Pic to 
 wiihin 35 miles of Nepigon, the work is excessively heavy, 
 the grading being composed chiefly of hard rock; distance 
 95 miles. It is upon this heavy work, to a very large 
 extent, that the strong force which I mentioned are now 
 concentrating their efforts. The work for the remaining 35 
 miles to Nepigon is moderately light ; the grading is 
 about completed. Then, as regards thy work in the Eocky 
 Mountains, from the summit of the Rocky Mountains to 
 the foot of the Mouii tains, the work may be classed as gene- 
 rally heavy, with some short distances very heavy ; distance, 
 45 miles. From the foot of the Eocky Mountains to 
 the foot of Selkirk Mountain the work is described as 
 being light, the country being flat ; distance, 80 miles. 
 From the eastern foot of the Selkirk Mountain to the 
 mouth of Eagle Pans, the work may be considered moderate 
 for mountain work, the grading being largely through 
 gravel; distance, 64 miles. The remaining distance from 
 the mouth of Eagle Pass to Kamloops, 161 miles, is 
 described as medium, the cuttings being rock, clay and 
 gravel. This makes in ail 780 miles remaining to be con- 
 structed north of Lake Superior and the part to connect 
 the end of the track at the summit of the Eocky 
 Mountaiiis with the works which are in progress by the 
 Government at Kamloops. The summit of the Eocky Moun- 
 tains is 5,300 leet, aud of the Selkirk Mountain, 4.816 feet. 
 I may say. Sir, that down to the present hour the Canadian 
 Pacific Eailway Company have prosecuted their work with 
 unabated vigou.", and have, so far as carrying out the con- 
 tract into which they entered with the Government is con- 
 cerned, left no ground of complaint as to the mode in which 
 they have proceeded. It is well known, Sir, to the House 
 that in October last the Company applied to the Govern- 
 ment for the purpose of obtaining their support to guaran- 
 tee the interest on the outstanding stock of the Company — 
 someS65,000,000. The first proposal, as the House is aware, 
 was to obtain a guarantee on the whole §100,000,000 of 
 stock issued, and it was supposed by the Company at that 
 time — in fact, I believe they had reason to suppose — that 
 no difliculty would be experienced in obtainins: the amount 
 of money necessary to guarantee the payment of a t
 
 11 
 
 per cent, dlvidepd on the whole of their stock, the entire 
 8100,000,000. That was snbf=eo^uently found to be imprac- 
 ticable, and an amended proposition was submitied to 
 limit the guarantee to all the outstanding stock, the $65,- 
 000,000, and to provide that the remaining $35,000,000 
 should be deposited with the Government, and no more 
 stock issued except as the Company deposited the money 
 necessary to furnish the gnarantee of 3 per cent. It will 
 not be necessary forme to discuss at any length the reasons 
 which obliged the Company to adopt the course they did. 
 It is perfectly familiar to the House that a demoralization 
 in railway stocks occurred in New York in regard to all 
 the trans-continental lines of railway, and everything 
 •onnected with them, which rendered it impossible for the 
 Company to sell the remaining stock — upon which they 
 depended to obtain the money to complete the Canadian 
 Pacific Railway with the promptness and vigour with which 
 they were performing that work — except at a ruinous 
 sacrifice. I do not intend. Sir, on the present occa- 
 pioD, to go at length into the causes that especially affected 
 the Canadian Pacific Eailway. I want, in making a calm, 
 dispassionate, business statement of the position of that 
 great work, and of the question as it now stands before this 
 House — I want to avoid, as far as possible, raising any 
 matter of a controversial character. Bat, Sir, I may say 
 to the House, what is very well knowr, that in the United 
 States, parties connected with the Northern Pacific Rail- 
 way, the Central Pacific Railway, and the Union Pacific 
 Railway — in fact, all the trans-continental lines of railway — 
 parties, who a few years ago regarded the proposal to 
 •onstrnct a Canadian Pacific Railway by the people of the 
 Dominion as entirely illusory, and as a matter that need 
 give them little concern — have gradually, but latterly very 
 rapidly, been changing their opinions with regard to 
 that great work. They have found that the vigour with 
 which the work has been prosecuted has rendered the early 
 eompletion of the Canadian Pacific Railway a ques- 
 tion far removed from the region of the merely 
 theoretical ; and, Sir, they have learned, upon enquiry and 
 examination, when their attention was drawn to the subject, 
 that Canada possesses advantages with respect to a trans- 
 •ontinental railway that would render it a formidable rival, 
 either of the Northern Pacific, or the Union Pacific and 
 Central Pacific Railway. And the result of the discovery 
 of ihe greater advantages which a Canadian Pacific line of 
 railway would possess, has been a great increase in the ac- 
 tive hostility of all the trans-continental lines of railway — 
 and, I may say, of all the lines in the United States con.
 
 12 
 
 nected with those trans continental lines — towards the Cana- 
 dian project. Aud, Sir, I wi.'-h I was able to say that the 
 hostility to this great national work — for national work it 
 is — was confined to those lines of railway that might be 
 considered rival lineR in a foreign country. I say, I wish I 
 was able to say that the Canadian Pacific Eailway Company 
 and this great national enterprise had not suffered from any 
 hostility within, an well as without, our borders. But, Sir, it 
 is well known that attempts to decry this great work, at- 
 tempts to break down this great enterprise — aye, Sir, even if 
 it involved breaking Canada down, as far as possible, 
 along with it — have been entered upon, not only in the New 
 York, but in the London markets, with very determined 
 vigour; but, as I said before— and I do not intend to detain 
 the House longer on that subject — the result is well known 
 — the value of the Canadian Pacific Eailway stock became 
 80 impaired and weakened as to render itimpossible for the 
 Company to obtain money from that source sufficient to 
 enable them to prosecute to rapid completion their great 
 enterprise. Now, Sir, the llou^e will remember that when 
 Parliament was providing for the means of constructing 
 this great work, the G-overnmeut who submitted the pro- 
 position to the House were told that w'e were granting an 
 unduly large subsidy for its accomplishment. We were 
 told that, in addition to the work we were performing to 
 cost $2-^,000,000, we were giving $25,000,000 in money, and 
 an inordinate quantity of land, when we added a grant of 
 25,000,000 aci'es, as so great a subvention was cot neces- 
 sary in order to provide fully for the completion of the 
 work. Well, Sir, that land was estimated — 1 think I may 
 say without much controversy — as worth about $2 an 
 acre. Ass^uming, therefore, that that was all true, it would 
 involve to the people of Canada, for the construction of 
 the Canadian Pacific Eailway, a cost of $103,000,000. 
 But our answer was this— and it has been thoroughly 
 established by subsequent experience — that great as 
 was the quantity, valuable as was the character of those 
 lands, valuable as they would be rendered by the con- 
 struction of this great line of railway and the 
 branches which tho Company proposed to construct in con- 
 nection with it, it would not be possible for them to realize 
 from those lands the money that would be required to carry 
 on the woik. That, Sir, has been abundantly borne out by 
 the facts. With every efi'ort that was possible being made 
 to realize on the lands, the time came when it was apparent 
 that, great as was the value of the property of the Company, 
 it would be impossible alone by issuing the stock of the 
 Company, to obtain the means to carry on tho work. As I
 
 13 
 
 stated before, the resources of the Company became impaired, 
 and if they threw the additional SH5,0fl0,('00 of their 
 stock on the market, it would bo sacrificed without their 
 obtaining the means expected. Now, Sir, it will not be necos- 
 sary,with the papers before you,for me to refer to the mode in 
 which the dividends guaranteed on the stock were provided. 
 You are aware that the Company provided $"^,71(/,240 
 in cash, and j^ou are aware that they provided for the pay- 
 ment oi all the remaining money required to warrant the 
 Government in giving the guarantee, by pocuritiea of the 
 most ample description. I do not think there is any 
 person in this House or out of it, who will be disposed 
 to question the desirability, on the part of the Govern- 
 ment, of securing iho prompt completion of this great 
 work, by giving their assistance in the form that was 
 proposed. The Government has scarcely transcended the 
 usual borrowing powers of a Government. So far as 
 the $8,710,240 providing a guarantee for five years 
 was concerned, of course no question can arise. That 
 was entirely within the borrowing powers of the 
 Government, — although requiring the approval of 
 this House, and one which the Government felt every 
 confidence in asking this House to appi'ove — to 
 accept undoubted securities for the payment of a 
 portion of that money at a deferred period; thus enabling, 
 as was to be desired, this work to be prosecuted with the 
 same vigour as that which had hitherto characterized its 
 construction. There is another point to which I might be 
 expected to draw the attention of the House for a few mo- 
 ments in connection with the guarantee, and that is that in 
 addition to the land grant bonds that were deposited to 
 secure payment of the entire amount required to provide 
 the guarantee for the whole ten years for which the Gov- 
 ernment became responsible, a postal subsidy estimated at 
 $3,000,000 was taken as a part security, i am quite cer- 
 tain those who will take the trouble to look into that ques- 
 tion will find that the Government were amply warranted 
 in doing this — that in fact it was no novelty to use a postal 
 subsidy in that way. It was known that we were paying 
 at the same rate to the Canadian Pacific Eailway, as to other 
 railways, a large postal subsidy ; and that in a very short 
 time, assuming the work to be completed, and even in the 
 absence of the completion of the work, we should 
 be paying over $120,000 a year for .postal subsidy, 
 which would represent the $.-i, 000,000 that were taken as a 
 security, without regard to the transport service they would 
 perform for the Department of the Interior in connection 
 with the management of Indian Affairs and the Mounted
 
 14 
 
 Police. But, 1 say, altogether apart from that, it is known 
 that, at the same rate paid to other railways, they will 
 become entitled to a subsidy of no le^s than $20i,000 a year 
 for the transmission of mails on the completion of the road, 
 representing at an early day a much greater amount than 
 the $3,000,000 that was estimated to be covered. Taking the 
 second lien upon the $5,000,000 of bonds deposited with the 
 Government to secure the operation of the line for ten years — 
 and as I shall show by-and-bye a security that certainly we now 
 know never will be required to be called into operation, and a 
 first lien upon a further sura of $5,2^0, 000 in bonds— abundant 
 security was taken, independently of the postal subsidy, for 
 the entire amount that the Government were required to 
 guarantee. It thus became a question with the Government 
 whether this guarantee should be given for the purpose, not 
 ol enabling the Canadian Pacific Eailway to complete their 
 contract — 1 wish the House to understand at the very outset 
 that no change is proposed by the Canadian Pacitic Kailway 
 Company in regard to their contract — that the Canadian 
 Pacific Eailway Company, taking into account the property 
 they own, the lands that they possess — putting a more mode- 
 rate estimate of value upon them than thatofhon. gentlemen 
 opposite, and one in which 1 think the House will be pre- 
 pared to concur — putting the most moderate estimate on 
 the value of their lands, the Canadian Pacific Eailway Com- 
 pany feel that they are able to carry their contract to com- 
 pletion without the alteration of a letter. There is no pro- 
 posal now submitted to the House to change a single line of 
 the contract with the Canadian Pacific Eailway. It is to 
 stand now as it stood on the first day when we laid it on 
 the Table of the House. Instead of its value having 
 decreased, every one knows that with every suc- 
 ceeding year the Canadian Pacific Eailway has 
 established itself in a stronger and stronger position. 
 Everv one knows that the experience in the sale of a por- 
 tion '^of their lands — between three and four millions of 
 acres already sold by the Company— leaves no room to 
 doubt that in that subvention they have ample moans for 
 the completion of the work, with the additional means 
 which they themselves have already provided in connection 
 with its progress and construction, but the question that 
 is submitted for the consideration of the House, and that 
 was submitted for the consideration of the Government 
 when the Company afeked for this guarantee by the Govern- 
 ment, upon depositing money and securities to represent 
 every dollar of it, was whether that step should be taken, 
 not to enable the Canadian Pacific Eailway to fulfil their 
 obligations and to carry out the contract they had
 
 15 
 
 made with Ihe Governrner.l, but for the parposo of antici- 
 pating the time provided in that contract by over five years. 
 The Government believed they were conBulting the 
 best interests of Canada in adopting measures which, 
 without cost and risk to the countiy, would accomplish so 
 great and desirable an object as that of opening to the people 
 ol this country ail that transcontinental line of communica- 
 tion from end to end in that brief period. It is well known that 
 the Northern Pacific Eailway Company, by making a great 
 effort, have completed their lino running from Lake 
 Superior to the Pacific Ocean. It is w^ell known that traflBc 
 once established in a groove is very difiicult to be drawn from 
 it and placed upon another line : and we regarded it.therefore, 
 as the first consideration in the interests of the country — 
 iooking at this as a great trans-continental lino of railway 
 — that at the earliest possible moment there should bo a 
 line of communication for travel and traffic extending across 
 this Continent on Canadian territory, and enabled to draw to 
 its support all that travel and all that trafilc which could 
 possibly be drawn to it from our own country' and the 
 country which lies to the south of ub. Under these circum- 
 stances, the Government adopted, with some modifications, 
 the proposals made by the Company and provided for the 
 guarantee. I need not tell the House that it resulted in 
 failure — that all the expectations that the Company bad 
 formed, and that the Government had formed— and I am 
 able to say capitalists without exception in Ctinada, in the 
 United Siatos and in England, had formed — to the effect that 
 the result of that guarantee would be to give all the means 
 required by the Company to enable them to carry on 
 their work with such vigour and promptness as would secure 
 its completion by tho end of 1885, signally failed. They 
 were found to be erroneous. But if the Company were wrong, 
 if the Government were wrong, the error was one in which 
 financial men and capitalists without exception on both sides 
 of the Atlantic shared, because no doubt was entertained as to 
 what the result would be. The war, however, against trans- 
 continental railway stock was intensified, the efibrts to bear 
 the stock of tbe Canadian Pacific Eailway were intensified, 
 and then tbe result was that the project ended in signal 
 failure — not only in failure but in disaster. Because' as it 
 will be readily seen, the Company found themselves in this 
 position : that having failed to obtain such increased value 
 for their stock, as every person supposed they would obtain, 
 they were left without the$8,710,';i40 of their cash deposited 
 with the Government, an amount locked up which otherwise 
 they would have had at their command for the purpose of 
 going on with tho construction of tho line. So that
 
 16 
 
 instead of obtaining the object expected, the very contrary 
 occurred, and the embarrassment and difficulty that had 
 before been experienced by thena in providing for a rapid 
 and vigourous completion of the line wad intensified. 
 Under these circumstances, the Government submit ihc 
 Eesolutionsthat are now on the Table for the consideration of 
 this House. And I think, after I have had an opportunity 
 of placing in the most frank and open manner before the 
 House all the questions connected with this Company, 
 every ti-ansaction so far as I am able to judge that is inter- 
 esting to this House in regard to their position, that the House 
 will come to the conclusion that the Government are not onlj' 
 warranted in submitting, but that they would fail in their 
 duty to tho House and to the country if they did not submit 
 the propositions that are now placed before you, not with a 
 view to enable the Canadian Pacific Eailway Company to 
 derive advantage, or to realize larger returns for the pro- 
 perty that they possess, but for the purpose of enabling the 
 people of Canada to have finished within two years this 
 great trans-continental line of railway, and to derive all the 
 advantages that are calculated to flow from the prompt and 
 vigorous completion of this work. Now, Sir, the Company 
 ask that we should postpone, or rather I should say that 
 the Resolutions before you ask that the Company may post- 
 pone, the payment of 87,3S0,912 for the guarantee for 
 five years. But they leave with the Government ample 
 security, as provided for under the original ai-rangement, 
 for that postponement. Practically the proposal before the 
 House is only a change of the payment of the $2,853,912 
 that was to be paid on ihe first day of this month. That is 
 the change from tho arrangement already made in relation 
 to the guarantee. It is proposed to postpone the payment 
 of that guarantee for five years, and to loan the Company 
 S22,500,000, to be repaid on the first day of May, i89l. 
 The conditions ot that advance may briefly be stated as fol- 
 lows: In the first place, it is proposed that in future the 
 payment for work done shall be placed upon a difi"erent 
 basis from that which was contained in the contract. That 
 is not a real but simply a nominal change in the terms of 
 the contract. When the contract was made, it was 
 provided that, upon the completion of every 20 miles, 
 the Company should receive payment, according to the 
 terms of the contract, op each 20 miles completed ; but it is 
 now found that, owing to the character of the work which 
 remains to be done, it would be iraposfcibie, with any jus- 
 tice to the Company or to the Government, tp carry on that 
 mode of payment. Take the country north of Lake Superior, 
 the whole distance is e; sy until you come to the 95 miles
 
 11 
 
 of enormously heavy \v' ik, and, if you paid thera pro rata 
 according to the cou tract for the number of miles done, 
 the company would not receive, for the 95 miles 
 a proporate cost of the work. So, in the Eocky 
 Mountains, the 30 miles that is comparatively easy 
 would not bear any proportion to the other work 
 that remained to be done ; and it is only proposed 
 to make a change that is based upon the principle 
 upon which payments are made by the Government in 
 relation to almost all the other contracts— I think I may 
 say to all the other contracts, on the canals, on rail- 
 ways, and on everythiog of the kind — which is to pay for 
 the amount of work done. The whole section from Sud- 
 bury Junction, to which the line i^ now completed, to 
 Nepigou, north of Lake Superior, it is provided shall 
 be covered by a certain sum of money," and, instead of 
 paying for each 20 miles as it proceeds, which, as I 
 say, would leave you without the means of completing 
 the 95 miles of the heaviest portion of the work, it is 
 proposed to adopt the same principle that is adopted 
 in relation to the payments on all similar contracts and 
 almost all the works under the charge of the Govern- 
 ment, to pay them pro rata as the work proceeds, accord- 
 ing to the value of the whole work. In the whole distance 
 there is a certain sum of money to be paid. The Chief En- 
 gineer makes his estimate of the cost of the work in order 
 that payment bo made for the work done in proportion to its 
 value to the whole; and, having arrived at that con- 
 clusion, he gives his certificate that the work done, in 
 regtird to that which remains to be done, warrants 
 the payment ot a certain sum of money. As I 
 have said, it was indispensable, in the intere^sta of 
 the Government as well as in the interests of the 
 Company, that that change ohould be made, in order to pro- 
 vide pro rata, as was the intention, for the work pex-formed 
 by the Company for the Government. Then, Sir, a 4 to the 
 $23,500,000, it is not proposed to pay the company one 
 dollar of it except as the work proceods, and in instalments 
 proportionate to the value of the work remaioing to be 
 done; so that, when the $22,500,000 is exhausted, together 
 with the $12,1" 10,788 of cash subsidy remaining in the 
 hands of the Government, the Government shall have 
 the certainty of the work being completed from end 
 to end. The conditions on which it is proposed to 
 give that advance may be briefly stated in this way. 
 First, there is the charge already described fo'- securing the 
 payment of the guarantee at the end of the five years. 
 Then, there is the forfeiture, upon default of the interest or
 
 18 
 
 grincipal for twelve months, of the entire pi-opeity of the 
 ^mpauy. There is the prohibition of any further charge 
 upon the property, except for the sole piu'poso of repaying 
 the advances. It is quite possible—and it may ba uocessaiy 
 more specifically to provide for that, to enable the Com- 
 pany to realize the means of promptly paying the Govern- 
 ment, when the opportunity may present itself — it may bo 
 found, in fact, quite desirable to provide that they shall 
 have authority to establish a charge upon the land 
 grant, for the purpose of providing the means of wiping out 
 their indebtedness to the Government, whenever a suitable 
 opportunity may prepent itself. Then, there is the removal 
 from the market of the balance of the $35,000,000 of 
 stock remaining to be issued. That remains in the hands 
 of the Government, and, with this entirely under its control, 
 not a dollar of that stock, even if they provided the amount 
 as arranged in the first agreement for the guarantee of 
 3 per cent., can be issued until such time as the Gov- 
 ernment agree, and then it can only be issued with the 
 consent of "the Government, for the purposes of the road,. 
 or for the purpose of repaying the loan to the Government. 
 In order to take entire control of that matter, in order to 
 place the Government in the position that if the value of the 
 stock rose to a point where we thought it ought to bo sold^ 
 and the money returned to the treasury by the Company 
 that had been advanced, we have power to secure the sale of 
 that stock and thus recover the amount of indebtedness to 
 the Government. I need not refer to the proposal to relin- 
 quish the security of 81,000,0U0 for construction j because, 
 Sir, I need not remind hon, gentlemen opposite that the 
 object of taking 81,000,000 security for the construction 
 of $100,000,000 worth of work could only bo of one kind, 
 and that was for the purpose of getting an effective guaran- 
 tee of the bond fides of the Company, and securing ourselves 
 against the possibility of their failing to go on with the 
 work. The House knows that in every contract that we 
 make, as the work advances, it is customary to give up the 
 security that has been deposited for the construction of the 
 work— the 5 per cent, security deposited is given up to 
 the contractors as the progress of the work warrants the 
 Government in the conviction that the work will bo car- 
 ried to completion. So in this case, seeing that a large 
 amount of money not received from Government sources 
 has gone into this work, the Government feel that it would 
 only bo unnecessarily hampering the Company to 
 lock up, without the slightest cause or necessity, this 
 $1,000,0)0 that, to a very huge extent, they are 
 already entitled to receive back according to the
 
 18 
 
 principle we have adopted in contracts of all 
 kinds with the Government. Now, Sir, I may say 
 that ifi the proposal— to postpone with ample secarity for 
 its payment already placed in the hands of the Government 
 by the Compai\y, to ]j08tpooe the payment of the $7,330,912 
 for the guarantee, and to advance, as the work proceeds, 
 $22,500,000. Now, Sir, I will, no doubt, be asked if the 
 Company have shown the Government that tbey have a fair 
 and a legitimate right to ask for that assistance in order to 
 ensure the completion of this work within two years. And, 
 Sir, in regard to that matter I will lay before the House a 
 frank statement of the affairs of the Company, as given by 
 themselves, which, I think, will remove all doubt as to the 
 position they have placed themselves in so as to entitle 
 them to the confidence of the Government in regard to this 
 application. I propose to give a statement of expenditures 
 made by the Company, and the sources from which they 
 have obtained their money and receipts, which, I think, will 
 satisfy every hon. member in this House how baseless are the 
 Btatements that have been made broadcast over this 
 country, that the moneys received from the Government, 
 and from Government sources, have been used by the Com- 
 pany outside the contract for the construction of the Cana- 
 dian Pacific Railway ; and that, instead of taking the large, 
 liberal, and generous subvention that this Government 
 asked Parliament to provide for the conatruction of that 
 road, and putting it into this groat work, they have 
 used those means derived from the Government for the 
 purpose of engaging in outside entei-prises apart from the 
 Canadian Pacific Railway, and are thus not entitled to come 
 to the Government and seek for any assistance, even for so 
 desirable a purpose as that of securing the construction of 
 this great work five a^d a half years before the time pro- 
 vided in the contract. The statement placed in my hands 
 by the Company shows as follows : — 
 
 EXPEUJDITURE. 
 
 Woika of construction on main line, west of Callander 
 
 embracing 1,131 miles of completed road $23,078,929 
 
 Works of construction on Branch Lines, west of Callander, 
 
 embracing 269 miles of completed road — 295 ............. 3,759,793 
 
 ImproTemeute of Government Lines, west of Cross Lake. ... 353,606 
 
 Materials, rails and supplies $d,364,839 
 
 Less advance on rails...., 339,235 
 
 4,025,604 
 
 Rolling stock ^6,130,792 
 
 Lake sieamers „.. 552,2.51 
 
 Plant tools and outfit for cotstruction 187,002 
 
 6,870,0t5 
 
 Five per cent, dividend on stock , ..„., 2,128,000 
 
 Literestj &c., on land grant bonds 372,880 
 
 Deposit with Government on guaiantee , 8,710,240 
 
 2i
 
 20 
 
 Extension from Callander to Montreal and Brockville 3,270,351 
 
 Rolling Btoek for above ,. 900,000 
 
 Shops 516,033 
 
 Tools and machinery....... ,» 352,230 
 
 Real estate for termini 390,790 
 
 Total expencliture from Montreal to Kamloopa and Urock- 
 
 ville $54,728,500 
 
 Advances and Accounts Receivable for Extension to the 
 Seaboard, tJ'c. 
 
 South-EHSf.ern Railway •• 1,582.327 
 
 St. Lawrence and Ottawa Railway 69,900 
 
 Atlantic and North "Western do .=, 156,6*6 
 
 Canada North-West Land Company ,. 600,0&7 
 
 Advances to fiontractors in construction , 600,000 
 
 Sundry advances and carriers back charges and other 
 
 matters iuciciental •■■• ..... 473,281 
 
 Paid iu roepect of securities deposited with the Government 
 
 in lieu of |1, 000,000 cash «-.. ., 484,614 
 
 68,695,363 
 Reckipts. 
 
 Net receipts from sale of stock. $25,356,828 
 
 Loan on f 10, 000,000 of ttock 4,950,000 
 
 Cash subsidy 12,289,212 
 
 Land grant bonds , 9,029,012 
 
 Sale of town sites = 477,775 
 
 Net revenue 11,115,574 received 891,875 
 
 52,994,70a 
 
 Excess of expenditure over receipts $5,700,663 
 
 Deduct advances, &c., as above 3,966,865 
 
 $1,733,798 
 Now, Sir, I propose for a moment to review the character of 
 those expenditures. But before doing so I may bo asked ; 
 what evidence I have that this is an iiccurate statement of 
 the expenditures and receipts of the Company ? And anti- 
 cipating thin question, although of course I was bound to 
 accept the statement of the Company as a fair and honour- 
 able exhibit of their actual receipts and expenditure, I felt 
 it was right, on a matter of so much importance, to be in a 
 position to give Parliament the most abundant and accurato 
 information, and to show beyond the possibility of 
 question that there was no doubt as to the accuracy of the 
 statements placed in my hands as to the expenditure and 
 revenue of the Company. And for that purpose the Govern- 
 ment nominated Mr. "Miall Deputy Minister of InlanJ 
 Eevonue, one of the ablest accountants iu the public r-ervice, 
 and a gentleman who had been employed by the late 
 Government on financial questions of the gravest impor- 
 tance, aa one of the ablest accountants whose services 
 they could coramaod, to go to Montreal in con- 
 nection with Mr. Scbieiber, the Chief Engineer, whose 
 familiarity with the whole question would be of
 
 21 
 
 great value in an investigation of that kind, for the 
 purpose of making such an investigation of the books and 
 statements of the Company as would assure beyond ques- 
 tion the accuracy of the statements they had placed in my 
 hands. I will read an extract from the report of those 
 gentlemen, which, I think, will be found to be entirely 
 satisfactory on that point. 
 
 Mr, ELAKE. I suppose the hon. gentleman intends to 
 lay that report on the Table. 
 
 Sir CHAELES TUPPEE. I do ; I will lay the paper 
 on the Table. I think, perhaps, Mr. Spe&ker, as this is an 
 important pajjer, I may as well read the correspondence. 
 The following is the letter addressed by me to those gentle- 
 men : — 
 
 " Ottawa, 2Slh January, 1S84. 
 " Dear Sirs,— I Iiare to request that you will, with all convenient speed, 
 proceed to Montreal, with a view to investigate the books and accounts 
 of the Canadian Pacific Railway Company so far as such ezamination 
 may be necessary to enable you to verify certain stattments of revenue 
 ana expenditure which have been laid before my colleagues and myself 
 by that corporation. 
 
 "I am aware that an exhaustive and detailed audit would entail the 
 labcar of weeks, if not months. This is not expected. But you are 
 required to make such exsmination as a prudent business man woulQ 
 desire to make before lending capital to or entering into terms of co- 
 partnerahip with & respectable commercial firm. A copy of the Com- 
 pany's statements is traasmrtted herewith. 
 
 " I am, yours faithfully. 
 (8iguod) " CHARLES TUPPER." 
 
 The following is the report made by those gentlemen on 
 their return : — 
 
 " Ottawa, 2nd February, 1684. 
 
 " To the Bou. Sir OaARLxs Tttppsk, C.B., K.C.M.G., 
 
 " Minister of Railways and Canals. 
 
 "Sir, — In obedience to your letter of instruction (bearing date the 
 28th ult.) we proceeded to Montreal on the morning of the 28th ult. 
 
 " On arriving at the ofiBces of the Canadian Pacific Railw.ay Company 
 we were informed that the President was temporarily absent from the 
 city ; but upon communicating to Mr. Drinkwater the nature of our 
 errajid, he at once placed a room at our disposal, and stated that all 
 the books, accounts and vouchers would be cheerfully produced for our 
 inspection. 
 
 " Ke then summoned the Chief Accountant of the Company (Mr. 
 Ogden) and requested him to hold himself and staff in reKdineaa to fur- 
 nish any assistance or information required, when we forthwith proceeded 
 with our investigation. V7e f jund the books of the Company under Mr. 
 Ogden's able sjpervieion, to be faultlessly kept, both as to system and 
 detail ; so that iar less diflSculty than we anticipated was experienced 
 in establishing an independent trial balance as the basis of further 
 operations. 
 
 '* Working backwards from this point by a process of analysis familiar 
 to accountants, stifhcient detail was obtained not only to check the 
 figures presented by Mr. Stephen, but also to examine into the details 
 of each sub-head, where such examination was deemed to be necessary, 
 and to prove that the general results were arrived at wishont the aid of
 
 any improper manipulation of accounts, directly from the original entries 
 made in proper chronological order from the various subsidiary books. 
 
 "We do not wieh to convey the impression that the nature of the 
 expenditure under eAch sub-head has to any considerable extent chal- 
 lenged oar attention. Such an examination would, necessarily, occupy 
 a considerable longer time than was at our disposal and would have 
 transcended the limits of our instructions. Neither did we examine into 
 the matter of the distribution of stock. 
 
 "As the result of our investigation, however, we have no hesitation 
 whatever in submitting our opinion that the statements furnished by 
 the President and placed in our hands for verificatioo, represent truth- 
 fully the actual condition of the Company's affairs as portrayed by the 
 books of the Company. 
 
 "It is understood that if any further infbnnation is required in respect 
 of specific items, the books are still open to our further scrutiny, when- 
 ever you may so determine or r? auire. 
 
 " The books of the Lmd grant bond trustees were also placed before 
 ns, for investigation, and were found practically to agree With the state- 
 ment made by the President. 
 
 " We have the honour to be, Sir, 
 
 " Your obedient servants, 
 
 " COLLINGWOOD SCHBEIBEB, 
 
 (Signed) " E. Miall." 
 
 Now, Mr. Speake?-, having shown to the House the steps 
 that have been taken to verify the Company's statement, I 
 may ae-k the indulgence of the House for a few momenta 
 while 1 draw attention to the character of those expendi- 
 tures. In the first instance, there can be no question as to 
 the expenditure, S23,0t3,929, on the main line 
 from Callander to the crest of the Eocky Mountains. 
 Then we come to the expenditure of 83,759,193, 
 being for Algonia Branch and Western Division 
 branches, 295 miles being under construction in all. 
 I think, Sir, that there is no hon. member who will not say 
 that in the interests of Canada it would be impossible to 
 find any expenditure to which the Canadian Pacific Kail- 
 way Company could apply their money more important to 
 the success of the enterprise, more important to the charac- 
 ter of the work itself, or of more vital importance to the 
 settlement and development of the great North-West. 
 Every mile of those branches, constructed without any aid 
 whatever from the Government, is calculated, I say, to 
 serve the purpose that the Government had in view in 
 naaking the contract — the development and advancement of 
 the country, perhaps to a still greater degree in ma.ny in- 
 stances, than a portion of the trank line itself. I need not 
 dqtain the House upon this item of $4,025,604 for supplies. 
 These supplies are rails and other materials for the purpose 
 of carrying on the construction of the work. Rolling 
 stock, $fi,130,'792, is, of course, part of the contract on the 
 main line between Callander and Port Moody, demanded 
 under the contract, and every dollar is expended directly
 
 23 
 
 for the purposes for which the contract was made. The 
 expenditure of $552,251 for lake steamers is also an expen- 
 diture made for the purpose of facilitating the development 
 of the work of carrying on the traffic and business of the 
 country; and of, at the same time, pi'omoting the construc- 
 tion of the portion which remains to be completed. The 
 plant, tools, and outfit for construction are, of coursa, inci- 
 dental to the construction, $187,000, making for tliat ser- 
 vice S3,87<\045, upon which, I think, no possible question 
 will arise. Then, we have dividend on stock, $2, 128,000, which 
 was, of coux'se, incidental to the sale of the stock, and neces- 
 sary to enable them to realize the $i5,356,8!:l8 obtained by the 
 sale of the stock, for the purpose of constructing the road. The 
 interest, &c., paid on land grant bonds, $372,000, was, of 
 course, a necessary expenditure to realize the money they 
 received from the Innd. The deposit of $8,710,240 with the 
 Government on the guarantee was a.n expenditure also made 
 directly for the same object as the payment of the dividend 
 en ihe stock — the object of furnishing money for the com- 
 pletion' of the contract. The extension from Cailandor to 
 Montreal and Brockville, $3,270,351 ; rollirig stock, S9C0,0Q0 ; 
 shops, $516,032; tools and machinery, $352,230, and real 
 estate for termini, $390,790, will bo admitted, 1 think, hy 
 every person familiar with this question, to be expenditures 
 of the most valuable character to the Canadiun Pacific 
 Kaihvay. Every person is aware. Sir, that in the construc- 
 tion of a great trans-continental line, it was of the greatest 
 importance to the character of the undertaking and 
 to its standing, its position, and its success, that 
 instead of commencing at an unknown point, such 
 us Callander — which it would be impossible to make 
 the financial men of the world understand — it was 
 of the most vital consequence to the success of the work, iu 
 Ofder to obtain the coniidence of the public to carry it on 
 to completion and to make it successful after it was com- 
 pleted — that they should bring that terminus at Callander 
 down to the city of Montreal, where it could be fairly and 
 honestly claimed that there was an inter-oceanic line, ex- 
 tending from the Atlantic communication on the one side 
 to the Pacific on the other. I think. Sir, it will not be ne- 
 cessary for me to say one word to show that, in the interests 
 of Canada and of the Canadian Pacific Euilway C<rmpany, it 
 was impossible to make an expenditure which was more 
 calculated to benefit the country and benefit the enterprise 
 than the expenditure involved in carrying the termi- 
 nus from Callander to Montreal. This makes an 
 expenditure upon which, I think, there will he no difference 
 of opinion of $54,728,500. Then, there are further items
 
 24 
 
 covering in all tbo sum of $3,966,865, for advances and 
 accounts receivable ; and these stand in a somewhat dif- 
 ferent position. It is quite true they are embraced, and 
 they maybe all held to be fairly embraccd,within their char- 
 ter. It provides for an extension to the seaboard, and the 
 expenditure in connection with the St. Lawrence and Ottawa, 
 and the Soutb-Eaclern are for purchases of the bonds of 
 those roads and are, of course, a good asset held by them 
 for the purpose cf reaching the Atlantic seaboard. The 
 acquisition of the Atlantic and North "Western charter, 
 and the expenditure under that charter of a considerable sum 
 of money in connecting the Canadian Pacific Eailway with 
 the Grand Trunk Eailway by a line around the mountain 
 at Montreal, is, of course, embraced within their 
 charter. The expenditure to secure a controlling 
 interest in the South-Eastern Eailway was, of course, 
 for the purpose of enabling them to place themselves in a 
 position to draw traffic to the Cai^adian Pacific Eailway, 
 from the Atlantic seaboard, whether at New York, or 
 Boston, or Portland, or St. Andrews, or St. John or Halifiix. 
 We, looking at it from the Maritime Provinces, are extreme- 
 ly anxious that they should go to a Canadian port; and 
 I am glad to know that the Canadian Pacific Eailway Com- 
 pany attach the greatest possible imiiortance to getting the 
 shortest line to the seaboard that they can, to an open winter 
 port in Canada. The expenditure in connection with that 
 matter — whether by connection with the International Eail- 
 way, and thus making the shortest line that can be obtained 
 to a Canadian port, open at all seasons of the year — is an 
 expenditure which I believe every person who wishes to see 
 this great trans continental line of railway successful in 
 drawing down traffic and travel from every section of the 
 country, would be only too glad to see them make. It 
 may be said that they aim also at obtaining access to 
 Portlrnd, Boston, and New York. Suppose they do. 
 I say the Canadian Pacific Eailway would fail in their duty 
 to the great enterprise in which they are concerned, would 
 fail in their duty to Canada if they did not take every 
 practicable and feasible means of drawing every" pound of 
 traffic they can draw from any port in the United States 
 upon a Canadian line to be carried across the continent. 
 Under these circumstances, I say, the expenditure which is 
 made in that regard is one which, I believe, will commend 
 itself to business men — and I am sure it will to railway 
 men — as a sound and prudent consideration. I only regret 
 that they did not when acquiring a railway to the city of 
 Montreal go on to the real ocean port of Canada in summer, 
 the city of Quebec ; and I believe that it will le found
 
 25 
 
 noceseary by that Company, notwithstanding that 
 they have reached ocean communication at Montreal 
 — I believ6 the interests of the Company will involve 
 the necessity of their securing direct and com- 
 plete through communication with the great ocean port of 
 Canada, for the summer season, at the harbour of Quebec. 
 I have no doubt that every measure will be taken that can 
 be taken to attain that important object. I trust that, by 
 the shortest line to the sea, reaching ports in the Maritime 
 Provinces by a shorter line than the Intercolonial, and by 
 connecting the links which have been shadowed forth, 
 in connection with this matter,they will never rest until they 
 have come, not only to the harbour of Quebec for summer, but 
 that, looking to the vital importance of having, as they will 
 have, a great ocean port there in summer — the great impor- 
 tance of having a Canadian port open throughout the whole 
 year, winter as well as summer — they will never rest until 
 tihey have established a route of communication to St. John, 
 to Halifax, to St. Andrew's, and ultimately to Louisbourg. I 
 say, Sir, the fact thai when thoy have reached the harbour of 
 Louisbourg, the fact that they will make it the interest of 
 every man who has a letter to send or who wishes himself 
 to pass in the shortest period of time from London to New 
 York to go through that harbour, will compel the Company, 
 in the interest of this great national work, not to rest short 
 of attaining even that point as the ultimate object. But I 
 have no hebitation in saying that the distance between 
 Montreal and Halifax in winter can be so ehortened by the 
 roeasures that are in contemplation as to give every reason 
 to believe that the Company will find it their interest, until 
 IjouTsbourg is reached, to make Halifax at all times — in 
 the winter at any rate — the great grain shipping port for the 
 Canadian Pacific Eaii way. Now, Sir, with reference to the 
 $6('0,0C0 ol stock subscribed by the Canadian Pacific Eailway 
 in the Canadian North-West Lard Company, that stands 
 upon the f-ame footing as many of these other measures. Why 
 did they sul^-iile $G00,( 00 of stock in the Noith-Weet Land 
 Company ? Every person knows, who has been watching 
 the proceed irgs of the Company, that they made a large sale 
 of land to the Canadian North-West Laud Company, and it 
 was of grejft moment that the stock of that Company should 
 be subscribed— should )3e placed in such a position as 
 its inherent value do.'^erTed,for the purpose of rendering the 
 Compan3''s land operations successful, and thus giving them 
 the means for promoting the construction of the Canadian 
 Pacific Eailwa3\ The advance to contractors on cons- 
 truction of $G00,000, I understand to stand thus : A con- 
 struction company was formed, embracing a large number
 
 26 
 
 of the membera of the Canadian Pacitic Eailway Company, 
 if col the CooipaDy itself, with a number of ootskie individ- 
 uals who were prepared to go into a construction company, 
 and the works wore carried on by it. I expect, in response 
 to the application of the hon. leader of the Opposition, to 
 lay on the Table of the House, in the caar>so of to-morrow, 
 the contract with that Company, which will disclose its 
 exact character ; but I may say that, so long as the means 
 were found by the construction company and the 
 Canadian Paciiic Eailway Company combined, to vigor- 
 oiisly carry on the work, it was carried on in that 
 way. But, when the time came — when, owing to the 
 stringency of the money market in New York, and the 
 depreciation of the property of the Company, it was 
 impossible to obtain the means to carry on the work — 
 they fell back on the principle of a guarantee in order to obtain 
 funds Irom another source,and they closed their accounts with 
 the construction company, to whom it appears they had made 
 advances at that time of $600,000. Then there is an item of 
 sundry advances, carriers' back charges, and other mattore, 
 amounting to $473,281, which are incidental expenses con- 
 nected with every great undertaking of this kind. The next 
 amount is the sum of $484, (J l-i paid in respect oi seouritieB 
 deposited with the Govomment, in lieu of the $1,000,000 cash 
 deposit, to secure the completion of the contract. As the House 
 is aware, the Government agreed to release the $1,000,000 
 in cash, and to accept in its stead, 11,630,000 of CreditValley 
 Eailway bonds. It was found by my predecessoi', the late 
 hon. Minister of Public Works and has been found by my- 
 self and the hoc. Minister of Public Works beside me, 
 necessary — in order to give additional facilities to contract- 
 ors to complete their work — to exchange the original cash 
 deposit for real estate or a security of some other kind ; and 
 this action of the Government wafl simply in conformity 
 with the usual plan, adopted by the late Government as 
 well as by this Government, in relation to allotaer contracts. 
 And I presume— in fact I know — that this payment of 
 1484,614 represented siook belonging to Mr. Stephen in the 
 Credit Valley Eailway, and if that deposit is released, this 
 money will go back to the Canadian Pacific Eivllway Com- 
 pany, to be used in prosecuting the enterprise. Now, Sir, 
 having given as briefly as I oould the charaoter of these 
 expenditures, I propose to show a little more in detail how 
 the account will stand, On the main line, between Callan- 
 der and Port Moody— on the eastern and central sections — 
 with improvements made on the Govej-nment line west of 
 Cross Lake, the expenditures have btou as follows : —
 
 2t 
 
 Main Line, between Callander and Port Moody, Uasfern dnd Central 
 Sections, with improvements made on the Oovernment Line, west of 
 Cross Lake. 
 
 ESPKNDITCRB. 
 
 GoDfltruction— Nipisaing Division $3,249,971 
 
 do Lake Superior Division 2,299,783 
 
 do Western do 17,529,175 
 
 . $23,078,929 
 
 Equipment— rolling stock $6,130,792 
 
 do steamers 552,251 
 
 do tools and plaats 187,002 
 
 6,870,046 
 
 Materials on hand— fuel.. $459,666 
 
 do general stores 843,907 
 
 do rails, ties, &c. ...... ...-...., 1,539,792 
 
 Supplies for construction 1,521,474 
 
 $4,364,839 
 Lbss advance on rails .....■^.. ............ 339,235 
 
 4,025,604 
 
 Improvement on Government lines west of Cross Lake 353,606 
 
 Five per cent, dividend on stock .„ $2,128,000 
 
 Interest, &c., on land grant bonds 372,880 
 
 Deposit with Government on guarantee 8,710,240 
 
 11,211,120 
 
 Total expenditnre - $45,539,304 
 
 Cash Recbitbd. 
 
 Cash subsidy paid by Government $12,289,212 
 
 Proceeds of sales of land grant bonds 9,029,012 
 
 Proceeds of sale of town sites 477,775 
 
 $21,795,999 
 
 Excess of expenditure over receipts $23,743,306 
 
 Main Line and Branches between Callander and Port Moody, Eastern 
 and Central Sections, Branches with improvements made on the Oovern- 
 ment Line, west of Cross Lake. 
 
 EXPBNDITURB. 
 
 Main line, as before stated « ,. $45,639,304 
 
 Branches. 
 
 Algoma Branch , $1,877,324 
 
 Western Division Branch 1,882,469 
 
 ■ 3,759,793 
 
 Total expenditure $49,299,097 
 
 Gash Receivbd. 
 Main line, as before stated $21,795,999 
 
 Excess of expenditure over receipts $27,503,098 
 
 Main Line and Branches^ between Montreal and Port Moody, Eastern and 
 Central Sections, acquire^ Lines, Branches and Improvements, on 
 Oovernment Line West of Cross Lake. 
 
 J EXPENDITURK. 
 
 Main line and branches, west of Callander, as 
 
 before stated $49,299,097
 
 28 
 
 Acgnired lines — 
 
 Canada Central Railway $ 2,251,^42 
 
 Q.M.O. & 0. Railway 180,8S3 
 
 Improvements thereon ,..,.. 770,956 
 
 Mile End and Brockyille Loop Line Branches 67,300 
 
 3,270,351 
 
 Rolling sto jk , 900,000 
 
 Shops- 
 Montreal $362,820 
 
 Perth „ 115,628 
 
 Carleton Place 37,5S4 
 
 516,032 
 
 Tools and machinery............ 352,230 
 
 Real estate for termini and shops 390,790 
 
 Total expenditure $54,728,500 
 
 Gash Receipts. 
 
 Main line and branches west of Callander, as 
 
 before $ 21,795,999 
 
 Net revenue— $1,115,574 received 891,875 
 
 22,687,874 
 
 Excess of expenditure over receipts $32,040,626 
 
 Main Line, Branches and Extension, from Seaboard to Seaboard, Eastern 
 and Central Sections, acquired Lines, Branches, Improvement in 
 Government Line, West of Cross Lake, and advances on Lines to the 
 Seaboard, 4'c. 
 
 Exi-ENDITURB. 
 
 Main line and branches between Montreal, 
 
 Brockville and Kamloops, as before stated $54,728,500 
 
 South Eastern Railway ....„ $ 1,582,327 
 
 St. Lawrence & Ottawa Railway , 69.900 
 
 Atlantic & North-Western do 156,646 
 
 Canada North- West Land Co 600,097 
 
 Advance to contractors on construction......... 600,000 
 
 Sundry advances and carriers for back charges 
 
 _ and other matters incidental to traffic, &c... 473,281 
 Paid in respect of securities deposited with the 
 
 Government in lieu of $1,000,000 cash 484,614 
 
 — 3,966,865 
 
 Total expenditure « „ $58,695,365 
 
 Cash Receipts. 
 
 Main line and branches between Montreal and 
 
 Brockville and Kamloops, as before stated $22,687,874 
 
 Excess of Expenditure over Receipts $36,007,491 
 
 Deduct advances, &c ..,.., 3,966,865. 
 
 $32,040,626 
 I trust under these circumstances we have heard the last, 
 either in this House or out of it, of the unfounded statement 
 — &s I have proved it to be from the figures that I have sub- 
 mitted to the House — that this Company has taken the 
 money received under this contract from the Government 
 for the purpose of building a line of railway from Callander
 
 29 
 
 to Kamloops and expended it on outside enterpriser, apart 
 from and without any reference to the Canadian Pacific 
 Eailway. If we have not, I think we ought to have reached 
 that point in the discusyion. I may draw the attention of 
 the House for a moment to the property that is to be cov- 
 ered by the lion. The Canadian Pacific Railway have 
 properly which, if realized at its fair value, in 
 abundant to complete their contract without any aHs^ibt- 
 ance from any source. Having an enterprise oo 
 hand that has eytablished itself beyond eontroverfey 
 as an enterpriee baeed on a sound commercial foQiidation, 
 they are in a position to say that with anything lilco a fair 
 realization of the valae of the property they posssssthey do 
 not require assistance from any person. They are in & 
 position to say to the Government, we can fall back upoJi 
 our contract, we can disband our force of 9,000 men now 
 operating near Lake Superior, we can draw in our expendi- 
 ture, and by 1st May, 1891, we shall be enabled to sell land 
 enough to provide with the net revenue for operatingiall that 
 we require. We shall have the means of completing our con- 
 tract ; but if you want that great work completed by the 
 end of 1885, v/e ask you, not to give us au additional dol- 
 lar, but to advance to us as the work proceeds the amount 
 of $22,500,000 for that purpose, i have told the House in 
 the first place that they do not ask au additional dollar of 
 subvention for the purpose ot completing the contract they 
 have made w th the Government. I have told th) House 
 that the Company have the strongest confi- 
 dence in the value of the subvention already given; 
 that with the amount that can be obtained from the 
 outside public, and that has been obtained from the outside 
 public, they have the means of completing their contract. 
 Bat while they do not ask the House to give them a single 
 additional dollar they ask us to use the credit of t-his 
 country — which, thanks to the management of my colleague, 
 the hon. the Minister of Finance, never stood in a 
 higher pO:iition — to obtain the means of accomplishing this 
 great national wovk by the end of 1885; and that without 
 imposing the slighte-^t shadow of a shade of additional burthen 
 upon the Government or upon tbe country giving security for 
 the repayment of every dollar by the time the contract was 
 to be completed, the 1st May, 1891. I say that if this is the 
 position in which they are— and I think, I may venture to 
 say, that hon. gentlemen opposite will not controvert 
 the soundnej's of ihat position, will not question the fact 
 that the security oflfered to the Government by the Company 
 for tills temporary advance in order to quickly complete this 
 great national work is abundant — we should not hesitate a
 
 30 
 
 single Kiomont in giving that measure our support. 
 Let me draw attention briefly to the property that }3 
 covered by this lien by the Canadian Pacjific flailway. 
 I have already said that, if there is either one year's 
 default in the payment of interest or default in the payment 
 of the $7,300,000 at the end of five years to cover the 
 guarantee, or of the amount on the first day of May, 1891, 
 if, by the first of May, 1893, every dollar of interest and 
 every dollar of principal is not refunded to the Government 
 of this advance, they propose that we shall become at once 
 the possessors of the entire property of the Canadian Pacific 
 Kailway Company. What does that embrace ? That em- 
 braces the entii'e property from the ocean terminus at 
 Montreal to Port Moody on the Pacific, it embraces the line 
 on which they have paid over $3,000,000 between Montreal 
 and Callander, it embraces the line on which they have 
 expended over $2,000,000 the branch to Algoma 
 Mills, it covers the 269 miles of branches in the North -West, 
 it covers the three magnificent steamers that they are 
 placing upon the route between Algonia Mills and Port 
 Arthur, and it covers the entire 21,246,000 of acres 
 of land that remain at the disposal of the Govern- 
 ment. I shall not elaborate this question, because I do not 
 anticipate that any hon. gentleman in this House will say 
 for a single moment that the security is not so ample, that 
 the value of the property pledged is not so enormous, as to 
 place the possibility of failure or the possibility of our not 
 having every dollar of principal and interest advanced t<> 
 this Company refunded, beyond a question of any contin- 
 gency or of doubt. I may say that this road will embrace, 
 of the main line from Montreal to Port Moody, 2,886 miles, 
 it will embrace 112 miles of branches belonging to the lines 
 between Montreal and Callander, and it will embrace 395 
 miles of branches in the North- West, making a total of 3,393 
 miles of road. Let us look ior a moment at the character 
 of that security. The entire charge to which the road 
 between Montreal and Callander is subject is $5,323,333. 
 The land grant earned by the Company and unsold 
 at this moiuent is 10,002,305 acres, and the land grant un- 
 earned 11,244,295 acres, or a total land grant to which the 
 Company is entitled when the road is finished of 21,246,6fl!P 
 acres, over the portion that they have sold. This land is 
 subject to a lien of $5,000,000, charged as secui'ity 
 for the operation of the road, and, as I have already told 
 the House, we do not propose in these Eesolutions to 
 release that lien. There is a very great misapprehension, I 
 find, in some quarters on that point. There is no proposal 
 in these liesolutious to release that $5,000,000 of land
 
 31 
 
 grant bonds held by the <TOverninerjt as a secm-ity foi- the 
 0]>eratioji of tho lino for ten years. I may say that that is 
 rather a matter of sentiment than otherwise, so lar as the 
 Government is concerned. We wish the contract to rer 
 niaiu intact as we made it, and we, theiefoi-e, do not pi'o- 
 pose to roloace that Jien, although we feel the most 
 confident assurance that it is unnecessary to retain a single 
 dollar of that $5,000,000 of bonds for th« security of a 
 road when it is already shown that, with its unconnected 
 portions, labouring under the greatest possible difiicalty, its 
 net earnings have been some $978,000 within the last nine 
 months. That the road when constructed will be a valuable 
 property there can bo no reason to doubt. That the road 
 this coming year will earn a very large anaount of not 
 profit over and above the expenses of its operation tliere 
 cannot be a question ; and, when opened from end to end, it 
 isperfeotly obvious that the Canadian Pacific Railway will 
 bo placed upon a thoroughly sound and complete commor- 
 cial foundation, as one of the best lines of railway communi- 
 cation that is to be found in the country. Let us look 
 a little more closely at what this 3,39H miles of road 
 presents. I have alieady said that the entire land 
 grant of tho Company, the 21,246,000 of acres in 
 the hands of the C-rovernment, over and above the small por- 
 tion required to cover the outstanding bonds, will be a 
 eecurily to the Grovernmont ; and all the money derived 
 fi=om that source will come directly to tho Government. 
 The land grant bonds issued are $10,000,000. Of this 
 $6,667,000 have been destroyed or cancelleJ. There ar« 
 held by land companies, against instalments of purchase 
 money not yet dne, $84*^,000, making $7,513,000 of bonds 
 that are either cancelled or held by land companies until they 
 make payments on the lands purchased, and they then will 
 come in. That leaves the balance in the hands of the public 
 $2,487,000. The balance of purchase money of land bought by 
 individuals not yet due, applicable to the redemption of this 
 is $1,363,500, leaving a balance of issue not provided for of 
 $1,123,500 in all. Wo that, when this $1,123,500 of land 
 grant bonds that arc outstanding is provided for, the whole 
 21,246,600 acres of land stand in tho position of simply 
 representing securities in the hands of tho Goverriinent, or 
 money that is to come into their hands as the land is 
 sold. The extent then of the property placed in the 
 hands of the Government is 21,246,600 acres of land and 
 3,393 miles of road. Suppose an improbable contingency — 
 I will not say improbable — I will say an impossible contin- 
 gency. There is not an intelligent man in this country 
 who does not know that it is not v/ithin the range of possi-
 
 32 
 
 bility, with a lieu of bucJi an insii?niticant chai-acter upon a 
 property of Buch magnificent pi'opoi'tions aa I have Bhowu 
 this property to be, that any other result can happen than 
 that every dollar of the principal and every dollar of the 
 intejest will come into the hands of the Government before 
 a default of twelve months is made. I might dismiss thftt 
 subject at once and forever from any consideration, 
 woie it not that it is just as well to look at a phasa 
 of this question that 1 think has not, perhaps, attract- 
 ed public attention, and that is, the position tbo 
 Government vs^ouid be in, tiie position this country 
 would be in, if this Company made twelvQ months* 
 default in the payment of the last dollar of this 
 money advanced for their assistance, or of the interest 
 upon it at 5 per cent. Now, Sir, I have spoken of the landa 
 and the railway. What will that road cost us, assuming 
 that to-morrow after this arrangement is made, assuming 
 that to-morrow they make default' assuming that to-morrow 
 the Company were to abandon the work, what would be 
 our position ? And, Sir, it does not matter whether default 
 is made now or at the end ; the position, so far as these 
 figures are concerned, will stand the same. I will show you 
 what this 3,393 miles of road will cost the people of thia 
 country in case of the impossible contingency of default. 
 I will put the land on both sides of the account, the land 
 which thoy have sold, and which netted them $2.36 an acre 
 on 3,753,400 acres. But, for the purpose of meeting 
 the views of hon. gentlemen opposite as closely 
 as I can regarding the value of these lands, 
 I will call them worth $2 an aci'e. If wo call 
 the subvention that goes to the Canadian Pacifio 
 Eailway Company of 25,000,000 acres of land worth 
 $2 an acre, it makes, with that which we pay in cash, 
 and that which we paid in completed road, $103,000,000; 
 and that, t think, was the favourite calculation of hon. 
 gentlemen opposite. Now, Sir, I will charge ourselves 
 with the 3,753,400 acres of laud sold at S2 an acre, 
 making $7,506,800; I charge the advance on rails of 
 $339,235; i charge the cash subsidy paid, $12,289,212 ; I 
 charge the proposed advance of $22,500,000 ; I charge the 
 lien on the Canada Central and the Quebec, Montreal, Ottawa 
 and Occidental Kulway, $5,333 3.33, assuming we will have 
 to pay it if the road came into our hands ; I charge the 
 guarantee dividend on stock postponed, $7,198,460; 1 
 charge the land grant bonds sold with no sales to redeem 
 them, $ 1, 123,500 ; i charge the estimated cost of the work the 
 Government has to build at $28,000,000/; I charge the balance 
 of cabh subsidy, $12,710,788, and what is the total?
 
 33 
 
 I challenge the scrutiny of hon. gentlemon opposite ; I 
 ■will lay this paper on the table, and I invite the closest 
 scrutiny and investigation as to whether this is not a fair 
 statement of the position we would be in if, to-monow, or 
 at the end of two years, they made default, or if at any 
 period they made default. In regard to this question, I say 
 that is the account ; every dollar is charged there that by 
 any possibility the people of this country would have to 
 pay for that 21,246,600 acres of land and 3,393 miles of 
 road, without any charge upon it of any kind from end to 
 end. The whole total is $97,001,328. That is what the 
 road would cost the people of this country. The paper 
 is as follows : — 
 
 Statement ehovfing that should tho Company fail to fulfil the terms 
 upon which the loan is made, the Goverment will be seized of pos- 
 session of the following prope'ty for the sums namei below : — 
 
 Extent of Property. 
 
 Land ..- 21,246,600 Acres. 
 
 Railway and branches 3,393 Aliles. 
 
 Which will Cost. 
 
 3,753,400 acres land (sold) say its^alue at $2 per acre $ 7,506,800 
 
 Advance on rails _ 339,235 
 
 Cash subsidy paid -...> 12,289,212 
 
 Proposed ad vaQce of 22,500,000 
 
 Lien on Canada Central and Q.lf.O. & 0. Ry _ 5,333,333 
 
 Guarantee dividend on stock postponed 7,198,460 
 
 Land grant bonds sold, with nosaies of land to redeem them 1,123,500 
 
 Estimated cost of Government work. 28,OCO,000 
 
 Balance of cash subsidy , 12,7lO,7b8 
 
 Total $97,001,328 
 
 Assuming the lands to be worth $2 per acre, the following would fee 
 the position: — 
 
 21,246,600 acres at $2 per acre ..... $42,45'3,200 
 
 3,393 miles of railway at $16,065 54,508,128 
 
 Now, Sir, what more? What shall we do with the lands? I 
 have charged the land they have used at $2 per acre, and put 
 it on the other side of the account, and showed equally what 
 the lands have realized, and what our position would be, 
 and what the road won id cost u.s. I credit the road with 
 the 2I,2i6,600 acres of land at §2 per acre, making S42,- 
 493,200 of cash ihat will come back to us out of the g97,- 
 000,000 ; and 1 take the completed road of 3,o93 miles 
 without a charge of a dollar upon it, from Montreal to Port 
 Moody, costing the people of this country $54,508,128. 
 Thai is the total. So, Sir, I say that in that position there 
 is no intelligent man who will say, in the first place, that 
 there is a shadow of ground for supposing that every dollar 
 of this principal, and every dollar of this interest, will not 
 be retui'ned, as provided for in these Resolutions, to the 
 3
 
 34 
 
 coffers of Canada. And I say, further, that in case of that 
 impossible contingency arising, we would stand in the posi- 
 tion after pelling the lands-attlie value these gentlemen have 
 put upon them, the lands that would come into our hands, 
 we would have the 3,393 miles of main lino and branches from 
 Montreal to Port Moody — at a cost to the people of this coun- 
 try of $54,508,128. Well, Sir, what will the Canadian Pacific 
 Railway propor cost us ? — that road, Sir, that hon. gentle- 
 men opposite declared would cost $120,000,000. I need not 
 remind the House that when we were discussing this question 
 before, the hon. leader of the Opposition gave to the House 
 a careful calculation of what it would cost the Government of 
 this country to bui'd a I'oadfrom Callander to Port Moody, 
 without a mile of branches — the simple line from Callander 
 to Port Moody; and the hon. gentleman stated that he had 
 submitted the careful calculation in regard to this matter to 
 his colleague, the former Minister of Public Works, who 
 had been for years examining this quesiion, and dealing 
 with it as a Minister; and. Sir, these two hon. gentlemen 
 came to the conclusion that the lowest amount for which 
 the Caiutdian Pacific Eailway c^uld be built from Callander 
 to Port Moody was — the hon. leader of the Opposition 
 stated it— $120,000,000. He also submitted the calculation of 
 the hon. member for Lambton (Mr. Mackenzie) my dis- 
 tingui^hed predecessor, containing the result of that hon. 
 gentleman's most careful and accurate calculation, which put 
 the cost of the road from Callander to Port Moody at, more 
 accurately, $121,700,000, Now, Sir, that is the value of 
 the road, as stated by hon. gentlemen opposite — the lowest 
 cost at which it could be built. It was true, Sir, I had 
 estimated the cost of that lino from Callander to Port 
 Moody at $81,000,000, but my hon. friend, the leader of 
 the Opposition, took the opportunity of reminding me that 
 that was not a railway, it was nothing but a tramway. That 
 was after I had stated to the House the character of the 
 road we expected to be able to construct, and I was unable 
 to controvert the statement of the hon. gentleman bv. cause 
 it was true. I had stated that, in the position in which we 
 were placed, wo had no alternativo but to go forward and 
 do the best we could, and I showed that the smallest 
 amount for which we could construct the most inferior line 
 of railway that would give as communication from Ciillan- 
 dor to Port Moody, would be $84,0.J0,000. I could not 
 controvert the soundness of the hon. gentleman's calcula- 
 tion that the lowest cost for which a railway worth the 
 name — as he called it — could be constructed 
 was $120,000,000, or, to state more accurately 
 the calculation of my distinguished predece83or,$ {21,*j00,0i:6.
 
 35 
 
 Now, let us see what that is going to cost the people of this 
 country under this arrangemont : 
 
 Statement showing what the main line between Oallaailer and Port 
 Moody would cost the Government in tho event ol tie Canadian 
 Pacific Railway failing to repay the loan : 
 
 3,393 miles of main line branches and steamers cost $54,508,128 
 
 The 457 miles of main line and branches between Montreal, 
 Brockville add Callander, cost |23,550 per mile, 
 amanntingto - - , $10,762,736 
 
 The 395 miles of branches west of Callander at 
 
 the cost shown by the Gomiany's accounts... 3,769,79'} 
 
 The steamers cort .' 552,251 
 
 116,074,780 
 
 Making a total of $;5,07),7S0, which should be deducted 
 from the abi">ve sum, i; 54, 503,128, to arrive at the cost of 
 the main line between Callauder and Port Moody, 
 showing the cost to Government of line between 
 Callander and Port Moody $39,433,348 
 
 Mr. BLAKE. Hear, hear. 
 
 Sir CHARLES TUPPER. The hon. gentleman says 
 "hear, hear ;" bnt I will invite him to place his finger upon 
 the slightest flaw or error in this calculation. I will stake, 
 Sir, my standing in this House on tho accuracy of the 
 ■tatement I have presented; and if the hon. gentleman can 
 show that I have not given a fair, frank and unvarnished 
 statement of the figures and facts as they stand out in tho 
 public records of the country and the documents before the 
 Houee, then I will admit that I have no claim to the 
 confidence of the House in regard to the statement I am 
 making on this question. I have said there is only one 
 point which is a question of estimate at all. There are two 
 points. The one is the estimate that the work with the 
 supplies on hand can be completed for $27,000,000. VVell, 
 all I can say is that the Chief Engineer of the Department 
 has gone carefully into that qucj^tion, and, as the House is 
 aware, has committed himself to the statement that he 
 believes tho figures of the Company may be accepted as 
 accurate. With respect to tho $28,000,000 of expen- 
 ditures on works stilt under construction, I have 
 given the House the figures down to the present 
 moment, and I have no reason to believe they 
 will be, to any considerable extent, increased. But I think 
 the House will agree with me that there is a great differ- 
 ence between these amounts and $120,000,000, the estimate 
 of the hon. gentleman opposite (Mr. Blake). And I may 
 say, in giving the opinions of hon. gentlemen opposite, that 
 the hon. member for South Huron (Sir Eichard Cartwright) 
 gave, on an important occasion, his estimate, saying there 
 was no reason to suppose that the construction of the line, 
 3i
 
 36 
 
 even if Jue ;ime were giveo, could be brought within 
 8100,000,000. I think, Sir, I have shown the House that 
 between the eetimates of the cost of this work on the part 
 of the hou. leader of the Opposition, the leader of the late 
 Governnacnt, and the Finance Minister of the late Govern- 
 ment, and this amount of $39,133,348, there is a jjretty large 
 margin. Under these circumstances, the line from Callander 
 to Port Moody, 2,511 miles, would cost the people of this 
 country about ^15,520 per mile, with ample equipment for 
 service after completion. I need not discuss, I think, at any 
 length, the question of the value of the land. I have placed 
 the value of the lands sold by the Company at $2 per acre 
 against the road, and have credited the Government with 
 the remaining lands at $?> per acre, which hon. gentlemen 
 opposite will not be likely to question. By reference to the 
 speech made by the hon. leader of the Opposition it will be 
 found that he estimated 11, '250,000 acres of choice lands — 
 as will be seen by Hansard, 1880, page 13— as worth $-l:.04 
 per acre, making ^45,450,000; at $3,18, $35,^75,000 and, 
 addressing your humble servant, he said : " At your misera- 
 ble $2, $22,500,000." So that the entire amount we are 
 asked to advance to the Company by the proposed Ecsolu- 
 tions- -for which there is notother ample security — is covered 
 by the land valued at my miserable $2 per acre, 
 as stated by the hon. leader of the Opposition. 
 So, I think, under those ciicumstancis, the hon. 
 gentleman is not likely to question the accuracy of the 
 calculation which I have submitted to the Home in which 
 those lands are placed as worth $2 ])er acre. On 17th 
 December, 1880, the hon. member for South Huron (Sir 
 Kichard Cartwright) gave the House ihe benefit of his cal- 
 culation, and (page 16, Hansard), he said : " And 
 18,750,000 acres of selected land worth to-day, as lands are 
 selling in the North-West, at least $37,500,00i)." And no 
 person knew the value better than the hon. gentleman, 
 because he was giving his attention to that question ; and I 
 am not at all certain, if I had been as free as the hon. gen- 
 tleman to deal with lands in the North-West, I would not 
 have been alongside him endeavouring to get the benefit of 
 his judgment in making my selections. I am quite 
 certain that from whatever quarter objection may 
 come as to making this advance of $22,500,000 
 it will not come from that hon. gentleman who has 
 himself declared, so long ago as 1880, before the contract 
 for the rapid construction of the Canadian Pacific Eailway 
 was put in operation, when that country was comparatively 
 dormant, when there were 100,000 less people 
 located in the North- West than there are to-day, that
 
 37 
 
 18,750,000 acres of eelected lands were worth $37,500,030— 
 that hon. gentleman, I say, will not question the ample cha- 
 racter of the security, when instead of 18,750,000 acres we 
 have 21,'M6,000 acres to cover any advance. There is no 
 doubt that, however valuable the lands were then, they 
 are much more valuable to-day. No person in this country has 
 been more enthusiastic in regard to the value of lands in the 
 North- West than myself. I never was more enthusiastic in 
 regard to their value than I am to day. I say that the value 
 those lands had when the hon.member for South Huron made 
 the speech to which 1 have referred, is much greater to-day, 
 when there are facilities for access, not only by the 
 construction of the trunk line, but by 239 miles of 
 branch linos now in operation in the NorthWest. 
 Mr. Anglin, your predecessor, said, on the 3 1st 
 of December, 1880 : " If the land is worth anything, if 
 the country is worth settling at all, $2 must be a low 
 average indeed." I may add that, so far as the sales of the 
 Canadian Pacific Eailway Company have gone, they fufly 
 justify and corroborate the statements made by hon. gentle- 
 men opposite as to the value of the lands, because, on the 
 3,753,400 of acres already sold, they have received 
 a net price of $236 per acre. Now, Sir, I shall not 
 have much more to say in regard to this question, except as 
 to the value of the earnings of the road. I need not say to 
 any person in the least degree acquainted with railway 
 matters that, after all, the vital point, when you come 
 to the question of value, is, what can the road earn ? 
 As to the ability of the Canadian Pacific Eailway 
 Company to earn money, there was no doubt a large 
 margin for difference of opinion, for speculation, for 
 calculation, as to whether the road would or would not be 
 able to pay its working expenses. I will say nothing of 
 those who were most despondent on that subject, but I will 
 say that those who were most sanguine in this House aiad 
 out of it, in regard to the character and position of the 
 Cauadian Pacific Railway as a commercial enterprise, were 
 not prepared for the evidence which is already furnished, 
 of the fact that all question as to the sound and commercial 
 basis upon which that great national work is placed is 
 completely set at rest. With the evidence already given of 
 the power of the road to earn money, it is settled at once and 
 forever that from this time forward, as the road advances, 
 the receipts will be advanced ; and that when we have this 
 great trans-continental line completed from ocean to ocean 
 we will be in the proud position of finding not only a great 
 volume of traffic and travel drawn over the line, but that the 
 railway will be in a position to make a more saiisfactory
 
 38 
 
 return than was ospeotcd to those who had the enterprise and 
 the courage, when it was a question of doubt, to put their means 
 into this work and grapple with so gigantic an enterprise. 1 
 hold in my hand u si aiemont of the gross earnings for 1883; 
 and I find, ostimating for the month of December, the amount 
 not to be loss than §5,420,931. Itis true this includes an 
 amount for the transportaiion of construction materials and 
 supplies of $1,2*7 ■4,000. But there is no person at all acquain- 
 ted with the development of the North- West who does not 
 know that the development of that country, which is in its 
 infancy at present, must be in the nature of things very 
 rapid — go rapid that in every ensuing year more will be 
 requii'ei in the way of transport to supply the demands 
 of the population by the carriage of freight and 
 passengers than the amount which is charged in this 
 account for the transport of materials. But even deducting 
 that amount and taking the actual tratfic revenue, we have a 
 sum of$4,146,9l3a3 against $2,449,824, in 1882, ao increase 
 of $1, 697,0 9, on the earnings of the road during the past 
 year over the preceding year. Then, as I have already said, 
 the nett earnings of the last nine months, and which I have 
 treated as the receipts of the Company, are no leas than 
 $978,660. The announcement of that fact will show the 
 House that the most sanguine expectations of the people 
 who had most confidence ia the construction of the Canadian 
 Pacific Railway have been much more than verified by the 
 actual facts as they are now before us. I shall only refer 
 again for a single moment to the enterprise of the pro- 
 moters. I refer to the gentlemen who originally formed 
 the syndicate of the Canadian Paciiic Railway; and I say. 
 Sir, that the very difficulties with which they are now 
 struggling, the very position in which they now find them- 
 selves placed, notwithstanding all that energy and 
 enterprise and skill could do, is the best evidence of the 
 courage with which they have grappled with this enter- 
 prise. It has bean asked what money these gentlemen put 
 into the Canadian Pacific Eailway ? Well, Sir, 1 have 
 shown that if you deduct the last dollar received from 
 every source, there is a large balance standing against the 
 Company for money contributed, after all they have received 
 from csLbh subsidj'-, from sales of their land and their town 
 sites, from the net profits of operating the line and from all 
 the stock they could sell even at the low price at which it 
 sold — deiucting it all, you have a balance still standing 
 against these gentlemen. And what is the fact ? Of course 
 there is no syndicate now ; the syndicate ceased to exist, 
 when they organized ihe Canadian Pacific Railway' Company 
 and subsequentiy put the stock of tiio Company on the
 
 31 
 
 ©pon market it then ceased to become their property, and 
 it is now with the shareholders that we have to deal. 
 But I cannot forget that there would have been no Canadian 
 Pacific Eaihvay Company, there would have been no such 
 gigantic progress as there now is if these gentlemen 
 had not had the courage, the energy and the enterprise to 
 risk their own money to the extent of ^10,000,000, before 
 asking the people of this country to put a single dollar into 
 the purchase of Hiock. I say, that Ihey had such confidence in 
 this work that they imperilled their own capital ; and if wo 
 bad not had tlio good fortune to make this contract with 
 men of great wealth, great resource?, great energy and 
 enterprise, and great experience, we would have had a most 
 disastrous collapse in connection with this work, and none of 
 the progress and advancement and development which has 
 taken place in connection with the rapid prosecution of this 
 enterprise would not have existed to-day. I do nol rest 
 these Eesolutions for a single moment on the low ground of 
 any claim that these gentleman have. They have no claim. 
 They made a contract and they received by the terras of that 
 contract a magnificent subvention for the work, great 
 as it was, that they were undertaking to deal with, 
 and they have, no doubt, prospective profits of a large char- 
 ncter before them. I do not ask for a moment that these 
 Resolutions shall receive the consideration of the House on 
 any such claim. I say, that if there was no disposition on 
 the part of this House to meet their wishes and their inter- 
 ests in the slightest degree, these Resolutions must stand on 
 the broader foundation of the interests of Canada itself. 
 But, Sir, unless it can be shown, that apart from any claim, 
 these gentlemen have, that, in the interests of Canada, the 
 means should be provided which are required to prosecute 
 this work with the unabated vigour with which it has been 
 prosecuted, thou the Resolutions cannot commend them- 
 selves to the House. You will allow me to glance at a few 
 figures — distasteful as they are to myself and to the House 
 — which wih show what has been the effect upon Canada of 
 the ])rosecution of the Canadian Pacific Railway. 
 
 It being six o'clock, the Speaker left the Chair. 
 
 After Recess. 
 
 Sir CHARLES TUPPER. Mr. Speaker, when the House 
 rose at six o'clock, I had drawn attention to the important 
 fact that in case, from any cause, the Company should fail to 
 pay every dollar of the 8*22,500,000 to be advanced as the 
 work proceeded, and lor the purpose of carrying it to com- 
 pletion, or the interest thereon, the people of Canada would
 
 40 
 
 obtain the construction of the entire Canadian Pacific Eail- 
 way — from Callander to Port Moody, for which Parh'ament 
 provided a subvention (counting the land at $2 an acre) of 
 $103,000,000— for less than $40,000,000; and I assumed 
 that that being the case, such a contingency was entirely 
 impossible — that under no circumstances could it be 
 supposed that a Company, possessed of a property which 
 1 have shown to be of such immense value, would fail to 
 provide for the payment of a comparatively small sum of 
 money such as) is provided for by these Eesolutions : 
 and, assuming that they did pay the money, that 
 Parliament and the country would obtain the construction 
 of the Canadian Pacific Railway on precisely the terms 
 provided in the contract originally made with the Company. 
 I showed further that such was the result of the operation 
 of the line — yielding, as it has, a net profit of $978,660 
 within the last nine months from the disjointed and 
 disconnected sections of the road, as they now are — 
 that 1 might assume, as I think I had a right to do, 
 that all question as to the commercial value of the 
 enterprise was entirely set at rest, and that we might 
 fairly come to the conclusion that the Canadian Pacific 
 Railway might be regarded henceforth as placed upon a 
 thoroughly sound commercial basis. I showed on a former 
 occasion that the present Government had adopted the 
 policy of their predecessors in regard to what is called the 
 monopoly in the Province of Manitoba; that when the late 
 Government undertook to carry on the construction of the 
 Canadian Pacific Railway as a Government work, they felt 
 bound to protect the traffic oi the road from being drawn off 
 to lines to the south of us in the adjoining Republic, and had 
 consequently refused to issue a proclamation which would 
 charter lines within the Province of Manitoba to connect 
 with American linos to the south. I said that the present 
 Government, when we came into power, adopted that 
 policy; that we felt, as our predecessors did, that, grappling- 
 with so gigantic a work as the construction of the Canadian 
 Pacific Railway, we were bound to adopt every possible 
 means of protecting our own line Against having its traffic 
 drawn to lines to the south — and, mark you, this was at a 
 time when we did not contemplate at an early day carry- 
 ing the Canadian Pacific Railway further than Port Arthur. 
 I said further that when we made it obligatory upon the 
 Canadian Pacific Railway Company to extend at once the 
 line north of Lake Superior, giving us an all-rail route from 
 Montreal to the Pacific Ocean, or from Callander to the 
 Pacific Ocean, we felt obliged to give to that Company, upon 
 which we impoted such onerous obligations, all the security 
 that we had considered necessary, and that our predecessor*
 
 41 
 
 in the Government had considered necessary, for the 
 protection of the Canadian Pacific Kailway. But 
 I am glad to bo able to state to the House that, although, 
 true to that policy, the Government refused to give assent 
 to the construction of lines within the Province of Manitoba 
 to connect with American railways to the south, such is 
 the evidence presented by the operation of the line so far 
 as it has gone, such is the conclusion arrived at by the Cana- 
 dian Pacific Railway Company itself in regard to the ability of 
 a through line of the Canadian Pacific Railway to take care 
 of itself, and by the inherent power of its own advantages 
 to maintain its position notwithstanding any competition to 
 which it may be subjected we are now in a posi- 
 tion to review and to reconsider the policy of the 
 late Government, and the policy of the present 
 Government, as to the continued necessity for any 
 long period of protecting the Canadian Pacific Railway 
 against competition within the Province of Manitoba, and 
 I am glad to be able to state to the House that such 
 ifl the confidence of the Canadian Pacific Railway 
 Company^in the power of the Canadian Pacific Railway to 
 protect itself, that when the line is constructed north 
 of Lake Superior, the Govei'nment feel it will not be in- 
 cumbent upon them to preserve the position they have 
 hitherto felt bound to preserve, that of refusing to consent 
 to the construction of lines within the Province of Manitoba, 
 connecting it with American railways to the south. I can 
 give no better evidence to the House and the country of the 
 advanced position which we consider this great enterprise 
 of the Canadian Pacific Railway has attained, than when I 
 say that 1 feel it is consistent with what we owe to the 
 people of this country and to that great national work, 
 that the Government should notdeem it incumbent on them- 
 selves to pursue the restrictive policy within the Province of 
 Itfanitoba, which we have hitherto been obliged to maintain. 
 When the House ro^e, I was about to draw its attention for 
 few moments to the effect the rapid construction of the 
 Canadian Pacific Railway has had upon Canada, and I feel 
 that it will not be wasting your time if, instead of giving 
 you my own opinions in relation to that question or the 
 general public sentiment with regard to it, I should for a 
 few moments call your attention to figures and facts which 
 place, I think, upon a foundation that nothing can shake, 
 the evidence that the progress of Canada, under the rapid 
 construction of this Canadian Pacific Railway, has surpassed 
 anything that the most sanguine promoter of that great 
 enterprise ever could have anticipated. Let me give you a 
 statement of its effects upon the sale of land in the North-
 
 42 
 
 West. Our predecessors were engaged us actively as tliey 
 felt was in the interests of the public service in the pro- 
 motion of the construction of the Canadian Pacific Eailway. 
 When we succeeded them we felt obliged, in accordance 
 with the opinion we had always professed, to grapple 
 somewhat more vigorout^ly with that work ; but we were 
 not able, down to the time that it was in our power to make 
 this contract wiih the Canadian Pacific Railway, to take 
 such energetic action as I am glad to know has been taken 
 by that Company since it received the approval of Parlia- 
 ment. I hold in my hands a statement showing the 
 amount received on account of Dominion lands, home- 
 steads, pre-emptions, sales, colonization companies, timber, 
 grazing, minerals and miscellaneous receipts in Manitoba 
 and the North-West Territories, and I asked the hon. Min- 
 ister of the Interior to divide this so as to show, as far as 
 posei'le, by contrast, the effect upon this important ques- 
 tion ot the contract made with the Canadian Pacific Railway. 
 From the Ist July, 1870 to the 30th June, 1880, ten years, 
 we received from all those services the sum of $817,426; 
 from the Ist of July, 1880, to the 31st December, 1883, we 
 received $3,572,836, giving the most palpable evidence pos- 
 sible to be given of the effect upon the development of the 
 North-West Territories of the rapid construction of the 
 Canadian Pacific Railway. There is due during the next 
 three years on pre-emptions, since 1880, in addition to the 
 $3,572,836 received since the first of July, 1880, no less 
 than $4,393,070. It would be impossible for me to give to 
 the House more striking, more incontrovertible evidence 
 of the eff'ect upon the development of the North-West 
 Territoi-ies caused by the rapid development and construc- 
 tion of the Canadian Pacific Railway, than that furnished by 
 the statement I have just submitted. Then, if you turn to 
 the Department of Customs, what is the eflect shown there 
 upon the trade of that country by the rapid construction of 
 the Canadian Pacific Railway? In 1880, the Customs 
 receipts in Manitoba were $^79,766, and in the North- West 
 Territories, outside of Manitoba, $21,856; or a total receipt 
 of Customs revenue in the North West, including Manitoba, 
 of $319,622. In 1882, the Customs receipts in Manitoba 
 were $1,054,601, and in the North- West Territories, $51,755, 
 or a total of $l,!0o,356. In 1883, they had risen from 
 $297,000, in 188o, to $1,764,805 in Manitoba, and $68,137 
 in the North- West Territories; or a total of $1,832,942, in 
 1883, as compared with $319,i;22, in 1880. It would be 
 impossible for any evidence to establish more conclusively the 
 enormous and rapid development of any country, consequent 
 upon any action taken by a Govern meut, than these figures
 
 43 
 
 establish. The total amount of dut3'- collected in iTanitohaaud 
 the North-West Territories from January 1st, 1881, to Decem- 
 ber Ist, 1883, was $1,831,167 more than the total sum col- 
 lected from June 30th, i8t0, to December 31st, 1880. So 
 that you have the striking evidence of a single year cover- 
 ing a larger amount of duties than the ton yeirs previous. 
 Now, Sir, I will draw your attention for a moment to the 
 evidence given by atiother Department of the public service 
 — that of Inland Kevenue. It will hardly be necessary for me 
 to allude to the fact that, under an Act which I had the 
 honour of submitting to Parliament when Minister of Cus- 
 toms, in 1873, the Inland Kevenuo Department has not much 
 to do, I am happy to say, in the North- West Territories, 
 because, under that Act, we established what is called a 
 Maine Liquor Law throughout the North-West Territories, 
 which prevents the manufacture or sale of intoxicating 
 liquors in any part of those Territories. The result of that 
 enactment has abundantly justitied it. It was with no small 
 degree of satisfaction that I found, when it was proposed to 
 take a section of the North-West Territory within the bounds 
 of old Manitoba, that the people arose en masse against it, 
 and protested against being carried into the Province of 
 Manitoba on any other terms than that they could maintain 
 the exclusion of intoxicating liquors which thoy then 
 enjoyed in the North-West, and retain that provision when 
 they became part of the Province of Manitoba. But in that 
 Province, as you are aware, the Excise Department has had 
 gomething to do, and the Excise revenue of 1879-80, was 
 $65,841, with $1,567 for stamps in addition to Excise. The 
 Excise revenue rose from 865,000, in 1879-80, and $96,000, in 
 1880-81, to $184,750, in 1882-83, and to $84,257 in the first 
 six months of the fiscal year from July 1st to December 3 Ist 
 1883. From 1873-74 to 1879-80, six years, the Excise col- 
 lected was $215,000, whereas, from 1880-81, to December 
 8 Ist, 1883, two years and a half, it was $530,328. Then, if 
 we come to another indication of the condition of the people, 
 and a very striking indication of the condition of the masses 
 of the people, the balances at the credit of depo.-itors in the 
 Government Saviogs Bank at Winnipeg, we find additional 
 evidence of prosperity. On December 3 Ist, 1880, there 
 were balances of $153,589. On December 31st, 1883, 
 the balance had risen to $615,351, an increase since the 
 contract was ratified with the Canadian Pacific Eailway 
 Company of over $400,000 of balances due to depositors in 
 the Savings iiank. Then, if you take the evidence which 
 the Post Office Department affords, you find the like 
 gratifying indication of the remarkable progress of the 
 •oantry. I hold in my hand a statement showing the
 
 44 
 
 amount of mail matter poated at offices in Manitoba and 
 the North- West during the period of one week in 1881, 
 1882 and 1883, and I am obliged to confine it to one week 
 because I could not obtain the same general statistics in that 
 Department as I was able to obtain in the others. 
 In a single week in 1881, the letters and post cards mailed 
 were 42,894, and the newspapers, books and samples, 6,552. 
 For a week in March, 1882. there were 62,892 letters and 
 post cards mailed, and 12,053 newspapers, books and 
 samples. For the corresponding week in March, 1883, it 
 had risen in a single year from 62,000 to 89,847, with 
 18,193 newpapers, books and samples. The money order 
 business in Manitoba also exhibits a very striking illustra- 
 tion in the same way. The issues of money oiders in 
 1875 were $26,452.85; in 1876, $29,139.73 ; in 1877, still 
 less, $28,360.25. In 1878, when of course the change of 
 Administration gave new life and impetus to the people, 
 they rose to $4^^,751, in 1879 to $69,986, in 18S0 to $172,396, 
 and in six months to the 3l8t December, 18'-'0, to $107,101, 
 making a total from the 30th June, 1875, to the 3l8t 
 December, 18^0, of 8480,000 issues of money orders in 
 Manitoba. The amount of money order business 
 done in Manitoba and the North-Wost Terri- 
 tories from the Ist of January, 1851, to the 3l8t 
 December, 1883, was as follows: For the six months ended 
 June 30th, 1881, $114,270; for the year ended June 30th, 
 1882,$398,241 ; for the year ended June 30th, 188S,$^77,722 ; 
 and for the six months ended December 3l8t, 188?, $347,854. 
 From the 30th Jane, 1875, to the Slst December, 1880, the 
 total issues were $480,000, while in the six months ended 
 the 31st December, 1883, they amounted to $347,000, or 
 nearly as much as in the whole of those previous years, and 
 the total from the 1st January, 1881, to the 3l8t December, 
 1883, was $1,538,088. Now the most striking illustration 
 perhaps of all, the most striking evidence of all of the rapid 
 development of the North-West, that in which we are all 
 the most interested, is the number of immigrants that we 
 are enabled to attract into the country. Wo all knovv that 
 we have in Manitoba and the great North- West Territories 
 an unbounded field for development. We all know that in that 
 country we have the great remaining wheat region notonly 
 of British North America but of the continent itself. 
 We all know that Mr, Consul Taylor, the American Consul 
 for the last twenty years at Winnipeg, and a high au- 
 thority, has publicly declared that three-fourths of the 
 wheat area of North America lies to the north of the 
 boundary line. We all know, in the first place, that the 
 Boil of that country exceeds in fertility the soil of any pai*t,
 
 45 
 
 I may say, of the known world —certainly there is in the 
 wheat bearing States to the south of us no parallel to be 
 found to the fertility of the soil in the Canadian North- 
 West. We know now, Sir, that we have 250,000,000 acres 
 of magnificent farming lands that for fertility cannot be 
 surpassed on any portion of the civilized globe. But, Sir, 
 notwithstanding that we have that unbourded field for 
 development, we were able to accon:iplish but little, and we 
 never would have accoui})lished much, towards its develop- 
 ment, but for the construction of the Canadian Pacific 
 Eailway. Now, Sir, the best evidence we have that 
 at this moment the eyes of the world, the eyes of 
 those who, in the older and more thickly populated 
 countries of Europe, are looking for a newer and better 
 field for their labour and their exertions, is what is taking 
 place now across the water. We know that their 
 eyes are concentrated upon the North- West of Canada as 
 they never would have been, and never could have been 
 concentrated, but for the construction of a Canadian Pacific 
 Railway. And, Sir, we know, not only that we have a field of 
 boundless extent for development, but that in addilion to 
 the fertility of the soil, the character of the wheat that is 
 grown in that northern clime surpasses in excellence the 
 character of the wheat that can be grown in any southern 
 or more gonial clime. So, Sir, from every point of view 
 from which we may bo pleased to look, we see boundless 
 postibilitios in that country. We all regard every means 
 for the development of that coantry as the means, and the 
 only means, by which Canada can rapidly become a great and 
 prosperous country, and attain such a position as every true 
 Canadian must desire to see her attain, and that at a very 
 early date. It would be impossible to over-estimate the 
 effects that this rapid constiuction of the Canadian 
 Pacific Railway and the measures taken by that Com- 
 pany to diliuse throughout the world information in regard 
 to that country, have had in drawing immigration into it. 
 Now, Sir, let me give you the figures touching immi- 
 gration, and what do they show ? Why, Sir*, they show 
 that the total number of pei'sons who en'.ered the North- 
 West during the ten jears previous to letting the contract 
 to the Canadian Pacific Railway Company, that is, from 
 1871 to 1880 inclusive, was 64,755. The total number who 
 entered the North- West since the contract with the Canadian 
 Pacific Railway Company was signed, that is, during 1881, 
 1882 and 1883, is no less than 149,500 immigrants. The total 
 value of the money and effects brought to the Dominion — 
 and that is an entirely secondary consideration to that 
 which is more valuable than money -that industry and
 
 46 
 
 labour which irf uccemnvy to create great national wealth~I 
 say, even in that regard there is great progre.-s, for the total 
 amount brought in '03^ settlers in 18t5 to 1880 inclusive, as 
 nearly as it can be ascertained in six years, was some 
 $6,00u,0(i0 ; while during the past three years the sum taken 
 into the l!^orth-West, at the lowest ra'e, can be placed at 
 over $15,1)00,000. I leave these figures to the House as 
 evidence of the efiect produced in the development of the 
 North- West Territories by the rapid construction of the 
 Canadian Pacific Kailway. Now, Sir, a very important 
 point in connection with immigration is the cost of carry- 
 ing immigrants into the North- West. The first question 
 asked by an immigrant in any part of the Continent of 
 Eui'ope or in Great Britain, when he proposes to come to 
 this country is, what is the cost of being able to get 
 there ? And the question of a few dollars in the difference of 
 cost very frequently, as any gentleman who has any know- 
 ledge of the subject knows, diverts the immigrant from one 
 line to another. Now, Sir, the published charge on the all- 
 rail route from Quebec to Winnipeg, at the present moment 
 is ^31.50 ; the charge via the lakes and Duluth on the 
 route from Quebec to Winnipeg is $25.50. The figures 
 I have given are those that prevailed for some years, 
 but an arrangement that has been in operation for 
 the last two years, has reduced the charge from Quebe© 
 to Winnipeg to $21.64, and via the lakes and Duluth 
 to S16.64. 1 believe. Sir, these rates have never been pub- 
 lished. But, in consequence of the rapid progress made by 
 the Canadian Pacific Railway Company, it is now in our 
 power to say to the immigrants on the Continent of 
 Europe, and in the British Isles, that the rate from Que- 
 bec to Winnipeg, via Port Arthur, will be reduced this 
 spring from !&31.50 to $12, and from Montreal to Winnipeg, 
 via Port Arthur, to $10. I need not say to the House what 
 an enormous impetus this change in the cost of carrying 
 immigrants into that country will naturally produce upon 
 the volume of immigration that will bo thrown into it. 
 I desire, Sir, to say a single word hero in regard 
 to a point that has attracted some attention in a portion of 
 the press of this country, and that is : that an arrange- 
 ment has been made at a comparatively low rate for immi- 
 grants coming via New York, over the Erie Eailway, and 
 making connection at Brockville, thus reaching Winnipeg 
 via the port of New York, at an uuprocedentedly low rate. 
 I may say. Sir, that the Canadian Pacific Railway Com- 
 pany had nothing whatever to do with that arrangement. 
 My hon. friend, the Minister of Agriculture, is responsible 
 for that arrangement ; and I will make a statement to the
 
 47 
 
 House that will satisfy every man in Canada that ho would 
 altogether have failed in his duty to the country if he had 
 not adopted that coarse. Every person will acknowledge 
 the immense importance c-f reducing the rate for immigrants 
 from Quebec to Winnipeg from SLJl.50, the published rate, 
 down to $12. Every person will see at a glance the enormous 
 tide of immigration that will be brought into that country 
 by that change. But, Sir, there was this difficulty, that if 
 you made that low rate by the steamers to the port of 
 Quebec, and did not provide for a correspondingly low rate 
 to the port of New York, the effect would have been this : 
 At this moment, as you are aware, on the Continent of 
 Europe, all the emigration service is performed by agents 
 of steamships lines, and the moment that the rate was 
 cutd own to that low figure by the lines of steamers to 
 Quebec, and there was not a corresponding reduction by 
 New York, you would enlist the services of every emi- 
 gration agent on the Continent of Europe and throughout 
 Great Britain also, who was in the interest of the lines 
 of steamers running to New York—not against the Cana- 
 dian lines of steamers — for they dare not do that, but to 
 denounce and decry Canada, as the only means by which they 
 could serve the interest of the steamers sailing to New 
 York. It thus became absolutely essential in the interests of 
 Canada that we should have not only this low rate of 
 passage and this communication from Quebec, but that in 
 order to retain our hold, and to strengthen our hold, which 
 we are most anxious to do, upon the immigration from the 
 Continent of Europe, we should prevent that which wai 
 otherwise inevitable, and that was that every agent for 
 every line of steamships sailing to New York from Great 
 Britain or the Continent, would from Monday morning 
 to Saturday night, year in and year out have been de- 
 nouncing Canada for the purpose of holding immigration to 
 the port of New York. Under these circumstances, 1 am sure. 
 Sir, there are no men in this country who would not feel that 
 our policy was in the interests of Canada and in the 
 interests of Quebec, for the moment you set every immigrant 
 agent on the Continent of Europe agairst this country 
 and thus prevent people coming by the Canadian lines 
 of steamships, you take most effective means to prevent the 
 great tide and volume of immigration which, under 
 existing circumstances, will naturally flow to Canada 
 through the port of Quebec. Of course, wo all know the 
 importance of saving the distance as well as lowering the 
 rate. Men "who were obliged to go by Chicago to Winnipeg 
 had not only to pay $-51.50 instead of going through Can- 
 ada for $12, but they were obliged to run the gauntlet of a
 
 48 
 
 long journey through the United Slates, during which every 
 possible inducement would be used by agents of land and rail- 
 way companies to prevent them ever reaching the CanadiaH 
 !North-We8t, That is one of the great objects attained by 
 the rapid construction of the Canadian Pacific Eailway. 
 That is one of the great objects attained by the Canadian 
 Pacific Railway Company in obtaining a line from Montreal 
 through to Winnipeg, and in that way we have 
 not only avoided exposing immigrants, who would 
 otherwise be liable to be taken off our lines to 
 other sections, by carrying them by a route entirely 
 through Canadian territory, as they will be carried next 
 spring ; but they will avoid a circuitous journey of 500 
 miles longer and be taken by a direct line from Quebec to 
 Winnipeg, through our own territory instead of round by 
 Chicago. I want to place a very condensed calculation 
 before the House iu respect of the capabilities of the North- 
 West. I am not going to deal with the question of a little 
 difficulty that has occurred in consequence of the frost 
 during the past season. It has been greatly magnified, 
 greatly to the disparagement of the North-West and 
 Canada. But they had frost in Ontario, Dakota and 
 Minnesota, and even in New York State, and those who 
 were not fortunate enough to get their crops in early have 
 suffered to a greater or less extent. It only requires a 
 little more prompt and energetic action on the part 
 of the farming population in getting their crops 
 iu early in spring to avoid any contingency ot that 
 kind iu the future, and of course it was an entirely 
 exceptional year. But I may say that I believe there are 
 few members of this House, much as our attention has been 
 turned to the development of the ZSorthWest, who have 
 begun to contemplate in all its fuluoes what the capabilities 
 of that great country are. I have spoken of its enormous 
 extent, of the unexampled fertility oi the soil, of the splendid 
 description of wheat that can only be produced ia tliese 
 more northern and colder climes. But let me just ask the 
 attention of the House for a single moment to a few figures 
 whicli will indicate what the capabilities of thai country are 
 iu regard to the production of wheat. One hundred thous- 
 and farmers, each farmer cultivating 320 acres of wheat 
 land — has any bon. member made \he calculation of what 
 they would produce ? 
 
 Sir EICHARD CARTWPJGHT. Yes. 
 
 Sir CHAELES TUPPER. I am glad the hon. gentleman 
 has done so. I am glad his attention has been drawn to the 
 fact that 100,000 farmers cultivating 320 acres each, or
 
 49 
 
 200,000 farmers cultivating half that quantity each, and 
 taking the product at only 20 bushels to the acre, instead 
 of 27 or 30, which is the average in the North- West in 
 favourable years, would give 640,000,000 bushels of wheat, 
 or 50 per cent, more wheat than the whole United States 
 produces to-day. You have only to look at those figures 
 for a single moment to see what the future of Canada may be 
 to see what a magnificent granary for the world is placed in 
 our ( 'anadian North- West ; and when you remember we 
 have six belts running through that fertile country that 
 would each give 320 acres each to 100,000 farmers, you can 
 understand to some little degree what a magnificent future 
 awaits us in the development of that great country. And, 
 Sir, 1 eay that I believe Canada has just reason to be proud 
 of the fact, and all history will give credit to the people of 
 this Dominion, because they had the courage, the daring I 
 may say, to grapple with the construction of a Canadian 
 Pacific Eailway. Sir, when the United States had a popula- 
 tion of over 38,000,000, the world was astounded at the fact 
 that they undertook to secure the construction of a trans-con- 
 tinental railway. It attracted the attention of the civilized 
 world, and day by day it was heralded in the press as an as- 
 tounding fact, that the United States had undertaken to con- 
 struct the Union tind Ceuiral Pacific Eaiiway. Why, the 
 Union andCenti-al Pacific all told wore nothing like as long as 
 the Canadian Pacific Eailway. The Union and Central Pacific 
 only covered some 1,900 miles of road, while the Canadian 
 Pacidc Railway proper covers 2,541 miles ; and yet four and 
 a half millions of Canadians, which we were then, had the 
 courage to undertake a greater work than that which was 
 undertaken by 38,000,000 of people in the United States, and 
 which attracted the admiration of the world. I say, and I 
 say it fearlessly, that history does not furnish to-day an ox- 
 ample of a more courageous, a more daring and more 
 remarkable enterprise than that which was undei'taken 
 by the Government of (?ana la, when they said : We have 
 a magnificent North- West to develop. We have a great 
 country, half of the continent of North America, placed 
 under our control and management, and for which we are 
 responsible ; and with these responsibilities we will do and 
 dare what only men who feel that they can rely confidently 
 upon the resources of a great country, half a continent, ought 
 to dare and undertake ; and if the present generation do not 
 give us credit for it, in all time to come it will be regarded 
 as one of the greatest accomplishments of the century in 
 which we live, that we had the vigour and daring to grapple 
 with that great enterprise. Providence has favoured us. 
 God and nature have marked out on the face of the Can- 
 4
 
 50 
 
 adian Pominioi] the shortest aod lest route for a trans-con- 
 tinental line of railway. Providence has marked cut and 
 placed within our borders and within our reach a line of fom- 
 mumcation fx'om ocean to ocean, the shorteBt that can be ion nd, 
 & shorter connection between the east and the oLl world than 
 any other. Providence has placed within oiir borders a line of 
 railway, a larger portion oi which runs through a more fertile 
 country than is to bo for.nd on the contioont of Aineriea. 
 Providence hati placed in our hands and under our nmnage- 
 m.ent a line of railway in which the puss through the Rocky 
 Mounlaina is lower, the Roc]<3' Moiiutain section in shorter, 
 and the isnow-iiaU i,^ lighter than on either the ilorihern 
 or Union and Central Pacific. This road, when completed, 
 makes it shorter for a man living in Chicago — to say 
 nothing of our own people—who wishes to roach the 
 Pacific Ocean, to take the Canadian Pacific Railway by the 
 nearest approach he can obtain and pass to Port Moody, 
 thereby obtainiiig a shorter line of travel than ho could 
 take to San Francif^co within his own country. 
 Under these circumstances the Government of Ctinada have 
 discharged what they believed to be their duty to their 
 country in grappling as ihay have gi-appled with this great 
 question. I say, Sir, with the evidence that we have before 
 usof the unexampled and unprecedented development which 
 has followed our eflbrts in this regard, we would be faithless 
 to our obligations and to our country if we neglected to 
 adopt the means which are now propounded l^jr the 
 consideration of Parliament, of accomplishing the rapid and 
 early completion of that great national enterprise. I know 
 too well how thoroughly this question of the Canadian 
 Pacific Railway has stmk into the hearts and rr.inds of the 
 people of Canada, to have the slightest doubt or hesitation 
 in assuming that this Parliament will, on the pre>rent oc- 
 casion, as it has on previous occasions, give a hearty and 
 generous responeo to the proposal of the Government, 
 We would be unworthy the position we occupy — the 
 advanced |X)Hition we occupy on (his Contiueirt in regard to 
 this great national measure — if having put our hands to the 
 plough we were to turn back, or for a single moment shrink 
 from the plain and obvious duty which devolves upon us of 
 carrying this great national work to completioj) at the 
 earliest poesible moment in our power. We have obtained 
 a position in the estimation of the mother country and of the 
 world, we have obtained a status by the rapid construction 
 of this gigantic enterprise that Canada could not have 
 obtained in twenty years by any other means. With that 
 fact, patent and lying on the surface, in regard to this great 
 question, the people of Canada will demand at our hands that
 
 51 
 
 when the opportunity presents itself of obtaining without 
 the cost to the country of a single dollar of additional sub- 
 Tention, the completion in two years of a work wbicb other- 
 wise would take until 1891— Ihey will demand that 
 without hesitation we should, in the interests of Canada 
 adopt the course which is indicated in these Eesolu- 
 tione. As I said before, I ask this not in the interests of 
 any body of gentlemen — not in the interests of the Canadian 
 Pacific Eailway Company — I ask it, Sir, from this House, 
 AB the people of this country will demand it from us 
 in the interest of the country to which we belong, 
 in the interest of Canada of which we are so justly proud.-
 
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