* A Project Gutenberg Canada Ebook *

This ebook is made available at no cost and with very few restrictions. These restrictions apply only if (1) you make a change in the ebook (other than alteration for different display devices), or (2) you are making commercial use of the ebook. If either of these conditions applies, please check gutenberg.ca/links/licence.html before proceeding.

This work is in the Canadian public domain, but may be under copyright in some countries. If you live outside Canada, check your country's copyright laws. If the book is under copyright in your country, do not download or redistribute this file.

Title: A History of the Canadian Pacific Railway
Author: Innis, Harold Adams (1894-1952)
Date of first publication: 1923
Edition used as base for this ebook: London: P. S. King & Son; Toronto: McClelland and Stewart, 1923
Date first posted: 7 June 2011
Date last updated: 7 June 2011
Project Gutenberg Canada ebook #800

This ebook was produced by: Iona Vaughan, Ross Cooling, Mark Akrigg & the Online Distributed Proofreading Canada Team at http://www.pgdpcanada.net

This file was produced from images generously made available by the Internet Archive/University of Toronto - Robarts Library






A HISTORY

OF THE

CANADIAN PACIFIC
RAILWAY





A HISTORY OF THE
CANADIAN PACIFIC
RAILWAY



BY

HAROLD A. INNIS, Ph.D.

Lecturer in the Department of Political
Economy in the University of Toronto.





LONDON: P. S. KING & SON, LTD.
ORCHARD HOUSE, WESTMINSTER.
TORONTO: McCLELLAND AND STEWART, LTD.
1923





To
MY PARENTS





Printed in Great Britain by Butler & Tanner, Frome and London





[v]

PREFACE

In this study an attempt has been made to trace the history of the Canadian Pacific Railway from an evolutionary and scientific point of view. Obviously, no conclusions can be reached in the matter of recommendations since no attempt is made to state a definite objective. Objectives are being formulated, and the interest has been in the process of their formulation. No claim is made as to the merits or demerits of this method of approach. Protest may be anticipated, especially in view of the character of existing treatises on the subject and on related topics. Much has been written in description and in appraisal of the personalities concerned, and the subject lends itself in a very striking way to this method of treatment. These studies have been useful for the preparation of this history in their material rather than in their conclusions.

At this point, grateful thanks are expressed to Prof. C. W. Wright, of the University of Chicago, to members of the Department of Political Science of the University of Toronto, to my sister, Mrs. M. Malcolm, and to numerous others for assistance in many directions. Above all, acknowledgment is made of the aid and encouragement of my wife in all the stages of preparation.





[vii]

TABLE OF CONTENTS

PAGE
I   Introduction 1
  A. The Pacific Coast 3
  B. The Hudson Bay Drainage Basin 21
  C. On the St. Lawrence 52
II   From National to Economic Union (1870-1880) 75
III   Fulfilment of the Contract 97
IV   Expansion of the Road and the Development of Freight Traffic 129
  A. Freight Traffic and equipment prior to the completion of the main line 130
  B. Expansion of the Road from the completion of the main line to 1900 134
  C. Freight Traffic and equipment 1885-1900 143
  D. Expansion of the road 1900- 151
  E. Freight traffic and equipment 1900- 158
  F. Conclusion 170
V   The Freight Rate Situation 172
VI   Passenger Traffic 197
  A. Passengers carried 197
  B. Train Mileage 199
  C. Passenger equipment and services 201
  D. Passenger rate policy 205
VII   Earnings from Operations 210
  A. Freight Earnings 210
  B. Passenger Earnings 216
  C. Miscellaneous Earnings 222
  D. Mail Earnings 224
VIII   Expenses 226
  A. Indices of Efficiency 226
  B. Total expenses 231
IX   Total Receipts 244
  A. Net Earnings 244
  B. Other Income 248
  C. Proceeds from Land Sales 250
  D. Total receipts 266
X   Capital 270
XI   Conclusion 287
  Appendix 295
  Bibliography 325
  Index 339




[1]

A HISTORY OF
THE CANADIAN PACIFIC RAILWAY


I

Introduction

Though almost two centuries and a half elapsed between the date of the earliest attempt to discover the North-West Passage and the completion of the Canadian Pacific Railway in 1885, both occasions were landmarks in the spread of Western civilization over the northern half of North America. This spread of civilization was dependent on the geographic characteristics of the area and on the character and institutions of the people involved. The rapidity and direction of the growth of civilization were largely dominated by the physical characteristics, the geological formations, the climate, the topographical features, and the consequent flora and fauna which these conditions produced. Topographical features which determined to a large extent the character of the drainage basins,[1] and consequently of the rivers, were of primary importance. The largest[2] basin is drained by rivers flowing into Hudson Bay—the[2] Nelson River, the Churchill River and the Saskatchewan rivers extending westward from 1,000 to 1,500 miles and draining practically the whole of the central plains of Canada. The next largest basin is drained by rivers flowing into the Arctic Ocean—the MacKenzie River extending over 2,000 miles. The St. Lawrence River and the Great Lakes drain the southern portion of Canada as far west as the head of Lake Superior. Territory west of the Rocky Mountains is drained by several short rivers flowing into the Pacific Ocean. Access to the interior by exploration and later by settlements was gained, therefore, from three directions—from the south by the St. Lawrence, from the north by Hudson Bay, and from the west by rivers of the Pacific drainage basin. The heights of land as boundaries to drainage basins were to some extent boundaries to exploration and to a large extent boundaries to settlement. Early civilization was confined by these limits to three distinct areas. The Canadian Pacific Railroad was tangible evidence of the growth of civilization beyond these boundaries.

Within each area geographic characteristics important with respect to the spread of civilization differed widely. In the St. Lawrence drainage basin, with the exception of territory along the north shore of the river and of Lake Ontario and Lake Erie, the geological[3] formation is chiefly Laurentian, consisting of granite and granite gneiss. Proceeding south-west along the St. Lawrence, the normal annual temperature[4] as shown during the years 1888-1907, gradually rises, and going north to Lake Superior rapidly declines. In the same direction the number of hours of sunshine increases. The rainfall generally decreases, though with variation, south-west along the St. Lawrence, the[3] snowfall persistently declines and total precipitation generally declines. North of Lake Superior snowfall, rainfall and consequently total precipitation decline rapidly. The northern drainage basin with the exception of territory in the more immediate vicinity of Hudson Bay which is largely dominated by Laurentian formation, consists of a vast tract of fertile territory gradually rising as it approaches the Rocky Mountains. The normal annual temperature[5] is slightly lower than that of Lake Superior, but remains fairly consistent throughout the plain, rising toward the mountains. The number of hours of sunshine declines slightly toward the centre of the plain. Rainfall, snowfall and total precipitation decline rapidly in the central plain and rise in the west. On the Pacific coast, the cordillera ranges are dominant. The normal annual temperature[6] is higher than in any other part of Canada, and the rainfall and total precipitation are greater. Snowfall is consequently less and the hours of sunshine fewer than in the central plain. It was with these regions that early explorers searching for a new route to the Orient came in contact. Settlements came in the wake of exploration and, taking root, grew up and flourished to no small extent under the influence of the particular characteristics of the areas involved.



A. The Pacific Coast

Encouraged by the offer of a government reward[7] to the finder of a north-west passage from the west, Captain[4] James Cook[8] discovered Vancouver Island in 1778. The account of the voyages, published in 1784, was of significance in the emphasis placed on the fur trade[9] as well as on the geographic discoveries.[10] Following the publication of the account came a scramble of interests to share in the profits.[11] Englishmen[12] from China and India, and later from England, were followed by representatives[13] of other nations. The resulting competition led inevitably to disputes between individuals of the same nationality[14] but, also, of more importance, between individuals of different nationalities. Out of this situation came appeals to the home Governments and such difficulties as those illustrated in the Nootka Sound Controversy[15] between Spain and England.

The direction of the attention of various nations towards new territory was not the only result of such competition. Of more immediate importance was the beginning of settlement which accompanied the establishment of posts[5] by the traders[16] and which became essential in connexion with the long ocean voyages. The history of the early settlement was closely bound up with the fur trade. Nootka Sound, because it offered "greater facilities for obtaining water and provisions as well as for repairs than any other harbour in that part of the ocean,"[17] was the earliest centre of importance. But the dependence of Nootka on the fur trade was a source of weakness as well as a source of strength. Under the pressure of competition new areas more strategic for the conduct of the fur trade were found and Nootka disappeared.

Following the achievement of Alexander MacKenzie in crossing the Rockies and reaching the Pacific[18] in 1793, increased competition came from the east. The appreciation of the United States authorities of the value of this area was evinced in the Lewis and Clark expedition[19] of 1804. Determination of the North-West Company[20] to secure a larger share of the fur trade of the district occasioned the dispatch of Simon Fraser in 1806. The territory acquired by this invasion of interests coming overland[6] from the east was consolidated by the establishment of posts and the beginnings of settlement at the heads of lakes and the forks of streams[21] where furs could be collected most advantageously and where supplies of such food as fish[22] and agricultural produce[23] could be obtained most easily. Such vigorous prosecution of the fur trade necessitated an outlet on the Pacific coast. This explained the race[24] between the North-West Company and the Pacific Fur Company,[25] representing the Astor interest, for the occupation of the mouth of Columbia River. It also explained the difficulties incidental to the war of 1812, in which the former company wrested Astoria[26] from the Americans.

Nor did the effects on settlement of the competition of the fur trade cease after the victory of the North-West Company in 1813, or after the amalgamation of that company with the Hudson Bay Company in 1821. Imperialism became aggressive. Upon the insistence of the United States, Astoria (renamed Fort George by the English) was restored[27] in 1818, and an indefinite compromise[28] was reached regarding the occupancy of territory on the Pacific coast. In the race for territory, Russia made declarations[29] favourable to the Russian American[7] Fur Company which led to complications[30] with Great Britain and the United States, and the conventions of 1824 and 1825. Restoration of Astoria to the United States and the growing demand of the fur trade for supplies in the nature of agricultural products[31] made it necessary for the Hudson Bay Company to select a new site for its post. Accordingly it built Fort Vancouver[32] in 1825, and in the same year laid down a definite agricultural policy.[33] In 1828, French-Canadian servants of the company were encouraged to settle in Oregon,[34] and in 1836, products[35] of the soil were of considerable importance. Additional stimulus was given to these efforts in the agreement of 1839, concluding a dispute[36] with the Russian American Fur Company, in which the Hudson Bay Company[37] was obliged to furnish 2,000 ferragoes (120 lb. each) of wheat annually for ten years at 10s. 9d. per ferrago, as well as quantities of other products.

The development of agriculture prepared the way for immigration and in turn was encouraged by immigration.[38] The truce of joint occupancy involved in the indefinite[8] compromise reached between Great Britain and the United States was an incentive to American immigration. An increase in American population strengthened the position of the United States in the final division of the area and at the same time hastened the date of division. Growth of the fur trade meant increased attention to agriculture for supply purposes, and routes of the fur traders were blazed trails for the earliest settlers. With the opening of routes by fur companies immigration was inevitable. Following the prosecution of trade by the early American companies,[39] missionaries first came with the expedition of Nathaniel Wyeth,[40] in 1834. Dissatisfied[41] with their progress, Jason Lee, a prominent missionary, took advantage of the increasing attention of Congress[42] to this area, by a campaign throughout the eastern states in 1838, urging the necessity of settling Oregon.[43] The activity of the United States Government[44] and the wave of emigration[45] which began in 1842 bore tribute to his success. With settlement, issues[46] arose as to land and law, a provisional government[47] was set up, the truce of joint occupancy disappeared, and in the dispute of 1846 American supremacy was assured.[48]

The treaty of 1846, which gave to United States territory south of the 49th parallel, was only a landmark in the inevitable progress of settlement, and decline of the fur trade. The forces responsible for growth of settlement in Oregon continued, indeed became more powerful in the growth of settlement in British Columbia. Expansion of the fur trade and establishment of posts west of the[9] Rocky Mountains, which made necessary an outlet on the Pacific at the mouth of the Columbia River, and which made inevitable the growth of settlement in that region, were also responsible for the efforts made to discover the shortest routes to the interior from that outlet. The impossibility of navigating the Lower Fraser and the difficulty of transporting supplies overland from the east led to the establishment[49] of Fort Alexander in 1821 as a supply depot for posts tributary to Fraser River, and to the growth of Kamloops[50] at the junction of the North and South Thompson Rivers, as a stopping-place for supplies coming overland from Okanagan on the Columbia River. And with the new route came establishment[51] of new posts.

New posts, whether devoted to fur trading[52] and yet engaged in production of supplies, or devoted wholly to production of supplies to meet the demands of expanding trade, were, as ever, promoters of settlement. The increased attention to agriculture, and the growth of shipping resulting from the expansion of the fur trade along the northern coast led to a search[53] for a new centre farther north from Fort Vancouver. The site chosen[54] was Camosun Harbour on Vancouver Island, and in 1843 Fort Victoria was established.[55][10]

Growth of settlement in British Columbia as in Oregon involved the attention of the home authorities. The attention of Great Britain, which had been occupied with the long series of disputes and treaties with other nations, characteristic of the period preceding the Oregon treaty, was attracted to the territory by the unfortunate results of bitter competition between the North-West Company and the Hudson Bay Company leading to the amalgamation of 1821. The limitation to twenty-one years and other restrictions,[56] made in the grant of 1821, which gave to the amalgamated company the right to exclusive trade with the Indians in parts other than those already taken, were evidences of awakened interest, and precedents for further regulation. As a result of the growth of settlement in Oregon, and of increased attention to the region occasioned by numerous disputes, the appeal of the company for a renewal of the grant in 1837[57] found the Government more alert to the situation.[58] Renewal[59] was made with the condition of a nominal rental, of the right to annex any part of the territory, and of the right to revoke the charter before the limit of twenty-one years had been reached. Finally, the Oregon controversy which became particularly prominent after 1842[60] was responsible for even greater vigilance,[61] and its settlement in 1846 thoroughly aroused the British Government to the necessity of more energetic interference. The growth of settlement, with the consequent disappearance of the fur trade, was the force underlying the growing interest of the British authorities.[11]

The Oregon treaty served to consolidate the victory of settlement over the fur trade, and in narrowing the arena of the struggle prepared the way for further conquest. The Hudson Bay Company was obliged to limit activities to British territory, and Fort Victoria, the new head-quarters, received additional stimulus.[62] Columbia River, no longer a highway through British territory over which supplies and furs were carried from interior posts, was gradually abandoned, and surveys and new roads[63] were made to the interior by way of the lower Fraser River. These changes also made necessary increased shipping facilities which gave greater incentive to the search for coal and stimulated the mining industry.[64]

Growth of settlement caused by expansion of the fur trade, and stimulated by the Oregon treaty, was further increased[65] as a result of gold discoveries in California in 1849, and as a result of the awakened interest of the home authorities. Anxiety of the British Government to promote settlement had increased, and was manifest in the regulations[66] carefully included in the grant of Vancouver Island to the company made on January 13, 1849, and in the[12] provisions[67] for the administration of justice on the island made in the same year. But the growth of settlement increased the opposition of the fur trade. Immediately[68] the Oregon treaty had been signed, the company entered into diplomatic[69] negotiations leading to the grant of Vancouver Island. It became apparent,[70] after the grant[13] had been made, that the terms were much better adapted to further the company's policy of hostility to settlement than to meet the demands of the British Government for colonization.

Expansion and consolidation of the fur trade in the interior, which stimulated the growth of Fort Vancouver, and the desirability of gaining access to territory along the northern coast, not tributary to the Columbia River, had still other results. There came the demand for ships to carry supplies and furs from Fort Vancouver to England, and from new posts to be established along the coast to Fort Vancouver. With it came the growth of the Hudson's Bay Company's fleet,[71] and the expansion of the fur trade[72] along the coast.

The penetration and development of the fur trade in the territory north of the Columbia River had been delayed by the geographic features of the country, but such delay made no less inevitable the growth of settlement accompanying the fur trade, which so largely characterized the history of the settlement of Oregon. The resistance of the company was doomed to failure. Though settlement was delayed,[73] the delay made the protests of settlers more effective and the further investigation and activity of the home authorities more imperative. James Douglas, the successor of Blanshard as Governor of Vancouver Island, was instructed[74][14] in a dispatch of February 28, 1856, from the Secretary of State "to call together an Assembly," and on February 5 of the following year a select committee[75] was appointed "to consider the state of those British possessions in North America which are under the administration of the Hudson's Bay Company, or over which they possess a licence to trade." Progress of the fur trade in the development of transportation routes to the interior was a stimulus to further settlement. With the opening of routes into the interior came news of gold discoveries in the Upper Columbia region in 1856,[76] the rush of immigrants in the following years,[77] the necessity of government, and the adoption of the select committee's report,[78] as shown in the Act[79] to provide for the government of British Columbia in 1858. As in Oregon, so it was in Vancouver Island and in British Columbia—the fur trade had paved the way for settlement, and for its own disappearance.

The direction and progress of settlement were greatly influenced by the gold rush to the tableland between the Upper Columbia and the Thompson and Fraser Rivers, known as the Coteau region.[80] The Fraser River route from the coast to this territory being shorter[81] than the Columbia River route was generally followed, and demand[82][15] for improvements on the route was consequently great. Failing to enlist the support of the home Government,[83] the colony, to avoid difficulties of the upper Fraser, first, determined upon and completed[84] a route by way of Harrison Lake, Lake Lillooet, Lake Anderson and Lake Seton to a point on the Upper Fraser near the Great Falls, and later constructed a road along the river.[85] The mining industry stimulated, and was stimulated by, construction and improvement of roads. The accessibility of the upper Fraser and the disappearance of claims in the older regions led to a northerly search, and to the discoveries along the Quesnel River in 1859,[86] and in the Cariboo territory[87] in 1860 and 1861. There followed the construction of a main road from Lillooet to Clinton in 1861, to Alexandria in 1863, and from Yale to Clinton in the same year,[88] as well as the opening of trails to neighbouring districts.[89] So, too, the road east from Hope to Similkameen constructed in 1860,[90] the improvement of routes to the Upper Columbia region,[91] and the disappearance of claims, led to the search along the Kootenay River and the discovery on Wild Horse Creek in 1863[92] and further north at Big Bend[93] in[16] 1865. These discoveries were followed by extension of the Dewdney trail[94] from Princeton along the Similkameen River and near the boundary line to Wild Horse Creek, and by the construction of a route[95] overland from Cache Creek on the Cariboo trail, by boat to Seymour at the head of Shuswap Lake, and again overland to the Columbia River.

Development of transportation facilities incidental to expansion of the fur trade hastened, and was rapidly hastened by, the gold rush. The interaction was evident in every phase of economic development. The gold discoveries and the continued output[96] magically increased settlement. Immigrants, made enthusiastic by glowing accounts,[97] came in thousands.[98] Agriculture was stimulated.[99] Foreign trade rapidly increased.[100] Shipping[101] consequently[17] flourished. Coal-mining[102] received a decided impetus. The direction and strength of economic activity was shown in the growth of Victoria[103] opposite the mouth of the Fraser River, and in the development of towns[104] along transportation routes to the interior.

With the gold discoveries, and the rapid development of the country which they occasioned, renewed interest was given to the search for a shorter route[105] between British Columbia and the older countries than by Cape Horn, by the Isthmus of Panama, or overland by San Francisco. The construction of roads in the interior became links[106] in an ultimate overland route through British territory, and the home authorities, aware[107] of the advantages of such a route, gave encouragement.[108] The trails of the fur traders[18] lent feasibility to the project. In 1862 Viscount Milton and Dr. Cheadle successfully completed a journey across the continent by way of St. Paul, Fort Gary, Yellowhead Pass, and the Thompson and Fraser Rivers to Victoria, and contributed[109] to the discussion of the subject carried out by imperialistic writers.[110] The difficulties of such a scheme were underestimated. The British Columbia Overland Transit Company proposed[111] in 1862 as a result of the enthusiasm disappeared[112] after the issue of its prospectus. Alfred Waddington's petitions[113] to the House of Commons in the interests of British Columbia in 1868 were also unsuccessful. Formal encouragement was limited to moral support.

Canada, the eastern terminus of the proposed route, was more vitally concerned. The interest[114] in British Columbia, aroused by the gold discoveries, became more pronounced with the later developments. The Overland expedition[115][19] organized in Canada crossed the continent by way of St. Paul, Fort Gary, Fort Edmonton and Tête Jaune Cache in 1862. Additional zeal on the part of Canada for an overland route was occasioned by the possibilities of American aggression. The Western Union Telegraph Company constructed[116] several miles of line in British Columbia in 1865 in an attempt to link Europe with America by an overland cable through Alaska and Russia. Of more importance, a bill[117] was introduced in the House of Representatives in 1866, to provide for admission of "the states of Nova Scotia, New Brunswick, Canada East and Canada West, and for the organization of the territories of Selkirk, Saskatchewan and Columbia." The purchase of Alaska in 1867, and the Northern Pacific project[118] gave further cause for anxiety. Canada was generally interested.[119]

The rapid development of British Columbia, the resulting encouragement of the British authorities, and Canadian interest in the proposed route, made possible a definite project. The depression[120] which followed the exhaustion of the more important mines, its peculiar effects on the character of immigrants attracted by the gold rush, and[20] the dissatisfaction[121] of the people of Vancouver Island, with the increasing prominence of the mainland, and with the union of the two colonies in 1866 all were additional factors explaining the importance attached to a road to Canada. On March 18, 1867, a resolution[122] was unanimously adopted by the Legislative Council asking Governor Seymour "to take measures without delay to secure the admission of British Columbia into the Canadian Confederacy." The forwarding of the resolution was delayed by the hostility of office-holders, and in protest the citizens of Victoria at a meeting on January 27, 1868,[123] "amidst the wildest enthusiasm," supported[124] the Legislative Council resolution and asked "that an essential condition to such admission should be the construction by the Dominion Government, within two years, of a transcontinental wagon road, connecting Lake Superior and the head of navigation on the Lower Fraser." The movement gained in strength with the death of Governor Seymour,[125] and with the diplomatic[126] appointment of Governor Musgrave, who was favourable to the union. With further encouragement of the home authorities,[127] a delegation was dispatched[128] to Ottawa to arrange the terms of union. Canadian enthusiasm aroused by the agitation of Waddington[129] for the construction of a transcontinental road generally sanctioned[21] the terms proposed, and Canada was pledged to the commencement of the construction of a railway within two years and to its completion within ten years.[130]

The character of civilization which developed in British Columbia was therefore an important factor in determining the character of the terms of union. Geographic features were of particular significance. The navigability of the Columbia River determined the direction of the routes of the early fur traders. The early trading posts and the inevitable beginnings of settlement were located at the junctions of rivers and the heads of lakes. Growth of settlement at the mouth of the Columbia River, due to the expansion of the fur trade in the interior, aroused national jealousies, and led to the controversy which was settled by the cession of Oregon to the United States. Moreover, it drove back the fur trade. With the new boundary line it became necessary to find new routes to the interior and to explore the lower Fraser. With new routes, Victoria and settlements along the Fraser came into prominence. Of more importance, came the discovery of gold, the rush of immigration, the changes in government, the hectic economic development, the construction of roads and the discovery of other routes along the lakes and rivers, the renewed interest of Canada and Great Britain, and the entry of British Columbia into the union. The direction, the extent, and the character of the development of civilization in British Columbia, were determining factors in the attitude of British Columbia toward the terms of union, just as they were determining factors in her attitude toward the fulfilment of those terms.



B. The Hudson Bay Drainage Basin

The growth of civilization in the great central plain east of the Rocky Mountains to which Hudson Bay affords access, was also important as a condition leading to union. In an effort to discover a north-west passage from the east, benefiting by knowledge gained in the voyage of Fro[22]bisher[131] in 1578, and in the voyages of Davis[132] in 1585 and later years, Henry Hudson[133] entered Hudson Strait and sailed into Hudson Bay in 1610. Immediately, attempts[134] were made to find a passage westward out of the bay. With these attempts came beginnings of trade in furs.[135] In 1670, partly in compensation[136] for the failure of the attempts, and partly as evidence of the growing importance of the fur trade[137] on the North American continent, a charter was granted to the "Governor and Company of Adventurers of England trading into Hudson Bay."

The beginning of settlement in the great central plain known as the North-West was dominated, therefore, as in Oregon and British Columbia, by demands of fur trade. Vessels sailing under the auspices of the Hudson Bay Company followed the eastern coast of Hudson Bay to the southern extremity, and, later, turned northward along the western coast establishing posts[138] at the mouths of[23] rivers giving access to the interior. Establishment of posts at the mouths of rivers as strategic points for prosecution of the fur trade, and consequent development of trade with the interior,[139] occasioned the competition of the French, who attempted to divert furs to the St. Lawrence. As a result of this competition, forts[140] were constructed at important points, and harried attacks[141] were made on Hudson Bay Company posts, which only ceased with the treaty[142] of Utrecht. Persistence of the French and penetration, largely under the direction of La Verendrye, of the great central plain as far as the Rocky Mountains by Lake Superior and the Winnipeg River, or the southern gateway, was accompanied by the construction of forts[143][24] at the heads of lakes, the mouths of rivers, and along waterways giving access to the interior. This effective control of the fur trade on the part of the French made necessary the construction of posts[144] and the undertaking of journeys[145] to the interior on the part of the Hudson Bay Company.

After the conquest of Canada, English traders followed the routes to central Canada discovered by the French. The disastrous effects[146] resulting from aggressiveness of these individual traders led to establishment[147] of the North-West Company in 1783. Competition[148] from this company, increased in 1794 by the Jay Treaty,[149] which restricted territory of the North-West Company by transferring several of its posts to the United States, and necessitated the adoption of more northerly routes, was a further stimulus[150] to the efforts of the Hudson Bay Company from the north and occasioned an increase in the number of posts[151] by both companies at competitive points and in[25] more remote regions. Rapid expansion of the fur trade occasioned by such competition led to improvement[152] of the shortest possible routes and to the growth of settlement at strategic[153] points for the handling of furs[26] and supplies. Consequently, head-quarters were removed from Grand Portage to Kaministiquia[154] (later known as Fort William)[155] in 1801 as a result of the discovery[156] of a route from Rainy Lake to Lake Superior, which avoided the difficulties of Grand Portage. At about the same time, an ill-fated[157] suggestion was made by Alexander MacKenzie proposing[158] the formation of the Fishery and Fur Company, "to open and establish a commercial communication through the continent of North America between the Atlantic and Pacific oceans to the incalculable advantage and furtherance of the Pacific Fishery and American fur trade of Great Britain."[159]

The necessity of increasing settlement to furnish supplies[160] and to handle traffic—considerations involved in expanding trade—was a factor favourable[161] to the grant of land by[27] the Hudson Bay Company to Lord Selkirk for colonization purposes, and to the establishment of settlement at the Forks of Red River. On the other hand, severity[162] of competition, more pronounced because the step appeared[163] to be a direct blow at the North-West Company, made settlement almost impossible.[164] But difficult as such attempts[165] at settlement were, the demands of the situation were ultimately such as to favour a permanent establishment,[28] and the very ferocity of competition, making amalgamation[166] necessary, unavoidably involved an increase[167] in population.

Increase in population left settlement none the less subject to exigencies of the fur trade. Amalgamation of the companies brought the decline of Fort Alexander[168] (Bas de la Riviere) and Fort William,[169] formerly important, because they were situated on the main route of communication of the North-West Company, and the growth of Fort Douglas[170] at the confluence of the Red and Assiniboine Rivers, the centre of the southern fur territory. In a more active capacity the Hudson Bay Company exercised the power of monopoly in regulating affairs of the settlement by dictating the price of land[171] and of commodities,[172] by subsidizing enterprises[173] calculated even in failure to redound to its own advantage, and by countenancing tyrannical practices.[174][29]

Friction between the company and the settlers was the natural result of such regulations. Of necessity the breach widened with increase in population and particularly with increase in the number of half-breeds—the larger and more unsettled portion.[175] The consequent increase in agricultural products and in the returns of the annual buffalo chase began to exceed the company's demand,[176] and there arose the cry of the settlers for a wider market. The margin of the company's profits on goods sold to the settlers occasioned the growth of a petty trading class[177] of importers independent of the company. Demand for imports caused the growth of trade[178] with Americans along channels previously opened by early purchases of grain by the colony. The monopoly of the company became subject to increasing strain. In the widening of the breach, the company displayed greater activity[179] in defence of its[30] monopoly. The settlement became increasingly discontented, and, with every evidence of aggressiveness on the part of the company, unrest became more marked, although violence was generally forestalled by the company's concessions.[180]

Another phase of the struggle between the settlement and the monopoly of the company came with the attempt of the settlement[181] to secure redress from the British Government, which, though temporarily unsuccessful, contributed to produce far-reaching results. Energetic correspondence[182] of Mr. A. K. Isbister in behalf of the settlers failed to[183] secure definite results from the Govern[31]ment, which was apparently satisfied by diplomatic[184] assurances[185] of the company, but it undoubtedly contributed to a growing feeling of dissatisfaction with the company's administration. Increase[186] in settlement and[32] its demands for a wider market, and growth of trade with the United States—results of the accessibility of the route by way of the Red River to St. Paul—made this dissatisfaction[187] more pronounced. Although the Red River Settlement had suffered from the neglect of the British Government, it had not entirely escaped notice,[188] and with the signs[189] of American imperialism, more serious in view[33] of the rapid western development of the United States, a more active interest was assumed.

The fact that the fur trade and the company's monopoly were irrevocably opposed to settlement, as was evident in the Isbister correspondence, and in the difficulties of British Columbia, began to be appreciated. Propaganda[190][34] which had been carried on by imperialistic writers in the insistence on the benefits of a transcontinental road also had its effect. The necessity of renewing to the Hudson's Bay Company, the grant which expired in 1859, offered an opportunity to investigate the whole situation, and finally[191] the Select Committee of 1857 was appointed, and at the same time, Captain Palliser was dispatched[192] to explore the territory in question.

Prospect of relief of Red River Settlement from the monopoly of the company as a result of these activities was much more promising. Although Captain Palliser pointed out the difficulties of establishing communica[35]tion[193] between Canada and the settlement, he strongly favoured[194] the formation of a British colony extending from the Red River to British Columbia, and in this other members of the expedition substantially[195] concurred.

Canada was even more seriously concerned than Great Britain with the possibilities of American imperialism, and with the growth of trade between Red River Settlement and the United States. The invitation[196] of the Colonial Secretary on December 4, 1856, to Canada to present her case before the Select Committee[197] met "with great satisfaction," and almost immediately it was arranged[198] that Chief Justice Draper should be appointed as a delegate. The activity of Canada was further evident in the instructions[199] given to the delegate, and in the generally able manner[200] in which the case was conducted. A peti[36]tion[201] from the Board of Trade of the City of Toronto to the Legislative Council dated April 20, 1857, was forwarded to the Select Committee, and in response to a petition[202] from Red River settlers presented on May 22, 1857, the province appointed a select committee, which collected evidence unfavourable[203] to the company, and likewise presented it to the same body. Finally an expedition[204] was dispatched to the North-West in the same year for the purpose of gathering information on its possibilities. The report of the Select Committee favouring the annexation[205] of the[37] Red River and Saskatchewan districts to Canada was a tribute to these activities.

The report proved but an incident in a struggle which, since it involved the life of the monopoly and of the fur trade, was destined to be prolonged. It was followed by suggestions of the British authorities as to machinery with which the proposals could be carried out. The company succeeded in checking progress in this direction by a resort[206] to the charter, although some advantage was[38] gained by the Government, since the issue became clearly defined.[207] Canada, impressed with information which had been gathered by Hind[208] and Dawson,[209] continued the offensive. In 1858, the North-West Transportation, Navigation and Railway Company was incorporated[210] with powers to establish communication from one or more points on the shore of Lake Superior to any point in the interior "within the limits of Canada." The boundaries of Canada being of a controversial character, this company undertook to make arrangements giving it power to conduct operations on territory beyond Canadian jurisdiction. The Act of Incorporation was therefore amended[211] in 1859 to enable it to unite with another company to be formed in England for a similar purpose. In addition[39] the name was changed to the "North-West Company," and power given to construct a telegraph line. The Act expired[212] through non-use.

The disappearance of this enterprise and the attitude[213] of the company towards the attempts of Canada to establish a postal service with Red River, made apparent the strength of the Hudson's Bay Company in withstanding attempts at colonization by its insistence upon territorial rights. But antagonism of the company, and the prominence of the British Columbia goldfields at that time, served to arouse Canadian authorities to even greater activity. In 1862 they tried to take advantage[214] of an Imperial Act[215] which provided for organization of the Saskatchewan territory. In a more direct manner[216] they attempted to secure the co-operation of the Hudson's Bay Company. The Imperial authorities refused[217] to interfere with territory under the company's jurisdiction, and the Hudson's Bay company again made abundantly clear[218] the cause of their resistance. An appeal was made to the authorities,[219] but[40] in Great Britain largely because of activities[220] of the company it was unsuccessful.[221] Finally, an Act[222] was passed in the same year incorporating the North-West Navigation and Railway Company with power to establish communications "within the Northern and Western limits of Canada," and to "unite with any company formed or to be formed in England for the purposes aforesaid."

The primary issue was the claim of the Hudson's Bay Company to the North-West territory which was in substance a question of fur trade or settlement. This was as evident in later as it was in earlier developments. In 1861 Mr. E. W. Watkin was dispatched[223] by the Grand Trunk Railway directorate to retrieve that company from the difficulties of the period. The appointment was of significance, since he was favourable[224] to the extension of railway communication to the Pacific, and since British authorities were sympathetically cognizant[225] of his view[41]point, and of its difficulties.[226] With further encouragement,[227] he was in a position in the following year to submit a proposal[228] for the construction of a telegraph line and a common highway between Canada and the Pacific, to Canadian delegates who sought Imperial support for the Intercolonial railway and who had only hoped to impress[229] upon the authorities the urgency of the Pacific project. But although negotiations[230] were conducted with every[42] hope of success, insistence of the Canadian Government upon facilities for settlement made accomplishment of the scheme impossible.

Persistence of the Canadian authorities, encouraged by the British Government and by the continued appeals[231][43] of Red River Settlement, eventually met with success. The position of the Hudson's Bay Company was very much weakened with the reorganization engineered by Mr. Watkin which occasioned the disappearance of the old interests in 1863. Sir Edmund Head, formerly Governor of Canada and Head of the newly organized company, was favourably inclined toward a complete sale of the company's territory to the Crown and started negotiations[232] with that end in view. This step was characteristic of the general attitude[233] of new interests in the company which greatly increased the growing uneasiness[234] of the settlers[44] and lost to it the interest and affection of the wintering partners[235] who were more directly affected by a loss of the fur trade.

The aggressiveness of Canada continued.[236] Further negotiations[237] with the Imperial Government led to the visit of Hon. George Brown in 1864, and settlement of the North-West territories was a feature[238] included in the programme of the Confederation delegates in the following year. Evidences[239] of American Imperialism, as shown particularly in the offer of Anglo-American capitalists[240] to[45] purchase the territory of the Hudson's Bay Company, proved a decided stimulus to further activity. The British North America Act included provisions[241] for the annexation of the North-West territory and the first Parliament on December 12, 1867, adopted resolutions[242] strongly advising transference of the jurisdiction and control of the region to Canada, and presented an address embodying these resolutions to the Imperial authorities.[243] Confident in the success of such enterprise, the Canadian Government proceeded[244] to construct a road from Fort William according to the suggestions of Mr. S. J. Dawson in 1859, and actually completed the first section of six miles.[245]

Attempts at colonization evident in the efforts of Canada to establish communication between Red River and Lake Superior were not favourably regarded. The appearance of the Canadian authorities[246] in 1868, for the purpose of building a road from Fort Gary to Lake of the Woods, and at the same time of providing relief to the Red River settlers, whose harvests had been destroyed by grasshoppers, by paying for the construction with provisions, was the occasion of a protest[247] from the company.[46]

The Hudson's Bay Company had ample reason to protest against Canadian activity. Sir Edmund Head anticipated[248] and questioned[249] the assumption of Canada that the company's rights vested in its charter should be submitted to the protection of "courts of competent jurisdiction." The Imperial authorities recognized the force of this contention implicitly[250] by the passing of an Act[251] arranging for transfer of the "requisite powers of government and legislation." It was evident that cancellation could only be secured by purchase. To this end negotiations continued.[252] Canada anxiously[253] requested the privilege of sending delegates and upon their arrival in England after a long series of proposals[254] and counter-proposals both[47] Canada and the company agreed to accept the terms proposed by the Imperial authorities as a solution to the apparent deadlock. With minor adjustments,[255] these terms were finally incorporated in a deed[256] of surrender, signed November 19, 1869.

The continual and protracted struggle[257] of settlement[48] against the fur trade had apparently ended. Actually it became more violent. Negotiations had been conducted and closed by London officers of the company with slight regard to wishes of the wintering partners, who were directly dependent upon profits of the fur trade. They had been made suspicious through reorganization of the company in 1863, and became increasingly alert[258] to dangers of the policy of London officials. This dissatisfaction of the wintering partners accompanied, if it did not encourage,[259] the unrest of the half-breeds who were likewise dependent for their livelihood on the fur trade, and who were equally alert to possibilities of its destruction. Finally the sale of land and the change of government, executed without reference to their interests by the company with which they had struggled for every concession, appeared to leave no alternative but a protest determined even to the point of violence.

On July 10, 1869, Col. J. S. Dennis was dispatched[260] by the Minister of Public Works for Canada, to survey the territory preparatory to transfer. Trouble with the half-breeds was anticipated,[261] but surveys were prosecuted[49] until they were ordered to stop[262] by a party under Louis Riel on October 11. As a further preparatory step, Hon. Wm. McDougall, was appointed[263] Lieutenant-Governor of the North-west Territories on September 29, 1869, with instructions[264] to report on the whole situation, and to take immediate steps "for the extension of the telegraph system from the territory to Pembina and for its connexion at that place with the system of the American Telegraph Company." He was forbidden to proceed to Fort Gary[265] and on November 2, 1869, was escorted[266] beyond the boundary to the American side.

Faced with opposition Canada immediately notified[267] the Imperial authorities, and placed upon them the responsibility[268] of securing order. Although the Imperial authorities declined[269] to accept these views and the argument continued, the Canadian Government took active measures to meet the situation. Mr. D. A. Smith was dispatched as a special commissioner[270] with sufficiently elastic instructions[271] to handle the questions involved, as were also, though with less authority,[272] Mr. Thibault[50] and Colonel de Salabery. At a late date[273] Bishop Taché was added to the list. The success of these measures was evident in the growth of a feeling of unity[274] in the settlement, and in the dispatch on March 22, 1870, of delegates by Red River Settlers to Ottawa to present their demands.[275] The Canadian Government in response passed the Manitoba Act,[276] which was accepted by the settlement, and which brought difficulties to an end. After a long controversy, payment[277] was made to the Hudson's Bay Company, and with later adjustments[278] the Province of Manitoba was formally admitted to the Dominion of Canada.

As a precaution against further trouble, troops were dispatched by the Canadian Government[279] with Imperial sanction.[280] Construction of the road from Fort William to Fort Gary, which Canada had persistently continued,[281][51] received additional stimulus[282] with the transport of the expedition. The arrival of the troops at Fort Gary, and the possibilities of the road,[283] from a commercial and military standpoint, made the appearance[284] of Lieutenant-Governor Archibald, on September 2, 1870, a significant omen in the establishment of peace and order at Red River Settlement, and in the disappearance of the rule of the Hudson's Bay Company, and the régime of the fur trade.

The entrance of the province of Manitoba into the Dominion of Canada, marked another victory of settlement over fur trade. The settlement[285] which grew up, dominated in character and in location by demands of the fur trade, and which increased under the favourable conditions peculiar to the Red River Territory, after a long struggle, broke the bonds of monopoly of the trade which had given it birth. The establishment of posts at points geographically and technically strategic for the handling of furs and supplies, as shown in the growth of Fort Alexander, of Fort William (as well as in their subsequent decline with the amalgamation of the companies and the abandoning of the Lake Superior route), and of Fort Gary, was a tribute to the[52] influence of geographic features, as was also the growth of trade[286] between the Red River Settlement, and the United States by the Red River. The physical characteristics which conditioned the growth of trade with America, and which gave to the development of the United States a more threatening character were responsible simultaneously for the development of interest[287] on the part of Canada and of Great Britain and for the consequent activities which led to the purchase of the North-west territories by Canada. Politically the North-west Territories were united to Canada but geographically there remained a discrepancy to measure the seriousness of which requires a study of the position of Eastern Canada.



C. On the St. Lawrence

Acceptance of the terms of union by Eastern Canada implied a pronounced development of civilization in the St. Lawrence drainage basin. It remains to examine more closely the character of that development in order to understand the difficulties involved in fulfilment of the terms. Discoveries of Columbus, in search of a short cut to the Orient, had turned the attention of Europe westward. As a result[288] Cabot sailing from England reached the north-east coast of the North American continent in 1496. The discovery of the Newfoundland fisheries[289] on this voyage, and the profitableness[290] of this trade led to a race of fisher[53]men of various nationalities[291] to the new field. Effective prosecution of the fishing trade necessitated arrangements and accommodation[292] on the shore for winter residents, as well as for the conduct of operations characteristic of dry fishing.[293] Need for suitable harbours for these purposes brought about the establishment of posts at St. John's, and at other points along the coast of Newfoundland. Beginnings of settlement on the shore stimulated the growth of trade with the Indians,[294] and these settlements served as bases for extension of fishing and discovery of new territory. The incentive supplied by the scramble[295] for territory, and for the North-west passage, resulted in the success of Cartier in distinguishing the straits of Belle Isle from the maze of inlets characteristic of the eastern Newfoundland coast, in discovering[296] the mouth of the St. Lawrence, and in penetrating[297] the interior as far as Hochelaga (Montreal).

Biscayan whaling expeditions[298] and fur traders followed the route opened by this voyage, and began to found a settlement at Tadousac,[299] a point strategically located at the mouth of the Saguenay River on the St. Lawrence. Movement toward the interior continued slowly,[300] partly[54] because of climatic difficulties evident in the unsuccessful attempt[301] at colonization of M. de Roberval. Although demands of the fur trade led to the establishment of settlement for the handling of supplies and furs, the navigability of the St. Lawrence, the proximity to such bases of supply as Newfoundland and Europe, and the impossible coast-line of the upper St. Lawrence largely militated against the success of colonization schemes.[302] On the other hand, continued activity in the fur trade stimulated competition[303] and intensified nationalistic jealousy,[304] making necessary further attempts to establish settlements and to regulate the trade. Along the exposed coast-line of the outlying regions, competition (incidental to the wealth of fisheries and furs) between commercial and national interests made settlement unusually difficult.[305][55] It was not until the establishment of a colony at Quebec, in 1608, by Champlain,[306] at a point on the St. Lawrence particularly well-fortified and strategically located for the conduct of the fur trade,[307] that settlement gained a continuous foothold in Eastern Canada. Accessibility of the St. Lawrence made the establishment of posts in the interior largely unnecessary.[308] It also occasioned such ruinous competition,[309] that monopoly was essential, and, with the strategic location of Quebec,[310] gave this monopoly effective control. This tendency toward concentration of settlement at Quebec was not favourable to rapid growth. Its numerical weakness, its value from the standpoint of control of the interior, and its location near the mouth of the St. Lawrence made the increasing competitive pressure[311] characteristic of the outlying coast-line particularly dangerous. The capture of Quebec in 1629 and its possession until 1632 by the English were results.[56]

But eventually the expansion of the fur trade and the penetration to the interior which it involved occasioned a demand for the establishment of posts[312] farther up the river. Contact with new tribes of Indians gave new zeal to missionaries, who planted, at such rendezvous of the traders as Three Rivers[313] and Montreal,[314] chapels which served to encourage more permanent establishments for the fur trade. Further recognizing the dangers of nationalistic and commercial competition, France attempted to encourage settlement in the regulation of the fur trade as shown in the stipulations[315] with regard to colonization in the charter of the Company of New France, in 1627.

The expansion of settlement in the interior brought difficulties. Proximity of the St. Lawrence River and its southern tributaries to the sources of the Hudson River brought the fur trade of the French into competition with the trade of the Dutch and later with that of the English, conducted from Albany.[316] The fierceness of this competition was evident in the pro-Dutch aggressiveness of the Iroquois, who raided French settlements,[317] persecuted French missionaries,[318] and literally exterminated the Huron nation.[319] As a result the French were seriously[57] hampered and restricted[320] in the conduct of the fur trade to the territory north and north-west of the St. Lawrence. The energies of settlement were necessarily directed toward defence.[321] Harassed further with the liquor traffic[322] and other features[323] pertaining to severity of competition, slow progress[324] was inevitable. The attempt of France to increase settlement through the Company of New France failed, and in 1662 its charter was surrendered.[325]

More strenuous efforts were necessary if the country was to be held in the face of the increasing competition characteristic of the mainland,[326] and of the interior. More[58] direct control of the colony[327] was assumed and measures taken to increase the size of the settlement.[328] Troops[329] were despatched, forts were constructed at strategic localities,[330] and attacks made on Iroquois and English[331] territory. The trade of the Iroquois was cut off by the establishment of strategic[332] posts. North and north-west, such aggressiveness was equally in evidence.[333] The English[59] and the Iroquois retaliated with raids upon French settlements, with destruction of forts[334] and a constant warfare on the French fur trade.[335]

These activities and the accessibility of the St. Lawrence drainage basin explained the rapidity of the French discoveries to the south-west, as shown in the exploration of the Mississippi followed by the establishment of posts from the mouth of the St. Lawrence to the mouth[336] of the Mississippi. This expansion tended to direct the energies of settlement toward the fur trade and consequently French civilization in North America was characterized by a lack of concentration other than at points strategic for the conduct of that trade. On the other hand, the inaccessibility of the interior because of the Alleghany Mountains and the lack of advantageous water-routes explained the relative neglect of western exploration on the part of the English colonies. The English pressing north-west around the Alleghany Mountains were directly opposed by the French pressing south-west by the Great Lakes and the Mississippi River and later by the Ohio River. With increasing national and commercial competition[337] on the[60] outlying coast, and with increasing competition[338] arising from the expansion of the English colonies north-west along the Hudson, a struggle[339] for supremacy was inevitable. The struggle[340] proved the weakness of the French position. The English broke the long line of communication between[61] French establishments in the capture of Fort Frontenac and occasioned the fall of posts to the west. The strength of a concentrated force brought about the downfall of the flanks at Louisburg and of the centre at Quebec.

Cession of Canada[341] to England in 1760 closed a chapter in the history of colonial expansion. Settlement in the New England colonies previously barred by the Alleghany Mountains and the national ambitions of France moved steadily forward with the conclusion of the struggle.[342] English fur traders, long held back by strategic posts of the French, pushed rapidly into new territory. The Indian wars in the struggle with Pontiac, though in part an aftermath[343] of the concluded struggle, were also a phase[344] of continued westward expansion.

Growth of settlement, of which the cession of Canada and the conquest of the Indians were results and of which they were in turn[345] causes occasioned an increasing antagonism to regulations of the English colonial policy which eventually terminated in the American revolution. Restrictions[346] which became increasingly heavy on the expanding trade and commerce of the colonies and which were[62] particularly burdensome on such ports as Boston grew more serious as a result of regulations[347] prohibiting the westward movement of settlement and reserving the Ohio valley for the fur trade and the Indians. In the final struggle the naval supremacy of Great Britain, which had been effective through the accessibility of the St. Lawrence valley in the capture of Quebec, was effective in holding that point.[348] On the other hand, the relative inaccessibility of the territory under the control of the English colonies made naval supremacy of little avail. The treaty of Versailles of September 13, 1783, concluded the struggle of the colonies for the removal of barriers[349] restricting westward expansion.[63]

The westward movement gained in momentum with the removal of political barriers. It spread north of the St. Lawrence valley, and particularly with the United Empire Loyalists'[350] settlements[351] began to appear in the territory north of Lake Ontario and Lake Erie. Anxious as to the outcome of this movement in the United States, Great Britain in addition adopted measures to encourage[352] the settlement of that area. Meanwhile settlement[353] in the lower St. Lawrence valley necessarily hampered by conflicts characteristic of the long struggle was at last favoured by peace.

But peace was of short duration. With continued westward expansion in the United States the St. Lawrence valley[64] became increasingly[354] coveted as an outlet to the sea. Among a number of other causes the advantages of its possession led to the war of 1812. The growth of settlement in Upper Canada and in Lower Canada and the effectiveness[355] of British naval supremacy which was evident in earlier struggles, proved sufficient to frustrate the effort of the Americans to loosen British control.[356]

The conclusion of peace was favourable to the expansion of settlement[357] in Upper Canada and in the Western states.[358] This expansion, which had been largely determined by the waterways and particularly by the St. Lawrence system, occasioned the further development of trade and commerce[359][65] which necessitated the improvement of those waterways by the construction of canals. Activity in this direction was increased by national and commercial rivalry.[360] Settlement also had its effect upon the development of other means of communication[361] and these in turn promoted settlement.

Increased trade of Upper Canada occasioned further demand for improvements on the St. Lawrence. These demands for improvements on a common waterway on the part of Upper Canada and the trading interests necessitated the co-operation of Lower Canada since Montreal by virtue[66] of strategic location controlled[362] the collection of such an important source of revenue as the customs duties for both provinces and since the necessary improvements[363] were partly within its jurisdiction. Conflict in Lower Canada between new trading interests averse to customs duties and older agrarian interests averse to land duties[364] complicated by racial controversies[365] and by constitutional struggles[366] which culminated in the rebellion of 1837 made such co-operation impossible. The resulting delay in improvements not only hampered[367] the development of Upper Canada, but also aggravated other difficulties[368] incident to the growth of settlement. The rebellion[369] which followed led to the investigation of Lord Durham, to his famous report, and to the Act of Union which solved the problem by uniting the two provinces.

The removal of these difficulties made possible the prosecution of necessary improvements on the St. Lawrence. The work was stimulated by growing recognition of the value of the river as a highway for increasing trade of the rapidly expanding western states and of its possibilities[370] as a link[67] in a chain of waterways extending even to the Pacific and was vigorously prosecuted.[371] The result of these exertions and of encouraging legislation[372] was a rapid increase in the trade of the lakes.[373]

Unfortunately[374] abolition of the preference to Canadian[68] products in Great Britain resulting from the repeal of the Corn Laws occasioned the diversion of trade by Oswego[375] on Lake Ontario to New York and the Atlantic coast. This diversion of trade stimulated and was stimulated by the agitation which culminated in the Reciprocity Treaty of 1854.

These disappointing results of this diversion, particularly to Montreal and Quebec, led, with the continually increasing traffic[376] and constantly growing recognition[377] of the possibili[69]ties of a route to the Pacific, to the encouragement[378] and vigorous projection of geographically strategic railroads.[379][70] Results were scarcely more promising, and the shorter distance to the Atlantic coast by Oswego continued to prove effective. In addition traffic was drawn by the Great Western[380] and American roads through Niagara peninsula. The Grand Trunk to Portland and Rivière du Loup was in difficulty.[381]

These failures to divert the increasing traffic of the western states and of Upper Canada through Canadian territory occasioned further activity in the renewal[382] of an agitation for access to a Canadian port on the Atlantic open to winter[71] navigation. Arousal of nationalistic anxiety[383] consequent to American expansion, increasing recognition of the possibilities of a route to the Pacific,[384] and development of the maritime provinces[385] gave strength to the agitation, which[72] bore fruit in Confederation and in construction of the Intercolonial railway.[386] Largely in retaliation to the activity evident in these measures and in further legislative efforts[387] tending to divert the increasing traffic of Canada and of the western states through Canadian channels, the reciprocity treaty was abrogated by the United States in 1866. The abrogation gave further stimulus to intercolonial trade and to union and in turn to development of communication with the North-West bespoken in the purchase of the Hudson Bay Territory and in the admission of British Columbia and Manitoba to the Dominion.

A study of the events following the admission of British Columbia to the Dominion which involved the acceptance of terms obligating Canada to the construction of a road to the Pacific within ten years is facilitated by a review of the developments leading to the assumption of the obligation and an estimate of the strength of the third and last abutment of a Canadian transcontinental bridge.

Wealth of fisheries in the territory adjacent to the Banks of Newfoundland occasioned the early establishment of settlement, but national and commercial competition inci[73]dental to such wealth seriously hampered its growth. The maze of rivers and inlets characteristic of the region facilitated the beginnings of settlement but delayed exploration and discovery of the St. Lawrence River and the interior. Accessibility of the St. Lawrence to the interior to a large extent conditioned the rapidity of exploration of the St. Lawrence basin, of the Ohio River and of the Mississippi by the French, and together with its climatic severity determined the importance of the fur trade and consequently the slow growth of settlement. Relative inaccessibility of the area south of the St. Lawrence retarded exploration and led to the growth of settlement along the coast. The south-westerly direction of the St. Lawrence basin and the northerly direction of the Hudson River and the routes to the interior leading around the Alleghany Mountains provoked the conflict between English and French, the result of which was determined by the consolidation and superiority of the English settlements and the accessibility of the St. Lawrence which gave effectiveness to British naval supremacy. Steady growth of English settlements conflicted with the restrictive policy of British control of the St. Lawrence as it had with the French. Maintenance of British control on the St. Lawrence because of naval supremacy, and success of the colonies on land because of the ineffectiveness of naval supremacy in less accessible territory were the results of this struggle. Westward expansion, successful in the removal of barriers interposed by the French and the British, gaining access to the rivers characteristic of the middle of the continent, proceeded rapidly, and contributed to the development of Upper Canada and of the western states. Trade resulting from this expansion increased pressure upon the St. Lawrence, in which the question of control became a contributing cause of the war of 1812, and which necessitated the improvement of transportation facilities to the Atlantic coast. In the competitive struggle for this trade, Canada's handicap of distance to the coast, and the disastrous results, compelled improved facilities. The nationalistic dangers of western expansion contributed to the force of this factor and there followed the Intercolonial, Confederation and the admission of British Columbia to the Dominion.[74]

The apparent weakness[388] of Canada as the important abutment to a transcontinental bridge was not offset by the strength of the remaining abutments. The hectic and relatively slight growth of British Columbia and the relative unimportance of the Red River settlement could not avail in a task of such immensity. In each of the three areas roughly included in the drainage basins concerned, civilization had developed almost alone. It had grown and expanded beyond the boundaries set by topographical features. Politically these sections were united but economically the barriers proved to be of a character which tested severely and almost to the breaking-point the union which had been consummated. Political union rested upon pillars the weakness of which bespoke difficulties before the economic obligation essential to such union could be fulfilled.





[75]

II

From National to Economic Union (1870-1880)

The disparity between political union and the economic development necessary for fulfilment of the essential terms was immediately reflected in the controversial character[389] of the debates, leading to acceptance of the terms by the Canadian Parliament, which insisted upon safeguards against excessive taxation. The policy of the Government, as embodied in the Act[390] providing for execution of the terms,[76] was carefully planned to avoid additional expense to Canada, and it proposed to meet the expenses of construction of the road from land grants. Additional evidence of disparity was found in the energetic[391] and successful efforts of the Government to secure an imperially guaranteed loan, and in the appearance of a clause permitting the possibility[392] of private enterprise sharing in the coveted traffic of the western[77] states, and consequently ensuring the attractiveness and success of the policy. The policy in the face of a task which involved the construction of a railroad through barriers, the magnitude[393] of which was only beginning to be known, to unite the sparsely settled districts of British Columbia and Red River to Canada, necessitated dependence upon American traffic and American interests.

The importance of dependence on the traffic of the western states was evident in the disastrous termination of the two more concrete proposals[394] encouraged by the Government's[78] policy. In the acts of incorporation of both companies[395] stress was placed on connexions with the railways of the United States designed to secure a share of the traffic of the western states. The existence of two companies, the Interoceanic with head-quarters at Toronto and the Canada Pacific with head-quarters at Montreal, bore witness to competition[396][79] between geographically strategic localities for this traffic. Hon. D. L. MacPherson, head of the Interoceanic Company,[397] and others connected with the Grand Trunk were interested in promoting a steamship line from [80] Portland to Europe. Sir Hugh Allan, head of the Canada Pacific Company, alarmed[398] at the prospects of diversion of traffic from his steamship line, energetically prosecuted the construction of railways westward to strengthen control of traffic. This activity in turn aroused the hostility of the Grand Trunk.[399] Finally the strength of American influence[400], inevitable be[81]cause of the importance of American traffic, and the consequent stubbornness[401] of the struggle between the companies[82] to secure the charter, led to the tragic breakdown[402] of the whole policy. In the events incidental to competition between Sir Hugh Allan and Montreal, and the Grand Trunk and Toronto, to secure the charter, the latter appealed to national sentiment in a demand for the exclusion of American interests. As a result of compliance with the demand, there developed the Pacific Scandal,[83] the failure of Sir Hugh Allan's programme and the downfall of the Government. The dependence of private enterprise on American traffic was significant indeed of Canadian inability to meet the terms of the contract.

As a result of increasing knowledge and appreciation of the character and magnitude of the task and of the inability of Canada, reflected in the persistent refusal to bear an increase in taxation, and in the events of the Pacific Scandal, to perform the task, a change in the policy[403] of construction was necessary. The policy enunciated by Alexander MacKenzie, the new premier of Canada, in 1874,[404] proposing the utilization of the enormous stretches of water communication between the Rocky Mountains and the eastern terminus, and embodied in the Act[405] of the same year, providing for the[84] gradual construction of the road and for settlement of the country, was a result.

This change implied modification[406] of the terms of Union with British Columbia and evoked vigorous protests[407] from the people of the province who were unusually petulant as a result of the legacy of impatience inherited from the period of the gold discoveries and the consequent hectic development. Appeal[408] was made to the Imperial authorities and the Earl of Carnarvon was agreed upon as an[85] arbitrator. The arbitration award[409] expressed in the Carnarvon terms was favourable to Canada and generally[86] a recognition of the impossibility of fulfilling the terms of Union, and a justification of the new policy.

Operations were begun on portions of the route strategically located for settlement of the country. An attempt was made to continue and improve the Dawson route,[410] from[87] Lake Superior to Red River for the use of settlers. Surveys were prosecuted[411] particularly in British Columbia[412] to[88] secure early location of the line preparatory to construction of sections of permanent railroad and of telegraph line.[413] To improve the communication between Red River and Canada, provision was made for extension of the Canada Central Railway to Georgian Bay,[414] for construction of a[89] railroad from Lake Superior to Red River,[415] and from Red River to the United States boundary.[416] With completion of the latter section transportation of materials to western Canada was facilitated and sections were built west of Red River.[417] Construction was prosecuted under difficulties[90] serious and to some extent recognized[418] as inherent[419] in the later policy. The executive capacity of the then recently organized Federal Government was sorely taxed with the immensity of the task. Since it was obliged to rely on technical skill inadequately developed[420] for a task of that character, mistakes[421] were inevitable.[91]

Embarrassment to the Government which these mistakes occasioned, aggravated by the persistent efforts[422] of an energetic opposition, led to a search for a plan of construction[92] possessing fewer disconcerting features. Though achieved under various difficulties, progress of the work on geographically strategic portions of the route, particularly the completion of the road from the United States boundary [93] to Winnipeg, brought the search of the Government for such a plan nearer success. The economic development of western Canada[423] which made possible the construction of the branch was stimulated with its completion. Increased trade between Manitoba and the United States was a stimulus to[424] increasing demands, incidental to the national and economic growth of Canada,[425] for a more rapid and[94] satisfactory prosecution of construction. The rapidity desired could alone be accomplished by private enterprise and central control. Consequently, the Government energetically[426] sought a group of capitalists to undertake the task, and as a result of the progress which had been made in[95] construction of the project, and of the economic development, and the recognized possibilities of the areas involved, success was eventually attained. In June, 1880, it was announced by Sir John A. MacDonald that the necessary co-operation of capitalists had been [96] secured. Conclusive evidence was at hand of the ability of Canada to support a transcontinental railroad and to overcome the barriers which had long held back its development. The economic development of the country became adjusted to the national development, which had made essential the contract of union with British Columbia, and had occasioned the innumerable difficulties of the period. The growing strength of the abutments was sufficient to permit the completion of the bridge. The contract for the construction of the road was signed on October 21, 1880.





[97]

III

Fulfilment of the Contract

The contract for the construction of the road was an index of the growth of civilization in Canada. The details of the contract were evidence of the extent and character of that civilization. Capitalists undertaking the enterprise were significantly representative: Mr. George Stephen, President of the Bank of Montreal; Mr. R. B. Angus, Manager of the same bank; Hon. J. Cochran, a Quebec cattle breeder, and Mr. Duncan J. McIntyre, Manager of the Canada Central Railway, eloquently represented the interest of Montreal, which had long sought control of a larger share of Western traffic. Mr. R. B. Angus, Mr. George Stephen, Mr. D. A. Smith and Mr. J. J. Hill to a large extent owners of the St. Paul, Minneapolis and Manitoba Railway, prominently bespoke the effect which construction of the Canadian Pacific and the development of traffic in Western Canada would have on the earnings of that line to Winnipeg. The name of Mr. D. A. Smith, though omitted from the contract because of the personal enmity of Sir John A. MacDonald, was of the greatest importance also as representative of land holdings[427] in Western Canada, and was[98] particularly striking testimony to the economic development, prospective and immediate, of that area. Mr. P. Du Pont Grenfell, senior member of Morton, Rose and Company, and the American branch, Morton, Bliss and Company, represented English capital, and the interest of the firm[428] in the construction of the Government sections in British Columbia. The possibilities of colonization and emigration were recognized[429] in the interest of Reinach and Company, of Paris and Frankfort, and of the Société Générale.

The terms of the contract[430] were also significant. The Government agreed to give a subsidy of $25,000,000, of 25,000,000 acres of land, and of completed sections of road from Selkirk to Lake Superior and from Kamloops to Port Moody, which cost with the surveys $37,785,320. The grant of land was given in alternate sections of 640 acres, twenty-four miles deep on each side of the railway from Winnipeg to Jasper House, and sections unfit for settlement and deficiencies were made up by grants of land between parallels 49 and 57 degrees latitude, or by a similar grant of land along the company's branches. To facilitate the company's financial arrangements provision was made for the issue of land grant bonds to the extent of $25,000,000, in which they were deposited with the Government, one-fifth retained as security, and the remainder sold—the proceeds being paid to the company as the work progressed. The aid was given according to the difficulties of construction—the less difficult territory 900 miles west of Selkirk was granted $10,000 and 12,500 acres per mile; 450 miles west of this line $13,333 and 16,666·66 acres per mile, and from Callander to Lake Superior, $15,384.61 and 9,615·35 acres per mile. Payment was made with the completion of every[99] twenty miles, but power was given to requisition an advance of three-fourths of the value of steel rails delivered. Land was granted for road-bed and railway purposes, and power given to locate the main line from Callander to Lake Superior, and from Selkirk to Kamloops by Yellowhead Pass, and to locate branch lines. The material required for construction and operation, and the capital stock, were exempted from taxation for ever, and the land was exempt for twenty years after the grant from the Crown. Favourable to the owners of the St. Paul, Minneapolis and Manitoba Railway, material for the original construction of the road was admitted free of duty, and the construction of any line south or south-west of the Canadian Pacific railway within fifteen miles of latitude 49 within twenty years was prohibited. The contract called for the completion of the road on May 1, 1891. The aid granted by Canada for the construction of the road was ample tribute to the insistence of demands for a rapid prosecution of construction, and to the strength and character of Canadian civilization.

The ratification of the details of the contract by a consistent majority[431] in the Canadian Parliament, in the face of a particularly energetic and hostile campaign, was conclusive proof that the programme of the Government was the programme of Canada. The activity of Ontario and of Toronto against possible lines diverting traffic to Montreal which had been effective in the earlier years was of little avail. A new syndicate, composed chiefly of residents[432] of Ontario offered to construct the road for a subsidy[433] of $22,000,000 and 22,000,000 acres of land. It offered to forgo the privileges, granting exemption from duty on materials and exemption from taxation on lands, and the monopoly implied in the[100] provision prohibiting the construction of a line south of the Canadian Pacific Railway in Manitoba. The Government was given the option, in lieu of accepting construction on the section from Callander to Lake Superior, of accepting the construction of a line to Sault Ste. Marie with a bonus of $12,000 per mile. Construction in British Columbia and the Rocky Mountain section was made the subject of optional postponement. As a further attraction the Government was permitted to take possession of the road at an agreed compensation. Typically, the syndicate implied a charge of American patronage of the original contract, in its personnel of representative Canadian directors. The offer was rejected on January 25, 1881, by 140 to 54.[434]

Failing to thwart the contract as a whole, attempts were made to ensure particular rights. Toronto protested[435] against section 25 which gave the Canadian Pacific Railway Company power to purchase, lease, or otherwise amalgamate with other roads, and especially the Canada Central Railway, giving direct connexion with Montreal. It was claimed that this section violated the neutral character of the terminus and diverted trade from Ontario. It was asked that the Ontario and Pacific Junction Railway which had running rights over the Canada Central projected extension to Sault Ste. Marie, should be granted such powers over sixty-five miles of the Canadian Pacific, without which the running powers over the Canada Central would be useless. Objection was taken to the control of the line to the Sault by the Canada Central Company, and therefore by the Canadian Pacific, as it would be used as a feeder. A memorial of the Toronto Board of Trade suggested as a safeguard that the company "should not be permitted to place any higher mileage rates on the portion of their railway over which Ontario traffic must pass than on the portion over which eastern traffic must pass." As a result of this protest section 24 of the Act adopting the contract provided that the "Company shall afford all reasonable facilities to the Ontario and Pacific Junction Railway Company when their railway shall be completed to a point of junction with the[101] Canadian Pacific Railway and to the Canada Central Railway for the receiving, forwarding and delivering of traffic upon and from the railways of the said companies," and that it shall "receive and carry all freight and passenger traffic shipped to and from any point on either railway passing over the Canadian Pacific Railway at the same mileage rate and subject to the same charges for similar services."

These changes were not serious departures from the general trend of the act of incorporation, which was in accord with that of the contract. Power was given to construct telegraph or telephone lines, docks, vessels and elevators. Tolls could be reduced by Parliament only after 10 per cent. profit had been made on the capital expended in the construction of the railway, and only after the net income of the company had exceeded 10 per cent. on the same amount. To ensure continuity of control a transfer of stock to non-shareholders was subject to the veto of the directors until the completion of the contract. The company was given power to raise capital by the issue of bonds to the extent of $10,000 per mile, and in case no land grant bonds were issued to the extent of $20,000 per mile and guaranteed or preferred stock at $10,000 per mile. The capital stock was fixed at $25,000,000. As soon as $5,000,000 was subscribed, of which 30 per cent. was paid up, and $1,000,000 deposited with the Government, the contract was to be transferred to the company. May 1, 1882, was the date assigned for the payment of 20 per cent. of the $5,000,000 and December 31, 1882, for the remainder. Little restriction was placed on the directors, as only a majority of fifteen and the President were required to be British subjects. This act of incorporation was carried after the failure of twenty-five amendments, and the ratification of the contract was completed on February 1, 1881, by a vote of 128 to 49.

The support of the Canadian Government in the fulfilment of the contract and its energetic execution, were earnests, in addition to the liberality of the terms of the contract and of the act of incorporation and the whole-heartedness of their adoption, of the eagerness of Canada to construct the railroad. The required deposit of $1,000,000 was made with the Finance Minister on February 16, 1881,[102] and the company was organized on the following day.[436] Mr. George Stephen was President, Mr. Duncan McIntyre, Vice-President, a testimony to the strength of Montreal interests. In addition to these men, Mr. R. B. Angus and Mr. J. J. Hill formed the executive committee—a tribute to the importance of the St. Paul, Minneapolis and Manitoba Railroad. Mr. J. J. C. Abbott was elected as counsel, Mr. C. Drinkwater, Secretary and Treasurer, and Mr. G. B. Stickney, General Superintendent of the western division—evidence that the company had immediately organized as an effective force. On the same day arrangements were made for vigorous prosecution of the work. On March 3, stock to the extent of $6,100,000 had been subscribed and 30 per cent. paid in. The subscribers[437] of a majority of the stock reflected the direct influence of the directorate and of the interests concerned.

Plans[438] were rapidly made for construction. Application was made and agreed upon that the standard of the Canadian Pacific should equal the standard of the Union Pacific as at the time of the Allan contract in 1873 and not as in 1881. By the end of April 20,000 rails had been purchased in England for delivery during the summer. To secure a through line at the earliest possible date, the company proposed to build a road connecting Sault Ste. Marie with the Canada Central, and to place steamers on Lake Huron to Thunder Bay. The Government had contracted for the completion of the section between Thunder Bay and Selkirk in 1882, giving the company a through rail and water route from Selkirk to Montreal. At the same time, plans were made for construction north of Lake Superior and on other sections, as well as on a branch line to the Souris coalfields in Manitoba. To check possible competition from the Northern Pacific, and to meet the demands of settlers in the southern area, not only was a shorter route desirable but[103] one more southerly than the Government's line located through the Yellowhead Pass. To secure the best possible line through the Rocky Mountains surveying parties[439] were sent from Winnipeg and Victoria on May 2. On the same date[440] under an order in council of April 9, the road from Pembina to Selkirk and from Selkirk to Cross Lake, 162 miles, was transferred to the company by the Government. The Government-located line from Winnipeg by Stonewall to Portage la Prairie was re-located and shortened seventeen miles. Location continued, and was completed as far as Moosejaw Creek in December. Construction followed rapidly, and in November the road was under operation from Winnipeg west to Brandon, 145 miles.

The plans for, and prosecution of, rapid construction made necessary immediate attention to financial arrangements. Funds secured from calls[441] for payment of the subscribed stock were supplemented by arrangements for the issue of land grant bonds. Encouraged by a sale of 300,000 acres of land at $2.59 per acre in England during the early spring, the directors announced in July the issue of $25,000,000 of land grant bonds to be negotiated through the Bank of Montreal, Morton, Rose and Company, and Reinach and Company. Accordingly, under the terms of the contract which permitted the company to locate its branches and to secure a grant of land along those branches, the company proceeded to strengthen the basis of the land grant bonds by locating branches through prospectively good territory. In August[442] it was planned to continue the location survey of the Winnipeg and Pembina Mountain branch, and to provide for its immediate construction, and for the immediate location and construction of the Assiniboine branch from a point twenty miles east of Brandon north-east to Lake Saskatchewan, Fort Ellice and the Touchwood Hills, and of the Saskatchewan branch from a point near the Forks of Qu'Appelle in a north-westerly[104] direction. On August 16 the company[443] requested that the Government should reserve lands along the probable routes. A mortgage for the land grant bonds followed on August 30,[444] in favour of Sir A. Campbell, the Hon. Alex. MacKenzie, and Mr. S. Thorne of New York as trustees the bonds being payable October 1, 1931, with interest at 5 per cent. payable semi-annually April 1 and October 1. The company agreed to accept payment for lands in these bonds at 110. Provision was made for redemption of the bonds out of the sale of lands at the market price, or by drawing in bonds and paying 10 per cent. premium. In accordance with the terms of the charter, the proceeds of the sale of the land grant bonds were to be deposited with the Government, and the company was entitled to receive as the work progressed the same number of dollars as the number of acres of the land subsidy which had been earned by it, less one-fifth if the bonds were sold at par, or if sold below par less an amount corresponding to the discount. Arrangements were made with a New York and a Montreal syndicate to take $10,000,000 at 92½, the Montreal syndicate taking $2,500,000 and the New York syndicate, represented by J. S. Kennedy and Company, the remainder. The bonds were sold in instalments: $1,000,000 in November; $1,000,000 in January, 1882; $1,000,000 in March; $1,000,000 in May, and $1,000,000 at the first of each month up to November. To facilitate these arrangements a concession of 5,000,000 acres of land and a half interest in each town-site west of Brandon on the main line of the road to the eastern boundary of British Columbia was made by the Canadian Pacific Railway Company to Messrs. E. B. Osler, W. B. Scarth, J. Kennedy Tod and S. H. Northcote. These individuals, to pay for this concession, secured the right to purchase a sufficient quantity of land grant bonds from the New York syndicate. Provision was made for the disposal of the remainder of the bonds through the formation of the Canadian North-West Land Company,[445] with head-quarters in London and a capital of $15,000,000. It had twelve directors. The[105] Canadian directors were Mr. E. B. Osler, Mr. W. B. Scarth, Mr. D. A. Smith and Mr. Alex. Ramsey. Among the other directors, of whom four were Scotch and four English, were Lord Elphinstone, Sir George Warrender, William John Menzies and the Duke of Manchester. Scotch and Canadian allotments were limited to $10,000,000. Active administration of this company's affairs was placed in the hands of the Canadian directors.

The success of these arrangements depended ultimately on their effectiveness in disposing of the land to settlers. To this end, the company applied, on January 13, 1882, (1) for the location and conveyance of lands already earned in railway belts along the main line, and along the two located branches extending west from Winnipeg, and embracing all odd-numbered lots fairly fit for settlement to a sufficient distance along the two railway belts to complete the quantity earned; (2) for the preservation by the Government of odd-numbered lots for sale, remaining along branch lines east of the 104th parallel, and for permission to dispose of those lots in anticipation of the Government's action; and (3) for a grant as part of the deficiency on the main line of a tract of land lying in the north-west territory south of the Pembina Mountain branch and of the Souris branch, and extending from these branches to the boundary line and west to the 104th parallel. On March 14 the Government agreed to grant land in the belt along the main line and along the two located lines named as far west as the 104th parallel, though refusing to permit the disposition of sections before they were earned.

On the basis of these financial arrangements, plans were made for a continuance of rapid location and construction of the line in 1882. On December 20, 1881, a request was made that legislation should be passed during the next session permitting the road to go by a southern route.[446] The required legislation stated that "the Canadian Pacific Railway Company may, subject to the approval of the Governor in Council, lay out and locate their main line of railway from Selkirk to the junction with the western section at Kamloops by way of some pass other than the Yellowhead Pass,[106] provided that the pass be not less than 100 miles from the boundary."[447] In March, 1882, the company was able to announce[448] the location of 1,650 miles of track, including the Winnipeg and Pembina Mountain branch from Winnipeg to Smuggler's Point, and thence westerly about fifteen miles from and parallel to the International boundary to a point a short distance west of Moose River, 220 miles. In April the Government agreed[449] that a portion of the Sault Ste. Marie branch should become a part of the main line, and the whole was authorized from Callander to Algoma Mills, 191 miles. Location continued throughout the year. Callander was definitely located as the western terminus of the Canada Central, 120 miles from Pembroke.[450] The line from Red Fox Creek to Moosejaw Creek was re-located and extended to Swift Current Creek, 113 miles, and from thence to South Saskatchewan Creek, 148 miles, in November. Location was carried out 195 miles on the Brandon branch,[451] which ran from Brandon south-west near Oak Lake, striking a point about fifteen miles from the International boundary and running parallel to the 49th degree.

Construction rapidly followed location. On February 16, traffic was opened for thirty-one miles west of Brandon, and on October 3 it was opened to Regina, 211 miles farther west. The frequency of application for the subsidy payable on the completion of twenty miles of track is eloquent of the rapidity of construction.[452] On June 8, 1882, a subsidy had[107] been paid on 201 miles, and on January 23, 1883, on 581 miles.[453] The Turtle Mountain branch was advanced eighty-nine miles. In a summary report of the secretary of the company in February, 1883,[454] it was stated that track had been laid for forty miles west of Callander, for twenty-five miles east of Algoma, and for several miles east of Prince Arthur's Landing. Despite the late start in 1882 due to heavy snows and April floods 68·89 miles had been laid from March to June and 417·91 miles to the end of the year plus 28·30 miles of side track. Of the total, 30·79 miles had been laid in December. The report pointed out that the company had chosen the shortest possible route between Port Arthur and Callander, and along the whole line, in spite of an increased immediate outlay, the determining factors being the competitive value of the shortest route and the capitalized value of the saving in costs of operation. On the eastern section the grades were not in excess of 52·8 feet per mile and in the central section the maximum was 40 feet per mile. The embankments were solidly built (14 feet at the formation level). In the prairie section the road was built well above the surface of the country to avoid the snow. The ties were of tamarack at 2,640 per mile, and the rails were of steel at 56 lb. per yard.

This progress of construction proved a severe test to the company's financial preparations for 1882 and necessitated energetic measures for a continuance of such rapidity in the following year. In February, 1882, it was announced[455] that the Canadian North-West Land Company had taken $8,500,000 in bonds, the payments to be made monthly from November 1, 1882, to May 1, 1883. On the other hand, the difficulties of settlement and the campaign on the part of hostile interests depreciated the value of the land and rendered it almost unmarketable. Consequently the concession granted by the railroad company was reduced, from 5,000,000 acres to 2,200,000 acres, and the syndicate found itself unable to dispose of its land grant bonds at a satisfactory price. The plans proved inadequate to the unusual demands of the situation.[108]

With the failure of the land grant bonds to realize expectations, the company was obliged to rely on the sale of its stock, but failure to secure funds from one form of security had its effect on all. Although the first issue of $6,100,000 had been subscribed at par, the sale of the authorized total of $25,000,000 realized only 40c. on the dollar.[456] An evidence of financial difficulty was the company's resort to all possible expediencies. The Government was asked[457] not to deduct the advance on rails to the extent of 75 per cent. of their value from the payment of the subsidy until the financial situation became easier. An advance was asked on rails laid down at Hochelaga on the Quebec, Montreal, Ottawa and Occidental Railway—a road purchased by the Canadian Pacific Railway but according to the terms of the charter not entitled to inclusion.[458] In November permission was requested and given to substitute £339,800 of permanent debenture stock of the Credit Valley Railroad for $1,000,000 cash deposited with the Government as security with an option on the part of the company of resubstituting cash.[459] Constant vigilance characterized the policy of the company in regard to the land grant as an asset offering relief from financial difficulties. Upon the company's insistence an order in council of October 24[460] reserved for sale 38,000,000 acres—the odd-numbered sections between 52 and 54 degrees latitude and 104 and 116 longitude. In response to further claims an order in council[461] of November 3 gave the odd-numbered sections between the belt of land along the main line and a six-mile belt on the Manitoba and Colonization Railway south of the main line, and between the Province of Manitoba and the Coteau or Dirt Hills, about 2,500,000 acres. Not content with this grant the company asked that it should include all the odd-numbered sections between the railway belt and the international boundary and west from Red River to the Manitoba boundary. Again the Government concurred on January 25, 1883.[462] On November 22, 1882, a grant of 6,204,807 acres earned on 501 miles was asked for on the ground that the[109] 4,963,845 acres already granted had been given after a deduction of one-fifth, which was not according to the terms of the charter. The company insisted[463] that the charter provided that should they not issue land grant bonds secured by mortgage, one-fifth of the lands should be retained by the Government as security for maintenance and working of the road. Land grant bonds had been issued and the Government was therefore not entitled to the deduction. Again the Government finally agreed.

Finally, to meet the situation, in December, 1882, authorized capital stock was increased from $25,000,000 to $100,000,000, and to market this stock under favourable circumstances, a dividend of 3 per cent, was consistently paid.[464] On December 16 a contract was made with the North American Railway Contracting Company,[465] a New Jersey corporation with a capital stock of $3,000,000. Of the 30,000 shares, 21,267 were held in trust for the Canadian Pacific Railway Company[466] in proportion to the holdings of each shareholder. The original holders transferred a proportionate number of shares at cost price to such parties as the company was desirous of obtaining as participators in the enterprises. As a result W. Rockefeller, Winslow, Lanier and Co., Koehn, Loeb and Co., Drexel, Morgan and Co. and other prominent New York interests were represented. The contract stipulated that the road should be constructed from a point forty miles west of Callander to the east end of the Lake Superior section for the sum of $14,099,979 in cash and $20,000,000 in stock, and completed by December 31, 1886, and from a point forty-five miles east of the Saskatchewan river to Kamloops for the sum of $17,880,000 in cash and $25,000,000 in stock and completed by December 31, 1885. The minor provisions of the contract conspicuously protected the railway company. It kept general control with powers to increase the staff if progress was not satisfactory, and to cancel the contract if its orders were not carried out. In payments, 10 per cent. of the stock and cash was retained as security. The con[110]tractors were given power to sell more stock than was stipulated in the contract but at a price and in amounts agreed upon with the railroad company. Provision was made for the sale of the remainder of the stock in an agreement[467] on December 29 with a syndicate composed of W. L. Scott, J. S. Kennedy, R. V. Martinsen, J. A. Stewart, Ed. King and H. F. Spaulding, the issue, comprising 300,000 shares, being taken as follows: 100,000 shares at 50 on February 1, 1883; 100,000 shares at 52·50 on June 25, 1883; and the remainder at 55 on October 25, 1883. The stock was disposed of by the syndicate committee without great difficulty at $60, ensuring the company a supply of funds from this source.

These attempts to meet the difficult financial situation and to provide for continuance of the rapid prosecution of location and construction, in 1883, were temporarily successful. In September, 1882, approval was asked for a line by Kicking Horse Creek and across Selkirk Range by Beaver Creek.[468] The early discovery of Moberly led to the successful location of a line with a maximum grade of 105·6 feet per mile concentrated within twenty miles on each side of the summit. The line[469] proceeded from the summit of the Rocky Mountains west down the valley of the Kicking Horse River forty-four miles, to the valley of the Columbia River, north-west thirty miles into the valley of the Beaver River, following it south and west to the summit of the Selkirks. Descending the Selkirks the route followed the east fork of the Illecillewaet River twenty miles, to a junction with the main stream, and from thence continued south-west twenty-three miles to the west crossing of the Columbia River. The highest points were the Rocky Mountain summit, 5,300 feet above sea-level, and the Selkirk summit, 4,316 feet. The maximum grade was 116 feet per mile descending west from the summit of the Rockies and for sixteen miles ascending the Selkirk summit and twenty miles descending the same summit. At the summit of the Selkirks was a level section three-quarters of a mile long available for marshalling trains. The line involved a maxi[111]mum curvature of 10 per cent. Contrasted with the location of the Government line located by Yellowhead Pass, including 140 miles with a grade of 52·8 feet per mile, the company's line included sixty-three miles with two heavy grades of twenty miles each. The use of additional engines and wear of track were balanced against the additional operation of seventy-seven miles of line and an increase of two hours for passengers and four hours for freight. Through traffic represented only 10 to 12 per cent. of the whole, and the preponderance of this traffic being westbound the two heavy grades rising eastward were not serious. The operation costs on concentrated maximum grades was less than on several light grades. As a result of the approval of the Kicking Horse Pass line, location proceeded rapidly, and on December 6, 1883, it had been carried out to the summit of the Rocky Mountains.[470] On the eastern section location was prosecuted from both ends of the line between Prince Arthur's Landing and Callander.[471] In 1883 it was located sixty-eight miles east from Prince Arthur's Landing and 130 miles west of Callander. This line had a maximum grade of 53 feet per mile and curves of a minimum radius of 1,433 feet.

Location was rapidly followed by construction, and was accompanied by extension of the company's railway system by acquisition. On June 30, 1883, rails were laid for 960 miles west of Winnipeg,[472] and in September trains were running 881 miles.[473] The section from Selkirk to Port Arthur was under Government contract to be in running order by July 1, 1882, and to be completed by July 1, 1883. In the spring of 1883 the contractors expressed a desire to place the unfurnished portion of the road in the hands of the Canadian Pacific Railway Company. This arrangement[474] placed construction and operation of the section under one control and the contractors were released from the obligation[112] of purchasing heavy equipment necessary to complete the contract. On May 10, the contract was placed in the hands of the company to be completed at contract prices minus a deduction of 15 per cent. for preliminary work done by the contractors,[475] and the opening of navigation in 1883 found the company in control of the whole section. Lake steamers were ready in the same year to carry the traffic from Port Arthur to Algoma Mills. The line from Pembroke to Callander was sufficiently improved to warrant the Government's permission to run trains at thirty miles per hour over the whole route on November 1, 1883.[476] In eastern Canada, with the early control of the Canada Central,[477] over which access was gained to Brockville on the St. Lawrence and to connexions with American railways to New York and Boston, the company proceeded to strengthen its position. The purchase[478] in 1882 of the western division of the Quebec, Montreal, Ottawa and Occidental Railway from Montreal to Ottawa brought an important addition. This included the main fine from Montreal to Aylmer, the railway branch and bridge to Ottawa, the branch line to St. Jerome, and a branch from the main line near Mile End station, Montreal, to the Grand Trunk Railway between Dorval station and Montreal. According to the terms of the purchase, through freight and passenger traffic was carried over the Canadian Pacific Railway and the eastern section of the Quebec, Montreal, Ottawa and Occidental Railway to Quebec at rates charged by the Canadian Pacific for all traffic carried past the city of Ottawa in either direction. All rates were apportioned between the Government and the company at a mileage rate calculated pro rata according to the distance traversed by traffic on each of the railways. Concessions were made by the Government in regard to the dispatch of emigrant trains from Quebec and to all foreign mails and to the carriage of coal. The Government agreed to use every effort to secure the completion of the Intercolonial Railway[113] to Point Levis, and the installation of a ferry from Point Levis to Quebec, making provision for the ultimate extension of the road to Halifax. In addition to this extension of the main line, branch lines were constructed. The branch from Winnipeg to West Selkirk,[479] twenty-two miles, and the branch from Pembina Mountain Junction to Gretna, fourteen miles, built in 1882, were supplemented by the completion[480] of the branch from Pembina Mountain Junction to Emerson, fifteen miles, which had been encouraged by a Government bonus of $50,000 for a bridge at the latter point. In 1883 the Pembina Mountain branch was in operation for 102 miles.

Again the rapidity of the construction and expansion of the road exhausted the company's resources and again it was obliged to resort to all possible expedients. The policy of rapid extension necessitated changes in the management and in the directorate as well as in the financial plans. Offices had been opened in 1881 in Winnipeg with Mr. A. B. Stickney as general superintendent and General Rosser as chief engineer. In December, 1881, Mr. W. C. Van Horne, general superintendent of the Chicago, Milwaukee and St. Paul, was appointed general manager and Mr. T. G. Shaughnessy of the same company became purchasing agent.[481] In 1882 the directors were Mr. George Stephen, Pres., Mr. D. McIntyre, Vice-Pres., Mr. D. A. Smith, Montreal; Mr. J. S. Kennedy, New York; Mr. R. B. Angus, Mr. J. J. Hill, St. Paul; Mr. H. S. Northcote, Mr. P. du P. Grenfell, Mr. C. D. Rose, London; and Baron J. de Reinach, Paris. The executive committee included Messrs. Stephen, Angus, McIntyre and Hill. On May 3, 1883, Mr. J. J. Hill resigned[482] from the executive committee and the board of directors because of a policy which involved early construction of the link north of Lake Superior and the diversion of north-west[114] traffic from the St. Paul, Minneapolis and Manitoba over the Canadian route. At the same time the executive committee ceased to exist and another Vice-President, Mr. R. B. Angus, was added. Mr. C. D. Rose and Mr. D. A. Smith made way in the interests of new financial arrangements for Mr. R. V. Martinsen, Amsterdam, and Hon. W. L. Scott, Erie, Pa. The following year, as evidence of the increasing prominence of expert railroad officials in the management, Mr. W. C. Van Horne became Vice-President in the place of Mr. D. McIntyre and Mr. T. G. Shaughnessy became acting general manager. Mr. J. S. Kennedy was replaced by Mr. Turnbull and Messrs. Rose and Smith again appeared on the directorate. In 1885 Mr. Turnbull and Baron de Reinach retired and Mr. E. B. Osler, of the Ontario and Quebec Railway, Mr. Sandford Fleming and Mr. G. R. Harris, of Boston, were added.

In addition to changes in management some evidence of the financial exigencies of the company—though the weight of the evidence may be seriously lessened if judged according to norms of business astuteness—may be found in the unusually careful surveys made of all the railroad accounts. For instance, complaint was made of overcharging on the part of the Government to the extent of $46,607.65—(1) a contract of wire fencing cancelled by the Government at the time the company took over the road, $18,500; (2) fencing on the Pembina branch not executed, $8,000; (3) temporary bridge over the Red River not erected directly in connexion with traffic but for traffic purposes, $6,950; (4) customs duties which should not have been included in the valuation of engines, $7,599.50; (5) freight in store at the time the road was transferred and not worth the charges, $2,158.01; (6) overcharge on freight in transit, $3,400.14. To the payment of this the Government agreed[483] on March 27, 1883. On July 11, the company offered to purchase the Government's rolling-stock from Fort William to Rat Portage at certain stipulated prices. It was pointed out depreciatingly that the lack of standard in equipment, the age of the stock, and its rough service were factors seriously affecting its value. The matter was submitted to arbitration[115] and the locomotives alone proved to be worth $9,000 more than the company's total estimate.[484] The provision of the charter admitting materials for the construction of the main line free of duty made necessary the payment of drawbacks to Canadian manufacturers supplying these materials. Such drawbacks were a continual source of difficulty especially during periods of financial stress. The company was called upon to return $1,604.00 expended on materials used for the Algoma branch despite a suggestion[485] that an equal amount of materials should be used for the main line. Great care was necessary on the part of the Government to secure affidavits from the company and from contractors. A question was raised as to payment of drawbacks on bridges—steel being admitted free of duty. A ruling[486] favourable to the company held that they should be called iron bridges and entitled to drawbacks.

Late in 1883 the company submitted a definite proposition[487] to continue construction in the following year. Stock to the extent of $55,000,000 had already been issued and the conditions of the market made it impossible to issue more. To meet this situation it was suggested that certain funds should be deposited with the Government to guarantee the payment of dividends for a period of years. A fund of $24,527,145 to pay semi-annual dividends of 1½ per cent. on the entire stock for ten years was to be deposited with the Government, first, $15,000,145 in cash immediately, second, $5,000,000 with interest at 4 per cent. on or before February 1, 1884, and third, $4,527,000 to be paid within seven years. Security for the later payments (2) and (3) was to be furnished (a) by creating a charge on all sums earned by the company as postal subsidy and for transport service—$3,000,000; (b) by depositing with the Government $1,781,500 land grant bonds to cover the balance of $4,527,000 with the option of the company to pay such balance at any time in cash—the revenue derivable from these bonds was adjusted at 4 per cent. on $4,527,000 by the payment half-yearly of any deficiency or by the return[116] to the company of any surplus, and (c) by creating a charge on the $5,000,000 of land grant bonds held by the Government as security for the operation of the road. The Government was to be allowed interest half-yearly on the balance of the fund created, and was to pay from such balance and interest $1,500,000 semi-annually for ten years to the trustees as dividends, the first dividend payable February 17, 1884. Three days later the Government approved[488] the scheme, modifying it to the extent that the company should furnish funds to meet the dividends falling due on February 17, 1884.

On November 5,[489] a happier arrangement was suggested. Since the company did not need to dispose of the whole of its stock at that time, and since it preferred placing the stock on the market as the proceeds were needed for the prosecution of the work, and the extent of the deposit would involve expense and loss of interest, it asked the Government to agree to a reduction of the deposit to an amount sufficient to pay 3 per cent. on $65,000,000 of the stock, the company depositing the remaining $35,000,000 of stock with the Government to be returned as the amount of money required to cover a similar dividend was deposited. Under this arrangement the company would deposit $15,942,645—an amount sufficient to pay dividends at 3 per cent. on $65,000,000 for ten years. Of this the company was to pay first, $8,561,733 immediately and $2,853,912 on February 1, 1884, with interest to be paid semi-annually at 4 per cent., the payment to be secured by land grant bonds deposited—$3,420,000; second, within five years the remainder $4,527,000 with interest payable semi-annually at 4 per cent. secured (a) by a charge on all sums earned as postal subsidy and for transport service, $3,000,000; (b) by depositing further $1,830,000 of land grant bonds to cover the balance of $1,527,000 with the company's option to pay this balance in cash, the revenue derived from these securities to be adjusted as in the first proposal at 4 per cent. on $4,527,000; (c) by a charge on $5,000,000 of the land grant bonds held by the Government. As in the first proposal the Government was to allow interest at 4 per cent. semi-annually[117] on the balance in hand of the fund created and to pay from the fund and the interest $975,000 half-yearly for ten years as dividends to the trustees, the first dividend to be paid on February 17, 1884, and any balance required to be paid by the company. On the $35,000,000 of stock to be deposited, the company had the right to draw to August 17, 1883, as it deposited a sum of money which with interest added would pay a half-yearly dividend to August 17, 1893, on the stock withdrawn, and the Government was to pay to the trustees in addition to $975,000 a further sum equal to 1½ per cent. on the amount of stock withdrawn. Two days later the Government agreed and the Bank of Montreal was appointed trustee.

The attempt to sell stock under favourable circumstances by the payment of dividends met with little success. The questionableness of the policy, the persistent propaganda[490] carried on by hostile interests depreciating the prospects of the road, and the unsatisfactory experiences[491] of financiers with Canadian roads seriously affected the price of Canadian Pacific stock. In December, 1883, it was quoted at 57. In addition to this difficulty as a result of the agreement which gave the Government control of the unissued stock, the contract with the North American Railway Contracting Company[492] was cancelled on November 21, and the company was obliged to carry on construction by other means.

At every turn the company exercised and was obliged to exercise the utmost care in the conservation of its financial resources. An application was made for the release from land grant bonds, to the extent of $10,000,000 in the Bank of Montreal to the order of the Government, of an amount sufficient to pay the company the sum earned in the construction of the line. In the agreement of November 7 a number of these bonds were deposited by the company to secure payments to be made under the agreement, and the Government claimed that these bonds were a first charge on the $10,000,000 of bonds held by the Bank of Montreal, and that[118] none of them could be released until the amount required to be deposited under the agreement had been fully earned. It held that bonds pledged under the agreement had been released practically before they were earned. The company replied[493] on January 1, 1884. Construction was complete on 1,121 miles and on this basis according to the charter land was to be granted to the extent of 13,755,763 acres. Since the proceeds of the land grant bonds to be received by the company from the Government were the same number of dollars as acres of land minus one-fifth, $11,004,610 was due to the company. The company asked that this amount minus $10,000,000, or $1,004,610, of the bonds should be released. On January 7 the Government, after carefully reviewing[494] the situation, gave its approval.

On January 15,[495] in a further effort to meet the situation, the company suggested other measures. Its position was as follows:

Subsidy earned $12,289,211
Subsidy to be earned $12,710,789
Land grant earned 13,755,705 acres
Land grant sold 3,753,400     "   
________     "   
Unsold balance earned 10,002,305     "   
Land grant unearned 11,244,295     "   
________     "   
Total available 21,246,600     "   
    The lands sold had realized an average of $2.36 per acre.

Land Grant Bonds.

[119]
Bonds sold $10,000,000
Bonds redeemed and destroyed $6,667,000
Bonds held by land companies against payments for lands sold and not yet due 846,000
Balances payable by individuals or lands sold not yet due 1,363,500
________
    Total $8,876,500
Balance of bonds to be provided for out of unsold lands 1,123,500
Balance of bonds in Government hands 15,000,000
________
    Bonds existing $16,123,500
Lands earned and unsold, 10,002,305 acres at $2.36 23,605,440
Surplus from earned lands after paying bonds $7,481,940
The liability of the company on bonds—in hands of public $1,123,500
Bonds charged with lien for payment of balance required to secure guarantee dividend 5,258,000
________
    Total liability $6,381,500
Total lands available (earned and unsold) plus unearned, 21,246,600 acres at $2.36 $43,361,420
Stock:
    In hands of Government subject to $8,575,000 for payment of dividends $35,000,000
    On hand, from which it had obtained an advance of $5,000,000 $10,000,000
Expenditure to December 31, 1883:
    1,121 miles main line $23,563,564
    269 miles branch line 3,827,092
    Improving railway received from Government 353,601
    Equipped lines and branches 8,638,306
    Equipped extensions, Brockville and Montreal from Callander 3,203,050
    Materials on hand 4,028,604
    Paid in advance of dividend 8,710,240
    Paid interest on capital stock 2,128,000
    Interest on land grant and expenses 372,880
    Advances toward acquiring line to seaboard 3,482,251
    Acquired real estate for termini 390,789
________
$58,695,377
Received cash and land subsidy 21,318,222
________
Balance $37,377,155
[120]

It was estimated that about $27,000,000 was required for the completion of the road. Speedy construction was urged to develop the country and to secure a return on the capital already expended. The company asked, in the first place, for the release of $1,000,000 which had been deposited in 1881 and substituted by Credit Valley securities in 1882 as a guarantee for the completion of the road. It had expended $37,377,155 and during the last nine months had earned a net revenue of $978,660. The retention of the securities not only impaired the company's resources, but was an imputation on the value of the railway and the good faith of the company, and was no longer necessary. In the second place it asked that the subsidy should be paid on progress estimates as the payment on the mileage basis was inequitable, some miles being more difficult than others. Its third request was that the date of payment by the company of $2,853,912 in February, 1884, should be extended until it was needed for the payment of secured dividends on November 7, 1888, when the balance of the fund was payable. Lastly it requested a loan of $22,500,000 with the unpledged land grants as per statement—the proceeds of the lands to be appropriated (a) in payment of interest on the loan, (b) to establish a sinking fund to extinguish the principal. Further security was offered in a first charge on the company's main line and property including the Pembina branch and lines east of Callander. The advance was to be paid as the work proceeded. Four days later the Government engineer, Mr. Schreiber, recommended[496] that the suggestions should be adopted. The proposals[497] were approved by the Government on January 31.

The Act[498] embodying the terms of this agreement, after the usual bitter protests of the opposition, was sanctioned by Parliament. The security definitely provided was (1) a first lien on all the company's plant from Callander to Port Moody; (2) a first lien on the section of main line between Callander, Brockville and Montreal, subject to a mortgage of $5,333,333; (3) a first lien and charge on all the land of the company earned and to be earned subject to the bonds[121] outstanding. The land grant was placed in the hands of trustees to pay the proceeds of bonds held by the public, to pay the amount due in November, 1888, to the Government and to pay the advance. No bonds could be issued on the Government's security. No portion of the $35,000,000 stock could be issued without the Government's consent, and the proceeds of any issue were to be used to pay the Government advances. Six months' default in payment of the interest on principal created a statutory foreclosure. Provision was made for extinguishment of a current debt of $7,500,000, and the company agreed to complete the central and eastern sections of the road in May, 1886.

Following these financial arrangements and preparations, location and construction were again rapidly pushed forward in 1884. On the Rocky Mountain section the company was obliged to apply[499] for authority to construct a temporary line for about thirteen miles, dropping into the Kicking Horse Valley with a grade of about 232 feet per mile for four miles, and joining the original line at a point west of the most troublesome portion. It was estimated that the rapid construction of the permanent line to complete it in the time required by the contract would increase the cost of construction to an extent sufficient to build a temporary line. To this the Government agreed[500] on May 30. Location was carried forward ninety-two miles during the year and completed in March, 1885.[501] On the eastern section also location was rapidly carried to completion.[502]

Construction on the mountain section proceeded slowly but steadily and the company was able to predict completion in the fall of 1885. In the eastern section in October, 1884, 185 miles of track had been laid west of Callander, and sixty-seven miles east of Port Arthur.[503] In December there remained 254 miles.[504] The branch from Algoma Mills to[122] Sudbury Junction, ninety-five miles, the link which gave the company a through rail and water route from Winnipeg to Montreal, was completed.[505]

Extension of the system through acquisition continued in 1884 as in the previous year. On January 4 an important step in the control of traffic in eastern Canada was made in the lease of the Ontario and Quebec Railway.[506] This included the Toronto, Grey and Bruce Railway leased on July 26, 1883, for 999 years; the London Junction Railway leased on November 19, 1883; the Credit Valley Railway system acquired by amalgamation on November 30, and the Atlantic and North-West Railway acquired by purchase on December 3. The lease gave the company better terminal facilities and secured access to important ports and connexions. The line to Owen Sound gave the company a larger share of the traffic shipped from the west to western Ontario and strengthened its hold on western trade. The St. Lawrence bridge gave additional facilities in Montreal. Connexions were made at St. Thomas with the Canada Southern branch of the Michigan Central, permitting the Canadian Pacific to share in the trunk-line seaboard traffic.

These acquisitions constituted a serious invasion on the territory of the Grand Trunk. The severity of the competition which followed led to a tentative agreement in which the Grand Trunk recognized the right of the Canadian Pacific to traffic going north-west and the latter road agreed to leave the Grand Trunk in possession of its district, but effective control by the Canadian Pacific of the Ontario and Quebec Railway made the agreement impossible[507] and competition was renewed. The Grand Trunk attempted to prevent the Canadian Pacific from gaining access to the seaboard. Running rights of the Canadian Pacific over the North Shore Railway to Quebec were rendered valueless[123] by the transfer of control over the North Shore Railway to the Grand Trunk. With the acquisition of this control, it proceeded to construct the Jacques Cartier Union Railway from Sault au Recollet, a point on the Canadian Pacific Railway, to a point on its own road, 6½ miles,[508] for the purpose of connecting the North Shore Railway with the Grand Trunk system. In the face of an ominous silence on the part of the Canadian Pacific the road was approved by the Government on October 10, 1883, and completed on December 8.[509] The North Shore Railway in the sale of its western division to the Canadian Pacific was given equal rights with the Canadian Pacific over the portion of the line between St. Martin's Junction and Montreal. The Grand Trunk attempted within these rights to put up and take in traffic with its own engines and staff at the junction with the Jacques Cartier Railway, using in this way 4 miles of Canadian Pacific track. The Canadian Pacific objected and insisted on certain rates for all cars going over its lines.[510] The Grand Trunk retaliated with a refusal to grant running rights of the Canadian Pacific over the North Shore line to Quebec and constructed an extension of the Jacques Cartier Union Railway to St. Vincent de Paul, making a direct connexion with the North Shore Railway.[511] The Dominion Government at this juncture offered to secure an outlet to Quebec for the Canadian Pacific by a subsidy to a line parallel to the North Shore Railway, which prospect of competition brought the Grand Trunk to terms.

An Act[512] was passed by the Canadian Parliament authorizing the setting aside of $15,000,000 to be used for the purpose of securing access to Quebec for the Canadian Pacific Company. Following this step on September 19, 1885, an agreement[513] was made with the Grand Trunk in which that company transferred all the shares, all the railroad property,[514] and $180,000 of unissued bonds of the North Shore Railway to the Government, and agreed to secure the[124] resignation of the directors of the North Shore Railway, to pay all the accounts of that railway between March 4, 1882, and September 20, 1885, and all other obligations incurred between April 20, 1883, and September 20, 1885, and to cancel all agreements with the Jacques Cartier Union Railway and the North Shore Railway. The Government agreed to pay $525,000 and in addition the cost of extra fuel laid in store for the winter and to assume obligations on property in Quebec and Hochelaga valued at $82,500. On the same date another agreement[515] was made with the Canadian Pacific Railway, transferring the shares of the North Shore Railway to Mr. George Stephen and the Hon. D. A. Smith, and the obligations assumed by the Government to this company. Interest secured at the rate of 4 per cent. on the $970,000 remaining after $525,000 had been paid out of the $15,000,000 set aside in the Act, was used to make up any deficiency of the operating receipts for the payment of bond charges. The remaining $5,000 was paid to the Grand Trunk in compensation for the cancellation of contracts made by the North Shore Railway with the Canadian Express Company, the Shedden Cartage Company and the Richelieu and Ottawa Navigation Company. With these measures the North Shore road became the property of the Canadian Pacific.

Again the rapid expansion of the system through construction during 1884 depleted the company's financial resources despite every effort to conserve them. On April 21 the company claimed[516] that certain accounts had been wrongly included in the floating debt and deducted from the loan of $7,500,000: (1) advances on Duluth rails $280,736.09 should have been spread over the estimates and not deducted in a lump sum; (2) deductions for rolling-stock on the Thunder Bay Section $185,890 should have been included in the Canadian Pacific Railway contract to complete that section, as also for rails between Port Arthur and Rat Portage $100,223.07 and timber and ties $9,538.45. The Government approved[517] the payment of $249,043.87, and agreed that the materials used on the Thunder Bay[125] Section should be spread over the estimates as the work was completed. On July 5, the Government returned[518] $1,004,000 of land grant bonds which the company had given in the belief that the Loan Act of 1884 called for a deposit of $10,000,000 with the Government which possessed at that time $8,996,000. On November 22 a question was raised[519] as to whether the $8,996,000 of land grant bonds held by the Government were to be treated as issued by the company in advance of their being earned, and whether the trustees of the land grant mortgage should pay interest on them as it came due, or whether they were to be treated as issued only after they had been earned. A Government ruling on January 7, 1885,[520] safeguarded the position of the company. It stated that the money received in payment of the $8,996,000 was to pay, first, the interest on the loan and on $7,380,912, the amount provided to secure the dividends; second, on the capital of the $7,380,912; third, on the capital of the loan. Since the holders of land grant bonds were not desirous of having a charge on the proceeds of the land increased beyond what was clearly authorized, and since the security of the issued bonds would be lessened by charging the lands earned with the total issue, therefore the bonds earned by the company should be treated as issued and interest collected on them while unearned bonds should not be treated as issued.

In April, 1885,[521] the company had $7,000,000 of notes outstanding and due in two months. The blanket mortgage on the road given under the Act of 1884 and the deposit of $35,000,000 of stock with the Government made it impossible to secure funds either from the sale of stock or bonds. The company proposed[522] accordingly that its total debt to the Government, $29,880,912, consisting of the loan of $22,500,000 plus $7,380,913, the amount due according to the agreement of November 10, should be met by the delivery to the Government of $35,000,000 of first mortgage bonds with interest at 5 per cent. secured by a mortgage on the entire property, except the Algoma branch and other portions of the road[126] already mortgaged. The $35,000,000 of unissued stock in the hands of the Government was to be cancelled. The total debt was to be repaid with interest at 4 per cent. on May 1, 1891. As security the company offered for $20,000,000 of the debt the same amount of first mortgage bonds. The remainder of the debt—$9,880,912—was to be secured by a lien on the unsold and unpledged lands of the company. The remaining first mortgage bonds—$15,000,000—were divided into two portions, first, $8,000,000 as security for a temporary loan of $5,000,000, and the remaining $7,000,000 to be paid by the Government to the company as it was demanded. To this the Government finally consented.[523]

To a slight extent the Act of 1885 weakened the security provided in the loan Act of 1884. In the first Act a lien was given on the postal subsidy and in the second Act a lien was given on all the property as well as the subsidy. A ruling[524] was made that the Government was no longer entitled to money from the postal subsidy and transport service except in the case of amounts collected for these services on the Algoma branch and the company's leased lines. Such amounts were to be retained by the Government except in the case of leased lines in which the revenues were pledged. Difficulties[525] were also occasioned in the payment of the company's floating debt. On July 25, 1885, the company reported a floating debt on May 31 of $9,782,804.67 and asked for $4,782,804.67 to be paid out of the proceeds of the $7,000,000 portion of the bonds provided for in the Act, in addition to the temporary loan of $5,000,000. The company failed to show, however, that the debt had not been reduced at the later date and on July 31 the Government recommended the payment of only $1,104,538 plus $1,895,462, making a total of $3,000,000 which had been shown to be still due on the floating debt after the payment of $5,000,000.

Meanwhile, steps were taken for the issue of bonds. In conformity[526] with the Act the Government appointed the Rt. Hon. G. G. Glyn, Baron Wolverton; the Rt. Hon. A. C. Baring, Baron Revelstoke; and Hon. Sir Charles Tupper,[127] as trustees of the mortgage. The bonds were dated July 1, 1885, and ran for thirty years at 5 per cent. There were 2,600 of £1,000 bonds, 5,800 of £500 and 6,900 of £100. Interest on $20,000,000 to be paid to the Government was 4 per cent. and the whole sum was to be repaid before May 1, 1891. Elaborate provision was made for the default of payment of interest or principal. On July 29 the mortgage[527] was changed in the interests of negotiability, and the provision, that there should be a certificate upon it signed by the trustees and the place for keeping the London register should be at Messrs. Baring & Co., where the bonds and interest were payable, was omitted. The company secured permission[528] from the Government to accept the proceeds in lieu of the bonds to be held as security and steps were taken for the final sale. Sir John Rose offered to purchase at 75, but $15,000,000 were sold[529] to Baring Bros. at 90 and an option given for the remainder at 91. They were offered to the public at 95. The favourable reception of the bonds was the result partly of missionary work[530] carried out by Sir Charles Tupper, High Commissioner for Canada, partly of the recovery following the depression of 1883 and 1884, partly of the consistent support of the Canadian Government to the railway and of the construction activities and railway operations of the company. The favourable sale enabled the company to repay[531] the loan on August 27, 1885, and to secure the release of the $8,000,000 of bonds held by the Government as security. On October 19, the $3,000,000 loan from the Government was repaid[532] and $4,800,000 of bonds released.

The strenuous efforts to secure financial support from the Government were stimulated by prospects of completing the main line in 1885. The British Columbia section under Government contract was completed on July 29, 1885.[533] On the eastern section the road was of sufficient importance[128] to aid in the conveyance of troops to suppress the North-West Rebellion in 1885.[534] The section was finally opened for traffic from Callander to Port Arthur, 651 miles, on November 2.[535] On the mountain section the Government engineer reported that on October 10, 1885, 36 miles of track remained to be laid.[536] On November 7 Mr. Donald A. Smith drove the last spike at Craigellachie.[537] The Canadian Pacific Railway, with the completion of these links, extended from Montreal to Vancouver.

The fulfilment of the contract in the completion of the main line of the road was a significant landmark in the spread of civilization throughout Canada. It was significant of the strength and character of the growth of civilization within the boundaries of three distinct areas which served as buttresses for this transcontinental bridge. With this addition to technological equipment, the civilization of these areas changed in its character, and its extent, and became more closely a part of a civilization narrowly described as Canadian, and typically, western. These changes are recorded to some extent in the history of the Canadian Pacific Railroad and the history of Canada.





[129]

IV

Expansion of the Road and the Development of Freight Traffic

An index of the effectiveness of the road as an addition to the technological equipment of Canadian civilization was the amount of traffic carried. The extension of this equipment in the physical property of the road prior to the completion of the main line was accompanied by, and to a slight extent dependent on, an immediate development of traffic, especially of freight. Extension after the completion of the main line became increasingly the result, and continued as a cause, of this development of freight traffic. The importance of freight with reference to the particular characteristics of the road made necessary a marked increase in passenger traffic essential to settlement of western Canada, but such increase was subsidiary to the increase in freight. Built through a long stretch of unproductive territory, the road required a large outlay of fixed capital, which in turn necessitated the most rapid possible prosecution of construction of the main line and of branch lines, and the use of every possible device calculated to develop traffic. Immigration was encouraged by the efforts of the Canadian Pacific[538] on its own initiative and in co-operation with the Canadian Government.[539] Settlement was encouraged in every possible[130] way. An energetic advertising campaign[540] and developmental rates were directed to that end. To direct traffic over the main line eastbound from Winnipeg, traffic south through the United States was discouraged, and the monopoly clause was rigidly enforced. Upon the increase in population[541] in western Canada largely depended the freight traffic of the road and to the development of freight energies were largely directed.



A. Freight Traffic and Equipment Prior to the Completion of the Main Line

Under Government operation the first train left St. Boniface on February 10, 1880, and despite very difficult weather and lack of equipment, service was continued from that date.[542] The principal items of freight for the first five months ending June 30, 1880, were steel and provisions.

Freight carried to June 30, 1880[543]

Iron and steel (largely steel rails) 15,779,719 lb.          
Hides and skins 25,360 lb.          
Oats 34,660 bus.       
Wheat 31,841 bus.       
Potatoes 3,775 bus.       
Butter and cheese 9,528 lb.          
Meat 1,290,263 lb.          
Groceries 19,600,668 lb.          
Total 30,467 tons.[544]

The commodities were typically those of an expanding agricultural settlement, exporting the raw products—grain (wheat and oats in about equal proportions) and hides and skins, and importing settlers' necessities such as groceries[131] and railroad supplies. In the following ten months the monthly average of freight carried increased from 6,093 to 11,699 tons,[545] and although the number of miles in operation increased from 280 to 367, the monthly average of tons of freight carried per mile increased from 21·8 to 31·9. The transfer of this section of road to the Canadian Pacific Railway Company on May 2, 1881[546] materially increased the amount of the mileage under operation and changed the amount and character of the traffic. The number of miles increased to 609 and included roads acquired in Ontario, especially the Canada Central. The monthly average of tons of freight carried per mile increased from 31·9 to 74·5.[547] The individual items of traffic and their relative importance are shown in the following table:

Freight carried during year ending June 30, 1882

Grain 3,937,166 bus.  
Flour 40,006 bls.   
Live stock 49,137 head.
Lumber 136,164,645 feet.  
Firewood 12,532 cords.
Manufactured articles 104,236 tons. 
Other articles 313,568 tons. 

Settlers' necessities and farm products still remained important items, although the importance of the Ontario roads was reflected in manufactured goods and lumber. In the remaining years before the completion of the main line, the rapid expansion of the road as shown in the increased mileage from 609 to 4,338[548] brought an increase in the amount[549] of freight carried from 634,153 to 1,655,969 tons, and a decrease in the amount of freight carried per mile.

The increase in traffic before the completion of the main[132] line and the trend of particular items[550] was significant. The amount of grain carried declined in 1883, increased in 1884 and almost doubled in the following year. The amount of flour carried, reflecting in part the demands of increasing settlement, increased five times in 1883, tripled in 1884 and made a substantial increase in the last year. Live stock proved to be more under the influence of the grain trade and of the depression of those years, and fluctuated accordingly, practically doubling in 1883, declining almost to its lowest level in the next year and tripling in 1885. Lumber, influenced by the increasing demands of the new country, steadily increased to 1884 and declined slightly in 1885. Firewood, dominated by similar circumstances, as well as by climatic variations, increased five times in 1883, declined in 1884 and reached its highest level the following year. Manufactured articles, continuing to reflect the influence of the Ontario section of the road, steadily increased, more than tripling during the period. Flour, manufactured articles and lumber were significant items, and grain was of decided importance.

The expansion in mileage and the increase in traffic during the period were directly reflected in freight train mileage.[551] The total train mileage during the first five months of operation was 69,164, making an average of 13,832 train miles per month. In the next ten months the total increased to 214,607, a monthly average of 21,460. In the first year[133] of the company's operation this was almost quadrupled to 937,243, a monthly average of 66,946. Of that year's total train miles, 544,929, or more than half, were freight train miles. As a reflection of the addition of roads in eastern Canada the number increased six times in 1883 and declined slightly in the two remaining years. Mixed train mileage, to some extent influenced by freight traffic and by construction activities, reached its highest point in 1884 and declined markedly in 1885.

The amount of freight train mileage directly influenced the amount and character of equipment. In the first five months of operation, the road was seriously handicapped by a lack of locomotives, a difficulty increased by the severity of the winter.[552] At the end of this period, relief had been obtained and the road possessed seven locomotives, two first-class passenger cars, one baggage-car, six box-cars, and forty platform-cars. In the next ten months equipment was increased to ten locomotives, six first-class cars, two smoking-cars, twenty-one box-cars, and one hundred and forty-eight platform-cars.[553] At the end of the company's first year of operation[554] the road had 118 engines, and this number was steadily increased and almost tripled by 1885. Cattle and freight cars were tripled in 1883, increased slightly in 1884 and almost doubled in 1885. As a result of construction activities, platform-cars steadily increased and more than doubled throughout the period. From the same activities, tool-cars increased from ten in 1883 to 241 in 1885.

The expansion of the road and the increase in traffic which directly determined the increase in train mileage and consequently in equipment, were responsible for the development of other facilities. In 1882 the road had 181 miles of telegraph of one wire and 714½ miles of two wires. In 1885 the line was opened for commercial service between[134] Lake Superior and the Rocky Mountains.[555] With the acquisition of the Canada Central Railway and a terminus at Brockville,[556] the first elevator was acquired at that point in 1883. Completion of the section from Winnipeg to Port Arthur[557] led to the construction a year later of an elevator of 300,000 bushels capacity at the latter point. In 1885 elevator facilities in this locality were increased by the construction of an elevator with 1,350,000 bushels capacity at Fort William,[558] and an addition in the capacity of Port Arthur elevators of 350,000 bushels. The establishment of lake service necessary for a connexion between Port Arthur and Algoma led to the purchase of the Athabaska and the Alberta. The use of this lake service in connexion with the acquisition of the Ontario and Quebec Railway, and terminal facilities at Owen Sound, necessitated the construction of an elevator of 250,000 bushels capacity at that point in 1885. Acquisition of terminal facilities in Montreal,[559] led to the construction of two elevators of 1,200,000 bushels capacity at that point in the same year. The rapid increase in equipment necessitated the building of car-shops. Extensive shops at Hochelaga near Montreal for the manufacture of locomotives and passenger-cars were completed in the spring of 1883[560] and in the same year general repair shops were constructed at Carleton and Winnipeg.



B. Expansion of the Road from the Completion of the Main Line to 1900

The increase in freight traffic which followed and stimulated the expansion of the road prior to the completion of the main line, continued to stimulate and follow its expansion after that time. In 1885 the company was in possession of a main line from Port Moody to Montreal and Quebec, of a line tapping the Great Lakes traffic at Owen Sound and Toronto and running eastward to Ottawa by Smith Falls, of a line extending from Toronto to St. Thomas and tapping the trunk line traffic, of a line to Brockville and American[135] connexions, and of several branch lines which increased the traffic on these through routes. The enormous overhead charges occasioned by the length of the main line stimulated the energies of the company toward the development of traffic chiefly by extending and improving the connexions of the through routes and by developing branch lines.

To increase the control of through traffic to the Atlantic coast plans were made to secure access to ports which were free from the navigation difficulties incident to Montreal and Quebec. On October 6, 1883, the company foreclosed the bonds of the South-Eastern Railway.[561] A road was built from the south end of the St. Lawrence bridge to Farnham, 35·74 miles, to connect with this system in 1886-7.[562] In this way access was gained to the ports of Boston and Portland through arrangements with the Boston, Lowell Railway at Newport. To secure more direct access a line was also projected from Montreal to St. John or Halifax. From 1872 to 1875 the International Railway Company of Canada had constructed a line from Lennoxville to Megantic, 65 miles, and in 1879 this was extended from Megantic to the boundary, 15 miles. On November 2, 1886, the Atlantic and North-West Company purchased the International Railway Company and on December 6 leased the entire system in perpetuity to the Canadian Pacific Railway. The Waterloo and Magog Railway from Waterloo to Sherbrooke, 35 miles, built in 1874-5, was purchased by the Atlantic and North-West Company on June 10, 1888. The International Railway Company of Maine, under the control of the Atlantic and North-West Company and the Canadian Pacific Railway Company, and organized for the purpose of constructing a railway from the boundary to Mattawamkeag, 144·84 miles, completed its work in the same[136] year. This line from Montreal to Mattawamkeag, constructed and acquired in sections by the Canadian Pacific Railway, was provisionally extended farther eastward by an agreement with the Canadian Government on April 8, 1889.[563] This agreement was superseded by a more fortunate arrangement in the acquisition on July 1, 1890, by a 999-year lease, of the New Brunswick system which gave the company a direct line to St. John. In September an agreement was made with the Intercolonial for an exchange of traffic at St. John for Halifax. The company had finally secured an outlet to the Atlantic seaboard over a line 279 miles shorter between St. John and Montreal, and 101 miles shorter between Halifax and Montreal, than the Intercolonial route.

The energies directed to the prosecution of a through line from Montreal to the seaboard were stimulated and accompanied by an increase in traffic with the improvement and construction of through connexions west of Montreal. In competition with the Grand Trunk for trunk line traffic the Canadian Pacific was obliged to carry traffic to Montreal[137] through Smith Falls and Ottawa. To improve its competitive position a direct line was built from Smith Falls to connect with the lines of the Atlantic and North-West Company at Montreal and completed[564] in 1887. To strengthen control of this traffic and of the Toronto-Montreal traffic, the company constructed a branch from Leaside Junction to Bay St., Toronto, and improved facilities[565] at the latter point. Difficulties[566] with the connexions at St. Thomas led to the extension of the road from Woodstock to London in 1887[567] and to Windsor in 1888-9.[568] A steel ferry was constructed on the Detroit River and final agreements with American roads placed the Canadian Pacific on an effective competitive basis with the Grand Trunk for the seaboard traffic of the middle western states. To secure a larger share of traffic from the north-western states, control was secured of the Minneapolis, St. Paul and Sault Ste. Marie Railway Company and of the Duluth, South Shore and Atlantic Railway Company. The Canadian Pacific line was extended from Algoma to Sault Ste. Marie and connexions were made at that point with the Minneapolis Railway in 1888[569] and with the Duluth Railway in 1889[570]. As a result of increased traffic from these connexions, various improvements were necessitated on the line between Montreal and Chalk River. The alignments were improved and grades reduced to a maximum of 40 feet per mile going west and to a maximum of 35 feet per mile going east.[571] For the same reason the Montreal and Ottawa railway was leased on November 15, 1892, and a line from Ottawa to Montreal, 87 miles, was completed in 1898. This improvement of through connexions was continued on the western portion of the line. With the approaching pressure of traffic from western Canada, the section between Lake Nipissing and Winnipeg was improved by the replacement of wooden bridges with permanent embankments in 1888[572] and following years. The indirect route of the Canadian Pacific by Smith Falls to Toronto became increasingly disadvantageous and an agreement was made in 1888 with[138] the Grand Trunk permitting the Canadian Pacific to use its direct line from North Bay to Toronto.[573]

The importance of through traffic for a line of the Canadian Pacific's length and character led to efforts to secure control of Oriental and Pacific coast traffic. An extension of the road was constructed from Port Moody to the entrance of Burrard Inlet, 9 miles, in 1885-6[574] for the purpose of acquiring better harbour and terminal facilities. In the mountains extensive snow-sheds were built and completed in 1887.[575] In 1889 and 1890 a branch was built from Mission to American connexions with Seattle and points on American railways along the Pacific coast.[576] Connexions with the Orient were sought and acquired. In response to an advertisement of the Imperial Government of October, 1885, the Canadian Pacific[577] offered to furnish fortnightly service between Vancouver and Hong Kong for £100,000 per year for ten years. This offer was rejected since the payment by the Imperial authorities to the Peninsular and Oriental Steam Navigation Company for the conveyance of China mails would not be reduced by the diversion of only a part of the mails to another route. Emphasizing the importance of the Canadian Pacific route for the conveyance of mail and for military and naval purposes, a modification of the offer was made in July, 1887. In this tender the company agreed to a monthly service proposing to bring Shanghai within the main route of mail steamers and to include the land carriage within the time contract. The Canadian Parliament authorized a payment of £15,000 for a monthly service between Vancouver and Hong Kong and £25,000 for a fortnightly service. The advantages of this line in giving direct communication through British territory and affording an alternative route to the east, saving several days over the Suez route, finally led the Imperial authorities to accept this proposition. On July 15, 1889, a contract was signed in which the Imperial authorities gave[139] a subsidy of £45,000 and the Canadian Government £15,000 annually for ten years. The agreement[578] called for one complete monthly service, 684 hours from April to November, and 732 hours from December to March, between Halifax or Quebec and Hong Kong. Vessels were to call at Yokohama and Shanghai. Provision was made for the transport of troops and the vessels were built under Admiralty supervision. The Admiralty was given power to purchase the boats under stipulated conditions. This arrangement gave the Canadian Pacific a through route from Halifax to Hong Kong. The Empress of India was the first steamship completed, and the Empress of China and the Empress of Japan were added in time to permit a full working schedule by the midsummer of 1891.[579]

The efforts to acquire control of the traffic of the Orient and of the Pacific coast increased competition with American lines and particularly with the Great Northern.[580] To strengthen its position the company constructed a branch from Pasqua, near Moosejaw,[581] on the main line to the boundary to connect with a branch of the Minneapolis, St. Paul and Sault Ste. Marie from Hankinson, North Dakota, in 1893. This branch shortened the distance between the Pacific coast and St. Paul and Chicago and gave the company a greater competitive advantage for this traffic. For the same competitive reasons and to prevent the extension of American roads into British Columbia, a line from Dunmore to Lethbridge, 107 miles, was acquired by lease in 1893 and by purchase[582] in 1897 from the Alberta Railway and Coal Company, and extended by construction to Crow's Nest Pass, and from that point by the lease of the British Columbia Southern Railway in 1898[583] to Kootenay Landing on the lakes of British Columbia, 182 miles. Two years later under the charter of the latter railway, a line was built extending the route from Nelson to Proctor, 20 miles,[584] and connecting with the Columbia and Kootenay Railway to[140] Robson, 27 miles, leased in 1890.[585] In the following year the road was completed to Columbia River bridge and in 1901-2 to West Robson, connecting with the Columbia and Western Railway from West Robson to Midway, 100 miles, acquired in 1898.

The improvement and establishment of through connexions stimulated and were stimulated by the construction and acquisition of branch lines. The pressure of overhead charges occasioned by the increasing length of the main line, and the competitive and less remunerative character of through traffic, intensified the necessity for the development of local main line and branch line traffic. The development of this traffic in turn necessitated through connections. The barren character of the country from Winnipeg to eastern Canada, and the consequent heavy overhead charges on this section of the road, continued to be decided stimuli to the early extension of branches and the development of traffic in western Canada. Branches constructed in this area prior to the completion of the main line became the basis for a rapidly extended system. With the completion of the main line the company possessed parallel lines running on each side of the Red River south of Winnipeg to the United States boundary, one of which extended north to West Selkirk, and a line running from one of these branches parallel to and fifteen miles from the United States boundary to Manitou. On May 26, 1884, the Manitoba and South-West Colonization Railway was leased in perpetuity from June 1 of that year. This line ran westward midway between the main line and the southern Manitou branch and was extended to Holland in 1885[586] and to Glenboro in 1886.[587] The Manitou branch was extended under the same charter to Deloraine[588] in 1884-5. The ends of these parallel lines were joined to the main line by the construction of a branch running south-west from Brandon. With the Souris coal-fields in view, 17 miles on this line were laid in 1889[589] to Souris, 16 miles in 1890 to Hartney, 82 miles in 1891 and 47 miles in the next year to Estevan.[590] The southern Manitou branch was extended to meet this Souris[141] branch at Napinka, 18 miles. The branch midway between this line and the main line was extended 21 miles from Glenboro in 1890, 6 miles to Nesbitt in 1891, and 18 miles to Souris on the Souris line in the following year.[591] Another line was added with the construction of a branch from Elm Creek to Carman in 1889-90.[592] Westward expansion of the system continued in the following decade. Provision was made for the occupation of the entire western and northern area. On October 10, 1890, a road was completed from Regina to Prince Albert, 150 miles, which had been leased to the Canadian Pacific Railway by the Qu'Appelle, Long Lake and Saskatchewan Railroad and Steamship Company on August 7, 1889.[593] In 1890 and 1891 a road was built from Calgary north to Strathcona, 190 miles, and in 1892 south to West MacLeod, 103 miles, and leased to the Canadian Pacific by the Calgary and Edmonton Railway.[594] Generally the company included in these lines an area defined by the sector of a circle, with Winnipeg as centre, with the main line to Calgary as a radius and with the arc extending from West MacLeod to Strathcona. Within this area, a line was constructed west of the Souris branch from Menteith to Pipestone,[595] and in 1898, 17 miles beyond. The Deloraine branch was extended to Waskada in 1892, 18 miles, and to Lyleton, 37 miles, in 1902-3.

In British Columbia similar efforts in the construction and acquisition of branch lines for the development of traffic were made. On August 22, 1890,[596] control had been secured of the Columbia and Kootenay River Navigation Company by 999-year lease. The construction of the road from Nelson to Robson, 26 miles, connecting the Columbia and Kootenay Lakes, made available for over 250 miles a line of steamboat and railway communication to such important sources of traffic as the Kootenay mining district. The Shuswap and Okanagan Railway was leased for twenty-five years on August 4, 1892, and construction of a road from Sicamous on the main line to Okanagan Landing, 51 miles, gave access to agricultural and mining districts for over 100 miles.[597] In 1893 the lease of the Nakusp and[142] Slocan Railway connected the Upper Arrow Lake at Nakusp with the Slocan mining district, 36 miles, and with Sandon, 4 miles. This connexion was greatly improved by the construction of a branch from Arrowhead to Revelstoke, 28 miles, in 1893-6. A branch from Slocan City to Slocan Junction, 31 miles, built in 1897, and the addition of several short branches by construction[598] and acquisition,[599] served the mining areas effectively.

East of Winnipeg similar measures were taken for the development of traffic, particularly contributing to the support of the through line seaboard connexions. In 1885 a branch was built from Buckingham Junction to Buckingham, 4 miles, to the phosphate mines,[600] in 1887 a branch from Glenannan to Wingham, 5 miles, to the salt district,[601] and two branches from Sudbury to the copper mines, in 1899-1901 a branch from Molson to Lac du Bonnet, 22 miles, to a timber district, and in 1901 a branch from Dyment to Ottamine, 7 miles, to a mining district. On January 1, 1891, the Guelph Junction Railway[602] was leased for 99 years from September 18, 1888, including a line running from Guelph to Guelph Junction, 15 miles. In the same year control was acquired over the Lake Temiskaming Colonization Railway. In 1893 a branch from Mattawa to Temiskaming, 32 miles, was completed and in 1896 a branch from Kipawa Junction to Kipawa, 9 miles. Under the charter of the Atlantic and North-West Railway a branch was built from Eganville Junction to Eganville, 20 miles, in 1898, to tap an important timber area. The lease of the Montreal and Ottawa Railway included a branch from Rigaud to Point Fortune, 7 miles. The Montreal and Western Railway, leased in 1892, consisted of a branch from St. Jerome to Labelle, 67 miles. The New Brunswick Railway system, leased in 1890, included important branches—from Watt Junction on the main line to Edmunston, 178 miles, passing[143] through the important town of Woodstock and including two short lines to the Maine boundary, the Houlton branch, 3 miles, and the Presque Isle branch from Aroostook Junction to Presque Isle, 33 miles; from Watt Junction south to the seaboard at St. Andrews, and the Maine boundary at St. Stephen; and from Fredericton Junction to Newburg Junction, passing through Fredericton, 80 miles. The Tobique Valley Railroad, leased in 1897, included a branch from Perth Junction to Plaster Rock, 28 miles, and the St. Stephen and Milltown Railway leased in the same year, a branch from Milltown Junction to Milltown, 5 miles. In addition to the construction and acquisition of branches for the development of traffic, agreements were made to the same end. With the New York Central, the Michigan Central and the Canada Southern, a contract[603] was made for the completion and joint control of the Toronto, Hamilton and Buffalo Railway giving access to the Hamilton, Brantford and Niagara districts. In 1897 this contract became more effective with an agreement securing running rights over the Grand Trunk line from Toronto to Hamilton.



C. Freight Traffic and Equipment, 1885-1900

The expansion of the system in its completion of through connexions and its development of branches was largely the cause, and in part the effect, of the growth of traffic. Mileage[604] had increased during the period from the completion of the main line to the end of the century from 4,338 to 7,000, and during the same period the number of[144] tons of freight[605] carried increased from 1,655,969 to 6,620,903. This general increase in freight was steady, with the exception of a slight falling off in 1888, a decrease in the years of depression of 1893-4, and a rapid increase toward the end of the period. It was especially the result of the rapid increase in the number of bushels of grain carried, and reflected the importance of the road's expansion in western Canada. With considerable fluctuations, largely occasioned by climatic conditions, the amount of grain carried[606] increased from 7,842,343 bushels in 1885 to 42,763,253 in 1899. The frost and the rebellion of 1885-6 reduced the rate of increase in 1887, and the exceptional harvest of 1887 was recorded in the increase of 1888. Another early frost brought a decline in 1889. Except for a bad harvest in 1893, a slight decline in 1898, and a rapid recovery in the following year, the increase in the later years was consistent.

The expansion of the road, particularly in western Canada, and the rapid increase in the amount of grain carried during the period, were directly related to the increase of other commodities carried. Wheat was of dominant importance in grain traffic, and the increase in the amount of[145] flour[607] carried roughly paralleled the increase in the amount of grain carried. The number of barrels of flour carried increased from 1,000,044 in 1886 to 4,005,226 in 1899. With the exception of a decline in 1894 and in 1897, and a rapid increase in 1899, this increase was remarkably steady, fluctuating less than grain. This fact strongly points to the pressure of wheat on milling capacity. An increase in 1889, with a decline in grain carried in that year, is explained, in part, by the rapid increase in grain in the previous years, which left the millers with grain on hand. Similarly the steady increase in 1893 is explained by the heavy crop of 1892. The crop failure of 1893 was reflected in the decline of flour in 1894. During later years, with the importance of increasing mileage in eastern Canada, and the importance of other grain than wheat, fluctuations in flour carried became less the result of fluctuations in grain carried. In 1897 flour declined but grain increased, and in 1898 flour increased but grain declined.

The number of tons of manufactured articles[608] carried was influenced directly by the expansion of the road, and was also sensitive to the agricultural situation. It increased from 476,698 in 1886 to 1,793,663 in 1899. With the exception of a slight decline in 1887, occasioned by the unsettled western conditions in 1885-6, and a marked decline in 1894 due to the depression of the middle 'nineties, the increase [146]was again steady and consistent. This was largely the result of expansion in western Canada, though the foothold which the road had secured in eastern Canada and in the manufacturing cities of the United States was of considerable importance. The effect of the depression was eloquent of the influence of eastern connexions. Climatic conditions, though transient and becoming less serious to agriculture because of improved farming, were much less consequential to the manufacturing industries. The number of tons of other articles[609] carried were influenced by conditions similar to those affecting manufactures, and increased during the period from 498,940 to 1,461,144.

Lumber was dependent on the demands of the growth of western Canada, on the control of the road in Eastern Canada and the United States, and on the development of traffic in timber areas. The total number of board feet[610] carried increased from 327,760,432 in 1886 to 957,702,349 in 1899. As in the case of manufactures, and in response to the close relationship between building operations and depressions, the number declined in 1887, in the years of depression of 1893-4, and slightly in 1896, although the decline during the years of depression was more serious because of the bad harvest of 1893-4. The number of[147] cords[611] of firewood carried increased during the period from 75,625 to 202,461. It was dominated largely by the demands of settlers in western Canada for such necessities as fuel, and by the demands of the railroad. With the exception of a decline in 1889, brought about by difficulties incident to the bad harvest of that year, a decline in 1896 conforming with other commodities at that time, and a slight decline in 1899, the increase was persistent.

The movement of livestock[612] was largely significant of the influence, on traffic of the road, of the eastern agricultural situation characterized by mixed farming, and of the growth of ranching in western Canada. The number of head of livestock carried increased during the period from 244,257 to 810,559. The exceptional harvest of 1887 was followed by a decrease in the amount of livestock carried, and the poor harvest of the following year brought an increase in that number. In 1893 and in 1897, years of bad harvest, the number of livestock carried decreased—a change which points to the growing importance of mixed farming, the livestock industry depending more directly on grain, and a bad harvest restricting the marketing of the finished product. It was further a possible indication of the increasing prosperity of farmers, a bad harvest not necessarily leading to the sale of livestock.

The expansion of the road and this growth of traffic occasioned a rapid increase in train mileage. This was particularly significant with an increase in weight of the[148] average freight train-load. The average freight train-load[613] increased from 162·2 tons in 1889 to 231·2 tons in 1899. The number fluctuated with a slight decline in 1890 and in 1897, a marked decline in 1893 due to the depression and the bad harvest of that year, and a very rapid increase in 1899. The marked increase in weight of the average train-load and the increase in the total train mileage from 5,024,148 in the fiscal year of 1886 to 18,424,701 in the calendar year of 1899, were important indices of the growth of traffic and of the expansion of the road. Total train mileage[614] increased consistently with the exception of a decline in 1893 and 1894. The increasing importance of freight was evident in the increase of freight train mileage[615] from 2,525,572 in the fiscal year of 1886 to 10,982,873 in the calendar year of 1899, and in the persistency of the[149] increase, which began in 1892, and though followed by a decline to 1895, continued to 1899.

The growth of traffic and the increase in train mileage, accompanied by an increase in the weight of the train-load, were directly the causes and the effects of improved gradients and alignments and improved standards of equipment. The total number of freight and cattle cars[616] increased from 7,838 to 19,005 during the period. This increase was persistent though it slackened in 1889 in accordance with the grain situation of that year, and in the middle 'nineties, and gained rapidly during the latter part of the period, especially in the last year. Locomotives,[617] influenced by the passenger situation, and by improved standards evident in the increased average train-load, increased less rapidly. From 1886 to 1899 the number rose from 372 to 690, increasing steadily during the early part of the period, remaining stationary from 1894 to 1896, and increasing rapidly in the remainder of the period. The number of conductors' vans[618] dependent upon the freight train mileage, the average train-load, the size of the locomotives and the proportion of through to local traffic increased during the period from 178[150] to 362, increasing steadily to 1888, remaining stationary through 1889, increasing rapidly to 1893, remaining stationary again through 1896, and increasing rapidly during the remainder of the period. Boarding, tool and auxiliary cars[619] indicating the increase in construction activities, rose in number from 71 in 1886 to 682 in 1899, the increase being steady and rapid, except for the year 1887, and the years of depression, and a decrease in 1895.

This increase in traffic which led to an increase in train mileage and in equipment was again the cause and the effect of the improvement of physical property of the road and of the development of other services. In 1890 72-lb. rails[620] were laid on 171 miles of main line and on 68 miles of the Ontario division, displacing lighter rails of 56 and 60 lb. which were used in sidings and branches. In the following year[621] 200 miles of heavy rails were laid. Alignments were improved, grades were reduced, and permanent embankments constructed. In 1890 over 200 wooden bridges were replaced by permanent structures of masonry, iron or solid embankments, and an equal number[622] in 1891. For the accommodation of grain traffic from western Canada the elevator capacity of Owen Sound and Montreal had been increased in 1885 and 1886. At Fort William an elevator of 1,500,000[623] bushels capacity was constructed in 1888 and one of 1,250,000[624] in 1891. The Aberdeen[625] was added to the lake steamship fleet in 1894 to accommodate the same traffic. Freight terminals[626] in Toronto and Montreal were improved in 1888. Increasing traffic on the Pacific coast made necessary the additions of the Athenian and the Tartar to the Pacific steamship service in 1898. Twelve[627] river steamers were acquired in British Columbia in the same[151] year, and seven more added in the following year. In September, 1886, telegraph connexions were opened between the important towns of Ontario and Quebec,[628] and a connexion established with the Postal Telegraph Company and the Baltimore and Ohio Company to all points in the United States.[629] Under the joint construction of the Canadian Pacific and the Postal Telegraph Co. a line was built between Vancouver and San Francisco. The whole service was rendered more complete by connexions with the Commercial and French Atlantic Cables.[630] In addition the Company continued its policy of erecting equipment plants. Plants were established at Perth, and in 1887 Vancouver was equipped with workshops as well as yards, wharves and terminal requirements.[630]



D. Expansion of the Road, 1900—

The expansion of the road in the completion of through connexions, the development of branch lines, and the growth of traffic, characteristic of the period prior to the completion of the main line, and of the later period ending with the century, continued in the following years. The projection of the system in western Canada, which resulted in the increase in traffic and particularly in grain traffic, conspicuous in the closing years of the century, was rapidly extended. Branch lines were continually being added in other sections of Canada. The consequent rapid increase in traffic gave a decided impetus to the further improvement and construction of through connexions. In the picturesque language of Sir William Van Horne, enlargement of the hopper necessitated a widening of the spout.

In 1900 a step toward the extension of the road in western Canada to the north of the main line was made with a lease, on April 6, of the Great North-west Central[631] from Chater on the main line to Hamiota, 51 miles, and later to Mineota, 20 miles. Control of this area for the development of traffic and for protection from other lines became more effective with the construction of a connexion from Varcoe to McGregor, 55 miles, and with the lease, on May 1, of the[152] Manitoba and North-western Railway[632] from Portage la Prairie to Yorkton, 223 miles, and from Minnedosa to Gauthier Junction on the Great North-west Central Railway, 18 miles. The leases included two branches from Binscarth to Russell, 12 miles, and from Forrest to Lenore, 41 miles, the latter constructed in 1901-2. South of the main line the Pipestone branch was extended, and in 1903-4 completed, from Arcola to Regina, 113 miles. This extension not only tapped new territory, but gave an additional line from Regina to Winnipeg. A branch was completed from this line at Stoughton to the St. Paul-Moosejaw line at Weyburn, 37 miles, in 1908. The system was extended westward from Yorkton to Lanigan from 1902 to 1909, and the area more effectively served by a line north-west from Kirkella on the main line to Lanigan, in the latter year. To this line was added a short connexion from Virden to McAuley, 36 miles, built in 1908. An extension westward from Lanigan to Wetaskiwin on the Calgary and Edmonton line, 100 miles, was completed in 1910. In the following year connexions from this line to the main line were completed from Colonsay to Regina, 132 miles, and the Lanigan-Kirkella connexion joined to this branch by a line from Bulyea to Valeport, 18 miles. Still another connexion with the main line was made from Moosejaw to Macklin, 267 miles, in 1912. With this extension of the system, the company had a direct line from Northern Alberta to Portage la Prairie and Winnipeg, and to Moosejaw and St. Paul, and through connexions in alternate routes with the main line, by branches from Macklin, Colonsay and Lanigan. The road had been extended to occupy the territory of which the limits were set in the previous period. Numerous branches and connexions had been made to complete the system. A line from Reston to Wolseley on the main line, 122 miles, built in 1908, lightened the increasing burden on the main line to Winnipeg by affording further connexion with the alternate southern route. From 1909 to 1911 connexion between Calgary and Lethbridge was improved by a road from Kipp to Aldersyde, 85 miles. In 1914 lines from Bassano to Swift Current, 230 miles, and from Gleichen to Shepard, 40[153] miles, were completed, giving practically an alternate and more direct route from Calgary to Swift Current than the main line. A line from Lacombe to Kerrobert, on the Macklin-Moosejaw connexion, 221 miles, completed in the same year, gave access to valuable territory and improved the connexions of Northern Alberta to the main line, particularly in the Kerrobert to Wilkie branch joining with the Wetaskiwin-Winnipeg line, completed the preceding year. Branches more immediately concerned with the development of traffic, though to a large extent with ultimate through connexions, were continually added. The Stonewall branch to Foxton, 19 miles, constructed in 1898, was extended to Teulon, 19 miles, in 1901; to Kamarno, 8 miles, in 1905, and to Icelandic River, 29 miles, in 1910. The West Selkirk branch was constructed from Selkirk to Winnipeg Beach, 25 miles, in 1903; to Gimli, 10 miles, in 1905, and to Riverton, 26 miles, in 1913-14. The Snowflake to La Riviere branch, 16 miles, completed in 1903, was extended by a line from Wood Bay to Mowbray, 26 miles, in the same year, and to Windy Gates in 1908-9. The Rudyard-Kaleida branch, 6 miles, was constructed in 1905. A line from Lauder was extended to Alida, 55 miles, from 1902 to 1912. In 1910-13 a line was built from Estevan to Neptune, 55 miles, and in 1911-12 one from Swift Current to Vanguard, 45 miles. Construction was continued westward from Weyburn to Stirling, and with the completion of a few miles of road practically two direct lines will be available from Vancouver to Winnipeg. Connexion between these lines was improved by construction of a branch from Moosejaw to Expanse, 35 miles, in 1912, and its extension to Assiniboia, 29 miles, in 1917. In 1910 a branch was built from Langden to Acme, 40 miles. This branch was improved in 1912 by the construction of a line from Bassano to Irricana Junction, 72 miles. The system was improved in Southern Manitoba by a connexion from Lauder to Boissevain, 36 miles. Various short branches were commenced on different parts of the system. In 1907 the Asquith branch, 7 miles, was built; in 1910 the Calgary-Strathcona branch extension to Edmonton, 2 miles; in 1911 a branch from Wilkie to Cutknife, 28 miles, and in[154] 1912 from Reford to Kelfield; in 1914 from Coronation to Lorraine, 19 miles, and in the same year from Suffield to Lomond, 84 miles. Under the charter of the Alberta Central Railway a line from Red Deer to Loch Earn, 64 miles, was acquired in 1912. In the same year the Alberta Railway and Irrigation Company, leased on January 1, gave the company control over a connexion with the American roads with a line from Lethbridge to Coutts, and over branches from Stirling to Cardston, 67 miles, and from Raley to Kimball, 8 miles. The leases of the Edmonton, Dunvegan and British Columbia from Edmonton to Grand Prairie, 407 miles, and of the Central Canada Railway from McLennan to Peace River Crossing, 48 miles, in 1920, and to Berwyn, 25 miles, in 1921, gave the company access to the Peace River district. With these branches and connexions the company possessed a network of roads which ensured its position in western Canada.

The expansion of the system and the consequent development of traffic in western Canada influenced construction in British Columbia and in Ontario. Partly as a result of this traffic, but particularly as a result of the continued development of traffic in British Columbia, lines were constructed in that area to connect with the main line. On August 31, 1901,[633] the Vancouver and Lulu Island Railway, consisting of a line from Steveston to English Bay, 14 miles, was leased. In 1905 the company purchased[634] the Esquimault and Nanaimo Railway on Vancouver Island. This purchase included a line from Victoria to Wellington, 77 miles, which was extended to McBride's Junction, 18 miles, in 1909-10 and to Alberni, 40 miles, in 1911. In the following year, a line was built from Dunraven to Cowichan Lake, 19 miles, in 1913 to Osborne Bay, 3 miles, and in 1914 from McBride's Junction to Comox, 45 miles. In 1905-6 connexions were made with Spokane by a branch to Kingsgate, 10 miles, and to Grand Forks, 4 miles. A line was built from Ehaine Junction to New Westminster, 10 miles, in 1909, and short branches from Port Moody to North Vancouver in 1910, from Three Forks to Whitewater, and from Waldo to Caithness, 11 miles, in 1912. The Kootenay[155] Central[635] was acquired in 1910, and in 1914 a line had been built from Golden to Colvalli, 166 miles, connecting the main line with the Crow's Nest Pass line, and giving an alternative rail route through the mountains. In 1909 the "Big Hill" Grade between Hector and Field was reduced by the construction of spiral tunnels. Further connexion with the main line was afforded in the lease[636] of the Kettle Valley Railroad in 1913 from Midway to Carmi and its extension to Hope on the main line, 277 miles, in 1915. This line was improved by the construction of a branch from Merritt to Otter Summit, 30 miles. With the acquisition of the Kaslo and Slocan Railway, in 1918,[637] from Retallack to Kaslo, 18 miles, the company had effectively consolidated the traffic area of British Columbia and provided for connexions with the main line which gave practically a through route other than the main line from Vancouver to Winnipeg.

The development of traffic in the west by the construction of branch lines and of through connexions and the pressure of this traffic on the main line and especially the portion of the main line leading to the Atlantic seaboard was of dominant importance to construction in eastern Canada. The gradual development of alternate routes in the extension of branches in western Canada and British Columbia was an indication of the effect of increased traffic. In the eastern area the effects were more pronounced. To accommodate the traffic of western Canada a double track was completed from Winnipeg to Fort William[638] in 1907, and westward to Portage La Prairie, Brandon and Regina in 1910 and the following years, and in the same year a short cut was built from Molson to Whittier Junction. Largely under pressure of the same traffic, the Wisconsin Central Railway was leased[639] in 1909 to the Minneapolis, St. Paul and Sault Ste. Marie Company, giving a direct line to Chicago and an alternate route from western Canada by Chicago and Detroit to Montreal. To shorten the line to the seaboard by the Great Lakes, the terminal was changed from Owen Sound to Port McNicoll, and, under the charter[640] of the Georgian Bay and Seaboard Railway, a road was built from this point[156] to Bethany Junction, 88 miles, in 1910. The consequent pressure from this branch of traffic from the north-west on the Toronto to Montreal line led to the construction, under the charter[641] of the Campbellford, Lake Ontario and Western Railway leased on April 16, 1913, of a line from Glen Tay to Agincourt, 184 miles, giving, with the construction of a double track from Glen Tay to Montreal, practically two routes from Toronto. West of Montreal a double track had been built to Brookport, at which point traffic was divided between the ports of New York, Boston and Halifax. In Nova Scotia the lease[642] of the Dominion Atlantic Railway from Truro to Windsor, and from Windsor to Halifax, gave the company an independent connexion with the latter port, although no such connexion between St. John and Truro had been obtained.

The improvement of lines to the seaboard was accompanied by the construction of branch lines and a constant increase of connexions. The project of the Grand Trunk Pacific and the resulting traffic over the North Bay to Toronto Grand Trunk line, as well as the constant difficulties of the Canadian Pacific incidental to the possession of running rights over this line, led to the construction of an independent road. A line from Bolton Junction to Romford Junction, 126 miles, completed in 1908, gave a direct independent connexion from Sudbury to Toronto. Branches as feeders to the main line were continually acquired, constructed and extended. On November 1, 1902, the company acquired a line from Hull Junction to Maniwaki, 81 miles, and from Hull to Aylmer, from Hull to Ottawa, and from Aylmer to Waltham, 70 miles, in the lease of the Ottawa Northern and Western Railway. In 1903 a through connexion was secured from Renfrew on the main line to Kingston on Lake Ontario, 103 miles, with the control[643] of the Kingston and Pembroke Railway. This included the short branch from Godfrey to Zaneville, 4 miles. In 1904, with the lease of the Tilsonburg, Lake Erie and Pacific Railroad,[644] connexion was established with Lake Erie at Port Burwell from Ingersoll Junction. This line was extended from Ingersoll Junction to Embro, 6 miles, in 1908, to Ingersoll, 5 miles,[157] in 1910, and, with the lease[645] of the St. Marys and Western Ontario Railway, in 1909, to St. Marys, 15 miles. Under the charter of the Guelph and Goderich Railway, leased[646] in 1906, connexion was made with Lake Ontario by the construction of a line from Guelph to Goderich, 81 miles, in 1907. Under this charter a branch was built from Linwood to Listowel, 16 miles, in 1908. In the same year the lease[647] of the Berlin, Waterloo, Wellesley and Lake Huron Railway gave the company a line from Galt to Hespeler, 7 miles, and from Preston to Waterloo, 13 miles. In 1915 the lease[648] of the Lake Erie and Northern Railway extended this line from Galt to Port Dover on Lake Erie, 51 miles. Direct connexion was secured from Guelph Junction to Hamilton, 16 miles, in 1912, under the lease[649] of the South Ontario Pacific Company in 1911. The Lindsay, Bobcaygeon and Pontypool Railway, leased[650] in 1903, consisted of a road, completed in 1904, from Burketon Junction to Bobcaygeon, 39 miles. In 1906 the lease[651] of the Walkerton and Lucknow Railway gave a line from Saugeen Junction to Walkerton, 38 miles, completed in 1908. The Joliette and Brandon Railway, leased[652] in 1906, was a line from St. Felix to St. Gabriel, 12 miles. The Northern Colonization Railroad, leased in 1904, included a line from Labelle to Nominingue, 24 miles, and an extension to Mont Laurier, 35 miles, built in 1909. The lease[653] of the Orford Mountain Railway in 1909 gave the company a connexion with the Montreal-St. John line to the Newport or Boston line at Troy Junction, and included a branch from Eastray to Windsor Mills. The St. Maurice Valley Railway, leased in 1910, was a branch from Three Rivers to Grandmere, 27 miles. The Cap de la Madeleine Railway, leased in 1912, was a short branch from Piles Junction to Cap de la Madeleine and to pulp mills on Bellevue Islands, 4 miles. In the same year the lease[654] of the Quebec Central Railway afforded a connexion by two lines from Levis, on the St. Lawrence, to Sherbrooke and Megantic on the Montreal-St. John line, and included a branch from Valleyfield Junc[158]tion to St. Sabine and English Lake, constructed in 1915. The lease of the Glengarry and Stormont Railway in the latter year gave more direct connexion with the St. Lawrence in the line from St. Polycarpe's Junction, on the Toronto-Montreal line, to Cornwall, 28 miles. In New Brunswick the company improved its position in 1904 by securing running rights over the Fredericton and St. Marys bridge, and in 1905 by purchasing the St. John bridge and railway extension line from Fairville to the junction with the Intercolonial Railway in St. John, 2 miles. In 1910 an important connexion with American roads was acquired in the lease[655] from the New Brunswick Southern Railway of a line from West St. John to St. Stephen, 82 miles. In the same year a line was leased[656] from the New Brunswick Coal and Railway Company from Minto to St. Martins, on the Bay of Fundy, 98 miles. The latter line was extended to Gibson, 31 miles, in the lease[657] of the Fredericton and Grand Lake Coal Company, and connected with the Canadian-Pacific system in the acquisition of a line from Marysville Junction to Marysville, 3 miles. The lease of the Southampton Railway in 1914 included a line from Southampton Junction to Otis, 13 miles. In Nova Scotia the lease of the Dominion Atlantic Railway in 1912 included a line throughout the length of the province from Windsor to Yarmouth, 228 miles, a connexion from Kentville to the Bay of Fundy at Kingsport, 14 miles, and short branches, completed in 1914, from Wilmot to Torbrook, 5 miles, and from Centerville to Weston, 15 miles. During the war and afterwards additions in eastern Canada have been few. In 1921 provision was made for construction, by the Interprovincial and James Bay Railway Company, of a line from Kipawa to Des Quinze River, and of a branch to Ville Marie, making a total of 76 miles.



E. Freight Traffic and Equipment, 1900—

The continued rapid expansion of the road, especially in western Canada, brought a phenomenal increase in traffic, particularly, as was to be expected, in grain. The upward trend of traffic in the closing years of the century[159] proved significant. The number of tons of freight carried[658] increased from 7,155,813 in 1901 to the highest point, 31,198,685, in 1917. Except for a slight decline in 1908, occasioned largely by the depression of that year, the increase to 1913 was steady and persistent. Largely due to the war, a slight decline followed in 1914, and a marked decline in 1915, but owing to the exceptional grain harvest, a rapid and temporary recovery was made in 1916 and in 1917. A decline set in to 1919, and despite another recovery in the following year, continued in 1921. The importance of grain in the general freight movement was apparent. The number of bushels of grain carried[659] increased from 32,927,468 in 1901 to the highest point, 276,788,209, in 1916—an increase which, largely influenced by climate conditions and the development of the Canadian west, was not consistent. A[160] bad harvest in 1904 led to a decline in that year. This was followed by a rapid and steady increase to 1907 and a decline in 1908, a further increase to 1910, a slight decline in 1911, much the most rapid increase to 1914, a rapid decline in the following year and a remarkable increase in 1916. These fluctuations were followed by a marked decline to 1919. The remaining years to 1921 gave evidence of recovery. Although grain was dominant, the importance of other commodities was evident. The bad harvest of 1904 had little effect on the total amount of freight carried, and although the decrease in the amount of grain carried in 1908 brought a decrease in the total amount of freight carried, this decrease was accentuated by the depression of 1907. In 1910 the amount of grain carried remained stationary and the total traffic increased rapidly. The total amount of freight carried before the war reached a climax in 1913, a year earlier than the climax for the amount of grain carried. On the other hand, in the war period, the total traffic decreased slightly in 1914 and grain increased, but the decrease was much greater in 1915 because of a marked decrease of grain in that year. The bumper crop of 1916 brought a marked increase in total traffic, and, during the remainder of the period, with the exception of 1921, fluctuations in grain carried paralleled fluctuations in total freight carried.

The grain situation exercised a significant influence on the movement of other commodities. The number of barrels of flour increased[660] from 3,735,873 in 1901 to the highest point, 13,727,970, in 1917. Although wheat was the dominant grain carried, other grains continued to[161] increase in importance as a result of the expansion of the road in eastern Canada and of the tendency toward mixed farming. The rapid increase in grain to 1903 was followed more gradually by flour, the latter commodity reaching its climax in 1904, the year in which grain decreased. This decrease in grain was followed by a decrease in flour in 1905. From 1905 to 1907 the increase in grain again surpassed the increase in flour. From the steady increase in flour and consequently of milling capacity during these years, a slight decrease in grain in 1908 brought a decrease in flour in the same year. Both commodities increased to 1910 in a more uniform manner. Grain declined slightly in 1911 and flour increased. In 1912 a marked increase in grain was accompanied by a slight decline in flour. In the following year flour continued to decline, but recovered in 1914. Grain continued to increase after 1911. The increasing importance of other grains was evident. The steady increase in the total amount of grain to 1914 brought the recovery of flour in that year. The decrease in grain in 1915 led to a decrease in flour, and during the remainder of the period, with the exception of 1920, the two commodities moved concurrently. The effect of rapid fluctuations in grain on the milling capacity occasioned varied reactions. Flour mills, unable to adapt themselves to a rapid increase in grain, in the effort to keep pace with expansion, found themselves without grain in some years, and in other years unable to handle the supply until the year following.

The importance of other grains was partly indicated in the livestock industry, both of which were to some extent indices of the progress of mixed farming. The number of head of livestock carried[661] increased from 945,386 in 1901[162] to the maximum of 2,833,726 in 1915. The number was marked by a steady increase to 1907, a decrease in 1908, coinciding with the decrease in grain in that year, a gradual recovery to 1910, a rapid increase to 1915, a marked decline in 1916, a gradual recovery to 1919, and a decline to 1921. To 1914 the number of head of livestock fluctuated closely with the amount of grain carried. In 1915 the decrease in grain and the abnormal war situation led to an increase in livestock. The rapid increase in 1916 brought a rapid decrease in the following year. Generally, the decided increase in livestock paralleled the increase in grain, and particularly of grain other than wheat. The whole situation was directly an evidence of the increase in mixed farming. The war period brought an increase in the number of livestock marketed—a fact explanatory of the decline in later years. The general influence of livestock on the freight situation was slight. In 1915 the total freight carried had its most marked decrease.

The agricultural situation had a direct influence on manufacturing. The number of tons of manufactured articles carried increased from 1,954,386 in 1901[662] to a maximum of 10,148,568 in 1917. This increase paralleled closely that of the total amount of freight carried, increasing gradually to 1907, declining in 1908, increasing rapidly to 1913, declining rapidly to 1915, increasing rapidly to 1917, declining to 1919, increasing in 1920, and declining again in 1921. The concurrent fluctuations were directly illustrative of the growing importance of manufactures and of the dominant importance of agriculture. The steady increase[163] to 1904 slackened in 1905 largely because of the depression and the bad harvest of 1904. The decline in grain in 1908 and the depression of that year were accompanied by a decline in manufactures. With these minor exceptions, including the slight decline of grain in 1911, the rapid increase of grain to 1913 was followed by a rapid increase of manufactures. In the year ending June 30, 1914, grain increased, but manufactures rapidly decreased. In part this increase in grain resulted in low prices[663] in 1913-14. At the same time the price[664] of steel and other metals increased. Partly as a result, the number of tons of manufactured articles carried declined. The decline in grain carried in 1915 accentuated this decline in that year. The war demand and the exceptional crops led to a rapid increase in 1916, and the readjustment situation brought a decline to 1919. Recovery came in 1920, only to be followed by the decline of 1921. The trend of manufactured articles was followed closely by that of "other articles." The number[665] of tons increased from 2,206,079 in 1901 to the maximum of 9,798,523 in 1918. Without definite information as to the character of the various articles concerned, it is apparent that these commodities were influenced by conditions similar to those dominating the manufacturing situation. Both classifications were affected by the agricultural situation, and bore witness to the expansion of the road to the manufacturing centres of eastern Canada and the United States.[164]

The number of feet of lumber carried[666] followed closely the number of tons of manufactured articles. It increased from 899,214,646 in 1901 to a maximum of 3,241,312,802 in 1918. The increase to 1904 was consistent and gradual. The number of feet carried increased more rapidly to 1907, but, influenced by depression and agricultural conditions, declined to 1909. Recovery was rapid to 1913. As in the case of manufactures, a rapid decline followed to 1915, and a rapid increase to 1917. In 1918 the hectic prosperity of an abnormal war situation caused a further increase, and a cessation of that prosperity a decrease in 1919. The following year brought a slight recovery which proved temporary with the decline to 1921. Again lumber was dominated by the agricultural situation and reflected the expansion of the road to timber areas.

The number of cords of firewood carried[667] increased from 204,818 in 1901 to a maximum of 339,631 in 1918. It increased rapidly in 1903, gradually in 1904, declined in 1905, recovered in 1906-7, declined rapidly in 1908-9, increased to 1912, declined to 1915, increased rapidly to 1918 except for a slight decline in 1917, and declined in[165] 1919 to 1921. Generally the amount of firewood carried depended on the availability of coal. In the depression of 1903-4 cord wood increased and the prosperity of the following years brought a decline. Again, in 1907-8 it increased. The rapid expansion of traffic to 1912 brought an increase in the use of firewood, but the decline started in 1913 and continued to 1915. The scarcity of coal and the war situation brought a rapid increase to 1918, and with the readjustment came a decline in 1919, continuing in 1921.

The expansion of the road, especially in western Canada, and the growth of traffic, were reflected in the rapid increase in train mileage, an increase which was significant again in view of a marked rise in the average train-load. The latter increased from 221·1 tons in 1901 to a maximum of 582·8 in 1917, an increase which was persistent and steady, with the exception of a decline in the years of 1904, 1911, 1918, and 1919. Gradual recovery was evident in 1920, but a decline followed in 1921. The importance of the grain traffic was apparent in the close correlation between the average train-load[668] and the number of bushels of grain carried. The total train mileage[669] increased from 18,181,415[166] in 1901 to a maximum of 51,832,790 in 1913. This increase was rapid and consistent, but was followed by a decline to 1915. The recovery in 1917 proved temporary. There followed a decline to 1918, an increase to 1920, and a decline in 1921. Freight train mileage[670] adheres to these fluctuations, with the exception of a slight decline in 1908 and in 1919, the number increasing from 10,415,831 in 1901 to a maximum of 27,611,103, in 1913. These fluctuations correlated closely with the amount of freight carried, except in the year 1917, in which there was an increase in freight carried, and a decline in train mileage—a situation explained largely by the decline in grain and the abnormal war situation in that year. Mixed train mileage[671] was of relatively slight importance, depending largely on the construction activities of the road and the strain on the company's resources incidental to the war. From 1902 to 1916 it increased from 1,390,876 to 2,098,825. As portions of the system were constructed and developed, mixed trains were superseded by regular service, and the stationary character of mixed train mileage was an indication of the steady expan[167]sion of the road throughout the period. During the war and other periods of strain, there was evident an attempt to substitute a mixed service when the situation warranted.

Increased freight, and increased freight train mileage, necessitated increased equipment. The number[672] of freight and cattle cars increased from 20,083 in 1901 to 88,090 in 1914. The policy involved in the increase of this form of equipment was the resultant of difficult conditions. The heavy overhead costs entailed by an oversupply of equipment made necessary a policy involving few additions. At the same time the large car shops incidental to an expanding system obliged the company to spread the increase in equipment evenly over a number of years. The importance of grain as an item of traffic, and its marked fluctuations as a result of climatic variations, caused an additional complication. The company had to meet the peak load situation within the year, because of the importance of grain and the strong seaboard movement of traffic. The peak load over a series of years, occasioned by business cycles and business growth was a further difficulty. The consequent policy was one of steady increase, though to some extent influenced by particular conditions. As a result, during exceptionally good harvest years, considerable complaint was made by shippers because of a lack of cars. During the abnormal war situation the company possessed an oversupply of equipment. The number declined to 1916, and afterward increased slowly.[168]

The number[673] of conductors' vans was subject to similar considerations. Important factors were the number of freight train miles, the size of the freight trains, the size of locomotives and the proportion of through to local traffic. The number increased from 363 in 1901 to 1,427 in 1914, and declined to 1,324 in 1919. In 1920 a slow recovery had begun, but in 1921 the number remained stationary.

The increase in the number[674] of locomotives was dependent to a very large extent on the train mileage, the amount of traffic, and the capacity of the locomotives. From 1901 to 1915 the number increased from 708 to 2,255, and remained stationary to 1921. Locomotives proved more difficult than freight cars or conductors' vans to adjust to the demand situation.

Boarding, tool and auxiliary cars[675] were largely dominated[169] by the construction activities of the company, by increased mileage, and by increased traffic, which necessitated additional facilities. The number increased from 886 in 1901 to 6,901 in 1916, declined to 1919, and recovered slightly in 1920 and in 1921. The possibility of using these cars for other purposes made them much more susceptible to the company's control. In so far as they were capable of being changed to freight cars the number was to some extent dependent upon the supply of this form of equipment.

In general, equipment increased gradually and steadily during the early years of the period and rapidly during the years from 1909 to 1913, in which the increase in freight reached its climax. The depression which followed proved disastrous under these circumstances, and made it necessary for the company to resort to every possible expedient in adjusting equipment to the changed conditions. The success with which this was accomplished depended largely upon the character of the equipment.

Increase in equipment was accompanied by an increase of other services necessary to handle the rapid growth of traffic. These services were partly the result of an increase in passenger traffic, but the dominance of freight traffic was evident. With the development of traffic in the interior of British Columbia in the access to the various lakes and rivers, additional boats were acquired. A Pacific coast service was established in 1903 with the acquisition of twelve boats, and with the development of traffic on Vancouver Island and on other parts of the coast, additional boats were brought into the service each year. On the Atlantic coast two steamers were enlisted for the Bay of Fundy service in 1912 as a necessary supplement to the company's acquisition of roads in that area. The increase in through traffic stimulated, and was stimulated, by the improvements of ocean services. On the Pacific the Monteagle was added in 1906 and the Empress of Russia and the Empress of Asia in 1913. The pressure of traffic to the Atlantic seaboard made necessary provisions for an Atlantic ocean service. In 1903 the Beaver Line, consisting of fourteen steamships, was purchased from the Elder Dempster Company. The Empress of Britain and the Empress of Ireland [170]were added in 1906, the Cruizer in 1907, and the Medora, the Metagama, the Missanabie in 1915. In the same year the Canadian Pacific Ocean Steamship Services Company was organized, and the Allan Line of steamships, including eighteen boats, was acquired. During the war, several boats were purchased or requisitioned by the Admiralty, and others were lost. Provision for the replacement of these losses was made in the purchase of boats after the war. In 1921 several German boats were purchased and other new boats constructed, the total tonnage in that year being 438,604. Improvement of service accompanied the addition of boats. In 1903 a bi-weekly service from Montreal to London, and a weekly service from Montreal to Bristol and Liverpool were established. In 1912 a four-weekly service with the Ruthenia and the Tyrolia was organized between Trieste and Canada. This service conformed to an agreement with the Austrian Government permitting the Canadian Pacific to attach observation cars on State-owned railways through the Alps. On the Pacific, a Canadian-Australian service was added in 1903.

The elevator service at Fort William was improved, and with the change of terminus to Port McNicoll, new elevators were built at that point. In 1904 in connexion with the company's land holdings, and for the development of traffic, an important irrigation scheme was launched in Southern Alberta. The pressure of western traffic made it advisable for the company to control its own coal mines, and the competition in British Columbia made the development of other mines desirable. Important mines were early acquired in British Columbia, and in 1907 the company entered on an elaborate coal-mining policy. Integration of necessity accompanied the rapid increase in the traffic of the road.



F. Conclusion

The spread of western civilization, especially in the region roughly included in the Hudson Bay drainage basin, long delayed by the inhospitable barrier north of Lake Superior, led to the construction of technological equipment represented by the physical property of the road, and with its construction, was greatly hastened. Additions to this[171] equipment in the matter of branch lines and other forms of physical property were causes and effects of this rapid growth. This marked increase in the growth of civilization in the Hudson Bay drainage basin was accompanied by a continued growth in other areas in the Pacific Coast drainage basin and in the St. Lawrence drainage basin. This growth was again the cause and the effect of additions to technological equipment in those areas. Constant additions to equipment in the Hudson Bay drainage basin necessitated improvements and changes in equipment in the matter of double tracks, new roads and other forms of physical property in the drainage basins of the continent and particularly in the St. Lawrence drainage basin. The growth and character of the freight traffic carried during the forty years of the company's history from 1881 to 1921 were to a large extent indices of the effectiveness of the physical property of the road as a part of the technological equipment of western civilization in North America.[172]



V

The Freight Rate Situation

The growth of civilization attendant upon the expansion of the physical property of the road, and the development of traffic throughout the history of the road, largely determined, and were largely determined by, the freight rate policy of the company. Upon freight rate policy principally depended the earnings of the road and its possibilities of physical growth. This interdependence was particularly important with the large degree of freedom from regulation which the charter guaranteed. Article 20 of the Act of Incorporation declared: "The limit to the reduction of tolls by the Parliament of Canada provided for by the eleventh sub-section of the seventeenth section of 'The Consolidated Railway Act, 1879,' respecting tolls is hereby extended, so that such reduction may be to such an extent that such tolls when reduced shall not produce less than 10 per cent. per annum profit in the capital actually expended in the construction of the railway, instead of not less than 15 per cent. per annum profit, as provided by the said sub-section; and so also that such reduction shall not be made unless the net income of the company, ascertained as described in said sub-section, shall have exceeded 10 per cent. per annum instead of 15 per cent. per annum as provided by the said sub-section. And the exercise by the Governor in Council of the power of reducing the tolls of the company as provided by the tenth sub-section of said section seventeen is hereby limited to the same extent with relation to the profit of the company, and to its net revenue, as that to which the power of Parliament to reduce tolls is limited by said sub-section eleven as hereby amended."[676][173] This article was strengthened by article 15, which eliminated possible competition in an important section of western Canada. It declared: "For twenty years from the date hereof, no line of railway shall be authorized by the Dominion Parliament to be constructed south of the Canadian Pacific Railway, from any point at or near the Canadian Pacific Railway, except such line as shall run south-west or to the westward of south-west; nor to within fifteen miles of latitude 49. And in the establishment of any new Province in the North-West Territories, provision shall be made for continuing such prohibition after such establishment until the expiration of the same period." These guarantees of freedom from regulation were scarcely limited by article 24,[677] which ensured non-preferential treatment to Toronto and Montreal.

These provisions gave the company effective control of its rate policy, but such control was limited by various incidental circumstances, and was largely confined to areas which were not subject to competition. Rates in eastern Canada were regulated by competition from waterways and from other railroads, and the area in which the company could exercise its control was consequently limited to western Canada. Geographic features made inevitable the competition in eastern territory and the competition with American roads for transcontinental traffic. Lower rates, and the large overhead charges incidental to the long stretch of unproductive territory north of Lake Superior, necessitated strenuous efforts to direct traffic over this long stretch of[174] line, and to make the non-competitive area of western Canada as productive as possible. These efforts of the company to direct traffic over the line east of Winnipeg for obvious reasons received the support of eastern Canada. An application for a charter for the Emerson and Turtle Mountain Railway[678] was earlier refused on the ground that it would divert traffic through the United States. An order in council of April 18, 1879, expressed the opinion of the Government that it was "very desirable that all railway legislation should originate here, and that no charter for a line exclusively within the province of Manitoba should be granted by its legislature without the Dominion Government assenting thereto." The monopoly clause of the Canadian Pacific Railway Company charter was a result of the same opinion.

The people of Manitoba naturally protested against the operation of this policy. On December 22, 1880, while the act of incorporation was under discussion, the Manitoba legislature formally objected[679] to the power given to the company to build lines or branches other than the main line, without obtaining permission from the Canadian Parliament, and to other features of the act. The Canadian Government replied through the statements of Sir John A. McDonald and Hon. Thomas White on the floor of the House of Commons that the Dominion Parliament possessed no power over Manitoba, and that nothing prevented that province from granting a charter for a railway from Winnipeg to the boundary. It was explained that the contract only prevented[680] American roads from tapping the line in the prairie section west of the Manitoba boundary. Accordingly the Manitoba legislature incorporated three railways: the Winnipeg South-Eastern Railway, with power to construct a road running south-east to the boundary and to amalgamate with other companies; the Manitoba Tramway Company, with power to build tramways along all public highways and across any land; the Emerson and North-Western Railway Company, with powers to construct a line from Emerson to Mountain City and thence to any point on the western boundary of the province, and to lease[175] other roads. The Canadian Pacific Company[681] protested to the Dominion Government that these charters were in violation of its rights, and pleaded the interests of the Dominion in sustaining traffic to support the long unprofitable line along the north shore of Lake Superior. Consequently the Government disallowed,[682] first, the charter of the South-Eastern Railway, and later the charters of the other two companies. Manitoba temporarily accepted this verdict, recognizing the inadvisability of interfering with the company when all its energies were directed to the construction of the main line.

The question was a source of continual trouble. The rates first charged by the company in western Canada were those used by the Government before the transfer of the road. This tariff was a straight distance tariff, with four classes of rates for merchandise and seven special classes. The local mileage rate was a direct mileage rate, with an even spread and little discrimination. With an increase in distance the rates increased less rapidly and the spread between the classes of rates more rapidly. In general, the special classes[683] were designed to promote settlement.[176]

Still lower rates[684] were given on settlers' effects. Immigrants movables C.L. (car load) were given one-half the special rates of the sixth class, and L.C.L. (less than car load) were given one-half first-class rates. In continuance of this policy of adjusting rates for the development of traffic, immigrants were given through tickets at one and a half cents per mile. On March 23, 1883, the company with the Government's approval introduced[685] a new and higher tariff constructed along the same lines. It was adjusted with low rates on immigrant's effects, on coal, cordwood, lumber and grain, as was the earlier tariff. It was considerably higher than the tariff in eastern Canada, but ostensibly justified on the grounds of increased costs of operation—in the west fuel was cited as 110 per cent. higher than in eastern Canada, labour 45 per cent., and general supplies 60 per cent.—and of the heavy overhead charges occasioned by the fact that the country was very sparsely settled.[686]

To this new schedule the Winnipeg Board of Trade objected. It was held that rates should not be made to cover the cost of operating the railroad, and in a letter to the company of March 20, 1883,[687] it was claimed that liberal terms had been given the company by the Government because it was expected that the road would be run at a loss. High rates meant high prices on commodities, and consequently were injurious to the trade and growth of the country, and therefore reacted to the company's own detriment. The old rates were regarded as sufficiently high, and an additional average increase of 59 per cent.[688] was[177] predicted to be disastrous. Turning to the particular, Winnipeg had its own grievances. It complained that the company had led its merchants to expect low rates from Winnipeg to Thunder Bay during the navigation season, so that they could lay in large stores at a moderate cost, and so that Winnipeg could become a distributing centre. This was expected to redound to the advantage of the company, as a large distributing point would provide the railroad with labour and materials at a reasonable price and give it a constantly increasing traffic. The new tariff, on the other hand, was practically a discrimination against Winnipeg as a distributing point. Goods bought by Winnipeg merchants were increased in price an average of nearly 20 cents per 100 lb.[689] and this, plus 4 cents per 100 lb. for transportation each way between the distributing house and the station, made a total increase of 28 cents per 100 lb. above the cost of direct shipments to such points as Brandon, Portage la Prairie and Regina. It was shown[178] that the new Canadian Pacific tariff was 65 per cent. higher than the winter rate on the Grand Trunk (the lowest rate on that line) for an equal distance, and that the Grand Trunk special tariff for manufacturers and wholesale merchants was lower than the ordinary fourth-class rate of the Canadian Pacific. The remedy proposed was a special tariff for goods shipped to local points from Winnipeg.

These complaints, though producing no immediate results, were significant protests against the exercise of the company's power to adjust rates in a non-competitive area. The exercise of this power was evident in other directions and with similar results. A special east-bound grain rate, adopted January 5, 1884,[690] was designed for the purpose of drawing traffic over the line from Winnipeg to Port Arthur and of preventing its diversion to St. Vincent on the American boundary and over American roads. The rate to Port Arthur on a mileage basis was much lower than the rate to St. Vincent, and consequently had a tendency to draw traffic by the Port Arthur route. On March 16, 1886, the Manitoba and North-west Farmers' Alliance and People's Rights Association, in a meeting at Brandon, accused the Canadian Pacific of a pooling arrangement with the St. Paul, Minneapolis and Manitoba Railway, which gave the latter 12 per cent. of the east-bound traffic receipts of the Canadian Pacific Railway to induce[691] it to refrain from taking produce to the market at lower rates. It was alleged that the charge was 4 cents per bushel on wheat exported. This accusation was denied by the company in a statement which explained that the lack of competition was due to the fact that no[179] road could carry wheat at Canadian Pacific rates without loss. The Canadian Pacific in comparing its traffic with that of American roads, published a statement showing the relative earnings for 1884, 1885 and 1886.

1884  1885  1886 
cents. cents. cents.
Freight per ton per mile 1·45  1·20  1·10 

Omitting the through traffic, the earnings in 1886 were 1·14 cents per ton per mile, which was much lower than those of American roads.

These difficulties were a part of a growing agitation against the monopoly clause which was carried on with more vigour after the completion of the main line. In 1883, in connexion with the charter of the Emerson and North-Western Railway, it had been held that a road could be incorporated for the people within the province, but not beyond its boundaries,[692] a connexion with foreign fines being contrary to the spirit of the B.N.A. Act, which protected the interests of the Dominion,[693] and in 1886 it was held that the Federal Government had the power to disallow roads connecting with lines outside the province.[694] The issue was definitely stated, and the people of Manitoba insisted that the policy of disallowance should be abandoned. In 1884 Sir Charles Tupper had stated[695] that it would be abandoned with the completion of the road. Several months had passed after its completion with no result. On March 4, 1887, Hon. Thomas White intimated[696] that it had been abandoned. Nevertheless, bills incorporating the Manitoba Central Railway and the Winnipeg and Southern Railway, passed April 19, 1887, were neglected[697] by the governor in council until August 9 and then disallowed. The Red River Valley Company was chartered, on June 1, 1887, to run from Winnipeg to West Lynne, and a contract was made on June 29 to build the road for $782,340. The work was started, but on July 6 the act was disallowed.[698] On June 9 a definite protest[699] had been adopted in a resolution of the legislature against the continuance of the policy. It stated that the province[180] had been prevented access to world markets, that excessive rates had crippled its energies, and that immigration had been deterred. The policy was characterized as an arbitrary exercise of the veto power and a violation of the spirit of the B.N.A. Act.

On September 12 the Canadian Pacific Railway declared[700] its position. It claimed protection from the encroachment of American lines on the usual ground that the enormous expense involved in the construction of the road from Lake Nipissing to Red River, nearly 1,100 miles of unproductive territory, entitled it to an advantage. It was urged that the interests of the older provinces should be protected in view of the expenditure made by them. The interests of 10,000 people of Manitoba were not to be allowed to prevail against those of 5,000,000 people of the Dominion. A plea was made that the company, recognizing a moral obligation, had expended over $5,700,000 on branch lines south and south-west of Winnipeg. The action of the Government of Manitoba in attempting to divert traffic by the construction of a road to the boundary was therefore characterized as unfair, unjust, and a breach of faith.[701] The company threatened, in a telegram to Premier Norquay, moreover, to move its principal western shops to Fort William, leaving nothing at Winnipeg but its ordinary division shops.

The Winnipeg and Brandon Boards of Trade, on October 1, replied in an open letter[702] to the shareholders of the Canadian Pacific Railway. They insisted that the B.N.A. Act did not impair the right of self-government, and that the Federal authorities had no right to disallow Manitoba railroad legislation. The president of the company had quoted the words of the contract "that the Dominion Government should not authorize a line running south." The actual words were "Dominion Parliament." Parliament could not give a pledge that the power of disallowance would be[181] exercised, since that power was a prerogative of the Crown over which Parliament had no control. The decision of the European and North American Railroad case was to the effect that it was within the power of a province to construct a railway to the boundary as a local road. The company was reminded of the fact that Winnipeg had given it a bonus of $200,000, a free right of way worth $20,000, exemption of all its property within the city from taxation for ever, and the Louise bridge, costing $250,000. Further, the expenditures on branch lines undertaken, because of a "moral obligation," had been met by the proceeds of land grants and by assistance from the Provincial Government, and in any event the branches were remunerative. On October 12 the Executive Council of Manitoba[703] issued a formal protest in a memorial covering much the same ground.

To this the Canadian Government replied on January 4, 1888.[704] Its argument was related entirely to the interests of Canada. According to its interpretation the B.N.A. Act gave the Dominion exclusive jurisdiction over trade and commerce, and consequently over the powers of the province to build a road beyond its boundaries. The monopoly clause was essential to the construction of the road, and without the road the western provinces would be dependent on American lines for six months of the year. The company had built the road before the allotted time at an increased expenditure, and a fortiori was entitled to protection. The Government of Manitoba had moreover agreed to the rights of the Dominion to disallowance at different periods, as in the extension of the boundaries of the province it had acquiesced in the policy by allowing the new territory to be subject to all provisions enacted respecting the Canadian Pacific. It was inconceivable that the great interest of the Canadian Pacific in the development of the country should permit it to sanction any step which would retard prosperity. It was charged that the Northern Pacific was behind the whole movement to strike the Canadian Pacific in the center with a line to Winnipeg, and to control, through competition, transcontinental traffic.[182]

Manitoba was insistent. The company refused to yield. Finally the Canadian Government gave way.

On April 18, 1888, an agreement[705] was made between the Government and the Canadian Pacific providing for the cancellation of the monopoly clause. In consideration, the Government agreed to guarantee the payment of interest on a new issue of bond by the company up to $15,000,000, the principal to be payable not later than 50 years and the interest payable half-yearly at 3½ per cent. per year, the bonds to be secured by the unsold lands of the company. The proceeds from the sale of lands and the interest on these proceeds were used to constitute a fund to satisfy the principal of the bonds and to pay the interest on them. The land grant bonds of the former issue held by the company, $4,000,000, were to be destroyed, and the mortgage, created under this agreement, to become subject to the land grant bonds in the hands of the public, $3,463,000, although the sums due for lands already sold, $1,200,000, were to be applied toward the payment of bonds outstanding. The proceeds from the sale of the bonds were to be spent according to a definite schedule: first, for capital expenditure on the main line between Quebec and Vancouver in buildings, snow sheds, sidings, permanent bridges, filling trestles, reducing grades and curves and other improvements, and on vouchers and pay rolls, $5,498,000; second, for required rolling stock, locomotives, box cars, passenger cars, flat cars, tool cars, etc., $5,250,000; third, for required improvements on the main line, elevators, bridges, locomotive shops, sidings, docks, lake and coast steamers, the remainder, $4,252,000. Provision was made for an increase in the expenditure for the third class, and a corresponding decrease in the other classes. The company was given authority to lease its line from St. Boniface to the American boundary, and in the event of the construction of a line between the same points with the sanction of the Dominion Government, to cease operating either one of its two lines between those points.

Cancellation of the monopoly clause did not fulfil expectations, as was evident in renewed and later complaints. On[183] November 15, 1894, a Railway Rates Commission was appointed to investigate the situation. In its report[706] of May 7, 1895, the position of the Canadian Pacific was largely supported. It agreed "that density of population, with volume of tonnage carried, with a fairly even balance of loaded trains hauled in both directions, are the most important factors in determining what are reasonable rates." Conclusions were supported on the basis of comparisons made with American roads operating under similar conditions with similar commodities and between points of similar characteristics. It found that the Canadian Pacific gave lower grain rates than such roads. This was also true of livestock. Rates on coal were lower even than those given by roads operating in a coal area. Lumber rates were of the same favourable character, and although lumber was carried from British Columbia to Ontario at a lower mileage rate than to Manitoba, the western farmer had no ground for complaint. Agricultural implements were carried at a lower mileage rate. Merchandise carried over an all-rail route by the Canadian Pacific was considerably higher than that carried by American roads, but the Commission explained that about 80 per cent. of this business was carried by a lake and rail route on which a lower rate was given. The high price of clothing was attributed to the large profits of merchants rather than to high freight rates. Dairy products were carried at higher rates, but a blanket rate was given west of Winnipeg to Vancouver of $1.75 per 100 lb. The rate on cordwood was higher than that of the Northern Pacific, but equal to that of the Grand Trunk. Local rates, "it must be admitted," were higher than in eastern provinces, but the commission held they were necessary to pay the cost of transportation. On the same basis the high rates on branch lines were regarded as inevitable. The Commission referred all matters to the cost of transportation. Finally, it concluded with a statement made by the company to the effect that it held 18,000,000 acres of land and upwards of 3,000 miles of railway in the north-west, that its interests were identical with the interests of its patrons, and for this reason it could not subscribe to[184] any policy unfavourable to the settlers. A lengthy statement made by Vice-President Shaughnessy, stated that the company's prosperity was the result of its rigid economy, that the development of the west depended upon its financial standing, and that expenses of operation were higher in the west and consequently justified higher rates. In any case, the averages per passenger per mile and per ton per mile were much lower on the Canadian Pacific west of Lake Superior than on American roads in the same territory.

Obviously the report was of such a character as to give little satisfaction. It was not until 1897 that an act[707] was passed designed to meet the situation. In this act a subsidy was granted to the Canadian Pacific Railway for the line from Lethbridge through the Crow's Nest Pass to Nelson at $11,000 per mile to be paid on the completion of sections of ten miles of track. This was granted under several conditions: (1) the road was to be built through the town of Macleod; (2) when it was opened for traffic to Kootenay Lake the local rates and tolls on the railway and on "any other railway used in connexion therewith and now or hereafter owned or leased by or operated on account of the company south of the company's main line in British Columbia, as well as the rates and tolls between any point on any such line or lines of railway and any point on the main line of the company throughout Canada or any other railway owned or leased by or operated on account of the company, including its line of steamers in British Columbia, shall be first approved by the Governor in Council or by a Railway Commission, if, and when, such commission is established by law, and shall at all times thereafter and from time to time be subject to revision and control"; (3) a reduction to be made in the general rates or tolls of the company or its freight tariff (whichever was the lowest) on classes of merchandise west bound from and including Fort William and all points east of Fort William on the company's railway to all points west of Fort William on the main line or on any line throughout Canada owned, leased or operated by the company, whether the shipment was by all rail or lake and rail, the reductions being on all green and fresh fruits,[185] 33-1/3 per cent., coal oil, 20 per cent., cordage and binder twine, agricultural implements, iron, wire, window glass, paper for building purposes, roofing felt, paints, livestock, wooden ware and household furniture, each 10 per cent. A reduction was also stipulated for rates on grain and flour from all points on its main line, branches and connexions west of Fort William to Fort William and Port Arthur, and all points east, of 3 cents per 100 lb.

These restrictions and provisions for further regulation were followed by the appointment of a commission to investigate the whole problem. On February 10, 1899, Prof. S. J. McLean submitted a report on Railway Commissions, railway rate grievances and regulative legislation which was of an illuminating and convincing character. It was stated that communities in the north-west which had non-competitive rates found it advantageous to transport their produce by wagon to some point where competitive rates prevailed. "The development of the traffic of the distant manufacturer has been given an advantage over the home manufacturer." Rates to intermediate points in the north-west were fixed at the same figure or even higher than rates to the coast. "There is no doubt that the population and business of this section have not been allowed to move and develop in accordance with natural principles." The effect of competition could not be questioned. On May 1, 1887, the rates[708] from Winnipeg, Portage la Prairie and Brandon to Fort William on first-class freight were $1.33, $1.41 and $1.58 respectively. On October 28, 1888, after the opening of the Northern Pacific from Winnipeg to Duluth, rates between the above points were reduced to $1.16, $1.25 and $1.42 respectively. The rate to Regina, a non-competitive point, remained the same.

The whole situation was finally discussed in another report[709] of January 17, 1902, by the same author. "It is impossible to bring a car-load of oats on local rates from Portage la Prairie to Winnipeg." The Canadian Pacific had not always been influenced as was supposed by the best interests of the country. Distributive rates were[186] granted when the volume of business warranted, but withholding the rates checked development and increased the prosperity of the distributive point. Brandon and Winnipeg had struggled for distributive rates, and in the struggle the interests of the country had been sacrificed to the interests of the railroad. No regulation existed which ensured uniform development. A wide discrepancy was found between C.L. and L.C.L. from Winnipeg to points west and between other points—a discrepancy which favoured the wholesale distributing points. Disproportions were found in rates in the country west of Winnipeg, especially in the grain rates on branch lines. On some articles the freight charges were more than twice the cost of the article. Complaints as to minimum weights of car lots were sustained by facts. Through rates to the north-west were found to be ill-adjusted to the development of Canadian industry, and to interfere with the expansion of the trade of eastern Canada. Winnipeg complained of discrimination at Fort William, in which the Canadian Pacific gave lower rates to favoured lake carriers. As a result, and on the advice of the report, an act[710] was passed in 1903 establishing the Board of Railway Commissioners.

The establishment of a regulative body, and the control of this body, over the rates of the Canadian Pacific acquired in the Crows Nest Pass agreement seriously curtailed the freedom of the company in the determination of its rate policy. On the other hand, the regulation of rates by the Board of Railway Commissioners was destined not to prove a panacea[711] for the difficulties involved. The competitive character of rates in eastern Canada and on transcontinental traffic and the stretch of unproductive territory north of Lake Superior continued to necessitate the imposition of higher rates in non-competitive territory. As was stated in the Eastern Rates decision, "I am aware that an absolute parity is impracticable, but as conditions become similar reasonable parity ought to be obtained."[712] The rapidity with which conditions in western Canada were to become[187] similar to conditions in eastern Canada depended on a number of circumstances.

Competition in western Canada and consequently lower rates followed the construction of other roads, but the effectiveness of this competition was seriously lessened by the financial conditions of these roads. The Canadian Northern was started in Manitoba in 1896. In 1906 a system of more than 2,400 miles had been completed in the prairie provinces, and in 1916 this had been extended to over 5,000 miles. After the construction of its western system, and its connexions to Vancouver, this company made extensions eastward to secure control of eastern traffic and to secure an outlet to the Atlantic seaboard.[713] In 1916 it had a total mileage of 9,648, extending east to Quebec, and touching the important centres of Duluth, Toronto, Ottawa and Montreal. This achievement had been accomplished with a comparatively small land grant, $38,874,000 in subsidies, and the guarantee of vast sums of money by the Dominion Government. On June 30, 1916, the Canadian Northern passed the payment of interest on $25,000,000 of income debenture stock, and after charging interest against capital to the amount of $5,445,389, was $248,000 short of meeting its bonded indebtedness.[714] The Grand Trunk Pacific was provided for in two acts of parliament dated October 24, 1903.[715] A main line was to be built from Moncton to Prince Rupert, the section east of Winnipeg, by the Government, and leased to the Grand Trunk with Government assistance. The road was built and operated by the Grand Trunk Pacific from Winnipeg to Prince Rupert, 2,228 miles. The very high cost of the eastern section built by the Government and on which the company agreed to pay a rental, provided an excuse for its refusal to take over the line. For the year ending December, 1916, the Grand Trunk Pacific had a net income of $826,653 with which to meet interest charges of $8,846,544.

The weak condition of these transcontinental roads, largely occasioned by undeveloped western territory and[188] by the long unproductive lines north of Lake Superior, were of decided influence in limiting the powers of the Board with reference to the reduction of western rates. In the Western Rates case,[716] which was an attack on the general freight level of western Canada, the Board stated "that rates based upon the Canadian Pacific's power to stand reductions would inevitably bankrupt not only the Canadian Northern and the Grand Trunk Pacific, but for the future preserve the western provinces to that company in so far as any new companies or new lines were concerned."[717] "A railway is entitled to a reasonable surplus," and "rates should be considered, having regard to the traffic necessities of western Canada and a fair return to the carrier—apart entirely from any question of reserves of the company on the one hand, or the liabilities on the other."[718] In the decision of the 15 per cent. case[719] it was stated that "the Board's duty—is to control and adjust rates, having regard to the systems of railways that Parliament had authorized. The Board must take the railway ownership just as it finds it." In this case, having regard to the increased expenses, especially increased wages, the Board ruled that "subject to the limitation worked by the Crows Nest Agreement as extended by this judgment and to the specific conditions herein contained, the companies are permitted to raise their general rates 15 per cent., and make the specific advances herein allowed."

The Drayton-Acworth Report and its adoption in the amalgamation of the Canadian Northern and the Grand Trunk Pacific in the Canadian National Railways did not materially change the situation. Provision was made through an order in council,[720] following a continued increase in expenses and wages, for suspension of the Crows Nest agreement, and on August 1, 1918, increases were granted in railway freight rates in Canada similar to the increases granted in American territory under the McAdoo award. Nor is it probable that the co-ordination of all Government railways under one Board as proposed by the King adminis[189]tration will seriously affect the general problem.[721] Deficits have been met by the Dominion Parliament, but it is questionable whether Parliament will encourage increased deficits to permit the reduction of rates in western Canada. The gradual reduction of deficits through the development of traffic on the national railways, through the realization of various economies secured in the proposed co-ordination, and through the increase in traffic taken from the Canadian Pacific, may warrant a reduction of rates in western Canada, but prediction is dangerous. It is even more dangerous with the existence of the Canadian[722] and the American tariffs, which render competition from American roads in western Canada ineffective, and consequently strengthen the monopoly of Canadian roads in that area, and with the rise of the Progressive party, which this situation has largely provoked.

Although the Board has been limited in questions relating to the general rate situation in the north-west, it has exercised effective control over rates of a local character. Various decisions in rate difficulties of the east as of the west illustrate the extent of this control and the general policy of the Board. In the Almonte Knitting Company case a ruling[723] was given that higher rates were warranted on branch lines than on the main line, because of the increased cost of operation. Similarly in the Vancouver Eastbound v. Winnipeg Westbound rate case[724] it was held that the Company was justified in charging a higher rate on the mountain section than on the prairie section. In the case[725] of The Attorney-General of British Columbia v. The Canadian Pacific, it was requested that the province of British Columbia should be placed on the same favourable basis in respect to tolls[190] over the Canadian Pacific in that province as in other portions of the Dominion of Canada over the main line of that railway. The Board held, in reply to the argument that the national character of the road and the subsidies granted entitled British Columbia to this consideration, that it did not matter as to the land and money grants to the company, as nothing appeared in the contract requiring the company to establish and maintain over the whole line of railway when completed the same or similar tolls under different circumstances. The company was bound to charge the same or similar tolls at the same time and under the same circumstances only. The position of the Board, amplified in these decisions, was of significance in the leeway afforded the company in its determination of rates on branch lines and on sections of the main line. Similar freedom was given to the company in the establishment of developmental rates.[726] Again the Board placed the company under no obligation to meet competition from water routes.[727] It solved with commendable success, questions of discrimination in car-load rates,[728] in classification,[729] and in rates,[730] and every effort[731] was made to acquire facts essential to sound decisions.

Rulings and decisions of the Board of Railway Commissioners have to a large extent adjusted rate difficulties permitting the uniform economic development of western Canada, but the general rate question has been beyond control. Primarily, the rate situation in that area has been a monopoly situation. Competition has increased with the construction of new roads, but the difficult financial conditions of these roads, chiefly the result of the long stretch of unproductive territory separating eastern from western Canada, seriously lessen its effectiveness in the reduction of rates.[191]

The pressure of freight rates in western Canada as a non-competitive area has depended to some extent on freight rates on the lines of the company in competitive territory. Competitive transcontinental traffic became increasingly serious with the opening of the through line to Vancouver and the continual development of new connexions. The opening of the transcontinental line was followed by active competition with American roads for through business in both directions, between all Pacific coasts points and all points of the United States on or east of the Missouri River. The Canadian Pacific definitely attempted to compel American roads to grant differentials. Contending that the natural disadvantages of the road should be compensated by the privilege of offering to the public a lower rate, it engaged a steamer line from San Francisco to take shipments of freight on through rates to various points in eastern states. American rates, as a result, were lowered on April 27, 1887, and again on May 25. In January, 1888, an arrangement was finally made in which the Canadian Pacific became a member of the Transcontinental Association, and agreed with the other lines upon through rates considerably higher than those which previously prevailed,[732] although that road was given certain differentials on San Francisco traffic only—a differential of 15 cents per 100 lb. on first-class traffic, and of 5 cents on the lowest commodity class—from San Francisco to[192] St. Paul, Minneapolis and common points. From San Francisco to points further east the concessions were progressively larger—at Chicago, Cincinnati, Pittsburgh and New York—reaching at New York, Boston and Philadelphia, 28 cents first class and 5 cents lowest commodity class.[733]

With the exception[734] of limitations enforced by the Interstate Commerce Commission, this agreement persisted to 1897. The investigation of the committee, under the chairmanship of Senator Cullom, found that the differential given by the American roads to the Canadian Pacific on business to and from San Francisco remained in force except for the year from January 1, 1891, to January 2, 1892, when it was alleged that it had been dropped in consideration of a payment of a lump sum by American roads. With the constant improvement of through connexions on the part of American roads, the equilibrium was destroyed, and freight difficulties complicated with passenger difficulties led to a situation which made necessary the abolition of the agreement. Transcontinental traffic has remained of a competitive character, though disturbances occasioned by rate wars have practically disappeared with the increasing influence of regulative bodies in both the United States and Canada. The improvement of transcontinental facilities in the United States and Canada in the construction of railways and the opening of the Panama Canal has made the effects of competition even more serious.

Competition of through transcontinental traffic has on the other hand been much less serious than competition in eastern Canada and in trunk line territory. In 1889 the number of[193] car-loads going viâ the Canadian Pacific averaged twenty-nine per month, or one car per day, which was roughly the amount of traffic diverted from American lines.[735] In 1891 less than 1 per cent. of the competitive traffic was carried by the Canadian Pacific, and the gross earnings of the east-bound shipments of this road were 1·36 per cent. of the gross earnings of all roads on this traffic. Of the traffic originating in California, Oregon and Washington, the Canadian Pacific carried ·23 per cent. of the gross revenue. Of the traffic between British Columbia and Canada it carried 83·21 per cent. West-bound traffic to California, Oregon and Washington was slight. The proportion carried by the Canadian Pacific was ·81 per cent. The proportion carried between Canada and British Columbia was 86·28 per cent. The total east- and west-bound earnings of transcontinental traffic from Vancouver in 1891 were 12·7 per cent. of the total transcontinental traffic, the remainder being earnings on domestic traffic between Eastern Canada and British Columbia. In its share of traffic from China and Japan, the Canadian Pacific carried an average of 42 per cent. of the tea and 16 per cent. of the silk from 1887 to 1892, but this increase in tea shipments was more largely at the expense of the Suez Canal route than of the American routes. Since that time transcontinental traffic has greatly increased, but it still remains relatively unimportant.

Competition in eastern Canada and on trunk line traffic was more serious. On April 1, 1885,[736] the schedule of the Canadian Joint Freight Association was adopted by the Canadian Pacific and other Canadian roads in eastern Canada. According to expectations, the rates involved were considerably lower[737] on a strictly mileage basis than the[194] rates charged in western Canada. Frequent rate wars made stability impossible, and between competitive points rates fluctuated persistently and sank to lower levels. The American roads, in an attack on the Canadian Pacific, as a Government-subsidized road, first asked, by a resolution in Congress, for the abolition of the transit in bond system, but this was defeated by commercial organizations of various important American cities who registered their protests in no uncertain manner. An attempt in the 50th Congress to prohibit the importation of merchandise in bond through American seaports for Canadian markets was defeated by the same forces.[738] Propaganda was conducted in pamphlets, in the press, and on the floor of Congress. Mr. A. N. Towne, general manager of the Southern Pacific Railway, was a prominent figure in this hostility. The agitation was even reflected in the antagonistic attitude of President Harrison,[739] and a Senate committee on interstate commerce, under the chairmanship of Senator Cullom, was appointed to take evidence. Careful investigation revealed important facts.[740]

It was found that on several occasions rates of the Canadian Pacific between Minneapolis and St. Paul and New York and Boston were lower than rates agreed upon with the other roads. In January, 1891, the rate from New York to St. Paul was 15 cents below the agreed basis, and in April, 13 cents, and 23 cents lower than the all-rail trunk lines. Nor were these rates raised with the closing of navigation. The Canadian Pacific was undoubtedly the aggressor, but it was finally pointed out that the rates were not persistently under differentials claimed by Canadian roads, and in traffic from Boston and New York, American roads were in all cases a part of the through route. The routes viâ the Sault and viâ Chicago were competitive routes, and rates fluctuated at various intervals. Diversion of traffic from the Chicago route was unquestioned. Of flour shipped from Minneapolis, the percentage carried by the Chicago, Milwaukee and St. Paul decreased from 38·47 per cent, in 1884 to 12·53 per cent, in 1891. The percentage carried by the Soo[195] line increased from the date of opening in 1888 to 17 per cent. in 1892. The percentage of corn carried over the latter route varied from 70 to 85 per cent., of oats, rye and barley from 30 to 53 per cent., and of wool from 76 per cent. upward, although this increase was not entirely a diversion to the Canadian Pacific, since a large portion was hauled to Gladstone and shipped by the lakes to Buffalo. On through rates from Missouri River points to the seaboard the Canadian Pacific had frequently departed from the normal basis, but the southern American routes had been even more flagrant violators.

Competition for seaboard traffic was not confined to Canadian and American roads. It was also serious between Canadian roads. With the arrangements by which the C.P.R. received traffic from the Wabash at Detroit, it carried the inconsequential portion of about 3·4 per cent. of the total eastward dead-freight traffic from Chicago to the Atlantic seaboard. In 1892 the Wabash carried 10·9 per cent. of the total Chicago dressed beef, of which the greater portion found its way over the Canadian Pacific. As a result the Grand Trunk suffered a loss of 25 per cent. of its former share in this traffic. This investigation effectively answered the argument of Canadian domination in trunk line traffic and conclusively precluded the charges of American roads, proving as it did their inevitable complicity in Canadian criminality. Charges against the Canadian Pacific implied proof of innocence on the part of American roads in complying with the Interstate Commerce Law by maintaining their public through rates. The advantage of the Canadian Pacific lay in its ability to quote through rates without consulting other roads.

As with transcontinental traffic, competition has continued in Eastern Canada and on trunk line traffic, though rate wars have practically disappeared through the influence of American and Canadian regulative bodies. The effects of canal improvements and increased Great Lakes traffic, of the addition of railway facilities, and of the improvement of railway systems through the centralization of railway managements have been evident. The difficulties attending this competition were especially prominent during the war[196] and led to the decision[741] on June 9, 1916, of the Board of Railway Commissioners in the Eastern Rates Case, permitting an increase in rates in territory east of Fort William. Rates in this territory have been inevitably of a competitive character.

The essentially competitive character of Canadian Pacific transcontinental and trunk line traffic, which found expression in rate wars and which was later regulated by the Board of Railway Commissioners and by the Interstate Commerce Commission, was therefore of dominant importance in the determination of the company's rate policy. Low earnings or losses incidental to competition in this traffic made it necessary that higher rates should be charged in western Canada as a more or less non-competitive area. Conditions in eastern Canada and in western Canada were not such as to give a parity in rates. A change of conditions making possible this parity depends on a multitude of uncertain factors, but a reduction of rates in the immediate future is scarcely probable.



[197]

VI

Passenger Traffic

The general expansion of the physical property of the road, especially in western Canada, dominated, and was largely dominated by, the freight situation. The importance of western Canada made inevitable an unusually marked interrelationship between the freight situation and the passenger situation. The movement of population to that area preceded and followed the development of freight traffic. And in general the development of freight traffic stimulated, and was stimulated by, the development of passenger traffic.



A. Passengers Carried

The opening of the railroad to western Canada was followed immediately by immigration. During the first five months of Government operation of the road from the United States boundary to Winnipeg, 17,640 passengers[742] were carried. The next ten months, which included the summer months of 1880, brought an increase in the monthly average of passengers[743] carried from 3,520 to 7,560, and, despite an increase in mileage from 280 to 367, an increase in the monthly average of passengers carried per mile from 12·5 to 20·8. The first year of company operation which included the mileage in Eastern Canada and increased total mileage to 609, brought an increase[744] to 45·6 in the monthly average of passengers carried per mile. Rapid[198] increase, partly the result of the expansion of the road in eastern Canada, but largely dominated by expansion in the west, continued to 1890. The number of passengers carried[745] increased from 388,785 in 1882 to 2,685,730 in 1890—an increase which, with the exception of the years prior to the completion of the main line, was, if not steady, persistent. The number increased in 1899 to 3,818,857[746] and in 1920 to a maximum of 16,925,049. The increase was steady and rapid from 1890 to 1893 and was followed by a decline to 1895, a gradual recovery to 1897, and a rapid gain to 1900. Fluctuations were largely occasioned by the period of depression, by the grain situation, and by the Klondike rush in 1898. In 1887 an exceptional harvest had little effect on the passenger situation until two years later when there was a marked increase. Effects of the large harvest in 1892 were lost in the depression of the following years. The bountiful harvest of 1897 contributed to the increase of 1898 though the rate wars and the gold rush were of particular importance. The general upward trend which dominated the fluctuations continued as the result of the[199] opening of the west, and expansion in more thickly populated territory in eastern Canada and the United States. The increase to 1909, with the exception of a slight falling off in the last year due to the depression and the bad harvest, was steady and rapid. In 1910 it gained momentum and was unusually rapid in 1913. The beginning of the war brought a marked decline. A partial recovery was evident in 1917 as a result of the favourable agricultural situation in that year, but the increasing rates during the war and the transportation restrictions led to another decline in the following year. In 1920 recovery was in evidence, but the following year brought a decline. In general the passenger situation was dependent on the freight situation and particularly on the agricultural situation. The rapid increase from 1900 to 1913 was, to no small extent, dominated by the expansion of western Canada.



B. Train Mileage

Increase in the number of tons of freight carried was largely reflected in the freight train mileage. Passenger train mileage was not as dependent upon the number of passengers carried. Passenger train mileage was related to the development of the system, to the adoption of passenger schedules, and to the essentially large element of fixed charges characteristic of passenger equipment, and was less elastic to the demands of traffic than freight train mileage. As a result of the nature of the relationship between passenger miles and the extension of the system the number of passenger train miles[747] increased rapidly from 317,841 in 1882 to 4,566,758 in 1890. The acquisition of lines in the east and the construction of lines in the west occasioned persistent fluctuations throughout the period. In 1899 the[200] number increased[748] to 7,441,828 and in 1921 to 18,931,622. The years from 1890 to 1893 were characterized by a gradual but steady increase, to 1895 by a decline, and to 1900 by a rapid recovery. Decreased traffic during the depression was accompanied by a decline in train mileage, and increased traffic with increased railway mileage during the end of the decade was accompanied by an increase in the number of train miles. From 1900 to 1913 increase in passenger train mileage was rapid and steady with no fluctuations such as characterized freight train mileage in the same period. Increased traffic and increased mileage necessitated a constant increase in the number of passenger schedules. On the other hand the element of fixed charges peculiar to passenger equipment operated as a constant check to a rapid increase. Constant pressure was exercised to prevent an undue expansion of equipment and of train mileage. Partly as a result of these efforts an increase in traffic in 1914 was accompanied by a decrease in train mileage, but passenger mileage decreased less rapidly than traffic following 1914. The rapid increase in 1916 and 1917 in traffic was accompanied by a relatively slight increase in train mileage, though undoubtedly the situation was complicated by war-time restrictions. Passenger train mileage was dominated by several factors, of which traffic, mileage, inelastic schedules, and overhead charges were most important.



[201]

C. Passenger Equipment and Services

The importance of overhead charges can be more adequately appreciated in a discussion of equipment. At the end of the first five months of Government operation the road possessed two first-class passenger cars and one baggage car. In the next ten months this number was increased by an addition of four first-class cars and two smoking-cars.[749] From 1882 to 1890 under company operation[750] the first-class cars increased from 46 to 125, the second-class cars from 18 to 146 and the baggage, mail and express cars from 25 to 135. Second-class cars increased much more rapidly than first-class cars, surpassing them in number in 1888. This situation was evidently a result of the company's immigration policy and of the policy of converting older first-class cars to second-class cars, to reduce overhead charges. Baggage, mail and express cars were dependent upon increase in passenger schedules. The relatively rapid increase of this form of equipment was significant of the development of local service. First- and second-class cars increased[751][202] from 461 in 1890 to 627 in 1899 and to 2,191 in 1921. From 1891 to 1893 increase in passenger traffic and in mileage was accompanied by an increase in equipment. In the depression of the following years, with a slight increase in mileage, a decline in traffic and financial difficulties, equipment remained practically stationary. The rapid increase in traffic in 1898 brought a rapid increase in equipment in that year, and occasioned a very slight increase in the following year. The decade, with the exception of fluctuations due to the depression, was characterized by a general increase in equipment, in traffic and in mileage. The strong upward movement evident toward the end of the century continued to 1913. A rapid increase in mileage and in traffic led to a rapid increase in equipment. Traffic and mileage were determining factors. Years characterized by a slight falling off in traffic were characterized by the addition of a smaller number of cars. In 1904, in 1905, and in 1909 a slight falling off in traffic was accompanied by a slight decline in the rate of increase in equipment. The effect of the inelasticity of passenger schedules and of the difficulties of overhead cost were shown particularly in the war period. Following a rapid and steady increase of traffic, of mileage and of equipment to 1913, a slight falling off in traffic in 1914 and a decline in 1915 were accompanied in both years by an increase in equipment. During the remainder of the period, traffic with some fluctuations recovered, but in 1920 the number of first- and second-class passenger cars was the same as in 1914. In 1921 the number of these cars recovered to the high level of 1917. Inelasticity in passenger schedules made it impossible for the company to adjust the number of cars to actual traffic demands. It was evident that during the period ending with 1913 the company was under equipped—a situation partly the result of the rapidity of the expansion and partly the result of the desirability of reducing overhead charges. The wisdom of the course was justified during the war period when slight increases could be made despite a decrease in traffic. A decline to 1920 with an increase in traffic and an increase in 1921 with a decline in traffic illustrate the difficulties of adjustment.[203]

The problem of adjusting supply of equipment to demand was even more acute with first-class sleeping- and dining-cars and equipment more generally necessary for the conduct of tourist traffic, although the peculiar character of the road's territory, to some extent, rendered these forms of equipment as essential as passenger cars. From 1889 to 1899 the number of first-class sleeping- and dining-cars increased from 56[752] to 113 and in 1921 to 539. Passenger cars were more directly influenced by an expansion of mileage, and establishment of service on branch lines. Sleeping- and dining-cars were confined more generally to through traffic and consequently were not as dependent on mileage as on through connexions. During periods of expansion which were coincident with periods of prosperity, the number increased most rapidly as from 1889 to 1892, 1898 to 1903, and from 1906 to 1913: During periods of depression the number remained stationary as from 1894 to 1897, in 1904 and 1905, and in 1914 and 1915. In the later years of the war the number actually decreased. Tourist traffic, dependent on periods of prosperity, was liable to considerable fluctuation. Consequently it was unusually difficult to adjust the supply of equipment to the demand. On the other hand the schedules were more elastic than the regular passenger schedules. The decline during the war period suggests the possibility of adjusting this equipment to other purposes. On the other hand, the increase in 1921 with a decline in traffic suggests conclusions of a different character.

Parlour cars, official and paymasters' cars are unfortunately classified together, but parlour cars were undoubtedly also largely subject to the demands of the tourist traffic. From[204] 1889 to 1899 the total number[753] of all cars classified under this head increased from 22 to 33 and in 1921 to 124. The number of official and paymasters' cars was directly related to the company's policy of administration and to the expansion of mileage. During periods of depression the number remained stationary, as from 1893 to 1897. The unusual demands of passenger traffic in 1898 for increased cars led to a decrease. The general increase in traffic and in mileage from 1901 to 1913 and especially in 1912 and 1913 led to a marked increase in the number of these cars as of other equipment. During the war period the number rapidly increased in 1917 but remained practically stationary to 1921. The difficulty of adjusting this type of equipment to the demand was very much lessened by the possibility of converting it to the use of other passenger traffic.

The increase in passenger traffic and the consequent increase in passenger train mileage and in passenger equipment made necessary an increase in other facilities essential to the handling of this traffic. Many of these facilities, as in the case of steamship services, were developed largely in response to the demands of freight traffic, but passenger traffic was of considerable importance. Facilities necessary for passenger traffic were constantly extended. In 1888 in connexion with tourist traffic, hotels were built at Banff and Vancouver.[754] Later hotels were erected and improved at Victoria, Winnipeg, Caledonia Springs and other points strategic for the handling of this traffic. The construction and improvement of stations throughout the whole history[205] of the road was generally a result of the demands of passenger traffic.



D. Passenger Rate Policy

Growth of passenger traffic, and expansion of physical property, essential to the conduct of this traffic during the history of the road, as with freight traffic, largely determined, and was largely determined by, the passenger rate policy. The factors which determined the freight rate policy were largely determinants of the passenger rate policy. The rapid development of western Canada which occasioned a developmental freight rate policy during the early years of the company's history occasioned a developmental passenger rate policy. Immigration was essential to expansion. The Government passenger rate in western Canada adopted by the company in these first stages of the history of the road was three cents per mile, but immigrants were given through tickets at one and a half cents per mile.[755] In the tariff adopted by the company on March 23, 1883,[756] consistently with a general increase, the rate was raised, on branch lines, and on the line from Brandon to the crossing of the Saskatchewan River, on which traffic was light, to four cents per mile. On other portions of the western lines it remained at three cents. Immigration rates continued to be much lower and in a resolution[757] of June 9, 1885, the company was given permission to grant special rates for the promotion of emigration from the United States to the North-West, even to the point of carrying passengers free from Emerson or Gretna, to points on the railway, in order to counteract fully the adverse efforts of American railways. These tariffs were testimonials to the necessity of the development of the west from the standpoint of passenger traffic and of freight traffic, but they were also testimonials, in the high local rates, to the fact that western Canada was a non-competitive area. As with the freight situation, competition on transcontinental passenger traffic and on eastern passenger traffic was inevitable. With these competitive areas and[206] the consequent reduction of rates came the necessity for increased rates in non-competitive areas.

The inelastic character of passenger traffic and its particular difficulties with reference to overhead charges, tended to make competition more severe than that characteristic of freight traffic. The Canadian Pacific in its negotiations in 1887 with American transcontinental roads successfully claimed a differential of $10 and $5 on first- and second-class tickets respectively between the Pacific coast and Chicago and points east. It was an intermediate carrier receiving an unduly low share of the total receipts and it was alleged, considering the commission paid by the railroads to ticket agents, that this road actually carried second-class passengers at a loss. The number of transcontinental passengers carried was small, though its percentage of California traffic, as a result of the rate situation, increased from 1·24 per cent. in 1889 to 3·06 per cent. in 1892. The Pacific steamers started in 1891 greatly strengthened the road's control of Oriental trade. Canadian immigration restrictions gave the company an increased share of the Chinese passenger traffic. Moreover, a transcontinental British route was favoured by British travellers. This gradual change[758] in the situation made the compromise agreed upon by the transcontinental association in the granting of differentials impossible. In 1893 the Great Northern Railway was opened for business between St. Paul and Seattle. In the completion of this road, the Canadian Pacific lost its connexion viâ Winnipeg with St. Paul, since the St. Paul, Minneapolis and Manitoba Railway was a part of the Great Northern, and with it the differential through the St. Paul and Port Arthur gateways. The hurried extension of the Minneapolis, St. Paul and Sault Ste. Marie from St. Paul to a point on the main line of the Canadian Pacific near Moose Jaw served as a substitute, but competition was unavoidable. The Great Northern reduced its fares from St. Paul to Puget Sound points from the regular tariff rates of $60 first class and $40 second class to $25 and $18 respectively. This cut-throat competition was terminated by an agreement dated February 1, 1894, stipulating that the Canadian Pacific should[207] be given train service into Seattle, Tacoma, and Portland, in return for waiving its claim to a differential over the Great Northern from St. Paul, and for certain facilities in the way of train service to Vancouver. In 1895 a transcontinental association was formed in which this agreement between the Canadian Pacific and the Great Northern was recognized and the amount of the differential through the Port Arthur gateway reduced from $10 to $7·50 first class, and continued at $5 second class. The decision of the Trans-Missouri rate case led to the dissolution of the association and with its dissolution the Northern Pacific and the Great Northern claimed the differentials were no longer valid. Unable to persuade other roads through the fear of rate disturbances, lower rates were not published but tickets were sold for less than the published rate by increasing the commission given to ticket agents in the expectation that the commission would be divided with the purchaser of the ticket. As a result the Canadian Pacific did not receive its share of the traffic in the Klondike rush of 1898 and on inquiry discovered the cause of the trouble. A rate war was the result. The Canadian Pacific asked that the question be settled by arbitration, but the Great Northern refused. The subject came before the Interstate Commerce Commission as a result of a request of American roads for aid in the continued suspension of the long and short haul clause. In the discussion of the right of the Canadian Pacific to a differential, which was the heart of the question, it was found that the distance from Boston to Vancouver was fifteen hours and from Boston to Seattle twenty-nine hours shorter by the American lines than by the Canadian Pacific. The actual distance did not warrant this discrepancy, the distance from Boston to Seattle being 3,240 miles by the American lines and 3,323 miles by Canadian Pacific, and from Boston to Vancouver 3,346 miles by American lines and 2,935 miles by Canadian Pacific. The claim of the Canadian Pacific was weakened further since the time from Boston to Vancouver by the "Soo" line was 127 hours and by the main line 140 hours, and the time from Boston to Seattle by the "Soo" line was 131 hours and by the main line 144 hours. Finally the Canadian Pacific[208] agreed to accept the ruling of the commission, and abandoned its claim to a differential.

Transcontinental competition was complicated with, and additional to, competitive difficulties on the eastern section of the road. In the investigation[759] of Senator Cullom's committee it was alleged that by lower rates and by the payment of commissions to agents the Canadian Pacific had received an undue share of the traffic from points in the eastern states to St. Paul and Minneapolis. For five months ending July 15, 1892, the Canadian Pacific had carried over 75 per cent. of the European immigrants destined for the western states, American roads connecting with the Canadian Pacific having received their full local rate and the loss being borne by that company. On east-bound traffic it was found that the differentials offered by the "Soo" line were such as to compel lines west of Chicago to leave that line in absolute control of the field. This competitive situation became more serious with the transcontinental controversy. The Grand Trunk had been particularly active in securing working connexions with American roads and consequently became involved. As a competitive measure, it cancelled[760] the agreement permitting the Canadian Pacific cars to be run over the Toronto and North Bay route, making it necessary for these cars to follow the circuitous route over the Canadian Pacific line by Smith Falls—refusing to carry Canadian Pacific traffic at the rate of $14 per 12-ton car for 206 miles and demanding $21. Toronto traffic for the Pacific coast was forced, in this way, to travel an additional 150 miles. As a counter-measure, the Canadian Pacific proceeded to deny the right of the Grand Trunk to sell tickets on even terms between Toronto and Winnipeg although the Canadian Pacific had the shorter route. Further, rates were cut one-half on all competitive points between Montreal and Toronto. Considerable loss to both roads was the result. Eventually an agreement was signed restoring rates to their old basis and permitting the Canadian Pacific to run cars over the Grand Trunk line from Toronto to North Bay.[761]

In general, therefore, with the exception of greater com[209]petition occasioned by the importance of fixed charges, the passenger rate situation was dominated by factors similar to those which dominated the freight rate situation. Inevitable competition on international traffic, and on Atlantic seaboard traffic, and consequently increased pressure toward higher rates in western Canada as a non-competitive area, influenced the passenger rate situation as it did the freight rate situation. The organization of the Board of Railway Commissioners due to these circumstances and the effects of consequent regulation discussed in relation to freight rates pertained generally to passenger rates.



[210]

VII

Earnings from Operations

A. Freight Earnings

The amount of freight carried and the freight rate policy of the company were factors directly reflected in freight earnings. This item was of dominant and increasing importance as a constituent of gross earnings. The percentage of freight to gross earnings increased from 57·5 per cent. in 1882, to 60·6 per cent. in 1890, to 64·1 per cent. in 1899 and to 66·7 per cent. in 1921. Gross earnings during the first five months of Government operation totalled $104,976,[762] an average of $20,995 per month, and in the next ten months, increased to $291,498,[763] a monthly average of $29,149. Under Canadian Pacific management on June 30, 1882, it had increased to $1,546,214, or a monthly average of $110,443. In 1890 this had increased tenfold to $15,572,986,[764] in 1899 to $29,230,038 and in 1920 to the maximum of $216,641,349. Gross earnings per mile increased with considerable fluctuation from $2,529 in 1882 to $3,062 in 1890, the fluctuations varying with fluctuations in mileage and in earnings. The expansion in mileage more than offset the increase in earnings to 1884. A more rapid increase in earnings brought an increase in gross earnings per mile to 1888, and a more rapid increase in mileage, a decrease to 1890. Gross earnings per[211] mile[765] increased from $2,989 in 1889, to $4,176 in 1899 and to $14,357 in 1921. With the rapid increase in mileage this increase was an excellent index to the growth of traffic and to the intensive development of the road. Fluctuations were occasioned generally by earnings rather than mileage. To 1896 the depression acted as a decided check, but following that year the increase was steady and rapid. In the following period the expansion of earnings and of mileage was singularly rapid, but of earnings more than mileage. The highest point was reached in 1913 and was followed by a decrease in 1914 accentuated by increased mileage. The serious decrease in 1915 was the result of a decline in earnings, and the recovery in the remainder of the period was largely due to stationary mileage.[766] In conclusion, fluctuations in[212] gross earnings followed closely fluctuations in freight traffic. The steady increase to 1891, the stationary period to 1893, the decline in 1894-5, and the strong recovery toward the end of that period were movements characteristic of the amount of freight carried and of gross earnings. In the later period the rapid increase to 1907, the decline in 1908, the strong rapid movement culminating in 1913, the rapid decline in 1915 and the recovery to 1917 were similarly movements characteristic of both items. The increase in rates during the war brought an increase in gross earnings but a decline in freight carried in 1918 and 1919. To 1921 fluctuations in freight carried were concurrent with fluctuations in gross earnings.

Without exception fluctuations in gross earnings were closely paralleled by fluctuations in freight earnings. During the first five months of Government operation earnings from freight totalled $64,272,[767] a monthly average of $12,854, and in the next ten months $164,252,[768] a monthly average of $16,425. At the end of the first year under company operation, the monthly average was $63,598. In 1890[769] freight earnings had increased more than tenfold—an increase which was steady, except for the troublesome years from[213] 1883 to 1885 and the slight falling off in 1888-89. These earnings increased from $8,852,702 in 1889, to $18,738,885 in 1899, and to $128,849,446 in 1921.

Fluctuations in freight earnings paralleled closely the number of tons of freight carried and the number of tons of freight carried one mile. The number of tons of freight carried one mile[770] increased from 406,822,166 in 1885, to 1,208,014,731 in 1890, to 2,539,171,900 in 1899, and to 10,087,106,000 in 1921. The relation of the increase in the amount of freight carried to the increase in the amount of freight carried one mile is significant as evidence of the development of through traffic. To 1890 freight carried one mile increased rapidly with a relatively slight increase of the number of tons carried, affording direct evidence of the development of through traffic following the completion of connexions with the west and with through lines. With the establishment of these connexions and as a result of the depression of the nineties, the last decade of the century was characterized by a less rapid increase in the number of tons carried one mile. Local traffic became of more importance. The importance of this traffic increased after the beginning of the century. The number of tons carried one mile decreased more rapidly than the number of tons carried in 1904-5, and in 1909 the total number of tons[214] carried one mile increased much less rapidly than the total number of tons carried. On the other hand the importance of through traffic continued and increased. In 1907 the total amount of traffic carried decreased more rapidly than the number of tons carried one mile. The importance of grain was reflected in the amount of freight carried one mile and through traffic was largely influenced by the grain situation in western Canada, as was especially evident in the later period. In 1911 the falling off in the increase of freight carried one mile was due directly to the falling off in grain carried. In 1916 the rapid increase in the amount of grain carried was reflected in a more rapid increase of freight carried one mile than of the total freight carried. The importance of grain therefore introduced an elastic element in the number of tons carried one mile as compared to the number of tons carried. The general relatively greater increase in traffic carried than in traffic carried one mile was a striking tribute to the development of local traffic, resulting from the intensive development of the west and the expansion of the road in the east.

The growing importance of local traffic was more striking in the movement of traffic density[771]—a variable of mileage and of traffic carried one mile. Freight density increased from 93,781 tons in 1885 to 217,112 in 1890, to 362,738 in 1899, and to 750,305 in 1921, a particularly bad year. To 1890 the rapid increase in traffic density, despite a rapid increase in mileage, was evidence that important areas of traffic were being tapped with new lines, and being developed[215] with the old lines. For this the expansion of the road in eastern Canada and the connexions in the United States were responsible. The increase continued to 1892 with an increase in mileage. Adverse conditions of the period brought a decline to 1894, but more stationary mileage in the following year produced a favourable change. Local development of traffic to the end of the decade was evident in a marked increase of traffic density with an increase in mileage. The movement gained headway with the turning of the century and increased to 1903, but a decrease in traffic and an increase in mileage in the following year brought a decline. The succeeding years to 1913 with the exception of slight fluctuations were characterized by a strong upward movement of traffic density which was significant of intensive development. From 1913 to 1915 a decrease in traffic and an increase in mileage brought a rapid decrease in traffic density. The rapid increase in traffic in 1916 brought recovery. During the remainder of the period, the mileage being comparatively stationary, fluctuations were occasioned almost entirely by traffic. The later history of the road was characterized generally by a steady and marked increase in traffic density and by marked intensive development.

Lower rates were an additional partial index of the development of through traffic which accompanied this increase in local traffic. Earnings per freight ton mile[772] decreased from ·9 cents in 1889 to ·8 in the following year and to ·7 in 1896. This was partly the result of the increase in through traffic which accompanied the expansion of the road in the west. Grain, the most significant item of[216] traffic, steadily increased. From 1896 to 1910 the rate remained stationary, partial evidence of the growing importance of other commodities than grain, of the intensive development of the road and of the relative minor importance of through traffic. In 1910 grain and manufactures remained practically stationary and with the consequent decrease of through traffic, earnings per freight ton mile increased to ·8 cents. In 1916 the large harvest increased the amount of through traffic and the freight rate per ton mile decreased to ·6 cents. In 1918 grain and manufactures decreased, and the average freight charge per ton mile increased, the increase in this year and in the following years being complicated with changes in the rate situation incidental to the difficulties of the period. The general stationary character of freight earnings per ton mile throughout the whole period was the result of a close relationship between freight earnings and the amount of freight carried one mile. Fluctuations were due largely to the nature of the traffic, the development of the road, and the proportion of through to local traffic.

Freight earnings and gross earnings were largely influenced in the general increase and in the fluctuations by the agricultural situation in western Canada. The intensive development of the road was principally the result of the growth of the west, and the importance of through traffic depended largely on grain. The relation of freight earnings to grain and the western agricultural situation has been particularly important because of a rate policy which necessitated higher rates in western Canada. The growing importance of the west has stimulated, and been accompanied by, a marked development of the east, and an expansion of the road in that area which in turn has had its influence on earnings, and contributed to the intensive development of the road, characteristic of later years.



B. Passenger Earnings

The character and amount of passenger traffic carried and the passenger rate policy were factors directly reflected in passenger earnings. The character of the traffic as related to passenger earnings was largely the result of the[217] importance of local in comparison with through traffic, as shown in the relation of the number of passengers carried one mile to the number of passengers carried. The number of passengers carried one mile[773] increased from 116,702,980 in 1885 to 253,905,182 in 1889, to 397,417,473 in 1899 and to 1,373,928,588 in 1921. The importance of through traffic as a factor influencing the number of passengers carried one mile was evident particularly in relation to tourist traffic. Fluctuations were dominated largely by periods of prosperity and of depression which directly affected tourist traffic. Of more general importance was the expansion of the road, especially the development of through connexions and the opening of the west. With the completion of the main line, the establishment of connexions and the competitive advantages for transcontinental traffic, the number of passengers carried one mile to 1890 increased more rapidly than the number of passengers carried. The depression of the following decade brought a more rapid decline in the number of passengers carried one mile than in the number of passengers carried, and the recovery, a more rapid increase. The effects of the Klondike rush of 1898 in an increase of through traffic and of the number of passengers carried one mile were evident the following year in a rapid decline in the number of passengers carried one mile, but in an increase in the number of passengers[218] carried. This elasticity characteristic of the number of passengers carried one mile and largely the result of tourist traffic was illustrated in the depression of 1907-8. Passengers carried increased in 1908 but passengers carried one mile declined. Again, the beginning of depression in 1914 brought a decline in passengers carried one mile but an increase in passengers carried. The difficulties of 1920 produced similar results. Fluctuations, on the other hand, dependent on periods of prosperity and depression were not of dominant importance. The development and expansion of the road from 1901 to 1913 was accompanied by a rapid increase in the number of passengers carried one mile. Generally the development of through traffic was characteristic of the expansion of the road, of the completion of through connexions, and of the opening of the west.

The general increase of through traffic incidental to expansion and the intensive development of the road were reflected in passenger density, a function of mileage and passengers carried one mile. Passenger density increased from 26,902 in 1885 to 50,488 in 1889, to 56,787 in 1899 and to 102,196 in 1921.[774] The rapid increase in the number of passengers carried one mile and the slight increase in mileage to 1889 were reflected in the increase in passenger density and the rapid increase in mileage in 1890 brought a decline. Passengers carried one mile was responsible for the rapid increase in the next year, and increase in mileage for the decline in the two following years. Mileage remained stationary during the[219] period of depression and passenger density declined. The period of recovery and particularly the gold rush of 1898 brought a marked increase. From 1899 to 1901 density declined, in the first year as a result of passengers carried one mile and later as a result of mileage. During the following period of rapid expansion terminating in 1913, passenger density, with the exception of the years of depression 1904 and 1908-9, increased steadily and rapidly and despite a rapid increase in mileage. During the war a decline in passengers carried one mile and a relatively stationary mileage brought a decline in density. The number of passengers carried one mile explained the increase in 1919 and the decline in 1920 and in 1921. Passenger density throughout the history of the road generally had shown a marked increase and though subject to wide fluctuations due to the elastic character of a portion of the number of passengers carried one mile it was a significant index of the intensive development of the road. It was especially significant of the extent to which the inhospitable area north of Lake Superior had ceased to be a barrier to communication, and of the expansion of the west.

The importance of through traffic was also evident in earnings per passenger per mile.[775] From 1885 to 1890 earnings per passenger per mile declined from 2·4 to 1·7 and after considerable fluctuation reached the latter point again in 1899, but increased to the highest point, 2·9, in 1921. The development of through connexions, the influence of developmental rates, and the expansion of the road in[220] competitive areas brought a steady reduction from the date of the completion of the main line to 1893. The depression and consequent decline in through traffic brought an increase in 1894, but rate wars were disturbing factors. The Klondike rush brought a rapid decline in 1898, and the falling off in through traffic in the following year an increase. The decade was characterized by rate wars, depression, and declines in through traffic. Fluctuations were the result. The first year of the century brought an increase, and the two following years a decrease. In 1904 the rate increased to 1·8 and at this point remained until 1910, increasing in 1911 to 1·9 and remaining at that point until 1913. The rapid increase in through traffic was exceeded by the increase in local traffic. During the war years, with the exception of a decline in 1916, occasioned by the increased passenger traffic incidental to the large harvest of that year, rates increased steadily. The period beginning with the century was characterized by a general steadiness, as contrasted with the uncertainties of the previous decade, and reflected the influence of the Board of Railway Commissioners. The increase during the war period was partly the result of orders from this body, and partly the result of the decline of through traffic in proportion to local traffic.

The intensive development of the road, evident in the increasing prominence of local traffic, bespoke a marked and steady increase in earnings, through traffic being related more closely to fluctuations. During the first five months of Government operation of the line to Winnipeg, passenger earnings totalled $32,530, or $6,506 per month, and in the remaining period of Government operation, increased to $101,749 or $10,174 per month. The first year of company operation ending on June 30, 1882, and including the mileage of the road in eastern Canada, brought an increase to $596,825 or $42,630 per month. In 1890 passenger earnings[776][221] had increased to $4,526,292. This increase followed the expansion of the road in eastern Canada, the opening of the west, and the constant development of through connexions. In 1899 passenger earnings[777] increased to $7,098,097 and in 1920 to the maximum of $49,125,739. The decade ending in 1900 was characterized by fluctuations as the result of rate wars and especially of the depression. Beginning with recovery after this depression and ending in 1913, with the exception of slight falling off in 1904 and 1907-8, passenger earnings increased rapidly and steadily. Decline followed in 1914 and in the war years to 1916. With higher rates, increase and recovery were evident to 1920. Decline in passenger traffic brought the decline in earnings in 1921. Necessarily passenger earnings were the result of passenger traffic and passenger rates. The essentially competitive character of passenger business, the intensive development of the road resulting from expansion in the west and in the east, and the consequently greater proportionate increase in local traffic than in through traffic, and the passenger rates responsible for, and resulting from, this development, were reflected in passenger earnings. Through traffic essentially important as evident in the fluctuations was not dominant and declines were partly offset by the steadying influence of the Board of Railway Commissioners.

Through traffic was a determining factor in parlour-car[222] and sleeping-car earnings. These earnings[778] increased from $24,071 in 1883 to $268,097 in 1890 and to $721,006 in 1904. After 1904 statistics as to this item were included in miscellaneous earnings. The opening of the main line and the improvement of through connexions were responsible for the steady increase to 1890 as they were responsible for the development of through traffic. The importance of the situation in western Canada, and of immigration to that area, was evident in the slight increase in 1888 in consonance with the bad harvest of that year and in the rapid increase of 1893, following the heavy crop of 1892. The decline during the years of depression accompanied the decline in through traffic. A general increase in through traffic followed with recovery, and with the rapid increase in 1898 occasioned by the rush to the Klondike. A slight relapse from this hectic year led to a gradual and steady increase to 1904.



C. Miscellaneous Earnings

Other earnings, partly influenced by the passenger situation and partly by the freight situation, fluctuated accordingly. Express earnings[779] were presented from 1889 to 1904,[223] increasing during the period from $242,807 to $1,062,340. Without exception the increase persisted throughout the period, though it was less rapid during the years of depression and more rapid during years of recovery. This increase was eloquent of the inelastic character of the express business and of the continued expansion of the road. Miscellaneous earnings, including earnings from telegraph, grain elevators, the steamship service and other sundry sources, are difficult to analyse because of changes in accounting practice. From 1882 to 1890 this item[780] increased from $19,731 to $1,090,217, and in 1904[781] to $2,350,282. In 1905, with the inclusion of express earnings and parlour- and sleeping-car earnings, it increased to $4,469,544 and in 1921 reached the maximum of $20,713,980. Fluctuations were rapid and explainable largely on the basis of changes such as those incidental to accounting. The marked increase in 1885 was due to the addition of the boat service on the lakes and the decline in the following year to the completion of the main line and the transportation of traffic by rail. Changes of a similar character doubtless explain the marked decline in 1889 and the marked increase in 1890. Government[224] reports which reveal these wide fluctuations differ from the company reports which point to a steady increase with the exception of the decline in 1890. Specific causes of fluctuations are difficult to discover. Steamship earnings[782] were dominated by considerations similar to those which dominate freight and passenger earnings and with the expansion of steamship lines became increasingly important. Earnings from grain elevators were closely related to the harvest situation. Hotel earnings were subject to general conditions influencing through traffic and tourist traffic. With the depression, miscellaneous earnings declined rapidly. The importance of through passenger traffic was evident in the rapid increase in 1898 and in the slight decline in the following year. With the beginning of the century a rapid increase followed. The inclusion of express and parlour-and sleeping-car earnings in miscellaneous earnings after 1904 renders the explanation of fluctuations more difficult. To 1913 the increase was rapid and steady, which was generally the case with freight and passenger earnings, but in 1914 the increase continued and freight and passenger earnings declined. During the war years, with the exception of 1918 in which miscellaneous earnings declined, fluctuations were parallel. Though factors influencing the movements of freight and passenger earnings generally influenced miscellaneous earnings, other less elastic factors were in evidence.



D. Mail Earnings

Earnings from mails were significant of the place of the Canadian Pacific in the development of Canada. Mail and sundry earnings increased from $8,174 during the first five months of Government operation to $25,497 in the next ten months. Mail and express earnings during the first year of company operation totalled $39,274 and increased[783] to[225] $601,996 in 1890. Mail earnings increased to $618,385 in 1899 and to $2,939,259 in 1921.[784] To 1890 the increase was steady and consistent with the expansion of the road. The elections brought a rapid increase in 1891 and were followed by a decline in the next year. During the period of depression the increase was persistent though slow, receiving considerable stimulus in the election of 1896. The year following the election brought a decline. From that year to 1915 mail earnings constantly increased—slowly, at first, but with acceleration in the later years. During the war, 1915 brought a marked increase, 1916 a slight decline, 1917 another marked increase and 1918 a heavy decline. The overseas situation, elections and Government regulations involving taxation and other restrictions were largely responsible. The increase of the last two years is significant of general recovery. The general expansion had been occasioned largely by the expansion of the road and by the expansion of Canada, as well as by postal regulations which have made this expansion more directly contributory to mail earnings.



[226]

VIII

Expenses

A. Indices of Efficiency

Gross earnings, including earnings from freight and passenger traffic and from other sources of less importance, were largely the result of the expansion of traffic and of the rate situation. These factors depended upon in part, and determined in part, the efficiency of the road. Efficient operation was to a large extent responsible for the expansion of the road, and the expansion of the road made possible efficient operation. Rates were dependent upon efficiency of operation, and efficiency of operation was dependent upon rates. A partial index of efficiency was given in train mile earnings. Earnings per train mile[785] to 1890 were subject to unusual fluctuations, decreasing from 1·649 in 1882 to 1·391 in 1890. These earnings[786] increased to 1·58[227] cents in 1899 and to 4·89 in 1921. As a function of total train mileage and of gross earnings, train mile earnings fluctuated in accordance with fluctuations in these items. The rapid increase in total mileage from 1882 to 1884, proportionate to the increase in gross earnings, brought a decline in train mile earnings, and the rapid increase in gross earnings during the next two years, proportionate to the increase in train mileage, brought an increase. From 1886 to 1888 the increase in train mileage brought a decline, and to 1890 the increase in earnings brought an advance. In the following decade a further increase in earnings to 1892 brought a further increase in train mile earnings. During the years of depression to 1894 the movement of earnings and of train mileage was parallel, train mile earnings remaining the same. A decline in earnings in 1895 caused a movement downwards. Throughout the remainder of the decade, with the exception of 1898, in which year a greater proportionate increase in train mileage brought a decline, train mile earnings recovered rapidly. The advance continued to 1921, with the exception of declines in the depressing years of 1904, 1908 and 1915. The increase during the war period, with the exception of 1915, was largely the result of increased earnings the result of increased rates. Changes in the rate situation in the period following the depression of the nineties was to some extent, at least, the result of more efficient operation.

The adequacy of train mile earnings as an index of efficiency may be better understood from an analysis of freight train mile earnings and passenger train mile earnings. Freight train[787] mile earnings, as a function of freight train mileage and freight earnings, in the period ending in 1890, declined with considerable fluctuation from 1·633 in 1882[228] to 1·624 in 1890. They increased[788] from 1·33 in 1890 (Company reports) to 1·76 in 1899, and to 6·84 in 1921. Freight train mile earnings declined in 1883, advanced to 1886, declined again to 1888, and increased in the last two years. The rapid expansion of the road in 1883 in eastern Canada and in the west brought a rapid increase in train mileage and a consequent reduction of freight train mile earnings. In 1884 the increase in mixed train mileage offset a decline in freight train mileage, and contributed to an increase in freight train mile earnings, which continued to 1886. Though train mileage was adjusted in part to traffic—all evidence of efficient operation—the increase had a less favourable aspect because of the increase in mixed train mileage. The expansion of mileage in the following years and the bad harvest of 1888 brought a decline which culminated in the latter year. In the years to 1894 (with the exception of 1893 when earnings declined) traffic and earnings surpassed mileage—evidence that freight was handled more efficiently during a period of expansion. Inability to adjust train mileage to traffic was characteristic of the years of depression with the decline in train mile earnings from 1894 to 1896. The recovery during the remainder of the decade, which continued throughout the history of the road, with the exception of 1898, in which year through traffic increased, of 1904, of 1908 and of 1915, was followed by a rapid increase in train mile earnings. Over the whole period freight earnings increased more rapidly than freight train mileage, and only during years of depression was it found difficult to adjust freight train mile[229]age to freight demands represented in earnings. Imperfect as freight train mile earnings were as an index of efficient operation because of changes in the rate situation and because of increased freight rates during the war, the general increase warrants the conclusion that efficiency had rapidly improved, and that the company within reasonable limits was successful in adjusting train mileage to the traffic demands. The difficulties of adjustment were alleviated in part by the intensive development of the road which made it less dependent upon grain as the chief source of revenue. Bad harvests became less serious. Through traffic being less remunerative was less dangerous in its fluctuations. Depressions and their more serious effects on through traffic became less disastrous, and rendered train mileage more amenable to the company's control. Moreover, a period of rapid expansion was of decided advantage in this adjustment. Freight train mile earnings were to a large extent an index of the constantly improving efficiency of the road and of changing conditions which made greater efficiency possible.

Passenger train mile earnings, because of the more inelastic character of the passenger business, were less amenable to control. Earnings[789] per passenger train mile decreased from 1·877 in 1882 to ·992 in 1890 and to ·95[790] in 1899, and increased to the maximum of 2·81 in 1920. The earlier period was characterized by unusual fluctuations. The rapid increase in train mileage in 1883, as a result of expansion in competitive territory in eastern Canada, was not accompanied by an equally rapid increase in earnings. Improved[230] connexions in the following year brought a more rapid increase in earnings, and rapid expansion in 1885 a more rapid increase in train mileage. Bad harvest conditions due to the early frost of 1885 and the increase in mixed train mileage led to a decline in passenger train mileage in 1886 which, with a slight increase in earnings, brought an increase in train mile earnings. The rapid increase in passenger train mileage in the two following years occasioned by the opening of the main line and the decrease in mixed train mileage brought a decline. From 1888 to 1890 expansion of mileage was less rapid, and train mile earnings increased. The uncertain character of the period incidental to rapid expansion rendered adjustment of train mileage to traffic difficult. The movement characteristic of the last two years of the period continued in 1891. In 1892 increase in passenger earnings paralleled increase in train mileage, and train mile earnings remained stationary. During the depression traffic declined, and the inability to adjust passenger train schedules to the situation brought a decline in mileage earnings—much more marked than in freight train mile earnings in the same period. Recovery began in 1896, and with the exception of 1898 and of the years of depression, 1905 and 1908, continued until 1912. The years of depression and the decline in traffic, especially in through traffic, and the inelasticity of passenger service, rendered the decline of passenger train mile earnings more serious than in the case of freight train mile earnings. The difficulty of adjusting passenger schedules to the demand, enhanced by the more serious character of overhead charges, was particularly evident in the war years. The decline beginning in 1913 continued to 1915. Higher rates were responsible for the rapid increase in the later years. The period from 1896 to 1913 was generally characterized by increased efficiency, though the increase in train mile earnings was partly the result of a proportionate increase in local traffic, the disappearance of rate wars, and the influence of the Board of Railway Commissioners. Passenger train mile earnings gave less evidence of efficiency than freight train mile earnings. Regulations were more stringent, overhead charges were more serious, and competition of more conse[231]quence. Passenger service was more dependent on densely populated areas, in which competition was more severe. The inelasticity of passenger schedules incidental to competition, and to public demands for convenience and service was a handicap making adjustment of passenger train mileage to passenger traffic unusually difficult.



B. Total Expenses.

Increased efficiency reflected in the increase in freight train mile earnings, and, to a less extent, in passenger train mile earnings was immediately reflected in expenses. During the first five months of operation on the part of the Government, working expenses[791] totalled $78,892, a monthly average of $15,778. In the next ten months these expenses[792] increased to $236,945, a monthly average of $23,694. The difficulties of operation incidental to the opening of the line were evident in the number of accidents. In the first five months[793] on 161 miles of road out of a total of eighteen accidents, fifteen were due to bad track. Under company[794] operation expenses increased from $1,148,299 in 1882 to $9,424,166 in 1890, to $16,999,873 in 1899,[795] and to the maximum of $183,488,305 in 1920.[232]

The general trend and the fluctuations of total expenses depended upon the changes in constituent items. Though difficulties incidental to obtaining early statistics and to reclassification of accounts are a decided handicap to thorough analysis, general conclusions may be suggested. In direct relation to the amount of traffic carried were expenses incurred in conducting transportation. In the period preceding 1890,[796] according to Government reports, "engine repairs" increased from $378,116 in 1882 to $3,314,817 in 1890. The item "motive power," according to company reports, increased to $8,989,111 in 1903.[797] In the following years this item was included in "conducting transportation." In the earlier period fluctuations were due to several causes. The general increase was largely the result of expansion and increased train mileage. The increase in "engine repairs" expenses in 1883 and 1884 followed the increase in total train mileage. The decline of these expenses in 1885 was due largely to the slight increase in train mileage, to the rapid increase in the number of locomotives, and to the improvement of types. In 1886, on the other hand, a slight decline in train mileage, but a continued increase in locomotives, brought an increase in expenses, and an increase in train mileage in the following two years was accompanied by a continued increase in expense. A marked increase in locomotives in 1889 again brought a decline. From 1890 to 1892 increased train[233] mileage brought an increase in "motive power" expense. A decline in freight train mileage in 1893 failed to offset the effects of an increase in passenger train mileage, and expenses increased despite a decrease in total train mileage. In the following year a marked decline of total train mileage brought a decline in expenses. In 1895 the influence of passenger train mileage, which declined with an increase in freight train mileage and in total train mileage, brought a decline in expenses. With the exception of 1901, in which again an increase in passenger train mileage and a decline in freight train mileage and in total train mileage was accompanied by an increase in expense, an increase in total train mileage brought an increase in expense to 1903. Throughout the whole period to 1903 the general increase in train mileage occasioned an increase in "engine repairs" or in "motive power" expense. Fluctuations followed passenger train mileage rather than freight train mileage. The inelasticity of passenger service was apparently a determining factor in the fluctuations of this item of expense, though the trend throughout the period was dominated by the general traffic situation and consequently by freight train mileage and by the general increase in the average train load.

Expenses headed "conducting transportation" appear only under the company's classification, and include, after 1904, expenses classified as "motive power." From 1885 to 1890 this item[798] of expense increased from $1,225,803[234] to $2,576,726. In 1899 it had increased to $4,256,097 and in 1920 to a maximum of $86,608,611. To 1892 the increase in the amount of freight carried one mile and in the number of passengers carried one mile was accompanied by an increase in "conducting transportation" expenses. In 1893 a decline in the amount of freight carried one mile and an increase in the number of passengers carried one mile, and the decline in freight train mileage and the increase in passenger train mileage already noted, brought an increase in "conducting transportation" expense as in "motive power" expense. In the following year a general decline in traffic brought a general decline in expense, but in 1895, as with "motive power" expense, "conducting transportation" expense again declined with a decline in passenger train mileage and in the number of passengers carried one mile and with an increase in freight train mileage, total train mileage and the amount of freight carried one mile. With the exception of 1914 and 1915 the increase beginning in 1896 continued to 1920. In 1901 with "conducting transportation" expense as with "motive power" expense, the increase in passenger train mileage and in the number of passengers carried one mile offset the decrease in freight train mileage, total train mileage and the amount of freight carried one mile, and brought an increase. With the exception of this year, fluctuations of "conducting transportation" expense paralleled the fluctuations of total train mileage to 1916. In the later war years[799] as a result of rising prices a decline in the total train mileage in 1918 was accompanied by an increase in "conducting transportation" expenses, and the increase in train mileage to 1920 by a more rapid increase in these expenses. A decline in train mileage and in wages in 1921 brought a decline in expenses. Generally "conducting transportation" expenses followed the increase of traffic incidental to the expansion of the road. Transportation expenses increased less rapidly, and fluctuations upward were less marked than in train mileage, increased efficiency being largely responsible. Expanding[235] traffic was handled more efficiently, and with a greater reduction of overhead charges. On the other hand, because of overhead charges, a decline in traffic was not accompanied by a proportionate decline of expenses, as was evident in 1914 and 1915. In 1904 and in 1908 expenses increased more rapidly than total train mileage. Freight train mileage actually declined in the latter year. The decline in through traffic during years of depression occasioned a greater decline in train mileage than in expenses, though more particularly in relation to freight train mileage than to passenger train mileage. The general movement of "conducting transportation" expenses and "motive power" expenses as the result of the expansion of the road was characteristic of "traffic" expense. This classification has been made since 1908. It increased[800] from $1,734,086 in that year to $6,289,622 in 1921, and was not relatively important. Comprising chiefly wages and salaries of passenger and freight agents and expenses of advertising agencies the increase to 1913 paralleled closely the increase in mileage and in traffic to that year. The increase in 1914, despite a decline in traffic, and the marked decrease in the two following years despite an increase of traffic in 1916 made it apparent that though in the long run these expenses were largely determined by the demands of traffic during short periods, fluctuations were the result of a variety of factors, including the rise in prices, the rise in wages, and the control and policy of the company. Fluctuations in later years corresponded with fluctuations in train mileage and in traffic, but in 1921 these expenses increased with a decline in traffic.

Parlour and sleeping-car expenses were related to the movement, especially of through passenger traffic. These[236] expenses increased,[801] from $24,099 in 1885 to $64,096 in 1890, to $85,582 in 1899, and to a maximum of $2,492,641 in 1920. In the years immediately following the completion of the main line, the opening of the west occasioned a rapid increase in immigration, in through traffic and in parlour and sleeping-car expenses. The dependence of these expenses on this movement brought a rapid increase to 1893, with the exception of a decline in 1889 due to the bad harvest of the previous year. The relation of parlour and sleeping-car expenses to through traffic and the decline of this traffic during a period of depression occasioned a decrease in 1894 and 1895. The recovery and the stimulus of the Klondike rush in 1898 led to a rapid increase in that year, and was followed by a decline in 1899. Following the expansion of the road these expenses increased to 1914—the rate of increase falling off in 1904. Consistently with the decline of tourist and through traffic due to the war situation they declined rapidly to 1916 and gained only slightly in 1917. The rise in prices as with other expenses and the recovery after the war brought about the rapid increase from 1918 to 1920. A decline in traffic and prices led to the decline in these expenses in 1921. Generally this item of expense was dependent on the expansion of the road and the establishment of through connexions,[237] and particularly it was closely related to through traffic characteristic of periods of prosperity.

Expenses incidental to lake and river steamship traffic increased[802] from $50,794 in 1889 to $417,045 in 1899 and to a maximum of $1,492,991 in 1920. These expenses were determined largely by the number of vessels owned by the company, and by the increasing traffic which made possible expansion in that direction. With the acquisition of new boats these expenses increased very rapidly to 1891. This was followed by a slight decline to 1894, and the general increase in steamship business brought an increase to 1896. The acquisition of steamers in British Columbia territory caused the rapid jump of over 100 per cent. in 1897. Increased traffic and extension of the service brought a continuous increase to 1904. The depression occasioned a slight decline to 1906. Further extension of service stimulated the recovery beginning in 1907, and in 1914 expenses had more than doubled in seven years. A decline in 1915, accompanying the general decline of traffic in that year, was followed by a continued increase from 1917 to 1920, partly the result of recovery from the war period but largely the result of characteristic rising prices. To some extent these expenses were influenced by the varying navigation seasons and by periods of depression, but generally the expansion of the company and the improvement of its through connex[238]ions on the extension of steamship service were dominant factors.

General expenses increased,[803] according to Government reports, from $436,360 in 1882 to $3,581,282 in 1890, and, according to company reports,[804] from $950,754 in 1890 to $1,680,933 in 1899, and to $9,460,681 in 1921. The rapid increase of 1887 and 1888 in other items of expense was characteristic of this item. This increase continued to 1893, and was followed by a decline to 1895, the years of depression, and by rapid recovery to 1899. In 1901 the decreased freight train mileage and total train mileage were accompanied by a decline in general expense. Passenger mileage, which dominated "motive power" expense and "conducting transportation" expense in that year and occasioned an increase in those items, was not dominant in general expense. On the other hand, the decline in 1904 of general expense was accompanied by an increase in freight carried, in freight train mileage and in total train mileage. The decline in the amount of freight carried one mile was significant but not dominant, and the marked decline of general expense in that year suggests improved efficiency and reduction on[239] the part of the company of constituent items of general expense, as salaries of officers and clerks, cost of general supplies, insurance and general administration. A decline in freight train mileage, in freight carried and in freight carried one mile in 1908 occasioned a decline in general expense. In 1914 general expense increased with traffic expense, despite a decrease in freight train mileage, in passenger train mileage and in freight and passenger traffic—a result of the difficulty of adjusting these expenses to the rapid increase in traffic culminating in the preceding year. In the remaining years of the period general expenses fluctuated with other items of expense, rising rapidly toward the end with the rise in prices and with the inclusion and increase of taxes.[805] General expenses were dependent in the long run on the expansion of the road. Fluctuations were the result of increasing efficiency, of minor traffic fluctuations and of the company's control.

As in other items of expense, "car repairs" was dependent generally on the traffic situation. This expense increased, according to Government reports[806] from $56,883 in 1882[240] to $521,824 in 1890, and, according to company reports,[807] under the classification "maintenance of cars" to $1,295,282 in 1899 and under the classification "maintenance of equipment" after 1904 to a maximum of $46,350,793 in 1920. In the first period, as a result of the expansion of the road, "car repairs" increased consistently to 1888. In 1889 the rapid increase in equipment and the slight increase in train mileage brought a decline. An increase beginning in 1890 continued to 1892, and was followed by a rapid decline in 1893 as a result of a decrease in traffic. With slight additions to the number of cars and a continued decline in traffic, "maintenance of cars" increased slightly in 1894. The general difficulties of the period culminating in 1895 and the consequent economies practised brought a marked decrease in that year, despite a slight increase in traffic. An increase began in 1896, and with the general expansion of the road continued rapidly to 1904. The increase of over 100 per cent. in that year was the result of the change of classification to "maintenance of equipment." This item increased to 1911, in which year consistent additions of equipment and a slight falling off in traffic brought a decline. During the remainder of the period, fluctuations paralleled fluctuations in traffic, and with other items of expense increased rapidly from 1917 to 1920 and declined in 1921. The general movement of maintenance[241] of equipment expense followed closely the movement of traffic.

"Maintenance of way and structures" was more generally related to the policy of the company and more generally subject to the company's control. "Maintenance expense," according to Government reports, increased from $276,941 in 1882 to $2,006,237 in 1890,[808] and "maintenance of way and structures," according to the company's reports,[809] to $3,488,254 in 1899, and to a maximum of $32,573,927 in 1920. In the earlier period, with the expansion of the road, maintenance expenses increased steadily to 1889. The decline in 1890, in spite of an increase in traffic, was partly the result of the anxiety of the company to secure a favourable reserve against the exhaustion in 1893 of the funds deposited with the Government as a guarantee of dividends, and the decline in 1895 was partly the result of the difficult financial situation of the company during the period of depression, though warranted in part by the decline in traffic of the preceding year. With recovery, maintenance expenses increased steadily from 1896 to 1908. The depression in 1907 and the consequent decline in gross earnings[242] occasioned a slight decline in 1909. The importance of traffic was reflected in the parallel fluctuations of maintenance expenses and other items of expense more generally dominated by traffic. Maintenance of way per mile—the resultant of mileage and maintenance of way and structures—illustrated the general movement of maintenance expenses more strikingly. Maintenance of way per mile, according to Government reports, declined[810] from $455 in 1882 to $394 in 1890, and, according to company reports,[811] increased to $498 in 1899 and to a maximum of $2,430 in 1920. As a result of the rapid increase in mileage, maintenance expenses per mile decreased rapidly in 1883 and slightly in 1885, and in the remaining years to 1889 increased. In 1890 the decline in maintenance expenses and the increase in mileage brought a marked decrease in maintenance expenses per mile. In 1892 increasing mileage brought a decrease. In 1895 a decrease in maintenance expenses was largely responsible for decline. In 1908 increasing mileage brought a decline in maintenance expense per mile. In 1909 the same factor with a decline in maintenance expenses occasioned a rapid decrease. Again, increasing mileage brought a decline in maintenance expenses per mile in 1913. The[243] rapid decline of maintenance expenses to 1915 resulted in a more rapid decline of expenses per mile. Maintenance expenses occasioned the increase in maintenance expenses per mile during the remainder of the period with the exception of 1917, in which increased mileage brought a decline. Maintenance of way and structure, in the general increase, was the result of the expansion of the road, and in fluctuations was to some extent dominated by the financial policy of the company.

Commercial telegraph increased[812] from $50,619 in 1886 to $241,758 in 1890, to $489,808 in 1899, and to $2,852,416 in 1918. The rapid increase of the telegraph system and the increase in traffic occasioned the steady increase of the early years to 1892. A decline followed to 1895 with the exception of a slight increase in 1894. An increase began in 1896 and continued steadily to 1913 as a result of the general expansion characteristic of the period. Decline beginning in 1914 continued in the war years to 1916. With rising prices these expenses increased to 1918. Though relatively unimportant these expenses were largely dominated by the general movement of traffic.



[244]

IX

Total Receipts

A. Net Earnings

The relation of total expenses to gross earnings was reflected in operating ratio. Operating ratio during the first period[813] fluctuated widely, rising rapidly from 74·2 in 1882 to 91·7 in 1884, declining to 63·4 in 1886, rising to 71·0 in 1888, and declining to 60·5 in 1890. The rapid rise of 1883 and 1884 was the result of the rapid increase in expenses in these years occasioned by the rapid expansion of the road, especially in territory not productive of traffic. The completion of the rail and water route in 1885 and the beginning of operation over the main line in 1886 brought a decline in those years, the situation being reflected in the actual decline of expenses in 1885 and the relatively slight increase in 1886, largely a result of the decline in engine repairs, and in the increase in earnings, largely the result of increase in freight earnings and in grain. The rapid rise in 1887 and 1888 of operating ratio was the result of a marked increase in every item of expense occasioned by the expansion of those years and a relatively smaller increase in earnings shown in every item of earnings. The decline in expenses, the result of a decrease in car repairs and engine repairs in 1889, and the slight increase in 1890, the result of a decrease in maintenance expenses, and the increase in earnings especially the result of increased earnings from "other sources" in 1890, brought a slight decline of operating ratio in 1889 and a marked decline in 1890. The operating ratio of the years of the period to 1890 was obviously the result of uncertainties incidental to early years of the road's expansion.[245] The importance of grain and the control exercised by the company in the later years of the decade were significant factors, but underlying the changes of the period were difficulties of early growth. From 1890 to 1894 operating ratio[814] changed slightly, rising in the latter year to 65·75. To 1892 increased expenses paralleled closely earnings, with consequent slight change in operating ratio. A decline in earnings, largely the result of a decline in freight earnings incidental to a decline in traffic due to grain, but more especially to manufactured articles, and an increase in expenses in 1893, which the decline in maintenance expenses failed to offset, and a relatively slight decrease in expenses in 1894, brought an increase in operating ratio. In 1895 the slight recovery of earnings, occasioned by increased traffic largely the result of the agricultural situation, and the general decline of expenses, led to a marked decline of operating ratio. To the end of the century earnings and expenses generally increased, though at varying rates, with the result that the operating ratio fluctuated accordingly, but, with the greater relative increase of earnings as a result of increasing traffic especially of grain, and also of manufactured articles, generally declined. In the decade from 1850 to 1900 the expansion of the road in the earlier years and the consequent increase in fixed capital and overhead charges resulted in a rapid increase in operating ratio during the depression. In the later years the relatively slight growth of fixed capital during the depression and the recovery of traffic toward the end of the century occasioned a decline of operating ratio.

From 1901 to 1904 operating ratio increased gradually[246] to 1903 and rapidly in 1904. In the earlier years expenses increased more rapidly than earnings, and operating ratio increased accordingly. In 1904 a slight increase in earnings with a decline in grain and in other articles, and a general increase in expenses brought a rapid rise. A year later the operating ratio remained practically stationary, but in 1906, the result of a rapid increase in earnings due largely to the grain situation and to a steady increase in expenses, declined rapidly. In the years to 1909, following an increase in earnings in 1907, a decline in 1908 and a slight increase in 1909, generally the result of similar fluctuations in freight earnings and again of similar fluctuations in grain and manufactured articles, partly the effects of the depression and the continued steady increase in expenses, operating ratio increased slightly in 1907, rapidly in 1908 and remained stationary in 1909. In 1910 a rapid increase in earnings, again largely the result of the grain situation, occasioned a decline. To 1913 the relatively greater increase in expenses brought a steady increase, and in 1914 a relatively greater decline in earnings produced the same result. In 1915 a marked decline in earnings and a more rapid decline in expenses brought a decline in operating ratio, and in the following year a rapid increase in earnings, occasioned by the exceptional harvest reduced the operating ratio to a much more marked extent. In the remaining years of the period the rapid increase in expenses due to rising prices brought the operating ratio to the highest point of the period in 1920. A decline in expenses led to a slight decline in the following year.

Generally from 1900 to 1913 operating ratio increased. The heavy overhead charges incidental to the rapid expansion of the road brought during a period of depression a decided increase in operating ratio. Increasing importance of fixed capital incidental to constant expansion of the road made inevitable during the period a steady though gradual rise. That this persistent increase was due to the increase in the company's fixed capital was evident in 1915, in a year in which greatly increased traffic brought a marked decline in the ratio. This general tendency towards increase of operating ratio was accentuated by the rising costs of the war period. The expansion of the road[247] in mileage, equipment and services, the effects of the vast stretch of unprofitable territory separating eastern and Western Canada, and of the difficult east-bound grades,[815] the dependence of the road on grain which necessitated a situation subject to uncertain climatic conditions, to a decided peak load in expenses, and to a long back haul, and the importance of passenger traffic with its inelastic characteristics, were factors in the increase in operating ratio. Large overhead charges were involved which made adjustment to traffic conditions unusually difficult.

The expansion of the road and the success of the company in meeting the situation were registered in net earnings. During the first period of Government operation net earnings totalled $26,084,[816] or $5,216 per month. In the next ten months[817] they increased to $54,553, or $5,455 per month, and in the first year of the company's operation to $397,914, a monthly average of $28,422. In 1890, according to Government reports,[818] they had increased to $6,148,819; in 1899, according to company reports,[819] to $12,230,165 and in 1921[248] to $34,201,740. In the earlier period following gross earnings and the operating ratio, and the result of factors dominating these items, net earnings increased in 1883, declined in 1884, and increased steadily to 1892. The depression brought a decline to 1894. With recovery net earnings increased to 1899, and with the exception of a slight decline in 1901, in 1904 and in 1908, this increase continued to 1913. A decline followed in 1914 and 1915, but the highest point was reached in 1916. In the later years they declined to 1919, rising slightly in 1920 and in 1921. Net earnings per mile varied with mileage and net earnings.[820]



B. Other Income

Fluctuations in other income largely followed fluctuations in net earnings from operation, and were largely the result of the same movements. Interest on loans and deposits as an item of this classification fluctuated to some extent with net earnings and was predetermined by net earnings, which made possible a financial policy on the part of the company permitting the direction of resources to liquid investments. The expansion of the road which occasioned the growth of net earnings was characterized by integration and the acquisition of other roads. This expansion was principally accomplished through the purchase of securities which in interest and dividends contri[249]buted to "other income."[821] The dependence of "other income" on the ownership of securities of subsidiary companies, on "loans and deposits," and on the reclassification of accounts with reference to the inclusion in later years of net earnings from ocean and coastal steamship lines, and from commercial telegraph and news department, and of interest from land sales, occasioned marked changes in the total. In the period ending with the century the subsidiary companies the Duluth, South Shore and Atlantic Railway, and the Minneapolis, St. Paul and Sault Ste. Marie Railway were important contributors, income from these companies increasing from $203,603 in 1892 to $1,150,199 in 1899, being two-thirds of total "other income" in the latter year. Fluctuations during this decade followed the difficulties of these roads during the period of depression and their repayment of aid. After 1900 the acquisition of other securities, the addition of new accounts, and the rapid expansion of the road with the consequent increase in net earnings and in surplus available in liquid forms, brought a steady though fluctuating rise. In 1921 "other income" totalled $10,987,189, of which $2,307,332 came from investments and other resources (Exhibit C), $1,840,866 from deposits and dividends on other securities, $2,785,615 net earnings from ocean and coastal steamship lines and $4,053,386 from the commercial telegraph and news department, hotels, rentals and miscellaneous. Par value of[250] acquired securities (Exhibit C) in that year was $63,966,727 and the cost of these securities $38,356,460. Par value of acquired securities of leased and controlled lines (Exhibit B) totalled $16,507,005 and cost $128,109,814. The company held also Imperial and Dominion Government Securities, $27,310,675 and Provincial and Municipal Securities, $2,016,721. Fundamentally, the items concerned were largely influenced by considerations dominant over net earnings.



C. Proceeds from Land Sales

Net earnings and "other income" reflected directly the expansion of the railroad, and were determined by influences largely coincident with influences affecting receipts from land sales. The settlement of western Canada and the importance of grain were significant factors in the growth of earnings, and were directly related to the sale of land. The dependence of earnings on settlement, and the control of the company over lands in western Canada, occasioned by the terms of the charter, and the efforts of the company during the period of the construction of the main line, incidental to strengthening the position of its land grant as a basis for land grant bonds, for settlement, for purposes of strategy in railway competition, and for immediate and ultimate returns from sales, rendered the land situation important.

After the completion of the main line, adjustments[822] were made for the final transfer of the land grant. An agreement in 1886[823] permitted the deduction of 6,793,014[251] acres, valued at $1·50 per acre, from the original land grant for the purpose of cancelling the remaining debt of $10,189,521 (increased with interest from $9,880,912). The Act provided that the Government should retain lands of equal average value and quality with the lands constituting the portion of the company's land grant not "heretofore" disposed of by the company. In the passage of the Act through the House of Commons it was stated on behalf of the Government that out of lands to be conveyed to the company, there would be taken a proportion of the area so conveyed, which would be equal to the ratio which the whole area to be retained by the Government would bear to the balance of the company's grant of 25,000,000 acres remaining undisposed of by the company at the time of the passing of the Act. Consequently the Government refused to accept a suggestion of the company that the land grant should simply be reduced to 18,206,986 acres, and asked the company to furnish a statement[824] showing the amount of land disposed of at the time of the passing of the Act, to define the lands it proposed to accept in the railway belt, and to define the locality in which it proposed to accept the remainder of the grant. In the same spirit the Government refused to grant land requested to the extent of 9,000,000 acres along six "projected" branch lines. A month later the company proposed that the "projected" lines be regarded as common front lines and on each side 24 miles deep the lands in odd-numbered sections be applied to the land grant. It agreed to specify within six weeks the lands within these belts which would be accepted as part of the land grant—being not less than 7,000,000 acres, to be granted on demand, and the acreage to be ascertained after all the deductions were made. The lands were to be selected so that a minimum of railways would open a maximum of territory. The company being in possession of large tracts of land would construct its own lines or encourage other lines through the territory because of the benefits to be derived. The negotiations finally terminated with a suggestion made on May 20, 1890.[825] At that time the company had selected[252] 8,347,440 acres from the railway belt and the territory in southern Manitoba. There remained about 800,000 acres to be selected. The order in council of October 24, 1882, had reserved the area between the 52nd and 54th parallels of latitude and the 104th and 116th degrees of longitude which contained about 19,000,000 acres of farming land. The Government proposed to retain the eastern half of this territory and, for ample allowance, to add another piece of land bounded on the north by the 52nd parallel, on the east by the 104th degree, on the west by the 110th degree, and on the south by the South Saskatchewan River from the 110th degree to its intersection with the northern boundary of the 48-mile belt of the main line, and the 104th degree. From the section comprised in the eastern half of the territory set aside in the October, 1882, order in council, a belt of land 24 miles wide extending north-west from the southern boundary of the reservation to the 110th degree was to be excepted for the purpose of securing the construction of a road from Saskatoon north-west to the North Saskatchewan. This road was to be built by the company and finished by April 1, 1892. Since the company proposed building a line from the point at which the branch touched the North Saskatchewan to the 110th meridian it was assumed it would extend this proposed line through Battleford to Edmonton. For the selection of the remainder of the grant, therefore, a common front line was laid down—a right line from the south-west angle of Township 35, Range 4, west of 3rd meridian to Battleford and a right line thence to the 110th degree—the depth of a belt of land on each side to be 12 miles. It was estimated this area would yield 1,000,000 acres of land, giving the company a reasonable margin from which to select. The western half of the reservation of the October, 1882, order in council with the exception of lands accepted by the company was to be released for settlement after January 1, 1891. The company suggested that the land grant should be released on January 1, 1892, instead of January 1, 1891, and that the date of completion for the road between Saskatoon and the North Saskatchewan River should be changed to October 1, 1892. With the adoption of these suggestions an agreement embody[253]ing the propositions was signed on January 7, 1891.[826]

The expiration of the reservation and the provision for the construction of branch lines for the promotion of settlement were evidences of an increasing demand for settlement of the country. This increasing demand and the resulting policy of the Government directed to the opening of the country were particularly advantageous to the company. Not only was traffic developed with settlement, but to encourage the construction of branches essential to settlement the Government acceded more willingly to requests for additional grants of land. On May 16, 1889, an application[827] was made for a land grant on a line from Brandon to or near Township 3, Range 27, and west 100 miles, and on a line from Township 3, Range 27, east to Deloraine, 25 miles. These lines were an extension of the Manitoba South-West Colonization Railway, but under the charter of that company the time for completion had elapsed. On May 18[828] the Government approved of construction by the Canadian Pacific Railway Company and agreed to a land grant of 6,400 acres per mile or 800,000 acres. Conditional[829] to the grant the branches were to be built before the end of 1890, and the location was to be approved by the Government, but such conditions were not of a serious character. On June 4 another application[830] was made for a land grant of 6,400 acres per mile on the line from Souris to Glenboro, about sixty miles, and to this, with conditions similar to the grant of May 18,[831] the Government agreed. To facilitate financial arrangements it was further provided that the line should be divided into three sections of 20 miles each and the grant transferred with the completion of each section. On June 18 this provision was extended to the earlier branches. The date for completion,[832] December 31, 1890,[254] was changed to November 1, 1891, and again because of difficulties in securing rails to November 1, 1892.[833] Again under similar terms[834] a grant of 6,400 acres per mile was approved on February 7, 1891, for an extension of the Souris branch to the lignite coal-fields, 60 miles, to be completed December 31, 1891. The total land grant to these branches was 1,568,000 acres. To provide[835] for this the belt of land 24 miles wide from near Saskatoon through Battleford, north-west to the 4th meridian, set aside in the agreement of January 7, 1891, was widened by an addition of two strips on each side of the belt of 12 miles each, and in addition, a triangular piece of land bounded by the combined belts, by the line between Townships 34 and 35 from its intersection by the south-west limit of the combined belts to the 4th meridian, and on the west by the 4th meridian, was reserved, making a total of 1,900,000 acres.

Final adjustments of the land grant were made throughout the decade. Difficulties continued as to delay in selection. Early in 1892 a dispute[836] arose over the grant of land to the Great North-west Central Company made from the belt of the Canadian Pacific. The Canadian Pacific refused to adopt the suggestions of the Government and submit the matter to arbitration, but insisted that the Government had no power to grant lands within its belt, and eventually gained its point. Land granted to the Qu'Appelle, Long Lake and Saskatchewan Railway from the Canadian Pacific belt before the surveys had been made was returned on their completion.[837] The northern boundary of the belt was also adjusted to meet the grant of the Manitoba and North-West Railway.[838] If it was to the interest of the Government to secure an early selection of land, it was to the interest of the company to delay selection. Several sections of the land grant within the railway belt were declared to be arid or semi-arid and not acceptable to the company. Finally, to settle the question, the Government agreed to[255] grant a solid block of land of 3,000,000 acres in southern Alberta.[839]

The land grant given directly by the Dominion Government in accordance with the act of incorporation and in accordance with the policy of opening new territory to settlement was supplemented by land acquired through the lease of other roads and the acquisition of charter privileges belonging to other railroad companies. Expansion of the road in British Columbia carried out largely through the acquisition of other companies brought additional grants. In 1892 the Columbia and Kootenay Central gave 190,000 acres and later the Columbia and Western 1,347,905 acres and the British Columbia Southern 3,600,000 acres. In western Canada the lease of the Manitoba South-West Colonization Railway brought 1,349,424 acres and in 1902 the Great North-West Central 320,004 acres. The latest acquisition relates to a grant of 4,000 acres per mile to the Interprovincial and James Bay Railway Company for the construction of a road from Kipawa to Des Quinze River, and to Ville Marie, altogether 76 miles.

The land grant, acquired by the act of incorporation, and increased by special grants for the construction of branch lines, and by the lease of other companies, enhanced in value by the policy of the company in delaying selection,[840] was not the only form of real estate of which the company became owner through the terms of the charter, through business astuteness, and through the desire of the Government to encourage the construction of transportation facilities. On January 12, 1882, for instance, the Government,[841] unable to transfer property necessary to facilitate operations which belonged to the Ontario Government, went as[256] far as possible, and gave the company all the rights and privileges which it enjoyed. Under similar circumstances at Port Arthur a grant of land 200 feet wide and 2 miles long was requested for terminal facilities. Although this was a larger stretch of land than permitted by the Consolidated Railway Act of 1879 the Dominion Government recommended[842] to the Ontario Government that the application should be granted as far as possible[843] and expropriated the amount given under the Act of 1879. Again authority was given to expropriate 200 feet[844] along the road from Current River to River Nepigon, 64 miles, and from Moosejaw to Calgary[845] on the ground that this was necessary to secure protection from snow. At English Bay[846] despite the protest of the Superintendent-General of Indian Affairs 80 acres were expropriated for terminal facilities. In other localities the company was equally favoured.[847] On the other hand an application of January 29, 1883, for lands on the eastern section from Callander west, in addition to those granted by the Consolidated Railway Act, was refused.[848]

In questions relating to the right of way the company was generally fortunate. The contention that the extension of the main line from Port Moody to Vancouver did not entitle the company to the necessary right of way was settled favourably to the company on the ground that such an extension was a branch.[849] On the basis of this decision the contention of the Government in January, 1891, that the company was not entitled to a free right of way for a spur at Revelstoke was also defeated.[850] In a dispute in which the Government declared its intention of including the right of way within the total land grant of 25,000,000 acres, the company again protested successfully.[851] Questions[852] arose in June, 1886, as to whether the right of way through[257] homestead lands for which the entry was not granted at the date of the passing of the Act, was vested in the company without a patent issuing from the Crown, and if the entry for the homestead was granted before the passage of the Act, whether the company was entitled to the right of way through the homestead free of charge, and whether the Government had the right to exclude the right of way from the patent to the homesteader; all of these were decided in the company's favour and provision was made for the settlement by the Government of cases where the patent had been granted without reservation of the right of way.[853] In the construction of branches the Government generally made reservations of sections of land for right-of-way purposes.[854] On the other hand in the case of school sections a different verdict was reached. On June 26, 1889, consent[855] was asked to appropriate land in so far as it was within townships surveyed on or before October 21, 1880, and therefore vested in the Crown for school purposes. It was claimed that the land had greatly increased in value because of the railway and therefore should be sold to the company at a nominal price. To this the Government[856] replied that the company was entitled to a free grant of land required for railway purposes on the school sections in those townships which were not surveyed until after the location of the railway through such townships, but where the survey had preceded the location, the company was required to pay for its right of way. If the lands were disposed of before the location of the line the company had no claim on them. A charge of $5·20 per acre was levied for the right of way acquired under these rulings.

Station grounds and other lands for railway purposes were generally secured under favourable arrangements. Land necessary for sidings was usually granted upon the approval of the Government engineer. Ballast pits were granted where occasion demanded. On the line from Winnipeg to Calgary 2,832 acres were claimed for ballast pits[857] of which 2,077 acres were chosen from Government lands and[258] 597 from company lands. On the same stretch of line nearly one hundred station grounds from 300 ft. x 2,650 ft. (nearly 20 acres) upwards[858] were claimed. The company was also permitted to make arrangements leading to the abandonment by a settler of his claim to any portions of an even-numbered section needed for railway station grounds. From the western limits of the land grant to the eastern boundary of British Columbia the company was permitted by virtue of an agreement[859] of March 3, 1886, to select from vacant Dominion lands a tract of land not exceeding 160 acres adjoining each station. The land granted in this way was subtracted from the total land grant, but since it comprised chiefly the town sites, the arrangement was distinctly favourable to the company. At Donald,[860] British Columbia, a grant of 88 acres was given to the company, and a section of 502 acres sold at $2·50 per acre. At Griffin Lake and at Glacier,[861] lands were given for the purpose of ejecting squatters who were erecting buildings which interfered with the tourist trade, though on a similar plea, the Government refused to sell the town site at Golden[862] at $2·50 per acre, or to sell 500 acres at Revelstoke. For land situated in Government parks, leases were granted at favourable rates. For a lease[863] of 38 acres to be used for hotel purposes a charge of $20 per acre per year was made on five acres for 42 years and of $5 per acre per year on the remainder for 21 years. The regular rates were $30 per acre per year. There were, on the other hand, several evidences of resistance on the part of the Government. On October 6, 1886, the company[864] claimed a grant of 101 acres in Winnipeg as necessary for railway purposes. The Department of Railways recommended[865] the grant although the Government engineer had pointed out that it would only be necessary if the whole was to be used as stockyards. On July 29, 1890, an offer was made[866] subject to the condition that the company reserved the right to obtain it as a free grant. Upon the Government's refusal to accept these terms the[259] company purchased[867] the land on September 22 at $100 per acre—the Government deducting 8 acres given as right of way. At Glacier, British Columbia, in a similar fashion, the company refused to purchase[868] 40 acres, reserving the right to obtain the grant free of charge. With the Government's offer to place the matter in the hands of the Exchequer Court, the company returned a cheque for the purchase price of the land. At Griffin's Lake[869] the Government refused to grant 3½ acres of extra land and the company was obliged to purchase. At Tappen siding[870] even cheese-paring was evident—a grant of 14·97 acres was asked but only 13·42 acres given, and the remainder, 1·55 acres, purchased at $5 per acre. The Government engineer was continually on the alert in his approval of the number of acres granted. At Illicilliwaet on July 19, 1887, the company asked[871] for 56 acres and was granted 30 acres. At Moberly[872] on February 23, 1889, a grant of 45 acres was asked for—14 acres were given. At Field[873] on December 2 46 acres were applied for and 26 acres granted. At Beaver[874] on January 16, 1890, an application for 51 acres succeeded in securing 17 acres. At Sicamous[875] on February 10, 1891, an application for 5½ acres declared not to be excessive for the use of the C.P.R. and the Shuswap and Okanagan Railway was refused on the ground that the latter railway was a leased line.

The company was fortunate with respect to the location of town sites, as it had been generally with other forms of real estate. Early in 1883 an agreement[876] was made placing all town sites, (1) sections belonging jointly to the Government and to the country, (2) those belonging to the company, in the hands of trustees. These trustees, Messrs. R. B. Angus, E. B. Osler, D. A. Smith and W. B. Scarth, were accountable to the Government for the proceeds of the sales of land belonging to it. Letters patent were issued directly to the company for its lands. Under this agreement, four sections were laid out at Regina, two at Moosejaw, four at[260] Qu'Appelle and one at Virden, and transferred to the trustees—the proceeds being divided equally between the Government and the company. The arrangement proved generally advantageous in the control given to the company in the location of town sites.

To some extent, a similar form of control was given over the agricultural policy of districts in which the land grant was reserved. On April 12, 1886, an agreement[877] was made with the Government in which all odd sections were regarded as railway lands although not yet accepted by the company. Rent of these lands was paid to the Government and the account adjusted with final acceptance. The company secured the advantage of rent[878] from the lands before they were accepted and at the same time exercised practical control of the agricultural policy of the districts concerned. The Government leased large tracts of land to ranchers on condition that the lease should terminate upon the application of the company for the land. The company exercised[879] its prerogative much to the chagrin of ranching communities.

The general business capacity of the company was amply shown in transactions involving the transfer of lands and the necessary issue of patents. Promptness in the issue of these instruments was essential in the sale of lands, and in securing power to evict squatters. To avoid unusual delays, the company compiled a list of lands most speedily required and patents were registered in the shortest possible time. Difficulties occasioned by the refusal of registrars to register the instruments were overcome through measures suggested by the company. In 1887 on application of the company,[880] delays and expense were reduced through the issuance of patents direct to purchasers of company lands. Attempts were made to eliminate the governmental red tape involving unusual delays in cases of mistake in the name of the patentee, of filing acts of incorporation and letters of attorney, of incomplete descriptions, of the death[261] of the patentee, and of changes in the form of patents, but with little success. Many sections were asked for in error, were already sold or squatted upon. There were errors in plans and surveys, and lands were sold by the company outside its belt by mistake. Inaccurate descriptions in patents for the right of way largely disappeared and some improvement was made by excepting the right of way from patents to settlers and granting the patents direct to the company. In the form of patents the company insisted that no reservations[881] should be made to the Crown for gold, silver, copper or other mines, and a patent reserving fisheries was immediately returned for correction. In this the Government did not concur but promised to omit such reservations in later patents.[882]

Questions regarding timber limits were of a particularly difficult character.[883] The company was careful to protect its own interests but careless in regard to interests of the Government. In September, 1885, protests[884] were made by the company against the cutting of timber on sections within the reserve of the Manitoba and South-Western Railway. The Government recognized the validity of the protests, and parties owning timber mills on the sections involved were notified that their licences would not be renewed. On the other hand charges were made that the company was unusually wasteful[885] in the cutting of lumber on Government lands. It was stated that lumbermen[886] were selling lumber cut for the company to other parties. Complaints were made that on the Bow River[887] the company was cutting timber belonging to others. It was held[888] that the timber in question, namely that on the berths of the Eau Clair and Bow River Timber Company, had been cut before the grants were made, but the Government proved this untrue. Charges[889] that timber of more than 5 in. at the butt was used, were denied. The company[890] persistently refused to give any statement as to the amount[262] of lumber cut. To check the abuses which these protests implied the Government adopted various measures but with varying success. As to the cutting of timber without a permit it was decided[891] to hold the company liable for timber cut by trespassers until it proved itself guiltless. Moreover, permits were restricted[892] to timber used for construction purposes on the main line. It was even held that the company was not entitled[893] to take timber free for the construction of the extension of the main line to Vancouver. Restrictions[894] were placed on the right of the company to cut timber for sale because of the disadvantages to other lumber dealers of competition. In an attempt of the Government to supply timber necessary for construction purposes, five timber berths[895] of ten square miles each were reserved in convenient localities one on each side of Boulder Creek, and one on the Columbia River, the Kicking Horse River and Otter Tail Creek. Timber[896] licences could be obtained for an area not exceeding 1,000 acres and for not more than four years at $10 per year and a charge of 15 c. per tree and 20 c. per 1,000 feet in logs. In the construction of snowsheds, the company held that timber used for this purpose was timber used in the construction of the main line and therefore should be free under the terms of the contract. For this purpose[897] it was claimed that cedar was necessary and could not be found within the reservations, and that the reservations were too far distant. It was also claimed that the reservations had been made to prevent a combination of mill owners from obtaining a monopoly on timber. For these reasons the company proceeded to cut timber outside of the limits. Against this the Government protested, stating that there was no danger of monopoly since the company controlled the freight rates, and that the object of the reservations was to prevent the slashing of trees. Finally it threatened to sell the reservations if the company persisted in cutting timber on Crown lands.

In the collection of timber dues the Government finally[263] secured the promise from the company that it would make deductions in the case of all parties contracting with it who had not a clearance from the Government. In the case of good trees cut by contractors, the company[898] was charged the price of lumber. For cordwood a charge of 25 c. per cord was made, for ties 3 c. each, for piles ½ c. per foot, and for fence posts $2·50 per thousand. From December, 1885, to May 31, 1887, $4,744·75 was paid[899] for cordwood, and the Government sanctioned[900] the deduction of 26,919 cords claimed to have been used on construction engines although the amount was recognized as exorbitant. To a contention[901] of the company on February 3, 1890, that it was entitled to patents with the construction of every ten miles of line and therefore was not required to pay timber dues, a ruling was given that the company had no right to timber farther than 50 feet from the centre of the track. To an application[902] for limits 14 and 15 on the Columbia River, the Government answered in offering them by tender.

The more immediate results of the charter privileges pertaining to land grants[903] and other forms of real estate, enhanced in value largely through the business astuteness of the company, were revealed in the amount of proceeds from these sources. The most significant item of these[264] returns was that from land sales.[904] In 1890 the company had sold 3,601,428 acres of the grant secured from the Manitoba South-West Colonization Railway and had realized $11,462,165 or an average of 3·09 c. per acre—the average price of land sold in that year being 3·834 cts. Deducting 6,793,014 acres surrendered by agreement to the Government and adding 640,000 acres earned on the Souris branch, the company held in that year 16,488,959 acres. During the next decade the land situation reflected the general period of depression. In 1893 scarcely any land was sold and it was not until ten years later that the price reached the level of 1890. In the later years to 1914 the average rapidly increased—the price in that year being $16·57. The war period generally brought a decline. Land in Alberta brought under cultivation by irrigation works sold at a much higher price. The average price in 1909 was $24·71 per acre, in 1918 $42·94 and in 1921 $53·13. The receipts from the land grant varied widely as a result of the susceptibility of the land situation, of the policy of the company in opening up settlements, of climatic conditions, of periods of boom peculiar to the north-west, and of periods of depression influencing the trade of Canada[265] generally. From $105,789 in 1892, they declined to $20,317 in three years as a result of the depression. In 1902 proceeds from land sales had increased to $1,569,901 and in 1913 to $5,795,978. A general decline was evident in the war years and to 1921. The largest returns—$8,316,335—from land sales were received in 1907. These proceeds were supplemented by receipts from the sale of town sites. In 1890 the sale of town sites had brought $2,056,291. From nine acres of land given by the Government of British Columbia at Vancouver Island in consideration of the extension of the main line to Port Moody, 9 miles, the company secured sufficient revenue to pay for the extension and to build a branch to Westminster in addition. To 1916 the proceeds from land and town sites[905] totalled $123,810,124.

In 1921 the company held 5,606,351 acres valued at approximately $91,962,630. Of this 3,446,416 acres were agricultural lands in the western provinces valued at from $10 to $13 per acre, 352,714 acres were irrigated lands valued at from $30 to $40 per acre, 563,732 acres were timber lands valued at from $1·50 to $3 per acre, 1,073,651 acres in British Columbia valued at from $2 to $5 per acre and 94,584 acres in town sites in the prairie provinces. Total town sites were valued at $20,157,900. In addition coal lands, petroleum rights and natural-gas rights were held at nominal figures. It is scarcely possible that the number of acres held will increase appreciably through later land grants, but that there will be an increase in value is probable. At best the land grant is an asset which will continue to decrease in importance, though such a decrease is not of vital significance to the prosperity of the company. The total proceeds[906] secured from the land grant and town sites to 1916 were less than the net revenue from operation for three years ending June 30, 1916, and about equal to the gross revenue from operation in the year 1912. The importance of land sales as an item in the gross receipts of the[266] company varied widely. But generally periods of prosperity in which net earnings tended to increase were periods in which land sales were largest and periods of depression with declining net earnings were periods of declining land sales. The land situation was probably more sensitive to local conditions, but these in turn reflected general and prevailing world-wide conditions. In any event land sales are destined to be of less importance in the future.



D. Total Receipts

Net earnings from operation, other income, and proceeds from land sales, included in total receipts constituted a final index of the earning capacity of the road. In total receipts, fluctuations in constituent items occasioned by changes in accounting practice disappeared and the general standing of the company was most clearly revealed. Net earnings from operation were directly related to the growth of traffic. Other income because of changes in the classification of accounts became more directly related to traffic but included earnings from securities held and though these were related to traffic, fluctuations were of less significance. Proceeds from land sales fluctuated violently, because of a variety of considerations, but generally reflected the importance of the west.

Prior to 1888 land receipts were largely expended in advertising campaigns and in improvements, and were consequently unimportant. Since that time large portions of these proceeds have been devoted to the same purpose, but the statistics chosen represent the net amount remaining after such expenditures have been made. These statistics have been taken from "receipts and expenditures." They do not represent the amount realized from land sales in any given year but the amount actually received after allowance for deferred payments and for expenditures for purposes stated in that particular account. Other income was not of material importance until 1892, after which date the fund guaranteed by a deposit with the Government for the payment of dividends was exhausted. The first decade of the company's history was particularly subject[267] to the uncertainties of early expansion, and was consequently of slight importance from the standpoint of total receipts.

From 1888 to 1892 total receipts[907] increased steadily as a result of the increase in net earnings, and to 1894 declined to a marked extent with a decline in net earnings, and despite a slight increase in land receipts and a marked increase in other income. Throughout the remainder of the decade, total receipts increased steadily with a similar increase in net earnings, despite a decline in other income to 1897 and in land receipts in 1895. Land receipts increased slowly during the first two years of this period, and with other income very rapidly in the last two years. In 1901 a decline in net earnings, a decline in other income, and an increase in land receipts, brought a decline in total receipts, and to 1903, an increase in all the constituent items, an increase in the total. In 1904 a decline in land sales and in net earnings led to a decline in the total, despite an increase in other income. Total receipts and land earnings increased from 1905 to 1907 despite a decline in other income in 1906. In 1908 all these items declined. In 1909 a slight increase in total receipts followed a slight increase in net earnings, an increase in other income, and a decline in land[268] receipts. From 1909 to 1913 total receipts practically doubled as a result of an increase of 100 per cent. in net earnings, an increase of 200 per cent. in other income, and an increase in land receipts in 1910, a marked decline in 1911 and rapid recovery in the last two years. In 1914 and 1915 a decline in total receipts followed a marked decline in land receipts, and in net earnings, despite an increase in other income. In 1916 total receipts increased as a result of an increase in net earnings, and in land sales, and a slight decline in other income. In the following year, total receipts again increased, for the first time, despite a decrease in net earnings, and with an increase in other income and in land receipts. In 1918 and 1919, as a result of a decline in net earnings and in land receipts, and despite an increase in other income, total receipts declined. In 1920 an increase in net earnings and in other income brought an increase in total receipts, despite a decline in land receipts. In 1921, for the first time, an increase in net earnings and in other income was followed by a decline in total receipts, because of the decline in land receipts. With two exceptions, 1917 and 1921, total receipts fluctuated in consonance with net earnings. The exception in 1917 was the result of the reclassification of accounts, which transferred steamship earnings from earnings from operation to other income, and strictly speaking was not an exception. In 1921 the increase in net earnings and in other income was slight, and the result of considerable economy, consequently it did not offset the marked decline in land receipts. Net earnings were therefore of dominant importance in the total receipts of the company.

Net earnings were in turn dependent on gross earnings and expenses. Expenses related to passenger traffic were unusually high, and the percentage of passenger earnings to gross earnings was much lower than that of freight earnings. Consequently net earnings dependent on gross earnings were in turn particularly dependent on freight earnings. This was especially the case since freight traffic was handled much more efficiently and since freight expenses were consequently lower. Net earnings were, therefore, largely dependent on freight earnings and on freight traffic.[269] Freight earnings and freight traffic have depended directly and indirectly to a very large extent on the expansion of western Canada, especially with the development of the west, and with the effect of higher rates resulting from a non-competitive situation in that area. The contributions of western Canada were evident in the receipts from land. It follows, therefore, that to a very large extent the net earnings and total receipts of the Canadian Pacific Railway have been directly obtained from western Canada.



[270]

X

Capital

Physical expansion of the road to a large extent determined, and was determined by, the growth of traffic. The development of physical property was generally reflected in capital, represented by instruments as bonds and stocks, and by accounts as surplus and reserves; and the growth of traffic was generally reflected in total receipts, which were disbursed in the form of payment of interest on bonds, of dividends on stocks, and of additions to reserve and surplus accounts. Disbursements depended largely, therefore, on the quantity and form of the securities involved, and these in turn depended on the particular conditions under which capital was obtained, and on the policy adopted to meet those conditions. Government aid was a determining condition as to the character and extent of securities issued. Aid in land, in money, and in other privileges outlined in the charter, enhanced in value through the business astuteness of the company, was of vital importance in the construction of the main line. Of necessity it continued to exercise a significant influence over the financial policy of the company.

The business astuteness of the company, evident in relation to the land grant and other privileges, was prominent in later negotiations with the Government leading to the final settlement of the payment of the money subsidy. After the completion of the main line, a financial controversy appeared as to the payment of interest on $9,880,912 loaned by the Government in the Act of 1885. The loan was secured by a first lien on all the unsold lands of the[271] company, and the company claimed[908] that since it was secured only by the lands, interest could be paid only from the proceeds of land sales. At the same time the Government had in its possession $8,996,000 of land grant bonds. Questions arose as to whether these bonds were still subject to redemption under the terms of the land grant mortgage, since the road was completed and the bonds therefore earned, and as to whether the Government could collect interest on these bonds and apply it to the interest due on the loan of $9,880,912. These questions were asked in a letter dated January 22, 1886, and on January 28 the company paid no interest[909] on the loan. A ruling[910] was made on February 8 in accordance with the ruling of January 7, 1885. It was held that the land grant bonds might be treated as earned and issued, and that the Government was entitled to the interest, such interest to be applied to the principal and interest on the loan of $9,880,912. The security for the loan was: first, $8,996,000 of land grant bonds; second, a first lien on all the company's lands after the land grant bonds were redeemed; third, the Algoma branch and the interest of the company in leased lines; fourth, the company's entire revenue, and lastly, the liability of the company. Consequently the loan was not secured by the land alone, and the company was obliged to pay the interest on it.

A final adjustment of the main accounts was made in an agreement[911] of March 30, 1886. The company agreed to pay the debt of $19,150,700 to the Government in two instalments, the first on May 1, 1886, and the second on July 1, with interest at 4 per cent. The remainder of the debt, $9,880,912, was extinguished by reduction of the land grant. On payment of the debt, the Government agreed to cancel all the land grant bonds in excess of $5,000,000 held as security for the construction of the road, to return $300,000 of debenture stock of the Ontario and Quebec Railroad,[912] deposited with the Government as security for the loan, and to authorize the company to mortgage the[272] Algoma branch to the same amount per mile as the charter of the company authorized for the main line. The company was given power to issue land grant bonds on the remainder of the land grant, though not in excess of $2 per acre, and after provision had been made for the bonds already outstanding. Of these the public held $3,612,500, and against them the company had interest bearing obligations for lands sold on deferred payments, $1,579,708 and 14,734,667 acres of land. The Government accepted the new land grant bonds to be issued, after provision had been made for the outstanding bonds, in lieu of the $5,000,000 of land grant bonds held as security for construction of the road. On May 1, 1886, the company paid in $9,887,347, and on July 1, $9,163,353. The land[913] was formally agreed upon on July 22.

A minor adjustment was made later with reference to the nine miles of permanent road which had not been built in the Rocky Mountains. The engineer-in-chief held that the grade of 238 feet per mile used for the temporary road was below the standard of the Union Pacific and $460,087 of subsidy was withheld. On November 2, 1886, an agreement[914] was approved by the Government, and on November 15 signed. In consideration of the early completion of the road, and of its being opened for traffic and regular operation on June 28, and in consideration of the repayment of the loans, it was agreed: (1) that the Government should accept the road; (2) that the company should accept the road built by the Government subject to deficiencies; (3) that the Government should pay the balance of the subsidy; (4) that the Government should release $5,000,000 of land grant bonds held as security, and (5) that the company should make improvements at Mount Stephen and should deposit $1,000,000 of land grant bonds with the Government to be held until they were made. On November 20, $458,058 was paid[915] to the company. To this amount, objection was made that no adjustment was provided as to the value of ballast pit rails on the Pembina branch, and of materials on the Thunder Bay branch. The Government replied[916] on December 8 that the rails were to be transferred[273] to the company at cost price—cost being the amount paid by the Government in 1879, the date of purchase—and that this amount, plus the cost of materials on the Thunder Bay branch, had been deducted. A final dispute arose as to the character of the road handed over by the Government in British Columbia. Messrs. John A. Boyd, Thos. C. Keefer and Chas. C. Gregory were appointed as arbitrators by an Order in Council[917] of January 5, 1888. A claim of $12,000,000 on the part of the company gained an award of $579,255.

Aid given directly to the company by the Dominion Government was supplemented by aid from Provincial and Municipal Governments, especially through assistance given to subsidiary companies. This aid, as has been shown, was given partly in land grants. It was also given in the form of subscriptions to bonds or stock, and in cash payments. The total amount of aid given in cash by the Dominion Government was[918] $30,289,343. The cost of the road handed over by the Government to the company was $37,785,320. Provincial Governments gave directly to the Canadian Pacific a relatively small sum, $412,878, and municipalities, $464,761. Through subsidiary companies the Dominion Government gave indirectly to the Canadian Pacific in cash, $13,129,873, Provincial Governments gave $12,016,257, and municipalities, $4,632,422. Almost as much cash aid was given to the company indirectly through its subsidiaries as directly through the charter. In the acquisition of lines through subsidiary companies the company was in a strategic position. These lines, often largely built with money subscribed by various Governments,[919] were in many cases unable to meet heavy fixed charges, because of reckless expenditure in construction, encouraged by financial aid of this character, and because of ill-advised construction.[920] Operating expenses were seriously increased because of this ill-advised construction, and with low revenue a characteristic feature, the companies were involved in serious difficulties. Consequently the Canadian Pacific was in a[274] position to acquire the roads at a relatively low price, and although they were inefficiently operated as separate lines, as parts of a complete system or as part of a through connexion, they were of considerable advantage. For example, the Canada Central was subsidized from Pembroke to Callander, 120 miles, at $12,000 per mile by the Dominion Government, by a municipal bonus of $75,000; and by municipal subscriptions of $42,500. As part of a through route to the west it was invaluable. Again; the South-Eastern Railway, consisting of several ill-pieced sections of road, was acquired through the foreclosure of a mortgage, and became a valuable portion of a through route to Boston and St. John. Branch lines unable to exist by themselves became valuable feeders to a complete system, as in the case of the Manitoba South-West Colonization Railway, the Laurentian Railway, or the St. Lawrence and Ottawa Railway. Charters of subsidiary companies were of a valuable character. Bonds and securities could be issued on the property of the subsidiary line without seriously impairing the security of bonds on the main lines. Loans, subsidies, and various privileges which could not be obtained directly by the Canadian Pacific could be obtained through these charters. Access to territory otherwise impossible was obtained through extension rights. The disadvantages occasioned through heavy operating expenses were, in contrast to the advantages, of relatively slight importance.

The strategic position of the company, evident in the substantial Government aid and in the acquisition of other roads under favourable conditions, was a cause and a result of the stability of the management under which the policy of the company was formulated. The management which carried through the construction of the main line with minor changes remained in control throughout the history of the road. In 1886 Messrs. Grenfell and Rose of London retired in favour of Mr. Levi P. Morton and Mr. R. J. Cross of New York, members of the firm of Morton, Bliss & Co., the American branch of Morton, Rose & Co. In the following year, Mr. H. S. Northcote retired, and the Hon. G. A. Kirkpatrick, M.P., of Kingston, was appointed. In 1888 Mr. Grenfell again became a director, as did also Mr. W. D.[275] Matthews of Toronto, Mr. D. McInnes of Hamilton, and Mr. J. J. C. Abbott, solicitor of the company. Following these changes, in the next year, Messrs. Grenfell and Morton retired in favour of Mr. Thomas Skinner of London. In 1890, Mr. Martinsen retired in favour of Mr. Samuel Thomas of New York. In 1891 Mr. Thomas and Mr. Kirkpatrick retired, and Mr. J. W. Mackay of New York was appointed. Two years later Mr. R. J. Cross retired. Mr. C. R. Hosmer was added in 1899. Mr. J. W. Mackay died in 1902. The Hon. G. Drummond, the Hon. R. Mackay and the Hon. R. G. Reid were added in the following year. Mr. L. J. Forget was added in 1909. The Hon. G. Drummond was replaced by Mr. A. R. Creelman in 1910. Mr. H. S. Holt was added in 1912, and Mr. A. Nanton took the place of Mr. Creelman in 1914. Mr. J. K. L. Ross and Sir George Bury became members in 1915. Senator F. L. Beique and Sir Vincent Meredith were added in 1916, and Mr. R. Mackay retired. Sir George Bury retired from the directorate and the executive committee in 1918. Mr. R. Dunsmuir was succeeded by the Hon. W. J. Shaughnessy in 1920. Sir John Eaton became a director on December 8, 1919, and continued until his death in 1922. These changes were changes in personnel rather than changes in the interests represented. Mr. Sandford Fleming was a member from 1885 until the time of his death in 1916. Mr. Donald McInnes was a member until 1904, the date of his death. Mr. G. R. Harris represented Blake Bros. & Co. of Boston from 1885 to 1904. Mr. W. D. Matthews was a member from 1889 until his death in 1920. Mr. Thomas Skinner has been a member from 1888. Membership of the executive committee was even more continuous. In 1887 this committee was revived with Messrs. Stephen, Van Horne, Smith and Angus as members. Mr. R. B. Angus has been a member since that date.[921] Lord Strathcona was a member until 1915, the date of his death. Sir Edmund Osler has been a member since 1899. Mr. D. McNicoll became a member in 1907 and continued until 1917. During the war period, Mr. Grant Hall and Mr. H. Holt became members. In the[276] more important offices continuity has also been characteristic. Mr. W. C. Van Horne became president in 1890, and Mr. T. G. Shaughnessy vice-president. Mr. Van Horne continued as president until 1899, when he became chairman of the executive committee. He was a member of this committee until his death in 1916. Mr. Shaughnessy became vice-president in 1891 and president in 1899, continuing in that capacity until 1918, when he became chairman of the executive committee and was succeeded by Mr. E. W. Beatty as president. From the year of its inception to 1918 the company has had three presidents, all of whom had been with the road from the beginning. Sir William Van Home and Lord Shaughnessy were typically expert railroad men, and from the standpoint of technical efficiency the road was admirably served.

The continuity and ability of the management were causes and effects of the dominance of individual members as holders of capital stock. In October, 1883,[922] there were 550,000 shares of this stock held by 525 shareholders. These shareholders were scattered through the states of the Union, through the British Isles, and four of the leading countries of Europe, and through different parts of Canada. The State of New York had within its boundaries individuals holding 290,000 shares, the province of Quebec over 100,000, the British Isles over 90,000, Holland 57,000 and France 15,000. Shares were concentrated largely in New York and Montreal. Morton, Bliss & Company held 32,000 shares, Mr. George Stephen 31,000, Morton, Rose & Company 27,500, Mr. D. A. Smith 23,000, Mr. D. McIntyre 20,000, Mr. R. B. Angus, 15,000, and Messrs. J. S. Kennedy and J. J. Hill 10,000 each. In 1915 it was stated that 13·64 per cent. of the shareholders were in Canada, 62·88 per cent. in the United Kingdom, and 10·39 per cent. in the United States. Assuming that slight change[923] has been made since[277] 1915—a reasonable assumption in view of the stable character of the shares as securities—it would appear that 47·8 per cent. of the shares were distributed among 62·88 per cent. of the shareholders in the United Kingdom, and that control from the United Kingdom was not concentrated but rather in the hands of several smaller shareholders; that 24·10 per cent. of the shares were distributed among 10·39 per cent. of the shareholders in the United States, and that control was more distinctly concentrated, and that 17·73 per cent. of the shares were distributed among 13·64 per cent. of the shareholders in Canada—further evidence of concentrated control.[924] In 1921 eleven members of the directorate were resident in Montreal, two members in Toronto, one member each in Winnipeg, and London, England. All the members of the executive committee were resident in Montreal except Sir Edmund Osler, a resident of Toronto. This situation, of course, was rather the result of the fact that the head offices of the company were in Montreal than of any question of control. But generally control remained concentrated in the hands of a continuous management.

The liberal character of Government aid, continuity and efficiency of management, physical expansion of the road, growth of traffic, and the character of securities issued, were interdependent factors upon which depended the disbursement of net earnings. In the period prior to the completion of the main line the attitude of the Government toward the company was of considerable importance. The difficulties of the period from 1870 to 1880 in relation to Government contracts, the economic and national development of Canada which demanded the immediate construction of the road, and the difficulties of construction, made essential construction by private enterprise and necessitated liberal terms. The terms were no less liberal as a result of the experience and ability of the promoters of the private corporation shown in the success attending their efforts in the construction and operation of the St. Paul, Minneapolis and Manitoba Railway, and as a result of an appreciation[278] of the fact that party government involved continued support to the corporation from the date of initiation of construction to the date of completion. The success of the Government was the success of the Canadian Pacific Railway.[925] As a result of this inevitable liberality[926] of the Government, the financial policy of the company during the period prior to the completion of the main line was characterized by issues of stock. The general failure of the company to finance construction through the sale of land grant bonds led to an attempt to sell stock. Earnings derived from roads acquired in Eastern Ontario were far from sufficient to warrant confidence in the company's capital stock, and a device in the nature of a guarantee for payment of dividends in the deposit of funds with the Government, to increase and stabilize the price of stock, failed. This deposit seriously reduced the company's working funds, and tended to destroy the confidence it was hoped the device would create. The payment of dividends to the extent of $2,128,000 to August, 1883, to keep up the price of stock, or to prevent shareholders from sacrificing property[927] because of attacks on the company, had an effect contrary to that intended. With uncertain market conditions, effective hostile attacks on the New York market by the Northern Pacific and on the London market by the Grand Trunk, and the questionableness of the policy itself, stock declined in price. Failure to finance construction through the sale of stock occasioned persistent demands from the Government in which loans were successfully secured at favourable rates. Moreover, governmental patronage was of consequence in stabilizing the position of the company. Objections on the part of the opposition occasioned unusual caution on the part of the Government, but the dependence of the Government on the success of the road made the loans inevitable. Aid in the form of loans from the Government was in part an explanation of[279] the financial policy of the company in issuing stock rather than bonds. The ability of the company to secure this aid was of natural consequence to the character of the securities issued.

As a result of the liberality of the Government, the number of bonds outstanding was relatively small. Consequently with the completion of the main line the net earnings of the company were not unduly burdened in the payment of fixed charges. In 1886 the amount paid[928] in fixed charges (including rentals) totalled $3,068,082 or $687·29 per mile. Throughout the whole period of the company's history it continued to remain of minor importance. In 1890 it had increased to $4,246,618 or $763·23 per mile, in 1899 to $6,816,676 or $973·81 per mile and in 1921 to $11,519,072 or $856·81 per mile. The percentage of fixed charges to net earnings decreased from 55·7 per cent, in 1899 to 30·7 per cent. in 1921. This favourable situation in the later years was not an immediate result of Government aid but an indirect result—through the rapid physical expansion of the road and the increase in traffic which the liberality of the Government had made possible. The rapid increase in net earnings enabled the company through the soundness[280] of its position to secure capital during the later years at a comparatively low rate of interest. Application[929] was made to Parliament in 1889 for power to issue debenture stock for the purpose of consolidating obligations to the company and reducing the interest rate on those obligations. Two years later power[930] was given to raise additional debenture stock for other purposes. To enable the company to secure capital without increasing the fixed charges, the Government was asked to restore the privilege granted in the charter but cancelled in the Loan Act of 1884-5 of issuing 4 per cent. preference stock. In 1893 power[931] was given to issue stock which was non-cumulative, which was limited in quantity to one-half the common stock and which was not to affect any lien created by a mortgage debenture or bond. The depression[932] of the nineties which occasioned a decline in earnings and in the earnings of subsidiary lines, the Duluth, South Shore and Atlantic, and the Minneapolis, St. Paul and Sault Ste. Marie, made impossible the sale of preference stock at a satisfactory price and even made it necessary to reassume £300,000 of this stock negotiated before the depression. With recovery £100,000 was marketed[933] at nearly par in 1897 and £2,285,000 a year later. At the end of the decade, the company had outstanding $26,791,000 of this stock. During the period[281] of rapid expansion after 1900, and the consequent improvement of the company's financial standing, additional capital was secured through the sale of this stock ensuring a low rate of interest and preventing an increase in fixed charges. The amount outstanding increased to $80,681,921 in 1915 and remained at that point to 1921. Most rapid increases were evident during the period of greatest prosperity, from 1911 to 1913, since it was only under these conditions that a security of this character could be sold. During the war it was found necessary to issue other securities.

Fixed charges were also kept at a low level by the sale of 4 per cent. consolidated debenture stocks. Through this form of security capital was again secured at a low rate of interest and with relatively slight difficulty. During the decade from 1890 to 1900 the amount of this stock outstanding increased from $4,380,000 to $54,380,000, the increase being most rapid during the years before the depression. Following the depression a steady increase was evident. With rapid expansion[934] of the road after 1900 consolidated debenture[935] stock increased to $176,284,882 in 1915 and to $238,206,432 in 1921. During the war $40,000,000 of[282] debenture stock was issued[936] as a loan to the British Treasury. The stock was purchased by the Imperial Government at 80 per cent. of its face value and the proceeds, $32,000,000, loaned at an annual interest rate of 5¼ per cent. payable semi-annually. This loan facilitated credit operations of the Imperial Government on the American market and netted the company an annual premium of ½ per cent. In 1921 £4,800,000 was sold on the London market and $25,000,000 in New York. Consolidated debenture stock was issued to secure capital at a low rate of interest and to cancel obligations having a higher rate of interest. Its effect on fixed charges was evident. In 1921 of a total of $11,519,072 of fixed charges, $7,854,544 was due to consolidated stock.

The ability of the company to secure capital at a low rate of interest and to keep fixed charges at a low level occasioned by the rapid expansion of the road was a cause and an effect of the favourable position of the company in the issue of common stock as a security to obtain additional capital. Liberal Government aid, which to a large extent made possible the rapid physical expansion of the road, the marked increase in traffic, and the favourable position of the company from the standpoint of fixed charges, had its effect consequently on the amount of capital stock issued and the dividends paid. To August, 1893, 3 per cent. dividends were paid from a deposit of $15,942,645 made by the company with the Government in accordance with an agreement under the Loan Act, and were not therefore paid from the immediate earnings of the company. To provide for the payment of dividends after the exhaustion of the deposit at that date, a reserve fund was started. Surplus[937] of net earnings after payment of fixed charges was set aside for that purpose. In 1889 this surplus increased 600 per cent. The yearly surplus declined slightly in 1890, but the reserve fund in that year totalled $2,656,433. The[283] rapid accumulation of surplus in 1889 was accomplished through a decline in expenses—particularly in locomotive expenses—despite an increase in traffic and an increase in mileage. The slight decline of surplus in 1890 followed an increase in fixed charges and in expenses, despite a decline in maintenance expenses with an increased mileage of 7 per cent. Gross earnings increased steadily during the two years. From the fund accumulated, a dividend of 1 per cent. on February 17, 1890, and on August 17 and February 17, 1891, was declared. In 1893 the accumulated reserve totalled $1,261,213, but with the depression and the expiration of the guarantee it was exhausted, and in 1895 the rate of dividends declined to 1½ per cent. During the recovery[938] the rate steadily increased, reaching 5 per cent. in 1899. In 1903 it increased to 5½ per cent., in 1904 to 6 per cent., in 1907 to 7 per cent., in 1911 to 8½ per cent., and in 1912 to 10 per cent., remaining at that point throughout the remainder of the company's history. On the stock market C.P.R. quotations accompanied the rise in dividend rates. Following the depression stock increased in price from 50 to 85 in 1897, rose above par in 1901, and reached 139 in 1903, 190 in 1906, 240 in 1911 and the highest point, 276, in 1912. The expansion in traffic and in earnings during the period was not only reflected in an increased dividend rate and in market quotations. The favourable position of the company on the financial market made possible the sale of stock under fortunate circumstances and with an[284] increase in dividend rates came an increase[939] in capital stock. In 1902 an issue of $19,500,000 was authorized and largely sold to shareholders at par. Again in 1904 at the same price another issue of $25,500,000 was sold and largely subscribed by shareholders. In 1913 capital stock had increased to $260,000,000 and on sales a premium had been realized of $45,000,000. From the beginning of the century to 1913 the company had received $240,000,000 from sales of capital stock. Capital was secured from the sale of common stock, particularly during a period of prosperity.

With the depression beginning in 1914, the difficulty of securing capital by the sale of debenture stock at low interest rates led to the issue of $52,000,000 of 6 per cent. note certificates due in 1924 against deferred payments and securities on land to the extent of $57,131,199. During[285] the war similar conditions prevailed and on January 1, 1915, the company issued $8,930,000 of Victoria Rolling Stock and Realty Company equipment trust 4½ per cent. certificates. In addition to capital obtained from these securities, adjustments were made in surplus and reserve accounts to meet necessary expenditures on capital.

The disbursement of total receipts was determined by the character and number of the securities issued. Fixed charges were to a large extent[940] dependent on the issue of consolidated debenture stock and a relatively small proportion of total receipts was absorbed in this item. Dividends on preferred stock[941] were an even smaller proportion of total receipts. In 1921 dividends on this security were less than one-third of fixed charges. Dividends on common stock[942] have taken an increasing share. Prior to 1908[286] fixed charges absorbed a larger share of total receipts than dividends on common stock, but since that year, following the marked expansion of the road, dividends have rapidly increased. An increasing dividend rate and larger issues of stock led to a marked increase in dividends from $9,508,800 in 1908 to $26,000,000 in 1914. Since that year dividends have remained at the latter figure. The remainder of total receipts after the payment of fixed charges and of dividends on preference stock and on common stock accumulated as surplus. As a tribute to the increase in the earning capacity of the road despite an increase in dividends and in fixed charges, surplus has steadily increased following the recovery of the nineties. In 1899 it had increased to $9,614,528, in 1914 to $79,711,092 and in 1921, despite the difficulties of the war, to $128,481,120. In addition in the latter year reserves had been provided for equipment replacement $10,780,420, for steamship replacement $19,185,402 and for contingencies and taxes $46,638,048. Finally the company had over $5,000,000 of cash on hand, and in Government securities (Imperial, Dominion, Provincial and Municipal) $29,327,396.

Total receipts, which depended primarily on net earnings and to a large extent on freight traffic, and the situation in western Canada, were disbursed primarily in dividends on common stock and in the accumulation of surplus. Dividends above a normal return on common stock have, therefore, existed as the result of the expansion of the road in western Canada and have largely been paid from the economic development of that area.



[287]

XI

Conclusion

The history of the Canadian Pacific Railroad is primarily the history of the spread of western civilization over the northern half of the North American continent. The addition of technical equipment described as physical property of the Canadian Pacific Railway Company was a cause and an effect of the strength and character of that civilization. The construction of the road was the result of the direction of energy to the conquest of geographic barriers. The effects of the road were measured to some extent by the changes in the strength and character of that civilization in the period following its construction.

The strength and character of western civilization in North America were the results of the qualities and numbers of its population. The adaptability and virility of this population were evident in the rapidity and directness with which institutions brought from Europe were abandoned or adjusted, or with which new institutions were created to meet effectively conditions imposed by a new environment. For the French, institutions in many cases proved inadequate on account of the difficulties of environment, due to harshness of climate, the inhospitable character of the soil, and the hostility of the natives and other nationalities, and the civilization concerned disappeared. Eventually with an increased knowledge of new conditions, with the necessary adaptability and with the more suitable environment characteristic of Quebec in the St. Lawrence valley, this civilization gained a foothold on the eastern shores of the continent and grew steadily and persistently. In this growth, feudalism as an institution was especially[288] significant. Its centralizing tendencies shown in its advantages from a military standpoint were strengthened by the constant warfare of the Indians and the English, which made essential the concentration of population at strategic points along the St. Lawrence basin. The strength of this tendency toward centralization more than offset the effects of the individualism essential to the fur trade, which with the ease of penetration to the interior by waterways was especially pronounced. The opposition of these effects was evident in the number of coureurs de bois and in the attempts of the French authorities to prevent the population from taking to this life, but generally the seigneurial system, the effects of military struggle, the character of the St. Lawrence river basin, the influences of language, religion and customs promoted the development of homogeneous settlement, and the growth of a distinct national feeling.

For the English and other nationalities, difficulties of environment were also apparent in the failures of early settlements, although farther south along the Atlantic coast conditions, especially as to climate, were more favourable. But again adjustments essential to the existence and growth of settlement were accomplished. Monopolies as a part of the institutional equipment, especially of the English, and the consequent centralizing tendencies, largely disappeared because of the relatively minor importance of military exigencies. The inaccessibility of the interior, and the consequent disregard of the fur trade, and attention to agriculture, fishing, lumbering and the extractive industries in general, were conditions promoting a steady growth of settlement, a feeling of solidarity and the development of enterprise, initiative and aggressiveness.

The constant expansion westward of English settlement especially in the northern section of the Atlantic seaboard—of what is now the United States—led to increased friction with the French settlements along the St. Lawrence and eventually to the struggle for supremacy of the North American continent. In this struggle, lack of cohesion in the French settlements stretching from the mouth of the St. Lawrence to the mouth of the Mississippi, and effectiveness of British naval supremacy, were determining factors[289] leading to the disappearance of French control. Following this result the aggressiveness of English colonists became more in evidence and westward expansion became more pronounced. In turn there came the struggle against control over the colonies exercised by Great Britain and the success of the colonists in territory in which British naval supremacy was of slight avail.

Westward colonization by English settlers received fresh stimulus with this victory, and settlements were established along the north shores of Lake Ontario and Lake Erie, or in the territory known as Upper Canada. Of these settlers, the majority were known as United Empire Loyalists, but essentially they were the same aggressive, enterprising type as the New England colonists. Demands on the part of these settlers for assistance from the British Government, anxious as to the outcome of expansion to the south, were met with substantial liberality. This general encouragement given to emigration for the settlement of Upper Canada led to the development of a distinct feeling of dependence on Great Britain.

These general characteristics of the settlers of Upper Canada contrasted with the characteristics of the French in Lower Canada. Solidarity developed in the centralization of the old regime especially in the struggle leading to the downfall of New France and, strengthened by devices of the British Government intended to foster their loyalty to the new authorities, was at variance with the aggressive individualism of the population of Upper Canada. Demands of the settlers of Upper Canada for an outlet by the St. Lawrence and for all the rights implied in self-government led to differences which were settled in the Act of 1791. The loyalty of Upper Canada and of Lower Canada encouraged by these adjustments of the British Government was strengthened by the necessity of co-operation occasioned by the attacks of the United States in 1812, but the variance between the attitudes of Upper Canada and Lower Canada continued. The loyalty to Great Britain characteristic of Upper Canada during this early period and the particular aggressiveness of this settlement were evident in later developments. Possibilities of advantage from the diver[290]sion of traffic of the rapidly expanding western states down the St. Lawrence made advisable appeals for aid from the British Government leading to the construction of canals. The attempts to improve the St. Lawrence occasioned difficulties with the French of Lower Canada, which were eventually settled, after Lord Durham's Report, by the Act of Union.

The attitude of dependence on Great Britain characteristic of English colonies was strengthened by the persistent appeals and the success with which they were met. The general aggressiveness of these settlers and especially of the trading interests led to the tariff adjustments of 1843 directed to the diversion of traffic along the St. Lawrence canals and through Montreal, and following the disappearance of advantages gained with the adjustments through the abolition of the Corn Laws in 1846 led to the Annexationist Manifesto in 1849. Of more significance, renewed efforts were made to capture the trade of the western states in the construction of the Grand Trunk as an offset to the competitive disadvantages of canals. To relieve the situation further negotiations for reciprocity were successfully terminated in 1854. The abrogation of this treaty in 1866, the feeling of jealousy and anxiety as to the attitude of the United States and the demand for improvements in transportation giving an outlet to the sea during the winter season (always with a view to a larger share of the traffic of the western states) led to further requests for aid from Great Britain and finally brought the construction of the Intercolonial and Confederation.

Generally, during the period prior to confederation, Upper Canada had developed a spirit of dependence on Great Britain which might be characterized, with no implication of condemnation, as unhealthy. The aggressive, individualistic character of its early settlers had been strengthened under the stress of circumstances and had developed especially in the trading and governing classes to the point of selfishness and of acquisitiveness. Frequent advantage was taken of the possibilities of securing aid from Great Britain for the purpose of constructing improvements designed to secure trade from the western states.[291] This acquisitive temperament was especially significant in the attitude of Canada, especially of Toronto and Upper Canada, toward the increased trade between the United States and the settlements which had grown up in the Hudson Bay drainage basin and in the Pacific coast drainage basin. Trade from the Red River settlement with the United States had increased greatly by virtue of direct communication and its potentialities were early recognized by Canada. In the Pacific coast district (now British Columbia) the discovery of the gold-mines and the consequent rapid immigration and development of the country were occasions for further alarm. The solicitude of Canada and of Great Britain as to these areas and their trade with the United States hastened an agreement with British Columbia which led eventually to the construction of the Canadian Pacific railroad.

This agreement, resulting largely from the acquisitiveness characteristic of eastern Canada, led to difficulties, since by virtue of the same characteristics eastern Canada found itself unable to give the support necessary to the fulfilment of its obligations. The refusal of the people to bear an increase in taxation to construct the road, the jealousies of Toronto and Montreal, the dependence on private enterprise and the accompanying fiasco in the Pacific Scandal, the gradual process of construction under the Mackenzie regime, the appeals to Great Britain for aid, and the liberality of the contract with the Canadian Pacific in 1881—a liberality based on a money subsidy which it was hoped could be recovered from sales of lands in western Canada, and on land grants in the same territory—were evidences of these particular characteristics of the national outlook. The terms of the contract with the Canadian Pacific Railway Company were designed to develop the trade of the north-west and of British Columbia, and to divert that trade from the United States to eastern Canada.

Under these conditions, the Canadian Pacific Railway was constructed through the long stretch of unproductive land difficult territory north of Lake Superior, and traffic was developed in western Canada by means of various devices and with the utmost possible rapidity. Private[292] enterprise had undertaken the task, and by virtue of the liberality of the terms, the general attitude of the Canadian Government, the spread of population in the western states, the completion of the St. Paul, Minneapolis and Manitoba Railway to Winnipeg, and the knowledge gained of the nature of the task during the earlier years, the road was completed to the Pacific coast in 1886. Its completion, moreover, found the Canadian Pacific Railway Company in a satisfactory financial condition.

The addition of the Canadian Pacific Railroad to the technological equipment of Western civilization and the conditions under which it was accomplished have had many and varied effects. Settlement was advanced in every possible way. Immigration increased rapidly as a result of the efforts of the company and of the Government. Branch lines were laid out first in the territory south of the main line and later throughout the whole area. These branches were strategically located, with reference to possible, competitors, to the development of traffic, and to the sale of the company's land. The marked increase in the production of grain and especially of wheat in western Canada, stimulated by efforts to develop traffic, and favoured by a world movement characterized by a general rise in the price of wheat, and its diversion over lines to eastern Canada, made necessary the improvement and increased control of transportation facilities in the latter area. According to plan, the economic development of the west stimulated the economic development of the east. The marked prosperity of Canada, especially from 1896 to 1913, paralleled the prosperity, the expansion, and the integration of the Canadian Pacific during that period. Following the general progress of Canada, occasioned by the opening of the west, advantage was taken by eastern Canada (always with an eye to the main chance) of stimulating progress still further by the construction of the Canadian Northern and the Grand Trunk Pacific. To the difficulties which overtook these roads were added the difficulties of the Intercolonial and the Grand Trunk, which have suffered losses partly as a result of the effectiveness of competition from Canadian Pacific lines in eastern Canada. Such were some of the[293] important effects of the construction of the Canadian Pacific Railroad.

The diversion of traffic to eastern Canada by the Canadian Pacific and other roads has been accomplished successfully, but to some extent at least at the expense of Western Canada and with considerable protest from that area. The existence of a large surplus on the balance sheet of the Canadian Pacific Railway Company and the consistent payment of large dividends,[943] accomplished through a high dividend rate and relatively large issues of common stock, have been shown to be largely the result of the freight situation[944] in western Canada. The successful protests of western Canada against the monopoly clause did not materially change the situation, nor did the Crows Nest Pass Agreement or the appointment of the Board of Railway Commissioners. Nor does there seem to exist any prospect of immediate change. The general acquisitive attitude of eastern Canada, the result of its historical background, will scarcely sanction an increase in the deficits of the Canadian National Railways[945] in order to allow a lowering of rates in western Canada, nor will it agree to an increase of rates in eastern Canada. It will scarcely permit the reduction of a tariff[946] which would endanger the traffic of the National Railways, consequently increasing their deficits and at the same time diverting traffic to the United States. It will scarcely be tactless enough to increase taxes on the Canadian Pacific to reduce its dividends and its surplus[294] because of the resulting disturbance to the financial situation in Canada, because of the well-known astuteness of that organization and because of a possible decline in morale which might result.

On the other hand, the tax which has been paid by western Canada as a result of the particular attitude of eastern Canada has provoked a movement the strength of which is difficult to estimate. The land situation involving the holding of alternate sections by the Canadian Pacific seriously hampers social development. With tax exemption, the construction of schools is restricted. The taxation problem, in general, has been seriously increased because of tax exemption privileges. The immigration problem has followed, and will follow, the necessities of the railroads. The question as to whether the prairie provinces shall control their own natural resources has become increasingly difficult. The rise of the Progressive party, its increasing strength with increasing population in western Canada—a population with characteristics similar to those of eastern Canada—with its attitude toward the railway rate problem, toward the natural resources question, and toward the tariff, will become increasingly significant, but prediction is dangerous. On the whole, important as the movement in western Canada must become for the future development of the country, the dominance of eastern Canada over western Canada seems likely to persist. Western Canada has paid for the development of Canadian nationality, and it would appear that it must continue to pay. The acquisitiveness of eastern Canada shows little sign of abatement.

The Canadian Pacific Railway, as a vital part of the technological equipment of western civilization, has increased to a very marked extent the productive capacity of that civilization. It is hypothetical to ask whether under other conditions production would have been increased or whether such production would have contributed more to the welfare of humanity.



[295]

Appendix "A"

TERMS OF AGREEMENT OF ENTRANCE OF BRITISH COLUMBIA IN UNION

"The Government of the Dominion undertake to secure the commencement simultaneously, within two years from the date of union, of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected east of the Rocky Mountains towards the Pacific, to connect the seaboard of British Columbia with the railway system of Canada; and further, to secure the completion of such railway within ten years from the date of union. And the Government of British Columbia agree to convey to the Dominion Government, in trust, to be appropriated in such manner as the Dominion Government may deem advisable, in furtherance of the construction of the said railway, a similar extent of public lands along the line of the railway throughout its entire length in British Columbia, (not to exceed, however, 20 miles on each side of the said line,) as may be appropriated for the same purpose by the Dominion Government from the public lands in the North-West Territories and Province of Manitoba; provided that the quantity of land which may be held under the pre-emption right or by the Crown grant within the limits of the tract of land in British Columbia to be so conveyed to the Dominion Government shall be made good to the Dominion from the contiguous public lands; and provided further that until the commencement, within two years, as aforesaid, from the date of the union, of the construction of the said railway, the Government of British Columbia shall not sell or alienate any further portions of the public lands of British Columbia in any other way than under the right of pre-emption requiring the actual residence of the pre-emptor on the land claimed by him. In consideration of the land to be so conveyed in aid of the construction of the said railway, the Dominion Government agree to pay British Columbia, from date of union, the sum of $100,000 per annum, in half-yearly payments in advance." Article II, Order in Council respecting the Province of British Columbia Statutes of Canada 1872, p. lxxxviii.



[296]

Appendix "B"

44 VICTORIA

CHAPTER I

AN ACT RESPECTING THE CANADIAN PACIFIC RAILWAY

(Assented to February 15, 1881)

Preamble.

Whereas by the terms and conditions of the admission of British Columbia into Union with the Dominion of Canada, the Government of the Dominion has assumed the obligation of causing a railway to be constructed, connecting the seaboard of British Columbia with the railway system of Canada;

Preference of Parliament for construction by a company.

And whereas the Parliament of Canada has repeatedly declared a preference for the construction and operation of such Railway by means of an incorporated Company aided by grants of money and land, rather than by the Government, and certain Statutes have been passed to enable that course to be followed, but the enactments therein contained have not been effectual for that purpose;

Greater part still unconstructed.

And whereas certain sections of the said railway have been constructed by the Government, and others are in course of construction, but the greater portion of the main line thereof has not yet been commenced or placed under contract, and it is necessary for the development of the North-West Territory and for the preservation of the good faith of the Government in the performance of its obligations, that immediate steps should be taken to complete and operate the whole of the said railway;

Contract entered into.

And whereas, in conformity with the expressed desire of Parliament, a contract has been entered into for the construction of the said portion of the main line of the said railway, and for the permanent working of the whole line thereof, which contract with the schedule annexed has been laid before Parliament for its approval and a copy thereof[297] is appended hereto, and it is expedient to approve and ratify the said contract, and to make provision for the carrying out of the same:

Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:—

Contract approved.

1. The said contract, a copy of which, with schedule annexed, is appended hereto, is hereby approved and ratified, and the Government is hereby authorized to perform and carry out the conditions thereof, according to their purport.

Charter may be granted.
Publication and effect of charter.

2. For the purpose of incorporating the persons mentioned in the said contract, and those who shall be associated with them in the undertaking, and of granting to them the powers necessary to enable them to carry out the said contract according to the terms thereof, the Governor may grant to them in conformity with the said contract, under corporate name of the Canadian Pacific Railway Company, a charter conferring upon them the franchises, privileges, and powers embodied in the schedule to the said contract and to this Act appended, and such charter, being published in the Canada Gazette, with any Order or Orders in Council of the Parliament of Canada, and shall be held to be an Act of incorporation within the meaning of the said contract.

Certain grants of money and land may be made to the company chartered.
Conversion of money grant authorized.

3. Upon the organization of the said Company, and the deposit by them, with the Government, of one million dollars in cash, or securities approved by the Government, for the purpose in the said contract provided, and in consideration of the completion and perpetual and efficient operation of the railway by the said Company, as stipulated in the said contract, the Government may grant to the Company a subsidy of twenty-five million dollars in money, and twenty-five million acres of land, to be paid and conveyed to the Company in the manner and proportions, and upon the terms and conditions agreed upon in the said contract, and may also grant to the Company the land for right of way, stations, and other purposes, and such other privileges as are provided for in the said contract. And in lieu of the payment of the said money subsidy direct to the Company, the Government may convert the same, and any interest accruing thereon, into a fund for the payment, to the extent of such fund, of interest on the bonds of the Company, and may pay such interest accordingly; the whole in manner and form as provided for in the said contract.

Certain materials may be admitted free of duty.

4. The Government may also permit the admission free of duty, of all steel rails, fish plates, and other fastenings, spikes, bolts and nuts, wire, timber and all material for bridges to be used in the original construction of the said[298] Canadian Pacific Railway, as defined by the Act thirty-seventh Victoria, chapter fourteen, and of a telegraph line in connexion therewith, and all telegraphic apparatus required for the first equipment of such telegraph line, the whole as provided by the tenth section of the said contract.

Company to have possession of completed portions of the railway.
Conveyance thereof to company when the contract is performed.

5. Pending the completion of the eastern and central sections of the said railway as described in the said contract, the Government may also transfer to the said Company the possession and right to work and run the several portions of the Canadian Pacific Railway as described in the said Act thirty-seventh Victoria, chapter fourteen, which are already constructed, and as the same shall be hereafter completed; and upon the completion of the said eastern and central sections the Government may convey to the Company, with a suitable number of station buildings, and with water service (but without equipment), those portions of the Canadian Pacific Railway constructed, or agreed by the said contract to be constructed by the Government, which shall then be completed; and upon completion of the remainder of the portion of the said railway to be constructed by the Government, that portion also may be conveyed by the Government to the Company, and the Canadian Pacific Railway defined as aforesaid shall become and be thereafter the absolute property of the Company; the whole, however, upon the terms and conditions, and subject to the restrictions and limitations contained in the said contract.

Security may be taken for operation of the railway.

6. The Government shall also take security for the continuous operation of the said Railway during the ten years next subsequent to the completion thereof in the manner provided by the said contract.


SCHEDULE

This Contract and Agreement Made Between Her Majesty the Queen, acting in respect of the Dominion of Canada and herein represented and acting by the Honourable Sir Charles Tupper, K.C.M.G., Minister of Railways and Canals and George Stephen and Duncan McIntyre, of Montreal, in Canada, John S. Kennedy of New York, in the State of New York, Richard B. Angus, and James J. Hill, of St. Paul, in the State of Minnesota, Morton, Rose & Co., of London, England, and Kohn, Reinach & Co., of Paris, France, Witnesses:

That the parties hereto have contracted and agreed with each other as follows, namely:—

Interpretation clause.
Eastern section.
Lake Superior Section.
Central Section.
C.P. Railway.
Company.

1. For the better interpretation of this contract, it is hereby declared that the portion of railway hereinafter[299] called the Eastern section, shall comprise that part of the Canadian Pacific Railway to be constructed, extending from the Western terminus of the Canada Central Railway, near the East end of Lake Nipissing, known as Callander Station, to a point of junction with that portion of the said Canadian Pacific Railway now in course of construction extending from Lake Superior to Selkirk on the East side of Red River; which latter portion is hereinafter called the Lake Superior section. That the portion of said railway, now partially in course of construction, extending from Selkirk to Kamloops, is hereinafter called the Central Section; and the portion of said railway now in course of construction, extending from Kamloops to Port Moody, is hereinafter called the Western section. And that the words, "the Canadian Pacific Railway," are intended to mean the entire railway, as described in the Act thirty-seventh Victoria, chapter fourteen. The individual parties hereto are hereinafter described as the Company; and the Government of Canada is hereinafter called the Government.

Security to be given by the company.
Conditions thereof.

2. The contractors, immediately after the organization of the said Company, shall deposit with the Government $1,000,000 in cash or approved securities, as a security for the construction of the railway hereby contracted for. The Government shall pay to the Company interest on the cash deposited at the rate of four per cent. per annum, half-yearly, and shall pay over to the Company the interest received upon securities deposited—the whole until default in the performance of the conditions hereof, or until the repayment of the deposit; and shall return the deposit to the Company on the completion of the railway, according to the terms hereof, with any interest accrued thereon.

Eastern and central sections to be constructed by company described.
Standard of railway and provision in case of disagreement as to conformity to it.

3. The Company shall lay out, construct and equip the said Eastern section, and the said Central section, of a uniform gauge of 4 feet 8½ inches; and in order to establish an approximate standard whereby the quality and the character of the railway and of the materials used in the construction thereof, and of the equipment thereof may be regulated, the Union Pacific Railway of the United States as the same was when first constructed, is hereby selected and fixed as such standard. And if the Government and the Company should be unable to agree as to whether or not any work done or materials furnished under this contract are in fair conformity with such standard, or as to any other question of fact, excluding questions of law, the subject of disagreement shall be, from time to time, referred to the determination of three referees, one of whom shall be chosen by the Govern[300]ment, one by the Company, and one by the two referees so chosen, and such referees shall decide as to the party by whom the expense of such reference shall be defrayed. And if such two referees should be unable to agree upon a third referee, he shall be appointed at the instance of either party hereto, after notice to the other, by the Chief Justice of the Supreme Court of Canada. And the decision of such referees, or of the majority of them, shall be final.

Commencement and regular progress of the work.
Period for completion.

4. The work of construction shall be commenced at the eastern extremity of the Eastern section not later than the first day of July next, and the work upon the Central section shall be commenced by the Company at such point towards the eastern end thereof on the portion of the line now under construction as shall be found convenient and as shall be approved by the Government, at a date not later than the 1st May next. And the work upon the Eastern and Central sections shall be vigorously and continuously carried on at such rate of annual progress on each section as shall enable the Company to complete and equip the same and each of them, in running order, on or before the first day of May, 1891, by which date the Company hereby agree to complete and equip the said sections in conformity with this contract, unless prevented by the act of God, the Queen's enemies, intestine disturbances, epidemics, floods, or other causes beyond the control of the Company. And in case of the interruption or obstruction of the work of construction from any of the said causes, the time fixed for the completion of the railway shall be extended for a corresponding period.

As to portion of central section made by Government.

5. The Company shall pay to the Government the cost, according to the contract, of the portion of railway, 100 miles in length, extending from the city of Winnipeg westward, up to the time at which the work was taken out of the hands of the contractor and the expenses since incurred by the Government in the work of construction, but shall have the right to assume the said work at any time and complete the same paying the cost of construction as aforesaid, so far as the same shall then have been incurred by the Government.

Government to construct portions now under contract within periods fixed by contract.

6. Unless prevented by the act of God, the Queen's enemies, intestine disturbances, epidemics, floods or other causes beyond the control of the Government, the Government shall cause to be completed the said Lake Superior section by the dates fixed by the existing contracts for the construction thereof; and shall also cause to be completed the portion of the said Western section now under contract, namely, from Kamloops to Yale, within the period fixed[301] by the contracts therefor, namely, by the thirtieth day of June, 1885; and shall also cause to be completed, on or before the first day of May, 1891, the remaining portion of the said Western section, lying between Yale and Port Moody, which shall be constructed of equally good quality in every respect with the standard hereby created for the portion hereby contracted for. And the said Lake Superior section, and the portions of the said Western section now under contract, shall be completed as nearly as practicable according to the specifications and conditions of the contracts therefor, except in so far as the same have been modified by the Government prior to this contract.

Completed railway to be property of company.
Transfer of portions constructed by Government.
Company to operate the railway for ever.

7. The railway constructed under the terms hereof shall be the property of the Company: and pending the completion of the Eastern and Central sections, the Government shall transfer to the Company the possession and right to work and run the several portions of the Canadian Pacific Railway already constructed or as the same shall be completed. And upon the completion of the Eastern and Central sections, the Government shall convey to the Company, with a suitable number of station buildings and with water service (but without equipment), those portions of the Canadian Pacific Railway constructed or to be constructed by the Government which shall then be completed; and upon completion of the remainder of the portion of railway to be constructed by the Government, that portion shall also be conveyed to the Company; and the Canadian Pacific Railway shall become and be thereafter the absolute property of the Company. And the Company shall thereafter and for ever efficiently maintain, work and run the Canadian Pacific Railway.

Company to equip portions transferred to them.

8. Upon the reception from the Government of the possession of each of the respective portions of the Canadian Pacific Railway, the Company shall equip the same in conformity with the standard herein established for the equipment of the sections hereby contracted for, and shall thereafter maintain and efficiently operate the same.

Subsidy in money and land.

9. In consideration of the premises, the Government agree to grant to the Company a subsidy in money of $25,000,000 and in land of 25,000,000 acres, for which subsidies the construction of the Canadian Pacific Railway shall be completed and the same shall be equipped, maintained and operated—the said subsidies respectively to be paid and granted as the work of construction shall proceed, in manner and upon the conditions following, that is to say:—

Apportionment of money.

(a) The said subsidy in money is hereby divided and appropriated as follows, namely:[302]

Central Section.

Assumed at 1,350 miles:—
1st—900 miles at $10,000 per mile $9,000,000
2nd—450   "     "   13,333   "     " 6,000,000
—————
15,000,000

Eastern Section.

Assumed at 650 miles, subsidy equal to $15,384.61 per mile  10,000,000
—————
$25,000,000
And of land.

And the said subsidy in land is hereby divided and appropriated as follows, subject to the reserve hereinafter provided for:—

Central Section.

1st—900 miles at 12,500 acres per mile 11,250,000
2nd—450   "     "  16,666.66 "     "    " 7,500,000
—————
18,750,000

Eastern Section.

Assumed at 650 miles, subsidy equal to 9,615.35 acres per mile  6,250,000
 ————
25,000,000
When to be paid or granted.
Option of company to take terminable bonds.

(b) Upon the construction of any portion of the railway hereby contracted for, not less than 20 miles in length, and the completion thereof so as to admit of the running of regular trains thereon, together with such equipment thereof as shall be required for the traffic thereon, the Government shall pay and grant to the Company the money and land subsidies applicable thereto, according to the division and appropriation thereof made as hereinbefore provided; the Company having the option of receiving in lieu of cash terminable bonds of the Government bearing such rate of interest, for such period and nominal amount as may be arranged, and which may be equivalent according to actuarial calculation to the corresponding cash payment—the government allowing four per cent. interest on moneys deposited with them.

Provision as to materials for construction delivered by company in advance.

(c) If at any time the Company shall cause to be delivered on or near the line of the said railway, at a place satisfactory to the Government, steel rails and fastenings to be used in the requirements for such construction, the Government, on the requisition of the Company, shall, upon such terms and conditions as shall be determined by the Government, advance thereon three-fourths of the value thereof at the place of delivery. And a proportion of the amount so advanced shall be deducted, according to such terms and conditions, from the subsidy to be thereafter paid, upon the settlement for each section of 20 miles of railway—which[303] proportion shall correspond with the proportion of such rails and fastenings which have been used in the construction of such sections.

Option of the company during a certain time to substitute payment of interest on certain bonds instead of issuing land grant bonds.
Deposit of proceeds of sale of such bonds.
Payments to company out of such deposits.
Payment by delivery of bonds.
Sinking fund.

(d) Until the first day of January, 1882, the Company shall have the option, instead of issuing land grant bonds as hereinafter provided, of substituting the payment by the Government of the interest (or part of the interest) on bonds of the Company mortgaging the railway and the lands to be granted by the Government, running over such term of years as may be approved by the Governor in Council, in lieu of the cash subsidy hereby agreed to be granted to the Company or any part thereof—such payments of interest to be equivalent according to actuarial calculation to the corresponding cash payment, the Government allowing four per cent. interest on moneys deposited with them; and the coupons representing the interest on such bonds shall be guaranteed by the Government to the extent of such equivalent. And the proceeds of the sale of such bonds to the extent of not more than $25,000,000 shall be deposited with the Government, and the balance of such proceeds shall be placed elsewhere by the Company, to the satisfaction and under the exclusive control of the Government; failing which last condition the bonds in excess of those sold shall remain in the hands of the Government. And from time to time as the work proceeds, the Government shall pay over to the Company: firstly, out of the amount so to be placed by the Company—and, after the expenditure of that amount, out of the amount deposited with the Government—sums of money bearing the same proportion to the mileage cash subsidy hereby agreed upon, which the net proceeds of such sale (if the whole of such bonds are sold upon the issue thereof, or, if such bonds be not all then sold, the net proceeds of the issue, calculated at the rate at which the sale of part of them shall have been made), shall bear to the sum of $25,000,000. But if only a portion of the bond issue be sold, the amount earned by the Company according to the proportion aforesaid shall be paid to the Company, partly out of the bonds in the hands of the Government, and partly out of the cash deposited with the Government, in similar proportions to the amount of such bonds sold and remaining unsold respectively; and the Company shall receive the bonds so paid, as cash, at the rate at which the said partial sale thereof shall have been made. And the Government will receive and hold such sum of money towards the creation of a sinking fund for the redemption of such bonds, and upon such terms and conditions as shall be agreed upon between the Government and the Company.[304]

Alteration in apportionment of money grant in such case.

(e) If the Company avail themselves of the option granted by clause d, the sum of $2,000 per mile for the first eight hundred miles of the Central section shall be deducted pro rata from the amount payable to the Company in respect of the said eight hundred miles, and shall be appropriated to increase the mileage cash subsidy appropriated to the remainder of the said Central section.

Grant of land required for railway purposes.
Admission of certain materials free of duty.
Sale of certain materials to company by Government.

10. In further consideration of the premises, the Government shall also grant to the Company the lands required for the road-bed of the railway, and for its stations, station grounds, workshops, dock ground and water frontage at the termini on navigable waters, buildings, yards and other appurtenances required for the convenient and effectual construction and working of the railway, in so far as such land shall be vested in the Government. And the Government shall also permit the admission free of duty of all steel rails, fish plates and other fastenings, spikes, bolts and nuts, wire, timber and all material for bridges to be used in the original construction of the railway, and of a telegraph line in connexion therewith, and all telegraphic apparatus required for the first equipment of such telegraph line; and will convey to the Company, at cost price, with interest, all rails and fastenings bought in or since the year 1879, and other materials for construction in the possession of or purchased by the Government, at a valuation—such rails, fastenings and materials not being required by it for the construction of the said Lake Superior and Western sections.

Provision respecting land grant.
Case of deficiency of land on line of railway provided for.
Selection by company in such case, with consent of Government.

11. The grant of land, hereby agreed to be made to the Company, shall be so made in alternate sections of 640 acres each, extending back 24 miles deep, on each side of the railway, from Winnipeg to Jasper House, in so far as such lands shall be vested in the Government—the Company receiving the sections bearing uneven numbers. But should any of such sections consist in a material degree of land not fairly fit for settlement, the Company shall not be obliged to receive them as part of such grant; and the deficiency thereby caused and any further deficiency which may arise from the insufficient quantity of land along the said portion of railway, to complete the said 25,000,000 acres, or from the prevalence of lakes and water stretches in the sections granted (which lakes and water stretches shall not be computed in the acreage of such sections), shall be made up from other portions in the tract known as the fertile belt, that is to say, the land lying between parallels 49 and 57 degrees of north latitude, or elsewhere at the option of the Company, by the grant therein of similar alternate sections extending back 24 miles deep on each side of any branch line or lines of railway to be located by the Company,[305] and to be shown on a map or plan thereof deposited with the Minister of Railways; or of any common front line or lines agreed upon between the Government and the Company—the conditions hereinbefore stated as to lands not fairly fit for settlement to be applicable to such additional grants. And the Company may, with the consent of the Government, select in the North-West Territories any tract or tracts of land not taken up as a means of supplying or partially supplying such deficiency. But such grants shall be made only from lands remaining vested in the Government.

12. The Government shall extinguish the Indian title affecting the lands herein appropriated, and to be hereafter granted in aid of the railway.

Location of railway between certain terminal points.

13. The Company shall have the right, subject to the approval of the Governor in Council, to lay out and locate the line of the railway hereby contracted for, as they may see fit, preserving the following terminal points, namely: from Callander station to the point of junction with the Lake Superior section; and from Selkirk to the junction with the Western section at Kamloops by way of the Yellow Head Pass.

Power to construct branches.
Lands necessary for the same.

14. The Company shall have the right from time to time to lay out, construct, equip, maintain and work branch lines of railway from any point or points along their main line of railway, to any point or points within the territory of the Dominion. Provided always, that before commencing any branch they shall first deposit a map and plan of such branch in the Department of Railways. And the Government shall grant to the Company the lands required for the road-bed of such branches, and for the stations, station grounds, buildings, workshops, yards and other appurtenances requisite for the efficient construction and working of such branches, in so far as such lands are vested in the Government.

Restrictions as to competing lines for a limited period.

15. For twenty years from the date hereof, no line of railway shall be authorized by the Dominion Parliament to be constructed South of the Canadian Pacific Railway, from any point at or near the Canadian Pacific Railway, except such line as shall run South West or to the Westward of South West; nor to within fifteen miles of Latitude 49. And in the establishment of any new Province in the North-West Territories, provision shall be made for continuing such prohibition after such establishment until the expiration of the same period.

Exemption from taxation in N.W. territories.

16. The Canadian Pacific Railway, and all stations and station grounds, workshops, buildings, yards and other property, rolling stock and appurtenances required and used for the construction and working thereof, and the[306] capital stock of the Company, shall be for ever free from taxation by the Dominion, or by any Province hereafter to be established, or by any Municipal Corporation therein; and the lands of the Company, in the North-West Territories, until they are either sold or occupied, shall also be free from such taxation for 20 years after the grant thereof from the Crown.

Land grant.
Their nature and conditions of issue by the company.
Deposit with Government: for what purposes and on what conditions.
If the company make no default in operating railway.
In case of such default.

17. The Company shall be authorized by their Act of incorporation to issue bonds, secured upon the land granted and to be granted to the Company, containing provisions for the use of such bonds in the acquisition of lands, and such other conditions as the Company shall see fit—such issue to be for $25,000,000. And should the Company make such issue of land grant bonds, then they shall deposit them in the hands of the Government; and the Government shall retain and hold one-fifth of such bonds as security for the due performance of the present contract in respect of the maintenance and continuous working of the railway by the Company, as herein agreed, for ten years after the completion thereof, and the remaining $20,000,000 of such bonds shall be dealt with as hereinafter provided. And as to the said one-fifth of the said bonds, so long as no default shall occur in the maintenance and working of the said Canadian Pacific Railway, the Government shall not present or demand payment of the coupons of such bonds, nor require payment of any interest thereon. And if any of such bonds, so to be retained by the Government, shall be paid off in the manner to be provided for the extinction of the whole issue thereof, the Government shall hold the amount received in payment thereof as security for the same purposes as the bonds so paid off, paying interest thereon at four per cent. per annum so long as default is not made by the Company in the performance of the conditions hereof. And at the end of the said period of ten years from the completion of the said railway, if no default shall then have occurred in such maintenance and working thereof, the said bonds, or if any of them shall then have been paid off, the remainder of said bonds and the money received from those paid off, with accrued interest, shall be delivered back by the Government to the Company with all the coupons attached to such bonds. But if such default should occur, the Government may thereafter require payment of interest on the bonds so held and shall not be obliged to continue to pay interest on the money representing bonds paid off; and while the Government shall retain the right to hold the said portion of the said land grant bonds, other securities satisfactory to the Government may be substituted for them by the Company, by agreement with the Government.[307]

Provision if such bonds are sold faster than lands are earned by the company, and deposit on interest with Government, and payments by Government to company.
Lands to be granted subject to such bonds.

18. If the Company shall find it necessary or expedient to sell the remaining $20,000,000 of the land grant bonds or a larger portion thereof than in the proportion of one dollar for each acre of land then earned by the Company, they shall be allowed to do so, but the proceeds thereof, over and above the amount to which the Company shall be entitled as herein provided, shall be deposited with the Government. And the Government shall pay interest upon such deposit half-yearly, at the rate of four per cent. per annum, and shall pay over the amount of such deposit to the Company from time to time, as the work proceeds, in the same proportions, and at the same times and upon the same conditions as the land grant—that is to say: the Company shall be entitled to receive from the Government out of the proceeds of the said land grant bonds, the same number of dollars as the number of acres of the land subsidy which shall then have been earned by them, less one-fifth thereof, that is to say, if the bonds are sold at par, but if they are sold at less than par, then a deduction shall be made therefrom corresponding to the discount at which such bonds are sold. And such land grant shall be conveyed to them by the Government, subject to the charge created as security for the said land grant bonds, and shall remain subject to such charge till relieved thereof in such manner as shall be provided for at the time of the issue of such bonds.

Company to pay certain expenses.

19. The Company shall pay any expenses which shall be incurred by the Government in carrying out the provisions of the last two preceding clauses of this contract.

If land bonds are not issued, one-fifth of land to be retained as security.
How to be disposed of.

20. If the Company should not issue such land grant bonds, then the Government shall retain from out of each grant to be made from time to time, every fifth section of the lands hereby agreed to be granted, such lands to be so retained as security for the purposes and for the length of time, mentioned in section eighteen hereof. And such lands may be sold in such manner and at such prices as shall be agreed upon between the Government and the Company; and in that case the price thereof shall be paid to, and held by the Government for the same period, and for the same purposes as the land itself, the Government paying four per cent. per annum interest thereon. And other securities satisfactory to the Government may be substituted for such lands or money by agreement with the Government.

Company to be incorporated as by Schedule A.

21. The Company to be incorporated, with sufficient powers to enable them to carry out the foregoing contract, and this contract shall only be binding in the event of an Act of incorporation being granted to the Company in the form hereto appended as Schedule A.[308]

Railway Act to apply.
Exceptions.

22. The Railway Act of 1879, in so far as the provisions of the same are applicable to the undertaking referred to in this contract, and in so far as they are not inconsistent herewith or inconsistent with or contrary to the provisions of the Act of incorporation to be granted to the Company, shall apply to the Canadian Pacific Railway.

In witness whereof the parties hereto have executed these presents at the City of Ottawa, this twenty-first day of October, 1880.

(Signed) Charles Tupper,     Minister of Railways and Canals. Geo. Stephen, Duncan McIntyre, J. S. Kennedy, R. B. Angus, J. J. Hill,     Per pro. Geo. Stephen. Morton, Rose & Co., Kohn, Reinach & Co.,     By P. Du P. Grenfell. Signed in presence of F. Braun, and Seal of the Department hereto affixed by Sir Charles Tupper, in presence of (Signed) F. Braun.

SCHEDULE A, REFERRED TO IN THE FOREGOING CONTRACT

Incorporation

Certain persons incorporated.
Corporate name.

1. George Stephen, of Montreal, in Canada, Esquire; Duncan McIntyre, of Montreal, aforesaid, Merchant; John S. Kennedy, of New York, in the State of New York, Banker; the firm of Morton, Rose and Company, of London, in England, Merchants; the firm of Kohn, Reinach and Company, of Paris, in France, Bankers; Richard B. Angus, and James J. Hill, both of St. Paul, in the State of Minnesota, Esquires; with all such other persons and corporations as shall become shareholders in the Company hereby incorporated, shall be and they are hereby constituted a body corporate and politic, by the name of the "Canadian Pacific Railway Company."

Capital stock and shares.
Paid up shares.

2. The capital stock of the Company shall be twenty-five million dollars, divided into shares of one hundred dollars each—which shares shall be transferable in such manner and upon such conditions as shall be provided by the by-laws[309] of the Company: and such shares, or any part thereof may be granted and issued as paid-up shares for value bona fide received by the Company, either in money at par or at such price and upon such conditions as the Board of Directors may fix, or as part of the consideration of any contract made by the Company.

Substitution of Company as contractors; and when.
Effect of such substitution.
Notice in the Canada Gazette.
Further instalment to be paid up.
And rest of $5,000,000.

3. As soon as five million dollars of the stock of the Company have been subscribed, and thirty per centum thereof, paid up, and upon the deposit with the Minister of Finance of the Dominion of one million dollars in money or in securities approved by the Governor in Council, for the purpose and upon the conditions in the foregoing contract provided the said contract shall become and be transferred to the Company, without the execution of any deed or instrument in that behalf; and the Company shall, thereupon, become and be vested with all the rights of the contractors named in the said contract, and shall be subject to, and liable for, all their duties and obligations, to the same extent and in the same manner as if the said contract had been executed by the said Company instead of by the said contractors; and thereupon the said contractors, as individuals, shall cease to have any right or interest in the said contract, and shall not be subject to any liability or responsibility under the terms thereof otherwise than as members of the corporation hereby created. And upon the performance of the said conditions respecting the subscription of stock, the partial payment thereof, and the deposit of one million dollars to the satisfaction of the Governor in Council, the publication by the Secretary of State in the Canada Gazette, of a notice that the transfer of the contract to the Company has been effected and completed shall be conclusive proof of the fact. And the Company shall cause to be paid up, on or before the first day of May next, a further instalment of twenty per centum upon the said first subscription of five million dollars, of which call thirty days' notice by circular mailed to each shareholder shall be sufficient. And the Company shall call in, and cause to be paid up, on or before the 31st day of December, 1882, the remainder of the said first subscription of five million dollars.

Necessary franchises and powers granted.
Proviso.

4. All the franchises and powers necessary or useful to the Company to enable them to carry out, perform, enforce, use, and avail themselves of, every condition, stipulation, obligation, duty, right, remedy, privilege, and advantage agreed upon, contained or described in the said contract are hereby conferred upon the Company. And the enactment of the special provisions hereinafter contained shall not be held to impair or derogate from the generality of the franchises and powers so hereby conferred upon them.[310]

Directors

First directors of the company.
Number limited.

5. The said George Stephen, Duncan McIntyre, John S. Kennedy, Richard B. Angus, James J. Hill, Henry Stafford Northcote, of London, aforesaid, Esquires, Pascoe du P. Grenfell, of London, aforesaid, Merchant, Charles Day Rose of London, aforesaid, Merchant, and Byron J. de Reinach, of Paris, aforesaid, Banker, are hereby constituted the first directors of the Company, with power to add to their number, but so that the directors shall not in all exceed fifteen in number; and the majority of the directors, of whom the President shall be one, shall be British subjects. And the Board of Directors so constituted shall have all the powers hereby conferred upon the directors of the Company, and they shall hold office until the first annual meeting of the shareholders of the Company.

Qualification of directors.
Alteration of number by by-law.
Ballot.

6. Each of the directors of the Company, hereby appointed, or hereafter appointed or elected, shall hold at least two hundred and fifty shares of the stock of the Company. But the number of directors to be hereafter elected by the shareholders shall be such, not exceeding fifteen, as shall be fixed by by-law, and subject to the same conditions as the directors appointed by, or under the authority of, the last preceding section; the number thereof may be hereafter altered from time to time in like manner. The votes for their election shall be by ballot.

Quorum.
Proviso.
Three must be present.

7. A majority of the directors shall form a quorum of the board; and until otherwise provided by by-law, directors may vote and act by proxy—such proxy to be held by a director only; but no director shall hold more than two proxies, and no meeting of directors shall be competent to transact business unless at least three directors are present thereat in person, the remaining number of directors required to form a quorum being represented by proxies.

Executive committee.
President to be one.

8. The Board of Directors may appoint, from out of their number, an Executive Committee, composed of at least three directors, for the transaction of the ordinary business of the Company, with such powers and duties as shall be fixed by the by-laws; and the President shall be ex officio a member of such committee.

Chief place of business. Other places.
How to be notified.
Service of process thereat.
And if Company fail to appoint places.

9. The chief place of business of the Company shall be at the City of Montreal, but the Company may, from time to time, by by-law, appoint and fix other places within or beyond the limits of Canada at which the business of the Company may be transacted, and at which the directors or shareholders may meet, when called as shall be determined by the by-laws. And the Company shall appoint and fix by by-law, at least one place in each Province or[311] Territory through which the railway shall pass, where service of process may be made upon the Company, in respect of any cause of action arising within such Province or Territory, and may afterwards, from time to time, change such place by by-law. And a copy of any by-law fixing or changing any such place, duly authenticated as herein provided, shall be deposited by the Company in the office, at the seat of Government of the Province or Territory to which such by-law shall apply, of the clerk or prothonotary of the highest, or one of the highest, courts of civil jurisdiction of such Province or Territory. And if any cause of action shall arise against the Company within any Province or Territory, and any writ or process be issued against the Company thereon out of any court in such Province or Territory, service of such process may be validly made upon the Company at the place within such Province or Territory so appointed and fixed; but if the Company fail to appoint and fix such place, or to deposit, as hereinbefore provided, the by-law made in that behalf, any such process may be validly served upon the Company, at any of the stations of the said railway within such Province or Territory.


Shareholders

First and other annual meetings.
Notice.

10. The first annual meeting of the shareholders of the Company, for the appointment of directors, shall be held on the second Wednesday in May, one thousand eight hundred and eighty-two, at the principal office of the Company, in Montreal; and the annual general meeting of shareholders, for the election of directors and the transaction of business generally, shall be held on the same day in each year thereafter at the same place unless otherwise provided by the by-laws. And notice of each of such meetings shall be given by the publication thereof in the Canada Gazette for four weeks, and by such further means as shall, from time to time, be directed by the by-laws.

Special general meetings: notice.
Place.

11. Special general meetings of the shareholders may be convened in such manner as shall be provided by the by-laws; and except as hereinafter provided, notice of such meetings shall be given in the same manner as notices of annual general meetings, the purpose for which such meeting is called being mentioned in the notices thereof; and except as hereinafter provided, all such meetings shall be held at the chief place of business of the Company.

Provision if a meeting be necessary before notice as aforesaid can be given.
Notice in such case.
Meetings always valid if all shareholders or their proxies are present.

12. If at any time before the first annual meeting of the shareholders of the Company, it should become expedient that a meeting of the directors of the Company, or a special general meeting of the shareholders of the Company, should[312] be held, before such meeting can conveniently be called, and notice thereof given in the manner provided by this Act, or by the by-laws, or before by-laws in that behalf have been passed, and at a place other than at the chief place of business of the Company in Montreal before the enactment of a by-law authorizing the holding of such meeting elsewhere; it shall be lawful for the President or for any three of the directors of the Company to call special meetings either of directors or of shareholders, or of both, to be held at the City of London, in England, at times and places respectively, to be stated in the notices to be given of such meetings respectively. And notices of such meetings may be validly given by a circular mailed to the ordinary address of each director or shareholder as the case may be, in time to enable him to attend such meeting, stating in general terms the purpose of the intended meeting. And in the case of a meeting of shareholders, the proceedings of such meeting shall be held to be valid and sufficient, and to be binding on the Company in all respects, if every shareholder of the Company be present thereat in person or by proxy, notwithstanding that notice of such meeting shall not have been given in the manner required by this Act.

Limitations as to votes and proxies.

13. No shareholder holding shares upon which any call is overdue and unpaid shall vote at any meeting of shareholders. And unless otherwise provided by the by-laws, the person holding the proxy of a shareholder shall be himself a shareholder.

And as to calls.

14. No call upon unpaid shares shall be made for more than twenty per centum upon the amount thereof.


Railway and Telegraph Line

Line and gauge of railway.
Commencement and completion.
Other branches.
Name of Railway.

15. The Company may lay out, construct, acquire, equip, maintain and work a continuous line of railway, of the gauge of four feet eight and one-half inches; which railway shall extend from the terminus of the Canada Central Railway near Lake Nipissing, known as Callander Station, to Port Moody in the Province of British Columbia; and also a branch line of railway from some point on the main line of railway to Fort William on Thunder Bay: and also the existing branch line of railway from some point on the main line of railway to Fort William on Thunder Bay; and also the existing branch line of railway from Selkirk, in the Province of Manitoba, to Pembina in the said Province; and also other branches to be located by the Company from time to time as provided by the said contract—the said[313] branches to be of the gauge aforesaid; and the said main line of railway, and the said branch lines of railway, shall be commenced and completed as provided by the said contract; and together with such other branch lines as shall be hereafter constructed by the said Company, and any extension of the said main line of railway that shall hereafter be constructed or acquired by the Company, shall constitute the line of railway hereinafter called The Canadian Pacific Railway.

Company may construct lines of telegraph or telephone, and work them and collect tolls.
Subject to Con. Stat. Can., c. 67, ss. 14, 15, 16.

16. The Company may construct, maintain and work a continuous telegraph line and telephone lines throughout and along the whole line of the Canadian Pacific Railway, or any part thereof, and may also construct or acquire by purchase, lease or otherwise, any other line or lines of telegraph connecting with the line so to be constructed along the line of the said railway, and may undertake the transmission of messages for the public by any such line or lines of telegraph or telephone, and collect tolls for so doing; or may lease such line or lines of telegraph or telephone, or any portion thereof; and if they think proper to undertake the transmission of messages for hire, they shall be subject to the provisions of the fourteenth, fifteenth and sixteenth sections of chapter sixty-seven of the Consolidated Statutes of Canada. And they may use any improvement that may hereafter be invented (subject to the rights of patentees) for telegraphing or telephoning, and any other means of communication that may be deemed expedient by the Company at any time hereafter.


Powers

Application of 42 V., c. 9.

17. "The Consolidated Railway Act, 1879," in so far as the provisions of the same are applicable to the undertaking authorized by this charger, and in so far as they are not inconsistent with or contrary to the provisions hereof, and save and except as hereinafter provided, is hereby incorporated herewith.

Exceptions as to such application.

18. As respects the said railway, the seventh section of "The Consolidated Railway Act, 1879," relating to Powers, and the eighth section thereof relating to Plans and Surveys, shall be subject to the following provisions:—

As to lands of the Crown required.

a. The Company shall have the right to take, use and hold the beach and land below high-water mark, in any stream, lake, navigable water, gulf or sea, in so far as the same shall be vested in the Crown and shall not be required by the Crown, to such extent as shall be required by the Company for its railway and other works, and as shall be exhibited by a map or plan thereof deposited in the office[314] of the Minister of Railways. But the provisions of this sub-section shall not apply to any beach or land lying East of Lake Nipissing except with the approval of the Governor in Council.

Plans and book of reference.

b. It shall be sufficient that the map or plan and book of reference for any portion of the line of the railway not being within any district or country for which there is a Clerk of the Peace, be deposited in the office of the Minister of Railways of Canada; and any omission, mis-statement or erroneous description of any lands therein may be corrected by the Company, with the consent of the Minister and certified by him; and the Company may then make the railway in accordance with such certified correction.

Deviations from line on plan.

c. The eleventh sub-section of the said eighth section of the Railway Act shall not apply to any portion of the railway passing over ungranted lands of the Crown, or lands not within any surveyed township in any Province; and in such places, deviations not exceeding five miles from the line shown on the map or plan as aforesaid, deposited by the Company, shall be allowed, without any formal correction or certificate; and any further deviation that may be found expedient may be authorized by order of the Governor in Council and the Company may then make their railway in accordance with such authorized deviation.

Deposit of plan of main line, etc.
And of branches.
Copies thereof.

d. The map or plan and book of reference of any part of the main line of the Canadian Pacific Railway made and deposited in accordance with this section, after approval by the Governor in Council, and of any branch of such railway hereafter to be located by the said Company in respect of which the approval of the Governor in Council shall not be necessary, shall avail as if made and deposited as required by the said "Consolidated Railway Act, 1879," for all the purposes of the said Act, and of this Act; and any copy of, or extract therefrom, certified by the said Minister or his deputy, shall be received as evidence in any court of law in Canada.

Registration thereof.

e. It shall be sufficient that a map or profile of any part of the completed railway, which shall not lie within any country or district having a registry office, be filed in the office of the Minister of Railways.

Company may take materials from public lands and a greater extent for stations, and, etc., than allowed by 42 V., c. 9.
Proviso.

19. It shall be lawful for the Company to take from any public lands adjacent to or near the line of the said railway, all stone, timber, gravel and other materials which may be necessary or useful for the construction of the railway; and also to lay out and appropriate to the use of the Company, a greater extent of lands, whether public or private, for stations, depots, workshops, buildings, side-tracks, wharves, harbours and roadway, and for establishing[315] screens against snow, than the breadth and quantity mentioned in "The Consolidated Railway Act, 1879,"—such greater extent taken, in any case being allowed by the Government, and shown on the maps or plans deposited with the Minister of Railways.

Reduction by Governor in Council extended in like manner.

20. The limit to the reduction of tolls by the Parliament of Canada provided for by the eleventh sub-section of the 17th section of "The Consolidated Railway Act, 1879," respecting Tolls, is hereby extended, so that such reduction may be to such an extent that such tolls when reduced shall not produce less than ten per cent. per annum profit on the capital actually expended in the construction of the railway, instead of not less than fifteen per cent. per annum profit, as provided by the said sub-section; and so also that such reduction shall not be made unless the net income of the Company, ascertained as described in said sub-section, shall have exceeded ten per cent. per annum instead of fifteen per cent. per annum as provided by the said sub-section. And the exercise by the Governor in Council of the power of reducing the tolls of the Company as provided by the tenth sub-section of said section seventeen is hereby limited to the same extent with relation to the profit of the Company, and to its net revenue, as that to which the power of Parliament to reduce tolls is limited by said sub-section eleven as hereby amended.

Restriction as to transfers of stock.
Advances on, by Company forbidden.

21. The first and second sub-sections of section 22 of "The Consolidated Railway Act, 1879," shall not apply to the Canadian Pacific Railway Company; and it is hereby enacted that the transfer of shares in the undertaking shall be made only upon the books of the Company in person or by attorney, and shall not be valid unless so made; and the form and mode of transfer shall be such as shall be, from time to time, regulated by the by-laws of the Company. And the funds of the Company shall not be used in any advance upon the security of any of the shares or stock of the Company.

Transfer or transmission to non-shareholders subject to veto of directors until completion of contract.
Proviso: as to transfer by a firm to a partner.

22. The third and fourth sub-sections of said section 22 of "The Consolidated Railway Act, 1879," shall be subject to the following provisions, namely—that if before the completion of the railway and works under the said contract, any transfer should purport to be made of any stock or share in the Company, or any transmission of any share should be effected under the provisions of said sub-section four, to a person not already a shareholder in the Company, and if in the opinion of the board it should not be expedient that the person (not being already a shareholder) to whom such transfer or transmission shall be made or effected should be accepted as a shareholder, the directors may by resolution[316] veto such transfer or transmission; and thereafter, and until after the completion of the said railway and works under the said contract, such person shall not be, or be recognized as a shareholder in the Company; and the original shareholder, or his estate, as the case may be, shall remain subject to all the obligations of a shareholder in the Company, with all the rights conferred upon a shareholder under this Act. But any firm holding paid-up shares in the Company may transfer the whole or any of such shares to any partner in such firm having already an interest as such partner in such shares, without being subject to such veto. And in the event of such veto being exercised, a note shall be taken of the transfer or transmission so vetoed in order that it may be recorded in the books of the Company after the completion of the railway and works as aforesaid; but until such completion, the transfer or transmission so vetoed shall not confer any rights, nor have any effect of any nature or kind whatever as respects the Company.

Certain other provisions of 42 V., c. 9, not to apply.

23. Sub-section sixteen of section nineteen, relating to President and Directors, their Election and Duties; sub-section two of section twenty-four relating to by-laws, Notices, etc., sub-sections five and six of section twenty-eight, relating to General Provisions, and section ninety-seven, relating to Railway Fund, of "The Consolidated Railway Act, 1879," shall not, nor shall any of them apply to the Canadian Pacific Railway or to the Company hereby incorporated.

Company to afford reasonable facilities to and receive the like from certain other railway companies.
As to rates of carriage of traffic in such cases.
Reservation as to purchasers of land, and immigrants.
Contrary agreements void.

24. The said Company shall afford all reasonable facilities to the Ontario and Pacific Junction Railway Company, when their railway shall be completed to a point of junction with the Canadian Pacific Railway, and to the Canada Central Railway Company, for the receiving, forwarding and delivering of traffic upon and from the railways of the said Companies, respectively, and for the return of carriages, trucks and other vehicles; and no one of the said Companies shall give or continue any preference or advantage to, or in favour of either of the others, or of any particular description of traffic, in any respect whatsoever; nor shall any one of the said Companies subject any other thereof, or any particular description of traffic, to any prejudice or disadvantage in any respect whatsoever; and any one of the said Companies which shall have any terminus or station near any terminus or station of either of the others, shall afford all reasonable facilities for receiving and forwarding all the traffic arriving by either of the others, without any unreasonable delay, and without any preference or advantage, or prejudice or disadvantage, and so that no obstruction may be offered in the using of such railway as a continuous line of communi[317]cation, and so that all reasonable accommodation may, at all times, by the means aforesaid, be mutually afforded by and to the said several railway companies; and the said Canadian Pacific Railway Company shall receive and carry all freight and passenger traffic shipped to or from any point on the railway of either of the said above-named railway companies passing over the Canadian Pacific Railway or any part thereof, at the same mileage rate and subject to the same charges for similar services, without granting or allowing any preference or advantage to the traffic coming from or going upon one of such railways over such traffic coming from or going upon the other of them, reserving, however, to the said Canadian Pacific Railway Company the right of making special rates for purchasers of land or for immigrants or intending immigrants, which special rates shall not govern or affect the rates of passenger traffic as between the said Company and the said two above-named Companies or either of them. And any agreement made between any two of the said Companies contrary to the foregoing provisions, shall be unlawful, null and void.

Company may purchase or acquire by lease or otherwise certain other railways or amalgamate with them.
And borrow to a limited amount on bonds in consequence.
Not to affect prior mortgages.

25. The Company, under the authority of a special general meeting of the shareholders thereof, and as an extension of the railway hereby authorized to be constructed, may purchase or acquire by lease or otherwise, and hold and operate, the Canada Central Railway, or may amalgamate therewith, and may purchase or acquire by lease or otherwise and hold and operate a line or lines of railway from the City of Ottawa to any point at navigable water on the Atlantic seaboard or to any intermediate point, or may acquire running powers over all railway now constructed between Ottawa and any such point or intermediate point. And the Company may purchase or acquire any such railway, subject to such existing mortgages, charges or liens thereon as shall be agreed upon, and shall possess with regard to any lines or railway so purchased, or acquired, and becoming the property of the Company, the same powers as to the issue of bonds thereon, or on any of them, to an amount not exceeding twenty thousand dollars per mile, and as to the security for such bonds, as are conferred upon the Company by the twenty-eighth section hereof, in respect of bonds to be issued upon the Canadian Pacific Railway. But such issue of bonds shall not affect the right of any holder of mortgages or other charges already existing upon any line of railway so purchased or acquired; and the amount of bonds hereby authorized to be issued upon such line of railway shall be diminished by the amount of such existing mortgages or charges thereon.

Company may have docks, etc., and run vessels on any navigable water their railway touches.

26. The Company shall have power and authority to erect[318] and maintain docks, dockyards, wharves, slips and piers at any point on or in connection with the said Canadian Pacific Railway, and at all the termini thereof on navigable water, for the convenience and accommodation of vessels and elevators; and also to acquire and work elevators, and to acquire, own, hold, charter, work and run steam and other vessels for cargo and passengers upon any navigable water, which the Canadian Pacific Railway may reach or connect with.


By-Laws

By-laws may provide for certain purposes.
Must be confirmed at next general meeting.

27. The by-laws of the Company may provide for the remuneration of the president and directors of the Company, and of any executive committee of such directors; and for the transfer of stock and shares; the registration and inscription of stock, shares and bonds, and the transfer of registered bonds; and the payment of dividends and interest at any place or places within or beyond the limits of Canada; and for all other matters required by the said contract or by this Act to be regulated by by-laws: but the by-laws of the Company made as provided by law shall in no case have any force or effect after the next general meeting of shareholders which shall be held after the passage of such by-laws, unless they are approved by such meeting.


Bonds

Amount of bonds limited.
Mortgages for securing the same on all the property of the company.
Proviso: in case land grant bonds have been issued under section 30.
Evidence of mortgage and what conditions the bonds may contain.
Right of voting may, in such case, be transferred to bondholders.
Cancellation of shares deprived of voting power.
Enforcing conditions.
Further provisions under mortgage deed.
Increase of borrowing power if no land grant bonds are issued.

28. The Company, under the authority of a special general meeting of the shareholders called for the purpose, may issue mortgage bonds to the extent of ten thousand dollars per mile of the Canadian Pacific Railway for the purposes of the undertaking authorized by the present Act; which issue shall constitute a first mortgage and privilege upon the said railway, constructed or acquired, and to be thereafter constructed or acquired, and upon its property, real and personal, acquired and to be thereafter acquired, including rolling stock and plant, and upon its tolls and revenues (after deduction from such tolls and revenues of working expenses), and upon the franchises of the Company; the whole as shall be declared and described as so mortgaged in any deed of mortgage as hereinafter provided. Provided always, however, that if the Company shall have issued, or shall intend to issue, land grant bonds under the provisions of the thirtieth section hereof, the lands granted and to be granted by the Government to the Company may be excluded from the operation of such mortgage and privilege: and provided also that such mortgage and privilege shall not[319] attach upon any property which the Company are hereby, or by the said contract, authorized to acquire or receive from the Government of Canada until the same shall have been conveyed by the Government to the Company, but shall attach upon such property, if so declared in such deed, as soon as the same shall be conveyed to the Company. And such mortgage and privilege may be evidenced by a deed or deeds of mortgage executed by the Company, with the authority of its shareholders expressed by a resolution passed at such special general meeting; and any such deed may contain such description of the property mortgaged by such deed, and such conditions respecting the payment of the bonds secured thereby and of the interest thereon, and the remedies which shall be enjoyed by the holders of such bonds or by any trustee or trustees for them in default of such payment, and the enforcement of such remedies, and may provide for such forfeitures and penalties, in default of such payment, as may be approved by such meeting; and may also contain, with the approval aforesaid, authority to the trustee or trustees, upon such default, as one of such remedies, to take possession of the railway and property mortgaged, and to hold and run the same for the benefit of the bondholders thereof for a time to be limited by such deed, or to sell the said railway and property, after such delay, and upon such terms and conditions as may be stated in such deed: and with like approval any such deed may contain provisions to the effect that upon such default and upon such other conditions as shall be described in such deed, the right of voting possessed by the shareholders of the Company, and by the holders of preferred stock therein, or by either of them, shall cease, and holders, or to them and to the holders of the whole or of any part of the preferred stock of the Company, as shall be declared by such deed: and such deed may also provide for the conditional or absolute cancellation after such sale of any or all of the shares so deprived of voting power, or of any or all of the preferred stock of the Company, or both; and may also, either directly by its terms, or indirectly by reference to the by-laws of the Company, provide for the mode of enforcing and exercising the powers and authority to be conferred and defined by such deed, under the provisions hereof. And such deed, and the provisions thereof made under the authority hereof, and such other provisions thereof as shall purport (with like approval) to grant such further and other powers and privileges to such trustee or trustees and to such bondholders, as are not contrary to law or to the provisions of this Act, shall be valid and binding. But if any change in the ownership or possession of the said railway and[320] property shall, at any time, take place under the provisions hereof, or of any such deed, or in any other manner, the said railway and property shall continue to be held and operated under the provisions hereof, and of "The Consolidated Railway Act, 1879," as hereby modified. And if the Company does not avail itself of the power of issuing bonds secured upon the land grant along as hereinafter provided, the issue of bonds hereby authorized may be increased to any amount not exceeding twenty thousand dollars per mile of the said Canadian Pacific Railway.

Provision if such bonds are issued before completion of railway.

29. If any bond issue be made by the Company under the last preceding section before the said railway is completed according to the said contract, a proportion of the proceeds of such bonds, or a proportion of such bonds if they be not sold, corresponding to the proportion of the work contracted for then remaining incomplete, shall be received by the Government, and shall be held, dealt with, and from time to time paid over by the Government to the Company upon the same conditions, in the same manner and according to the same proportions as the proceeds of the bonds, the issue of which is contemplated by sub-section d of Clause 9 of the said contract, and by the thirty-first section hereof.

Provision as to issue of land grant mortgage bonds.
Evidence of mortgage and conditions.
Name of and how dealt with.

30. The Company may also issue mortgage bonds to the extent of twenty-five million dollars upon the lands granted in aid of the said railway and of the undertaking authorized by this Act; such issue to be made only upon similar authority to that required by this Act for the issue of bonds upon the railway; and when so made such bonds shall constitute a first mortgage upon such lands, and shall attach upon them when they shall be granted, if they are not actually granted at the time of the issue of such bonds. And such mortgage may be evidenced by a deed or deeds of mortgage to be executed under like authority to the deed securing the issue of bonds on the railway; and such deed or deeds under like authority may contain similar conditions, and may confer upon the trustee or trustees named thereunder, and upon the holders of the bonds secured thereby, remedies, authority, power and privileges, and may provide for forfeitures and penalties, similar to those which may be inserted and provided for under the provisions of this Act in any deed securing the issue of bonds on the railway, together with such other provisions and conditions not inconsistent with law or with this Act as shall be so authorized. And such bonds may be styled Land Grant Bonds, and they and the proceeds thereof shall be dealt with in the manner provided in the said contract.[321]

Issue of bonds in place of land grant bonds under agreement with Government.
To include franchise as well as property of company.
Section 28 to apply.

31. The Company may, in the place and stead of the said land grant bonds, issue bonds, under the twenty-eighth section hereof, to such amount as they shall agree with the Government to issue, with the interest guaranteed by the Government as provided for in the said contract; such bonds to constitute a mortgage upon the property of the Company and its franchises acquired and to be thereafter acquired—including the main line of the Canadian Pacific Railway, and the branches thereof hereinbefore described, with the plant and rolling-stock thereof acquired and to be thereafter acquired, but exclusive of such other branches thereof and of such personal property as shall be excluded by the deed of mortgage to be executed as security for such issue. And the provisions of the said twenty-eighth section shall apply to such issue of bonds, and to the security which may be given for the payment thereof, and they and the proceeds thereof shall be dealt with as hereby and by the said contract provided.

Facilities for issue of mortgage bonds as to seal and signatures.

32. It shall not be necessary to affix the seal of the Company to any mortgage bond issued under the authority of this Act; and every such bond issued without such seal shall have the same force and effect, and be held, treated and dealt with by all courts of law and of equity as if it were sealed with the seal of the company. And if it is provided by the mortgage deed executed to secure the issue of any bonds that any of the signatures to such bonds or to the coupons thereto appended may be engraved, stamped or lithographed thereon, such engraved, stamped or lithographed signatures shall be valid and binding on the Company.

"Working expenses" defined.

33. The phrase "working expenses" shall mean and include all expenses of maintenance of the railway, and of the stations, buildings, works and conveniencies belonging thereto, and of the rolling and other stock and moveable plant used in the working thereof, and also all such tolls, rents or annual sums as may be paid in respect of the hire of engines, carriages or wagons let to the Company; also all rent, charges or interest on the purchase money of lands belonging to the Company, purchased but not paid for, or not fully paid for; and also all expenses of, and incidental to, working the railway and the traffic thereon, including stores and consumable articles; also rates, taxes, insurance and compensation for accidents or losses; also all salaries and wages of persons employed in and about the working of the railway and traffic, and all office and management expenses, including directors' fees, agency, legal and other like expenses.

Currency on which bonds may be issued.
Price and conditions of sale.
May be exchanged for inscribed stock, etc.

34. The bonds authorized by this Act to be issued upon the railway or upon the lands to be granted to the Company,[322] or both, may be so issued in whole or in part in the denomination of dollars, pounds sterling, or francs, or in any or all of them, and the coupons may be for payment in denominations similar to those of the bond to which they are attached. And the whole or any of such bonds may be pledged, negotiated or sold upon such conditions and at such price as the Board of Directors shall from time to time determine. And provision may be made by the by-laws of the Company, that after the issue of any bond, the same may be surrendered to the Company by the holder thereof, and the Company may, in exchange therefor, issue to such holder inscribed stock of the Company—which inscribed stock may be registered or inscribed at the chief place of business of the Company or elsewhere, in such manner, with such rights, liens, privileges and preferences, at such place, and upon such conditions, as shall be provided by the by-laws of the Company.

Bonds need not be registered.
Mortgage deed, how deposited.
And agreements under s. 36.
Certified copies.

35. It shall not be necessary, in order to preserve the priority, lien, charge, mortgage or privilege, purporting to appertain to or be created by any bond issued or mortgage deed executed under the provisions of this Act, that such bond or deed should be enregistered in any manner, or in any place whatever. But every such mortgage deed shall be deposited in the office of the Secretary of State—of which deposit notice shall be given in the Canada Gazette. And in like manner any agreement entered into by the Company, under section thirty-six of this Act, shall also be deposited in the said office. And a copy of any such mortgage deed, or agreement, certified to be a true copy by the Secretary of State or his deputy, shall be received as prima facie evidence of the original in all courts of justice, without proof of the signatures or seal upon such original.

Agreement with bondholders, etc., for restricting issues.
Effect thereof.

36. If, at any time, any agreement be made by the Company with any persons intending to become bondholders of the Company, or be contained in any mortgage deed executed under the authority of this Act, restricting the issue of bonds by the Company, under the powers conferred by this Act, or defining or limiting the mode of exercising such powers, the Company, after the deposit thereof with the Secretary of State as hereinbefore provided, shall not act upon such powers otherwise than as defined, restricted and limited by such agreement. And no bond thereafter issued by the Company, and no order, resolution or proceeding thereafter made, passed or had by the Company, or by the Board of Directors, contrary to the terms of such agreement, shall be valid or effectual.

Company may issue guaranteed or preferred stock to a limited amount.
Not to affect privileges of bondholders.
Voting.

37. The Company may, from time to time, issue guaranteed or preferred stock, at such price, to such amount, not exceeding ten thousand dollars per mile, and upon such[323] conditions as to the preferences and privileges appertaining thereto, or to different issues or classes thereof, and otherwise, as shall be authorized by the majority in value of the shareholders present in person or represented by proxy at any annual meeting or at any special general meeting thereof called for the purpose—notice of the intention to propose such issue at such meeting being given in the notice calling such meeting. But the guarantee or preference accorded to such stock shall not interfere with the lien, mortgage and privilege attaching to bonds issued under the authority of this Act. And the holders of such preferred stock shall have such power of voting at meetings of shareholders as shall be conferred upon them by the by-laws of the Company.


Execution of Agreements

Contracts, bills, etc., by its agents to bind the company.
Proof thereof.
Non-liability of such agents.
Proviso: as to notes.

38. Every contract, agreement, engagement, scrip certificate or bargain made, and every bill of exchange drawn, accepted or endorsed, and every promissory note and cheque made, drawn or endorsed on behalf of the Company, by any agent, officer or servant of the Company, in general accordance with his powers as such under the by-laws of the Company, shall be binding upon the Company: and in no case shall it be necessary to have the seal of the Company affixed to any such bill, note, cheque, contract, agreement, engagement, bargain or scrip certificate, or to prove that the same was made, drawn, accepted or endorsed, as the case may be, in pursuance of any by-law or special vote or order; nor shall the party so acting as agent, officer or servant of the Company be subjected individually to any liability whatsoever to any third party therefor: Provided always, that nothing in this Act shall be construed to authorize the Company to issue any note payable to the bearer thereof, or any promissory note intended to be circulated as money, or as the note of a bank, or to engage in the business of banking or insurance.


General Provisions

Reports to Government.

39. The Company shall, from time to time, furnish such reports of the progress of the work, with such details and plans of the work as the Government may require.

Publication of notices.

40. As respect places not within any Province, any notice required by "The Consolidated Railway Act, 1879," to be given in the "Official Gazette" of a Province, may be given in the Canada Gazette.[324]

Form of deeds, etc., to the Company.

41. Deeds and conveyances of lands to the Company for the purpose of this Act (not being letters patent from the Crown), may, in so far as circumstances will admit, be in the form following, that is to say:—

Form.

"Know all men by these presents, that I, A. B., in consideration of                 paid to me by the Canadian Pacific Railway Company, the receipt whereof is hereby acknowledged, grant, bargain, sell and convey unto the said The Canadian Pacific Railway Company, their successors and assigns, all that tract or parcel of land (describe the land) to have and to hold the said land and premises unto the said Company, their successors and assigns for ever.

"Witness my hand and seal, this            day of                 one thousand eight hundred and             .

Obligation of the grantor.

"Signed, sealed and delivered
in presence of                        A. B.  (L. S.)
"C. D.
"E. F.

or in any other form to the like effect. And every deed made in accordance herewith shall be held and construed to impose upon the vendor executing the same the obligation of guaranteeing the Company and its assigns against all dower and claim for dower and against all hypothecs and mortgages and against all liens and charges whatsoever, and also that he has a good, valid and transferable title thereto.[325]





Bibliography

The bibliography by no means pretends to be inclusive or exhaustive. The works listed have been found useful in the preparation of the study.


I. General Works

Allin, C. D., and Jones, G. M.—"Annexation, Preferential Trade and Reciprocity." Toronto, 1911.

Asher, George M.—"Henry Hudson, the Navigator." London, 1860.

Atcheson, Nathaniel—"On the Origin and Progress of the North-West Company of Canada." London, 1811. (See footnote re authorship of this work in Davidson, G. C.—op. cit., p. 126).

Ballantyne, Robert M.—"Handbook to the New Goldfields." Edinburgh, 1858.

Bancroft, H. H.—"History of Alaska, 1730-1885." Works, vol. 33. New York, 1874-1890.

Bancroft, H. H.—"History of British Columbia." New York, 1887.

Bancroft, H. H.—"History of the North-West Coast, 1543-1846." Works, vols. 27-28.

Bancroft, H. H.—"History of Oregon, 1834-88." Works, vols. 29-30.

Bartlett, Wm. H.—"History of the American Revolution." New York, 1881.

Begg, Alexander—"History of British Columbia." Toronto, 1894.

Begg, Alexander—"History of the North-West." Toronto, 1894-5.

Beltrami, G. C.—"A Pilgrimage in Europe and America leading to the Discovery of the Sources of the Mississippi and Bloody River." London, 1828.

Biggar, Henry P.—"Early Trading Companies of New France." Toronto, 1901.

Bland, Brown and Tawney—"English Economic History, Select Documents." London, 1920.[326]

Bliss, Henry—"The Colonial System." London, 1833.

Bonnycastle, Sir Richard Henry—"Canada and the Canadians in 1846." London, 1846.

Bouchette, Joseph—"The British Dominions in North America." London, 1832.

Bryce, George—"Remarkable History of the Hudson Bay Company." London, 1900.

Buckingham and Ross—"Life and Times of Hon. Alexander Mackenzie." Toronto, 1892.

Burpee, Lawrence J.—"Sandford Fleming, Empire Builder." London, 1915.

Burpee, Lawrence J.—"The Search for the Western Sea." Toronto, 1908.

Burton, C. M. ed.—"Journal of the Pontiac Conspiracy." Detroit, 1912.

Capp, E. H.—"The Annals of Sault Ste. Marie." Sault Ste. Marie, 1904.

Carnarvon, Earl of—"Speeches on Canadian Affairs." London, 1902.

Cartier, Jacques—"Bref récit et succincte narration de la navigation par le Capitaine Jacques Cartier. Introduction historique par d'Avezac." Paris, 1863.

Cartier, Jacques—"Relation Originale du Voyage de Jacques Cartier au Canada en 1534." Michelant, H. and Rame, A. ed. Paris, 1867.

Cartwright, Rt. Hon. Sir Richard—"Reminiscences." Toronto, 1912.

Charlevoix, P. F. X.—"History and General Description of New France." Trans. by John G. Shea. New York, 1866-72.

Chewett, James G.—"Map of the Province of Upper Canada in 1825."

Chewett, Wm.—"Map of the Located Districts in the Province of Upper Canada." 1813.

Clark, A. B.—"An Outline of Provincial and Municipal Taxation in British Columbia, Alberta and Saskatchewan." Winnipeg, 1920.

Colquhoun, A. H. U.—"The Fathers of Confederation." Toronto, 1916.

Coats, R. H., and Gosnell, R. E.—"Sir James Douglas." Toronto, 1910.

Cook, James—"A Voyage to the Pacific Ocean, 1776-80." London, 1785.

Cornwallis, Kinahan—"The New El Dorado, or British Columbia." London, 1858.

Coues, Elliott ed.—"Expeditions of Zebulon M. Pike to the Headwaters of the Mississippi River through Louisiana territory and in New Spain during the years 1805-6-7." New York, 1895.[327]

Coues, Elliott ed.—"History of the Expedition under the Command of Lewis and Clark." New York, 1893.

Coues, Elliott ed.—"New Light on the Early History of the Greater North-West." Journals of Alexander Henry and David Thompson. New York, 1897.

Cox, Ross.—"The Columbia River." London, 1832.

Davidson, G. C.—"The North-West Company." Berkeley, 1918.

De Celles, A. D.—"Sir George Etiennes Cartier." Toronto, 1910.

Denys, Nicholas—"Description and Natural History of the Coasts of North America." Trans. and ed. Ganong, Wm. F., Publ. of the Champlain Society, No. 2. Toronto, 1906.

Dixon, A.—"A Voyage around the World, but more particularly to the North-West Coast of America, performed in 1785, 86, 87 and 88." London, 1789.

"Documentary History of the State of Maine." Portland.

Dollier, De Casson—"Histoire du Montréal, 1640-72." "Mémoires de la Société Historique de Montréal." vol. IV. Montreal, 1868.

Emmerson, John—"British Columbia and Vancouver Island, Voyages, Travels and Adventures." Durham, 1865.

Ferland, J. B. A.—"Cours d'Histoire du Canada." Quebec, 1861-5.

Fleming, Sir Sandford—"The Intercolonial." Montreal, 1876.

Fleming, Sir Sandford's, "Scrapbook." Archives, Ottawa.

Forbes, C.—"Vancouver Island: Its Resources and Capabilities as a Colony." Victoria, 1862.

Fox, Luke—"North-West." London, 1635. (Hakluyt Society, London, 1894.)

Franchere, G.—"Relation d'un Voyage à la cote du Nord-Ouest de l'Amérique septentrionale dans les années 1810, 11, 12, 13 et 14." Montreal, 1820.

Frothingham, R.—"History of the Siege of Boston." Boston, 1849.

Ganong, W. F.—"A Monograph of the Origins of Settlements in the Province of New Brunswick." Proceedings and Transactions of the Royal Society of Canada, 1904.

Grant, George M.—"Ocean to Ocean." Toronto, 1873.

Gravier, Gabriel—"Découvertes et Etablissements de Cavelier de la Salle de Rouen dans Amérique du Nord." Paris, 1870.

Greene, F. V.—"The Revolutionary War and the Military Policy of the United States." New York, 1911.

Greenhow, Robert—"Memoir, historical and political, on the North-West Coast of North America and the adjacent territories." Washington, 1840.

Gunn, Donald, and Turtle, Chas. R.—"History of Manitoba." Ottawa, 1880.[328]

Haliburton, Thomas C.—"An Historical and Statistical Account of Nova Scotia." Halifax, 1829.

Ham, George—"Reminiscences of a Raconteur." Toronto, 1921.

Hamilton, P. S.—"Observations upon a Union of Colonies in British North America." Halifax, 1855.

Hakluyt, Richard—"Discourse on Western Planting." 1584. "Documentary History of the State of Maine," vol. II. Cambridge, 1877.

Hakluyt, Richard—"The Principall Navigations, Voyages and Discoveries of the English Nation." London, 1589.

Hakluyt, Richard—"Voyages of Elizabethan Seamen to America." Ed. Payne, E. J. London, 1880.

Hargrave, J. J.—"Red River." Montreal, 1871.

Harmon, Daniel W.—"A Journal of Voyages and Travels in the Interior of North America." Andover, Mass., 1920.

Harvey, Arthur—"A Statistical Account of British Columbia." Ottawa, 1867.

Hatheway, C. L.—"History of New Brunswick." Fredericton, 1846.

Haynes, F. E.—"Reciprocity Treaty with Canada of 1854." Publications of American Economic Association, vol. VII., No. 6. Baltimore, 1892.

Hazlitt, W. C.—"British Columbia and Vancouver Island." London, 1858.

Hearne, Samuel—"Journey from Prince of Wales Fort in Hudson's Bay to the Northern Ocean, 1769-72." London, 1795.

Hendry, Anthony—"Journal 1754-5." Ed. Burpee, L. J., in Royal Society of Canada, Proceedings and Transactions, series III, vol. I., 1907-8. (Journal of a journey by Anthony Hendry to explore the country inland, and to endeavour to increase the Hudson Bay Company's trade.)

Hincks, Sir Francis—"Reminiscences of my Public Life." Montreal, 1884.

Holman, F. V.—"Dr. John McLoughlin, the father of Oregon." Cleveland, 1907.

Hopkins, John C.—"Canada: An encyclopædia of the country." Toronto, 1898-1900.

Hulbert, A. B.—"Historic Highways of America." Cleveland, 1902-5.

Iberville, Pierre le Moyne Sieur d'—"Histoire du Chevalier D'Iberville, 1663-1706." Montreal, 1890.

Irving, Washington—"Astoria." In Works Philadelphia, "Jesuit Relations and Allied Documents, 1610-1791." Thwaites, R. G., ed. Cleveland, 1896-1901.

Kane, Paul—"Wanderings of an Artist among the Indians of North America." London, 1859.[329]

Keating, W. H.—"Narrative of an Expedition to the Source of St. Peter's River, Lake Winnipeek, Lake of the Woods, etc., in 1823." London, 1825.

Kingsford, W.—"The Canadian Canals." Toronto, 1865.

Knox, John—"Journal." Champlain Society. Toronto, 1914-16.

La Salle, Robert Cavalier sieur de—"La Découverte du Mississippi." Quebec, 1873.

Laut, A. C.—"The Cariboo Trail." Toronto, 1916.

Laverdière, C. H.—"Oeuvres de Samuel Champlain." Quebec, 1877.

Le Clerq, F. C.—"First Establishment of the Faith in New France." New York, 1881.

Lescarbot, Marc—"The History of New France." Champlain Society, Publ. Nos. I, VII and XI. Toronto, 1907-14.

Lewis, John—"George Brown." Toronto, 1906.

Lincoln—"Correspondence of William Shirley." New York, 1912.

Livingstone, W.—"A Review of the Military Operations in North America from 1753 to 1756." London, 1757.

Longley, James W.—"Joseph Howe." Toronto, 1904.

Lucas, Sir Charles—"Historical Geography of the British Colonies." Oxford, 1913-15.

McCain, Chas. W.—"The History of the S.S. Beaver." Vancouver, 1894.

MacDonald, D. G. F.—"British Columbia and Vancouver's Island." London, 1862.

McDonnell, Alexander—"Narrative of Transactions in the Red River Country." London, 1819.

Macfie, M.—"Vancouver's Island and British Columbia." London, 1865.

MacGibbon, D. A.—"Railway Rates and the Canadian Railway Commission." Boston and New York, 1917.

MacKenzie, Sir Alexander—"General History of the Fur Trade from Canada to the North-West." London, 1801.

MacKenzie, Sir Alexander—"Voyages from Montreal through the Continent of North America to the Frozen and Pacific Oceans in 1789 and 1793." London, 1801.

McNaughton, Margaret—"Overland to Cariboo." Toronto, 1896.

Macpherson, James P.—"Life of the Right Hon. Sir John A. MacDonald." St. John, N.B., 1891.

MacTaggart, John—"Three Years in Canada: An Account of the Actual State of the Country in 1826-8." London, 1829.

Manning, Wm. Ray—"The Nootka Sound Controversy," in Annual Report of the American Historical Association, 1904. Washington, 1905.

Margry, Pierre—"Découvertes et établissements des Français[330] dans l'ouest et dans le sud de l'Amérique Septentrionale, 1614-1754." Paris, 1879-88.

Marquis, T. G.—"The War Chiefs of the Ottawas: A Chronicle of the Pontiac War." Toronto, 1915.

Martin, Chester B.—"Lord Selkirk's Work in Canada." London, 1898.

Martin, Chester B.—"Natural Resources Question." Winnipeg, 1920.

Masson, L. F. R.—"Les Bourgeois de la Compagnie du Nord-Ouest." Publ. avec une Esquisse Historique. Quebec, 1889-90.

Mavor, James—"Report to the Board of Trade on the North-West of Canada." London, 1904.

Mayne, Richard C.—"Four Years in British Columbia and Vancouver Island." London, 1862.

Meares, John—"Voyages made in the years 1788 and 9 from China to the North-West Coast of America." London, 1790.

Milton, Viscount, Wm. F., and Cheadle, W. B.—"The North-West Passage by Land." London, 1865.

Moberly, Walter—"The Rocks and Rivers of British Columbia." London, 1885.

Monro, Alex.—"New Brunswick with a brief outline of Nova Scotia and Prince Edward Island." Halifax, 1855.

Morice, A. G.—"History of the Northern Interior of British Columbia, 1660-1880." Toronto, 1904.

Murdoch, Beamish—"A History of Nova Scotia." Halifax, 1865-7.

Myers, Gustavus—"History of Canadian Wealth." Chicago, 1914.

Neill, E. D.—"The History of Minnesota." Philadelphia, 1858.

Oberholtzer, E. P.—"Jay Cooke, Financier of the Civil War." Philadelphia, 1917.

Ogg, Frederic A.—"The Opening of the Mississippi." New York, 1904.

"Ohio Archæological and Historical Publications." Vol. I. Columbia, 1887.

Oldmixon, J.—"The British Empire in America." London, 1741.

"Parkman Club Publications, 1895-7."

Pemberton, J. D.—"Facts and Figures relating to Vancouver Island and British Columbia." London, 1860.

Pope, Sir Joseph, ed.—"Confederation Documents hitherto unpublished." Toronto, 1895.

Pope, Sir Joseph—"Correspondence of Sir John A. MacDonald." Toronto, 1920.

Pope, Sir Joseph—"Memoirs of the Rt. Hon. Sir John A. MacDonald." London, 1894.[331]

Preston, W. T. R.—"Life and Times of Lord Strathcona." London, 1914.

Pritchard, John—"Narratives respecting the aggressions of the North-West Company against the Earl of Selkirk's Settlement." London, 1819.

Prowse, D. W.—"History of Newfoundland from English, Colonial and Foreign Records." London, 1895.

Pyle, J. G.—"Life of James J. Hill." Garden City, 1917.

Radisson, Pierre Esprit—"Voyages, 1652-84." Boston, 1885.

Rame, A.—"Documents inédits sur le Canada. 1865-7."

Rameau, De S. R.—"Une Colonie Féodale en Amérique—l'Acadie, 1604-1881." Montreal, 1889.

Robson, J.—"An Account of Six Years' Residence in Hudson's Bay, 1733-6 and 1744-7." London, 1752.

Rogers, Robert—"Ponteach or the Savages of America, a Tragedy." London, 1766.

Roosevelt, Theodore—"The Winning of the West." New York, 1889-96.

Ross, Alexander—"Adventures of the First Settlers on the Oregon or Columbia River." London, 1849.

Ross, Alexander—"The Red River Settlement: Its Use, Progress and Present State." London, 1856.

Schoolcraft, Henry R.—"Summary Narrative of an Exploratory expedition to the Sources of the Mississippi River, 1820." Philadelphia, 1855.

Scholefield, E. O. S.—"British Columbia from the Earliest Times to the Present." Vancouver, 1914.

Seemann, Berthold C.—"Narrative of the Voyage of H.M.S. Herald." London, 1853.

Selkirk, Thomas D., Earl of—"Observations on the Present State of the Highlands of Scotland." London, 1805.

Semple, Ellen C.—"American History and its Geographic Conditions." Boston, 1903.

Shortt, Adam ed.—"Canada and its Provinces." Edinburgh, 1914-17.

Simpson, Alexander—"Life and Times of Thomas Simpson, the Arctic Discoverer." London, 1845.

Skelton, O. D.—"Life and Letters of Sir Wilfrid Laurier." Toronto, 1921.

Skelton, O. D.—"The Railway Builders." Toronto, 1916.

Slafter, E. F.—"Sir William Alexander and American Colonization." Boston, 1873.

Smalley, E. V.—"History of the Northern Pacific Railroad." New York, 1883.

Smith, Hon. William—"History of the Late Province of New York—to 1762." New York, 1829.

"Sources of the History of Oregon." University of Oregon,[332] Dept. of Economics and History—Contributions. Eugene, 1897-9.

Sparks, Jared—"The Works of Benjamin Franklin." 1844.

Stone, Wm. L.—"The Life and Times of Sir William Johnston, Bart." Albany, 1865.

Strachan, John—"A Letter to the Right Hon. the Earl of Selkirk on his settlement at the Red River near Hudson's Bay." London, 1816.

Sulté, Benjamin—"Histoire de la Ville des Trois Rivières et de ses environs." Montreal, 1870.

Synge, M. H.—"Great Britain One Empire, 1852." London, 1852.

Thompson, D.—"History of the Late War between Great Britain and the United States of America." Niagara, 1832.

Thompson, David—"Narrative of Exploration in Western America, 1784-1812." Ed. Tyrell, J. B., Champlain Society Publ. vol. XII. Toronto, 1916.

"Toronto—History of Toronto and the County of York, Ontario." Toronto, 1885.

Trout, J. M., and Edw.—"The Railways of Canada for 1870-1." Toronto, 1871.

Tupper, Sir Charles—"Recollections of Sixty Years in Canada." London, 1914.

Umfreville, E.—"The Present State of Hudson's Bay." London, 1790.

Vaughan, Walter—"Life and Work of Sir William Van Horne." New York, 1920.

Vineberg, S.—"Provincial and Local Taxation in Canada." New York, 1912.

Wallace, W. S.—"The United Empire Loyalists." Toronto, 1914.

Washington—"Journal of Colonel George Washington." Ed. Toner, J. M. Albany, 1893.

Watkin, Sir E. W., Bart., M.P.—"Canada and the States, Recollections 1851-86." London, 1887.

Weise, A. J.—"Discoveries of North America to the year 1525." New York and London, 1884.

White, James—"Altitudes in Canada." Ottawa, 1915.

Whymper, Frederick—"Travel and Adventure in the Territory of Alaska." London, 1869.

Willison, Sir J. S.—"Sir Wilfrid Laurier and the Liberal Party." Toronto, 1903.

Willson, Henry Beckles—"Life of Lord Strathcona and Mount Royal." London, 1915.

Willson, Henry Beckles—"Lord Strathcona, The Story of His Life." Toronto, 1902.

Willson, Henry Beckles—"The Great Company." London, 1900.[333]

Wilson, F. A., and Richards, A. B.—"Britain Redeemed and Canada Preserved." London, 1850.

Winthrop, John—"Journal in Original Narratives of Early American History of New England." 1630-49. New York, 1908.

Wolseley, G. J. F. M., Viscount—"Story of a Soldier's Life." Westminster, 1903.

Wood, Wm. C. H.—"The War with the United States: A Chronicle of 1812." Toronto, 1915.


II. Newspapers and Magazines

"Commercial and Financial Chronicle." New York.

"Economic Journal." London.

"Economist." London.

"Globe." Toronto.

"Leader." Toronto.

"London Times." London.

"Railway Age Gazette." Chicago.

"United Service Journal and Naval and Military Magazine." London, 1829-1865.


III. Pamphlets

Allan, H.—"The Times and its Correspondents on Canadian Railways." London, 1875.

Bell, Charles N.—"Some Historical Names and Places of the Canadian North-West"; Transactions of the Manitoba Historical and Scientific Society, No. 17. Winnipeg, 1885.

British Columbia—"Letters of Britannicus." Ottawa, 1876.

Bross, W.—"The Toronto and Georgian Bay Ship Canal." Chicago, 1864.

Ellice, Edward—"Communications of Mercator." Montreal, 1817.

Foster, John—"Descriptions of a Wooden Railway." Montreal, 1870.

Foster, John—"Railway from Lake Superior to Red River Settlement." Montreal, 1869.

Hogan, J. S.—"Canada." Montreal, 1855.

Letter from "Mohawk"—"The Canadian Pacific Railway and its Assailants." London, 1882.

MacDonnell, Allen—"The North-West Transportation, Navigation and Railway Company. Its Objects." Toronto, 1858.

Meddaugh, E. W., and Raymond, A. C.—"The Canadian Railway Question." Detroit, 1891.

"Notice on the Claims of the Hudson's Bay Company and the Conduct of its Adversaries." Montreal, 1817.

"Open Letter to the shareholders of the Canadian Pacific Railway Company, 1st October, 1887. Ashdown, J. H., and Robinson,[334] J. C. Issued by authority of the Winnipeg Board of Trade and the Brandon Board of Trade.

"Railway Interests of the City of Montreal." Montreal, 1872.

Smith, T. T. Vernon—"Pacific Railway Claims of St. John to be the Atlantic Terminus." 1858.

Smyth, Carmichael—"Employment of People and Capital in Great Britain in her own Colonies." Ottawa, 1871.

Smyth, Sir J.—"Railroad Communication." Toronto, 1845.

Waddington, Alfred—"Sketch of Proposed Railroad Line Overland through British North America." Ottawa, 1871.

Wilson, J. R.—"The Oregon Question"; Quarterly of the Oregon Historical Society, vol. I. September, 1900.

Wilson, Wm.—"Dominion of Canada and the Canadian Pacific Railway." Victoria, 1874.


IV. Official Reports and Documents

Andrews, Israel D.—"Report on Trade and Commerce of British North America Colonies. Report of the Secretary of the U.S. Treasury in answer to a resolution of the Senate calling for information in relation to trade and commerce of the British American colonies with the United States and other countries since 1829." 1851.

"Annual Reports of the Board of Railway Commissioners." Ottawa.

"Annual Reports of the Canadian Pacific Railway."

"Annual Reports of the Department of Railways and Canals." Ottawa.

"Atlas of Canada, 1915." Canada, Dept. of the Interior.

"British Columbia Yearbooks." Victoria.

"Canada—Board of Registration and Statistics, 1849." Appendix to the first report. Montreal.

"Canada Gazette." Ottawa.

"Canada House of Commons and Senate Debates."

"Canada Yearbooks." Ottawa. (Statistical Abstract and Record of Canada, 1886-8, The Statistical Yearbook of Canada, 1889-1904. Present title since.)

"Canadian Archives Reports." Ottawa.

"Canadian Cases in the Judicial Committee of the Privy Council—Appeal Cases." London.

"Canadian Pacific Railway Royal Commission Report." Ottawa, 1882.

"Canadian Supreme Court Reports."

"Census of Canada." Ottawa.

"Census of Nova Scotia." Halifax, 1862.

"Collection de documents relatifs à la Histoire de la Nouvelle France." Quebec, 1885.[335]

"Copies of extracts of any dispatches—on the subject of the establishment of a representative assembly at Vancouver's Island." London, 1857.

"Copies or extracts of correspondence relative to the discovery of gold in Fraser's River District in British North America." London, 1858.

"Copy of correspondence between the chairman of the Hudson Bay Company and the Secretary of State for the colonies relative to the colonization of Vancouver's Island." London, 1848.

"Copy of Treasury Minute dated 18th July, 1889, and of contract with Canadian Pacific Railway dated 15th July, 1889, for conveyance of Her Majesty's mails, troops and stores between Halifax or Quebec and Hong Kong and for hire and purchase of vessels as cruisers and transports." London, 1889.

"Correspondence, Papers and Documents of dates, 1856 to 1882 incl., relating to Northerly and Westerly boundaries of the Province of Ontario." Toronto, 1882.

"Correspondence relative to the Canadian Pacific Railway." London, 1874.

"Correspondence relative to the Negotiation of the Question of disputed right to the Oregon territory—subsequent to the Treaty of Washington of August 9, 1842." 1846.

"Correspondence relative to the Recent Disturbances in the Red River Settlement." London, 1870.

"Correspondence respecting the Canadian Pacific Railway Act so far as regards British Columbia." London, 1875.

"Correspondence respecting the North-West Territory including British Columbia." Ottawa, 1868.

Dawson, Simon J.—"Report on exploration of the country between Lake Superior and the Red River Settlement and between the latter place and the Assiniboine and Saskatchewan. 1858." Toronto, 1859.

"Documents relative to the Colonial History of the State of New York." Albany, 1861.

Durham, Earl of—"Report on the Affairs of British North America." London, 1839.

"Edits, Ordonnances Royaux, Déclarations et Arrêts du Conseil d'état du Roi concernant de Canada." Quebec, 1855.

Fleming, Sandford—"Report and Documents in reference to the Canadian Pacific Railway." Ottawa, 1872-80.

Fleming, Sandford—"Report on Surveys and preliminary operations on the Canadian Pacific Railway to January, 1877." Ottawa, 1877.

"Further Copies or Extracts of correspondence relative to the affairs of Lower and Upper Canada." London, 1837-8.

Hart, A. B., and Channing, E.—"American History Leaflets, Colonial and Constitutional." New York, 1892-1911.[336]

Hind, Henry Youle—"Narrative of the Canadian Red River exploring expedition of 1857 and of the Assiniboine and Saskatchewan expedition of 1858." London, 1860.

"Interstate Commerce Commission Reports."

"Journals of the Legislative Assemblies of the Provinces."

"Journals of the House of Commons of the Dominion of Canada."

"Judgments, Orders, Regulations and Rulings of the Board of Railway Commissioners of Canada." Ottawa.

Langevin, Hon. H. L.—"British Columbia Report." Ottawa, 1872.

MacDonald, W.—"Select Documents of the History of the United States." New York, 1898.

MacMurchy and Dennison, or MacMurchy and Spence—"Canadian Railway Cases." Toronto.

"Messages and Papers of the Presidents." Vol. IX. Washington.

"Minutes of evidence taken before the Select Committee of the Senate appointed to inquire into all matters relating to the Canadian Pacific Railway and Telegraph west of Lake Superior." Ottawa, 1879.

Palliser, Capt. John—"Journals, detailed reports and observations relative to the exploration—1857-8, 9, 1860." London, 1859-63.

"Papers connected with the awarding of section 15 of the C.P.R." Ottawa, 1877.

"Papers relating to the Hudson Bay Company, 1842-70." London, 1842, 49, 50, 58.

"Papers relating to the Red River Settlement." 1819.

"Papers relative to the Affairs of British Columbia." 1859-62.

"Report and Minutes of evidence taken before the Select Committee of the Senate appointed to inquire into and report upon the purchases of lands at Fort William for a terminus to the Canadian Pacific Railway." Ottawa, 1878.

"Report and minutes of evidence taken before the Select Committee of the Senate to inquire into and report upon the route of the C.P.R. from Keewatin westward." Ottawa, 1877.

"Report from the committee appointed to inquire into the state and condition of the countries adjoining to Hudson Bay, and of the Trade carried on there." London, 1749.

"Report from the Select Committee on the Hudson's Bay Company." 1857.

"Report of the Commission appointed to inquire into the affairs of the Grand Trunk Railway." 1861.

"Report of the Ontario Commission on Railway Taxation." Toronto, 1905.

"Report of the Royal Commission appointed to inquire into[337] and report upon the several matters relating to the C.P.R." Ottawa, 1873.

"Report of the Royal Commission to Inquire into Methods by which Oriental labourers have been induced to come to Canada." Ottawa, 1908.

Selkirk, Earl of—"Report of Proceedings at a court of oyer and terminer appointed for the investigation of cases from the Indian Territories." 1819.

Selkirk, Earl of—"Report of the Proceedings connected with the disputes between the Earl of Selkirk and the North-West Company at the Assizes at York, 1818." London, 1819.

"Sessional Papers, Federal and Provincial, of the Dominion of Canada and Parliamentary Papers of Great Britain."

Shortt, Adam, and Doughty, A. G.—"Documents relating to the constitutional History of Canada." Ottawa, 1907-14.

"Statistical Abstract of the United States." Washington, 1919.

"Statutes and Proclamations, Federal and Provincial, of the Dominion of Canada."

"Statutes of Great Britain."

"United States Senate and Congressional Reports and Papers."

Wood, Wm.—"Select British Documents of the Canadian War of 1812." Champlain Society Publ. vol. XIII. Toronto, 1920.





[339]

INDEX

Abbott, J. J. C, 102, 275

Abercorn, 135 n.

Aberdeen, the, 150

Acadia, 54 n., 57 n., 60 n.

Accidents, 231

Acme, 153

Acquisition, 111, 122, 134, 135 n., 136, 140, 141, 142, 143, 158, 169, 199, 237, 248, 249, 255, 273, 281 n.

Act, 14, 17 n., 38, 39, 40, 63 n., 67 n., 89 n., 100, 120, 123, 174, 179, 184, 186, 251, 255, 256, 257, 270, 289
British North America, 45, 72 n., 179, 180, 181
Canadian Pacific Railway, 81 n., 83, 85 n., 124, 172, 250 n.
Consolidated Railroad, 172, 256
Loan, 125, 126, 280, 282
Manitoba, 50
of Union, 66, 75, 75 n., 76 n., 290
Quebec, 62 n.
Rupert's Land, 46, 46 n.
Railway Taxation, 239 n.

Admiralty, 139, 170

Agincourt, 156

Agriculture, 6, 7, 7 n., 8, 9, 16, 28 n., 29, 38 n., 42 n., 130, 141, 145, 146, 147, 162, 163, 164, 183, 185, 199, 216, 245, 260, 265, 288

Alaska, 19

Albany, 56, 56 n.
River, 23 n., 24 n., 25 n.

Alberni, 154

Alberta, the, 134

Alberta, 152, 153, 170, 191 n., 255, 264
Central Railway, 154
Railway and Coal Co., 139
Railway and Irrigation Co., 154, 191 n.

Aldersyde, 152

Alexander, Sir William, 55 n.

Alexandria, 15

Algoma Mills, 106, 107, 112, 115, 121, 125, 134, 137, 271, 272

Alida, 153

Allan, Sir Hugh, 79, 79 n., 80 n., 81 n., 82, 82 n., 83, 95 n., 102
Line, 170

Alleghany Mountains, 59, 61, 73
River, 60 n.

Almonte Knitting Co. case, 189

Alps, 170

America, 19, 22 n., 34 n., 41 n., 52, 70 n.

America, the, 10 n.

American, 6, 8, 19, 32 n., 49, 61 n., 62 n., 64, 64 n., 67 n., 77 n., 79, 79 n., 81 n., 82, 82 n., 98, 100, 134, 138, 182, 188, 189, 189 n., 191, 194, 274, 282
Anglo-American, 44
Civil War, 71 n.
expansion, 42 n., 69 n., 71
fur trade, 26
Imperialism, 32, 35, 44
lines, 139, 180, 181, 193, 207
railroads, 69 n., 70, 93 n., 112, 113 n., 137, 139, 154, 158, 173, 174, 179, 183, 187, 189, 191, 192, 194, 195, 205, 206, 207, 208
Revolution, 61
route, 42 n., 193, 195
traffic, 77, 78 n., 80, 83

Amsterdam, 114

Anderson, 11 n.

Anglo-American capitalists, 44

Angus, R. B., 97, 102, 113, 114, 259, 275, 275 n., 276

Annexationist Manifesto, 68 n., 290

Anticosti, 33 n.

Appropriation, 90 n.

Archibald, Lieut.-Gov., 51

Arcola, 152

Arctic Ocean, in, 2

Aroostook Junction, 143

Arrowhead, 142

[340]Ashburton treaty, 70 n.

Ashley Creek, 6 n.

Asia, 66 n.

Asquith, 153

Assessment, 80 n., 81 n.

Assinæ Poets, 23 n.

Assiniboia, 153
Council of, 29 n., 31 n., 47 n.
Valley, 78 n.

Assiniboine, branch, 103
House, 25 n.
River, 23 n., 24 n., 25 n., 28, 36 n.
territory, 27 n.

Astoria, 6, 7, 8 n.

Athabasca, the, 134

Athabasca territory, 27 n., 67 n.

Athenian, the, 150

Atlantic and Northwest Railway, 122, 122 n., 135, 137, 142
and Pacific Transit and Telegraph Co., 42 n.
coast, 68, 70, 70 n., 73, 135, 136, 155, 169, 181, 195, 209, 288
division, 33 n.
Ocean, 1 n., 3 n., 18 n., 26, 42 n., 55 n., 62 n., 69 n., 70, 169, 281 n.

Attorney-general, 37 n.
of British Columbia, 189

Austrian Government, 170

Aylmer, 112, 112 n., 156


Baffin, 22 n.

Baggage, mail and express car, 133, 201, 201 n.
rates, 86 n.

Bald Range, 78 n.

Ballast pit, 257, 272

Baltimore and Ohio Co., 151

Banff, 204

Bank of Montreal, 92 n., 97, 117

Baring, Rt. Hon. A. C., 126
and Co., 127

Barkerville, 17 n.

Barnard, F. J., 88 n.

Barnesville, 93 n.

Barnet and McKay, 99 n.

Barney, A. H., 80 n., 81 n.

Basins, drainage, 1, 2, 3, 74
Arctic, 1 n.
Atlantic, 1 n.
Hudson Bay, 1 n.
Pacific, 1 n.
St. Lawrence, 52, 59

Bassano, 152, 153, 255 n.

Battleford, 3 n., 252, 254

Bay of Fundy, 54 n., 71 n., 158, 169
Quinte, 63 n.
St., Toronto, 137

Bear Lake, 9 n.

Beatty, E. W., 276

Beaubassin, 60 n.

Beauharnois Canal, 67 n.

Beausejour, 60 n.

Beaver, the, 13 n.

Beaver Creek, 110
Line, 169
River, 25 n., 110
town, 259

Bedford House, 25 n.

Beique, Senator F. L., 275

Belle Isle, Straits of, 53

Bellevue Islands, 157

Berlin, Waterloo, Wellesley and Lake Huron Railway, 157

Berthier, 123 n.
Junction, 123 n.

Berwyn, 154

Bethany Junction, 156

Biencourt, 55 n.

Big Bend, 15

"Big Hill" grade, 155

Bill of Rights, Settlers', 50 n.

Billings, Frederick, 80 n., 81 n.

Binscarth, 152

Birdtail Creek, 87 n.

Biscayan Whaling expedition, 53

Black Sturgeon district, 78 n.

Blake Bros. & Co., 275

Blakiston, Lieut., 35 n.

Blanshard, Richard, 12 n., 13

Board, 95 n., 188
of directors, C. P. R., 82 n.
of directors, Hudson's Bay Co., 48 n.
of Railway Commissioners, 186, 188, 189, 190, 190 n., 191 n., 196, 209, 220, 221, 230, 293, 293 n.
of Trade, 36, 69 n., 100, 176, 180

Boarding, tool and auxiliary cars, 150, 150 n., 168, 168 n.

Bobcaygeon, 157

Boissevain, 153

Bolton Junction, 156

Bond, 81 n., 101, 107, 118, 118 n., 119, 120, 121, 123, 124, 125, 126, 127, 135, 182, 270, 271, 272, 273, 274, 279, 280, 281 n.
land grant 98, 101, 103, 104, 107, 108, 109, 115, 116, 117, 118, 118 n., 125, 182, 250, 271, 272, 278

Bonus, 92 n., 100, 181, 274

Boston, 4 n., 62, 79 n., 92 n., 112, 114, 135, 156, 157, 192, 194, 207, 274, 275
Lowell Railway, 135
Port Bill, 61 n.

Boston Bar, 88 n.

Bostonian, 57 n.

[341]Boulder Creek, 262

Bow River, 250 n., 255 n., 261

Bowie and McNaughton, 89 n.

Box cars, 133, 182

Boyd, John A., 273

Braddock, General, 60 n.

Brampton, 99 n.

Branch, 88 n., 89 n., 91 n., 93, 93 n., 98, 99, 103, 105, 106, 107, 112, 112 n., 113, 114, 115, 120, 121, 122, 129, 135, 137, 138, 139, 140, 141, 142, 143, 150, 151, 152, 153, 154, 155, 156, 157, 158, 171, 174, 180, 181, 183, 185, 186, 189, 190, 203, 205, 251, 252, 253, 254, 255, 256, 257 n., 264, 265, 271, 272, 273, 274, 281 n., 292

Brandon, 103, 104, 106, 140, 155, 176 n., 177, 177 n., 178, 178 n., 185, 186, 205, 252
Board of Trade, 180
House, 25 n.

Brantford, 143

Breckenridge, 93 n.

Bridge, railway, 78 n., 89 n., 112, 113, 114, 115, 122, 122 n., 135, 136 n., 137, 140, 150, 158, 181, 182
transcontinental, 72, 74, 96, 128

Bridger, Mr., 23 n.

Bristol, 170

Britain, 66 n.

British, 14, 17 n., 19, 35 n., 47 n., 50 n., 62 n., 64, 71 n., 73, 80 n., 81 n., 82 n., 101, 206, 288, 289
America, 34 n., 38 n.
authorities, 10, 19, 37, 40, 65 n.
colony, 35, 67 n.
Government, 10, 11, 12 n., 13, 30, 42, 289, 290
investors, 95 n.
Isles, 276
navy, 64 n.
North America Act, 45, 72 n., 179, 180, 181
territory, 11, 17, 68 n., 76 n., 138
Treasury, 282

British Columbia, 14, 15, 17, 17 n., 18, 18 n., 19, 20, 21, 22, 33, 35, 35 n., 38 n., 39, 39 n., 41 n., 43 n., 48 n., 68 n., 69 n., 72, 73, 74, 75 n., 77, 77 n., 78 n., 81 n., 84, 84 n., 85 n., 87, 87 n., 96, 98, 98 n., 100, 104, 127, 130 n., 139, 141, 150, 154, 155, 169, 170, 183, 184, 189, 190, 193, 237, 255, 258, 259, 265, 273, 273 n., 291
Overland Transit Co., 18
settlement, 8, 10
Southern Railway, 139, 255

Broadview, 177 n., 178 n.

Brockville, 112, 112 n., 120, 134

Brookport, 156

Brown, Hon. George, 44, 44 n.

Brydges, Mr., 19 n., 80 n.

Buckingham, 142
House, 25 n.
Junction, 142

Buffalo, 68 n., 195
Wool Co., 28 n.

Buffaloes, 28 n., 29, 29 n., 39 n., 42 n.

Bulyea, 152

Burketon Junction, 157

Burpee, 20 n.

Burrard Inlet, 87 n., 88 n., 138

Bury, Sir George, 275

Bute Inlet, 77 n.

Button, 22 n.


Cabinet, 79 n.

Cable, 19
Commercial, 151
French Atlantic, 151

Cabot, 52

Cache Creek, 16, 78 n., 88 n.

Caithness, 154

Caledonia Springs, 204

Calgary, 111, 141, 152, 153, 178 n., 255 n., 256, 257
and Edmonton Railway, 141, 152

California, 11, 32 n., 193, 206

Callander, 98, 99, 100, 106, 107, 109, 111, 112, 112 n., 120, 121, 121 n., 128, 256, 274

Campbell, Sir A., 104

Campbellford, Lake Ontario and Western Railway, 156

Camosun Harbour, 9

Canada, 2, 3, 17 n., 18, 19, 19 n., 20, 21, 24, 27 n., 33 n., 35, 35 n., 36 n., 37, 37 n., 38, 38 n., 39, 40, 40 n., 41, 41 n., 42 n., 43, 44, 44 n., 45, 46, 46 n., 47, 47 n., 49, 49 n., 50, 50 n., 51, 52, 52 n., 61, 61 n., 62 n., 64, 66 n., 67 n., 69 n., 71 n., 72, 72 n., 73, 74, 76, 76 n., 77, 78 n., 81 n., 82 n., 83, 84 n., 85, 85 n., 87 n., 88, 93, 93 n., 94 n., 95 n., 96, 97, 97 n., 99, 127, 128, 133, 135, 151, 170, 172, 181, 184, 188, 190, 192, 193, 224, 225, 264, 276, 276 n., 277, 290, 292, 294
Central Railway, 88, 88 n., 92 n., 97, 100, 101, 102, 106, 112, 112 n., 131, 134, 173 n., 274, 281 n.
Corn Bill, 67 n.
[342]Eastern, 52, 55, 112, 122, 140, 145, 146, 155, 158, 161, 163, 173, 174, 176, 186, 187, 190, 192, 193, 195, 196, 198, 199, 215, 220, 221, 227, 229, 247, 291, 292, 293, 294
Land and Improvement Co., 80 n.
Lower, 32 n., 64, 64 n., 65, 66, 66 n., 289, 290
Pacific Railway, 20 n., 77 n., 78 n., 79, 79 n., 81 n., 82 n., 89 n.
Southern, 122, 143
Upper, 32 n., 63 n., 64, 64 n., 65, 66, 66 n., 70, 70 n., 73, 289, 290, 291
Western, 58 n., 89, 93, 97, 129, 130, 137, 140, 144, 146, 147, 150, 151, 154, 155, 158, 165, 173, 174, 175, 186, 187, 188, 189, 190, 191, 194, 196, 197, 199, 205, 209, 214, 216, 222, 247, 250, 255, 269, 286, 291, 292, 293, 294

Canadian, 19, 20, 20 n., 46, 46 n., 64 n., 65 n., 67, 67 n., 70, 72, 72 n., 78 n., 83, 114, 115, 128, 129, 159, 186, 189, 189 n., 194, 294
Australian, 170
authorities, 39, 42, 42 n., 44 n., 45, 47 n.
Confederacy, 20, 48 n.
delegates, 41, 45 n., 47 n.
directors, 80 n., 105
Express Co., 124
French, 7
Government, 17 n., 18 n., 36 n., 37 n., 39 n., 40 n., 41 n., 42, 45, 46 n., 47 n., 48 n., 49, 50, 50 n., 84 n., 127, 128, 136, 139, 181, 182, 292
House, 18 n.
Joint Freight Association, 193
National Railways, 188, 292
Northern, 187, 188, 292
North West Land Co., 104, 107
Pacific Railway and Navigation Co., 77 n.
Parliament, 75, 75 n., 77 n., 80 n., 99, 123, 138, 174
railroad, 79 n., 88 n., 117, 192 n., 193, 194, 195
settlers, 42 n., 48 n.

Canadian Pacific Ocean Steamship Services Co., 170, 224 n.

Canadian Pacific Railway Company, 1, 2, 80 n., 84 n., 90 n., 92 n., 93 n., 97, 99, 100, 102, 104, 105, 108, 109, 111, 112, 117, 122, 123, 124, 128, 128 n., 129, 131, 135, 136, 136 n., 137, 138, 139, 141, 151, 156, 158, 170, 173, 173 n., 175, 178, 179, 180, 180 n., 181, 182, 183, 184, 185, 186, 188, 189, 190, 191, 191 n., 192, 192 n., 193, 194, 195, 196, 206, 207, 208, 210, 224, 239 n., 250 n., 253, 254, 259, 269, 273, 274, 278, 278 n., 283, 287, 291, 292
Act, 85 n., 95 n.

Canal, 51 n., 65, 66 n., 67 n., 72 n., 195, 255 n., 290
Beauharnois, 67 n.
Cornwall, 67 n.
Erie, 65 n.
Farrans Point, 67 n.
Fort Francis, 87 n.
Galops, 67 n.
Iroquois, 67 n.
Lachine, 65 n., 67 n.
Ohio, 65 n.
Oswego, 65 n.
Rapide Plat, 67 n.
Rideau, 65 n.
Sault Ste. Marie, 25 n.
Welland, 65 n., 67 n.

Canda, C. J., 80 n., 81 n.
F. E., 80 n., 81 n.

Canfield, T. H., 80 n., 81 n.

Canterbury, 72 n.

Canton, 67 n.

Cap de la Madeleine, 157
Railway, 157

Cape Breton, 55 n., 60 n.
Horn, 17
of Good Hope, 34 n.
Spencer, 7 n.

Capital, 18 n., 33 n., 35 n., 41 n., 76 n., 79 n., 80 n., 82 n., 94 n., 95 n., 98, 101, 109, 120, 125, 172, 182, 187, 245, 270, 280, 281, 282, 284, 285
stock, 101, 119, 239 n., 276, 278, 284

Capitalist, 19 n., 44, 95, 96, 96 n., 97

Capitalization, 44 n.

Capo de Buona Speranca, 22 n.

Car, 167, 202, 204, 208, 222, 223, 240
baggage, mail and express, 133, 201, 201 n.
boarding, tool and auxiliary, 150, 150 n., 168, 168 n.
box, 133
freight and cattle, 133, 133 n., 149, 149 n., 167, 167 n., 168, 169
load, 176, 185, 186, 190, 193
passenger, 133, 134, 201, 201 n., 202, 203
[343]platform, 133, 133 n.
repairs, 239, 239 n., 240, 244
shops, 134, 167
sleeping and dining, 203, 203 n.
smoking, 133, 201
tool, 133, 133 n.

Cardston, 154
Board of Trade, 190 n.

Cariboo territory, 15
trail, 16

Carignan Salieres regiment, 58 n.

Carleton, 134
Place, 112 n.

Carman, 141

Carmi, 155

Carnarvon, Earl of, 84, 84 n., 85 n., 88 n.
terms, 85, 87 n.

Carpenter, W. H. & Co., 86 n.

Carruthers, J., 99 n.

Cartier, Sir G. E., 19 n., 81 n.
Jacques, 53, 53 n.

Carts, 17 n., 18 n., 29 n., 51 n.

Cascade Range, 78 n.

Casco Bay, 58 n.

Cass, G. W., 80 n., 81 n.

Cass, Lewis, 32 n.

Castlegar Junction, 142 n.

Cataract Junction, 122 n.

Cathay, 22 n.

Cattle, 7 n., 9 n., 17 n., 31 n., 97

Celoron, 60 n.

Centerville, 158

Central America, 34 n.
Canada Railway, 154
division, 33 n.
Vermont Railroad, 79 n.

Chalk River, 137

Chambly, 58 n.

Champlain, 54 n., 55, 55 n., 56 n.

Charlton Island, 25 n.

Charnisé, 57 n.

Charter, 18 n., 69 n., 139, 140, 142, 154, 156, 157, 174, 175, 179
Canada Pacific Railway, 20 n.
Canadian Pacific Railway, 80 n., 82, 104, 108, 109, 115, 118, 172, 250, 252, 255, 263, 263 n., 270, 272, 273, 274, 280, 293 n.
Company of New France, 56, 56 n., 57
Hudson Bay Co., 10, 22, 37, 37 n., 38 n., 46
West India Co., 58 n.

Chater, 151

Chauvin, Pierre, 54 n., 55 n.

Cheadle, Dr., 18

Chedabouctou, 59 n.

Cheney, B. P., 81 n.

Chequamegon Bay, 58 n.

Chesterfield House, 25 n.

Chicago, 42 n., 67 n., 68 n., 79 n., 139, 155, 192, 192 n., 194, 195, 206, 208
Milwaukee and St. Paul, 113, 194

Chilwater Plain, 78 n.

China, 4, 4 n., 66 n., 67 n., 138, 193, 281 n.

Chinese, 16 n., 206

Chisholm, K., 99 n.

Churchill River, 2, 23 n., 24 n., 25 n.

Chutaghicks, 59 n.

Cincinnati, 192

Clay, 64 n.

Climate, 1, 54, 73, 287, 288
Battleford, 3 n.
Edmonton, 3 n.
Kingston, 2 n.
Montreal, 2 n.
Port Arthur, 2 n.
Quebec, 2 n.
Toronto, 2 n.
Vancouver, 3 n.
Winnipeg, 3 n.

Clinton, 15

Coal, 11, 11 n., 112, 165, 170, 175 n., 176, 183, 190 n., 250 n., 265
fields, 102, 140, 254
mining, 17, 17 n.

Cochran, Hon. J., 97

Collingwood, 69 n.

Colonial office, 40 n.
secretary, 46 n.

Colonists, 11 n., 27 n., 28 n., 54 n., 55 n., 61, 61 n., 289

Colonization, 11 n., 12 n., 13, 27, 27 n., 39, 45, 54, 54 n., 56, 56 n., 69, 96 n., 98, 289

Colonsay, 152

Colony, 14 n., 15, 20, 29, 29 n., 31 n., 32 n., 35, 35 n., 47 n., 54 n., 55, 55 n., 56 n., 58, 58 n., 59, 60, 61, 62, 62 n., 70 n., 73, 289, 290

Columbia, 19, 44 n.
and Kootenay Railway, 139, 255
and Kootenay River Navigation Co., 141
and Western Railway, 140, 142 n.
River 6, 6 n., 9, 9 n., 11, 13, 14, 14 n., 15, 16, 21, 26 n., 67 n., 110, 140, 262, 263

Columbus, 52

Colvalli, 155

Colville, 17 n.

Commercial cable, 151
telegraph, 243, 243 n., 249

Commission, Interstate Commerce, 191 n., 192, 196, 207, 208
Railway, 184, 185
Railway rates, 183
[344]Royal, 82 n., 90 n., 92 n.

Commissioners, Board of, 95 n.
Board of Railway, 186, 188, 189, 190, 190 n., 191 n., 195, 209, 220, 221, 230, 292, 293 n.
Board of Three, 37 n.
High, 127
Land, 98 n.

Committee, 44 n., 45 n., 81 n., 82 n., 192, 194, 208
Executive C.P.R., 113, 114, 275, 276, 277
Judicial, 37 n., 46 n.
of Senate, 29 n.
Select, of 1857, 34, 35, 36, 37, 69 n.
Select, on Hudson's Bay Company, 14, 14 n.

Commodore, the, 14 n.

Commons, House of, 12 n., 18, 30 n., 34 n., 47 n., 50 n., 75 n., 82 n., 85 n., 88 n., 92 n., 174, 251, 293 n.

Comox, 154

Company of New France, 56, 57, 57 n.

Competition, 4, 5, 10, 12 n., 54, 55, 55 n., 56, 57 n., 59, 60, 72, 78, 79 n., 82, 93 n., 122, 123, 139, 170, 173, 178, 181, 185, 187, 189, 190, 191, 192, 193, 195, 205, 206, 208, 209, 230, 231, 250, 262, 292
fur trade, 10, 23, 24, 25, 27, 28, 32 n., 57

Conducting transportation, 232, 233, 233 n., 234, 235, 238

Conductors' vans, 149, 149 n., 168, 168 n.

Confederation, 72, 73, 290
delegates, 44

Congress, 5 n., 8, 8 n., 32 n., 194

Conmee vs. C.P.R., 106

Conservative party, 278 n.

Consolidated Railroad Act, 172, 256

Constitutional Act, 63 n.

Construction, canal, 65
forts, 23
railroad, 35 n., 70 n., 72 n., 76, 76 n., 77, 79, 79 n., 80 n., 83, 84, 84 n., 85 n., 87 n., 88, 88 n., 89, 89 n., 90 n., 91 n., 92, 93, 97, 98, 99, 100, 101, 102, 103, 106, 106 n., 107, 110, 111, 113, 115, 117, 118, 120, 121, 124, 127, 129, 129 n., 133, 134, 135, 136, 140, 141, 142, 143, 150, 151, 153, 154, 155, 156, 157, 158, 166, 169, 170, 172, 175, 180, 180 n., 181, 182, 187, 190, 192, 199, 204, 250, 252, 253, 255, 257, 262, 263, 270, 271, 272, 273, 273 n., 274, 277, 278, 287, 290, 291, 293, 294
roads, 15, 21, 43 n., 45, 50, 51 n., 71 n.
route 16

Contract, 80 n., 81 n., 83, 85 n., 86 n., 88 n., 89 n., 90 n., 96, 97, 98, 98 n., 99, 100, 101, 102, 103, 109, 111, 112, 114, 124, 127, 128, 138, 143, 174, 179, 180 n., 262, 277, 291
No. 1, 88 n., 91 n.
No. 2, 88 n., 91 n.
No. 3, 88 n., 91 n.
No. 4, 88 n., 91 n.
No. 5, 89 n., 91 n., 92 n.
No. 12, 88 n., 92 n.
No. 13, 89 n., 90 n., 91 n.
No. 14, 89 n., 90 n., 91 n.
No. 15, 89 n., 90 n., 91 n.
No. 16, 88 n.
No. 25, 89 n., 91 n., 92 n.
No. 33, 89 n.
No. 37, 88 n.
No. 42, 89 n., 92 n.
No. 43, 89 n., 91 n.
No. 48, 89 n., 91 n.
No. 60, 88 n., 91 n.
No. 61, 88 n., 91 n.
No. 62, 88 n., 91 n.
No. 63, 88 n., 91 n.
No. 66, 89 n., 91 n.

Contractor, 83 n., 91 n., 92 n., 106 n., 110, 111, 112, 115, 263
Barnard, F. J., 88 n.
Bowie and McNaughton, 89 n.
Fraser, Grant and Pitblado, 89 n.
Fuller, Richard, 88 n.
Heney, Charlebois and Flood, 88 n.
Kavanagh, Murphy and Upper, 89 n.
Oliver, Davidson and Brown, 88 n.
Onderdonk, Andrew, 88 n., 91 n.
Purcell, Ryan, Goodwin and Smith, 88 n., 89 n.
Ryan, J., 89 n.
Sifton and Ward, 89 n.
Sifton, Glass and Fleming, 88 n.
Upper, Swift and Folger, 89 n.
Whitehead, Joseph, 89 n.

Convention of 1818, 6 n.
of 1824 and 1825, 7

Cook, Capt. James, 4
H. H., 99 n.
Jay, 79 n.
& Co., 80 n., 81 n.

[345]Coquihalla River, 11 n.

Corbett, Rev., 43 n.

Cordillera ranges, 3

Corn Laws of Great Britain, 68, 290

Cornwall, 158
Canal, 67 n.

Coronation, 154

Coteau Hills, 107
region, 14

Council, governor in, 83 n., 172, 179, 184
Legislative, 20, 36
of Assiniboia, 29 n., 31 n., 47 n.
order in, 84 n., 88 n., 103, 108, 174, 188, 239 n., 252, 273
Privy, 37 n., 45 n., 46 n., 263 n.

Coutannais Pass, 17 n.

Coutts, 154

Cowichan Lake, 154

Cox, G. A., 99 n.

Craigellachie, 128

Credit Valley Railroad, 108, 120, 122

Creelman, A. R., 275

Crofton, Col., 31 n.

Crookston, 93 n.

Cross, Lake, 89 n., 103
R. J., 275

Crowfoot Creek, 111

Crown Lands, Commissioner of, 45 n.
Point, 60 n.

Crow's Nest Pass, 139, 155, 184
Agreement, 186, 188, 293, 293 n.

Cruizer, the, 170

Cullom, Senator, 192, 194, 208

Cumberland House, 24 n.

Curle, Mr. W. H., 135 n.

Current River, 256

Cutknife, 153


Dalles, 14 n.

Davis, 22, 22 n.

Dawson, route, 86, 92 n.
S. J., 36 n., 38, 45
Wm. MacD., 36 n.

Debate, 75, 92 n.

De Caens, 56 n.

Deerfield, 60 n.

Deloraine, 140, 141, 252

De Meurons, 28 n.

Dennis, Col. J. S., 48

Denouville, 58 n.

Department of Railways, 258

Depression, 19, 94 n., 127, 132, 144, 145, 146, 148, 150, 159, 160, 163, 164, 169, 198, 199, 200, 202, 203, 211, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 235, 236, 237, 238, 241, 245, 246, 249, 264, 265, 266, 280, 281, 283, 284

Derby, 15 n., 17 n.

Des Quinze River, 158, 255

Detroit, 18 n., 42 n., 58 n., 61 n., 155, 195
River, 65 n., 137

Devil's Nose, 33 n.

Dewdney Trail, 16

D'Iberville, 58 n., 59 n.

Differential, 191, 194, 206, 207, 208

Directors, 33 n., 78 n., 79 n., 80 n., 81 n., 82 n., 99 n., 100, 101, 103, 104, 105, 113, 124, 180 n., 275

Dirt Hills, 107

Dividend, 109, 115, 116, 117, 120, 125, 241, 248, 266, 270, 278, 282, 283, 285, 286, 293, 293 n.
common stock, 285, 285 n.
preferred stock, 285, 285 n.
rate, 283, 283 n., 284, 286, 293

Dixon, George, 4 n.

Docks, 101, 182

Dominion Atlantic Railway, 156, 158
government, 20, 76 n., 84 n., 85 n., 87 n., 123, 174, 175, 179, 180, 181, 182, 187, 190, 239 n., 250, 255, 256, 258, 273, 274, 286
Parliament, 173, 180, 189

Donald, 258

Dorval, 112

Douglas, 88 n.
Gov. James, 9 n., 13, 18 n.

Drainage basin—see Basins

Draper, Chief Justice, 35, 35 n.

Drawbacks, 115

Drayton-Acworth Report, 188

Drexel, Morgan & Co., 109

Drinkwater, C., 102

Drummond, Hon. G., 275

Drummondville, 135 n.
Junction, 135 n.

Dryad, the, 7 n.

Dulhut, 58 n.

Duluth, 124, 185, 187
South Shore and Atlantic Railway Co., 137, 249, 280

Dunmore, 139

Dunraven, 154

Dunsmuir, R., 275

Durham, Lord, 66, 290

Dutch, 56, 56 n.

Duty, 11 n., 66, 67 n., 72 n., 95 n., 99, 114, 115
export, 29 n.
import, 29 n., 30 n., 72 n.

[346]Dyment, 142


Eagle Pass, 17 n.
River, 89 n.

Earnings, 192 n., 193, 196, 210, 211, 216, 219, 220, 226, 227, 228, 229, 230, 239 n., 244, 245, 246, 250, 278, 280, 282, 283, 286
express, 222, 222 n., 223, 224, 224 n.
freight, 210, 212, 212 n., 215, 215 n., 216, 224, 228, 244, 245, 246, 268, 269
freight train mile, 227, 227 n., 228, 228 n., 229, 230, 231
gross, 193, 210, 211 n., 212, 216, 226, 227, 239 n., 241, 244, 248, 268, 282
mail, 224, 224 n., 225, 225 n.
miscellaneous, 222, 223, 223 n., 224
net, 224 n., 239 n., 243 n., 247, 247 n., 248, 248 n., 249, 250, 266, 267, 268, 269, 277, 279, 282
parlour and sleeping car, 222, 222 n., 223, 224
passenger, 216, 219, 219 n., 220, 220 n., 221, 221 n., 224, 230, 268
passenger train mile, 229, 229 n., 230, 231
steamship, 224
train mile, 226, 226 n., 227, 228, 230

East Richford, 135 n.

Eastern rates decision, 186, 196

Eastray, 157

Eaton, Sir John, 275

Eau Clair and Bow River Timber Co., 261

Edgar, J. D., 84 n., 85 n., 92 n.

Edmonton, 3 n., 88 n., 153, 154, 252
Dunvegan and British Columbia Railway, 154
House, 25 n.

Edmunston, 142

Efficiency, 226, 227, 229, 230, 231, 234, 238, 239, 276

Eganville, 142
Junction, 142

Ehaine Junction, 154

Eholt Junction, 142 n.

Elder Dempster Co., 169

Elevators, 101, 134, 150, 170, 182, 223, 224

Elm Creek, 141

Elora, 122 n.

Elphinstone, Lord, 105

Embankment, 107, 137, 150

Embro, 156

Emerson, 89 n., 174, 178 n., 205
and North West Railway Co., 174, 179
and Turtle Mountain Rr., 174

Emory's Bar, 88 n.

Empress of Asia, 169
of Britain, 169
of China, 139
of India, 139
of Ireland, 170
of Japan, 139
of Russia, 169

Engine, 110, 114, 123, 133, 133 n., 263
repairs, 232, 232 n., 233, 244

Engineer, 83 n., 91 n., 92 n., 128, 257, 258, 259
in chief, 91 n., 113, 272

England, 4, 12 n., 13, 18 n., 26 n., 33 n., 35 n., 38, 40 n., 42 n., 44 n., 46, 52, 52 n., 53 n., 60 n., 61, 61 n., 79 n., 82 n., 95 n., 96 n., 97 n., 102, 103

English, 4, 6, 23, 33 n., 36 n., 55, 55 n., 56, 56 n., 57 n., 58, 58 n., 59 n., 60 n., 61, 61 n., 63 n., 71 n., 73, 98, 105, 288, 289
Bay, 154, 256
colonies, 59, 60, 62, 290
River, 89 n.
traders, 24, 29 n., 61, 61 n.

Equipment, 89 n., 112, 130, 133, 133 n., 134, 149, 150, 151, 167, 169, 170, 171, 199, 200, 201, 202, 203, 204, 240, 247, 285, 286, 287, 288, 292, 294

Erie, 114
Canal, 65 n.

Esquimault, 84 n., 85 n., 86 n.
and Nanaimo Railway, 154
and Nanaimo Railway Bill, 87 n.

Estevan, 140, 153

Europe, 19, 52, 54, 66 n., 79, 79 n., 276, 287

European, 5, 42 n., 208
and North American Railroad case, 181

Exchequer court, 259

Executive committee, 113, 114, 275, 276, 277
Council of Manitoba, 181

Expanse, 153

Expenses, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 242, 243, 244, 245, 246, 247, 268, 273, 274, 283
car repairs, 239, 239 n., 240, 244
commercial telegraph, 243, 243 n.
[347]conducting transportation, 232, 233, 233 n., 234, 235, 238
engine repairs, 232, 232 n., 233, 244
freight, 268
general, 238, 238 n., 239, 239 n.
lake and river, 237, 237 n.
maintenance, 241, 241 n., 242, 243, 244, 245, 283
maintenance of cars, 240, 240 n.
maintenance of equipment, 240, 240 n., 241
maintenance of way and structures, 241, 241 n., 242, 243
maintenance of way per mile, 242, 242 n.
motive power, 232, 232 n., 233, 234, 235, 238
parlour and sleeping car, 235, 236, 236 n.
total, 231, 231 n., 232, 244
traffic, 235, 235 n.

Exploration, 2, 3, 35 n., 59, 73

Explorers, 3, 53 n.

Exports, 16 n., 29 n., 31 n., 67 n., 68 n., 94 n., 95 n.

Express earnings, 222, 222 n., 223, 224, 224 n.


Fairford House, 25 n.

Fairville, 158

Farnham, 135

Farrans Point Canal, 67 n.

Fays, Wm. G., 80 n.

Features, geographic, 13, 21, 52
topographic, 1

Federal authorities, 180
government, 179

Feeder, 67 n., 100, 156, 274

Fenian raids, 76 n.

Field, 155, 259

Fielding, Hon. W. S., 293 n.

Firewood, 131, 132, 132 n., 147, 147 n., 164, 164 n., 165

Fisher's Landing, 93 n.

Fisheries, 26, 52, 52 n., 53, 54, 72, 261

Fishery and Fur Co., 26

Fixed charges, 279, 279 n., 280, 281, 282, 283, 285, 286

Flat cars, 182

Fleming, Sandford, 42 n., 77 n., 83 n., 92 n., 95 n., 114, 275

Flour, 16 n., 64 n., 65 n., 67 n., 68 n., 131, 132, 132 n., 145, 145 n., 160, 160 n., 161, 175 n., 185, 194

Forget, L. J., 275

Formations, geological, 1, 2

Forrest, 152

Fort, 6, 6 n., 7, 9, 9 n., 11 n., 13 n., 23, 23 n., 24 n., 25 n., 56 n., 58, 58 n., 59, 59 n., 60 n.

Fort Abercrombie, 93 n.
a la Corne, 24 n.
Alexander, 9
Alexander, 28, 51
Athabasca, 24 n.
Augustus, 25 n.
aux Trembles, 24 n.
Bourbon, 24 n.
Carlton, 25 n.
Cataracqui, 58 n.
Charles, 23 n.
Charters, 59 n.
Chilcotin, 9 n.
Chipawean, 25 n.
Colville, 9 n.
Connolly, 9 n.
Crevecoeur, 58 n.
Dauphin, 23 n.
Douglas, 28, 28 n.
du Bas de la Rivière, 26 n., 28
Durham, 13 n.
Edmonton, 19
Ellice, 103
Esperance, 25 n.
Francis Canal, 87 n.
Fraser, 6 n.
Frontenac, 60 n., 61
Gary, 18, 19, 33 n., 38 n., 42 n., 45, 49, 50, 50 n., 51, 51 n., 77 n., 80 n., 86 n., 88 n., 93 n.
Gemesie, 59 n.
George, 6
George, 25 n.
Hope, 11 n., 15, 16 n., 17 n.
La Boeuf, 60 n.
La Jonquiere, 24 n.
Langley, 9 n., 11 n., 13 n., 15 n., 42 n.
La Reine, 23 n.
La Traite, 24 n.
Machault, 60 n.
McLeod, 6 n.
McLoughlin, 13 n.
Maurepas, 23 n.
Miami, 58 n.
Nanaimo, 11 n.
Necessity, 60 n.
Niagara, 58 n., 60 n., 61 n.
Nisqually, 9 n., 13 n.
Orange, 56 n.
Pelly, 88 n.
Pitt, 61 n.
Pond, 25 n.
Poskoyac, 24 n.
Providence, 25 n.
Resolution, 25 n.
Richelieu, 57 n., 58 n.
Rupert, 11 n.
St. Charles, 23 n.
[348]St. Frederick, 60 n.
St. James, 6 n.
St. Jean, 57 n.
St. Louis, 58 n.
Sainte Pierre, 23 n.
St. Teresa, 58 n.
Simpson, 13 n.
Sorel, 58 n.
Stikeen, 13 n.
Thompson, 14 n.
Vancouver, 7, 9, 13, 13 n.
Victoria, 9, 11
William, 26, 26 n., 27 n., 28, 38 n., 40 n., 45, 50, 51, 89 n., 91 n., 92 n., 114, 134, 150, 155, 170, 180, 184, 186, 196
William Henry, 60 n.
Yale, 11 n., 15, 15 n., 17 n.

Forty Mile Creek, 111

Foster, Hon. A. B., 88 n., 92 n.

Fox, Luke, 22 n.

Foxton, 153

France, 5 n., 54 n., 56, 57, 57 n., 60 n., 61, 276, 276 n.

Frankfort, 98

Franklin, 62 n.

Fraser, Grant and Pitblado, 89 n.
Lake, 6 n.
River, 6 n., 9, 11, 11 n., 14, 14 n., 15, 15 n., 16 n., 17, 18, 20, 21, 33 n., 43 n.
Simon Fraser, 5, 5 n., 6 n.

Fraxa Junction, 122 n.

Fredericton, 99 n., 136 n., 143, 158
and Grand Lake Coal Co., 158
Junction, 143

Freight, 18 n., 86 n., 93 n., 101, 111, 112, 114, 129, 130, 131, 131 n., 132, 134, 136 n., 144, 144 n., 148, 150, 159, 159 n., 160, 162, 166, 167, 168, 169, 171, 173 n., 179, 185, 188, 192, 192 n., 197, 199, 204, 205, 206, 210, 212, 213, 214, 222, 226, 228, 229, 235, 239, 286, 293
and cattle cars, 133, 133 n., 149, 149 n., 167, 167 n., 168, 169
carried, 213, 213 n., 214, 216, 234, 238, 239
earnings, 212, 212 n., 213, 215, 215 n., 216, 224, 228, 244, 245, 246, 268, 269
expenses, 268
rate, 172, 183, 184, 186, 188, 191, 191 n., 205, 207, 210, 216, 262
train load, 148, 148 n.
train mile earnings, 227, 227 n., 228, 228 n., 229, 230, 231
train mileage, 132, 132 n., 148, 148 n., 149, 166, 166 n., 167, 168, 199, 200, 227, 228

French, 23, 23 n., 24, 24 n., 27 n., 53 n., 54 n., 55 n., 56, 57 n., 58 n., 59, 59 n., 60, 60 n., 61, 61 n., 73, 287, 288, 289, 290
Atlantic cable, 151
Canadian, 7
Creek, 60 n.
Government, 55 n., 58 n.
half breeds, 48 n., 49 n.
Indian, 59 n.
River, 88 n.

Frobisher, 21, 24 n.

Fuller, Richard, 88 n.

Fundy, Bay of, 54 n., 71 n., 158, 169

Fur trade, 4, 5, 8, 9, 10, 11, 12, 23, 24, 25, 26, 27 n., 28, 28 n., 32 n., 33, 37, 38 n., 40, 44, 44 n., 48, 48 n., 51, 53, 54, 55, 56, 57, 57 n., 58 n., 59, 62, 65 n., 73, 97 n., 288
expansion, 11, 13, 14, 16, 21, 22
Hudson's Bay Co., 6, 7, 7 n., 10, 11, 12 n., 13, 13 n., 14, 14 n., 22
Northwest Co., 5, 6, 9 n., 10, 10 n., 24
Pacific Fur Co., 6, 9 n.
Russian American Fur Co., 6
supplies, 7, 9, 11 n.
X. Y. Co., 25 n.

Fur traders, 8, 17, 21, 29 n., 53

Furs, 6, 11, 13, 22, 22 n., 23, 25, 29 n., 30 n., 31 n., 39 n., 51, 54


Galops Canal, 67 n.

Galt, 157

Gaspé, 54 n.

Gauthier Junction, 152

General expenses, 238, 238 n., 239, 239 n.

Georgian Bay, 25 n., 69 n., 83 n., 88, 88 n., 91 n.
and Seaboard Ry., 155

German, 170

Gerrard, 142 n.

Gibson, 158
Alexander, 99 n.

Gilliam, Zachariah, 22 n.

Gilmour, Allan, 99 n.

Gimli, 153

Glacier, 258, 259

Gladman, George, 36 n.

Gladstone, 195

Gleichen, 152

Glen Tay, 156

Glenannan, 142

Glenboro, 140, 141, 253

Glengarry and Stormont Ry., 158

Glyn, Rt. Hon. G. G., 126

Goderich, 157

[349]Godfrey, 156

Gold, 43 n., 46 n., 47 n., 261, 291
discoveries, 11, 14, 16, 17, 18, 21, 84
districts, 15 n., 38 n.
fields, 39
production, 16 n.
revenue, 43 n.
rush, 16, 19, 69 n., 198, 219

Golden, 155, 258

Gomez, Stephen, 53 n.

Gordon, Capt., 10 n.

Government, 3, 4, 7 n., 8, 10, 10 n., 14, 15, 18 n., 19 n., 21, 30 n., 31 n., 32, 35 n., 38 n., 44 n., 46 n., 48, 62 n., 66 n., 68 n., 90 n.
Austrian, 170
British, 10, 11, 12 n., 13, 32, 37 n., 40 n., 42 n., 289, 290
Canadian, 17 n., 36 n., 38 n., 39 n., 40 n., 41 n., 42, 45, 46 n., 47 n., 48 n., 49, 50, 50 n., 75, 75 n., 76, 77, 77 n., 78 n., 79 n., 81 n., 82 n., 83, 84 n., 86 n., 87 n., 88 n., 90, 90 n., 91, 91 n., 92 n., 93, 94, 96 n., 98, 98 n., 99, 100, 101, 103, 104, 105, 106, 108, 109, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 123, 124, 125, 126, 127, 128, 130, 136, 136 n., 139, 174, 175, 176, 181, 182, 187, 188, 194, 197, 201, 205, 210, 212, 220, 223, 224, 225, 231, 232, 238, 239, 241, 242, 247, 250 n., 251, 252, 253, 253 n., 254, 255, 256, 257, 258, 259, 260, 261, 262, 263, 264, 265, 270, 271, 272, 273, 273 n., 274, 277, 278, 279, 282, 286, 292
Dominion, 20, 76 n., 84 n., 85 n., 87 n., 123, 174, 175, 179, 180, 182, 187, 255, 256, 273, 274
French, 55 n., 58 n.
Imperial, 35 n., 41 n., 44, 44 n., 69 n., 95 n., 282
Provincial, 181
United States, 19 n., 32 n.

Governor, 62 n.
General, 39 n.
in council, 172, 179, 184
of Canada, 43
Red River, 40 n., 42 n.

Grade, 89 n., 107, 110, 111, 137, 150, 155, 182, 247, 247 n.

Gradient, 90 n., 91 n., 92 n., 149

Grain, 29, 131, 132, 132 n., 144 n., 145, 147, 149, 150, 151, 158, 159, 159 n., 160, 161, 162, 163, 165, 166, 167, 175 n., 176, 178, 183, 185, 186, 198, 214, 215, 216, 223, 224, 229, 244, 245, 246, 247, 250, 292
barley, 7 n., 195
oats, 7 n., 11 n., 185, 195
trade, 67 n., 68 n., 69 n.
wheat, 7 n., 11 n., 16 n., 31 n., 64 n., 65 n., 67 n., 68 n., 130, 144, 145, 160, 162

Grand Fork, 154
Portage, 25 n., 26, 26 n.
Prairie, 154
Trunk Pacific, 187, 188, 292
Trunk Railroad, 18 n., 40, 40 n., 69 n., 70, 71 n., 79, 80 n., 81 n., 82, 95 n., 112, 122, 123, 124, 136, 137, 138, 143, 156, 178, 183, 187, 195, 208, 278, 290, 292

Grandes Piles, 123 n.

Grandmere, 157

Grant, 32 n., 34 n., 97 n.
of land, 34 n., 46 n., 62 n., 63 n., 66 n., 75 n., 76, 76 n., 80 n., 98, 99, 108, 118, 120, 121, 181, 187, 190, 250, 251, 252, 254, 255, 256, 258, 259, 260, 261, 263, 263 n., 264, 265, 270, 271, 272, 273, 291
of Red River, 26, 26 n., 27 n., 31 n., 32 n.
of Vancouver Island, 11, 11 n., 12, 12 n.

Grave, Dupont, 54 n.
François, 54 n.

Gray, Capt., 4 n.

Great Bend of the Missouri, 69 n.
Britain, 5 n., 6 n., 7, 7 n., 8, 10, 21, 26, 32 n., 33 n., 35, 40, 52, 62, 63, 67 n., 68, 71 n., 76 n., 289, 290, 291
Falls, 15
Lakes, 2, 59, 69 n., 134, 155, 195
Northern Railroad, 139, 206, 207
Northwest Central Railway, 151, 152, 254, 255
Western Railroad, 69 n., 70

Green Bay, 58 n.

Greenwood, 142 n.

Gregory, Chas. C., 273

Grenfell, P. Du Pont, 98, 113, 274, 275

Gretna, 113, 205

Grey, Earl, 12 n., 30 n., 31 n.

Griffin Lake, 258, 259

Griffiths, Major, 31 n.

Groseilliers, 58 n.

[350]Gross earnings, 193, 210, 211 n., 212, 216, 226, 227, 239 n., 241, 244, 248, 268, 283

Guarantee, 83 n., 85 n., 115, 119, 120, 182, 241, 278, 283
governmental, 41 n., 187
Imperial, 70 n., 76, 76 n., 83 n.

Guelph, 142, 157
and Goderich Railway, 157
Junction, 142, 157
Junction Railway, 142

Guise, Capt., 4 n., 5 n.

Gunn, Donald, 27 n.


Half-breed, 29, 48, 48 n., 49 n., 51 n.

Halifax, 33 n., 60 n., 70 n., 72 n., 113, 135, 136, 136 n., 139, 156
and Quebec Railroad, 70 n.

Hall, Grant, 275

Hamilton, 99 n., 143, 157, 275

Hamiota, 151

Hankinson, 139

Hanna, Capt., 4

Harris, G. R., 114, 275

Harrison, Lake, 15
President, 194

Hartney, 140

Harvey, 136 n.

Hayfield, 28 n.

Hay's Island, 23 n.

Head, Sir Edmund, 43, 46

Hearne, Samuel, 24 n.

Hector, 155

Hendrie, Wm., 99 n.

Heney, Charlebois and Flood, 88 n.

Henley House, 24 n.

Hespeler, 157

Hill, J. J., 93 n., 97, 102, 102 n., 113, 189 n., 276

Hinckman, W., 80 n., 81 n.

Hincks, Sir Francis, 79 n.

Hind, Prof. H. Y., 36 n., 38

Hochelaga, 53, 108, 124, 134

Holland, 140, 276

Holt, H. S., 275

Hong Kong, 34 n., 138, 139

Hope, 155

Hore, Master, 53 n.

Horsefly Lake, 78 n.
River, 78 n.

Horses, 9 n., 18 n., 31 n., 51 n.

Hosmer, C. R., 275

Hotel, 92 n., 204, 224, 249, 258, 265 n.

Houlton, 143

Howe, Joseph, 70 n.

Howland, Sir W. P., 99 n.

Hudson Bay, 1, 1 n., 2, 3, 21, 22, 24 n., 25 n., 26 n., 41 n., 58 n., 72, 170, 171, 247 n., 291
Henry, 22
River, 56, 60, 62 n., 73
Strait, 3, 22, 22 n.

Hudson's Bay Company, 6, 7, 7 n., 10, 11, 11 n., 12 n., 13, 13 n., 14, 14 n., 22, 23, 23 n., 24, 25 n., 26 n., 27, 27 n., 28, 30 n., 32 n., 33 n., 34, 34 n., 35 n., 37 n., 38 n., 39, 39 n., 40, 40 n., 41 n., 42 n., 43, 45, 46, 50, 50 n., 51, 69 n., 71 n., 93 n., 97 n., 98 n.
House, 25 n.

Hull, 112 n.
Junction, 156

Huron, 56, 57 n.


Icelandic River, 153

Ile la Crosse, 25 n.

Illecillewaet, 259
River, 110

Illinois, 62 n.
Indians, 59 n.
River, 58 n.

Immigrants, 14, 16, 19, 129 n., 173 n., 176, 205, 208

Immigration, 7, 8, 21, 71 n., 129, 180, 197, 201, 205, 206, 222, 236, 291, 292, 294

Imperial, 38 n., 9, 41 n., 50, 63 n., 96 n., 286
authorities, 18 n., 37 n., 39, 41 n., 44 n., 45, 45 n., 46, 46 n., 47, 47 n., 49, 50 n., 83 n., 84, 88 n., 138
Government, 35 n., 41 n., 44, 44 n., 69 n., 95 n., 138
guarantee, 70 n., 76, 76 n.
support, 41, 70 n., 95 n.

Imports, 16 n., 29, 29 n., 30 n., 52 n., 64 n., 67 n., 68 n., 94 n., 95 n., 192 n.

India, 4, 34 n., 67 n.

Indians, 10, 23 n., 27, 33 n., 40 n., 49 n., 53, 56, 56 n., 57 n., 59 n., 60 n., 61, 61 n., 62, 62 n., 288
Assinae Poets, 23 n.
chiefs, 53 n.
Chutaghicks (Illinois), 59 n.
French, 59 n.
Huron, 56, 57 n.
Iroquois, 56, 58, 59
Ottawa, 57 n.
Twightwies (Miamis), 59 n.

Ingersoll, 156
Junction, 156

Intercolonial Railway, 41, 70 n., 71 n., 72, 73, 112, 136, 136 n., 158, 290, 292

[351]Interest, 41 n., 80 n., 116, 117, 120, 121, 124, 125, 126, 127, 182, 187, 191 n., 248, 249, 251, 253 n., 270, 271, 280, 281, 282, 284

International, the, 93 n.

International boundary, 106, 108
Railway Co., 135

Interoceanic Co., 78, 78 n., 79, 79 n., 81 n., 82 n.

Interprovincial and James Bay Railway Co., 158, 255

Interstate Commerce, 194
Commission, 191 n., 192, 196, 207, 208
law, 195

Iroquois, 56, 58, 59
Canal, 67 n.

Irricana Junction, 153

Isbister, A. K., 30, 30 n., 33

Islanda, 52 n.


Jacques Cartier Union Railway, 123, 124

James, 22 n.

Japan, 193, 281 n.

Jasper House, 42 n., 98, 250 n.

Jaunaye, Capt., 54 n.

Jay Grenville treaty, 24, 63 n.

Jefferson, President, 5 n., 64 n.

Jesuit priests, 54 n., 58 n.

Johnson, 60 n.

Johnson's Straits, 78 n.

Joliette and Brandon Railway, 157
Junction, 123 n.

Junction, 92 n., 100, 110, 123, 136 n., 158, 173 n.
Flat, 88 n.


Kaleida, 153

Kamarno, 153

Kaministiquia, 26, 34 n.
River, 23 n.

Kamloops, 9, 9 n., 11 n., 14 n., 17 n., 98, 99, 105, 109

Kaskaskia River, 59 n.

Kaslo, 155
and Slocan Railway, 155

Kavanagh, Murphy and Upper, 89 n.

Keefer, Thos. C., 273

Keewatin, 89 n.

Kelfield, 154

Kelsey, Henry, 23 n.

Kendrick, Capt., 4 n.

Kennedy, J. S., 110, 113, 114, 276
& Co., 102 n., 104

Kentville, 158

Kerrobert, 153

Kersteman, Wm., 77 n.

Kettle Falls, 87 n.
Valley Railroad, 155

Kicking Horse Creek, 110
Pass, 111, 250 n.
River, 110, 262
Valley, 121

Kimball, 154

Kimberley, 142 n.

King, Ed., 110
George's Sound Co., 4 n.

King's Proclamation, 62 n.

Kingsgate, 154

Kingsport, 158

Kingston, 2 n., 66 n., 99 n., 156, 274
and Pembroke Ry., 156, 191 n.

Kipawa, 142, 158, 255
Junction, 142

Kipp, 152

Kirkella, 152

Kirkpatrick, Hon. G. A., 274, 275

Klondike, 198, 207, 217, 220, 222, 236

Koehn, Loeb & Co., 109

Kootenae House, 6 n.

Kootenay and Arrowhead Railway, 142 n.
Central Railway, 154
Lakes, 141, 184
Landing, 139
Mining district, 141
River, 15

Kullyspell House, 6 n.


Labelle, 142, 157

Lac d'Orignal Fort, 25 n.
du Bonnet, 142

Lachine Canal, 65 n., 67 n.
Massacre, 59 n.
Rapids, 55 n., 56 n.

Lacombe, 153

La Jemeraye, 23 n.

Lake Anderson 15
and river expense, 237, 237 n.
Athabasca, 25 n.
Babine, 9 n., 15 n.
Champlain, 60 n., 62 n., 68 n.
Champlain and St. Lawrence Junction Railroad, 135 n.
division, 33 n.
Erie, 2, 58 n., 60 n., 62 n., 63, 65 n., 66 n., 69 n., 156, 157, 289
Erie and Northern Railway, 157
George, 60 n.
Huron, 34 n., 58 n., 62 n., 66 n., 67 n., 69 n., 78 n., 102
Joseph, 58 n.
Lillooet, 15
Manitoba, 23 n.
Michigan, 32 n., 58 n.
Nipigon, 23 n.
Nipissing, 79 n., 80 n., 113 n., 121 n., 137, 180
of the Woods, 23 n., 34 n., 38 n., 45, 51 n., 78 n., 86 n.
[352]Ontario, 2, 60 n., 62 n., 63, 65 n., 68, 69 n., 156, 157, 289
Pend d'Oreille, 6 n.
St. Anne, 33 n.
St. Clair, 65 n.
Saskatchewan, 103
Seton, 15
Shebandowan, 89 n.
Simcoe, 65 n., 69 n.
Superior, 2, 3, 17 n., 18 n., 20, 23, 26, 32 n., 35 n., 36, 38, 38 n., 42 n., 45, 45 n., 48 n., 50 n., 51, 51 n., 58 n., 62 n., 66 n., 67 n., 68 n., 76 n., 77 n., 78 n., 83 n., 85 n., 86 n., 87, 87 n., 89, 92 n., 98, 99, 100, 102, 109, 113, 134, 170, 173, 175, 184, 186, 219, 247 n., 291
Temiskaming Colonization Ry., 142
Winnipeg, 36 n., 92 n.

Land, 11 n., 12 n., 31 n., 33 n., 36 n., 40 n., 42 n., 43 n., 46 n., 52 n., 66, 80 n., 81 n., 83 n., 84 n., 92 n., 95 n., 96 n., 97, 97 n., 98, 98 n., 99, 104, 105, 107, 118 n., 119, 120, 125, 126, 170, 182, 183, 190 n., 247 n., 250, 251, 252, 253 n., 254, 255, 255 n., 256, 257, 258, 259, 260, 261, 263, 263 n., 264, 265, 266, 270, 271, 272, 284, 292, 294
carriage, 38 n., 138
grant, 26, 26 n., 28 n., 32 n., 34 n., 41 n., 47 n., 62 n., 63 n., 66 n., 75 n., 76, 76 n., 80 n., 108, 118, 120, 121, 181, 187, 190, 250, 250 n., 251, 252, 254, 255, 256, 258, 260, 261, 263, 264, 265, 270, 271, 272, 273, 291
grant bonds, 101, 103, 104, 107, 108, 109, 115, 116, 117, 118, 118 n., 125, 182, 250, 271, 272, 278
price of, 28, 30 n.
receipts, 264, 264 n., 265, 266, 267, 268, 269
sale, 28 n., 48, 77 n., 80 n., 103, 250, 259, 264, 265, 265 n., 266, 268, 271, 291
title, 29 n., 249

Langden, 153

Lanigan, 152

La Noüe, 23 n.

La Pointe, 58 n.

Lardeau, 142 n.

La Rivière, 153

Larkin, P., 99 n.

Larocque, 30 n.

La Salle, 58 n.

La Tour, 57 n.

Lauder, 153

Laurent, Regis, 30 n.

Laurentian formation, 2, 3
Railway, 274

Lausanne, the, 8 n.

L'Avenir, 135 n.

La Verendrye, 23, 23 n.

Lease, 135, 136, 136 n., 137, 139, 140, 141, 142, 143, 151, 152, 154, 156, 157, 158, 174, 182, 184, 250, 255, 258, 259, 260, 271

Leaside Junction, 137

Le Borgne, 57 n.

Lee, Jason, 8, 8 n.

Legislature, 87 n., 88 n.

Lennoxville, 135

Lenore, 152

Lethbridge, 139, 152, 154, 184

Levis, 157

Lewis and Clark expedition, 5

Lieutenant Governor, 49, 51

Lillooet, 15, 17 n.

Lindsay, Bobcaygeon and Pontypool Ry., 157

Linwood, 157

Listowel, 157

Liverpool, 170

Livestock, 131, 132, 132 n., 147, 147 n., 161, 161 n., 162, 175 n., 183, 185

Loan, 76, 76 n., 120, 124, 125, 126, 127, 248, 249, 270, 271, 272, 274, 278, 282
Act, 125, 280, 282

Loch Earn, 154

Lock, 51 n., 67 n.

Locomotive, 115, 133, 134, 149, 149 n., 168, 168 n., 182, 232, 283
shops, 182

Lomond, 154

London, 13 n., 48, 66 n., 67 n., 104, 113, 127, 170, 274, 275, 277, 278, 282
(Ont.) 99 n., 137
Junction Ry., 122

Long, Major S. H., 32 n.

Lords Commissioners for Trade and Plantations, 62 n.

Lorie, Capt., 4 n., 5 n.

Lorraine, 154

Louisburg, 60 n., 61

Louise bridge, 181

Louisiana purchase, 32 n.

Lovitt, W. B., 99 n.

Lumber, 131, 132, 132 n., 146, 146 n., 164, 164 n., 175 n., 176, 183, 261, 262, 263, 288

Lyleton, 141

[353]Lynn River, 65 n.

Lytton, 15 n., 17 n., 18 n., 88 n.
Sir E., 37 n.


MacDonald, Sir John A., 19 n., 20 n., 81 n., 82 n., 96, 96 n., 97, 174

MacFie, D., 99 n.

MacKenzie, Alexander, 5, 26
Hon. Alexander, 83, 84 n., 85 n., 89 n., 104, 291
River, 2

MacPherson, Hon. D. L., 79, 79 n., 80 n., 82 n.

McAdoo award, 188

McAuley, 152

McBride's Junction, 154

McDonnell, Allan, 36 n.

McDougall, Hon. Wm., 49, 49 n.

McEwen, 44 n.

McGregor, 151

McInnes, D., 275

McIntyre, Duncan, 96 n., 97, 102, 113, 114, 276
& Co., 102 n.

McLaren, D., 80 n., 81 n.
James, 99 n.

McLean, Prof. S. J., 185

McLennan, 154

McLeod Lake, 6 n.

Malcolm, 42 n.

McMaster, A. R., 99 n.

McMullen, Geo. W., 79 n., 80 n., 81 n., 82 n.

McNicoll, D., 275

McTavish, Governor, 45 n.

Machias, 57 n.

Mackay, J. W., 275
Hon. R., 275

Macklin, 152, 153

Macleod, 184

Mail, 39 n., 41 n., 112, 138
earnings, 224, 224 n., 225, 225 n.

Maine, 70 n., 135, 136 n., 143

Maintenance expense, 241, 241 n., 242, 243, 244, 245, 283
of cars, 240, 240 n.
of equipment, 240, 240 n., 241
of way and structures, 241, 241 n., 242, 243
of way per mile, 242, 242 n.

Maissoneuve, Sieur de, 56 n.

Manager, 97, 113, 114

Manchester, Duke of, 105
House, 25 n.

Manitoba, 50, 51, 72, 76 n., 78 n., 87 n., 93, 93 n., 100, 102, 108, 130 n., 153, 174, 175, 179, 180, 180 n., 181, 182, 183, 187, 252
and North West Farmers' Alliance, 178

Manitoba and Northwestern Ry., 152, 254
and South West Colonization Ry., 108, 139, 253, 255, 261, 264, 274
Central Ry., 179
population, 51 n., 93 n.
Tramway Co., 174

Manitoba, the, 93 n.

Manitou, 140

Maniwaki, 156

Manufactured articles, 131, 132, 132 n., 145, 145 n., 146, 162, 162 n., 163, 164, 245, 246

Marks and Conmee, 89 n.

Martinez, 4 n.

Martinsen, R. V., 110, 114, 275

Marysville, 158
Junction, 158

Massachusetts Bay Bill, 61 n.

Mattawa, 77 n., 142

Mattawamkeag, 135, 136

Matthews, W. D., 275

Medicine Hat, 111, 178 n.

Medora, the, 170

Megantic, 135, 157

Melville Junction, 122 n.

Memorial, 8 n., 12 n., 20 n., 30 n., 32, 42 n., 48 n., 100, 181

Menteith, 141

Menzies, Wm. John, 105

Merchant's Line, 93 n.

Meredith, Sir Vincent, 275

Merritt, 155

Metagama, the, 170

Miamis, 59 n.

Michigan Central Ry., 122, 143

Michilimackinac, 58 n.

Midway, 140, 155

Mile End, 112, 122 n.

Mileage, 94 n., 112 n., 120, 131, 132, 136 n., 143, 143 n., 145, 169, 178, 187, 193, 197, 200, 202, 203, 204, 210, 211, 211 n., 214, 215, 218, 219, 220, 227, 228, 230, 235, 242, 243, 247, 248, 283
freight train, 132, 132 n., 133, 148, 148 n., 149, 166, 166 n., 167, 168, 199, 200, 227, 228
mixed train, 132 n., 166, 166 n., 228, 230
passenger train, 199, 199 n., 200, 200 n., 204, 229, 230, 231, 233, 234, 235, 238, 239
rates, 100, 101, 112, 173 n., 175, 183
total train 132, 132 n., 133, 148, 148 n., 165, 165 n., [354] 227, 232, 233, 234, 235, 238
train 133, 147, 149, 150, 165, 166, 168, 200, 227, 228, 229, 230, 232, 234, 235, 240

Millbank Sound, 13 n.

Mills, D. O., 92 n.

Milltown, 143
Junction, 143

Milton, Viscount, 18, 18 n.

Milwaukee, 42 n., 67 n.

Mineota, 151

Mines, 17 n., 19, 142, 170

Mining, 11, 15, 141, 142, 142 n.
coal, 17, 17 n., 170

Minister of Finance, 101
of Public Works, 45 n., 48

Minneapolis, 192, 194, 208
St. Paul and Sault Ste. Marie Ry. Co., 137, 139, 155, 206, 249, 280

Minnedosa, 152

Minnesota, the, 93 n.

Minnesota, 20 n., 32 n.

Minto, 158

Miscellaneous earnings, 222, 223, 223 n., 224

Missanabie, the, 170

Mission, 138

Missionaries, 8, 8 n., 55 n., 56

Mississippi River, 59, 59 n., 62 n., 67 n., 73, 288

Missouri River, 5 n., 69 n., 191, 195

McKey, John, 5 n.

Moberly, 259
W., 17 n., 110

Mobile, 59 n.

Mohawk valley, 62 n.

Molson, 142, 155

Moncton, 136 n., 187

Monongahela River, 60 n.

Monopoly, C.P.R., 99, 130, 174, 179, 181, 182, 189, 190, 262, 293
Hudson's Bay Co., 12 n., 28, 29, 30, 33
trading, 54 n., 55, 55 n., 56 n., 288

Mont Laurier, 157

Montana, 6 n.

Montcalm, 61 n.

Monteagle, the, 169

Montreal, 2 n., 53, 56, 56 n., 57 n., 63 n., 65, 65 n., 66 n., 67 n., 68, 68 n., 69 n., 77 n., 78, 78 n., 79 n., 82, 97, 99, 99 n., 100, 102, 104, 112, 113, 120, 122, 123, 128, 134, 135, 136, 136 n., 137, 150, 155, 156, 157, 158, 170, 173, 187, 208, 276, 277, 290, 291
and Ottawa Ry., 137, 142
and Western Ry., 142
Bank of Montreal, 92 n., 97, 103, 117

Montreal Telegraph Co., 42 n.
Ottawa and Western Ry., 95 n.

Monts, Sieur de, 54 n., 55 n.

Moose River, 25 n., 106

Moosejaw, 139, 152, 153, 178 n., 206, 256, 259
Creek, 103, 106

Moose-Sebee, 23 n.

Morin, Hon. A. N., 69 n.

Mortgage, 104, 109, 120, 125, 126, 127, 182, 271, 274, 280, 281 n.

Morton, Bliss & Co., 98, 98 n., 102 n., 274, 276
Levi P., 274, 275
M. P., 98 n.
Rose & Co., 98, 103, 274, 276
Mother Lode, 142 n.

Motive Power, 232, 232 n., 233, 234, 235, 238

Mount Stephen, 272

Mountain City, 174
division, 33 n.

Mowbray, 153

Munson, N. C., 92 n.

Musgrave, Governor, 20


Nass River, 13 n.

Nakusp, 142
and Slocan Ry., 141

Nanaimo, 84 n., 85 n., 86 n.

Nanton, A., 275

Napinka, 141

National policy, 95 n.

Neebing Hotel, 92 n.

Neepigon, 78 n.
River, 256

Nelson, 139, 141, 184
River, 2

Neptune, 153

Nesbitt, 141

Net earnings, 224 n., 239 n., 243 n.,
247, 247 n., 248, 248 n., 249,
250, 266, 267, 268, 269, 277, 279, 282, 286

New Brunswick, 19, 33 n., 44 n., 70 n., 71 n., 72 n., 74, 93 n., 136, 158
Coal and Ry. Co., 158
Railway, 136 n., 142
Southern Ry., 158

New England, 289
colonies, 61
states, 71 n.

New France, 289
Company of, 56, 57, 57 n.

New Georgia Gulf, 33 n.

New Jersey, 109

New Orleans, 59 n.

[355]New Severn, 23 n.

New Westminster, 17 n., 154

New York, 8 n., 62 n., 67 n., 68, 80, 104, 109, 112, 113, 156, 192, 192 n., 194, 275, 276, 278, 282
Central Ry., 143

New Zealand, 34 n.

Newburg Junction, 143

Newcastle, Duke of, 40 n., 41 n., 43 n.

Newfoundland, 53, 54, 59 n.
fisheries, 52, 72

Newport, 135, 157
and Richford Ry., 135 n.

Niagara, 78 n.
district, 63 n., 143
peninsula, 65 n., 70
River, 65 n.

Nipigon Bay, 77 n.
Harbour, 42 n.
River, 77 n., 121 n.

Nipissingen Post, 88 n.

Nisqually River, 13 n.

Nominingue, 157

Nootka, 5, 67 n.
Sound Controversy, 4

Norquay, Premier, 180

Norridgewock, 60 n.

North America, 1, 6 n., 10 n., 14, 22, 26, 32 n., 33 n., 38 n., 52, 59, 171, 287, 288

North American Railway Contracting Co., 109, 117

North Bay, 138, 156, 208
Dakota, 139
Shore Ry., 122, 123, 124
Star Junction, 142 n.
Troy, 135 n.

Northcote, 92 n.
H. S., 102 n., 104, 113, 274

Northern Colonization Ry., 78 n., 79 n., 95 n., 157
Pacific Railroad, 19, 19 n., 79 n., 80 n., 81 n., 93 n., 102, 181, 183, 185, 207, 278
Railroad, 69 n.

Northwest, 13 n., 22, 22 n., 36, 39, 42 n., 51 n., 59, 69 n., 72, 79 n., 82 n., 88 n., 183, 185, 186, 189, 189 n., 205, 264, 291
Company, 5, 6, 9 n., 10, 10 n., 24, 25 n., 27, 27 n., 28
Navigation and Railroad Co., 40, 51 n.
Passage, 1, 3, 21, 53
rebellion, 128
territory, 40, 43 n., 44, 45, 46 n., 47 n., 49, 49 n., 52, 52 n., 71 n., 173, 263 n.
Transportation, Navigation and Railroad Co., 38

Nor'Wester, The, 43 n.

"Notre Dame de Montreal," Society of, 56 n.

Nouel, Jacques, 54 n.

Nova Scotia, 19, 33 n., 44 n., 57 n., 70 n., 71 n., 72 n., 74, 93 n., 156, 158


Oak Lake, 106

Ochiltrie, Lord, 55 n.

Ogden, Wm. B., 80 n., 81 n.

Ogdensburg, 68 n.

Ohio Canal, 65 n.
River, 59, 60 n., 65 n., 73
valley, 60 n., 62, 62 n.

Okanagan Landing, 141
River, 9, 9 n.

Oliver, Davidson and Brown, 88 n.

Onderdonk, Andrew, 88 n., 91 n.

Ontario, 92 n., 99, 99 n., 100, 122, 131, 132, 150, 151, 154, 183, 278
and Pacific Junction Ry., 92 n., 100, 173 n.
and Quebec Ry., 114, 122, 134, 271
Government, 255, 256
population, 74, 93 n.

Operating ratio, 244, 244 n., 245, 245 n., 246, 247, 248

Order in council, 84 n., 88 n., 103, 108, 174, 188, 239, 252, 273

Oregon, 7, 8, 10, 10 n., 12 n., 13, 14, 21, 22, 32 n., 68 n., 193
treaty, 10, 11, 12

Orford Mountain Ry., 157

Orient, 3, 52, 138, 139

Oriental, 138, 206

Osborne Bay, 154

Osler, Sir E. B., 104, 105, 114, 259, 275, 277

Osnaburg House, 25 n.

Oswego, 60 n., 62 n., 68, 68 n., 70, 78 n.
Canal, 65 n.
River, 60 n.

Other articles, 131, 132 n., 146, 146 n., 163, 163 n., 246
income, 248, 249, 249 n., 250, 266, 267, 268

Otis, 61 n., 158

Ottamine, 142

Ottawa, 20, 50, 69 n., 77 n., 78 n., 79 n., 99 n., 112, 112 n., 134, 137, 156, 187
Indians, 57 n.
Northern and Western Ry., 156
River, 78 n.
valley, 55 n.

Otter Summit, 155
[356]Tail Creek, 262

Overland, 18, 18 n., 19, 58 n.
Railway, 17 n.

Owen Sound, 122, 134, 150, 155

Oxen, 31 n., 51 n.


Pacific coast, 3, 6, 40, 40 n., 41, 41 n., 42 n., 86 n., 132, 138, 139, 150, 169, 191, 206, 208, 281 n., 292
division, 33 n.
drainage basin, 1 n., 2, 171, 291
fishery, 26
Fur Co., 6, 9 n.
Ocean, 3 n., 5, 5 n., 6 n., 9, 18 n., 26, 26 n., 34 n., 41, 67, 68 n., 69, 69 n., 70 n., 71, 72, 77 n., 169
railroad, 19 n., 76 n., 79 n., 90 n.
road, 33 n.
Scandal, 82, 83, 291

Padmore, 111

Palliser, Capt., 34

Panama Canal, 192
Isthmus of, 17

Panama, the, 14 n.

Panic of 1873, 94 n.

Paris, 98
treaty of, 71 n.

Parliament, 19 n., 30 n., 37 n., 41 n., 45, 46 n., 69 n., 75, 75 n., 77 n., 80 n., 82 n., 99, 101, 120, 123, 128, 138, 172, 173, 174, 180, 181, 188, 189, 280

Parlour car and sleeping car earnings, 222, 222 n., 223, 224
expenses, 235, 236, 236 n.
official and paymasters' cars, 203, 204, 204 n.

Partners, wintering, 44, 44 n., 48, 48 n., 97 n.

Pasqua, 139

Passenger, 18 n., 86 n., 111, 112, 149, 184, 192, 197, 198, 198 n., 199, 200, 201, 202, 203, 204, 205, 206, 209, 217, 219, 221, 222, 229, 230, 231, 233, 235
carried, 217, 217 n., 218, 219, 234
cars, 133, 134, 182, 201, 201 n., 202, 203
density, 218, 218 n., 219
earnings, 219, 219 n., 220, 220 n., 221, 221 n., 224, 230, 268
traffic, 101, 129, 169, 173 n., 202, 204, 205, 206, 216, 220, 221, 224, 226, 231, 235, 239, 247, 268
train mile earnings, 229, 229 n., 230, 231
train mileage, 199, 199 n., 200, 200 n., 204, 230, 231, 233, 234, 235, 239

Payson, H. R., 80 n., 81 n.

Peace River, 25 n., 87 n.
Crossing, 154
Pelly, Sir J. H., 31 n.

Pembina, 38 n., 42 n., 49, 52 n., 78 n., 93 n., 103, 105, 106, 114, 120, 272
Mountain Junction, 113
River, 25 n.

Pembroke, 88 n., 106, 112, 112 n., 274

Peninsular and Oriental Steam Navigation Co., 138

Penobscot River, 55 n., 57 n.

Pentagoet, 57 n., 59 n.

People's Rights Association, 178

Perth, 122 n., 151
Junction, 143

Peterboro', 99 n.

Petition, 18 n., 36, 36 n., 42 n., 62 n., 69 n., 77 n., 92 n.
Red River, 30 n., 32, 47 n., 48 n.

Philadelphia, 192

Phoenix, 142 n.

Pictou, 72 n.

Pike, Lieut. Z. M., 32 n.

Piles Junction, 123 n., 157

Pine Fort, 25 n.
River, 87 n.

Pioneer, the, 93 n.

Pipestone, 141, 152

Pittsburgh, 192

Plain, 3, 20 n., 21, 22, 23, 42 n.

Plaster Rock, 143

Platform cars, 133, 133 n.

Plymouth, 57 n.

Point Fortune, 142
Levis, 112

Pond, Peter, 24 n.

Pontiac, 61

Pope, John, 278 n.
Hon., J. H., 96 n.

Population, 8, 33 n., 38 n., 57 n., 58 n., 63 n., 74, 85 n., 93 n., 130, 130 n., 183, 185, 197, 287, 288, 289, 292, 294
increase in, 28, 29, 31 n., 43 n.
of Manitoba, 51 n.
of New Brunswick, 72 n.
of Nova Scotia, 71 n.

Port Anderson, 17 n.
Arthur, 2 n., 92 n., 107, 111, 112, 121, 124, 128, 134, 178, 178 n., 185, 206, 207, 256
Burwell, 156
Dalhousie, 66 n.
de la Heve, 57 n.
Douglas, 17 n.
Dover, 157
[357]Lomeron, 55 n.
McNicoll, 155, 170
Maitland, 66 n.
Moody, 88 n., 98, 120, 134, 138, 154, 256, 265
Nelson, 22 n., 23 n., 26 n.
Pemberton, 17 n.
Royal, 54 n., 55 n., 57 n., 59 n., 60 n.
Talbot, 65 n.

Portage la Prairie, 47 n., 103, 152, 155, 176 n., 177, 177 n., 178 n., 185

Portland (Maine), 69 n., 70, 79, 135
(Oregon), 207

Portlock, Capt., 4 n.

Portuguese, 22 n.

Postal, 225
service, 39, 39 n.
subsidy, 18 n., 115, 116
Telegraph Co., 151

Posts, fur trading, (see Fort), 4, 6, 8, 9, 11, 13, 21, 22, 23, 24, 39 n., 46 n., 47 n., 51, 55, 56, 58, 58 n., 59, 61, 61 n.
Assiniboine House, 25 n.
Bedford House, 25 n.
Brandon House, 25 n.
Buckingham House, 25 n.
Chedabouctou, 59 n.
Chesterfield House, 25 n.
Cumberland House, 24 n.
Edmonton House, 25 n.
Fairford House, 25 n.
Grand Portage, 26
Henly House, 24 n.
Hudson's House, 25 n.
Kaministiquia, 26
Kamloops, 9, 9 n., 11 n., 14 n., 17 n.
Kootenae House, 6 n.
Kullyspell House, 6 n.
Lac d'Orignal Fort, 25 n.
La Pointe, 58 n.
Louisburg, 60 n., 61
Manchester House, 25 n.
Mobile, 59 n.
Montreal, 53, 56, 56 n., 57 n.
New Orleans, 59 n.
New Severn, 23 n.
Osnaburg House, 25 n.
Pentagoet, 57 n., 59 n.
Port de la Heve, 57 n.
Port Lomeron, 55 n.
Port Nelson, 23 n.
Port Royal, 54 n., 55 n., 57 n., 59 n.
Prince of Wales Fort, 23 n.
Quebec, 55, 57 n., 59 n., 60 n.
Rocky Mountain House, 25 n.
St. Ignace, 58 n.
Saleesh House, 6 n.
Souris River Fort, 25 n.
South Branch House, 25 n., 36 n.
Tadousac, 56, 57 n.
Three Rivers, 53, 54 n.

Potter, Mr., 95 n.

Poutrincourt, M. de., 54 n.

Prairie division, 33 n.
fires, 40 n.
provinces, 187, 263 n., 265, 294
section, 107, 174, 189

Precipitation, 2, 2 n., 3, 3 n.

Premier, 91 n., 180

President, Bank of Montreal, 97
C.P.R., 81 n., 82 n., 101, 102, 180, 276
Grand Trunk, 95 n., 113
Northern Pacific, 80 n.
United States, 5 n., 64 n., 194

Presque Isle, 60 n., 143

Preston, 157

Prince Albert, 141
Arthur's Landing, 88 n., 92 n., 107, 111
Edward Island, 27 n.
of Wales Fort, 23 n.
Rupert, 187
River, 22 n., 23 n.

Princeton, 16

Privy Council, 37 n., 45 n., 46 n., 263 n.

Proclamation, 29 n., 32 n., 62 n.

Proctor, 139
John P., 99 n.

Progressive party, 189, 294

Province, 32 n., 50, 50 n., 51, 58 n., 62 n., 66, 66 n., 71, 71 n., 76 n., 78 n., 84, 84 n., 86 n., 87 n., 158, 173, 174, 179, 180, 181, 187, 188, 190, 263, 265, 273 n., 286, 297

Provincial, 38 n., 87 n., 250, 273

Public Works, 90 n.
Department of, 83 n.
Minister of, 45 n., 48

Puget Sound, 206

Purcell, Ryan, Goodwin and Smith, 88 n., 89 n.


Qu'Appelle, 260
Forks of, 103
Long Lake and Saskatchewan Railroad and Steamship Co., 141, 254
River, 25 n.

[358]Quebec, 2 n., 33 n., 55, 59 n., 60 n., 61, 62, 62 n., 66 n., 68, 68 n., 70 n., 92 n., 97, 112, 113, 122, 123, 124, 134, 135, 139, 182, 187


Quebec Act, 62 n.
Central Ry., 157
Conference, 71 n.
Montreal, Ottawa and Occidental Ry., 107, 112
population, 57 n., 74, 93 n.
Province of Quebec, 58 n., 62 n., 72 n., 151, 276, 281 n., 287

Quesnel River, 15

Quinte, Bay of, 63 n.


Radisson, 58 n.

Rae, Dr., 43 n.

Rail, 183, 184, 223

Rails, 91 n., 99, 102, 107, 108, 124, 130, 150, 254, 272, 273

Railroad, 33 n., 34, 34 n., 35 n., 38 n., 40 n., 42 n., 51 n., 67 n., 68, 69, 69 n., 70, 70 n., 72, 76, 76 n., 77, 79 n., 81 n., 84, 88, 88 n., 89 n., 91 n., 92 n., 93, 93 n., 96, 96 n., 97, 98, 99, 100, 102, 107, 108, 109, 111, 113, 113 n., 114, 117, 125, 128, 129, 129 n., 131, 131 n., 136, 137, 138, 140, 141, 145, 146, 147, 150, 151, 154, 155, 158, 161, 164, 166, 170, 172, 176, 177, 179, 180, 181, 183, 184, 186, 187, 191, 192 n., 194, 195, 197, 205, 206, 208, 211, 214, 216, 217, 218, 219, 220, 221, 223, 225, 226, 228, 229, 234, 236, 239, 239 n., 243, 244, 246, 248, 252, 255, 256, 270, 271, 272, 273, 274, 276, 278, 279, 282, 286, 292, 294

Railway, 17 n., 18 n., 21, 40, 40 n., 41 n., 43 n., 75 n., 77 n., 78, 78 n., 80 n., 83 n., 84 n., 85 n., 86 n., 88 n., 90 n., 94 n., 95 n., 98, 99, 100, 101, 105, 111, 112, 119, 120, 124, 127, 135, 139, 141, 158, 173, 173 n., 174, 180 n., 183, 188, 189, 189 n., 190, 190 n., 195, 200, 205, 251, 252, 257, 258, 259, 260
Commission, 184, 185
Rates Commission, 183
Taxation Act, 239 n.

Railways:
Alberta Central, 154
Alberta Railway and Coal Co., 139
Alberta Railway and Irrigation Co., 154
Atlantic and Northwest, 122, 122 n., 135, 137, 142
Berlin, Waterloo, Wellesley and Lake Huron, 157
Boston, Lowell, 135
British Columbia Southern, 139, 254
Calgary and Edmonton, 141, 152
Campbellford, Lake Ontario and Western, 156
Canada Central, 88, 88 n., 92 n., 97, 100, 101, 102, 106, 112, 112 n., 131, 134, 173 n., 273, 281 n.
Canada Pacific, 20 n., 77 n., 78, 78 n., 112, 136, 136 n.
Canada Southern, 122, 143
Canadian National, 188, 292
Canadian Northern, 187, 188, 292
Canadian Pacific, see Canadian Pacific Railway
Canadian Pacific Railway and Navigation Co., 77 n.
Cap de la Madeleine, 157
Central Canada, 154
Central Vermont, 79 n.
Chicago, Milwaukee and St. Paul, 113, 194
Columbia and Kootenay, 139, 255
Columbia and Western, 140, 142 n.
Credit Valley, 108, 120, 122
Dominion Atlantic, 156, 158
Duluth, South Shore and Atlantic, 137, 249, 280
Edmonton, Dunvegan and British Columbia, 154
Emerson and Northwestern, 174, 179
Emerson and Turtle Mountain, 174
Esquimault and Nanaimo, 154
Georgian Bay and Seaboard, 155
Glengarry and Stormont, 158
Grand Trunk, see Grand Trunk Railroad
Great Northern, 139, 206, 207
Great North West Central, 151, 152, 254, 255
Great Western, 69 n., 70
Guelph and Goderich, 157
Halifax and Quebec, 70 n.
Intercolonial, 41, 70 n., 71 n., 72, 73, 290, 292
International, 135
Interprovincial and James Bay, 158, 255
Jacques Cartier Union, 123
Kaslo and Slocan, 155
Kettle Valley, 155
Kingston and Pembroke, 156
[359]Kootenay and Arrowhead, 142 n.
Kootenay Central, 154
Lake Champlain and St. Lawrence Junction, 135 n.
Lake Erie and Northern, 157
Lake Temiskaming Colonization, 142
Laurentian, 274
Lindsay, Bobcaygeon and Pontypool, 157
London Junction, 122
Manitoba Central, 179
Manitoba and Northwestern, 152, 154
Manitoba and South West Colonization, 108, 140, 253, 255, 261, 264, 274
Michigan Central, 122, 143
Minneapolis, St. Paul and Sault Ste. Marie, 137, 139, 155, 206, 249, 280
Montreal and Ottawa, 137, 142
Montreal, Ottawa and Western, 95 n.
Montreal and Western, 142
Nakusp and Slocan, 141
New Brunswick Coal and Railway Co., 158
New Brunswick, 136 n., 142
New Brunswick Southern, 158
New York Central, 143
North Shore, 122, 124
Northern Colonization, 78 n., 79 n., 95 n., 157
Northern Pacific, 19 n., 79 n., 93 n., 102, 181, 183, 185, 207, 278
Northern, 69 n.
Ontario and Pacific Junction, 92 n., 173 n.
Ontario and Quebec, 114, 122, 134, 271
Orford Mountain, 157
Ottawa Northern and Western, 156
Pacific, 19 n., 33 n., 79, 79 n., 80 n., 81 n., 82 n.
Qu'Appelle, Long Lake and Saskatchewan, 141, 259
Quebec Central, 157
Quebec, Montreal, Ottawa and Occidental, 108, 112
Red River Valley, 179
Richelieu, Drummond and Arthabaska Counties, 135 n.
St. Andrews and Quebec, 70 n.
St. Lawrence and Ottawa, 274
St. Marys and Western, 157
St. Maurice Valley, 157
St. Paul, Minneapolis and Manitoba, 93 n., 97, 98 n., 99
St. Paul and Pacific, 89 n., 93 n.
St. Stephen and Milltown, 143
Shuswap and Okanagan, 141, 259
South Ontario Pacific, 157
Southampton, 158
Southeastern, 135, 274
Southern Pacific, 194
Tilsonburg, Lake Erie and Pacific, 156
Tobique Valley, 143
Toronto, Grey and Bruce, 122
Toronto, Hamilton and Buffalo, 143
Union Pacific, 102, 272
Vancouver and Lulu Island, 154
Wabash, 195
Walkerton and Lucknow, 157
Waterloo and Magog, 135
Winnipeg Southeastern, 174, 175
Winnipeg and Southern, 179
Wisconsin Central, 155

Rainy Lake, 23 n., 26, 34 n.
River, 87 n.

Raley, 154

Ramsey, Alexander, 105

Rapide Plat Canal, 67 n.

Rapids, Lachine, 55 n., 56 n.

Rat Portage, 87 n., 114, 124
River, 34 n.

Rates, 86 n., 100, 101, 112, 123, 130, 136 n., 173, 173 n., 175, 176, 177, 178, 179, 180, 183, 184, 185, 186, 186 n., 187, 188, 189, 190, 191, 191 n., 192 n., 193, 193 n., 194, 195, 196, 198, 199, 205, 206, 207, 208, 212, 215, 216, 219, 220, 221, 226, 227, 229, 230, 239 n., 258, 269, 278, 293, 293 n., 294
freight, 172, 183, 188, 191, 191 n., 205, 209, 210, 216, 229, 262
passenger, 205, 209, 216, 221

Razilly, 57 n.

Rebellion of 1837, 66
of 1885, 128, 144

Receipts, total, 265, 266, 267, 267 n., 268, 269, 270, 285, 286

Receiver-general, 76 n.

Reciprocity, 189 n., 290
treaty, 68, 72

Red Deer, 154
Fox Creek, 106
[360]River, 17 n., 18 n., 23 n., 27, 27 n., 28, 32, 32 n., 35, 35 n., 36, 36 n., 37, 38 n., 39, 39 n., 40 n., 42 n., 43, 45, 45 n., 47 n., 51, 52, 77 n., 87, 87 n., 88, 88 n., 89, 89 n., 93 n., 98 n., 105, 114, 140, 180

Red River expedition, 86 n.
settlement, 17 n., 31 n., 32, 34, 35, 46 n., 51, 52, 67 n., 68 n., 74, 77, 93 n., 291
settlers, 45, 50
Transportation Line, 93 n.
Valley Co., 179

Reford, 154

Regina, 106, 141, 152, 155, 177, 177 n., 178 n., 185, 259

Regulation, 10, 11, 29, 61, 83 n., 172, 173, 185, 186, 209, 225, 230, 239 n., 293 n.

Reid, R. G., 275

Reinach, Baron J. de, 113, 114
& Co., 98, 103

Renfrew, 99 n., 156

Representatives, House of, 19

Reserves, 270, 282, 283, 285, 286

Resolution, 20, 29, 30 n., 45 n., 46 n., 47 n., 71 n., 75 n., 87 n., 96 n., 179, 194, 205

Reston, 152

Retallack, 155

Revelstoke, 142, 256, 258

Revenue, 33 n., 43 n., 95 n., 116, 126, 172, 193, 229, 265, 271, 273

Revolution, American, 61, 71 n.

Rice, R. D., 80 n., 81 n.

Richmond, 72 n.

Richelieu, Drummond and Arthabaska Counties Ry., 135 n.
Ottawa Navigation Co., 124
River, 55 n.

Rideau Canal, 65 n.

Riel, Louis, 49, 128 n.

Rigaud, 142

Right of Way, 256, 257, 259, 261

Riverton, 153

Riviere a la Biche, 24 n.
du Loup, 69 n., 70, 70 n.
du Paskoya, 24 n.

Road, 11, 15, 17, 17 n., 20, 20 n., 21, 32 n., 43, 43 n., 45, 50, 51, 51 n., 65 n., 71 n.
wagon, 20, 38 n., 51 n., 70 n., 84 n., 85 n., 86 n.

Roberval, M. de, 53 n., 54

Robson, 140

Roche, Marquis de la, 54 n.

Rockefeller, W., 109

Rocky Mountain House, 25 n.
Summit, 111, 121 n., 250 n.

Rocky Mountains, 2, 3, 5, 5 n., 6 n., 9, 14 n., 17 n., 21, 23, 24 n., 26 n., 33 n., 34 n., 38 n., 40 n., 44 n., 66 n., 67 n., 70 n., 77 n., 78 n., 83, 100, 103, 106, 110, 111, 121, 134, 272

Rolling stock, 77 n., 114, 182

Romford Junction, 156

Rose, C. D., 113, 114, 274
Sir John, 95 n., 127

Ross, A. W., 99 n.
J. K. L., 275
Lake, 89 n.

Rossland, 142 n.

Rosser, General, 113

Rouen, 54 n.

Route, 11 n., 14, 15, 15 n., 16, 17, 19, 21, 24, 25, 28, 32, 34 n., 35 n., 38 n., 39 n., 43 n., 45 n., 48 n., 51, 52 n., 53, 62 n., 66 n., 71, 73, 85 n., 86, 87 n., 92 n., 93, 102, 104, 107, 112, 114, 122, 135, 138, 139, 155, 178, 183, 193, 194, 195, 208, 244, 250 n., 274

Rudyard, 153

Rupert, Prince, 22 n.

Rupert's Land, 12 n., 46 n., 48 n.
Act, 46, 46 n.

Russell, 152

Russia, 6, 6 n., 7 n., 19

Russian American Fur Co., 6, 7, 13 n.

Ruthenia, the, 170

Ryan, J., 89 n.


Sable Island, 54 n.

St. Andrews, 70 n., 72 n., 143
and Quebec Railroad Co., 70 n.

St. Anne lock, 67 n.

St. Boniface, 89 n., 93 n., 130, 182

St. Catherines, 99 n.

St. Crois Island, 54 n.

St. Dennis, Louis, 30 n.

St. Eustace, 112 n.

St. Felix, 123 n., 157

St. Gabriel, 157

St. Germain en laye, treaty of, 55 n.

St. Guillaume, 135 n.

St. Ignace, 58 n.

St. Jerome, 112, 112 n., 142

St. John, 53, 59 n., 70 n., 72 n., 135, 136, 156, 157, 158, 274
River, 57 n.

St. Joseph's, 58 n.

St. Lawrence drainage basin, 52, 59, 73, 288
Gulf of, 55 n.
and Ottawa Ry., 274
River, 2, 23, 53, 53 n., 54, 54 n., 55, 55 n., 56, 57, 59, 63 n., 64, 64 n., 65, 65 n., 66, 66 n., 71 n., 73, 78 n., 112, 122, 122 n., 135, 157, 158, 171, 287, 289, 290
Valley, 55 n., 62, 63

St. Lin, 112 n.
[361]Junction, 122 n.

St. Malo, 54 n.

St. Martin's Junction, 123, 158

St. Mary, Falls of, 34 n.
River, 78 n., 81 n.

St. Marys, 157, 158
and Western Ry., 157

St. Maurice Valley Ry., 157

St. Paul, 18, 18 n., 19, 32, 42 n., 93 n., 113, 139, 152, 192, 194, 206, 208
and Pacific Ry., 89 n., 93 n.
Minneapolis and Manitoba Rr. Co., 93 n., 97, 98 n., 99, 102, 114, 178, 206, 277, 292

St. Polycarpe's Junction, 158

St. Sabine, 158

St. Stephen, 143, 158
and Milltown Ry., 143

St. Therese, 112 n.

St. Thomas, 122, 134, 137

St. Vincent, 176 n., 177 n., 178, 178 n.

St. Vincent de Paul, 123

Saguenay River, 53

Salabery, Col. de, 50

Saleesh House, 6 n.

Salisbury, 136 n.

Salmon Falls, 58 n.

Sandon, 142

San Francisco, 14 n., 17, 151, 191, 192

Sarnia, 69 n., 84 n.

Saskatchewan Legislature, 239 n.
plains, 20 n., 77 n.
Rivers, 2, 23 n., 24 n., 25 n., 26 n., 33 n., 34 n., 36 n., 87 n., 92 n., 109, 111, 205
territory, 19, 35 n., 37, 38 n., 39, 44 n.
Valley, 17 n., 18 n., 39 n.

Saskatoon, 252, 254

Saugeen Junction, 157

Sault au Recollet, 123

Ste. Marie, 58 n., 69 n., 80 n., 100, 102, 106, 137, 194

Ste. Marie Canal, 25 n.

Savonas Ferry, 88 n.

Sayre, Wm., 30 n.

Scarth, W. B., 104, 105, 259

Schreiber, 120

Schwieger, 43 n.

Scotch directors, 105

Scott, Thos. A., 80 n.
Hon. W. L., 110, 114

Seattle, 138, 206, 207

Secretary, C.P.R., 102, 107
Colonial, 35, 46 n.

Selkirk, 19, 44 n., 89 n., 92 n., 98, 99, 102, 103, 105, 111, 153, 257 n.

Selkirk, Earl of, 26 n., 27, 28 n., 29 n., 32 n.
Range, 110
West, 113, 140, 153

Senate, 47 n., 50 n., 89 n., 92 n., 194
Committee of, 92 n.

Service, 247
ocean, 169, 170
passenger, 231, 233
postal, 39, 39 n.
steamship, 237, 238
train, 207

Settlement, 2, 3, 4, 5, 6, 8, 9, 10, 11, 11 n., 12, 12 n., 13, 14, 16, 21, 22, 23 n., 25, 26, 27, 27 n., 28, 29 n., 30, 31, 31 n., 33, 33 n., 35, 35 n., 36 n., 39 n., 40, 42, 43 n., 44, 44 n., 47, 47 n. 50, 51, 53, 54, 54 n., 55, 56, 57, 58, 59, 61, 62, 62 n., 63, 63 n., 64, 65 n., 66, 68 n., 71 n., 72, 73, 84, 86, 92 n., 98, 105, 107, 129, 130, 132, 175, 250, 252, 253, 253 n., 255, 255 n., 264, 288, 289, 291, 292

Settlers, 8 n., 12 n., 13, 13 n., 17 n., 27 n., 28 n., 29, 30, 31 n., 36, 40 n., 42 n., 43, 51 n., 57 n., 61 n., 63 n., 86 n., 87, 92 n., 102, 105, 130, 131, 147, 176, 184, 253 n., 258, 261, 263 n., 289, 290
Bill of rights, 50 n.

Seven Oaks, 27 n.

Seymour, 16
Governor, 20, 20 n.

Shanghai, 138, 139

Shareholders, 18 n., 44 n., 48 n., 80 n., 97 n., 109, 180, 276, 277, 277 n., 278, 284

Shaughnessy, T. G., 113, 114, 184, 276
Hon. W. J., 275

Shebandowan, 86 n.

Shedden Cartage Co., 124

Shediac, 72 n.

Sheep, 9 n., 28 n., 31 n.

Shepard, 152

Sherbrooke, 135, 157

Shipping, 11, 16

Ships, 10 n., 13, 26 n.

Shirley, 60 n.

Shops, 180
car, 134, 167
division, 180
locomotive, 182
repair, 134

Shuswap Lake, 16
and Okanagan Ry., 141, 259

[362]Sicamous, 141, 259

Sifton, Glass and Fleming, 88 n.
and Ward, 89 n.

Similkameen River, 15, 16, 16 n.

Simpson, George, 31 n.

Skinner, Thos., 275

Sleeping and dining cars, 203, 203 n.

Slocan, 142
Junction, 142

Smelter Junction, 142 n.

Smith, Chas. M., 79 n., 80 n., 81 n.
Hon. D. A., 49, 97, 97 n., 102 n., 105, 113, 114, 124, 127, 259, 275, 276
Falls 122 n., 134, 137, 208
J. Gregory, 80 n., 81 n.

Smoking cars, 133 n., 201

Smuggler's Point, 106

Smyth, Sir John, 67 n.

Snowflake, 153

Société Générale, 98

Solicitor, C.P.R., 275
General, 37 n.

"Soo" line, 207, 208

Sorel, 58 n., 135 n.
River, 57 n., 58 n.

Souris, 140, 141, 253
branch, 105, 141, 264, 281 n.
coal fields, 102, 140, 254
River, 25 n.
River Fort 25 n.

South Branch House, 25 n., 36 n.
Ontario Pacific Ry., 157
Saskatchewan Creek, 106
Sea, 22 n.

Southampton Junction, 158
Railway, 158

South-Eastern Railway, 135, 274

Southern Pacific Railroad, 194

Spain, 4, 4 n., 5 n., 53 n.

Spaulding, H. F., 110

Spokane, 154

Stamp Act, 61 n.

Stanbridge, 135 n.

State, Secretary of, 14

Station, 77 n., 112, 177, 204, 257, 258

Steamer, 14, 18 n., 79 n., 93 n., 102, 112, 138, 169, 182, 191, 206, 237, 281 n.

Steamship, 139, 141, 150, 169, 192 n., 204, 237, 238, 249, 281 n., 286
earnings, 223, 224, 268
line, 79, 170

Stephen, George, 89 n., 96 n., 97, 102, 102 n., 113, 275, 276

Stephenson, P. S., 99 n.

Steveston, 154

Stewart, J. A., 110

Stickney, George B., 102, 113

Stikeen River, 13 n.

Stirling, 153, 154

Stock, 80 n., 81 n., 97 n., 101, 102, 103, 108, 109, 110, 115, 116, 117, 125, 126, 187, 191 n., 239 n., 270, 273, 277 n., 278, 279, 280, 283, 286
capital, 101, 119, 239 n., 276, 278, 284
common 280, 282, 284, 284 n., 285, 285 n., 286, 293
consolidated debenture 281, 281 n., 282, 284, 285
preferred 101, 280, 280 n., 281, 285, 285 n., 286
price of 284 n.

Stonewall, 103, 153

Stoughton, 152

Straits of Belle Isle, 53

Strathcona, 141, 153
Lord, 275

Streetsville Junction, 122 n.

Stuart, David, 9 n.
John, 99 n.
Lake, 6 n., 15 n.
River, 6 n.

Subsidy, 41 n., 106, 108, 126, 184, 187, 190, 270, 272, 291
land, 104
money, 19 n., 75 n., 88 n., 98, 99, 118, 120, 139
postal, 18 n., 115, 116, 126

Sudbury, 142, 156
Junction, 122

Suez, 138, 193

Suffield, 154

Summit region, 51 n.

Sunshine Creek, 89 n.

Superintendent, C.P.R., 102, 113
Indian affairs, 256

Supplies, 7, 7 n., 8, 9, 11, 11 n., 13, 26, 27, 39 n., 51

Surplus, 249, 270, 282, 282 n., 283, 285, 286, 293, 293 n.

Surveys, 11, 11 n., 47 n., 48, 62 n., 70 n., 77 n., 84 n., 85 n., 86 n., 87 n., 91 n., 92 n., 98, 103, 283 n., 261

Suspension Bridge, 69 n.

Swan River district, 35 n.

Swift Current, 152, 153, 178 n.
Creek, 106

Swiss colonists, 27 n.
regiment, 28 n.

Sydney, 34 n.


Taché, Bishop, 50

Tacoma, 207

Tadousac, 53, 54 n.

[363]Tako River, 13 n.

Tallow Co., 28 n.

Tamiscaming Lake, 33 n.

Tappen siding, 259

Tariff, 189, 192 n., 289, 293, 293 n., 294
of prices, 28 n.
rate, 136 n., 175, 176, 177, 178, 184, 205, 206

Tartar, 150

Tax, 136 n., 239, 239 n., 263 n., 286, 293, 293 n., 294
land, 46 n.
exemption, 47 n.

Taxation, 75, 83, 85 n., 87 n., 99, 181, 239 n., 263 n., 291, 294

Teeswater, 122 n.

Telegraph, 40 n., 42 n., 43, 85 n., 92 n., 151, 223, 249
American Telegraph Co., 49
Atlantic and Pacific Transit and Telegraph Co., 42 n.
line, 39, 41, 41 n., 83 n., 84 n., 85 n., 86 n., 88, 101, 133
Montreal Telegraph Co., 42 n.
system, 49, 243
United States Telegraph Companies, 42 n.

Temiskaming (Tamiscaming), 142

Temperature, 2, 3

Terminus, 79 n., 83, 87 n., 88 n., 89 n., 91 n., 100, 119, 134, 150, 151, 155, 170, 256

Territory, 2, 10, 12 n., 13, 15, 19, 19 n., 24, 26 n., 27 n., 28, 28 n., 32 n., 34 n., 38, 38 n., 39, 39 n., 41 n., 43 n., 44 n., 45, 45 n., 46 n., 47 n., 48, 49 n., 53, 58, 61, 62, 63, 63 n., 71 n., 72 n., 73, 85 n., 91 n., 97 n., 103, 122, 129, 130 n., 138, 152, 153, 173, 180, 181, 184, 186, 187, 188, 189 n., 190, 191, 191 n., 192, 196, 199, 203, 229, 237, 244, 247, 251, 252, 255, 263 n., 274, 289
British, 11, 17, 36 n., 68 n.

Tête Jaune Cache, 19, 87 n.

Teulon, 153

Thames River, 65 n.

Thibault, 49

Thorn, Judge, 29 n.

Thomas, Samuel, 275

Thompson, David, 6 n.
River, 9, 14, 18

Thorne, Robert, 53 n.
S., 104

Three Forks, 154
Rivers, 56, 57 n., 157

Thunder Bay, 78 n., 86 n., 102, 113 n., 124, 177, 256 n., 272, 273

Ticonderoga, 60 n.

Ties, 91 n., 107, 124, 263

Tilsonburg, Lake Erie and Pacific Ry., 156

Times, the, 95 n.

Tobique Valley Railroad, 143

Tod, J. Kennedy, 104

Tolls, 101, 172, 184, 189, 190 n.

Tool cars, 133, 133 n., 182

Torbrook, 158

Toronto, 2 n., 25 n., 38 n., 42 n., 67 n., 69 n., 78, 78 n., 79 n., 82, 99, 99 n., 100, 134, 137, 138, 150, 156, 158, 173, 187, 208, 275, 277, 291
Board of Trade, 36, 69 n., 100
Grey and Bruce Ry., 122
Hamilton and Buffalo Ry., 143

Touchwood Hills, 103

Tourist traffic, 203, 204, 217, 218, 224, 236, 258

Towne, A. N., 194

Track, 107, 111, 128, 184
double, 155, 156, 171
laying, 89 n.

Trade, 16, 22, 22 n., 24 n., 26, 26 n., 28 n., 30 n., 31 n., 32, 35, 36, 38 n., 40 n., 51, 52, 52 n., 53, 54, 55 n., 56, 57 n., 58, 59, 61, 62 n., 64, 65, 67, 67 n., 68, 69 n., 71 n., 72, 92 n., 93, 93 n., 94 n., 95 n., 100, 122, 181, 186, 189 n., 206, 258, 264, 288, 290, 291
Board of, 36, 69 n., 100, 176, 180

Traders, 5, 54 n., 56, 93 n.
English, 24, 61
fur, 8, 17, 21, 29 n., 53, 61, 61 n.

[364]Traffic, 25 n., 26, 41 n., 67 n., 68, 69 n., 70, 70 n., 72, 72 n., 76, 77, 78, 78 n., 79, 79 n., 80, 86 n., 93 n., 95 n., 97, 99, 100, 101, 112, 114, 122, 123, 128, 129, 130, 131, 132, 132 n., 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 146, 147, 149, 150, 151, 153, 154, 155, 156, 158, 160, 165, 167, 168, 169, 170, 172, 173, 173 n., 174, 175, 176, 177, 178, 180, 181, 184, 185, 186, 187, 189, 191, 191 n., 192, 192 n., 193, 194, 195, 196, 197, 199, 200, 202, 203, 204, 205, 206, 207, 208, 209, 211, 212, 213, 214, 215, 216, 217, 220, 221, 223, 226, 228, 229, 230, 232, 233, 234, 235, 236, 237, 239, 240, 241, 242, 243, 244, 245, 246, 247, 253
density, 214, 214 n., 215
expense, 235, 235 n., 239
freight, 18 n., 101, 112, 129, 134, 169, 171, 197, 212, 226, 268, 269, 286
liquor, 57
passenger, 18 n., 101, 112, 129, 169, 197, 216, 220, 221, 224, 226, 231, 235, 247, 268
through, 111, 112, 168, 213, 214, 216, 217, 218, 219, 220, 221, 222, 224, 228, 229, 235, 236, 237, 266, 270, 272, 277, 279, 282, 283, 290, 291, 292, 293
tourist, 203, 204, 217, 218, 224, 236

Trail, 142 n.

Train, 112, 168, 183, 207
freight mileage, 132, 132 n., 133, 148, 148 n., 149, 166, 166 n., 167, 168, 199, 200, 228, 233, 234, 235, 238, 239
load, 148, 148 n., 149, 165, 165 n., 233
mile earnings, 226, 226 n., 227, 227 n., 228, 228 n., 229, 229 n., 230
mileage, 133, 147, 149, 150, 165, 166, 168, 200, 227, 228, 229, 230, 232, 234, 235, 240
mixed, 166
mixed mileage, 132 n., 166, 166 n., 228, 230
passenger train mileage, 199, 199 n., 200, 200 n., 204, 229, 230, 231, 233, 234, 235, 239
total mileage, 132, 132 n., 133, 148, 148 n., 165, 165 n., 227, 232, 233, 234, 235, 238

Transcontinental, 208
Association, 191, 206
bridge, 72, 74, 128
road, 20, 20 n., 34 n., 96, 187
traffic, 173, 181, 186, 191, 192, 193, 195, 196, 205, 206, 217
Trans-Missouri rate case, 207

Treasurer, 102

"Trent Affair," 71 n.

Trestles, 91 n., 182

Trieste, 170

Trout Lake, 142 n.

Troy Junction, 157

Truro, 72 n., 156

Tupper, Sir Charles, 96 n., 126, 127, 179

Turnbull, 114

Turtle Mountain branch, 107

Twightwies, 59 n.

Tyrolia, the, 170


Union, 20, 20n., 21, 45 n., 52, 67 n., 72, 74, 75 n., 84, 84 n., 85 n., 86, 96
Act of, 66, 75, 75 n., 76 n., 290
Pacific Railroad, 102, 272
states of, 276

United Empire Loyalists, 63, 63 n., 71 n., 289
Kingdom, 94 n., 95 n., 276, 276 n., 277

United States, 5, 5 n., 6, 6 n., 7, 8, 21, 24, 32, 32 n., 33, 35, 35 n., 48 n., 52, 63, 72, 76 n., 78, 78 n., 80 n., 85 n., 86 n., 89, 93, 93 n., 94 n., 95 n., 98 n., 130, 140, 146, 151, 163, 174, 191, 192, 192 n., 197, 199, 205, 215, 276, 276 n., 277, 288, 290, 291, 293
Congress, 5 n., 8, 8 n., 32 n.
Government, 19 n.
House of Representatives, 19
imports and exports, 16 n., 29 n., 52 n., 65 n., 67 n., 72 n.
Secret Service, 8 n.
Telegraph Companies, 42 n.

Upper Arrow Lake, 33 n., 142
Slave Lake, 25 n.
Swift and Folger, 89 n.

Utrecht, treaty of, 23, 60 n.


Valeport, 152

Valleyfield Junction, 157

Vancouver, 3 n., 128, 138, 151, 153, 154, 155, 182, 183, 187, 191, 193, 204, 207, 256, 262
and Lulu Island Ry., 154
Eastbound, 189
Island, 4, 9, 11, 12, 12 n., 14, 14 n., 20, 41 n., 84 n., 154, 169, 265
North Vancouver, 154

Vanguard, 153

Van Horne, W. C, 113, 114, 128 n., 151, 189 n., 275, 276

Varcoe, 151

Vavasour, Lieut., 10 n.

Versailles, treaty of, 62

Vessels, 3 n., 13 n., 22, 101, 139, 237

Vice-President, C.P.R., 102, 113, 114, 184, 276
Northern Pacific, 80 n.

Victoria, 10 n., 14 n., 17, 18, 20, 21, 84 n., 103, 154, 204
Rolling Stock and Realty Co., 285

Ville Marie, 158, 255

Virden, 152, 259

[365]Voyage, 4 n., 5, 21, 22, 22 n., 52, 53, 54 n.


Wabash Railroad, 195

Waddington, Alfred, 18, 18 n., 20, 20 n., 77 n., 79 n.

Waldo, 154

Walkem, 85 n.

Walker, John, 99 n.

Walkerton, 157
and Lucknow Ry., 157

Waltham, 156

War, American Civil, 71 n.
of 1812, 6, 71 n., 73

Warre, Lieut., 10 n.

Warrender, Sir George, 105

Washington, 19 n.
Major, 60 n.
state of, 193
treaty of, 10 n.

Waskada, 141

Waterloo, 135, 157
and Magog Ry., 135

Watkin, E. W., 40, 41 n., 42 n., 43, 44 n., 71 n.

Watt Junction, 142, 143

Way, 86 n.
right of, 256, 257, 259, 261

Welland Canal, 65 n., 67 n.

Wellington, 154

West India Co., 58
Lynne, 179
MacLeod, 141
Robson, 140
Selkirk, 113, 140, 153

Western Rates case, 188
Junction, 122 n.
Union Telegraph Co., 19

Westminster, 265

Weston, 158

Wetaskiwin, 152, 153

Weyburn, 152, 153

Wheat, 7, 7 n., 11 n., 16 n., 31 n., 64 n., 65 n., 67 n., 68 n., 130, 144, 145, 160, 162, 178, 179, 292

White, Hon. Thos., 174, 179
Mouth River, 78 n.

Whitehead, Joseph, 89 n.

Whitewater, 154

Whitney, 32 n., 69 n.

Whittier Junction, 155

Wild Horse Creek, 15, 16

Wilkie, 153

Wilkinson, S., 80 n., 81 n.

Willson, Henry Beckles, 48 n.

Wilmot, 158

Windermere Lake, 6 n.

Windowa, W., 80 n., 81 n.

Windsor, 69 n., 72 n., 137, 156, 158
Mills, 157
Street, Montreal, 122 n.

Windy Gates, 153

Wingham, 142

Winnipeg, 3 n., 67 n., 78 n., 92 n., 93, 97, 98, 99 n., 103, 105, 106, 111, 113, 122, 130, 134, 137, 140, 141, 142, 152, 153, 155, 174, 176 n., 177, 177 n., 178, 178 n., 179, 180, 181, 183, 185, 186, 187, 197, 204, 206, 208, 220, 247 n., 257, 258, 277, 292
and Pembina Mountain branch, 103, 105, 106
and Southern Ry., 179
Beach, 153
Board of Trade, 176, 181
population, 93 n.
River, 23, 23 n., 78 n.
Southeastern Ry., 174, 175

Winslow, Lanier & Co., 109

Wisconsin Central Ry., 155

Wolseley, 152

Wood, A. T., 99 n.
Bay, 153

Woodstock, 137, 143

Wyeth, Nathaniel, 8, 8 n.

Wylie Milling Co., 191 n.


X. Y. Company, 25 n.


Yarmouth, 55 n., 99 n., 158

Yellowhead Pass, 18, 19, 20 n., 87 n., 99, 103, 105, 111, 250 n.

Yokohama, 139, 192 n.

Yonge St., Toronto, 25 n., 65 n.

Yorkton, 152


Zaneville, 156



FOOTNOTES:

[1]  Atlas of Canada, 1915, p. 22.

[2]
    Basin Area.
Atlantic 554,000 sq. miles
Hudson Bay 1,486,000        "      
Pacific 387,300        "      
Arctic 1,290,000        "      
————        "      
      Total 3,717,300        "      

Compiled from Canada Year-book, 1919, pp. 85-6.

[3]  Atlas of Canada, 1915, pp. 10, 12.

[4]
1888-1907
Normal Annual
Degrees of Hours of Total
Temp. F. Sunshine Rainfall Snowfall Precipitation
Quebec 38·7 1,712 27·17 132·9 40·46
Montreal 42·3 1,805 29·37 122·7 41·64
Kingston 43·7 1,989 24·01 74·8 31·49
Toronto 45·5 2,048 25·28 61·0 31·38
Port Arthur 35·7 19·01 44·5 23·46

Compiled from the Canada Year-book, 1919, pp. 166-7.

[5]
1888-1907
Normal Annual
Degrees of Hours of Total
Temp. F. Sunshine Rainfall Snowfall Precipitation
Winnipeg 34·9 2,178 15·62 51·9 20·81
Battleford 34·4 2,101 11·05 27·4 13·79
Edmonton 36·7 14·18 40·2 18·20

Ibid.

[6]
Vancouver 49·1 1,815 57·88 23·2 60·20

Ibid.

[7]  An act of 18 Geo. II, offering a reward of £20,000 to the person or persons being subjects of His Majesty who should discover a north-west passage through Hudson Strait to the western and northern ocean of America was amended in 16 Geo. III, chap. 6, offering the reward for the discovery of "any northern passage" for vessels by sea between the Atlantic and Pacific Ocean.

[8]  Cook, James, A Voyage to the Pacific Ocean (1788 edition), vol. II, p. 229 ff.

[9]  "One of our sailors disposed of his stock alone for eight hundred dollars...and a few of the best skins...produced a hundred and twenty dollars each....The total amount of the value...obtained for the furs of both of our vessels...was not less than two thousand pounds sterling. The benefits that might accrue from a voyage to that part of the American coast where we obtained them, undertaken with commercial views, will certainly appear of sufficient importance to claim the public attention." Detailed instructions for such proposed ventures accompanied this suggestion. Cook, James, op. cit., vol. IV, p. 245 ff.

[10]  An account of earlier voyages is important in an attempt to appraise the contributions of Captain Cook. See Greenhow, Robert, Memoir, Historical and Political, on the North-West Coast of North America, pp. 22-75.

[11]  Some conception of the profitableness may be obtained from the following: Captain Hanna's voyage, 1785-6, brought over £20,000. Dixon, G., A Voyage Round the World, but More Particularly to the North-West Coast of America, performed in 1785, 1786, 1787 and 1788, pp. 315-16. Captain Portlock and Dixon representing the King George's Sound Company netted nearly £50,000 (ibid., p. 303).

[12]  Captain Hanna sailed from China (ibid., p. xvii.). Captains Lorie and Guise were fitted out in India in 1786 (ibid., p. 317). Captain Berkley was the first to sail from England in the same year (ibid., p. 289).

[13]  Captain Kendrick and Captain Gray representing the United States sailed from Boston, Sept. 30, 1787, and Martinez from Spain reached Nootka in May, 1789. Greenhow, Robert, op. cit., p. 97.

</