SIR

We are in a position to secure the transfer of the charter of the Baie des Chaleurs Railway. If the following proposition is accepted by the Government, the Company, under the management of a new Board of Directors, will be prepared to go on with the works, com. plete the road and have it ready for traffic on or before the 31st December, 192, from Métapédia to Paspébiac, and then to Gaspé Bassin as soon as circumstances will permit.

“ For the carrying out of the present proposition, it is understood that the government shall pay the Company :

“1. The balance of the subsidy granted by the Statutes of Quebec, 45 Vict., ch, 23 and its amendments and 51-52 Vict., ch. 91, sec. 12, amounting to #260,000.00 to be payable as earned :

“#2, The subsidy of $50,000.00 granted by the statute of last session, 54 Vict., ch. 8S, sec, 1, subsection i, ta be payable as soon as the bridge over the Grand Cascapédia is finished and accepted by the Government ;

“3, To comply with the intention of the law, the subsidy of 800,000 acres of land, granted by the statutes of last session 54 Victoria., ch. 88, sec. 1, subsection j, shall be converted and the proceeds thereof shall be used by the government to pay the legitrmate and priviledged claims in accordance with the above cited act now existing against the road or against the Company, and if any

re

surplus should exist after the payment by the Government of all the claims now existing against the said road as aforesaid, such surplus, if any, shall go to the new Company on final settlement ;

“ The said debts and claims, after they shall have been approved and certified by M. A. M. Thom, representing the Company, shall be paid by a person appointed by the Government for that purpose, and failing that approbation and such certificate by M. Thom they shall be paid upon à judgment or arbitrator’s report in favor of any claimant, When the Commissioner appointed by the Government shall accept à claim, and M. Thom refuse his certificate and approbation, then and in each case the claimant has an absolute right to au arbitration and the decision of the arbitrators shall then state that the costs incurred shall be paid by the party against whom the decision is given. If M. Thom fails to appoint an arbitrator after tifteen days notice to do so, the Commissioner may then pay the claim and his action shall be binding on ail parties.

“As a guarantee that they will yo on with the works built conplete and run the road, the Company will deposit with the Government, bonds of the actual emission to the amount of five hundred thousand dollars (#500,000.00), which shall be exchanged for an equal sunount of bonds of another issue of same amountand value in case the Company would deem proper to cancel the present issue and replace it with others, or other satisfactory security in lieu thereof. it being distinctly understood that the Company wili be handed back the bonds or other security so deposited, on the completion and sufficient equipment of the road to Paspébine.

“The Board of Directors of the Company under the new organisation shall be composed as follows : James Cooper, of Montreal : J. P. Dawes, of Lachine, Alexander Ewing, of Montreal : James Williamson, of Montreal ; Angus M. Thom, of Montreal, and two other persons to be named by the Government :;

“On the sixty miles of the said road comprised between Meta. pédia and the big river Cascapédia, the Company will resume the works as soon as they can take possession of that section, and on the #0 miles ending at Paspébiac, surveys will be commenced as soon ns the present proposition is accepted and the works will prozeed with the utmost diligence,

The whole respectfully submitted, (Signedy, A. M, Tuom.”

En par le dit A. M, Thomet les personnes au nom desquelles il agit et qu'il représente obtenant le transfert de la charte de la compagnie du chemin de fer de la Baie des Chaleurs, et vû que les personnes meértionnées dans la proposition sus-citée ont les moyens voulus pour conduire l’entreprise à bonne fin, tel que requis par le

statut de la derniere session 54 Victoria, chapitre SS, section 1,

sous-section j, et qu'il est dans l'intérêt de la Province de l'accepter, l'honorable Commissaires des Travaux Publics recommande que la dite proposition soit acceptée comme suit savoir :