RETURN

To an ADDRESS of the HOUSE OF COMMONS, dated 17th April, 1872;-For a Return of all Correspondence between the Government and the Windsor and Annapolis Railway Company, including any memorials or protests addressed to the Government by the Company, and of any agreements made between the Government and the Company relative to the use by the Company of the Government Railway between Windsor and Halifax, or their enjoyment of running power over the said Road.

SIR, I have the honor to transmit herewith the Return in relation to the Windsor and Annapolis Railway Company, called for by an Address of the House of Commons, dated the 17th April, 1872, also herewith.

WINDSOR AND ANNAPOLIS RAILWAY.

"Running powers" on the Nova Scotia Railway.

1871, March 1st, from L. Carvell and G. Taylor 2,404.-Give the history of the Windsor and Annapolis Railway from its inception, and report on that Railway's application for running powers on the Nova Scotia Railway, and are of opinion the granting of that application would prove detrimental to the interest of the Nova Scotia Railway.

March 13th, from E. Parent, 2,417.-Transfers a memorial from Vernon Smith, submitting to Council his application for "running powers" on the Nova Scotia Railway, which he claims under the agreement entered into for the construction of the Windsor and Annapolis Railway.

March 14th, Report to Council, 1,352.--To reject the application made by the Windsor and Annapolis Company for "running powers" on the Nova Scotia Railway.

April 17th, from J. A. Mann, 2,571.-Urges the claim of the Windsor and Annapolis Railway Company to obtain "running powers" into Halifax, failing which, he submits the Government should exercise the power of purchase conferred upon them by the Local Act of 1866. Solicits an interview with the Government.

April 19th, from J. A. Mann, 1,425.-Stating what action will be taken on his letter of 17th instant.

April 19th, from J. A. Mann, 2,583.—Acknowledging, Letter of 19th instant. Gives his address.

June 23rd, to the Minister of Justice, 1,549.-Referring, with other documents, the application of Mr. Mann on behalf of Windsor and Annapolis Railway for "running powers," &c., &c., into Halifax.

July 4th, from H. Bernard, 2,849.-Acknowledging, No. 1549, and states that the Minister of Justice has already fully reported on the Windsor and Annapolis Railway application for "running powers" into Halifax. The report referred to is in No. 2,417.

July 26th, from J. A. Mann, 2,895.-Submits, on behalf of the Windsor and Annapolis Railway Company, a printed Memorial, setting forth the grounds upon which the Company base their claim to "ruuning powers" into Halifax, and proposing certain arrangements, &c.

July 27th, from J. A. Mann, 2,901.-Has received a telegram informing him that the appeal upon the question of the liability of the Railway in the Company's favor, the judges deciding unanimously that the railway is a public provincial work, and as such exempt from taxation.

July 28th, Report to Council, 1,602.-To make with the Windsor and Annapolis Railway the traffic arrangement, including "running powers" mentioned in their charter, and to have the matter adjusted by arbitration should the Minister and the Company be unable to settle it otherwise.

July 28th, Order in Council, 2,916.-Authorizing the Minister to make with the Windsor and Annapolis Railway Company the traffic arrangements, including "running powers" mentioned in the charter of Railway Company, and to appoint any officer or arbitrator for that purpose, should the Minister and the Company be unable to make their traffic arrangements without arbitration.

August 1st, from J. A. Mann, 2,920.-Requests that the decision arrived at by the Government in regard to the Windsor and Annapolis Railway Companies' claim, may be reconsidered, and proposes certain arrangements.

August 8th, to J. A. Mann, 1,617-Informing him that Mr. Fleming has been appointed to confer with him to make preliminary arrangements, with a view of carrying out the Order in Council of 28th ultimo, authorizing certain traffic arrangements and "running powers" with his Company.

August 11th, to Sandford Fleming, 1,623.-Appointing him to confer with the Windsor and Annapolis Railway Company or its authorized Agent, and instructing him to report to this Department what understanding and agreement can be arrived at with

the Company, with regard to the traffic arrangements and "running powers" authorized "by Order in Council of 28th ultimo. Papers are enclosed.

August 14th, from J. A. Mann, 2,946.-Acknowledging, Letter of 8th instant. Will be happy to meet Mr. Fleming to make preliminary arrangements as to "traffic " and "running powers," but regrets that the proposals made in the 7th paragraph of his letter of 1st instant are not to be entertained, and submits new propositions for the consideration of the Governments of the Dominion, Nova Scotia, and New Brunswick.

August 28th and 29th, from IIon. Sir F. Hincks, 2,965.-" Telegraph "-S. Fleming and Mann have agreed on "running powers" between Annapolis and Windsor Railway Company, to give Dominion one-third gross receipt. Would there be any chance of acting Minister recommending this at once, as Mann wants to leave? The promise of recommendation might answer without an Order in Council. It will be a pity to hang this up if it can be avoided.

August 30, to Hon. Sir Francis Hincks, 1,639.-" Telegraph "-Sir Geo. E. Cartier will recommend adoption of agreement as soon as Mr. Fleming's report is sent. Mr. Mann may leave.

Sept. 2, to J. A. Mann, 1,6471.—" Telegraph "—By Sir G. Cartier--That as soon as Mr. Fleming has reported, matter will be submitted to Council, and that Mr. Fleming has received instructions to confer with him.

September 4, to J. A. Mann, 1,648.-"Telegraph"-By Sir G. Cartier-You are under misapprehension. Fleming's report must be submitted for approval by Council. Will leave this morning for Ottawa. Since your last visit to Ottawa all due diligence made in your Railway matter. Government not responsible for any delay.

September 7, from J. A. Mann, 2,990.-" Telegraph "-It appears that no one here has authority to arrange "running powers" with me. Pray instruct Fleming.

September 8, to Sandford Fleming, 1654.-"Telegraph"-As suggested in your "telegram" to Sir Francis Hincks, Taylor is instructed to come here.

September 7, from J. 4. Mann to Sir George Cartier, 3,002.-"Telegram"-Your telegram received. Fleming posted his report last Tuesday. I venture to hope that you will not think it necessary to delay matter for the meeting of another Council.

September 10, from J. A. Mann, 3,011.-"Telegraph "I meet with no attention here, but plenty of frivolous objections. The line must be closed unless the Company get their rights.

September 13, to Sandford Fleming, 1,656.—" Telegraph "-Your report concerning agreement with Mr. Mann not yet received.

September 14, from S. Fleming, 3,026.-"Telegraph "-My report was prepared a week ago. Fear some bungling with mail; however, Taylor has copy. He should reach Ottawa to-morrow. I am now going over Intercolonial. If Sir George wishes, will go direct to Ottawa, leaving Shediac by steamer to-morrow. Answer to Amherst to-night.

September 14, from Hon. Jos. Howe, 3,028.-"Telegraph "-No concessions should be made to Mann which are not well considered. Mistakes may lead to great embarassment here (Halifax.)

September 15, from S. Fleming, 3,030.-Reports on his conference with Mr. Mann, and submits the arrangements proposed to be made with the Windsor and Annapolis Railway Company, as regards "running powers." The agreement B. was modified and finally adopted, as herein, on the 21st September, by, Messrs. Carvell and Fleming, for the Government, and by Mr. Mann, by the Railway Company.

September 15, to J. A. Mann, 1,667.-Enclosing for his information copy of appendix B. attached to Mr. Fleming's report No. 3,030, being the arrangement proposed to be made with the Company, in respect of "running powers."

September 18th, from J. A. Mann, 3,038.-Has examined the draft agreement prepared by Mr. Fleming in respect to the traffic arrangement proposed to be made with his Company, and requests that it may be modified in the manner herein shewn.

September 19th, to S. Fleming, 1,672.-Enclosing for his information and report, Nos. 3,006, 3,030, and 3,038.

September 19th, Report to Council, 1,673.-Submitting for approval the articles of agreement prepared by Mr. Fleming, with the concurrence of Mr. Carvell, in respect of the traffic arrangement including " running powers" to be made with the Windsor and Annapolis Railway Company.

September 21st, J. A. Mann, 3,044.-Refers to his letter of 18th instant, and requests that clauses 7 and 17 of the draft agreement for "running powers" be altered as herein shewn, and the amount to be paid by the Company to the Government be fixed by the Order in Council, at 30 per cent. of the gross earnings. Also, that the agreement be made for 21 years, and renewable.

September 14th and 21st, from J. A. Mann, 3,045.-Suggests the adoption of certain steps in order to expedite the settlement of the question of the traffic arrangements and "running powers."

September 6th and 21st, from S. Fleming to Sir Francis Hincks, 3,046.— "Telegraph "—Taylors' objections to several clauses have much force in them when examined. I have prepared an agreement embracing all contemplated by Order in Council; and essential points in Mann's agreement which should meet the case. think you should have Taylor at Ottawa, as he is familiar with the whole subject. Will report by 1st mail.

I

September 21st and 22nd, from W. H. Lee, 3,047.-States that the report to Council submitting for approval the agreement in respect of "running powers" has been adopted.

September 22nd, to J. A. Mann, 1,674.-Informing him of the Order in Council passed this day sanctioning the articles of agreement mentioned above.

September 22nd, to George Taylor, 1,675.-"Telegraph "-Agreement concerning "running powers" is passed; therefore, you need not come.

October 2nd and 6th, from J. A. Mann, 3,074.-Request that the claims of his Company was enumerated in the 3rd paragraph of his letter of 1st August last may receive attention; is willing to have them adjusted by independent arbitrators.

October 13th, to J. A. Mann, 1,699.-Acknowledging, No. 3,074.

November 21st and December 7th, from J. A. Mann, 3,204.- Urges that instructions be given for giving effect to the agreement made with his Company.

December 7th, to the Minister of Customs, 1,751.-Submitting for consideration and report copies of documents out of No. 30 and 3,006.

December 7th, to the Minister of Finance, 1,752.-Submitting for consideration and report copies of documents out of Nos. 30 and 3,006.

December 7th, to the Minister of Justice, 1,753.-Submitting for consideration and report copies of documents out of Nos. 30 and 3,006.

December 11th, from Sandford Fleming, 3,217.--" Telegraph "-Pray suggest to the Minister that Taylor should have instructions at once about Annapolis Railway, which, I think, takes effect on the 1st January.

December 22nd, Order in Council, 3.226.-Approving and ratifying the agreement made between Messrs. Fleming and Carvell for the Government, and Mr. Mann for the Company, as regards "running powers," &c., &c., and it being understood that the payment of the one-third of the gross earnings be adhered to.

December 20th, to J. A. Mann, 1,766.--That Mr. Taylor has been furished with an copy of the agreement with request to give effect to it.

December 20th, to George Taylor, 1,767.-Enclosing copy of agreement, with request to give effect to it.

December 29th.-1872. January 5th.-from Hon. S. L. Tilley, 3,291.--Acknowledging, No. 1,751, and is of opinion that under clause 9 of the agreement between the Company and the Government of Nova Scotia, of 22nd November, 1866, the Company is entitled to a draw-back of all duties paid them on articles used on construction

or necessary for working line, but all such refunded duties should form a charge by the Dominion Government against the Government of Nova Scotia.

January 8th and 20th, from Vernon Smith, 3,341.—Submits that the 8th clause of the agreement with his Company should be altered, so that the Company could book passengers and freight between Halifax and the way stations on the Grand Trunk line, and get a share of the revenue arising therefrom.

January 22nd, to George Taylor, 1837.-"Telegraph" Since the agreement with Windsor and Annapolis Railway and Government, trains from Halifax to Junction and Truro continue as before, and is the local traffic, in passea gors and freight, between Halifax and Windsor attended to, and has it the same facilities as before the agreement?

January 22nd and 23rd, from George Taylor, 3,350.-"Telegraph "-Since the agreement with Windsor and Annapolis Railway and Government, trains to Junction and to Truro run as before. The same number of trains carrying passengers are run by the Company. between Halifax and Windsor as heretofore, but cannot say whether the Company have sufficient plant to move the freight traffic.

January 28th, to George Taylor, 1,838.-"Telegraph "--Have Government trains stopped at the same number of stations as before agreement?

January 23rd and 24th, from George Taylor, 3,352.-" Telegraph "-Yes. Government trains stop at the same number of stations now as before the agreement. The same regulations as to stopping are pursued at present as has been observed for years.

February 6th, to Vernon Smith, 1,872.-Informing him that complaints are made that his Company is charging higher rates than those agreed upon, and requesting him to furnish explanations on the subject, and to send a copy of his Company's Supplementary Tariff.

March 6th and 11th, from Vernon Smith, 3,528.-Acknowledging, No. 1872, and gives the explanations called for in regard to the Tariff, of which a copy is herewith.

(No. 2404.)

OTTAWA, 1st March, 1871.

SIR,-Having reference to the instructions with which we have been charged in the matter of the Windsor and Annapolis Railway, we have the honor to state that by an Act of the General Assembly of the Province of Nova Scotia, 28 Vic. Cap. 13, provision was made for the construction of this line, and the "Chief Commissioner" was authorized to contract with reliable parties to build it.

On the 26th October, 1865, an agreement was made between the Chief Commissioner and Messrs. Edward Harris and J. J. V. Smith, on behalfof Messrs. George Knight and Co. of London, to construct the "Windsor and Annapolis Railway," upon certain conditions. The work was to be commenced before the first day of May then following, and to be fully completed and ready for traffic on the first day of May, 1868.

This agreement was subsequently confirmed by Mr. George Knight; but, as he failed to commence the work, the agreement was cancelled.

On the 22nd November, 1866, Messrs. Tupper, Henry and Ritchie, then in England, having been authorized by an "Order in Council" and acting on behalf of the Chief Commissioner of Railways, entered into an agreement with Messrs. Punchard, Barry and Clark, by which the latter were to construct the works which were to become their property, or that of a Company to be formed by them.

The works were to be commenced not later than 1st January, 1867, and to be fully completed and ready for traffic on or before 1st December, 1869.

Subsequently, on the 7th May, 1867, the "Windsor and Annapolis Railway Company," was duly chartered in pursuance of an Act of the Assembly of Nova Scotia, 30