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Contract between the government of the province of Quebec and the Canadian Pacific Railway Company Canada; Canadian Pacific Railway Company Mar 4, 1882

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Array ^4/*XXS (:^QT^^TlX^tXX made in duplicate this fourth day of
March, eighteen hundred and eighty-two, between HER MAJESTY THE
QUEEN, acting for and on behalf of the Province of Quebec, by the Honorable
JOSEPH A. CHAPLEAU, the Premier and Commissioner of Railways of the said
province, hereinafter called " the Government;" and the CANADIAN PACIFIC
RAILWAY COMPANY, a body corporate and politic, duly incorporated by
letters patent of the Dominion of Canada, acting herein by DUNCAN McINTYRE
and RICHARD B. ANGUS, Vice-Presidents thereof, duly authorized for the
purposes hereof by a resolution of the Board of Directors thereof, hereinafter
called " the Company,"
1. That, subject to the ratification of the Legislature of the said Province of
Quebec, as hereinafter provided, the Government hath sold, transferred and
assigned, and by these presents doth sell, transfer and assign, to the Company,
accepting thereof as aforesaid, that portion of the railway now known as the
Quebec, Montreal, Ottawa and Occidental Railway, lying between Montreal and
Aylmer, both inclusive, with the branch and bridge into the City of OttawTa,
and the branch to the town of St. Jerome ; together with all lands, property,
rights and privileges thereto appertaining, or held, or acquired by the said
Government, for the purposes of the said portion of the said Railway, or incidental thereto, or in connection therewith ; comprising also all the tools, implements, machinery and moveables of all descriptions now in use in running and
carrying on the business of the said portion of the said Railway as a going-
concern, exclusive of stores and supplies. But reserving from the said lands
and property the property in the City of Montreal known as the Bellerive property, being number 1,593 of the Cadastral plan and book of reference of the
St. Mary's Ward ot the City of Montreal; and the North-half of the property
known as the Macdonald property, being number 615 of the said Cadastral
plan. And including among the lands and property hereby conveyed that portion of the property known as number 1,581 of the said Cadastral plan and book
of reference, commonly called the Gaol property, where the workshops for the
said railway are now being erected ; bounded in front by Ste. Catherine street,
on one side by Colborne Avenue, on the other side by numbers 1,577, 1,578 and
1,579 of the said Cadastral plan, and in rear by the stone wall in rear of the Montreal
Gaol; and also the property at Hochelaga known as the Old Military Hospital, being
numbers 149 and 150 of the Cadastral plan and in the book of reference of the incorporated village of Hochelaga. But it is agreed that the said reserve of the said
Bellerive property shall be solely and exclusively for the purposes of the remainder
of the said Railway, and for no other purpose whatever; that the freight sheds of
the Company shall be erected on the portion of the Macdonald property hereby conveyed to them, and that the said property shall be used exclusively for Railway
purposes and for no other purpose whatever. Also all the rights, privileges and
property of the Government acquired or held for the purpose of, or in connection
with, the proposed branch of the said Railway to a point of junction with the
Grand Trunk Railway, west of the said City of Montreal. The foregoing description being intended to include, without specifically naming or describing the
same, (under the reserves aforesaid), every species of property now held by the  Government, as in any manner incidental to or connected with the said portion
of the said Railway from the terminus thereof, on the property known as the
Quebec Gate Barracks, in the City of Montreal, inclusive, to the termini thereof
at Aylmer, Ottawa and St. Jerome, all inclusive; as well as the said proposed
branch.
2. And the Government hath also sold, transferred and assigned, and doth
hereby sell, transfer and assign to the Company accepting thereof as aforesaid,
a proportion of the plant and rolling stock now upon the Quebec, Montreal,
Ottawa and Occidental Railway of the value of $450,000, according to the prices
appended thereto in the Schedule thereof, hereto annexed: and also railway
supplies and stores of the value, at the cost price thereof, of $80,000. The said
plant and rolling stock to be taken from the existing plant and rolling stock of
the said Railway, of average quality, and in fair proportions of each of the kinds
detailed in the said Schedule; and such stores and supplies to be taken in
similar proportions and of like quality, out of the stores and supplies now held
by the Government for the purposes of the said Railway. And if the parties
hereto are unable to agree as to the proportions in which the said plant, rolling
stock, stores and supplies, shall be taken by them respectively, or as to the
quality thereof, any dispute or difference respecting the same shall be adjusted
by the Mechanical Superintendents of the Government and of the Company;
who, if they differ, shall have powTer to name a third person as umpire; and in
that case the decision of the majority of them shall be.final.
8. And it is further agreed between the parties hereto, that the several works
of construction now being executed in and near the City of Montreal for the purposes of the said Railw7ay, including a double track into the Quebec Gate Barracks
Station, shall be continued and completed by the Government under the
existing contracts therefor, and in accordance therewith in so far as
they have been contracted for, and if not contracted for, then in a substantial manner: and the Government shall also build upon the portion of
the Macdonald property, hereby conveyed, a Freight Shed for the use of the
Company, to be of the dimensions of 40 feet x 400 feet, to cost not less than
$10,000, the plan of which shall be approved by the Company. And a Station
shall be constructed by the Company upon the said Quebec Gate Barracks property,
wTithin one year from the date hereof, at a cost of at least $60,000. And the Company will pay to the Government out of the purchase money hereafter mentioned, the sum of $240,000, as a consideration for causing the said contracts
to be performed and the said freight shed to be built, which payments shall be
made as the said works proceed; and they shall be allowed to reserve out of the
said purchase money the said sum of $60,000 for the said Station.
4. And it is further agreed betwTeen the said parties hereto, that a
branch of the said Railway shall be constructed from a point on its main line to
the northward of Mile End Station, to a point of junction with the Grand Trunk
Railway between Dorval Station and Montreal, such points of junction to be
selected by the Company ; on which branch there shall be expended under the
direction and supervision of the Company, out of the price and consideration
hereinafter mentioned, the sum of $100,000 ; which construction, in consideration
of the said sum, the Company hereby undertake to make and complete, of the
standard of the remainder of the said Railway, and within one year from the
date hereof.
5. The foregoing sale, transfer and assignment, and agreements, are thus made
for and in consideration of the sum of $4,000,000, from out of which the Com-  pany shall pay the said sum of $300,000 for the completion of the said w7orks of
construction in and near Montreal in the proportions above mentioned, and the
sum of $100,000 for the said branch to the Grand Trunk Railway, as the same
shall be required from time to time for carrying out the said contracts and the
other terms and conditions hereof. And also shall pay to the Government the
further sum of $600,000 by annual instalments of $100,000 each, payable at the
end of each and every year, on the first day of March in each year, the first of
which payments shall fall due on the first day of March 1888, with interest at
the rate of five per cent per annum, payable at the same times as the interest on
the remainder of the price as hereinafter provided. And as to the balance of
$3,000,000, the Company agree and bind themselves to pay the interest thereon
to the Government at the rate of five per centum per annum semi-annually, on
the first days of March and September in each year, commencing on the first
day of September next; with the right to the Company to pay the said capital
amount of $3,000,000 to the Government at any time after having given to the
Government six months notice of their intention so to pay the same : and with
the right to the Government to demand and enforce payment, of the said balance
of capital, at any time after the expiry of twenty years from the date hereof, on
giving six months previous notice of such demand.
And the said sale, transfer, assignment and agreements, are thus made and
entered into upon the other and further considerations following, viz :
6. That inasmuch as the said acquisition of the said portion of the said railway
is now7 hereby made as an extension of the said Canadian Pacific Railway, the
Eastern terminus of the said Canadian Pacific RailwTay, including the Montreal
passenger station thereof, shall be fixed and shall forever remain, at the place
known as the Quebec Gate Barracks, in the city of Montreal; unless at any time
hereafter the Company shall extend their Railway to the city of Quebec, in
which case the Eastern terminus thereof shall be fixed at the said city of Quebec ;
the Montreal passenger station remaining at the said Quebec Gate Barracks.
7. And whereas, it is of essential importance to the Government and to the
Company that a ferry should be established over the river St. Lawrence from
the city of Quebec to Point Levi, and that a branch of the Intercolonial Railway
should be constructed from Point Levi eastwrard, to be known as the St. Charles
Branch, by means whereof trains of cars can be ferried across the river St.
Lawrence, and the trains of the said Quebec, Montreal, Ottawa & Occidental
Railway and of the Intercolonial Railway can be transferred from one railway
to the other and run on such other, without breaking bulk : Therefore, it is
hereby further agreed that the Government will use its best endeavors to procure the completion by the Government of the Dominion, of the necessary works
for such ferry on the south shore of the said river St. Lawrence at Point Levi,
and of the said branch, with as little delay as possible ; and upon obtaining an
agreement to that effect from the Government of the Dominion, will, on its own
part, complete all the works necessary for the same on the north shore of the
said river at Quebec.
8. That through freight and passenger traffic shall be carried over both of the
said railways and every part thereof, including branches built or to be built, or
belonging to or to be acquired by the owners thereof respectively, and also
including bridges and tunnels ; at the freight and passenger rates established and
charged by the Canadian Pacific Kailway Company for all traffic carried past
the city of Ottawa in either direction, and at rates to be agreed upon from time  to time between the Government or its assigns and the Company for all
traffic which is both received and delivered East of the said city. And if the said
parties fail to agree thereon, such rates shall be fixed by the Minister of Railways
of the Dominion on the request of either party hereto after notice to the other.
And all rates shall be apportioned between the Government or its assigns
and the Company at a mileage rate, to be calculated pro rata according to the
distance traversed by such traffic on each of the said railways respectively,
without any extra charge for tunnels and bridges ; the same rates per mile
being charged on such tunnels and bridges as on the remainder of said
railways.
9. That if either party hereto makes arrangements with any other railway
company for special rates for freight or passengers carried by its railway to a
connection with the railway of such other company, the other party hereto, or
its assigns, shall have the benefit of such special rates for its through traffic, in
so far as such arrangements can properly be made applicable to such traffic.
10. That the Government and its assigns shall give special despatch, equal to
the despatch of express trains, to all emigrant trains from the city of Quebec
westward, and shall run such trains as special trains on the arrival of Ocean
vessels bringing such emigrants, whenever the Company shall notify and
request the Government or its assigns to send on such special emigrant trains,
and shall be themselves prepared to forward them in like manner. And the
Government and its assigns shall also give prompt and speedy despatch to all
foreign mails destined to be forwrarded by the Company. And the Government
and its assigns shall also grant to the Company special lowT rates of freight, not
exceeding half a cent per ton per mile for all coal shipped upon its railway
at Quebec, to and for the use of the Company, without car mileage ; the Company
furnishing their cars without car mileage, and paying car mileage due to any
other railway company, for the use of its cars in carrying such coal upon the
Government Railway, but the Government not to make any charge for hauling
such cars, when empty, over its road.
11. That the Company shall grant to the Government and its assigns, running
powers for ever from St. Martin's Junction, over the line of railway hereby
sold, to the City of Montreal and intervening points, but without the right of
doing any local business over such portion of railway; except in so far as it
may hereafter be mutually agreed between the parties hereto that the Government may carry passengers to or from St. Martin's station, from or to Montreal
on behalf of the Company, upon terms to be fixed by such agreement.
And the Company shall also allow to the Government or its assigns
for the purposes of its said railway, the use, in common with the
Company, of the passenger stations and platforms at all the stations built
or to be built between St. Martin's Junction and Montreal, for the embarkation and disembarkation of passengers; and also the right to construct a siding
to a freight shed and sufficient space for a freight shed forty feet by two
hundred feet at Mile End Station, and the right of access thereto; and the right
of access to the proposed station at the Quebec Gate Barracks, for its passengers
and passenger trains, without delay or obstruction, with the exclusive use, at
the said last-mentioned station, of a booking office, baggage-room and agents'
office,—and a room for the use of the officers of the railway retained by the
Government or its assigns; together with the use, in common with the Company, of the passengers' waiting-rooms and conveniences appertaining thereto;
the whole upon condition that the Government and its assigns shall pay a
rental of $5,000 per annum for such use, and shall also contribute to the main-  tenance in good order of the tracks and sidings of the said railway from St.
Martin's Junction to the said Montreal station, in the proportion which the
amount of use thereof by the Government or its assigns, calculated by wheelage.
bears to the amount of use thereof by the Company, calculated in like manner ;
and without any further or other charge for the privileges hereby granted,
And the Company shall also set apart and convey to the Government at a convenient place at Hochelaga, for the purposes of its railway, a further area of four
acres of land to be used for such purposes only, with the right of access thereto,
the location thereof to be mutually agreed upon. And if at any time hereafter
the Company shall determine to build another track, constituting a double track,
from St. Martin's Junction, or from the Back River Bridge, to the terminus in
the city of Montreal, the Government or its assigns wall pay the proportion,
calculated yearly according to wheelage, of the interest on the cost thereof at the
rate of five per centum per annum.
12. And it is hereby further agreed that the Government makes the said sale,
transfer and assignment with warranty against all claims, mortgages, hypo-
theques, liens and incumbrances on the property hereby sold. But the
Company shall be bound to pay the interest upon the purchase money
hereby agreed upon, and also the said several instalments making up the
said sum of $600,000, notwithstanding the existence of any charge or incumbrance on the said portion of railway hereby sold, so long as the Company shall
not be troubled by the creditor thereof.
18. And as securityfor the payment of the said sum of $3,600,000, and interest
as aforesaid, the Company hereby mortgage and hypothecate the said portion
of the said Railway hereby agreed to be sold: and all the lands, tenements and
appurtenances thereof hereby conveyed or intended so to be ; and all the plant
and rolling stock thereof as being immovables par destination : and do hereby
also further mortgage and hypothecate those two several branches, of the said
Railway know7n as the St. Eustache Branch, and the St. Lin Branch, and all the
lands, tenements and appurtenances, plant and rolling stock belonging to both
said branches, which may be more fully described as follows, namely —
The said St. Eustache Branch commencing at a point of junction with the
portion of Railway hereby sold near the village of Ste. Therese, and extending
to the station of the said Branch in the town of St. Eustache, being about seven
and one-half miles in length, with all the property and appurtenances thereof:
And the said St. Lin Branch, otherwise called and known as the Laurentian
Railway, commencing at the point of junction thereof with the St. Jerome
Branch of the said Quebec, Montreal, Ottawa and Occidental Railway near the
said village of St. Therese, and extending about fifteen miles to the terminus
thereof in the village of St. Lin, with all the property, rolling stock and appurtenances thereof. But it is hereby agreed that if the title of the said Company to the said
St. Eustache Branch, and St. Lin Branch, as the proprietors thereof, be not confirmed and rendered valid by the Legislature of the Province of Quebec at the
session thereof now about to be held, the foregoing hypothec upon the
said branches and their appurtenances shall be ipso facto cancelled and
annulled: and the Company will give such further security for the payment of
the said sum of $600,000, as shall be mutually agreed upon.
14. That for the purpose of preventing accident and delay, and of ensuring
the joint use ot the said portion of the said Railway lying between St. Martin's
junction and the Montreal terminus inclusive, without confusion or obstruction,
#the running and management of all trans and engines over the said portion of
Railway, and the conduct of all employees engaged in such running and
management, shall be under the exclusive supervision and control of the
officers of the Company. And the Government shall be responsible for all
injury to the Railway or bridges, caused by any defect in its rolling stock or
machinery, or by neglect or malice on the part of its employees. And if upon
the complaint of the Company it be established thai any employee of the Government has been guilty of any disobedience of orders or insubordinate conduct
in such running and management, such employee shall either be dismissed from
the employ of the Government, or removed in such manner that he shall not be
again permitted to perform any duty upon the premises under the control of the
Company. And on the other hand the Company shall be responsible for all
delays and accidents caused by neglect or malice on the part of their employees
in the regulation of such running and management.
15. That for the purpose of connecting the Railw7ay with the freight sheds upon
the said Macdonald property, and wTith the Company's workshops in rear
of the Montreal gaol, the Company shall lay out and construct a branch or
siding from the main line at Hochelaga to the said property with two tracks
thereon, one into the freight shed of the Government, and one into the freight
shed of the Company, wTith a siding into the said workshops ; at the joint expense
of the Government and of the Company, upon a plan to be agreed upon between
the parties hereto, and of the standard of the remainder of the said Railway;
the parties hereto making the requisite advances for such construction, in the
proportion of one-third by the Government or its assigns, and two-thirds by the
Company as the work proceeds/4 And the Company shall allow a suitable connection to be made by the Government from the main line on the River bank
into the said Belle Rive property.
16. The Company shall maintain the Railw7ay hereby sold, in good and efficient
order and repair, and shall regularly and efficiently run the same with a sufficient
number of trains per day, to carry the freight and passenger traffic with due regularity and despatch, running at least one passenger train per day each wray.
And if at any time before the payment of the said balance of the said price the
Company shall allow7 the said Railway or rolling stock to fall into disrepair, they
shall be bound to repair the same and to replace the same in as good order and
condition as at present, within thirty days after receiving notice from the Government so to do. And if any dispute should arise as to the fact of such
disrepair or as to the sufficiency of the repair thereof, such dispute shall be
referred to the arbitration and awrard of three disinterested persons, one of whom
shall be named by each of the parties hereto, and the third by the Minister of
Railways of the Dominion Government. And if the Company shall fail to
make good such disrepair within the said period, or in case of dispute, in con- lormity with the award of such arbitrators, the delay hereby granted for tin?
payment of the said sum of $600,000, or any portion thereof then unexpired, shall
be ipso facto forfeited, and the Company shall forthwith pay to the Government
the whole of the said last mentioned sum, or any part thereof which shall then
remain unpaid, with all interest thereon.
17. If at any time the Company should make default for thirty days in payment of the interest due under the terms hereof, the delay hereby granted for the
payment of the capital producing such interest shall be ipso facto forfeited : and
the Company shall be thereupon bound to pay to the Government the full
amount of such capital with all interest accrued thereon.
18. The Company shall maintain and carry out all traffic contracts
hitherto made by the Government according to their terms, and all free
passes for the current year issued by the Government and now in force,
a list of which contracts and passes shall be furnished by the Government to the Company, on or before the date at w7hich this agreement
shall come into full force and effect. And the Company shall abstain, as
far as shall in their opinion be consistent with the efficient working of the
Railway, from disturbing or removing the employees of the Government, heretofore engaged upon the portion of said Railway hereby sold, without reasonable
notice or compensation ; and the employees of the Government, who shall have
been heretofore engaged in the running and management of the entire line, shall
be dealt with in such a manner as shall be mutually agreed between the
Government and the Company, and with reasonable regard to their positions
and interests.
19. Upon the demand of the Company, and at their expense, the Government
shall from time to time hereafter, make, execute and deliver to the Company such
good and valid deeds of conveyance of any of the immoveable properties hereby
sold, transferred, and assigned, or intended so to be, as shall be considered
needful, under the advice of counsel learned in the law, for the complete and valid
conveyance of such properties to the Company.
20. And it is hereby finally agreed that this agreement is thus made subject to
the approval and confirmation of the Legislature of the Province of Quebec at
its next session, and shall take effect upon such approval and confirmation : and
the Government hereby agree to lay the same before the said Legislature at the
earliest convenient day; and to place before the said Legislature such a measure
as may be requisite fully and finally to confirm this agreement, and to render
the same valid and effectual in law in all its details. 8
ttSS W&$Clt£&&it the parties hereto have executed these
presents in duplicate at Montreal, in the Province of Quebec, the day and year
first above mentioned,
In the presence of
i      J. A. CHAPLEAU,
J. J. C ABBOTT,     I
7      D. McINTYRE,
L. A. SENECAL.
R. B   ANGUS.
C. DRINKWATER,
Secretary C. P. R. Co. Schedule Referred to in the Annexed Agreement.
STATEMENT OF ROLLING STOCK, such as LOCOMOTIVES, PASSENGER and
FREIGHT CARS, SNOW-PLOUGHS, FLANGERS, &c, compared with what it was
in March, 1880 ; also, showing whether the addition to old stock was purchased or
manufactured in our own shops.
December, 1881.
Class of Cars.
Fassenger Cars.
Official Car (new)	
Paymaster's Car	
Palace and Sleeping Cars	
Sleeping '•  	
Palace " 	
First Class " (See Note 1)
Second Class " 	
Baggage " 	
Baggage & Smoking    " 	
Through Baggage and Express Cars
Excursion Car ,
StreetCar ,
Freight Cars.
(See Note 2.)
Box Cars	
Platform Cars	
Hay Cars (temporary from flats) —
Cattle Cars	
Brake Yans 	
Tool Car	
Tank Car	
Flangers	
Snow-ploughs	
" (iron, for front of locomotives)
Total value of Pass'r & Freight Cars.
Locomotives	
Calumet Ferry Engine.
o
00
o
o ,-r
ml
C3
2
14
12
151
302
19
2
1
1
2
8
sot
'B   • g
92
22
Q
m
Q
B
10
1
228
10
90
P OO
^22
1
1
2
2
4
12
16
8
7
4
10
1
466
334
90
19
8
3
1
6
8
12
36
1
Present
Value
Each.
$12,000
3,500
13,225
9,000
7,000
4,000
2,225
2,200
600
650
1,080
600
650
500
625
500
850
550
700
900
1,500
32
7,700
1,500
Total
Value.
$12,000
3,500
26,450
18,000
28,000
48,000
35,600
17,600
4,200
2,600
10,800
600
$207,350
$302,900
167,000
56,250
9,500
6,800
1,650
700
5,400
12,000
384
$562,584
$769,935
$277,200
1,500
$278,700
Grand Total  of Rolling Stock $1,048,634.
(Signed,)        A. DA.VIS.
NOTE.
Note No. 1.—First Class Cars Nos. 13 and 14 taken to make Sleeping Cars "Quebec"
and '' Ottawa," making two less in 1881 than in 1880.
Note No. 2.—Box Car No. 200 destroyed by fire, October, 1881, at Buckingham; No.
212 destroyed by fire at St. Martin Junction, November, 1881; Nos. 215, 218 and
248, not traced, which accounts for discrepancy of 5 in the total.
The foregoing is the Schedule referred to in the annexed Agreement.
Montreal, 4 March, 1882.  Jyjtwmmt
THE GOVERNMENT
OF   THE
PROVINCE   OF   QUEBEC
AND
The Canadian Pacific Railway.

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