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REPORT of the Committee Appointed to Enquire Into the Transactions of the Montreal and Bytown Railway Company, Prepared Bjr Mr

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REPORT of the Committee Appointed to Enquire Into the Transactions of the Montreal and Bytown Railway Company, Prepared Bjr Mr 1356 Loranger, T.J.J. Report re. Montreal and. Bytown railway. LP F 5012 ICihranj KINC3STOM, ONTARIO v i- ; REPORT OF THE [ITTEE APPOINTED TO INQUIRE INTO THE TRANSACTIONS OF THE JTREAL AND BYTOWN RAILWAY COMPANY, PREPARED BY MR. LORANGEE, OEDEK OE THE COMMITTEE, AND UNANIMOUSLY ADOPTED. reoi? REPORT Of the Committee appointed to enquire into the transactions of the Montreal and Bytown Railway Company, prepared bjr Mr. Loranger, by order of the Committee, and unanimously adopted. ORDERS OF REFERENCE. Legislative Assembly, Monday, 10th March, 1856, Resolved^ —That a Select Committee composed of: Mr. Loranger, Mr. Poulin, Mr. Antoine A. Dorton, Mr. Prevost, Mr. Labelle, Mr. Wilson, and Mr. Lyon, he appointed to enquire into all the transactions of the Montreal and Bytown Rail- way Company, from the date of its existence, into the state of its affairs, its resources and its means, and also, concerning the manner in which the Municipal Council of the County of Terrebonne subscribed on behalf of the Parishes of St. Martin, St. Jerome, St. Adele and the Township of Abercombie, a sum of twenty- six thousand pounds to the stock of the said Montreal and Bytown Railway Com- pany ; concerning the issue of Municipal Debentures in consequence of such sub- scription ; the negotiation of such debentures, and the acts of the Company, and generally concerning all matters and things relating to that transaction, and to report thereon with all convenient speed,—with power to send for persons, papers and records. Attest, W. B. LINDSAY, Clerk Legislative Assembly, Monday, 17th March, 1856. Ordered—That the petition of the Municipal Council of the County of Terre- bonne, praying to be relieved from the payment of the amount of stock subscribed for by the said County, in the Montreal and Bytown Railway Company, and for which they have issued debentures—and all other petitions on the same subject, be referred to the said Committee. Ordered—That the petition of the Honorable Peter McGill and others, rate- payers in and for the County of Ottawa, be referred to the said Committee. Monday, 31st March, 1856. Ordered —That the Return relative to Municipal Debentures of the County of I Terrebonne, presented on the 17th instant, be referred to the said Committee. A69 m Friday, 4th April, 1856. Ordered—That the petition of William Campbell and Others, of the Parish of Lacorne, received this day, be referred to the said Committee. Committee Room, June, 1856. The Select Committee appointed to enquire into the transactions of the Mon- treal and By town Railway Company, from the date of its existence, into the state of its affairs, its resources and its means, and also, concerning; the manner in which the Municipal Council of the County of Terrebonne s ;bseribed on behalf of the Parishes of St. Martin, St. Jerome, St. Adele and the Township of Abererombie, a sum of twenty-six thousand pounds in stock of the said Montreal and Bytown Railway Company; concerning the issue of Municipal Debentures in consequence of such subscription ; the negotiation of such debentures and the acts of the Com- pany, and generally concerning all matters and things relating to that transaction, have the honor to present the following Report : Your Committee, in compliance with the Order of Reference of Your Honor- able House, bearing date the tenth day of March, one thousand eight hundred and fifty-six, proceeded with the enquiry mentioned in the said Order of Reference, and have examined witnesses, papers and records, as will appear by the Appen- dices. The following is the result of their investigation : The Montreal and Bytown Railway Company, incorporated by virtue of an Act of the Legislature, opened their stock books during the month of March, 1853, and stock to the amount of £24,675 was taken by private individuals. The Corporation of Montreal subscribed £125,000 and the Municipality of the County of Two Moun- tains £62,000 to the capital stock of the Company. On the seventh of November of the same year the Company gave Sykes, DeBergue & Co., English contractors, the contract for the completion of the Mon- treal and Bytown road, together with branch roads of twenty-three miles —ten miles at St. Jerdme and thirteen miles at Lachute. The sum contracted for was £770,000, sterling, payable in ten instalments of £77,000 each, the first instalment to be paid within six weeks after the signing of the contract, and the remainder according as the works advanced. The payment of this sum of £770,000 was to be made as follows: £26,000, sterling, in stock of the Company, £125,000 in de- bentures of the City of Montreal, £62,000 in debentures of the County of Two Mountains, and the balance £360,000 in debentures of the Company, with the con- dition that if the Company obtained Municipal stock for an amount greater than the stock of the City of Montreal and the County of Two Mountains, this surplus should be transferred to the contractors in the room of the debentures of the Com- pany to make up the sum of £360,000. It was, moreover, agreed upon, that the contractors »vere to pay the interest upon any Municipal Debentures transferred to them until the entire completion of the Road, which was to be delivered in three years. This delay was to be expended for a further period of one year in case of war with Russia, which was then threatening Europe, should be declared. The Municipality of the County of Ottawa No. 2, likewise took shares to the amount of £33,200, and the Municipal Council of the County of Terrebonne also took shares to the amount of £26,000, being for the Parish of St. Jerdme £10,000 St. Martin 10,000 Abererombie or Sie. Adele 1,000 Ste. Sophie 5,000 £26,000 3 By the regulations authorizing these shares, provision was made, that the Debentures, which were to be issued from time to time in payment of the instalments upon the shares subscribed according as they came due, should only bear interest from the day on which the road and its branch to St. Jerome, where it was agreed that a depot should be built, should be in operation and completed throughout its entire length, the capital to be payable only in twenty years. The reason of this restriction ?*s to the date of the day from which the interest should run was on account of an understanding which took place between the Company and the Municipality, that, not only the interest should not be claimed during the period of the construction of the road, but that even when it should be in operation, not only it would pay the capital, but would also give large profits. During the month of March following, that is, in 1854, the Council, by a resolution which does not appear to have been published, authorized the Mayor to issue Debentures to the amount they had subscribed, that is, for the sum of £26,000, On the first of April the Mayor issued the said Debentures, and they were countersigned by the Secretary-Treasurer. Instead, however, of limiting the interest to run from the day upon which the road and the branch road to St. Jerome should be in opera- tion, he made the interest upon them payable semi-annually from the day of their issue, that is, from the fir>t of April, 1854, and handed them over to the Presi- dent of the Company. On the first of May, 1854, these Debentures were given to the Contractors, together with those issued by the County of Ottawa No. 2, for £33,000. The President gave these Debentures over to the contractors for account of the amount of the contract, and the latter negotiated or deposited them in the payment of their debts. A year after having given the Debentures, the Mayor gave also to the President a joint order, addressed to the Receiver Genera!, requesting him to pay to the Agent of the Bank of Montreal at Quebec the monies arising from these Provincial Debentures, by virtue of the Act to establish a Con- solidated Municipal Loan Fund. Wm. C Evans, Esq., of Montreal, deposited these Debentures in the office of the Receiver General at Quebec from day today between the sixteenth of May, 1855, and the end of the same month, for the pur- pose of obtaining Provincial Debentures in exchange. He also produced the joint order mentioned herein above, together with a power of attorney from William Gunn, Manager of the Bank of Montreal, authorizing him to receive Provincial Debentures on behalf of the Bank. The Deputy Receiver General, however, being of opinion that the joint order was of no use, inasmuch, as by law, the ex- change of Debentures could, in his opinion, be effected without this order, returned it to Mr. Evans, and gave him in exchange for these Municipal Debentures, Pro- vincial Del) ntures to the amount deposited, that is, £22,700 for the Comity of Terrebonne, and £30,800 for the County of Ottawa No. 2. This exchange of Municipal Debentures was made at first for temporary Debentures without Cou- pons, but some days afterwards the temporary Debentures were sent back to the Deputy Receiver General, and he on his side issued Provincial Debentures with Coupons. The interest due upon the Municipal Debentures from the first oi May, 1854, to the first of May, 1855, that is, the interest due before the exchange was effected was paid I))' the contractors, but in the month of November, 1855, and in the month of April last, the Government demanded from the Municipal Council of the County of Terrebonne one year's interest at six per cent, and two per cent, on account of the capital.
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