52 ROADS AND RAILWAYS. 



the distance estimated at 340 miles. Steel rails of the hest 

 fjuality to he used. A money sid)sidy of ^180,000, to Ije jiaid 

 half-yeai'ly hy the Government for thii'ty-five yenrs, eomlitional 

 on the otRcient maintenance and ojteration of the line, the pro- 

 l^ortions of this subsidy to attach while the railway is in course 

 of construction ; and as each five miles are comjileted and ap- 

 proved, land gi'ants of five thousand acres per mile of good land 

 to lie secured to the company in alternate blocks along the line 

 in (piantities of one mile in width and eight miles in deptli ; and 

 if not obtainable along the line, to 1)l' SL-Iectrd elsewheie. The 

 company bind themselves to Imild a sul)stantial and etticient 

 road, subject to approval liy a (Juvi-i'uuient Inspectoi', and to 

 complete it in five years. 



FIKST SOD CUT. 

 The tirst sod of the railway was turned on the 9th of August, 

 1881. By September, 1882, thirly-tive miles were comjileted 

 and in running order ; one humlred miles were located, and the 

 remaindei of the line northward was under survey. In Novem- 

 ber, 1884, the line was completed and opened for traffic between 

 St. John's and Harbour Grace, a distance of 83a miles. The work 

 of construction led to tlie distriljution of large sums as wages 

 among the labouiing classes who were employed : while the 

 trailing classes also shared in the lienetit. The enterprise Avas 

 regarded with general approval throughout the comiunnity ; and 

 the passenger and goods traflie on the line develo]>e(l at a satis- 

 factory rate. 



FINANCIAT. TROUIiLKS. 



Soon after, unfortunately, the "Newfoundland Railway Com- 

 pany "got into financial difficulties, and woik on the line was 

 discontinued. Legal proceeding- followed : tlie company jnovcd 

 unable to fulfill their contract, and finally the pru'ti'ju of tlie line 

 finished passed into the charge of a Keceiver on liehalf of certain 

 bond-holders in England, who held a mortgage on it. Tender 

 tliis airangeiiienf it has lieen most satisfactorily operated till tlie 

 present time, and lia\-.ing a >ub<idy of .? |,').r)()() per anniini a lair 

 dividend is paid to tlie bond-lioMeis 



