336 



NEWFOUNDLAND. 



wav interests of Newfoundland had been a diffi- 

 cult problem to the Government. They had spent 

 $13,000,000 on a transinsular line, and had found 

 that the cost of operating the line was $300,000 

 in excess of its revenue, while interest on the 

 construction debt was also piling up. This situ- 

 ation the island finances could not bear, and m 

 1898 Sir James Winter carried through the Legis- 

 lature a contract with Mr. Reid, by which the 

 latter acquired all the railways in the colony on 

 payment of $1,000,000, and also took over the 

 Government telegraph-lines. He was to have con- 

 trol of the St. Johns dry dock and of various 

 other shipping or transportation concerns and 

 3,000,000 acres of land. The latter, however, he 

 was to sell to settlers at 30 cents an acre. In 

 return, he undertook to run daily trains across 

 the island, a first-class steamer between Sydney, 

 C. B., and Port Aux Basques, another between 

 Newfoundland and Labrador, and 7 others in the 

 great bays of the island. At the end of fifty 

 years' efficient carrying out of this agreement the 

 railway was to become his property. This con- 

 tract was protested against by Mr. Chamberlain, 

 and was bitterly opposed by a section of the 

 Liberals under Mr. Bond. Another section under 

 Mr. Morris took no part in the contest. The elec- 

 tions of 1900 resulted in Mr. Bond's return to 

 power and a coalition with Mr. Morris. The con- 

 tract came into the legislative arena again through 

 a clause that prevented Mr. Reid from assigning 

 his rights over the railway without the Govern- 

 ment's consent. This Mr. Bond refused to give 

 without a consideration, and thus the contractor 

 found himself unable to organize the company 

 with $25,000,000 which he had under way and 

 with which he hoped to develop very large inter- 

 ests of various kinds in the island. Meanwhile 

 the Premier went to England in March, and, with 

 the assumed approval of Mr. Chamberlain, who 

 had previously supported the right of the colony 

 to take possession of its property again after 

 duly compensating Mr. Reid, had a bill drafted 

 to legislate away the latter's monopoly. The 

 terms then presented to the contractor were, that 

 he should agree to resign his proprietary rights 

 in the railway; that he should restore the tele- 

 graphs to the ownership of the Government; and 

 that he should consent to various modifications 

 of his land grants in the interest of the squatters. 

 These he refused, and seven months were spent 

 in negotiating. Finally an arrangement was 

 reached, and it received the sanction, of the Leg- 

 islature. Under its terms the colony recovered 

 its fee simple to the railway, the telegraphs, and 

 the land. To resume ownership of the railway 

 Mr. Reid was paid back the $1,000,000 originally 

 paid by him, together with three years' interest 

 at 6 per cent. His operating control he was to 

 carry on for fifty years, as before, but as a con- 

 tractor and not a proprietor. For surrender of 

 the telegraphs he received the right to string a wire 

 of his own, for use in his business. For the sur- 

 render of the lands he was paid $850,000, or 27 

 cents an acre. The service on the railway was 

 to be improved, all expenses for stock and equip- 

 ment were to be borne by the company or Mr. 

 Reid, and at the end of fifty years the Govern- 

 ment was to take possession at a valuation. The 

 right to transfer his holdings to a stock com- 

 pany was given. He also undertook to use the 

 $5,000,000 which he expected to raise upon mort- 

 gages in the development of these properties and 

 concessions, and to deposit $250,000 with the Gov- 

 ernment as a guarantee. He was to fence the 

 railway tract at a cost of about $100,000, perfect 

 the railway line at an estimated expense of 



$250,000, build hotels, pulp-mills, and other con- 

 cerns, and encourage immigration. 



By this settlement the Government got back 

 a railway that had cost $10,000,000 and been sold 

 for $1,000,000; reassumed possession of lands that 

 included 495 miles of coast-line and thousands of 

 acres of farming, lumbering, and- mining lands; 

 and revived the credit that had been so disas- 

 trously affected by the contract of 1898. In con- 

 cluding his presentation of the agreement to the 

 Assembly, early in August, the Premier spoke 

 very highly of Mr. Reid. The latter at once set 

 to work to organize his company, and in October 

 the first general meeting of shareholders in the 

 Reid Newfoundland Company was held in Lon- 

 don. The capital stock w r as announced as $25,- 

 000,000, with all the stock taken fully paid up 

 and a large cash credit available in the bank. 



Finances. Early in July the Hon. Edward 

 Jackman presented his budget to the assembly. 

 The revenue for the fiscal year ending June 30, 

 1900, was $2,111,637; the expenditure was $1,853,- 

 034; the surplus was $258,603, to which must be 

 added that of the preceding year, or a total of 

 $316,695. The probable revenue for the year end- 

 ing June 30, 1901, was $2,000,000, and the ex- 

 penditure was placed at the same figure. The 

 estimated revenue for the year ending June 30, 

 1902, was $2,060,000, and the expenditure was 

 placed at $2,030,000. The Finance Minister was 

 greatly pleased with the prosperous condition of 

 affairs in the years under review. Toward the 

 end of September the excellent credit of the Gov- 

 ernment was illustrated in the floating of a loan 

 in London. This amount of $2,000,000 was sub- 

 scribed for three times, and was obtained on most 

 advantageous terms. It was a 3J-per-cent. loan, 

 for which 94 was paid, the principal repayable 

 in fifty years. 



The public debt on June 30, 1900, was $17,- 

 376,774. 



Trade and Commerce. In 1900 the trade of 

 the colony improved greatly and became the most 

 prosperous in its history. The imports were 

 $7,497,147, an increase over the fiscal year 1899 

 of $1,185,903. The exports were $8,627,576, an 

 increase of $1,691,261. Of the former, $2,224,353 

 came from the United Kingdom in 1900, $3,102,- 

 604 from the British possessions, $2,170,190 from 

 foreign countries. Of the exports, $1,942,093 went 

 to the United Kingdom, $1,802,515 went to Brit- 

 ish countries, $4,822,968 went to foreign coun- 

 tries. Canada shared in the island's imports to 

 the extent of $2,805,490, and received of its ex- 

 ports $520,137. The United States sent $1,993,505 

 worth of products, and received $1,005,525 worth. 

 Of the exports, the chief product was that of the 

 fisheries $7,015,964. The chief imports included 

 fresh meats and poultry, $1,366,675; molasses, 

 $260,489; pork, $308.094; tea, $147,979; leather, 

 $216,516; hardware, $181,462; leatherware, $111,- 

 443; woolens and cottons, $653,615; ready-made 

 clothing, $305,296; coal, $302,889; cordage com- 

 pany material, $142,359; specie and bullion, $261, : 

 160; mining machinery, $81,794. 



Fisheries. The staple interest of the New- 

 foundland fisheries is the cod. In the fiscal year 

 1900 the catch was 1,300,622 quintals, valued at 

 $5,453,538, against a product in 1899 valued at 

 $4,445,031. Codfish oil was sold to the value of 

 $301,515, and cod-liver oil to the extent of $8,598. 

 The seal fisheries returned $433,605 for seal-oil 

 and $162.330 for sealskins a total of $595,935, 

 against $388.599 in 1899. The lobster fisheries 

 produced 37,523 cans, worth $441,202, in compari- 

 son with 56,166 cans, worth $565,362. in 1899. and 

 61,951 cans, valued at $619,510, in the preceding 



