CANADA, DOMINION OF. 



99 



Minister of Railways and Canals before being ac- 

 cepted as complete by the Government ; and pro- 

 vided that the grant of land shall not be made upon 

 a larger mileage than the Minister of Railways 

 considers reasonably necessary for traversing the 

 distance between the terminal points. On its part 

 the Government gave the company a monopoly for 

 five years, a preference for ten years in the con- 

 struction of other lines, freedom from taxation for 

 ten years, and 25,000 selected acres of land in the 

 district traversed for every mile built. Mr. Blair, 

 Minister of Railways, introduced the measure on 

 Feb. 8, and after much stormy discussion it passed 

 the House ; but it was finally rejected by the Senate 

 on the ground of granting too much in monopoly 

 and in valuable lands. 



The Canadian Pacific Railway in 1897 earned 

 $20,822,974, of which $4,941,486 was from passen- 

 gers, $13,036,790 from freight, and $2,844,698 from 

 express. The Grand Trunk earned $16,977,313 

 $4,856,333 from passengers, $11,167,317 from 

 freight, and $953,663 from express. The total earn- 

 ings of all Canadian railways were $52,353,277, and 

 the total expenses $35.168,666. The expenses of 

 the Canadian Pacific Railway were $12,198,992, and 

 its train mileage 14,364,299. The expenses of the 

 Grand Trunk Railway were $11,363,569, and its 

 train mileage 16,237,314. The capital invested in 

 Canadian railways was $921,858,232, an increase of 

 $22,000,000 in the year. The mileage in operation 

 at the end of 1897 was 16,550. During the year 807 



Eersons were injured by accidents, and 213 were 

 illed. The increase in Government and munici- 

 pal railway bonuses in 1897 was $3,131,830. 



The following particulars indicate the work of 

 the Government lines during the year, including 

 the Intercolonial, the Prince Edward Island Rail- 

 way, and the Windsor branch of the Intercolonial. 

 These lines have a total length of 1,388 miles. On 

 the Intercolonial 1,145 miles were in operation, 

 earning $2.866,028.02, with working expenses of 

 $2,925,968.67. During the year there was an addi- 

 tion of $149,112.62 to the capital account expendi- 

 ture, making a total chargeable to capital on the 

 whole road as amalgamated of $55,416,157.15. For 

 increased accommodation at Halifax there was 

 $22,274.97; for the branch from Windsor Junction 

 to Dartmouth. $37,206.44; for increased accommo- 

 dation at Moncton, $29,877.32; and for rolling 

 stock, $14.996.04. Passenger traffic earnings were 

 $979,005.57, an increase of $7,579.31 ; freight traf- 

 fic. $1,687,050.42. a decrease of $101,762.76; mail 

 and express produced $199,972.03, an increase of 

 $2,571.37. The earnings per mile were $2,503.08. a 

 decrease of $86.80. The Windsor branch, 32 miles, 

 extending from Windsor Junction to "Windsor, 

 Nova Scotia, is operated by the Dominion Atlantic 

 Railway Company, which pays all charges to traffic 

 workings, being allowed two thirds of the gross earn- 

 ings, the Government taking the remaining third 

 and assuming all cost of maintenance. This agree- 

 ment was made in December, 1892, and extends for 

 a further term of twenty-one years. The Govern- 

 ment earnings amounted to $40,603.23, an increase 

 of $4.041.40. Maintenance expenses amounted to 

 $10,821.04, a decrease of $5.655.42, leaving a balance 

 of profit of $29,782.19 in favor of the Government. 

 Prince Edward Island Railway is 2ll miles long. 

 The total cost of road and equipment chargeable to 

 capital account was $3,750,565.38. The gross earn- 

 ings for the year amounted to $153,443.13, an in- 

 crease of $6,!)!)6.50. The working expenses were 

 1240,489.90, the overexpenditure being $87,046.77. 

 The Prince Edward Island Railway carried 121,498 

 passengers, a decrease of 1,088. The freight carried 

 \va< 52,151 tons, an increase of 5.756. Passenger 

 receipts were $62,695.07; freight, $69,872.66; mails, 



express, etc., $20,875.40. The Government also 

 operated the Baie des Chaleurs Railway in Quebec 

 during the winter of 1896-'97, the results from De- 

 cember to May showing an expenditure of $18,- 

 679.97 ; and gross earnings of $6,725.08. The road 

 was transferred back to the company on May 31, 

 1897. 



Militia and Defense. The total expenditure of 

 this department for the year ending Dec. 31, 1897, 

 was $2,407,050. Of this 'total, the chief items were 

 as follow : Pay of staff, permanent corps and active 

 militia, including allowances, $358,397 ; annual drill 

 of the militia. $430,165; salaries and wages of civil 

 employees, $67,868 ; military properties, works, and 

 buildings, $108,092 ; warlike and other stores, $39,- 

 666; clothing and necessaries, $232,166; provisions, 

 supplies, and remounts, $115,899; transport ami 

 freight, $43,998 ; grants in aid of artillery and rifle 

 associations, and bands and military institutes, $34,- 

 950; Royal Military College of Canada, $59,616; 

 Dominion cartridge factory, including free ammu- 

 nition for rifle-league competitions. $58,492; de- 

 fenses, Esquimault, British Columbia, Dominion 

 contribution toward capital expenditure for works 

 and buildings, and pay and allowances of a detach- 

 ment of Royal Marine Artillery or Royal Engineers, 

 $45,119; capital account arms, ammunition, and 

 defenses, $745,964. 



During the year Lee-Enfield rifles were issued to 

 all the city battalions, and also to the rural battalions 

 as they were able to provide suitable armories. A 

 representative contingent of 200 men of the militia 

 was sent to England to represent the force at the 

 Queen's diamond jubilee, and medals were granted 

 by the Imperial Government to those who took part 

 in quelling the Fenian raid troubles of 1866 and in 

 the Red river expedition of 1870. Another im- 

 portant step was taken in the arrangement by the 

 Imperial and Canadian governments for the inter- 

 change between England and Canada of some com- 

 panies of the regular army forces respectively an 

 experiment which was found to be successful and 

 is to be extended. Lieut.-Gen. A. G. Montgomery- 

 Moore was succeeded in command of the imperial 

 forces in Canada by Lieut.-Gen. Lord William Sey- 

 mour, and Major-Gen. Gascoigne in command of. 

 the militia by Major-Gen. E. T. H. Button, C. B. In 

 August, by arrangement between the Imperial and 

 colonial governments, a royal commission, com- 

 posed of Major-Gen. Leech, C. B., Lieut.-Col. Dalton, 

 Royal Engineers, Capt. White, R. N., and Col. Lake, 

 Quartermaster General of Canada, was appointed to 

 inquire and report upon the defenses of Canada, 

 and as to what might be done to improve the posi- 

 tion of affairs locally, and bring about a closer con- 

 nection between the British and Canadian forces. 



Postal Service. The progress in this depart- 

 ment of the Government during the years 1897-'98 

 was very pronounced under the new Postmaster- 

 General, the Hon. William Mulock. When he took 

 office, July 13, 1896, the Post Office Department was 

 conducted at an annual loss of $781,152. In the 

 first year of his administration he reduced the defi- 

 cit to $586,539, and now but $46,000 of it remains, 

 so that there has been a total reduction in less than 

 two years of $734,513. New offices have been 

 opened, many of them in remote parts of the coun- 

 try, and in other places a more frequent service has 

 been given. The railway mail service has been re- 

 organized and placed under a controller. The 

 public interest has been served by the decentraliza- 

 tion of the dead-letter office, a measure which also 

 enabled the staff to be reduced by 14. A postal-note 

 system has recently gone into operation. The num- 

 ber of miles of daily travel in June, 1897, was 312 

 greater than in June. 1896, while the cost was less. 

 During the year ending June 30, 1897, mail con- 



