482 



NEWFOUNDLAND. 



the acceptance of the contract it was provided that 

 the whole railway system of the colony should be 

 leased to Mr. Reid for fifty years on condition that 

 he should maintain and operate the lines and pay to 

 the Government $1,000,0<X) within a year. At the 

 end of that period, the railways were to become his 

 sole property. In payment for operating and 

 maintaining the lines Mr. Reid agreed to accept 

 2,500 acres of land for each mile of railway operated. 

 By the original contract he became entitled to 

 5,000 acres for each mile of railway, so that, in all 

 he received 7,500 acres per mile. These lands were 

 to be selected along the line in alternate blocks, the 

 Government retaining the same quantity as that 

 given to Mr. Reid, in equal blocks. Thus Mr. Reid 

 became a landed proprietor to the extent of about 

 4,000,000 acres. 



The advantages of such a contract to the colony 

 are very great. It was at once relieved of an an- 

 nual expenditure of $250,000 for operating, and 

 received in hand $1,000,000, which, if placed at 

 compound interest, would in fifty years become 

 $7,000,000. The total cost of the railway was about 

 $14.000,000. The lands given to Mr. Reid are in a 

 wilderness, and are of no value to the colony. Mr. 

 Reid can only render them valuable by settlement 

 and by working the forests and mines, thus giving 

 employment to large numbers and indirectly in- 

 creasing the revenue and adding to the population. 

 The railway never could become a source of reve- 

 nue, its object being to open up the country. So 

 popular was the contract that 28 members of the 

 House of Assembly out of a total of 36 voted for it, 

 and the Upper Chamber was unanimous in its favor. 

 Mr. Reid s contract with the Government is not 

 confined to the operation of the railway. He agrees 

 to take over and operate the Government telegraph 

 system, the Government paying $10,000 per annum 

 till 1904, when the Anglo-American Telegraph's 

 monopoly terminates. Then the contractor will 

 operate the lines free of subsidy. By this arrange- 

 ment the Government will save $10,000 per annum 

 for the next six years. Further, the contractor 

 agrees to provide 8 steamers for an improved mail 

 service, or which one will connect Port-au-Basque 

 with Sydney ; another will ply between St. John's 

 and Labrador ; and the remaining 6 will ply on 

 the large bays, and will connect with the railway at 

 various points. The steamer "Bruce" alone cost 

 $250.000, the cost of the other 7 will be more than 

 $750,000, while at the same time the mail subsidies 

 will be reduced. The contract is for thirty years. 

 Another part of the contract is the purchase of 

 the dry dock in St. John's, from the Government, 

 for $350,000, the contractor to operate it and keep 

 it in repair. Here again the colony effects a great 

 saving, as the dock showed an annual deficit of 

 more than $6,000 ; while at the same time Mr. Reid 

 will provide a superior staff of workmen, so as to 

 be able to effect permanent repairs on the largest 

 ocean steamers. 



Other sections of this gigantic contract provide 

 for the construction of a branch railway and the 

 working of certain coal areas ; also for the construc- 

 tion of an electric railway through the city of St. 

 John's. 



Legislation. The other acts of the session were 

 mainly devoted to the improvement and enlarge- 

 ment of the civil service. A Department of Marine 

 and Fisheries, a Department of Justice, one of 

 Finance and Customs, one of Agriculture and 

 Mines, and a Department of Public Works were 

 all instituted by separate acts; and amendments 

 were made in the acts relating to slander and per- 

 jury, to the education and elections acts, and to the 

 constitution of the Supreme Court. Altogether, the 

 session was most prolific, and effected great and im- 



portant changes. A stringent law regulating the 

 seal fishery was passed, which enacts that no steamer 

 shall leave for the seal fishery till 8 o'clock of the 

 10th of March ; that no seals shall be killed till the 

 12th of March, or after the 1st of May, under a 

 penalty of $4,000. No second trips are allowed, ex- 

 cept in case of accident. No more than 3 men for 

 every 7 tons gross register shall be allowed to any 

 steamer. A bounty was allowed to sailing vessels 

 engaged in the seal fishery. 



Fisheries. In 1898 the bank fishery employed 

 66 vessels having a tonnage of 3,684 tons ; the av- 

 erage catch per schooner was 890 quintals ; the 

 number of men employed was 872 ; and the codfish 

 caught, 58,762 quintals. 



The seal fishery of 1898 was fairly successful. 

 Nineteen steamers having a tonnage of 5,720 tons, 

 and crews numbering 4,838 men, engaged in the 

 fishery. The number of seals taken was 243,014 ; 

 the average value per seal $2.50. 



The export of dried codfish (1897-'98) was 1,145,- 

 540 quintals value, $3.230,928. The export of her- 

 ring (pickled and frozen) was 62,155 barrels value. 

 $102,447. The export of lobsters (preserved) was 

 2,973.648 pounds value, $619,510. The value of 

 common cod oil exported in 1897-'98 was $185,704 ; 

 of refined cod-liver oil, $14,480. The value of seal 

 oil exported was $218,279; of sealskins, $129,840. 

 The total value of the fishery products was $4,571,- 

 808. The value of pickled salmon exported was 

 $61,312. 



Mining. The year 1898 witnessed a wonderful 

 development of mining, proving that the island is 

 destined to become one of the great mining regions 

 of the world. Iron ore has been discovered recently 

 in immense masses and of the best quality. The 

 iron mine at Belle Isle, Conception Bay, exported 

 100,000 tons in 1898. It has been purchased lately 

 by a syndicate for $1,000,000. A later and more 

 important discovery has been made in the Bay-de- 

 Verd district of a vein of iron ore 16 miles long, 

 estimated by experts to contain 50,000,000 tons. 

 The ore averages 65 per cent, of pure iron equal 

 to the Lake Superior iron ore. An English syndi- 

 cate has leased the property and is now working it. 

 At Ochre Pit Cove another iron mine has been dis- 

 covered still more recently which is said to equal 

 the former. Many other iron deposits are reported, 

 all going to show that Newfoundland is likely to 

 become a great iron-producing country. 



Several new copper deposits have been reported 

 lately. Owing to the increased demand for copper 

 for electrical purposes, the price has advanced 30 to 

 40 per cent. 



Coal mining at Grand Lake is making good pro- 

 gress under Mr. Reid's contract. 



The value of copper exports in 1898 was $401,332 ; 

 of iron pyrites, $78,620. Asbestos and mica are 

 among the other minerals which are likely to prove 

 valuable. The attention of English and American 

 mining capitalists has been drawn lately to the 

 mining capabilities of the island, and mining o- 

 perts were sent from England to conduct prospfd- 

 mg operations. 



Paper Pulp. Another new industry has been 

 introduced, and gives promise of rapid extension 

 namely, the manufacture of pulp for paper making. 

 The materials for such an industry are inexhaust- 

 ible, and the quality of the wood is reported to le 

 of the best. One pulp factory has been in operation 

 at Black River, Placentia Bay, for two years, wit h 

 great success. Mr. Reid is about to build a pulp 

 factory on a large scale at Grand Lake. The capi- 

 tal is to be $2,000,000, and it will be in operation 

 before the end of this year. He is also to work an 

 iron-pyrites mine at Bay of Islands, the capital to 

 be $1,000,000. From iron pyrites is made sulphur c 



