ship Service had been started with the Prince Rupert, the Prince Albert and the Prince George as its first vessels. They had a tonnage of 2,850 each and were constructed at Newcastle-on-Tyne with all latest improvements. They were established on the routes between Vancouver and Prince Rupert, Seattle and the Canadian Coast Cities, the Islands and the Coast. A legal case involving the sale of 1,000 lots in Prince Rupert and a dispute between the Company and an English Syndicate resulted in judgment for the former in the Provincial Supreme Court on July 4; Mr. H. R. Charlton, Advertising Agent of the Railway, had' an original exhibit and special building at the Brussels International Exposition of 1910; a loan of £4,270,500 was floated in London during the year. This Western part of the Railway was under construction by the Grand Trunk Pacific Co. with Government guarantee of bonds; the Eastern Section was, meantime, being built for them by the Government's National Trans-continental Commission with a practically permanent lease to the Company in the future. The expenditure to Mch. 31st, 1910, on this Eastern Division was $19,968,126 for the year and $71,918,843 the total to date; the grading done was 1,106 miles and track-laying 813 miles; the contracts awarded for steel superstructures and bridges made up 38,984 tons; the Commissioners were W. S. Calvert, C. F. McIsaac, C. A. Young and S. N. Parent (Chairman). The political issues involved in this construction are dealt with elsewhere; so with the varied questions of total ultimate cost of the entire Railway. Excluding terminals the 1910 Government estimate of cost for this Eastern Division was $123,826,000. During the year expenditures on the New Brunswick part of the Line reached a total of $15,000,000 and a block of land was acquired at Courtenay Bay, St. John, for terminal facilities; in Northern Ontario construction was steadily sweeping through the rich areas of the "Clay Belt"; at Quebec it was announced that important workshops of the Railway would be located in that City and a great Tourist hotel erected; in Parliament and in the Conservative press it was claimed that the proposed terminal facilities at Providence, R.I., would seriously affect St. John to which Mr. Hays replied that it was their intention to make St. John one of the best-equipped ports on the Atlantic. The appointments on the G. T. R. and G. T. P. during the year were as follows-the change in the Presidency of the Grand Trunk having been announced in 1909 and dealt with in that volume: Chairman, Board of Directors, G.T.R..... Alfred W. Smithers. 1st Vice-President, G.T.R.. 2nd Vice-President, G.T.R. London. London. Charles Melville Hays. .Montreal. Montreal, Montreal. M. M. Reynolds.. Montreal. Montreal, Montreal. Prince Rupert. 3rd Vice-President, G.T.R. Assistant to President, G.T.R. Assistant to 1st Vice-President, G.T.R. .. D. Crombie Progress of the Canadian Northern and MackenzieMann Interests These great Railway interests initiated, organized and controlled by the two men who in a succeeding year became known as Sir William Mackenzie and Sir D. D. Mann made marked strides during 1910. Since 1903 the operated mileage of the Canadian Northern proper had increased from 1,276 to 3,179 and was being added to monthly, the gross earnings had grown from $2,449,000 to $13,833,000, the enterprise was well on its way to the fulfilment of what had seemed a few years before a dream-the transcontinental stage. To the Winnipeg Free Press on June 20 Mr. Mackenzie said that July 1st, 1914, had been fixed on as the date of opening a through Line from Montreal to the Pacific Ocean. Another and a basic phaze of progress was intimated in a statement by H. W. Harding, Secretary of the Company in London, on Aug. 23rd; "When I was appointed here a little over 32 years ago, about 2,000 people in Britain held two and a half million pounds of Canadian Northern Railway debentures. Now fully 35,000 people in the Old Land hold, among them, 14 million pounds of these debentures." During this year the C. N. R., in some of its many developments, was building through British Columbia and Alberta and Saskatchewan; carrying 35 per cent., at least, of the grain marketed from the West; arranging these new Lines so as to serve the projected Hudson's Bay bread-route to Britain as well as the Lake Superior and St. Lawrence waterways; carrying the product of Port Arthur lumber mills, of its own great iron-industry at Port Arthur, of the coal beds of Alberta, of the Moose Mountain iron mines and of Sudbury nickel deposits in Ontario, as well as of the wheat-fields of the Prairies. Tenders were invited on June 1 for the construction of the Canadian Northern Pacific from New Westminster eastward for 60 miles; construction of Mr. Mann's Portland Canal Short Line (16 miles) to Stewart was underway at this time and it was said would run on through a short strip of United States territory to another mining field on the Salmon River where Mackenzie and Mann, Ltd., had properties under bond and that this would, in time, probably pass through the Mountains, connect with the rich Cassiar and Omenica Districts and thence join the main line; in June arrangements were completed with the British Columbia Government as to construction through that Province of the C. N. R. Line* running 600 miles from Alberta's boundary to the Coast and thence across Vancouver Island, with Government guarantees of $35,000 a mile; Branch lines were spoken of and discussed between the Provincial Premier and Mr. Mann which would run into the Okanagan and Kootenay regions though no decision was announced; in September tenders were called for construction of the NOTE.-For full details see Section dealing with British Columbia, pages first 30 miles of the Vancouver Island Line; preparations were underway at this time for building terminals and creating an industrial centre at Port Mann, the new townsite opposite New Westminster. To the Victoria Colonist on Sept. 7th Mr. Mackenzie said: It is our intention to link Edmonton and the Pacific Coast with all possible despatch consistent with building a standard line having the lowest gradients of any transcontinental railway. If any delay occurs it will not be our fault. We are getting in shape to let additional contracts this fall in addition to the contract lately awarded for the sixtymile section from Port Mann to Chilliwack. The work can be attacked at various strategical points on both sides of Kamloops as well as in the Fraser River valley and in Fraser River canyon. We are also pushing construction of the main line west of Edmonton and should reach Yellowhead Pass at the summit of the Rockies, from the prairies, before the end of next year. There at present exist no reasons why we should not have the British Columbia end finished and in operation before the middle of 1914. The building of the Vancouver Island section will also be undertaken without any further delay. Early in the year the Canadian Northern Alberta Railway obtained assistance from the Dominion Government in its construction from a point at or near Edmonton or Strathcona, thence in a generally western direction to the coal areas situated at or near the Brazeau River and the headwaters of the McLeod River, for a distance not exceeding 150 miles, by a Guarantee of the principal and interest of the bonds, debentures, debenture stock, or other securities of the Company to the extent of $13,000 per mile for the first 50 miles of the Line and for the remainder of it to the amount of $25,000 per mile the interest to be at the rate of 312 per cent. per annum, payable half-yearly and the principal to be payable in 50 years. This Guarantee and arrangement cancelled the authorized aid to the Edmonton, Yukon and Pacific Railway project of which the Charter was held by Mackenzie and Mann. Everywhere the same activity and enterprise was apparent in connection with the C. N. R. and its operations. It must be said in passing that it is impossible to separate in such a record as this the plans and work of Mackenzie and Mann, Ltd., contractors and associates in a multitude of undertakings, from the interests of the Canadian Northern-with whose progress indeed all such enterprises were practically, if not technically, bound up. On Apl. 30 Mr. D. B. Hanna, the 3rd Vice-President of the System, whose directing energies filled an important place in its work, stated that terminals would have to be shortly built in Montreal involving an expenditure of perhaps $4,000,000 and that it was intended to have a fleet of at least three fast steel freight boats to connect with the vessels of their Atlantic service; in January Messrs. Mackenzie and Mann had acquired control of the Dunsmuir Coal properties on Vancouver Island at a cost of $11,000,000, announced an immediate expenditure on develop ment and re-equipment of $3,000,000 more, and later in the year had a dispute with Mr. Dunsmuir involving another million; the building of the Canadian Northern Alberta to Brazeau was apparently connected with the purchase by Mackenzie and Mannassociated with German and British capitalists of the Brazeau coal-fields costing some $10,000,000 and containing large deposits of soft-coal of high grade; the Western Lumber Co., Ltd., purchasing, in this year, the great Chemainus Mills on the Fraser, in British Columbia, was another subsidiary enterprise with Messrs. William Mackenzie and D. D. Mann and D. B. Hanna as Directors with A. D. Davidson-an associate in various Western plans as President, and an issue in London of £1,500,000 of stock in May. It was announced on May 26 that Ottawa was to be on the route of the Montreal-Toronto Line of the C. N. R. and plans were duly filed with the Department at Ottawa. On June 18, and for the first time, Canadian Northern common stock was quoted on the Toronto Stock Exchange-at 9612-and it was quietly intimated that one-third of the 5 per cent. income charge convertable debenture Stock, or $5,000,000 worth, was available for the Canadian investor. On July 15 it was announced that the C. N. R. had acquired control of 200 miles of standard gauge railway in eastern Ontario for feeders to its main-line between Toronto and Montreal-the Irondale and Bancroft Ottawa Railway, Marmora Railway and Mining Co., the Central Ontario Railway and the Brockville, Westport and Northwestern Railway Co., the Central Ontario Railway. These Lines would give the C. N. R. connection with Trenton and Picton on the south, and north as far as Maynooth, construction was underway to join the northerly line of the Grand Trunk at Whitney and the Brockville and Westport gave access to Brockville and the St. Lawrence traffic. On Aug. 23rd it was announced that Mackenzie and Mann had acquired options on 4,000 acres of iron-ore lands at Grand Rapids on the Mattagami River in Northern Ontario. About the same time the Canadian Power and Pulp Co. was incorporated at Ottawa with headquarters in Toronto, $10,000,000 capital and F. H. Phippen, K.c., the C. N. R. Chief Solicitor as an incorporator. Mr. Mackenzie, in this connection, stated in Toronto on Sept. 29th that large works for the manufacture of paper, pulp and carbide would be erected on the Saugenay River near Lake St. John and on the line of the C. N. R.'s subsidiary railway to Quebec. Arrangements were concluded, also, in this month, by which the C. P. R. permitted the Canadian Northern in Alberta to run through its famous irrigation lands into Calgary. As to the Hudson's Bay Line Mr. Mackenzie said to the Winnipeg Free Press on Sept. 11th: "We hope the Government will listen to our representations in the matter. We have built the line from Hudson's Bay Junction to the Pas Mission, and if the Government were not taking action, we would continue the line to the Bay. We hope, therefore, that we may have the opportunity of operating the road to the Bay." On the 23rd of this month Messrs. Mackenzie, Mann and W. H. Moore, held a conference with the Minister of Railways at Ottawa and discussed various pending matters amongst them the Hudson's Bay line. During the year a sustained effort was made to promote immigration and a Department of the Railway was organized on Oct. 1st with Thomas Howell, late of the Salvation Army immigration work as its chief. Far away on the Pacific Coast, in October, representatives of Mackenzie and Mann purchased the holdings of the Pacific Whaling Co. with large operations contemplated in whale and halibut fishing and with freezing plants to be erected at points in the Queen Charlotte Islands; strong efforts were made in the autumn by Northern Ontario residents to get construction of the C. N. R. from Parry Sound to North Bay and the rapid construction of the line from Key Harbour to North Bay; efforts were made by Mackenzie and Mann and their New York associates to further develop their iron industry at Moose Mountain and it was decided in November to instal a new process and plant for refining purposes with headquarters in Sellwood, Ont.-involving a finished iron product of 2,500 tons a day. After some controversy with the G. T. P. as to its route north of Edmonton the Minister of Railways, finally, on Nov. 2nd, approved a line which was, however, to avoid the townsites of the former Line; at this time, also, the Alberta Legislature gave the C. N. R. power to construct a railway from Edmonton through the Peace River country to the Yukon; on Dec. 9th Mr. Mackenzie discussed with the Ontario Minister of Lands and Forests the question of utilizing in some way the great pulp limits and water powers of the Nepigon Forest Reserve, near to which the C. N. R. Ontario was to run; satisfactory arrangements were made during the year with the City of Brandon, Manitoba, for the erection of a large C. N. R. hotel; in Toronto Mr. Mann acquired control for a time -as to which a dispute afterwards occurred-of an extraordinary process invention by Dr. J. S. Island for the chemical conversion, under great heat, followed by immediate distribution, of ore into its constituent minerals; in Regina it was understood that the C. N. R. would make that place a Divisional point and erect a Union Station with the G. T. P.; in Winnipeg the great Union Station of the same two lines approached completion under C. N. R. construction; Quebec City hoped for the workshops of the C. N. Q. Railway as a result of the settlement of its difficulties with the bond-holders of the Quebec and Lake St. John Line. On Sept. 5th Mr. Mann issued a denial of the allegations of W. D. Lighthall, K.C., as to the C. N. R. having used unfair influence in various municipalities and declared that all such franchises were secured by open purchase; a handsome C. N. R. Hotel was |