The evening times., 1898-08-20
A COLONIAL BOSS.
The Newfor.alana CEar Reid ans
Ais Properties.

hAp 6IOVcEt1eb.
1t is not long since The Times published
an account of some Of the concessions a
wealthy speculator and manager named
Reid had obtained in Newfoundland.
which has made many attempts to have
itself annexed to Canada. In the New
York Sun Is a lsuccinct history Of Reds
dealings. including some later achieve
ments, as follows:
''The details Of the transaction. by vir-
tue Of which a private individual seems
likely to become the virtual dictator Of
an island nearly equal in area to the
State of New York, have been lately COM
municated to the London Daily News by
Sir James Winter, the premier of the
colony.
Newfoundland, discovered by John Ca
bot in 1897. and. consequently. the most
ancient of England's colonial possessions.
contains about 1000 square miles. or up
ward of 25,00O.0Oo acres. Three-twentieths
of this superficies. or 3.75O.Oo0 acres. have
been conveyed in fee simple to the indi-
vidual whom the islanders designate as
Gar Reid. Enormous as is the tract OF
land thus alienated. Sir James Winter de-
tends the transaction and maintains that
the colony will profit by it. He points
out that the part of the Newfoundland
railway system which was operated by
the colonial government has been hither-
to worked at an annual loss OF some
$l75, 900. A proposal to relieve the treas
ury from this burden was made by Mr.
Reid five years ago. He then undertook
to run the railway on his own account
in return for a grant Of 2.5oo.O0o acres OF
land, half thereof to be situated on one
side of the road and half on the other.
The colonial government accepted tne
suggested arrangement, with the stipuia-
tion that Mr.. Reid's lands should be taken
in alternate sections. By reserving to IT
self the other sections. the colony wouia
reap half of the benefit from tne expected
appreciation in land values.
such was the situation at the END OF
1897. in 1897 Mr. Reid further offered 10
work at his own cost for fifty years. that
mart of the Newfoundland railway sys-
tenn which had been in the hands OF an
American company. then bankrupt For
this additional service his land grant was
to be increased by 1.250.00O acres, making
the total. as we have said, 3.75O.0oo. Sub
seouently, for a million dollars in cash.
Mr.. Reid bought the right to purchase
the reyersion of the last mentioned line al
the end of the fifty years during which
he was to run 1t.
1T Is not only as a railway King that
this capitalist figures In Newfoundiaho.
Sir James Winter says that MI Reid mas
also taken over the dry dock of ST. Johns
and part of the telegraph system OF the
island. The dry dock at ST. Johns. 1t
r~,,lr l,x,t no colonial GOVERN
ment in 1888, at a cost Of 100000: desfr-
ing to place his railway terminus at
point most convenient for transhipment
Mr.. Reid proposed to buy the dock, and
the government, which had hitherto OBJ
tanned less than 2 per cent on Its Invest
ment. sold 1t to him for ss25. 900. At that
time the government telegraph lines were
worked at an annual loss Of from fifteen
to twenty! thousand dollars, and Mr.. Reid
again came to the rescue of the colonial
authorities He agreed that il the gov
ernment would give him a subsidy of no.
900 per annum he would work the lines
for seven years at his own cost. and that
at the end of the septennial period he
would work them for fifty-three years
without any subsidy at all. further cove
nanting to reduce the rates by so per cent.
What the telegraph plant had cost the
government is not stated. but Mr.. Reid
acquired 1t for S1250Oo. In a word, accord
ing to Sir James Winter. the colonial gov
ernment had been relieved. by its bargain
with Mr.. Reid, of an annual loss ap-
preaching &2p. .009 and can look forward
to large expansion of its financial re-
sources through the rise in value of the
reserved alternate sections adjoining the
railway lines.
'It is hard to see how these transac-
tons. questionable as may be the power
which they confer upon a single citizen.
can be annulied. The right of the colo
NAL government TO enter into them seems
indisputable. The fact will be recalled
that Newfoundland has no political con-
nection with the Dominion of Canada.
but still remains an isolated British COLO
ny, dependent directly on the crown. A
constitution and representative govern
ment were granted TO the island in 1872
and responsible government was conced-
ed in 1855. OF the two legislative cham
bers. one. the house of assembly. is
elected while the members Of the other,
the legislative council. are nominated by
the governor in council. A measure which
has been passed by both branches of the
legislature O,d approved by the govern
or. becomes the law of the land; such Is
the status of the grants and contracts
acquired by Mr.. Reid. 1t remains to be
seen whether he has capital enough to
fulfill his obligations. and to carry out
the proposed extensions of the railways.
'In 1880 the colonial executive was au-
thorized by the legislature to raise a loan
of s. 900 900. for the purpose of construct
ing a railway from st. Johns to Halls
Bay, the center of the mining region with
branches to Brigus, Harbor Grace and
Carbonear, the whole length to be $40
traverse the great valleys of the Gander
and Exploits Rivers, and will afford ac-
cess to the finest agricultural and timber
lands. In 1852 charter was granted to
The Great American and European Short
Line Railway Company to construct an
other line to run from Cape Ray. at the
extreme southwestern angle of the ISL
and. to a point on the eastern coast dis
tant from valentia. ireland. only about
1000 miles. The company's intention was
to shorten the route between Newfound-
land and America by crossing Newfound-
land. between which and Ireland swift
steamers were to ply. while a steam fer
ryboat would transport passengers be-
tween Cape Ray and Cape North on the
island Of Cape Breton. where the railway
system Of Canada would be reached. This
Is one Of the. charters which have fallen
into the hands OF Mr.. Reid, and. If the
plans of the original owners should be
carried ONT by him, 1t is computed that
the voyage across the Atlantic might be
shortened by about two days.
Cost sof Running New York.
Grom the New York SUM-
The general tax rate on real and personal Drop
erty for city and county purposes is fixed at
sol on the 800 assessed valuation. reduc-
tion of nine points from the rate of 1897 The
rate Of special tax on generations Is fixed at