The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-11
OFFER TO The G. .T.P.
That of the Dominion Government
to Grand Trunk Something -
, 9 Remarkable.
It Brings Out Storm of Protest
Called a wild Filibustering
"~s Scheme"

The proposition made to the Grand
Trunk Pacific by the Dominion of Canada
Is most remarkable from a railroad stand
point. 1t may be outlined very briefly as
follows: L.
The Dominion government will build railroad
and lease it to the Grand Trunk for fifty years;
The first Ave years will be rent free. tn esec-
ond five years the government will receive
government Will receive 3 per cent on the actual
cost; at the end of the fifty years other. ar
The Grand Trunk will build from Winnipeg to
the Pacific coast the government guaranteeing
bonds of the prairie section up to $4,000 per
mile, and Of the mountain section up to 100000.
per mile. 80. -:
The government will reserve the right to grant
running rights the lines to any other. rail-
roads that 1t pleases. and to make rates ON the
railroad at any time within the fifty years. :,
So far as possible Canadian material must be
used in the construction of the entire system
from ocean to ocean, and in the equipment OF
the line.
No provision is made for any cash or land
bonus.
This agreement, published prematurely
by the government official organ, has Gre
ated a storm of protest from the oppost-
Star calling it wild f1libustering
scheme and conn., pairing 1t to the final
plunge of. the gambler
A close study Of the terms Of this
agreement shows that the annual cost to
the country, If all plans are carried out
successfully, will be about $4,000, 900 per
annun for the first five years. and pos
sibly. little less than that sum for the
second five years. The assumption that
ali the plans as outlined will go thru sue
cessfully Is a rather daring one, particu-
larly as the credit. Of the government at
the present time does not stand as high
as the credit of Great Britain or the
VIA ~ 1~1> %1ns IT, -,
sumed that a 4 per cent guaranteed bond
would net par, tho probably It would sell
a little higher than that figure :;
The part of the road that Is to be built
by the government Is estimated to cost
s45, 100000. This amount Of money at 4
per cent will cost the country $1,soo,000
per annum.
The guaranteed, bonds on the prairie
section will amount to about $4,000, 900,
entailing an annual expenditure Of $780,
900 in interest.
The guaranteed bonds on the mountain
section will aggregate s15,000,0o0, with
an annual interest payment Of 100000.
Since it is not reasonable to suppose
that railroad of which the first tie has
not yet been laid will, ever pay anything
at all within five years, 1t is manifest
that the annual cost to the country for
that period at least will be $2,S00,000. It
rs not at all likely that within ten years
this transcontinental line thru new and
undeveloped territory will do anything
more than pay expenses, so 1t may be as
sumed that the expense will continue for
| ten years. This would make the total
| cash payment Of the Dominion to Grand
| Trunk Pacific SO, 900, 900.
Comparing this practical subsidy with
| the subsidies paid by the government to
| Canadian Pacific, 1t would appear that
| Canada would get its new transcontinental
| line very cheap If 1t got it on these terms.
| There is good reason to doubt, however,
that either the Dominion government or
| anyone else can build f1rst-class trunk
line railroad thru the territory lying be-
| tween Quebec and Winnipeg at $50, 900 per
mile This is about the figure usually
allowed as a minimum expense for build
| ing trunk lines thru prairie countries.