An Act respecting the construction of "The Intercolonial Railway"

WHEREAS the Provinces of Canada, Nova Scotia and New Brunswick joined in a declaration that the construction of the Intercolonial Railway is essential to the consolidation of the Union of British North America, and to the assent thereto of Nova Scotia arid New Brunswick ; and consequently agreed that provision should be made for its immediate construction by the Government of the Dominion of Canada ; and whereas in order to give effect to that Agreement it was declared by the one hundred and forty-fifth section of the Imperial Act, known as The British North America Act, 1867, that it should be the duty of the Government and Parliament of Canada, to provide for the commencement within six months after the Union, of a Railway connecting the River Saint Lawrence with the City of Halifax in Nova Scotia, and for the construction thereof without intermission, and the completion thereof with all practicable speed ; And whereas, the Imperial Act known as The Canada Railway Loan Act 1867, authorizes the guarantee by the Imperial Government of the interest on a loan to be raised by Canada towards the construction of the Intercolonial Railway, connecting the Port of Rivière du Loup in the Province of Quebec, with the line of Railway leading from the City of Halifax in the Province of Nova Scotia, at or near the Town of Truro, on certain conditions therein mentioned : Therefore, in fulfilment of the duty imposed on the Government and Parliament of Canada as aforesaid, and in order to the raising of the said loan, so to be guaranteed as aforesaid, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows :

Termini of Railway

1. There shall be a Railway constructed, connecting the Port of Rivière du Loup before mentioned, with the line of Railway leading from the said City of Halifax, at or near the said Town of Truro,

Its name.

and such Railway shall be styled and known as " The Intercolonial Railway."

To be a public work

2. The said Railway shall be a public work belonging to the Dominion of Canada ;

Guage and grades, &c

and shall be made with a guage of five feet six inches, and on such grades, in such places, in such manner, with such materials and on such specifications as the Governor in Council shall determine and appoint as best adapted to the general interests of the Dominion.

To be constructed and managed by Commissioners

3. The construction of the Railway and its management until completed shall he under the charge of four Commissioners, to be appointed by the Governor, who shall hold office during pleasure.

Appointment of Chief Engineer

4. The Governor shall and may appoint a Chief Engineer, to hold office during pleasure, who, under the instructions he may receive from the Commissioners, shall have the general superintendence of the works to be constructed under this Act.

Appointment o other officers &c

5. The Commissioners shall and may appoint and employ a Secretary, such Engineers (under the Chief Engineer) and such Surveyors and other officers, and also such agents, servants and workmen as in their discretion they may deem necessary and proper for the execution of the powers and duties vested in the said Commissioners by virtue of this Act.

Powers of Commissioners

6. The Commissioners shall have full power and authority by themselves, their Engineers, agents, workmen, servants, contractors and the servants and workmen of such contractors—

To explore

(1) To explore and survey the Country lying between Rivière du Loup and Truro ;

To enter on lands

(2) And for that purpose to enter into and upon any public lands or the lands of any Corporation or person whatsoever ;

To fix the site of road

(3) To make surveys, examinations or other arrangements on such lands necessary for fixing the site of the Railway, and to set out and ascertain such parts of the lands as shall be necessary' and proper for the Railway ;

To fell timber

(4) And to fell orremove any trees standing in any woods, lands or forests where the Railway shall pass, to the distance of four rods from either side thereof.

To take possession of lands

7. The Commissioners are further authorized to enter upon and take possession of any lands required for the purposes of the Railway, and they shall lay off the same by metes and bounds, and deposit of record a description and plan thereof in the office for the Registry of Deeds for the County or Registration Division in which the lands are situate, and such deposit shall operate as a dedication to the public of such lands, which shall be thereupon vested in the Crown.

To use adjasent lands

8. The Commissioners or Contractors may enter with workmen, carts, carriages and horses, upon any lands, and deposit thereon soil, earth, gravel, trees, bushes, logs, poles, brushwood or other material found on the line of Railway or works connected therewith, or for the purpose of digging up, quarrying and carrying away earth, stones, gravel, or other material, and cutting down and carrying away trees, bushes, logs, poles and brushwood therefrom for the making and preparing of such Railway.

To perform all necessary works

9. It shall be lawful for the Commissioners to make or construct in, upon, across, under or over any land, streets, hills, valleys, roads, railways or tramroads, canals, rivers, brooks, streams, lakes or other waters, such temporary or permanent inclined planes, embankments, cuttings, aqueducts, bridges, roads, ways, passages, conduits, drains, piers, arches or other works as they may think proper.

May alter the courses of rivers

10. They may alter the course of any river, canal, brook, stream or water course, and may divert or alter as well temporarily as permanently the course of any such rivers, streams of water, roads, streets or ways, or raise or sink the level of the same, in order to carry them over or under, on the level of, or by the side of, the railway, as they may think proper.

May drain into adjacent lands

11. They shall have power to make conduits or drains into through or under any hinds adjoining the railway, for the purpose of conveying water from or to the Railway.

And enjoy powers conferred by any General Railway Act

12. The Commissioners shall have all such other powers, (not inconsistent with this Act,) as may he conferred upon Railway Companies by any Act which may be passed for the consolidation and regulation of the general clauses relating to Railways.

Powers of Commissioners with respect to purchase of lands and of parties to convey

13. The Commissioners may contract and agree with all persons, corporations, guardians, tutors, curators and trustees whatsoever, not only for themselves, their heirs, successors and assigns, but also for and on the behalf of those whom they represent, whether infants, absentees, lunatics, married women, or other persons otherwise incapable of contracting, for the purchase of any land or other property necessary for the construction, maintenance and use of the Railway, at such prices as may be agreed upon and may also contract and agree with all such persons and corporations, on the amount of compensation to be paid for any damages sustained by them by reason of anything done under and by authority of this Act.

Arbitration in case of difference as to value of lands

14. Whenever the Commissioners and any such party or corporation fail to agree as to such value or compensation as aforesaid, the claim for the same, shall on the request of the claimant, be referred to the award of the official arbitrators to be appointed according to the provisions of any Act that may be passed respecting the public works of Canada, and the same proceedings shall be had before the said Arbitrators, as if the claim were one made under that Act.

Arbitrators to consider increased value given to property

15. The arbitrators in deciding on such value or compensation are authorized and required to take into consideration the increased value that would be given to any lands or grounds through or over which the Railway will pass, by reason of the passage of the Railway through or over the same, and to set off the increased value that will attach to the said lands or grounds against the inconvenience, loss or damage that might be suffered or sustained by reason of Commissioners taking possession or using the said lands or grounds as aforesaid.

Duties of Commissioners with respect to tenders and contracts

16. The Commissioners shall build such Railway by tender and contract after the plans and specifications therefor shall have been duly advertized, and they shall accept the tenders of such contractors as shall appear to them to be possessed of sufficient skill, experience and resources, to carry on the work or such portions thereof as they may contract for ;

Proviso : as to contracts of $10,000 or more

provided always that the Commissioners shall not be obliged to accept the lowest tender, in ease they should deem it for the public interest not to do so ; provided also that no contract under this section involving an expense of ten thousand dollars or upwards shall be concluded by the Commissioners until sanctioned by the Governor in Council.

Securities for fulfilment of contract

17. The contracts to be so entered into, shall be guarded by such securities, and contain such provisions for retaining a proportion of the contract monies, to be held as a reserve fund, for such periods of time, and on such conditions, as may appear to be necessary for the protection of the public, and for securing the due performance of the contract.

Chief Engineer to certify to work done before payment

18. No money shall be paid to any contractor until the Chief Engineer shall have certified that the work, for or on account of which the same shall be claimed, has been duly executed, nor until such certificate shall have been approved of by the Commissioners.

Disqualification of members of Parliament as officers or contractors

19. No member of Parliament shall hold, or be appointed to any office of emolument under the Commissioners, or be a contractor or party to any contract with the Commissioners for the construction of the Railway or any part thereof.

Inspection of contracts, Governor

20. The Governor, or any person or persons appointed by him, shall have power to inspect all contracts and proceedings of the Commissioners and to examine their accounts at all times.

Salaries and compensation how fixed

21. The Governor in Council shall, in the first instance, fix the rate of salary or compensation for the Commissioners and the Chief Engineer, and shall approve of all other salaries to be awarded by the Commissioners, subject in all cases to the. revision and confirmation of Parliament at its first session thereafter.

Power to suspend the works

22. The Governor in Council shall have the power, at any time to suspend the progress of the work until the then next session of Parliament.

Provision for meeting expenditure

23. The Commissioners shall from time to time be paid, on their requisition, by the Receiver General, all monies that may be required for the purposes of this Act, in such manner, at such times and in such sums as may, from time to time, be ordered by the Governor in Council.

Quarterly accounts by Commissioners

24. The Commissioners shall furnish quarterly accounts (or oftener if required by the Governor in Council) to the Receiver General, of all expenditures and liabilities under this Act.

Working of completed portions

25. Whenever the Railway, or any portion thereof, shall be completed, it shall be lawful for the Governor in Council to make suitable arrangements for the working of the same ; but such arrangements shall not be for any longer period than the end of the Session of Parliament next after the making of the same.

Carriage of H. M. Naval and Military Forces

26. Her Majesty's Naval or Military Forces, and all Artillery, ammunition, baggage, provisions, or other stores for their use, and all officers and others travelling on Her Majesty's Naval, Military or other service arid their baggage and stores, shall at all times, when thereunto required by one of Her Majesty's Principal Secretaries of State, or by the Commander of Her Majesty's Forces in Canada, or by the Chief Naval Officer on the North American Station, be carried on the Railway on such terms and conditions, and under such Regulations as the Governor in Council shall from time to time make, or as shall be agreed upon between the Government of Canada and one of Her Majesty's Principal Secretaries of States.

Loan (with imperial guarantee) for construction of road

27. For the purpose of constructing the said Railway there shall be raised by loan and appropriated a sum not exceeding three million pounds sterling, bearing interest at a rate not exceeding four per centum per annum, upon the guarantee of the payment of the interest of such loan by the Commissioners of Her Majesty's Treasury, under the provisions of The Canada Railway Loan Act, 1867.

Consolidated Revenue Fund charged

28. The Consolidated Revenue Fund of Canada shall be and is hereby charged with the principal and interest of the loan, immediately after the charges specifically made thereon by sections one hundred and three, one hundred and four and one hundred and five, of The British North America Act, 1867.

Sinking Fund provided for

29. A sinking fund is hereby provided for the payment by the government of Canada of an annual sum at the rate of one per centum per annum on the entire amount of principal money whereon interest is guaranteed, which shall be remitted the Commissioners of Her Majesty's Treasury, by equal half-yearly payments in such manner as they may from time to time direct, and shall be invested and accumulated under their direction in the name of four Trustees, nominated from time to time, two by the Commissioners of Her Majesty's Treasury, and two by the Government of Canada ;

Its investment

and such Sinking Fund and its accumulations shall he invested in securities of the Provinces of Canada, Nova Scotia and New Brunswick, issued before the Union of Canada, or at the option of the Government of Canada, in such other securities as may be proposed by that Government and approved by the Commissioners of Her Majesty's Treasury,

Its application

and shall be applied under the direction of the Commissioners of Her Majesty's Treasury in discharge of the principal money whereon interest is guaranteed ;

Amount charged on Con. Rev. Fund

and the Consolidated Revenue Fund of Canada shall be and the same is hereby charged with the amount of the said Sinking Fund immediately after the principal and interest of the Loan.

Further charge on Consolidated Revenue Fund

30. The Consolidated Revenue Fund of Canada hall be, and the same is hereby charged with any sum issued out of the Consolidated Fund of the United Kingdom, under the Canada Railway Loan Act, 1867, with interest thereon, at the rate of five per centum per annum, immediately after the Sinking Fund.

Continuance of Sinking Fund

31. The Sinking Fund shall be continued until all principal and interest of the loan, and all sums issued out of the Consolidated Fund of the United Kingdom, under the Canada Railway Loan Act, 1867, and all interest thereon are fully discharged, or until the Sinking Fund and its accumulations arc adequate to discharge so much thereof as remains undischarged.

Loan (without Imperial Guarantee)

32. The Government of Canada is hereby empowered to raise, by loan, for the completion of the Railway, a further sum not exceeding one million pounds sterling (without guarantee by the Commissioners of Her Majesty's Treasury),

How charged

and the Consolidated Revenue Fund of Canada shall be, and the same is hereby charged with the money so raised and interest, immediately after the charges made thereon in pursuance of the five next preceding sections of this Act.

Issue of debentures for effecting guaranteed loan

33. For the purpose of effecting the loan, the interest of which is to he guaranteed in manner hereinbefore mentioned, it shall be lawful for the Governor to authorize Debentures to the amount of three million pounds sterling, to be issued in such form, and payable at such period, and for such sums, and at such rate of interest as shall be most convenient, and as shall be in accordance with the terms of the Canada Railway Loan Act, 1867.

How the loan secondly mentioned maybe effected

34. For the purpose of effecting the Loan of one million pounds sterling mentioned in the thirty-second section of this Act, or any part thereof, it shall he lawful for the Governor in Council to authorize the issue of Debentures either in currency or sterling money, in such form, bearing such rate of interest, not exceeding six per centum per annum, in such sums and payable at such periods as may be most convenient—or it shall be lawful for the Governor in Council to issue Permanent Canadian Stock or Terminable Annuities, or Exchequer Bills, or securities in any other form that may be most convenient, and as shall be in accordance with The Canada Railway Loan Act, 1867.

Separate Accounts of funds raised under this Act

35. Separate accounts of the monies raised under this Act shall be kept by the Receiver General, and all sums required for the carrying out of this Act, shall be paid out of such monies, and not out of any other fund,

Advances out of other funds and their repayment

except that the Governor in Council may authorize the advance, out of the Consolidated Revenue Fund, of such sums as it may be necessary to expend for the purposes aforesaid, before the said loans can be raised, such sums to be repaid to the Consolidated Revenue Fund out of the Loans.

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