Mortgage to secure bonds.

How to be made.

Lien created

15. For the purpose of securing the issue of such bonds the Company shall execute a mortgage or mortgages, not inconsistent with law or with the provisions of this Act, in such form and containing such provisions as are approved by a resolution passed at the special general meeting of shareholders mentioned in the next preceding section.

2. The said mortgages shall be made to trustees appointed for this purpose at the said special general meeting, and may contain provisions establishing the amount secured upon the vessels or class of vessels or property other than the railway to which such mortgages relate, the rank and privilege to appertain to the bonds intended to be secured thereby, the rights and remedies to be enjoyed by the respective holders of such bonds, the mode of assuring the application of the proceeds of such bonds to the purposes for which they are to be issued, the rate of interest payable thereon, the place and time of payment of such interest and of the capital thereof, the creation of a sinking fund for the redemption of such bonds, and all the conditions, provisions and restrictions requisite for the effectual carrying out of the terms thereof, and for the protection of the holders of such bonds.

3. The Company may charge and bind the tolls and revenues by mortgage. of the vessels or class of vessels or property other than the railway to which any such mortgage relates, in the manner and to the extent therein specified; and each such mortgage shall create absolutely a first lien and incumbrance on the vessels or class of vessels or property other than the railway therein described, as well as on the tolls, revenues and subsidy therein hypothecated, the whole being for the benefit of the holders of the bonds in respect of which such mortgage is made.

How bondholders to rank.

16. Each issue of bonds intended to be secured by any of the mortgages referred to in the next preceding section shall entitle the respective holders of each such issue to rank with Mortgage to each other pari passu, and a duplicate of each mortgage shall be filed in the office of the Secretary of State of Canada.

be filed.

Agreement

railway company.

17. The Company may enter into an agreement with the with another Canadian Pacific Railway Company, the Grand Trunk Railway Company of Canada, the Ontario, Hudson's Bay and Western Railways Company, or the Algoma Central Railway Company, for conveying or leasing to such company the railway of the Company, in whole or in part, or any rights or powers acquired under this Act, as also the franchises, surveys, plans, works, plant, material, machinery and other property to it belonging, or for an amalgamation with such company, on such terms and conditions as are agreed upon, and subject to Approval of such restrictions as to the directors seem fit; provided that shareholders such agreement has been first approved by two-thirds of the votes at a special general meeting of the shareholders duly called for the purpose of considering it,-at which meeting

and Governor in Council.

shareholders representing at least two-thirds in value of the stock are present or represented by proxy,-and that such agreement has also received the sanction of the Governor in Council.

application

2. Such sanction shall not be signified until after notice of Notice of the proposed application therefor has been published in the for sanction. manner and for the time set forth in section 239 of The Railway Act, and also for a like period in one newspaper in each of the electoral districts through which the railway of the Company runs, and in which a newspaper is published.

be filed with

3. A duplicate of the agreement referred to in subsection 1 Agreement to of this section shall, within thirty days after its execution, be Secretary of filed in the office of the Secretary of State of Canada, and State. notice thereof shall be given by the Company in The Canada Gazette, and the production of The Canada Gazette containing such notice shall be prima facie evidence of the requirements of this Act having been complied with.

OTTAWA: Printed by SAMUEL EDWARD DAWSON, Law Printer to the Queen's most Excellent Majesty.

CHAP. 64.

An Act to incorporate the Manitoulin and North Shore
Railway Company.

[Assented to 7th July, 1900.]

WHEREAS a petition has been presented praying that it be Preamble. enacted as hereinafter set forth, and it is expedient to grant the prayer of the said petition: Therefore Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

1. John McKay of the town of Sault Ste. Marie in the dis- Incorporatrict of Algoma, James Cleland of the town of Meaford in the tion. county of Grey, Thomas John Ryan of the town of Sudbury in the district of Nipissing, Thomas Chapman Sims of the town of Little Current in the district of Manitoulin, Alexander Grant Mackay of the town of Owen Sound in the county of Grey, Robert Adam Lyon, William Howard Hearst and William Brown of the town of Sault Ste. Marie in the district of Algoma, together with such persons as become shareholders in the company, are incorporated under the name of "The Manitoulin and North Shore Railway Company," hereinafter Corporate called "the Company."

name.

directors.

2. The persons named in section 1 of this Act are constitut- Provisional ed provisional directors of the Company.

stock.

3. The capital stock of the Company shall be one million Capital dollars, and may be called up by the directors from time to time as they deem necessary, but no one call shall exceed ten per cent on the shares subscribed.

4. The head office of the Company shall be in the town of Head office. Sault Ste. Marie, in the district of Algoma, in the province of Ontario or in such other place in Canada as is fixed by bylaw.

5. The annual meeting of the shareholders shall be held on Annual the third Wednesday in September in each year.

meeting.

Election of directors.

Proxies.

Line of railway described.

Powers.

Docks, etc.

Ferries.

Electricity.

Telegraph

lines.

6. At such meeting the subscribers for the capital stock assembled, who have paid all calls due on their shares, shall choose not less than five nor more than twelve persons to be directors of the Company, one or more of whom may be paid directors.

2. No person other than a shareholder eligible to vote may vote or act as a proxy at any meeting of the Company.

7. The Company may lay out, construct and operate a railway of the gauge of four feet eight and one-half inches from a point in or near the town of Little Current, in the district of Manitoulin, in the province of Ontario, thence northerly and easterly a distance of one hundred miles, crossing the main line of the Canadian Pacific Railway Company at or near Onaping or Cartier Stations, and also from a point in or near the township of Drury or Hyman on its said line of railway, thence easterly to the town of Sudbury, in the district of Nipissing, and also from a point at or near the said town of Little Current, thence south-easterly to a suitable point on the south shore of Manitoulin Island or Fitzwilliam Island, and from a point near Tobermoray, in the county of Bruce, thence south and easterly to the town of Meaford, in the county of Grey, passing through or near the towns of Wiarton and Owen Sound.

8. The Company may, in connection with its undertaking and for the purposes of its business,—

(a.) erect and maintain docks, dockyards, wharfs, slips and piers at any point on or in connection with its railway, and all the termini thereof, on navigable waters, for the convenience and accommodation of railway ferries and vessels;

(b.) acquire and run railway ferries, steam and other vessels for cargo and passengers upon any navigable waters which its railway may connect with;

(c.) acquire and utilize water and steam power for the purpose of compressing air or generating electricity for lighting, heating or motor purposes, and may dispose of surplus power generated by the Company's works and not required for the undertaking of the Company.

9. The Company may construct, erect and maintain a teleand telephone graph line and telephone lines along the whole length of its railway and branches, and may establish offices for the transmission of messages for the public, and for the purposes of erecting and working such telegraph and telephone lines the Company may enter into a contract with any other company. Arrangements 2. The Company may enter into arrangements with any with telegraph telegraph or telephone company for the exchange and transmission of messages or for the working in whole or in part of the lines of the Company.

and telephone companies.

Rates to be approved.

3. No rates or charges shall be demanded or taken from any person for the transmission of any message by telegraph or