Powers to the

ment shall be held to be a part of and embodied in the main agreement.

2. It shall be lawful for IIer Majesty, and for the Company, Crown and the to do whatever is necessary to the carrying out on her part, Company. and on its part, of all the provisions contained in the main agreement according to the true intent and meaning thereof.

Railway to

Intercolonial

Railway.

3. Upon the main agreement being approved by the sharebecome part of holders as aforesaid, the line of railway and the property described in and leased by the main agreement shall be and become part of the Intercolonial Railway, and shall be operated as such in so far as may be consistent with and subject to the terms of the main agreement.

Bringing of 4. This Act shall not come into force until after the deposit Act into force. of the said copy in the office of the Secretary of State as aforesaid, nor until the Governor General shall, after such deposit, make a proclamation, to be published in the Canada Gazette, naming a day on which this Act is to come into force, after which it shall come into force on the day so named.

SCHEDULE.

This Agreement, made this first day of FEBRUARY, in

the year of our Lord one thousand eight hundred and ninety-eight:

Between the Grand Trunk Railway Company of Canada, hereinafter called "the Company," of the first part, and Her Majesty Queen Victoria, represented herein by the Honourable the Minister of Railways and Canals of Canada, who is herein referred to as "the Minister," Her Majesty so represented being hereinafter called or referred to as "Her Majesty," of the second part.

Whereas Her Majesty purposes extending the Inter olonial Railway, a Government railway of Canada, from Chaudière Junction, in the province of Quebec, to the City of Montreal, in said province, with termini in that city;

And whereas Her Majesty has made arrangements with the Drummond County Railway Company for the lease of all its railway now completed or hereafter to be completed between Chaudière Junction and Ste. Rosalie in the said province of Quebec ;

And whereas for the purpose of carrying out the said extension the said Company is willing that, for the conducting of the business and traffic of the Intercolonial Railway, Her

Majesty shall have an undivided one-half share or leasehold interest in the Company's railway and property between and including Ste. Rosalie and St. Lambert station at the eastern end of the Victoria Bridge, together with the use of the Company's railway and property between and including Ste. Rosalie and Bonaventure station in the City of Montreal, the use of the Victoria Bridge across the River St. Lawrence and of the terminals and connections hereinafter more particularly described, together with an undivided one-half interest in and use of the bridge across the Chaudière River, and of so much of the tracks and line of the said Company in connection therewith as are hereinafter described, all of which right, title, property, interest and user shall be used, enjoyed and exercised to the same extent as if the said railway and property were owned by Her Majesty, in the manner and upon the terms and conditions herein contained;

And whereas this agreement has been executed by the parties hereto, subject to confirmation by Act of Parliament as hereinafter provided and also by the shareholders of said Company;

And whereas by order of the Governor General in Council dated the twenty-fourth day of March, eighteen hundred and ninety-seven, authority is given to the Minister subject to the sanction of Parliament to enter into a contract with the Company for the acquisition of the above rights and interests;

Now this indenture witnesseth that the expression "Montreal Joint Section," wherever used in this Indenture shall mean the Company's line and connections at Ste. Rosalie, and the whole line and branches and appurtenances hereby demised from Ste. Rosalie to St. Lambert and the Victoria Bridge, together with the terminals at Bonaventure station in the City of Montreal and at Point St. Charles, St. Henri and between Point St. Charles and the Bonaventure station, and also with the Canadian Pacific Railway via Jacques Cartier Junction; and the expression "Chaudière Joint Section" shall mean the Chaudière Bridge and connections, except when the meaning shall conflict with the context or otherwise plainly expressed terms of the clause in which the same is used. That the said Company in consideration of the rents, covenants, conditions and agreements hereinafter contained and reserved hath given, granted, demised and leased and by these presents doth give, grant, demise and lease unto Her Majesty, her successors and assigns all an undivided onehalf share interest, right and title to all the Company's line of railway roadbed and property from and including Ste. Rosalie station in the county of Bagot, in the province of Quebec to the Victoria Bridge, and also the undivided one-half right, share, title or interest in the Company's line of railway from

a point on the western side of the Chaudière Bridge at the proposed junction of the Drummond County railway with the Company's line, and including the Chaudière Bridge and to and including the switch at the easterly side of the Chaudière Curve station, being the same rights and privileges agreed to be leased to the Drummond County Railway by the Company, with the full and unlimited right and privileges such as the Company itself enjoys of running the engines, vehicles, rolling stock and trains of the said Intercolonial Railway either separately or combined and as frequently and at such times as its business and traffic may require and in both directions over any and every portion of the said Company's railway between and including the said points aforesaid and the use of the Victoria Bridge across the River St. Lawrence as it at present exists or as it may at any time during the subsistence of this lease be improved, re-constructed, enlarged or extended, and over the Company's line and lines of railway over the said Victoria Bridge and into the Bonaventure station in the City of Montreal and the other terminal points, junctions and connections, of the Company hereinbefore more particularly described, together with the full and unlimited right and privilege of having the business and traffic of the Intercolonial Railway done in and about the stations and premises of the said Company upon any portions of the Company's line hereinbefore described and of the terminals and connections herein before mentioned and all intermediate stations and premises of the Company and in and about and upon all stations, tracks and sidings, branches or extensions belonging to or leased by the Company or connected with the tracks of the Company, together with the full and unlimited right in Her Majesty of constructing stations, tracks, branches and sidings, and connecting said tracks, branches and sidings, with the main branch and leased lines of the Company at any point or points between and including Ste. Rosalie and Montreal, on the terms and conditions hereinafter contained for the term of ninety-nine years from and after the first day of March, eighteen hundred and ninety-eight, with the right of renewal as hereinafter provided. The construction of such stations, tracks, branches and sidings, with the main branch and leased lines of the Company as herein provided for shall, however, be made under the supervision and subject to the approval of the Chief Engineer of the Company, which right of approval shall be reasonably exercised.

The above joint sections are all shown on the plan annexed hereto, the portion of the Montreal section from Ste. Rosalie to St. Lambert station being shown in red; and from St. Lambert station to Bonaventure station, and intermediate connections, and Jacques Cartier Junction, being shown in green; the Chaudière section being shown in red;-signed in duplicate by the respective Chief Engineers of the parties hereto, and which is hereby made part and parcel of this agreement.

TO HAVE AND TO HOLD said rights and privileges unto Her Majesty, her successors and assigns from and after the first day of March, eighteen hundred and ninety-eight, for the term of ninety-nine years, yielding and paying therefor to the said Company, its successors and assigns, a yearly rental of one hundred and forty thousand dollars ($140,000), such rent to be payable in equal sums monthly, that is to say, eleven thousand six hundred and sixty-six dollars and sixty-six cents ($11,666.66) on the first week day of every month in each year or a proportionate sum for any fractional part of a month, the first payment to be made on the first week day of the month next following the day on which Her Majesty goes into possession of the said leased lines and property and begins to run trains over the same:

And these presents are made upon and subject to the provisions and conditions hereinafter expressed and contained for the due performance and observance of all of which, on the part of each of them to be done and performed, Her Majesty and the Company bind themselves and each of them respectively, their successors and assigns, that is to say :

First:-That Her Majesty shall and will during the continuance of this lease or any renewal thereof pay to the Company the rent hereby reserved in the manner and at the times hereinbefore mentioned without any deduction whatsoever, save for the reasons and on account of the happening of any or either contingency or contingencies hereinafter mentioned.

Second-That the Company shall and will keep up and maintain at all times in good repair and in a thorough efficient working condition the whole of the railway tracks, bridges, switches, sidings, signals, buildings of all kinds, platforms, water tanks, water supplies, telegraph lines and appliances, fences, crossings and all other appurtenances and appliances belonging to the Company's railway between and including Ste. Rosalie and Montreal, and of the terminals and connections herein described and between the Chaudière Bridge and connections, the right and privilege of using which is included. in this demise.

Third:--That IIer Majesty shall and will pay to the Company a share of the cost of maintenance of the railway between and including Ste. Rosalie and Bonaventure Station, and Chaudière Bridge and connections, including tracks, bridges, switches, sidings, signals, appliances of all kinds, platforms, water-tanks, water supplies, fuel stations, fences, crossings and all other appurtenances and appliances used by it jointly with the Company and upon the two joint sections, it has the right and privilege of usage included in this demise, such share of the cost of maintenance to be in the proportion that the combined engine and car mileage of the Intercolonial Railway trains made over each of the above mentioned joint sections bears to the total combined engine and car mileage running over each of the above mentioned joint sections during each month; every engine, passenger and freight car counting

each as one car; but notwithstanding anything herein mentioned, the cost of maintenance of the Victoria Bridge shall not include the cost of maintaining any part or portion thereof except the tracks which shall be used by the Intercolonial Railway and the Company, and for that class of railway purpose, which cost of maintenance shall be apportioned as aforesaid.

Fourth--That Her Majesty shall have the right for all purposes of the business and traffic of the Intercolonial Railway, under the reasonable rules and regulations of the Company, to the full and unlimited use and the full and unlimited access thereto, as the same is or may be enjoyed by the Company itself, of, to and from all engine-houses, car-houses and sheds, fuel sheds, water-tanks, station houses, depots, freight and ticket offices, warehouses, freight sheds, baggagerooms, dining-rooms, and all furniture and fittings appertaining thereto; all weighing scales and baggage and freight trucks; all tracks, sidings, branches or extensions either belonging to or leased by the Company at Montreal, including the terminals and other connections of the Company at Point St. Charles and intermediate points between l'oint St. Charles and Bonaventure station, and of the connections with other railways as herein before specified as the same now exist or as they may hereafter be built, rebuilt or improved upon terms as herein specified.

Fifth-That if any of the said buildings or accommodations or facilities or anything appertaining thereto be destroyed by fire or other casualty, either in whole or in part, Her Majesty shall have no claim against the Company for damages on account of loss of accommodation, but Her Majesty shall have, free of any other charge than the aforementioned rental, a proportionate share of such accommodation as the Company may be able to provide for the use of its business and traffic and of the new accommodation so soon as the same may be provided, and reconstruction of such buildings and accommodation shall be proceeded with by the Company at its own cost with all reasonable despatch.

Sixth-In all cases of collision between the trains of the parties hereto, the party whose officers, employees or trains are at fault, and are or shall be found to have been the occasion of the collision shall be held responsible to the other party for all damages done or resulting from such collision, and in case the proper officers of the two parties hereto cannot agree as to which of the parties was at fault and was the cause of the collision or as to the amount of damage done then the questions arising in respect thereto shall be referred to arbitration in the manner hereinafter provided for the settlement of differences and disputes as to the other questions, and each of the parties hereto who shall be found responsible under this clause or under clauses similar thereto shall indemnify the other and hold such other harmless and defend the other from and against all claims, costs and proceedings resulting from or growing out of such default on their part and the party so adjudged liable to