CHAP. 4. An Act to amend the provision with regard to Tolls of chapter 1 of the statutes of 1881, respecting the Canadian Pacific Railway. [Assented to 15th May, 1902.] WHEREAS in and by section 20 of schedule "A" to the Preamble. Act respecting the Canadian Pacific Railway, chapter 1 of the statutes of 1881, it is provided as follows: "The limit to the reduction of tolls by the Parliament of 1881, c. 1. Canada provided for by the eleventh subsection of the 17th section of The Consolidated Railway Act, 1879, respecting Tolls is hereby extended, so that such reduction may be to such an extent that such tolls when reduced shall not produce less than ten per cent per annum profit on the capital actually expended in the construction of the railway, instead of not less than fifteen per cent per annum profit, as provided by the said subsection; and so also that such reduction shall not be made unless the net income of the company, ascertained as described in said subsection, shall have exceeded ten per cent per annum instead of fifteen per cent per annum as provided by the said subsection. And the exercise by the Governor in Council of the power of reducing the tolls of the company as provided by the tenth subsection of said section seventeen is hereby limited to the same extent with relation to the profit of the company, and to its net revenue, as that to which the power of Parliament to reduce tolls is limited by said subsection eleven as hereby amended ;" And whereas the said Company has applied for the approval of the Governor in Council, under the provisions of The Railway Act, of an increase of its capital stock by $20,000,000, that is to say, from $65,000,000 to $85,000,000, for the purposes of meeting the financial requirements of the Company in respect of the increase of rolling stock, the enlargement of the workshops at Montreal and elsewhere, the reduction of the grades and the improvements of the road, the laying down of a second track on portions of the Company's lines, and the providing of additional grain elevators and other facilities so as to enable the Company better to meet the commercial require 63 ments New stock not to be deemed capital construction. ments of the country, such requirements being approximately as follows: For rolling stock..... For the enlargement of shop facilities at $ 9,070,000 8,400,000 3,000,000 $20,470,000 And whereas the Governor in Council has duly approved of such increase of the capital stock of the Company, subject, however, to the following conditions:-That the said $20,000,000 of stock shall not, nor shall any part thereof, nor shall any moneys arising therefrom-no matter how disposed of-be deemed capital expended in the construction of the railway within the meaning of the said section 20; that the power of the Parliament of Canada or the Governor in Council to reduce the tolls upon the railway of the Company, shall in no wise be affected by such increase of capital stock in whole or in part, nor by the expenditure of any such moneys in the construction of the railway or otherwise, but the same shall be excluded from consideration in determining the amount of capital actually expended in the construction of the railway; and, further, that no portion of the said $20,000,000 of stock shall be issued at less than its par value; And whereas the Company has accepted the said conditions, and acquiesces and concurs in this legislation; Therefore His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: 1. The said additional $20,000,000 of stock of the said Company shall not, nor shall any part thereof, nor shall any moneys expended on arising therefrom, no matter how disposed of, be deemed capital expended in the construction of the railway within the meaning of the said section 20; and the power of the Parliament of Canada or the Governor in Council to reduce tolls upon the railway of the Company shall in no wise be affected by such increase of capital stock in whole or in part, nor in the expenditure of any such moneys, in the construction of the railway or otherwise, but the same shall be excluded from consideration in determining the amount of capital actually expended in the construction of the railway. Not to be issued below par. Application of moneys. 2. No portion of the said $20,000,000 of stock shall be issued at less than its par value. 3. The moneys arising from the sale of the said $20,000,000 of stock shall be expended as follows, that is to say: The pro ceeds of $9,000,000 of the said stock shall be expended for rolling stock, and the proceeds of the remaining $11,000,000 of stock shall be expended approximately for the other purposes mentioned in the above recital, and separate and distinct accounts shall be kept by the Company showing the receipts for and in respect of such stock and the purposes for which they are expended: Provided, however, that if the Company so desires, it may expend for rolling stock any portion of the moneys arising from the sale of the said $11,000,000 of stock if it is found that the proceeds of the said $9,000,000 of stock are not sufficient for that purpose. OTTAWA: Printed by SAMUEL EDWARD DAWSON, Law Printer to the King's most Excellent Majesty |