The Evening Star. FRIDAY, DECEMBER 10, 1869,

Evening Star, Volume VII, Issue 2059, 10 December 1869, Page 2

The Evening Star. FRIDAY, DECEMBER 10, 1869,

On the Bth November, the Secretary for Land and Works replied to his Honor’s memorandum respecting the non-conclusion of the agreement tor the construction of the Southern Trunk Railway. After customary preliminary expressions of regret at tlie disagreement that] had occurred, and admitting that the immediate commencement of the work would be “ a great boon to the coun- “ try,’’ he says on behalf of the Executive, that it should “ be done in such <( a manner as to guard the public ‘ revenues to the greatest possible ex- “ tent, and that this can be secured “ only by submitting the undertaking “ to public competition.” He bases this conclusion on the rule “ invariably “ insisted on by the Provincial Council “ in the expenditure of public monies, “ {n all cases to which it can be applied ,” and sees no reason why it should be departed from, in an undertaking involving so heavy an outlay, and requiring such publicity and caution to secure “ economical and successful completion,” Mr Reid then refers to some resolution proposed by his Honor at an Executive meeting, when by means of the narrow 3 ft. Gin. gunge, and light

rails, he suggested that the cost might be reduced to L200,0U(). Subsequently it would appear, il the Secretary’s memory be correct, a second proposal was submitted, to retain “ the present guago,’’ whatever that may mean,- 1 —•“ to inipvoxc “ the gradient by lengthening the ‘‘ tunnels 12 chains,” whatever that may mean, —and <l to increase the “ weight of rail from -101b to about “ 601b per yard,” which we can understand. Mr .Reid points out tbe discrepancy between those propositions, acknowledges he looks upon “ the “ questions of gradients, gauges,” ifec., as beyond his ken, and his relying upon professional advice for guidance. He dissents from the charge of any “ unnecessary delay ” having taken place in the correspondence with Mr Driver ; states that lithograph plans were being prepared as fast as the means at command of the Government would permit, and only awaited his Honor’s signature to publicly invite tenders, insinuates a charge ol a tendency on the part of the Superintendent to favor particular individuals, and suggests convening the Council “ in order to obtain its decision as to “ the manner in which this work should “be undertaken.” On the 10th November Ids Honor replied, ihe only portion of his letter that the public will feel interested in, is that bearing upon the difference between an ordinary contract and so expensive a work as a railway, and on this point, in fairness to him, we will quote it in its entirety. This is the more necessary as the Executive in a difference between themselves and the Superintendent have a vast advantage over him. When he renders an explanation his mouth is closed. But his Executive are able in the House to explain, refute, debate, and modify their expressions. They have the advantage derivable from hints thrown out by political adherents and opponents, all of which are denied to a Superintendent whose words once recorded, arc liable to attack, defence, construction, or misconstruction, at the will ot the different speakers. He says : —■ You observe that while there is no doubt that the commencement of this work would be a great boon to the country, the Executive is of opinion that this should only be clone in such a manner as to guard the Public Revenue to the greatest possible extent, .and that this can be secured only by submitting the undertaking to public competition, implying, I presume, that by tbe course proposed by me the Public Revenue cannot be guarded to the utmost possible extent, and that undue advantage maybe conferred upon private individuals. I have only to say that I demur to both the one assumption and the other ; and if you will take the trouble to read over tbe resolution submitted by mo upon 21st October, of which a copy is enclosed herewith, you will see that the Public Revenue would be most effectually guarded, and that no private individual or Company could possibly acquire at the expense of the Province moie than 8 per cent, interest upon the capital actually expended under the sanction of the Government. It may be that money might be borrowed at a lower rate than 8 per cent., in which case the promoters might he the gainers to the extent of the difference. Even assuming such to be the case, and that the Railway Company, instead of using their own capital, could procure money at 6 per cent,, 1 should not grudge the amount of the difference to whoever would carry out the work satisfactorily, the more especially as in the event of money becoming cheap, it should be in the power of the Government to borrow' at the low rate, and take over the railway at a valuation : and here I would remark that it is perhaps somewhat to be regretted that the Government has been itself debarred from making the railway, as otherwise it is not improbable that 2 per cent, might have been saved to the Province. As regards the rule to which you refer as having been insisted upon by tlje Provincial Council in tbe expenditure of public money, I admit that it is a very proper rale, and one that should not be departed from when it cau be applied. We have, however, an instance of a departure from this rule in the case of the Southern Trunk Railway; first, in the case of the mission of Mr Young to England, who was fully empowered to close with whoever would undertake satisfactorily to construct the railway upon terms prescribed by the Government; and next in the resolution agreed to by yourself and the other members of the Executive, after the late prorogation of the Provincial Council, to treat with private parties for the construction of the railway upon terms to be prescribed by the Government. The Executive appear to me to lose sight of the fact that in this latter provision consists the safety of the public revenue, and if it is imagined that by advertising for tenders all over the world better terms will be obtained than those prescribed in my resolutions, I venture to predict that w'c shall (iud ourselves vastly mistaken ; the only result will be a few months morn delay, ami in a 1 probability the wdiole thing will have to be commenced de novo, and efforts made to induce parties to negoeiate with us privately. . If it were a mere ordinary contract that is wanted wherein the Government requires a specified wi.rk to be done, for which it is prepared to pay a lixed juice in cash, it is plain that there would bp but one course open for us ; as it is, the matter presents a totally different aspect when the contracting parties have themselves to find the money, a circumstance which, in my humble opinion, pistes the matter out of the category of an ordinary contract, and which practically involves that if the work is to be done at all by means of a company, it must be clone by private negotiation.