curves shall not exceed the maximum grades and curves on the main line between St. John's and Port-aux-Basques under similar conditions. Except as aforesaid, all the works herein provided shall be performed, furnished and completed according to the specification in the said Contract of 1893, as fully as if said specification were set forth herein. 40. This Contract is subject to the approval and ratifi- Approval by cation of the Legislature. In witness whereof His Excellency the Governor in By His Excellency's Command. Legislature. SCHEDULE B. Schedule B.Operating contract. Recitals. THE OPERATING CONTRACT. THIS AGREEMENT, made and entered into at St. John's, in the Island of Newfoundland, this 7th day Governor. of December, A. D. 1909, between His ExRALPH WILLIAMS, cellency Sir RALPH CHAMPNEYS WILLIAMS, K.C.M.G.,Governor of the Island of Newfoundlandand its Dependencies, in Council, hereinafter called "the Government," of the one part, and the Reid-Newfoundland Company,hereinafter called "the Company," of the other part, D. MORISON, Whereas the Government and R. G. REID, on the 3rd day of March, 1898. entered into the Contract which forms Schedule A. to The Newfoundland Railway Act, 1898." And whereas by a Contract made between the same parties on the 22nd day of July, 1901, certain changes and modifications were made in the said first-mentioned Contract; And whereas all the rights and obligations in and under said Contracts were afterwards assigned to the Reid-Newfoundland Company, in this Agreement called "The Company; And Whereas by an Agreement made the 7th day of December, 1909, the Company has agreed with the Govern And Whereas the parties hereto have agreed that the Company shall maintain and operate the said Branch lines of Railway as part of the Newfoundland Railway, (as defined by "The Newfoundland Railway Act, 1898,") and have agreed that the said Branch lines of Railway so to be constructed shall be included in the said Contract of 1898 as modified, as aforesaid, by the said Contract of 1901, and be maintained and operated thereunder, and that the provisions. of the said Contracts, subject to the modifications and changes in this Agreement contained, shall apply to the operation and maintenance of all the Branch Railways constructed and to be constructed under the Agreement aforesaid; Now this Agreement Witnesseth that for and in consideration of the premises, and of the payments, covenants, provisions and conditions hereinafter contained on the part of the parties respectively, to be made and performed, the said parties mutually covenant and agree as follows: 1. This Agreement shall be read with, and form part of Interpretation. the Agreement forming Schedule "A" to "The Newfoundland Railway Act, 1898," aud of the Agreement in amendment thereof, forming Schedule "A" to "The Newfoundland Railway Amendment Act, 1901," and of the said Acts., shall maintain 2. The Company shall, at its own expense, maintain in a Company safe, efficient and satisfactory manner, as part of the New- Railways. foundland Railway, all and every the Branch Lines of Railway to be constructed under the Contract between the Government and the Company, dated the 7th day of December, 1909, from the certified date of completion of each of the said Branches respectively, during the full period of fifty years from the first day of August, 1901. shall operate 3. The Company shall, at its own expense, continuously Company and efficiently operate in the manner provided in the next Railways. succeeding section, and as part of the Newfoundland Railway, all and every the said Branch Lines of Railway to be constructed under the Agreement before mentioned, from the certified date of the completion of each of the said Branches, Meaning of operation. respectively, during the full period of fifty years from the first day of August, 1901. 4. The said Branch Lines of Railway shall be continuously operated by running at least one passenger or mixed train both ways, each day, (Sundays excepted) over the whole of each Branch Line, respectively, and as many additional through local passenger or freight trains as the demands of traffic may require Respecting the 5. The Company shall, at its own expense, provide the carriage of mails. Government with all necessary facilities for transporting the Government mails and mail matter over the said Branch Lines of Railway in such quantities as the Government may require; the Company to attach a postal or mail car to each passenger or mixed train; the Government mail agent to have exclusive use and possession of such postal car ΟΙ section thereof set apart for carrying mails or mail matter, and have every facility provided for receipt and delivery of mail and mail matter at each station along the Branch Lines of Railway. The said postal or mail cars or sections of cars shall be used only for the purposes of the Government mails and mail matter In consideration of the due performance of the said mail service, the Government shall pay the Company a subsidy proportionate to the subsidy payable under the said Contract of 1898; that is to say a subsidy of $69.0 per annum for every mile of Branch Railway constructed whether or not there be any increase in the number of trains, as provided for in this Contract, or any additional trains, or any increase in the quantity of mails or mail matter. It is understood and agreed that this clause shall be held not to apply to the conveyance of mails or mail matter between countries other than this Colony. Respecting grants of lands. 6. In consideration of the foregoing covenants on the part of the Company, the Government hereby agrees and covenants with the Company to grant to it in fee simple, 4,000 acres of land fer each mile of the said Branch lines of Railway constructed under the said Contract of the 7th day of grant of said land upon the completion of each Branch line of Railway respectively. 7. The expression "in fee simple" shall be held to in- Interpretation. clude, with the land, all mines, ores, precious metals, minerals, stones or mineral oils therein and thereunder, grants for the same to be similar in form to those issued under the Contract of 1898. 8. The lands to which the Company shall be entitled Manner of laying off and granting under the foregoing clause 6 shall be granted in blocks or lands. sections to be defined and laid off along the said Branch Lines of Railway, and in other places where lands are not available along the said Branches, in a manner similar to that provided in the said Contract of 1898, and the Government and the Company shall have the same rights as to the selection or the rejection of any of the said blocks or sections of such lands as in the said Contract provided. The Government may, in the case of any block or section of such lands, and in lieu of the same, pay to the Company a money subsidy at the rate of twenty-eight cents per acre for any of the said lands to which the Company is entitled if the Government are nnable, or are not desirous of granting to the Company, any of the lands selected by it under the provisions hereof; provided that the Government may, in the case of any such lands, within three miles of the sea, subject any blocks or sections of such lands to all the reservations and conditions set forth in section 4 of the Act 4th Ed. VII, chap. 13, entitled "An Act to provide for the Transportation of Timber over Streams and Lakes and for other purposes in connection with Crown Lands;" and in consideration of such reservations and conditions, and in exchange therefor, the Government shall issue to the Company Timber Leases for 99 years, renewable at the option of the holder thereof, over equal areas of Crown Lands elsewhere, free of rental, stumpage or other charges; provided also, that in no case shall any lands be granted under this Contract in which any person or corporation has any interest what soever. |