railway of the company now In operation, and all property and franchises connected therewith, and all revenues derived therefrom by the company.
1. Resolved, that the kind of securities to he guaranteed as aforesaid, and the forms thereof, and the form and terms of the mortgage securing them, and the form and manner of guarantee, sfiall be such as the Governor in Council approves of.
5. Resolved, that upon the said guarantee being signed on behalf of the government, the government shall become liable for the payment of the principal and interest of the securities guaranteed, and the said payment shall be a charge upon the Consolidated Revenue Fund.
6. Resolved, that the rates and tolls to be charged for the transfer and carriage of freight and passengers upon the lines of railway 30 aided and upon the lines owned by the Canadian Northern Railway shall be under the control of the Governor In Council or of such authority, commission or tribunal as is designated or constituted under any Act of the parliament of Canada for the regulation or control of the business of railways.
7. Resolved, that the Governor in Council or any authority created by parliament for the purpose may also grant running powers over any portion of the lines hereby aided to any other line of railway upon terms considered equitable.
8. Resolved, that it shall he unlawful for the Canadian Northern Railway to lease or sell any of its lines or any portion thereof to the Canadian Pacific Railway Company or to amalgamate with the said company or enter into any agreement with the said company whereby rates upon freight or passengers shall be pooled ; hut this provision shall not extend to traffic or running arrangements made with the assent of the Governor in Council.
9. Resolved, that any money paid by the government of Canada under the guarantee herein provided for shall be held to be paid In discharge of the liability of the government, hut not in discharge of the liability of the mortgage securing them ; and the money so paid shall be held to be still secured by the said securities and mortgage, and the government shall be subrogated in all the rights of the holders of the securities, the interest upon or the principal of which has been paid by the government, and the government shall in respect of all the moneys so paid be in all respects in the position of security holders in respect of whose securities default has been made in payment to the extent of the moneys paid by the government.-(The Minister of Railways).
Subtopic: CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.