Legislature of New Brunswick, whereby the company shall construct up to a standard for safe operation the line of railway from Gage-town, or from a point near Gagetown, to a point on the Canadian Pacific railway at or near Westfield; on or before the first day of February, 1917, and shall complete the construction and equipment of the said line of railway in all resipects up to and according to the specfica-tions and requirements prescribed, on or before the first day of August, 1917, and shall complete the construction and equipment of the line from Centrevile to Andover up to and according to the said specifications and requirements on or before the thirty-first day of December, 1918 ; and upon the said agreement becoming effective between the parties thereto, the Dominion shall enter into an interim lease of, as and from the first day of April, 1915, and operate, the line of railway from Centreville to Gagetown until the completion within the times hereinbefore specified of all the lines to be leased to the Dominion under the agreement, upon terms and conditions to be agreed upon; and that upon the completion of the line from Gagetown to Westfield, the Dominion will enter into a lease thereof and operate the same pending the completion of the remaining line to Andover, all in accordance with terms and conditions to be agreed upon in each case, including the forty and sixty per cent division of gross earnings hereinafter referred to; and the Dominion undertakes and agrees that as soon as the lines of railway from Centreville to Gagetown, and from Gagetown, or from a point near Gagetown to a point on the Canadian Pacific railway at or near Westfield, and from Centreville to Andover, all shall have been constructed and equipped to the satisfaction and approval of the engineer or engineers appointed by the minister, the Dominion will enter into a lease of the said lines of railway and operate the same upon the terms and conditions agreed upon and to be embodied in the said lease, for the term of ninety-nine years, it being understood and agreed that the Dominion will provide the necessary, suitable and sufficient rolling stock for the operation of the said lines of railway, and will maintain, repair and upkeep the same at its own expense during the whole term of the lease; and when the said lines of railway shall have been fully constructed and equipped as aforesaid, and the Dominion has entered into a lease of all said several lines of railway, the Dominion shall pay semi-annually to the province forty per cent of the gross earnings of the said railways under lease, including forty per cent of the gross earnings received from the operation over the line of railway of the Canadian Pacific Railway Company and over the bridge and railway of the Saint John Bridge and Railway Extension Company from Westfield to and into the city of Saint John, in case such running rights are acquired by the Company; and after maturity and payment of all debenture stock and bonds guaranteed by the province, and all bonds and other securities of the province in' respect of the construction of the said railways or any of them, all rental as aforesaid shall be paid semiannually to the company. The Dominion shall have the right to, and may withhold and apply towards the payment of rental due to the Canadian Pacific railway under any lease acquired by the Saint John and Quebec Railway Company, and also towards the payment of rental due to the Canadian Pacific Railway Company
and to the Saint John Bridge and Railway Extension Company, under any lease or leases cf running rights acquired by the Saint John and Quebec Railway Company, from any moneys that may from time to time be due and payable under said agreement from the Dominion to the province or company, as the case may be, and may make such payment of rentals from time to time to the Canadian Pacific Railway Company and to the said Bridge Company accordingly, and any such withholding of moneys and payment of the same for rentals to the Canadian Pacific Railway Company or to the said Bridge Company as hereinbefore provided shall be deemed payments under the agreement to the province or the company, as the case may be, in as full and complete satisfaction as if otherwise made under the agreement. Upon failure or neglect on the part of the company to acquire and secure running rights from Westfield to and into the city of Saint John as in the agreement provided, the Dominion may acquire such running rights by lease or leases in its own and sole right and pay rentals therefor, or may construct a line of railway from Westfield to and into the city of Saint John; and in such case Or cases neither the province nor the company shall have any right or interest in the said lease or leases, or such constructed line of railway, or be entitled to any revenue acquired through running rights under any lease or through operation over such constructed line, and afl revenue in such case or cases1 shall accrue solely to the Dominion. It is understood and agreed that any expenditure made. by the Dominion during the currency of the leases or any of them hereinbefore referred to, as is usually carried to the debit of Capital Account by English Railway Companies, including expenditures for additional tracks, sidings, yards, buildings, alignment and grade revisions, and other facilities required for the economical and efficient handling of traffic, shall be rapid to the Dominion by the Company out of the said forty per cent of the gross earnings payable to the company under the agreement, or by debentures secured by mortgage on the said railways bearing four per cent interest, at the option of the company.
3. The Government Railways Act and the Acts heretofore and hereafter passed amending the same shall extend and apply to any line or lines of railway leased or operated by His Majesty under the provisions of the said agreement.
Any expenditure made under the provisions of the Act to be based upon these resolutions and of the said agreement, shall be paid out of the Consolidated Revenue Fund of Canada.
5. Any portion of the line of railway of the company that may be constructed upon lands acquired by purchase or lease from the Canadian Pacific Railway Company or from His Majesty, in or near the city of Fredericton, may be included for purposes of the subsidy hereby authorized as a part of the total length of the company's line.