October 21, 1903 (9th Parliament, 3rd Session)

Sir WILFRID LAURIER.

take over the undertaking may be exercised at any time by the government upon giving one month's notice to the company, which shall thereupon, and upon payment by the government to the shareholders aforesaid, grant, surrender and release to the government all their right, title and interest in and to the said undertaking and to the fVanchises- and all other assets and property of the company of whatsoever nature or kind, subject to the payment of such obligations of the Company as may have been contracted with the consent and approval of the government, if any, for construction, operation and maintenance, and to the said bonded indebtedness, which the government shall thereupon assume and pay, according to the terms of the said bonds or other securities and of the mortgage securing the same.
19. In the event of the government exercising the said right to take over the undertaking, assets, property and franchises of the company as aforesaid, the provisions contained in the following clauses, numbers 20 to 24, shall take effect and come into operation from and after the date of such acquisition.
20. For the purpose of the sinking fund for the redemption of the bonded indebtedness, a like sum as is in and by clause 16 hereof provided to be paid for such purposes by the company to the government shall be annually set aside by the government out of the net income of the undertaking, that is to say, after payment out of the income of the expenses of operation and other charges for maintenance, repairs and for renewals or improvements upon and additions to the said undertaking and any part or parts thereof, and of the interest upon the bonded indebtedness and of interest calculated at the rate of three per cent per annum on all moneys paid by the government, in accordance with the provisions of clause 18, for the acquisition of the undertaking, and of interest at the same rate on any other liability or expenditure incurred or made by the government in connection with the undertaking.
21. The government will, subject to the provision next hereinafter contained, annually pay to the government of the province of Quebec and to the corporation of the city of Quebec, respectively, a proportion of the balance of the net income after providing for the said charges, interest and expenses and the amount to be set aside for the sinking fund as aforesaid, such proportion being based upon the amount paid or contributed as a subsidy by each of the three parties, namely: the Dominion government, $374,353; the government of the province of Quebec, $250,000, and the city of Quebec, $300,000; not exceeding, however, as regards the government of the province of Quebec and the city of Quebec, respectively, the sum of $7,500 and $9,000, being the amount of interest calculated at the rate of three per centum per annum on the said sum of $250,000 and $300,000.
22. If in any year or years subsequent to the acquisition of the undertaking by the government the income of the undertaking shall be insufficient to meet the charges and expenses and the provision for the sinking fund, more particularly set forth in clause 20 hereof, the net income of any subsequent year or years, after providing for the said charges, interest and expenses and the amount to be set aside for the sinking fund, shall be applied in reduction or payment of the amount of such deficiency before any such division of the net income and payment of part thereof to the government of the province of Quebec and the city of Quebec, res-

pectively, as provided for by the last preceding clause, is made.
23. If at any time, and with or without notice, the government shall pay or cause to be paid to the government of the province of Quebec and the city of Quebec, or either of them, the amount of their respective subsidies of $250,000, and $300,000, all payments, whether in respect of capital or income, to be made under the foregoing provisions to the said government of the province of Quebec or the city of Quebec, -respectively, shall as and from that time absolii-tely cease and determine.
24. Notwithstanding anything contained in the five next preceding olauses, the undertairing, assets, property and franchises of the company shall at all times be and remain the absolute property of the government, and the sole right of control and management shall be and continue absolutely vested in the government.
25. This agreement shall not come into force or effect unless and until it has been approved, ratified and confirmed by the parliament oi Canada.
In testimony whereof, the said parties have hereunto set their hands and seals the day anil 5 ear first herein written.
(.Sgd.) W. S. FIELDING.
(Sgd.) S. N. PARENT.
Signed, sealed and delivered in the presence of O. E. Tasehereau.