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CANADA & NEWFOUNDLAND
Contract No. 60
Vote 151. Estimates 1917-18
File No. 17882
$70, 000
Expires March 31st, 1918
Articles of Agreement
made this THIRTY – FIRST day of May in the year of Our Lord One Thousand
Nine Hundred and Seventeen.
Between the Honorable the Minister of Trade and
Commerce of the Dominion
of Canada (hereinafter referred to as “The Minister”, which expression
shall include the Minister of Trade and Commerce of the said Dominion
for the time being), acting for and on behalf of His Majesty, on the one
part, and The Reid Newfoundland Company, Limited, a corporation
having its head office at St. John’s Newfoundland, (hereinafter called
“The Contractors”), of the other part.
Contractors
Witnesseth, that for and in consideration of the covenants,
agreements, stipulations and reservations hereinafter contained on the
part of His Majesty, the Contractors for themselves and their successors
or assigns do covenant and agree to and with His Majesty, His Heirs and
Successors, in manor and form and to the effect following, that is to
say:
Steamers 1. The Contractors having on the first day of April
next preceding the date of
these, presents placed the steamship “Kyle” of 548 net and 1055 gross
tons, with accommodation for 68 first-class and 160 second-class
passengers and the steamship “Sagona” of 420 and 808 gross tons with
accommodation for 40 first-class and 145 second-class passengers on the
route hereinafter described, with establish and maintain with said
steamships or other steamships approved by the Minister until the 31st
day of March, 1918, a regular steamship service as hereinafter described
between North Sydney in the Province of Nova Scotia and Port aux Basques
in the Colony of Newfoundland.
Route 2. It is understood and agreed that the service from the
said first day of April,
1917, shall consist of a complete round trip each day, except Sunday,
between the said ports of North Sydney and Port aux Basques.
Ice 3. It is further understood and agreed that at any time
during the continuance of this Contract, should Port aux Basques or
North Sydney be blocked with ice, the service during such period may, at
the option of the Contractors, be performed to Placentia, Newfoundland;
and Luisburg, Nova Scotia, respectively.
Trade Commissioners 4. The Canadian Trade Commissioners and
their wives and children, or Canadian Commercial Agents, shall be
granted free transportation, meals included, with first-class
accommodation, and free transportation for their household effects, upon
any steamships employed by the Contractors in the performance of this
Contract, when requested so to do by the Minister, and when the said
Commissioner or Commercial Agent is traveling upon his official duties
or being transferred from one official post to another.
Carriage Of Fruit 5. The handling, loading, stowing and
unloading of any fruit or perishable products carried by the said
steamships shall be subject to and under the supervision of any cargo
inspector or any other official appointed for that purpose should the
Minister of Agriculture for Canada deem it advisable.
Subsidy 6. Subject to the further conditions, stipulations and
reservations herein provided, His Majesty for Himself, His Heirs and
Successors, covenants with the Contractors, their successors and
assigns, that the Contractors and their successors well and faithfully
performing all and every the covenants and stipulations herein on the
part of the Contractors set forth and contained, He will and truly pay
or cause to be paid to the Contractors, their successors or assigns a
Subsidy. At the rate of Seventy Thousand Dollars ($70,000) per annum,
the said subsidy to be payable quarterly, or such proportion thereof as
may be earned, that is to say: for the periods ending on the Thirtieth
days of June and September and on the Thirty-first days of December and
March during the continuance of this Contract.
Deductions. Provided, however, that it is the true intent and
meaning of these Presents that no amount or installments of Subsidy
shall be payable or be paid at any time, unless it appears to the
satisfaction of the Minister that up to the time of such installment
becoming due, as herein stipulated, the service herein described and
defined has been fully and faithfully performed, and that all provisions
and stipulations as to freight rates and dates of sailings have been in
all respects faithfully observed and carried out, according to the true
intent and meaning of these Presents; and it is understood and agreed to
be a further condition of these Presents that the Contractors shall at
least two weeks prior to the first sailing under this Contract, furnish
to the Minister time-tables showing the proposed sailings, and upon the
same being approved by the Minister, they shall be duly advertised in
such smaller manner as he may direct; and it is also agreed that in case
either of the Steamers herein named, or a substituted Steamer sanctioned
by the Minister, does not sail from a terminal port as herein specified
within of the date fixed by such time-tables, there shall be deducted
from the amount of Subsidy payable for such voyage a sum equal to
one-tenth of the amount otherwise payable for the performance of such
voyage, and so in proportion for further delays or failure to sail from
such terminal port. Provided, however that the Minister may authorize
any vessel to sail either at an earlier or later date than that
specified in such time-tables should he for any reason deem it advisable
to do so: It being understood and agreed that, in the event of any of
the said Steamers being at any time so disabled as to be obliged to be
docked for repairs, the failure to perform the terms of this Contract
owing to such accident and for the time reasonably occupied in the
repair of the damaged Streamer, shall not be taken as a default or a
breach of the Stipulations of this Contract, or subject the Contractors
to deductions as above from the amount of Subsidy, if any, payable for
any voyage delayed in consequence of such docking for repairs, but there
shall be no claim for nor payment of any Subsidy in respect of any
voyage not actually performed.
Agents Manifests 7. The Contractors shall furnish and
establish at their own expense the necessary Agents required for the
efficient performance of this Contract, and shall with diligence, as
soon after the completion of each voyage as may be, furnish to the
Minister full and complete copies of the manifests of the cargoes and
lists of passengers carried on each voyage, duly certified by the proper
officers of Customs, and also such other documents, information and
evidence as may be reasonably required by the Minister to show the
volume, extent and value of the trade carried on by the said Steamers,
and the full performance on their part of the services, requirements and
conditions of this Contract, in order to enable him to judge as to
weather the terms of this Contract have been or are being fully and
faithfully carried out and complied with, within the true intent and
meaning thereof, and his decision in that respect shall be binding,
final and conclusive; and any special officer of the Department who may
be detailed at any time shall have full and complete access to the books
of the Contractors to enable him to check the returns furnished the
Department as herein stipulated, and the furnishing of such
certificates, documents and evidence as hereinbefore specified, should
such be demanded by the Department, shall be a condition precedent to
the payment of the Subsidy herein provided for, or any portion, thereof,
and if in the opinion of the Minister all the terms of this Contract
have not been fully compiled with by the Contractors, he may deduct from
the Subsidy otherwise payable such portions thereof as he may deem fit
and proper, taking into consideration all the circumstances in
connection therewith, and the Contractors shall at all times during the
continuance of this Contract well and faithfully abide by and conform to
all such requirements as may be made by the Minister with regard to the
said Steamers in the performance of this Contract.
8. The Contractors shall at least three weeks prior to the
first sailing under this contract furnish to the Minister a schedule of
the freight rates proposed to be charged between the different ports on
both East and West bound trips, which schedule shall be subject to the
approval of the Minister, and after being approved by him shall not be
changed except with his consent: and the Minister may at any time, if he
deem it
Freight and Passenger Rates. advisable, fix the maximum rates
to be charged on any article or class of good; and the Contractors shall
carry between the ports hereinbefore named, on all voyages of the said
Steamships employed under the terms of this Contract, all passengers or
freight that may be offered or that can reasonably be procured, at rates
which shall not be in excess of such maximum rates as fixed by the
Minister, should he deem it advisable to so fix such maximum rates, and
in no case shall any discrimination be made as regards rates, or
otherwise, directly or indirectly against Canadian merchants or
shippers, who shall always have precedence for their freight and goods
over all other merchants and shippers; and it is agreed that such rates
shall in no case be greater to or from any Canadian port than they are
to or from any United States port by any regular cargo and passenger
steamship line; and it is further agreed and understood that the freight
rates on East-bound trips, sailing from North Sydney as hereinbefore
provided, on Through Bills of Lading to Port aux Basques from any places
in the Provinces of Ontario and Quebec or from any Canadian points
farther West, shall in no case be greater than from the same place to
Port aux Basques via any United States routed or port; and on West-bound
trips the rates from Port aux Basques to any place in Ontario or Quebec
or other Canadian points farther West, shall be as favorable as via any
United States route or port to the same place; and it is further
understood and agreed that the said Steamers shall not carry between the
Ports of North Sydney and Port aux Basques aforesaid, on any voyage run
under the terms of this Contract, either Deals or Lumber or Timber to a
greater extent than fifty per cent of the total quantity of the cargo
carried on such voyage, and such quantity only in case other Canadian
products are not offering or cannot be obtained. Provided, however, that
in the event of other cargo not being obtainable, satisfactory evidence
of that fact being furnished to the Minister, then the Contractors shall
be allowed to make up the balance of the cargo with Deals, Boards or
Timber.
9. The steamers to be employed as herein specified, shall at
all times during the continuance of this Contract be fully sea-worthy,
well-officered, manned, victualled, equipped, provided and furnished,
having regard to the service which the Contractors have hereby
undertaken to perform, and shall have ample and suitable accommodation
for the passengers, mails and freights to be carried over the route
specified; and shall, at all times, carry boats and life-saving
appliances in compliance with the law, and shall be in all respects
subject to the approval of the Minister.
British Subjects 10. It is further understood and agreed by
the Contractors that two-thirds of the total number of officers,
engineers, stewards, crew or other employees whatsoever upon the
steamships engaged in the performance of the service herein contracted
for, shall Be British subjects, but the non-observance of this clause
shall not constitute a violation of this contract in such individual
cases as may from time to time be approved by the Minister in writing.
Conveyance of Mails 11. The Contractors shall, during the
performance of this Contract, convey on each and every trip of the
steamers performing the aforementioned services, both on outward and
homeward voyages, all such mails as shall be tendered to the proper
officers or persons in that behalf on the said steamers by or on behalf
of or under the direction of the Postal Authorities of Canada, or of
those at the terminal ports or ports of call herein referred to, and
shall deliver all such mails at their proper destination at the terminal
ports or ports of call above referred to; and the expense of carrying
such mails from the post offices or railway stations to the Steamers and
from the Steamers to the post offices or railway stations at the
terminal ports and at the ports of call shall be borne by the
Contractors, who will be subject to all general and special regulations
now or hereafter existing during the continuance of this Contract in
connection with the postal service. For the conveyance of all such mails
no payment shall be made or required over or beyond the amount of
subsidy herein mentioned or provided for.
Accommodation for Mails12. The said Steamers shall be provided with
sufficient and convenient accommodation and protection for all such
mails to the satisfaction of the Honorable the Postmaster General of
Canada for the time being, and the Contractors shall further take all
reasonable and necessary precautions for the protection of such mails
while upon the said Steamers or while in the Contractors` charge or
custody, from loss, damage thereto caused by negligence or want of
proper care or accommodation on the part of the Contractors, their
agents or servants, or on the part of the officers, employees or crew on
board the said Steamers, and this without regard to any question as to
the legal liability of the Postmaster General to the owners of the
articles of mail matter contained in such mails for damage or loss
sustained in transit.
Definition Of Mails13. The expression “mails” for the purpose
of this Contract shall be deemed to mean and include all boxes, bags,
baskets or packets of or containing letters, postcards, newspapers,
parcels, books or printed papers, and all other articles which under the
Post Office Act and postal regulations for the time being in force are
transmissible by post in Canada, without regard to place, either of
origin or destination, and also all empty bags, empty boxes, and other
receptacles, stores and articles used or to be used in carrying on the
post office service or which shall ordinarily be sent by or to or from
the post offices.
Restriction re Mails 14. The Contractors shall not, nor shall
any of their agents or servants, or officers or crew of the said
Steamers receive or permit to be received on board of the said Steamers
any letters for conveyance other than those contained in His Majesty’s
mails or which are or may be privileged by law, nor the mails of any
other country, except such as are specified by the Postmaster General of
Canada for the time being.
Free Transportation15. The Honorable the Minister of Trade and
Commerce or the Honorable the Postmaster General for the time being, or
any inspector or officer of the Department of Trade and Commerce or of
the Post Office Department, who may in the execution of his duty travel
in the said Steamers, shall be granted free transportation (first class)
with berth and meals included.
16. The Contractors shall carry on each Steamer running under
this Contract according to its capacity, on all voyages, all the freight
and passengers which may be reasonably offered or obtained, and at
tariff rates, both as to passengers and freights, which may be from time
to time approved by the Minister; and the Contractors shall furnish to
the Minister such documents, information and evidence as may be
necessary, or as may be required, by the Minister, to show the volume,
extent and value of the trade carried on by the said Steamers, and such
Customs certificates, documents and evidence as may be necessary, or as
may be required, by the Minister to prove the performance of the
services herein contracted for, and to enable the Minister to judge as
to whether this Contract is being carefully and faithfully carried out
and performed, and the furnishing of such certificates, documents,
information and evidence as hereinbefore specified shall be a condition
precedent to the payment of the subsidy herein provided for or any
portion thereof, and the Contractors shall allow any officer or officers
named by the Minister free access to such accounts, and all books,
papers, and documents connected therewith.
Foreign Ports17. The Steamers employed in carrying out the
provisions of this Contract shall not on any voyages either outwards or
homewards call at any Foreign Port not specified in this Contract.
Explosives 18. The Contractors shall not convey or permit to
be conveyed in any Steamer while employed in this service any
nitro-glycerin or any other articles which in the opinion of the
Minister shall be considered dangerous.
Agents 19. The Contractors shall furnish and provide at their
own expense the necessary agents required at each and all the ports
aforesaid for the purpose of carrying on the business of the said
Steamers during the performance of this Contract.
Orders by Minister 20. The Contractors shall at all times
during the performance of this Contract well and faithfully abide and
conform to all such regulations as may be made by the Minister with
regard to the business of the said Steamers in the performance of this
Contract.
Disablement or Wreck 21. It is understood that if any of the
said Steamers shall be by peril of the sea or other unavoidable
casualty, lost, destroyed, or temporarily disabled from performing the
voyages herein agreed to be performed according to the true intent and
meaning of these presents, the Contractors may in such case as soon as
reasonably may be, having regard to the circumstances, replace the said
Steamer by another of equal class, speed, equipment, character and
capacity to the satisfaction and approval of the Minister, in case the
said Steamer has been only temporarily disabled, and continue the
services herein contracted for with such substituted or repaired Steamer
with as little delay as possible under all circumstances.
Vote of Parliament 22. It is conditioned, declared and agreed
that the payment of subsidy, as herein stipulated, is subject to the
amount specified being provided for the purpose by a vote of the
Parliament of Canada, and that if no amount is voted for the purpose, or
if any amount voted has become exhausted in payment thereof, and no
further sum is voted for the purpose, this Contract or Agreement shall
terminate and become void and no effect, and the party of the first part
shall not in consequence be held liable to damages.
Minister’s right to Cancel Contract 23. It is declared to be
the true intent and meaning of these presents that the Minister shall
have the right at any time during the continuance of this upon thirty
days notice in writing to the Contractors, their Contract successors or
assigns, to terminate this Contract and every matter and thing herein
contained, if it shall appear to the Minister that there has been any
breach on the part of the Contractors, their successors or assigns of
any of the covenants, agreements, stipulations or provisions herein
contained and entered into on the part of the Contractors; and it is
declared and agreed that the Minister shall at all times be the sole and
final judge as to whether there has been any such breach, and his
decision shall be absolute, final and conclusive.
24. This Contract shall not, nor shall any right or interest
therein be assigned without the consent in writing of the Minister to
such assignment having been first obtained.
M.P.’s must not share or benefit 25. It is a condition of
these presents that no member of the House of Commons of Canada shall be
admitted to any share or part of this Contract or agreement nor to any
benefit to arise therefrom.
Changes 26. The Minister may authorize any change or changes
in the terms of this contract as may not be inconsistent with the vote
providing for the payment of the Subsidy.
Minister’s decision final 27. The Minister shall at all times
be the judge as to whether the terms of this Contract have been or are
being fully and faithfully carried out and complied with within the true
intent and meaning thereof, and his decision in that respect shall be
binding, final and conclusive.
Freight Rates 28. The Minister shall at any time have the
right to revise the freight and passenger rates charged by the said
company or prescribe the maximum rates which may be charged upon any
Steamer performing the service under this contract, which freight and
passenger rates shall be made available at all times to the public at
the head office and the offices of the agents of the Contractors.
Government wharves 29. In consideration of the subsidy herein
stipulated the Contractors agree to call at all Government wharves when
such is practicable and when such wharves are available.
Financial Statements 30. It is further understood and agreed
that the Contractors shall furnish the Minister at the close of their
financial year occurring during the period covered by this agreement,
with a financial statement of all revenues derived from and all
expenditures in connection with the conduct of the service herein
provided for, such statement to be upon the form for the purpose which
will be provided, on application therefore, by the Department.
In witness whereof the right Honorable Sir George Eulas
Foster, K.C.M.G., P.C., M.P, the minister hath hereto set and
affixed his hand and seal as such. The President and General Manager
of the said Company, hath hereunto set his hand and affixed the seal of
the said Company, on the day and year first above written.
Source: The Rooms, Provincial Archives |
