City Council Proceedings.

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Toronto, Simcoe and Huron Railroad.

The Council resolved into Committee of the whole.

Councillor Thomson, as Chairman of the Finance Committee, submitted the following report:

The Standing Committee on Finance and Assessment, to whom was referred the Communication of John Arnald and G. A. Barber, Esquires, on the subject of the Toronto, Simcoe and Huron Railroad, beg leave to submit the following Report:

Your Committee having given their best attention to the several propositions contained int he said letter, are of opinion that the proposal contained in the first question submitted, is that which is most deserving of the consideration of your worshipful body. The question is as follows:

"1st. Would the Corporation, upon the sum of £100,000 being subscribed, payable by bonds in 20 years, issue their debentures to the contractors, and take these bonds, and the stock that they would represent, in security therefore; the Corporation, as proposed, being represented in the Direction of the Company, to see the proper disposal of the £100,000, &c.?"

The other propositions appears to year Committee to be all more or less objectionable—the second, because it seems to offer no sufficient guaranteed for the proper disposal of the debentures proposed to be used; the third, because it involves the necessity of taxing the citizens of Toronto, for a purpose for which they have already declared their unwillingness to be taxed; and the fourth, because it appears to this Committee to be impracticable, and because there seems no reason to believe that the Legislature would confer on you worshipful body the necessary authority to carry it out.

As a general principle, your Committee are of opinion, that whenever any large number of respectable citizens declare their willingness to provide the necessary funds for any public undertaking of evident benefit to the city, it is plainly the duty of the Corporation to assist them as far as is compatible with a due regard to the interests of the great bulk of the citizens; and that upon such conditions they are entitled to expect your worshipful body to aid them with the credit of the city, in carrying out such an undertaking. The points therefore which your Committee think it necessary to determine, are—First, whether the proposed undertaking is likely to prove really beneficial to the whole body of the citizens—a question which your Committee believe the great majority of the citizens will answer in the affirmative—and Secondly, whether the assistance asked for, is or is not likely to entail a heavy burden upon the funds of that city. The proposal is, in effect, that the Corporation of this city should advance Debentures upon the security of the personal bonds of Shareholders in the Railroad Company, receiving the scrip of the company issued to such shareholders, as collateral security. It is to be presumed that authority would in that case be obtained from the Legislature, to receive such bonds, to collect the installments payable on account of the same, with the annual interest thereon, and to apply the amount to the purposes of a sinking fund for the redemption of the Debentures; and that the Corporation of this city should be required to levy annually, by assessment upon the city, such sum only as would be necessary to meet any deficiency occasioned by default of payment, whether of principal or interest, of these bonds. The probable amount of such default, therefore, seems to be the true question for consideration. With respect to this, your Committee are disposed to think that with due care in the admission of stockholders, and the enforcement of a small payment in advance of each share, that deficiency would probably not be likely to exceed, at the outside, twenty-five per cent., against which is to be placed the accumulating in terest upon the sinking fund, which would ultimately form a most important item, nearly sufficient in itself to counterbalance the probable deficiency.

Under these considerations, your Committee see nothing in the first proposition submitted, which may not be favorably received by your worshipful body—conditioned, of course, that the necessary legal authority be obtained. Should the Legislature consent to authorize the Corporation to collect installments and interest above alluded to, along with, and as a part of the ordinary city taxation, the operation would be greatly facilitated.

Your Committee therefore strongly recommend, that so soon as legal authority shall have been obtained to enable your worshipful body to do so, with the power defined above, and so soon as responsible parties shall have subscribed to the amount of One Hundred Thousand Pounds in capital stock of the Toronto, Simcoe and Lake Huron Railroad, and shall have paid an installment of ten per cent. thereon, then that a by-law of this Council be passed, providing for the collection of whatever sum may be necessary to cover any deficiency in the amount of one-twentieth part of such Debentures now required by law to be raised annually, with the interest thereon, and no more; and that the bonds of the shareholders for redemption of the principal and interest, and the scrip of the company, be received as security for the repayment of debentures so issued. Provided, that such precautions be taken in the establishment of the said Railroad Company, and the arrangements for constructing the railroad, as shall be satisfactory to your worshipful body.

A very lengthened discussion ensued as to the propriety of adopting the recommendation of the Report.

Councillor Thompson stated that it had been suggested to have the report printed, and to adjourn to Thursday in order to give time for the consideration of it. He was desirous to lose no time, but would submit to the decision of the Council.

Councillor Smith moved that the Report be printed for the use of the Council, and that the matter be postponed to give time for consideration.

The Mayor suggested that the Report be now considered, and that the Committee rise, report and ask leave to sit again if necessary.

Councillor Ritchie thought they had already waited too long, and unless something was now speedily done, they might conclude that they would not have a railroad at all, if they waited to propose amendments, Parliament would be closed and they would not get the sanction of the Legislature, without which they could not proceed. He was of opinion that they should not postpone the report one day, if they had any desire to see the city of Toronto prosper. They have been striving for the last fifteen or sixteen years to get a railroad, and they were at the present moment as far forward as ever. He trusted therefore that the Council would not think of postponement.

Councillor Dunn had never been able to form any judgment about that railroad, where it was to start from, or where it was to terminate. He thought some definite proposition should have been submitted.

Alderman Duggan was prepared to vote for the proposition submitted to the Council. It might involve great inconvenience did they delay, as the Parliament was about to be prorogued, and the railroad was very desirable. They had set to work to get a railroad long before the city of the country was ripe for it—that was the secret of the matter why they had not succeeded before. But the mass of the people were not yet convinced of its advantages although the citizens of Toronto were taking an interest in it. It would be a great advantage to the city and he thought they might with great propriety assist the people who were willing to put their hands in their pockets to construct this railroad. The most they could lose would be 20 per cent. They could not however go on until £10,000 was laid down and bonds for £90,000, of good substantial men, payable by installments.

Councillor Thomson said, when they saw the citizens coming forward to subscribe their means to carry out a great public undertaking for the benefit of the city and country generally, he conceived the Council was bound to give their assistance. In this case he thought the corporation would run so slight a risk that he could not see how they would object to it. The real difficulty would be to get £100,000 tax upon the city, and if that was done the whole matter was finished.Thompson claims he was misquoted or perhaps misspoke in his August 1, 1850 Letter to the Editor It might be as well to mention one circumstance which would affect the question. The Legislative Council had that day thrown out the bill to renew the charter of the Toronto and Lake Huron Railroad, consequently there would be nothing done in that quarter this session. At any rate it would show how necessary it was for them to carry out this proposal at once. Even if the report was adopted nothing could be done until the amount of £100,000 be subscribed for and the bonds given, and £10,000 paid down. The time allowed to pay up this was 20 years, so that the risk of the Council was so very slight that they could have no difficulty in voting it. The citizens are so desirous to have it that they are willing that those only be taxed who wish to be taxed, except for any deficiency which from misfortune or any other cause might arise.Ibid. With that explanation he would move that the report be adopted.

Alderman Dempsey thought it better that the Report be printed, and a special meeting called to consider it. But he was prepared to vote at present.

After some further discussions the report was agreed to.

The Mayor having resumed the chair, the chairmen reported progress, and the report was carried on a division of 14 to 1. Councillor Davis having voted against it.

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