The fight still on.

Mr. Mackenzie and Aurora & Schomberg Ry.

Refuse to agree to a compromise route for line, and Mr. C. D. Warren put in a box.

Saturday's Toronto News.

The proposed settlement of the Aurora and Schomberg arbitration, which seemed to be in sight a week ago, is further away than ever, and the fight is on again. The dispute is as to the location of the electric railway of that name, Captain Armstrong and others living in Lloydtown, who became shareholders because of the benefits they expected to accrue from its construction, objecting to the deviation which left Lloydtown to the side. Last Saturday engineers reported a compromise route for the line in accordance with the suggestion of Judge Winchester, but after consideration, the railway, which is now controlled by William Mackenzie, declined to adopt the course mapped out for it. Consequently the case went on today before his Honor. Mr. C. D. Warren, president of the Metropolitan Railway, was put in the box, and said the line would never have been built if his company had not taken over the charter from the Armstrongs, who had never received any bonus.

Mr. Warren deposed that he personally, and not the Metropolitan, had directed Manager Moyes to see the Armstrongs and secure the charters from them which they had obtained from the Government. Options were secured and Mr. Moyes was compensated for his work. He did not know that it was because the proposed line would be a convenience to the villages of Lloydtown and Schomberg that the Government granted the charter, but the extension of the charter was certainly opposed more or less vigorously. The next extension the Metropolitan now had under contemplation was from Schomberg to Meaford.

It was in February, 1901, that his control of the road passed over to William Mackenzie, and not to Mackenzie & Mann, as a letter written by him at the time stated. He relinquished control by an agreement by which, in order to keep good faith with Captain Armstrong and the people of Lloydtown, he insisted that Mr. Mackenzie, in buying the Metropolitan, should buy out his interest in the Schomberg line and build the extension to Lloydtown. When the line was diverted and did not run close to the Armstrong residence Caption Armstrong was very angry, claiming that faith with him had been broken. Witness did not think the railway was bound to any line. But that it would be allowed to deviate a mile at least either way.

Mr. Warren admitted to Captain Armstrong's counsel that the latter's company would have been entitled to $45,000 in bonuses from the Dominion Government, if they had built the line, or at the rate of $3,200 a mile.

Railways: S. & A.Ry.

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