rted in the draft
contract, "in consideration whereof," it continued, "the Government
hereby covenant and agree to and with the contractor, to grant to him
in fee simple ... 5,000 acres of land for each one mile of main line
or branch railway throughout the entire length of the lines to be
operated: the expression 'in fee simple' to include with the land all
mines, ores, precious metals, minerals, stones, and mineral oils of
every kind." Besides these general concessions a particular grant of
mineral land was made. The areas of land near Grand Lake, in which
coal had been discovered, were transferred to Mr Reid, on condition
that he should so work the coal mines as to produce not less than
50,000 tons of coal per annum.

The contract then passed on to deal with the service of mail steamers.
Under this head eight steamers for various services were to be
provided by the contractor, and by him manned and equipped. In
consideration therefor the Government undertook to pay subsidies upon
an agreed scale. The docks were next disposed of. Under this head the
Government agreed to sell to the contractor the St. John's Dry Dock
for 325,000 dollars. The next available asset was the telegraph
service. Here the agreement provided that the contractor should assume
responsibility for all telegraph lines until 1904, in return for an
annual subsidy of 10,000 dollars, and after 1904, until the period of
fifty years was completed, should maintain them free of any charge to
the colony by way of subsidy or otherwise.

By a later section of the draft contract it was provided that the
contractor should not assign or sublet the contract, or any part or
portion thereof, to any person or corporation whomsoever without the
consent of the Government. The language of this prohibition is
curiously general, and is indeed sufficient in its terms to prohibit
assignments _mortis causa_, as well as those _inter vivos_. Such a
result can hardly have been contemplated.

By the last section it was recorded that "the Government undertake to
enact all such legislation as may be necessary to give full effect to
the contract and the several clauses and provisions thereof, according
to the spirit and intent thereof, and also such as may be necessary to
facilitate and enforce the collection and payment of fares and rates,
the preservation of order and discipline in the trains and stations,
and generally to give to the contractor all such powers, rights, and
p