may easily be imagined that to the ordinary voter the Conservative
_personnel_ proved somewhat disquieting. Success at the polls would
have enabled Mr Reid to say, with Louis XIV.--"_L'Etat, c'est moi._"
Amid extraordinary excitement the election was fought in the autumn of
1900 on the sole issue of the Reid contract, and resulted in a
sweeping victory for the Liberal party, supporting Mr Bond in his
policy as to Mr Reid's monopolies.

The Reid Contract has been dealt with at this length at a sacrifice of
proportion which the writer believes to be apparent rather than real.
Newfoundland is newly emerged from infancy. The story of its childhood
is relatively uneventful, but the political experiments of its
adolescence must be of absorbing interest to all students of politics.

In 1901 an Act was passed giving sanction to a new agreement with Mr
Reid in regard to the railways, and incorporating the Reid
Newfoundland Company. Under the agreement the sum of one million
dollars was to be paid to him in consideration of the surrender by him
of the right to own the railway at the end of 1938; and 850,000
dollars instead of 21/2 million acres of land to which he had become
entitled as a bonus for undertaking to operate the railway until 1938.
He still had, however, claims in respect of certain rolling-stock and
equipment that had been provided under earlier contracts; and also
claims arising through the surrender of the telegraphs. All these were
submitted to arbitration, resulting in awards to Mr Reid of 894,000
dollars and 11/2 million dollars respectively. However, under the new
arrangement, Mr Reid ceased to be the virtual owner of the railway
system; and became merely a contractor for its operation. The Reid
Newfoundland Company, by agreement with Mr Reid, and with a capital of
25 million dollars, came into possession of over 21/2 million acres of
land, with timber, mineral, and other rights thereon, and took over
all existing contracts for working the railway, and mail and steamboat
services of the colony, including St. John's Dry Dock and the St.
John's tramways, as well as powers for electric lighting in the
capital. The new Company commenced operations on September 1st, 1901.

With the beginning of the twentieth century was inaugurated an epoch
of political as well as economic progress in the history of the
island. The numerous and widespread activities of the new enterprise
gave a great impetus to the colony: it en