be given its men; (3) the remaining three-eights should be given at a date to be arranged between the Company and its men; (4) that in order to equalize wages on the Grand Trunk and other standardized lines conditions of service must also be standardized; (5) that the same basis of pay should be adopted on the Grand Trunk as on the C. P. R. and other railways, namely, the men should be paid so much a hundred miles, instead of so much a month. Mr. Hays proposed an 18 per cent. increase of wages to be distributed at so much a month among the Company's employees affected. This increase, he said, was equivalent to the five-eights advance laid down in the Award as the first step toward standardization. As for the remaining step Mr. Hays proposed that it should be taken when the Grand Trunk Pacific was completed and when, through it, the Grand Trunk was getting its share of profitable Western traffic. He refused to adopt the mileage basis of pay or the standardization of rules recommended in the Award. Financial conditions at present made this impossible.

From July 18 until Aug. 2nd the strike lasted. The Company maintained a strong position from the first. On July 26, a circular was issued to the men ordering their return to work and stating that if they would not do so their places would be filled. A certain number came back as the days and weeks passed and new men came forward in hundreds; some disorders took place-notably at Brockville on the 22nd where a riot occurred and the Militia had to be called out and at Belleville on the 21st where two men were hurt; the loss to the men in wages was estimated as at least $300,000 a month and to the Company in freight it must have been considerable; passenger trains were running on time between principal points before very long though freight trains were much later in getting near to normal conditions. The Government, or Department of Labour, early offered its services and the Minister, Mr. Mackenzie King, was unremitting in his efforts to effect a settlement.

He stated on July 20 that the Government would pay all expenses of a Board of Arbitration, with findings which must bind both sides, but the men at first refused to consider the proposal except in the form which they had before suggested of two United States Arbitrators and Mr. Hays simply noted that the Minister's idea was the proposal he had himself made on July 8; finally, on July 23rd, the Minister received a telegram from James Murdoch, representing the men, stating that arbitration would be accepted with a Board mutually satisfactory and one from Mr. Hays stating that the time had now passed for arbitration and that, with adequate legal protection, the full operation of the road would be resumed. This attitude was maintained and by the time a settlement was effected the Railway was running in pretty good shape. As arranged, on Aug. 2nd, the men accepted the 18 per cent. increase, said to be equivalent to the Conciliation Board's Award,

the increase to take effect not on July 18th but on May 1st, 1910; a standard mileage basis of pay to take effect January 1st, 1912; the standard rules to take effect Jan. 1st, 1912. They returned to work with the exception of about 300 who had to wait for openings and who were still out at the end of the year; and they came back as new men losing their time and claims in the Pension Fund of the Company.

Other incidents of the year included the obtaining by the Grand Trunk, through its affiliated line, the Central Vermont Railway, of the right of extension through Massachusetts, to Providence, Rhode Island; the presentation of a viaduct scheme for Montreal to the Railway Commission which would cost $8,000,000 and abolish numerous grade crossings in that city; the statement by E. H. Fitzhugh, 1st Vice-President, in Toronto, on Apl. 2nd that plans and designs had been prepared for a splendid new station in that City but were awaiting settlement of certain matters with the C. P. R.; the application to Parliament in October for the repeal of that clause in their original Charter, which provided that the fare for each third-class passenger on the line between Montreal and Toronto should not exceed one penny for each mile travelled, and that at least one train having third-class carriages should run each way every day. The business of the G. T. R. during 1910 was as follows:

Meanwhile the Grand Trunk Pacific from Winnipeg westward had been making the progress, already summarized, toward the period when, it was claimed, the food products of Saskatchewan and Alberta would find a cheap route via this Line westward, by way of Prince Rupert and its Steamship Lines, to and through the Panama Canal. It was stated that the low grades through the Mountains would greatly decrease the general cost of haulage.

Great development was said to be accompanying the Railway across the prairie Provinces where the Divisional points were Rivers in Manitoba, Melville, Watrous and Biggar in Saskatchewan and Wainwright and Edson in Alberta with the following townsites showing conspicuous growth during 1910:

Incidents of the year included the steady construction of the main shops of the great future system in St. Boniface at an estimated cost of $4,000,000; the departure from Winnipeg on July 8 of its first Edmonton Express; the continuous discovery of great mineral wealth in mountains and elsewhere along the route of the Railway and in other places of unexpectedly rich land or splendid forests; the visit of President Hays, Mr. Smithers and other officials to Vancouver, Victoria, Prince Rupert, Fort George and other Coast points in August; the urgent need of more labourers for construction-a shortage in British Columbia of almost 5,000 men-as to which Mr. Smithers said to the Victoria press on Sept. 3rd: "The people of England will not continue to pour their money in here at the very low rate of interest paid unless they can see that their investments are secured. All we get is four per cent. It cannot be expected that more will be sent unless the present labour conditions are relieved. We find it impossible to get half the men we want on the Grand Trunk construction work, and yet the men are paid $3.00 and $3.50 a day."

The Minister of Railways (Mr. Graham) at Prince Albert on Sept. 5th said that the Line from Winnipeg to Saskatoon was "the most perfect newly constructed railway on the continent "; an agreement was secured with the Canadian Northern to secure running rights over its lines at Winnipeg; the fear was expressed semi-officially that unless labour conditions changed on the Coast the Line could not be completed by 1914 as promised and after this the McBride Government refused to permit the use of Asiatic labour; the statement was made by E. J. Chamberlain, General Manager, at Ottawa on Oct. 21 that "the relaxation of immigration regulations has to some extent relieved the labour situation but many more men are needed for the Mountain section. There are now 4,500 labourers engaged in it and there should be 8,000." A thousand miles of Line were in operation and 800 branch lines under contract, at the close of the year. Terms were settled with Regina and Prince Albert during the year for the construction of large works or terminals and with Prince Rupert and the Government for a large dock. Meanwhile, a Pacific Coast Steam