North America, 1860]

{93}

CHAPTER VI

THE INTERCOLONIAL

The Battle of the Gauges--Expansion and Competition--Local
Bonusing--The Intercolonial

The first 'age of iron--and of brass' came to an end before 1860.
Between 1850 and 1860, it has been seen, the mileage of all the
provinces grew from 66 to 2065. By 1867 it had increased only 213
miles. In two of the intervening years not a mile was built. A halt
had come, for stock-taking and heart-searching.

This first era of activity had given as its most obvious result over
two thousand miles of railway. In Nova Scotia, Halifax was linked with
the Bay of Fundy and the Gulf of St Lawrence; in New Brunswick, St John
was connected with the Gulf, and a road was struggling Canadaward from
St Andrews. In the Canadas a 'Grant Trunk,' so nicknamed, ran from
Riviere du Loup the whole length of the province to Sarnia, while
lesser roads opened up new districts to the north or gave connection
with the grain-fields and the ocean {94} ports of the United States.
The western province, at all events, was well served for a pioneer
country, and the shipper and consumer had no great cause for complaint.

To the taxpayer it seemed otherwise. He had been induced to embark on
a lavish policy of financial aid on the assurance that the roads would
at worst be no burden, and at best might yield large profits to the
state. As a matter of fact, nine out of every ten dollars advanced
might be written off as lost. The Grand Trunk, Great Western, and
Northern roads were indebted to the old province of Canada on July 1,
1867, in over twenty million dollars for principal advanced and in over
thirteen millions for interest. Other roads were indebted to Canadian
municipalities in nearly ten millions for principal alone. Yet the
taxpayer was not wholly justified in his grumbling. There had been
waste and mismanagement, it is true, but the railways had brought
indirect gain that more than offset the direct loss. Farming districts
were opened up rapidly, freights were reduced in many sections,
intercourse was facilitated, and land values were raised. The
contribution to the railways was bread well cast upon the waters. It
would have been better, if foresight had {95} equalled hindsight, to
have given the money out and out.

For the shareholder, English or Canadian, there was little but
disappointment. Grand Trunk ordinary stock in 1865 was selling at 22,
and even Great Wes