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RSM 1990, c. 133
The Operation of a Railway to the Flin Flon Mines Act
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WHEREAS An Act to Ratify a certain Agreement on behalf of His Majesty respecting the Operation of a Railway to the Flin Flon Mines and to amend "An Act to Incorporate the 'Manitoba Northern Railway Company'" was assented to February 7, 1928;
AND WHEREAS it is considered advisable to continue this Act in the body of Manitoba's laws in its original form without revision;
AND WHEREAS the Minister of Justice has caused this Act to be prepared in English and French for re-enactment in accordance with a judgment dated June 13, 1985 and an order dated November 4, 1985 of the Supreme Court of Canada;
THEREFORE HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
1 The agreement, dated the seventeenth day of December, 1927, made between His Majesty and the Manitoba Northern Railway Company and Canadian National Railway Company, a copy of which forms the schedule hereto, is hereby approved, ratified and confirmed.
2 The sums (if any) required to be paid by the Province under the said agreement shall be paid only out of moneys hereafter provided by the Legislature for the purpose.
This agreement made this seventeenth day of December, A.D. 1927:
HIS MAJESTY THE KING, in the right of the Province of Manitoba, herein represented by the President of the Executive Council and the Railway Commissioner of Manitoba (hereinafter called "the Province"),
of the First Part;
MANITOBA NORTHERN RAILWAY COMPANY (hereinafter called the "Manitoba Northern"),
of the Second Part;
CANADIAN NATIONAL RAILWAY COMPANY (hereinafter called "Canadian National"),
of the Third Part.
Whereas the Province, for the purpose of developing its resources, is desirous that a line of railway should be constructed from a connection with the Hudson Bay Railway, about seven (7) miles north of The Pas, north-westerly to the property known as the Flin Flon Mine, in the Province of Manitoba;
And whereas the Manitoba Northern is a company incorporated by statute of the Province of Manitoba and is empowered to construct the said line and has undertaken to do so upon the conditions hereinafter set out, and to lease the said line, when constructed, to Canadian National which will operate the same;
And whereas it is anticipated that for some years after the said line of railway is completed deficits in net income may be sustained by the operating company;
And whereas the Province has agreed to assist the project in the manner hereinafter set forth;
Witnesseth that, in consideration of the premises, the parties hereto have agreed each with the others as follows:
1 The Manitoba Northern agrees to forthwith proceed with the construction of the said line of railway in accordance with plans and specifications to be approved by the Minister of Railways for Canada and to complete such construction with all reasonable expedition and to lease the said line of railway when completed to Canadian National;
2 Canadian National agrees that the said line of railway upon completion shall be maintained in good order and condition and shall be operated without interruption in accordance with the needs of traffic and of the travelling public; any dispute as to the sufficiency of such service shall be determined by the Board of Railway Commissioners for Canada; provided, however, that if default be made by Flin Flon Mines, Limited, the owner of the Flin Flon Mine, or its successors or assigns, in its agreement with the Manitoba Northern to construct or have constructed on or in connection with its said property, a mill and other reduction works and a power plant, within the time provided for so doing, the Canadian National may cease maintenance and operation of the said line of railway and thereafter the Province shall be released from its obligations hereunder;
3 If, after the said line of railway is completed there should be an annual operating deficit in the Canadian National's net income in respect of the maintenance and operation thereof the Province agrees that it will, for the period of five years from the date on which the said line of railway is with the leave of the Board of Railway Commissioners opened for the carriage of traffic by Canadian National, pay annually to Canadian National within thirty (30) days after the receipt of the certificate hereinafter provided for in the next succeeding paragraph of this agreement, the annual operating deficit up to but not exceeding the amount of One Hundred Thousand Dollars ($100,000) in any one year, such deficit to be ascertained according to such formula as shall be approved in writing by the Board of Railway Commissioners for
Canada or such officer of the said board as the said board may appoint, it being agreed that in such formula there shall be included as an operating expense the amount of rental paid annually by the Canadian National to Manitoba Northern for lease of the line of railway, but such rental so charged for any year is not to exceed the amount of interest paid or payable by the Manitoba Northern on the capital cost of the line of railway at the date of the taking over of the same for operation by the Canadian National;
4 It is mutually agreed that the certificate of the Vice-President of Finance of Canadian National or such officer as may at the time be performing the duties of such Vice-President (which certificate shall contain a summarized statement of account showing the deficit), certified as correct in accordance with said formula by the Chief Traffic Officer of the Board of Railway Commissioners for Canada, shall be conclusive evidence as to the existence and amount of such deficit in any year, but the Province may, if it so desires, take steps at its own expense to verify the statements contained in any such certificate and for such purpose shall have access to all the records and accounts upon which the certificate is founded, and any inaccuracies discovered shall be rectified in subsequent years, but no payments due or becoming due shall be deferred pending such verification;
5 This agreement shall be binding upon and shall enure for the benefit of the successors and assigns of Manitoba Northern and Canadian National;
In witness whereof the parties hereto have duly executed this agreement.
Signed, sealed JOHN BRACKEN,
and delivered President of the
in the presence Executive Council
of of the Province.
W.R. COTTINGHAM A. PREFONTAINE
as to John Bracken Railway
and A. Préfontaine Commissioner
G.M. HAIR G.A. BELL
Northern Rly. Co.
National Rly. Co.
NOTE: This Act replaces S.M. 1928, c. 19.