"2. The Hudson's Bay Company (directly or through parties to be appointed by them, as they may elect) to construct a telegraph line from Fort Langley to Jasper House, thence to Fort Garry, and on to the United States boundary, near Pembina, to be completed on or before the 15th October, 1865; and also a telegraph from Fort Garry to the Hudson's Bay post at Fort William, at the head of Lake Superior; and also to make arrangements with other parties to erect a telegraph from Fort William to the Sault St. Marie, with all necessary instruments, stations, staff, and appliances for a first-class through and local telegraph line: provided always that the construction of the telegraph between Fort Garry and Sault St. Marie is dependent upon arrangements with the Canadian Government, and that it is understood that, failing or pending these arrangements, the route to be adopted shall be via Detroit, St. Paul, and Pembina to Fort Garry.

"3. The telegraph from Fort Langley to Halifax to be worked for all through business as one through system, and the through rates to be divided pro rata the mileage, except that for the lines west of the Sault St. Marie (to be erected by the Hudson's Bay Company as above) an additional mileage proportion of thirty-three per cent. over the actual distance shall be allowed, until those lines pay ten per cent per annum on the outlay, after paying all operating and other expenses, including repairs and renewals, and this allowance shall be a condition with the United States lines between Canada and the Hudson's Bay boundary.

"4. Arrangements to be made by the Montreal Telegraph Company, with parties in the United States, for the construction of a telegraph from St. Paul to the connecting point near Pembina.

"5. The Sault St. Marie and Sarnia to be respectively the boundaries of the Montreal Telegraph Company and of the Hudson's Bay Company and their representatives, for the purposes of this Agreement.

"6. This Agreement to be for twenty-five years.

"(Signed) EDWD. W. WATKIN.
"(Signed) O. S. WOOD.

"Montreal, August 10_th_, 1863."

"Agreement between Mr. Edward W. Watkin and Mr. O. S. Wood, for the construction of the telegraph between Fort Garry and Jasper House, and, if hereafter agreed, between Fort Langley and Jasper House, and Fort Garry and the United States boundary near Pembina (subject to the approval of the Governor and Committee of the Hudson's Bay Company in England).

"1. Mr. Wood to construct a telegraph, and all needful works and stations, from Fort Garry to Jasper House, at the cost of the Hudson's Bay Company, and to put the same in full operating order, and also instruct, and where necessary provide, the staff for the operation and repair of the line.

"2. Mr. Wood to proceed with Governor Dallas to St. Paul, with as little delay as possible, and on to Fort Garry, if necessary; and to make all arrangements required for transporting the telegraph wire, insulators, fittings, instruments, and other materials to Fort Garry; for distributing all materials from Fort Garry; for cutting, preparing, and distributing the poles; and generally for commencing and for completing the work (including a system of posts at proper distances apart) in an efficient manner, and at the earliest period.