On February 22nd, 1898, Mr Chamberlain received a telegram from the Governor, Sir Herbert Murray, advising him that a novel resolution had been submitted to the Houses of Legislature by his responsible advisers. A fuller telegram six days later, and a letter intervening, explained the proposals in detail. To put the matter as shortly as possible, the Government advised the sale to a well-known Canadian contractor, Mr R.G. Reid, of certain valuable colonial assets. In the first place, Mr Reid was to purchase all lines of railway from the Government for 1,000,000 dollars; this amount was the price of the ultimate reversion, the contractor undertaking to operate the lines for fifty years on agreed terms, and to re-ballast them. If he failed in this operation his reversionary rights became forfeit. For carrying the Government mails he was to receive an annual subsidy of 42,000 dollars. Minute covenants by the contractor were inserted in the draft contract, "in consideration whereof," it continued, "the Government hereby covenant and agree to and with the contractor, to grant to him in fee simple ... 5,000 acres of land for each one mile of main line or branch railway throughout the entire length of the lines to be operated: the expression 'in fee simple' to include with the land all mines, ores, precious metals, minerals, stones, and mineral oils of every kind." Besides these general concessions a particular grant of mineral land was made. The areas of land near Grand Lake, in which coal had been discovered, were transferred to Mr Reid, on condition that he should so work the coal mines as to produce not less than 50,000 tons of coal per annum. The contract then passed on to deal with the service of mail steamers. Under this head eight steamers for various services were to be provided by the contractor, and by him manned and equipped. In consideration therefor the Government undertook to pay subsidies upon an agreed scale. The docks were next disposed of. Under this head the Government agreed to sell to the contractor the St. John's Dry Dock for 325,000 dollars. The next available asset was the telegraph service. Here the agreement provided that the contractor should assume responsibility for all telegraph lines until 1904, in return for an annual subsidy of 10,000 dollars, and after 1904, until the period of fifty years was completed, should maintain them free of any charge to the colony by way of subsidy or otherwise. By a later section of the draft contract it was provided that the contractor should not assign or sublet the contract, or any part or portion thereof, to any person or corporation whomsoever without the consent of the Government. The language of this prohibition is curiously general, and is indeed sufficient in its terms to prohibit assignments _mortis causa_, as well as those _inter vivos_. Such a result can hardly have been contemplated.