In 1901 an Act was passed giving sanction to a new agreement with Mr Reid in regard to the railways, and incorporating the Reid Newfoundland Company. Under the agreement the sum of one million dollars was to be paid to him in consideration of the surrender by him of the right to own the railway at the end of 1938; and 850,000 dollars instead of 21/2 million acres of land to which he had become entitled as a bonus for undertaking to operate the railway until 1938. He still had, however, claims in respect of certain rolling-stock and equipment that had been provided under earlier contracts; and also claims arising through the surrender of the telegraphs. All these were submitted to arbitration, resulting in awards to Mr Reid of 894,000 dollars and 11/2 million dollars respectively. However, under the new arrangement, Mr Reid ceased to be the virtual owner of the railway system; and became merely a contractor for its operation. The Reid Newfoundland Company, by agreement with Mr Reid, and with a capital of 25 million dollars, came into possession of over 21/2 million acres of land, with timber, mineral, and other rights thereon, and took over all existing contracts for working the railway, and mail and steamboat services of the colony, including St. John's Dry Dock and the St. John's tramways, as well as powers for electric lighting in the capital. The new Company commenced operations on September 1st, 1901. With the beginning of the twentieth century was inaugurated an epoch of political as well as economic progress in the history of the island. The numerous and widespread activities of the new enterprise gave a great impetus to the colony: it ensured the efficient working of the railway, and gave employment at a good wage to an army of working men in the various branches, and also in connection with the flotilla of steamers that were run. Other spheres of activity were gradually opened up, _e.g._ the establishment of a sawmill to furnish the timber necessary for the various needs of the scheme, the opening of a granite quarry to supply material for bridge building and paving the streets of the capital, the development of a slate area and oil boring, coal mining, the construction of a hotel in St. John's, etc. The expansion of the undertaking increased from year to year, and included such projects as the establishment of flour mills, pulp and paper mills, etc. Next to the Government itself, the Reid Company became the largest paymaster in the island.[52] Other factors contributing to the material advancement of the country were the development of the iron mines at Belle Island, and the production of pulp and paper by the "Anglo-Newfoundland Development Company," the initiators and controllers of which were Messrs Harmsworth, the well-known newspaper proprietors. This company was followed soon afterwards by the Albert Reed Company of London.