 Although forested land was much more valuable to Reid, if the area along the line was barren or boggy, he was allowed to select other land of his choosing.In 1896, the company established the St. John's Street Railway Company and given permission to build the Petty Harbour Hydro Plant to supply power to it.In 1896, he negotiated another contract, the Railway Contract of 1896, to build the railway from Whitbourne to Harbour Grace which gave him ownership of the entire railway (including the line to Harbour Grace) for 50 years and again of land for every built.