Railway, as well as the government-owned Placentia branch, in order to unify the system across the entire island (known as the Railway Contract of '98). The Reid company agreed to operate the lines for 50 years, in exchange for outright ownership and land grants. They also purchased the government drydock in St. John's and the telegraph system. The Reid company purchased eight new steamships to operate as coastal ferries around the island and into Labrador. Controversy followed the awarding of so many assets to Reid, and in 1901 the contracts were modified to place everything under a limited liability corporation, named the Reid Newfoundland Company. Reid's railway development in the colony began to attract attention to the potential of the island's natural resources. In 1903, the Reids partnered with a St. John's businessman, Harry J. Crowe, to purchase timber rights in Botwood, Norris Arm, Gambo, Gander Bay, and Point Leamington. In 1904, British investors named Harmsworth declared their intention to build a pulp and paper mill in Grand Falls and on January 7, 1905, the Anglo Newfoundland Development Company (AND) was formed, based on a partnership between the Harmsworths, Reid and the colonial government. Botwood was expanded through the construction of deepwater wharves and warehouses for shipping the finished pulp. To link the two, AND built the narrow gauge Botwood Railway (built to the same gauge as the Reid Newfoundland Company trackage) beginning in 1908 and completing it in 1909. It would later be renamed the Grand Falls Central Railway. Reid died in 1908 but his company set the pace for development in Newfoundland's interior mining and forestry industries, although the entire operation continued to suffer losses. In 1909 and into the 1910s, the colonial government contracted for additional branch lines to be built. Some of the major works included: a line to Bonavista a line to Trepassey extend the Harbour Grace line through Carbonear to Bay de Verde several smaller branches, some of which were graded but rails were never installed Nationalization By the early 1920s, the Reid Newfoundland Company's losses were mounting and in 1923 the colonial government passed the Railway Settlement Act which cancelled the operating contract for the entire system, passing the railway into government control (a form of nationalization). Some of the lands that had belonged to the Reid Newfoundland Company were used by the government as part of a deal to develop a pulp