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Les diagrammes suivants iilustrent la mAthode. 1 2 3 1 2 3 4 5 6 REPORT OF THB MINISTER OF JUSTICE WITH REFERENCB TO THE ARRANGEMENT MADE FOR THE SETTLEMENT OF MATTERS IN DIFFERENCE BETWEEN THE GOVERNMENT OP CANADA AND THE GOVERNMENT OF BRITISH COLUMBIA. VANCOUVER ISLAND RAILWAY, ESQUIMALT GUVVLVa DOCK, RAILWAY LANDS, JUDICIAL DISTRICTS. PRINTED BY ORDER OF PARLIAMENT. OTTAWA: PBlNTED by MACLEAN, ROGER & Co., WELLINGTON STREET. 1884. iJERTII the Gei The C lerewith, rraa aatho ^nd 23rd J Various poi that of the d the Be\ br Your B Vo His Exi of a £aT it PL] I I have t*rovince oi Excellency ^-1 After 8 mtnediateb • mbject of r Jation with ralaable bid lis Governr iTour Excal 1. The JritiBh Colu 'he taking c parbour we pad been co 16—] CERTIFIED COPY of a Report of a Committee of the Honourable I the Privy Council, approved by His Excellency the Governor Gtoneral in Council, on the 37th September, 1SH3. The C'^nmitlee of the Privy Council have had under consideration a Report herewith, dated 25th September, 1883, from Sir Aleiander Campbell, who was authorized by Orders of Your Excellency in Council, under datds of 14th and 23rd June last, to visit British Columbia to make arrangements relative to tho parlous points remaining unsettled between the Government of the Dominion and ihat of the Province of British Columbia. The Committee concur in the said Report knd the (several matters proposed to be carried into effect, and they submit the same 'or Your Excellency's approval, JOHN J. McGEB. Ottawa, 25th September, 1883. To His Excellency the Marquis of Lome, P. C, K. T., &. C. M. G., Oovemor. General of Canada : Hay it pleasb Your Excellency: I have the honor to submit for your information a Report on my visit to the 'rovince of British Columbia, for the purposes mentioned in the Order of Your ixcollency in Council of tho 23rd of June last. After some delay at San Francisco, I reached Victoria on the 27th of July, and mmediatoly waited upon His Honor the Lieutenant-Governor of the Province on the mbject of my visit. I was most cordially received and placed by him in communi- sation with his Ministers. The Lieutenant-Governor, throughout my stay, lent me valuable t>id in my efforts towards establishing those relations with the members of pis Government, which were so essential to the success of the mission with which Tour Excallency had entrusted me. 1. The negotiations between the Government of the Dominion and that of British Columbia in regard to the construction of the Vancouver Island Railway and fhe taking over of the Graving Dock commenced by the Province on Esquimalt Harbour wore pi-olonged late into lost Session of Parliament. Unfortunately they pod been conducted very much by telegraphic communications, and their successful ''"'* '^-'^^N.W.;iiGtoryDept. P.10VINCIAL LIBRARY O/^tr/l! VICTORIA, B. C. issue was hindered by difficalties which might not have arisen, or might have beea readily removed, had the more ample opportanity afforded by personal interooarae been pcssible. At repeated meetings of the Executive CounciJ, and at many interviews with individual members of the Government — particularly with Mr. Smithe, himself — that gentleman and his cullesgnes discusped with me, in a spirit of the greatest frankness, the misunderstandings which had occasioned the postponement of the negotiations of last winter, and, animated by a sincere desire to overcome them, we found from day to day, reasonable solutions of the various points in dispute. 2. The Railway Belt on the Mainland. — The change in the route of the [Canadian Pacific Eailway to the more southerly pass, which it is now intended to occupy, rendered it expedient to effect a change of the location of the railway belt. The Govern raent of British Columbia had not admitted that there was any obligation on their part to assent to such a change, and had contended that they had performed their whole obligation in grant- ing the belt along the lino as originally proposed. We were happily able, however in view of what we were mutually ready to concede in respect of other parts of the general arrangement, to arrive at an understanding by which the railway belt was transferred to the new line and the grant made absolute in its terms, the Government of the Dominion undertaking, through me, to place the land thus acquired in the market for sale to actual settlers at an early day. In this connection I have the honor to state that instructions were given to Mr. Trutch, the Agent of the Dominion in British Columbia, to take at once the initiatory steps necessary to carry out this understanding. 3. The Act of the Legislature of the Province assigning districts to the Judges of the Supreme Court of the Province had been pronounced by the Court there as ultra vires, a result which led to the submission, by command of Your Excellency, to the Supreme Court of Canada, of certain questions propounded, in order to obtain the advantage of the legal advice of the Court upon the points thus adversely decided by the Provincial Court. The answers of the Supreme Court of Canada to these ques- tions had been transmitted to the Lieutenant Governor of the Province for the ioformatior of his Ministers and of the Judges, in advance of my leaving Ottawa, and in this way the ground was a good deal cleared as regarded this object of my visit. I took early occasion to see the several Judges of the Supreme Court of British Columbia, and discussed the matter with them, and also with Mr. Smithe and the members of the Government. Another difficulty had been created in regard to the powers which one of the Statutes of the Province proposed to confer upon Gold Commissioners, which powers I Mr. fi| Gravii and m^ tJ from Til Kootor kve been srcoarBft IW8 with elf— that anknoss, otiations md from route of h it is lange of Dolumbia to Buoh a in grant- how ever rts of the belt was rnment of le market en to Mr. initiatory the Judges rt there as ellency, to obtain the decided by these qaes- oe for the Ittawa, and if my visit, of British le and the one of the lioh powers seemed to Your Excellency's advii^crs to bo of a judicial character, and therefore only to bo granted by the Government of the Dominion. The subject was further complicated by disputes which had arisen at Motlakatia, showing the necessity of having a Stipendiary Magistrate there, and probably, albo, at several other points in the Province. All those embarrassments were happily ajdustod by the course finally agreed on between the Governmont of the Province and my.iolf, unJot- whicli Mr. Jmtico McCroight is to be assigned to tho I)Utnct«of Now Westminster, Mr. Justice Wallcem to the District of Kam'oop^, and an offlfer who is to be at the same time County Court Judge and Slipondiary Maijistrate for Cariboo and Lillooei, to be ap- poit ted by the two Gjvornmonts — that of the Dominion paying the salary of Judge, and that of the Province the salary of Stipendiary Magistrate. This arrangement will leave a Supreme Court oompojed of threa members, the Chief Justice, Mr. Justice Creaeie and Mr. Justice Gray, at Victoria, the seat of the Court, for transaction of business at the Capital and on the Island of Vancouver. I have the honour to submit herewith a momorandu-n, dated the 20th of August^ embodying the agreement between the two Governments on the various points re- ferred to. I have to report further, for the information of Your Bxoellenoy, that I executed 7 at Victoria, on bjhalf of the Minister of Riilways, a provisional contract for the construction of the Island Railway, and that Messrs. Robert and James Bunsmuir and John Bryden execute 1 it on thoir own behalf, and deposited with me $25t),00O ' required as security f jr its pefforminco. I afcorw^ris proaeaded to San Francisco and procured the execution of the contract there by the remaining contractors. The conti-act, thus executed, I transmitted from San Francisco to the Agent of the f Dominion Government in British Columbia, Mr. Trutch, to be held by him, in accordance with the terms of the memorandum, ^until such time as the necessary legislative authority should be given by the Parliamjnt of (/anaJa and the Legisbw- ture of British Columbia, I enclose hex-ewith a copy of the contract. i I have the honor further to state that, prior to leaving the Pi'ovince, I instructed Mr. frutch to take over from the local authorities, on behalf of the Dominion, the Graving Dock, and to take such steps as were necessary for the safety of the work and materials on hand and the plant. The Minister of Public Works has, I understand, since received an intimation from Mr. Trutub, that he has assumed possession of the work accordingly. The petition for the disallowance of the Act to incorporate the Columbia and Kootonay Railway and Transportation Company, referred to by an order of Your 6 Excellency in (Council on the I4th of June, I have rerortod upon in a separate paper. During my stay in British Columbia I had occasion to examine into a number of matters for the different Dopartraenta of the Government, and to report on them to ■everal of my colleagues, as per margin. The whole humbly submitted. Ottawa, 25th September, 1883. A. CAMPBELL, Minister of Justice. San MEl PER MARGIN. SIR JOHN HAODONALD. On all the topics herein referred to, and on Indian affairs. THE MINISTBB OF FINANOB. On the want of circulation of Dominion Notes in the Province. THE MINISTER OF PUBLIC WORKS. The Graving Dock, the Public Building at New Westminister, the site of Provincial Penitentiary, and the necessity of a new wing. Temporary telegrapio connection for Mr. Onderdonk, contractor for Canadian Pacific Railway. MINISTER OF RAIL WATS. The Island Railway. ^ X MINISTER OF AGRICULTURAL AND IMMIGRATION. The site of a Quarantine Station. Provincial Immigration matters.. MINISTER OF MILITIA. The site of Barracks for new Battery. The Bifle Butts. MINISTER OF MARINE. NecosPity for Salmon hatcheries on Eraser River, particularly for propagation of " Spring " Salmon. Snag Boat for Fr&t er River. Protection of Fisheries. latui relat vinc^ new fort agre the < of t ion 1 thee beha awai been Briti and, and subs give a separate I number of on tbetu to FOSTMABTIR-OENKBAL. OrganizatiOD of Post Office Service. Expediency of diBContinning service ta San Francisco Also as to Servioe between Victoria and Port Townsend, and to Fort Simpsoo. Justice. ', the site ol y telegrapio ^ X r propagation bcriee. MEMORANDUM of arrangemer ' lade at Victoria on the twentieib day of August, 1883, relative to the various points i-umaining unsettled between the Grovern- ment of the the Dominion and ttict of the Province of British Columbia. - ' ji^ Island Railway. ' 1. The Government of British Columbia will invite the' adoption by the Legis- lature of the Province, of certain amendments to the Act of 1883, entitled " An Act relating to the Island Railway, the Graving Dock and the Railway Landu of the Pro- vince," which amendments are indicated by red lines iu the copy of the proposed now Bill hereto annexed, signed by Sir Alexander Campbell and Mr. Smithe. 2. The Government of British Columbia will procure the assent of the contractor for the construction of the Island Railway to the provisions of clause (/) of the agreement recited in the amending Bill. 3. Upon the amending Bill becoming law in British Columbia, and the assent of the contractor for the construction of the railway to the provisions of clause (/) of the agreement recited in the Act being procured, the Governmont of the Domin- ion will seek the sanction of Parliament to measures to enable them to give effect to the stipulations on their part contained in the agreement recited in the amending Bill. 4. The contract sha:. be provisionally signed by Sir Alexander Campbell on behalf of the Minister of Railways and Canals, but is to bo deposited with Mr. Trutch, awaiting execution by delivery nntil the necessary legislative authority shall have been given, as well by the Parliament of tJie Dominion, as by the Legislature of British Columbia. The Graving Dock. The Government of the Dominion shall take over the Graving Dock forthwith, and, upon Parliamentary sanction being given, complete it with all convenient speed, and thereafter operate it as a Dominion work, acquiring the right to the Imperial subsidy and paying the Province of British Columbia, on the sanction aforesaid being given, the sums mentioned in clause {g) of the agreement recited in the amending BiU fiL 8 anfl they will, in the meantime, pay out of the subsidy voted by Parliament to aid in the conatruction of the Dook such sum as the Government of British Columbia may be entitled to receive under the existing arrangement in regard to the moneys advanced theroon by thorn since tbs 27th of June, 18S2, any sums so paid to bo taken as part iif the moneys goi*-, to British Columbia on Graving Dock account under the present arrangement, shjuld it receive Legislative sanction on both sides as before mentioned, failing which the status quo will be resumed. Railwasj Belt on Mainland. The Dominion Government will use every exertion to place their land in the railway belt on the mainland in the market at the earliest possible date, and for this purpDse thoy will give all necessary instructions to their officers. The Government of British Columbia will, on their part, render all the aid in their power, and place all the information which thoy have in their Lands Department at the disposal of the Dominion officers, the expense to be borne by the Dominion Government. In the meantime the land shall bo open for " entry," to bond fide Bottlers, in such lots and at such prices as the Dominion Government may fix. T%« Judiciary. The Order in Council fixing the residences of the Judges to be' revoked. Mr. McCreight to be assigned to New Westminster, and Mr. Walkem to Kamloopa. Legislative authority to be sought for for this change, if necessary. A County Court Judge shall be appointed by the Dominion Government, for the District of Cariboo and Lillooet, at a sala'-y of twenty-four hundred dollars, and he shall receive from the Local Government the appointment of Stipendiary Magistrate, at a salary of five hundred dollars ; legislative authority for this arrangement, if necessary, and for the payment of the Judge, to bo sought for. The above includes all matter.-* as to which thore is any dispute or ditference between the Government of the Dominion and the Government of British Columbia, and when carried into effect, will constitute a full sottleraont of all existing olc'ms on cither side or by either Government. A. CAMPBELL. WM. SMITHE. ,ent to aid Colambia le moneys paid to be ik acocunt both Hides nd in the ad for this the aid in Department I Dominion ) bond fide fix. 'oked. Mr. Kamloops. lent, for the irs, and he Magistrate, agement, if " diflerence h Columbia, ting clif'ms » BELL. THE. (This is the specification marked A referred to in tub contract hereto annexed DATED TH.8 20tH AuGUST, 1883.) SPECIFICATION' for a line of railway from Esquimalt to Nanamio, in Vancouver luland in Britiah Columbia. 1. The railwa}' shall be a single line, with gauge 4 feet 8^ inchc'*, with necessary sidings. 2. The alignments, gradients and curvatures shall be the best that the physical features of iho the country will admit of, the maximum grade not to exceed 80 feet to the mile, and the minimum curvature not to be of less radius than 800 feet. 3. In all wooded sections the land must be cleared to the width of 50 feet on each side of the centre of line. All brush and logs must bo completely burnt up and none thrown on to the adjacent lands. 4. All stumps must be grubbed out within the limits of cuttings under 3 feet in depth or embankments loss than 2 feet in depth. 5. All stumps must be olose-cut where embankments are le^is than 4 feet and more than 2 feet in height. 6. Through settlements, the railway must be enclosed with substantially built legal fences, 7. Road crossing!^, with cattle guards and sign boards, shall be provided whoro- ^?vor required. 8. The width of cuttings at formations shall be 20 foot, embankments, 16 feet. 9. Efflcient drainage must be providod either by open ditches or under drains. 10. All biidges, culverts and other structures must be of nmplo size and strength for the purpose intended. Piers and abutments of bridges must bo either of substantial inasiivo stone, masonry iron or wood, and in every essential particular, equal to the best description of like works employed in the conntructiou of the Canadian Paci6c Rsiilway in ISritinh Columbia. Arched culverts must be of good solid masonry, equal in every respect to similar structures designed for the Canadian Pacific Eailway in British Columbia. Bjx culverts must bo of either masonry, iron or wood. , 11. The passenger station houses, freight sheds, woikshops, engine houses, Other buildings and wharves, shall be suffiuieut in number and siase to effljiently 10 accommodate the business of the I'oa-l, an I thoy aball be either stone, brick or timber of neat design, substantially and strongly built. 12. The rails shall be of steel weighing not less than 50 pjunds per lineal yard of approved section, and with the most approved fish-plate joints. 13. The roadway must be well ballasted with clean gravel or other suitable material. 14. Sufficient siding accommodation shall be provided by the contractors, as may be neceeeary to meet the requirements of the traffic. 15. Sufficient rolling stock, necessary to accommodate the business of the line, shall be provided by the contractors, with stations and terminal accommodations, including engine sheds, turn-tables, shops, water tanks, machinery, wharves, &c. A. CAMPBELL, Minister of Justice, for the Minister of Railways and Canals. EOBEET DUNSMUIR, ARTICLES OF AGREEMENT made and entered into this twentieth day of August, in the year of Our Lord, One thousand eight hundred and eighty-three. Between Robert Duusmuir, James Dunsmuir and John Bryden, all of Nanaimo, in the Province of British Columbia; Charles Crocker, Charles P. Crocker, and Leland Stanford, all of the City of San Francisco. California, United States of America ; and Collis P. Huntington, of the City of New York, United States of Americii, of the the first part, and Her Majesty (Jiioon Victoria, represented herein by the Minister of Railways and Canals, of the second part. Whereas, it has been agreed by and between the Governments of Canada and British Columbia, that the Government of British Columbia should procure tho incorpoiution, by an Act of their Legislature, of certain persons to be designated by the Government of Canada, for the construction of a railway from Ksquimalt to Nanaimo, and that the Government of Canada should take security from such Com- pany for the construction of such railway: And whereas, the parties hereto of the first part are associated togotlior for tho purpose of constructing or contracting for the construction of a railway and tele- graph line from Esquimalt to Nanaimo, and are hereafter referred to as tho said i oontractoi's : Now THESE PRESENTS WITNESS, that in consideration of the covenants and agree* menth on the part of Her Majesty hereinafter contained, tho said contractors Covenant and agree with Her Majesty as follows: — mg Ic or ti inbor lineal yard lOr saitablo itractors, as 1 of the line, ramodations, rves, &c. i Canals. ay of August, iroo. 1 of Nanaimo, Croolser, and tod States of ited States of sseuted herein of Canada and 1 [iroouro the designated by Esquimalt to ora such Com- )gotlior for tho way and lolo- to as the said vnts and ngroo- ,id contractors 11 1. In this contract the word "work" or "works" shall, unless the context requires a different meaning, mean the whole of the works, material, matter and things to be done, furnished and performed by tho said contractors under this contract. • 2. All covenants and agreements herein contained shall be binding on and extend to the execatora, administrators and assigns of the said contractors, and shall extend and be binding upon the successors of Her Majesty ; and wherever in this contract Her Majesty is referred to, such reference shall include Her successors; and where- ever the said contractors are referred to, such reference shall include their executors, administrators and assigns. 3. That the said contractors shall and will well, truly and faithfully lay out, make, build, construct, complete, equip, maintain and work con'.inuously a line of railway of a uniform gauge of 4 feet 8^ inches, from Esquimalt to Nanaimo in Vancouver Island, British Columbia, the points and approximate route and course being shown on the map hereunto annexed, marked B, and also construct, maintain and work continuously a telegraph line throughout and along the said line of rail- way, and supply all such telegraphic apparatus as may be required for the proper equipment of such telegraph line, and perform all engineering services, whether in the field or in preparing plans or doing other office work, to the entire satisfaction of the Governor in Council. 4. That the eaid contractors shall and will locate and construct the said line of railway in m straight a course as practicable between Esquimalt and Nanaimo, with only such deviations as may seem absolutely indispensable to avoid serious engineer- ing obstacles, and as shall bo allowed by the Governor in Council. 5. That the gradients and alignments shall be the best that the physical features of the country will admit of without involving, unusually or unnecessarily heavy works of construction, with respect to which tho Governor in Council shall decide. 6. That the said contractors shall and will furnish profiles, plans and bills of quantities of the whole line if r.kilway in ten mile sections, and that before the work is commenced on any ten mile section, such profiles, plans and bills of quantities shall be approved by the Governor in Council, and before any payments are made the Haid contractors will furnish such further returns as may be required to satisfy the Minister of Railways and Canals as to the relative value of tho works executed with that remaining to be done. 7. That the Minister of Railways and Canals may keep and retain five per cent. of the subfiiiiy, or of such part thereof as the said contractors may be entitled to, tor three months after the completion of tho said railway and telegraph Jine and tho works appertaining thereto, and for a farther period, until tho said Minister of Rail- ■ways and Canals is satisfied that all failures or defects in said lino of railway and telegraph line, respectively, and the works appertaining thereto that may have been discovered during the said period of three months, or such further peric I, have been permanently made good, and that no lands shall be conveyed to the said contractors until the road is fully completed and equipped. 8. That the said contractors shall commence the works embraced in this con- tract forthwith, and shall complete and equip the same by the 10th day of Jane, 1887, time being declared material and of the essence of the contract, and in default of such complotion and equipment, as aforesaid, on or before the last mentioned date, the f?aid contractors shall forfeit all right, claim or demand to the sum of money and percentage hereinbefore agreed to bo retained by the Minister of Railways and Canals, and any and every part thereof, and also to any moneys whatever which la&y bo at the time of the failure of the completion as aforesaid due or owing to the said contractors, as also to the land grant and also to the moneys to be deposited as hereinafter mentioned. 9. That the said contractors will upon, and after the completion and equipment of the said line of railway and works appertaining thereto truly, and in good faith, keep and maintain the same, and the rolling stock required therefor iu good and efficient working and running order, and shall continuously and in good faith operate the same, and also the said telegraph line, and will keep the said telegraph line and appurtcnancen in good running order. 10. That the said contractors will build, construct, complete and equip the said line of railway and works appertaining thereto in all respects in accordance w.tu «he specification hereunto annexed marked A, and upon the lino of location, to be approved by the Governor in Council. 11. The characlor of the railway and its equipments shall be in all respects equal to the general character of the Canadian Pacific Railway, now under construc- tion in British Columbia, and the equipments thereof 12. And that the said lino of railw.iy and telegraph line, and all woiks apper- taining thereto rospoctivoly, together with all fr mohisojjrights, privilege' property, por.-onal and real estate of every character appertaining thereto, shall upon the com- plotion and eq npini^nt of tlu saiJ lino of raiUviy anilworks appertaining thereto, in BO far as ilor Majesty shall have power to grant the same respoctivoly, but no further, or otherwise, be the property of the saiJ contractors. I.'}. And Her Majesty in consideration of the promises, hereby covenants and agrees to permit the admission free of duty of all stool rails, fish-plates and other fastenings, spikes, bolts and nuts, wire, limber and all material for bridges to be used in the original construction of the railway, and of a telegraph line iu oonneotioa IS lilway and ' have been , have been contractors Q this con- y of June, I in default tioned date, money and lilways and ever which wing to the leposited as i equipment a good faith, in good and faith operate aph line and uip the said nee w>i.u uhe !ation, to be 1 all respects ier construo- woikrf apper- ;e'- property, pou the com- ig ihoroto, in it no further, oven ants and tes and other bridges to be in oonnootioa therewith, and all telegraphic apparatus required for the first equipment of such telegraph line ; and to grant to the said contractors a subsidy in money of $750,000, (seven hnndrod and fifty thousand dollars), and in land, all of the laud situated on Vancouver Island (except such parts thereof as may have at any time heretofore been reserved for naval or militiiry purposes, it having been intended that all of the lands so reserved should bo excluded from the operation of the Act passed by the Legislature of the Province of Britihh Columbia, in the year 1883, entitled " An Act relating to th» Island Railway, the Graving Dock and Railway Lands of the Pro- vince," in like manner as Indian reserves are excluded thorefrora), which has been granted to Her Majesty by the Government of British Columbia by the aforesaid Act in consideration of the construction of the said line of railway, in so far as such land ehall be vested in Her Majesty, and held by Her for the purposes of the said railway, or for the purpose of constructing or to aid in the construction of the same, and also all coal, coal oil, ores, stones, clay, marble, slate, mines, minerals and substances whatsoever in on or under the lands so agreed to be granted to the said contractors as aforesaid, and the foreshore rights in respect of all such lands as aforesaid, which are hereby agreed to be granted to the gaid contractors as aforesaid, and border on the sea, together with the privile/je of mining under the foreshore and sea opposite any such land, and of raining and keep- ing for their own use all coal and minerals (herein mentioned) under the forefehore or 8ea opposite any such lands, in so far as such coal, coal oil, ores, stones, clay, mar- ble, slate, mines, minerals and substances whatsoever, and fore->hore rights are owned by the Dominion Government, for which subsidies the construction of the railway and telegraph line from Bsquimalt to Nanaimo shall be completed, and the same shall be equipped, maintained and operated. 14. The said money subsidy will be paid to the said contractors, by instalments, on the completion of each ten miles of railway and telegraph line, such instalments to be proportionate to the value of the part of the lines completed and equipped in comparison with the whole of the works undertaken, the proportion to be established by the report of the Minister of Bailways and Canals. 15. The land grant shall bo made, and the land, in so far as the same shall be vested in Her Majesty and hold by Hor Majesty for the purposes of the said railway, or for the purposes of constructing, or to aid in the construction of the same, ^hall be conveyed to the said contractors upon the completion of the whole work to the entire satisfaction of the Governor in Council, but ho, nevertheless, that the said lands, and the coal oil, coal, and other minerals and timber therouuder, therein or thereon, shall be subject in every respect to the several clauses, provisions and stipu- lations referring to or affecting the same, respectively, contained in the aforesaid Act passed by the Legislature of the Province of British Columbia, in the year 1883, entitled, «' An Act relating to the Island Railway, the Graving Dock and R ailway Land* 14 of ilu! Province," as the same may be amended by the Legi8la*,are of *he said Provii.ce, in accordance with a Draft Bill now prepared, which has been identified by Sir Alexander Campbell and the Hon. Mr. Smithe, and signed by them and placed in the hands of the Hon. Joseph William Trutch, and poi'ticalarly to sootioDS^ 23, 24, 25 and 26 of the said Act. | And I . is hereby farther agreed by and between Her Majesty, represented ae aforesaid, and the said contractors that the said contractors shall, witljin ten days after the execution hereof by Her Majesty, represented as aforesaid, or by the said Minister on behalf of Her Majesty, apply to the Government of Canada to be named by the Governor in Council as the persons to be incorporated under the name of the EMQuimalt and Nanaimo Railway Company, and that immediately after the said con- tractors bhall have been so incorporated, this contract shall be assigned and trans- ferred by them to the said Company, and such Company shall forthwith, by deed entered into by and between Her Majesty, represented as aforesaid, and the said Company, assume all the obligations and liabilities incurred by the said contractors hereunder or in any way in relation to the premises, j The said contractors shall, on the execution hereof, deposit with the Receiver' General of Canada the sum of $250,000 (two hundred and fifty thousand dollars) in cash as a security for the construction of the railway and telegraph-line hereby •contracted for. The Government shall pay to the contractors interest on the cash deposited at the rate of 4 per cent, per anmim, half yearly, until default in the per-: •formance of the conditions hereof or until the return of the depohit and shall return the the deposit to the said contractors on the completion of the said railway and tele- graj)h line according to the terras hereof with any interest accrued thereon, but if the said railway and telegraph line shall not be so completed, such deposit and all interest thereon which shall not have been paid to the contractors shall be forfeited to Hor Majesty for the use of the Government of the Dominion of Canada. In wit- ness, whereof the parties hereto have executed these presents, the day anJ year firs* above written. (Signed), (Signed), For the Minister of Railways and Canals. A. CAMPBELL. Minister of Justice. ROBERT DUNSMUIR, JOHN BRYDEN, JAMES DUNSMUIR, CHARLES CROCKER, CHARLES F. CROCKER, LELAND STANFORD, by Chas. Crocker his Attorney in fact. COLLIS P. HUNTINGTON, by Chas. Crocker his Attorney in fact. ila*.ar© of +he said las been identified Jed by them and cularly to sections y, represented as witjjin ten days id, or by the said %Dtid& to be named ;• the name of the ifter the said con- igned and trans- rthwith, by deed 38aid, and the said I said contractors ith the Receiver usand dollars) in raph line hereby ere^t on the cash ifaalt in the per- >d shall return the ail way and tele- 1 thereon, but if deposit and all shall be forfeited Canada. In wit- lay and year firs' 3ELL. er of Justice, 5MUIR, UlR, CKER, ROCKER, FFORD, rney in fact. NfTINGTON, •ney in face. 16 Signed, poaled "and delivered by iho within named Kobert Dunf»muir, James DuiiHmuir, John Brydou, Clias. Crocker, Chas. F. Crocker, Leland Stanfojtl and Collis P. Ilnntinglon, and by Sir Alexander Campbell for the Minister of Euilwayn and Canalh, as an eecrow, and placed in the hands of the Honorublo Joseph William Trutch, until the banotion of Parliament shall Lave been obtained to the payment of the subsidy and to the other ntipulations on the part of the Dominion herein con- tained requiring its sanction, and until the Act passed by the Legislature of the Pro- vince of British Columbia, in the year 1883, entitled " An Act relatmj to the Island Mailvoay the Graving Dock and Railway Lands of the Province," shall have been amended by ihe Legislature of the said Province in accordance with a Draft Bill now prepared and which has been identified by Sir Alexander Campbell and the Honor- able Mr. Sinithe and signed by them and deposited in the hands of the paid Joseph William Trutch in the presence of (Signed), p. G. HOPKIRK. BILL. An Act relating to the Island Railway, the Graving Dock, and Railway Lands of the Province. Whei-ehs, negotiations between the Governments of Canada and British Colum- bia have been recently ponding, relative to delays in the commencement and construction of the Canadian Pacific Railway, and relative to the Island Railway, the Graving Dock, and the Railway Lands of the Province: And, wherflas,/or the purpose of settling all existing disputes and difflculties between the two Governments, it hath been agreed as foltoios :— (a) The Legislature of British Columbia shall be invited to amend the Act No. 11, of 1880, intituled " An Act to authorize the grant of certain public lanis on the Mainland of British Columbia to the Government of the Dcninion of Canada for Canadian Pacific Railway purposes," so that the same extent of land on each side of the line of railway through Bi-itish Columbia, wherever finally settled, shall be granted to the Dominion Government m lieu oi the lands conveyed by that Act. (i) The Government of British Columbia shall obtain the authority of the Legis lature to grant to the Government of Canada a portion of the lands sot forth and described in the Act No. 15, of 1882, intituled "An Act to incorporate the Vancouver Land and Railway Company," namely, that portion of the said l^nds therein described , commencing at the southern boundaiy thereof and extending to a line running east and west, half-way between Comox and Seymour Nan-owe ; and also a further por- tion of the lands conveyed by the said Act to the northward of and contiguous to hi- ^^ ^ 16 that portion of the said lands last horoinbofore specified, equal in, extent to the lands within the limits thereof which may have been alienated froni the Crown by Crown grants, pre-emption, or otherwise. (c) The Government of British Columbia shall obtain the authority of the Legis- lature to convey to the Government of Canada three and one half millions of acres of land in the Peace River District of British Columbia, in one rectangular block, east of the Eocky Mountains and adjoining the North- West Territory of Canada. (d) The Government of British Columbia shall procure the incorporation, by Act of their Legislature, of certain persons, to be designated by the Government of Canada, for the construction of the Railway from Es(iir lalt to Nanaimo. (e) The Government of Canada shall, upon the ioption by the Letjistature of British Columbia of the terms of this agreement, seek the sanction of Parliament to enable them to contribute tu the construction of a Railway from Esquimau to Nan'iimo the sum 0/ $750,000, and they agree to hand over", to the contractors who may build such railway the lands uhich are or may be placea in their hands for that purpose by British Columbia ; and they agree to take security, to the satisfaction of the Qovemm^nf of that Province, for the construction and completion of such railway on or before the lOth day of June, 1887 ; such construction to commence forthwith. (f) The lands on Vancouver Island to be so conveyed ]shall, except as to coal and other minerals, and also except as to timber lands as hereinafter mentioned, be open for four years from the passing of this Act to actual settlers, for agricultural purposes, at the rale of one dollar an acre, to the extent of 160 acres to each such actual settler ; and in any grants to settlors the right to cut timber for railway pur- poses and rights of way for the railway and stations and workshops shall be reserved, in the meantime, and until the Railway from Esquimau to Nanaimo shall have been com- pleted, the Government of British Columbia shall be the Agents of the Government of Canada for administering, for the purposes of settlement, the lands in this subsection men- tioned ; and for such purposes the Government of British Columbia may make and issue, subject as aforesaid, preemption records to actual settlers oi the said lands. All moneys received by the Government of British Columbia in respect of such administration shall be paid, as received, into the Bank of British Columbia, to the credit of the Receiver-General of Canada ; and such moneys, less expenses incurred (if any) shall, upon the completion of the railway to the satisfaction of the Dominion Government, be paid over to the railway contractors. (g) The Government of Canada shall forthwith take over and seek the authority of Parliament to purchase and complete, and shall, upon the completion thereof, operat" as a Dominion work, the dry dock at Bsquimalt; and shall be entitled to and have conveyed to them all the lands, approaches, and plant belonging thereto, together with the Imperial appropriation therefor, and 01 tu sd n It to the lands •wn by Crown of theLegis. '^'iot acres of ir block, east lada. xjration, by vornment of ^Q'slature of 'nt to enable tmo the sum ich railway i Columbia; 'rovinne,for 'une, 1887 ; as to coal tioned, b© '•icultural Jach such way pur- reserved. een com- nment of ion men- 'id issue, nioneys shall be General etion of 'ail way 'hority oreof, II he and , and shall pay to the Province as the price thereof the uum of 6250,000, and shall further pay to the Province whatever amoants shall have been expended by the Provincial Governraont or which remain duo up to iho time of the passing of this Act, for work or material supplied by the Government of British Columbia since the 27th day of June, 1882. (A). The Govornmont of Canada shall, with all convenient speed, offer for sale the lands within the railway belt upon the mainland on liberal terms to actual settlers ; and (*') Shall give persons who have squatted on any of the said lands, within the railway belt on the mainland, prior to the passing of this Act, and who have made substantial improvements thereon, a prior right of purchasing the lands so improved at the rates charged to settlers generally. {K) This agreement is to be taken by the Province in full of all claims up to this date by the Province against the Dominion, in respect of delays m the commence- ment and construction of the Canadian Pacific Eailway, and in respect of the non- construction of the Esquirnalt and Nanaimo Eailway, and shall be taken by the Dominion Government in satisfaction of all claims for additional lands under the terms of Union, but shall not be binding unless and until the same shall have been ratified by the Parliament of Canada and the- Legislature of British Columbia. And whereas, it is expedient that the said agreement should be ratified, and that provision should be made to carry out the terms thereof ; Therefore Her Majesty, by and with the advice and consent of the Legislative Ass' mbly of the Province of British Columbia, enacts as follows : 1. The heroinboforo recited agreement shall be and is hereby ratified and adopted. 2. Section 1 of the Act of the Legislature of British Columbia, No. 11, of 1880, intituled " An Act to authorize the grant of certain public lands on the mainland of British Columbia to the Government of the Dominion of Canada for Canadian Pacific Railway purposes," is hereby amended so as to read as follows : From and after ihe passing of this Act there shall be, and there is hereby granted to the Dominion Government for the purpose of constructing and to aid in the construction of the portion of the Canadian Pacific Railway on the mainland of Bi-itish Columbia, in trust, to bo appropriated as the Dominion Government may deem advisable, iho public lands along the line of the railway before mentioned, wherever it may be finally located, to a width of 20 miles on each side of the said line as provided in the Oixior in Council, section 11; admitting the Pri/ince of British Columbia into Confederation ; but nothing in this section contained shall prejudice 16—2 18 the right of the Province to recoivo and be paid by tho Dominion Government the sum of $100,000 per annum, in half yearly payments in advance, in consideration of the lands so conveyed, as pi-ovided in section 1 1 of 'the terms of Union : Provided always, that the line of railway before referred to, shall be one continuous lino of Bailway only, connecting tho seaboard of British Columbia with theCanadian Pacific Bailway, now under construction on the east of the Rocky Mountains. 3. There is hereby granted to the Dominion Government, for the purpose of constructing and to aid in the construction of a Railway between Esquimalt and Nanaimo, and in trust to be appropriated as they may deem advisable (but save as is hereinafter exceptod) all that piece or parcel of land situate in Vancouver Island, described as follows : — Bounded on the south by a straight lite drawn from tho head of Saanioh Inlet ta to Muir Creek, on the Straits of Fuca ; On the west by a straight lino drawn from Muir Creek aforesaid to Crown Mountain ; On the north by a straight lino drawn froir\ Crown Mountain to Seymour Nar- rows ; and On the east by the coast line of Vancouver Island to the point of commence- ment ; and including all coal, coal oil, ores, stones, clay, marble, slate, mines, miner als and substances whatsoever thereupon, therein, and thereunder. 4. There is excepted out of the tract of land granted by the preceding section all that portion thereof lying to the northward of a line running oast and west half- way between the mouth of the Courtney River (Comox District) and Seymour Narrows, 6. Provided always that the Government of Canad.'i shall 1)0 entitled out of huch excepted tract to lands equal in extent to those alienated up to the date of this Act byOrown grant, pro-emptio", or otherwise, within the limits of the grant mentioned in section 8 of this Act. 6. The grant mentioned in section 3 of this Act shall not include uny lands now held under Crown grant, lease, agreement for saib. or other alienation by the Crown, nor shall it include Indian reserves or settlements, nor Naval or Military reserves. T. There is hereby granted m the Dominion Government throe and a-ha!f million acres of land in that portion of tho Peace River District >f British Columbia, lying e:;8t of the Rocky Mountains and adjoining the North-Wost Ten-itory of Canada, to be located by the Dominion in one rectangular block. 8. For the purpose of facilitating the construction of the railway between Esquimalt and Nanaimo, it is hereby enacted that such persons, hereinaftei' oallod tho •^> 'V> ■i 19 ion ing to 3on llu) .^ 4^ " compaDy," as may be named by the Governor General in Council, with all such other persons and corporations as shall become shareholders in the company, shall be and are hereby constituted a body corporate and politic by the name of '* The Esquimau and Nanaimo Railway Company." 9. The company and their iigents and servants, shall lay out, construct, equip, maintain, and work a continuoj double oi- single track steel railway, of the gauge of the Canadian Pacific Railway, and also a telegraph line, with the proper appur- tanances, from a point at or near the Harbour of Esquimalt, in British Columbia, to a port or place at or near Nanuimo on the eastern coast of Vancouver Island, with power to extend the main line to Como:: and Victoria, and to construct branches to settlements on the east coast, and also to extend the said railway by ferry com- munications to the mainland of British Columbia, and there to connect or amalga- mate with any railway line in operation or course of conatruction. The company shall also have power and authority to build, own, and operate steam and other vessels in connection with the said railway, on and over the bays, gulfs, and inland waters of British Columbia. 10. The company may accept and receive from the Government of Canada any leasj. gr^ii or conveyance of lands, by way of subsidy or otherwise, in aid of the con- 8truc\iv.in of the said railway, and may enter into any contract with the said Govern- ment jor or respecting the use, occupation, mortgage, or sale of the said lands, or any part thereof, on such conditions as may bo agreed upon between the Govern- ment and the company. 11. The capital stock of the company shall be throe millions of dollars, and shall be divided into sbai-es of one hundred dollars each, but may be increased from time to time by the vote of the majority in value of the shareholders present in per- son, or represented by prox}-, at any meetings specially called for the purpose, to an amount not exceeding five million dollars. 12. The persons to bo named as aforesaid by the Governor General in Council shall be and are hereby constituted a board of provisional directors of the company, and shall hold ofHce as such until other dirooioi^^ shall be elected under the provisions of this Act, and shall have power to till any vacancies that may occur in the said board; to open stock books at Victoria, British Columbia, or any other city in Canada, procure subscriptions, and receive payments on stock subscibetl. 13. When, and so soon as onohulf of the capital stock shall have been subscribed, and one tenth of the amount thereof |)aid into any chartered bank, either at Victoria or San Krancisco, or partly in each, the provisional directors may order a meeting of shareholders to bo culled at Victoria, British (/olumbia, at such time as they think proper, giving at least three weeks' notice thereof in one or n.ore nowspapnrs pab- lishod in the City ol Virlorin, imd by n ( inular letter mailed to each shareholder, 20 at which meeting the shareholders present in person, or by proxy, shall elect rive directors qualified as hereinafter provided, who shali hold office until the Hrst Wednesday in October, in the year following their election. 14. On the said tirst Wednesday in October, and on the aavgui day in each year tl. creafter, at the City of Victoria, or at such other place as shall be fixed by the by-laws of the company, there shall be held a general meeting of the shareholders for receiving therepori of the directors, transacting the business of the company, general or special, and electing the directors thereof; and public notice of such annual meet- ing and election shnll be published for one month before ihe day of meeting in one or more newspapers in the City of Victoria, and by circular letter mailed to each shareholder at least one month prior thereto. The election of directors shall be by ballot, and all shareholders may vote by proxy. 15 Three of the directors shall form a quorum for the transaction of business, and the board may employ one or more of their number as paid director or directors, provided that no person shall be elected director unless he owns at least twenty-five shares of the stock of the company on which calls have been paid. 1(! No call shall be made for raoro than tei jier centum at any one time on the amount subscribed, nor shall more than fifty per centum of the stock be called up in any one year. 17. The Consolidated Railway Act, eighteen hundred and se\enty-nine (1879) of Canada, shall, so far as its provisions are applicable to the undertaking and are not inconsistent with or contrary to the provisions of this Act, apply to the said railway, and shall be road with and form part of this Act. 18. The words "Superior Cmxrt," "Clerks of the Peace," " Registry Offices," " Clerk of Court," as used in the said Consolidated Railway Act, eighteen hundred and seventy-nino (1879), shall, for the purposes of this Act, bo read and construed in the same sense and meaning as is provided by the Act passed by this Legislature, thirty-eight (38) Victoria, chapter thirteen (13), section three (3). 19. Sections live (6) and six (6) of the said last-mentioned Act shall be read with and form pail of this Act. 20. The said railway lino from Esquimalt to Nanaimo shall be commenced forth- with and completed on or before the lOth day of June, 1887. 21. The railway, with its workshops, sUitions and other necessary buildings and rolling stock, and aluo the capital stock of the railroad ^^coiupany, shall be exempt from Provincial and municipal taxation until the expiration of ten years from the completion of the railroad. 22. The lands to bo acquired by the company from the Dominion Government for the coustru'jtion of the railway, shall not be subject to taxation, unless and until the same are used by the company for other than railroad purpose-t, or leased, occu- pied, sold or alienated. i r ?x \ f 23. The Company shall bo governed by. eub section (/) of the hereinbefore recited agreement, and each bond fide squatter who has continuously occupied and improved any of the lands within the tract of land to be acquired by the company from the Dominion Government for a period of one year prior to the first day of January, \88i, shall be entitled to a grant of the freehold of the huilace rights of the said equatted land, to the extent of 160 acres to each squatter, at the rate of one dollar an acre . 24. The Company shall, at all tiroes, sell coals gotten from the lands that may be acquired by them from the Dominion Government to any Canadian railway com- pany having the terminus of its railway on the seaboard of British Columbia, and to the Imperial, Dominion and Provincial authorities, at the same rates as may be charged to any railway company owning or operating any railway in the United States, or to any foreign ou-