^ ^f^^- oA>.^. IMAGE EVALUATION TEST TARGET (MT-3) .«* K , N '", r.ki ( IIIN ^ t .niton A» \ -Vn- .M;*,,.,,,,, „l';;r.";i/>. ■uJ.-Vi^'i, kTs^".. ..A J '> ' '■ ^- A : N j .. d"""-''i''|/V SM„..,.-, I -'" V t:M^ ..u:^^"""''^ '■- ^■■■■- '■■"■•' -'-] ; *.wi7g'' '"■'■"■' ^ „:.M- .It. I «.t^. /.- ''i/^A*.- ■.^■■1' r-'^r"" i iy,ii.- 1^ /S" ! '} ?4'' '■■"••■ "■ I . 1. ■/../», .y,/. I/., 1 i,- /•.i/.j»t« (.• tirf''*' /''fl'' /V//.A,«n/ Ai K.H i.ii,rc.- .^1. Ht,J ..V/.w l..-,.l„n. /•■•»•' .v,-,I.W..... !....///.■/■■ .' (Signed) THOMAS BAEING. GEO. CAIIR GLYN. K. D. HODGSON. GEO. G. GLYN. R. W. CRAWrORD. WITIilxYM CHAP^IAX. To His Grace the Duke of Newcastle, K.G., «&c. \ CORRESPONDENCE with Ills (Iiuck tiik Duke op Newc.vstlb and tlio Uudson's Bav Companv, in nift^nMico to tlit; ostiiblisliment of Ovkiu.and rASSKNOKIl AND Ti;Li;(JllAPIIIC COMMUNICATION ht'tWCOU tllO ATLANTIC AND BlirriSlI COLUMHIA AND TIIK PaCII'IC. No. 1. London, 5/A Julij, 1802. My Lord, The i»rowing interest felt by the Conxtnercial World in Britisli Cohunbia, and in the communications which (jommiuvio as well as considerations of Empire require across the Continent of British North America, renders it, as it appeurs to us, opportune and desirable for some adecpiate orsanization to apply itself, under the sanction of Government, to the task of providinj^ a telo<^raphic service, and of securing the means of travelling with regularity to the British Territory on the I'aciric. Connected with a country so new and so vast, aiul as to which so little is popularly known, such an enterprise could only hope for success in the event of its being undertaken with the full approbation and support of Govi;riiiiiotit. As a preliminary to any practical discussion of tin* (piestion, it is dc^inihle to ascertain how far Her ^Majesty's Government recogui/,e the importance and desirability of such an enterprise, to be placed in proper hands, and also how lar assistance would be given to aid in its prosecution. Parliament is naturally averse to the increase of the National Burdens, and it may be that a money grant might be out of the ([uestion ; but, without adding to the expenditure of the country, there arc large nssources available in the shape of territory. Would, therefore, the Government, if approving such an attempt, be ready to grant to any sdund and sufTieient Company a consider- able tract of land in aid to the construction of the means of communication by Telegraph, and the provision of the means of transit across tlie continent ? Knowing the interest which your Grace feels in the j)rogress of the British Empire in North America, we do not hesitate thus to call attention to the subject. We have the honour to be, My Loud, Your Grace's most obedient Servants, (Signed) THOMAS BARING. GEO. CARll GLYN. K. D. HODGSON. GEO. G. GLYN. R. W. CRAWrORD. WILLIAM CHAPMAN. To His Grace the Duke of Newcastle, K.G., &c. No. 2. Sib, Downing Stuelt, 31#/ July, 1802. Tlio Duko of Nowcnstlc lin« rocoivod llio Icttflr aigncd l>y you nn of u|Ktiiiiu: a ruiitt* tor |iass(>n^i r trnilU* mid t('U>(;rnpliic cotninunu'Utiun ncroMH thi> cuntiiiont of liritish North America, to the British Colonics on tho Pacilie. I am (losirod in rejdy to ('X])ress the Duko of NewcuHth^'s rea^rct that her Majesty's (ioveruuietit eannot alVord any diret't pecuniary assistanen to tliis object, and tliat. except in Itritish Colunil)in. ho has no power to make any<;rant of huid for tl>e purpose. At the same time, His (Jrace fully n)(j)rceiates the importanei' of the proi)osed scheme, and will jjive it every encuura|^cment in his power. For this purpose he has written to tho Hudson's Hay Company, throuf,'h whose territories any bueh eonmuinicalion must pass, to enquire what facilities they would he ready to alFord to tho undertaking; and the Duke of Newcastle would sugfjest that you, and the j»entlemen associated with you, should place your-clves in communication with the Chairman of that Company, and in ease of any satisfactory arrangement being made with them, llis Grace would write to the Governors of Canada and Ih'itish C(dumbia, and cudoavoiu" to procure lor you some concession of laiul from those Colonies. I am. Sir, Your obedient Servant, (Signed) FREDERIC ROGERS. Thomas Baring, Esq., M.P. Sir, No. 3. Downing Street, ^wyw*/ 18*', 1862. "With reference to my letter of tho 31st ultimo, I am directed by the Duke of Newcastle to transmit to you, for your information, a copy of a letter from tlie Chuhnnnn of the Hudson's Bay Company, stating the extent to which the Coni[):iiiy will be willing to co-operate with yourself and colleagues in estab- lisbiiig telegraiihic commiinication with British Columbia across British North America. I am, Sir, Your obedient Servant, (Signed) FREDERIC ROGERS. Thomas Baring, Esq., M.P., &c., «&c. No. 3a. ( KncloHuro in No. 3.) Mr. Berkns to the T)ukb op Newcastle. Hudson's Bay House, My Lonn Duke, I/kn don, IIM J»/f/M«/, 1862. I huvo t'oinmnnicatcd wltli my collcnffurs in tlicdircMftion of tin- Hudson's Bay Coiupaiiy, on tlif suhji'ct ol'your (Jram's k'ttor of tlio .'Jlst July, of wliicU I had tlic lioiioiir to actaiowludgi! the i-ucfipt on tli(> Ist instant. Thi'v direct me to assure your (Jrace of their rendiness to co-opi-rato witli Her Majesty's (iovermnent in any nieasiiro they may ho pleased to recoiniii iid for the iinprov(!inent of the eomniunicution across the territories of the Coin))any, and for tln^ settlement of tht^ country, provi(h'(l always they are not retpiired to adv.'iiMc the capital (»f tli(Mr constituents in aid of sp'.;cuhuions projected hy other persons, of the success of which the proje.-tors are the most competent judges. The directors of the Hudson's Bay Company will hav(! no olijcctioii to make such im'. yiant of hmd to any association of which the f^en I h'mcn who have m;ide tlie application to your (Jrace hy their letter of the 5th of .hily arc the rcsponsihh! directors, as may rcasonaldy ho re(iuired for eil'ectini; the proposed coniMiiinication, on the solo condition that adccpiato security is taken for tiie estaltlisliment and completion of ;i sullicient road for passenijer trallic and tole;j:raphic communication across the continent. I have, &c., (Signed) JI. H. BERENS, Governor. To His Grace TuK Duke of Newcastle, K.G. &c., &c. No. 4. Downing Street, 13//* September, 1862. Sir, I am directed hy the Duke of Newcastle to transmit to you a copy of a correspondence hot ween this Department and the Hudson's Bay Company, relative to the extent of territory which the Company may ho disposed to part with, in furtherance of your plan for establishing .telegraphic communication across British North America. His (iraco desires mo to add, that the ner^otiation appears to him to have now reached a point at which direct communication between yourself and your colleagues ou tho one pari, and the Company on the other, has become necessary to any satisfactory conclusion, though llis Grace will bo perfectly ready, if hero- after ' required, to give any further aid in his power to promote a definite arrangement. I am, Sir, Your obedient Servant, (Signed) Thomas Baring, Esq., M.P., &c., &c. T. R ELLIOT. 6 No. 4irt. (Enclosure ia No. 4.) Sir, Downing Street, 2Sth August, 1862. Your letter of the 11th instant has hcen laid before the Duke of New- castle, and His Grace requests that you will express to your colleagues in the management of the Hudson's 13ay Company his gratification at their readiness to make a grant of land to the promoters of the contemplated undertaking of a passenger and telegraphic communication between Canada and British Columbia. It will be obvious to you that the moans of any association which may bo formed to ciTect this great design must depend upon the extent of the proposed eon- cession, ilis Grace therefore directs me to ask you to Imvc the goodness to state what breadth of land the Governors of the Hudson's Bay Company are willing to grant for this purpose. I am, &c.. (Signed) FREDERIC ROGERS. H. II. Berens, Esq. Mr letter No. 4fi. (Enclosure in No. 4.) Hijdson's Bay House, London, Uh September, 1802. Lord Dukk, I have tlic honor to acknowledge the receipt of Sir Frederic Rogers' of the 28th August, and am pleased to observe that your Grace is gratified by the readiness of this Company to meet the views of her iMajesty's Government in reference to the contemplated communication between Canada and* British Columbia. In reply to your enquiry as to the breadth of land the Hudson's Bay Company are Avilling to grant for 'the purpose of the undertaking, I 1)eg to say that, being in utter ignorance of the sort of route projected, and in the al)scnc(' of any communication from the promoters of the undertaking, it is impossilde for me to state to what extent the grant would amount. I have, &c., (Signed) II. H. BERENS, Governor. To His Grace the Duke of Newcastle, K.G., &c., &c. B (Private.) No. 5. (Extract.) 21, Old Broad Street, London, Qth November, 1802. My Lord Duke, I enclose a memorandum in reference to the measures necessary to be taken with a view to organising the desired effort in favour of communication across British territory to the Pacific, in accordance with my conversation with your Grace. If the Hudson's Bay Company will assent to any proposition which your Grace considers equitable and expedient, and of tlie general nature of the suggestions contained in the enclosed, I will engage that no time shall be lost in making a practical exploration by experienced parties, who are now waiting for instructions only, and in attempting the organization of a Company of a solid character, through the agency of which telegraphic communication may be secured. I need not remind your Grace how soon the state of the money market may change, or how needful it is that the co-operation of the Hudson's Bay Company should bo earnest. I have the honour to be. My Lord Duke, Your Grace's most obedient Servant, (Signed) EDWARD W. WATKIN, To His Grack the Duke of Newcastle, K.G., »&c. &c. &c. No. 5a. (Enclosure in No. 5.) Memorandum for IIis Grace the Duke of Newcastle. Since the date of the last correspondence between His Grace the Duke of Newcastle and the Hudson's Bay Company, delegates meeting at Quebec on behalf of Canada, Nova Scotia, and New Brunswick, have, it a])pears, expressed the common desire of the three jjrcjvinces to assist in the comjjletion of a com- nmiiieation, througli Britisii territory, to the Pacific. In the meantime practical enquiries have been made and estimates commenced, and it is now proposed to submit a series of suggestions to His Grace the Duke of Newt^astle, in the hope that Ills Grace will see fit to com- municate with the Hudson's Bay Company, from which important body a very early and definite reply is essential to enable any really useful steps to be taken at this opportune period, while public attention is directed to this great Imperial question, and while the state of the money market is favourable to the organi- zation of a Company. Not only, however, is a liberal grant of land essential if this great Avork is to be carried out l)y commercial enterprise, but the coi'dial sanction, and earnest and thorouiih co-operation, both of Her Majesty's Govern- ment and of the Hudson's Bay Company, are conditions which must be secured before the nionied interests can be applied to for subscri])tions of capital. The deej) interest of Her Majesty's Government, and of His Grace tlie Duke of Newcastle personally, has already be(Mi fully expressed, and the provinces have now volunteered tiieir united assistance. The Hudson's Bay Company have shown a very praiseworthy alacrity in meeting the request made to them by His Grace the Duk(> of Newcastle, by at once sanctioning the principle of a grant of land across their wliole territory for tlu-se i)urposes, leaving the breadth of such grant to be discussed and settled after further information as to the plans suggested liad been obtained. Under such circumstances no doubt ought longer to exist as to the attitude of the Hudson's Bay Company. It is thought by some persons, and not only by Canadians, that that Company is at heart opposed to any opening up of this large territory, that any ai)parent concessions which it may make would be unwillingly rendered, and that tlie passive resistance of its highly orgiuiizcd staif may be exi)ected, by which works to be carried on by private enterprise in a dillicidt and distant territory, and amidst Indians owning no control except that of the Company itself, may be impeded or even rendered impossible. Tliese apprehensions, it is to be liopeil, are founded in prejudice, but they prevail somewhat widely, and the best mode of removing them would seem to bo by a frank statement of their existence throup;Ii His Grace the Duko of Newcastle. It is duo also to so ialluential and powerful a body tliat their alacrity in coraplyins? with the wishes of Her Majesty's Government, and in sei'viiii? the true interests of the l-linpire, should not he unjustly qi'.estioncd. It will be at once observed that in the ])rcsent case no sacrilice is demanded, ^ut a great advantage is offered to the Hudson's Bay Company. It is pr r : to aj)ply to that body merely to <^rant lands wliich, now unopened ansent no money value whatever, while the proposed works would at once give a tangible value to the vast contiguous territories l)oaring the name of the II udson's Bay. Thus, interest and duty being combined, there can be little reason to fear either the refusal of any reasonable proposal, or subsequent obstruction in realizing the objects in view in the shortest possible time. All that it is proposed to ask from the Hudson's Bay Company is that which may be deemed sulficient fairly to justify, in the opinion of practical men, a subscription of the money reciuired to complete the work, and, should the Hudson's Bay Company be ready themselves to undertake the responsibility of the enterprise, thefe is no desire on the; part of those who have api)roached His Gi'Mce the Duke of Newcastle to interfere in its execution, — no mere personal interests, ])iit an anxi(His desire to see the two oceans connected by road and telegraph, alone actuating them in the present proposal. AVith these prc'liminary observations, it is now proposed to submit to the attention of His Grace the Duke; of Newcastle — First. The suggestions which it is thought desirable should bo made to the Hudson's Bay Company ; and, Secondly. The general scheme of the enterprise itself. It will be obvious that so large a measure can only bo accomplished by a scries of stages of ell'ort, and that tlie very mystery which has been thrown over a vast tract of nearly 2,009 miles in breadth, known intimately only by the Hudson's Bay Company, and by Indians, necessitates a cautious policy, the gradual working out of which, stage by stage, will educate and satisfy the public mind, and will induce it through tlic teaching of a new and interesting experience, as well as, it is hoped, by progressive success, to venture far in the realization of that which many persons who profess to know the country would still rcprc^sent as an impracticable dream. It is therefore proposed to comprise the whole project in three separate divisions, viz. : — 1. The erection of a telegraph, and the provision of a chain of posts — 30 to 40 miles apart — and the establishment of a pony and foot express from the Canadian and United States boundaries to the I?acific. 2. The provision of a combined stuam and common road communication within the same limits, and 3. The construction of a railway throughout. Firstly. It is proposed that, to enable the commencement and comple- tion of the first division, a grant of land of 20 miles in Avidth shall be absolutely made to the proposed Company, through the territories of Canada, the Hudson's Bay Company, and British Columbia, from tlio end of the existing Canadian Telegraph system, and from Superior City, and from the United States boundaxy, near the Red IJivcr settlement, across to New Westminster and Fort Langley. Secondly. It is further proposed that, for the second division, a similar further grant of 100 miles in width be given, such grant being contingent upon the completion and opening of the route within (say) 7 years from the date of the conditional grant. Finally. It is proposed that a similar conditional grant of 200 miles in width be made, contingent upon the construction throughout of a railway from 9 Duke it their nnd in icd. It \, Sat a .1 to ..uost nopused rritories mbined, >roposal, possible is that cal men, )uUl the bility of •hod His personal oad and lit to the made to ihod by a own over ly by the le gradual lie mind, ricnce, as ization of repr(isent separate Fort William and Superior City to such point on the Pacific as Her Majesty's Government, with reasonable regard to cost, may select, within 15 years from the date of such conditional grant. The exact route of each of these works must be the result of very careful exploration and survey; and it will, perhaps, be sufficient now to say that, so far as existing knowledge sulficcs, the best route for a Telegraph and system of posts would be to pass from tlio north shore of Lake Superior to the Ilcd River, near Fort Garry, and then to proceed (using, in fact, the best known track, althouch ultimate cx])erience may show a better route), by way of Fort Ellice, Fort PcUy, Carlton House, and the other Uudson's Bay Posts, crossing the Ilocky Mountains at the nearest pass, and then striking the Fraser River, and following its route down to the coast. The branch through the United States territory would leave St. Paul's, and pass through the Red River district, by Pembina, to the common point at Fort Garry. The proposed grants of lands would have to be selected with reference to tlie routes finally decided upon after careful surveys, and could not be located beforchiind ; but their location in the Hudson's Bay Territory would traverse that wliicii is popularly known as the " Fertile lielt " of country east of the Rocky Mountains, and the land would have to be chosen with an eye to its eligibility for settlement as well as to the comparative facilities presented by its physical features for the various works proposed. The grants should be taken in a continuous line. This very general sketch of what is suggested will probably be sufficient at this stage of the discussion. There arc many matters of important detail remaining ; but it is needless to trouble His Grace the Duke of Newcastle with them unh'ss, and until, the main preliminary question is favourably entertained. Should it be so entertained such details will be easily affbrded. London, Glh November, 1862. As bearing ujmn the feasibility of an overland route, the following docu- ment has been communicated: — f posts — ress from unication d complo- ibsolutely Hudson's Canadian loundary, Langley. a similar •ent upon he date of miles in Iway from No. 6. Extract of a Despatch from the Governor of British Columbia, marked " Separate," of the 27th of October, 18(52. "10. I encountered in the course of my journey a number of the overland " emi'^rants fioni Canada, who came through from Red River Settlement by the " Tete .Taune Cache route, referred to in my despatch " Separate " of the 15tli of " April last. They suifered a good deal of privation, but did not experience any " serious dilliculties in the route, until they had passed Edmonton, from whence to " Tote Jauue Cache appears by their representations to be the worst part of the " journey; tliey are, however, of opinion that a good road may be formed between " "those points at a very moderate cost,— a statement essentially agreeing with the " opinion expressed in my before-mentioned despatch. In the event of a large " emigration next summer overland from Canada, the enterprising owners of a " stern-wheel steamboat recently built at Alexandria for the trade of the Upper " Eraser may be induced to extend lier trips to Tete Jaune Caclie,--an arrange- " ment that would lessen the difficulties of the overland journey, and greatly aid " and facilitate the progress of any emigrants arriving hereafter by that route. " I transmit herewith, for yodr Grace's information, a descriptive Report of the 1 10 " route, gnthcrctl from various persons attached to the overland party, and, should " II. M. Government deem it a matter of national importanc( to open a regular " overland communication witli Canada, I submit that parties oi' workmen might " be despatched from this Colony at less expense than from Canada, to carry " their views into effect." After the preceding correspondence, (Nos. 1 to 5) Mr. Bcrens, Governor, and Mr. Colvillc, Member of the Coui't of Directors, of the Hudson's Bay Company, with Mr. Maynard, solicitor, had an interview, at liis Grace's request, on the I8th November, with the Duke of Mewcastle, at tlie Colonial OfTicc, on the general subject ; and his Grace then desired a conference with the gentlemen who had been parties to the original proposals, whicli conference took place at the Colonial Office on the 21st November, Mr. G. G. Glyn, M.P., Mr. 11. W. Crawford, M.P., Mr. n. Wollaston Blake, Mr. Watkin, Mr. William Chapman, Mr. li. Benson, and Captain Glyn, R.N., attending. On the same day tlie Duke of Newcastle caused a letter to bo addressed to the Governor of the Hudson's Bay Company, and ordered that a copy of it be sent to Mr. Watkin, for the information of parties. The letter to Mr. Watkin, and the enclosure, were as follows : — No. Sir, Downing Street, 21si Novr., 18G2. I am directed by tlie Duke of Newcastle to transmit to you, for your information, the enclosed copy of a letter which His Grace has caused to be addressed to the Governor of the Hudson's Bay Company, on the subject of tlie plan of a Postal and Telegraphic lloute from the Canadian frontier to that of British Columbia. Edward Watkin, Esq. I am, Sir, Your obedient Servant, (Signed) T. FEEDK. ELLIOT. No. 7rt. (Enclosure in No. 7.) ■j?s Sir, Downing Street, 21*/ Nocr., 18G2. I8fi, \2fl '^^'^'^T *^5:°"J interview with the Duke of Newcastle on the 18th mstant, upon he subject ol a proposed Postal and Telegraphic Route from the Canadian Irontier to tha of British Columbia, at whicirHis Grace unS stood you to express the willmgness of the Hudson's Bay Company to enter into personal communication with some of the gentlemen who are desirous under certain conditions, of undertaking this scheme, and to confer with them either upon the basis of forming a road through the country comprised in the 11 , should regular n might to carry nor, and ampany, the 18th general ivho had Colonial (1, M.P., Benson, iddressed V of it be Watkin, eliarhH' ol' your Company, or upon that of tlic purchase of the whole of the Com- j)any's rights, I am diiretcd by llis Grace to inform you that he has to-day seen a (loputiilion oj' the goiitlomen referred to, and they on their part expressed their roadini-ss to attend the proposed meeting. Tlie Duke of Newcastle thinks that it would bo desirable that you should now arrang(! an interview either with 3Ir. Tliomas Baring or with Mr. Edward W'atkin, and as it is evident tliat witli a view to any consideration of tlie second ])roi)osal it would 1)o necessary tliat some details of the property to be sohl shouhl ])(« mado before the intending purcliasers, ho hopes that the Company will he ■••ood enough to authorize such information to be given as may be iioccssaiy, and as may not bo detrimental to their own interests. I have, &c., (Signed) T.FREDK. ELLIOT. llicNKY 11. 13i;ja;Ns, Esq., JIudson's Bay Company. , 1862. for your ed to be ubject of • to that jLIOT. A eoramunication was thereupon addressed to the Iludson's Bay Com- pany ; and on the 1st Deeemlier, an interview took place at tlie Iludson's Bay House betwoo]! the (lovernor and a di'putotion from th(^ Court of Directors, and the following g(;ntlemeu; viz., Mr. G. G. Glyn, M.P., Mr. AVatkin, Mr. llobert Benson, Mr. Newmarch, E.R.S., ]\[r. II. WoUaston Blake, and Captain fjlyn, li.N., at which the matter was fully discussed. The Governor repeated the readiness of the Court of the Iludson's Bay Company to make a fr(>e grant of land throughout the Iludson's Bay territory, from the Height of Land to the iJoeky Mountains, and to the British Columbian boundary, for the site of a telegraj)h and system of posts, and for a road ; or to sell the property and rights of the Hudson's Bay Company at a sum which was staled in g(Mieral terms as "somewhere about i/l, 500,000,' or from that sum to £2,0()(),0(H)." But it was declared that the Court declined to make a larger free grant of land of considerable width, as suggested to the Court by the Duke of is (,'A\ castle, with the view of supporting the operations of a Company. ,, 18G2. e on the oute from ce under- to enter desirous, dth them Bd in the After the above interview a conference was held at 07, Lombard Street, at the suggestion of tlie delegates from Canada, on the 8th December, between the Honourable jMr. Sieotte, First jMinister of Lower Canada, and the Honour- able ^Ir. Howland, Finance Minister of Canada, Avho had been made aware of the previous negotiations, and the gentlemen interested in the establishment of the proposed new route, when, after discussion, the following memorandum eontaijiing general conditions was drawn up and transmitted : — 12 No. 8. [CONFIDESTIAL.I ^lE^IOllANBU^r. The i^cntlonicn who have tivday mot tho Jronoural>h' ^fossrs. Sicotio and Ilowhind, at 07, Lombard Street, willtakc moasmes to form a Company without delay for th(5 object of earryini^ out — First. The construction of a Teh'tjrapli and System of Posts, and the conv(\van('e of Teleii;)'aphic ]\ress;i!^(!s and Correspondence from the CaiiM(ii;ni boundary at th(> liead of Lake Superior to tlic Pacific (and also, if desired, from ti»e United States boundary to Port Garry) : and SEcoNn. For the provision of facilities for travel by ordinary waggon roads and steamers — On the followinf» conditions, viz. : — 1. Tliat possession of tlie free !?rant of the ricfht of way for an ader, made by the Imjierial and Colonial (fovernnients throuu'h their respective territ()ri(>s, to the east and west of the tyrant from the Hudson's Bay Company. 2. That similar rii^'hts and privile^res as were r!;rnnteil to the" North-west Transit Company, "and to others, by tiic Canadian Parliament, bo secured to the Company proposed to lie forirod. MKMoitANorM. — Tt would be de>le;?raph and Systeni of Posts and Letter Express, is not to exceed Three Hundred Tliousand Pounds; and, for the provision of facilities for travel. Two Hundred Thousand Pounds in addition ; or, for the Avhole, a capital of not exceeding Five Hundred Thousand Pounds Sterling. 4. Proper protection of the property of the Company, and of the persons employed by it, to be extended by the CJovenuncnts under the laws existing lor the time being, and, so far as the Hudson's ]iay territory is concernccf, under the pi'olective powers for the time being exercised by the Hudson's JJay Company. 5. 'i'hat the works of the Comi)any shall he free from all taxation for not less than tliiily years. (!. That a lu'oper tariff of rates for messages and letl(Ts be agreed upon between the Governments and the new Company, and that the Comjiany's Telegraphs and Letter Post be used by the Governn'ients on terms to be agreed. 7. The (Jovermnents may have the ])Ower to purchase the whole concern after it has paid per cent, fur a perH)d of live years, at a premium of per cent. ; oi-, after tlie Coni))any has, Ibr a past period of ilve years, paid six per cent, per annum, half the surjdus prolUs may bo devoted to a'Siukiug Fund. It is desired again to repeat that the i;eiitlemeu who have this day mot Messrs. Sieotte and I lowland, are merely desirous of seeing executed, without iVu't her delay, the Morks herein proposed: and do not Avish to undertake any action, unless with the entire approval of the delegates from Canada. Should [Messrs. Sieotte and Howland consider that practical assistance to the object of their mission can bo rendenvl in any other, or better, way, they will be quite ready to discuss th- suggestions of the delegates, and either to co-operate or retire, as may be thought best to serve the great policy initiated by Canada. 07, Lo^nn.viiiJ Stkekt, London, Slh December, 1802. ® 13 Sicoti(^ find ixny without its, and the L'O from the I'iicific (iind oi't Garry) : avy wagcfoa an ado(]uato c coiifh'innd t a iji'nnt of Liid Colonial west of Ww, Nortli-west 3urcd to the figiTod, that others, he Ijy seeurintif if action in arran^i^e for nnuni upon Posts and Is ; and, for I'onnds in d Tho'isand lie persons tt's existini^ concerned, idson's JJay tion for not reed upon CoiniKiuy's he agreed. olo concern n of ■s, paid six viuy i'und. lis day mot d, without 3rtako any Should e ohjcct of 11 i)e quite operate or aiuula. The following is the reply : — No. 9. With a view of hetter enabling the gentlemen whom they met yesterday nt ('>7, Lonihard Street, to takeiniiuediato measures to form a Company for the ohject of earryinf? out the construction of a Telegra])li line, and of a road to estahlisii irequent and easy conununication between Canada and the Pacific, and to I'acilitate the carrying of mails, passengers and traftlc, the undersigned have the honour to state that they are of opinion that the Canadian Government will agree to give a guarantee of interest at the rate of four p?r cent, upon one-third of the sum expended, provided the mIioIc sum does not exceed five hundred thousand pounds, nnd provided also that the same guarantee of interest will l)e sepured upon the other two-thirds of the expenditure by Imperial or Columbian contributions. Tf a Com])Mny composed of men of the standing and wealth of those they had the pleasui'(» to meet is formed for the above purposes, under such con- ditions as will secure the interests of all parties interested, and the accom])lish- ineiit of the objects they have in vicnv, such an organization will be highly favorable to the settlement of an immense territory, and, if jiroporly adminis- tered, may prove to be also of great advantage to the trade of England. J^oNUON, 10/A December 18(52. (Signed) To. JI. M. Glvn, H( nson. Chapman, >>ewmarch, Wat kin, &c., &c., &e. L. V. SICOTTE, W. P. HOWL AND. A rter a further conference of the promoters of the undertaking, at 07, Lombard IStrcet, on the 17th December, the following letter was agreed to be written : — No. 10. LONDOK, Vith Dccemhery 18C2. Gentlt::hkn. — At a conference of the gentlemen who have been in com- munieation with you in reference to the provision of the means of Telegraphic and other communication to the Paciiic, held this day at (57, Lombard Street, I was requested to acknowledge the receipt of your couuuunicatiou of the lOth December, and to thank you for it. J'eferring to conversations which have taken place, and to your private suggestion that an alternative proposition should be considered under probable circu!iisl;aices tlien discussed, I am desired further to say .that, should Her IMajesty's Govcrmnent not a(!cede to the proposals which we understand you have already made to the Colonial Jlinister, but, in place thereof, should pro- pose that ]Jritish Columbia, as a Province of the Crown, shall take a larger share of the i)roposed responsibility, they will be ready to proceed, at your instane(>, and with your approval, to form a Company for the purposes detailed, upon the condition "that the rate of interest shall be increased say to Ij or T> per cent. u The simplest Ibrin of workini? the arran!?emont8 in the short timn now h'fl open MouUl be, lor the Imporiiil and Caiuuliiui (Soveramonts to ohtmn the passa-o of measures in tlie eiisuiiig Sessions of I'arhanicnt, by Avhich JJritish (\,lumbia and Canada a-veod 1o pay, in cciual proportions,;' nimial sum ol say £22,500 to the Company who wouhl execute and esta'nish the proposed Morks. Then all the details could he made matter of arransoment between the Colonial ^linistcr, on behalf of lb-it isli Columbia, mid the Oovornor-Gcnoral m Council, for Canada, and the promoters of the enterprise. The adoption of this sui,'2:ostion would enable measures for the forination of a Company, and the subseription of capital (conditional upon the grantin;^ of rarliamentaiy sanelion), to be at once taken, and while money is still abundant ; whereas if all praetieal action to this end were postponed until the rarliaments have met, unforeseen rinaneial dillicullies mls,'lit arise. It is hoped, theicfore, that as early an sinswer as possible may bo given. 1 have the honour to bo, Gentlemen, Your most obedient Servant, (Signed) EDWARD AV. WATKIX. To the nONOUUABLE Louis V. SlCOTTE, and W. P. HOWLAND. To this letter Messrs. Sicottc and Howland replied as follows : — No. 11. Althous^h little disposed to believe that Tier ^lajesty's Government will not accede to the proposal of co-operation they have made in relation to the upeuinn' of communication from Canada to the Pacific, the undersigned have the honour to state, in ansAvcr to the letter of Mr. "VVatkin of the 17th instant, that, in their opinion, the Canadian (jovcrnment will grant to a Company organized as proposed in the papers already exchanged, a guarantee of interest, even on one-half the capital stated in these documents, should the Imperial Gov(>i'nment refuse to contribute any portion of this guaranteed sum of interest. The \indersigned must state, in answer to another demand made in the same letter, that the guarantee of the Canadian Government of this payment of interest ought to secure the moneys required at the rate of four per cent., and that they will not advise, and press, with their colleagues, a higher rate of interest as the basis of the arrangement. London, 20//* December^ 18G2. (Signed) L. V. SlCOTTE, W. P. HOWLAND. ! now in tho iritish ofsiiy At this staqc! of tlio noi,'oci!ilif>iiH it hfciino necessary that tho proniotiU's of the Piilt'rprisc shoithl au:ain comiiuiMicah' with tiio Coh)nial Minister. Accordingly, the I'ollowini^ h-ltcrs were achlrcssed to tho Dulio of NowcasI lo : — on tho loral in niation itin^; of udaut ; iimonts i^ivon. No. 12. KIN. racnt will ion to tho I have the tant, that, ori^anizcd it, even on DVernment ado in the )ayment of cent., and her rate of •TE, LAND. "m '.y-^ "My liOiu) l)[Ki;, IN'rcri'ini? to tho W. AV. Crawford, M.P., If. LONDOX, December 21th, 1 S(52. interview whieh Afessrs. G. G. Glyii, IM.I'., Wnllaston Blake, William Chapman, I'oherl nciisoii, Captain (il\ II, K.X., and myself, had the honour to have with your (Jraee, at tho Colonial Ollice, on tho 21st Novemher, in reference to the important (juestion of lelei;raphie and other means of eomnumieation throii!ssrs. Sieolte ami llowland, who were specially autliorized hy their Govorinnent to deal with it, and that con- siderahle progress has heen made with the iieii'ociation. The II udson's Hay Company still decliiu; to do moi'o in aid of telegraphic and rfiad com:nuni(;ation than to make a free tyrant of land for th(! actual site; of the proposed works, which is much to ho rej^rctted. Tlie larii;er fpicstion raised has, however, not hccn forijottcn, and accounts are promised on hehalf of the Hudson's Jiay Company, which, it is stated, will yivc a clear view of t he financial ])osition of that undertaking, and therohy enahlc calculations to he madi^ of its real value to purchase. It is ccmsidered dosirahle, Iiowever, to keep tho two questions above alluded to distinct, tho more especially as time is so much an object. In the absence of a lar^o grant of land it will, therefore, he necessary to ask for assistance hy way of yuaranteo from tho Imperial and Troviucial Governments. The Canadian delegates, recognizing this necessity, have oificially notified to us their readiness, on behalf of the Canadian Government, to recommend the participation by Canada in a minimum guarantee of four per cent, upon a capital of not exceeding CoOOjOdO, to be devoted to the construction of telegraph and road conuuunieation. They propose to ])articipate to tho extent of one-third of the iiuarantee, in the event of Jim- Maiestv's (Jovcrnment raid British Columbia Joining in the res))onsibility, or of one-half in the event of the refusal of Imperial aid. I'hat refusal, however, they state that they cannot anticipate, considering the Imperial inii)ortance of tho work. The enterprise having now, and after nuich negociation, been thus brought to a i)raetical stage, 1 am desiicd, further, res])ectfully to ask if your Grace is ))repared to recoimuond, in lik(^ manner, that Her Majesty's Government and Ih'itisli (,'olumbia, -or if, imfortunately. Imperial aid is impossible, — then that JJritish C()luml)ia alone, |)articipatc in th(! i)roposcd guarantee to the extent, in the former case, of tii:u-thinh, or, in the latter ease, of one-half of the very modei'ate resi)onsibiIity suggested. Copi(>s of the correspondence with the Canadian delegates, detailing all Markoil A tc that has transpired, are enclosed for your Grace's information. P, [N"9«to J- " II above.) Should your Grace favourably consider this requ(>st, immediate measures will be taken to raise the ca])ital re(iuired through an inlluential Company; and, so soon as that is e.'FcctcHl, the dralts of the Jiills which would have to be subnutted to the Imperial and I'rovineial I'arliaments should be discussed and settled. Tlio.se liills woulleinbody allthe details of the arrangement, as between the proinoiers and Her ^lajesty's and the Provincial Govi'rnments, and it would he most desirable that they should be discussed in tho ensuing session, so that, 16 should P:i»'Iiaimtini? tlu'sc works in tlio niMiiiKT i>n(|Hisc(l, tlii'V niiiy, if possihlo, Im! coimncnced in lIuM-rirly part of thy sununi'i' ol" IbOD. I hav(5 the honor to ho, my Lord Duke, Vour (i race's most ohodicnt Servant, (Signed) KDWAllUW. AVATKIX. To His Ckack the Dukf, of Nkwcastm:, K.G., &c. &c., Colonial OlVieo. No. 13. LONDOV, 21)/// Docmbrv, IWH'J. Mv L )iu) Dike, licrcrrini:; to Iho ellorls now makioi,' to cstahilsh toiei^raphic and road conimunieution thronuli Ih-ilish territory to the racilie, and which tlioro is now reason to hope may he sueees^liil, it Ix'eoines matter of i^reat intere>re is alreadv a small Naval Station at Es(|Mimalt, and that as the Pacific Station has been recently divided into northern and southern divisions, and as Esquimalt will be the head quarters of the northern division, it is probable that the station there may gradually become of increased importance. I am. Sir, E. W. Watkin, Esq. Your obedient servant, (Signed) T. FREDK. ELLIOT. H ill tho t (»l' the 17 No. 16. KIN. , iHr.2. anil road ro i"* now , all'ivtirii; MMJcsty's .'ut'ilic at U'utli'd by II land ol' pass Fort witli the a ac'(i[uaiiit c'st:il)Us!i- nt, M'KIN. 7/, 1803. liroctod by lors ol' Ihc Station at vidi'd into quarters of lily become i* Downing Street, tilh Ularcli, 1803. Sill, I am (lircf'tcd by tlic ])uko of Nowcnstb; to ncknowlodgo tho rcooipt of your h'ltt'r of the 27th Decombor, and to express his Grace's regret that so long, thoucjh (|iiite uiiavoidabh», a delay should have occurred in replying to it. 1 am now desired to mak<; to you tho following communication :— Her AFajesty's Govornmeiit are of opinion that they cannot apply to I'avliamoiit to sanction any sharo in tln^ proposed subsidy by this country; and though they take threat interest in the ))i'oject contemplated with so much public spirit by tli(! fjentlcmen represented by you for carrying a telegraphic and postal coniniiinieation from the confines of Canada to the Pacific, they do not concur in the o])iiiion of tiie Canadian delegates that tho work is of such special " Imperial ini])orlaM('e" as to induce them to introduce for the first time the principle of subsidiziu!,' or yunranteeing telegraphic lines on land. Her -Majesty's Govermnent are further of opinion that without a Subma- rine Transatlantic Telegrnph the pro))()S('d line in America will be of compara- tively small value to the Imperial Government, and that whenever a scheme of the former kind is renewed it is almost certain that this country must bo called u]»on to bear a much larger charge for it than that which it is now proposed to d(>volve upon the British Colonies in respcjct of the land telegraph and cora- municalion. As Canada has ofTered to bear one half of tho proposed guarantee, the Duke f)l' Newcastle is pre])ared to I'ecommcnd, and IIis Grace has no doubt of ready accpiiescence, that British Columbia and Vancouver Island shall pay the sum of CI 0,000 per annum as their share of £20,000 (being at the rate of JSi per cent', on a capital of £500,000), to commence when tho line is in working order. It will, however, be necessary, before any proposal is made officially to the Colonies, that the Duke of Newcastle should receive further details. It is requisite that His Grace should bo informed what provision will be proposed as to t ii(» duration of this subsidy ; what conditions as to the right of purchasing the line, and to what authorities that right should belong; and on what terms (be wlK)le arrangement may be revised in the event of the Iludson's Bay Com- pany's coming to any agreement for the sale of their territory. There will doubtless be other provisions which tho colonies will expect. I am, Sir, Your obedient Servant, (Signed) T. FREDERICK ELLIOT. E. W. ^Vatkin, Esq. &e,, &c., &c. ELLIOT. 18 No. 1(5. C'opv of ft Minute of il Commitlcf nf the Kxcciitivc ( »>iiMcil |of ("iiiiatln], 'uppi'ovod l).v llin liKccIlciu'V tlic GovtM-nor-fitncnil, Dtli Frltrumy, isr.:j. Tln> Conunittco llf^vin^' taken into consiilerntion the report of flio honouralile the I'ostnuistor-Goneral, on tlie expedl iicy of openini,M»p ane in the niarmcr sui^'i-eslcd in that report, or in any other that may iiereafler he deemed more advan- tageous. rerlifled, (Sil,Mie(l) w. II. m:k. ('1i< . K.(.'. So. IC.a. (Copy.) Report of Uuid)le. Mr. Toley, 17th Octoher, 1S02 (ahovc alluded to.) lleferrinfjj to the correspondence had with His (Jrace llie Duke of Newcastle. theCanadian (lOvernnuMil, ami certain of tlieolliccrs of the Hudson's Bay (.'omitaiiN, with reference to the cstal)lisinnentof Postal and 'I'ele-^'rapliie com- munication throu^ii the Company's territories, so called, between Canada and British Columbia, and to Ids repovl of the 31st July last, on the subject of Postal communication with the north-west — The undersigned has the hoiu)ur to subnnt for the considi'ration of His Bxccllency the Governor-General in Council as follows : — The circumstances which for souu* years past have indicated the expe- diency of openin;^ up communications westward from Lake Superior, derive, in the ju(lj,Mnent of the undcrsi^'ned, additional importance from thi; recent and continuous intercourse with British Colmnbia, eonsccpient u|>on the discoveries there of valuable i;old ticlds ; m hilst the reported exisleneo of the same precious metal in the fertile valley of the Saskatchewan has had the effect of awakenin;^ a yet deeper interest in what, in Canada, is populaily known as the lied River country. Under so powerful an impulse; a rapid stream of inimiirnition has set towards tiie Pacillc, wliich ji:ivcs indications of iiidcHMite c\]i;iii>ioM, in \ icw ol the encouraging reports wideli arc coiistaiilly received of llie riclincss of the mines, and tlie value of the countrv us a licid lor s>ti lenient. The shortest aiul most natural ro\ite to these invitini>' territories lies tiirouy-h the St. l.awrei\ce, and its chain of tributary lakes, l)ul. owIuli: to tin; want of facilities lor transit beyond the head of Lake Superior, persons ch'stined for the Western settlements n(!cessarily mak(> the voy;i';c ])y sea, or acconipiisb the first slai^e in the land ioui-nev — Fort Garrv, on liie Red Uiver— bv wav of Minnesota and Daeotah. Thus it may in truth Ik? said, that the people of the nciijhbouriny' States hold the key to the Hrilish possessions in the West, and Avhilc, by this uunms, their wild lands are bciii^' settled and improvtid, ours, lyini,' i.iimediately adjacent and quite us well litted for ciiltivinion, remain a mere hunting ground in of Cllllinlflli rv, 1HC,:J. port of ('"' p iliul Ix'ttlM' )U'j;li Hi'itisli )ii cxpn'sscd iiipiitittu, imd 111' appi'oai'li- icr siiL;u:t''«l<'il more ;ist and St. Lawrence, lacilities for the Western lirsl stai^e in diunesota and nciixldiuuriny wliile, by this ;• i.nniiHliately intiny u:round for the Hoh* heiieflt and ndvnntayn of n ('oni|)any of traders, whose olijirt It is to keep lo thetn a uilderiiess piodiietive only of i,'aMie, and who, to this end, do all in their power lo divert into forei^'n cliannels, to the promotion of alien interests tlif eonuneree curried on liv them with the outside world. In thejudi^nient of the* undersiLrned the lime has arrived when niore deei- hive iiiid elli'clive means than have been yet put forth should he emploved in openlnu; up, and perfeetinj,', the eoinrnunication westward from l,aki« Superior .'hron^h Ihilish Territory. Cut oil' from intercourse with their fellow sulijeels, exe( pt on condition of suhmiltinL; to the inconveniences, the losses, and the numerous vexJitions of a circuitous journey throu^di a lbreii,'n country, and which on the occiireneo of dinieully would lie closed to them, or liutnlVord facility for their invasion, and, under the cireumstanres, all hut certain compiest, the pe(»pl4' of th(5 lied Itiver settlement have for many yimrs past heeu loud in their expressions of dissatisfaction. ^Minnesota, and not Canada, is, from imperious Mccossity, the omporinm of their trade; the chief recent additions to their pop i.ition are from the United States, and Iheir sympathies, in spite of their wis'ies, are l)ein<; drawn into a chaniicl hadiiiy; in an opposite directicm from that of the .source of their nllcu'ianee. In a word, the central link in the chain of settlements which should ccumect ( anada with IJritish Coliimhia is hcin-; rapidly Americanized, and, unless a prom|)t elFort he mad(> to advance Uritish interests in that direction, there is reason tc fear that incilculalde mischief will follow. The tendencies which hav(> in the main operated in keepiu[^ tlie north- western country closed to the industrial enterprise of the British and Canadian people may he traced to the alleged obstacles in the way of the construction of i)raetical)le roads, and the improvement of navii,'ation. Jieceut explorations, lioweviM", prove these obstacles to have been greatly e.xagneratcd. The expeditions of the Imperial and Canadian (lovi-ruments demonstrafc the entire feasibility of establishin'j; communication, for postal and telcLcraphic service, at reasonable rates, tbnnigh the territories which the Hudson's Hay Company claim as being ui.ilcr their jurisdiction. Staitiui; lioiii the head of 1/ike Superior, with which, during the summer months, coiislanl intercourse is maintained by steamers, the route naturally divides itself into three sections: — the first cxtendint;' to the Hed Hivcr Scttlo incnt,thc next stretching forward to the Rocky Alountains, and the third reach- ing thence to the racilic. It may be advantageous briefly to consider the principal cliaraoteristlcs of each in the order in wliich they are hero presented. Mr. Simon Dawson, who c., by whicli the entire ])ractical»ility of that ])art of the route was (>stablished. Tlie country I'roiu the Lake of the \\'o()(ls to Fort (larry is spoken of by the same authority as a region dillering as widely as may be in its physical character from that which had iireviously been described. Although the distance across from the Lake of the Woods to lied River is but ninety miles, ihr country gradually undergoes a change for the better, until I 20 tho prairio ronion is reached, about thirty miles cast of Fort Garry. Thence throurrh tho Kod llivor Setth^nKMita, by the valley of the Saskatchewan, to the base of tho llocky ^[ountains, (forming tho second section of tho route,) the country presents the same favourable characteristics of fertile prairie, thinly wooded here and thoro by clumps of timber. Over this — by far the most extensive of th(> thi'ce divisions referred to — !j;ood natural roads, in constant use by tho Red Kivor settlers and the Hudson's Hay Company's employes, already exist ; besides which the Saskatchewan River is reported, on '.rood autliority, to be navii,'ablc for steamboats from vonv its mouth, with but one short interruption, to the very foot of the ^fountains. Tlie crossinaf of tho Rocky Mountains has been objected to as one of tho obstacles in tho overland route, but that, too, has been proved by actual ox])loration to be much less formidable than had been sup- posed ; Captain J'alliser, in his report to the British Government, stating — " I " am rejoiced to say that I have completely succeeded in discovering a pass " ])racticable, not only for horses, but one wliich. with but little expense, could " be rendered available for carts also. This pass will connect the prairies of the " Saskalehcwan with Her Majesty's possessions on the west side of the Rocky " ^Fountains." And, further on in the same report, speaking of another pass explored by Dr. lleetor, who was attached to the expedition in a scientific capacity, Captain Palliscr adds, " IIo found the facilities for crossing the " mountains so i^reat as to leave little; doubt in his mind of the practicability of " construetinn' (>ven a railroad connecting the plains of the Saskatchewan witli " the opposite side of the main chain of the Rocky Mountains." Dr. Hector himself, in bis report, says : — •* The ascent to the watershed from the Saskatche- " wan is hardly perceptible to the traveller who is prepared for a tremendous " climb by which to reach tho dividing ridgo of tho Rocky Mountains, and no " labour would be recpiired except that of hewing timber to construct an easy " road for carts, by which it miglit Ix; attained." Of tho descent on the western slope of the mountains, he remarks : — " A road for carts down the Valley of " V(>rmillion lliver, from the 'height of land' to tin; Koot.inie River, could be " cleared without dillicidty, for, supposing tho road to follow a straight line '• along the river, and the descent to be uniform, which it almost is, the incline " would only b(! forty feet in a mile, or 1 in 135 : other passes discovered indi- " cat(! equal facilities." With regard to tho third, or British Columbian section, as it appears from tho views held by his Grace the Colonial :\rinistor that Canada would not be exi)ectcd to jiarticipate in tho construction of that part of the route, it isonlv necessary to say that its practicability has been satisfactorily proved. Captain Pallisi'r, al'tcr giving all the d(>tails of his explorations west of the Rocky Mountains, claims, as one of the results of tho expedition under his command, " that W(> succeeded in finding a way from the lied lUvor settlement across the Rocky ^lountains to the mouth of the Trazer River, entirely within British territory," and which, even in its wildstate, ho estimates to be "a route practi- " cable lor Inn'scs throughout." And hero it may not bo inappropriate to remark, that there is abundant reason for believing that the hearty c(j-()peratiou of tho p(M)plo of British Columbia would be certain in any judieious eilort to bring them into closer intercourse with their fellow North AuieriVan colonists. Of the prospective value of that intercourse and as an indication of their anxious desire fur the oj)(>ningiip of the communi- cation between their own colony and Canada, the undersigned, from numerous coininunications received by him on the subject, takes the liberty of quotin"the iolhnvin- passage From a lett(!r reci-iitly written tohimby a Canadian resident in New >\ estmiiist(«r :— " \\ c hope that you and your friends will not forget us bore " but that your best ellbrts will be directed to the opening up of a communi^ '■ cation with this country, by means of an overland route, whereby a market " might bo secured for Canadian produce, of which the colonists here would " most gladly avail themselves. I bt'lieve that Canada could supidy the miners ' in th(! Cariboo district as eh(>aply, il' not more cheaply, than thcv were able to " get then- supplies this summer." * ♦ * .< This country would pay in treasure, the very thing you want; for just as soon as provisions can be I ■'^■■^ ■S 21 Thence an, to the •onto,) the ic, thinly t; extensive )y the Red st ; hesidos vii^ablc for ,0 the very has been ), has been boon sup- :ating— '* I ring a pass cnsc, could iries of the the Rocky nothcr pass a scicntifle ossing the ioal)ility of lowan with Dr. Hector Saskatclie- tremendous lins, and no •act an easy the western le Valley of r, could bo straight line , the incline overed indi- it appears a would not te, it is only (d. Captain the ilocky is command, it across the thin British route practi- I appropriate tlic hearty coi'tain in their fellow intercourse, lie communi- ra numerous f quoting the n resid(>nt in irget us here, a communi- •by a market ^ here would y the miners were able to ould pay in isions can be " obtained here at a jeasonablo rate, say S25 to 830 per barrel for flour, there " would at once be an immense extent of mining country opened up. * « # " Canadians now exert a controlling influence here, and our groat desire is to " see a practicable road constructed between the Canadian and British Colum- " bian Provinces." The availability, then, of a continuous route on British soil being established, the question arises as to its suitability for settlement. On this point there exists abundant favourable evidence. Speaking generally of the country from Lake Superior to Red River, Sir Alexander McKenzie says — " There is not, perhaps, '• a finer country in the world for uncivilized man. • * * it al)ounds iu " everythini? neoossavy to the wants and comforts of such a people. Fish, " venison and fowl, with wild rice, are in great plenty." And, more particularly s])ecil'ying the central part of the same tract of country. Sir George Simpson, iu his interesting work, "A. Tourney Hound the World," says, that the country between the Ijako of the Woods and Rainv Lake is most favourable to aairi- cultiu'o, rcsouihling in some measure the banks of the Thames near Richmond ; and, describing the water communication form Fort Francis downwards, he asks — " Is it too ranch for the eye of philanthi'opy to discern through the " vista of futurity, tliis noble stream, connecting as it do(!S the fertile shores of " two s])aei()us lakes, with crowded steamboats on its bosom, and populous towns " on its banks ? " Corroborative of this testimony is that of Sir Alexander ^McKenzie, who, 6])eaking of t lie same stream, says — " This is one of the tinest rivers in the north " west. * * * Its banks are covcrcnl witli a rich soil, particularly "to the nortii, which in many parts is clothed with iine open groves of oak, " witli the maple, the pine, and the cedar." Of the country watered by the Red River and Lake Winnipeg, ^[r. John IMcLean says—" Red River rises iu " swamps and small lakes in tlie distant plains of the south, and after receiving " a numhor of tributary streams, that serve to fertilize and beautify as fine a " tract of land as the world possesses, discharges itself into the eastern extremity "of Lake Winnipeg, in latitude 50. The climate is much the same as in tli(! " Midland districts of Canada ; the river is genorally frozen across about the " beginning of November, and open about the beginning of April. The soil " along the banks of the river is of the richest vegetable mould, and of so great " a depth that crojis of wheat are produced for several years without the appli- " catiuu of manure. The banks produce oak, elm, maple, and ash. The woods " extfud rather more than a mile inland. The farms of the settlers are now " nearly clear of wood. An open plain succeeds of from four to six miles in " hreadtJi, allording excellent pasture. Woods and plains alternate afterwards, '• until you reach the boundless prairie." In another place the same writer says — " Tlius it happens that the Red River farmer finds a sure market for six •' or eight husliels of wheat, and no more. Where he finds a market for the " remainder of his produce, heaven only knows. I do know this much, however, "that the incomparable advantages this country possesses are not only, in a "great measure, lost to the inhabitants, but also to the world, so long as it " remains under the dominion of its trading rulers. " In th(! possossion of, and sul)jo('t to, the immediate jurisdiction of the " Clou 11, Assinil)()iii(> would hecoine a groat and nourishing eoluny, the centre of " civili/iilinu niul Cliristianity to tho surrounding tribos, who would bo converted " from hostile liaibarians into a civilized and loyal jieople, and tlmsGioat Britain " would extend and establish her dominion in a portion of hor empire that may " be said to have been hitherto unknown to her, whilst she would open up a new " field for the enterprise and industry of her sons." On this head there is much additional testimony : but two further quota- fions may suflice. One is an extract from an article published in May, 1800, iu the news|)aj)er established in tlu? colony by a gentleman from Canada, whose statements are entitled to the fullest credit. " One farmer says that last year " ho put down 8 bushels of wheat on four acres of land, and got a return of 15,'] " buslu'ls. This was 10 to 1, and about 38 to tho acre. Another says, he put " down 13 bushels on 18 acres, and obtained 753 busiiels. This is more than 17 ** to 1, and 12 to the acre. A third put down 10 bushels on 8 acres, and had 401 22 •' of a return, making 25 bushels to 1, and 50 to tho acre. . Two others are as " follows : 7 bushels sown on 4, acres yield 170 bushels, being 21 to 1 and 12 per " aero. Again, G bushels sown on 4 acres returned 180, which made ao to 1 " sown, anil 45 to the acre. The fields were accurately measured, and the tacts " and figures Averc carefully made out, and may be relied on." The other quotation is from the evidence of Col. Crofton, before a Committee of the House of Commons. . Question 3197 (Mr. Roebuck.) " Can you tell mo when the Spring or " Summer tlierc (in the Hod Kivcr Settlement,) begins ? «' Tho season opens about the first week in April, and closes about the middle of November. " 3198. That is about what occurs in Lower Canada ? " I thout^ht it was about that of Upper Canada,— I may bo wrong. " 3199. Does the summer season close as early as the middle of November ? " The summer season ]nay l)e said to close in August, but the finc^st weather is " what is called the full, which extends from August to the middle of " November. " 3200. AVhen does tho permanent snow fall ? It commences in the latter " part of November, and is not olf tho ground unlil the lirst week in April. " 3201. Had you an opportunity of seeing anything of agnculturo when " vou were thei e ? A groat deal. " 3202. What sort of erojjs did they grow ? Oats, barley, and wheat " chiefly; but all sorts of vegetables. " 3203. Did the wheat ripen ? In ninety days from sowing. " 3201, It ripened very perfectly ? It was the finest wheat I (nor saw. " 3205. Was the soil fertile ? Along the iinniediate banks of the rivers, " and extending for, perhaps, the breadth of two miles, no finer loamy soil could *' be seen, witli a limestone foundation. •' 3200. Is it geologically limestone ? All. " 3207. And wherever I'imcstone is there is fertile land, is not there ? I " think that is the eonsequenee. " 3208. Do you know bow far the limestone extends; looking at that map? " I have ascertained from servants of tho Hudson's Bay Company that it ex- " tends, as a base of the whole prairie land, to the lloeky Mountiiius. " 3209. So that, in tact, that part of the territory is fit for agriculture ? " Quite so. 3210. And would make a good Colonv P It might maintain millions. As to the Saskatchewan country, the richness of its soil and its adaptability foi- settlement are so well known and understood that it is unnecessary to dwell on them at so great length. This c(juu(ry is the favourite resort of vast herds of buffalo — an unerring indication of the mildness of the climate and the fertility of the soil. Captain Palliser speaks of it as a jjartially wooded country, abounding in lakes and rich natural ))asturage; in some parts rivalling the finest park scenery in England. Tho bulk of the valuable trade of the lied River Country is at present made tributary to the Western States. IVuctratint' throuj^h their now unsettled territorv a distance of some hun- dreus of miles, the peo])le of Minnesota hav.i spared no exertion or expense to secure the large and profitable commerce of the lied lliver country beyond. The r(!turns ha\e am])Iy rewarded thorn for their outlay. And if mere trading interests are considered as a sutneient com2)ensation by the Minnesotians for opening up eommunieatiou to the lied Uiver (to them a foreign country), how much mor(,' ought the same considerations, when superadded to the many others of equal, if not of yet higher, importance, which apjjly in the case of Canada, to cause surprise in I'ogard to our indecision and supincness in not long before stretching forth our communications so as to embrace a country presenting so many inviting features of interest. The trade jjassing between the Red River Settlement and the United States, ev(>n in the present condition of the north west, was stated by the Earl of Car- narvon, in his place in the House of Lords, to amount to no less than * 1,500,000 during the iiummcr of 1859 ; added to this, traffic to the amount of i I 23 wheat at least ^500,000 finds its way tl;rousli the channels of the Hudson's Bay. Thus there is a commerce of aliout 82,000,000 annually maintained with the north- west, the j^reater portion of which, even supposini? most of the country to con- tinue imder tlie control of the Hudson's Bay Company, would pass over the pro- posed new route, attracted thither hy the three comhincd requisites — cheapness of carrifi<,'e. shorlness of the road, and speed. Sucli hein^' tli^ trade of the country, whilst as yet hut slif,'htly improved from its natural state, who shall estimate its value when hrou^ht under the i)\thii'nces of advaneinj; civilization, and made to administer to the wants of the millions we are assured of its capahility of sustaining in comfort and alUuenco ! The undersigned respectfully suhmits that such a territory ought not to he permitted longer to remain under the sole control of tlic mere handful of traders, however powerful and influential, who have hitherto monopolised its rich re- oourees, and for so many years harred out all others from a participation in its advantages. Sooner or later their hold upon those portions of it specially suitable to agri- cultiu'e must hi', relaxed, and a movement having for its ohjeet an end so desirable is deserving of ])rompt and liberal encouragement. In our proceedings hitherto we have been far too tardy. Our appai-ent indillerence and unconcern I'.ave been taken advantage of by the Hudson's Bay Company, to assert, with continuously increasing pretension, their claims to the entire territory, and to-day it may be said, with truth, that they feel themselves stronger than ever before in their claims lo keep, if they ciioose, for all time to come, unsettled, a vast region in every way suited to human habitation. Without any suggestion at present as to legal title, it is suflicient that wo are invited by His Grace the Duke of Newcastle to Join in adoj)ting means to eil'eet the communication on this side to the summit of the Pass of the Ilocky I^lountains ; and that while, in his Dispatch of the 3rd June last, he promised the co-ojMH'ation oi" the Imperial Government, he afterwards intimated to the House t)f Lords, on the 4th July, his hope " that when Parliament met n(>xt " year, he should be able to inform tluiir Lordships that some progn^ss had " been made towai'ds the establishment of postal communication between " Canada on the one side, and New "Westminster on the other." In the opinion ol the undersigned, it is not only desirable, but essential, that advantage bo takim of the present I'avourahle disposition of the Imperial authorities. 'fhe late administration, yielding to the pressure of public opinion, exhibited as well as professed a strong sense of the practical importance of opening up the first link of the route. To this end, subsidies were from time to time, at their request, readily granted by Parliament ; but, for some cause or other, whether arising from dilli- e\ilti(>s oceasicmed by rival claimants for the performance of the service, or want of judgment in the ])arties immediately concerned in the application of the funds, or oth(>rwise, it is not for the undersigned here to express an opinion, the nutans granted by the liberality of the JiCgislature for a good and useful pui'pose were worse than wasted, although, during the first year, before part izan rivalry had been introduced, and when real ellorts were directed to the solution of the question as to the eonnnereial advantages and the feasibility of t lie pro- ject, success beyond the expectation of the parties engaged was the actual result. As tr the diflicultics suiigcstcd by the Hudson's Bay Company, through their ollieers. Governors BeVeiis and Dallas, in the corres])ondence herein referred to, those gentlemen in truth substantially, though evidently un- wittinii'ly, vindicated most strongly the views contended for by the atlvocates of improvement and colonization. The first and second of the objections of Governor ]3erens as to the practi- cability of th{^ route be' ween Lake Superior and Red Iliver, and the deductions to be drawn from thef; ilure of the projects hitherto encouraged by the Canadian (ioveinineut, are sufiiciently met by wliat has gone bel'ore. His next statement establishes, in the judgment of the undersigned, the very reverse of the conclusion he arrives at, an(i one finds it diilicult to account forhis permitting himself to be involved in such manifest inconsistencies as are aj)parent on the very face of his statement. 21 Directly in contradiction of tho wcll-authonticatod reports of others, iiinoni): tlioni tiovornor Dallas, who speaks of the Hod River and Saskatchewan countries as the sources of sup])ly of tho employes of the Company, Governor liereiis descrihed the country heyond tli(! Red llivcr to the hase of the llocky ^Mountains, " as a vast desert, in sotnc places without wood or water, exposed " to the incursions of rovini* hands of Indians, and entirely destitute of any •' nu'ans of suhsistence for omi^;raiits, save herds of huffalo which roam at lari^o " throui^li the plains, and whose presence on any i)articular portion of these " prairies can never he reckoned on. Tliese ai^ain," he says, " are followed up " l»y Indians in j)iirsuit of I'ood," (a ijood ffround, one would say, for the huffalo not remaininij; all the tinu; in the sani(> particular ))lact>s,) " whoso hostility '• will cxposi! travellers to the i^reatest dani^er." One can well fiincy precisely tlie same reasons hein;:; iriven hy interested parties in any uncivilizi^d country airainst its setth'ment. 'fhe (rovernor evidently loses sii^ht of his design to ]u'ove the territory to he a vast desert, when he adds to that terror those of the Indians and tlie huH'alo. The early settler in any ))art of America would tell him that tlie rej^ions to wliich the Indian, as well as the hull'alo and other wild animals most resorted, were those ahove all others the jnost fertile and lltted lor cultivation, and just the sections most soui;''t after hy the pioneer, anxious within the shortest pi)ssihl(» period to make for himself and those (lei)cndent upon him a hahitation, and to aid in coiupu'rint^ for his country with his axe, his spade and his plou^Ii, fresh accessions and contributions to civilization and im])rovemeiit. U'lie (iovcrnor's next fear, namely, that the construction of telegraph lines would he nseh^s^;, hecause of the probability of their being burnt up, is just as liToundless, as is apparent from the fact that over the boundless plains of Calilbrni!!, ai\d across the unsettled jjrairies of Illinois and other states, these almost indispensable accompaniments of civilization are in full, active, and un- disturbed operation. So witJi respe( t to tho " depredations of the natives, and the general " chapter jf accidents." Tli(>se arc encountered in every new country, and are not in our day anythiniy like such formidable obstacli's'as they httvo been in tho past. On Governor ]?{>rens' princijde, the settlement of any portion of America was a grave mistake, for at some tinu; or other, and at every place within its vast extcMit, pivcisely the same dilliculties which ho conjures up in the shape of roving bands of Iiulians, wild animals, desolation by flood and tide and toma- haw k, as well as a " g.Mieral ehapt»>r of accid(>nts " existed over them all. How- ever, the uncon(pieral)le whiti^ race triumphed, and to its energv and sell-sacrilicing exertions and indomitable perseverance the British and Canadian people are nidebted for an iidieritance such as Providence Jiever before bestowed upon any race since the world began. If they fail to improve their oi)])ortunities the loss will he proportionate to th(! advantages otiierwist; certain of attainnumt. Dillering from Governor !<( reus, as well as to the facts as with respect to the style of objection, (iovernor Dallas ])uf s the whole matter on its true •-round wb'Mi he relers to th<> Saskatchewan and the Red Uiver Countries as thelources wucnce tho Hudson Bay Company draw their supplies of food. And tlie simple question, in view of bis admission, is, as to whether or not these iiia-iiidrent terntories shall n.ntiiiiie to be raerclv the source of suppiv for a lewliuiidivdsol the eni])loyrs ofa fur-t radio- Company, or the means of alVord- 111- new and boundless conlributions to civilization and commerce— whether they shall remain clos(>d to the enterprise and industrv of millions, in order that the few may monopolize- tli(>ir treasures, and keep them, for all time to come as the hahilation of wild beasts, and the trappers engaged hi their pursuit ' It IS but necessary to add that, in pouit of distance, as well as inotl ivsjiects. the Canadian route, with its facilities fully developed, would manifes be the superior one. Trom Toronto to Fort Garry, by way of St. Paul's— or, as it is called, the Minnesota route— the distance is over 1,500 miles ; by the Lake Superior, or ler lifestly ■m •f others, atc'hcwan Governor ho llocky •, exposed to of any II at lartjo n of these llowed up he bulfalo I hostility ■ precisely d coiuiti'V design to >se of the tt'oiild tell )ther wild and fitted r, anxious dent upon is axe, his ation and telegraph up, is just s plains of ates, these e, and un- he general intry, and vo been in f America within its e shape of and toma- Ilow- sacrilicing )eoplc are upon any •tionate to respect to le ground, le sources ler or not supply lor of allbrd- -wiiether jrder that to come, suit. in other aanifestly ailed, the perior, or Canadian, 1,1 It miles. The former in its unimproved state was the more prac- tieal)le because of the nature of the soil, the evenness of the surface and compa- rative absence of woodlan Is, but, with each c([ually im})roved, ours would be decidedly the more advantageous. ft rests with xis to see that onr advantages are not thrown away. In July last, the undersigned, in considering an arrangement, the ])relinii- naries of which had been agreed upon, for the carrying of the mails to Eort William, to be at once improvident and us(>Iess as regards the opening up of the territory, reeonnneiuled its abrogation and the establishment of a teiuixmiry mail service for the season, pending further action of a more permaneut character. In the report which he had then the honour to make, and Avhich was a(lo|)ted by his Excellency the Govenior-Gcneral in Council, the importance of aiding in the securing of the needed communication with the North "West Territories was fully sanctioned, lie now respectfully submits, that, to reiuier elfectivc the suggestions then so recognized, it is desirable that immediate steps should be taken to commence, at the opening of navigation next year, a series of o|)erations having for their object — first, the establishment of a regular mail service to the head of Lake Superior; and secondly, the construction of roads, imd the improvement of the lakes and rivers thence westward towards Jiritish Columbia. Prom the best information obtainable on the subject, and which the undersigned believes to be wholly reliable, it is ascertained that a sum of £S(),0()() would be abundantly sutncient for the permanent opening up and establishment of efficient and contimious land and water communication to lied liiver from the head of Lake Superior. Thence to the passes of the Rocky Mountains it is estimated that an additional €100,0(10 would be amply ade(iuate. Thus the whole expenditure^ including steam service on Lake Superior and on the navigable reaches b(\vond, would certainly not exceed C:200,000. AVith reasonable encouragement from the Government, the undersigned leols jiistilied in stating that no more than ordinary dilliculty would bo eucoun- lered in the obtainn»ent of liu' necessary nuvms; and he liasno doubt whatever, from the repeated assuraiu'cs of his Grac(^ the Duke of Newcastle, speaking on hehalf of the British Govennnent, that froni the Imperial authorities elfective co-operation can be relied on. The (pu'stion as to what is reasonably to be expected from Canada is that at pres(Mit to be considenMl. In \ iew of all the facts and circun\stanees, and feeling that on our people it is the initiative in the matter rests — that it is to the province the Imperial (lovernineiit looks for a commenei'ment of the movement — a movement de- manded alike from our patriotism and our interests, the undersigned considers himself fully justified in submitting that, unless the Government deem it ex- jxHlient to proceed under the direction of the llouourahle the Commissioners of I'uhlic Works, as soon as it can bo shown that com[)etent and responsible pai'ties are ])reparcd to assume tiie work, they should propose to ParlianuMit the grant- ing of an annual suhsidy of '?.')(>,()()(►, or such other sum as his Excellency the GoviM-nor-General ii\ Council may deem judicious, for a term of years, towards the \uidertaking. Should the above suggestions for a subsidy be coneurred in, the undiM'^^igned will be in a jjosition to submit to His Excellency the Governor- (jcneral in Council the details of such arrangenicnts as it may lie desirable to make with responsible parties willing to ])erform the service ; but as the (piestion of the consiructiou of works, as well as that of carrying the mails, would be in- volved, it is expedient that the Honourable the Commissioner of J'ublic AVorks should be associat mI with him for that purpose. All of which is nevertheless respect full v submitted. (Signed) * M. II. FOLEY, rostmaster-Geueral. Quebec, 17th October, 1802. 20 Subsequent to the vccoipt of Mr. Ih.LiOT's letter of the M\ ^Fnreh (No. 15), ^Ir. G. G. Glyn, M.V., :Mr. I^knson, INFr. Bj-akk, IMr. Cuai-man, ami Mr, AVatkin had an interview with the J)L'Kii or Nkwcastli:, at the Colonial Ofllee, uhen mutual explanations were exehangcni, and it was arranged tliaf formal proposals should he made to the Colonial ^Minister on behalf of the promoters of the enterprise. The following Correspondence show s the proi)0salH made; on this under- standing, and the reply reecived from Her Majesty's Government. ^ No. 17. 21, Old Jirond Street, London, E.C, April 28, 1SG3. !My Lord Dlke, Referring to the letter wliieh I had the honour to receive by direction of your Grace from Mr. Elliot, under date of the 5tii ultimo; to the interview which your Grace was s'ood eiu)ugh subsequently to allbrd to Mr. G. G. Glyn, M.r*., ^Ir. i?enson, ;Mr. lUake, ^Lr. Cliapman, and myself, and to the discussions wliieh recently hav(> taken place on general details witli Sir Fi-ederic Rogers and Mr. Murdoch, under your Grace's instructions, I have now to enclose proposals which I trust will meet your Grace's approval, for the establishment of a postal and telegraphic route between Canada and the racitie Ocean. It is hoped that these proposals will be found to be such as your Grace maybe able to recommend, and that their adoption by ller ^Majesty's Govern- ment, bv Canada, bv Rritish Columbia, and bv Vancouver Island, may lead to the completion of the most important work involved, at a very early j)eriod. Throughout the discussion, whicli has now occupied a considerable period, it has been assumed as a condition that the Hudson's Ray Company will agree; to the conlirmation of the grant and coiisc(jueiit rights, which in their letter in vour Grace of the 11th August hist they otl'ered to atlord in aid of the cuter- prise, and that Iler Majesty's Government will carry through sut-h measures as are requisite for securing to the Company the rights and privileges necessary to the security of the undertaking; and considoring the deep iiiten^st which your Grace has taken in proposals for connecting the Atlantic and Pacitic ior pur- ])oscs of communication, through Rritish territory, from the first suggestion of such a measure by your (Jrace to this moment, the promoters of the Com- pany have had pleasure in voluntarily adding, as a concluding article to the enclosed document, a provision that any i'urtlver ciuestions of detail, and any matt(>rs of dillerenee, should such arise, shall be left to the sole decision of your (irace. I have to observe that the rate of interest to be secured to the Company, when it was assumed that Urr A;.ijesty's Government would take a direct j)art in the guarantee, was 1 per cent, as a minimum ; but at the sami! tinu' it was proposed that, in tlu; event of the colonies alone becoming responsible, a larger rate oi' interest would be considered re(|uisite. A reference to tiie documents will show that this was the case. In the enclosed paper, therefore, the maxi- mum rate of interest is taken at 5 jier cent., while the mininumi of 1 ])er (jcnt. is still preserved ; aud it will be for your Grace, should the colonies decide to a 27 nccppt tho proposals, to accord, as between the parties, such a rate, ami such a rate only, as the circumstances of the time may render necessary with a view to socurinf? the absolute success of tl»o undertaking. I have the honour to be, Your Grace's most ol)edient Servant, (Signed) His CJraco Th(! Duke of Newcastle, K.(J., , ,, &c., ifcc, «fcc., t'olonial Ollitr. Edward "NV. Watkiv. larger ; X(). ]7a. (Enclosure in No. 17.) Heads of Proposal for establishing Telegraphic and Postal Coniniunioatioii from Lake Superior to New Westminster. Tlie " Atlantic and Pacific Transit and Telegraph Company " propose to (>stablish and maintain communication by Electric Telegraph anil a 'Mini Post, [)assing at such intervals, fortniglitly or otherwise, as shall be agreed upon, between a point at the head of Lake Superior, and New "Westminster in British Columbia, on the following terms : — 1. That the Imperial Government, the colonies ol'Canada and British Colum- bi;», and the Hudson's Bay Company, shall each, within the territ Jries belonging to them, grant to tho Company such land belonging to the Crown or Company, and all such rights as may bo required for the Pcjst Route, Telegraph and necessary Stations, and for the proper working thentof. 2. The line of Telegraph shall be divided into proper sections, and so soon as Telegraphic? communication is established throughout any such section, the colonies of Canada, Vancouver Island, and British Columbia will guarantee to the Company a rate of profit on the capital expended at the rate of not less than I nor more than 5 percent, (with all surplus profits to the Company), provided that the total amount of the capital guaranteed shall be limited at :€r)()(),()0(), and that the total annual payment to be made by Vancouver Island and British Columbia together shall not exceed t;i2,5()(). Provided, also, that the interest accruing upon the money paid up by the shareholders until the above guarantee shall take (iflect shall be reckoned as capital ; and provided, I'urther, that in case the telegraphic line shall not be completed within live years, (unless by reason of war or commotion,) or in case of any wilful default of the Company, the above guarantee shall bo suspended until the line shall be so completed. 3. In case tho route .shall run through crown land not within tho limits of Canada or British Columbia, nor within the territory claimable by the Hudson's Bay Coirjpany, the Company shall bo entitled to demand Crown grants to the extent of five square miles for every mile of telegraph line within such Crown land. Such grants shall be demandable so soon as the telegraph communica- tion shall be completed across such Crown land, and the blocks granted shall be adjacent to the telegraph line, and shall be as near as may be five miles square, and shall altemate on each side of the line with blocks of similar frontan-c, which shall remain in the possession of the Crown. The Company is not to sell this land except under etfectual conditions of settlement, and in case the undertaking shall be permanently abandoned the land not so sold is to revert to the Crown. 4. The Company shall not dispose of the telegraph without the consent of the Imperial Government. 28 n. Tho Coloninl dovcrnments within their rcspoctivo limits, or tho Impcriul Oovoriuuont in any pnrt of tlio lino, may at any timo take temporary possession of tho tc'lfijraph line, in case tlio puhlic interest requires it, on payment of a rate of eompensation to he iu«reafter a<,'ree(l, and (lovernnient messages shall at all times, when demanded, have priority over all others, (5. The Honie (iovernment, with the consent of the parties, will introducn into Parliament sueh measures as may he requisite to tviveelfect to this proposal. 7. The telea;raph and works, and' the servants and agents of the Company, shall he considcnnl as under the proteetlon of the Crown and of tho Colonial (Joveniments as fully as if in the settled districts of Ih-itish North Ameriea. 8. The Company and its works shall he exempt from all taxation for a period of thirty years. 9. Any furlher matters of detail or (picstions of dill'erence rcipuring dis- cussion to fie remitted I.) the side decision of llis (irace tho Duke of Newcastle, Her .Majesty's rrincii)al Secretary of State for the Colonies. No. IS. Downing Street, 1st May, 1803. SlK, I am directed l)y the Duke of Newcastle to state that he has had much satisfaction in receiving your letter of the 2Sth ultimo, enclosing the heads of a proposal for estahlishing telegraph and postal communication hctwecn Lake Superior and New AVestminster, through the agency of the Atlantic and Pacific Transit and Telegraph Company. These proposals call for some ohservaticms from his Crace. New Westminster is named as the Paciiie Terminus of the road and telegraph, llis Grace takes for granted that if the Imperial Ciovernment and that of British Columbia should iiud on further enquiry that some other point on the coast would supply a more convenient terminus, the Company would he ready to adopt it. Article 1. — His Grace sees no ohjcction to tho grant of land contemplated in this Article, but the " rights" stipulated for are so indeterminate that without further explanation they could scarcely be promised in the shape in which they are asked. He anticij)ates, however, no practical difficulty on this hea:l. Nos. 1 and 2. — The Duke of Newcastle, on the part of British CoUmihia and A''ancouver Island, sees no objection to the maxinmm rate of giuirantee proposed by the Company, jjrovided that the liability of the Colonies is clearly limited to £12,o00 per annum. Nor does he think it unfair that the (Jovern- raent guarantee ..hould cover periods of temporary interruption from causes of an exceptional character, and over which the Comi)any has no control. But he thinks it indispensable that the colonies should be sufficiently secured against having to pay for any hmgthened period an annual sum of 4'12,uU0, without receiving the corresponding benefit — that is to say, the benefit of direct telegraphic communication between the seat of Government in Canada and the coast of tho Pacific. It must therefore be understood that the commencement of the undertaking must depend on the willingness of the Canadian Go\ ernment and Legislature to complete telegraphic communication from the seat of Government to the point on Lake Superior at Avhich the Company will take it up. Nor could his Grace strongly urge on the colonies of Vancouver Island and British Columbia the large annual guarantee which this project contemplates, unless there were good reason to expect that the kindred enterprise of connecting Halifax and Montreal !0 ,' hy nillwiiy would bo promptly and vii^orously proctMMJt'd with. It will also Inj ro(]uisitr to sccun' hy t'urnial at^rcomnnt.stliat the ^iiarjiiitc)' sliali ('case, and the grants of land tor railway jnu'posos revert to the tjranttn's in ease of lite penna- nent ahandonnieiit oft lie undtn'takini^; of wliieli abandon nieni sonu; unanibii^nons test sliould be prescribed— such as the suspension of llirouifb eonnnunii'atii>n fni- a staled p(tri()d. The Duke of Newcastle does not object to fi\ eyears as the maxinunn period fortbee ')letion of the uinh rtakiiii,' ; and he thinks it fair to exclude from thai pevk , or from the period of suspension abo\e mentioMi'd, any lime during; wbieli any part of the lin(; should be in occupation of a foreign enemy. Ihit injuries IVoni the outbn'aks of Indian tribes, and oilier casualties which are iiih(M'eiit iu the nature of the undertakim;', must be taken as part of the risks which fall on the conductors of the enlerpriso, by whose resources and forositiht alone tl.ey can Ix; averted. His (I race apprehends that the ('rown Land contemplated in Article . 'J is the terrilor\ l\ ini;' Ix^twcen the eastern boundary of Ih'itish Colund)ia, and tho territory ])ur|iortinij to bo f^ranted to the Hudson's liay Company by their charier, ilis (Jraci; nmst clearly explain that Her ^fajesty's (Jovernmcnt do not undertake, in ])erl()rmanc(! of this article of tho ap;reement, to t^o to the expense of settlini^ ai.y (ptestions of disputed boundary, but only to t;'rant land to which the Crown title is dear. With regard to the 7th Article, tho Duke of Newcastio could not hold out to tho Company the i)rospect of ])r()tection by any military or polico force in the uninhabit(Ml districts through which their line would pass ; but he would consider favourably any proposal for investini; the ollicers of the Company with such magisterial or other powers as might coiidueo to the preservation of order ami tho security of tho Company's operations. With referenci' to the Uth and concluding article, the Duke of Newcastle would not uilling'.y undertake the responsibl(> functions propr"-'