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Les diagrammes suivants illustrent la mAthode. 1 2 3 32X 1 2 3 4 5 6 t; N,^ it Paob The Earl of Caruarvon to tlie Earl ot Dufiferiu— 9tli March, 1870 2 Report of a Committee of the Honorable the Privy Council — 22uil April, 1H7G 2 Lieutenant-Oovemor Britiob Columbia to t v« Secretary of State — 8rd June, 1876 .... 8 Lieutenant-Governor Britiah Columbia to the Earl of Carnarvon— 8rd June, 1870. ... 4 Report of a Committee of the honorable the Executive Council, B, C. — Onl June, 1 870 6 The Earl of Carnarvon to the Earl of Dufferin— 28rd May, 1876 10 The Earl of Carnarvon to the Earl of Dufferin— 26th May, 1870 12 The Earl of Carnarvon to the Earl of Dufferin— 18th December, 1876 18 ! Zl I h \ ' — ■•'^t~rw«»MaMlt"yM«:.'« ].'zm:r^ '- i«-.jr&i^i)ii»> ittiiif— -« mi ttmmtUiMi THE EARL OF CARNARVON TO THE EARL OF OUFFERIN. *•■" Downing Street, 0th March, 1870. Mr Lord, — I havo the honor to transmit to you a copy of a letter which has been addressed to me by the Lieutenant-Governor of British Columbia, enclosing with other papers a petition to tlie Queen from the Legislative Assembly of the Province, praying Her Majesty to cause the Dominion Government to bo immediately moved to carry out the terms of the settlement effected through my intervention in 1674, with regard to the construction of the Canadian Pacific Railway. I also transmit to you copies of two previous letters from the Lieutenant-Governor, enclosing copies of the Minutes of the Executive Council of tho Province, dated respectively the 6th December, 1875, and 4th January, 18TC, to which reference is made in tho 17th paragraph of the petition. I shall be glad to receive the observations of your Ministers on the whole question, and I shall be obliged by your informing the Lieutenant-Governor that his letter and the petition of the Legislative Assembly of tlie Province have been received by me, and that I am in communication with the Government of tlie Dominion on the subject (Signed,) Gov.-Genl., Tlie Et. Hon., TheEarlofDuffcrin, K. P.,K. C. V. Ac, Ac, Ac. I have, etc., CARNARVON. ^ Cony of a Jleport of a Committee of the Honorable the Privy Council, approved by Ilis Excellency the Oovemor-Qeneral in Council, on the S2nd April, 1876. The Committee of tlie Privy Council have had under consideration the Despatch from the Right Hon. the Secretary of State for the Colonies to your Excellency of the 9th March MP^«»* N. mo L to tho ent ian lOr, ely 7tb ion in 8 1376, trausmittiug n copy of a lottor addre^iHod to the Seciotary of Stato by the Lieutenant- Governor of Dritisli Columbia, enclosing, with other papers, a petition to tl^e Crown from tlie Legislative Ansombly of tho Province, praying Her Maje.sty to cauue tho Canadian Government to.Vko immediately moved to carr^ out tjie terms of settlement effecteil tlirough Lord Carnarvon'^ intervention in 1874, and alsocopio jf previous letters from the Lieutenant- Governor, enclosing other papers on tho same subject, which despatch intimates that Lord Carnarvon would be glad to roceive the observations of Your Excellency's Ministers on the whole question. The Mmute of Council of the 18th March last, of which a copy has already been trans- mitted to Lord Ca"narvon, fully expresses tho views of this Government on the subject of tho petition in question, and the other papers. It is right to observe that, so far as the Committer are able to judge, the conclusions of tliat minute faithfully represent tho opinions of the people of Canada on tho question, and further, that tho Appropriation Act, to which Your Excellency has just assented, contains a clause attached to tho grant of money for tlie Pacific llailv/ay, expressing the view of Parliament, that the arrangements for the construction of the work should be buoh as tho resources of tlie country would permit without increasing the existing rates of taxation. The Committee continue to be of (pinion that the arrangements proposed in 1874 having bsen found impossible of execution, and British Columbia having declined to entar- tain the subsequent proposals made to her, and insisting still upon the performance of what has been found impossiblo, it only remains for tho Qovei-nment to make such arrangements for the construction of tho Pacific Railway as the resources of the country will permit without increasing the existing rates of taxation. Tho Committee recommend that a copy of this minute sliould be transmitted to Lord Carnarvon. J (Sigtied,) W. A. HIMSWOETH. C. P. C, His om rch British Columbia, Governmrnt House, 8rd June, 1870. SlB,- With reference to your despatch of 17th March last, the receipt of which Wds duly acknowledged by me on the 17th April, transmitting six copies of an Order of His swuipp*'^ f ' - iA . -*?*!^ — "JiUMMi :\ Kxoollcncy Uie Governor -General in Council, on tlio addrcsH to Her MitjeHty tlio Queen, from the LegiiilAtivo Assembly of this Province in relation to the qucutions at iuHuu between the Oovornmcnt of the Dominion and that of the Province, reRpccting the agreement in the TcrraH of Union, for tlio construction qithe Canadian Pacific Railway, I ha**^ the honor to enclose horowith for the information of* His Excellency tlie Govemor-Genoral, in accordance with the advice of my MiiUHtcrs, a copy of a minute of my Executive Council submitting cer- tain remarks upon that Order in Council. I also enclose for His Excellency's information a copy of a Despatch, which in further accordance with the advice of my Ministers, expressed in their minute, 1 have this day addressed to the Right Honourable Her Majesty's Principal Secretary of State for the Colonies, covermg a copy of the said minute of my Council, T have, Lc, (Signed,) JOSEPH W. TRUTCH, The Honornlile The Secretary of State for Canada, Ottawa. liKITISlI CoLlTMBIA, GoNTRMMKNT TTonSE, 8rd .June, 1870. Mv LtiRD,- I have the honor to cucIorc herewith, in accordance with the advice of my Ministers, for your Lordship's consideration, a copy of a minute of the Executive Council of British Col- umbia, upon tlie Order of His Excellency the Governor-General of Canada in Council, of tlie IBth March last, already before your Lordship, on tlie address to Her Majesty the Queen, from the Legislative Assembly of this Province respecting the Canadian Pacific Railway, wlijch address was transmitted in my Despatch of the 2nd February last. I have, etc., Tlie Right Ilouorable The Earl of Carnarvon, II. M. Priiicipiil Sec. of State fur the Colonies. (Signed) JOSEPH W. TRUTCJL Z' u i ^ Copy i»/ a Itr/iort of' n Committeti of t/te Uonorahle th» F.xf^lee of Council Uaviug had beforo thorn tlie MiuuU^ of Uio Privy Council of t, of March 18th lant, commonting upon the Aadross and Petition to Uer MajoHty by The Canada, tho LogiHlativo Attscmbly of Britiuh Columbia, desire to submit^ tlio following remarks iu relation thereto : — That tliat Minute iu no way diHprovei or oven disputes Uio material facts stated ui the said Address, but rather seeks to account for them ; nor does it iu tlicir opinion weaken tho force of the representations based on tlioso facts ; and that they would bo well satisfied that the argument in this case should bo submitted to any impartial tribunal, just as it is loft by tho reply in the Minute of tho Government of Canada upon that Address. Tliat thoy desire, however, to deny distinctly that British Columbia has at any time, through any delegate or agent, either directly or indirectly, consentod or agreed that tho ilailway obligations of ('anada towards British Columbia, under tho Terras of Union, should bo subject to tho limitation specified in the B«soIution adopted by the House of Commons of Canada on the 11th day of April, 1871. That such a limitation virtually nullifies those obligations altogether, as, indeed, is now in fact claimed by the Government of the Dominion. That they protest agamst tlie unwarranted assumption iu that Minuto that British Columbia has in any way assented or become bound, either legally or iu honor, to such an abrogation of tlie Railway Article of the Terms of Union. Tliat they equally repel the charge that this Province, from sordid and selfish craving " for the gains and profits to >d expected from the expenditure of millions in their midst, on " the construction of the Pacific Railway," has ever sought to exact tho literal fulfilment of the Ilailway Agreement, regardless of the general welfare of Canada, even to the involve- ment of tho Dominion, of which she is a Province, in financial ruin, as is asserted in tliat Minute. That, on tho contrary, British Columbia has always bcon ready to adopt a reasonable view of tliat agreement, as is fully shown by the cordial concurrence of her Government and people in the modification of that agreement effected in 1874, through the Right Honorable the Secretary of State for tlio Colonies. Tliat the f "'^mment of Canada, however, now evade compliance with Uio requirements of that modifie cement, or seek to qualify and virtually nullify it by a condition certainly not clearly or openly stated (if stated at all) when that modification wan decided upon by the Secretary of State for the Colonies and accepted unreservedly by that Government. That British Columbia never urged, nor desired, nor would she have concurred in any such expenditure of the public funds of Canada, in the construction of the Pacific Railway, as could be shown to be beyond the financial ability of the Dominion, but that she has claimed aud dooM claim a right to furin aud oxpreHs an indopondont opinion au to tho extent to which that finaucial alility Hhould bo exerted on this groat national onterpriHO ; and 8ho holds tliat, tliough in other reHpectn an intogrnl part of Canada as a Province of the Pominion, she in ortitlcd, in roftpoct of thia question of ^o non-fiilfilmout of the Terras upon l^ich she entered tho Dominion, to a position as independent as she occupied in negotiating those Terms, a position of entire ci|iiality with that which attached to tho Dominion itself, the other partj io those negotiations. That as regards tho uuggostiou by tho Govornmont of Canada in tho Minute of Privy Council of 2()th So|)tcmbor last, that British Columbia should receive a bonus of $7^0,000 " as compensation for any delays which may take place in tho construction of tho Pacific " Railway," it seems to be intimated in the subsequent Minute of March 18th, although it is yet far from being distinctly stated, that such bonus was offered in lieu of tho proposed section of railroad between Es(iuimalt and Nanaimo only, and that it was never intended that tho acceptance of that bonus by British Columbia should relievo Canada from any of tho conditions of tho settlemctnt of th? Railway agreement effected in 1874, other than that pr viding for tho conn'ruction of that [.articular section of railroad. If such was tho intention of that offer, it is much to bo rogrettnl that it was expressed in tho Minute of 20th September in language which certainly convoys u very different meaning, and fully warrants tho conclu- sion, and nono other, which the Government and pcyople of British Columbia derived from it, viz. : that tho acceptance of tho pr^^flcred bonus would be hold to preclude British Columbia from any further assertion of her rights under tho Railway Article of tho Terms of Union. It is yot more to bo regretted that tho Government of Canada, on learning that the true intent of thoir suggestion had been, as they allege, misapprehended. Lave not, in plain language, renewed that suggestion in the spirit of the desire expressed in their last Minute, to propose " a liberal compensation for delays, in substitution of that provided by tlie arrangement " recently entered into m 1874, but to which Parliament declined to assent." That as to the contention in the Minute of the Privy Council of Canada of 20th of Sep- tember last, tliat tho " proposed railway from Esquimalt to Nanaimo does not form a portion of the Canadian Pacific Railway, as defined by tlio Act ; it was proposed as compensation for the disappointment cxpericncod by tho unavoidable delay in constructing the Railway across the continent," which contention is renewed in their subsequent Minute, the Com- mittee observe that tho Order in Council of 7th Jime, 1878, by which it is decided that " Esquimau be fixed as the terminus of tho Canadian Pacific Railroad," has never been repealed or reversed, as far as the Committee arc aware, by any subsequent Order of Council or other instrument, of equal validity. Certainly no such subsequent Order of Council has been communicated to Uio Government of British Columbia. That, whatever may have been the intention of tlie Government of Canada in offering to construct immediately the portion of road between Esquimalt and Nanaimo, that offer was never accepted by the Government of British Columbia. That the Government of British Columbia did, however, accept the settlement effected in 1874 through the Secretary of State for the Colonies, and that the Government and people of Britiiih Columbia aro loyally roady to abido in all rospootH by that hottleniont, aiul to bo bouiul by all itfl oonditionM aa tlioy may bo defined by tho Secretary of Stato#W tlie ColonioH. That tho (1 jVcrnmout and Logitdaturo of British Columbia, doHirous then, aH they Hlill arc, to do all in Uioir power to give effect to that settlemout, without heiiitation complii'd laut year with U»o request of tho Oovcrnment of Canada for tho convoyAuce to tliat Government, by Act of this Legislaturo, of certain lands along the lino of tho proposed Railroad between Esquimau and Nanaimo, in aid of tlio construction of thac portion of road, of tho citout and on tlie condition!! stipulated i.i the 11th Articlo of tho Terms of Uniuu. That tho Government of Cann '. in their application for tho conveyance of those lands by Act of this Legislature, gavo w intimation th^t such conveyance by legislation wus spocially requisite on accoun'. jf th.f proposed road from Esqniraalt to Nanaimo not boiny; part of tlio CauacUan Pacific liailroal ; n . was such a consideration proscntod in nny way to the Govorr ment or Legislature l'' Mritish Columbia. That the Committee hold, on tho contrary, that such legislation would have been equally required for tho full legal conveyance of tho lands applied for, whether tho portion of road towards the construction of which they wtio appronriatcd were part of the Canadian Pacific Railroad or not, and that similar legislation would bn requisite for the conveyance to tho Dominion of any lands in respect of tlie construction of any portion of the Cai.adiau Pacific Rnilroad, imder tho 11th Article of the Terms of Union, by which the Government of British Columbia " agree to convey " curtain lands on tho conditions therem stated, this Government being incompetent to duly carry that agreement into effect without being further specially empowered so to do by tho Legislature of the Provuico. That tho contention that the portion of road between Esquimalt and Nanaimo is not part of the Pacific Railway is wholly immaterial if — as seems to be indicated in the last Minute of Privy Council — that portion of road was undertaken in 1874 as compensation for delay which had then already occurred in tho con.nnencement of the Pacific Railroad, and for such further delay only in its construction and completion aa is stipulated in the settlement effected by the Secretary of State for tho Colonies. That, with regard to tho comparative statement of the Revenue and Expenditure of tho Dominion in British Columbia since union, which is appended to and commented upon in tho Minute of Privy Council of 18th March, it would not bo difficult to show that that state- ment is not altogether a fair exhibit of the account. That a largo part of the expenditure charged against British Columbia is incidental to tlie extension of tho system of Confederation over a new Province, That tho Revenue derived by the Dominion from British Columbia is shown by that statement to have steadily and largely increased, viz.: as $863,206.08 for tho year 1871-2 is to $275,883.01 for tho first half of the year 1676-6, tho expenditure increasing also in about the same proportion; that whilst it may confidently be anticipated that at least tix&t ratio of increase of revenue will be maintained, the increase of expenditures, on the other band, may be expected to be proportionately reduced after tho completion of those public ♦ -j^~. ' . ^ 8 buildings and other public works, the couBtructiou of which was providod for in the Terms ' of Union, andUo which a considerable part of the expenditure of the past tliree years is clmrireable. That even if it could be shown fvom a comparison of the expenditure and receipts of the Dominion in British Columbia since Union, that enormous pecuniary advantages have, as is asserted in that Minute, iresulted to tliis Province, such a financial balance against British Columbia would be but insignificant in comparison with the infinitely more important and lasting benefits which she justly anticipates from the construction of the Pacific Railroad in accordance with the Terms of Union, not indeed so much from the expenditure of money in its construction as from tlie results to the Province and to the Dominion of its completion and the establishment thereby of a great highway for trade and travel within British territory from the Atlantic to the Pacific, and the immigration consequent therefrom into tliis Province. That the introduction, by tho Government of the Dominion of such a discussion as to tlie financial results to Canada and British Columbia respectively, from the introduction of that Province into the Dominion, appears to the Committee most unfortunate, and is cer- tainly not pertinent to the question at issue. British Columbia has never complained of having been unfairly dealt with in the apportionment of the General Expenditure by the Domiu ■ ion, nor wojild the Committee desire to assumQ that such expenditure, either in British Columbia or elsewhere, has been directed by any other motive than that of promoting the general welfare of tlie Dominion as a whole, without seeking to piurchase, by undue appor-< tionment of the public funds, the consent of this or any other Province to an abandonment of just claims under the Terms of Union. il That the manifestation by the Govenuneut of Canada of their sentiments towards British Columbia, expressed m the concluding paragraphs of their last Minute, followed as has been by the adoption by a largo majority of the House of Commons in the recent Session — all tlie members of the Government in that House being of that majority — of a Resolution to the efifeot that the Pacific Railroad shall not be built if its coustruction entail on Canada any increase of taxation, has painfully impressed us and the community wo represent, with the conviction that the (government of Canada do not intend to press the construction of that Railroad beyond the convenience of that Government after providing for nil other public works of apparently more direct and local interest to the majority in Eastern Canada, nor to have any regard to the contract for its completion entered into by Canada in the Terms of Union, and renewed in modified terms in the Settlement effected, in 1874, by the Right Honorable the Secretary of State for the Colonies, except subject to that convenience. Thai the Committee, again, humbly submit that British Columbia is, at least, entiled to have the conditions of that settlement carried out in letter and in "pirit, and they humbly and earnestly renew the prayer of the Petition to Her Majesty from the Legislative Assembly of the Province; that the Dominion Government be immediately moved to cfirry ontthe terms of thai settlement. H That they have the fullest coufiaeiioc that Her Majosty will not ic preceding paragraph, it is because I appreciate, more distinctly perhaps than it is possib^-y for tho people of the Province to do, the position in which the Dominion Government li^a been placed by the failure of the Island Railway Bill. I recognize, moreover, tho fact that there are many considerations which require that the whole of tho most important portion of the Pacific Railway should be treated with tho utmost deliberation, consistent with the pressing require ments of tlio Province, and that no hasty action should be pressed upon the Canadian Government, whom I need hardly say I believe to be thoroughly sincere in theii- desire to construct the main Une of railway, with all tho expedition of which the resources of the country, and the engineering problems remaining yet unsolved, will admit 7. After much, and anxious consideration and with every sympathy for the sense of dis- appointment under which I see that the people of British Columbia are labouring I cannot avoid the conclusion that the objections which have been made against the course taken by the Dominion Government have been couched in more severe and exaggerated language than a fair e:;timate of the peculiar embarrassments and the difficulties of the case would seem to justify. 8. The British Columbian Government must, I feel sure, be convinced (as I am) that the surveys of the line have been prosecuted with the greatest vigour and despatch possible, that these surveys are now approaching completion, and that every effort has been made by the Government of Canada to hurry forward the antecedent preparations necessary to the con- struction of the Bailway. 9. It must of course be etpected that evta after the completion of the surveys upon the spot a great amount of work will remain to be done in the Engineer's Office, and the Dominion Government will require time to consider fully, after sufficiently accurate data have been collected, not only the exact proportions and details of the undertaking but also tlio calls which it will entail upon the resources of the country. Those, again, who may bo disposed to contract for sections of the line, and some of whom may not improbably be resident in England would presumably require to send their agents to the localities in order to make such calculations as would enable them to tender for the work. 10. There is a further question of the gravest importance, which has weighed much with me. Not only is it evident that the route inland must be laid down with sufficient precision for the purpose, but the question of the terminus is one in which the most serious conse- quences are obviously involved, and with regard to which, after having recourse to the infor- mation now in the possession of the Lords Commissioners of the Admirality, I see clearly that we have not at present the materials for any definite conclusion. 11. The future success of the Bailway is indeed, in so great a degree, dependent upon a proper approach to the sea being selected, that it would be obviously improper for the Cana- iii0i \ iiiiii&^ififliiiiiiiiiH erably and strict and xinvgranh, oplo of the ced by the are many ho Pacific ig require Canadian ■ desire to 'CC3 of the ise of dis- I cannot 3 taken by aage than [d seem to a) that the sible, that tde by the bo the con- 'veys upon e, and the iurate data J but also ho may be robably be BH in order much with t precision ous conse- the infor- (learly that nt upon a tlie Cana- ^1 15 ^ dian Qovernmcnt to be hurried into a premature decision on this point by Aviy untimely pressure. For example, grave objections, I understand, may bo argued against the Bute Inlet Route, which has been looked upon with much favor, on account of the inadequacy of its head waters as a ^fo anchorage ; and unless the Railway could hereafter be practically prolonged to some p^nt in Vancouver Island, such as BaroAy Sound or Esquimalt, by means of Steam Ferry Navigation across the intervening Channels, it appears difficult to soe how this route could be adopted. 12. The question of the terminus en the Pacific is in fact one which could only be decided after fuller and more conclusive reports have been procured from Marine Engineers, or Naval Officers, than have yet been obtained, and these considerations, coupled with otlier circumstan ccs, make it now evident, that with the best intentions and exertions, and under the most favorable circumstances, no serious commencement of the Railway, within the Province, can be at once made. 13. Between the coming spring, however, and the spring of 1878, it may be fairly expected, that many points now surrounded with doubt, will have become more clearly defined ; and I fully hope and believe, tliat after the very limited dolay of a single summer, the Province of British Columbia will find that there is no longer any obstacle to the active prosecution of the undertaking, and I trust that the Province will not fail to perceive with me that its case will be by no ineans strengthened, if impatience (however natural under other circumstances,) is displayed at the uon -commencement of a line of Rail' , the proper course and terminus of which are as yet altogether uncertain ; while at the same time an independent observer must admit that the Canadian Oovernmeut are using every exertion to carry out the work as rapidly as possible. 14. I will not now further notice the offer made to British Columbia by Canada, of a money payment in lieu of the Esquimalt and Nanaimo Railway, and in compensation for delay than by obsk rving that I could not with advantage at the present moment enter into the question of the sufficiency or otherwise of the amount offered. The present condition of the \ whole question renders it in my opinion premature to discuss this particular point inasmuch as the duration of the delay in commencing the main lino of Railway may become, equitably at all events, a material consideration in estimating the amount which should be paid to the Province. It would however be a source of much satisfaction to me to learn that the Pro- vince were willing to accept the principle of a money equivalent for the line in question, the construction of which I am bound to say does not appear to me likely to be the most judicious expenditure of capital. 15. To sum up, then, the considerations to which I have refejfrid I wish you to inform your advisers and the Provincial Government that while I do not feel myself in a position to decline to entertain the representations pressed upon me by the Province, I am nevertheless at this moment unable to pronounce an opinion as to the i)urse which should be taken, either with regard to tlie Esquimalt and Nanaimo ( Railway,! or with regard to the delays which have occurred, or which may yet occur, in tlie construction of the \ \ V '.1 I ^Bw^Mtl^^l^a 16 main line. Until it iti known what is to be tlte route and termiuua of tLat line and what offers may be made by contractors for its ooustruction, I feel that it would be improper to corae to any conclusion on the subject. 16. I sincerely regret ihti immense engineering difltculticu wiwch have presented themselves, and which have necessarily rendered impracticable in some' respects the settle- ment which I recommended in 1674, but I am satisfied that the Dominion Ooyemment has contended with them to the best of its ability; and while I trust that the Province will now wait patiently until the terminus can be settled, and tenders for the work can be received. I shall be ready when in possession of tliis information to assist so far as I can, if both parties shovld desire it in the settlement of the minor, though, of course, very important, question which has arisen as to the compensation offered in substitution for the Railway on tlie Island. , I have, Ac, (Signed) CARNARVON. Governor- General, The Right Honorable, The Earl of Dufferin, K.P., G.C.M.G., K.C.B. Sic, &., &c. K ■ ififiBBai '..mliliiiiabMIIMW^