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CIHM/ICMH 
 
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A^iiauMii]:pN^"LS 
 
 ni' 
 
 HON. E. B. WOOD, 
 
 HKFOKK TIIK AKBITKATOKS. IfNDEl; TIIK BRITISH N()[;TJI AMKIMI A 
 
 , ACT OF 1807. 
 
 Willi A coi'y (»K T!l 
 
 AWARD OF THE ARBITRATORS. 
 
 
 Toronto: 
 
 HUNTRR, ROSE k (^O., PRINTKRS, 80 .•(' 88 K1N(! STREKT WEST 
 
 1870. 
 
MEMBERS ELECTED J | S 
 
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 iliitarin (S n.) T. N. (iililis IDO 
 
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 1 
 
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I'ROCEEDI^^GS 
 
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 ^LRI3ITRA.T0RS 
 
 {Under the Ilrilish, Norlh America Act, 1SG7.) 
 
 The Arliitrntors mot on tlic IHtli of Fr^jniaiy. 1870. pursuant to ailjoiirnmciit. Tt 
 being tlio iir>t day dt' the meet in<; dt' Parliament, ami the llmi. .1. II. (laimrcm ami tlio 
 Trca.sur('i' of Ontai'io haviiiii; lirrii (h't.iiiKMl hy a trahi gettuig otf the ti'aeic, between Tor- 
 onto ami (Utawa,, Avlien they aiiived at (Utawa t!iey fonnd that the Arl)itrators had met, 
 the lion. Mr. ("liauveau, ]\lessr,-<. Casault. Iiitchieaml Drolet, haviiij;- apjieared on hi'lialfof 
 Queliee, and no one appearin.L; on lidialf of Ontario, for tin^ reason.s already stated, the 
 Arbitrators aiijounied till Thnrsilay, the 17th of February, 1870, at noon. 
 
 On TInirsday, the 17tli February, the Arbitrators met, pursuant to adjournment, in 
 ( f tbe Rooms of the Civil Serviee Hoard. Fres'^nt on behalf of Ontario, Hon. Mi: Wood and 
 
 the Hon. J. Ilillyard Cameron; and on behalf of (Quebec, ihr Hon. .Mr. Chauveau, ]\[essrs. 
 Casault. Riti'hio and Drolet, and the Hon. Mr. Robertson, Treasurer (.f Quebec. 
 
 It appears that the ea.ses of the tWH) l'rovi:icfs had lieen respectively interehangMid, 
 and also sent to the Arbitrators, as required by the oidi^r of the 271 h October last ; l)ufc 
 that no statement had been furnished of any .'^ettlrmcnt liy the Provinces with the Dom- 
 inion (iovernmrut as to the delinite d(;l>t as rcHpiii'cd iiy that ordci'. 
 
 [Counsel then aildresscd the Arbitrators as lo the |ircliminary objection raised by tho 
 Counsel for Quebec, as to whether or not the Arbitrators had jurisdiction over the debts 
 and assets mentioned in the 4th Schedule of \.\w Piritish North America Act.] 
 1 The Arbiti'ators reserved jtidLi'inent until the ue.tt day. 
 
 Adjourned until next day at 1 1 o'clock, a. m. 
 
 On Friday, the ISth F.>bruary, 1S70. tlie Arbitrators met. 
 Present, the same pcrs.>ns as at the ])receding mei-tinu'. 
 
 The Arbitrators delivered their judgment on tlu' [)oint argued the day previous, and 
 made, the following order : 
 
 "The Arbit'ators having heard Coun.sel upon the obj(>ction i'ai-.ed on behalf of Que- 
 "bec, to their jiu'isdiction o\-er the subject matter of the assets enumerated in S<diednle 4, 
 "of the British North America Act, 1SG7, and ihily considered the (piotion. are of opinion, 
 "and do adjudge that the assets enumerated make part of the propertv and assets, the di- 
 "vision anil adjustment wliereof have been referred to them nuder the pi-ovisiiuis of Sec- 
 "tiou 142, of the said Act, and that they have by virtue of the said Act, authority to di- 
 "vide and adjust the same." 
 
 The Hon. t). H. (Jatneron, on liehalf of Ontario, tlien pi'oposed to go into the argu- 
 ment upon the proposition as to the mode, of division pointed out in the case statt'd by 
 Q,uebcc, namely to tieat the union of the Provinces in 1841 as a partnership — charging 
 Ontario with the alleged debt Upper Canada had at the Union, — and ci'cditing Quebec 
 
witli its iillo;j;i'(l (■a>li nii Iiaiid ;il the riiimi ainl iliiriii,;; tin' wlmlc iMiiuil nf tli«' I'liion, 
 Ih'Iiil; ii]iuai'(|s i>\' :!<; years, trciitiiij; all tliiii;.'.s iis ri|iial ; ami tluMi at tlic tnil of tin' (|iiasi 
 paitiK r-iii|i. lirst cliai^inu' Oiitaiio witii mi iiiiirh di' the excess ni' ililit hmv $(!l'.-"iII().(i(i(). 
 as wav till' allr;;i'(l ilflil (tf I'lipcr Canada at the riiidii. aiMeil t'l the alie.Lri'd cashut' l,(i\ver 
 (,'aiiada at that titiie ; at!il then after dediiitin:; this sum frcnn the e.\ee>M of tlii- deht, di 
 vidin^u' the lialain-e ei|iially l)etuecn the two i'lus iiu'cs. (The |iro]iositioii of (^Mieliee liero 
 referred to, is slate(| at full !eiii,'tli in the ar.unnienl of ihe llun. Mi'. Wood, nn the di,-"ns- 
 sion of the modes of division iii'ojiosed liy ( tntaiio and (.^'uehee. ) Mosi's. ( 'asuidt »V K'itchie, 
 on hclialfof tjhi(li(i', olij<'eied to an ar,miinent and (h'cision ot this point to he taken hy 
 itself alone, lontendin,!;- that -neli a eourM' would he exceptional. 
 
 After liearin,!;' Counsel on holli siiles as to whether this )ioinL shonhl ln' ai;4Ued and ;i 
 decision thereon liad at, this sla^'c of the .•Vrl)itration, in order to the e.\[icdiiiiii; of the 
 husiiiess heforu the Arhitrators. the Arhitiators reserved judgment until their iKi.-Lt 
 lueetin^. 
 
 The Arhitrators then ailjonriied until Monday, the '2()lh. at 1 1 a. ni. 
 
 .Mu.MiAV. -dth l'\'hruaiy, ISTO. 
 
 .Nrhitiators met. 
 
 Present : All iiarties as lieiore. 
 
 The Arliiti'ator., decl.ired their opinion that it was not desirahle to interfere, with 
 the ordinary nio<le of proceedini;s in sueh cases, and therefore, they ^^•ould not at present 
 liear the ar,i;ument upon the point, separati' and alone raised hy Mi'ssrs. Caineriin »t Wood, 
 and olijected to hy (^luehec. 
 
 P.y agreement tlu! Counsel then in'oeeed(!d to the argument on the claim of ()uel)ec to 
 charge against Ontario the capital of the Indian annuities granted for the cession hy the 
 Indians of lands in Ontario. 
 
 NK'ssrs. Casault »V I'itchie were heard on the ]iart of<^)\icl)ec, and .Messrs. Cameron .V 
 Wood on hehalf of ( )ntario. 
 
 Messrs Ca.-ault iV IJitchie s argument was as follows : — 
 
 '•The liritish Xuith Amci-ica Act of 18(i7 reserves to the Parliament of Canada the 
 " e.xclusivu legislative authoiity in matters relating to Indians. This rendered necessary 
 "th,! change in the statement of liahilities of the principal of the annuities jiayahle to Jn- 
 "dians r.s a compensation agi'ced upon hotii hy deeds and ti'catie.-- for the lands in Pfij^er 
 " Canad'i whic'.i they surrendered to (I ivernment. The annuities amount tu .S''>l,lliU. and 
 "liiM'c ^ince the surrend(M' heen a ]iermanent charge (Ui the <."atiadian 1)\nlget. They are 
 '• cajiit.-iized ;ii •"» jiiT cent., forming sti::il,liSli, and are ju.-t as now stated the price or con- 
 *' sidei'atiun .stipulated hy the Indians for ihe sui'remh'r of large tracts of lands in I'liper 
 " Canada. Information us to the quantiiy of these lands remaining unsold, and the arrears 
 "due (Ui the -ittth June, I SOT, on those lU'eviiusly sold will leijuire to he ohtained, which 
 "as yet has not ln-en done, ily Sec. Ill',) of the aho\-e .\et all lands are made over 
 "to the l'i'o\iiu'e ■\villiin which tlu'y aie situated xiilijicl, Itmn rcr, to niDj IruM v.i'is/in;/ in rn- 
 ''sjiccl tlirrnif.iiinl In niii/ iufnusl. nl/nr limn thut cf llic l'i''ir'niri' in the ^omc. These iunmitii s 
 " heing the jn'ice unpaid of the lands themsehcs .-uc ;i charge on thrni. The contract lie- 
 " tween the govci'unient and the Imiians dught to be go\-eriied hy tiiesame rides as similar 
 "contracts h"tween indi\iduals. The land heing Avitliin the Pro\ince (jf Ontario, hecame 
 '' uinler .saiil Sec. 101) the proiie^'lj- of that r'rovince, suhject. however, to the interest of 
 "the Indians in the same. This interest is the ])ayment of the annuities stipidated as ;v 
 " compen.sation for the lamls eeded. It might also he called a trust, the administration 
 "of ^vhicll is 1 'ft to the J)oniinion, tlie legal guai'dian of the Imlians. Ontai'io I'ccciving 
 "the lands and the ari'ears due foi' those sold, is suliject to all legal and e([uital)le claims 
 " which may exist on them. It slioidd, therefore, ))e charged with tlu' piincipal of the 
 " annuitii's. It would 1)(> manifestly unju.^t to rci|uii'e (Quebec to share in i'lying for these 
 '• lands which will he the eti'ect of tlu' eajiital heing allowc^l to remain in me statement 
 "of liabilities unless compensation is recpiired from Ontario foi' the land - ;ind ai'i'car.s rn- 
 "pres(^nting the capital of these annuities." 
 
 Tlic argil nieiit of Mr, Wood, contra, was ius foUow.s : — 
 
Tt wiiiilil iiii|M'ai' tliiit ])i'i'iiiiiily the I'utii"* triritDi-y imw ('(iiiiiJrisiiij,' T'| in'i" Caimilii 
 .111(1 Lower Canaila was tacitly, if iiot cxinfssiy, ailiiiittril liy tlm IJii[i>h ( S'lVciiiiiiciit to 
 bc'loii,^ In tlic vaiii.iis trilics (if Indians ulio niiimcil i>\i<v it, and rc^aidcil it as tlicir iiiint- 
 Ini; .i^Kiiind and ri^liti'id ]ir(>|M'!ty ; and their lenitmial ii;,dits seem to liave Ix'cn fidly re- 
 (:(>t;iii/.ed liy the |ii(i(laniati(in of (!e(ir,ite III., 7tli Octdlier, I7(');5, intminlj^atcil to tln^ In- 
 dians liy .Sir William Jolmson. "J Itli Decemlier, 1 7(i.'J. Kxtract ; " Aii,l ifhi fi'as it iti just 
 ^^uiid miKOiinh/i'. (iiiil o'snilitil t" mir iiih n.'^l, mui Hie smti'ifi/ nf mir ('olmiirs, thut lln' -frri'/vt 
 "milioii.i or fril'C'i of Indinii.'^ irith ir/oun ire ay iiuhki'IhI, or I'-ltD Jin; iiinbr ("(/' /in>ltiii(ui, 
 "ulioiilil H'lt he iiiii/r.il('(( or (li.-<lurlii(l in lln: iiii.<.<i\<.<ioii of .vwh /nirti of our tloinininas ant lirri- 
 '^torics, (/.•; nul luirin;/ linit rabd to, or /oirfloiscd bij us, lire referred to tin ill <ir am/ of than an 
 " thiir hnn/iioi iironiids" 
 
 Actiii,u- n|inn this jnineiiile .nil r|i]ier Canada was, in faet. at dilVi-ient times and in 
 varyini; (|uantilies jiuidiased from the Indians. I'rior to l."<2'.>. |ia\ ments wcic chieily 
 made in annnal presents. S»d)se(|iient, to that time |iayments were made in annnities. 
 partly in presents ;ind [laitly in cash. 
 
 |('onnsel here went into full [lailiculars lelatin^ to every ]iiireliaM' made from the 
 Indians, e.xhihitini; and presenting,' to tl;e Ar'liiti'iitors .a carefully prepai'cd map, .showing 
 the dill'ei'ent .-'Urrendei's, iheir date and the sti|in!ateil anmuty, with a printed statement 
 of all the particul.irs relatim;- to the same, .nnl a carefully pi'epared argument of the wi.ole 
 question I'aised hy the ('oun>el for (jliieliee, which hein.Lj volunnnous i> omitted.] 
 
 It is enough for the present purpose to slate that at the I'nion in j.^H, these a!inui- 
 tu's !unounte(l tlijOdG — .$l'(i,;)() j, and as the Imperial (Jovernnient hy the I'ninn Act of 
 LSH), supjtlemeiited 1)y It Vie., cap I 1 I, ]iassed in 1817, siirreiidereil all the territ'irial 
 rovcmios of I'anada. to the I'ros iuce. it i((|uire(l the i'rovinc(; to ])ay the.se Indian annuities. 
 For .some ye.ars after the Union they were paid from the proceeds of the Crown domain, 
 and were considere(l a first char.i,'(! on such jiroeeeds. hut never njion the lands themselves. 
 It was inteiideil liy ihe lm[ierial (Sovi'mmcnt that the>e annuities should have heen nnuh-. 
 a resei-ved charge on tlu; W'hid(! (Consolidated Kevemie V\\\o\ of the I'rovinee in the Union 
 Act of IS 10, hut they weni inadvertently omitted. The Imperial j.;i)Veiiiment w.a.s not 
 .satislied with these annuities remaiiunj; in ihepesitlon in winch they \i-ei-e, as !ipi)ear.s 
 from a despatcli from the S'jcrctary of St.ate for the Colonies to I^ord Mete;ilt'e. in i)?41. 
 In coirseijuence whereof was passed 't Vic., cap. 1 1 I, hy which these .uinuities were .speci- 
 ally included in tlie (Jivil List. Schedule ]'.. ; thei'eliy iemo\inj,' all ehar^'e in respect of 
 them (if any e.xisted) from the tei'ritorial re\-eiuies of the I'l'ovince. and nud<ini;' them a 
 permanent <,'haree on tlie Consolidale(l lie\einu> Fund of the whole ri-ovincetrom all 
 sources. 
 
 .Such is a short stateuumt of tlie facts rel.ating to ^rhat are called the "Old Indian An- 
 nuiticif." 
 
 To the ai7,'nment of ('(mn.sel for Quehcc, which is purely technical, it is answered : 
 
 1. According to English F([uity Law there i.s no lien existing on the lands ceded hy 
 the Indians, as is demonstrated by numerous decisions, and amongst otlieis the following; 
 JJiiiillon \ii. <!illc-<]iif. In .'l/ijnat^ l\ C, (Iranff lo'por/s, '222. In this case several p.artics 
 bought a tract of land, witli a view to laying off a portion thereof into builning lots, and 
 belling the same to purchasers ; for greater facility in ihiing .so, the higal estate w as vested 
 in one of tliem as trustee, however, for the sevei'al parties interested. Sub.se(|nentlv one 
 of the owners sold out liis share, receiving in ]iayment notes of hand inaih' by iiis vendee, 
 and emhu'scd by two other jiei'sons. It was held by the Coui-t in A})i)eal that the vendor 
 (lid not, under such circumstances, retain any lien for the purchase money remaining un- 
 paid. The Court in giving judgment say: " It is the vendor's 'natural eiiuity' .as it ha.s 
 " been termed, to have a lien on his estate until he lias been paid for it ; but "the vendee 
 ''may show that under the circumstances of the purchase it is not e(piitable that .such a 
 " lien .should be retained : and if he can show that the I'etention of such li'ii would defeat 
 " or even materially interfere with the known object of the purchase, so as to clog it with. 
 •• difficulties, which it is reason.able to conclude that the ])arties could not li.'ive intended 
 "that the ]iurchase should lie encumbered with : th-'ii the veiulor's /v/v'/^/rt/i/rvV' equity is 
 " rebutted, and a state of things is establislied under whidi the r(tonti(m of the lien would 
 " be the reverse of equitable. * * * Uut inasmuch as the right to a lieu does no 
 
"i,'ro\v out (if colli lact or iiiti'iilion, hut mil ol'tlic natural ('(|iiity of tin- vendor, it seems 
 ''to lullow llial \\lirne\cr i( can lie shewn to lie more e(|llitaMe llial llie |imciia<er slionM 
 " lia\e his land i'lcc tVoiii the lien, than that the vendor should retain it. no lien lor nnpaiil 
 *' purchase money c;ui exist, for tin' e(|uit\ au'iiiiist it oiitweij^hs the eijuity in ffivoiir of it " 
 In (liliiniiir V. lliini'it, I M.'isun, |i. -Mi"*, the doctrine ot" Vendor's lien tor un[iaid imrchiiso 
 moiii'y is discussed. In this ras(' a tract of land was purchased with the view of its sub- 
 division into lots and sale to settlers, and ne;;otialile notes wei'e taken for the unpaid pur- 
 cliiist^ money. In ^^iviiiy judj;inent Mr. Justice Story said : " in applyiiii,' the doctrine to 
 " the facts of the present case, I confess 1 liave no dilliciilty in pionouncinj^ af;ainst tlio 
 " existence of ;i lien for the unpaid part of Ihepurcluise money, 'i'lu^ ]iroperty was ;i 
 " huf^'e nuiss of unsettled and unculli\aled lands, tu which the Indian title was not yet 
 " cxtin^'iiished. It was. in the necessary contemplation of all parties, lioiij^ht on .-pecula- 
 " tion, to lie sold out to siili-piirchasers. and ultimately to settlers. The i;reat olijects of 
 "the speculation would lie mateiially impaiicd and emliarrassed hy any latent encinn- 
 " hrance, the nature and extent of wliicli it mi^fht not always he easy to ascertain, and 
 "which n.i.nhl. liy a .-.ulidivision of the propeity, he apportioned upon an almost inlinite 
 "numher of purchasers. Jt is not siippos.alile that so olivious a consideration should not 
 "have heen within the view ol'|iailies. and vieuim,' it. it is dilliciill In suppose that they 
 "could mean to cicate such an euciimhiauce ; a distincL and independent security was ta 
 "ken hy nej^otialile notes, payalilo at a future day." 
 
 It niiglit he infeired from thi' Ian,^uaye of this eniinrnt Jnd;f(>, tliat In; reste(l the (In- 
 cision <if the cas(^ on the presumed intention of the parlies ; hiil it is susceptililc of tlio 
 constiu<tioii that "the e(piity at;aiiist the retention df the lit n outwcMghs the equity in 
 favor of it," and theivfoic '• its retention would be ineijuitahle." 
 
 In jy inter vs. [jird .Inxan, 3 liuss, 488, Lj/ndhurst say.s; " In general where a bill, note 
 "oi bond is ^dveii i'oi' the wholi! oi' part <if the piuchase money, the vendor does not los« 
 " his lien for so nuali of tin: money as I'emains unpaid. The circumstance that in tlie.so 
 cases the money is secured to lie paiil at a future day, does not aifect the litjn." 
 
 In Porrolt v.s. Sircellanil, 4- M, tV; K. (!"),"), a distinction was reco!4nize<l between case.s 
 where a serurif.i/ for tiie ])ric<', and a suli^titntioti for the piic(i of the land was taken hy the 
 vendor ; and in llu; latter case, it was held that tin; vendor had no lien. 
 
 Wilson v.s. I)airnl!<, 1) U. C.,Clrant's Reports, 4U.'i, K.sten, \'. V.. said : "It is cjuite clear 
 " that the law confers the right which i.s asserted in the present case, (vendor's lien) 
 •' independently of the .•igreement of the parties, and that in order to prevent its operation, 
 " it must citiier expressly or liy implication be extinguished. An intention of that nature 
 "may lie. and otteii is, inferred li'om the ciroumstances. indeed almost always, Avhen it i.s 
 "deemed to ]ia\(! become extinct, ibr it is seldom tht^ siiliject of express stipulation. 
 
 In Jkfinir vs. Sinil/i, 1 I U. ('. (iiant's lieports, .^i70, the plaintill' sold an estate to the 
 defendant for !i-"J,(i(lO. (if the pnrciiase money, !?'iliO was ]iaid in hand, a mortgage taken 
 on other property for .Sl.d'K) ; and for the icmaining !?8(i(i, four pnnui.s.soiy notes were to 
 be taken payabh; at intervals of a year. The plaintilf's bill stated tin ni as "four proinis- 
 "sory notes of the deiendant and such other person ni' persons of such standing as to ren- 
 " der the notes, without the indorsement of ihe [ilaintitl' capable of being sold and disposed 
 "of by the plaintitf without loss, to persons living in tb.e neighboihood of the plaintiff." 
 The j)laintiti"s hill w;is disinis.sed with costs. ,Sjinii/f!(\ V. ('., in giving judgment, .said : 
 " 1 am of ojiinion that under the circumstances, the plainlilf retained no lien on the pre- 
 " mises sold for any portion of the purchase money," and he cited in support of his judg- 
 ment, A'(//;'/( vs. Prowc-f, U Fo.s'. 7J52. liond vs. Kent, 2 Ft.s. 28. Unglu-a vs. Stearns, 1 S. 
 & L. i;'>2. Macicwrath \i>. S/jinniona, 14 res. :5tl, 348, 34!t. 
 
 Now', su])])i.se that tlit^ alleged [lurcbiise of lands from the Indi.ans stood upon the- 
 sanie footing as if the Iransai tioiis had been betwei n private individuals ; whicii is [ilac- 
 ing the view taken by the Counsel for Quebec in the strongest pos.sible light in their favor. 
 I'nder the facts of these, Indian ]iurchases, about which there i.s nodi.s])ute, in the light of 
 well .settled eipiity law, as ddrionstrated in tli(! cases cited, no vtr.doi s lien (taild ( xist in 
 resjiect of tlu; lands. For th(^ lands weni ctided in large blocks covering millions (jf acres, 
 and the express design and object in acquiring the Indian claim to them was to survey 
 them into small lots and to sell the lots to actual settlers, and to grant patents to the so 
 
 in 
 1)1 
 tl 
 fo 
 111 
 
t 
 
 tlciH. Ill the liiMj^iui^t' (if .Iii(li;c Sl(iry. "'I'licy wen! in the iiccfHwiry roiitrriiplatinn of 
 "all partirs liuiiiilil tn hi' snld out tn wiili luncliasiT.s (iiiirclia.sfrs I'lnin tlic ( 'niwii) ami iilti- 
 "iiiatt'ly to ai'tiial si'ltiiis. 'I'lic j;nat nltjrd ot'llic iiiircliascs in ijiicstiun, wmiM imt mily 
 •' he iiiahiiaily iiii|iiiin(l ami friiliair.i>~i'il. Imt iittnlv ilct'ratnl. it' tlic vcmlni'.s Jitn wcic to 
 "attacii III tilt' lamis apiKUl imii'il mil n|ii>ii an alinnst intiiiilc niinilMi nt iniicliascrs. " In 
 tluH case tiic ilnctrinr wuiilil a|i|ily. it' apiiiiialilc in any rdnccivalilr r\cnt, "'that it /■>■ iimn' 
 '' I'liiiildlilr IIkiI III! jiiiriii(i.<i r .-lumld Imi'i hi': I'linl J rn' Jiniii lltr /ini, thiiii that Ihi' I'lnilm' shmiltl 
 " re tain if./m' Ihf K/iiih/ lujuiiinl it viiliril(/hs Ihr I'/ni/i/ in fuccr of it." 
 
 Tlificl'di't', a|i|ilyiiij,' til the case in liami, tlit- strictest ami sliaiprst (■(iiislnictioii of 
 (ujiiity law, no lim for unpaid ]iurcliasc imuicy '"i" fxist. 
 
 Wlicii onr couirs I o vii'W t iir i)ursiiiiii ill llir lii^lit of suiToumlin^!; farts ami tlic liistnry 
 ami lt';;islation of tin- country, even if on .striiil\ teclmical ,t;roiiml.s as hetween pri\ale in- 
 dividuals, sucli ail eipiity as is conlemled fordid exist, all pieteiice for any sucli contention 
 is entirely reimivt'd. A contrary conclusion would make e\ery farm in I pper ( 'aiiaila. 
 lidWcNcr old and loiij^ settled, and liowevci' lon.t^ the patent may have heiii held from the 
 Crdwii, suhjcct to and encumhered with the oi'i,ninal pmcjiase money a.i^recd to he ])aid hy 
 the t'ldwii to the Indians for theextiiii^uislinient of the Indian title ; u result which shows 
 its utter ahsurdity. 
 
 ;'. The "Old Imlian Annuities," as has hceii hefore reinail<e(|. ai'e ir'l'li.i'i; I, and capi 
 talizcd at fi percent, amnuut to $riM:i,2i'^<i. If it he ar,i;ued that, tliou;^h true it may \w, 
 this capital is not a chari;e on the lands, yet still it is on ihe proceeds of the lands, (it is 
 (lifHcult to conceive how it I'an lie the latter without hi'iiii; the former.) the answer is that 
 if it he a chai^nc at all, it must lie a liist charue on the proceeds of the lands, ami if so, 
 that lietweeii If^llaiid lS(i7 more than .S'l.ond.dOi) net have heen realized from the ter- 
 ritorial revenue in r]i])cr Canada alone, and paid <ivcr into the coniinon exche(|Uer of tin- 
 late Province of Canada, and applied tti the ,i,'em'ral ]iiirpdses of the whole Province. In 
 deed tile receipts of any one year since is."rj would have heen sullicieiit to havi^ ciiahleil 
 the late Province, if it had heen its duty .so to do. to have set apart and invested an ainouivt 
 e(|iial to the capital o|' thi' annuities, 8'>'5''5,2'~^", at "i per cent, to meet these annual recur- 
 ring ]iayments for all time. Put the late Province did not do this, hut u.sed the capital 
 for the i^-eiieral jmrpo.scs of the Province, and theicliy relieved that particular source of 
 revenue from the charge of the.'^e annuities ultoj;i'tlier - niakini,^ the whole Province it.self 
 the direct debtor foi' the same. If this were not so, when the lands and revenue were, 
 exhausted, as is the actual fact in respect of marly all or the greater portion of the land.s 
 for the cession of which these aniuiitii's were created, there would he no source whence. 
 they could he ]iaid. 
 
 ."5. In IS 17, the late Piovinco of Canada, in order to di.schargo the territirial revenue 
 in Tipper ( 'anaila. finm auv charge or lien in rcs|iect of these , a umii ties, and in consideration 
 of such discharge, and at the reipiest of the Pritish authorities and in deference to the Im 
 perial wish, placed the payment of these annuities heyond all casiialitie.s. A.^ has been 
 stated in Jairott vs. Swcctimul, the court held that '^ irhcrca sithstitiilinii fir tlir pricr of lav 'l 
 was tab'H hij the vcwlur, no lien for that j> rice cxisti'd." • 
 
 In the case of these annuities, the; parties directly coiiceriii'd were the Impi'iial Covern- 
 ment on the one hand, which was the guardian of tlie Indians, and the Canadian (Jovern- 
 inent on the other hand, which was bound to make the payments. liy !) Vic, ('., 1 II, a 
 definite and final contract was made between these parties, whereby tliese annuities were 
 made a part uf the Civil List, ami included in Schedule I], to that Act. Sec. G .says: "The 
 "said several sums mentioned in the saiil Schedules, (Indian annuities ,£(i,ri(;(i is one of the 
 ".sums) shall be acccjited and taken liy Her Majesty by way of Civil List, instead of all 
 "territorial and .ither revenues, now (then) at the dispo.sd of the Crown arising in this 
 " Province, (Pro\ince of Canada.)" Here is a clear substitution fur the price, of land, an an- 
 nual charge on the wliole ( 'ou.solidated I'cvenue Fund, if these annuities are considered to 
 be the price of lands or unpaid puivha.se money, by the express contract of the jiartics ; for 
 this Act as the recital .shows, was jiaissed at the instance of Her .Majesty, and was reserved 
 for IIi'i' iMaji'sty's assent, and was assented to by Her iMajesty. In its very terms this an- 
 nual charge on the Consulidated H(>venue Fund was substituted for all payments which were 
 to he made to the Indians out of territorial and other revenues. Therefore, all conne(^tion 
 
Ii<'t\v('<'ii till' l;nii|siir till' nni'iiiii's tli'iivalili' IVuniili.' Ijiii'Ih wnsciitiii'Iy I'lit n|V, iuiil fiiri'vci 
 
 (•\tili^lli>lli'.|, ir.'lliy "^llrll fnllllrcliiilis iliil tllrlctnl'iilr r\i,>t. 
 
 I. A:-iilr tVi'iii till' I'ui'c^^aiiii;;' ('(iii,'*iili'ratiiiiiH, it is iiii|M'-siMi' ii"! to liriir in miinl ilir 
 WAV ill w liirli rpiM r Cm 11,11 l;i ;iiiil l.nwi r ('aiiinl;!, al'trr liciii;4 n'liiiilid in Is 1 1, i lining' tin-. 
 Inn;,' iiciidd uj' 1 \vi'iit\ >ix vi'iirs, ivj^aiili'ii juhI ti'fatcl tin- ( Vnwn ilniiiaiiiii. ami tlii'-i' amiiii- 
 tii'H, Tlit'y !iil in>t Inuk ii|Min tin- aiiiniitics as lu'iii;; rliar;,'rs dii tin' lainls. So I'ar tVniii it, 
 tlii-y ni'ViT ri'jfiU'iiril tliriii as luiii,!,' siiccilic rliar;,'rs nii till' iii't M'vt'inirs rimn tlir lamls. On 
 till' <'(iMtl'aiy, iIk'V ti'riitril llii'iii as t,'ini'ral rliai^ii-s on tin' wlmli' nf ('iiiisulidatcd Ivt'Vciiiio 
 l''iiiiil;a |Mriiiaiiriit ilrlit n|' tlir I'nilfil I'luv incc, IViuii w liirli ilir i'lMvinri' lunlittnl largely, 
 vi:ry lar;;('ly, in the tciritni ial ivvciiih' iliTivnl Irnni tlic laiii|>. 
 
 If tlii'si' aiiiiiiitirs arc a rliaf.ui' iip'iii llir laii<U liamlnl n\ir tn()ntarin, llic mily 
 nowcf ra|ialili' III' riil'nicin,^ tlii' rliai'^r is llir I )ciniiiii"ii n|' ( 'aiiiHla, imt llir AiMtiatois. 
 riic (iMViTiiiiii'iit lA' t'aiiatla is i!iarj;i'il with the rxrciitinii nl' all trusts licluiiuin.u I" tin; 
 iali' I'rnviiirc. All ulili^iatioiis nf tlir lati' I'lnvini'i' arc lliniwii ii|miii the l)iiiiiiiiiiiii of C'a- 
 iiaila. The I)oiiiiiiioii of Caiiaila ha.' ilcclarcil that the |iayiiicnt of these annuities rests 
 with it ; ami it has fiiithei' iledaieil. that it is not an ohli.i^atioii of Ontario, Imt of the lato 
 I'rovim e of ( 'aiiada. In fact, the Arliiliatois have really not h in,:;- to i|o with the (|iiestioii. 
 l>Ut whether they ha\e, or a>-sllllli' to have or not, makes little iliU'elelice ; tor the ])|etell- 
 tions of Qiicheu cannot lie siistaiiieil hy law, e(|nity ot facts. In whatever lij^ilit it i.s 
 viewed, lint one coiiclnsioii can lie aniveil ;it. 
 
 '•Ni;\V INDIAN AXNUITFX" 
 
 tl'l'i;il lANADA. 
 
 I'mler Tvoliinsnn's treaty of ISHO, there wa.s paid down, in rash, .91 H, (110 to the I.akt; 
 Huron and Lake Siijieiior Indians, and these Indians were also hy tlu; treaty tu he paid 
 iinnuities as follows : - 
 
 Lake lluioii Indians Sl>, 100 00 
 
 Lake Superior Indians 2,000 00 
 
 Total 84,100 00 
 
 The territory surreiidored by tlieni lieiii;,' all the residue of iincedcd lands lielonginS 
 to tlie Indians, situate within the rnivince of Ontario, eiiihracin;; the country lying to the 
 oast of the (Icor!.;ian I5ay. and on the north shore of Lakes Huron and Superior. 
 
 I.OWI'.K CAN.VDA. 
 
 A.'< n .«ct off to the payment made to the TTppor Canada Indians (!?in,r>1()) and the 
 annuity of ."rl. 100. Imt to which there was not a, sliadow of claim or li^ht, there was hy 
 the Act 11 and lo Vic, c. 10(1, granted to the Indians in Lower Canada, an annuity of 
 $4,000, and from the puhlie domain 2150,000 acres, without jirice or payment, whicii at 
 the moderate sum of one dollar ]ier acre woud lie eijual to a ,i;rant from the puhlie, ex- 
 chequer of !?2.'5O,0O0 ! and these lands were actually set apart tor tlu; Lower ('auada In- 
 flian.s, .as .set foith in Schedule thereto annexed. Hut not content with this, it appears 
 from the I'ulilie Accounts, that the annuity paid from the puhlie exelieipier to Lower Ca- 
 nada Indians has has heeii — 
 
 Under 14 and If) Vic., c. lOG $4,000 00 
 
 I.y annual vote of Parliament 400 00 
 
 Total $4,400 00 
 
 It is therefore didicult to conceive on what ground Qiiehec can urgi! before tlio Arbi- 
 trators any claim again.st Ontario, on account of Indian annuities '' new " or "old." Hut 
 it is not ditticult to see, nay, it is impossible not to see, that Ontario has a just and proper 
 claim against (Quebec for its proper proportion of .^^.'^o.OOO given to Imlians in Lower 
 Canada by 14 and 15 Vic, c. 100, an I for the §4,000 perpetual annuity granted by the same 
 
 • • 
 
 
Act, and lui (he |ii|(i(» iiiimial -rant IVniii ISJS tu isiis. aiiic.iliuiti;; uillmiit inl-iv t. b. 
 
 $l.(Min. Til.' ivas (■ tliif imi.'.t In- iicrttrtly oltvimis. In the cnm' t'f tin- iiutm-y piinl, 
 
 anil till' anniiilv mi'lrr llir IfMliinsoii tivaty. miitnl <'ana.la li.fmv ('unlVdciatiun lyc.'iud 
 ImiUi niMiiry aii'il .niiiiiity l.aik. nmiv than lil'iy tiiin.s li,].!. in tlu' Hilvanta;;-is nl' which 
 Lowi'i: ('ill; At\ i>artii'ipat".' 1 .'»|ii(Llly with IjipiT Caiia-la. \\'l'civas in the case of tlic land 
 
 givi'll to the 
 
 Luwcr Canada In.liaiis ''Miii'l <" *-':tii.(i(i() (lO 
 
 And till' amiiiity hy s>ict ial vote fur 10 ycar>* <it'!ii<li)0...... IJMio MO 
 
 I'ciiiclnal aniHi'itv! 1 i and |.'i Vic, .■. lO'l, f,ii)itali/,f(l in 
 
 l,s<i7, at ."> |MT.vnt f^<>.'»'>" 00 
 
 Intcvi'Ht on paynn'iits inadi' iiiidci' s|ifciai vote, that is to 
 
 may. nil the SlOii annuity fnr lo ycais l.-'!-i> •><) 
 
 Inlfivs't nf .«' 1.(100 annuity to L'^tiT. I'o years i:5.IOO 00 
 
 MaUin-alotalof ^IVinj-li) 00, 
 
 in whiili I'pl'i'i' Canada in no way liarticipatcd or derived any InMielit or advantn.u'o 
 wliatsuevev. 'riieivroir. it niitsi he 'nid'atcd that it is inipiissihin not to sn> that in tho 
 arl.itratioii. Ontario nnisl. on aeroiint of Indian annuities. l)c alloweil as a.^ainsL t^)iiel)LH', 
 the sum staleil, namely .*:'.i'S,7*J0, 
 
 It may he ar-iied that the ,i,dviii,u' ol' tliese lamls to Lower Caii;ida Imliaiis was no ad- 
 vantftjic to' Lower Canada ; hut it must he horiie in mind that had not these lands heeii so 
 given', thev mi,<j;ht have been sold, ami Upiter Canada would have shared in the proceeds 
 of sale. T\u- Indians ut liower Canada, were, so to speak, "a local institution," ami oii^ht 
 to have lieeii [iiovided tor fioni local sourci's. They surrendered no land for the common 
 boimfit of tlu) whole I'rovince of Canada, as did tlu; Indians of I'piier Canada, to whom 
 annuities were granted. 
 
 " r.ut whatever view may he taken of tln' kinds jiiveii to (he Indians in Lower ('a- 
 n.ada. there can he no «|uestion as to the ((/(«^////fv,- given to the Lowr Canada Indians. 
 For these, no Lands were surrendered, and no ohiigation reste.l on I'piiei' Canada (o give 
 them anything. It may he that Lower (,'anada was lioiind to piovide for' them : if so, it 
 should liave done it from its local sources. It having ln'cn ina(h' a charge on the general 
 li.vcclu'ipier, I'pper Canada should have credit for its projiortiuii of the grants, -which, with- 
 out taking into consideration the lands, amounts to .fU8,720. 
 
 This closed the argument on Indian Annuities. 
 
 I 
 
 Ottaw.a, 2 1st February, 1870. 
 
 On tlie meeting of tlio Arliitrators. it was arranged and agreed that argument should 
 be heaixl and a decision had upon the prin(;i[iles or modes proposed for the appoitionmeiifc 
 of the excess of debt and division of assets betwe<'ii Ontario and (^iebe(\ as a basis or 
 guide for adjudication upon the matters sulniiitted by the B. N. A. Act, ISiiT. when },Iy. 
 Wood said : — 
 
 Ontario has sugs^csted three diilerent piiuciples ormodes, upon one of which or upon 
 parts of the three combined, tlH> excess of debt and the assets should 1a' divided between 
 
 Ontario and tjluebee : — 
 
 1. Origin of Local Debt. 
 
 2. Population. 
 
 3. Value of Capitalized Anscts. 
 
 1. Oriijhi of Local Drill. 
 
 In treating of the propositions for the divi.sion of the exce.ss of debt and the assets, I 
 shall assume certain amounts, for tlu; purpose of presenting more clearly what I have to 
 offer, and which, though not strictly correct, can in no way alTectthe |.rincii>le of themodo 
 of division. It is kno'.vn that tjut total debt of the kite Trovince will be at least 
 179,500,000, without the deductions provided for by The British North America Act, and 
 
8 
 
 after such deductions, to $73,000,000. Tliat will make the excess of debt over $02,500,000, 
 at leant ii? 10,")()0,0()0. Now, on exaniination of the items which compose the total debt, it 
 will lie found that that portion of it created for Local j)urposes in llpjier Canada and 
 Lower Caiiada, amounts in round numbers to at least upwards of $17,000,000, of which, 
 810,000,000 was for Upper Canada ])nri)oses and S7, 000,000 for Lower Canada purposes. 
 The total debt is reduced from $7'.),5O(),()0O to $7;5,O00,()00 as I have just said by deduc- 
 tions ; and therefore, tlu; excess of debt to 1)0 divided, is only $10,500,000, instead of 
 $17,000,000, the amount of the debt created tor Local purposes. If the total debt wore 
 not reduced, there would liav(,' been $17,000,000 instead of $10,500,000 excess of debt to 
 be divided be^ween Upper Canada and Lower Canada. In the latter case, it is manifest 
 that the c )rrect principle would have be n to apportion to Lower Canada the debt created 
 for her Local purposes, namely, $7,000,000, and to Upper Canada that created for her 
 Local purposes, namely, $10,000,000. Can the .soundness, justice and fairness of this 
 princijile Ik; a.s.sailrd .' If it can, it certainly has not been so far attempted. 1 cannot 
 conceive how any one can offer any rationnl objection to the princijjle of the division 
 embraced in this proposition. If this l)e j^rar.ted, the real e.xce.ss of debt, be it $10,500,000 
 or any greater or less sum, must be di\ided rateably as follows : — 
 
 17,000,000 : 10,500,000 : -. 10,000,000 : Ontario debt. 
 17,000,000 : 10,500,000 : : 7,000,000 : Quebec debt. 
 
 Of the debt created for local purposes, ($17,000,000), in round numbers $0,000,000 
 resulting from the Seigniorial legislation, left no asset behind it. If the whole $17,000,000 
 had left behind it $17,000,000 of as.-ets, then Lower Canada w^ould just simi)ly take its 
 assets, .-ituate within its own I'lovincc, namely, $7,000,000, and Upper Canada would 
 take its assets, situate within its own Province, namely, $10,000,000. Hut as I havi^ said 
 before, $0,000,000 of the $17,000,000 loft no as.set behind it— that is, the assets to be 
 divided amount to oidy $1 1 ,000,000. It follows logically that the assets .should be awarded 
 on the same juiiiciple as the excess of del)t ; or to speak nicjre accurately, it necessai'ily 
 follows t!iat tiie same principles actually divides the assets, giving to Lower Canada the 
 assets left behiiul its local expeniliture of $7,000,000, less its Seigniorial Legislation ex- 
 penditure ; and to Upjjcr Canada the assets left bcjiind itshjcal expeni'iture of $10,000,000, 
 less its compensation Howing from the .Seigniorial Legislation. In other Mords, of the 
 assets to l)e divided by the arbitrators, it gives to Lower Canada its local assets, and to 
 T'p])er Canada its local assets. It is worthy of observation that so unassailable is this 
 principle, that th.; principh^ of prcp-ntion api)lied to the division of the debt, is equally 
 a])pli(able to tlu- division of the as.sets, and produces the .same result.s. Of all the modes 
 suggested, this is least ojK'U to objection, li is founded on truth and justice. It is not 
 even open to criticism. It is able to be understood by tlie commonest intellect. It can- 
 not be attacked Ity the ])artizans of eithei' Province, and nuist recouiniend itself to the 
 common .sense of llie whole country. The same cannot be .said of any other mode which 
 lias Ijeen suggested or which I have 1m 'en able to suggest to myself. 
 
 2. Poimlation. 
 
 In dealing with large sums to be distributed among or to be borne by the people of 
 one country who are homogeneous, of the same origin, and of the same general habits and 
 charact,eristies, the principle of ])iipulation has been uniforndy adopted. For in such a 
 country it is reasonable to suppo.se that members of one coninuinity in one portion of the 
 country taken as a wliole, eontril)ute as much to the geiu'ral exjx'u.se of the whole as the 
 members of any otiu'i' portion of the commonwealth, and are therefore entitled to partici- 
 pate eipialiy in any distribution made to the whole country, and should, for the same 
 re;i.son, be e(juaily liable to bear any impositions impo.sed on the wduile country. On this 
 principle tlu; Zollvt;rein or Cu.stonis Union of the Germanic States was formed, and forty 
 yeais ex; •rience has demonstrated the correctness of this ])rinciple. Under this Customs 
 UiHon now, over 2.'5, 000,000 t balers are annually collected in one eommo.u Treasury, and 
 distributed among liftei^n inde])endent States, wlio.se population in the aggregate amounts 
 to ufrarly forty millions, jtro rata of their population. Ihit we have a notable example 
 T/here this |)rin(:iple was recognized and acted upon nearer honu\ According to the 
 Quebec Kesolutions, as sanctioned by the Legislatures of the several Provinces, the debts 
 
Ji 
 
¥ 
 
 whicli each Province mif^'lit Wmg into the Union, which were to ])e tlie deht of the 
 Dominion, and to form a ciiur,!j;c on the joint revenues of all, were l)ased on the popidation 
 of each Province;. The ,sul)sidy which each Picjvince Avas to draw from the Common 
 Excheiiuer for the 8U|ipoii of its local .government, was according to and based up(m its 
 popidation. An adilitional .suljsidy foi a limited jjcriod of time was given to New 
 Brunswick. But this was not a (](>parture from the pi'inciple, l)ut a most emphatic re- 
 cognition of it. as will he seen hy reference to the sixty-fifth of the (Juehec Pvcsolutions. 
 Tni( it is, addilioiial subsidies were given in the Avay of special payments by the delegates 
 in England, and which are now emliraced in the liritish North America Act, which are 
 not based strictlv, though apjiroximatively, on population. 15ut the.se were never authorized 
 or sanctioned by either the Legislatures of the Provinces or the people. They wore de- 
 clared by the whole country to bo wrong, while the adjustment of the (h'bts, ae.d the sub- 
 sidies on the [)rincii)le of i)oi)''.i.vtion, met with the univi'rsal approbation of the wliole 
 country ; and one does not s'e how it could be otherwise, for its justness and fairness as 
 a rule, applicabh- to a homogem mis ])eople, cannot lie denied. The principle^ of division, 
 accoi'ding to population, has th.e more force in the case under consideration, from the fact 
 that this divisi(Mi of the exc, ss of the debt of the late Province at the Union, and tins 
 division of the assets hanih'd over to Tipper Canada and Lover (Janada, spring (liiectly 
 out of and are cognate to the Confederation of the British North American Colonies, the 
 financial arrangement of the Union of which, was based expre.s.sly on population. It may 
 perhap.s be as well in order to silence for ever any argument as to the principle upon 
 Avhich "the adjustment of the debts, credits and liabilities" of the several Provinces was 
 l)ased in the great scheme of Confederation, to make a few quotations from tin; (^lebec 
 Kesolutions, and from the Sjieeches of tlu; Minister of Finance (Hon. Sir A. T. (bdt), and 
 the President of the Council (Hon. George Brown), in the Parliament of th 
 while the (^)uebec Resolutions were under consideration. 
 
 late ProNince, 
 
 
 Quebec Itcsolutmis. 
 
 "()4. In consideration of the transfer to tlio General Piirlianient of tlio powers of Taxation, 
 "an ainiiuil o-rant in aid of each Province sluill l)e made, eipial to eighty cents per head of 
 " the popnhition. as estabhshod bv the census of 18(11, the [mpidation of Newfoundljuid being 
 "estimated at 1:;(),(»L)0. Such aid shall bo in full .settleiueut of all future demaiid.s upon 
 "the CJenoral (iovurnmcnt for local purposes, and shall be paid half-yearly in advance to 
 " each l^roviuce : 
 
 " ()5. The position of Now Brunswick being such as to entail large inuuediate charges upon her 
 "local rcvennes, it is agreed that for the jicriod of ten years, from tlie time wlicn the Lnum 
 "takes etfcct, an additional allowance of ^(Ci.OtM) per annum .shall he made to that Province. 
 "But that so hmg as the lia1)iUty of that Province remains under .*7,OOI).000, a deduction 
 "equal to the interest on sueii deflciency shall be made from the !i;03,()UO." 
 
 lion. A. T. (hilCn SiHTch, Con. Dchalcs, puge GG. 
 
 " It must be evident that entering such a pai'tnership as is pi-oposed, some common 
 "basis must be arrived at on wdiich each Province must enter into the ('(Uife'leration. 
 "Taking all the engagements, present and future, of Nova Scotia and New Brunswick, it 
 "was found that rc/ulirch/ to their popuhitidn.i they amounted to about 8-'o l>er head, and 
 "this amount so applied to Canada would entitle us to enter the Union with a debt of 
 "102,500,000." 
 
 Hon. George Brown's Speech, Con. Dehates, page 9.'). 
 
 " But as any grant given from the common chest for local purposes to one Province 
 "must be extended to all on the basis of popiilati(m, it follows that for every S1,000 
 "given, A)r example, to New Brunswick, we nnist give ovi-r §1,300 to Nova Scotia, §-1,000 
 " to Lower Canada, and §0,000 to Upper Canada * * '' 
 
 " But it is said that in addition to her eighty cents per head under this arrangement. New 
 "Brunswick is to receive an extra grant 'from the federal chest of §03,000 annually for ten 
 "years * * * » . * ^* * * * 
 
 * 
 
10 
 
 I 
 
 "The IIoii.sc! is Jiwiin; that the Fodoral rJovormnont is to as^iiiiK? the dclits of tlic several 
 "Proviiicos ; cacli Province liciiit; entitled to throw npon it a debt of $25 per liead of its 
 "jiopulatidu. Sliould tlie del)t of any I'rovinee exceed $2-) ]ier head, it i.s to pay interest 
 "on the excess to the Fcch'ral 'Pivnsiiry, hut sliould it i'all heluw $2;") per Iiead, it is to I'e- 
 "ceivo interest from tlie Federal Treasury on the dilference between its actual debt and 
 " the debt to Avhieh it is entitled." 
 
 In this same coiinectidii it may not lie inappropriate to mention the fact that the re- 
 presentatiuu in the popular branch . if the legislature in all iVee cduiilries is based more <ir 
 less on the principle of po])ulati((n. Tn dbtaiu a ])racticable reco;;nition of this principle 
 was one of th(! causes which led to (.'nufederation: and in adjusting; the j'e])resei;tation in 
 the House of Commons this piinciiile is expressly iucor[)orate<l in the Qiu.'bec Kesohitioiis 
 and in the Ihitish Xoi'th America Act. 
 
 In further contirmation of the ju.stice of this principle 1 refer to the fact, that it has 
 on more than one occasion, in addition to what has already been stated, been recognized 
 and acted upon liy the Parliament of the Lite Province of Canada. A not.alih^ instance of 
 it will be found in tlie apportionment of the Conim<in School (Jrant to I'pper and Lower 
 Canada. That M-as always based on ]iopulatioii according to the last census. 
 
 It is, then'fore, dithcult to conceive \\hat reason or argument can be urged again.st 
 adopting the principle of population, according to the census of 1801, in th(^ apportion- 
 ment of the excess of debt between T'pper Canada and Lower Canada, and the division of 
 the assets belonging to them under The 15ritish North Ameiica, Act, conjointly, — especially 
 as it is so maiufestly just in itself — has been so generally recognized under sindlar circum- 
 stances by other nations — and was expressly acted u]iou in forming the Union of the 
 Briti.sh North American Provinces — and is now in explicit terms endiodied iai the Con- 
 stitutional Act. 
 
 If this principle be adopted, the a])portionment of the del)t and the division of the 
 assets, become simple and easy, and free from all complications. It would stand thus : — 
 As the population of Upper and Lower Canada is to that of each Province, so is the excess 
 of debt to that portion of it which each Province should 1)ear. The })roi»ortions would bo 
 stated as follows : — 
 
 Pop. of (J. 0. and L. C. 
 
 Ontario, •2,^)()'(fi~u : 
 Quebec, 2,507, (i.J7 : 
 
 l,:wr,,n91 : 
 
 1,1 11. 5 fit; : 
 
 Assinnod excess of debt. 
 
 $10,500,000 : 
 $10,500,000 : 
 
 And on precisely the same pianciple and for the same reasons would th(^ assets bo 
 divided. These a.s.sets for the .^alce of illustration are assumed at .$11,000,000. That is 
 about theii' nominal amount. It would, therefore, follow that as the population of U^pper 
 and Lower Canada is to the population of each Province, so is the total assets to that por- 
 tion to which each is entitleil. The results of which would be to leav(! each Pro\-ince in 
 possession of the assets located in each Province. In the ai)]ilication of this principle to 
 the division of assets, the tiual results may, and no doubt should be modilied in considera- 
 tion of the peculiar circumstances uuiler which .some of the assets had tlieir origin, and in 
 the further consideration of their intrinsic value. 
 
 i 
 
 'I 
 
 3. Cajntalizalion of Asste.ts. 
 
 At a meeting of the Arbitrators held on the 2'id <lay of September, 1809, Judges Day 
 .stated that it Avas desirabk^ that a valuation of tlie assets to be divi(h'd should take place, 
 with a view, as it luay reasonal)ly be suppiosed, to their division according to value : and 
 he proposed that the Treasurers of the respective Provinces should be tlie valuators. T 
 objected to this, on the ground that the Treasurers would be most unlikely to agree 
 on such valuation, and suggested that as the annual income was tlu^ best ci'iterion by 
 which to judge the value of any property, the Auditor should bo ordered to make up, for 
 the use of the Arbitrators, a statennnit shewing the annual revenue or proceeds derived 
 from the assets for four and adialf years pru)r to Confederation, and the average annual 
 per centage of the proceeds of each asset for that ])eriod. To this i)roposition the Trea- 
 surers of both Provinces assented. The arbitrators, thereupon, oi'ilered tlu; statement to 
 
 I 
 
 • 
 
n 
 
 /I 
 
 be niadc up \>x the Auilitfir, iiiul it w;i.s accordingly done, and Inid lict'orc tlic Arl.itnitois. 
 It is submitted that thu value of the assets thus ascertained, is the l)est tiiat can^bo 
 obtained, and shows correctly the value of the assets in the hands of the respective Pro- 
 vinces. It may be ui'^^ed in respect of sonu' of the^ assets, as for example, the Municipal 
 Loan FiMid I '/(.'. and' L. C, the (,)u(^he<' Fiic Loan and some utli-r assets, a |j,Teater annual 
 sum mij,dit 1)0 derived from them iiy using coercive measures, than Avas derived for the 
 four ami a-half years next preceding Confeiieration, or than was annually ilerived from 
 them from tlie (".rigiii of the assets down to Confederation^-the average for tiie entire 
 latter period Iteing about the sanu! as the average for the former period of foui' and one- 
 half years. But i think it fair to assume that tlie same causes, he they h>cal, political or 
 otherwise, wliich ju'evented a larger annual income to lie derived from these assets thiai 
 that shown on th<^ average of four and a-half years prior to Confederation, and whicli 
 sinc(> ('ontederati(Ui have rather dinnnisluid than iiu'reased this income, will continue to 
 opera,te in such a way as to prechuh; any well founded expectation that these assets under 
 Provincial management will produce any greater ainuial income than has heretofore, been 
 dei'ived f:-om them, lie this as it may.'tlns mode of valuation, taking the period (if four 
 and adialf years, was deliberately assented to by the Treasurer., of the ivspectiv(^ Pro- 
 vinces, and as (lelil)erately ordered by th.^ Arbitrators ; and, therefore, it is not competent, 
 I thiidi, now for either the Treasurei's or the Arbitrators to (juestion its coiivctness. 
 
 The following is lh(> Statement of Assets of OntJirio ('a]>italized at (! per cent, on tin; 
 average per centage of four and one-half yeais next preceding Confedei'ation ; 
 
 ONTARIO. 
 
 , V , 
 
 t 
 
 ASSETS. 
 
 TJ. ( '. r>nil(lin,i,' Fund 
 Law Society, U. ('.... 
 
 Consolidated Municipal Loan Fund, IT. C- ■ 
 
 Vi-incipal S4,r,.-.l,8;)r) 98 
 
 Interest I'.tOlvKlil a.) 
 
 An'ount. 
 
 Ajiricultur.ll Society, IT. 0. (This is put down as yield- 
 ing,' notliin,!,', yet it is a Kood asset for the amount, 
 tlie Society beiuf,' able to pay) 
 
 Revenue Inspectors, U. C 
 
 $ .'10.800 
 150,015 
 
 0,81S,:i02 
 
 Average rate 
 
 percent. 
 for 4.', years. ; 
 
 V,alue capitalised 
 at <i per cent. 
 
 00 
 01 
 
 .r. 
 
 4,000 1 00 
 2,42ti I 41 
 
 7,017,004 
 
 ;15 
 
 § 00 ? ;io,soo I 00 
 
 7.14 1 130,015 i 01 
 
 1.09 I 
 
 1,920,.505 ;« 
 
 4,000 I 00 
 2,117,320 I yj 
 
r 
 
 12 
 
 QUEBEC. 
 
 ASSETS. 
 
 Aylitior ('(n\rt ITuuko Dcbi'iitunt .\cci)iiiit, (1 per cent., 
 AvliiitT Court lloiist', Accmuit I'unviit 
 
 iP^^'"''''"™'« i Value eai.italiHcd 
 
 A 1. percent. 
 
 Amount. || ' 
 
 1 1 for 4. i years. 
 
 1 
 
 1 
 
 at per cent. 
 
 Montreal ('ourt House— 
 
 l)elH.-iituie.\eeount S!t.".,(IOO CO 
 
 Account Current IH.U'.IO 21 
 
 Kamouraska ("ourt Housi; Account Current, S201.01. 
 'I'liere are iJ.S.Koo, 8 jier cent. I'cbentures, forniin;,' a 
 lirst elinrj,'e on the inconie. 'I'en per cent, would 
 jiiiy tlie interest on the I )(lieiitures, .-ind leave ample 
 to wipe out the Account Current, 1?1.'U1 VI 
 
 Consolidated IMunieip.al l/o.an Fund, L. C.-- 
 
 I'rineipal .<!2,l.-)n,C.87 M 
 
 Interest 787,742 83 
 
 i 
 
 Superior Education, L. C. — 
 
 I,e-islative ('.rant 9 2S..lit-l 7:5 
 
 Iialanee of drtieit in Education Office ... 2!t0 10 
 
 Income Fund 2;>4,2."Sl 4U 
 
 Quebec Fire Lo.an 
 
 Ijuildini; and ,lury Fund, L. C 
 
 Municiiial Loan Kund. \,. C 
 
 l{e<,'istration Servi^'es, ], C 
 
 'J'emisecmata ild vance Account 
 
 2,000 
 1,239 
 
 114,590 
 
 201 
 
 2,939,429 
 
 00 
 70 
 
 21 
 
 91 
 
 97 
 
 t:,42 
 
 203,000 I 29 
 
 204,2.54 I O.') 
 
 110.47.5 i 51 
 
 481.244 I 33 
 
 2,524 ; .38 
 
 3,000 j 00 
 
 4,191,032 95 
 
 2,88 
 
 14,30 
 
 1,98 
 11,. 58 I 
 1,14 
 ,910,00 
 
 114,596 
 
 201 
 
 1,410,920 
 
 21 
 
 91 
 
 38 
 
 203,000 29 
 
 87,204 i 03 
 
 110,475 I 51 
 
 92,000 I 42 
 
 2,524 38 
 
 2.087,001 
 
 13 
 
 Upper Ciuia.la A.ss('ts 157,01 7,001 3.") valuwl at $L>.ll7.;i20 9U 
 Lower ('aiia(laA.ssets 4:,191,03l> Or) vahinl at 2,Ot*7,OOl l;i 
 
 Total a.sH.its U. C. and L. C, $11,208,037 30 Total value $4,204,322 12 
 
 Now it i.s quite clear that if the delit is to ))e divided aecordiug to the value of the 
 asscts whieh arc in eaeli Province, it will be stated thus ; As the total value of assets 
 (84,204.332 12) is to the value of the assets in each Provin.e (Ontario 82,117.320 99 and 
 Quebec 82,(».S7,322 12) so is the excess of debt (8lO,.5()().(i(iii) to that ]iortion of it which 
 each Province should bear ; and it is e(|ually clear on the .same juinciple that the assets 
 Avhich shoidil be oi\-en to e;i(di Province would be — as tiie total excess of delit is to that 
 jiortioii of it which would l)y the forej.;()ino,- proportion fall on each Province, so is the 
 total assets to that portion of them which wotdd belong to each Province. In short, the 
 first proportion gives the debt to be borne by each Pro\ince, and the second proportion, 
 the converse of the first, gives the assets which should belong to each Province. The two 
 proportions may be stated as hjllows : 
 
 4,204,332 13 : 2,117,320 99 : : 10,r)00,000 : Ontario debt. 
 
 4,204,332 12 : 2,087.001 13 : ; 10,r.(J(M)00 : Quebec debt. 
 ]0,.500.000 ; Ontario debt : ; 4,204,332 12: Ontario assets. 
 10,;500,000 : Quebec debt : : 4,204,332 12 : Quebec a.sscts. 
 
 By this mode of dividing the excess of ile])t and the assets, predicated as it is on tlie 
 
 'I 
 
 ^ 
 
13 
 
 4 
 
 real value nf tlic assets aft fixed liy the average annual per eentage for four and a 
 half years prior to Couredcratiou, or tor any Ion;,'er period prior thenlo- (for as iwis Itcen 
 ol)serv(!d if tlie annual average per eentage for the wlioli; of the existence of ,'aeh asset bo 
 taken, instead of four aiul a half yeais, the result will be substantially t'le same) all 
 (piestions and disputes as to wlietlier one asset is good or bail, or wortii uioi'e or less than 
 another, an' avoided. One I'rovinee niiuiit say, '" tiue we ilid expend so much on local 
 "ol)jects in our Province but the investment has proved unreiuunerati\e, and tiie asset is 
 "unproductive, ami, h(jwever valuable it nuiy be as a jadtlie work to the whole I'rovince, 
 "as a source of reveiuie it is worth nothing, ami it should in the division of the exce.-s of 
 "dibt and the asset.-: be put ilowu at less than its nominal \alue or at inl." The ])rinciplo 
 of capitalizing the assets, that is, arriving at their real value in the way agreed upon by 
 the Treasurers, and then capitalizing the average animal per centage, entirely renH)ves all 
 such objections : ami as it sulistaiitially agrees with the other two modes of division, 
 namely, " Origin of local debt," and " ro;iulatioii,'' it is e(|ually fortilied by every argii- 
 ineiit and cou.Nideration wiiieh has bi'eii adduced in su])povt of a division on the principle 
 of the " Origin of local debt," and the principle of " Population." 
 
 The consideration of the three' modes suggested, substantially lead to the same con- 
 clusions. Neither is hostile to or o[)posed to the other. J'lacii .starting fiom indepemleiit 
 first principles, produces sulistantially the .same results as the other. The li,i-is upon 
 ■which each is predicated, cannot be shaken ; for it is founded on trutii and justie<' ; and 
 the argument and reasons wiuch may be adduced in sup[>ort of each, are eipially ap[)liciilile 
 to all, and are unanswerable and conclusive. 
 
 Quebec objects to any and all of the tiiree modes suggested, but has really ollered no 
 argument agaiiLst any of them, unless an argument can be gleaned from the fullowiug 
 quotation from the 
 
 "Mk.MORANDU.M .'^niMITTED ON BKHALF 01' TlIK PkOVIXOF- OF QUKBEC," BY IT.S 
 
 Counsel, Mi'.sshs. ('.v.^.vu[;r .wd IvItciiii;. 
 
 " // Division (if the Surplus Debt. 
 
 "One of the most important fa.sks which the Ai'bitrators will have to ])erform is to 
 " divider the surplus debt of the latc^ I'rovince of Canada between Ontario and (|)nebec. 
 "The ll'ith .section of the Confederation Act makes Ontario and Quebec conjointly liable 
 "t(« Cauad.'i for the amount liy which the delit of tlu'. Province of Canada exceeds at tlie 
 " Union .Si):.',r)()0,()()() ; thesis Provinces being chargeable with interest at 5 per cent, per 
 "annum upon such surplus deiit. 
 
 "This debt is to be a])])ortioiied by the Arbitrators between Ontario and Quebec. 
 
 " It has been suggesteil, that this di\ision should be according to the ])opulatio!i of 
 "each, as it stood either when the Confedeiatiou took place, oi' at the la.-t census in ISGI, 
 "or according to the origin of the debt. 
 
 " 1. To take the population whether that of ISO] or that of ISfi?, as a guide, with- 
 " out taking into account the respective tiuancial positions of the parties when lirst united 
 "in 181 1, or enquiring in whose interest and in what pro[)ortioii tor each the subseipicnt 
 " indebtednc^ss was incurred, would be most unjust. It might free from its just projjort- 
 "tion of the debt the jiarty which had profited the most liy it, and cliarge it to the one 
 "which had the least interest in its being incurred, or which derived tVoin it the sinallesD 
 "benefit. The injustice of this metliod will be nuule apjiareut by reference to a tc'w facts 
 " and figures taken fr(jm the public returns. 
 
 " The deU of Upper Canada on the \Oth Fehrvari/, 1841, ivas — ■ 
 
 '' 1. Debentures (as per Appendix No. 3, Vol. G, 1817, K.K.K.,) cy., £1,308,855, 9 10 
 
 " Equivalent to $ri;r.<j,j,42 1 97 
 
 "2. Floating debt, being balance of expcuditun^ over receipts, from 18:31 
 
 "to 1841, (same Appendix) 330,357 57 
 
 " Making together $5,U25,77'J 54 
 
14 
 
 '' iKhl of Liuci.r Cdiuiila, HUli Filinuty>/, ISH — 
 
 "I. Drlpi'iitiitcs, (■ainc A|i|M'iiili.\) £9t),7liS 1 7 
 
 "Less Mdiiti'i'al IImiIioiiI' (tlic ilclit due liy llic s;mio 
 "not liciiij; cliiirxfil ii.^aiiisl Onturio and (,|ncl)i'c in 
 "tlic stutcnicnt oC all'iiirs, mi llic ^^roiind lliaf it is 
 "uiily a cnntini^'i'iit lialiilily, and that llic t'nnd 
 "always paid it.> intfiv^t) .'. £.^1.'1!)!> 1 7 
 
 £U),'2VJ (t 
 
 '•I';(|nal to 8 W,W(] 00 
 
 "lint liOWtT Canada iiad at its cndit. Iicint; cxcc-js 
 "of receipts over cxjicnditinTs, f'nnii 171)1 to i.'^H) 
 
 "app.nilix K.K.K., of 1SJ7 8 •J')0.;'.n2 41 
 
 "From whi.Ji .Icduftin^ iil'ovi' di'I.t <i(i,U!l(; OO 
 
 " It is found tliat instead of liaving anv di'l)t, it liad 
 
 "then at itscM:<ni;ind '......" 8 lHl\;;o(; -1 1 
 
 "Slrilviiu; out tliis amount is (■(jui\alcnt to its addition to the drht of 
 
 "UpiKT Canada $ |Si),3O0 41 
 
 "Wliicli would tlicn stand at $(3,110,085 95 
 
 "I'akin,^- the jiojiulation of caili at tliat dati', r|i|ici' Canada, (st'c 
 "CViiMis 1S41, Vol. I, |). xvii..) Mas t05,;{77, and Lower Canada, 
 "niakin,^;- it as ncai' as antciior and sidisctjucnt census jieiinit, to wit: 
 "census ol' IS.'U and IStl.tlieic lieiuLi,' none foi' tliat i'rovinee in 
 "1(^41.) was (3();\:?58,- -ii establislies that, fu be on an e(|Ual footing 
 "aecordiiui,- to ]io]inlatioii. f,ower Canada should have entered the 
 "Uninn with a delit of 6'^,715,03O (30 
 
 "]\Iust not such disju'oportion lie taken int(» account in the division of the debts, 
 "credits, proiiei'ties and assets ; and the more .sinrf' it existed at a time, when imin'ove- 
 " nients of all kinds were so inucli ncedeil. and money ex|K'ndtd in I'oads and oth<'i' pidilic 
 '■ works, would, no doulit, have niv<'n to Lower as it did to I'pjier Canada, an impetus 
 "which woidd have tiiiven an inuneiise au;,;mentation of |)opulalion, resources and wealtlrj 
 
 •' 2. The olhe'' mode snirgested, if its a(h)ption was jiossihle. would he more, consonant 
 " v.ith the re(|uiicn!ents of justice. l>ut to he so, recourse nnist he had to ihi; true and 
 " I'cal orii;in of the deht, not to that which is the work of mere fancy. It would re(|nirc 
 "to go haek to tjie L'lnon of the two Canadas, t.ake their res])ective deht.s and credits at 
 "that time, e.xamiiie in detail all the expenses incuriHwl since, note specially the Province 
 "for winch oi' in whose interest it was in<aured, and determine therehv the share of each. 
 "Such a work would not only entail an amount of lahmir, and a consideration of circnm- 
 " stances which the arbitrators are not. exjiected to nn<lertake, but would also recjuire a 
 " minute examination of all the administrative acts of the diil'ereiit goverinnent.s since 
 " I'S H, and an acrurate a]ipreciation of the same. In i'act the adoption of this mode is 
 " iminacticable. 
 
 '• To take the assets as a guith; would be most fallacious, and the more so if only a 
 "part of them weic taken into consideration. It has often occurred that very im])ortant 
 "and advantageous outlays for the 2>art of the Province in ■which it was made, was tho 
 '•ino.st unpioductive to the Treasury. For instance, the roads in Upper Canachi, cm which 
 " vciy large sums of money were cxpeiuled, which tended as much if not more than any 
 "other ex])enditurt! to o))en up and coloni.se Ontario and thereby create its wealth; Gov- 
 "ernnient neverthele.-,s felt it its inteicst to suirendei for a nominal consideration to 
 " private companies or to the several municipalities Avithin which they lie. The assets aro 
 "silent on that head. Again the amount .set down as the value of public works retained 
 "by the Dominion may be fairly contested as between Ontario and Quebec. To the 
 "Dominion they are worth their present value; l)Ut in determining tln^ origin of tho debt, 
 ■' it is not tlieir present value but tlieii- original cost which should be considered. 
 
 i 
 
 ■I 
 
 I 
 
 •1 
 
la 
 
 
 ) 
 
 i 
 
 '•:<. Tlic i.l;iiiicst, I'ii-icst, imtl it iiiMV 111' saiil llif only jii-t ami inacticalilc way of 
 "8cttliii;i;' 111'' (|iifstioii, is to ticiit the caisc as otii- of <.nrniary iiarliin,>lii|i, iv.A apiiiy tlio 
 "rules wiiirh ^osfrn the iiartitioii of ]iailiH'rslii|) cstalrs, nilfs wliicli uiv I he same m iIks 
 "old lloiiiaii.'aiiti ill tiic inodcni Kn,:;lisli anil ImvikIi law. 
 
 '• Adopt iii.'j; this priiuiiilc, tlir arliitratois would tirat tlic Union of the two Caiiadas, 
 "from JtSll til l.^i!7, us liavin,!; lirrii ciiiially advaiita;:i'ous to liotli, or, in otlirr words, us 
 "if cjicli liail d. riwil tlir sanio liciu'tit from' it. Coiisidcriiij; that l.owcr Canada, wliidi 
 "rami' into the I'liion in 1811 with a lar;;r sum at its . irdit, and a |iojiiilatioii al.out oiio- 
 " half lar,!j;rr than that of I'luicr Canada, left in lS(i7 witli (;oni|iarativrly limited resouives, 
 "and that !ilthoii,!,di tapper Canada entered it with an exhausted Treasury and a ..mall 
 "population, it left with a niueli lurL,'er number of inhalutants, an aiinuul subsidy whieh 
 " e.xeeeds by Sii-'w.O-'O, reiiieseiitiiii,'' u eajiital of S;$,i»G(>,n.5;5.;M, that of its sister I'roviiiee, 
 "and .i^reat wealth, it Y>ill lie adinitted that this hypothesis is not partial to (^Jiiebec. It 
 "will however do away with what has lieeii shown aliove to lie impraetieable the niinutu 
 "in.'ipeetion ami appreciation of all tiie aeeounts of the Province of ('aiiada during tlio 
 "tweutv-six years of its e.xisteiic and will leave only the coii.-<iileiation of the linancial 
 "position of Vpper and Lower Canada, when they became united, and the debts, credits,^ 
 "properties or as,set.s, the ]iattiliou of which is rendered neces.siry by the dissolution of 
 
 "their partner, hi]). 
 
 " Accordiii;' to this methud of division, each Trovince ought Hist to as.sume the excess 
 "of debt, a.sunreiiual to its own delit. when it eiitereil the Cniou in 1811. and the bal- 
 "ancu ought to be eiiually divided. 
 
 "Wiiatever may be urged against this mode, it is nevertheless the only just and 
 "reliable one. It has this advantage over all other modes, that being the rulo which 
 ""overns the relations of man with man in similar ])osilinns, it cannot give ri.se to grounds 
 "of complaint nor to suspicions of favor, unfairness or injustice. 
 
 '•Assuming it to be. impossible, as above demonstrated, to ignore the relative linancial 
 "jio.sitions of tile two Provinces in 18-11, even if population were taken as a basis for the 
 "divi.sion of the surplus delit. the following coiici.se statements will prove that the adop 
 "tioii of this arbitrary rule, namely, population, would free (.^u 'bee from a larger amount 
 " of the debt. 
 
 ''Debt of Upper dmcuhi in 1841, {aft (dmrv dated)— 
 
 " 1. Debentures $5,n!)n,.121 !»7 
 
 ":2. Floating Debt :i:;(),3.)7 57 
 
 .$o,'.)2."),779 .'>4 
 '■' J)(:hl iif Liwrr Canada in 18-11 — 
 
 "1. Credit $250,:in2 41 
 
 " Less Debemures '^<',y'"' ^'<> 
 
 $18!),;]0G 41 189,.'506 41 
 
 "Strikiu"- it off, makes as already stated, debt of Upper i'auada, 
 
 "equivalMitto : 80,110,085 1)5 
 
 '•Surplus debt payable by Ontario and (^)iiebec, on terms agreed upon 
 
 "at the Montrear Conference 10,424.85:5 87 
 
 " DocUict for Upper Canada its debt in IS tl G, 1 15,085 85 
 
 Balance .S4,:un),7G7 '.)2 
 
 "Divided equally, it gives each Province $2,L")4,883 96 
 
 " Accoiding to poinilation in 18(il. 186*. 
 
 " It gives Ontario $2,399,:}82 48 $2,522,050 89 
 
 "Quebec 1,910,;^85 44 1,797,117 03 
 
 $4,309,707 92 $4,309,707 92 
 
16 
 
 " Sii lliat by tlic IiumIc sii<;j,'i'stc(l, ()iit:iiii) wmild, (m llic siiiiilits of ilrlil, lie clijir-.id 
 "witli i?:iU,li)H nu. Icsslliiin ncconliiif,' to its jMipuhilioii in 1801, ami with .i?.'5.J7,7(!t; 1)3 
 "IfHs tliiiii its sliaif liy its |niiiiiiati(>ii in lS(i7." 
 
 It is not |iii>|)iT to lie (lisi'nnitcoiis in (IcaJiMj^ witli so grave a ((ncstion as tiiat nniicr 
 consich'nitioii, and yet I can Hcarrcly t'oilicar ifinarkinj; tlnit it is ditlitiilt to ronccivn how 
 any sane I'lan couM sciioiisly iii'oposc so alisnnl a proposition as is containi'il in thi- t'oro- 
 goiii.ir c.vtiiu't. Aside fidin tiic inaecniaey ot'tlie liifnics, it proposes to taice tiie del)ts of 
 I'pper ( 'aiiada and Lower Canada at the I'nion on the joth Keinnary, IS |i, or rather the 
 <lclit of I pper Canada, and an allej,'ed halanee in the Kxelieijuer ol' Lower Canada, adiled 
 to tile aile,i,'ed ih'itt of ri>|)er Canada, and, while i^^'norin;^ [\\v priiiciph' of popidalion, in- 
 ert asini; it in the ratio hy wliicii tlie pupnhition in Lower Canaila at tliat time I'xceedud 
 the popuhition in I'pper Canada, ami tlicn, 'eai)inj,' over a period of twenty six years, 
 (from Kitii Fehruary, ISll. to 1st July, 1HG7), u; 'jhargo directly this allei,'e(l amount of 
 (h'lit (8S,7 iri.CiaO (!()) to I'pper Canada, in rlie apportionment of tiie excess of delit over 
 fi?<)2.">itli,lM)(», and then, while all the tim.! ignoriiiL;- tlie ))riMeipK' of popnlatioii, actual!;' 
 ]iro|iosin,i? to divide the halanee ol' the .'xcoss of deht, after deductinjj;' tiie allci^ed deht of 
 I'pper Canada, accordin;,' to populatioi. ; oven .siiygesting that the population should not 
 l)e takvMi ac( <udin,i^' to the census of ISlH, on which Conh'deratioii was hased, hut tlie sup- 
 posed jiopulatiou of I.'s(i7 1 ami this is said to he hased on the principle of u ^^encral pai't- 
 nership, as detineil hy the Koinau Lawairl the Common Law of Ln^land ! If it were not 
 urged with an apparent seriousness, and if the interests invidveil were not so momentous, 
 1 would content nnseif with simply stating this most extraordinary proposition without 
 saying one word in reply to it. ('an it I c possilile that any one can seriously argue that 
 the arl>itrat(U's are to simply taUe into consiileration tin- debt of Upper Canada at the 
 thiiou as proposed, without and reference to the assets of the two Provinces, aiMl then 
 pass over the intei'veniug period of the Union, continue this debt for all that time, an<l at 
 the scpai'ation of the I'ion ini cs liy Confederation in lf<('>7, re\'ive this debt as igaii'.st 
 I'ppci' Canada, although all or nearly all of it was long prior to Conh'deration, paid and 
 dischai'ged, and charge it to Ontario in tiie ilivision of the excess of diibt of the late Pro- 
 vince of Canada over 8(i2, ')()(), 000 ! ami this is attemjited to be justified on the principle 
 of a general partnership ' This would be. I must confess a most extraoidinai'y partner- 
 ship, — a partiieisiiip at th ■ beginning and at the end, but not durinri Ihe c.ri.-tnicc of (he 
 partnership. Why did not the Counsel projiose to charge interest on the debt of Tipper 
 Canada with annual rests for twenty-six years ? if it is pro[)er to charge the princip d it 
 is e(|iially proper to charge the interest. In this w.ay instead of making it !i?r), 01)0,000, 
 they would make it !i?i'0,ooo,000 ! They have just as much right to make it tlu^ latter 
 sum as tiie former. If any thing were needed to show tlm utter absurdity of the proposi- 
 tion it is this following out the projiosition to its logical seipience. The figures in the 
 fiuegoiiig ({notation are eiitircdy wrong. The source from wliicli tliey profe.ss to be di>rived, 
 has the sanction of no authority, and is not only unreliable but j)ositiveIy erroneous. Tho 
 only reliaiile source; whence any figures relating to the debts and assets of Upper Canada 
 and liower Canada can be derived is the Public Accounts, .as they appear in the annual 
 jirinted rejKU-ls of the Minister of Finance, and as they stand in the I'rovincial hooks in 
 the i'iuance Department. Xo compilation of Committees can sujiercede these. Taking 
 the Public Accounts then for a guide, the debt of Upper Canada in 1841 was not 
 $r),92r).771) ril, but it was only S">, 11 (1,8,1,") 70. Instead of Lower Canada, after deduct- 
 ing its debt having at its credit !?18;j,;50ti 41, it had a delit of ^488, .'JO',) 8;} over all 
 credits; and if from this is deducted the Montreal Harbour Debentures of ,£81,401) : 4: 7, 
 it would still .stand at SI ClJ,. "572 92. h\ short, there is scai'cely a correct figure in the 
 wlude statement. To show wdiat was the ;ictua,l state of the debt of each Province and 
 the assets. ])rov'ncial in their character, brought into the Union on the 10th February, 
 1841,1 subjoin the following statenu'ut from the Public Accounts, verified by tho Pro- 
 vincial books in the Finance Department : 
 
 
If 
 
 , 
 
 t 
 
17 
 
 Dkist OK TiiK l'i!i»viNf!KS at tliK Cfiiitii, l"'«'l»rwiiry MMli, ISU. 
 
 An |M-r 'I'lilili'-i It) I'liMlr Ar(:nniit.< , 
 
 I.KMH 'I'll I'lTclit, IW |Pir I'ollHulidiitcd Kuilil rtt«tclll''llt, liill. 
 
 Aild to liilit, iH pi T (1m do . 
 
 AiM nhii fnr sMiiH ri'nliti'il iilii)\i^ wliicli (.■niilil nut ln! inUfcU'il.. 
 
 Lr.ss Mniitri'iil Ifai'lidui' I)cl)i'iitun'» 
 
 rppiT CaiiiiiliV. 
 
 l.iiwiT < 'aniula 
 
 l,:uti,(i;);{ 
 l.JU.'i.r.f* 
 
 «,(itl!t 
 
 
 H. 
 
 1 
 .1. 
 
 « 
 
 r. 
 
 r, 
 
 74 
 
 1!) 
 
 
 IM 
 
 K 
 
 H. 
 
 I'jii.c.;.") 
 
 (1 
 
 .■I(!,5;i0 
 
 14 
 
 H7.IM 
 
 .•|0,H57 
 
 5,41(1,855 
 
 5,41(1,855 
 
 70 
 
 70 
 
 llH,(X)'-» 
 4,0!KI 
 
 18 
 
 <l 
 U 
 5 
 
 T 
 1 
 
 488,;i(i'.t 
 
 ;j'25,!l!Hi 
 
 ltJ2,:)72 
 
 ;» I 8 
 
 5 tf 
 2 
 
 'ji 
 
 <ja 
 
 f I 
 
 SciIinui.K 111' Assr.TS wliicli at the I'liinii l)ic;uii( " I'jKvincial." 
 
 Willand ( 'iiiml 8 
 
 l')UiliiL„'t.iPii I5.ay (.'niml 
 
 St. I,.'1\V1V11(!<.! (In 
 
 Itiili'aii do 
 
 l,:K:liiiio do ■ 
 
 St. Ann's T.iicks 
 
 'Kic'lnlicn and Laki' Chanii'lain Xavi!,'ati(pn 
 
 Lat'liinr, ('otcaii and (V'clar Kaiiid.s 
 
 .Iii'^dit lliiusot<, I'.i'ac'iiH and lluoys 
 
 Slidiis and Booms on tlu^ 'I'lont 
 
 Do Nt'WiaHtli' iJistrict 
 
 Kingston roiiitintiaiy 
 
 I'aid hy 
 I'lipur Canuda. 
 
 Off— Lower ( 'anada A.ssetrf. 
 
 Debt of Upjier Canada at the Union. 
 Less -E.xcc.s.s of Assotn 
 
 Deduct Debt of Lower Canada at the Union. 
 
 Leavinc; I)i;I)t of I'piier ('anada at § 
 
 And Lower Caiwda nil. 
 
 liE.ss - Insurrection losse.s included in the I)el)t of U. C., 'M .stated 
 above, deljentures for which were is.sued under H Vie., cap. 72, 
 aiid were paid out of Upper Canada Tavern Ijieun.su.s, t'4(),000. 
 
 Deduct— Not having been incurred £117,800 cy. , Welland Canal 
 
 Leavini? total Debt of Upper ('anada 
 And that of Lower Canada nil ... 
 
 i,tn,iL'7 
 
 lLM,:ui; 
 
 1,107,111 
 
 .■i,(i;io 
 
 <w,.';.'iO 
 i,!,;t-'o 
 
 17(1,71)5 
 
 I'aid l)y 
 Lower ( 'aiiadi. 
 
 ctH. I 
 
 77 li 
 (W 1 1 
 
 4a 
 
 i ;!5 
 
 51 I 
 (J7 I 
 00 
 01 
 
 9 
 
 100,000 
 
 :<,:jo!i,.'MO 
 i,;i(;i,i;« 
 
 82 
 32 
 
 l,!»t8,210 50 
 
 ntfl. 
 00 
 
 ;!i».s,ioi 1.) 
 
 l!l,8i;0 02 
 
 322,411 hH 
 
 48,-l()5 I s;' 
 
 'i7i'/>": I ii 
 
 i,:ii;i,i:i(; 
 
 5,-ll(vH."J5 
 1.!MS,210 
 
 70 
 50 
 
 3,4ti8,(i45 
 l(i2,372 
 
 20 
 'J2 
 
 3,;50G,272 
 1(;0,0()0 
 
 28 
 
 00 
 
 3,140,272 
 471, '200 
 
 2,075,072 
 
 28 
 00 
 
 28 
 
 32 
 
 By the above statement it appears that the $5,925,770.54 debt of Upper Canada 
 
 
IS 
 
 (Iwindlcs down to i?2,r)7r).(l7U.2S, and tho Itoastcd surplus of Lower Caiiada of i?lS!).30f;.41 
 disaiijH'ais alto^^'cllicr. I'ut I contci'd it is useless to discuss so al)surd a jirojiosition as to 
 treat tlu! matters uniler eonsidcratiou ill tlie tnaimer j)i'o))osed, on the spc, ions jireteiuT 
 that to do so wouKl l>e in accoi'dance wilii the piincipk's of a ^'eiieral i)artnershi[) ; l)ut if 
 it is to lie done, the principle imist run through tlie w1k)1o course of receipts and expendi- 
 tures from the licLrinuiufr of the Union to the end of it ; in which case we sliall not pro- 
 ceed far in tiie investigation l)ei'ore the balance will Tiot only not lie against Ontaiio, Imt 
 largely, very largely, against (j>uebee. The (piestion then may be asked, why oliject to 
 the proposed method of dealing with the excess of debt and the assets to be divided in 
 the llritish Nortli America Act? 1 answer because it will be the occasion of the develop- 
 ment of a state >>{' things which would jiiuve anything but satisfactory to the I'rovince of 
 t^uebec, and might give rise to discontent at the present state of things in the most im- 
 portant ])ortioii of the Domiinon, and might produce results which (Quebec might find 
 itself unable to accede to. My object is to arrive at some metluMl which Mill lie practicabli', 
 and at the same time founded on sound princi[>les which will recommend themselves to 
 the judgment of the people in both Provinces. If the principle of a general [lartnersliip 
 is to be adopted, it nmst be taken at its full measure and in its full legal and proper 
 length and bn'adth ; not at the beginning ami end of tlw jiartnership concern, with a dis- 
 criTuination as to the capital, as ]iroposed by (^hiebec, but the I'rovinces nmst be consideicd 
 as liaving started as ei(uals in all lespccts at tlie beginning, and be treated as e((uals dur- 
 ing its continuance, and at its end and in its winding up. It cannot be taken in any 
 modified form. Kveii the ('ouiiscl for (,>uebec are obliged to admit that there is iio war- 
 rant for the departure from the princi[iles of a general [lartuershiji, which they projiose by 
 attempting to drag in the ((uestion, "who put in the greater or the smaller capital, and 
 "who.se as.sets or reveiuu's were free from or had charges in the shape of dclits incumber- 
 " ing them at tlif lieginning ;" and then at the end or dissolutinii of the jiartnership. to 
 attempt to charge tlu' one party or the oth"v with a greater or less portion than half the 
 debts, or to give to one party or the other more or less than half the a.ssets — the princi)»le 
 being too Avell inidi'rstood that in every partnersiiip where the contrary is not expressly 
 stipidated. each ])artner mu.st lie presumed to have bniight in e(|ual capital, and at the 
 end of the partnership must share equally in the profits and losses, and in all the ]iartner- 
 ship property and assets. Th(^ only reason given for the course ])roposed is th;it it is in- 
 convenient to do otherwi.se. Hut the (picstion arises, cm what authority can the jirinciple 
 of a general ]iartner.sliip be adopted and acted upon, and yet ,.^0 i.ito any and least of all a 
 partial consideration of what each jiaitner brought into the common concern, in the aj)- 
 portionment of profits and losses — that is— assets and excess of del)t at tlie di.s.solution I 
 Such a mode of dealing with the a.ssets and liabilities of a general partnership is without 
 any authority whati'ver. Tt has not one single ciiaracteristic of a general partneiship. 
 The name of partnersiiip is used l)y the Counsel, but that is all. In the case of the I'ru- 
 vinces, if it had Ih'cu .specially agreed that the Provinces should be united — that the 
 revenues of each should be mcrge(l — and that at tlie dissolution each should lie charged or 
 ci'cdited with the di'bt each owed, or credited ^ith the money each liad at the union, and 
 that all revenue and expenditure during the union should lie considered ('([ually advan- 
 t'lgeous to both, — (the very contrary of all which is exjiressly or impliedly declared in the 
 Utiion Act of 1840), one could understand the jmiposition of the Counsel fe-r Quebec. 
 This, if in the nature of a partnership at all, would be one founth'd on a coiitracL contain- 
 ing ihe most specific terms. l>ut no such contract is pretended. The entire projiosal is 
 wholly arbitrary. It has not (Hie solitary feature of any partner.'hip whatever to sustain 
 it ; and yet it is put forth umler the specious pretence and delusiv(> guise that it is founded 
 on the jirinciples of a partnership entered into by two parties without any stii-ulation f"^ 
 t() capital, profits or hisse.s — which is called by the Coun,sel a general partnership, having 
 neither the sanction nor the authority of the lioman, French or Knglish law. It may be 
 as well to \inderstand what is the proper meaning of a general partnership : 
 
 "(leneral partnerships are properly such when the parties carrying on all their 
 " trade and Inisiness, whatever it may be, for the joint Vienetit and profit of all 
 "tile parties concerned, whether the caiiital stock be limited or not, or the con- 
 "tributions thereto be etiual or unequal." — Story on Partnership, sec. 74. 
 
 i) 
 
If) 
 
 Sucli ;i [laitiiciship witlidut ;iii express contract to tlie cuiitravy would entitle oivch 
 partiiei' to sliare e(pially in the profits, and snbject liim to l)ear equally the losses. Xow 
 as 1 have already said, it is not ])retended in the case of the Provinces there was any 
 stipulations as to the feriinf mui rvmVitious of ]tartnershi|) contended for. What then if a 
 j^eneral partneishiji l)e cfjnceded, ■would on authority be its necessary incidents ? Story 
 in his work on I'artnership, Sec.-;. '1\ \^ L'r», ,says : — 
 
 " In the absence however of all precise .stipidations between the ]>artners as to their 
 
 "re.spe<;tive shares in the profits and losses, and in the absence of all other controlling 
 
 " evidence and ciicunistances, the rule of the common law is, that they are to share e(|ually 
 
 " of both ; for in such a case equality would seem to be equity. And th(» circunistaiiee 
 
 "that each partner has brought an une(|uai amount of cajiital into the Common Stock, or 
 
 "that one or more luis brought in tlu: whole capital, and the otlier have oidy brought in 
 
 " indii.stry, skill ami e.xperienctt would not seem to furni.sh any sultstantial or decisive 
 
 "ground of ditl'ereiu'e as to the distriliution ; on the contrary the very silence of the part- 
 
 "ners as to any ji.irticular stipulation, might seem fairly to import, either that there was 
 
 " not, all things considered, any real ine(piality in the benetits to the partnershi]> in the 
 
 "ca.sc, or tliat the matter was waived on the grounds of goodwill, or affection, or liberality, 
 
 "or expediency. * * * * * ■' 
 
 "The Koniau fiaw promulgates the like doctrine. If no express agreement we7c maile by 
 
 "the i)artners eoncerning their slian's of the profit and lo.ss, the pri'iit anil loss were 
 
 "shared equally between them. If there was any such agreement, that was to l)e faith- 
 
 " fully ol'served. Et (/uiilcni- (says Institutes), ai iiHiil dt- jiarlilins lacrl et dainiil it'nninatlon. 
 
 " conveiurit, (vqualcs f^cilicvt parh'^ rl in !ncr<^ d in diiinnn yjucliintiir. Qiiod ,s/ crprcsstr fm nnif, 
 
 "partes, har s(ri\iri ihJnut. So tlu' Digest. Si wn fm rinl /mrti'.'i KOfirln/i lutjictii injun^ eas 
 
 "{i'ssc con f tat. 
 
 * * * « « *» * * 
 
 |k "This also seems to 1)e tlie rule adopted into tiie modern connnercial law." 
 
 It may be objected that while in a general ]iartnerslii)i. in tlie absence of any express 
 stii)ulation to the contrary, it is admitted that each partner will b(> considered as being 
 iHpially entitled to an etpial shan; of the partnership pioperty and of all i)rotits, and e([ually 
 liable infer sr for an e(|ua] share of all losses, and for deficiencies of the pai'tnersliip assets 
 to meet the partnershiii liai)ilities, still if the private del)t of any partner is paid out of 
 the common fund, that debt at the dissolutiiju should be charged against that partner ; 
 and that in the case under consideration, it is only contended that the same rule should 
 apply to the alleged (h'bt of Upper Canada at the Union in 18 H. IJut this mode of rea- 
 soning is fallacious, as a moment's rellectioTi will demonstrate, raitnenshii) or co-jtailiier- 
 ship has been defined by text writers on the law of ])aitnership. to be "a combination of 
 " two (u- more persons of capital, of labor or skill for the jnirpose of biLsiness for their 
 "common l)enetit." — (Piirson.-^ on Partm rship.) "It is a voluntary contract between two 
 "or more competent persons, to place their money, effect.s, labor, and skill, <>r aoinc, ar all 
 " of them, in lawful commerce or business Avitli the tniderstanding that there shall be a 
 "communion of profits and of lo,sses between them." — {Story on, Partm rM p.) This same 
 authoi' further states that partners may not contribut(> e([ually, and that some of them 
 may contribute neither money nor effects, nor laboi- nor skill, but all these may lie 
 " waived v}ifln the gro)(n(ls of tjond will, or ajfeefioii, or Hheralitij, or e.epedienei/," and will be 
 considered in law to have been waived, and that each partner was put on an equality 
 ;is to community of the partnership ]iroperty and liabilities with all the otlier partmn's, 
 although he may have lirought into the jtartnersliip nmch less than .some one or more if 
 the partners, or indeed nothing at all, unless th(! contrary shall appear by express stipula 
 tion or fiy evidence fairly th'ducible from surroiuiding circiunstances, and tlu' course of 
 dealing of the partners infer se. 
 
 Now, let us clearly understand what the Counsel for Quebec mean. They say : 
 " Ijct this division of the excess of debt and this division of assets proceed on partnership 
 " principles." To do this, you nutst consider the debt of Upper Canada at the Union in 
 1841 to be its private debt; and the alleged cash in hand of Lower Canada, to be its 
 private eash; and taking away this debt and this cash, that the Provinces entered into 
 partnership, making all else in both Provinces common. That the joint concern, having 
 
 ll 
 
20 
 
 paid or assumed and become responsible for the debt of Upper Canada, tapper Canada is 
 chargeable with it, and bound to pay it liauk ; and that tiic united eoncciii having had, 
 and used the priaitc rasJi of Lowea- Canada, is bound to pay baek tu Lower Canada that 
 cash. They say that it is to be assumed that (ncry thing during tht; partnership was 
 fcjual and fair to lioth Provinces, and that an e(|ual division of the excess of debt (the 
 liabilities or losses of the partnershi|) ecjueein), ami an equal division of the assets (the 
 profits or delits due tiie iiartncrsliip concern) should at the end or dissolution of partner- 
 ship (the Confederation of tiu; rrovinces) take place. Now, as 1 have before .said, does 
 not any one set; if this were correct, Upper Canada should Ite charged interest with animal 
 rests on its debt for twenty-six years, and I^owit Canada should be credited with interest 
 w itli annual rests on its cash lor the samt- period. The mere statement of this fact shows 
 the nonsense of the whole thing. Ihit we are not left to the rcdudio ad ith-trdnin. This 
 del)t of l']ii)er Canada, as I have already shown, was chiefly contracted for public works 
 whiih jiassed over as the common juojierty of both I'roviiices at the Union, and are now, 
 by tlu' British North America Act, made the common property of the Dominion. The 
 siippo.sed cash in hand of Lower Canada had no exi.stence except in the imagination of 
 the Counsel for t||uebec. Listead of cash in hand, it was in debt, as I have also alreaily 
 shuM'n. A'"('', luitlur the. (h'lit nf ijijicr Caiiudn, iinr tlinf of Loii-tr Caiiudo, vn$ in anij sntsc 
 trjialivcr till' jirirati' ikhf, of rither J'roviiax as dli^cotnni'ted, from its rcrcnne. In fact, flu; debt 
 ill each was simpbj a cJiarric on its revenue made by various Acts of Parllamoit. 
 
 It has no anc.logy whatever to the private del)t of an individual entering into a \n\vt- 
 nership. It would more resemble a case of this kiiul. An individual might jiropose to 
 another, that each should put his effects into a comni. ;i i)artnership concern. The elVects 
 of each, or of one of them, Ix.'ing at the time incumliered, and known to be incumbered, 
 to a certain extent. In such a case, in the altsence of t^xpress provision to the contrary, 
 the joint concern would lie liable to discharge the incumbrances or incumbrance, and 
 neither paitner, inlir sc, wouhl be liable tiierefor to the partnership concern, or to the 
 other jiartner, but as between themselves each would be entitled to one half of the profits 
 ami of the whole partnership effects, and be liable for one-half of the losses and of the 
 whole liabilities. l>iit uid'oitiniately for the Counsel for (t>uebec this matter of the debt 
 of Up])er Canada and also the debt, oi, if it ])lea.si'S better, the ca,sh in hand of Lower 
 Canaila. in the one case bi'ing a charge on Con.'Milidated Kevenue, and in the other being 
 cash to the credit of Consolidated Kevenue — is left in no doubt. If it .should appear that 
 it was expre.s.sly declared in the aitich's of Partiiersliip (tlu' Union Act of 1S40), that the 
 debt of T'pper Canada, and if any existed, of Lower Canada, should lie paid out of the 
 joint revenues of both rioviuces, which by the Union Act weie transferred to the (if you 
 80 please) paitnei'ship concern of Upper and Lower Canada, eaUed '' Canada," and no 
 sti]»ulaiion was maile that eithei' Province was to be chaigeil with, held re.sponsil)le for, 
 or be called upon to rejiay the same, I think it must be ccmceded that an end is put to 
 the conti'oviis}-. Well, then, what say tin; articles of partnership. The preamble to the 
 Act of 1. SMI, states, "Whereas it is necessary that provision lie made for the good ( !ov- 
 "ernment of the Produces of Upper and Lower Canada in such manner as may secure 
 "the Pights and Jjiberties and jiromote the Interests of all classes of Her Majesty's sub- 
 " jects within the same : And whereas to this end it is expedient that the said Provinces 
 "be ic-uniled and form one I'loviiice for the ]iurnoses of Executive Goveinment and 
 "Legislation, therefore," \-c., iVc. 
 
 Section 1 declai-es the partnership to be formed. It says : 
 
 " 1. From i^'c, the said Provinces .shall form and be one Province under the name of 
 "the Province of Canada, and thenceforth the said Provinces shall constitute and be one 
 "Province under the name aforesaid from and aftiM' the (hiy so apjiointed as aforesaid." 
 
 Section two remove's all pre-existing ordinances inconsistent with the articles of part- 
 nership then made. 
 
 Sections from two to fifty prescribe the maniiei' in which the Executive and Legisla- 
 tive (Jovernment of the subject of ))artnership should oe constituted, managed and car 
 ried on. 
 
 Section fifty provides that all the inconu*, revenues and effects (jf both the partners 
 shoidd ))(' the joint proiierty of the partners, in which each partner should have an equui 
 
 I I 
 
 « 
 
21 
 
 ( 
 
 I i 1 
 
 sharo witliout iiiiy regard to the aiiKPiiiit nr valiif of the rovciiuf-!, income or cfTccts wliich 
 each coiitriliiit('(l to the one coiiiTiioii t'lmd. It says : 
 
 "Tliat upon the I'liioii of tlic I'mvinics of Upper ami f-owiT Canada all duties and 
 "revenues over wliicli tlic respective i-e.^isjatures of the said '.'ro\incfs licfoi'c ami at the 
 "time of the passin.i; of this Act had and have power of appropriation shall form one oon- 
 "soli(hited fund to be appropriated for the I'ublic Service of the i'rovince of Canada in 
 "the maiuiei', and suliject to the char,t;es hereinafter mentioned." 
 
 !!y section lifty-one, the Consolidated Revenue Fund of the Pinvince of Canada is 
 ( harged with the costs, fharfi;es and exjienses of collecting the Fund. 
 
 I5y sections fifty-two, fifty-tliree an<l iifty-fonr, certain other charges are made on tlie 
 Consolidated Revenui; Fund, including the Civil List to Wcv Majesty. 
 
 Section fifty five, is special ; and it would do no violence to its construction to say 
 that it fully iirovides for anj' chai'ges which tiie Legislatui'e of the I'rovhice of I'ppcr 
 Canada or that of Lower Canada liail previously made ujion its Duties and Kevemies, by 
 the incurring of de1)ts, which jprior to the I'nion were made eharges upon its Consolidated 
 lie\i'iuie I'und. it is coi\teiided iliat this section is 1)road enough to cover, ami does in 
 fact in explicit terms cover, tlu' reservation of Duties au<l lievenuef; sufficient to pay off 
 all Upper Canada or Lower Canada del)ts contracte(l pi-ior to the Union. It is as follows: 
 
 " L\'. And lie it enacted, that the Consolidation of the Duties and Reve:uies of thi' 
 ".said I'lovince, >liall not he taken to affect the payment out of the said Consolidateil 
 " Revenue Fund, of any siun or sums herctofoi'e chargecl upon the Rates and Duties 
 "already laised. levied and collected, or to he raised, levied or colli'cted, to and for the 
 " use of either of the saiil J'rovinces of UjipcT ( 'anada or Lower Canada, or of the Province 
 "of Canada, for such time as siiall have been appointed by the several Acts of the Legis- 
 ■'lature of the Province, by mIucIi such charges v/ere severally authorized." 
 
 All the debts of Uj)per Canada, as well as of Lower Canada, were by Legislatice 
 enactments made charges on the " Ji'(t/(s" and "' /^'(//'i/' of each Province respectively, 
 'flierefore it is submitted that this section alone jirovides amjtly for the payment out of 
 reserved ^' Jtufrs' and " Didic^' ol'.dl preexisting debts. i!ut the (luestion is not left here. 
 Section fifty-six says : 
 
 " L^'L And be it enacted, that the e\]ieiises of the collection and management and 
 " receiiit of the said Consolidateil Iieveuue Fund, shall form the first charge thereon ; and 
 "that tlu' (uaninl iulnrst of t/ic piihlif ilihl af ///>■ J'furiin'fs nf i'ji/irr and Loiiwr Canada, nr 
 "■ cithrr of I/k/ii, at the time of thf Rc-nahin of Ho- said Prorincfn, shall form the second 
 "charge thereon : and that the payments to be made to the Clei'gy of the TTiiited Church 
 ■■of England and Ireland, and to (.'lergy of the Church of Scotland, and to Ministers of 
 ■•other (.'hristian denominations, pursuant to any law or usage whereby such payments, 
 ■■ i)efore oi'at tlu' time of ])assing tliis Act, wei'c or ai'e legally or usually paid out (jf thi* 
 ■■public 01' Crown Revenue, of either of the Pio\inces r)f Upper and Lower Canada, shall 
 "form the third charge upon the said Consolidated Ifevemie Fund: and that the said 
 '• sum of forty-live thousand pounds Nl\all fu'm the fourth charge thereon : and that the 
 "said s\im of thirty thousand pounds, so long as the same shall contiiuie to l)i' jiayabie, 
 " shall foi'ui the fifth cliaige theieoii ; aial that the other eharaes on the Bates and Dntii--^ 
 " levied within the said J'rorliice of Canada, hireinliefore refterred, shall form the si.rth cJuwi/i' 
 "thereon, so lomj as sneh eharyes shall eontinue to he pai/ahle." 
 
 Particular attention is called to three points in sections fiftj'-five and fifty-six : 
 
 L Section fifty-five expressly declares that any sum or sums of money Iheretofoi-e 
 charged upon the '' laitcs" and " Diifiis" of Upper or Lower Canada eith.er already collected 
 or thereafter to be coUected should be paid out of the (.'ons(didated Revenue Fund of 
 Canada thereby formed of such " Jlates" aiul "J>uties." The debts of Cppei Canada and 
 Lvicer Canada were sums of inoneii eharaed vpoii the Siiid Hates and Duties hi the several Ads 
 of the respeetire Leijislatares antJiori-jiiri the rreation <f the si vi'ral dells. 
 
 2. By section fifty-six the interest on the jiublic debt of the Provinces of Ujijier and 
 Lower Canada or either of them at the time of the Union is made the second charge on 
 the Consolidated Revenue Fund of Canada. 
 
 .'}. The other charges on the "Hales" and "Duties" levie(l within the Frovince of 
 
O.) 
 
 k I 
 
 Caniula tlicrciiibciort^ rcscrvcil, tliat is, rcsorvcd in section fifty-five, is made tlie sixth 
 charjj;o on tlw („'ons()li(lale<l Krv<'mie F'.inil so Ion,;;- as siieli eliai^ues siiall exiht ; tliat is, 
 until tVum I'oaholiilatcil lveven\ie Fuinl the {uiiiciiiai of tiie {\>'])t< of l']i]iei' Canada and 
 i<o\ver ( 'iinada, or either of tlieni sliall have l)cen paiil olV the intefest of siieh dehts 
 having been declared to bo the iieeond ch:irj::e on the Consoliilated IJevenue Fund. The 
 I'iftv-fourth section I'eserves out of the " Ildti.f" and '' DuUrs' tlu' chai'.i;-es made by the 
 cieatiuu ol' the local delits (d" each i'l'ovince. Section iifty-six niak"s the interest of such 
 debts a second charj,^' ; and "the other charj^es on the Kates and Diitie.-i' Miat is the imnci- 
 jtal of the ihhU till' sixth charge nu the Consolidated K'e\'eniie Fund. 
 
 The fore,i;oiiiir, then, are the i'X|iress ti-rnis u|)oii w hich the ])artiier,-hiii waN formed ; 
 and it is worthy of remark that not the slij^hlest trace of any intended inei|uality in re- 
 sjiect of or on account of one or the other (if tin- jiartners lirinj^ini;' intn the ])artnersidii 
 concern an nne(|ual sharo or ca])ital, that is. '• Hahs' mid " iJiifirs," wliici; in the one case 
 might be niore or less heavily char,ini'd than in the otl'''!', c.in be fmnid. 'i'heretnre whe- 
 ther you view tin- ])artnershi[i as ^\ithout ^lijiulatloiis. and thei'efori' ageiier.i! parlnershiii, 
 to which thi' Mcll known and adndtted rides of law are aiij)licable. or regard it in the light 
 oi' the s]iecial and llreci^e sliiiulatioiis iijinii which in fact it was formed, the ciniclnsion is 
 preciM'ly the same. Doth l'ro\inies must lie considered to Iwnc entered the I'nion on 
 e(|nal terms. The fact that the ' L'dlrs' and '• Duties" of i' e one were moit^ heavily charged 
 than those of the other, or that tlie "iA/A.s" and '• iJiit'ns of the one w^re charged with 
 consideral)le sums, while those of the othi'r were not charged at all, can make no diti'er 
 ence either according to tie' law of I'artnei-liip or the exi)ress Agreements .ss found in the 
 L'nion Act. And ihe truth is it should not, for while il may be admitted that the charges 
 on the •• J!'i!(<' and "J)iiiiis' of Upper ('aiiad.i were greater than tlio>r of Lower Canada, 
 it iiiu.st also lie admitted that the assets llowing from those greatn- charges in F))pei 
 Ca;:ada in the shajie of J'liblic Works, ami which were made the joint property of liotli 
 Provinces, were also greater. It woidd be, according to Fartnershi[) law, iiece.s.sarily ius- 
 sumed that all ad\antat;'es and disadxantau'es of the -iroiiertv and eil'ects of each, charifed 
 or not charged, well' Avell known and considered by the ])arties before forming the ])art 
 nership, esjiecially in the absence ol'all <'Xpress declar.itious to the contrary on the subject. 
 Ijnt when to this is adiled the express .stipulations of the jiarties. mie(|uivocally])ronouncing 
 (IS i/olh the low, ichcii .ilipiihitions die nut finnul, the same thing, argument becomes a waste 
 of wolds. Fui'tlit r couiirmation of this view, and which of it>elf as a matter of evidence 
 ought to settle the whole coiitroNi'isy, is the faet that all the books of account, all thejml)- 
 lished piildic accounts of the late Province, all the legislation, running over a period of 
 twenty-six years, ]irove the e(|uality of the jiartneis, and entirely remove any ground for 
 setting up any claim as to inefpiality of capital at the begimnng of the partiieiship, by 
 maintaining throughout that }>eriod an uiiludken silence, in so far as the legislation and 
 the juiblic accounts are conrerneil, on the .■-ubject. These are the only witnesses to which 
 we can appeal or which we can suninion, and tluv ''fford no evidence that any inequality 
 <'xi>tid in fact, or in the ojiinion of the partners in res]iect of the Hnancial ])osition in 
 whicii lach stood ;it the Fiiion ; on the contrary, th<'se records construed according to the 
 well-known jirinciples of liie law of evidence prove the very reverse of all thi.s. 
 
 To keep \\\) the partnership view of the case this jjartncr.shij) was by the liritish 
 North .\merica Act, dissolved in ISO?. It was a di.s.solutiou by the agreement of tlu; 
 partner- ; the itartnership was foinied liy the agreement of the partners, at least it nni.st 
 be so considered, and it was without any doubt dissohi'd by the consent and agreement of 
 the j)a;tners. In the in.strumont of drssohition, it is ])rovidod that the partners .should 
 form ;i new and more extended ]iartnership with the Pi'ovinces of Nova Scotia and New 
 Brunsv ick ; — that certain large pi'o[iertii's and eil'ects, beside large I'ates and dnth's of the 
 several Provinces sluadd be surrendered to the joint concern; — that a certain amount of 
 debt charged on the rates ;ind duties of the several Provinces, should be cast upon the 
 rates and duties surreiidered to the joint concern, Mhile a certain amount of del)t should 
 ho lioiiie III/ theniseh'es, and certain assets shoidd be i-eserved to themselves. But the in- 
 strument of di.ssolution, while it detined and .settled many things connected with tlu? di.s.so- 
 lutiou. did not state what jiortion of the debt which was to be borne by Upper Canada 
 and !,ow(.'r Canada, shoulil lie borne by each ; nor what portion of the assets each should 
 
 1 
 
 f 
 
23 
 
 have : init it jirovitlcd tui' the uiipointiiuut of iuhitralor.s to ailjiist iuid si-ttlc tlu'«o puiuta; 
 just Hs iiuilcr tlio \vin(linj,Mi|» Acts, uii Official Miinagor is appointed, or as in the case of 
 (Hsa-rci iiicnt aniuiii;- partners in settling tlicii' paitnci'sliip aciMxmts, or api)ortioninj^ or 
 lividiiiu' llu'ir liabilities oi' assets, a ('ourt of (.'hanci^ry steps in and Miroiigh the Master, 
 winds up the concern. In the case Inifore us, insLead of the Official Manaj,'er or the Couil 
 of ( 'haneery, we have a Court of Arl)iti'atoi's who ari' hound to deal with the (|uestioiis 
 before them, if they are to he dealt with on tlie j)riuci]iles of j);irtneisliip, in the same 
 mannei' as w<iul<l an Official Mana'i(>r or the Court of (.'hancery. In the first jilace, they 
 must determine the charactei' of the ])artnershi]), whetheiit liegeneial, universal or special. 
 In the second ])lace, Mhethei' it is fouii(le(l un written or verlial contract or stipuhitions, or 
 on the assent of the jiai'tics, not evidenced hy special aj;ieenient, wiitteii or verhal. in 
 the former casr. the uiitlen or expressed stijMilations alone must ^ovein in eveiy matter 
 to which they apply. In the latter case, the law steps in and lays down the inles winch 
 nnist pievad. 
 
 In the present case the Arbitrators ai'e asked to apply the jirinciple.-, which conti'ol 
 ncncral ])artnerships without any written or express stipulations. As the Law ajiplicable 
 to such a jiartnership lays down rules which are the same as tho.se which are foiiml written 
 and exi)res,seil in the Union Act of 18-K), it makes but little diiference whetlu-r the part 
 iiershi]) be regarded as one tr'illi or irillninf special stipulations. In either case the course 
 of procedure must be the same, lioth [)aities nuist be consid(>red as having entered the 
 partiu'rship with elfects eipial in vahu', notwithstanding- any charges thereon ; and each 
 party must be assumed to have derived eipial advantages fiom the ])artner.shi]) duriii,, its 
 continuance, and in the ariangements made in the formation of the I)i:minion of C.inada. 
 Then it f;)llou's according to the ridi's of lav.- apjilicable toi.iicha partnership that the del)t 
 reserved to be borne l)y the I'roviiices conjointly by the Ih'iti.sh North America Act nuisl 
 be u(iually tlivided, one half to he borne by Ontario ami one half by (Quebec. The same 
 rule must Ije ap|ilie(l to the Assets, — Ontario should bi^ assigned one half and (^>uebec the 
 other half These Assets dilfer in value. Fortunately, however, a value has been placed 
 on thcni at the instance aiul by the consent of both the Arbitrators, and the Treasurers of 
 the two Provinces, And therefore it will not be difficult for the Arbitrators to tlivich' 
 them according to their value. 
 
 AJthough I do not think i\w division, on the ]>rincip]e of paitner.ship, at all com- 
 parable to the other modes suggested ; still, if the Arbitrators think dilferently, and after 
 all that has been urged against it, ad.opt it, it mu.st be on the di.stinct understanding that 
 it must l)e taken in its entirety, and that the law of partnersliii> in its full depth, length 
 ami breadth nnist be applied, and folhiwed out to its logical i'onse(piences. 
 
 The rosidts of tlio ])artnership principle would Ih^ as follows: — Assume the excess ot 
 debt as before at 810,r)00,000 to be e.pially divided, 
 
 Ontario's portion wotild be !?■"), -•")0,00() 
 
 Quebec's portion would be 5,2r)0,0()0 
 
 Assume the Assets as valued ;it S?l-,-JOf,:522 I'J— 
 
 Ontario's share M'ould be $2,102,101 00 
 
 t^iebec's share would be 2,102,UJ1 OG 
 
 The jH'iuciple of a general partnership, without sti])ulationsor with stipulations, cannot 
 be adopted and then worked out partly on that principle and partly on the ])rinciple of a 
 si^ocial partncr.slnp, with special stipulations, as is proposed by the Counsel for C^ueljcc. 
 The moment you take into account the vahu? of the Capital Stock (IJates ami Duties), each 
 brought into the Union, ami the charges with wiiicli such ca.[iital stock (llates and Duties) 
 were encumljered, then you must proceed on that principle throughout. It is im})ossible 
 any one eair contend tliat on the principle of jKutnershi]) accounts, or any other jirineij)]e 
 whatever, yo\i I'an take an isolated item, for example, as is ])ro|)osed by the Coun.sel for 
 Quebec in this case, a charge or incumbrance on the itates and Duties brought into the 
 partnership concern and stop shoi't there — making no iiiquiry into the assets created by 
 this very debt or charge;, and handed over to the ]iartnei'shii) iirni, and no investigation 
 into the ])artiiership dealings and transactions duriug the long pei'iod the partiiershii) eon- 
 tiuued. If it be assumed that absolute equality did not exist at the begiiming, and did not 
 
24 
 
 continno tlirouKh'uit the jmrtnei-sliip in nil its nccniints and (k'iiliiiiis, mul at its end, liiit on 
 the contrary tltut there ivasi/i((/it<(fili/ (it f/tr he/in //In;/, tiien tlio Ailiitrators will liave niailt! 
 up their minds to discard, in the oonsiih'ratioti of this (|ti.'s(i()7i. the jirovisiuns of the 
 Union Act of iSM>, to wliidi I liavo refeircd, and the sulisciiucnt leyislatiou of tlio hite 
 I'rovinci' of (.'an'da throiif^diuiit tlic period of the Union, and niii.it pidcfcd tu take the 
 accounts according to Irw. as follows : ~ 
 
 " 1. Ascertain how the liiiii stands as regards non paitners." (whieli in tli<' present 
 case woidd be the amount of tlie excess of debt o\-er Sti;2.')n(Ml()(l, a matter !.> lie deter- 
 mineil not liy tlie Arbitrators, but by the Dominion (lovernment and tlie Tnivinees. 
 
 " 'J. Ascertain wliat each partner is entitled to cliaiye in areount with iiis copartner, 
 " rcniembeiiiiL; m the words of Lord Hardwicke. that eacli is entit!".! to be ailo\v(>d, as 
 " ajiaiust the titlier, everything' ic has aihaneed or broui^dit in as a partnci'.>hiii transaction, 
 "and to charLtf the other in account with wdiat i',,,t olliei' his not bi'oiii;-lil in, r)r lias taken 
 " out more than he nie^dil. 
 
 '• Appiirlioii between the partners, all [H'otlts to lie diviih'd, or losses to hi' made i^ooil., 
 " atid ascertain what, if any thing, each ]iartner nuist ])ay to tlio otlier in order that all cross 
 ■'claims may be settled. In onh'r therefore to take a [lartnersliip account it is necessary 
 " to ilistinguish joint tjstate from separate estate ; Joint debts from separate debts ; and to 
 " determine wjiat gains anii what losses ai'c to be ](laced to tia' joint accoinit of all the 
 " partners or to the separau :'i. nmt tif some or on(! of them exchisiscly."- -l/mdlrif^ Iaih^ 
 of l\trti}ership [i. S,.'S. 
 
 This author goes on to say— "The prin(i]iles on wjiich this is to be done have been 
 "exphiined in previous chapters. Heferring the leader therefore to them, and reminding 
 " him that in taking the accounts between [lartnei's, attention must be paid not only to the 
 " terms of the partnership articles, but ab;<i to the manner in which they have been acted 
 " on by the partiu'i's, there remains iuit little to a<ld on the present subject, exce])t as regards 
 "just allowances, th(^ period o\-er which the account is to extend and tlie evide'iice upon 
 " whirli it is to be taken." 
 
 In the lattei- ijuotation leference is made to "the terms of the partnershi[) ailicle.s, 
 .ind the inaiiiH'r in which they jiavi^ been acted on by the paitners." In the preserit case 
 reference to the Union Act of lf<MI. and to the manner in which the provisions of that 
 act were acted on during the Union, as evidenced by the Statutes jia.ssed under it. including 
 the appro|iriiition acts for each year, and the records contained in the Public Accounts ]uili- 
 lislied annually, icuuld, in. an)/ court i>j' lair nr npiitji /on rtv prcrhidr ainj otlur (iiroimtii/;/ 
 than, (in eijiitd division of tho excess of d<lit nnd if the <issits. I make this observation to 
 show that this jiortiou of the direction of the author in taking the account is inapplicable 
 in the view 1 am now discussing of applying the partnerahip princii)le to the adjustment 
 of the debts, credits kc, of the I'roviiices. For if reference is made " to the terms (jf tho 
 " articles of partnership, and the majuier in which they ha\e been acted on," for one pur- 
 pose, it must lie for all purposes. They must be excluded entirely, or acted upon altoge- 
 ther in respect of all nvitters to which they a|iply ; and in the present case they ajiply to 
 every transaction whatever. But assuming they do not apply, and assuming that the 
 " char<je on the Jiaicsnnd Duties" of Upper < 'aiiada, called its debt, as also the state of the 
 Exchcfjuer of Ufiwer ("aiiada, called its creilit or cash in hatid, are to be taken into account 
 in the apportionment of the excess of debt and the division of the as.sets, it inevitalily 
 follows as a rule of law, sanctioned by every princijile of Justice, that the account between 
 Upper and Lower Canada must he taken as ibllows ; — 
 
 1. An account of the debt of each Province at the Union, assumed by United Canada. 
 
 2. An account of the vtiluo of the assets in the nature of [)ub]ic works of each Pro- 
 vince transferred to United Canada, 
 
 3. An account of tlia net revenue derived from each Province, during the Union from 
 sources other than from public works whicli were piovincial in their character, and although 
 situate entirely in one Province wen^ common to both, as for exam]ile the Welland < 'anal, 
 St. Lawrence Canals, Lake St. Peter Works, Chambly Canal, Works on the Ottawa, 
 Slides, itc. 
 
 4. An account of the revenue derived from the works mentioned in the third para- 
 graph. 
 
 
 i 
 
 I 
 

 
 it on 
 
 iiiult^ 
 
 the 
 
 lato 
 
 til.' 
 
 I 
 
 I 
 
 25 
 
 T). An iiccddiit (if the ('xpcnditurc in tiirh Pinvincc on (ilijccts or fur |mrjioscs other 
 than those iiicntioncd in the thir<l |iiii(iifri([ili. 
 
 G. An lux'oniit of tlic cxiiciiilitiirc oii olijccts or foi- ]iur|Mis('.s iiicntiniicd in tlir third 
 parajiiiipli. 
 
 In (irdci' tliat dis|iul(K iiuiy he avoided, (lie pidilic aeeoimts slmuld lie strietly adiieied 
 to in takiiiji; ijie aeeoiint.s. The total delit id'ter di'diu'tions to ho made according to the 
 Britisii North Ainei'ica Act will lie ;,'i\(ii hy the Dominion Govcrnnu'nt — from it will bo 
 deducted .^(iL'.ridO.ddO, which, in s(j far. a.s Ontario and (^hiehec are conceria'd removes 
 altoj^etlier fioiu the i'o:;sideratinn of the Arhitrators this sum - Outaiio ;ind (^)uel)ec |iayin.g 
 their jirojier proportion into the l)nminion Kxche(|uer. 'I'hei'efore it will oidy he the excess 
 of deht over this amount with which the Arbitrators will have to deal. 
 
 'i'he accounts heinj,' taken in accordance with the above six propositions, it will be seen 
 whetlier Lower Canada has paid mor(^ or less inlo the Tieasury (jf the late Province from 
 local or Liiwer Canada sources than it has drawn out of it for local and l^ower (,'anada pur- 
 [loses and objects ; if more, the late Province will b(( iiuh'bted to it for the excess ; if less, 
 it will owe the late Pro\ ince wliat il has drawn (ait over its enutrilnitinns into the Ciannnni 
 Treasury. 
 
 The same consef(uenc(! will attacli to Upper Canada, and the apportionment of the excess 
 (if debt and tla; division of the assets will bi' njade between thu two I'rovinccs accordini^ly- 
 
 I liav<! now said all i think it necessary, at [ireseiit, to say on the subject. It seeins to 
 nie, it would be well in the first place, carefully to consider in connection with the whole 
 subject, the Union Act of is 10. In my jmlgment, it lays down a broad and tundanu'iital 
 liasis which must be taken to be the solemn contract between the; parties, and from the pin- 
 \'isi(nis of which no departiu'c can be [lei'mitted. Ilei-e is sometiiing tam.;ible. suincthiiii;' 
 explicit, somethiuLr which cannot be denied, aiul which on all occasions can lie in%(ike(l in 
 justitication of all thing's done in conibi'mity to its sti[adations. Let the(|uestion be asked 
 with respect to e\crv view which has been taken of tin' sidiject and e\ery suu'gestion which 
 has been olt'ered, " what .says the Constitutional Act, uiuler which Upper Canada and liower 
 CaTiada became re-united in relation to this matter '(" In the .second place, it would, I 
 submit, be well attentively to consider and lu'ver to lose sight of the fact that the annual 
 appropriation Acts were jiassed by the Legislati ■ in view of and with full notice and 
 kiaiwledge of all th(^ circumstances of the Union and of the contributions made to the 
 revenue by each Province, aial that therefore it must be assumed that the Legislature has 
 ;i(le(piately provi(h'd for, met and s.atistied the just claims of each Province. iS'eithtr .slunild 
 it escajie attention that the ]iroper adjustment of the a]iportioament of moneys has lieeii 
 recognised, and expressly acted on in many act.s of the l.egishiture of the late Province. 
 It was done in the Picbellioa Losses Act, Avhich as c.mipensation to Up]ier Canada gave to it 
 its Mai'riage License Money. Tt was done in the Seignca'ial Act of 18."')4 when ."^Gdd.ddO was 
 speeiiilly .set apart for U|iper Canada purposes as compensation for that iimount charged on 
 Ccmsolidated IJeveniie Fund for the redemiitioii of Seigniorial rights. It was again done in 
 185'.) when ccaiijicnsation to the anauint of upwards of SL'. Ill S.(U Id charged ujiou Consolidated 
 Revenue Fund in respect of Seigniorial rights was carried to the credit of the .Municijial 
 Loan Fuiid of Ujiper Canada. Tt was y(\irly doiu' in the Appropriation Acts in respect ot 
 Common ISciiools, Colonization Hoads, Charitable ;ind TMucational Institutions, in short in 
 almtjst every grant of public money for local as distinguished from general Provincial 
 object.s. If tliese facts with the manner in which the I'ttblic Acciamts have been kept, and 
 the manner in which thi^ debt of the Dominitm vas adjusted in C(.>nfederation, are taken 
 into consideration aial duly W(>iglied. it seems to mi! the arbitriitors cannot b(^ at a loss or 
 have even doubts as to the judgment at w liicli tliey shotdd, nay necesarily must, arrive. 
 
 4t 
 
 I 
 
 Aibitrators met in Convocation Eoom, in Osgoode Hall, in the City of Toronto, on 
 Thursday, August 2ritli, 1870. 
 
 Hon. K. |j. WodD said : I propose, while the .\nditor is here, to take U|i and di,scu.ss 
 before the Court of Arbitration the following statements of the debts created for local 
 purposes in each Province, ami foiining part of the gross debt of the late Province of 
 Canada. But before doing so, 1 will read the judgment of the Arbitrators on the princi- 
 
26 
 
 pic and moili' nf [noucdurt' in llic divisinn and adjustiuciit of tin- dfhts, credits, lial»ilitios, 
 ltrrn)ortie.s and awsots of Upper Canada and Lowor Canada, tlio .siil>j('ct matter of tlio r«- 
 fci'ciK.'c, prononnccd on tin- '_'f<tli day of May last — Judyo Day dissenting — wliioli is oh 
 follows : - 
 
 "The Arl>itrators, under the JJritish North America Act, 1HG7, havin;,' carefully con" 
 sidei'ed tlie ar;,'Uinents olfered, and the ]ii()p(Jsitioiis sn1iinittc(l respectively, liy and on 
 behalf of the rroviiices of Ontaiio and (^'ueliec, and having heard Counsel at length there- 
 upon, do award an.d adjudges as follows; 
 
 '• Firstly -That the imperial Union Act, .'Inl and Itii Victoria, chapter ."5."), did not 
 create, in fact or in law, any partuei'sliip between Ujtper and Lower Canada, nor any 
 such ri'lations as arise from a stale of co-partiu'rshiji ius lietween individuals. 
 
 " Secondly- That the Arliitrators have no power or authority to enter upon any 
 en(|uiry into the relative state of the debts of the I'rovinces of Upper and Lower Canada 
 respectively, at the time of their Union in ISll into tlie Province of Canada. 
 
 " 'I'hirdly - That the division and adjustment between Onlaiio and (^uelxic of the 
 excess of (h'bt beyond sixty-two nnllions five hundred thousaml dollars, for which, (uidei 
 the llL'th section of the ilritish "North America Act, ISO?, Ontario and (^)uebec cmjointly 
 are lialile to (,'anaila, shall be based upon the origin of the sev<'ral items of the debts 
 incurred by the cre;ition ot the assets mentione(i in the fourth schedule to tliat Act. and 
 shall be ap))ortioned ami borne Hei)arately liy ( )ntaii(» and (,>uel»ec, as the sann^ maybe 
 adjudged for tlu local beneHt of eithei' ; and, where tl,<' debt has been incurred in the 
 ci'Mtion of an as-;et for the conuuon benefit of botli I'rovinces, ami shall be so juljudged, 
 .such del)t shall lie di\ided and borne ei|ually by both. 
 
 "Fourthly — That where the d(l>t uudei' considei'ation shall not come within the 
 perview of the fourth xIumIuIc, whelhei' the same shall or shall not have left an a.s.set, 
 reference shall lie liad to its origin under the .same rule as in the last pieceding s(u;tion 
 laid down. 
 
 "Fifthly — That the assets enumerated in the fourth scliedide to the I!. X. A. Act, 
 18G7, and declared by the lUJth section to bo the property of Ontaiio and Que1)ec coir 
 jointly, :-hall be divided and adjusted, a]i]iropriated a:- allowed fu7' upon the same basis. 
 
 "Sixthly Thai the exiiendituie made l>y the creation of each of the said a.s.sets shall 
 be taken as the value thereof ; and, when no as.set has been left, the amount paid shall be 
 taken as the debt incurred — the Arbitrators having no right to enter into or adjuilicate 
 iijiun the ]ici]icy or advantages of expenditures or debts incurred by authority of, ami passed 
 upon by Parliament. 
 
 "Seventhly — It is therefore ordered that, in accord.'ince with the above decision, the 
 Counsel for the said Provinces of Ontario and Quebc'c do proceed with their respective 
 cases. 
 
 iJcbls cri'.iiliil for Load Purpo.^t'y in (Juchrr fonnimi /mrl of the Debt of th.r latr Province 
 
 of Canadd. 
 
 1. Aylmer Court House Six per cent. Debentures $:2,U()0 00 
 
 Do. do. Account Current 1,23!) 70 
 
 •2. Montreal Court House Debi'uture Account !)."), GOO 00 
 
 Do. do. Account Current lS,*.)'.)(i 21 
 
 3. Kamouraska Court House Account Current 201 27 
 
 4. Eoyal Institution 7,790 00 
 
 5. Consolidated Arunici[ial Loan Fund, Lower Canada, 
 
 Capital Account 2,I2S,U0 00 
 
 Les.s Sinking Fund, iVc 271,l.-)2 SG 
 
 2,ir)G,G87 H 
 
 Do. do. Interest Account 782,742 83 
 
 G. Lower Camuhi Legislative (irant 28,4'J4 73 
 
 7. Quebec Fire Loan 264,2.')4 Gfi 
 
 8. Temiscou.ata Advance Account 3,000 00 
 
 1). Educati(m East 290 10 
 
 10. Building and Jury Fund, Lower Canada 116,475 51 
 
 
 1 
 
 'I 
 
 II 
 

 ( \ 
 
 11. Miuiiciiialitics Kiiiul. Lnwrr CjUKulii • 
 
 12. Lower Ciuiinlji Siii)crinr K.liKiitioii IiKdiuc ImuhI 
 Inti'i'cst nil luvcstiuciit 
 
 •J.SO.f'.Sl \i) 
 :5,fi(H) 00 
 
 1'.)I,3:J(> 12 
 
 •j:u,'JHi tfi 
 
 \-] SiM"Piiiii;il Kiiiid of isr. 1 l.ascil nil Tiivrni I-ifciiM's.Ac. s:Vl.ll1 !•» 
 J);"; a,,. fluirgfil (III ('(.iisolidiilrd Kcvrmie t;oo,000 oo 
 
 I),,. ilu. short ]i;ii(l to ISC) ( 
 
 1 t C'luir-v-^nii ("oiisoli.latcil Krvciui.' uiid.'r Sci-iuwrial Act, IH')'.", as .iiidcr: 
 
 Capital of ( Jfiicral Scimiiorir.s i,(H.....^l> -W. 
 
 Add Sciuiiiorics St. Siilpice '.\W,,\\) hh 
 
 \<ld Lower Canada Sup. VA. (.Icsuits' Estates). . '.)2,;).S.5 S-S 
 
 1,1:31,111 10 
 so, -JO I 00 
 
 :').-_'o."i,iis:5 .s.') 
 j.e.s 15alanrr rmid, Is.'yl ... i;',)7,.S-21 UT 
 
 1.";. ludeiuiiit}- to Towiiship.s, Lower Canada 
 
 75(5,7 UM)() 
 
 Debts a-eahl in Ontario Joy Lnml Purposes forming part of Ih.' ])rhl ,.f li..- tntr ]>ronon'. 
 
 of (kuindii. 
 
 1. Upper Canada Liiildin- Fund •■^'''•'^'"' '^'> 
 
 2. Law Society I'pper Canada, Debenture ,,.,.,„> an 
 
 A 1 I b.ooo ou 
 
 Account ,,n,>i.- ei 
 
 Do. do Account Current... UO,Ol.) <.! 
 
 1.^x3,015 (31 
 
 :;. Cunsolidatoil Municii);d Loan Fund. I'l)- 
 
 luT Canada, Capital Account 7,300,000 00 
 
 ^ Less Sinkin- Fund... •1-"J,r,4,s g;', 
 
 82,770,380 3G 
 
 Less Capital of Lidemnity Account iindei' 
 Seii^niorial Act, IS.")!), as follows : 
 Cai)ital of ({eiieral Seig- 
 
 nioru'S ^ ' ' 
 
 Do. Seigniories of St 
 
 Sulpice ..._ 330,711) (it; 
 
 Do. Seigniories, Jesuits' 
 Estates, Superior 
 Education, Lower 
 Canada ()2,.383 S3 
 
 (3,S70,4r>l 37 
 
 3,-20.'),G83 85 
 Deduct T'alance of Fund, 
 
 18.V1 (597,824 97 
 
 2,507,858 88 
 
 4,302,592 49 
 
 Intci'^st Account : 
 
 Literest on al)ove Capital (§7,300,000) 3,517,084 20 
 Less Interest on Seignorial Indemnity 1,552,175 19 
 
 4. Agricultural Society, Upjier Canada 
 
 5. University P(.'rnuinent Fund ..... 
 
 6. luclemuity under Seigniorial Act, 1854 .. 
 
 7. Do. do. do. 1859 .. 
 
 1,904,909 07 
 4,000 00 
 1.220 03 
 
 000,000 00 
 
 2,507,858 88 
 
 3,107,858 88 
 ;y^C33,30C (58 
 
 
28 
 
 Oriijin of Debt. 
 
 Accordiiif.' to tlif jiid^^mt'iit of tlu' Aihitrators, tlif excess i if ildit ovi r .?*i'J,5fK»,(lfi() 
 is to lie ilividcil in )>nnMirU(Hi tn tlii' cxiiciKlitun' in (■acli rroviiicr (iii iniiciy lncal ohjeotH, 
 iiiul wiiicli I'Xiiriulitiiic lias in tact ncalctl liic rxcc.vs nt' dcht dvcr iVll inilliiuis. It 
 l)i'ciinii's iioccssary, tiicrt'tnrc, to j;() into the history ot" kucIi local rxpcnditiirf' cicatinj^ 
 the dcl>t, in ordci' to sliow that it ifdx l"i'iil, and to (h'ninn>tratc that it tnrni-' put of the 
 gross ildi/ of till- late I'lovincc. In doin^' this, tlic assets uiiich such e.s|ienditme lias h'ft 
 lu'iiiiid it (whfi'ever it has left any asset) f'oiin a vahiahle, I may say an unerriiii,' <;nide 
 to the origin of a jmition of tlie ih'ht of the late Pinvince. In every case of local ex|Kn- 
 diture which lias adiled to the di'lit of tlie late IVovince, a nominal asset at li'a>t has 
 been left, indicatiii;;' the deht therehy created ; except the expeiulitiire under the Si'i^- 
 niorial Le^^islation of Is.") J and is.'t'.i. This le;^'islatioii in its ultimate coiise(|Ueiices made 
 the late ['fovince lialile \'nv i\\r follnwinu; capital. Hvery asset is jticsented in the 
 sclieilwie of dclits ; liut every dcht is not ivpiescnted in the schedide of assets, Itecauso 
 the c.\i)C'ndituie in connection with tlu' Seigniorial tenure left no asset. 
 
 Siiij)tini'nd ,1(1, IS.') t. 
 
 Capitalization of Tlevenue ti'oin the Si'i-niory of Lau/.nn. ami Tavern 
 
 Licenses, tV:c.-- these reveuue,- having;' now passed to Lower Canada ... ^'■\\,\ 1 1 I" 
 
 I>irect charp" on CoUMilidated Revemie to redeem Seigniorial Hues over 
 
 and ahove the preceding .sum ClOO.ddd (lO 
 
 K(|uivalent charge thereon as Compensation to I'pper Canada, now form- 
 ing part of the rpper Canada Luildin;^ iMiiid f;(lO,(t()(l (lO 
 
 Deficit of local revenues to 1st duly LSG7. Sd.l'itl 00 
 
 Total capital charged on Consolidated Reveiuic under Act of 1S.")1 ...ftJ.ll L<U.") 10 
 
 Seigninrial J ft, lf<.">9. 
 
 Capital of Ceneral Seigniories L\S7!t.ll2l oO 
 
 Less (,,»uiiit lOO,")!! 11 
 
 L'.TTO.nsO 'M\ 
 A(hl Capital of the Seigniories uf St. Snlpice. ;i;)(;,7r,) (UJ 
 
 ;'., 1 I.'kKio ivi 
 Less Lalance of capital of Fund of is.'ij, 
 
 unexpended r)'J7,821 07 
 
 2,nr).27r) 05 
 
 Add Capital of Compensation to Town.sliips 700,710 00 
 
 Add Jesuits Estates, Superintendent of Education, Lowor 
 
 92,r)83 >s:} 
 
 Canada . 
 
 Capital of Indemnify tt, Upper Canada ^rimicipal Loan 
 Fund, as Conipensatiu* lo Cpper Canada, as follows.- 
 
 Capital of General Seigniories, less Quiiit, as above .. 2,770,380 3fi 
 
 Capital of Seigniories of St. Snlpice 33G,71D GO 
 
 Capital of Jesuits Estates given to Superintendent of 
 
 Education, Lower Canada 92,583 83 
 
 3,264,008 88 
 
 Less Balance of Fund of 18.51, unexpcndc<l, as pre- 
 
 3,205,083 85 
 
 ceding 097.824 ^'i 
 
 Total Capital added to the Debt of the late Province by the 
 Seigniorial Legislation 
 
 2,507,858 88 
 
 I 1 < 
 
 $7,887,073 10 
 
()()(► 
 
 '<;t.8, 
 If 
 
 III.- 
 
 IKic 
 nll- 
 
 KIS 
 
 tlH' 
 
 IIM' 
 
 29 
 
 Of ihis C(ij)ilnl thrn mis cmtkdj'or Lorn/ Purposes in Lower Canada, as follmi's : — 
 
 Act of lHr)4 l,514,G4r. 40 
 
 Act of \H')'d: 
 
 Ciipitiil ufdi.ufnil Seiguidiir.s, Icvs (^tiiint iJ,77t»,:5HO ;j(; 
 
 Sfiyiiiory of St. Sulpico ;?;W!,71',» Of) 
 
 Inileiiinity to Towii.sliips. Tjowcr Cuiiaila 7'if!.7IO ill) 
 
 .Jesuits' Iv-slatoM, Lower CauiuLi, Suiicriiitcinlfiit of Etliicutioii lli',."''^'' '"'•'^ 
 
 .•1,lJ(;2,.'!y] H.') 
 Less Balauct' of Capital of 1S54, unexpciidiil : (i'J7..Si.>| <J7 
 
 Total Lower Canada 4,77y,214 28 
 
 And the Compi'iisati'iii fn I'pinr Vtinii.la !s (ts fnjhiws : — 
 
 Itulrimiity iimli'r the Ad of |S")^, imw foiiiiiug pait of tlu! 
 
 Upp'or Canada IJnildiny Fund ." G()0,f)O() oO 
 
 Indininity nndi r Act of 1859, carried to the ciudit of llio 
 
 .Municij.al Loan ImiihI L'.r)(i7.s.'iS ss 
 
 Total rppur Canada ;5,l07,S.").s ss 
 
 Total rppcrand Lnwcr Canada 7,SS(;,77o 10 
 
 hijl' raicr ill J'finuir iif Lmi'i r ('unnilii 1,00 1, 1 .'Xl 1(1 
 
 \\\\\ if tlir iii(|riiiiiity to rpjiiT ( 'anaila, under 1 1 n' Act of lS.")'.t, lie taken, as stated hy 
 i\li' Lanuton, in the I'ulilif Aeenuut- of iS(;7, at •-■L'.J IS..")").").;')!) (pat;i' HI), Icavin^::' out of 
 that indenndly i-'llKi,?! '.).•»(), eiiaiLied to Lnuci' Canada Mnniripahties fund, and sii"J,.")S;5.8."i, 
 capital of .lesuits' Hsiates carried to tlic eivdit of Superior Kdiu'ation, Lower Canada, and 
 for which is argued tiiat it was not intruded tliat Cjjper Cauaila should have any indem- 
 nity, the total to I/ppei- Canada would he only SL',slS,rir)."),;('.l. instead of 8.'5,l(J7,r)">8.86, 
 and the diti'ercnei' in favour of Lowei' ( 'auada, i^'L'.i'iti.'iriS.S'.t. 
 
 (With accumulations of interest on it from ISfdi (o liiiih June, 1S(;7!) 
 
 if till" (^)uint, wliirh was a Crown K'eveuue. and given up to Lower Canada, he 
 ad<led to tile Lower Canada cajiital, it will make that of Lower Canada !?4,8Si.',7'iS.4li 
 and the dill'erenee in fa\our of iiower Canada i^i'.Od L-'l.'l.t);;. hesides inteiest as already 
 stated. 
 
 The re\'eiuies formed liy the eapit.dized icceipts from tlie Sei^cniory of Lauzon, and 
 Tavern and other J^icenses, under tiie Aet of IS.") I, iiave now jja.sst'd to Lower Canada : 
 and tlie capital thereliy added to the Delit of the late Province, and which now forms 
 l)arlof the 8:^,1 1. "3, 11)0.02 entered into t:,,. Del.t, was .<s:5 1,114 40 ; that is. it now forms 
 part of that .,um, except what had lieen previously paid away; lait what was previously 
 paid away i.s also added to the JK-ht, liecanse the jnoney was not paid throuj;h current 
 revenue, but was paiil hy lioirowin;,' on debentiu'cs. It certainly added .so much to the 
 Debt of the late I'rovince, whether ])aid away or not. 
 
 To ]irovide a fund sutlicieiit as was alle^'cd to redeem the Seieiiioiial dues, the 
 .statute made a diivct further chari,^e upon the Consolidated iieveniu' of sGOO,0OO,and j^'ave 
 an ctjuivalcnt sum thereout oi' a chai'jj;e thereon as compensation to Uppci- Canathi, Avhich 
 now forms part of the Cppci' Canada LuildiiiL,' Fund. These two sums, with tin; 
 S8;54,lll 10 just mentioiuMJ, make a total of capital added to the Delit of the late Pro- 
 vince by the Seigniorial Legislation of 18.")4 of S2,0:>1,440.40. 
 
 Under the Seignioiial Act ot 18r)'J, the capital of Ceneral Seigniories, by the 
 schedules of the Connnis-iioncrs, was estinu\ted at, and found to be, §2,879,924 .'iO. 
 Under the authority of t!ie Act of L^.'il, tor the relief of tlu; Censitaires, he Quint, which 
 was payable by the Seigniories to the Crown, was estimated and taken off from tho capital 
 
»(> 
 
 of the HpiffninricH. This wns Crown rovpnuf. .iinl turmtwl part of the Consolid.itrd Rrvrmio 
 I''iiimI of llir I'mviin (' (if Ciiriiiilii. 'I'liis ('lowii H'Viiiiif. tdtlic (Xtt'iitul iflo.'t,.'! 1 1. 14, wiis 
 mirniiilfiril mul ^'iveii up :iltoL,'rilu'r in .ulilitidii tn the otlicr clwir^^^cs I liavc inrtitiinicd. 
 
 Di'dllctiii^' tlic t^)uilll, Mini iiil<lili>{ tilt' rii|iit;il dt' tin- Sfii^iiidiicH dt' St. Siil|ii(c, ;,'iv»'.s 
 tlif Hiiiri of $;i,l i;i, IdO.di;, 'riuit Ih tlic sum ut wliidi the capital now utamls in tlu^ 
 pulilii' aiToiints. 
 
 Tln'iv is tlicti talvtii friitn that aint>unl llir item of .«(1!>7.H24.!)7, " lialnncc of capital 
 of lHr»l, uni'Xpciuli'd." The .ipital of IHrtl, provided liy tlm Art for the cxtiiifinisluiii'nt 
 of Si'iu'uiorial liu'lil'^. was as I liavf said, .Si, I."! I, HI. K*. Coniinissioncrs wtTr a|ipuintt'd 
 under that Aet, and tlie expi-nses ran on nntil, tile Auditor says, in iSiKI, when lie in.adc 
 tlieHi' iie.c'ounts up. diKcoiuilin;,' tiie payments made Iciek to the Ith May, is.'i'.t, the day 
 the .\et of inri'.t was passed, there was oidy a lialaiiee reinainin;;; of that fiuid of 
 $(tl»7,S"Jk'.»7. That havin,!^ been already diariijiMl upon (,'oiisolidated U'evemie l''und.oiii.'lit 
 to lie taki'ii fiom the tot.ai capital of the Sei^'iiiories. 
 
 I'rciceedin:; witli tiie cidciilations ,is siiown in the lalailar st;itenietit, we olitain a 
 total of §7,MSti,77;5. 10 ivddeil to the l)el.t of the late I'rovince on capital account. Iiy the 
 Sei'^'uiorial l,ej,'islatio!i, and t)'is, too, leaviii;; out the t.,luiiit. Now that lar^'e sum has 
 not left ,1 sin^de asset hellilld it. 
 
 I wi,-.h to show j)reeisely how I'pper Canada has farecl under this le^fislatimi for 
 exclusively local olijects, and 1 do it in the ((Hicludiiijj; part of the talndar statement, 
 whicii sliows that on the Sei,LCuiorial liCLjislation alone, Lower Canada f,'ot more than 
 two millions of dollars for which there was no preti'iice whatever of f.dvinL; I'pper 
 (.'anada any ei|ui\alent at all. and that iiiadililion to the <.j)uint (.'^l(i:>..') 1 1. 1 I), a surren- 
 dor of revenue which liilonj;e(l as nntch to Ipiier Canaila as ;in> Crown l.uids in I'pper 
 Canada helonf,'ed to fjower Canada. 
 
 I do not. mean to say that the interest ;it six per cent, was not paid on this c.ipital ///, 
 l()to; Itut if it were paid, it nevertheless trenched so far ou current revenue tlial for that 
 .and other purposes of the rroviiices. other loans h,id to he matle. 
 
 (In ri'[ily to Col. (Jray.) Interest, il' paid at all, was paid out of ca[iital. 
 
 If the (,|uiiit. w hich was a ( 'rown revenue, .nid .ui\ en u]) to Lowei' ( 'anada. he .uMcd. 
 it will make the <lill'erence in favour of Lowei' ( '.mada S2,(Hi l.i;(i,"i.(i;i, hcsidcs inti'rot as 
 already stated. 
 
 The interest on this lar;j,v sum (•'^7,SS(>.7";i. 1 1">) prioi' (n |sl .Inly, IS(i7, was not 
 wholly paid out <if current revenue. l)ut was ]iaid partly liy further increa>in;; the Deht. 
 of th(^ late l'ro\ ince. ]iartly from current re\eiiu.'. and to ,i, l.ir^e extent l)y allowing it to 
 jiecuiniilatc at compound interest, which is now ailded to tin- Debt of the lat*; I'rovince 
 from tlit^ open accoiuits in the Provincial ltMlL':er; none of it, either ])rincipal or interest, 
 havinij; left any asset liehind. Vou will see, in illustration of this, that there was .i small 
 lialanco put down in the riiMic .\ecounts, isiw, as due to the Seiniiioi'ies.a very lar,^'e sum 
 <lue to the Townships and tha' the !?.t>(i(i,tii)0.0(( c(iuivali'nt to Cpper CaiLada undei the 
 Act of l.S.lt, now f(U'inin,LC part of the Cpper (.'anada Ihiildiiiij; Fund, had increa.sed, hy 
 unpaid arrears, from .s!('i(t(»,()(iO.0() to ue.irlv twice that amount. 
 
 lion. .Mr. M.\( riiKitsit.N : The n^veiuie diirini,' the six years prec< <lini{ the I'nion was 
 insuflicient to nu'et the re(piiremeuts of the I'rovince, and money had to he borrowed. 
 
 Hon. Mr. WodD; Ves. 1 mean to .say that the debt of the country was increased 
 enormously in the way J have mentioiie(l, 
 
 Hon. Col. (lli.VY: There is iig doulit that the debt of the country was increa-sed to 
 mnkc up this interest. 
 
 Hon. .Mr. Wood : We know that credit was taken, and tliat the I'.uildin,:; Fund has 
 been on compound interest since lf<.")4. We know that this has addeil to the debt, l)e- 
 cause it j^oe.s in and makes up part of the schedide of the debt a.s it aj)pears in the Public 
 Acc( units. 
 
 Now, to ascertain what portion of tlio Debt of tlu^ late Province- is composed of tliese 
 rxpenditures for objects exclusively locid, it becomes necessary carefully to examine the 
 history of each local asset, as well as the expenditure uiuler the Seigniorial Legislation to 
 which I have referred. .\nd lirst i will contsidcr : — 
 
 
81 
 
 •u - 
 
 licvrniic 
 
 t.l4, WJIH 
 tinllid. 
 
 ■<•, p;iv('s 
 ill tho 
 
 >r ( Mpital 
 li.-llllirllt 
 
 i|iiiiiiii'i| 
 hi' Ill.'lilc 
 
 I hi- il;iy 
 
 llllxl u|' 
 
 lliI.nilLrllt 
 
 <i^ 
 
 The tisxets irhich hare hren left hrfiiml hj Ikf IM>tn vhirh haiv hrni crfahl Jnr LiK'txf I'lirpnsfH 
 /;( IJiiclur, iiml fiinniini /Ktrt i{f tin fhlit <>/ l/ir Ititc Prm'iiw. 
 
 I. AVI.MKIt Citlltr IIitUHK. 
 
 Kh}ier Cnif. Vr»vlniiid JHniliirr.i jt^.ooo (to 
 
 .^cidiitit ( urn lit fur hiti r>st /lai'l l/trrcon \,'2'M 7U 
 
 i?:{.i.':il» 70 
 
 The whole issiu' of tlclH'riturcH iitidiT tliis liciul was, iiccoriliii;,' to tlic I'liltlii; At'coiints, 
 IHf»7, jHif,'*' l.l, i'!lil.'Ml.'.t7. mill llic aiitlii.rity ^'ivoii U I'J Vict., «■. 1 IJ. Of tlirsf, !=i'-',n(Kl 
 wore six per cfiit. I'mv iticiul il< luiilmi'-i. nr dflKUitiiiVH issued hy tlie I'liiviinc iiiiiler 
 iiiitliority of is Vict, c. It;}. 'I'lie reiniiiiiiii;; Sl'.»,'i71.'.t7 are eij,'lit jiev leiit. delieiitiire.s, 
 issued oil tlie credit of certain fees and collections inijiosed, and to lie made and set apart 
 for tlieir payment, liy (lie Act I'J Vict., c il'J, wliicli Act expressly dci lares that these 
 (h'liciitiiies dioidd not lie naid ' iit ot'( 'cnisnliilaled l>'e venue T'liiid ordtlicr exi>tinn funds nf 
 the I'rovince. 'i'lie rniviiice is Imund to s( e t(i the lUnpcr application of the niuneys set 
 apart, hut has lui other respotisihility. 'i'he collection df the fees, iVc, is in ihe hands nf 
 l^ueliec, and ill nialvin^' th.'ir award, the Aihitiatois may or may not notice tlie>e delieii- 
 tiii'i's. If noticed at ail, it idinidd simply lie to declare that it -lioiild lie the duty nf 
 Quehec to .--ee that the Incal tax oi- revenue coilrited was duly paid hvci' to thi' dehculure 
 liolders. 
 
 I make this rcniarh in reference to the .\ct. I do not sir thai any <il dilation 
 whatever rests iipnn thi' late l'i(i\iiice of ('.inad.i. It expressly dedans tli.it these deheir 
 tnres shall he no charge iipmi ("oiisnlidated lievciuie Kund. I siiiipose tliatin;^u(id faith the 
 Uovernnient ou;ilit to sec that the inconn^ is properly applied. As the otiiccrs who cen- 
 tred this matter are the oliicers of (^hieliec, the ulilinatioii rests iqimi tlioM' cidierrs, and 
 therefore upon (.^hielicc to see to it. that this Ad is properly carried mil. If noticed at all 
 by the Arhitrators in their award, as I ha\e said, it should he simply to deidare that 
 Quebec shall see to it — that the tax collected is paiil tiver to the delieiitiire holders. 
 
 I rrfcr hi'i/rm '.\ nf Mr. Liniiilcii's atntriiinit of iiss('t< fnnii.'ilird /e t/ir ylrhilrnlitr.t, /lyin/nt 
 in l/ir Sisslniin/ I'd/nr^ I'J L(i/i.</i(firr .issi'inhhi, isi')'.!, /'n/n'r Xt), 20, /kkji- '.V2. Mr. Jjitiif/lmi's 
 ''ylrliilrdlliiii," pii(/r I, "Cdini Hi/n.-^cs, Ijnri r CaiKu/it," rijilit p(.r cent. (IclKntiins ; dud to Ihe 
 tlalniK'nl (f the Jkhf (f the Idle l^rovince, I'nhlic An'onntn, IHGS, jmrt 3, pdf/c 70 
 
 T/ic diriiiiiil inrri lit, SI.'J.T.).70. is for ;iecuiiiiilations of interest on the six |ier cent, 
 dehentures reinaiiiin;; unpaid. The eiyht jier cent, dcheiilures tormina the tiist cliarj;e 
 on tlie income. These six jiei' cent, dehentures, .iiid the arrears of the interest, an- 
 a.sKumod hy the Dominion, and are chariicd into the Delit of the late I'rovince ; and the 
 Court lliiuse Fund owini;- the late I'rdvince for these dehentures, assumed }iy it, aii<l 
 lUTears of interest, hotli principal and interest hi'conie an asset of the late Province. 
 
 My meaiiiiig is, that these dehentures weiH^ issued upon the credit of the (.'ourt Hoiisn 
 Fund hy the late I'roviiicp ; they have lieeii a.ssumed liy the late Province, cliarf^ed as jiart 
 of its deht, and, therefore, now liecmne a local deht df Tjower Caii.ada ; and .at the same 
 tiint! all asset, because ultimately the Court Ihiuse J''uiid is lioiind td repay the aiiioiiiit 
 thereof. As to the <'i,<;ht per cent, dobentiires, a.s Mr. Lani:ton says, the l.ate Proviiicp 
 not being liable, tiny liave been struck out of the statement of the Delit of the late 
 Province. 
 
 ■J. Mo.NTUE.\li CtiuiiT Ihiusi;. 
 
 Sixjicv V(nt. Ikhnitures .?i)r),fi(»0 (id 
 
 Acmmt I 'itnrnt 18,99(5 2 1 
 
 i?114,f)9(i lil 
 
 These debentures were issued under the authority of the Act 18 Vict., c. 1(54. They 
 arc six per cent. I'rovincial debentures, and were issued on the credit of the income 
 provided in tlie Act, which was to be jiaid into Consolidated lieveiiuu Fund to relieve these 
 
deliontiiics, or rccniip tin' I'roviiici' t'i>r anything it might Imvi^ td pay dh their iiccount. 
 Of tlu! (Icljoiiturcs issued uiiiler tlie antlidi-ity of tho Act, $9r),G0().()0 remain outstanding. 
 These were ehargeil into tlie Delit of tlie late I'rovinee, and assumed hy the Dominion. 
 Tiierefoi'e. tile income of tlie Montreal Court House owes to the late, Pi'ovineo their 
 amount, and they theivhy become an a.sset of the late l^rovince. Tlir arrouiit current, 
 $lf!,',i'J(i.LM, is for advances made on acc(»iint of ^lontreal Court House, and is charged in 
 as part of the Debt of the late Province. It is a delit due from the Court Hou.sc income 
 to the late Province, and tlierefore an asset. I yfr ft, 12 Firf,, c. 112 ; 18 Fict., r. 1(14 ; 
 I'l'liii'' Aioiiiintfi, IS.")?, iiidjiA \h iui(/ .') ; Mr. ].,'iiiijtoii's Stakmcut oj Asscf-s, iti'iii'i 5, G, Pub 
 lir Arriiiints iSGf*, imrt .'?, j'"//'.' "I I. 
 
 ;!. l\.\Mnri;.\sKA Cm-irr Housk. 
 
 Under the authority of 1- Vict., c. 1 TJ, S-^,'.*.").") eight per cent, debentures were 
 issued. They are in preci.sely the same po>itinii as the eight per cent, debentures of the 
 Anliiii'i' O'urf IL'UXf. notici'il pr('\'iously. The late Piovince was not liable for them, and 
 therefore they are not an asset, and not tak.""!! into account in the delits or assets. Vidf 
 P. A., \^'u , p'i'ji' !.'. ; Ln)iiito}i\-i Shrfi'iiuitt of A^.<if<, itiia 7 ; Jjon(jton',i Arhitration, page 5. 
 
 Kamourasbi Court ILmsr Acomit Currrnt 8-01 -7 
 
 Defore the Building and dury Fund. Lower Canada, was establislied, certain charge> 
 for maintenance of this Court House had to l)e j-.aid liy Government out of the Ivainour- 
 aska Court House Fund, ])esides the amounts paid away on the eight per cent, debentures. 
 This amount, ^-I'l--", i-* Ji remnant of these charges ; it is a debt due from the Fund U) 
 tlie late Provinci', and therefore an asset. /'. .-/., 1807, ^''/'/c o ; J\[r. Liutfiton's StatrmciU 
 oj A.-<-^'-'t.^, it' III s. 
 
 4. JfoVAl, IxsTiTiTlDN. nthn-vl^.; ^M(.:Giij, CoLl.KdK 87,7!l(l On 
 
 This was a loan to McGill Collrge. It is a debt due from that Institution to the 
 the late Province ; it, tliereft)re. witli accumulations of interest, is an .a.sset of the late 
 Province. /-'. ^-/., \.X^)-), puiji .") ; Mr. L"iii/fijii',-i Stoti'iibnt of Assets, itmi 13 ; Mr. Lnxjton's 
 Arl'itrottiDU 1>"'J<- '">• 
 
 5. Co\so|.lDATKl> MUMCIl'.VI. Ld.VN FlND, LOWHI: CAN.VD.V. 
 
 Capild •J,4l'S,14(» OD 
 
 Jj^^>is >Shiki)ifj Fund 270,102 8(i 
 
 Short credited : r/(/c i^ublic Accounts, ISGS, part 
 iii., page 4 ; Public Accounts, 1807, page 2, 
 ■IS to Sinking Fund llo •").') 
 
 •J7l,4r)2 sr, 
 
 2,15G,G87 14 
 
 Interest in arroar 782,735 34 
 
 Short charged : ridi: Public Accounts, 18G8, part 
 
 iii., ])age 7 40 
 
 782,742 S3 
 
 82,03-.), 429 07 
 
 For explanation as to tlio Muiuci[)al Loan Fund, reference is raaih' to 28 Fict.. c. 13 ; 
 IG Fict., c. 22 ; 22 J'ict., c. 15 ; Coiisolidntcil litutiitc.'^ of Canada, r. 83 ; Public Accounts, 
 18G7, ;)a;75 3. In the latter it is ijiren under the head •'Lower Canada J/uuicipid Loan Fund 
 Account," at 82,428,140 ; and the Sinkinij Fund is found on page 2, on the opposite side, 'ird 
 item from hottom of page. 
 
 Rv reference to the Acts establishing this fund it vill lie found to be a scheme by 
 which Municipal debentures might be negotiated without loss. The Muiiici[)alities [lassed 
 bydaws for a loan, and issued debentures upon them. Tliese were deposited with the 
 
:{3 
 
 iU'count 
 
 •cs wore 
 
 ■s of tllf 
 
 '111, ami 
 . Vid^ 
 page 5. 
 
 13; 
 
 (!ii\criiiu('iu. ami uiKin lliiir ili-jm.-it the ('xiVfrmiu'iit issued Provimial JiInMiturcs liased 
 u]i<iii the crt'dit of tlio !Miiiiici|ialitifs, which wiir iicyotiatfd, and the pidctcds paid nver 
 to the Muiiifipalitif's. Tlic I'rov iiitc hccaiiU' ii'^fmii'^ililc only for the dui-ajiplii alion of thcso 
 dclifHtincs of thr moneys paid to it hy tlic Municipalitit-s. The Muniripanties soon made 
 th'faiilt. and, as a eonsi'(^ueiiee, the Muiiiei]ial Loan Fund del)entiiri's went into default. 
 In ts,"i'.l, liowever, the (Jovernment took up all these drhenturrs and suhstituted its own 
 i'or them, lieariiii;' li\e per fcut. intcicst. Siner that time loans, under the .Munieipal 
 Loan Fund Aets, have liceii diseontimird. 
 
 The .Miiuieipalities in Lppcr Canada who liorrowrd under thr I'pprr (.'anada Act 
 were ahoiit forty in uundier. and of tln'se some twenty aic in drfault. The defaulters 
 are not rural .Muui(ii)alitits, liut ehictly towns like Port Hope. I'.iautfoid, iVc. Recau.-ie 
 twenty Muuiiipalities were in drfault in I'ppei- Canada, an actual ehar--e upon the whole 
 tavahle ]Hipulatiou was made for the exclusive lienetit of ri()wer Canada of 8)], 2t)LoG8. 88, 
 And all this was done under the jueteiice and delusion eontaim'd in 22 Vict., e. IS. sec. 
 •JO (Seigniorial Act. isri'.l), tliat Upper Canada was to lie fully indemniticd fruiii this 
 larj^e sum. madi' a c!KU:.;e on the common exchiMpiei' of the 'ountry, 
 
 Tlie clauses of the Act to which I refer are as follows : — 
 
 I/iili iDiiifi/ III I'jijii.!' Cmidilii II hi/ fii till Tiiirii!>/iips nf I/nrcr Cuintdn. 
 
 " A sum of money eipial to that which under the foit'udinir provisions will he pay- 
 '■ aide yearly to Sriuuioi-s in Lower Canada out of l'ro\ incial Funds ovei- ;ind ahovc tiie 
 " anionnt paya!)le to ihrm out (if the Fund for the relief ot' the ( 'ensitaire- under the Seig- 
 "nicn-ial Act of 1S")| shall he jiayahle yearly out of the ('on>olidated Levemie Fund of 
 •'this I'l'ovince to the credit of the Tpjier Canada .Municipal Loan Fund, in reduction of 
 ••the advances that have been or may he niaile from time to tliae from l'rovinci;d l'"unds 
 •' (Ui account of the .said Fund ; Such payment shall not in any way extiu'.'uish oi- diminish 
 •'the individual liahility of the Municipalities, whii h '' i\'e hecomc indehtrd upon the 
 ■• securitv of the saiil Loan Fund, hut the said vearlv -uiu -hall, so soon a-^ the Province 
 
 eeas.'s to he under advances to the said Loan Fund. 
 
 to the ['jiper Canada Muni- 
 
 "eipalities Fund ((dei;uy reserve^) and he distrihute 1 in like manner : and so jon^- ,is any 
 " .Munici])ality shall at any time he in defaidt in any p.iynient whi-li oui;iit to have heeii 
 •'made hy it to the said Loin Fund. <uch .Municipality shall have no slia'c in the distri- 
 ■•Imtion of the (pper Canad.i Municipalities Fu»d (arisim,' from the clergy reserves) 
 •■ which shall he made while such .Municipality .s so in defudt. and the share it would 
 " (itherwise have had shall i;o to the other .Muiiici])alitie.-. The sunn ]iayal(le under this Act 
 "shall he in addition to the sum to he appi'opriated foi' loc d purpo<( s in Cpper Canada 
 " under the Seieiii uial Act of IS'ik" 
 
 Lower Can.ada s.aid ■ Ina-nnich as the (!o\eiumcnt of the whole l'ro\ince is re- 
 .sponsible f(U' the payim'Ut of the interest on the sums lioirov'd liy thesr defanltiu::; Muni- 
 cipalities, e;ive Lower Canada money to redeem its Seigniorial tenure, and ('iijier Canada 
 shall have compensation by carryiuL^ to tlie credit of the ..Munici])al Loan Fund of that 
 section, on account of the defalcations of these Municipalities, a semi-annual sum eipial to 
 the semi-annual sum paid on the cajiital of the Seieiuories t<i the Seii^niiois. So Lower 
 Canada got the large .sum I have mentioned nndei- the delusions hehlout in the section of 
 the Act I liave (|Uoted. Upper Canada never has got, noi' will it e\er get one didlar for 
 the pretendi'd indemnity given it undei- the .Vet cited All that it got, or ever will get, 
 for the .>!8.0(M).(l()(>.n() capital ad<led to the debt of the whole country by this Seigniorial 
 Legislation -was the sum of !?Gt(0,(Ml().0O carried to the credit of the I'ppcr Canada 
 Building Fund under Seigniorial Act of IS.'tb 
 
 t). Lk(;isi.ativh (!i:.\Nr, LiiWF.iv C.\n.vi).\. .\iivani k to Sn'i:i;i(ii; Fiit catih.n. 
 LOWKK C.VNA DA 828,41) b 73 
 
 The distribution of school nnmeys was provided for in an Act .as far back as Sth Vic, 
 to be found in the Consolidated Statutes of (V.uada. The jirovision was that school 
 moneys were to be apportioned between Upper and Lower Canada •■ in ])roportion to the 
 relative population of the s.ime respectively, us such jtopulation shot Id from time to tune 
 
 3 
 
 
34 
 
 1)0 a^an'taiiu'd liy the next pn^reding census in each Proviucc. Tli;it ist'uuiid in Ttli Vic, 
 cap. 9, HOC. 1 ; Consolidated Statutes of Canada, ca)). 20, sec. H. Tiierot'ore, the riixlit- 
 fulness of this charge is appai'cut. It was found, Mi-. Lan^ton says, on .LrninLC into the 
 school !.;rant in iSod, that iinwcr Canada had syste.uatiially overdrawn its M'iiouj moneys. 
 But as it was very clamourous fur money, of course the. Finance Minister M'as indui'ed to 
 let tills pass ; and, instead of diminishing the annual grants, a sejiarate account was 
 opened, and the result was at the Union an overdraft of 6i.'f^,l'.*1.7;). This item, then, is 
 a debt owing l»y the Lower Caiuida Kducation Fund to the late Pi'oviuce, for whicli I ppei- 
 Canada has had no equivalent granted, and it miw hecomes an asset. It is important to 
 notice that the school grants were always made according to the population of the last cen- 
 sus. Tiicre you have a rule laid dnun liy law iur th(> division of tin; Common School 
 Fund l)etween Upper Canada and Lower Canada. 
 
 7 QuEBKC Fiiii; Ldan. Lowki; C.vnada ^^I'GL'Jol.O."'). 
 
 This is tho, amount at whicli tliis Fund stands in the ])ooks of the late rrovince. For 
 explanation a.s to this item, r'ult Mr. LiiH/lun's Matnucnl of asscfs, item 'lO, and Mr. 
 LaU'jfun's (irhitroti'm. jKiijc ,• IHGT, ]iage .'5 : iHli Vic, cap. C,-2. 
 
 8. Tk.M 1S( orATA A DVANCK A(( ;uf.Nr !i?3.00f).0(). 
 
 This was an advance to certain Munici]ialities in the cainty of Temiscouata, on account 
 of the Seignioi-ial Indemnity coming to the 'i'owiiships. i'roper accounts of ihe expemli- 
 turc could not be obtahied. It therefore has not been charged again-t tin interest or 
 semi-annual pavmeiits on the Indemnity to the Townships. Hence it slai .. ..3 a debt 
 aL;ainst those Municiiialities who received the money, and is therefore an asset. Vidi' Mr. 
 Laiiijtnn's statement of a.iscts, it, in -11, jnili., urds. IS.')."), yw^r 5. 
 
 Mr. LAN<;itiN : In ISGi'i, liefore we knew anythin;; about Seliidule Four 1(. the B. N. 
 A. Act, we transferred this item to the debit of the Seigniorial Indemnity to the Town 
 ships, because it was an advance on the credit of that fund. AVe have had a great deal 
 of tiouble in ascertaining uhat Townships got it. But as you haviMletermined, wisely, 1 
 think, to go absoluirly by Si'heduie Four to tin B. "N. A. Act, tlw Dominion must restore 
 this ittin In it> former position, wiiich is ciiuivalent to adibng J-'^i.iKiu lo the sum of 
 !i?l.'50.:Vt7.H',) arrears of Seigniorial Indemnity to the Towiishiii--. l!ut the Capital of that 
 indemnity would remain untouched. It is aTown.^hip Indenuiity, and has nothing to do 
 with the Seigniories. 
 
 -Mr. W(Ji)r) : Of course that will lie the mannei' in whieii it will Ije treated by the 
 I)nniinion. But this 8L)<>,."M7.:5'.i arrears is an apt illustration of the inciea.se of the Debt 
 of the late Province l)y the Interest on tiie Capital. 
 
 Mr. Lanc'I'OX : If you restore tlie Item to the A.v-ets. ihr Dominion must add the 
 .same to the Debt. 
 
 Mr. W'ddii : 1 [irojiose to treat it as an Asset. I think tlie arliitrators are liouii'i to 
 do so ; and cannot see how they cmdd do otherA\ise, except by consent of p.-irties, it 
 being expressly named in the Fourtli Schedule to the liritish North America Act. 
 
 'J. 
 
 FnucAiioN Fast S290.10 
 
 This is a balance of a defalcation in the Fducatiou OfHce, Lower Canada. Jt is a 
 Debt owing to the late Province by the Education Ollice, Lower Canada, and therefore an 
 Asset of the Province. /7'/( ^fr. L'linjfon's iStat-'mod of Assets, itan '21? ,• /'. .7., 1SG7, 
 piige 3. 
 
 10. Bun.DiNi; AND Jury Fund, Lovvkk ("anada $110,47."). 51. 
 
 This Fund was established l.y 23 Vic, cap. 57, Consolidated Statutes Lower Canada, 
 oa]). 109, sec. 15. It was compo.sed of certain fines and forfeitures, parcentage on money 
 collected by the SluTifi's, and certain other local revenues. The Fund was to be dis])iirsed 
 in keeping in repair the Cmut llou.ses, ami in paying the Petit .Jurors in Criminal Cases. 
 Loans were made to this Fund from time to time by the Government of the Province of 
 
 ( k 
 
 i 
 
 l! 
 
O) 
 
 Ciina la, mi the credit n|' iis iiicnmi', until ut (.'oiit'cilcratiDu tliesc aJvanoos anioiuitfd to 
 the iihovf simi, wliicli it uwcd to tlie late, I'roviiict'. ami which, is tlid'cfurc an Asset, l-'^ule 
 P. A., i^SUr, piKjr ;} ; Mr. Lnii'jtoiis Statiiiunl nf A.-si^rts, ifnii. 1*4. 
 
 11. 'MrNK'ii'Ai.rriKs FrNi>, Lowku C.w.vd.v 
 
 S4St,-21l.33 
 
 This Fuml was created liy IM Vic., cap. 2, sees. 1 and 2, an Act 1)etter known In' the 
 title of the Cler;j;y lieserves Act. After a Ljreat deal of aj,dtation in tliis country, on the 
 .subject of Itelif^ious Endowments, the Inijierial Govcrinnent, liavin,;:; in the first settle- 
 ment of the couiitiy, set ajjart a certain ])ortion of the lands of tlie Provinces of Tjiper 
 Canada and J^ower Canada for the support of a I'rotestant (.'lerLry, granted the Legisla- 
 ture of Canada power to deal witli this (juestion, under certain limitations. Lower Can- 
 ada, from its Ecclesiastical A.ssociations, did not feel disposed to divert the lands from 
 the ])uri)oses for whicli they had been set a]iait. Imt it liad a grept interest in relation 
 to the Feudal tenure or Seignioral rights, which it wanted to do away with. So with 
 a view to getting the co-operation of certain jiarties in I'pper Canada, to do away 
 with tlu'.se rights, it agreed to join witli those parties to settle the vexed question 
 of the CItM'gy lieserves, which had been a jiolitical stalking liorse for many year.s. 
 The result of this was, that the Act of L"^.">f was i)assed, wlieieby it was enacted, after 
 providing for the payment to the widows of certain clergymen, of certain pen.sion.s 
 and stipends, making due jirovisioii for the vested rights of incumbents and all other par- 
 ties, by setting apart a cajiital, the annual interest on Avhieh should be sutHcient for all 
 tlu'se purposes, that the residue of the monies already realized, ami which should ari.^e 
 from all these Clergy lands situatt'd in Cppei' Canada, should form a fund, to be called 
 the " Upper Canada Municipalities Fund ;" and in Lower Canada, the " Lower Canada 
 ^runicipalities Fund." Lower Canaila had the beiielit of all the Clergy Laiids situate in 
 that I'l'ovince, and Upper Canada to all those situate in it. And the Act ])rovided that 
 the Governor in Council shouM ilistribute the net proceeds of the fund, after jiaying all 
 expenses, amongst the ]Miinici])alities according to population. The intention of the Act 
 has iiever been changed. iJateiiayers have lieen sitbstituted for population, becutts(; the 
 machiiH'ry for ascertaining the number of ratepayers annit;>lly. Avas in existence under 
 our nuMiicipal system, but that of population could only be known l>y the census once in 
 ten ye.nrs. iudge I'ay says, iu s]ieaking about jinpulation. thai it was pi'ovided the Muni- 
 cipalities Fund shoidd be (iisti'ibute(l recording to the nuiubi'r of ratepayers, not accord- 
 ing to popotdati m. He is mi-taken. The oiigiual Act jilainly i)rovides f(U' a division 
 according to popui,iti;"i. IJiit as you could not have a census taken every year, and as 
 yon had the ratepayer.-. li-L made u]) every year, the mode o\' division was changed, and 
 it was provideil that the distribution should take place in Upper Canada each year, accor- 
 ding tn the mimber of ratepayers retarne(l upon the assessment roll, under oath, by 
 the clerks of the municipalitie.s. IJut originally both the Connnou School money and 
 the Clergy IJeserves mor y, were distributed according to popidation. 
 
 This laige iiidi'bte(lness of the fund arose f'"ini advances made l>y the late Province, 
 to .several muuici[ialities, on the cre<lit of the fund, and .Mr. Langtou says that about 
 $30,0^10 more, has been guaranteed by legislation to others, but has not been i>aid. 
 It is also well to note that by 22 Vie., cap. IS. sec. 11, sub-sec. .?, Seigniorial Ai;t 
 of 18")'.», in providing for the abolition of the Seigniorial teinire in the Seigniories 
 belonging to the Seminary of St. Sulpice, it was provided that for the relief of the 
 {'V/;5/7(//m>.-, ,$140,000 was to be made a dii'ect charge! on Consolidated Kevenue Fund, 
 and the residue of the value of the dne.s, after deilucting the value of the rights of 
 the Crown, was to be ]»,iid to the Seminary, out of the I.iower Canada Municipalities 
 fun<l (arising from tlu' Clergy lieserves), after paying the charges on the fund under 
 20 Vic, cap. 44, and the Acts amending it ; l)Ut if, at any time, the moneys in the 
 liand.i of the lieceiver-(!eneral belonging to this fuiul, were insutficient to pay six per ciuit. 
 on such balance, advances were to be made out of Coii.sididated lievetme Fund, to be after- 
 wards repaid out of the said fund. The Italance of the value of the capital of these Rentes 
 was81'.M),71*.>.()G. The Tiower Canada Miuiicipalities Fund never had, nor will iteverhave, 
 any nutans to pay this sum. or the interest on it at six per cent. liesides, Mr. Langtou liOvS 
 imhided it in the capital of the Seigniors in making up the debt of the late Province of 
 
36 
 
 Caimda. 1 have, tliercfon', dcdiictiMl it i'ldia the I,n\vci' ('an;u! i Muiiiciiialitics Fiiinl, and 
 iiidudi'd it ill the S('iu'iiii>rial (a[>ital, under the Ait dt" If^.'i'.) accurdinj; t" tlic .-uhjouied 
 statement. 
 
 MuiiicipaliticK Fimd. L. C. as per Public Accniiiits, IbtiT. iiait, 
 
 II., pa-o 7:5 :.... !?484,244 .*5;5 
 
 Less — Pai'fcdf cai)ital(il' .S('i,i,'iii(pri('s (if St. Siilpia', 
 
 charged in the (h'bt. of the hitc Province, 
 
 as ]iai't (if the cai)ital of the Seigniories, 
 
 under Act <.f l^:>'.t "! •'i?! '.xijl:) M 
 
 " Interest theivon, fi'om the Ith .M.iy, l.^.")!i, 
 
 toSOth.Tune. isr,(; '. SL>,i!l."') ',17 
 
 " Interest frniii ;;(itli June, 18(50, to tlie iidth 
 
 .lune. ISlw l;V.'4f^ -f^ 
 
 --".i-j,!!!;; ;ii 
 
 r.) 1,330 42 
 
 12. LoWKi; Canaiia Si ri:i;itui KmcAiinN Inco.mio Fl'm.). 
 
 Advances made frnni time to time Ity tlie kite Province to 
 Superior Kdiication L. C, on the credit of th" 
 Superior Ivhication Fund, L. (.' $230,0.^1 4(5 
 
 Interest on Investments 3,000 00 
 
 8234,281 10 
 
 There are two education funds in Lower ('.-uiada. corre^]Hindiiig in tlieir nature to 
 the Uppi'r Canathi (Iiamniar School Fund and the I'pper Canada (iianuiiar School Income 
 Fund, namely, the Lower Canada Supeiior Kdiicatinii Fund, and the Lnwer Canada 
 Sujieriur {''ducatiou liieoine ]''und. hi hnth cases the iiieunie funds spiing diiectly fruni 
 t!u^ funds themselves. 'I'he iiiteiitiim nf the several Acts of Parliament under which tliey 
 Avere estaldLshed, was, that the funds themselves should remain intact and unimjiaired. hut 
 that the income derived from the funds should he e.\]ieiided, in Upper Canada, in aid of 
 the Tlpjier Canaila (irammar Schools, and in Lower ('anada, in pinmotinii of Superior 
 [•Iduc.ation. The Superior Ldiication Fund in Lower Canada is compo.sed, amongst <ither 
 assets, of the ca]iital nf the estatis in Lower Ca lada helonging tn the late order of the 
 Jesuits, and ciTtain unexpended moneys remaining from the annual Cnmnion Scliool 
 grants. The (;o\ei'nniciit retained the capital of the funds, and allowed interest on them 
 with h.alf-yearly rests, which it cairied to the credit of the income funds. Sujier ior Ku- 
 cation in Lower Canada was always clamoi'oiis for money, and from time to time it per- 
 .suaded the (Jovernment to make advances on the credit of its income fund ; alleging, tliat 
 in time th(> proceeds of its capital wouhl enable it to jiay ofl' these advances. The 
 language of the appro))riations was, '• AiJrunri:. In Snjin-inr EilnrHlhui, Lvfcr ('iukuIii." 
 
 These adv.inces accumulated, until at Confederation they amounted to $230,081.40. 
 
 P)oth in l'])per Can.ida and Lower Canatla, tlie Government saw lit to make some 
 investments on account nf tht^ capital of these fuiiils. On account of the Superior Fdn- 
 cation Fund Lower Canada, the (Joveinmeiit invested in the City of Hamilton i)ebcntures 
 $10,000, and in the debentures of Huron and Bruce 810,400 ; and dn account of the 
 Grammar School Fund in U])per Canada §."i(i,000, also in the (,'ity of Hamilton Del)entures. 
 
 Mr. Langtnii. in making up the debt ami assets of the late Province of (Canada, which 
 was officially communicated to the ( Jovernments of Ontario and C^Hieliec on the Litli of 
 September, 186S ; (vide sessional papers of the Dominion, 1808-0'J, vol. 1, part 2, paper 
 No. 8 page 7; and session.al papers of Ontario, 1801), vol. 2, paper No. 40, page 14,) ])rop- 
 erly stated Superior Education Fund, l,ower Caiuuhi, and the Giaminar School Fund, 
 Upper Canada, as follows : — 
 
 Superior Education, L. C, Capital Fund $377,2.')1 n3 
 
 Superannuated Teachers' Fund 2,700 88 
 
 Normal School Building Fund 01,701 84 
 
 $441,714 25 
 
 ( ■ I 
 
 «l 
 
37 
 
 Less — l>fl)t o\viii,L; to tlic I'rovinct,' hy Supriior Kiluciitinii 
 
 Inconio Fund .'. $j;jO,niSi 40 
 
 " [nvcstiiiouts— City (if liainiltoii Dclifiitiiivs Ain,()Ol( 00 
 '• '• Hiiioii iiiiil llriicc Dilifiiturts lH.loooo 
 
 2',»,100 00 
 
 Arrears of interest City of llamiiton DelH'iiture.s .'{.HOO 00 
 
 " Le-islative (Iraiit .' 2S,1'.)| 73 
 
 " Advance Aceount 'JUO 10 
 
 ■2\)-2,\W '2',) 
 
 Balance cliai'.Ked in tlie debt of Uk; late I'rovinee i?! 40,-JI7 !tG 
 
 ('iiix'i' Canada (Jranimar Scliool Fund - - i5r;2,7r>li.O t 
 
 Less — Jn\estinent in Citv of Hamilton i)el)rntures - :)0, 000.00 
 
 11 
 
 alanrc cliai-L'ed in the del)t of the late I'ldvince 
 
 U2.7G0.O1 
 
 II will lie oIimtvimI that I)}' the fore,i;oin,i; statement of Superior Hduratio)i Fund, Lower 
 ('.lu.ida, only 81 t'J.'J 17.90 was dnu;i;i'd in the debt of the late Provinee, as owing by tho 
 Province toSupeiior education — the advances to that fund by the Province, uith the in- 
 vestments, re(lucing it to that amount. l!ut <,_hiel)ec took exception to tlii>, and conteiid- 
 Ivances should be triiateil as an asset, inider the fourth .schedule to tlit^ B. 
 
 ed tlltlt the>e ai 
 
 N. A. Act, aiul that Supeiioi' Fducatiou. Lower Canada, slimdd l)e a creditor of tli(^ Pro- 
 vinci' for the total capital of the fund, less the invi'stnieuts. This was assented to l>y the 
 Attorncy-Cleneral, the effect of whicli wa> to increase the <lebt id" the late l^i'ovince by 
 Sl'.'iO.ns'LIO, the advances made ; and aUo by .-^.•J.C.OO.OO, arrears of interest on the City of 
 Hamilton Debeiiture.s, which, although not i)aid, had lieen credited to the fund. At the 
 time thi-i change was nia<le, ] thought it unjust to Ontario, and sub.-eijui'iit retlection has 
 only coutiiined me in that opinion. It was aigued liy (^huliec, that the>e adv.inces were 
 maile, nr)t on tlu' credit of, oi' to ihe capital of. Sn]ieriiir Ivlucatiou, Lowit Canatla, but 
 on the cnidit of. and to the incmne fmid, and tliat. thcicfore, thev could not be charged 
 
 airainst the fund itself. liut the lai 
 
 mua.uv o 
 
 f the 
 
 itute, asnle from the connnon sense 
 
 of the transaction. 
 
 IS t( 
 
 ■.\[ilicit to admit of doubt. However, as this has been .settled 
 
 in the manner I have stated, it is u.seU'.ss to pursue the subject i'aither. The !?-''54,"281.40 
 is classed among the a.sscts to be divided, and the delit of the late I'ruviiuje is to he in- 
 creaseil by that amount. 
 
 le reason this item was restored to the assets was, that it wa'' 
 
 ;t 
 
 Ml 
 
 ,.vn(;t(in ^ 
 
 Tl 
 
 named in the fourth schedule to the B. \. A. Act. 1 pointe(l out at the time, that if i 
 was restored to the assets, then it woidd have to be adiled to the debt ot the late Province- 
 It is like tho item " Tt-miscouata advance account," — is a debt owing to the late Provinct; 
 by Qui'bec, and in the division of the as.sets on the priiudph^ adoiited by the arbitratons 
 will fall to t^hiebec, wliich can coile( 
 Education Fund, Lower Canada. 
 
 t it from the income arising from thi' capital of Suiierior 
 Ti'catiu'' it in this wav, increases the del)t of the hiU^ 
 
 Province by $234,281.4(1. and at the same time incieases the assets falling to (Quebec l)y 
 that amount. 
 
 Mr. ^\'(lOll - Kxactly 
 
 aiK 
 
 I that is what I comiilain ot 
 
 I 
 
 con 
 
 tend that 
 
 th 
 
 as tin 
 
 money was loaned to the fund itself and not to the income deriveil from tin- fund, it 
 .should have been made a set-oif to the fund, and tlien-liv relieved ( )ntario tVom contribut- 
 ing towards the i)ayment of that sum added to the 
 
 it of the late Prov 
 
 nice 
 
 13. Kr.disTit.vTioN Si'.iivicr.s, L. C. 
 
 This amount is owing to the late Proviiici 
 
 ,:i2L3s. 
 
 This item is not found among the as.sets mentioned in the fourth .schedule to the B. 
 N. A. Act. In fact, it was not in existence in isii'), from the. Public Accounts of which 
 year, the schedule of iissi-ts was juepai'ed. It is pieciscly analogous to others included in 
 the scheiUde, lieing for advances to a sp(!cial fund. However, as it is not mentioned in the 
 schedule, and as it may be as well to adhere strictly to that schedule, 1 think ou the 
 
38 
 
 whok', it, with the item Kcvcmic IiisjK'ctdis, U. ("., in ( )iit;irio'^ stiitcnu'iit of del it atid 
 asst'ts, iilso not appearing in si'lutlnlc Inur, had hcttfr he struck ont, IraviiiLC it witli tlic 
 
 r'oTiiiniiin to cnlicct thi'si; ilclitt- 
 
 aiM 
 
 I ircdit tiifiraiiioiint on thi' didit of tiic late rrcp\ii 
 
 lit'. 
 
 That will lif i\fi'piiij,f .itrictly within the statute, and remove all i|Uestiiin as to jiiri^lic- 
 titui over these items. {I'iiii Mr. Laiiijf"i('s SI ilciiii iil nf .Isntis. iliui ^i. I'lO.) 
 
 Col. (!u.vv — What do you say in resptrt . '' tlw (^Inelicc Turnjiike 'I'liist <le]ieiitures ? 
 
 Mr. A\'(H.i.- Tl 
 
 lese 
 
 delientures are an investment mad 
 
 e on aeeii 
 
 nut 
 
 School Fund, amounting to, principal, .S.'if^.dlKi ; and arrears nf interest thei'e 
 The subject of the Trust, are certain roads near 
 
 the 
 iin, 
 
 the citV iif (.>Ue'i 
 
 omninii 
 
 ?'2lt,r)S(l. 
 
 At one time the 
 
 Trust Avrs solvent and iiaid its lial'ilities ; liut interesteil parties from Lower Canada, in 
 the House, induced the Li-ghslatiU'e to couple with it, certain I'oads on the south side of 
 
 tl 
 
 le river, and so encumliered it tliat it is now hopelessly insolvent, and these ilchciituies 
 arc siipiiosed to ])e worthless, luileed it would ap[)ear that such was its condition when 
 Lower Canada induced the Government to make the investment in ([uestion, as no interest 
 ha.s ever been paid on the debentures, it is proposed that the aninunt of these 
 debentures, with the acLuninlaMons of interest up to Confedeiatinii, shall bo deducted 
 fnmi the Common School Fund, and held by the Dominion on account of that fund, and 
 it has been so treated in the i'liblic Accounts, and in the statement of the ilebt of the 
 late Province of Canada, made up bj the Auditor. 
 
 Mr. TiANtiTON' — The two principal investments I'm' Tiiist Funds, were the debentures 
 of the <.,iuebeo Turnpike Trust, on account nf the Common School Fund, !?.')S.()riO ; and the 
 city of ll.'iiiiiltdii debentures, on acH'oiint of Superior Fducation. I^nwer Canada. ."^Id.ddi) • 
 theUpper Canada (.Jrammar School Fund, 8''''<i.t)00, and the Cpper Canada ?)uil(ling Fund, 
 $30,000, .inil Sl'J,-fOO in Jfuron and I'ruce debentures, on account of Suiierior Ivlucatioii, 
 Lower Canada. It was the practice <if the (Jovernmeiit, whether it r'"jeive 1 the interest 
 on these investments or not, to credit the funds with the interesi, ami if not paid, to 
 charge the interest to the investments. Therefore, in adjusting the.se funds, the interest 
 hi arrear having been credited to the funds, must, along with the piincipal, be deducted 
 from the cajutal df the funds. This has been done with resix-ct of the city of Hamilton 
 debentures, which will be handeil over to the respective I'rovinces to which they belong. 
 There i.s no difilculty in thus dealing with the>i' dehentures. as they are not meiitioneil in 
 the fourth schedule to the ]}. N. A. Act. Tint this is imt the case in respect of the Que- 
 bec Turnpike Trust debeii .es. These are mentiniied in the fourth schedule, as an asset 
 of the late Frovince to be divided. I think these must be treated as an otlVet to the 
 Common School Fund. 
 
 Mr. Wixilt — They have iioeii ,■ 
 page 70— Public Accounts of lf<(i'.). 
 
 Col. CJh.W — If (^hieliec were repn-seiited here, innbably some agreement might be 
 come to as to the mode of dealing with these debenlures. but as we are [iroceediug i.qmrf'' 
 we must conliiie ourselves strictly within the terms i.f the reference. 
 
 Jlr. Lan(;ton — If yciu include the (jluebec Turn[iike Trust debentures in the assets, 
 it \vould seem logically to follow that you ought also to include the city of Hamilton 
 debentures ; either Iwtli shouM l)e in, <ir both left out. 
 
 Mr. Wcoii — I do not feel any ditiiculty in disposing of these debentures, as I shaU 
 be able to show when 1 come t(» speak of the Common Sidinol Fund. In the meantime 
 I will simply say that I propose to make them an oll'set from the Ctmiinon >School Fund 
 and let them remain with the iKnninion along with the fund, and wha^ 'ver is realized 
 from them (if any thing) to i;o t(j the credit of the fuiul, and to be distriiuited between 
 the two Provinces, as shall be pinviiled wit li respect to the annual income derived frnm 
 the Common School Fund. 
 
 Mr. .Ma(|'HKI!SuN — Was this investment made under autlmrity of any special Act 
 of the Legislature ? 
 
 Mr. LaN'.;tox — X(i. It was the arbitrary act ef the Government. 
 
 ^Ir. V.'iKii) — i ■'.■• V"^ think it expeilieiit to pursue this matter further just now, as 
 
 leak witl 
 
 I. as vou wil 
 
 by J'efereiici' to part [], 
 
 , Vt 
 
1 
 
 39 
 
 if ,111(1 
 
 Ith tile 
 
 luisdic- 
 
 iitiircs I 
 
 oiiniioii 
 
 ■-".i.TiSO. 
 
 tlie 
 
 :ii|;i, in 
 
 .-iili' of 
 
 •utuivs 
 
 wlieii 
 
 iiitoi-cst 
 
 ihcsf 
 
 luctt'd 
 
 l.aiul 
 
 <it' tin- 
 
 it will ((lint' iii> a^ain when we {.■uinv td llic Coiniiioii ScIkiuI Fund, ainl aiicar.s outstanding 
 on Common Sdinol lands. 
 
 11. Skkinoiki.m, Find unuki: A( t 1851. 
 
 .S('igiii(jrial capital arising tVoiii the (apitaliza- 
 
 tion at (i per cent, of tlie aviTaj,'t> income of 
 
 the Crouii Si'i!.niioiy of Laiizon, for tivo 
 
 years prcc('(linu; the ])as>iiig(if the Act, lieinji; 
 
 an annual avera.LTe Slim of 12,9r(l ('..") 215,800 .S'"» 
 
 Seigniorial capital arising from t In 'caiiitalizat ion 
 
 ot the annual inconif fnuii Tavern and other 
 
 licenses, L. ('., iiascd on the average annual 
 
 niveiuK! of live years preceding the passing uf 
 
 l.lie Act, being the sum (d" ;}7.115 0| niS,,^)S,') .'i.") 
 
 eoO.OGG iw; 8'~^ol,lH -10 
 Direct charge on consolidated revenue for which 
 
 IJ. (.'. has an ei|uivaleiit coiiipciisatioii, Viut 
 
 which the Auditor did not hriiig into the 
 
 I'ulilic Accounts till in ISCG ' 000,000 00 
 
 Deticiency of alio\'e local ivveiiiies to pay H per 
 
 cent, on caidtal. S.'U.ltt 40 duriiiL,' the 
 
 period from ls,-.4 to l^iCi? S0,201 00 
 
 Total i?l.r)ii,(;jr. k» 
 
 The.se items re([uire explanation, 'i'he Seigniory of Ijau/.oii was a frown Seigniory, 
 and its revenues lieloiiged to the whole Province of Canada just as much as any reven- 
 ues (h'rived from Crown lands in Upper Canada formed jiart of the general income of the 
 whole country, irrespective of the fact that they were derived from lands situate in r])per 
 Canad... 
 
 Mr. Lanctcn — ^'ou are mistaken. It was not a Crown Seigniory. 
 
 Mr. Wool)-- I am not mi.^takeii. It was in fact a Crown Seiirniorv. Long liefore 
 
 tlU' I 
 
 nioii in 1^1 1 the revi 
 
 enues ( 
 
 lerived from it went into tlie general e.'vclie(|ner of Lower 
 Canada ; and the L'niou Act of 18-lrOsays that all (luties, rates, and revenues, which were 
 payahle to the respective Provinces at the L'nioii, should he the duties, rates, and reven- 
 
 ue 
 
 s of tiic uniti'd Provinces, forming the late Province of Canada, suliject to the cliai 
 
 thereon previously made hy the Legislatures of the respective I.Yovince.s. 
 
 It is (piite true that the Seigniory of Lauzoii formerly beloiigeil to a private in- 
 dividual. Sir dohn Caldwell, at one time the lieceiver Ceiieral of Lower Canada, who lie- 
 came a defaultt'r to the Crown to a large amount ; and in mak'ing up his defahatioiis the 
 Seigniory of Lauzoii was estreated and became Crown projierty long prior to the L'liion in 
 
 IS-tl. N 
 
 o doubt in law, ;uid in fact, it -was as much a part of the ( 
 
 rowii ilomain as were 
 
 ai 
 
 ly Crown lands in Lpjier Canada or Lower Canada, and the revenues arising from it, a- 
 
 much Crown revenues as anv dollar collected on the sale of Crown lands. 
 
 M 
 
 r. Lanctox- -I'pper Canada consented to tlie.'^e revenues being eoiisiilered local am 
 
 d 
 
 to ludong to Lower (Janada. 
 
 iMr. Wdiio- 
 
 at is quite true. I ppei 
 
 'anada was perfectly willing to make thi.- 
 ial Act of 1854 would put an end te 
 
 concession, if the means jirovided by the Seiguioi 
 
 the troublesome (|uestion of feudal rights in Lower 
 
 bird the Act which treats these revenues as Kical. and as beloiitcing to Lower Canada. But 
 
 Canada. I do not projiose to go I 
 
 JC- 
 
 I Tiiention it as being a large item of revenue given up by Upper Canada, for which tl 
 
 lere 
 
 (•as no i)retence of giving :!'iy ecpiivalent. 
 
 In respect of tavern and other 1 
 
 icenses tormau 
 
 the residue of tie' local sources o 
 
 revenue, I may .say there is no controvcr,sy about these belonging to Lower Canada. The 
 Acts, 8 v., (;. 72, and I'i V.. c. 18 L with other Acts put this lieyond (|Uestion. 
 
40 
 
 ti 
 
 I will now |ii()(ir(l to tlir (xaiiiiiiatioii of llir Si i,i;iiioi'ial Art of ISJt. IS \'., c, 3, 
 with tlu' vit'W til' di'iiioHstiatiM;^' tiiat. Lower Canada must lie fliai'ij;(Ml in its local cxiiciuli- 
 tiirc with till' thrt't^ .snni^ nanii'd iind<'i' the head of '• Si iiinii'i-in.} Fiiml innli'r Jit uf j.sf)}." 
 Asa foundation for thciiriruimnt, I do.- ire to present on this point, I refer speeially to tht* 
 follow in;^ sei'tions of the Ail. 
 
 •■ Wll. The einolnnient.^ and disiinr.>enients of the ( 'oniniissitnuM's who shall hi- a])- 
 '■ pointed under this Aet, MJth the expenses to he incurred niidei' ihe siiine, .shall lie paid 
 " fiiil of the ( 'onsolidated Ue\enue l'"und of this Province hy wariant of the (ioM'inor : 
 " anil a sum, not exceedinu' in the whole what >liall remain of the amount hereinafter 
 " limited, after dedurtinj, therelVom the >aid eniolnments, dislnirsements and i;.\penses, ma 
 
 may 
 
 likewi.se 111' paid out of the said fund for 'ihe ]uirpoNeM of this Aet ; and it shall li 
 lawful for the ( io\ ernor in ( 'ouucil to iau>e any sum or sums, not exeeediii;;' in the whole 
 the >uni re(|uiM'd li.r defrayiiiL;' thr expiudituie authorized liy tin.' Act, to he I'uised hy 
 
 (lelienlun 
 
 to 1 
 
 le Is.-^ueil on the el'ei 
 
 lit of the said ( 
 
 oii.Miliila 
 
 ted Keveiiuc l'"und. ill such 
 
 foiin. iieaiiui; siudi rale of iutere.M, and the princijial and interest whei-eof. shall he pay- 
 aide I'Ut of t he >aid fund at siieh times ami placo. a.- the ( loveiiior in ( 'ouucil shall think 
 nio.-l ad \ ant aqueous for the puMic intfiest : and ihe money.- so raised as aforesaid shall 
 malxi' part of the said < 'ousolidati'd lv'i'\riiue T'imhI oI' this l'ro\iiici': rnisidnl alway.- 
 
 that tile total aiuouut of mone\s t 
 
 1 lie pan 
 
 .\i t. .-hall uol exceed li\ more tl 
 
 I. whether in m 
 .1 
 
 iille\ or t 
 
 lilieiilures, under this 
 
 w hidi I lie average yearly pi 
 
 Kin one huudivd and titty thoiis.iiid pounds, the s 
 
 um of 
 
 ds ot the other sources of rc\enue hcreinal'tcr luentioued 
 he last tive years), would he the yearly interest at six per cent. 
 
 (upon an average 
 
 jier annimi added to the \alue of the ('rowu- riL;,hls in the Sei'.;iiiories allecti'd fiy this 
 
 .\ct." 
 
 that all Seigniories are included in this Act exce})t 
 
 ad 
 peases 
 
 will jU 
 
 ,t 111 
 
 iser\e 111 jiassiu;. 
 
 tllo-e which are spec iall\ exce|ited 111 >ectliin tWelltyf 
 
 he. 
 
 Ti 
 
 le section w liicji I liave n 
 
 iro\ ich - that the ( !o\ ci'iiiiiiit -hall liist ii.-i\' the eiiiolumnit-. di-hur.-enieiits and ex 
 
 of tlie I 'oniniissiouer.-, and ajiply to the extiiiu'i'dinicnl ot' the Sei^ri.iorial rights and dm^s 
 the lialance of the t'und cre.ited li\ the .\ct. '1" . ii fund eon.-isted of two hi-aiiches. The 
 tir>t hraiii'h was a charge iii Consolidated lie\eiiue Fund, eijuat to the ve\ iiiues arising frmn 
 the Sei;jnioiy ot' 1. all/on, .md ta\ern and other liceiis"s, capitali/i'd at six per cent, per 
 annum, upon tlie avciaue produce tlurcot' of the live ]ireoedin<,' ycir.- : whicli produoeil ;i 
 
 capital ot 
 
 1. 1 t I. in : :iii 
 
 I the otlii'i' hraiich consisted of a direct charge mi Consolidat' d 
 
 lie\enue Klllld, to ail extent not exceeding .SlUlO.IHMl. For hoth these slims I'pjier C 
 
 le.-pect of the til'-t hraileh 
 
 an- 
 
 llV tlio 
 
 ada was to receiNc inileniiiii\ , Ml' an ci|Ui\alcm: in le.-j 
 |iayment into the Consolidated KeM'uuc Fund, of ihe local revenues] have mentioned, 
 .ith an eiiniv.ileiit sum to I'pper Canada, for anythiiiji' these revenues should fall 
 
 short o\' the .'siimated annual 
 
 receipts ; and lu respect of tl 
 
 md hranch. hy .set- 
 
 tiiii;- apart for local ]>urpMses in I'lipcr Caiuula an et|ui\alent sum. This will apjiear 
 jierfeetly clear from sect 
 
 Ion emllteell ot tlh 
 
 .\it named, immediatelv tollowinu' the section 
 
 1 1 
 
 Kue 
 
 just I't 
 
 lo VoU 
 
 Will. The nionevs arisius;- from the foil 
 
 uwim:: soi 
 
 irces of revenue, shall he and 
 
 illy appiopiiated, to make j:ood to the Con-olidated Kevemie Fund, tl 
 
 are heleiiy sped 
 
 anumnt which niav lie taken out of tlu 
 
 .1111' 
 
 u- the purposi 
 
 iarj;ed upon it uiulei- tl,e iiexi prc.ediUi; sei'tion. that is to say: 
 
 All nionev.- arisiiiLr t'loiu the ridn 
 
 the t r^wn troin 
 
 droits 
 
 lilies in or upon the Seimiiories in which the Crown i> Seii^iiiiir dominant, and which 
 
 le 
 
 I vim: the sums 
 
 t.'uint." and other 
 
 are 
 
 to l 
 
 >e eommu 
 
 ted liv thi- Act 
 
 a.- such \alut 
 
 diall he fixed hv the seheduh's of the said 
 
 Seii;niorics re-pectively, and all arnars o[' such d 
 
 ues 
 
 All 
 
 re\eiiues a 
 
 rising from theSeipniory of Lauxon, or from the sale of any pait of 
 the said Seieniory. which may hereafter he sold, and all arrears of such revenue- : 
 
 •■ All revenues arising from auction duties and auctioneers license- in Lower Canada: 
 "All monies arisiiii;' in Lower Canada from licenses to sell spirituou-, vinous, or f(>r- 
 mented liijuors hy retail, in places other than place- of puldic entertainment, oomuionly 
 called slioii or store licenses : 
 
 All 
 
 monies winch shall arise from tavern licenses in Lower Canada after th 
 
 pr^ 
 
T 
 
 nit. cliarLit's on tliai riiml .^liall liiuc liccii paiil nil', i\ri'|ii, lii)\\i'\ci', sm Ii ]iiirtinii of tliat 
 t"tiii<las .'^liall ])>' Icvifil in the '["nw iislii|p^. 
 
 "And scpaiat" accniiiits shall lie kr|it of all nmnics aiisiiiL; frnm tlir mihici's nt' rev- 
 iMiiii' atorcsaiij, and of I lie ludiiirs disliurscd inidci this A( •, alluw in^' intcrcht (m Ixith 
 aidts, at the then iMiiivnt rate <in l'ri>\iiii ial dflirntnri's, tn tlir rnd tli it if tin- sums ]iay- 
 altli' Hilt (if till' ("nnsdlidatf 1 IIi'M'iiiir Fund, under this Act, shall rxtrt"! in the wlidlc the 
 total iinioiint of tlic sums iU'isiM,i; tVoni tln' souncs of ivvmiic so s]M".'iaIly a|i|iiu]iriatcd, 
 and any iiiti'i'ost allnwcd thereon ;is al'oresaiil, a sum e(nial to such excess, may and shall lie 
 ;<(!t apart to lie aii]Ho])iialed hy rarliaineiit to some local piupo-e or juirposes in rpper 
 Caniula." 
 
 T c,dl particular attention to the last paia,ui'apli of the above section. The lan,i;iiaj,'(' 
 ^s toiM xplicii to admit of any donlii. In so tar as the local re\cmies fell short of payiiii^ 
 six ])er cent on their estimated capital, to that extent, 1 p[ier ( 'aiiada was to havr an 
 crpiivalent sum s(>t ;i]>avt for its local iiurimses ; nay, more, for every dollar draw n from tliu 
 (.'onsolidated Kex enue Fund, and not re-placed liy these local I'eveniies, I'liper (.'aiiada was to 
 have a full e(|uivalent, in alike sum heinn' set apart for its local purpose^. Let this fact lie 
 thoroii^ijhly understood, and it will very much facilitate the conipiehcndiim of the aru'H- 
 lUfiits I have to otli r in supp<irt of tjie conclusion at which I have arrived, that Lower 
 Canada should he char;;-ed. as part of its local expenditure which now forms part of the 
 deht of the late i'liiviiice of Canada undei' tlu ."^eii^nioi ial le;;i>lation of l.-^.'il, with the 
 -mil of .-;|.."i| l.(il."i,|(i. 
 
 It has heeii the popular notion that rp[iur Canada was entitled to an e(|uivaleiit for 
 only !?liil(i.(Ki'i. Tiiat is a mistake. 'I'lie statute providi's that Cjiper Canada shall have 
 an eijuivaleiit for all that was drawn out of thet oiisolid.ited lii'venue Fuml, over and aliove 
 all the •■apilal actually indUnced hy the actual net leceijii- from the local n v eiiu< s. speci.ally 
 appropriated to make^dod to the( 'onsolidated Revenue l''und.the siiiiis draw n out of it,liased 
 on these I'eVellUes. In othel' Wolds, if the locll 1-eVCllUes fell short of the estimate, to that 
 extent rpprr Canad.i \\,i> to have ,iu eiiuivalent. If they vveic diverted to other olijects, 
 oi' reverted to Low.'it 'aiiada and failed allogcthei- to ali'oid that indemnity to rpi)erCanada, 
 to which, in the l;ineua,i;e of the statute, they wei'c' •• -y/M/i','/// ('y7';'y'/'«^//v/." then I'p- 
 [ler Canaila, hy the terms of tin- Act, was to h.ive set apart f'oi local purjKises in that 
 .section of the late I'ldviiice. a sum eipial to the entire charge m.. 'e on the Coiisolidatt.'il 
 lioveiiiii' Fund, by the Seii,Miiorial ,\ct of ls."i| that is to say, the sums following : 
 
 Lstimated capital of local r"Venues. !^;<:U. 1 1 1, |0 
 
 ( 'harge made on Consolidated llevcniie i'"uiid over and abov e 
 
 \lie estimated capital of the local revenues (;(i(i,(ii)(l,n(). 
 
 I 'elit'iencv' of local leveimos to pay six per cent on their 
 estimateilcapit.il, duriiiL: the peiiod fidiii IS.") I. to the 
 1st .1 uly. isii: ; S( i.L'0 1 .( tO 
 
 Total 81,^)1 t.(U:i,4it. 
 
 Ha<l the letter and intent of the Act Ijeeii carried out. thos(^ sums .as capital, with tho 
 i.cciimnlations of interest on the b'liOO.Otld, would have been carried to the credit of the 
 lJJ)])er ( 'aiiaila ]5uildiiiL;', l''unil in making up the I'ublie Accounts of the late Province, to tlio 
 tir.stJuly, |S(i7. Anil as the wlioli- matter was in the hands of the Auditor, and as it Wius 
 nis duty to make iiji these complicated aoixmutsaccoi'ding to tlio statute, I can hardly excuse 
 him foi" m)t doing what it was so plainly his duty to do aec<jrding to law. 
 
 Mlt. L.VNiiToN. — The Seigniorial fund that was created in lS."il, was balanced iij> in 
 1859, and was not at that time used up. Thero was a balance of .-?r)l)7,S'24, '.'7 left ; .so that 
 you cannot say there was more s]ient than was ])roduc<Ml and )i,iid into the Consolidated ]tevt>- 
 niic Fund from these local I'evemics. The fund was lialanced before the exjieiiditiire reached 
 tht'ir e.stiniati'd capital, 88.'U. 1-41,4(). A great deal more must have been exiieiided to have 
 (exhausted the estimated capital of tluvse local revenues in 1S.')'.I. whi'ii the second general 
 Seigniorial Act was passed, which did away with the fund of liS'^f, ami entirely changed 
 the gi'ound of indemnity to I'pper Canada. 
 
 Mk. Wood. —It is i|uite ti'ue the tniiil was not exh.iusted hy the sum named by Mr. 
 
4:2 
 
 Liuiu'tiiii. liiif I ,isl< what ilill'i'iviicc lilies tliat make ( \\\ tlit- S(jij{iii(iiial Act of [!*')■', tin; 
 proviHiuiis ut' till- Act i>[' IS.M, ucic somt'wh.'it iinMliticd. 
 
 A Si'i^'iiidi'ial i'mid airuniit was o|i('iU'i|, ami tu tlif crcilit ut' 
 tliis t'mid was [ilaccil tlic I'stimatcil fapital of the Incal 
 ivvcmics .«H:U.I It I I 
 
 Aii'l a diivrt I'liai',"' nil ('niisiiliilatiil Iti'Vi'liiH' Kiiml nf Odll.llOK ;i() 
 
 ital 
 
 I. Ill III 
 
 And it raiuiiil adiiiii uf aru'iiiiifiit. tiial a .s|ici'ial ai't'-ainl sliniild at tiic saiin' tiiiir liiivo 
 
 bfcii upi'iii'd fill' the i'ijiii\alriit [n I'iiiut Canada, to tlic fi'cdit nf wiiicli. sliuiild liavi- 1 n 
 
 placed as ia|iilal the sum nf .-^iiioo.diio, ami tVnni yt'af tu yt uf a siiiii ciiiial tu tlu' di-t'cifiu'ii'S 
 nf tlic local ri'\' lilies, tu pav the interest mi their estimated ca|iital, .'r'SIVKUt. Id 
 
 At 
 
 111 an 
 
 itilerest wasalluwed with half-vearly rests at six |icr cent, cm the Sei^iiinrial fund set apart 
 
 :us 
 
 I have nieiitioiied, s(i in like man 
 
 nei' slioiild have 
 
 lieei 
 
 1 allowed interest at the same rati) 
 
 with half yearly rests on the ei|ui\aleiit iind 
 entitled. 
 
 corri 
 
 lat 
 
 i'.e fund to a\ hii 
 
 Pt^rmit me liere au'ain 
 
 cilc voiir atteiilinn to sect Ion sevillteen oi t lie Sei!,;ni()ria 
 
 (• 
 
 ■r ( 'anada was 
 
 d Aft 
 
 ol lS,'"il, which pro', ides that these si ni ices of re\emie on an uverau'e of the annual proceeds 
 )f the last live years, should lie capilali/i'd at six per cent., jind to the extent of that cap- 
 
 le Fund, which as I have al 
 
 itiil, (i charj,'e .shoidd he made on the ( 'onsolidated Kev em 
 
 shown, iimoniited to a caiiii.il of .<s;i [. I4 |, |(i. and in addition to this, liliert v was i,'iven fur- 
 
 reaily 
 
 th. 
 
 to ( 
 
 liaw on the ( 'onsolidated Kescniie I''miil, to an extent not exceeding,' .•^titMi.diK). 
 
 Kor the latter of these Slims 1 'pper ( 'anada has, as has liet'U repeatedly stated, recei\'ed an 
 eiliiivaleiit in itsliiiildim; Fund, and for the former it was fully Indeniiiitied hy the '• local 
 iirces of revenue specially apiiropriated to mak 
 
 e I'doil 
 
 to till 
 
 ( 'onsolidated Ke\ iiiiie 
 
 ■timl 
 
 the anio 
 
 when it was capitali/ed value of these annual local re\enues. 
 
 uiit uliicli miudit. he taken out of the saiin,' foi' the purpose of jiayin^ away a sum 
 
 F 
 
 SlieciallV w 
 
 as this the fact 
 
 eipial to the expressly 
 
 led '• that separate accounts of tllese local revenues should tie 
 
 ke|it.coiiiitini,' interest on imth sides, to theend that, if the sums pay 
 
 lilt of theCoii^olidii- 
 
 U'd 
 
 U'Veiiue Fund, under this .\ct. shall exceed in tl 
 
 le Wllole 
 
 the total aliioiuit of the ^Ullis 
 
 arising from the sources of re\eiiiie so ap]iropriated. and any interest allowed thiTi'oii as 
 iiforesaid, a sum eipial to such excess, may and shall he set apart ti " 
 Parliament for some Incal purpose orpiir[Mises in ['pper Canada' 
 
 iproi 
 
 •ri 
 
 lied li 
 
 In the Act to amend t 
 
 le hei;_qiioria 
 
 I Ac 
 
 if iS.'iJ, ISth V 
 
 d I 
 
 ive 
 
 months after the Act of lS."i4, the riudit m full indemiiity to Tpper Canada, for the tiist 
 branch of the I'liiid. and an exact ei|uiviilent for the other, is reiterated in the latter part 
 
 lis : " Provided alw.ays that the sum paid hy the JteceiNer ( Jeiieral 
 
 (It sec 
 
 tl 
 
 I'ee, m these Wor 
 
 as interest, inider this section, shall he taken inti 
 U]iper Canada, m ly lie eiilltled for |,i-al puriioses iim 
 
 saiil Aft." The principle is a;,'aiii nx- igiii/ed in tl 
 
 I'coiiut m ascertainniix the sumtowliicli 
 ler section ninet''eii (eit;'liteen ) of the 
 
 2(ltli 
 
 Section of the Selijnio 
 
 rial Act of 
 
 liSo'J, 
 
 fap. 48, the last general Act on the suhjectof tlit^ seiifiiiorial tenures or feu- 
 
 dal rights in f.ower Canada, in which tl 
 
 ill 
 
 lU' language is Used 
 
 ''A sum of money e(|ual to that which under the foregoing provisions, will he pa^'- 
 ahle yearlv to the SeiLCniors in Lower Canada, out of the Provincial fniul.v over and 
 
 ahove the amount payaMe to them out of t!ie fi 
 
 t; 
 
 le iSeigniorial Act of Is.'il -shall he iiavahle v 
 
 id fir the relief of the CV//,s A(//r.v, under 
 earlv out of the Consolidated Ueveime 
 
 Fund of this Province, to the credit of the Tpjier Canada Municipal f.oau Fum 
 
 duct 
 
 ion o 
 
 f tl 
 
 le advances that have I 
 
 •ecu nr niav lie niai 
 
 le f 
 
 mm time to time 
 
 rom 
 
 vincial I'linds, on account of the said fund. 
 
 |i 
 
 Tl 
 
 le sums payali 
 
 le under this sect 
 
 ion. 
 
 ill 
 
 le in .uiiii 
 
 tion to the sum to he appro- 
 
 " priate<l for local pur|ioses in I'pper Canada, nmlei' the Seigniorial Act of 1S.")1 
 
 It is perfectly clear, therefore, that the statute law provided aiuiile indemnity to Up- 
 per I'anada, against any taxation or eontrihution to make good to tho Consolidated iievenuo 
 
 iin- 
 
 Fund, any portion of the sum of .9S;}4,Hl.Uh charged upon it, as I have already expl; 
 cd, liy the spOfi;d ap[iropriation of the local revenues enumerated, to fover the annual in- 
 
43 
 
 tiTcst Oil tlitit Kiim, .'iml li_v prns idiiii;, if tln'V I'ailol tci do m>, td tin- cxtfiit nf tin.' ilctii-it, 
 lf]i|pcf ( 'aiiiiclii shoiiM liiivf set ;i|iart lui t'(|iiiil smii to li(Miii|ii'n|iiiiitt'i| liy I'urliaiiiiiit for 
 its loi'iil |iur|io,si'M. If till" Amlitor, in miiUiii^' up tliemi Hovcriil iu'i'ouiits, iiftcr Coiifi'dciJi- 
 tion liul taken iilacc, lias not iioti'd upon tlio vnrions HtiitiitcH in lurorilnnon with flii-ir let 
 tur, s|iirit and olaioiis inli'iidmcnt, tluit \u no ifiison wliy tlic ailiitratoiN should not look 
 into tlics'' Ai'ts of I'ai-jiaiiicnt, and deal with these ipiestioiis, I will not say aeoordini^ to 
 cipiity and j.'oo(l conHcienee, for tlirit is uskiiii,' more than I have imy reaHoji to cxpi'' t will 
 Ik! j^ranted to rpjier Canada, hut I will say in aecoi'dance with the ('(Jiicliisions of law and 
 I'lu't. ine\ italdy llow ini^ froin their fail- and IcLfitiniate int Tpielation and construction. 
 This, then, was tlii^ sojenm compact tiiade lietween I'pper ( 'aiiada and Lower < 'anada, hut 
 a full indi'iunily fr<iin iiml against ta,\;ition should lie ^;i\cn to I'pper Canada liy the an- 
 nual i-evennes deriNcd I'roni Lower Canada local sourcfs ; and in so far uh tliey shoidd fall 
 short of tliiit indemnity, a sum c(|Ual to the deficit, shoidd " he set npart to lie appropriatcil 
 liy Paiiiament to soUK^ loi'al purposo or piniioses in I'pper Canada." 'i'his au'reement is 
 more hindinic tlian any luore doed lictwccn the parties could have heoi.. It was in fact, a 
 special au'reenient lietween t!ie hit,'h contrnctiti!.' |iarti"S, rendered sui-e, certain ami lastint,' 
 hy liein^'cmliodicd in a solemn -Act of the l.e;,'iNlatuie. The lanj,'ua,i.'e use(i is peculiar, 
 "specially appi'opriated to make j.'ood t'> the Consolidateil |{evi-nue l-'und." A phrase 
 which is not used in any other appropiiation. The wmd " ,v/)i f /<// " means that it shall he 
 eHpecially linatctl tt) that oliject and to that alone. 
 
 At this statue of thr proceedings, the arbitrators adjourned to the follouiiii; day. 
 I''riday. 
 
 KitlliAV. August "Jii. If<7<l. 
 
 Ifon. -Mr. \\'(i(i!) resumed his arijunieiit. lie said ; I am spcakini,' ahout the iti'iii (if 
 the capital of the local sources of rc\enue di'rived from the Seii.'uiorv of Lau/.on. aucticju- 
 
 eers duties, tavern find other licen 
 
 .■\nd I will sav that, if it had not Keen foi' the 
 
 uhangi! 
 liavo I 
 
 which took |ilace on the \m duly, ISiiT, in reference to this matier, it would uut 
 iriiiL,' up the question at all, for the sake of the mere dillereut'O 
 
 leeli Worth wliile ti 
 
 lietween the interest on the cajiital ami the revenue actmilly r(ceived; hci'ause the tin 
 would no doulit havi' come when these local sources of leveinm would hiive produced 
 enouf,'h to meet the t'idl six per cent, upmi their estimated value, and to make^^ood any former 
 ileti<'iencics. h'rom the stateiiu-nt furnished me hv the Auditor, latterlv, I see thev werc! 
 
 inci'easini.'. and the tiim; would have come when the accumulation of the excess won 
 
 hi I 
 
 lave 
 
 w 
 
 iped ut the ileticits of past yeai's ; and nni unly thai, l.ut would liave j.'radually 
 
 sources ot revenue nil"' 
 
 ht 
 
 entrenched upon the capital, so that in course of time these local 
 
 have wiped out the piiiici|ial. and lilierated these revenues alto!,'ether from any further cuii- 
 
 triliuti<in to the Consoinia 
 1st of .lulv, iSf'.r : and the 
 
 'ri 
 
 ted Keveinie Fnn<l of 
 
 tlie 
 
 lovmce, 
 
 Hut all this waschaiiL 
 
 in tl 
 
 Dot 
 
 ninion 
 
 Audit 
 
 or. wi 
 
 th th 
 
 auction of the (ioveinment. 
 
 Very properly maile ]iro\ision tor this cajiiial liy i'harL,'inLr it in iis part of the deht of th 
 
 lat<^ i'roviiice 
 desi'Miedlv or undesu'iiiM 
 
 LS lliese local sources of revenue wi'l'e withdrawn liv 
 
 1!. N. A. Act, 
 illy, and as indivi<luals wi-re interesteil in the payment of th 
 
 interest on the ca[iital, with whom i^ood faith must lie kejit, and as Upper Canada has not 
 been re-conped for these local sources of revemie, I have eharitcd their estimated capital in 
 ■with the Seigniorial capital, and it liecomes part of the locil delit of t^ueliee. 
 
 I have said, and I rejieal it, that these local revt turns were pledged to this pit 
 purpose, atid that it Mas ai,'re<'cl hetucn the memhers representing tin- people in Cjij 
 
 rticiilar 
 
 ler 
 
 Canada and Lower Canada in the House, that th 
 
 is arramremei 
 
 tsl 
 
 louli 
 
 I take Ilk 
 
 ice, am 
 
 I that 
 
 it should 
 
 as It was, saiictioiu 
 
 d 1 
 
 IV an 
 
 Act of the Lcifislatiire. and liecomi' irrevoc 
 
 al.h 
 
 bindii)'' on the two sections' of the Provii 
 
 ice 
 
 ind that, therefiire, tl 
 
 lese 
 
 local 
 
 revenues 
 
 W( 
 
 re sacredly set apart for the payment of the intcjrest on their estimated ca[iital. I, 
 therefore, repeat that it is not competent for any power to set aside an au'reenient so maile 
 and so sanctioned, without the consent of the ]iarties interested. Tt was not competent 
 for the late Province of Canada t(/ do it. It is not competent for the Parliament of the 
 
 l^ominion to do it. It was not 
 
 com 1 If 
 
 ■tent for the Imperial Parliament to d 
 
 O It. 
 
 N 
 
 or IS 
 
 it in uccortlaiice with constitutional Pritish practice to interfere with private arrangements 
 of this kind, without giviiiLT full compensation to the parties thi-reby aU'ected. 
 
u 
 
 ■ 
 
 nut it i^ iiix'iii'tl tlml all fliis is cniiti-.irv f<> >«"'<tii>ii 02. .siili- *••<•. 0, iiiid Mt-cfinii lO-j unil 
 Ifl'.t. uf ihr I'l. N. A. Ai'l, wlii.'li Ml.' us Inlli.ws : 
 
 '• II'J. Ill I'lifli Pici\iin'i' ill'' 1,1'u'islaliiii' iiiiiy rxi-liisivrlv iiiiiki' lnw^iii ii'liUinii t^» 
 inu'tcrs ripiiiiiii,' williiii tli'' ilussi's of ^,lllljl•(■ts im'M ln'niiial'icr cinmnialfii, timt. is In siiy : 
 
 '• '.1. Sliii|p, saluoii, ta\('i'ii, aiic'tiniin'r ami nllicc lici-iwt'N, ill unlcr tn tin' iiUNiii;; of n 
 Ht'M'liMc I'm j'niviiic'ial, Local, m Mimiiipal |iiii'|»i)HtiH, 
 
 " If'J, All liiilii'^ ami ii'M'inics iimt wliicii llir r('H|ioi'tis'i' !,i'^islatiiri's nlTatuuIa, Nnvii 
 HcDtiii, iiikI \i'\n liniiiswiik, hi'lun', ainl at the riiiiiii, liail ainl liavr imwcr cit" a|p|>in|u'iii 
 tiuii, i'Xci'|il Hinli |iiM'tiitiis tlit'ifiir us air liv this Art icsi'i'scil tit tlic i('s|)('cti vf l.cniHlii- 
 
 tui'cs iif till' I'mi\ iiii'c^, III' an- rai^'il l>v iIh'Ih in arciirdai 
 
 Ifi' witll llic S|M'ilal linWl'I'H coii- 
 
 fiTii'il oil llii'iii iiv tlii.> Ai't, ^liall t'lii'iii dill' < 'iiiisiiiiilati'il llrxcinic |'"iiiii|, tu Im' a|i|irii|ii'iiili'(l 
 
 HI' till' iiiililii' siTMci' (if ('aiiaila. in lin' iiia 
 
 imiT allU -.llliiii'l In till' rlial'^i'S i 
 
 M this Act 
 
 |'iii\ ii|i 
 
 • il'. 
 
 iiinls, iiiiiH's, iiiiiirra!>, ainl nivaltii'-i, iu'lni 
 
 iLriM'' ti> till' M'\i 
 
 la! r 
 
 riiviiioi'S 
 
 (»f t'.iuaila. N'nva Sciitia and New liniiisw iil> at tlic riiimi, and all Minis llii'ii diir nr jiiiy- 
 alih' I'm' such lamU, iiiiiii's, iiiiiii-ials, nr ruyaltii's, shall licluiiii tu the several i'lnv iiices nf 
 
 Oiitarin, (^iiel , N'(i\a Scuiia and New I'lriuiswick. in which the .siiiiie iire situate nr urisp, 
 
 Kulijecl til any trusts existinj,' in n'spect tlieient, .md tu any interest ullier than that of the 
 Vi'o\ iiiii' in tl 
 
 e same 
 
 'lake ta\('iii I 
 
 I licence 
 
 I) 
 
 ne.> .'sec. ',11 
 
 '.t, all'ecl th 
 
 le >|iei'ial a|i|ii'n|iniitiiins made 
 lit the iiiciiiiii- lie leMinie ari-.ini.'' iVnin them f It'su, it miisi all'ect all such special a|i|ii'o- 
 priatiniis ei|iially and alike. Nn mie can say it atlects sim|ily the special a|i|irii|ii iatimi 
 made in the interest of l'|i|ier Canada, in the eiiihtecnth sectimi >i\' the Seii,'iiii)iiMl .Act of 
 l'*^'> t. and nil iiihi r s|ieci,il a|i|iiii|iriatii>iis. I repeat, if it all'ects om it alfects all e(|U!illy 
 
 '•'lid alii;i'. jiy S \'.. c. 7:.', the pr ds ut' the l.iveni licenses 111 I'pper ('allilihl 1(11(1 
 
 l.iiwer ( '.iiiada, \\ereoi\,.|| tu the dit,iiicts and (itliei- municipal di\ isimis nf eai ''msiiice, 
 and thiise of I ' pper t 'aliada were clialt;i'd w it h the p.isiiieiit nf S I (lO.ddll iv' 'i losses 
 
 r 
 
 I I ppri' I aiiaila. w In 
 
 le ih 
 
 if I .iiWi'l' ( '.Iliad; 
 
 'le tu 1' 
 
 lid iiSiT to tl 
 
 ■R'^.s or 
 
 iiiiiiiicipaiitie.-, in which ihiy 'veiv coliecied. I>y l.">iind II Vice. I'l, the proceeds of 
 tavern licenses in the District .f Montreal, were specially appropriated to the fund estal-- 
 lislied for lillildilii; the ( 'oillt ,|ollse,'lt .MiPlitlval. 
 
 I>y 1 I and |.") \'ic., e. (I.;, the jn'oceeds of the la\erii licenses arisiiii,' in llie liistrict of 
 iidly iipproprLiti^d to the special fniid cstalilished for liiiildiiii; the ( 'oiirt 
 
 ( )l taw;l. Were spci 
 
 House at .Vvliiicr. 
 
 iiv is V 
 
 IC,, C. .), SCI' 
 
 IS, Sciijniorial Act, ls."i|,all iiuiniis arisiie^ from laserii liceu 
 
 ses in l.owcr ( ',iiiad;i. after the charjies tlie-i existin.;.; on that fund, were paid olf (hein^ 
 the I hari,'cs aliove |iarlicularly mentioned), except. Iinwev er, such portion of that fund as 
 slraild lie levicil in the tuw iiships, were specially appropriated to make ljooiI, to the Coii- 
 solidatt^d |{e\eiiiie Kiind. the sum li\' tli.lt Act .■illthorized to lie I 
 
 Irawn out of it, for tl 
 
 It) 
 
 sole pur] MISC. and with the intent and ohject of thereliy indemiiifyini; Tpper < 'aiiadii 
 ■11,'aiiist anv tiixatioii, coiitrilnition, or lialiililv mi .iccount thereof. 
 
 Ill 
 
 re wc.lia\c several special appropriations of the inroiin 
 
 derived from tavern license; 
 
 in Lower Canada ; .iiid it is not .ir'^nialile that e\erv 
 
 one o 
 
 f tlieiii is Hot now as hindiii'' 
 
 Us It was I 
 
 >n th 
 
 iinv I'ailiaineiit t 
 
 day it was ni.idc. Siinly no mie will .-ay that it was coinpeteiit for 
 
 o p.is-, an Act di\crtiii;; to other olijccts, or worse still, i;i\in,n liack to 
 
 ].iOWer Canada the incoiuc so s])eiially ajipiopriated hy Act of Pjirlianieiit in the interest 
 
 the full value, and thereby destroy the vi^stinl 
 
 which it ivccivci 
 
 of Lower Canada, and fm 
 
 ri,!,dits of individuals, institutions and c<iiuniunities, anpiirod in 'j'jod faith iiiiilcr the 
 
 solemn .sanction of an Act of the Lci;islatiirc of the country. 
 
 'Po ar,i,Mie that sec. 1)2, suli-see. It, H. N. A. Act, relieves the tiiveni licenses of Lower 
 C;inada from the cliai.:,'!' made on them liy the sjiecial a]>j)ro])riation made of them hy tl 
 
 ciditeentli section of the Seiifiiiorial Act of IS.") L is t 
 
 () arune 
 
 that it also relieves them 
 
 from pre-existine- charm's made liy the several Acts to which I have, referred. The .section 
 referred to in its teinis rei|iiiies no such coiistrui'tioii. Its langiia^', taken l>y itself, or in 
 connection with the context, is not siisceptihlc of such an interpretutioii. There is no 
 implication to he (hrived from the clause at all jnstifyini,' such a com liision ; and. to crown 
 all, to ''ive such a iiicaniiiii to it, would (h> violence to the words of the clause ; lie a^^io.ss 
 
' 
 
 4.^ 
 
 IICCM 
 CCS (if 
 
 irisc, 
 >rtlic 
 
 inVIIHillll ol" Vl'slcd rifillts ; a lUfUl ll nf our of tlir MKlht Htllcliill ( ii||||ia(t> III! II I. Ill make ; 
 
 ami ji siiilaliiiii nf •^ni,i\ I'aiili, ami a |iirii' nt' tla|.'iaiit injiL^Mir tn rpiii r Canaila. 
 
 Of till' liiciiM'N M'Irirr.l tip ill llir i'ip;|iti'(iiili ffctiuii c.r tlir Scijriiiiiiial Ad, l'"^."! I, ami 
 ill M«'c. \)'2, Hu\>^h^'^'. '.», H. N. A. Art, I li.ivf -.jiccially liMiitinmil uiily tlif taMin liidihis, 
 as Jiiust lit' tilt' iiiiiiiiii' )iruvii|ri| liy tin' liiriiiiT Ait is driivcd t'rniii tlii>' xuiiri'. Tlir iir^ii 
 irii'iitM ami nl>-ri\ati>iiis aiiply tn diitii's mi aiirtinii Kilrs, aiictiiniiTi.-. lii iiiscs, ami tn lit tiims 
 to s.'ll .-|iiiitm.ii.s, viiiiiiis, ami i'liiiiriitcil lii|iiiirs liy n'tail. in plaii's nilifr than plaifH nl' 
 juililir fiiditaiiinnnt, ralli'il sliiip III' stdii' liifiiscs, ti|iial!y uitli ta\rin lirrniscs. Nn can.''*' 
 iif i'(pni|ilaiiit t'xists as rcsjH'ctM tlir uwmrsliiji nl' tlir.-i' lin iim's, l'|i|ii'r Canaila, liv hi 
 Vic, r;i|> .l.^'l.liail tiaiist'rrri'il tn it its lici'iiscs, ami tluri'l'mr Lnmr Canaila was |irn|Hily 
 ciititli'il ti> its liii iisis. Sir. '.>'2. •■•iili-MT. !•, I>. N. A. Act .-iiii|ily -i\is ilic l,i';.'i>latiin' ut 
 cacli I'l'iix im c lcj,'isluti\r cdntrnl nvi r I lie siilijcct. u illi |iiiw( r to ini|iii,«c ilutics lur laiKin^ 
 a rcvciim' I'ni |iiii\ imial. Imal nr niiinii ipal |iiir[ii)>is. It tines imt inteil't re with cliarf,'eH 
 already existiiiu. liy s[Mcial a|)|iiii|ii iatimi mi the iiictinie nf revenue tli livcd t'lmn tliein. 
 
 As tn the iiicnnie i|i'ii\etl tVi.iii the Seiuiiitii'y nl' I.aiizmi : this was a Cmwii Sei;;ninrv, 
 and in tact lielmi;;i'tl as niiitli tn r[i]Mf Canaila as ti) Lnwei Canada. Hut I as-iiiiie it 
 was a Itieal prniieity, .'intl lielmip'il exclusively tn iiipwer Canada; t'nr sin h was tho 
 a.ssiiiii|itinM id' the I.i',!.dstature in ]>as>iiiu' the Seii.'ninrial Act nf li*^.")!. In all 1 have to 
 Kuy I cniitiiie niy nlisei vatimis strictly within the statute jaw t.f the land. It is admitted 
 that, hut fur the sectimis td' the I'.. N. A. .\ci I have i|Untci!. the iiicmue arisinj^ frnni the 
 
 Sei/illimy nf l„lllZn|l cnllld lint he tlivertcd IVtilll the liur|insi' tn which it was t|i'\ntctl, 
 
 that is, an imlemiiity In Cpiier Canada ai;aiiist any cmitiiliiitimi nr li.diility mi accmiut nt 
 the char^'e. liy icismi nf such iiicniiie, made mi the ( 'misnlitlated l{e\cnue Fund, ami nf 
 
 the tlelit theieliy adthd tn the late rrnviiice. It is alsi) •■itlmitted that in ei|iiity and - 1 
 
 ctinscieiice, e\in tlimiLili the I!, N. .\. .\ct did divert this iiicmnt' fmni the pm puse tn w hicli 
 it hail lieeii snliiiinly pleil;:etl liy .'lull iimiit liclweeii r]iper Canada and Lnwer Canaila. 
 limimlnuated liy .\et nf I'ailianieiit till, in " the di\i>imi and adjustment nf the deliis. 
 credits, lialiilitics. innpci ties and a-i Is nf I'ppcr C.inada ami Lnwer Canada," < >ntario 
 sllnllld liaSe 1 milpeli-atinli tnr the ilHlease ol the dehl nf the late I'inviiicc theieliy ])r(i- 
 diiceil. I'liil 1 iii.ike nil appeal tn eijuity nr jii'i'd cmiscieiice. I rely e.\( hisivdy mi a cm- 
 rect cmi-truitimi nf tlie several Acts nf I'ailiaim tit lelaiinu tn the siilijict. 
 
 I will mxt iintice .-ec. lOJ nf the I !. N. A. Act. It is cn'.aciidid that this 
 section i.;ives the reveiiiies arisin.L; frmn the Sciuiiinr} nf l.auzmi. and liceiisrs, to 
 the cnllillliin e.\clie(|Uer nf tile |)nmiiiimi. ll' it Aura, then the i)nmillin|i niu>t 
 take it eiiciiiiilicred with the cliaiL^cs made mi it hy the Scij^ninrial Act, JS.'il, 
 nr whicli wiiiild. in sn far ;is Cppcr Canada is cnncermd, lie the saiiie thin;,', ihv- 
 Dmiiinimi must, umler sec. Ill nf the l!. N. A. Act, which is as t'nlinws:— 
 "Canada >liall lie liaiile fnr the dehts ami liahilities nf each l'in\iiice existing; at tlu- 
 Tiiimi" lie lialile n\cr tn ( >ntarin \'nv the additimial deht thenliy impnscd mi it. nrassiinu' 
 the payment nf sn much nf the deht nf the late I'mvime ; fill t!ic liahility ami nhli^atioii 
 of saviiii; I'pper Canada hainiless and fully iiideiniiiliid a^aiiist this additimi.al delit. 
 helmiLreil to and rested with the late I'rnviuce nf Canad.i, and if the 1 >nn iiiimi succeeds 
 to these revenues, it must alsn succeed tn the li;iliilities which that succession to the 
 revcmies carries alnii^' with it. l!ut I think it i|uite clear that such was not the intention 
 or nieaiiiiiu' nf the Imperial rarliaimiit, and that the laii,i;ua;;e o*' •' ■ scctimi will nut. mi a 
 
 I'aiefiil 
 
 cnnslder.ltmu n| tile W imle nnestimi. W lien frail in coll! 
 
 vVltil the Sellflllol'la 
 
 Act ot IS") (.admit of such a emi.structimi. I'ut liad the l,e,ui.-!;'i c nf the late i'rovinct^ 
 any imwer of a])prnpriatinn over these taveiii licenses and the otiier .• mrces of revenue ( 
 Clearly imt ; fnr liei'me the special apprnpriatimi made hy th(> Seimiiorial Act of IS.'it, 
 they lielmi.ueil to i.nwer Canada, and were at the instance nf Lnwer Canada appiopriated 
 for its heiietit, in its interest, and for which it received ninro than the full value thereof. 
 They wtire not j,'eiieral revenues, such as are conteniiilated hy tin; 102 sec. R N. A. Act; 
 and they are no more within the perview of that section than is thn Marria^'c Licen.se 
 Fund of Lower Canada, nr the Cjiper Canada liiiildiii!,' Fund, the Lower Canada Superior 
 Education Fund, the Upper Canada (iraTnniar Schnnl Fund ; the Common Sclicol Fund, 
 the Munici)ialities Fund, T^'jipei Canada: the Miiniciiialities Fund. Lower Canada : the 
 Building and dury Fund. Lower Canada, or any otlu'r Special or Trust Fund et.tablislu'd 
 
46 
 
 }>y Act of the Lfjiisliiliuf It}- sjiccial aiiproimation. It is just as rational and icasonable 
 to say tilt' section in iitn'stioii draws into tlic Consolidated Fund ot' tlic dominion the 
 revenues ansiii;^' from all tliese special funds, as to say that it coniiirelieiids the siM'cial 
 local revenues arising from the Seigniory of Lauzon, auction duties, tavern and other 
 licenses. 
 
 Tiut it ':: liirtiier conteiideil that, under sec. \0j of the I'.. \. A. Act, the riveiuie 
 arising from ' le .Seigniory of Lauzon, M'ith the Seigniory itself, reverted to t^)uehcc. To 
 givf such a construction to that section would work a most grievous wrong to I'pper 
 Cani^tla. I will not charact"rize such a projiosition in the language it deserves. So to 
 iiiter]iret the section, woidd swee]) away many Acts from the Statute liuok. It would 
 almlish the Muiucipulities Fund in hotii Upjier Canada aiul Lower Canathi. It would do 
 away with the the U])])er Canada (irammar School Fund. It would ]mt an end tothe Upper 
 Canada Land Imiirovement Fund. It would wi]ie out the Ccimnion School Lands Act. 
 In short, it Mould stiike (i\ii from tlie Statutes all special Legislation in respect of sjiecial 
 funds relating totlie lamls, miiU's minerals ami royalties in the late Tnjvince of Canada. 
 For in all the>e cases the language used in setting apait tV.v lands or the moneys arising 
 fi'om them to particular "jiuiposes. is almost identical with that employeil in the eighteeulli 
 section of the Seiuniorial At't, 1^54. 
 
 in the case (>f the Clergy Keserves, the language used is: — l.s Vic, cap. 2. 
 
 "1. The moneys arising from the Clergy lu'.scrvcs in Upper Canada shall conti. ue 
 tn r..rm a .-eparat. Fund, which shall ho lalled the Upper Canada Municipalities Fund, 
 and the moneys arising from the Clergy Keserves in Low<'r Canada .shall coiitiiuie to form 
 a separ.'te Fund, wliicji shall he called the Lower Canada Muincipalilies I'und.'' 
 
 * * # •*■ * * y- 
 
 •• And the monies forming these Funds, shall he paid into the hands of the lieceiver 
 Ceueral. and shall he liy iiim applieil to the ])Ui'|ioses hereinai'tfr mentioned UTuler the au- 
 thority of this Act. oi- any j.;eneral oi- special I'Vilry iw mdei's to he made liy the ( l(i\crnor 
 in Ct>uncil." 
 
 In the case of the ( ii'ammar School lands, th.t lam;uai;-e used is as t'olh'ws, i Vic. c. 
 1(1: 
 
 '• l\'. That it shall and may l)e lawful foi- the Lieuteiiant-Coveinor, hy and with the 
 advice iif the Executive Couucii. to set apart two hundred and fifty thousand acivs of the 
 waste lamls of t'le Crown in this Province, to he sold in like manner as other Crown 
 lands, at a lU'ice iKit less than t-n shillings ]ier acre, and the proceeds thereof paid into the 
 hands of the lieceiver-(ienerai. from tone to time, tohe ajipropriated in such manner, and 
 foi' the Crammar Sch.iols. as hereinlut •■<■ provided." 
 
 The following languagi is employeil with re>pect of the C. C. Land Iiii])idvenieut 
 Fund : Con. Stats. Canada, c. '2C,. 
 
 •' 7. The (iovei'ii.ir in Council may reserve out of the proceeds of School lands, in 
 any county, a sum not exceeding one I'ourth of such proceeds, ami out of the ])roceeds of 
 unaiipiopriated Crown Lands in any county, a sum not exceeding one lifth thereof, such 
 sums to he funds for ])uhlic ini[.;'(:v.'ments within the count}', and to lie expended under 
 the direction of the Coveriior in Council." 
 
 To the same etfect is the language of the Statute in estahli.shiiig tlie Coninii»n Sciiool 
 Fund. Con. Stat.-.. Canada, c. 2G : 
 
 " 1. The Coniiiiissionei of Crown lands having, under the provisions of the Act 12 
 Y. c. 2n(). and umler the direction of the Coveiiior in Council, set ajiait and aj<i)ro|)riated 
 one million acres of puMic lands for Common school purposes, and portions thereof having 
 lieeii disposed of under the said authority, the reniaimler shall l)e dis|iosed of liy the 
 Commissioner on such terms and conditions ;is may hy tla; (Joveriior in Council Ix* 
 ajiproe<".I, and the money arising from the sale or disposal of any portion of the said laiida 
 shall r"main or lie invested and auidied towa7-ds oreatin<: 
 
 H' 
 
 rate of six per cent. p(>r annum interest, to produce a clear sum of four hundred thousand 
 <iol]ar- per annum, am! sudi capital .and the income therefrom sliidl form tin; Common 
 School Fund. ' 
 
 k 
 
47 
 
 iiiia1)lo 
 HI tlio 
 
 l)tll(M- 
 
 C. f. 
 
 Now lot tho foroyoiiii; ]ini<;uiig(! lio cniiijiai-od whh tlmt foiiml in tlic ci^htoontli 
 Ht'ction of till) S('i,i,'iii()riul Act, ISHl, IS V. c. :?, src Is. 
 
 " 'riiiMiiiirit's iirisini; iVniii tlic fcillowinj^ sniir<'('s of rcvrimc sliall lie and aic licrcliy 
 siK'oially aii|>i'(i])rinti'(l to make i^ood to tlio saiil Consoliilatcd llrvcimc Fiiriil, tlic aiiiouut 
 wliiuli may lie taken ont of tlii' sanic. for tlir purpose of |payinL' tlie sums oliaru'ed u|ioii 
 it nndei' tlie next preceding section, tiiat is to say: 
 
 " All moiues ai'isini; froni tlie i-evoinios of tlio Seigniory of i^auzon, <ii- IVom tlie sale 
 of any part of tlie said Seigniory wliicli may hereafter lie sold, ami all arrears of such 
 reM'nue/' 
 
 This comparison must coiivinco any one that [ do not overs-tate ih(> ease, mIkmi I say 
 that if it he held that sec. lO'.t of the 11. N. A. Act, takes away from r[>|ier Canada its 
 indemnity against the charge niadi^ on the Consolidated IJevenue Fund, under sec. 17 of 
 the Seignioi'ial Act. lSrt4.for which no e(|ui\alent has heen given, and gives tlu,' reveinies 
 " specially appro]iriated and set ajiart" as an indemnity to Ujijier Canada, either to the 
 Dominion or to Low. r Canada, so also nnist it he held to sweep away all (lie .special 
 appro]iriatioiis to wiiiih 1 have refernMl. It is no answer to say that the <iti.:i' special 
 funds, to wi.ich 1 have alliide(l, are trust funds, and are llieicfoii' jimtected hy the latter 
 pait of the srctioii, "Suhjict to any trusts cxi.^ling in icsjiect thereof, and to any interest 
 other than that of the I'rovince in the .same." For it may he diaihted, 'f techiiically 
 speaking, ;iiiy of tlie.se sjiecial ap'propriations formed ]iro)ier trusts. 15ut if they diil. that 
 giving the indemnity io rp]ier Canada was eminently such a trust. It dearly conies 
 within the meaning of tile .•lause "andtoany interest other tli.an that of the Province 
 in the same." T'ppei' < 'anada and Lowei- ( 'anada were recognized in the Srignioiial Act.-i 
 of 18') l.-l S.'i."). ami iit that of IS.MI, as distinct communities, having separ.ite interests, 
 although, foiiiiiug. tech.rii aily, 'ait oiic I'l'ovince. Indeed, this distinction run.- through 
 the \\liole course of Legislation IVoin 181 1 down to 1S(17. It Mas recogniz( il in the 
 L'ehfllioii Losses Act of I'ppcr Canada, S Vic., cap. 7'2. in which it was provided that the 
 moneys arising from tavern licenses, hotli in rpjier and Lirwer Canada, should he 
 ap))ropriated to tiie uses of Districts ami Miinici[ial Divisions in which tiiey were collected ; 
 hut ill the ca.sc of I'pper Cana<!a, ."^KWi.ddd lu-hellioii losses, were made a first charge on 
 its ta\ern licenses. it was recognized in the first Keliellion Losses Act of Lower 
 Canada, ',) \'ic., cap. 'i."). hy which the .Marriage Lici'iise T'lind in Lower Canada was 
 charged with the payment of th" deheiitures authorized to he is>ued. ami the jiiocceds of 
 l^ie .Marriage License I'liiid in ' ppei' ('anada were a]i]>ropriateil to the maintenance of 
 cei'tain chaiitahle institulioiis in I'pper Canada. It wa- again recognized in the Clergy 
 Keserve Act. IS Vic.. ca]i. '2. hy which, uni' certain limitations, the ])rocecds of the 
 Cleigy I\esei\e lands in Lowr Canada \\i !■• api>ropriatcil to local jiurpo.-es in that 
 Province; and the proceeds o|' those in I'pper Canada to hjcal ohj; cts in Upper Canada. 
 It M'as again recognized in the Acts 1:5 ;uid 11 V. c. (!S, and 'JO \ . c. S, estaiili>liing the 
 L'pjjer Canada Puilding Fund. Jt has heen recognized in (Mcry annual appropriation 
 Act from the lie-union in is 1 1, to Confederation in lsii7. In short, the statute hooks 
 are full of .\cts recognizing a hroai' distinction in inti'ifst. not only hetween Upper 
 Canada and Lower Canada, hut also hetween Upjier Canada and Lower Canada as 
 separate and distinct communilies. and the Pio\iiire of C,iuad;i ,it large. 
 
 Jtisnot, tlierefiie, an assertion. Imt ;i tad provc'd. that U[iper Canada had an 
 interest other than that of lieing part of the Province of Canada, in the Seigniory of 
 Lauzon — an interest as distinct and clear as an individual person wouid or could have, 
 had iwlike special api)ro])riation heen made hy the Legislature to indemnify him against 
 loss or liaoility under similar circumstances. 
 
 Jiut I do not re>t ,lie case alone on the f>regoing ceiisideratioiis. although, as 1 
 think, perfectly conclusive. If the consideration for the charge of Ss:54,llf 4() on the 
 Cotistilidated Revenue Fund, he taken away from Upjter Canada, then must this sum he 
 taken away from Lower Can; da. that is, he deducted from the capital of the Seigniories, 
 and trom the deht of the late Province: and Lower C.inada must inal-e good the aiiiount 
 to the individuals or institutions interested, from its own projier reveiiues; and it may 
 well do so, for it will have t!ie identical resources of revenue hack in its own hands upon 
 the .special .setting apart and the special a.p[uopriation of wliich, it got the §S;5L1 1 1 -10. 
 
4S 
 
 If it lir iirgi'd tlnit it wmiM iint ild to break faitli witli the imlivid'ials ;iii(l institutions 
 directly interested in this I'lnni, my reply i-<, neither will it do to hreiik t;iith with the 
 people of I'ltjier ('iin.'ida. 'i i> a^ iiii(|uitoiis i;i ..ne cum' as in the othei'. 1 projinse to 
 keep ii;ood faith with lioth. ind to strictly eirry out the letter, sjiirit, and intent of the 
 Seij^niorial Ad, lS,"i t-, in all its parts. I!ut really, it seems to nie no cme can seriously con- 
 teml that any jiartdf any of the Aets of wliieji mention has In 'en made, lias lieen repealed l.y 
 the r>. N. A. Aet. Oil the eonnary. it must lie o!)\ious to all who are not disjiosed to Ik; 
 wilfully lilind, that all these Aets in all their parts, are in full furee undir the authority 
 
 of the r>. X. A. Act itself, if >ueli authority were liet'ded : tnr the iL'Htli seetinn nf the 
 
 Aet says ; 
 
 '• IJl). IvNei'i'l as otherwise provided Ky this Aet. all laws in i'.iree in ('an; da. Nova 
 Scotia, or New Ilriuiswiek at the I'lnon.and all ( 'oiu'fs of ('ivil and ( riminal Jurisdiiti<in, 
 and all lei;al eonuuissions. jiowers and autlmrities, and all nlheers. judicial and uuidsterial, 
 existini; therein at the I'nion. shall eniitiuue in < )ntaiio, (^luehee. Nuva Scotia and New 
 Brunswick resiu'ctivoly, a.s if the riuon liad not heen made; suliject ne\erthless, (exeej)t 
 with respeet to such as are euiicted hy or exist tnidiJi' Acts of the Parliament of (Jreat Hi-i- 
 tain or of the Parliament of the Tuited Kintrdom of (!re.it I'.ritain and Ireland) to lie 
 repealed, almlisheil, or altered liy the Parliamtait of Canada, or hy the Legislatui-e of the 
 respective Pro\ ince, aceonling to the authority of the Pailiament or of that i.,egislaturc 
 under this Act." 
 
 The B. N. A. Act has not, as I have shown, directly or indirt>ctly in express terms or 
 liv necessary implication sujierceiled. repealed, aholishsd. or altered the Seigniorial Act of 
 18r»4, or any }iart of it. It therefore remains in full force. 
 
 The local revenu(>s which I am discussing, di<l not pass to the Doiinnion under .sec. 
 102. !'«. N. A. Act, for the i.egislatuie of ('anad.a. liefore and at the Tnion. had no jiowe!- 
 todi\ert these re\"enues tVom the purpii-M' to which thai same Legislat uri' had sjiecially ap- 
 ]iropriatc(l them, without a gross hreacli of faith to r])|K'r ( 'anada. if, howe\er. the Do- 
 miinon lakes these re\enues, it must take almig with them SS.'U. 11 1.1*1 of the delit of the 
 late Pro\ itii-e, created in consideration of their transfer to the ( 'onsolidale<l Kexeniie h'lind 
 of the late Pio\ ince. Kor the reasons givi'u. ihesir re\eiuies do not under sec. '.iL', suli-sec. 
 !), and sec. In'.i j',. N. .\. Act pass to the I^'ovinee of Quel lec. fieed from the charg(> impiised 
 on them liy the Seigninrial .\ct of ISal. I do not ohject tot^tueliec taking theiu. as it has 
 actually ilonefor thi'ee yeai's past, anil will eoiitiuue to do in the fiitnr< . as that .^eems to 
 1)0 the normal state or fate of the-^e r/xcnms hy all partic.s : Init in diviiling and adjust- 
 im,' the del>ts. credits, lialiilities. properties and assets of I'pper Canada and Lower ( 'anada, 
 the additional delit jhereliy thrown on ( tntario. nnist lie taken iutu consich-intion liy the 
 Arbitrators. 'I'his may he done liy (^Jueliee assuming bodily !?f^;il.l I l.in nf' the excess of 
 debt b(>fore any di\ision on the princijile adopted by the Aroiiraturs t.akes place ; m- it 
 mav be done by adding an ecpiiv.dent sum to the I'pper ('anada Building I'und, and in- 
 oreasiiig the debt of the late Province, by that amount ; or by charging the same into the 
 debts created by local exjienditure in Quebec, which I think is the pi-oper and logical 
 mode of treating it, and is certainly less onerous to (Quebec, than it wduld be to reijuire it 
 
 to assume the payment of a debt created for it. and tin; p 
 
 ds of which it 
 
 (I and 
 
 ien(|c( 
 
 0X1 
 
 into th( 
 
 1 on 
 
 I a purely local olijeet within its own rroviiic( 
 
 I I debts of (.Mu'bec. 
 
 I have, therefore, charged it 
 
 h 
 
 Shorf jioi'l f" b^iw sSd.L'dl ((0 
 
 The tXlieial return from th.e Auditor's Ollice, to be found among the Sessional pajiers 
 
 of If^'i'.l. )ia]ier No. (il, shows i.iat the re\('nues set apart to indemiii 
 
 fv r 
 
 IT 
 
 ■r ( 'anada lor 
 
 the capital charged on the ( 'onsolidated lievcnuc l-'imd. I'ell short from lS."i4 to ISHT, on 
 an average by Sl.^'.l."). ."),'> annually, or by ."^li.l'.tT.Tb half yearly. As the interest on tin; 
 capital of .^f^^l.-H 1, 40 was carried to tlie civdit of the Seigniorial Fuuil, cAcry half year, 
 the iirincipHl and iuterost compounded semi-nnniially on this half-yearly deficit for twenty- 
 five half-years, amounts to 8i^**.-01. which I charge in the local debt of (^hiebec under the 
 
 express ai 
 
 ithorit\- of the Hi<diteenth Section of the S 
 
 eii'iilor 
 
 ial Act, is:>i, and the latter 
 
 part of the Third Set;tioii of the Seigniorial Act. \^' 
 Seigniorial Act, 185'J. 
 
 am 
 
 1 the Twentieth Sect 
 
 ion o 
 
 f tlr 
 
4!) 
 1-i. CirAUf!r.s ON Co.\s(>i.ii)Ati:i) IiEvkntk i'ndkk Skkjnioiiial Act uI'' 1859 
 
 AS UNDKU — 
 
 ('ii[iit;il <if (Jeiu-ral Soigtiiorics !?L*,77(J,l}S(i,.'',ri 
 
 Add tSri,i;iii(iiifS of St. Sidiiicc M.'Ul.Tl'J.firi 
 
 Add LowirCaiKidii Sup. Kd. (.Ii'suit'ti Estate) 'J2.r),s:5,s;5 
 
 8:?,i.'o.-.,r,s;isr) 
 
 Less iSalaiicc ImiikI, {>■'>{ GltT.Si't.'JT 
 
 SL',r.07,858,88 
 
 Tliis item lias Iicimi already fully f\|ilaiiic(l, aiid I du imt think I would lie justifiod 
 in dwelling u|i()n it any loll,!.:;!'!'. The results of the cdcnlations from whirh the above 
 figures are tal.eii, will lie found in the I'uhiic- Aecuunts for 1MJ7, part IT., page HI. 
 
 1."). liideiiiiiity to the TownNhi|)s- 87jG,710,(JO. This item arises out of the Seig- 
 niorial legislation of 18.')'J, and is fully explaineil in the Seigniorial Act of 1859, and the 
 I'lililic AeeiMint^ for 18i;7. Part 11.. page 'J\. As I'pi'er Canada under the Aet gets no 
 c(iuivaltnt or indfiimity for this large .>~iim, it iviiuires no further ohservatioiin from nie. 
 
 Mit. LanctiiN' interiiipting Mr. W'dod. said — 
 
 Mil. \V()(.)ii's argument alioiit the ta\'eni liieii-es and Seignidiy of Lauzoii. rai.scs 
 three piiints. 
 
 I. That whether these revenues were properly valued or not at 88:H.44f 4ti, as the 
 rcvomif's were now passed to Quebec, that portion of the 8'5, 113,100 0'2 duo to the .seig- 
 niors, whieli ou,;.;ht to have been covered liy that amount, liecoiiies a di'bt eoiitraeted for 
 local pui[ins(s and ought to l-e so taken account of 
 
 II. Thar, these rrveinies were foiiml not to ha\(' lieeu worth the ammint at which 
 they were \-alued, and that, tlu' ditl'ereiice oiigiit simiiarly to lir counti-d as a di'ht created 
 for loc.d [iiirposes. 
 
 III. in the course of his argument upon these two points, Iw fpiott'd the eighteenth 
 section of the Act, in order to show that special provision was made that Vjiiier Canada 
 .should get coni|tensatioii for everything lieyond Mhat the revenues really yielded, and ho 
 states that the aceotint had not been prii]ierly ki'pt. and that it was the duty of the arbi- 
 trators to revise it foi- the purpose of their own award. 
 
 Ml;. W'odH: 1 \\i>h to correct that. If I said that tin; account was not [uojierly 
 kept, 1 was not jiioperly uiiderstnnd. 1 .said that in making up the accounts after Con- 
 federation, the Statutes h;id not been followed, and that proper indemnity and e((uivalents 
 had not be( n given til I'pper Canada, .-md I say so now. When it Avas known that the 
 local levemies were divert<'d finiu the iiideiniiity to Cpper Canada, and handed back to 
 fiower Canatla. the .\uditor should, in strict justice, and in accordance with sec. iSijf 
 the Seigniori.d Act of l8.')Khave carried to the credit of th.e Cpper C.'utada nuililing 
 Fund, a suine(|iial to tin ir capitalized vahn ; and also, a fiirtlier sum eipial to the dili'er- 
 ence lietweeii the estimated and actual receipts from 1851, to Confedeiatinii ; and the 
 Auditor knows this just as well as 1 do. 
 
 1. — Mi;. Lan(;T(i.\.- The liist point divides itself into two, because the licenses and 
 s'eigniipiy of Jjau/.ou, are not exactly in the same position. 
 
 (1.) The liceus.s wcri', ill faci. sold to the l'ro\ince lor ,'<fi]s,';s;i .Mi. and th(?e rev- 
 enues would naturallv lia\e passed to the Dominion, iinles.s tlu'ie w,;s something to the 
 contrary ill the Coiil'edeiation Aet. Now, the Confederation Act ]ilaces the legislation 
 with regard to ta\ciii and oiher liceusi's, in the hands of tlm Local ( Io\t!iiiment. and I tlo 
 not think that there is any thing in the Act which tian>l'ers to the I'ldNinces, any rev(;inio 
 from licenses which hail liceii raised under former legislation, and pledgfd for a jiarticiilar 
 {uirpose. Tiiese revenues were pledged for the jiayment of so miuli of the seigniorial 
 couiiien.sation. which the r)oniinion has to ji.iy, and the Doiuinion must either have the 
 revenues or an eijuivalent to them trom (j>ueliec. liui ii is the Dominion, and ni)t Onta- 
 rio, which has to |)ay the seigniors, and Nova Smtii and New Brunswick are as much in- 
 terested in the Dominion enforcing its rights as Ontario. 1 do not, therefore, think that 
 this is a matter which arises before tho arbitrators at all. though it is an important qiics- 
 4 
 
50 
 
 tioii for tlio roiisidi-rutinii of the l)()iiiiniou (Idvorinnnit. How tlic Ddmiuion is to ro- 
 covcr tills from (.^HicIkh', and wlirtluT l^luohcc niif;lit l)y local li',ui.slatioii rt'ii<;il tlicsc taxi'.s, 
 cannot l>e a question which conios Ijoforo the arbitrators. (^)iicl)i'c nii^dit l»y local h-gisla 
 tioii, r(']ifal tht! taxes which an* a])]iro|iriat('(l to ])ay the Aylnici- and Kainonraska Court 
 Ifoust! debt, or thi'yniiyht al)nli>h the tolls ui)on the Montical tnMi]iike roads, finni which 
 interest upon the bon<ls guaranteed by the lato I'rovinco is derived. But the Dominion 
 i.s still liable to pay the interest, and it would be for it to take the jirnper steps to recover 
 it fmni C^>uebec. I mention tin se two cases as being somewhat analogous, altlniugh there 
 is this noticeable ililference, that the debts by the tiiistees for tlu; Court Houses, an<l the 
 Turnpike Koads, are eiuunerated in schetlule four, and therefore coiuts under thecogiuzanco 
 of the arbitrators. ( )ntario and (^>uebec between them, owe the capital of these t\V(j debts, 
 and an eipiivalent amount secured by certain taxes, ami due by the mad trustees, has be- 
 come tlieir joint ]iroiierty. The arbiliator.i ai(> to decidi; iiow that joint ]>ioperty is to l)e 
 divided, and with the assent of the i)nmini(/n, they may agree to strike out the capital 
 from tli<( debt due to the l)oniinion by Outaiio and (^Miebec together for thest' items, 
 handing over the assets to wiiich ever of the two relieves lhi> Doiniiiini) from the liability, 
 determining by which of the two, or in what juoportions by both, the Dominion is to be 
 reimbursed if called upon under its guarantee to pay the bond-holders. Thi.s is the me- 
 thod whicli 1 have proposed; but there is another way in which these ({uestions might be 
 dealt with, if the arbitrators think pi-oper. The items nii^ja be restored to the lialiilities 
 and assets. The del>t r'.uo by Ontario and (.^'uebec, conjointly, would be increastMl by so 
 much, leaving the ,".riiitrator.-> to divid(^ the assets, and the jtroportion of the debt to be 
 \yd\il by each in an e(|uitablc manner. Sup|)o.>e this lattei' ])]an to ha\(' beenadoj)ted, and 
 let US see lunv thes(j two items wmdd now compare wi'h the ])oition ot the debt rc[)re- 
 sented by the licenses. (Quebec, which has got the revenue, pledged to pay the interest 
 on that ])ortion of the debt, nuiht cleaily be charged with it in some way. Su])posing 
 that it had been chai'ged with this $018, (JS.'} aO in the books of the late Province, on tlie 
 .^Oth June, upon the ground that it was going to retain thesf; revenues, or in the books 
 of the Dominion after July 1st, liecause it had retained them, in either case, this would 
 have been an asset of the Dominion, for it is not enumerated in fSchedide four, and is en- 
 tirely withdrawn from the cognizance of the aibitrators. It would be for tin; Dominion 
 to collect the assets, and Nova S<i)tia and New IJnuiswick would share in the beiietit from 
 it. Hut supposing that the arbitrators did come to the conclusion to deal with them in 
 the apportionment of the debt, ^nd charged as much more upon (Quebec in conseipience. 
 This would not interfere with the J)omiiuon's claim ; and it might hajijien that (.Quebec 
 would l^e twice charged with the same thing — once by the Dominion with the whole 
 amount, .and once by the arbitrators with some portion of it. It does not appear to me 
 to be a question wliich the arbitrators can safely entertain at all. 
 
 (2.) All the same arguments a))ply to the Seigniory of l.auzon, but with this ditfer- 
 cncc — the Coiif(>(l(M'atit>n Act gives the FiOcal (iovernments authority over future licenses ; 
 but not, as I conceive, over license taxes already imposed, and on which there is a lien ; 
 hut it does expressly hand over to the Provinces all revenues of all kinds arising from 
 lands ; it hands then: over, suhject to any trusts, and it will be for the proper law otticcrs 
 to decide, whether this charge upon the revenues of the Seigniory of Lauzon, would come 
 under the meaning of a trust. 1 myself feel no (h)ubt that it does ; and, if it does, then 
 Quebec will be lial)lc to pay the amount to the Dominion ; but the arbitrators can, in my 
 view of the case, have nothing to do with it. 
 
 II. The revenues did not in fact yield the amount which they were estimated to 
 produce, and I thiidv the argument of Mr. Wood, a souml (me. In estimating the amount 
 which became chargeable on ('(Uisulidated Fund, by the Act of 1859, Mr. Wood deducts 
 the balance of the Fund, which assumtid $83-1, 1:14 10 as the value. Any deficiency upon 
 that valuation would therefore be an additional charge on Consolidated Fund, and would 
 be so nnich more debt created for local purposes. It would also give I' j)per Canada an addi- 
 tional claim for compensation, which does not ap])ear to be rnadt,' in Mr. Wood's statenujnt. 
 As to the amount, as stated by Mr. Wood, it is only an a])proximation — ita])pears to be the 
 average semi-annual detici';ncy at semi-annual interest. The total deficiency on the 12,', 
 years from the passing of the Act of 1851, to June 30tli, 1807, was $54,741 12, and if 
 
 i 
 
61 
 
 this is statcrl in an iatiTost account, we inn.st ovideiitly takt; tlio Hcnii-anmial recoipts as 
 thoy rt-ally orciirniil, wliiuli varied very niuoli t'roiii yar tu yoar. This l)ringa mo to tlio 
 third point raised. 
 
 111. Tin; IStli section of t lie Act of 1 S 5 (, provides that an interest account shall 
 1)0 kept of tilt! actual proceeiU of the rovriiufs, to the intent that any I'.xcess of expendi- 
 ture over thi.s, shall form the ha^ii.s of a eoin|)<'nsati(^n to l'})|)er Canada, .such exces.s in no 
 case to exceed $G00,()()(). Now, wlieii the Act was ))assed, it was well known that thu 
 capitalization of the revenues, together with !i?0()(),onO, would not nearly cover the coni- 
 l)en.sition to Seigniors, and that sul)se(iuent legislation would heeeme necessary. Tlie 
 Act of IS.");'), therefore, considerahly inoilititMl the arrangement contemplated liy the ISth 
 .section of the Act of IS.lt, by requiring the iveceiver-(;!eneral to invest the capital of the 
 lievomiivs and tin; $G()(),()00 in Delieutures. Sucii an investnn.'ut was not actually 
 made, liut what came to the same thing, intei'est was allowed as in a hook account. 
 When, therefore, in IS.jf), 1 opened an account for the I'jiper Canada Huililing Fund, then 
 Just created, I gave it credit for the whole $fiOO,000, which was certain tu be wanted, and 
 tin; Fund got credit for the same amotmt. When the total cost of the compensation to 
 bt! given, became known in l.'SGC), the two accounts were treated in the .vimi- way. There 
 never was such an account opened as that contemplated by tlu'. 18th section. Such an 
 account can now be maile out if the arl)itrators wi.-h it, and in tact it nnist be made out, 
 to ascertain thi> exact sum chargeable in conse(|Uence of Mr. Wood's elaim II : but if it 
 is so opened now, it cannot be made to a])ply to (jne part of the (piestion only. Jt will 
 1)e neces.sary to reconstruct the whole account, involving both the indemnity to I'pper 
 Canada and also to the Townships. 1 can oidy make out such a statement upon refer- 
 ence to the original authorities at Ottawa, and only with the assent of the Mini.ster of 
 Finance ; but ! can inilicat(> what the eiVect of such a reconstruction wo\ild be. 
 
 The Fund in May, 1809, as it stands, must have been credited with sometliing near 
 $400,000 as interest on the capital of the revenue, and the .*i)00,000, making the total 
 credit about 81,800,000, and as the halaiu'e in 18.")U, was .St;'J7.S-_> J- 'J7, the debt" including 
 interest, must have been about .^1,100,000. In the revised statements, crediting oidy the 
 actual proceeds of the revenues and their interests, the credits woidd have been about 
 $220,000, to which would have to be added the estimated v.ilue of the revenues. If we 
 now estimated them u])on the proceeds of the preceding Ah years, we Tuay call the capi- 
 tal .$710,000, or the total credits l?'.ir)O,0i)(), leaving the expenditure t(; that date of 
 $110,000 chargeable on Consolidated Fund, which would have to be credited to the IJ. C 
 Building Fund. Hut the Act of IS.")!, authorise:! ^iJOO.dOO to be exjiended, .so the Buil- 
 ding Fund woulii have l)een also ci'edited with the additional $tOO,oi)ii, which would in 
 fact have been the balance of the fund created in ]8.")1. The Act of 18;')',), gave l^. ( !. 
 and the Tuwnshi])s indemnity for everything payable beyond that balance, instead of be- 
 yond the balance of .S()'J7,82-ir d7, iisitis now stated, .so that the effect of the change upon 
 the tour accounts interested, woidd be this : — The [' . C. Huilding Fund would be dimin- 
 i.shed by the interest it had i)een ;dlowed on .^(iOO.OOO for P, years, or ;ib,)ut .'?ISl',Oi)0 ; 
 the imhunnity against tlie Municipal Loan Fund, woidd l)e increased by al) ait .?2;?7.000, 
 and the interest in proportion ; the township indemnity would l»e increjised by about a 
 quarter of tliat amount, say .?()(), OOi! and the arrears in proportion : an(i the sum which 
 Mr. AVood places in his statement as the deficiency, would bo reduced, as the deficiency 
 would now only count from 18.")9 to 18(57, upon the, ditference between the actual revenues 
 received, and the estimated value thereof, and ;is in the latter years, thi; revemies 
 increased considenibly, th(> result woidd jjrolwbly be an item on the other side, for whicli 
 Quebec ought to luive credit. 
 
 The Court adjourned ;vt .'^..'50 till to-morrow. 
 
 Saturd'tij, August 27th, 1870. 
 
 Ml!. Wool) resumed his ;xrgument, and said :— 
 
 Before I speak of the debts created for loc;il purposes in Ontario, I desire to make 
 one or two observations in reply to the remarks of Mr. L;ington, made last evening. 
 Mr. Langton says the local revenues, upon the transferem'o of whicdi to (.'onsolida- 
 ted Revenue Fund, ami as an indemnity to Upper Canada, against any contribution to thti 
 
52 
 
 chargf tluTcon mado for u purely local olijocf in Lower Canada, of i?S.^4,444 40, is aquos- 
 tion in which tlie l)oniiiiioii alone is interested, whicii has to i)ay the cajiital or tiio an- 
 nual intores^ on it at six per cent, per aninini. 1 must confess my snrpriso at such a 
 statement. 1 would like to ask Mr. l>aiigton if he rcOly means this ] Dctesho not well 
 know that the e.\cess of delit over the amount tlie Province of Canada was entith'd to 
 come into the I'nion witli, has to lie horne hy Ontario and (^hieliec, mi such ]iroportions as 
 the arbitrators shall determine, and that that excess is, liy char^'ini,' this sum into the cap- 
 ital of tho Sei;,'niors, increased hy S'^^-^t,!! ^ "K', and that now that these sources of rev- 
 enue are taken away and .iriveii to Lower Canada, Ontario will have to ]iay nioi<! than 
 one half of tliis sum/ He certainly does knnw it; and his ohservatiniis aliniit NUva 
 Scotia and New 15runswick, Jiaving an ei|ual interest in these reveinu's, witii Ontario and 
 Queliec.are not in my iuduinent entitleil [u the cdurtesy df a reply, 'i'he real truth is, that 
 the delit of the late I'lovince of Canada, tiaviiiulieen inei'eascd liy $S,') 1,4 14 40 drawn out 
 of the Consolidated lJ(>venue Fund hy Lower Canada, for Avliich it j;ave certain local rev- 
 enues, now that underthe 1!. X. A. Act, it takes themlia<k, it should assume tiiat much of 
 the excess of the deht ( '' the late Province, hefore any aiiportionnii'iit takes place between 
 Ontaiio and (^tuelice ; or. Mi'. Lanj;tiin in makiiii,' up the del't in the i'ulilic Aceiiunt.-' 
 after Confederation, slmuld, when he added this sum to the ciipital of tlie St-ii;niois, iiave 
 also added it tn the Cpper Canada I!uildiii,L; Fund. I )tspairiiii;- of u'ettini; this done now, 
 althoiiLih it is by no means just to ( liitario. i pmpdse simply to treat ii as a local expend! 
 ture in C^Hiebec, and add it to its local debts, wliicli will only partially indemnify Oulario 
 by increasing the proportion of tlu> exeos of the delit of the late Province over 
 $"GL\:iOO.()0(),\\hicli will fall to t,)uebee. 
 
 I will now jiroceed to consider brielly : — 
 
 'J'ltc assets trhich luirr Inrn }( ft IhIiIikI lnj llic ilil'ls ir/iii/i /mn ltd n fvcatid fur Icnil purposes in 
 (hilari". lui'l fiinnln;/ piirt nf tin' ilcdt i>f l/ir latr Frovincc. 
 
 L — I'l'IM'.K C.XNAD.V lkl!.IilN(i Fl'M). 
 
 Tkbrnlure Jccovnf .^.'jr^SOO. 
 
 This is the amount of the residue out-staiidiuL,' of the dtbentures issued by the late 
 Province, on the credit of the Upper Canada Puildin,!; Fund. 'Jluy aie found in the "In- 
 direct Debt " of the Public Accounts of lS(i7. 
 
 !Mll. ii.\.\i:'r(i.\. — Tliese debentures ically were issued on (he creilit of the Lunatic 
 Asylum tax. Subse(|uently. the I'ppir Canada nuildin^ Fund came into existence, and 
 the Lunatic A.-ylum tax, with all its liabilities, was merged into that fund. 
 
 Mi;. Weioli. -.Mr. Lanj^ton is perfectly correct in the ixplaiiatioii he has given. Piior 
 to the pa:->iiig of till' Act '_'0 \'ic., c. s^, there was no general fiiiul created by law, into 
 which the \aiious sums of money entitled by Statute to be expended in Cpper C.inada, 
 were collected. After ,the passin,g of that Act. these se\-eial sums wire ;ind luive been 
 placed to the creilit of tliat Fund, Avhich has also been charged with all expenditure niaih; 
 on account of I'ublic Puildings of a local character in Cpjier Canada. .Mr. Langtoii 
 in his fir.^t otHcial statement of the debt of the late Province, deducted the amount 
 of these debentures from the IJuilding I''aiid : but becau-e tiiex' ilelientures were 
 found in the fourth schedule to the 15. Js. j\. Act, and the change made in the Fjower 
 
 added to the 
 
 III the Puild- 
 
 the 
 
 iv/iilivc (tft Lia\^ Ai-iiii.li --v.ii''i»ii\ \ \ t IIM 1-'. J.1. J«. .itvi^ t»11»( 111' <llilll»i lllilM* III 
 
 Canada Su]ierior Kdiication Income riiiid. 'he sum of the dibeiitiires was ; 
 <lebt of the lat\' 1 io\ ince, oi- which is the same thing, was not deducted IVoin mt^ duhu- 
 ing Fund, bui was transferred to the a.ssets of ( Intario ; the etVect of which is to increase the 
 debt of the late Province by !?,'in.J^O(», and at the .^iame time to increase the assets of On- 
 tario by the same amount, I refer to pauc 1,', " '•■ '■ ' " '^ " '' ^'- i>..ii:- « -■--'- 
 
 18G7. 
 
 Indirect Debt" oi' the Public Accounts, 
 
 2.— Law S(1( iktv— Ci'i'i-.K Ca.n'ada 
 
 Delirnfinr ylrronnl SKi.OOO (10 
 
 Aavnid VtnrcHt 140.0ir> (il 
 
 $15(1,015 Gl. 
 
 I need enter into no explanation as to what the Law Society, L^pper Canada, is. 
 
ir tlid an- 
 al siu'li a 
 
 M' lint, veil 
 ciititlcd to 
 xiitiuns as 
 In i\\r cap- 
 CCS of I'cV- 
 
 iidio than 
 iniit Nnva 
 iitarii) and 
 th is, tliat 
 iliawii out 
 
 ncal I'OV- 
 
 it iiiiicli of 
 lictwccn 
 \cc(iinits 
 iiidis. have 
 (Inllc now, 
 ;»1 cx|)cinli- 
 iiy ( hilario 
 ^incii ovci 
 
 ])iirp(>se.s la 
 
 G,800. 
 
 Iiy the lato 
 in ilio '• Jn- 
 
 lie [iiinatic. 
 ■stcncc, ami 
 
 ^I'li. Prior 
 y law, into 
 IT Canada, 
 
 ll:l\(' ])('on 
 itiiic niaih; 
 r'. Lani^'ton 
 lie anionnt 
 
 urcs wcrcj 
 the liowcr 
 Idcd to th(> 
 
 tlic iiiiild 
 ncrcaso tlio 
 •ts of On- 
 
 AcTounts. 
 
 ) GI. 
 
 la, irt. 
 
 63 
 
 ' , 
 
 I will simply remark that it i.s an incorporation rmhracing the ]o^a.\ j>roffission in 
 Upprr Canada, instituted to provide accommodation fo;- the Superior Courts of Law and 
 K(|uity, and to re;;ulate and ;,a)Vern tlie affair^ of the ])!()ie.ssion p'enerally. TheHc mai;- 
 niticcnt hnildinj^'s in which we are now a^sendded, wero erected and are now niaintain<;d 
 by the Law Society of Upper Canada. 
 
 The deheutures mentioned, wen- issued hy the late Provini'c on the creclit of tlu; 
 income of tlie i.,aw Society, dei'iveil from taxes imposed on the j)rof;.'>.sit>ii for annual an-- 
 tificatcs, lej,'al proceedings, and on persons when admitted as Attorneys, or called as Uar- 
 risters. 'I'lio debentures at one time outstandinj,', were nuich larger in amount than they 
 now are ; Imt the ( lovernnieiit tnok them up as occasion oiVeicd, mitil at Confederation 
 only 8 Hi, '"lit remained (jutstandiuL' 
 
 The account current is made n|) of advances, and of large ^unis paid in the roilemp- 
 tion of the debentures. At Confederation, the debt both for deljentuns and account cur- 
 rent, owing to the late Province liy tlie Society, amounted to .Sli")<i,i)l."i d], incurred 
 chiefly, if not entirely, in erecting the .splendid Imildings for the aceonnnodation of the 
 Courts, known as O.sgooih^ Hall, 'i'his was an expendituie for a local object in Upper 
 Canada, and thereby the debt of the late I'mvince was increased to the amount of thc^ 
 <'Xpenditure, ami the same is an asset of the late Province. J refer to page 1! " Indirect 
 Debt," and page .'!, " Misctdlaneous Accounts" of tln' I'ulilic Accounts, IfSiJT. 
 
 M K. Ti.\N(;Tu>: said that he concun-ed in Mr. ANdod s exi)lanatioii. 
 
 .'5. — CuNSdl.IDATKD ."MlMcirAI. Lo.W VVSU — Ul'I'KK CaN.\I).\. 
 
 Capildl Anntiiit 7,:!(iO,()()(i (lO 
 
 Less Siiikin^j I'ninl J Jl»,r)4S G:; 
 
 SG,.S7(), bJl :!7 
 X(W Ciipilnl iif liiilrmhilji iniilcr Siii/iiiirinl 
 J(i, 1S.30, ('.s/<//'i^'-.sv- 
 
 Cajiilol (if Gt'iii ml Si'i(/iiiori,s.^2,77*'),?>f^() 'M\ ^^ 
 
 " Scifiiiii'iiis St. Sul/iirr.. 3l}G,7P.) GG 
 
 Jianils Kihitct 
 Sii]>. Jul. iMircr Canada 92,r)8:5 S;5 
 
 83,2()r),GS3 8.") 
 Di'ihid llalatirc I'nnd invhr 
 
 Art, 1854 G!)7,Sl>4 1)7 
 
 l.',.")07,S.j8 88 
 
 4,0G2,rj92 40 
 
 Interest Aerminl .• — 
 
 InlereKf on (itinve Capitiit f'7,.*>00,(M)0; .3..") I 7.084 l*i'. 
 
 Lestt Intere-it iiu Srii/niiiriat /ndeuiniti/ SI,.").")!', l7-"i I'.t 
 
 81.'.'G4,(iO'.t li7 
 
 . i?G,327,50l ">S 
 
 I ha\(' alieady spnl^cii of the Municipal Loan Fund ; and concerning which, there is 
 no necessity for making any further ex])lanations. 
 
 It will 1):' observed that I have Included in the iiuh'niuity to Up])ei' Canaila as a si>t- 
 off to the caj)ital, tlie whole capital of the Seigniories of St. Siilpice, ami the ca])ital of 
 the Seigniories belonging to tin' late oriler of the Jesuits, carried to the credit of Superior 
 lOducation, Lower Canada. This, I eoiiteiicl should have be(>n ilone by tlie Aiiditoi', in 
 making up the Public Accounts to the Hrst of July, 18G7. It will be seen by reference 
 to the'P. A. 18G7, ]iart II.. p. 91, that although the Auditor charge<l ,S19G,71U GG into 
 the general capital of the Seigniors, and, tiierefore, into the <lelit of the l.iti' Province of 
 Canada, theicby relieving the Lower Can.ida Municipalities Luiid to that extent, yet he 
 did not credit the U. CJ. Municipal Loan Fund indtMunity account with the .same sum, as, 
 according to the twentieth section of the Seigniorial Act, LS59, he should have done. It 
 
is thcrcfdrc niojicrly {ilaccil in tlic iiidcinnity account. The ajmlofjy for not (loin;? this, was- 
 that liy tl (' Statute only 8I4-,()(M) was to lie charucd on Consolidiitcd IJcvcniic Fund, and 
 the residue wliicii tiiriu'd out to he .?l'.)n,7l'J (1(1, was (o he cliari,'ed to the Ijower Canada 
 Muniei|iahties Fund, hut the interest on tlie capital at six per cent., was to he paid out of 
 tiu' (.'(uisolidated lieveiuio Fund, until the Municipalities Fund was uhle to make the pay- 
 Tuents re(|uired hy the Statute. It wa.« said — " True, the .Municipalities Fund never lias 
 heeii aide and never will he ahle to p;iy any part of the half yeaily interest payuietits on 
 the eaiiital, stiil it is only a inntiiij;ent liaiiility of ( "oiisolidated Keveiiue Fund, and there- 
 fore, althoufrh it is to ho charged jternianently to Consolidated Kevenuc^ Fund, and into 
 the deht of the late l^ovince. and imrease by that amount, the e.vcess of the deht to be 
 borne by Ontario and t^Uiehec, yet the indemnity account is not to be credited with it. 
 
 Well, this may have satisfied the conscience of the .Ministei' of Finance, but I nuist 
 confess it does not satisfy me, and I am quite suns it will not the Arbitrators. 
 
 A.s to the capital of the Jesuits Kstates, I have also included this in the capital of 
 the indemnity account as beinj.^ cleaily within tli(> intendment and s])irit of the statute. I 
 understand the Auditor takes i.-sue with me on this item, and will j^ive his view.s to the Arbi- 
 trators. I i.hall net. therefore, at present make any further remarks on this item, but 
 will reberve what I have to say, until I hear the arL,'ununt of the Auditor, i make; the 
 (afiital of the im'emnity account .SJ..")(l7,sr),s .'^.s ; whereas the Auditor m.akes it !?!',•_' lf<,r>, '3 r» 
 39. 1 make the interest on the capital of the indemnity ace(Uint Sle^''^>-.1 "•"> 1'^ ; whereas 
 the Auditor makes it $l,;?r.O,(;i 7 HI. 1 refer to V. A.* I'art 11., |>. 'JI, 18(^7, and to Mr. 
 Langton's statement of assets items It, 15 and lift. Sessional i'apers, Oitario, 1801), vol. 
 L', paper No. 'J'.', p. 'M. 
 
 ■l.'AclMi Il.TIIIAl, SdCli'.TV, ri'i'i'.i: C.\N.\PA. 
 
 lycan fiuuh to the A. >'., /'. C 
 
 $4,000 00 
 
 This item requires no explanation. It was a loan made tc^ the Scjciety in 18nS which 
 it has never repaid. It was a local expenditure in I'lqjer Canada, and should therefore bo 
 charged in the debts created for local purposes in thitario. It is a debt due from the 
 Society to the late Province, and is therefore an asset. See P. A., 18(J7, \). ;3, " Misccd- 
 laneous Accounts ;" Mr. Langton's statement of assets, item 18. 
 
 Tl. r.MVKlISITV I'KKMANKNT FiNH. 
 
 An nnavllnrivd rxi'rndlturi ck the l'iiii(i\^ily (I'rciivds, Tcrculo .:.. iJl,L'20 (i.'J 
 
 1 believe this is tin- expei\diture made in making a drain on the Cniversity ]iroperty 
 at the instance of some ju'ivate projierty owners adjoining tlu^ I'tuversity laiuls, which 
 was undertaken by the then Commissioner of Public Works without authority or permission 
 from the University, and was jiut a sto]) to. As the Finance Department had to charge 
 it to some one, it charged it to the I'niversity Permanent Fund, and so it appeared in 
 the Public Accounts of ISC.,^), frnm which the fourth schedule to the B. N. A. Act was 
 taken. The debt is projierly icpudiateil liy the I'niver.sity. It was subsequently written 
 ofi" to Consolidated Fund Account before Cmifedei'ation. Nothing will ever be realized 
 from it. but as it is found in the fourth sclie<lule I have includetl it in the local debts 
 and assets of Ontario. See P. A. 18(iri, p. li, "Miscellaneous Accounts;" Mr. Langton'e 
 statement of assets, item IL'. 
 
 (1, l.NiiKM.MTY in1)i:k Si:i(;niokiai. Acts. 
 
 ,'f(7 r/ 18.')4 $000,000 00 
 
 Ih. I8r)y L>,.')07,8.^8 88 
 
 13,107,858 8S 
 
 Tlie first of these items is the indemnity or e(|uivalent carried to the credit of the Upper 
 Canada Building Fuml, under the Act of I8r)4. It is, as 1 have before remarked, the 
 
55 
 
 Ill's, was- 
 iiiil, and 
 ( '.uiada. 
 <1 iiuL ot 
 tlic jiay- 
 •vcr lias 
 
 ll'IltS (III 
 
 id tlicro- 
 uid into 
 •111 t(i he 
 nil it. 
 
 L lIllLvt 
 
 (inly rral ((iiniiciisalidii I'iumt Canada ever j,'(it fur a debt inciiriT(l nn accdiinl of llin 
 S,'igtii(»ri( s in Luwcr Ciinada of §4,77'J,'J11 2fS ! 
 
 'I'lic srciii' 1 item is the caiiifal of tlic rppir Canada Nriinicipal I<nan Kiind indi'innity 
 ricconnt under ilie Sei^nioi'ia! Aet of ISTi'.!. It i^ ^)[' im value tn I ' |i|ier( 'aiiada and ii iinicly 
 introduri d hero to keep u[> tli(! eorreit >Y'//*/s of tlie relative indi'litediu's-i of I'pper ami 
 Lower ( 'anada, on account of local expenditure. It wxi admitted into tlie I'ulilic Accounts 
 merely as a liooklieepiiij,' device -lieinj,' of uo suhs/iiitlint ntliic to I'pper Canada. Xo 
 i,'(iod (;an result now, l»y .t^niuL,' into an elalmiatc e.vplanat inn of it. Tlie ilhisinn held 
 out to rp[)er Canada under the Statute, was that when tlie accumulations at .si.v per cent, 
 half-yearly on the capital of the indemnity account amouutiMl to the arrears on tlie .Muni- 
 cipal Loan Fund, T'jiper Canada, then tin- half-yeaily cri'dits over and .aliuvi ciineiit, 
 arrears on that I''und, should lie p.aid to the Clerj;y Kescrve ( .Muiiiiipalities) I''und, 
 Upper Canada, and ]n\ distrihuted as are the monies of that Fund. l{ut it was widl 
 known that these accnmulations would never overtakt; the arrears. When Coni'cderatioii 
 took place, these credits, as a matter of cniirse, ceased, 'riierefure, it is impossililo 
 that Ontario slmuld ever deri\e ;my in'iiefit fnim this jiretemled indemnity ; and were nut 
 the e.xcesti of debt to be divided according; to the sum of local e.vpeudilure in I'pper 
 Canada and Lower Caiiaila, which produced that e.xcoss, tliero would be no piod in at all 
 iiitroducinji; it, in treatiiif^ of the siiliject matter of reference befure the .\rliitralois, ex- 
 cept to show hdW very much Lower Canada has had the advauta^i- df I'pper Caiuula in 
 the o.vpenditure of the pidilic monies in its section (jf the late Province of Canada. 
 
 This concludes, for the |iresent, my observations on the del)t.s and assi'ts in Ontario. 
 
 I'erhaps the Auditor would now like to make some observations. 
 
 Mli. L.\.N(iT(iN.--I would like to make some remarks ou the arguinunts of Mr. 
 Wood. 
 
 In tlie debts and assets of Ontario, the only point of diHiciilty, is tiie cajiital of the 
 Stiigniories of St. Stilpice, and of the .Jesuits Kstates. 
 
 The circumstances of the case were these: — 'I'Ik^ Act provided that only .?llii, 000 
 was to be cliar,^ed against Consolidated Revenue Fuiul ; the re.st, l?l'.t(;,71'.t (')(!, was to be 
 chartjed a,i,'ainst the Municipalities' ]''iiud, Lower Canada ; but if that Fund found itself 
 unable to |iay si.x per cent, per annum on this -^liMi,?!'.* (iti, then the Consolidated iJeve- 
 nue Fund was to advance the money and make the half-yearly payments on the capital, 
 until the Municipalities Fund, Lower Canada, should be in a position to make the pay- 
 ments. Up to Confederation it wa.? able to pay iintliin^^ In fact, it never would have 
 been able to pay anyliin^. After it was known that Confederation would take jilace, 
 in making tip the indeminty account in IHOG, I obtained the ojiinioii of the law olticers of 
 the Crown, as to whether the whole 8o3(),71'.» (i'i was to br taken into the calculation 
 of the indemnity account, or ntily .*ll<i,()(i() ; ami the anssver was, that as the .'?l',n'i.7 l',j 
 *i(i charged a.icainst the i>ower Canada Munii'ipalities Fund, was merely a contingent lia- 
 bility on the Consolidatcnl Uevenue Fund, I was not to take it into account in calcula- 
 ting the indemnity due to Upper Canada. 
 
 Hut 1 must confess there is great force in Mr. Wood's argument. For l>y ('oiife(ler- 
 ation, which was then shortly to take place, the Indemnity Fund was wiped out ; and the 
 Lower Canada Municipalities Fund was relieved altogether from this charge of !?|y(i,- 
 7iU CiTi, liy the sauK! lieing charged into the capi' '.1 of the general Seigniories. It does 
 seem that when this was charged into the permanent debt of the late I'rovince, whereliy 
 its debt was increased by that sum, and thereliy Ontario was made liable for its portion 
 of it, the Indemnity Fund to Upper Canada, should have been increased by the same 
 Bum. I think, therefore, that Mr. \\'ood's argument is a very sound one, for the nonun- 
 ion has no way of getting this back from Lower Canada, and it must, therefore, go into 
 and increase the excess of debt over $02,500,000, which Ontario will l)e obliged to help 
 
 pay. 
 
 But in case yon allow compensation on the whole $330,710 00, then the Lower Can- 
 ada Mnrucipalities Fund must lie revised as it stands revised in Mr. Wood's statement. 
 But if you reject his view of the case, and do not allow compensation for the whole capi- 
 tal of the Seigniories of St. Sulpice, then the statement of the capital of the Seignior- 
 ies must be altered to what it stands in the Public Accounts of U^07. and the Lower 
 
56 
 
 ('.ina<1;i ^fllIlil■ipalitil■s Fiiiul nuist Ih- restored to its nri;,'iniil sum. If yoii art iijioti \rr. 
 Wodil's .sii;,'j,'esti(iii, it iiiii>t, liDWeVer, lie liuriie ill iniiiil lliat eorresiiDiidiiii,' eiiaii;,'e..s must 
 l)(( made in the iiideinnity to tlio Tnwiisliips wliiili imi.st also bo increased in a eorrcri 
 ]Kiiidiii;^' ratio. 
 
 'I'lie next ]HMiit i.-> llie .)l•^^lits Hstates. I am (|iiite wiilin;,' to admit tlial I jiper Can- 
 ada nii;.'lit to lia\i' iiatl eumpeiisation for tlu' i'a)>ital of tiirso l">tiite« ; Itiit as a mutter of 
 faet, as we (aimot pass lieyond the law, ilid tlie statute ;,Mve such (ompunsatioii ( I tliirik 
 it is very dear tliat it diil not. It .statis distinitly in tiie twentieth section, tiiat l'|ii>er 
 Canaihi was to liave eompensation for every tliin.n' which was imhided in tlu; forest ,n;^ 
 ilaiiNcs. Having; disposed of all monici made payahle hy t!ie lore^'oinj; provisions of tho 
 Act, then conie.s anotlifr clau.^e not amonj:>t the fore^'oin,n jtrovisiuns, which j^ive.s .^',t'J,r)''^-' 
 8.'<, the ca])ital of the .ItNuits iv-.tates to Superior l'Mu(aiioii, Lower Canada. 'I'he aihi- 
 trator.-' lan only ,i,'o hy the .\(t. and 1 imi thiidv its innstniction can admit of a douht 
 l>nl I Iiajiiien to know a-idi' tinm the wordin;,' of the Act, that the provisictii maile willi 
 respect to the capital of the |>tates helon^in^' to tli«' late order <»f .lesns. was placed in 
 the st.itute as it now stands, /// unln' Hint /(•ni/n iisiilii>ii hiii/lil iinl In' iiinn la I /'/"r Ciiinidd, 
 iDlil l/l'il .-Ui/t fill) till liililifinii I'l llir iiiniiiilinli iniiiiinli IS iif l/ir .Irf nt tin linn "/ it.i jinssinij. 
 
 Mi;. WiiDii. l)o \i,\\ me.in {<> till me ijiat they hnndwinked the I,ei;i-la(uiv in that 
 way f 
 
 Mk. l,.\N(ili>N. I was ill rariiaiiient at the time, and had a cduversalion with a 
 jjeiitleniaii who knew all aliout it ; and he told n\o the clause had liceii placed as it is 
 found in the statute ilesinnedly, and that it was not intende<l to <;ive eompensation for 
 tho capital of these estates. 
 
 l!ut there was another much worse ca>e. in an i\ct afterwanls passed in ISO), 
 i?ll.'M""* ^^'''^ ch;ir,i;cd a,;;ain>f Con.-olidaled Keveiuie I''und for the Sei<;niories, and I 
 asked the law nlHcers of the Criiwn \\iv their opinion, as In whethei' coinpeii.sation should 
 lie given to Cpper Canaihi for it. They rejilied, that strictly in law, no compensation 
 was provideil for it, luil that, ne\erlhelcss, 1 was to ^ive it, and I did so. So that, in 
 fact, l'pl"'i' ' '•'"■I'hi got ciiin]iensation uiKh'r an Act pa>>cd two years aftei' tho Ai;t of 
 1851', ill wliicli iiii word was s.ud ahoiit it. 
 
 Mi:. W'dtiii. This is news tome. I wunder what has hecunie nf that, item of com- 
 poiLsatioii. 1 do not tiiid it in the puhlic accounts, lint if compensation was allowed in 
 a case so \'ery douhtful, certainly it should he given in one where the .irgument is so con 
 (lusive as to its justice, and as 1 think so clear as to its legality. 
 
 .Mk. L.\N(;Ti)N. — The (|Uest:on nf tin' capital i>\' the .lesiiit.s Kstates, is really, as Mr. 
 Wood kno\\s, a matter of veiy little c(i)ise(|Uem''', as it would simply go into that which 
 now has liecome an im.iginary fund, the Cjiper Canada Scigiiii'ri.d liulemnity Account, 
 and the ditfeience would only he eight years u])nn the capital deducted from the Ontario 
 local delits ; and if alhiwcd, would, as has Iteen oitserved in inference to thi' whole capital 
 of the Seigniories of St. .Sidpice, nece>sitate coirespoiiding changes in the indemnity to 
 the 'i'ou n-liips. I'oidcs. as 1 ha\c already s.iid. I do not think in law it is al' /wahle ; 
 and J think it w ndd In- hetter for Mr. W'nud to withdraw the claim. I think his .^afest 
 cour.se is not tu in.^i>t upon any claim <o very douhtful, to say the lea.>t of it, as this 
 item. 
 
 One iithcr item I will make nientiim nf. is thi' intcrot "ii the c.ipital ut' the indem 
 iiil\. i .see i\rr. Wood lias com])Uted it at six per ct'iit., with half yearly rests I'oi' si.vteen 
 and uiie half years, (^f course, in making my calculations, I did not inclutle these items. 
 Ihit apait from these items altogether, I call attention to tlie report I made in my " stab;- 
 meiit of assets," as to the justness of increasing the interest liy comiHiundiiig it half"- 
 yearly. Jn tin- Provincial hooks, there has heeii alh^ved (in this indemnity account so many 
 years annual interest, hut not compound interest. 'i"he interest on tlie indemnity account 
 is the e(|uivalent or parallel of the interest tli.it is charged upon the arrears of the Municip d 
 Loan Fund, and that is at compound interest. It ajipeais to me that the two .iccounls 
 are parallel account.s. If compound interest is charged against the one, it .shouhl he al 
 lowed to the other, otlierwi.se it is not a full imlemnity. It would lie well for the arbi- 
 trators to look over my report on this sidiject, in my " statement of assi;t.s." 1 know Mr. 
 AVoud is familiar with it 
 
 M 
 
 I 
 
57 
 
 must 
 
 i ufl'tM 
 
 li ('an- 
 il tn- i.f 
 lliiiik 
 I ppcr 
 
 lit' tlio 
 |tL',r)S:l 
 |i' arl)i 
 
 Inlllit 
 
 ' witli 
 
 |M'ril iu 
 hill, 
 
 'i^sinij. 
 
 1 tlx'irl'un: tliiiik tlic iiiti'ivsl nil till- iinliiiiiiitv acmiiiit, iLs it now .stiiiiiI-> in tin* |iiil>lii: 
 accounts, slionltl )»! iiicivusfil hy the rlitVi rcnrt! liftMi-inj .'siiiiplf aixl riini|ii>iinil iiitcrcMt. 
 AHsiiniin;^' tin* ciipital of tin- imliiiiiiitv at tlit- ^iim it >taii(ls in tli<' |iul>lii; accountA, 
 §L',l.'ls,ri."ir» :il), tins (lilliunn' w.mM anpumt to S-'I t.'.fj:! 7.">. 
 
 \Vlictli»r (ir ii')t, Mr. \\()(mI lias taken tliis int 
 
 II iiniil 
 
 ml. I ilii ncit kniivv ; luit in 
 
 fin.illv ailiii^tiii;; llic anidiint of llir i|ilit> ami asset.-, it wi.nlil lie well tn liear it in iiiiii<l. 
 I lliitii^ this ili,-|inses of eMiytliiiiL; in I '|'|ier ('aiiada. 
 
 Mil. WiKiD. 1 \\\A\ tn (itl'ir a f«\v iili,seivatifHis in ii ply tn.Mr. |,ani;t(in, \vithre;;artl 
 to tlie .lesiiit estates, naiiii il in the ■-iliiiliile as ".le>nits lv>tates, SM|.ei ini' Md. !<. (J., 
 8!)-,riS.'{ h'l." In an ntiieial return liinuulii (luwn to tile lliiu-e in |.s('i".». tioni the linanoo 
 
 • lepailnieni, Se>Nioiial |ia|ieis, I Milt, vol. •_'. No. ,">, jia|ii'r No, Cil, it is .-tatetl : — 
 
 '• it i.-. flirtllel to lie ol..sel\e(i tli.it tin le ate t W o lialiilit iis illelilliil llmler tlie Seii^ 
 
 nioiial Act of is,"i',t, ii|ion wliieli, mitliei tlie to\vii-lii|is nor l'|i|ier Canada iiave reeeiveii 
 any imlfmnity, viz : Tlie ..ipital of tlie .(.,-iiits I'lstate.*, .*!»2,r)H;{ h;5, ami 81'."), 71!) OH, 
 ■\viiieli vva^ |iait of tlie (aiiital of the Seiuniot iis of St. Snlpiee, wliieli was mailea eliar}j;i! 
 a^'.iinst the l.ower ( 'aiiaila .Miiiiieiiialities i'liinl. ami not a;:aiii>t tho Consolidated |''nnd. 
 
 Cntil. however, the former tnnd was aide li 
 
 th 
 
 iteie.-t on till! 
 
 lit It. However, tlie loiiiier tnmi was ai>ie to jiay tiie aiiniiat anionnt. the inteie.-i <ii 
 ijpl'Jii.T 11) (ifi was to he paid out of the Coii>olidated I'nml ; and it is imlmled in the 
 $.'5,1 13.100 02 whi'li iseonnted as part of tin- deht ol the late I'rovime, the eorres|>on- 
 (Jini; lialiilit V of the .MniiieipaJitie.s |''uiid. lieinu iio\v an as-et of (^tiidiee, ".!ii!er tlie II. N. 
 A. Aet." 
 
 .\s to the !?llMi,7lll I'h'i, part of thr eapit.ll of the Sei;;niorie-, of St. Slllpiee, till re 
 
 needs no di>eii.»ioii. |)owii to the time of Confederation, it was lei^arded as merely a 
 i-ontinuiiit liahilily of Consolidated Ii'ivemie Fund, Init iioniiiially a ehar;,'e a;^'ainst the 
 Lower Canada Miinieipalities Fund, to whosr diht it was carried in aecoimt. I'.iit in 
 jiiaKini.' up the drlit of the late i'lovinee. after ( 'onfi'deiation, it was |ierniaiiently ehar.L;ed 
 a;^aiii.-t the late rmv ime. and iiirluded in the eajiital of the Seinnioriis in the item. 
 §;5.ll:5.lOO Ol'. found in the statem. nl ot the deht, I'. A., lsi;s, |'. Ill, p. 70, and tho.so 
 of lS(i7, I'. II, p. Ul. In making iiji the local dehts of Lower Canada, it iiin>t therefore 
 h(! transferred frniu the Miiiiicipaliti« .> I'lind to the (ajiifal of the Sei«;niories, as I have 
 explained in former oh.servations on this ^ulliel•t. I'.iit I am now speakin.i; with reference 
 to this item, as it stands in the statement of the loc.il dehts of I pper ( 'anada. included in 
 the ind'/nmit}' account, as an oll'-sei to the capit.d of the Municipal Loan |'"nnd of Cpper 
 Can.id.i. There can he no i|iie.-tion. it .-liould now tom, part of the c.ipital of that ihdemnity 
 account under section luentyot' the Seimiioiial Act. I>."tli. This is niaiiife-l. Indeed, it, 
 is admitted hy the Auditor. 
 
 I!ut the red <|Uestion I wish to discuss in this connection is. hould the capital of 
 the .Jesuits K.-tates, .'irlil'..-»s:5 s;') also form part of the capital of that indemnity account \ 1 
 think it should, for the rea.soiis ;,dven in the almve extract from the otfn ial return made 
 hy the |''iiiance Dcpaitnient on this .-iihject. and liec;iu.-e a careful coii,>ideration of the 
 .st.itiites, Seiuninii.il .Act, IS.'il.aiid the ,\cts of i.s.'.."i. iSTui and IS.'i'j, amending it, to 
 several clau.M's of which I shall refer, seem fully to ju>tify it. 
 
 Section tliiity-ti\e (if the Seinnioiial ,\ct of 1>*.")I. .-ays : - 
 
 '• And to)- the ii I pretatioii of this .\ct lie it enacted lliat none ot' the jnovL-ions 
 of this Act. shall e.Meiid to the wild and uncultivated lands in Sei;;nioiies held hy the 
 ('I'own in trust for the Indians, nor to the Seiunioiie- held hy the ect lesiastics of the 
 Seminary of St. Sulpice. of Montreal, nor either of the Fi. !'-. N'azaielh, St. Aui^'ustine, 
 St. .lo.seph, Clos-e, and otlu r iini' iifi' fs ilepeiidin,:.; upon (ni'-iiit i/'J any of s.iid Seig- 
 niories, nor to the Seigniories of the Lite ordei' of .N -iiits. or other Seigniories held hy 
 the Crown, and not ahove mentioned, mu to the Seigniories held hy the principal ofliceis 
 of Her Majesty's ordnance, imr to any lauds held m /nun: aliiu tu'h/'', and granted under, 
 and hy virtue of the Act pas.sed in the third year of the reign of his late Majesty King 
 (Jeorge the l''ourth, and entitled an .\ct for the lelief of certain ('• ii.-<ilniir.< or ijiiuilri.^ nj 
 La Salle and others therein ineiitioned, jiosse.ssiiig lands within the limits of the townshii) 
 of Siu'irington : I'rovided always that the (iovernor in Cuimcil may, if ho .shall .sec tit, 
 ^rant to the (knsiUwys of the Crown Seigniories, the revenues whereof tielong to the Prov- 
 
A8 
 
 incc, nn*'lii(lin,T tlio Scijrfiioru's of (lie late (inirr oC tIcMiits) iipnii ((iiniiiiitatinti of their 
 liiiidH, t(|iial .i(lsanl.i;.'fs iiiid rclirl' as an- l.rrcliy granted (o the Ci iiHitdiiis of Sfigiiioriou 
 not t'xcepted from llic o|K'rati(m of IIiIh Act." 
 
 I)id " till- (Jovirimr iti ('(iiiticil grant tlic niual advatitagi's and nlicf" to thr Soig 
 niorii'H of tlif liitf older of .lr>iiii!, ? W't r>' tlicv ti'ilinically <'io\vii Scigniorifs, or \viu< 
 tlic legal estate vested in tlir Crown, and did the Crown holij tlieni in tniHt for Sniierior 
 KdiK atioii in Lower Canatla 'f It would appear that lioth these (pu'stions niiint lie an- 
 »iW( red ill the alliiinati\('. 
 
 1. 'I'he language used is '• Crown Seigniories, including tin- Seigniories, of the laU' 
 
 order (if .lesuits." 
 
 'J. In the Seigniorial Aet, ISf!."). section 7. passi d only \\\r Tnonths after the Act. 
 I8.'"i4. it is declared tli.at " Notwithsl.uiding anything in tlie said .Seigniorial Act, scheduleH 
 may, il the (iovernor siiall see tit so to direct, he made under the provisions thereof, for 
 the Seigniorif's held hy tho Crown, and the revemies whereof belong to the Province, in- 
 cluding the Seigniories of the late order of .lesuits, in like in;inner and under the safnc 
 {irovisioiis as I'or other Seigniories, (omitting such parti<ulars as cannot apply to Crown 
 Seigniories), and with like powers to the eoininissioncrs : Provided that no part of the 
 a[ipropriation in aid ot {\u- I'tusihurr.-^ made hy tlw said Act, .ihall he ajiplied towards the 
 redcni|ition of Seignorial lights in ^ueh Crown Seigniories, nor shall any such Kchedule he 
 dejiosited in theniaiiner provided in the liUh section of the said Act, tir opi^rate any com- 
 pul.iury commutation ot temire, or suhstitulion of any rente nnnitituci for Seigniorial rights 
 and <hies in such Seigniory ; hut the (Jovernor in Council may. if he H<'es fit, allow to tlio 
 ('(iisridircs in the said Seigniories uiiori cominutatitin of their lands, e(|ual advantages and 
 relief with those wliich tht> Ci usitdiri s in other Seigniories, shall hi' found to ohtain under 
 the said Aet, and the schedules nuuh* under ihis section, sh.all serve as the basis for cal- 
 culating the extent <if such .advantages and relief to be so allowed to the Ci'iuilniics in 
 the said ( 'rown Seigniories." 
 
 In this section further provision is m.ade for ascertaining the value of the capital of 
 feudal rights in the Seigniories of the kite order of Jesuits ami it is but fair to pre 
 sume that the (Iovernor did direct the scheilules to be m.'ide, and that under that 
 direction they were made. It would also appear to be <'onchisive that lliese Seigniorit's 
 were technically Crown Seigniories, although known as Seigniories of the late order of 
 .lesuits, because, before their confiscation they belonged to that order. 
 
 ^. No other and distinct and direct authority than that given in the sections cited, 
 can be found bringing tiiese Seigniories under H; • operation of the Seigniorial Acts of 
 18;") 4 and 18."),^.. 
 
 4, Tile annual payments on the capital ascertained under the provisions of these 
 tw<i Acts, could not be p.-iid out of the fund of 18.''i4 ; and the only authority for their 
 payment out of tlie Consolidated Revenue Fund, is contained in the seventli si'ction of 
 the Seigniorial ,\ct, 18,'tU, wliich assumes that these Seigniories were, jirior thereto, 
 brought under the provisions of the Acts of 18r)4 and I8.'^ir), in so far as ascertaining the 
 capital value of the rights and duties w.asconcerned ; and therefore, it simply provides for 
 half-yearly payments out of Provincial funds. It is as follows ; 
 
 " So much of the constituted rents representir.g the ladt^ ct nnks and other casual 
 rights, as will not be redeemed, out of the fund ap[iropriated for the relief of the Ccntd- 
 lains by the Seigniorial Act of 18r)4, shall be assumed by the Province, ;ind [laid by the 
 Receiver (Jenoral, out of the Consolidated Revenue Fund, to the Seigniors oi- parties 
 respectively entitled to such rnitrs half yearly, on the first day of .hinuary and July, and 
 the ('rn.iitaircs shall be discharged from the payment thereof" 
 
 t*). The specific mention of the Seigniories of St. Sulpice and not those of the Je- 
 suits, clearly proves that tlu^ latter Seigniories had been brought umler the operation of 
 the statutes of 18.')4 and 18,")5, and were included in the provisions of the .seventh sec- 
 tion of the Act of 18,'')9 above cited. 
 
 (!. The large amount of arrears, $47,G80 04, more than half the capital, .shows that 
 they had been under the operation of the statutes of 1854 and 18,'),''>, tor a much longer 
 time than from the passing of the Act of 1851), when by that Act, the annual or half 
 
 4 
 
 ttmmstmessiv 
 
r>'j 
 
 iH'tr 
 
 ricir 
 iiii- 
 
 rly p/iymnnt nf thf S('i£»nir)rinl (liitics were sii*.|Hnilii| tun! ullowid {<> ai'nmnilatn. 
 
 Thii'lH'dinrtlv ;i.liiiiltc(| lu Lr tin- I'lcf iii tlio twenty lliinl h.cti.in nt" tin- Act of 1S">',» 
 
 " '2'-\. A sum of iiiiiiicy <ijiial tu tlir niiistiliilnl ri nl.i tcpirsi'iitiiij^ Ak/s (■/ ri/z/cv mid 
 r.'iKiml rijilits in tin' Siii.Miinrir-i rniiuin;,' |iait of tlir .lc.«iiitH KstatrH. tn lie lali iilatnl in 
 llic riianmr priH lilinl liy the sail! Sii^nidiial Ail <<{' ls.')|, ami tlif Arts aiiirmliii;^ it, 
 mi<i rcckumd tViim ilic tiirn' vtIhti tlic »<aiil casual i'i;;litH were alMili>|it'(l, sliall In- |iai(i 
 yearly (Hit nf tin' ( 'nhMiliiJatt li Ki m lun' l''iiml, tit tlir Lnwrr Caiiaila Su|ii lim' I'.ilm alinii 
 Fumi." 
 
 {■'iir tlic fort'fjoirin rcnmins, I rfpfnt it scvtus ihtIi'i tly < jiai lliat tJH'Hc Si'ij;iii(»rit's were 
 not liy I lie sect inn just i|mitti|, Init Iiy tin- ilin rtinu nl'thr ( liiMiiiiuiimiri' srctinn tliiity livr, 
 SciL,'niiirial Ait nf |Sj|, ami scdinn rij.'lit, Si ii^nimial Art nf l^.'i.'i, )Mnuj.'iit williin tin; 
 oiHTatinns nl' llnsi- twn A'ts, as wrll as within the |tr(ivi/.iuiis of tin' Hulistr|nfiit Aitsnf 
 l^'^^t■^ ami l^'i'.t. If tliis cuiiclusinii lie inrn'it, provisinn for tin' payiiniit to In- mailr on 
 tliis caiiital was |inpvii|cil fur. in tin' M'Vriitli scctioii of the Art nf l.'«ril», ami tin- pay 
 nrnts ari' ininpnhi'iniril in thr twMitirtli sictinu nf llif >amr Ail ; ami tlMii'fmr I'pptr 
 
 I'ln 
 
 Canada must liavr carriiil tu tlir irnlit nf tlir rapital nf it> Municipal l.nan l''unil iml. ... 
 nity account, a num iipial to tlio capital of the Sfi^niorics of tlic .Icsuits K^latr^, JfltL',r)83 
 i<',V till' twrnty tliiril M'llinu nf tin' .\it nf Is.'i'.t, simply ilirntinu' '" ^^ll.■lt fund tin' pay- 
 mcutw should be made, and makinj,' .-mh paynnnts _\ rally iunltad nf half \ early. 
 
 Ml!. liANOTON, in reply, cuntemled that the diMiil K.-,iates did imt eome under tin- 
 statute, lie would rail the .'ittetllinli nf ihe A riui ratois to the difliciilty they would ;,'et 
 into, if they allnwed I pjier ( 'anada indeinnil} with regard to this ilcin. If they allowivl 
 UpIKT Canada in«letniiity, they would also he {ihiiu'i'd to ^'laiit imipinnity to the town- 
 ships, and imrease the dehi of the late I'loviiiie. Were they prepared as arhitrators to 
 lukiMliis upon themselves, without eoiisultation with tiie I lominioii ( loveinmeiit ' lie 
 felt hound to give an opinion on the sulijeit. and a wMrniii:; to the ai 'mtratni-, of the dif 
 ficulty tluy would place theniM'lves in. 
 
 Ml!. \V(tOI». 'I'iie arhitrators were hound to examim- every item in the schedule, 
 and givo a decision. Mr. i-anj^ton h.ad failed to show why any dill'erence should he made 
 between the ilesuit Seinniories and other Seinuiories those of .St. Suliiice tor instance. 
 Ak to the townships, that was a domestic all'aii as the townships were situiiled in t^Jue- 
 bec, while the puint under discussion, was ;i matter lietween the two Provinces. 
 
 Ml!. I.ANi;riiN. It would, perhaps, be ad\isab|e to make a calculation, and see if it 
 was Worth while to create adillicnlty for (lie amount at issue. 
 
 Ml!. \V(in|t, We are obliged to f^ive uji lai'ice siuns in this connection and we shall 
 give u|i as little more as possil'le. I cannot see how the dominion (Joseinnn nt can fail 
 Ut reimburse Ontario if they allow (^>iieliec to take these aiiinimts. 
 
 Ml!. liAMiloN haviiif.' tinislied his calciilalion, stated th.it tiie amniini in dispute 
 would {;ive I hitaiio S.''.">'i per ;iiinum, and the townships ,* 1. Odd. And the capit.tl of these 
 annual sums will h;ive to be added to the debt of the late I'rovince. it will involve the 
 re-casting of the whole Seigniorial accounts. It is a very serious matter. 
 
 Common Sciiniii. Finu and Iri'KU Canaha I.anh 1mi'i;(i\ i;Mr.NT I'ind. 
 
 .Ml!. Wool) then took lip the (|Uestinn of the ( 'oninioii School l'"uiid. and I 'pl"''' Can- 
 ad.i Impioxemeut I'^mid. and .said tiiat in the Public Lands Act, jiiissed in |s.'p:i, the four- 
 teenth section made provision for the estalilislinieiit of the l']iper Canada Land Improve- 
 ment P'uiid. The substance of tlii.s .section will lie found in the Consolidated Statutes of 
 Canada, chaji. '2Ci, sec. 7, p. 'W^. entitled " An Act respecting the Public School Lands and 
 Fund for Kducation," jiy icference to the first .section of this chapter, it will be observed 
 that under the authority of I'J \'ic. diap. "Jdn, a million acres of the waste lands of the 
 Crown, were set apjirt for the establishment of a Common Sclioid Fund. These lands 
 were situate chiefly in what now constitutes the counties of Huron, Hrncc and (!rey. At 
 that time they were em])liatically waste lands of the Crown, far removed from the settled 
 portions of the Province, without roads, or any but the most difficult means of access. 
 The Bettlenient of the wild laiuls of tlie Crown proceeded slowly. The school lands were 
 
()() 
 
 I. 1 
 
 licld at 8"2 r)0 per .aciv, and tii<' Trown lamls at !?2 per ai-rc. Tlio cfnintry callod loudly 
 fur sudi t'lK'oiiiayciiicut to Ix' atlui'dcd liy tlic ( !i)Vi'riiiiu'iit of llio day as to iudiii'c pt^r.soii.s 
 to tako up and settlo these lands — pointing out that tho greatest obstacle! to settlement, 
 was the want nf roads and hridges, and such other loi'al improvements as wi'rr indisjien- 
 sahle in an nnlii'okcn \vil(lcrne.>,s. Cnder these eiiciirnstanecs, thi; (lovrnineiit of the 
 day adopt' (I a vigorous jmlicy with respect of the aetual setthinent of the wild laml.s of 
 the eountry. And in ])nrsnanct! of this ])olic'y, the then Commissioner of Crown Lands, 
 Dr. Kolph, made the following icpoit to the eommittfc of the Kxeeiitive Council : — 
 
 '• Mr.MnK.vNUr.M." 
 
 '•'Die C(>iiiiMi.--.>inner (if Crown Lands its])ertfnlly siihniits that in oider to liiilitate tli" 
 .settlement d' tiie eonnties of ihiin' and Crey, tie' school lands he reduced fioni I'Js. (id- 
 to 10s. ell'. lency ])eracn', ]iayal.le by annua! in.italnients in t(>ii yeais with intficsl. Tiiat 
 all fiitiin- sales in the said countiis, shall l>c on tiic f(>llo\,in .^ terms, viz; That there 
 shall 111' actual and iniineiiiuto and continuous .settlement during li\e years ; that there 
 .■^hall lie ( 1 'ared am'ually within the first five years, live aeres u])on each ,ind every lot td" 
 one hundred acres (or fifty ac!es free grant, as the ease may he), with a dwelling hou.se 
 liuilt eighteen feei l)y tweiit .-six feet upon each lot ; that the occupant shall neither sell 
 nor cut, niir ]iei'niit i.iiy j/ci'sdu whatsoever, to .sell or cut. any of the gruwing wnod niioii 
 the said naicel nf land, excepting for the clearance of the land, fur his fuel, ami for the 
 l»ui!din','s and teiices he may ereit upmi the same, unli! the same lot i> paid fuiand p.iten- 
 tei( ; ihat until paid fur and ]iatented, all wmd cut lur otiier olijects on the same pai'cel 
 of land, sinill he deemed to havi' licen cut liy the occupant, and may he taken and (.arried 
 away hy any per^m duly .'iiithorizeil hy the government to that <ti'ect, without any for 
 Tuality whatever; tiiat when the land has been paid for and p.itented, the timber, though 
 owned liy tlie jiatentee. >liall be held liaiile without any claim for remuneration by the 
 purchaser, or iliose claimiii'.' b • or through him, to any (hies the Legislature may phase 
 hereafter to imjxise on timber gei; vally. 
 
 " That on defuilt of ihe occupant to fiillil and oliserve any of the conditions above 
 s])ecified, the < 'omiuissioiier of Crown Lands, his successor in otlice, or any other olVicer 
 duly authorized, may, on beh.ilf of the Crown, re-enter and take liack the said parcel of 
 hiinl without institution of legal iiroceedings therefcue, or otluMwise eject therefrom the 
 occupant, his heirs and assigns, or othei' posons in [lossessioii, and dispose of the same as 
 to the coiupeient autiioiities shall .seem niei t. 
 
 " That the regulations necessary to carry out and eiisuK^ the dct:.ils of such actual 
 and hmn full' settb nient, be estalili^hed and enforced by the ("ommissiouer of Crown Lainls 
 for the time being. 
 
 " That appiicati n lie made to the Legislatir.v to .dlow l'>. fid. jier acre of the pur- 
 eliase uioiiey to be .•x|i, ndei! on tl: ■ loc;d roads and harbours, ;ui<l that no deed issue until 
 the terms of settlement and pavnient are fnliilled. 
 
 (Signed). '-.lOllN KOLIMI. 
 
 -.".rd .luly, is.-.L'." 
 
 '•CuiM'.i; l\ CotNcil.. 7tii .Inly. Is70." 
 
 I'pon which an oiiler in ('oumil was [lassed in these words ; 
 
 " l'|ion the nieiuorauiium siilniiitted by the Comniissionei' of Crown liivmls, relativti 
 to till' School Lands in the Counties of (Srey and Ihiice, the Committee of Council i-ecom 
 mend tl e reduction in nrici' fVoin Us C.d to l<ts an acre, as suggested, be approved, and 
 that th(^ I'eguhitions laid down in tiie said Ki'port be adopted; and further, that a measure 
 be submitted to raili.iment to authorize the expenditure of a sum (Mpial to 2s Od an acre 
 of the pui.'hiise iiKuiey on the improvement of the roads and h;iiliors within llu; .said 
 Counties ; and the Committee further recommend that not moie than '_'(")() acres be «'dd to 
 uny one individual except .:poii special recommendation of the ( 'ommissi(/ner of (,'rovvu 
 Lands, approved of by ilis Kxiellcncy in Council. 
 
 (Signed.) "W. A. llI.\LS\V01iTlL 
 
 "To tiie Honorable the Conunissiuner of Crown Laud.s." 
 
 t m\ 
 
01 
 
 Tlii'sc dociiiiiciits .show tli;tt tlic policy oi' the ( lovcrmnciit was iiitciKird to foster and 
 promote actual settlcinciit, hy rodiicinf,' tlic price of School Lands from $2.r)0 to !?•_', and 
 those of the (Vowii from •*'_' to 8i.7'>. and liy aiithori/iii;.,' "the expeiidituic (.f a >\\m ef|iial 
 to fifty cents an aci nf tlie purchase money on the iniprovement of the roads au<l harliours 
 within the said counties." In pursuance of tiie policy indicated by this report of the ("om- 
 mi.ssioner. and order in Council tliereon maile, in the month of .luly, IS.'ii'.at the foilowini,' 
 Session of thi' JiC^islature the (loveniiuent introduced and [lasscd thmu^di i'aiiiamcnt the 
 Act entitled, '"An Act to amend the law foi' the sale ami the settlement of the putiiic lands," 
 IG Vic, c. lol), and in the I'ourteenlh .section of that is contaiueil the jirovisi.)n tor appro- 
 priating' one-(|uarter and oneliftli respectively of the; proce(>ds arisinj,' from the sales of 
 School and Ci-own lands resjiei lively I'oi' local pulilic inipro\eruiits within the respccti\(i 
 counties in whicli the lands were situate. This i^ the oiii;in and re,i.-(.n fur tiie estalili.-h- 
 irient of what is <allei| in thi' public documents and public accounts iif the country "The 
 Upper Canada Land Improvement I''uiid.'' Ii; further imrsuance of the policy of the 
 (lo\ernm<'nl, inau,!;urated in the month nj' ,luly. |S.">1.'. iirw rcLiiil.itions wrre ad .r ■! in 
 respect of the s.ale of .ScIkmiI aitd Crown lands, the priicipal points of uhicli \v< c- 
 
 1. I'aymeiit down of oiie-teiith of the purchase money at two dollars ]ut ire. 
 
 ■J. I'urchaser to enter innnediately a-nl occu[iy the land cimliiiiKaisly, clear i;^ '• '^ .s.s 
 th.'in live acres for e\cry one hundred a<-rt s. build a dwrllin;^ housi' not le,>, th.- .1 IS x jo 
 feet. 
 
 ."). I'liivha-er not to cut timlier except tbr cleai Iiilt and necessary i)urpoves of ■■uildinir, 
 iVc. until the lands weie patented. 
 
 i. I'urchaser not to traiisfei' the eortiacl for |iur( base or sale without tin written 
 consent of the Commissioner of Crown Lands, 
 
 l''ollowin;x out the sa.'iie jiolicy, the (lovcrnnu'iit. in an order in Council, dated :i7thof 
 of Febitiaiy, 18.")."), referred tothe " rp[)er Canada liand improvement l''und,"as bein;,' estab- 
 lished under the Lands Act, 10 Vic, cap. l.")'.>,and ordered certain ox]ienditiire •0 be tnade at 
 that time out of the Kurd. And in another order in C'umil, dateil on tin' '27t!i ,\!u-eli, 
 furlhir assumed the existence ami availaliility of that I'uiid. .Ml the agents of Cr )wn 
 Land.s, and (ioveiiiment odicials connected with the survey and s.de of the School and 
 Crown Lands, inl'ornied all persons ol' the existence of this fuml, ,ind tlieirreat advantai,'(; 
 therefrom arising to actual settlers. I'Vom the discussions \\liiili hail taken place in the 
 IIoii.se on the passing, of the i'ublic Lands .\et, the ofijcial announcement ma.ie b}- the 
 (lovernnieiit of their policy, distiiutly tuentiouin.i; and emphasi/in::^ the great imiucement 
 h(dd out to immiuTant. aiid others seekim; lands for actiud .settlement ami occii]);itioii, by 
 till' reser\ation for tlieir own beiielit of oiu'-fourth ami rine-(ilt!i of the pi'o<'e;ds of the 
 purchase money of School and Crown Lands, the comments nia.ie upon, .iiid the notice 
 taken of, these encouragements by the pi'css from one end .if ,he j.md to the. oth''r, ami 
 by the admitted e.vistence of the l*'unil by ord( r in Coinuil and the actual expenditure of 
 money out of It as early as the forepart of is.")."), by the public books of the I)epariment. 
 prepared and punted with the hi-ading "loiad Improvement i'uni'"- "Statements of the 
 amounts availali^-i- for pid)lic ii. 1 I'ovements on the sale of Crown, (Jrammar School, and 
 Cro\Mi Lands uiid»f i<'. \'ic., ca|» 1")".), sec. 1 I,' the good faith of the (Ii-verntuent was 
 ))Iedgevl as pi'sitively, ai.d emph.iiic.illy. as it could be, to all who .-hoiild brave the hard 
 ships f)f .settling in th< .-e Iwck regions, that of all the money they should jiay \'i-v their 
 lands, [ am' ! respectively <^ School and Crown L.uids should be re^ir\<'d and expen- 
 ded in th.il rcvjiectiv. localiti<- in making local pul'lic improvcn:eiits. 
 
 What I contend f>r ii<>w j*i this, that the ( io\ernment is l.ound ti> kei'p good faith 
 with th.-i'iueii, whu, ul; < this strirtef/t' tliinj^.s existed, wfiii in there ,ind jaireha>ed the.-ie 
 lands on the terms and ''*'w[i,> I have mentioned— :lial is, al! lamis sold from the 
 
 pa.ssing of the Act, on tiic , ih of .lime, is."),'?, to the <>r<l<'r in Council doing away 
 
 with the Fund, on the sixth of Mar< li. ls<il. Lor all lands s(.!d during that ]period, oiie- 
 ipiartcr of the ])roceeds of the Selmol Jyainls ;ind one liftli of trie proceeds of the Crown 
 Lands nmst be gi\en to this Fund tor the benefit of those, Kcctleis. l)owii to the sixth 
 March, ISOl, the ( ioveinment have pai<l over, in accordance with the law, .all the money 
 the purcha.'ier.s were entitled to under this Act ; but the money paid in at t^tuebec and 
 
02 
 
 Ottawa from tin- sixth of Manli, IcSOl, to tin- lirwl of -Inly, l.'^OT, mi liuids sold prior to 
 the sixtli (if Mart'li, 18()1, ami afti>r tlio passins; of tin; Act on tlic fuuiti't-ntli of Juno, 
 18r)3, has never liocn paid over to the liniinivciiniit Fiiinl, as 1 coiitciid it slioidd have 
 been. 1 <lo not claim any tliinj; fr lands sold after the ssixtli of March, ISlH, — only 
 for lands sold whilst the scheme exi.ited. Mow, from IStU to IrstiT, there was roceivetl 
 at Ottawa on account of School Lands, aftei' deducting; full conijiensation for collcetion, 
 $1 2 t.Gsri. 1«^. 1 claim that that sum .-hould he taken from the ( 'ipmnioii School b'und, heing 
 one-fourth of the receipts from Common School lands within the time 1 have nnntioned, 
 and jilacutl to the credit of the Ijiper Canada Land Iiii]iiovemeiit Fund. I make? the 
 following rcfeiences : - 
 
 Ontario Se>,-,ional papers, IHGH. vol. L', No. L'O, on i)ai;e I"). The official stateninnt 
 made liy tiie Crown Lands Offiie of the moneys received from l^^'H to ISHT. is found in the 
 Ontario .lournals, ISdlt, appendix No. "J, pa,^'es i'.S and li'.>. Mr. Lussi'Il's evidence, page 
 IL Orders in Council from page lo to jiage _(. 
 
 Whilst 1 take this 8!'_' 1,(1^') 18 oil the ca])ital of the Comnion School Fund, 1 simply 
 bring it in under, and add it to tlie I'pper Canada Improvement Fund. 
 
 This |)roccssdoes not increase the del it of the late Province ; for while the sum is added 
 to the rpper Canada Laiul Improvement Fund, it is deducted from the Common School 
 fund. 
 
 Mu. M.\CI'HKr.snN. What have you allowed for collection ! 
 
 ^Iit. AVoor). — Twenty ])er cent. 
 
 .Mk. OllKV. — "What ia the authority for that ? l)oe.-. not the Ait to which you have 
 referred limit it to six per cent ? 
 
 ^Ir. Wood. — The Act allows only six per cent., but by an Onler in Council of the 
 (lovcrnment of the hite Province, twenty per cent, was aiitliori/ed to be rctaineil by 
 the (lovcrnment. which J lielieve was uniformly done down to Confedei'ation. 
 
 Mn. Orf.y. — The question is. if you have deducted more than six per cent., will not 
 Quebec iay, "yon have taken .advanta_'e of my absence ?" 
 
 Mr. liAMiTdN. — Mr. Wood is nut speaking of the proceeds of the common school 
 fund collected since Confederation, and >i be collected hereafter by Ontario. Ib> is speak- 
 ing of collections maile by the latt^ I'rovimace. one fourth of which lie argues sliould go to the 
 Improvement Fund. 
 
 He has very properly deductdl from the amount gning to that fund, twenty per 
 4"ent — giving (^hiebec the benefit of the d.mbt ; for it makes that fund wliicli is coming to 
 I'pper Canada, les.s. When the arhitrators come to deciile what Ontario shall have 
 for its tollcctions of the (.'omniom School Fund, outstanding, it will then be for them 
 to determine whether they will adhere to. or depart from, the compensation given in 
 the statute, lint in respect of the collections by the late i'rovince, Quebec lias tho 
 advantage Ity the .allowance of the twenty per cent. 
 
 Mr. AVood. — 1 will just remark in ])assing, that 1 am informed l>y the ('om- 
 missioner of Crown Lands, th.ax the a "tual expense of the <ollection, is at least twenty 
 per cent. The dejiartment paying the Crown Lands agent alone from 7 per cent, to 10 
 per cent. I'.iil I jiroposc that tl*- arbitrators in settling the common school lands matter 
 .shall keep within tin statute, as i have advised them to do in all other cases. 
 
 Mu. <!rey.— What is the value .f the unsold lands ] 
 
 Mr. Wood. — Very trifling. Tin iainls uns(»ld do not exceed tw»'lve hundred aor«8. 
 But the outstanding purcliase money on lands sold exceeds a million of dollars. 
 
 I should obsnve that the Attorney (Icneral wouM be glad, if it could be done, to 
 have the valui! of the outstanding moneys on tlie>c lands sold, as well as the value of the 
 unsold lands made up, ami pay a certain amount ov<r to Quebec, in discharge of its cluim 
 in respect of the ,same. 1 am afraid, however, the arbitrators could only do this on con- 
 .scnt of the parties to the reference. Kiitcrtaming this opinion. I will not press it upon 
 their consideration. 1 will now speak of the division of th« 
 
 I 
 
m 
 
 or to 
 lino, 
 have 
 only 
 
 MVfli 
 
 :ti()n, 
 )tit'(l, 
 
 II til.' 
 
 )]y 
 
 ilVC 
 
 Common Si;iiooi. Fund. 
 
 In explanation of tliis fiiiiil, 1 ri'tVr to 1:^' Vic. c. 300 ; 1, 5, Vic. <;. 18, hw. 3 ; 7 
 Vic. c. 9, soc. 1, Coiisol. Stats, of Canada, cluip. 20. Snction one, of chap, twenty six, 
 says : 
 
 '* 1. The <'ommi.ssioiier of Crown Lands, Iiaving, nndm- llic provisions of tlii> Act 
 '• 12 Vic. c. 200, and iinilcr tlio direction of the (Jovcrnor in (.'ouncil, .sot apart and ap- 
 " projii-iutod one inillioii of ai'ro.s of jmhlic lanils, for coiiunun school ])nr])oscs. and por- 
 "tions tlicroof having hcfii disposed of under tlie said authority, the remainder shall be 
 " dispox'd of hy the ( 'oiiinii-sioiicr on such teinis and condition* as may, liy tlie (lovernor 
 " in ' 'niuicil, he approved, and the iiioiiey arisin;,' from the, sale or dis|)osal of any portion 
 " of the said lands shall remain, or he invested ami ai)plied towards crcatiiiLC a <:a[iital 
 ".sum suflieieiit, at the rate nf si.x |>er ceiituiii per annum iiitei'est, to prodiii;e a chai' sum 
 " of foiii hundred thoiiiand dollars per annum, and the ca[)ital sum and the iiic(;mt: tlicre- 
 " from shall form the Common School Fund ; Imt heforo any appropiiatioii of the moneys 
 " arising from the sale of such lands shall he made, all charges thereon for the niaiia<'-e- 
 " merit or sale thon-of, and nil Imlian annuities charged upon such lands or nioiievs, shall 
 "be li/st i...*id." 
 
 "2 %ll moiiey.i arising after the twenty seventh day of .May, one thousand ei<'ht 
 " huiiilreil and tifty. from the sale of any public lands of the Province shall remain or be 
 "set iipari as part of tli(> capital of the said Common School Fn?id until the same is 
 "sufficient, at the rate aforesaid, to produce the .said sum of four hundreil thousand dol- 
 " lars ]ier annum." 
 
 Section third provides for the investment of tlie capital of the Fund, and for its 
 romaining with annual increases until, and in orihr to the proilucing and creating the 
 .stipiilateil annual income of ;i540O,000. And it provides that the Fund and income thereof 
 should I'ot bo alie' 'ited for any otlu'r pui|>ose whatsoev.M. but should remain a ])erpetual 
 fund for the sui)port of Comiiioii School-, in the whole I'rovinre of "aiiada, and tiie. 
 establishment of township and iiarish libraries. 
 
 Section four declares that for the establishment, supixirtand Tiiainteiiance of common 
 schools ill the Province of Canaila, until the. Comimm Sihonl Fund -limild produce a net 
 yearly income lA' ■*20(),00n or upwanls, there -hould be granttid tn Her Majesty yearly, 
 the sum of $200, 000, and tliat such sum should l)e macj.' up of the annual income and 
 revenue, derived from the permanent fund mentioned, and of such further sum as should 
 b(! re(|uired to comi)!ete the same, out of any unapiirnjiriated moneys raisecl and li;vied 
 by authority of Parliament, for the pul-lie luses of tln! i'roviiice ; and that grant was to 
 constitute the (Jommon School Fund. 
 
 P-v section five, it is ])rovided, that this annual sum of .$200,00(\ should, from year 
 to year, be a|ipiirti 'iied by Order in Council, i)itween l'j)per Canada and Lowi-r Canada, 
 in propoitinii ti. ti itive minibers of tli("{xt|iulation of the saint!, respectively, as such 
 
 uuinbers shcuild, tiu:. ..me to tmie, lie asceitained by the ceii.^us next before taken in Up- 
 ])er < 'anada and Lower Canada. 
 
 It therefore appiiirs that i: was the intention of the Legislatum to allow this fund 
 to remain and aci'uiuulate until its (lapital. irhicli irn.-i H'ver to he liirri'n.snl nf 'i/i>natrd, 
 should produce an animal in<ome of $400,000. The income of the ca])ital was to be 
 supplemented by aiimul gnur.-to make it up lo $200,000 per annum, until the income from 
 the capital woul.l produce tha: sum. and this <nm and the excess of it, when the income 
 should exceed 8200,000, w:a.s to be dividtMl bi-rween Cpjier Canada and I ower (.'anada, 
 according to |)oi>ulation as asc^rtunet ))y nhe last preceding census. 
 
 This fund was not treateil or tWlt with exactly as the statute direcr;-,!, although in 
 accordance with its spirit .mil oiteHt. liisteail of the annual ini'oiiie Irorii the cajiitul 
 being applied to the exi^ns*-^ of 'ducation, and supplemented l>y an annual grants, the 
 whole sun given annually to rommon schools, ci>iiM.sted of the Legislative grant, and 
 the annua; m ome of the school fund, was added to the ca^iital, ;ind allowed to ac(;uniu- 
 late. It -h'Uild be ubserved that these annual grants were ajntortioncd to 1' ppc Canada and 
 Lower Cain»da. according to population as ascertained liy tii»' last preceding census, accor- 
 mg to die !»n.>visions e.jiitained in the fifth section i>f tJac Act nientiomid. The depar- 
 
64 
 
 tiirc from the strirt letter nf tlie statute. Iiowever, iriakes no (lifTerciice in ailjudirating 
 u{)on till! matters suhniitteil to tlie arl)itratiirs, iiiusiinieli as. it' tlie ineoiue had heeii s]ient, 
 as the statute (diitemjilateil it woulij Ite, the net delit of the late Provinee would have 
 been so iruieli less, hut the fund wnuld have heen diminished hy tlie same amount, and 
 just so nuich less wnuld icmain of liie fund to hi' a]i|ioi'tii)ned hetueen ( )ntario and tjhielice. 
 No j^ood could theret'oic lldw from a r»'visi<iii of the manner in whirh the aeeoiml wa.s 
 kejit for twenty years jireeediiii^ Confederation. 
 
 The fund, witii anunuilations, on the (irst day of duly, ls(",7. iiniounted to 
 Sl."."?'5,-- I 17. of whieh .S.")S. (!()(» tor |iriniiiial. and 8 -"••>•'>>'<'> for interest, consist of an 
 investment in the tjufhec 'rnrnpiko '['ru.^t liniids. Since Ontario has had the mauai;e- 
 ment of the schoid lands, I >u]i|iose hetween two and three hundred thousand dollars 
 have heen colleited, and theie is still ouf>tandinu' on lands suld, upwards lA' a million of 
 dollars. The InnU unsold, a< 1 h.i\e already stateil. do not cxccrd two thous.md acres. 
 
 The l^diehec I'urniiike Trust honds, ;ire uuiil inued in the hnirth schedule to tho 
 R N. A. Act. 
 
 Now it is sup|ioscd that the ail>itialnrs have jurisdiction o\er this fund .iiid the lands 
 lielou'4inLC to it. I'pon this, 1 am not prepared to pronounce a ileeided opinion one way 
 or the other, it may he that as to the fund re.ili/ed heloie ( 'onh'deration. and in the 
 liar.;'- of tiie l>omiiiion, the honiinion are l>ound to hold it snhjeet to the trusts created 
 hy tlh- statute, and to the appnrtiiiiimeiit of the .innual income thereof to < hitario and 
 l^iu'hcc, according,' to pupulation of tin- la~t pieceding census. 1 am inclined to tiiink 
 thi.s is tho proper \iew to take of it. 
 
 As to til it>t.inilinj.f nionevs on lands sold, and the niisuid lauds, i think Ontarii* 
 
 took them, suhject to the tiusi in risjM'ct of the same, iuul are tleiefoie iiunnd to collect 
 the. moneys, charniii;; only the sf ifiia.Miry allowance therefor, and when collected, to pay 
 the motley over to the Dominion, to 1m' added to .and held mi the same trust as it holds 
 the fund already in its hand--. I think, to adept the words of the statute, tiiat tim 
 fund -liould he inalie:' dile for any other [lurpose whatever, liiit should remain a perpetual 
 fund forthe >iipp'iri of comni'm schools, and the > l,ilili>linient of township and parish 
 lihtarii's. 
 
 In every matter which 1 ii.U'' hronirht under the consideration of tiie arhitrators, I 
 have endeavoured to keep strictly within the statutes rel.itin;.; to tiie same. So in this 
 ca.se, I tliink it unsafe to depart from the -t tlute. Accordin;,' to the statute, the capital 
 of this fund must fu-i'ver rema'ii int.icl. The annual iiicume mii.-t he apportioned lie- 
 tweeii Ontari') and <^*ueliec. accon.iu.; to the jMipiil.ition of these Provinces, as aseert.iined 
 hy the last pic, ,, linn ceii.ois. I would recoiMiin.iiil the le.iviiiL; of this i'und ju.-t where 
 the l.»w has place>l it. and tie- aj»porti>iiment ot' the animal income to he made aicoiding 
 to the provisions .,f thi- fifth sectimi of the .tcliool lands Act. 
 
 It may h- nl iha' «^»iiei>e, >h mid li.ive iiu part of this fund. In strict ei|uity. per- 
 haps, till' I- th- '.i-e. I ;ini iic I'lied to think it i>. The lainU from which this fund is 
 deiiveil, are fill sitirUe in I ppt r Canaila. No iMimpensatioii or e(|iiivaieiit in any i'oriii 
 was ever given ' pj" ■ •'anadi. and niHe u ifi ever he given, it is. I admit, .i cle.ir gilt 
 on the paif of Ontario. I5ur we cumot act upon this dear principle uf jii-tice. without 
 lining VK»leiu-e Ut th' ' ; nN- creating the tund. Ily that Act. the fund was created for 
 the su]i{»ort of »h< I iiiiimuii schools, a.s wel! in l.i wer ( '.inadM ,is in I'ppcr ( 'anada, .and 
 although ihf relations of tli.- ' wo w-ctjons of the l.iie I'r-.vince df Canada, are now chang- 
 ed, yet ,1 in the Cnnft-I- i-atiMn Act, n.i ulti ration was made in the -chodi lands Act, it 
 remains a> it w,is h.-f.in- Cniit'edeniiion, and imi-t he i allied mit in all its ]iro\isioiis ; and 
 th'Tefore. liower Canada mii^t, in my ojiiii . .iccoKiing to law, have the saiiiepoiiinn 
 of the annual income fi<>m the capital of this tund, a.- it woiiM have had, h.id Ci.nrcder- 
 atioii nevf'f taken place. 
 
 I therel'ore think the arhitrati-r- >honld award ili.ii tin- fund in the hands of the 
 I)ominioii, should remain there, and that Ontario slmuld i-ollect and get in the outstand- 
 ing portion of the fund ;ind j ay it, less si,\ per cent, for collection, and one-foiirth part 
 therenf for the imjirovemcnt fund, over to the Dominion, to he added to that which it 
 already lijus, and 'hat the annual iiu-oine from the whole capital fund realized, should he 
 apportioniil hetween thitario and t^iiehec, iis prnvided in the iiflli section of the school 
 
 .4^ 
 
(;:. 
 
 laiuls Ad- ami iliil llic i^tinlicc Tin n|pikr' Tiisl ilclpi'iitmcs. -limiM \i'- h^'Ll liv the !)()- 
 
 Illilliiill <itl tlir Slllic tni>l .1^ llic i:i|p|tal 111' the t'miil. 
 
 'I'liis, it ~cciMs tn 111"'. i> a iiin^t ^al i^l'ai lory iiindr ul' i!i>|i(i>iii^- dI' wli.it uihciwisc 
 
 niijillt |l|ii\ '■ a llillirlllt ijUl .tinll. 
 
 ll ni;'\ ii"t lie iiia|i|iiii|>iiatr to iintici' sunn' iti'iiis wliicli. as I llijiik in iuMitiini to 
 tlu»s(! alrt'aily nn'iitiniii'ii, sIhmiIiI ln' ili'all uilii ami |iassi'il u|i>in liy tln' ai'liitralnrs. 
 
 Imh \\ Asm iiii'.s. 
 
 As (j>urlicc li:i~ i'Minii'rl\ iiinii- a rlaiiii in ii'-|ip'ii n\' ln<liaii Aiiiiiiii ir^. | think it 
 wuiiM lir ui'li Inr till- arlpiti'atipis in |)ul I Itr nur-tiipii ai rr-t I'V awaiilinu- ili'tinitcly oil 
 the siilpjcct. 
 
 .Mips I III,. \i. TiiiNi'iKi: TiMsi |)i;i',KMri:i:s .•rJiss.oiMi 
 
 'Pill' Montii'al 'l"iirn|iil<i' 'I'riist lias ipiit -tiihliii'.^ -^I •<"<.nitil ilcli •ntnn-s, tin- |iayiiiiMit 
 wlu'n''ir was ;^iiaraiili'i'l ipy tin' lili- I'l'Mviiip^i' uf t'aiiili. wliic'i uMi-iti m In" tii- I! X. 
 
 A. Alt, is traiisfcni-.l tip tlu' I > ■ niiiiipii. iJiil, this is .piily ,- mliii'Piiil liiliility. If tli>' 
 
 tnisi fails ti) nii'i't it ; |iayiii''iit^ pii thi'sc tli'lu'iitiiri's. tli''ii, am I tli-u ipiily, i-aii tli ■ Dipuiiniun 
 Itc I'alli'il n|pipii til iliscliar','!' its ipliliiiatiim. TIm- triisi is silxiMit aii'l almnl iniiy alili- to 
 Illri't all its lialiilil ii's ; ainl lli'' jiriilialiilitii's iif tin' iViiiiini'iil i'\'i'r Ip'ili,' i' ill ■ I iljp pii In 
 
 pay any! hi I lu' mi ai' nit uf t h''>'- ih-li ■ntnri's is rs liii^ly i-fiiint' -s i mil iki'ly that il has 
 
 nut iiicliiilcii tlii'iip ill its stafc'iiii'iil ipf tlip' ih'lit of till' laM' |-*ritviiici'. Still thrri' i-t tin; 
 C'liiiliii^'i'iit lialiility ri'stiiiii ii|piiii llii' I >in!iiiiiipii. aiiainst svhii-h il is |prip|iT it shmilil ho 
 iinli'iiiiiitiril. Now as this i'\|pi'mli( uri' was iiiailr in !, iwrr ( 'iiii'la nr tlii' nlili'^' il imi iii- 
 ciii'ii'ii ill iis|iri'( III' a liiral iplpji'i't ill I iiwiT ( 'aiia'la. ami as tin' Irii t is siilijiTt tn tin; 
 Icijislai iiiii III' (^iiii'lpi'r, ami iiiiilcr tin' I'lHifinI ipf its i^ivi'nnii'iit. it w.nihl a|p|ii'ir tn lir 
 icasiiiialili' ami Just that t In- arliitratoi's shuulil, u hih' assi.riiim_' this assi't to (^hii'liT, \ivn- 
 vjilcil that if a( any linn' tin' trust shuulil fiil to nn''i ils |payiii"nls in i'i's|p.t( of thi'sn 
 dt'lu'iiluri's, ami in i'oiisi'i|m'in'i' ilnTt'of. riToinsi' is hal to lli' I > iiiini m, tin- l'ro\ini'o uf 
 Qui'lit'c sliuiilil niaki- i^uuil tu tin- Doniiiiion any sum or stuns it ni ly or shall |p iv on aci'oiint 
 tln'i'i'uf. « Jiilariu shouhl. as is nianifi'sl. hi; r^'lirvi-il from all ii'Sjp msiWility in tin- pi'i'in- 
 isciS. as it hail no inti'ii'st in tin' rrcatiou i;f tlio ul)!i'j;atioii, ami as it lias no i.'oniro! ovoi* 
 till! siilpji'i'l niatti-r of tin' trust. 
 
 l>i;i;i',\r( i!i:s Issrr.ip r,v iiii; MitM'i;i;\i. li\i;r.iiri; ( 'ipmmi'<siip\ki:s. .<I-I,|-.'i;.27. 
 
 Tlir Moiitn'al llailpoiir ( 'oinnii~-ioiirrs lioiiowi'il on tlir rmlit of tlnir ih'lpi'ntnri's, 
 gTiaraiitri'l liy tin' latr i'lovimi'. s 'si . t'ji;. ■j7. Thi' MoiiMi'al llarlioiir may |iro|.fily he 
 coiisiihiril a work in wliii-li I '|i|prr < 'aiiail.i ami Low.r Cuiaila an' cijiially iiili'ii'^ti-il. It 
 is i'iii|pliatirally a i'roxim'ial ami not a loial iimliTtakim:. 'riii'ri'fori' tin' I'l'sponsihility of 
 tb -sc ih'lirntufrs rests aliki' on liotli I'mviiiri's in sm;li I'.iiio as tlicarhitraiois shill ih'tiT- 
 miiK'. rill' Itarhuiir is |ii'rfi'i'tly solvi'iit, ami tin' ('oiiunissioin'rs always h ivc ami iloiiht- 
 Icss al\k';i\'s will |ironi|pily nii'i't all lln-ir oMiiiMtions. Tln'ri'lori' tin' I )oniiniipn has not 
 imhnlril tin' aiiioiint of tlnsi' ihlpi'iituir- in tin' ili'lit uf tin' l;iti' l'ru\ inn', luit as the cuii- 
 tiiiL-'i'iil li.iliility i\i-ts. tin' l)oiniiiiun -hoiill he imleiniiilie.l aj.Miii>t it. .Vml as hotli 
 
 Upper < "aiiail.i aiiil l,ov\ er ( 'an.nla ar [iially intere^te 1 in tin' liarlioiir, ami a- the ( 'oin- 
 
 inissioiiers who control tin- h.irlioiir are sithjeel to the l)oiiiiiiiuii (ioveinnniit aii'l I'.irliii- 
 iiniit, it seems tu nil' thai the ulplii^Mtiuii tu in ike i^moiI lu the D.piiiiiiiuii anything it may 
 liaxe tu pay on aecuiint of these ileln'iiiiiri's. slnniM rest up m ln.th Oiit.iriu ami t^iiebui.', 
 ami 1 think piusisiuii tu that elVi-it sliuiiM he inaile in the aw.inl. 
 
 CltoWN I. AMIS Srsi'KNSr, .\rnpf.\T .*i Il',7I><.<!.'1 
 
 'Phi- i> the .inioiinl at whirh this ai'coiiiiL stamls in the li hpIcs of the late l'io\ inee of 
 Caiiaila. .Momy is fioin time tu time paiil into tiie ('luwii Limls D.'p utim'iit mi aeeuniit 
 of lamls, the sale uf wliieli. fur uiie eaitse oi' another, eaiiiiot In- earrieil uiit at tlie Litno. 
 Siii'li pavnii'nt-;io into what is lalleil .i Siis|i:'ii~' .Vei'iniiit ; ami when after awhile tho 
 ditlieiilty is leinuveil. ur fuiiml to Ik' iiisiirniuiintaUle. the paytuent goes to tlio proper 
 
r 
 
 CO 
 
 .iicdiiiit 111' tlif iiiMiiry i> ii't'mi'lcil. Tlir Miiiiiiiil mci\ I'liifiit ill ainl unt nl' tlii> Sii-|h'iis(' 
 Aii'iiiiit in niit:ii ill i> jiltiiiil .*l'>.<'i'i'. Ill I 111' i.ili- I'liiviiicr il w,is im dniilii nmri', I shuiilil 
 tliiiik lirtwi'rii slJ.KiKi ami .><l'(i,(i(h', I am iiitniiiird liy tlic Aiidilnr, tliat i>\' tlic \vlii.l.> 
 aiuiiiiiit III' s| I "J.T IS.i'iM, |i.Tlia|i.- imt iiinic tiiaii 8L'">,n(i(i is rrally in .-ii^|icii.-.c ; liic ir-idiii' 
 of ilir aiinnnl rr|ircsriitin,u lud Imnk kff|iini;. tin' iiiii--t uf it ijaliiin liaik In a |irriiiil 
 aiiti'iinr 111 llir I ninii. in |S|1. 'riu> ii'-iilur i> ihri: iliaily mily an iniauinar\' lialiiiitv. 
 Ami niii>t 111' till' SL.'->,iifin arliially !ii-iil in sn>|irn>i' u ill lir nil iniatrly a|i|iliiil mi llir niIcs 
 of iainls, ami Init a >inall iimlinn hi' il will lia\r In \>r ivtnndrd. It' llir jinniiniim witi- 
 to assnnii' lliis aiTniinl. it wnnld lia\r tu . !:'ir,L;i' il iiitn tlir dclit ot' tin' latf rrii\inri', and 
 inri't'a>t' il I'.v that aimnint. whilr it wmild ;.ain liy the li\(' |irr ri'iii. on --n niinli of tin- 
 cxci's-i iif tiir di'lil. a> i> till ditl'i'icmr 111 luffii sila.oim. tlif arliial lialiiiitv. and 
 61 I '-'." t'^ 'i'i. till' nominal lialiilily. Tin n- i> aiioiln r ditlicnlly in the Doniinioii as>miiin,!^ 
 and dialing with this Su>|iiii>(' Airniinl. All tin' liooks and iiapfi's I'clatin,;;- to tin- 
 \aiiiii:- iti'ius which riini|iiiM' it afr in ihr hand- nl tlir ( iiiMTninciitN of ( )ntario and 
 (^tiirlii-r. withoiit whii'h it woiild l»' ainio.-t imim^ilili' tn handir it. I'lnliT all thr-r cir- 
 cninstaiiii s tlir I >iiniiiiiiin ha- thrown n|ion tlir .\i inl lalm.- the ii'>]iiin>iiiility of di\i(lin;.; 
 this ai'i'oiint lirlwrrii (>ntario ,iinl (,lnrlM'c, .Mr. hnnkiii and in\-rlt' h.'id a.uirrd to a divi- 
 •sioii. naiiii'ly. that (hitario .shmild ili>rhari:i' all olili;.:alions ai i.-in^; in i'('>|ii'rt of lainl.s in 
 its I'rovini r. and (^)m'lii'i' should do thr >:\\\u' : and the two ( lovcininrnts. simc ( oiifrdcra- 
 tioii. ha\i' ai'tfil iiimn that Mmli'istandiiiLj. .Miirh tin' la^',::i'i' |iortiiin of lln'i'i'al lialiility 
 falls ii|iiin tliitaiio iimhr thai ari.'iiiui'im'nt. Xi'\ ci thelrss. I think il. iimli r all facts >iii- 
 I'onndiiii: the accoiii J>. ci|nitalili' ;iml jn-t. .\t all cm lit.-, I make no coni|>laint, and wuulil 
 f>ll,Ugt'st to tin- ai liilraloi'.-, the |irii]ii iriy of awaidinu ai'ciiidiiii^ly. 
 
 CiaiWN I, AMIS I )i:i'\i;T\ti:M' .9L'.");'i.0S'.'.7ii. 
 
 Thi- iti'in w;i> always incliidi'd in tin- |iiilili'>hi'il riiMic Accounts of ihc late froviiicc, 
 amoiiL.' the hankiii::' accounts, and iieated as .-.o much cash. This account, like the Ciowii 
 Lands .Su-.|ieii>e .\ccoiint, thoneh not to .-o ^rcat .-iii extent, ri'iiresented much had Imok- 
 
 kee|iillL;. Il coll-i -t s of Millie \;dll;d ile ;i--('t - niiilleydue flulll .-ol\ellt ( ToWll laild a^CIlt.'^, 
 
 liiit unl'ortunalel\ . to a laiL;e extent, of li.daiices due from defaiiltiiii; a,i;ents, from whom 
 iiothiiiix w'ill e\er he collected. .\s the inniieys which make np this accoiint were actually 
 ji.-iid. Ill' -u|i]iii-"il to lie |i.iid. it has always aii]ieaiei| in the I'loxincial Imoks ,'i.> so mmh 
 ca-h. S.inie i-iillectiiiii- can. no donlit. he made on this acciuint ; Imw minli or to what 
 exleiit is unkiniwu. Hut as the ( 'mw n l..iinl.- I >e]iai liuents of ( (ntaiin and (jhiehec have 
 the hooks. tln'\ are the only |iartie> who can dose ii|i tlie.-e uiiM'ttled acconnts. Were iht! 
 I)iiininiiiii to iimleitike t hi>. it coidd onl\ do it throiiL;li ( )ntario and (^hichec as its auent-s. 
 It' the lliiniiniiiii lelaiin-d it and made cnllectioii> under it, .■-uch collections wmild h.i\e to 
 be treated like all other arrears received hy the Dominion, and uo in reduction of the deht 
 of the late I'l'iivince. 'I'his Would lie e(|ni\,dent to deducting the otimaled \alui' of the 
 
 item from the |inhlic deht. lint it al-o wmild 1 i|ui\a|ent to strikin.g- the item out of jlie 
 
 accounts in the !)omiiiiiiii hook- altn'^ether. and handing it o\i'i- to < hitario and (,>uelieeti) 
 lii.ike the most lit it ihcy can. This has hecn done. It remains, theiet'oie. to ihc arhi- 
 
 trator.- to divide this a-set hetWeell these I'lovillces. 
 
 Ill the forejiart of t!ie discussions oii the arliitration. the .\uditoi' -iiLi.uested thai the 
 iiio.-t satist'actoiy mode ot the di\ i-imi of thi> account w ould he in allow in < >iitario all it 
 could make of that iioitioii of it arf-ing in I iniei ('anad;i, and to (^tiieliec all that jiortion 
 ari-iiiLT in I,owi'r Canada. This .-UL:L;e-.tiiiii w.is assented to Imth hy .Mr. I>iinkiii and my- 
 self, and the two rrii\ince-. -ime cnnfedcr.ilioii h,i\e acted on that |ii'inci|ile. Il i-. how- 
 over, I'lif the aihitrators to examine the account>. and make such a di>]iosiiiiin of it as in 
 their judgment is just tu hoih iiailie.-. 
 
 Lii;i;.\iiv .VM' iiiiii:i; I'ki;n(in.\i, m; Cii.mtki. ri;(ii'i':iiTY. 
 
 Tt is (|nite clear that tin: jaihlic Jahraiy and other cliattel ])ro|i<'rty of the ]at(i 
 Province of Canada, still remain the ]iro)ieity of that I'roviiice, or latlnr of ( )ntariii ami 
 Quebec conjointly. Jt is estimated that the Lihiary alone i:^ worth from forty to fifty thous- 
 and jiound.'j. 8ucli property in tlii'oilier I'lovince.s is retained by them. It inMid.s no ur;j;u- 
 
 M 
 
 ^ 
 
nu'fit ti> >linw tliat Ontario an'HJtic'ii'c lu-i' Imlli lr'_',\lly and i'i|nilal'ly fntitlnl ti. retain 
 liki' |iiii|ti'ily liil'iMuiiiLC til tlinii at tlir rnimi. Tii.- 11. N A. Art i.> cxiijiiit mi ilm 
 flulijcct. lint it wciuM Im' viiy ininnvi'iiifilt \n all paitics I'nr ()iit:iiiii aii<l f^Mirlii c tn 
 
 assiiini' :inii lalxi- aitiial |iii>-;'-.>)nii, aii'l ili\ iii-' m m'II the sanii- aiiij a|i|"iil i'lii tlir jiiin Is. 
 
 I u ilil. tlirfft'nn'. sii','i;i'st that lln' aihitratnr-i .slmiiM liv a ilrlinjic siiiii a-< tlnxaliii' 
 of tlii- pio|)iTty tn lif |i,ii(| liy tln' Onniininn it" it cIicmim's, to taki' it at that >imii. ami to 
 |ti'ovii|i' III wliat ratio it .shall |iay llir iiioiicy to Itiitario ami (j)iic1mt in tlir (•\i in dt'thi! 
 
 i>olllilliul| ilrrlilliiiu' to take I ll>' | iro|MTt \ at the Slllll lialliril. I \\Mn|il :.;i\r (^(ilcl.cc till' 
 
 i)|itiiin of |iiiiilia-i' ; ami in ra-i' it -honlil ilri'liin', I umilil makr il olilii^atoiy ii|>iiii ()nta- 
 lio 111 takr till' |iro]M'ity ami to |ia\ (,>nrlii'>' it- sii|iiilali'il pi'ition of [\\f \ahii' tlirirol'. 
 'I'lii-. I think, would iir lair, ami livf lioiii olijrctinii hoih tiiiiii llir 1 iniiiiiiion ami tjiiU'lu'i;. 
 
 it ail\' |illt\ rollhl ilailll the liihl I i ro||||il iju it Would li.' I'lilali.i. 
 
 I think I ha\r imw tomhrd npoii all |i"inl> hi'iiiuht to tlir iintii,' ,,[ thi' .\i liit latofs 
 liy till' ('oiiiir^i'l tor (jhirlnr. (ii t'.ir (tntario. ni li\ ilii- Itotiiininn < loMTiinnnt. a- \\ill as 
 ail Miattrr> and thiiiu^ ii't'i'iii'd m siiliiniitrd tn th'iii li\' tin- 1'.. N. .\. .\il. i'liit in-t'ori' 
 Icasinu liif nuIiJitI, | dr-irr to inako a tr\v oh-n \al ion.s n|ioii what would hi' ihf ii'-iill of 
 ailo|(tiii;; till' ]iiiiiri|ili' of all ordinary. iiiiivi'r>al oi- i;i'iii lal |Mrtmi>hi|p in takiiiu tin' ai;- 
 coll lit s hi 'I With I '|i|i 'r ( '.III I la and Lowfr ( 'aiiada and t Ih' dn i-ion and adjii-lnn'iit of tin; 
 (jrlits. iivdil-. |iio|iriiii'.s and a.s>i't.-s of I'liju'r ( 'an id'i and I, iw.t ( '.m ida in I'ontuiniity 
 ihrfi-W itii.. 
 
 It IS -t:itrd that thr |'i iin'i^ilr of a niii \i'i - il part nri>hii( ih ir> Hot ii'i|uiri' that llii' 
 capital I'onli ihiiti'd liy I'arli paitni'r >lioiiiil Ur ion>idi'ird a,- ri|ii,il. wlini liy tlir aiii"ii M.^i 
 liciiii; >tali'il it i> inaiiifot it i- not ii|iial in aniniint : and that in wiiidin- np siirli al. 
 a>sociation. di-rriniiiiat ions may. arroidinu' tolav\. Iir iiiadi' in ri'-pi'i t ot >Mrh inii|iiality of 
 capital, in ot her woriU. t hat t In- partiiri- may and .-liomd he ronijriisati'd for any >uni ihar;:- 
 (>il. of lini existing oil the siilijii^i matter of the lontriliiitioii of e.nh pirtnei. I deny 
 (•\er\ one of these pinpi i-it ii >ns \ii aiithiirilv has hei-n or r.in he iitinlneed in --nppoi't of 
 lieiii or any of ihiiii. The imiinent the eleinenl of di-ei imin.ii ioii in i'i|iital. prolii~ m- 
 losses, is iiitiodm I'd oi adinittd. the iini\ei>al eharai'ter nt' the a->'M iatioii is de-tioyeii, 
 and it heeonie- a -pei'ial partnership, and iiiiist he i.'o\irned and tieaied aeeordiiiLT to 
 tlie>e .~pei-i,il auieeineiit- aiid luiidil ioii> iip'iii whii'h it is t'"iiiiili'd. Su iph\ imis i>tliis. that 
 the ('iiun->il for (jlnel.er had Ion niiirh i"ua:d for their repiii.ition a- lawyer.- to deny it. 
 'I'liey aiiinit hroadls in their printed " /■'■' /"//'," that " Il would leipiiie to l;o hack to the 
 " I'nioii of the t wo ( 'atiadas. take tie ir n-peit l\'e del it - • and efedit- at that time, examine 
 "in detail all 1 he e\|ieii-es im-iirred -inee. imte -peiialh. the |'iii\ iiiee for \v liiih or in w ho-e 
 '•iiiieii-t it wa> iiHiirred. ami deieriiiine theieo\- the ,|iaie of eaeli." 
 
 The idea Miiu- to he deep loiti'd ill tile iiiiiiil-iif certain .ueiilleinen. that in >onie 
 
 wa\ \hiel mii-t lia\e allowance fur the alleged deht of I 'pper Canada at tJie I 'niun in 
 
 1>I1. 'I'Ihn will not iitiiiii;illv examine the -round upon which >iieli a i-laini i- ha-ed. 
 'I'liey liken liie alleged deiii i.f I ' pper ( ',i iiada to that of an iiidi\idiial eiiteiiiiu into an 
 ordinary parlner-hiii, and call it the pii\ate deht of Ipper Canada ; and a- an iiiili\idiial 
 in the la-e of .m ordinary partnership 'iVoiilil he hoiii.d to pay his own indi\idual juivate 
 
 deht- eolll laited pli' 'I t o t he part ICl-hip. wlliell. it' p:iiil h\ tile joint cnn ern. Wiillid he a 
 
 proper char.ue a.uainst him hy the partnership mi dissuhilimi. so they s.iy the deht nf I'p- 
 per Canada lia\in,;.' heeii paid frmii the joint revenue of the two ('aiiada- united, iiou. on 
 ji si'paration of tlm-e i'lovinees. ( tntarin mi-hl tn a-s;iine >.■ miieh ot the deht nf the latii 
 Province of ('.mida. There i- a seeimnu' aiiahiuy het ween the ca-e- sii|ip.i-ed. and its 
 jtlaiisihility i- ealiulated tu impose upon the unthinkinL,'. in the hr t phue. I pper Canada 
 never had any jhiruli' t/iht m- jiitruf- /ini/nr/i/ or assets as cmitradi.-tiiiunisheil t'roiii its i.nLUr 
 (liht iiii'l jiiililii- /i/'i/nrtii. Its dehr ua- mainly created for pnlilic works, and wa- a char^'c 
 
 on all I he re\ ellUe- o| the rro\'illce ut C I ipel ( 'aiiada. and t lle-e re\ ell lies, with all t he pllhlii; 
 
 works, prii]ierty and assets, hy the term- of the riiimi .\cl of IS Id. passed over to and hc- 
 caine the property of re united ( '.mada siihject to the |iayniciit of the chai'ees made on the 
 rcveiuu's Ity the [,eLjislatiirc of Upper Canada, that is, tlm deht of I'pper <'anada which 
 Qiichcc now seeks to cli,-ii'i,fe a^^aiiist Ontario. There was mi reservation of aiiuliing with 
 which this dclit cmild he paid. 
 
 Ciiwards of twenty-six years pass away, and U|iper Canada iiml Lower Canada, iis 
 uiiitud Canada, ciitor into a Uaiou with Nova .Scotia and Now Jirniiswick. 'I'lioy wore 
 
68 
 
 jiiTiiiitt" l ti> I'liiiu; ill :i ili'l'l "II till' iifsv iiiiiit I'uiiciTii of .*(!•_', ri(i(i.(i(t((, tluir •■X|'iiiilitiirc 
 
 mi iicriiiiiit III' r iil'lii' u<iil<s. iiiiioniit JMi:' to iilimit tliiit siiin. I'liil iln'v \vri Iilii^'id to 
 
 liiiiitl ()\('r to till' joint (oiu-iTii. not oiilv tin- |iiil'lii- works ii-ialnl \<\ tlii> i'\|M'iiililiii'i-. Init 
 iiIno all till' I'lililii- i'i'M'iii|< > 'i|ioii wliirli tlif |iiivii'i'iit of this ili'i't wiis cliirlly I'liscij. hi 
 tliJN iii'i':iiiv;<'int'iit, l.iiwir ( 'aiiiiila had as imik'Ii iiil> n '^l and rra|i<'i| as tiiiirli ad\iiiilaiL:<' a>4 
 r|i|H'r < 'aiiada. It' I |i|ii'r Canada had a di'iit at the I'nioii, it also had nssi is to rr|)i('- 
 si'iit rlial di-lit \\liii'h |M.->M'<| oM'i' to iiniii'd ('aiiada. at ihr I'liioii in I '"^ I I . atnl v\hi<li uni- 
 ted < 'anaila al ( 'ont'i'di'ialioii. haii<l<'d mcr to tlir |)oniiniuii. as a Ml oil' to i'c|iM\ahiit 
 iidvantaift's siirirndricd lo tho lloniiiiioii liy No\,i Scuiia and New Hi iinswitk ; and thfi'ti- 
 t'orc. as any one must sec. I.ovmt ( 'a'l ^da lais icali/i'il the lull i rin lit of tlic asst ts en 'a led 
 l.y thf dilil of I'l |Mi- ( 'aiiada at tin' riiio.. -n ISII. ly j.,u ii(i|ini iiiif c (piallv with I'lprr 
 Canada, in all I ln' ail\ anta;rrs llow in;,' troiii ( onfiiii'i a! ii n. It' C pinf ( 'anada and l.owcr 
 Canailii. al'iri- hM^inJ.' I'Ci ii ic united in l.^ll. had on the liisi da\ • \' .lnl\. I.''*t'>7. ^epnni- 
 tcd. and lieeii i-es(.|\ed into their original position, eai h takini,' l.aek ihe n \eniies and 
 iis-..ts it .-.iirii ndeii'd at I e reunion, there miiilil he some eohir for aiunini,' that C|i|ier 
 Canada should lake Iraek aloliu' vvilh lhe>e reuniiis and these asvels. ilsr|el.| ineillled ill 
 res|ieet of these assets. I'liit iiisteail (d' this. Lower I aiiada as \\i II as Cpiier ( anada. liiS 
 gi\eii these all away in exi-|iaii::e for the position they were permitted to assume in the 
 
 1) 
 
 oininion ot ( '.iii 
 
 ll< 
 
 lU llieli call UlU'hee sa\ oil atlV till 
 
 pl'llieiple whatever, lie it iliat ol 
 
 UtU 
 
 \er--al. Lieiierai. oroidiiiaiN partnership, m olherw ise. ih.'it I'pper ( 'aiiada siiould 
 
 is.siirntr 
 
 tile payim nt of a deht ineiiried for |iul.|ie works, e(|ually as lieiielieial to (Juehee a.s t< 
 (•ntario. and aitiiall\ traiisfeire'' in the I'ominioii. as the joint eonlriliiil ion foi- their en 
 terin.i,' into Coiifeijeiat ion. and in the ad\aiila;:is of w hieh (^tin hee pailjripates to thu 
 
 i«aine 
 
 •Nleiit ,is ( >ntario ( 
 
 his wiai 
 
 d h 
 
 |lll\ale|it lo (^lllehee taklliu liie 111 dlMihd lia 
 
 If 
 
 iif tile assets eiealed liy all e\]ii iiditiire wliieli laiiMii tlie delit id' Ijiper Canada at tlio 
 riiioti, and then asking l'p|ier Canada to pay oiit of its own leioiiices a/l that dJi/. In 
 other Wolds, it is eipii\. .1.1.1 111 (jiiieliee sa\ iii_u to ()iilafi( ■• we know we lia\( iia|ie(l 
 " ttie ad\antaj;eii ei|iially wilii Cpper Canada fioiii piiMic- works, wliieli laiised a I'ltaiii 
 '• (leht ; liiil this does not satisfy lis : ucolijeet to payiii;; .inythini: on aeioiint ol the delit, 
 " I'piPvi' Canada must pay it all. and make us a pfeseiil id' the iiiiili\idei| moiely we had 
 "in these piililie Works, wliirli nil the joint aiioMiit oj' Imtli rpp< r Caii.niit and Lower 
 "Canada. Iii\e I n sold and assigned to ihe |)oniiiiion of ('inad.i.' 
 
 >li: It has lieell tiiiini 
 
 diantl 
 
 y asked suppose a sepatalioii ot I [iper t ;iii,iila 
 
 f r 
 
 am 
 
 " Lower < 'anada. had taken |'laie within six nioiilli'^ or , a year after tiie reunion of tjic 
 " I'foviiues. Would any one say that the deliis of earli I'loxinie at tin- reunion -lioiihl 
 "Hot lie taken into eoiisidei.itioii in ;iiljiistiii,;; the terms of the dissolution ! " .Vinl 
 " does it ni;ike any diil'eieiiie in piiiniple. whether the I'nioii lasted only one year or 
 " tweiiiy-six \ears. I aiiswei- nio>t nnlie>itatiiiL:ly. lli.it if a hare, naked, separation wen! 
 t<i take plaee l»y whieh eaili l'io\ii.ee would he re-tored to ,il| its ie\enu« s, property ami 
 assets, the ilelit of e.nli at I he union, should most i!ni(iii stion;iM\ Ne laki n into roiisider- 
 atioii, whether the union h.td existed one or fortv ye.iis. I'lit uni'ortun.iti ly for the pro- 
 jioiinder of these i|iiestiiins, siwh a se]iaratioii of tlu' I'rovinces has not taken place. 
 Neiiiier I Intaiio nor (^iiiehee has liei-n ii sioird 111 iis lniniir position. Their puhlir woiks, 
 
 ptl.y 
 
 (/ /■(//( 
 
 V, exei 
 
 their (ustoiiis duties, their exi'ise. and the power of le\ \ iiij,' i/iiti(.-i mti 
 direct taxation. lia\e all lieeii hy them i;i\-en oMr to the i.'eiieral L'oxeriinieiit, in loiisider- 
 tinn of its .'issuniiiiLi tlif deht which created their jiuMic works, and of i he ail\.\ntai;e.s 
 each will derive fioiii Ceir.'edeialion. and in the further eonsideiaiioii of eeil.iin siilisidics 
 and payments, e\en moie liln i,il to (^hielne than to (tularin To .iiL'iie as ceit.iiii ueiitle- 
 liieii do, is losiiii; siuht of this cardinal fact, liy which diey have lieeii mystilied, altlioiiylx 
 tlie\' pfeteiid toliave ^iveii a uiciit de;il of attention lo this i|iieslion. \\ li.it lot^ii or sense, 
 I a-k. is there iheii in iisin^' platitudes ahoiii ap|il>iiiu ihe principle of an\ form o| part- 
 nership lo ilie di\ isjoii and adjustment of the dehis. credits, property and assets of I 'p]ier 
 C.'uiad.i or Lower Canada ' If any siicli |)iinciplc is to he applied, it iiiiist he one liy whidi 
 the .iec(iuiit,s will he taken ;is in ,iii ordinary p;irineis|ii|). We must first empiin^ into the 
 delft.'j and assets each I'roN iinc liioii^^lit into the coinmon concern. We must next ascertain 
 wliat eacji I'loviiice has coiitiilnited to the Joint iindertaking diiiin.i: its coiitiiiiiain c ami 
 what each has taken out of tie coininoii fund for its I'lovime, ;aid w hat has lieen paid aw.iy 
 or objects provincial in ilieir character, aiul alike beiieticial to botli I'roviiiees. 1 have 
 
 * 
 
«<> 
 
 IlfVfr (ii,|i ( li'd to sill li 11 |ililici|i|i' all'l IIMilr n\' -il I Iclllillt. I .ullllll It.' 1 1 1 tlilll ll \ . yil it 
 
 in pii.-HjIilc. I'cit'dtl} iu'ciiialc ii -uli> iii;i\ iini Im' MUaiii:ili|<'. \'I it is ipiitc |iiis.>iil)l«' to 
 ai'l'ivf M> lliMI llic lllli- si. lie III' tlir acr.illiits .1- t'l r 'll'lrr :HI\ ill-rrc']i;uir\ llllilii|(iilt;ilil,. 
 Nut liiinw in;,' liiif I lie ill I lit I at I (In iiiii,'Iit ai|ii|it this pi iiiii|ili'. I \vciit int.. tlir r.xainiii.i- 
 
 tiiiti 'A' till' ihililir ai'i'iiiiiit" III' till' latr I'l'nvi 
 
 li'i i|;illli;_' till' r\|stil|ir 
 
 III. I 
 
 lll'ili. 
 
 aviiid all i|iicstii>ii> wliiili iiii-lit lif iai~i'i|. I kijil -liirtly williiii tin ulliijal >lalriiii'nt> uf 
 till' pin|M T (iHiiial ilt'paitiiiiiit>. Ill tlii> iiiM'sti^atiiiii | ini i\ nl (■\riy l'aci!it\ and ^irat 
 ussi'itanrr rmiii till' <illiiial> in tlw Finaini' I >rjiailiii(iii at < Mt;i\\a. tu w Imni I t.ikr this 
 OL'ca-iinii to t'\|iri'» iii\' nltjiualii'iis. 
 
 I rlas-irnc! llir M'M nil.' imdi'i' I'liiii' head-, viz. : •• tn I 
 
 It' .>iili <li\ idi'd lilH liidlii:;' ~ili 
 
 itmi.-i a.-* Will' jiiit dividid in tlii' I'liMii' .Viiimnts), •• I'luviinial (niraiiinu irMiiiU' rimii 
 
 llirllldillg 
 
 and •• laiwir ( 'aiiad 
 
 HoiiM'i'.s ('(11111111111 III Imth i'ii>\ ii ii'>). •■ I ppi'i ( 'aiiad 
 
 ilriii-. ari-<iii;.; iVnin local soiiirr- in I ppi'i- ('anail.i and Lnwir < iinada ii'-|m i tivrly). 
 
 Takiii',' till' • 'ii.stoiiis dun 
 
 Clllli'l'li' 
 
 it .M'intii;u. I )iirlii 
 
 aim 
 
 St. .lohns 
 
 ( 'asiial ifvi-nut 
 Mill St.,'iiii| 
 
 )S 
 
 t'i.">.!)ri'.i ,sL> 
 •j!Mi..^s'.i ;;(; 
 
 iT'oii-'-'fiK. l'.)7 o.s 
 
 atid di\'idm;j, llii.> .->iiiii i'i|nall\ In'lwi'cii tin two |'^.lvill^l•^. I'ppiT ( 'anad.i. duriii:.; tin' 
 
 I'liiDii, paid iiitii t 111' ( 'mi-.ilidaii d Krvi'inu |''mil 7 I.7'i7.."i<i I !^'-') 
 
 and i.iivvi r ( 'aiiada .'l.''i..'^.'")n/J i.'l ;i;> 
 
 1 )inili'l|rr in ! i\ ulll 111 1 'p]irr t '.iiiada 
 
 .^:;s,'.il7.i).-i.«^ .'.(I 
 
 It i.s wi'll Kii'iwn that t'l'T a Imm' pi'i inil aliiT tin' I'liiiiii <>[' 1^11, tin- laiLirst jinriion 
 of tlu' guilds mti'ii'd at tin' I'mt^ uf (,lni'lii'c .ind St. .loliiis, win- cipiisiiinrd in I'lipcr 
 ('aii.'ida. and .'irii-rwards .Munlnal luiaim- the i liid' \<'>y\ t'nr thr riitiy nl u.mmU i'iiii--iiiiifil 
 ill i pprr ( 'ana da. Tiir prnjiiii limi .-^n paid ;it lln-i' p^nl-. and -nld tn I'ppiT ( '.iiiada. r.iii 
 (uily ippiiixini.itrly lii-.i-i't'itaiiird. .AtliT nui-iiltinu all tlir piiiinpal wholisalc iin'ivh.iiits 
 in .Mmiliral, and iiliiaiiiiiiLr I'liiiii tln'iii tin' aii;irii.\iiiiati' iiin|ii>rtiiiii mhiic ''iv iiii: ihii-i!. 
 
 foil It 
 
 i->. otlirr^ I « II lliiid>. ami iiniii' a-- th.iii iiii> 
 
 ■hilt' nil an avi'iaui', ;it Ir.iM. Iwu third.-' 
 
 to I ppi'i' Canada. I di'i-idrd. ^i\ini.' Lnurr ( 'aiiada tin' I'linlit id' tin' d'Hi'it. tli.it Ippi'i- 
 Can.'ida paid at least mn' li.ilt' uf tln'.'^i' < 'li-tniiis diitin-. a- Iain >iiir any mn' ulm li.i- t.ikiii 
 anv tniiiMr to iiiM'-tiual'' tln'-iiiliji'i't, will aurrc with iin'. is ratluT an iindrr than an oviT 
 
 ('.stiiiiatc. .\s tn thr ( 'a-iial li"\iiiiii' and I'lill St; 
 thf -lliiji rt. wi 
 
 nip 
 
 •V'Tv mil' at all riin\ii>aiit wiili 
 
 liiiit ihii I '|ipi'i' < '.iii.nla p.iid iniirh 11101" tli.iii tin- hall'. 
 Nnu- if we tiini t ) till' locd I'Xjii'ii litiiii' 111 I'ppiT 1 'aii.i'l.i and Lhwit < 'aiiada diir- 
 iiij,' the riiiiMi, wi' tind tli.it thi'i-i' wa^ I'.Npi'iidi'd in I'ppiT Canada .'^1 ('i.."iCi."i..'i."is.7:i. and in 
 IjiiWd ( aiiad.i. .':rl'.'.."il 7.'.i:'i:i.'.''.i. ~liinvin,u an i',\]i('nditMrt' in Lnv.ri ( 'anada hm r that r.x- 
 pi'iidi 
 
 I'll in I pprr I aiKi'ta 
 
 .-;■' '.i.'r' ."I'.i.s •'! 
 
 jn. w 
 
 hicli. addi'd tip th'' dill'i'ii'iici' in hmiiiii'. 
 
 inakrs thr ruiiriiioii.-. halain r, nii taking tin' am lUiits lirl w rm lln- ! \'.n j'l .isincfs, on tin' prin- 
 ciple on wliirli llii'V must ill' taki'ii. it' t.d\i-ii at all. ot' .>:' i Lsrilii;.-!.'! 7''i : aiidy et we are tnld liy 
 
 C( 
 
 ftain '.:eiitleineii in Lower C.mada lh;ii thev i.ie entitled t 
 
 11 cn.'i-Lre a: 
 
 aiii.st < )iitaiii» tho 
 
 debt rpl"'!' ' 'III''"!'' li''''l •■'• the I nimi in l-^ I 1, \\ hile all the I inn- t.'iieliee eets li;dt' of the 
 Very a>set> in le.-iperl of whirh the ili'iit was 1 11 ;ited. a-i I ha\e .ilieady sliiiwn, and 1 
 
 ;iwii out of the ( 'onsii.iilat 
 
 I'll lieVelille 
 
 Fund nearly 8 li'.ooo.doo more than Cpuei' C 
 
 I as 
 
 ad.i I 
 
 In niattcr.s so iiii]>iirtaii. as that upon whieli I am imw speaking, and one almiit uhieh 
 so iiiueli li.is heeii said, and sinli eiiiiiienu- opiniuii.s sei ni to pvev.dl. I will ask the indul- 
 giMice of the arliiti, it Ill's to jire.seiit, in detail, in taliiil.ir loriii, the d.ita upon whi.h tin; 
 foivgoiiiu ('oiii'lu-ioiis have lieeii re.ichi'd. 
 
 Statement A ioiit;iiiis the revenue I'luiii the intli of i^'eliruaiy. 1^1 1, to the ;)ntli of 
 June. lsi;'.i. 
 
 tl 
 
 Stateiiieiit I! contains the e\|ii'iiditure during; the .saiiie iierni 
 
 •Statement C contains an abstract, of the revi'iiues for the same period. 
 
I 
 
 SfalrMH'iii I) inritiiiiis jiri acciuuit <>(' tin' ;;ni.Hs iivcniii'.-. icc-ivcl Irnm ('nivvii lainlii, 
 rmiii the 1st dl' .(niiii.ii\. l.spj. to ihc IhI uI' .Inly, IS*. 7. 
 
 Siatfiiiriit K ciiiiSiiiiiM t'li' ^;i(iH-» icMiiiic rr<ci\f.l t'n.ni «(>n(l>.iriil t(iii'.st-«, im Incline; 
 hliili- (lues, i'luiii ilic Ut ot .laiiiiuiy, 1m I:,', to flii- l.-t nf .Inly. IHC.T. 
 
 Staliiiiriit K iiiiiliiiii> ii (■iiiii|iiirativ«' \\v\v nt' llu' lUilinary ^I'lU'ial m-vciiiiis and 
 
 Any nni' laii trst the aciiiiacy m' tin -<• laMi's, ii\ t:ikin;4 llif i'ulilii' .\i<(iunl' <<[ any 
 one yrar, and tiaiini: tail caili itrm, anil wini" tin' piiMisli.il i'liiilic Arcunnis tail tn ;;ive 
 that full inloiin.ilidn iriiniird, Ky ;i(iiii;,' tu tlir l'in\ im iid ln'iikw, 
 
 I''iiini llir |ii iiiiipli' nf di\i>inn and ailjii'tnu'iit wliidi llic' arlatiaLa-s jiavi- ail'i|itci', I 
 jnu awaif that tln-i' n'lnaiki and tlic .-iiliji 1 1 to sviiicli tiny iclatr, arc. as tlic lawyt-ra 
 say, nut within tin- iccurd. and cannut liavi-, ami indi-i'd. I do not intend tluMu to have, 
 any inlliii'in'c in the di'trnnination ui' the (jnc^tioiis licluic the aliitiators. They aiv made 
 t'ur the |piii|Misi' (if answering .•oiuiucnts and ■jlateiiicnts svliich liavi- been made oiilsidc of 
 the cull It of aibitratinii alloL'elluT. 
 
«B-r 
 
 UmiH. 
 
 Mill 
 
 mid 
 
 ;ivp 
 
 l< 
 
 I 
 
 ll.lVC, 
 
 liiiadc 
 i.. uf 
 
 •ili('(< nl ' 'iuiihIm, 
 
 If 
 
 i:!7.i'.'.; ".I 
 
 l.ori 
 
 r.s.-, c; 
 
 18fll'.> l,;!l(l.7,TJ .•i.^ 
 
 '■-••-Mt.iS '.»!• 
 
 5tl.1(ll -.'•J 
 
 i.i.ii :« 
 
 .IU.M07 M 
 
 SI 
 
 r.,(i 
 •-',7 
 
 I.*! 
 
 3,;( 
 
 74 
 
 4.:. 
 
 77 
 
 101.0 
 
 ts m 
 
 (-.7 110 
 
 "hi 77 
 
 li« 7'l 
 
 ■<•_' «(( 
 
 v; !»o 
 
 ,(HM 7» 
 
 ."Hi s, 
 
 17.'!,0JI 7!i 
 
 •J-.'.".,:.;!;! :t7 
 
 ,TV(,.s;il Hti 
 
 .T.il.stil 70 
 
 ,:;(i7 ;il 
 
 ISO oo 
 
 :t7 
 
 "lOlJlS 'JO 
 
 .|,:»;(;,ar.3 lm 
 
 S. U-',SII1.' Hi 
 
 lo,.c.N,(i7i; HC 
 
 io,:.:,i,iL'7 (>r, 
 
 ■Mi'J!,4r>\ .-'.I 
 
 2,--'l(» •-'7 
 
 3,83<i,477 41> 
 
 .405.407 ;H 
 
 i for 
 
 . ?745 15 
 .1 -M'.'^ '.17 
 .7 coo 7."? 
 •8. . ;«i Xi 
 
 ,rt....\,m> «> 
 
 .10.T 27 
 
 7,. '..30 22 
 
 r.,0i»7 H9 
 
 .5-«i 81 
 
 . 8,88(i lii; 
 
 aa.txn .w 
 
 vji 
 
 Pu! 
 
 -hav 
 liioB 
 
 30,224 Sn 
 .•l,806,2r>2 64 
 
 101,0<M 74 
 
 ;i,H<Ki,252 04 
 
 1I'.'(Mr.,8.'14 r.4 
 
 lll),(Mr,,8.'»4 ,'".4 
 
STATF.MKNT <.f tl 
 
 Vfftll!. 
 
 ro I'.K srr.hu iiiKi), 
 
 <'ui<ti>ni»i 
 
 IHII 
 I.SJJ 
 
 I M.»;{ 
 1M4 
 lMi> 
 Is-k; 
 
 I.M7 
 
 IMK 
 IHJ'.t 
 
 iMr.o 
 
 ls-,1 
 
 1H,VJ 
 
 lM-,4 
 
 isr.:. 
 ls.">»i 
 
 iH.-.r 
 
 'I'otiil 1' 
 
 IHJH 
 IH.VJ. 
 IHCO 
 IHCl 
 
 IHtV?, 
 ISC, 4 
 
 iHcr. 
 i8iiy. 
 
 f 
 
 ih:...vj:. 
 ■j;u.(4o 
 hi'.i.'.tti'j 
 
 .'t'J7.!Mi4 
 
 'J.s|.74(i 
 270,1 IS 
 •_'(i,s,i;H',t 
 '_'(;7,:fj.! 
 .■i(;h.n7ii 
 4:.i,ti'.'".t 
 ii.'o.t;'.';i 
 ."i,"iM,s7s 
 i;:!i),t'iSt) 
 :i:i4. :.;•;! 
 :.:v» lis 
 
 M. 
 
 <l. 
 
 'IVrrituriiil. •'ii-iial. 
 
 H 7 ■ 
 
 1 I 
 
 1 ' I 
 
 I'.t H I 
 
 r, 4 I 
 
 1J l(» 
 
 1 :. 
 
 Ill :{ 
 
 I s 
 
 <■> 7 
 
 " • I 
 
 .1 .> 
 
 l:t 4 
 
 U 
 
 IS 
 
 t<; 
 
 C.IOO.'.KH ;« 
 
 .•i* 
 
 < '«. 
 
 Total 
 
 24,40;}.7'.<2 Hit 
 
 l,H'.H;,tiit:{ -js 
 
 •j.tir.i.i's:. '22 
 
 'J,7si.:{S!> ;i7 
 
 2,7:;).7'-'7 (i(> 
 
 2,87<i,i;'.'7 ."hj 
 
 .•<,417,().<-J hi; 
 
 i,',()'.w.4i:{ s;i 
 
 ;<,.s'ji ;.(•;!;» 4t; 
 
 4,7M2.:.s:, IS 
 
 4,;r.'j.s-_'4 SI! 
 
 24,](i(; -27 
 
 40,77s 
 L'i.:.7-' 
 •J7.-"-M 
 ri.iHo 
 •_••_'. S71 
 •_';{.. v.'ti 
 -"•,7">7 
 
 ',»,:>(;s 
 
 •-'1.711 
 Ht,!h;i 
 ;!'.'.•_' IS 
 • .1.117 
 71, -Mil 
 7H.;U() 
 
 '.'."». imi; 
 tt4,ri.*)."i 
 
 IK 
 
 r. 
 
 is 
 ."( 
 1) 
 
 1.'. 
 1) 
 
 14 
 
 18 
 
 ."» 
 
 I'.' 
 
 u; 
 
 !) 
 
 
 
 it 
 
 14 
 
 ^1.1 
 
 i; •. a. 
 
 »' i; (i V I N (• I .\ I. 
 
 liill Stan 1 1 w. 
 
 111.', 
 
 11 
 10 
 
 I 
 
 li 
 10 
 
 S 
 10 
 
 7 
 
 10 
 I) 
 .'i 
 '.» 
 •I 
 
 r>'2HA'J2 2 If 
 
 .? ids 
 
 '_Mi;{,'jr.s 4-j 
 
 H'2\ 
 
 ■X'2:i'2 
 
 OS 
 OH 
 
 77 
 
 .-.) 
 
 <;•-' 
 
 su 
 
 70 
 
 !t7 
 
 111.-. 
 
 li:i 
 
 11)1 
 
 01'.". 
 
 Kt Mil 
 
 17 4.JI 
 
 II i-,) 
 
 III <S 
 
 ir. H 
 
 'l'..t!il. I, Public WorkM. I'.ist OHU-.', 
 
 t 
 
 •I I 
 
 f H. d. 
 
 ( 'iMiiai. 
 
 H. 
 
 II 
 i:? 
 II 
 
 -»'-'r..:{<M 7 
 
 '.'.V.i.,s;;i .'? 
 
 •J(Mi,417 1'.» 
 
 .at.LMi i:. 
 
 :(4l.7S'-' :i 
 
 .;o5..v.v. 
 
 •.ici.o.vt i;{ 
 
 •.'!•-'. is I 4 
 
 •.'7t"..04:{ 10 
 
 :!;hi,4I7 1h 7 
 
 47 1,1)7 1 •-' 'A 
 
 lo..^y.•. 
 ll.ois 
 '-':t.i".fj 
 17 is-j 
 
 II 
 
 :! Ill I 
 
 II ui 
 
 '• loll 
 
 l'...sl-! H 111/ 
 
 :w.;u7 -i 4 
 
 :i:'.iiys 11 
 lo,:.i'i I 
 
 47. sol II 
 
 .*»o..v.i!» i;; 
 r.s, »•_'.•, 1 
 
 
 
 7 
 
 11 
 
 •j.H'ji; I » 
 
 10 
 
 ir. :, 
 
 iL' 
 
 II :» 
 II 4 
 
 u,r,io 4 11 
 
 .■if rtH. 
 
 •ji;,o4o 00 
 
 101, 
 
 I'll-.'. 
 
 40:', 
 
 101, 
 
 t'.ll 
 «;o:; 
 1S7 
 
 S,i(l 
 
 i',-2S. 
 "ill 
 
 III! 
 
 IIS 
 
 IISS 
 DL'S 
 
 :;o'_' 
 
 S!)i' 
 
 ;t7o 
 I.-. 
 
 7.! 
 00 
 
 70 
 
 S'.t 
 
 • 17 
 07 
 •_'s 
 ;{o 
 
 '2'2 
 W 
 
 .=i5,HW,047 Oil I -7,ni4,:i'jo :w 
 
 4H() 
 
 7;<:« 
 
 !i71 
 i;;:i 
 I Mil 
 I OH 
 O'JII 
 120 110 
 
 ;«i;!» ."".o 
 yi8 10 
 
 '.'s 
 42 
 s:; 
 00 
 
 ii;* 
 
 00 
 
 etri. 
 
 I.-.2.!I43 
 
 ii2:i.r.'.{ 1 1 
 
 702.IMI2 10 
 
 »;n.():!7 i 
 
 .••nil, 10.*. 12 
 
 rir»2.;i;iH 2 
 
 II 1 
 
 ' 
 11 
 
 4 
 
 1 
 
 1 
 
 (t.i};r),9:.o 7 
 
 3.1 
 
 1 
 
 s 
 2tJ,.M:»,80l 
 
 2. 00.!. 22! » 
 
 rts. 
 
 ■\r, 
 r.y 
 
 I12,2il". is 
 
 lu 
 
 r.f(.ii7r. 11 
 
 .1 
 
 lo.rr. 10 
 
 H 
 
 28,00.'. 2 
 
 7 
 
 40.711 N 
 
 
 
 1 .•I2.0'.l.". .•) 
 
 <; 
 
 a7,024 14 y 
 
 »!l8,:t(i5 
 
 104.028 111 
 )iH,MS or. 
 
 07,87;'. II 
 
 L'.o4i;.ir.4 .••0 
 ;i.27r.,s.t7 18 
 :;, 110.280 32 
 ;!.;57i.8;i2 112 
 1.02.".. mo M) 
 2.2.s7.8;;3 01 
 l,7HI,osi.» III 
 .'.,.".0.'.. 172 or. 
 .■..2tl,0!C. .IS 
 24.181 27 
 
 ■S it-. 
 
 2,47;;. ir.i r..-. 
 
 .S7,024 14 
 
 $ rts. 
 
 I is.oits ;i,'". 
 
 lO'.i. 
 1.2 
 
 2.';. 
 
 280. 
 
 10, 
 
 117, 
 
 liir. 
 
 1 1;;, 
 
 .siii 70 
 
 II71I 110 
 
 771 :.o 
 
 170 70 
 
 41il oil 
 
 07s 82 
 
 .•{o:. Ill 
 
 HIS 75 
 
 210 08 
 
 8; 12 114 
 
 ♦ir.,o.v.» 82 
 
 20O,.-)H0 :u\ 
 
 l!.-?.22;{,ri87 4ti 
 
 Dt'iluct t'M'L'i* of iwcfiiditioc <iti acfouiit TnlilU' Workw fur ycii' 18H8 
 
 Total ,... 
 
 ;:,.*>3i,97;i (jo 
 
 1,22s 78 
 
 3,5;{0,744 22 
 
 2o,'.,;<o,". 
 :i;!;i,22;i 
 4(r..;u7 
 
 I."m,724 
 ♦08.717 
 i;is..sr,.( 
 
 I2il,0:".3 
 ilo..so<.t 
 1121.0.111 
 r.|s.2:i:. 
 io;{,io;j 
 
 711 
 
 48 
 
 ;;s 
 h:, 
 21 
 111 
 411 
 
 74 
 42 
 
 7A<.1 7 
 
 .^070 11 
 
 11,228 10 
 
 1..I20 12 
 
 12,11; 10 7 
 
 :i,.".il2 IS 
 
 7.8iO I.-. 
 
 IO,.".ill 17 
 
 ll.s.^o 11 
 
 27,;n I I 
 
 41, 0|.'. 7 
 
 7:>.<.27 14 
 
 4;i,:.uo 
 
 liit»'r«'st 
 
 lllhl 
 iVi'iiiiuiiiN. 
 
 1.4:«> r. 5 
 
 (i,II.SO 1;; II 
 
 .SinkiiiK 
 
 I''UI1(1. 
 
 Ill 
 
 •• I, 
 
 1. 00s 14 10 
 
 HIS la 2 
 
 2iir>,:{tii> 18 8 
 
 4.817,480 02 
 
 4,817,480 02 
 
 i.oni,4r,7 7;{ 
 
 «i,04;( 17 
 s,oyii :>:\ 
 
 82, .v.! I 111 
 
 1102 .'.I 
 
 2.542 44 
 
 .840 
 
 4(.> 
 
 1,040 28 
 
 2711 .s;! 
 
 l,os;{ (12 
 
 ;i.2;{9 xr> 
 
 HOH 40 
 
 11,214 1> 
 
 4? 
 40 
 
 9 lU. 
 44,857 or. 
 
 4H..V.llt 21 
 
 48..^07 24 
 
 n.S,S14 M 
 
 480.;{04 01 
 
 ;104.74."> 01 
 
 3ii2.7ilO 70 
 
 .SS,2;!li .H2 
 
 r.4,;M2 70 
 
 I, -.8,1; 14 .-.11 
 
 87. ■'27 ;<ii 
 
 211,000 ;f8 
 
 cti 
 
 142.S.SI) ,SI 
 IOO.IMI4 
 
 i.iHo.iiio yn i 2,3.'.i.:5.-.o 42 
 
 i.ir.y.Hiy y.s 
 
 2,351,350 42 
 
 2.M,88.'. 
 
 2.11. 8^*> 
 
 * Territorial revonuf \f tho not rtwiuie a.< utatt-d in tlio I'nhlir Airounts. TIi.th i.x no a.-vsy method of di- 
 viding this hetvv.H'a V])\n'v Canada and Lower Canada, as it appears for the .several yp;irs of the Union ni the 
 i'ubli7 Aixoiints. J5ut the I )epartnieutal returns sii..\v from year to year tiic ^'n.ss sums eoliectod^ resiiectively 
 in Upi.or Canada ami l.owrr Canada from Crown Lands, Woods and Kore.sts, Slide Dues, itc. Tile aniouutH 
 -'luwn by tlie,s« dlitial rutwrns (I) and K) are therefore .substituted for the above sum in the comparative state- 
 ment (P) as showing' aceuratclv tiic relative proportions received from Cpper Canada and Lower Canada i e- 
 .spuctively, on acxouiit of Crown Lands, Woods and Forests. Slide Hues, &r., duriii-,' the Cniun. 
 
71 
 
 TATF.MKNT ul' tlu' ordiimry K.;Viiuu's ..r tl.r IVoviii.v ol Cauii.ln, :in.l wImmum' .l.-riv.-.l. iV.mi tlp' ri.im, m IS41. up to noth .l.ii 
 
 I N <■ I A I. 
 
 llltiTl"*t 
 
 luul 
 I'rcinimiiH, 
 
 Siitkiii;r 
 Kvilid. 
 
 I'l'i'iiiiuiii'* 
 and 
 
 Kxi'lliMlK'i'. 
 
 L' s. il. 
 
 C.OMO Kill 
 
 -.'..vj:. HI .'i 
 
 I. (HIS It to 
 
 11. '-'14 !• !t 
 
 1 t,H57 or» 
 
 it;,r.',t!t 21 
 
 \s.h07 '-M 
 
 ltS,S14 Jl) 
 
 iv.H.T'i:) HI 
 
 3ti'J,7ti;t 7tt 
 
 SS, •_'.'!('. Si' 
 
 r.4,;i4-j 7'.i 
 
 ir.s.<;«» :.('. 
 
 H7j>-2' ;?•■. 
 
 i; H. .1. 
 
 I I* I' i; i; »' A N A I' A 
 
 I'nta' 
 
 I 'luflltlJIl. 
 
 Kxciw, 
 
 
 $ cts. 
 
 M2. 
 KMi. 
 
 S,S(> 
 
 (H)t 
 
 SO I 
 
 •.s i 
 
 2,r.i.:rrf) 12 
 
 2,351,350 42 
 
 2r>i,H8r» :{8 
 
 251,8^5 38 
 
 « cU. 
 
 ]r>,C.()C t».'> 
 
 "is,^t;i2' fi7 
 
 :i,:i7:; .'-l 
 
 i:(7,7'>4 01 
 
 lOS.'.Mii 74 
 
 »'j,7S(i 71 
 
 2,"., Ill .!(> 
 
 10,21<; (Hi 
 
 10,5'.»5 !• 
 
 i:j,844 r. 
 
 23.2;i2 •> 
 
 |S,!i|2 Hi 
 
 ;».'{, »2ti I 
 
 4.\'.tVJ 11 
 
 : I! »,!•;•..■. ID 
 
 21, mo 1 1 
 
 r>!t,s:(i IS 
 
 fil.lii2 12 
 
 «;ii.2ii» Hi 
 
 M1.S27 10 
 
 77,lMMi 17 
 
 7<1, l.iii II 111 
 
 •ill, I i JO U 1 1 
 
 12ri,.<.i'.» s 10 
 
 |li:i.r,io ;i 
 
 i<J31,!l71 10 n 
 
 * vU. 
 n,727.8Sil IS 
 
 I'ul.li.' NV..rkH.! 
 
 ( 'iu<uhI 
 
 ••(Jl 
 
 llf 
 
 )i 
 
 I 
 
 7 
 
 11 
 
 ,s 
 
 i; 
 
 27.1^4 1 <i| 
 
 .".1.72 1 17 '.','1 
 
 .VJ.SC.J 2 ]0|l 
 
 ,s'.i,;;.so ;{ ;t i 
 
 '.12, 142 4 C> 
 
 lol.ti.jr, 10 111 
 
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 i M U ;J 
 
 ;,' fi ,T ;■; ,S? ;;; -£ 
 
 o 
 
 "^ X ? 
 
 .^ r^ 
 
 . 
 
 :■ 
 
 Tf 1^' ^5 1; 
 
 X'5 
 
 
 
 
 X -i. X -/• 
 
 ll 
 
 
 7 
 
 i" 
 
 
 '/I '/. '/. X V: x ." 
 
 
 
 /= '^ X 
 
 r- « - 
 
 7 
 
 7 
 
 7 
 
 7 
 
 X 
 
 7 7 7 
 
 xj 
 
 
74 
 
 C. 
 
 A P)STI{.\( "r nf tlic ( )r<liimrv Nit luvcmii .s ni tl c Proviiict' uf ( 'jiiiiuia, fVnin the 
 
 I'llinli ill I.SH III tlic ,'{nill .llllic, iNliK, sllnwili;- ,|i(> fi Hit lil illl ii WIS t llrrctu of 
 
 r|i|"''' 'III'' l'"\M'i ' 'ntiiiil;! ri'.>-|'rcli\ cly, tlii'ir jiiiiit rnnt lilml inns, w liich aro 
 ji|i|ii(i\iiii;itil\' ili\ i>ilili', iiiul Mirli lo aif iiLiaiilfil " l'ni\ incial" nr cuiiniii m to 
 
 1m,|Ii, 
 
 HK.\li^^ l)| Kl \ I'M v.. 
 
 < 'll--t(i|ll> 
 
 'I'i'irili'liiil . 
 
 ('.•l.su;il 
 
 I'lill St:ii]i| ■< 
 
 J'iililir\\..rl;- 
 
 Interest I'll I •i-jiM.sitK 
 
 Siiikiiik' I'liiiil mill <iiiiiiM 
 
 I'l'i'iiiiiiiii :iii<t K.M'liiUigo 
 
 Kxii.'*!' 
 
 I'liiik liiiiii'-l>. 
 
 l<:i\\ V\i< 
 
 I'iiii- Miiil I'l'i li iliiri'H 
 
 1-i-lit IImiim' Mini 'r(iiiiui;,'i' l>uty 
 I'osl OH'ui- 
 
 Total.... 
 
 I'piuT* 'iiiiail.'i .... 
 
 l,(i\Mi( 'iiiiailii 
 
 'I'll I'r Mll'ilivillfctl. 
 I'rci\iii. i:il 
 
 (I|i|iii » iiiiiiilii. I,i'\vir< 'imaila. 
 
 SiilMlivi.i.',!. 
 
 I'liuiiu iiil. 
 
 .S ct... 
 
 i-ts. 
 
 ctn. I 
 
 I'tH. 
 
 4iiO,»;M 41 
 
 7, H>-">.41'7 ;t4 1 •_'..">!f-'.!t.tr. 77 
 
 ."^.V.'.-.'SS 7s liiT.'.ilM 77 
 
 riil.ii.s; di .. 
 
 I.VMI-.".! n ; lIll.lilM 71 
 
 :'.l.r.v_> .SK 1 
 
 ">(i'.i,:.'i.'ii (I'j rM,,s.v.'.fi47 !Wi 
 
 . . j 7, lit l..i'.Mi ;i.>- 
 
 l;u»,<,i;«i 47 I t;."i,'.i.". -i - i.tHiMcit iw 
 
 •Jiwi.riX'.t ;«» 
 
 : .•<,ri.i((,744 -£1 
 
 •.'.:!.".l.:;riO 42 
 
 i'.".l,.><x.-, :t8 
 
 .■«M-,,(I,SH o« 
 
 4,1W 27 
 
 4.M 7,480 02 
 
 :«>.4SK»,a!«i ;m ;!.m»;.'-'.v.' <".4 ii:t,->2.v>87 4ti i i-j.r.iii,7iK lo 
 
 (I i; .\ .N 1 1 i'liiA t. 
 
 #.«i,4!i!i.-_".k; :h 
 
 .■i.si'i'i.'.'.'i'j t;4 
 
 •i:;,-.':i:;..^.s7 4f)t 
 
 I •.'..". lti,7 is 10 
 
 T.itttl. 
 
 .*II'.»,(»4."..S.'i4 54 
 
 * 'i'lii!* anii'init is iiuuli' iipfii iii tlir I'uMir .\ri>niiiits. ami is tin' int rfvitiu-. As it .stands in tli'' F' iblic 
 All" lints it Ik Mt I a>y tinliviiif it, I lit in tlir • ttuial siali im nts !' ainl 1'"., (■"•niainiiii.' tlu' Lricss i'(Mi'i|.ts from 
 Ci-iiwn l.iiiiiU. N^iiitlsaiiil I'l'ii-sts. ."sliiic l>ius, i^i-.. ii aili- up intln- ('luwii Lands I li'|iaitnii'iit. tin- '.'rnss re- 
 I'fipts uM' aivniatfly ili\i(inl. aini tlic relative pii imitions leeeiwij fii.ni I'liiur faiiaila ainl I.MWir ( 'aliuiia 
 are .statnl with matin natiiiil aeiiiraey. ■|'lieretc.re. tin ;.ioss leeeipcs an sliowii In tlie ntti ial ivtinn.s I) iind 
 K. aie hul stiliitiil f. r till- 'I'l rritii'ialiiveiuie in the alu.vi' al'stravt. 
 
 I In ai'iiM (lance with tli- pn \ii nsni te. this snni is therefure oiiiitteil fr^ni the eninparative st.iti iiiiMit F, 
 liiltln' exaet ..UMniit leeeiMil fn in I p] er ( anaila ami l.nMer ('anada. nn an'iimt of t'linvn Lands, VS uoila 
 d Fi'ltsts, Sliile lilies. \v.. as.slmwn I'V nlHeial i. tuiiis l> ainl K. siilisiituted lu itsste.id. 
 
 .1 
 
r 
 
 1^ 
 
 STA'I'l'lMKNT nf Amtumts vcirivi'il nn unMimt of ('liiwii |„iiiil,s, tiMiii l-t Jan- 
 uarv, ISI.-J, to :i(Mli .hino, |Hli7 
 
 I'tH. 
 
 F I 
 
 * m > 
 
 YKAli 
 
 1842 
 
 IH43 
 
 1SI4 ... 
 
 1«15... 
 
 l«4ti 
 
 1«47 
 
 \MH 
 
 l«4!t 
 
 IHM . 
 
 1851 
 
 1852 
 
 185;{ 
 
 1854 .. 
 
 1855 
 
 185<i 
 
 1857 
 
 1858 
 
 18.5".) 
 
 IHCO 
 
 IHfil 
 
 I8<)L' 
 
 I8r.:i 
 
 18ti4 
 
 18(i5 
 
 IWiC. 
 
 181)7 S Vt;:u- 
 
 (A.N.M'.A KAST. 
 
 .")'.',:iv. (Vd 
 
 '.).(>: \ Hi 
 
 ltl,.s">7 ill 
 
 .VM-.'I 7H 
 
 4'.»,-Jll I" 
 
 27.8ii;i .(«•. 
 
 fl.'.UI :i7 
 
 .'i.si;', '^7 
 
 ■j;i,."i:w 1 1 
 
 7,8l'I :jo 
 
 R,5ir, ci 
 
 7,ti!»:i 88 
 
 Iti.l'.M '.n 
 
 1.!. r.i'.t h:>. 
 
 !),;i!)0 42 
 
 12.1)78 si; 
 
 i;i,.5.5;! «.'. 
 
 XiA'Xi r,-> 
 
 7H.'.)()I )iO 
 
 7:;,'.)iri i;'.) 
 
 5.5,.5S1 '.)1 
 
 7,'5,;»si (!•-' 
 
 8(i,7ll 78 
 
 87,l".57 !).^ 
 
 (H).7i!r. I'J 
 
 :47, :>.".» !'r. 
 
 !);)(i,l:{i) 'J4 
 
 I \NA1> \ VV KST. 
 
 M.dl ! W 
 
 118,42!) .T> 
 
 !)!l/.'(is 7)J 
 
 215.21)5 87 
 
 144,f.<)l :W 
 
 irJ.otiO li", 
 
 (iH.lll-'' OS 
 
 4li.2!tO 88 
 
 45,fr.S 24 
 
 ia8,:tc.ti It) 
 
 15,.VJ'.! 8.S 
 
 7(),tlK.i K) 
 
 118,0 ts .12 
 
 2:.:;,77:i 12 
 
 li;4,75'.) :it; 
 
 li;5,;ilH 74 
 
 loo.sm 10 
 
 i.j(;..5.-)7 IB 
 
 llt'.l 
 
 S.">5 
 
 15 
 
 27ii 
 
 170 
 
 10 
 
 ^.'J 
 
 ;!ir. 
 
 20 
 
 171 
 
 (121 
 
 0"J 
 
 H,t; 
 
 0*11 
 
 i;:\ 
 
 x\:i 
 
 ..".2!) 
 
 52 
 
 ]<m; 
 
 ,K>>\ 
 
 :W 
 
 18-.' 
 
 .220 
 
 i;i 
 
 :$,875 
 
 ,:i7;! 
 
 !)1 
 
 THUS H JOIIXSON, 
 
 AssiMaiit CommUiioner. 
 
76 
 
 E. 
 
 STATKMKNT of MtiKniiit icccivcil nn Mcfotint of Wood 'ii<l Kon'sts. in tlir Pro- 
 
 viiiiis 111' ( tiiiiiriii iiml (j>in'l i('s|i(.!t'tivi'ly, rrmii 1st .liuniaiy, IM:.*, to .*{Otli 
 
 JuiU!, lcS(i7, im-lllilill'T Sliilr hues. 
 
 YKAK. 
 
 1S42 
 
 i»4;< 
 
 1844 
 
 1H45 
 
 1«4(1 
 
 1H47 
 
 1.S48 
 
 184!l 
 
 1850 
 
 ia".i 
 
 1W>2 
 
 18M 
 
 1&14 
 
 i8.-)ri 
 
 185(i 
 
 1857 
 
 1858 
 
 18i5!l 
 
 18(i0 
 
 18t;i 
 
 18(12 
 
 186.'< 
 
 18fi4 
 
 wm 
 
 18(i(i 
 
 1807 
 
 Total 
 
 ONTAIMO. 
 
 * 
 
 
 rts. 
 
 1(11.(111 
 
 !t7 
 
 t;i 
 
 iii.'i 
 
 I.''. 
 
 •;:> 
 
 •XIS 
 
 •X 
 
 l\H 
 
 >'70 
 
 is 
 
 Kll 
 
 (iii'.i 
 
 71 
 
 ><" 
 
 X,l 
 
 ;i."i 
 
 (i^;.(;,>; 
 
 VI 
 
 7."> 
 
 IIHI 
 
 ■n 
 
 71 
 
 lil'.l 
 
 '.Hi 
 
 Kt; 
 
 i;,s(i 
 
 11 
 
 111 
 
 7.1'-' 
 
 li!) 
 
 lll.Sltl 
 
 It" 
 
 ni7 
 
 .Mil 
 
 L'l 
 
 \:,u 
 
 -.11 
 
 IS 
 
 ii'i 
 
 (iti;! 
 
 •I'.t 
 
 I'.l'.I.O.'i.'i 
 
 14 
 
 l.-.s 
 
 7:i'.t 
 
 Ii4 
 
 \r,r, 
 
 SCiH 
 
 •1\ 
 
 171 
 
 •-Ml 
 
 •HI 
 
 l.M 
 
 ilC) 
 
 •_".» 
 
 \s-, 
 
 Sll 
 
 .VI 
 
 •j'J.s 
 
 .MI 
 
 (Hi 
 
 Hid 
 
 •VJl 
 
 .'.(I 
 
 •-Ml 
 
 li,"ii( 
 
 10 
 
 •»•>•> 
 
 Kll 
 
 ••;! 
 
 4(i 
 
 '.'7(1 
 
 14 
 
 ;i,2H8,o;w 04 
 
 I <'tH. 
 
 "i.i.;t'.'4 o'.' 
 
 48..S(i4 17 
 
 .l'.i.:.7l II 
 
 77,7lii Hi 
 
 74.:{iil 7ti 
 
 77.7s,s (II 
 
 4!i,.V.8 .'.7 
 
 :tl..i.M h\ 
 
 iH.Vll 21 
 
 .■>."i.(ifj ."I'l 
 
 1 1 1. II I.-. ;J1 
 
 1 r.i SSL' 77 
 
 i!;!..".7'.l (18 
 
 l(i(i.,s(,7 (ir> 
 
 i2(».(i.Mi i;i 
 
 l'.MI,."i,S(l (('.I 
 
 1 17.1' i:; s".t 
 
 l.M.s:i7 4ri 
 
 I'.Mi.sio |:i 
 
 il.t.isi (I.'. 
 
 17 I. ■-'(I! I (i.''! 
 
 •.'li;.4.i;t Hi 
 
 l4l.7:!(i :« 
 
 l>.Hi.'.i7(i :12 
 
 Hi7,7:i7 ir> 
 
 ii7,(i(Kt (i(i 
 
 ;».(Mi:i,2(il 21 
 
 ■I'O'IAI, 
 
 i:tH. 
 
 !t» 
 (12 
 M 
 !I4 
 47 
 
 ii::.2(i7 
 l(i:i,.M2 
 M(i.*>l(i 
 17:i.:;7l 
 l(i.\i.i'.i 
 
 liM/ji:. (i'.t 
 
 lti.'i.2''7 78 
 
 M'.i.iiir 17 
 
 141,7-'s (iC 
 
 22tl."i7H (10 
 
 2(14.77(1 8-1 
 
 2lll.l4;{ H2 
 
 ;u 1.1(18 2;t 
 
 242.:tltl 112 
 
 .:.s!t.(i:t;i 2:« 
 
 .Mir>,ns.s .v{ 
 
 ,ni(i,7(i"> <i(i 
 
 :»«i2.(M2 o;t 
 
 ;«Hi.,s-.;!» ;»4 
 
 :t(i(i.(i2i i'.> 
 
 4li.;i|l 2*2 
 
 :i(i-_', 2(1(1 82 
 
 4(12.(12(1 42 
 
 .I'.Hl.UiS (i8 
 
 li;i,S7!l 80 
 
 0,291,2114 25 
 
 ThOS. II -lOllNSoN, 
 
 A !<^ixtntil ( 'din in inKiouer. 
 
 ' 
 
 ■ 
 
77 
 
 I'ro- 
 
 ;i()tii 
 
 COMI'AIiA'riN'K Stiil< iiM'tit i,\' the ('(iii(ii'iutii.ii> tu il iiliii;u\ (mii.c'i 
 
 KfVfiiiii' 111' tlif hitc l'rii\ iiicc <il ('!m;i(lii, 1>\ I |>|M'r ( '!iii;i(|ii ;iiii| Luwer 
 Ciinad:!, t'lmii tlif riiinn mi the |()tli u\' KcIhiimiv. ISH l.. ( 'niilidrijititiii 
 (111 the 1st nf ,ll||\ |S(i7. 
 
 Alwtriii't A. 
 
 LV> III 111' -iiliiliviiK'd; 
 
 t'UHtoruH ilutiiM iiillrctiil 111 Mmitri'al, C^iiclni- uiiil 
 
 I 
 
 St. Jdlin's ><.V.,s.VJ.t;i7 !>0 
 
 r«*ii,il ii'Minii' ... ti.'i.'.i.V.) Ml! 
 
 Bill Htaiiii.- .Ill . . . •.".M»,:ifi<i ;«•> 
 
 iS ftK. 
 
 .T.t, jiki.'J'.m; :ii 
 
 I>ivi<liil i'(iii.i.ll\- 
 
 SG.-.'O!!. I'.t" OH 
 
 # <t«. 
 
 L's.mt.'.'.is r.i I 2«.i(W,.vjK r,4 
 
 I 
 
 Bec<'i(il> fi'iiii Ci'iiwii Lamts, per 1 )o|>nrttiii:ritaI IJi'tuni Stati'tm-tit l>. . . ;i,.H7ri,.'17;! 'M '.i.l<;.I.!() li-l 
 
 Rowilils ffiiiii \\("ii|rt iiiid Kiiri'Kts. iiiiluiliiii.' sUdf ilms. Ac. |iit Di' 
 
 piirtiiitiiuu Kctiini stiiU'iiient K j ;i,'.'.ss,o;!;; (It ;!,(xi:!,L'(;i 21 
 
 7l.7i.r.:i'i! h;( ;tr.,8.'.0,2'l.". Xt 
 
 COMI'AKATIVK StJitcnu'iit of (lie .udiimiy Kx|ii'ii<!ituiv of tin' Intc PinxiiHc <.f 
 Ciiiiiitlii iiiHiii local (ilijfct.s ill l'|ij»''" Cfiiiaija ami i.uwrr Caiiaila, finiii the 
 I'liinii ill iNl-i tu ( 'itiircliiatjiiii nil llu' 1st iit'.lulv, In'!". 
 
 I'lipir Cunaila. ] Lowit Canada. 
 
 S ots. 
 
 Per Alwtrac't H. 
 
 i? ct*. 
 
 l(;.;i(;.-..:!;is 7:i l!t..!17,'.t;« »i» 
 
 licforc finally Icaviiiy tlic (niostion of the award, iicniiit nic to ,sav tli.ii 1 tliiiik it iiii^ht 
 be well for the arhitrators (iciiiiitcly t(i as.si<;ii to cadi l'in\ iiicc the siic. uil or tiu.st liimlrt 
 
 bclurij^nnji; to ciwli 
 
 Altli'Mii/li I (III not conccivi' this to he ahsnliitdy ncccssury, .still, a.s that imiiit lia.s 
 been muottcf, .imi ;i.s there may he a doubt in some miiid-s (there i»* none in mine), 1 would 
 
7H 
 
 «H,li,l(i'st lln- |ih'[inr|y III' |iiiiliii,L: I 111- 111 itliT at i'i-*t li\ I' iiiiially uiviiij^ to cacii I'luviiitP 
 lliat wliii'li is alicily il^ uuii. iiaimly, it> -|MTial ni- tiii-t fiiinl.. 
 
 It lii'iii^ six iirlmlv tlir a il»il latm > ailimii in'il. tn iiir<l nn Mnihia}, at I '.' nVlnijix, for 
 ili'liiit-ratiiiii. 
 
 M'-NhW, -J'.Mli .\ii;.'ii-'t, IS7(). 
 
 Tlif afltitratiirs iiirt |iiii-iiaiit i" ailjoiirminnt. aini afici suiin' liiiM' >|H'iit in ilfiihoni- 
 tidii, llii'V aiiiiiimi' -.1 III Ml. Wiiiiii that, iimlii- all tin' (•ii'iMiin>laMcis tlirv vviTr imt dis- 
 posi-il ti'i'iitritaiiiainl iiii'lii«lriiiilii' \| iiui'i|ial Ijnaii l''iiii>l ihilciiiiiityai'iniiiiittii ! '|i|ii'i ( 'aiiaila 
 tile I \V(i items ■" I'li/utal <'/ JimhIs /■^sliilis, Sii/i. Ktl. /.. ''.,.*'.'■_', "i.sri.S."., ' ami ••.hn'ouil nf 
 Ciiliifiil Iff til' Si'iitiiiiirn ^ iif SI. Siiljiii'i. rhinii'l In llir A. t'. Muni' ijnililn > I'ltii'l, .*!'.•(>,- 
 7ll*.fiii." It v\a>. at < 'iiiirriJiTatiMii in iii:il;iii.,' ii|i llic Siii;Miniial ai ri iiiiits, liotli in 
 justice alul ai lunliiiji in tile Statute, w lieil tlie'e two items wele aiMeil to tlie eapital of 
 tile S.'i;..'liiitlie».allJ lliailea ]iermaili'llt ami lllliiil|(lilii>liale|iaruenli the ( 'ollMili.laleil lie\ eliue 
 Flliul. tint a iMire~|ni|| lil-ej,- amiMlllI >Hl:illl In ll,l\ e lierll eariie I to the elejit nrtin' rplM'T 
 Caiuela .Mui->iei|iai I, nan l'"iiiiil iiuieiiiniiy aniiiiiit. At all eveiiN tiiere ran he iin ihniht 
 
 that thi> shniijil li.ive heenihiiie as M'sj t<t hi' iiem^r.Mi, 7 1 '.'.'■>• i. The III hi r item a I mils i>f 
 
 arjjllinelit. Ihll a-> this ehall.lXe wmilil lleeeSNJIate I I'evisiiill of the \vl|i>le aeeiilliit as it 
 .staniN ill tile I'liiN iin-ial hiiii|<s. aii-l wmilil in theeinl. a- ha- lieeii >hi)\\ n l>\ lie' amlitur. inakt! 
 lull, a >uiall aiiiiii.il -iiai in lav hi r ni' < hilai in. thr arhitr.itnr^ a,e nf n|iiiiiiiM i h.il it is iii- 
 
 ail\ i.-ahle In 111, ike ihr [cX i-<|nll ailll Correilinll |i|n|>nsrij \,\ Ml. Wnnd,' 
 
 As III lie ia|iital nt' the Ineal >i mrees nf re\e||l|e, miller the .\el nt' Is.'il. alilnllllt ill;^ 
 to j^s:', I. 1 I I III, ami I he (lilVerellee in till' i'>lim;lte(l an'lartllal r<'Cei|i's fnuil llieJie leVenilCS 
 
 frniii |s'"il tn I^i'm. the ailiit i.i! ni ■; ,irc nf n|iiiiinii that ill sirilt jn-i;i'e. ami aeenrilin;^ to 
 (he nlivinus iiie.iiiim; nt' tile Sl.iiiiie. in iiiakiii': up ihe .iieniinls at ( 'niireileratinii a, sum 
 
 ei|Ual til these two ili",iis sl|nil|ilha\e lir 'li e irrie I In t he eleilit n\' I he I'lijier Ciuaila 
 
 •• Hi/i(ir.il, III," aiiij heme tn the l'|i]M'r ( 'aii.i'la l>uilili!i:i l^'iiinl. a^ |irn\-ii|e 1 l>\ the eNjtres.s 
 term- >i\' til-' All. ihil til It w.i- lint iluiii' ; aii'l it imu lemiiin- Inr the ai'iitralms ,so to 
 
 treat lllese twn items a- In i|n jlHliee helWeell tile |iarliis. ill sn t'ai' a- lliey e.lll without 
 
 distrrhiuj: the Seii;iiinrial ,'ei'niiiits as tliev staiul in the I'rnviiieial hunks. Altlmunh it 
 Mill liy no m\iisi;i\-e I'lip'r \ 'ana la wli it it iseiitiileil In iiinler the Statute, fnr it is 
 
 elltilh 1. a- his lieell s||ii« ii. tn ha\e I hi' -11111 of lllese I Wn items rai'lieil ilireiif to tilt! 
 
 t-reilit of the •• A'y((/n//c///" In I 'iiiiii- ( 'aiiula. yet as it will atronl a p.irlial ei|iiiviil('Tit, 
 umler all llie eiri'iiiih.l ime- the uiliitialms are of npiiiinii that tlii-e twn item- -hniiM bo 
 
 illellhieil ill ihi- deh:- iji'ilc 1 fnr |nc|l plllji i-es i|| (/lli'l ' 
 
 The aihiiril'ii - I hen ieipiestei| Ajr, Wool I to fe vi.se ,in>l ham! in ihiiii statements of the 
 debts iiealeil for jm al piirpn-i's in (bifaiio aini in (.^ueliee re.spi'clively ; also siateiiieiit.s t)f 
 US.sets tn be MS'inil" 1 !o ei| l( I'livillee. h .iIhd st.ltellient- nf sp"cill or tru.st flUllis 
 lU'lnMuilljK' lo e.iili I'lnv inn'. 
 
 The Cniirl nt' .\ ihil I at iiili ailinUlliiil In Tlle.silay, to lie'.'! .It I L' oilnek. 
 
 Tl'l>I^\^. ■'!iih Aiij/iisf, lf70. 
 
 The .irliitraini - met pursii.iiil In iiiljniiinm.nt. when Mr. Wnml laiil hefuro the 
 arbitiatni- lln Inllnuinjr stateineiil.s : 
 
 l»Ki'.rs ii!i;Aii;t) ini! LmAi. I'riijM.sKs in Qir.itr.c. iniiiMiNn I'.aiit dk 
 
 IIIK iMllir 111' TMK l..\TI'. rmiVINi'K DV (;aN.AIi.\. 
 
 1. Ji/liiirr Cniiii Umisr, i.'i.r luroiil Drlifiiluri'^ i§2,n()0 00 
 
 y/ ijlnwr Courl JImm- Arri/iinl ( 'mo lU . . , , ^ 1 ,2.'jy 70 
 
 $:},239 70 
 
7!l 
 
 • mi cc 
 
 ;k, for 
 
 10. 
 
 |iil)(!ra- 
 
 n\ ilis- 
 .UI.'kI.-I 
 
 null of 
 
 .*i'.jr),- 
 
 >i)i in 
 
 |i|l,ll of 
 MIlUt! 
 
 ■|i|)rr 
 
 .l.lll.t 
 
 lilts I if 
 
 , iiiakt! 
 is ill- 
 
 Ill I'. A.. lKti7. |i. \L " liiiliiv.t hclit," Asylniii I »<'tM'iitiii<' Aicniint 
 is [iiii (|(i\Mi ;il .*'J1.'I7I '.''.'. nt wliiiji .*|',i,(;7) '.'" .Ill' li-lit |i(i ciiit, 
 ami arc iml (i.liintiiic-. nt thr I'mx iiMi'. jiini toi wliiili lln I'lnvin.i i^ imt 
 
 lilllllf, r\ii|il tu.M'i' til ihr illlr il|i|i||i illiiili nl t llf llliilli'\ ^ ;ir|ll:i ||\ lini Vi'il l>y 
 
 or ill till' tics nil the ciciiii lit wliii li liii'v unc i.N-iiril. Hut lit till ;^i.'l,tl7 1 '.t7, 
 ^fl'.diHi (1(1 !ii(' I'liivim-ial ili'liiiitiiirs. Mill till' latr rin\iiiii' !ia\ iiiir as-iiiiii'il 
 their i ayiiiriit.AyliiiiiC 'mi it ll(iiisi'ii\V('>ilii> aiiiniiiit tntlitlaii' \'\i>\ imr, ami 
 it is llit'i'i'l'ui't' an a»i't lu that aiiniiiiit. Thi'ii- is alx) ar Mirmiiit iiiiirtit of 
 $1. .:('.( 7(*, hfiii;.!; iimiu'V aiKaini il lnr an.'ars of iiitri'i'-'t mi thrsi' ilrlim 
 tiircs, Tiir this List ittiii sir I', A.. |S('.7, y. .\, iimli'i •• Ui-iiJLi 
 ii' mis Aii'mmts,' ami as tn Imth ii< nis si'c Mr. Laii^iliin's .Statriiniii nf 
 Assets liiiiiisheil the ai hit latms. The rruvimia! ih'lii'iitiiir> \vi ir i»iii'i| 
 ijiuler 1 *< Nil', c. It'ij. .•iiii| tin' li^ht [ler ti'in (liliiiitiues iimlii I L' \'ic. i. 
 ll'-'. .Ml l.iiipluii's .Stati iiinit n\' ,\-.>i't.> No. -J. 
 
 'J. Mulllrnll r,,>(l-l //nil.-,, /I, 1; I, I II 11' . I' 
 
 Hint 
 
 lllllil C".'.!.!! 
 
 >!".l,"i.iWin (III 
 
 Mdlllliill C'lilii IhiilM , J r, nil III I 'ill ir lit !■"<, '.»'.!< 
 
 hee 
 
 Til 
 
 I'. A.. isi;7. |.. I, 
 
 Imlilert Di'lit." I'm ilrlnlltllli 
 
 ese are l i'ii\ iiicial di 
 
 lii'iit 
 
 uiv- ,'i.--iiiin il liv the I'll'. I 
 
 iiie, ami 
 
 the 
 1 iiii 
 
 Court IliiiMe uwes this aiumiiit ii. tlir laif rruviiire, ami tlii'iefm-r it i^ 
 asset. l'"m' the aeemiiit riiinii' -rr 1'. A., I><i'i7. |i. .'' iiinlcr " Misci'll.im- 
 OILS Aceimutw," Jjlf^.'.''."! -1. I liis i> an .iih.im r li\ I'lr l.ili' l'rii\iiiri' ti 
 the Mmitiral Criiit llmisi'. ami is a ih'ht nv\ inn ''V i' '" th"' latr I'mvinee 
 
 II l,.^'.in 21 
 
 ami iheii'l.iie an asst 
 
 t. Ml. Laiiiitmi's Statdmnt if Assets. Ni 
 
 \\. KiitiKiiini.'Lii I'lii/il I lull 'f, .IcKiiiiit ('mil III. 
 
 See I'. A., lS(;7,]i. ll, •'Imliiiii i'elit." .Ml ili'liriitiiii s issni'd mi ne- 
 COIltlt of this Cmilt llmise were eij;ht |irr nllt, .lliil the i'lovillci' is iKit 
 liahle for tiniii. eX(e|it to see that the iiimiey rnliiitiil in law tiis. Ac., 
 
 IS (Inly a[i|ilie( 
 
 I. iiiii thi' r 
 
 luviiiec aihaiiiiil .'I siiialj siini mi anoiinf, 
 
 which iiiaKc- till' .icconiit riiinnt, iiaiiielv, ir". 
 
 :nl 
 
 r. A., im; 
 
 nil 
 
 iler " Miscillam'oiis Account.- 
 
 am 
 
 I .Mr 1, 
 
 r 
 
 ;(. 
 
 ;ili"tmi s Slatnii 
 
 ■111 of AvmIs 
 
 No. 8. 
 
 •201 
 
 ■ 
 
 4. H'll/nl lll.-^tihllinii ( ]lr(;iil r,,//,;/,). 
 
 See !'. A., If^d 
 
 'i. iiinier '• .MiscellaiMoiis .Aci oiiiit- 
 
 lee also 
 
 Mr. Laiiutmi's statement of Assets, liirtiisliiil the aihitiatois. No. l;», 
 
 5. ('(iiisii'iilii/.i/. Miniitijiitl Liiiiii I'liiiil, Liuri r CiiKh/ii 
 
 ( 'aiiilal Jiiiiiiiii !?lM L'' 
 
 Ar.s.s Siii/:iiii/ i'liiiil, 
 
 |U 00 
 
 I7l.i:ij ?<•; 
 
 90 00 
 
 2,ir,(-,,f,87 H 
 
 C()ni"iliiliil"/ Milliirifinl Lniiii I'll ml. Inliir^l .liiinliil 78l.',7-l2 8.3 
 
 See, /'.A., IS<;7. ]). .'i iimler •• .Misccllaiiemi.s Acemififs." ami ]iar- 
 tienlaiiy .see Mr. I.aiii^loii's Slateiiieiit of A.s.sits, furioshed the ;iil»i- 
 ratora, No. i(i. 
 
 6. Ldil'fr (''iiniilii Lmhliitin llninl 
 
 An advance iiiadi' to Lower < 'anad.i rdiicatinii. A delit I'roiii cilii/'fi- 
 tion (o the F'loviiice, and imliid") in (he delit of the lale I'lovime See 
 P. A., \!^^'u , p. ;}, uiidi'i' " .Vlisi e|) (ii'oiis Accounts.'' See also Mr (..iii;.';- 
 ton'ti Statement of A.ssets, N'u. It*. 
 
 :VS,194 7.'i 
 
so 
 
 7. (Jilrliir /'ill Liilii 
 
 Sri' I'. A. I^il", |i 't. iiimI'T '• Miftcflhmruiis AccoiiuU ;" aUn, 
 Mr. I,aii.i.'tiiii'> Si.iiriii>!il iil'iisM'ts, Nu. "jn. 
 
 S. I'liiii-irDiiillii .lilriinn .■Irrmiiif 
 
 2ni.-jr)t G6 
 
 :;,()()( I {){) 
 
 Sec I'. A.. Isil.'i, p. .'i, iiimI.'i- •Mixi'lliiiH'.iii^ A' '"lints ;" a\->. Mr. 
 
 Lilll^itnll'.H Stiltcllli'lll cif .■|-.-.ct>, No. Jl. 
 
 It. HJilr.ifl,,,,. i:,l^t 121)(J 10 
 
 Si( !'. A.. I><'i7. |i. ;5, iiinlir •• Mi^rfllaiifoiis Acimiits ;" alxi. Mr. 
 Liiii;;li'ii's Stiitiiiii'iit lit" iiN.-^i't.'>, No. •J.'l. 
 
 In, Jiiiililiiii/ III"/ ■I'lni Fiiii'l. 1,11 I I'liiniilii lI'l.lTri 51 11^ 
 
 Sec I', A.. Im'm. i>. ."l, miller ■' Misirlhiifnirs Arfuniits ;" also, Mr. 
 Laiiu'ton'.s Stutrm.'iit III' a.-i.M'ts. Nn. 21,1'uii. Stat. I-, «.'., c Id'.', mt. 1.^», 
 •j:( Vic. !■. I'm. 
 
 I 
 II. Miuiirlpii/lflis I'.iii'l. I.nii-ir CiniKihi 4^1,244. *^3 
 
 Si'f r. .\,. |Mi7. p. ;',, iiiiilrr ••'IVii-i I'mul-." Sir .ilsn, .\|r. 
 
 Ijail,trtiill'> Slatrlni'Ml nl' .AsM't-. Nn. 1*."). ,Sri' IJitinil til lllr lliill.si' nf 
 
 ( 'iiiMinmi^, '.ilii .liiin'. isil'.i, I'lititiili'il " A .Sl.ili'iiu'iit .>lii)\viii- tin' aiiiniiiit 
 lor « liicli ilir l.ilr riM\iiur <ir<'aiiaila lu'raim' lialilr nii arriumt nl tin- 
 M'iliiii|'tii'U 111' till' Sii^ijurial Triiiiir. aiKJ nl' tlir ainniiiits wliirli I'mii r Ciii- 
 aila ami llir tnuii-liiji- M'|iarati'ly rrri'i\'i'il a iiiiii|irii>aliiiM." it will in- liiiiinl 
 ''ill till' Si'.s.siiiiial l'.i|ii'r- uf lS(i'J, llmi>i' nl' ( 'diiiiiihiis l'a|Mi ill. Sn- 
 
 is Vir. r. •_>. 
 
 
 111. Loiri r I'liiiii'lii >'ii/ii ri'ir Kihii'iili'iii Iin'i'iiir /•'tiiiil !i?li.'Ui.(*iS| |ii 
 
 Jntirisl on lliiiiiillnii ilihi ittiina ."JjiOO 00 
 
 ti:)|.:]Sl 40 
 
 .*^i'c !'. .\.. I>il7. p. :'>. iiinlrr •• Tni't Finn!-." Scr.iN •. Mr. Laiijxtun'.-, 
 
 StatfliU'llt 1)1' .\.>s('t.>, Nu. •JC, till' iiil|.|i>t nil ill\f>tlllrl(t .-''.). I'lOO 
 
 l.'i. Siiilimriiil I'liml nf jS.'i I, A- ., ,/ ,.,/ Turin/ l.iniisrs ^■'^•"il.lll lO 
 
 i I. Siiiliinriill I'lliiil i,f lS."il, cltiio/iii mi ( iiiisn/iilillt il 
 
 Iti'i-niiii I'll ml '. r.( 10,(1(10 00 
 
 i,i;m,im 40 
 
 (\?>.) Si'c lil'tliril til Iliill.si' iif" r'liinllKUH Illrlltinlli'il ill N n. I 1 ; al-ii, 
 
 Act Is Vice. :(, .^ee. IS. At Ciinrrdeial iiiii the -iie. ial fuml I'aileil allu- 
 yetlier. Ill' ralliei l.nwir ('aiuula ^nt- liack tlie smirce ^A riNeinie wliicli 
 jirudueed tile riiml. anil llii.s capital i.< cliar,L;ei| in tlie ilelit nl' the l.iie I'ru- 
 \ iiice. 'i'liefet'oie it i, cliaii;eil 111 the local ilelils nl' Lower Canada. 
 
 (II.) The same ict'ereiife.s a.s in 115. 
 
 1.'). liiii/iinriiil Fmiil, sliort piiiil In 1S(;7 
 
 80,201 00 
 
 The .,pe,ial file.,! fell .-ilmrt oil an a\-era:,'e, rrnm IS.ll to 1st July, 
 1807, anr.iially of I l.-'V.i.") ."tO, which, with interest hall' yearly, would. I'roiii 
 18r)4 to l.'<()7. aiii' .lilt to !?80,20l. Thi.s, uiidor the latter part of wotion 
 18, 18 Vic, c 6. is a proper charjrc in the liocal deht.s of lower Canada. 
 
 m 
 
2(JJ,iir»4 06 
 
 :j,()0() 00 
 
 'J'J(J 10 
 
 iH'i.iTr, 01 
 
 l.si,J.U 33 
 
 'jni.-'Si dfi 
 
 i;u,ni 40 
 
 80,201 00 
 
 V 
 
 i I 
 
 HI 
 
 10. (%iii}rn i>n('imsi>i,<lnl>il liivniH'' Fni,>l iimin- Sriijiiioiiiil .lit J \f<M,nii 
 uuiii-r :— 
 
 ('„/nh,l nf (.'rliipil S>i<Jiil<>llfs *2,77tv>HO M) 
 
 .t'l'lS,iiiith>ri,:i ''fSt. Snlph,- *;»:m,7ll» 'Xi 
 
 A. w fhiiri)ii/ III! I'oniiiliiliitnl liii'iuuf 
 
 l-'miil, until Mtnii'iiiiililii'* ( L ''J 
 
 /•W n.,l,l ,.,,,... •'•"•'..••'•' '>•■' l«"-'»"'^ <»" 
 
 ^/*/(/ /..'/'•*/• i'iiiKulii Sii/iiri'ir I'.ilnniliim .hsniLi 
 
 hdnlis • "' 
 
 ijia,()(».s,y(iJ r,.» 
 17. b:<^ linhnr, i;„.K l^:.l J^ll^ •l^^\\^^^'i 22 
 
 IS. I„il,,iniili/ I'l TitiniJiijht. h>wir Utiioh ....... ^ (.')(.,i 10 00 
 
 (Iti.) S.-.' 1'. A.. I-'IT. I'Mit 2. p '.il ; ^'■' Ml i.:iii.ui"u > .Ail.itialioii, 
 p. 2 ; s.'i- al.Ht) 22 Vi-'. >• 1 I. ' ■ l''^. sul»-wc. li. laitn part. 
 
 (17.) S.'i' W A., 1S(;7. ii.nt •-'. 1' '.Il . -<r .Ml. Liin','t(m'a Ar'...tiiilinn, 
 p. 2. Src 1> Vic, C. ^^, .M'. is ; L'2 \ i.v '■• l*'..>fr, 7, . 
 
 (is) S.r p. A.. isiM. pall 2, p. lU ; «••<• Ml'. I.ivii^'tuii'.s Ail)itmt.ion, 
 
 p. 2 i -c. 22, Vir. .... IS. s.-.-. 21. e,,77s.7i,2 ;.5 
 
 DiaVI .llK-VrKI. lou i.mAI. I^nil-nsKs IN OnT.M!!... H.inilN.) l-AKT or 
 
 nil, in.i'.T <'i- i.\ii; lM!ii\ iMK (.r cwAiiA. 
 
 1. T/'/"/- ''"/""/■' /''""''/'■",'/ /•'"'"''• I>i>"iii"" . I <''■"» I'i ■■ 
 
 ,11 . !=;ir>.2(i() on 
 
 ,. > .. i I . ,,. i;. 1111(1 [H) 
 
 ADillitii >ih'>in 
 
 r , I ; l.'>.t;ilO (ID 
 
 Lmi'ili' .l>ijl'iiii 
 
 j^,. ]. ^ i.^i;; ,, 11 •• linliivct Pcl>t." h.'iiii: l'n)vi!irialil<'l>''n- 
 tnroH is.M,...l uiia.r '..' Vu. V. r.l; \1 Vu: <■. :!l. Miid I ."- A' U Vir 
 c •' an.l'IS. ,,„ tl,.. iiv.lit nf iIm' Ippn ( ' ma.la ili.iMin.u hiii.l. an.l tl,. luy 
 m.Mil tli.T-,,ra»m,i-l I.v Ihr l>...niiii.m.ai.,l .•l.ai-v,l in tlir .l.ht nt t i. af 
 rruvin.c ..f Caii.uia. ;..mI ll,- ain-uiit tin iv.,i' hrcouics a d.l.t tlniu II..' I ].- 
 pur I'liiiaila liiiiKlin- Fuinl, ami li-'U.v an asset. 
 
 2. /.«/'• NWW.v of I'ppn- Cnmh JUmhnr An.,uut SK..O00 00 
 
 Law Sodi'tii of I )rr <-'""«'^" ^^''^''^'^'"''^ ^■''•'- ' '">"'''"'■ ' 1 '""'"''' • 
 
 S.v V \ l.^i'w 1' 1'- '""•'■'■ '"•■"1'".- '•Iii'li'-''' "'■'''•" J'"' 
 
 l..-i.lm.^ "iMiscollaiio.u.s .V.' v.uiits, ' itfiii — Law ^".•l.•t\ 1 ppn ( aii- 
 ai; "^10,015 Gl. Til. a..l...n„nvs wore i.ss.H..l bv tl. 1 n.vin.-. un- 
 5.;'9Vi..V. :5,on tlH. .■iv.li- ..f tlu. LawSo.....ty.,t Iil-r^ai.a.a. and 
 have been a...uiued l.y iho Duiiuiauii, and charged ... th.: d...bt ..1 tie late 
 
 .*.".f;,800 00 
 
 l,'j<l,01.5 01 
 
 I 
 
IMAGE EVALUATION 
 TEST TARGET (MT-3) 
 
 1.0 
 
 I.; 
 
 1.25 
 
 m 11^ i^ 
 m '""^ 
 
 ii° mil 2.0 
 
 III™ 
 
 1.4 ill 1.6 
 
 P>^ 
 
 <^ 
 
 /2 
 
 '<^. 
 
 ^^W 
 
 e". 
 
 e). 
 
 ^» 
 
 
 
 M 
 
 Photographic 
 
 Sciences 
 Corporation 
 
 fV 
 
 d 
 
 ,v 
 
 % 
 
 V 
 
 
 <> 
 
 
 
 v 
 
 ^«^ 
 
 ri> 
 
 <i? 
 
 23 WEST MAIN STREET 
 
 WEBSTER, N.Y. 14580 
 
 (716) 872-4503 
 
K 
 
 ^y' 
 
 L<? 
 
 ''^ .. % 
 
 &?/ 
 
1'^ 
 
 
 82 
 
 Province. luid llu'ici'itic tlic Tj.'uv Sucicty owes this ani(Uiiit to the laic Pio- 
 viiicc. ami tlif aimiuiit tlirrcnf liccoiiics mi asset. Tlic. " Account 
 Current ' is for loans au'l ailvaiices uiade hytlic late Province, to 
 and on the credit of the Law Society ol' rpper Canada, i.nd tlicreby to 
 tliat amount in'i'eased tln' delii, of the I 'ro\ ince, ami as tiie Law Society 
 owes tlie auK ant 'o the i'ro\iuce, it alsn liecouies an asset. 
 
 .'5. T/ic ('imsiilii/afri/ .]finiici/i'il L'Kiit Fund 
 
 of ('jj/in- Cui'iilii .S7,.")()i !.()( Id 00 
 
 lAxsal crcilit uf Siiihimi Fi,n</ 4-29,5 IS C,.'} 
 
 (i.s7n,.ir)i ;',7 
 
 Less cdjiilii./ nf Sciijiiiiiriitl Inihinaiiji Arriniiit, 
 aufdlliiirs : 
 
 Cipih/ of dnivi-aJ ^dtjn<)rv:< 2,77(;,380 3r. 
 
 Seignaries <{/ .SV, S"lpicr....S''>'-^^K'i \ '■' ^i'i 
 
 Less char (jed 1,(1 MunUijial- 
 itin Fund, L. Canada. . . 1 1)0,7 1 '.) GO 1 40,000 00 
 
 2,9i(;,:}80 :!n 
 
 Lena— Balance of fund; 1854 097, S24 97 
 
 2.'2 18,555 39 
 
 Inte.re.d on ah(W. Municipal L()(i7< Fund Capital 3,517,084 20 
 
 Less Ink"i\'.4 on, Capilal of ludnn/niti/ acanuit 1 ,370,843 85 
 
 >oan 
 
 Fund. This, it wil 
 
 )liserveil. has lieenilone. lea\ Iult 8 1.051,895.98 
 
 balance of capital, and 82, 140.240 41 balance of interest, making a 
 
 total 
 
 aniountof h>caldel)t ofi?0,792.13()..')9,and con,scf|ucntly acorrespontlingassct. 
 Injustice is done to I'lipi^i' Canada in these tiynr-es, in reirard to two sums, 
 namely. Seit;-niories of ,St. Sulpice, and Jesuits I'Ntates- Sujierior Kducatioii. 
 in respect of the former, I 'pper Canada has indemnity foi- oidy .•?140,00(), 
 
 while, as a maltei' of fact, thi 
 
 lie 83:)tl.71i) till has heen i)ermanen 
 
 chariied ;ii:ai'ist sheConsolidated licxcnue Fund.andal 
 
 :.fth 
 
 ite V 
 
 ro\ini'c of ( ';in ula, as 
 
 tly 
 aiged in the debt. 
 as the .892.58:; S:! .Jesuit.s' K.states 
 
 carried to tlu; credit of Superior Education. Lower Canatla. Sec Sessional 
 Papers, 18Gy--l'a[)er No. 04. 
 
 4,051,895 98 
 
 For the capital of this fund and Si.ikin^ Fund, and the arrears of 
 the interest on the capital — Sec 1*. A., 1^07, pp. 2 aiul 3, under heading 
 " Miscoll.'xneous Accounts." 'I'he Seigniorial Act of 1859, provided that a 
 payment ei|ual to six per cent per aniuim, on the capital of the Seig- 
 niories, should be made iialf-yeaily. on tlu^ first days of .lanuaiy and July in 
 each year, and that a like sum should be earned to the creilit o^' the iMuni- 
 cipal Loan Fuiul. (J. C, for such payments made over and above the capital 
 of th( fund of 1854. The capital of the general Si'igniories, according to 
 the Public Accounts, 1807. Pai't II. p. 91. over and above the fund of 1854: 
 is §2,218,555 39. 
 
 On the 30th June, 1.S07. the e(piivalent of the half-yearly paymentsmacle 
 to the Seigniors on this capit.il, amounts, wiJi interest thereon at six per 
 cent with half-yearly rests, to the sum of 81.370.843.85. 
 
 Confe(hMation put an etui to the e(|uivalent payments, as the Municipal 
 Loan Fiuidsin rpperCauiulaandLowerCanaihi weregivenup to the Proviticcs 
 of Ontario and (^>uebec conjointly. In ascertaining how tliis fund staiuls in 
 relatioti to Lov.-er Canada, it becomes necessary to deduct the ca]iital of the 
 mdemiiityaccoutil from thecajjitalof the Municipal Loati Fuid.aiul tlui sum of 
 the interest on the capitalof the indemnityaccount, cotnjuitedas 1 have men- 
 tioned, fnun the ;uin of the arrears of interest on the capital of tiie Municipal 
 
 2,140,240 41 
 
 WBHa^ 
 
i 
 
 )5 98 
 
 10 41 
 
 

8d 
 
 The capital of the indemnity account, according to the Statute, sliould 
 have been $2,507,858 88, as follows : 
 
 By rublic Accoants $2,218,555 39 
 
 Amount charged against Lower Canada Municipalities Fund 
 but interest toV)e paidout of Consolidated Kevenue Fund, till 
 the former Fund could cover it. It wUl never bealdetopay 
 it, and hence it is permanently charged on Consolidated li<;v- 
 enue Fund, and in the debt of the late Province 196,719 6G 
 
 Amount of capital of Jesuits Estates carried to the credit of 
 
 Superior Education, Lower Canada 92,583 83 
 
 2,507,858 88 
 
 4. Agricultural Socieii/ of Upjjer Canada 4,000 00 
 
 This was a loan by the late Province to the Agricultural Society of 
 Upper Canada, and is a debt from the Society to the late Province, and 
 therefore an asset. Sec P. A., 18G7, page 3, under heading "Miscel- 
 laneous Accounts." 
 
 5. University Permanent Fund 
 
 This item arose in this way. The Government of the late Province, 
 through the Commissioner of Public Works, ordered a ditch to be made on 
 the University < ! rounds without authority. It was objected to by the 
 University autliorities, and stopped, and I believe Avas filled up. This is 
 for that expenditure. It was charged against the University improperly, 
 and is repudiated by the University. It does not appear in the puldi.siied 
 I'ublic Accounts of 18G7, but will be found in those of 18G5, from which 
 schedule 4 to P. N. A. Act was taken ; per P. A., 18G5, p. 5, under heading 
 " Miscellaneous Accounts.' Nevertheless, it being found in tlu' said sche- 
 dule, it is included in the expenditure for local purposes in Upper Canada, 
 whereby the delit of the late Province was increased by this amount. 
 
 C. Eqidvalmtio Upper Canada mi^i^v ^iAga\o\'i&\ A.<:,i,\Qf)i $600,000 00 
 7. Indemnity du 1859 2,218,555 39 
 
 1,220 63 
 
 2,818,555 39 
 
 For explanation of item A''(>. G, see 18 V. c. 3, sees. 17, 18, 19. Itforms 
 part of the item, '"Buihling Fund UpperCanada," P. A., 18G7,part2, p. 2, un- 
 der headuig " Trust Funds." See, also. Statement No. 2, P. A. 18GG ; also 
 Statement 23, P. A. 18G7, part 3, p. IG. 
 
 For explanation of item No, 7, reference is made to the observations 
 under item No. 3. 
 
 $9,808,728 02 
 
 Assets to be Assigned to Ontario. 
 
 Debt from the Upper Canada Building Fund $ 36, 800 CO 
 
 Do from the Law Society, U. C 156,015 61 
 
 Do from the Con. Mun. Loan Fund, U. C 6,792, 1 36 39 
 
 Do from the Agricultural Society, U. C 4,000 00 
 
 Do University Permanent Fund 1,220 63 
 
 $6,990,172 63 
 
84 
 
 i| 
 
 ASSKTS TO HE ASSKiNED TO QUEBEU. 
 
 lk'])l from Ayliiier Court Houses ^ 3 239 70 
 
 Do from Montreal Coiiit llouse lll'sBfi 21 
 
 Do f'niin the Kiimoiiriiska Court House 'ooi 27 
 
 Do from the lioyal Institution (otherwise McGiJl College) 7,7'JO 00 
 
 Do Municipal Loan Fund, L. C 2 \)'M) i'2^ 97 
 
 Do Superior Educv.tion, L. C. (Legislative Grant) ' 28^494 73 
 
 Do Quebec Fire Loan 204'2r)4- 05 
 
 Do Temiscouata Advance Account 3000 00 
 
 Do Education (East) '290 10 
 
 Do Building and Jury Fund, L. C 110,475 51 
 
 Do Municipalities Fund, L. C 484',244 33 
 
 Do L. C. Educational Income Fund 234 281 40 
 
 Do Montreal Turnpike Trust 188^000 00 
 
 $4,384,297 93 
 
 Special or Trust Funds Belonging to and to be Assigned to Ontario. 
 
 Upper Canada Grammar Scliool Fund. 
 Upper Canada Building Fund. 
 Upper Canada Municipalities' Fund. 
 
 Widows' pensions and uncommuted stipends, LTpper Canada, subject to the payment 
 of legal charges thereon. 
 
 Li^pper Canada Gi'ammar School Income Fund. 
 
 Upptir Canada Land Luprovement Fund. 
 
 Balances of Special Appropriations in Upper Canada. 
 
 Surveys ordered in Upper Canada before the 30th dune, 1807. 
 
 Amount paid by Ontario to Canada Land and Inmugration Company. 
 
 Special or Trust Funds Belonging to, and to be Assigned to Quebec. 
 
 Lower Canada Superior Education Fund. 
 Lower Canada Superanmiated Teacher's Fund. 
 Lower Canada Normal Schotil Building Fund. 
 
 Widows' pensions and uncommuted stipends, Lower Canada, subject to all legal 
 charges thereon. 
 
 lialances of special appropriations in Lower Canada. 
 Surveys ordered in Lower Canada before .lune 30, 18G7. 
 
59 
 
 70 
 
 Jfi 
 
 21 
 
 )] 
 
 27 
 
 )0 
 
 00 
 
 >y 
 
 1)7 
 
 )4 
 
 73 
 
 ')4 
 
 05 
 
 10 
 
 00 
 
 )0 
 
 10 
 
 '5 
 
 51 
 
 [4 
 
 33 
 
 (1 
 
 40 
 
 )0 
 
 00 
 
 A^VARi:> 
 
 OF THE 
 
 A MB 1 T II A r () U S . 
 
 MADE ON THE TlllPJ) DAY OF SEPTEMBER, 1870. 
 
 To 4LL TO WHOM THESE PRESENTS SHALL COME — 
 
 The TloiKirablo -John Iliiiiiilton Gray, (if the city of St. John, in the I'rovinco of 
 Now Brunswick, and tlu' Uonorahlc David Lewis Maci)hfrs(jn, of tlie city of Toronto, m 
 tho Province of Ontario, Sfi)i(Z //m'/!/«(/ .• _ 
 
 /r/(m'«*> by tlie liritish North America Act hSG7, it is enacted that the <livision 
 and adjustment of the del)ts, credits, liahdities, proixnties and assets of U])per Canada and 
 Lower Canada sliall be referred to the arljitranient of three arbitrators, (me cliosen by the 
 Government of Ontario, one by tlie Government of (^lebec, and one by the Government 
 
 of Canada ; , , , i ' i • i 
 
 Ami irhcream, the said John Hamilton Gray was duly chosen under and in accord- 
 ance with the provisions of the sa'd x\.ct as arbitrator by the Government ol" Canada, tlie 
 said David Lt-wis Macjiherson by the Government of Ontario, and tlie Honorable 
 Charles Dewe Day, of Glenbrooke, in the said Province of Quebec, by the (iovernmeut 
 
 of Quebec ; , , , , , m 
 
 Now, therefore, the said arbitrators having taken upon tliemselves the burden ot the 
 said arbitration, the said John Hamilton Gray and David Lewis Macpheison being a nia- 
 jority of the said arbitrators do award, order and adjudge of and upon the premises 
 
 as follows, that is to say : . , „ • ^ ^ , i i 
 
 L Thid the amount by which the debt ot the late Provmce of Canada, exceeded 
 on the thirtieth day of June, one thousand eight hundreil and sixty-seven, sixty-two mil- 
 lions five hundred thousand dollars, shall be and is hereby divided between and appor- 
 tioned to, and shall l)e borne by the said Provinces of Ontario and C^iebec respectively, 
 in the following proportions, that is to say,— the said Province of Ontario shall assume 
 and pay such a p-.oporlion of the said amount, as the sum of nine millions eight 
 hundred and eight tliousand seven hundred and twenty-eiglit dollars and two cents, 
 bears to the sum of eighteen millions five hundred and eighty-seven thousand five 
 hundred and twenty dollars and fifty-sev(!n cents ; and the said Province of Quebec 
 shall assume and pay such a proportion of the said amount as the sum of eight 
 millions seven hundred and seventy-eight thousand seven hundred and ninety-two 
 dollars aiiil fifty-five cents, bears to the sum of eighteen millions five hundred and eighty- 
 .seveii thousand five hundred and twenty dollars and fifty-seven cents. 
 
 n. That the assets hereinafter in this clause enumerated shall be and the same are 
 hereby declared to be the pi-operty of and belonging to the Province of Ontario, namely: 
 1. Debt from the Upper Canada Building Fund to the late Province of Canada, 
 (enumerated in the fourtli schedule to the said British North America Act, 
 1807, as " Upper Canada Budding Fund, Lunatic Asylums, Nor- 
 mal Schools/')— Lunatic Asylums $30,800, Normal Schools ecOOO, $36,800 00 
 
1^ 
 
 86 
 
 2. Debt from the Law Society Upper Canada to the late Piovincc of 
 
 Canada 150,015 fil 
 
 3. Debts to tho lato Province of Canada under the Consolidated Muni- 
 
 cipal Loan Fund of Upper Canadii C,7t)2,l;?n 39 
 
 4. Do))! from the Agricultural Society Upper Canada to the late 
 
 Province of Canada '. 1, (»()() ()() 
 
 5. Debt from the (.'niversity Peimanent Fund to the late Pi'ovinc(! of 
 
 Canada 1,220 OS 
 
 IIL That the assets liereinafter in this clause enumerated shall be, and the same are 
 hereby dechu'ed to be the property of and belong to the Province of Quebec, namely : 
 
 1. The debt from the Aylmer Court House to the late Pro- 
 
 vince of Canada for six per cent. Provincial deben- 
 tures issued on account of the said Court House and 
 assumed by the Dominion of Canada, and charged 
 
 in the debt of the late Province of Canada 2,000 00 
 
 And for certain charges paid by the said late Province 
 
 of Canada in respectof the said Coi rt House 1,2.'J'J.70 
 
 3,239 70 
 
 2. Debt from the Montreal Court House to the late Province of 
 
 Canada for six per cent. Provincial debentures issued c^n account 
 of the said Court House and assumed by the Dominion of Canada, 
 and charged in the del)t of the late Province of Canada $95,000. 
 For advances made to the said Court House by the said late Pro- 
 vince of Canada $18,990.21 1U,59G 21 
 
 3. Debt from the Kamouraska Court House to the late Province of 
 
 Canada for balance of certain charges in respect'of the said Court 
 
 House paid by the late Province of Canada 201 27 
 
 4. Debt from the Royal Institution, otherwise the McGill College, to 
 
 the late Province of Canada, of the balance of a loan maile by the 
 
 said late Province to that institution 7,790 00 
 
 5. Debt under the Consolidated Municipal Loan Fund of Lower 
 
 Canada to the late Province of Canada 2,939,429 97 
 
 6. Advances made in excess of the Legislative School Grant (descril)- 
 
 ed in the fourth schedule to the said British North America Act, 
 
 1867, as "Lower Canada Legislative Grant.") 28,494 73 
 
 7. Debt to the late Province of Canada under the Quebec Fire Loan. 264,254 65 
 
 8. Debt to the late Province of Canada for advances made to or on 
 
 account of certain municipalities in the county of Temiscouta, 
 (described in the said fourth schedule as " Temiscouta Advance 
 Account.") 3,000 00 
 
 9. Debt from the Educr.tion Office in Lower Canada, to the late Pro- 
 
 vince .pf Canada for the balance unpaid of a defalcation in the 
 said office to the said late Province (described in the said fourth 
 schedule as " Education East.") 290 10 
 
 10. Debt from the Building and Jury Fund, Lower Canada, to the late 
 
 Province of Canada for loans and advances made to it by the 
 
 said late Province of Canada 116,475 51 
 
 11. Debt from the Municipalities Fund of Lower Canada to the late 
 
 Province of Canada, for advances made to or on the credit of 
 that fund (described in the said fourth schedule as " Municipali- 
 ties Fund.") i84,244 33 
 
 12. Debt from the Lower Canada Superior Education Income Fund to 
 
 the Late Province of Canada, for advances made from time to 
 
 time by the said late Province 234,281 46 
 
 13. Montreal Tujnpike Trust 188,000 00 
 
 k 
 
15 f>l 
 3G 39 
 
 )0 00 
 
 20 03 
 
 110 art; 
 
 $9 70 
 
 )0 21 
 
 )1 27 
 
 )0 00 
 
 !9 97 
 
 )4 73 
 )i 65 
 
 )0 00 
 
 )0 10 
 
 5 51 
 
 t4 33 
 
 n 46 
 10 00 
 
87 
 
 IV. And .as to tlio siiid Montroal Tiirii|iil<c Tiiut, the sjiid ;iiliili;it(ir.H, fiirllicr liinl 
 award ami udjud;;,!' as CipIIkws : 
 
 //7^/■(7^s, the said sum of uiic Imndit'd and ciLjIity fijLtlit tli(iiisaiid ddllais isscruii-d 
 l»y dclicntiircs issued iipoii tlic civdit nf tlic said 'I'nist, and ,i;iiai'aiilt'cd l)y tin' late I'niv 
 iiicf, of Canada, and liif said Trust lias hitliciln nii't llic iiayincnts iipon such drliciiturcs, 
 an<l the iiaynicnt tlicii'nt' lias tlicri'lnvc not his'n as>iini(d iiy tlic l>niiiiiiinn nf Canada, nnf 
 liastlir said sinii (if (Hic liundicd and (■ij,dity ii;;li( llmiisand dollars litcn diai;,'!'!! liy llic 
 said J)oinini(in in llir dclit of tlic late 1 rovinct- of Canada, which fhiirjii- if niadi', 
 would increase liy one Imndicd and ciuhly eii;lil thousand dollars, the excess of the said 
 delit on the tliirtietli da_\ of .liiiie, one tiioii>and ei_ij;ht hiindied and si.xty seven, aliove six 
 ty-two niillions live hundred thousiind dollars ; Kiiiur, thenTure, the s.aid arhitnitor.s liav 
 iiij,'assi,i;iied the s.aid Tnist as an asset of the said Province of <,)nelH'c, do lieiehy jidjud^^'o 
 and award that the sai'l Province of (^hie'iec shall hereafter indeninify, protect, and save 
 haiiiiless the said |)oiiiiiiion and tlie said I'rovincc of Ontario, iij^'ainst any chari;e upon, or 
 |i;iytiient hy thesjiid Ouiiiinion in icspect of the said dulicnturcb, or the said guaruiitec, 
 or in respect in any way of the said Trust. 
 
 V. T/mt the followiiij,' Special or 'i'liist Funds, and the moneys lliereKy jiayalile, in 
 cl',idinj.{ the smeral inMstnients in resjiect of the >ame or any of them iiie, shall lie, and 
 tho saiiio arc hereby declared to he i\iv property of and helonj^ to the Province of Onta- 
 rio, for the purpose for which they were cstahlished, namely : — 
 
 1. Upper Canada (Irammar School Pund. 
 
 2. irpper Canada iSuildinj;- Fund. 
 
 .3. Ujiper Caiiad;i Municipalities Fund. 
 
 4. Withnvs' pensions and uncomTiiuted stijiiiids. Upper Caiiaila, sulijecl to the [lay 
 ment of all legal chaigcs thereon. 
 
 5. Upper Canada (irammar School IiU'ome Fund. 
 G. U]iper Canada Improvement P'uiid. 
 
 7. TJalatico of special ajipropriations in Upper Canada. 
 
 8. Surveys ordered in Upjier ('anada, hetore liDth dune. iN'iT. 
 
 9. Amount paid and payable by Uiiper Canada to the Canada Land and Fmigration 
 Company. 
 
 Vr. That the following Special or Trust Funds and the moneys thereby ]iayable, in 
 eluding the .several investments in respect of the same or ;iiiy of them are, shall lie, and 
 the same are hereby declared to be the proi)erty of and belong to tho I'rovince of (Quebec 
 for the purpo.ses for which tlii'y were establislied, namely : 
 
 1. Lower Canada Su])erior Education Fund. 
 
 2. 
 3. 
 
 4. 
 
 Lower Canada Superannuated Teachers' Fund. 
 Lower Canada Normal School Euihling Fund. 
 Widows' pensions and uncommuted stipends, 
 gal charires thereon. 
 
 Lower Canada, subject to all le- 
 
 5. Balance (u' -pecial appropiiatious in Lower Canada. 
 
 G. Surveys ordered in Lower Canada before .30tli June, 18G7. 
 
 VIL — That from the Common School Fund as held on the thirtieth day of June, one 
 thou.sand eight hundred and sixty-seven, by the Dominion of Canada, amounting to one 
 million seven hundred and thirty-three thousand two bundled and twenty-four dolhars and 
 forty-seven cents, (of which fifty-eight thousand tloUars is invested in the bonds or tleben- 
 tures of the Quebec Turnpike Trust, the .said sum of lifty-i'ight thousand dollars being 
 an asset nientione<l in the fourth schedule to tlu; Biitish North America Act of 18G7 as 
 the Quebec TurnpikeTrust) the sum of one hundred and twenty-four thonsaiulsix hundred 
 and eighty-five dollars and eighteen cents shall lie, and the same is hereliy taken and deduct- 
 ed and placed to the credit of the Upper ('anadahiipirovement F'und, the said sum of one 
 hundred and twenty-foui' thousand six humlred and eighty-five dollars and eighteen cents 
 being one-fourth part of moneys received by the late Province of Canada between the sixth 
 day of March, one thousand eight hundred and sixty-one and the first day of July, one 
 thousand eight hundred and sixty-seven, on account of Common School lands sold between 
 
M 
 
 tlio rniiii.Tntli il.iy nt'.liiiii'. (IMC lliuiisiind rij;lit hiiiirlrtMl and lifty-tlirp»\ ami thn Haifl sixth 
 (lay III Miu't^li, (iiic tliiiii.Niiiiil i'i;;lil liiiinlri'il ami sixty inic. 
 
 VIII, Tliat (lie residue (if tlif said ('oiiiimui ScIkuiI Fund, with (lie iiiveNtineiits hn- 
 loiif^iiii,' thereto as aluiesuid shall eiiiitiiiue to lie held l»y tlie l>oiiiiiii(iM of Caiiadji, and tlie 
 iiieonm realized tliiietVom. Iron: tlie thirtieth day of .hiiie, one thousand ci^ht. hundred 
 and sixty seven, aid wliieii shall lie hereat'ler realized therelVotn shall he u|)|iortinned ho- 
 tweeii and paid over to the respectivu proviiieeH of Ontario and (jMiehee as directed hy {ho 
 fift/ji section chaiiler twenty six of the consolidati'il statutes of Canada, with rej,'aril to tho 
 sunioftud hundred tluaisand dollar^ in the saiil section inentioiieil. 
 
 I.\. That the moneys receiveil hy thonaiil Province of Ontario since the thirtieth day 
 of .lime, one thousand ei;;ht hiiiidred and sixty seven, or which shall hereafter lie received 
 by the said Province from, or nii account of the,('otninoii Schoul lands set apart in aitl of tho 
 Common Schools of the late ProvinctMif Canada shall he paid to the Dominion of ('aiiada to 
 he invested as provided hy section three of said cha|»ter twenty six of the coiisolidatiMJ 
 statutes of Canada, ami the income derived Mierefroin shall he diviiled, apportioned, and 
 paid hi'tween and to the said luovinces of Ontario and (^)uehec respectively as |)rovided in 
 the saiil lifili section, chajiter twenty-six, of the consolidated statutes of Canada with re- 
 gard to the sum of two hiiiidrefl thousand dollars in the .said section mentioned. 
 
 X. That the i'rovinco of Ontario shall he entitled to retain out of .'!uch iiionoys six 
 percent, for the sale atnl manaifemeiit of the said lands, and that one-fourth ofthepro- 
 ceeils of the said lands sold lietween the fourteenth <lay of June, one thousand ei{,dit hun- 
 dred and Hfty-three, and the said sixth day of March, one thousand eight luindreil and 
 sixty-one, received since the thirtieth day of June, one thousand eight hundred and sixty- 
 seven, or which may hereafter lie receiveil aft('r deducting the expenses of such nianago- 
 nieiit as aforesaid shall he taken and retained hy the said I'rovinco of Ontario for tho 
 Upper Canada Improvement Fund. 
 
 XI. The "Crown Lands Suspense Account," amounting to one hundred and 
 twelve thousand seven hundred and hirty-eight dollars and sixty-three cents,and theCrown 
 Lands Department, amounting to two hundred and fifty-three thousand and eighty-nine 
 dollars and seventy-six cents, heing the items so descrihed in the Public Accounts of the late 
 Province of Canada, having been omitted respectively from the statement of the delit of 
 the saiil Province in such accounts, and from the assets in the fourth schedule to the British 
 North AuH'rica Act, 1807, the said arliitrators award and adjudge that the said Pro- 
 vince of Ontario shall satisfy all claims, and receive all moneys in respect to the 
 said Crown Lands Su>[iense Account, and the said Crown I^ands Department connected 
 with or arising from lands situate in the said Province of Ontario, and that the said Prov- 
 ince of Quebec shall satisfy all claims and receive all moneys in respect of the said Crown 
 Lands Suspense Account and the said Crown Lands Department connected with or arising 
 from lands situate in the saiil Province of C^)uebec. 
 
 XII. As to tilt! Montreal harbour the said arbitrators find that the debt due on 
 account of four hundred and eighty-one thousand four hundred and t'ri'enty-five dollars and 
 twenty seven cents secured by clebentures issued V)y the Montreal Harbour Commis- 
 sioners has not lieen charged in the statement of the debt of the late Province of Canada. 
 And they award, direct and .idjudge that should the Dominion of Canada hereafter pay 
 anything by reason of the liability of the said Dominion on account of the said debentures, 
 the said two Provinces shall rejiay to the said Dominion any sum so paid in the same 
 proportions respectively, as the said Provinces are hereinbefore directetl to bear and pay 
 the excess on tlie thirti(;th day of June, one thousand eight hundred and sixty-seven, 
 above sixty-two millions five humlrod thousand dollars of the debt of the lato Province 
 of Canada. 
 
 XII I. That all the lands in either of the said Provinces of Ontario and Quebec 
 respectively, surrendered by the Indians in consideration of annuities to them granted, 
 wdiich said annuities arc included in the debt of the late Province of Canada, shall be tho 
 absolute property of the Province in which the said lands are respectively situate, free 
 from any further claim upon, or charge to the said Province in which they are so situate, 
 by the other of the said Provinces. 
 
 XIV. As to all the personal property being the joint proj)erty of the siiid Provinces 
 
 i 
 
m 
 
 B9 
 
 of Ontario iiiii] (^liirlii'i', nut ii<-ii'iiilii'|'()t'i> Hiu'cially iiuiitiniird, or iltalt with ainl not 
 aii|irn|(iiat('il liy the said Mritish Noitli AnnTica Act of lMCi7, iiK Imlin^ the liluaiv of 
 I'aiiianii'Mt at Ottawa, tlir ai liitialors timl thai it is not *'X|i)'ilit'nt to ilividi' tiir >aiil 
 jiro|)citii;.s or to ilivrrt thi-ni I'loni ihf pulihc iiui|misi's t'oi' whiili they "if u.sod and 
 rt'i|iiiriMl hy ihf dominion of Canaihi. 'I ln'y, tiifrctiirc, find and award that thi' vahic of 
 tlic said |ti'o|)frti('s is and sliall In.' takrn to he two hundiiMl thousand dollars, and that 
 till' Donunion of Ciinada may H'tain and aciiiiiii- tiic saini' |iro|ii'i iir^ on paynicnt to the 
 waid I'roN intis of thr ,siid sum of two hundi<'d thousand doHais in tho same proporiion 
 as is mentioned in tiic tiist paia^'iaph in'ivof in rcHju-ct to the cxft'ss of ddii of the Itito 
 I'rovinct* of Canada on the thirtieth day of .Iiitie, one thousand eiL,dit hundred and -^ixty- 
 seveii alxive sixty two miiiioiis li\t' iiinidre'd thousand dollars, tliat i.> to say, to Ontario the 
 Hiim of one humlred and live thousand ti\e hundred and forty < me dollars, and to t^tuehec 
 the sum of ninety-four thoii.^and four hundred innl lifty nine dolhirs, and ui)on siieh paynu'iit 
 the Dominion of Canada shall heconie the ahsohite owimm' of the said properties. Hut 
 should the hoiuinion of Canada not so aei|uire the said properties within two years 
 from the date of this award the I'roviiu'e of (.^>uel)ec may aii|uire the said ]iroperties liy 
 the puyuient to the Province of Ontario within three months from the expiration of the 
 said two years of tlie sum of one hundred and five thousand live hundred and fortymie 
 dollars, and should the Province of (^)iiel)ec not so ;ic(|uire tli«' said pmpi rties within 
 tho time aforesaid, the Province of Ontario shall withiti three months next thereafter 
 pay to the Province of Queliec the siini of niiu'ty-foiir thousand four hundred and tit'ty- 
 nine dollars, and shall thereupon become the ahsolute ownei' of such properties. 
 
 X\'. That the said se\eial sinus awarded to lie paid, and the several matters and 
 things awariledand directed to Vie done liy or with legaid to the putties to this reference! 
 resjiectively as aforesaid, shall respectively lie paid, received, done, accepted tind taken a* 
 ami for full sjitisfaction and (lischart;e, and as a linul end and deternnnatinii of the several 
 uuitters aforesaid. 
 
 In witness whereof, the .said .lolin Hamilton (!ray and David Lewis Macpher.'jon, 
 two of the said arliitraiors, have hereunto set their hands this third day of September, 
 iu the year of our Lord one thousand eight hundied and seventy. 
 
 (Signed) d. H. CRAY, 
 (Signed) D. L. MACPIIEUSON. 
 
 Signed and published the third day of September, 1870, in presence of: 
 
 (Signed) CiiKiSTOPiiKi^ IioiiiNSdr;, 
 
 of the City of Toronto, Barrister at-Law ; 
 
 (Signed) FuIlDK. FinciI, 
 
 of the City of Toronto, Law Stationer,