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 Iffl 
 
 NORTH AMERICA (INTERCOLONIAL UAILWAY). -^ 
 
 5=i . ~ -IT- — liii^iiigSagi -T-- TT i r 
 
 R£TDUN to %u AdilreM uf the Honourable Tlic liuuic of ConirooiM, 
 dated 30 June 18*14)— /ui, 
 
 " COPY of CoRRESPONDENCR between any of the North Amirican 
 Provinces and the Impbrial Government, relating to their 
 Applieatic; for Assistance in raising a Loan fur an International 
 Railway." 
 
 (In continuation of Forliameutary Paper, No. 210, of 1862.) 
 
 ial Office, 1 
 I July 180«.j 
 
 Colonial Office, 
 ?6. 
 
 FREDERIC RUGERa. 
 
 (,-,;-!; ■..>i. :■: 
 
 (Mr. AdderUy.) 
 
 .1 . I . 
 
 Ordered, by The House of Commont, to ht Printed, 
 a6 July 1 864. 
 
 530. 
 
'^^ 
 
 11 / i 
 
 *1! 
 
 i! 
 
 I?i i '■■'■!■ 
 
 : ii 
 
 u 
 
 , fi 
 
 n 
 
 r^i 
 
 a!i 
 
 ( ii ) 
 
 SCHEDULE. 
 
 — I. - 
 
 .,■: ^ ;y 
 
 No. in 
 
 Herist. 
 
 
 
 
 Pile. 
 
 ' 
 
 Mis Grace tlie Duke of Newcastle, k. o., to 
 Governor General Viscount Monck. 
 
 12 April 1863 - 
 
 1 
 
 ANSWERS from the Tiikgk Pkovinceh to the Duk^of Newcastle's Despatch, 
 
 12 April 1862. 
 
 8 
 
 
 10 
 
 n 
 
 12 
 18 
 
 u 
 
 Oovernor General Viscount Monck to hit 
 Grace the Duke of Newcastle, k. o. 
 
 His Gmce the Duke of Newcastle, k. c, to 
 Governor General Viscount Monck. 
 
 Lieutenant Governor the Honourable Arthur 
 Gordon to his Grace the Duke of New- 
 castle, K. o. 
 
 Ditto 
 
 ditto - 
 
 His Grace tlie Duke of Newcastle, k. o., to 
 Lieutenant Governor the Honourable 
 Arthur Gordon. 
 
 Lieutenant Governor the Honourable Arthur 
 Gordon to his Grace the Duke of New- 
 castle, X. o. 
 
 Ditto 
 
 ditto - 
 
 His Grace the Duke of Newcastle, r. o , to 
 Lieutenant Governor the Honourable Ar- 
 thur Gordon. 
 
 Lieutenant Governor the Honourable Arthur 
 Gordon to his Grace the Duke of New- 
 castle, K. o. 
 
 His Grace the Duke of Newcastle, k. o., to 
 Lieutenant Governor the Honourable Ar- 
 thur Gordon, 
 
 Lieutenant Governor the Honourable Arthur 
 Gordon to his Grace the Duke of New- 
 castle, K. o. 
 
 The Officer Administering the Government 
 of Nova Scotia tu his Grace the Duke of 
 Newcastle, K.o. 
 
 His Grace the Duke of Newcastle, k. o., to 
 the Officer Administering the Government 
 of Nova Scotia. 
 
 No. 136. 12 .September 1862 
 
 No. 170. 14 October 1862 
 No. 61. 6 May 1862 • 
 
 No. 06. 20 May 1862 - 
 
 No. 74. 20 June 1862 - 
 
 No. 71. June 1862 - 
 
 No. 87. 21 August 1862 
 
 No. 95. 36 September 1862 
 
 No. 102. 4 October 1862 
 
 No. 102. 9 November 1862 
 
 No. 105. 13 October 1862 
 
 No. 03. 16 October 1862 
 
 No. 213. 3 November 1863 • 
 
 n 
 
 u 
 
 11 
 
 IS 
 
( iii ) 
 
 ^ii 
 
 — II.- 
 
 PlfC. 
 
 6 
 
 a 
 
 11 
 
 11 
 
 11 
 
 18 
 
 Ho. in 
 Seriea- 
 
 • 1 
 
 6 
 
 Treasury Memorandum 
 
 8. L. Tiller, Esq., to Sir Frederic Rogers, 
 Dart. 
 
 Mesin. Sieotto k Howland to hi* Grace the 
 Duke of Newcastle, k. o. 
 
 Hii Grace the Duke of Newcastle, k. o., tu 
 GoTcmor General Viscount Monck. 
 
 Ditto 
 
 ditto • 
 
 His Grace the Duke of Newcastle, ■. o., to 
 Lieutenant Governor the Honourable Ar- 
 thur Gordon. 
 
 Ditto 
 
 ditto 
 
 is Grace the Liukc of Newcastle, k. r.., to 
 Lieutenant Governor the Earl of Mul- 
 grave. 
 
 Ditto 
 
 ditto • 
 
 13 December 1889 - 
 
 i3 December 1862 - 
 
 No. 4. 17 January 1883 
 
 No. 8. as January 1863 
 No. 2. 34 Junuary 186.1 
 
 No. 3. S4 January 1803 
 No. 4. 24 January 1803 
 
 No. ID. 31 January 1803 
 
 — III. — 
 ACTS passed by New Brunswick and Nova Scotia. 
 
 Lieutenant Governor the Honourable Arthur 
 Gordon to hia Grace the Duke of New- 
 castle, K. a. 
 
 His Grace the Duke of Newcastle, k. o., to 
 the Honourable Arthur Gordon. 
 
 The Duke of Newcastle, k. g., to the Honour- 
 able Arthur Gordon. 
 
 Lieutenant Governor the Earl of Mulgrave to 
 his Grace the Duke of Newcastle, k. o. 
 
 His Grace the Duke of Newcastle, k. c, to 
 *the Earl of Mulgrave. 
 
 His Grace the Duke of Newcastle, k. c, to 
 the Officer Administering the Government 
 of Nova Scotia. 
 
 No. 81. 37 April 1803 - 
 
 No. SO. 18 May 1888 • 
 
 No. 62. 10 October 1S63 
 
 No. 48. 29 April 1863 - 
 
 No. 33. 16 May 1803 - 
 
 No. 80. 10 October 1888 
 
 14 
 16 
 
 16 
 
 94 
 
 23 
 28 
 
 26 
 
 27 
 
 27 
 
 27 
 
 38 
 
 33 
 
 33 
 
 34 
 
 31 
 
 — IV. — 
 
 CORRESPONDENCE relative to the Survey of the Intercolonial Line, »«id to the 
 Construction of the Tkuko and the Bend Line. 
 
 Governor General Viscount Monck to his 
 Grace the Duke of Newcastle, k. o. 
 
 His Grace the Duke of Newcastle, k. o., to 
 Governor General Viscount Monck. 
 
 No. 03. 1 October 1888 
 No. lOP. SO October 1868 
 
 84 
 
 86 
 
 530. 
 
^< 
 
 ( iv ) 
 
 il I 
 
 
 ;i.i 
 
 NO' in 
 Herin. 
 
 8 
 
 
 10 
 
 II 
 
 12 
 
 13 
 
 Pi|*. 
 
 <iovernor fienoral Vi*c''unt] Monck to hi* 
 Ciriice the IJuku of S'uwcantlc, k. (t. 
 
 (ioviriior (iciicrul Vi ruiiiit Monck to iiin 
 Grinc ihu Uiikc of Ni'Wi-uslle, K. o. 
 
 Ilia Grace the Pukn of Newciigllr, K. t.., to 
 Governor (General Viscount Monck. 
 
 Governor General V'isoount "Monck]_to liit 
 Grace the Duke of Newcastle, K.u. 
 
 His Grace tlia Duke of Newcastle, k.o., to 
 Lieutenant Governor the Honourable Ar- 
 thur Gordon. 
 
 Ditto 
 
 ditto 
 
 His Grace the Duke of Newcastle, k. o., to 
 the Uliicer adminiatcring the Government 
 of Novn Sciitia. 
 
 His Grace the Duke of Newcastle, k. g., to 
 the Officer Administering the Government 
 of Nova Scotia. 
 
 The Officer Administerln<; the Government of 
 Nova Scotia to his Grace luu Duko of New- 
 castle, K. o. 
 
 The Right Hononmble Edward Cardwell, 
 H. p., to the Officer Administering the Go- 
 vernment of Nova Scotia. 
 
 The Right Hononrubic Edward Cardwell, 
 M.p,, to Governor General Viscount Monck. 
 
 No. J 10, 
 
 7 November lSfl3 
 
 No. 24. 
 
 aa February 1864 
 
 No. 31. 
 
 20 Morch 1804 - 
 
 No. 3a. 
 
 15 March 1864- 
 
 No. fiO. 
 
 •33 October 1863 
 
 Na 18. 
 
 IQ March 1864 
 
 No. 04. 
 
 23 October 1803 
 
 1^0. 16. 
 
 10 March 1664 
 
 No. 36. 
 
 13 April 1864 - 
 
 No. 8. 
 
 6 May 1864 • 
 
 No. 31. 
 
 20 Jane 1864 ' 
 
 37 
 88 
 38 
 80 
 40 
 
 40 
 40 
 
 41 
 
 41 
 
 43 
 49 
 
 .1* o 
 
 
 
 -i 
 
Pift. 
 
 37 
 
 88 
 
 38 
 
 80 
 
 ^iV 
 
 r » 1 
 
 COPY of CoRBtspoNDENCR bctwecii any of the NoRTH Amkrican ProviNCU 
 and the Imperial (Iovrrnment, relating to their Application for Awisinnce 
 in raising a Loan for an Iniekcolonial Railway. 
 
 40 
 
 40 
 40 
 
 41 
 
 41 
 
 43 
 
 49 
 
 •• —No. 1. — f ■--■• ■ ■ 
 
 Copy of a DESPATCH from tlie Duke of Newcastle, km., to 
 Governor Genernl Viscount Monch. 
 
 My Lord, 
 
 Downing-strect, 12 April 1862. 
 
 No. I. 
 TheDukaufNfw. 
 
 ooiIIp, k.is., la 
 Viicount Monck. 
 1] April iM)'i. 
 
 jiipcrial |Mii;c 
 Gbvcrnment on tlie 26th October 1858, to aid in the construction of an Inter- 
 colonial Railuay between Halifax and Quebec, and that n delegation from tin- 
 Provinces should proceed to England with the view of promoting this object 
 
 You reported to me that the Honourable Philip Vankoughnet was appointed 
 to represent Canada, and not long afterwanls this gentleman, associated with the 
 Ho!iourable Joseph Howe from Nova Scotia, and the Honourable Samuel Tilley 
 from New Brunswick, arrived in England. 
 
 1 had several interviews with these gentlemen, who urged with great ability 
 the project committed to tlieir charge, and eventua"v embodied their views in a 
 Memorandum communicated to m? in a letter c '.t the 2d December 1861.t t FWe^nmc ptiper. 
 But owing to the urgency of business connected wiih the threatening aspect of P'** '* 
 affairs in the United States, I was unable to bring the subject under the con- 
 sideration of Her Majesty's Government before the deputies were obliged to 
 return to their homes, and other urgent matters have hitherto prevented the 
 adoption of a decision. The subject has now been before Her Majesty's Govern- 
 ment, and I need scarcely assure you that they have examined it with the care 
 «lue to the importance of the question, to the high authorities from whom it has 
 emanated in the Provinces, niid to the character and position of the delegates by 
 whom it has been so powerfully presented to notice in this country. 
 
 The length of railway necessary to complete the communication between 
 Halifax and Quebec is estimated at 360 miles, and the cost, after deducting the 
 right of way which the Provinces will provide, is estimated at three millions 
 sterling. Such bein<^ tlie data supplied by the deputation, the project is that the 
 Imperial Government should join the three Provinces in a guarantee of four per 
 cent, upon 3,000,000 ^, in which case the Provinces are re.idy to pass bills of 
 supply for 60,000/. a year (20,000 /. in each Province) if the Imperial Govern- 
 ment will do the same. The selection of the route is left rolely to the British 
 Government. 
 
 Should the sum of three millions be found insufficient, nothing very definite is 
 said on the essential point of the provision to be made for the completion of the < 
 railway. 
 
 I much regret to inform you that, after giving the subject their best considera- 
 tion. Her Majesty's Government have not felt themselves at liberty to concur in 
 this mode of assistance. Anxious, however, to promote >as far us they can the 
 important object of completing the great line of railway communication on 
 British ground, between the Atlantic and the westernmost parts of Canada, and 
 to assist the Provinces in a scheme which would so materially promote their 
 interests, Her Majesty's Government are willing to offer to the Provincial Govern- 
 ments an Imperial guarantee of interest, towards enabling them to raise by public 
 loan, if they should desire it, at a moderate rate, the requisite funds for con- 
 
 530. A Btructing 
 
^^ 
 
 « 
 
 
 a CORRESPONDI-NCK RELATIVE TO A LOAN FOR 
 
 structinj( tiio ruilway This uas tlic mode of action contemplated by Earl (irey 
 in tlic year 1H51, and is tiic tuiiiif tiietiiud which wa« adituted l)y Parliuiiieiit in 
 the Act of 1842, in order to afford to Canada the l>enent of Britisli credit in 
 raising the money with which »he has com|ih'te(i her fn'*''»t system of int<'rnal 
 water communications. The nature and exrcnt of the guurniitee wliich Her 
 Maji-Aty'* UtivemmMit ooulii uiidertHke to nTon)mend to I'urliament, must be 
 determi' ed by the particulart of any wbeme which the Provi-^cial Oovernmeiits 
 may be dispOi^cd to found on ihe {ircseiit propoMil, and on the kind of tncurity 
 wiiich they wouhi otVer. 
 
 I ft ar that tliis course will not he so acce|)lul)le to the Provincial (Jovernnients 
 as tliut which the delegutes were authorised to propose for consideration. It is, 
 liowever, the only one in whicli Her Majesty s Ooveniment, after anxious 
 deliberation, feel that they would he at liberty to p:irticip:itc. I trust that the 
 propOi^al will at all events be received u^ u proof of their eurnest wiolt to find 
 some method in which they can co-operate with the Province!* in their laudable 
 desire to complete a perfi ct intercolonial communication over British territory. 
 And it will be a source of sincere plea<>ure to me if, adverting to all the dilferent 
 bcurinjj;s of the (<ul>jcet, and to the condition of their respective finaucis, the 
 Provincial Governments should end by finding; it in tiieir power to make use of 
 the present oiler, and to propound gome practicable scheme for applying it to the 
 attainment of the desired object. 
 
 1 have addressed a similar Despatch to the IJeutennnt Governors of Nova 
 Scotia and New Brunswick, and I must now leave the subject in the hands of 
 the several Provincial Governments, who will best know, in case they prosecute 
 the subject further, how to provide for the requisite mutual consultations. 
 
 I iiave, &c. 
 (signed) Newcastle. 
 
 [Similar Despatches, with the requisite adaptations, were addressed at the 
 same date to the Lieutenant Governors of New Brunswick and Nova Scotia,] 
 
 — I.— 
 
 ANSWERS from the Three Provinces to the Duke of Newcastle's Despatch 
 
 of 12 April 1862 ; page 1. 
 
 No. 2. 
 Viicount Monck 
 to the Duke of 
 NewcastU, k.o. 
 isSepteinb«ri863. 
 
 ■-.'■ — No. 2.— 
 (No. 136.) 
 
 Copt of a DESPATCH from Governor General Viscount Monck, to His Grace 
 
 the Duke of Newcastle, k.o. 
 
 • - Quebec, 12 September 1862. 
 
 My Lord Duke (Answered, No. 176, 14 October 1862, page 4.) 
 
 Pagei. Referring to your Grace's Despatch, of 12th* April, I have great 
 
 ^%&i- satisfaction In transmitting to you the accompanying approved Minute of my 
 ^"^ Executive Council on the subject of the mode of executing the proposed railway 
 between this Province and Nova Scotia. 
 
 I have to add that it is intended that a deputation of my Executive Council 
 should proceed in the course of the autumn to England in order to give further 
 facilities, by means of personal communications, for completing the arrangements 
 
 proposed. 
 
 I have, &c. 
 
 ifvrn'j • •' . M.'i' i (signed) Monck. 
 
457 
 
 R 
 
 r Earl (Jrey 
 
 rliiinieiit in 
 
 li credit in 
 
 uf inUrnal 
 
 wliich ller 
 
 nt, must be 
 
 lovernment!i 
 
 of M'curity 
 
 loviTiiinents 
 cioii. It is, 
 (er anxious 
 ist tiiat the 
 wi»I) to find 
 eir laudable 
 ill territory, 
 ilic ditForent 
 iuauci'S, the 
 iiaku use of 
 ii)g it to the 
 
 irs of Nova 
 lie hands of 
 ;y prosecute 
 ions. 
 
 Vewcastle. 
 
 'S8cd at the 
 u Scotia,] 
 
 I's Despatch 
 
 ) His Grace 
 
 B62. 
 
 32, page 4.) 
 
 have great 
 inute of my 
 bed railway 
 
 ive Council 
 ;ive further 
 rangements 
 
 &c. 
 Monck. 
 
 i^.: 
 
 AN INTERCOLONIAL UAILWAY '.NORTH AMERICA). 
 
 hncl'i«ure in N<>. -j, 
 
 Corr of a Rkpokt of a (.'nmmiiti'o cllhi- Exmai^o (.niiin il, il»t<-<l Vi S^pieuilier 1H«V, 
 ■|>]ir<iM'«l l>) Ills Kxcclloiuy the (.ioviTimr iiiiiiTal. 
 
 TllK. ('iiiiiinitter uf Idunril h»>c jfiveo their caruert citiMidcrat ii m I., the aiiii<-te<l Me- 
 mormiiluni of aurceineiit. uilopted ut a liueliii),' ct' tlie ileK^'Ulen t'n.iu tin- rn.viiice, of 
 Nova Scotia anil New nriiiii-wi.k, i»iiil ymir Kxnllciiey'n .\ilvi»er< in tliiit I'nuiucf. on 
 the subject of the conntructimi of an Inttrcolonial Railway, an<l they humbly wlviv that 
 the eame b? apjtrovc*! by your Exeellenry. 
 
 FjkI. In Na. t. 
 
 C'ertitied. 
 
 T. //. /><, Clerk Enpeufive ('•mncil. » 
 
 Mr.MnllAIfDUM. . . 5 
 
 TiiK umler»ign«l, repn sonfin'; the tlireo Govpniiiunt* of Caniuln, Nova Seotin. nml 
 Ne>? Brunwick, cnnvenwi to conHidcr the l)e!<pateli of hi* (irnee the Duke of NewenKtle, 
 of the 12th April lN(i2, with refereiiee to ilie coloniiil riiilwiiy. Iiiivin;; ;;iven the very 
 important mnttem oontnineil in that l)r!<pateli tlieir attentive eonniileration, are ajrrecil : 
 
 I. That whiUt they hr.ve learne<l with very i;rent rej^ret that ller Majesty's Imperial (io- 
 vorninent hiw finally deelined t 
 in Dceeinber 1861, and at previous \» 
 
 to saneiion tiie proposals ir 
 jviourt pcrind^. tliev ut the 
 
 y's Imperial (it 
 them' rrovlnec 
 
 proposal:* made on behalf of them' I'rovinee* 
 hey at the i<aine time aeknowled;:e the eon- 
 gidcration exhibited in i<ub<<titntiii^r the propoi<al of "an Imperial guarantee of intercxt 
 townrdi* enabling them to raise, by publie loan, if they ^*ho^ld desire it, at a niixleratc 
 rate, the reipiisite fund.'' for eon^itruetin;,' the railway." 
 
 II. That with an anxious denire to bind the I'rovtncoa more ebtaely together, l<» 
 strengthen their eonncxiim with the mother country, to promote their common eonunereial 
 intcreHtH, and to provide facililien ensentiid to the publie defenecs of these I'rovincen a« 
 integral part* of the Empire, the undersigned are prepared to aHHiinie, under the Iin|ierial 
 guarantee, the liability fur the expcnUituie nccexiiary to construct this great work. 
 
 III. That the three GoTemments are agree<l that the |)ro|Hirti<)n8 of liabilitj for the 
 ncceuary expenditure shall be apportionctl as follows, viz., tivctwclftli* for Canada and 
 seven- twelfths to l)e equally divided between the Provinces of New UrunHwick and Nov* 
 Scotia. 
 
 IV. But it is" understood that the liability for principal and interest chall be borne by 
 each Province, to the extent only of the proportion hereby agrccfl npon. 
 
 That in arriving at this conclusion, tno un«ieri<igne<l have been greatly influcnec<l by 
 the conviction, that the construction of the road between Halifax and QuebetiDiust supply 
 an C8:«ential link in the ch.iin of nn unbroken hi;;hway extending through liritiiih territory 
 from the Atlantic to the Pacific, in the coin[)letion of which every Imperial intercitt in North 
 America is most deeply involved. And the undersigned are nirretA, that to prexent pro- 
 perly this part of the subject to the Imperial authorities, the tkree Provinces will unite at 
 an early day in a joint representation on the iimuense political and commercial importance 
 of the western extension of the projected work. 
 
 (signed) 
 
 Quebec, 12 September 1862. 
 
 .530- 
 
 J. S. Maedonald, 
 L. V. Skotte, 
 
 J. MVT\$, 
 
 W. M^DmiyalU 
 
 W. P. Hwdand, 
 
 V. T. Testier, 
 
 F. Eventurel, 
 
 Thos. D'Arctj M'Gee, 
 
 Joseph Howe, 
 
 J. MCuUff, ..,,,• 
 
 H'. Annand, 
 
 S. L. Tillet/, 
 W. II. Sleeves, 
 P. Mitchell, 
 
 Bcprescntiug 
 Canada. 
 
 ! Nova Sootia. 
 
 J 
 
 >New Brunswick. 
 
 AS 
 
V 
 
 CORRI^PONDENCE RELATIVE TO A rX)AN FOR 
 
 No. .}. 
 
 The Duke of New- 
 caallr, k.o., Io 
 Viioouiii Monck. 
 UOetolwr 1801. 
 
 • 1*0 gc a. 
 
 (No 176.) 
 
 ~ No. 3. - 
 
 Copy of a DESPATCH from liis Grace the Duke <*f Aewautle, k.o., tu 
 (iovcraor General Viscount Monck. 
 
 My Lord, Dus\iiiiigstivtt, 14 October 18fl2. 
 
 I HAVE liad tlie honour to receive your Lord-iliiii's I) 'tputcli, No. 13(i,* of the 
 12tU of Sefiteinber, accoiiipuniud l>y a Miautt; of your Executive Council, con- 
 taininn; a Memorandum, by which it uppeurs tliat the lievcral f;cntlemeu from 
 Canada, Nova Scotia, and New Bruii?wicl<, who eonsultod on the Rubject, liud 
 arrived at a conclusiou in favour of a'sumiii^, with tiic aid of un Imperial 
 
 fuaranteo of interest, the liability for the cx|iLMiuituru necessary to construct the 
 ntercoioniul Railway. 
 I have received this intelligence with much satisfaction. 
 
 I have, &c. 
 (signed) Newcastle. 
 
 irr 
 
 is' 
 
 It ■ 
 
 No. 4- 
 Lieut Governor 
 Hon. A. H.(>ordon 
 to the Duke of 
 Newoutle. 
 May ISC2. 
 
 tPap;e 1. 
 
 — No. 4. — 
 (No. 61.) 
 
 Copy of a DESPATCH from Lieutenant Governor the Honourable Arthur 
 H. Gordon to his Grace the Duke of Newcastle, k.o. 
 
 Freilericton, New Brunswick, 6 Muy 1862. 
 My Lord Duke, (Aimwered No. 74, 20 June 1864, page 6.) 
 
 I HAVE the honour to acknowledge the ^.'cceipt of your Grace's Despatch 
 of the 12th ultimo,t containing the reply of Her Majesty's Government to 
 the application made by the Provinces of Canada, New Brunswick, and Nova 
 Scotia, for Imperial aid towards the construction of an Intercolonial Railway. 
 
 2. I shall lose no time in submitting this important communication to the con- 
 sideration of my Council, but the members of tiiai body are at present without 
 exception absent, and some little time must elapse before they can bo again 
 collected here. 
 
 3. In the meanwhile, however, I may venture to assure your Grace that no 
 step will be hastily taken on the part of this Province, and that the consideration 
 of the offer, now made by Her Majesty's Government, will be undertaken with a 
 strong desire to adopt the proposed arrangement. 
 
 4. At the same time it is, of course, felt, that although the proposal now made 
 by Her Majesty's Government is similar to that made by the Provinces 10 years 
 ago, the position of the question as regards New Brunswick is by no means the same 
 as it then was ; a considerable extent of railway having since that period been 
 constructed, and a heavy amount of debt consequently incurred by the Province, 
 and it is my duty frankly to confess to your Grace, that I see very great diffi- 
 culty in the adoption of a course which, even at the most moderate rate of in- 
 terest, must add so largely to the burdens of the Colony. 
 
 5. I shall have the honour of addressing your Grace on this subject again, and 
 probably at greater length when I have ascenaiued the views of my Executive 
 
 Council. 
 
 jj,"-. 
 
 I have, &c. 
 (signed) Arthur H. Gordon. 
 
^^i 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICA). 
 
 (No. 66.) 
 
 — No. 5. 
 
 Copy of a DKSPATCH from Lieutenant Governor the Honouralilc Arthur 
 If. (ifirdoH, to liis (trace tin- Duko of \etvc<utlr, k.o. 
 
 Fredfiicton, New Hruntwitk, "itl Muy \M-i. 
 
 My Lord Duke. (Ainw.nd, No. 74, so June icnj. l»»j;c fl.) 
 
 It was only on Tliursday lu^t, the a2(l iiistitnt, thiit I was cnuhlid to coUt-cl 
 my Kxecutive Council together at this place iti order to comiiiuniciitc to them 
 jour Grace's imiwrtant Uisiatch of the lath u't.* on tin sultjcct of tlu- aid to be 
 afibrded by ihe Imperial (Jovirninent towurds ilic construction of an Intercolonial 
 Railway. 
 
 2. I accompanied the commuiiieatioii of your Grace's Despatch by the Minute 
 of which I have the honour to inclose a co|>y. 
 
 3. I was aware that much timidity existed in the minds of my Council that 
 some unwillinuncss would be expresbid with lespect to u further primicution of 
 the gfheme. It was, therefore, my object to confine the discussion within the 
 narrowest possible limiis, and to secure the appointment of deiet^ates to meet 
 those of the other Provinces at Quebec. 
 
 4. In this object I am glad to say I entirely hucceedid ; and, although one <>r 
 two inemlicrs of the Council appeared averse even to such an appointment, or at 
 all events to that of delegates unfettered by precise instnictionii, a decision was 
 finally adopted in accordance with the views which 1 bad expressed. 
 
 6. It is my intention to repair to Q'lcbce, at the time at which tlic delepitiou 
 will be there. Lord Mul<;rave will, ( lidievo, take the saiiiu op|)ortnnity of 
 meeti'i;^ the Governor General and myself. 
 
 6. I cannot be insensible to the great difficulty wliidi will be felt in the 
 assumfitioii of n<.'W liabilities by this Province, the istimittd revenue of which 
 for the current year amounts only to about 120,000/., and whicli is already 
 burdened by a debt of above 1,000,000 /. nterling ; but I look upon the question 
 as one which largely aft'ects the welfare of British North .\nierica as a whole, and 
 which must, therefore, not be regarded from too exeluiiively a Provincial point of 
 view by any one of the separate Colonies iutensted. 
 
 7. Should, theret'ore, Canada and Nova t-cotia both desire the prosecution of 
 the work on the terms now proposed, and should the people of those Provinces 
 express their willingness cheerfully to bear the additional burdens which must be 
 imposed, in order to attain the accomplislimciit of this great object, I certainly 
 shall be indisposed to permit it to be defeated by the reluctance of my Respon- 
 sible Advisers to incur the unpopularity ;jUacliing to an augmentation of the 
 public burdens, and I should at least rcqun-e ample evidence that they were 
 expressing the deliberate sentiments of the Legislature, and people of this Pro- 
 vince, before I acquiesced in the rt jeetion of un offir of the Imperial Govern- 
 ment, which had been accepted as a boon by the sister Colonies. 
 
 1 have, &c. 
 (signe;!) Arthur I/. Gordon. 
 
 No. 4. 
 Lieut. noTrrnor 
 Hon. A. H.tSanlon 
 t« thf Duki of 
 NewcaMie, i.u. 
 3(i Mitjr tRiJJ. 
 
 Vff.1. 
 
 Enclosure in No. 6. 
 
 Mehorandcu for the Execltive Cocncil. 
 
 The Lieutenant Governor cannot cummuuicatc to his Council the Despatch of the End. in No 5. 
 Duke of Newcastle, of the 12th ult, without accompanying it by a few remarks. 
 
 2. The proposition contained in that Despatch is one of bo great importance, and 
 concerns so deeply the future prospects, not of this Province alone, l*ut of British North 
 America as a wnole, that the Lieutenant Governor fcela persuaded that, even if it were 
 deemed absolutely impracticable for New Brunswick to close with that proposal, it would 
 appear to his Council to be adopting too precipitate a course of action, were the Govem- 
 
 530. A 3 ment 
 
9\jifi 
 
 ft CORRESPONDENCE REIATIVE TO A LOAN FOR 
 
 incnt of thiij Province t^) ci>me t4> an absolute deciDiou upon the question, without previous 
 conHuItatioii witli tlie (iovcnitni'iiti* of thuiie other I'roviuced, which are, to say the least, u 
 deeply intcr(>8te<l in the <iuci)tlon at issue. 
 
 .<. The Lieutenant Ciovernor aurJumcK, tlierefore, that \m Council will agree with him 
 in the exiNHliency of apiMiinting a delegation to confer with ropresentativea of Canada and 
 Nova Scotia on the snqiect ; and he requesto their advice as to the persons to whom, in 
 their opi ion, the intcre.'<fs of the Province may be most safely entrusted. 
 
 4. The im|M>rtani'e of the deoiHion which has ultimately to be made with respect to the 
 jiniposnls of the Hritish (lovernmcnt cannot well be overrated. It may be considered 
 certain tliat no other or more favourable otter will be now made, and that the rejection of 
 the present uroposititm will be tantamount to the abandonment for an indefinite period of 
 all hope of tne completion of the greit work of esitablishing an Intercolonial liailwuy. 
 
 &. At the same time the Province cannot prudently, or indeed honestly, incur liabilities 
 which it might be unable to discharge ; and the Lieutenant Governor has no hesitation in 
 declaring Ins decided opinion, that unless the Province of Canada undertakes a very large 
 proportion of the whole reaponsibilitiea of the loan required, it would be idle for New 
 Brunswick to move in the matter. If half the burden were to be borne by Canada, the 
 adjustment of the incidence of the remaining half between No'a Scotia and New Bruns- 
 wick might perhaps be satisfactorily arrangM. 
 
 6. But his Excellency considers that it would be injudicious to fetter the delegation by 
 instructions of too precise a chamcter as to the proposals which they may or may not be at 
 liberty to discuss. The final adoption or rejection of any scheme proposed will not rest 
 with them, b\it with the Provincial Governments ; and it is well that the subject should be 
 fully and iiatiently considered in all its bearings before that decision be made. 
 
 The Lieutenant Governor has reason to believe that the Canadian Government are 
 anxious that the proposed consultation should take plane at an early period ; and he there- 
 fore hopes that the Council will not separate without coming to a decision as to the pro- 
 prietv of dispatching a delegation to Quebec, and as to the persons who in their opinioa 
 should be employed on that service. 
 
 (signed) Arthur H. Gordon, 
 
 22 April 1862. 
 
 No.fi. 
 Til. DukeofNew- 
 ciistle, K.O., to 
 Lii"uf. Governor 
 Mo:i. A.H.Gordon, 
 ao .Fiine 18C2. 
 
 • Piiges 4 and 5. 
 
 — No. 6. — 
 
 (No. 74.) 
 
 Copy of a DESPATCH from His Grace the Duke of Newcastle, k.g., to 
 Lieutenant Governor Honourable Arthur H. Gordon. 
 
 Sir, Downing-stre >t, 20 June 1862. 
 
 I QAVE the honour to acknowledge the receipt of your Despatches, Nos. 61* and 
 66 of the 6th and 26th of May, on the subject of the aid which the Imperial 
 Government have ottered to afford towards the construction of an Intercolonial 
 Railway. 
 
 I have, &c. 
 (signed) Netccaatle. 
 
 No. 7. 
 
 Lieut. Governor 
 Hon. A. II. Gordon 
 to the Duke of 
 Ni'wciii'tle, K. o. 
 <j June 1862, 
 
 r 
 
 — No. 7. ■— 
 (No. 71.) 
 
 Copir of a DESPATCH fiom Lieutenant Governor the Honourable Arthur 
 H. Gordon to his Grace the Duke of Newcastle, k.g. 
 
 My Lord Duke, Fredericton, 9 June 1862. 
 
 Owing to the change whicli has taken place in the composition of the 
 Canadian Cabinet, all discussion upon the question of tiie Intercolonial Railroad 
 is at present deferred. • , -; ',' 
 
 2. In all probability 11 conference between the representatives of the several 
 local Governments interested will now take place in the early part of the month 
 of September, 
 
 3. I do not myself regret this postponement, as I think the delay will probably 
 lead to the adoption of juster views on the subject than at present prevail in this 
 
 Province, 
 
ithout previous 
 my the least, as 
 
 igrec with him 
 uf Canada and 
 18 to whom, in 
 
 I respect to the 
 be considered 
 the rejection of 
 finite period of 
 I Kaihvay. 
 
 incur liabilities 
 no hesitation in 
 68 a very large 
 3 idle for New 
 by Canada, the 
 id New Bruna- 
 
 e delegation by 
 r may not be at 
 1 will not rest 
 ibject should be 
 le. 
 
 rovemmcnt are 
 
 ; and he there- 
 
 as to the pro- 
 
 n their opinion 
 
 • H. Gordon. 
 
 e, K.G., to 
 
 June 1862. 
 Nos. 61* and 
 the Imperial 
 Intercolonial 
 
 &c. 
 NeiLxastte. 
 
 ble Arthur 
 
 June 1862. 
 sition of the 
 }niul Raih'oad 
 
 if the several 
 of the month 
 
 will probably 
 
 prevail in this 
 
 Province, 
 
 AN 1NTERC0U>NIAL RAILWAY (NORTH AMKRICA). 7 
 
 Province, and «iU allow the feelings of di,appointn,ent cau.«l by the rrioction 
 of the proposition ma.le Iroin hence .0 suhsi.lo iK-fbre it X^^m^L n.ro4«r Mo 
 take any decisive action. ^-^nr^ lu 
 
 1, u-.. I liuvc, &0. 
 
 (-ijjncd) Arthur If. Gordon. 
 
 No. 8. 
 I.ii'iit.-Oovcrnor 
 Hon. A. H. 
 <torilon to ilio 
 Oukeot'Nowcrt^tle, 
 
 K.U. 
 
 ii August i8(ii. 
 
 (Na^87.) -N....- > .: . ■-■ 
 
 Copy ot a DESPATCH from Liout..nHnl Governor the Honoiirablo Arlhur 
 II. Gordon to Ills Gruce tiie Duke of Nm-autle, K.<i. 
 
 Frodcriclou, 21 .Viigii.st 1802. 
 My JjOru Duke, (AiuwertJ No. Hj, 20 S|.Uriiber l«i).', jtajjc U ) 
 
 I HAVE tlie lionour to enclose for your (J race's iiifciriiiation a copv of a 
 Despatch Ironi tlio Govirnor (icneial ot Canada, Miygtsliiig that a coiif' n-iirc 
 should take place at Quebec on the lOtli proximo, Ijotwet-ii members ol the 
 Canadian Governrnent and tho'-e of New Brunswick and Nova Scotia, with a 
 view of entering into an arrangement for the completion of an Intercolonial 
 Railway upon the l'a?i> suggested by tlie Imperial Government. 
 
 2. I have also the honour to enclose for your Grace's iiifurmation the copy of 
 
 a Minute of my Executive Council in committee, recomnipiiding me to ap'ioint --4^,t ,,. 
 three members of the Government as a deli gation to attend tlie propoood 'con- ^^^-2?. 
 ferenci', and also to authon?.e them to enter into iirrangenunts wiih the delegates 
 of tlie other Provinces, interested lor the construction of au Intercolonial Uail way, 
 provided the liabilitiei to be incurred by New Brunswick for that purpose do 
 not exceed 35,000 1, sterling pc r annum. 
 
 3. This Minute is signed by all llie members of the Executive Couiuil. with 
 two exceptions. The Solicitor General, as your Gr.iee will percive, a|iii<ii(is to 
 the Minute a note assenting to the appointment of the delegation, but recording 
 his opinion that the liabilities to be incurred by the Province should not exceed 
 a capital sum of 3,000,000 /., whilst the Attorney General, in a separate Minute, 
 of which I have also the honour to enclose a copy, records his di.-sont from the ao a 
 policy of his colleagues, and reserves to himself such liberty of action as he may "^ " 
 deem necessary. 
 
 I have further the honour to inform your Grace, that in compliance with the 
 advice of my Council, I have nominated as delegates the Honourable the I'roviiicial 
 Secretary, the Honourable W. H. Sleeves, and the Honourable P. Mitchell, 
 
 These gentlemen will leave Fredericton for Quebec in about a week's time. 
 
 I have, &c. 
 (signed) Arthur II. Gurdoii. 
 
 Enclosure 1, in No. 8. 
 
 Sir, _ ^ Quebec, 1.5 August 18(!2. End. 
 
 In a Desjmtch which I have received from the Duke of Newcai-tlc, dated 12th April 
 1862, containing the couditions under which Her Majesty'c Government propose to assist 
 the Colouicj in the construction of u railway connecting Ilnlifux with Rivi'rc dii Loup, 
 his Grace mentions that he had sent at the same time identical Dc^'J)iltchc.>' to your 
 Excellency and the Lieutenant Governor of Nova Scotia. 
 
 It is very desirable in order to return a satisfactory answer to the Despatch in rjuestiont 
 that the Ministers of the three Provinces interested, Canada, New Brunswick, and Nova 
 Scotia should come to a distinct understanding as to the part which each of those Provinces 
 will undertake in reference to the execution of the proposed work. 
 
 I think this end will be best attained by a i>crsonal conference between the members of 
 the administrations of the three Provinces. 
 
 I am aware that it is the intention of your Excellency to visit Canada in the beginning 
 of next month, and I expect the Lieutenant Governor of Nova Scotia will be here about 
 the same time. 
 
 It appears to me, therefore, that the time -which I have mentioned offers peculiar advan- 
 tages for holding tbc juoposed consultation, and I shall feel much obliged if your Excellency 
 530. A 4 will 
 
 , in No. U. 
 
Pi ' '^'•^ 
 
 End. 9, in No. t). 
 
 8 
 
 CORRESPONDENCE RELATIVE TO A LOAN FOR 
 
 will arrange with such membprH of your Adminiitratinn t» may be deputed to assist at the 
 conference to attend at Quebec on Wednesday, September 10th, for that purpose. 
 
 The question of intercolonial trade will probabl)- be discussed at the same time. 
 
 I have addressed a Despatch of the same import as this communication to the Lieutenant 
 Governor of Nova Scotia. 
 
 I have, &c. 
 His Excellency the Honourable A. H. Gordon, (signed) Monck. 
 
 &c. Ac. &c. New Brunswick. 
 
 Enclosure 2, in No. 8. 
 
 To His Excellency the Honourable Arthur H. Oordon, C.M.O., Lieutenant Governor 
 the Province of New Brunswick, 'tc. &c. &c. 
 
 of 
 
 The Committee of Council have had under consideration the communication of the 
 Governor General of Canada, inviting a Conference of the Governments of Canada, Nova 
 Scotia, and New Brunswick at Quebec, on the 10th of September next, to take into consider- 
 ation the proposition of his Grace the Duke of Newcastle of the 12th of April last, relative 
 to the construction of an Intercolonial Railway ; and they advise your Excellency to comply 
 with the request of Lord Monck, and to appoint three members of your Government as 
 such delegation ; and that they be authoriscu to make an arrangement for the building of 
 such road, providing the liabihtics to be borne by this Province shall not exceed 35,000 /. 
 sterling per annum. 
 
 _ , (signed) S. L. Tilley. 
 
 John M'MiUan. 
 W. H. Sleeves. 
 P. Mitchell. 
 Jag, Steadman. 
 W. E. PerUy. 
 George L. Uatheway. 
 
 Executive Council Chambers, 
 20 August 1862. 
 
 I am willing that the delegates from New Brunswick may agree to any scheme for the 
 building of a railway from Halifax to Quebec, provided that the cost thereof do not 
 exceed 3,000,000 /. sterling. I also consent to the capitalization of the interest thereon 
 for such time as may by the delegates be deemed prudent. 
 
 (signed) Charlet Walters. 
 
 20 August 1862. 
 
 
 Enclosure 3, in No. 8. 
 
 End. 3, in No. 8. Memohaxdum or Statement which I require may be entered in the Records of the 
 
 Executive Council. 
 
 I MAKE no objection to the delegation appointed to proceed to Canada to confer with the 
 Government of that Province, ana a dchigation from Nova Scotia upon the subject of the 
 Intercolonial Railway. This, I think, under the circumstances could not well be avoided ; 
 but as a majority of the Council has determined to authorise the delegates to assume on 
 behalf of this Province, not only the sum of 20,000 /. sterling, the amount heretofore 
 offered to aid in its construction, but the further responsibility of 15,000 /. sterling, I 
 desire to record my protest against such a proposition, the reasons for which I have 
 endeavoured to impress upon my colleagues ; and m the event of the delegation making an 
 arrangement which involves the extent of the liability authorised by uiese instructions, 
 and the Government decide after their return to give effect to such arrangement by legisla- 
 tion, I shall feel it my duty to adopt such a course as will relieve myself from the responsi- 
 bility of the measure, and enable me to give opposition to a scheme which, in my judgment, 
 is fraught with consequences highly prejudicial to the material interests and welfare of this 
 Province. 
 
 Dated 20 August 1862. 
 
 (signed) A. J. Smith. 
 
 ..J 
 
 iti' 
 
qih 
 
 POR 
 
 d to assist at the 
 puqMMC. . . , 
 
 ne time. 
 
 o the Lieutenant 
 
 [ have, &c. 
 ;d) Monek. 
 
 ant Governor of 
 
 fiunication of the 
 of Canada, Nova 
 ake into conaider- 
 Lpril last, relative 
 cllency to comply 
 ir Government as 
 or the building of 
 t exceed 35,000 /. 
 
 Tilley. 
 M'Millan. 
 r. Sleeves, 
 itchell. 
 ^teadman. 
 '. Perley. 
 je L. Hathetoaij, 
 
 ly scheme for the 
 thereof do not 
 interest thereon 
 
 harle$ Wattert. 
 
 I Records of the 
 
 Xi confer with the 
 the subject of the 
 well be avoided ; 
 ates to assume on 
 nount heretofore 
 000/. sterling, I 
 )r which I have 
 'ation making an 
 lese instructions, 
 ement by legisla- 
 ■om the responsi- 
 in my judgment, 
 id welfare of this 
 
 A. J. Smith. 
 
 AN INTERCOLONMAL RAILWAY (NOUTll AMERICA). 
 
 — No. — 
 (No. 950 
 
 Copy of a DESPATCH from His Grace the Duke of Xeweculk, k.c, to 
 Lieutnmnt-Governor the Honourable Arthur H. Gordon. 
 
 No. n. 
 DuktofNi'^' .utle» 
 K.U., to Lieut, - 
 Ootemor ll'in. 
 A. H. (^onlun. 
 ttiSvpt. iHO'j. 
 
 Sir. Downing-strect, 26 SeptemWr Igtf-j. 
 
 I HAVE llie honour to acknowledge tlic receipt of your Despatch, No. 87,» of • P»je 7. 
 the 21st of August, respecting llie Conference wliicli was proposetl to bo held at 
 Quebec on the lOlh ot this* month, relative to the construction of tiie Intercolonial 
 Railway, jimi stating that you hiul noininateil as Delegates from New Brunswick 
 tlie Provincial Secretary, the Honourable \V. H. Sleeve*, and lite Honourable 
 P. Mitchell. 
 
 I have, itc. 
 (signed) Xcwcastle, 
 
 — No. 10. — 
 (No. 102.) 
 
 Copy of a DESPATCH from Lieutenant-Governor the Honourable Arthur 
 H. Gordon to His Grace the Duke of Newcastle, k.c. 
 
 Fredericton, 4 October 1802. 
 My Lord Duke, (Answered No. loa.— 3 November l«Oi, jmgc 11.) 
 
 Your Grace has already been informed by the Governor General of Canada 
 of the result of the Conference at Quebec of the Delegates of Canada, 
 New Brunswick, and Nova Scotia, on the subject of tlie completion of an Inter- 
 colonial Railway. 
 
 It is, however, my duty formally to transmit to your Orare a copy of the 
 report presented to me by the Delegates from this Province, which accordingly 1 
 have now the honour to enclose. 
 
 1 have, &C. 
 (signed) Arthur H. Gordon. 
 
 No. 10. 
 
 Lieut. -Oiivi'i-nor 
 
 Hon. A.lHionlon, 
 
 totlicUukcofNcw. 
 
 rastir, k. u. 
 
 4 Uctulier iStia. 
 
 Enclosure in No. lo. 
 
 To His Excellency the Honourable A. II. Gordon, c.M.o., Lieutenant-Goveiaor of the 
 Province of New Brunswick,. &c. &c. 
 
 Fredericton, October 1862. 
 Your Excellency having appointed the iinilersigncd delegates from the Government 
 of this Province to attend a Conference at Quebec, to be composed of tiie Governiuents of 
 Canada, Nova Scotia, and New Brunswick, and summoned by his Excellency the 
 Governor General to consider the proposition contained in the Despatch of his Grace the 
 Duke of Newcastle, of the 12th April 1862, in relation to the construction of the Inter- 
 colonial Knilway, we beg to submit the nccompanying memoranda as the result of the 
 deliberations of the Conference. 
 
 (signed) A L. Tillei/. 
 W. H. Ste'eve*. 
 P. Mitchell. 
 
 
 End. in No. 10. 
 
 Mesioranrum. • '» ; 
 
 The undersigned, representing the three Governments of Canada, Nova S<. ia, and 
 New Brunswick, convened to consider the De^iwitch of his Grace the Duke of Newcastle, 
 of the 12th April 1862, with reference to the Intercolonial Railway, having given the 
 very imi)ortant matters contained in that Despatch their attentive consideration, arc 
 agreed, — 
 
 1. That while they have learned with very great regret that Her Majesty's Imperial 
 Government has finally declined to sanction the projiosals made on behalf of these Provinces 
 in December 1861, and at previous periods, tliey, at the same time, acknowledge the 
 consideration exhibited in suDstituting the proposal of " an Imperial guarantee of interest 
 towards enabling them to raise by public loan, if they should desire it, at a moderatt; 
 rate, the requisite funds for constructing the railway." 
 
 530. B 2. That, 
 
1" 
 
 Uh 
 
 to 
 
 CORRESPONDENCi: HELAllVF, TO A LOAN FOR 
 
 m 
 
 !:• 
 
 
 y 
 
 
 
 
 
 
 HK 
 
 
 
 
 {1 
 
 
 
 
 I,; 
 
 
 
 ■ 
 
 \ 
 
 i 
 
 2. That, with an nnxiiiiir« ilc^irc to liiiiil tlu' Provinces iimro cloudy togi'thcr, to 
 (•trengthcn tlicir connexion witli tlio inotlier-conntry, to iiromoto their coininoii coinnicn'ial 
 intcrestj', and to provide facilitie!* e!<i*fntial to tlie |iiilpiir det'ence" of tiic^^e Prnxiiioos a;* 
 integral ]iart:« of tlie Kmiiire, the underi"i};ned are jircparfd to a.^iiunc, under the Imperial 
 guarantee, the liability for the exjienditure necessary to construct this gjeat work. 
 
 3. Iliat the throe Oovermnent!' arc n;;rced that the pro|!i)rtloni< of liahility for the 
 necei'iiary expenditure -hall l)e apjwrtioncd an follows, viz.: five-twelfths for Canada, and 
 seven-twelfths to be equally divided between the Provinces of New lirunswick and Nova 
 Scotia. 
 
 4. But it u undcrstootl that the liability for princijaal and interest shall be borne by 
 each Province to the extent only of the proiwrtion hereby agreed upon. 
 
 5. That in arriving at this conclusion, the undersigned have been greatly influenced by 
 the conviction that tlie construction of the road between Halifax and Quebec must supply 
 an essential link in the chain of an unbroken highway extending through British territory 
 from the Atlantic to the Pacific, in the eompTelion of which every Imperial interest in 
 North America is most deeply involved ; and the undersigned are agreed that, to present 
 projierly this j)art of the subject to the Imperial authorities, the throe Provinces will unite 
 at en carlr day in a joint representation on the immense political and conuncrcial imi)or- 
 tance of the western extension of the projected work. 
 
 (signed) 
 
 Quebec, 12 September 1862. 
 
 Quebec, 13 September 1862. 
 
 J. S. MacdonalJ, 
 L. V. Sicotte, 
 J. Morris, 
 W. P. Hoicland, 
 W. MDougall, 
 U. T. Tessier, 
 T.D'Arci/MGee, 
 F. Eventurel, 
 Adam Ifilsom, 
 
 Joseph Howe, 
 William Annand, 
 J. M'Cullt/, 
 
 S. L. Tilley, 
 W. H. Sleeves, 
 P. Mitchell, 
 
 \ Representing 
 Canada. 
 
 Nova Scotia. 
 
 New 
 Brunswick. 
 
 Memorandum agreed at the Conference of the Delegates of Nova Scotia and New 
 Brunswick and the Government of Canada. 
 
 1. If it should be concluded that the work shall be constructed and managed by a joint 
 commission of the three Provinces, it shall be constituted in the proportion of two 
 appointed by the Government of Canada, and one each by the. Governments of Nova 
 Scotia and New Brunswick — the four to select a fifth before entering upon the discharge 
 of their duties. 
 
 2. That a joint delegation proceed, with as little loss of time as possible, to England, to 
 arrange with the Imi)erial Government the terms of the loans, the nature of the securities 
 required, the amounts to be paid for the transport of troops and mails, and, if possible, to 
 obtain a modification of tlie terms proposed to the extent of the interest accruing during 
 the construction of the work. 
 
 3. That no surveys be authorised until the laws contemplated shall have been passed, 
 and the joint commissioners apirainted. 
 
 4. That any profit or loss, after paying working expenses, shall be divided in i)roj)ortion 
 to the contributions of the several provinces. 
 
 5. That such portions of the railways now owned by the Governments of Nova Scotia 
 and Now Brunswick, which may be required to form pai-t of the Intercolonial Road, shall 
 be worked under such joint authority as may be appointed by the three Provinces. That 
 the rates collected shall be uniform over each respective portion of the road. That all net 
 gain or loss resulting from the working and keeping in rejjair of any portion of the road 
 constructed, by Nova Scotia or New Brunswick, and to be used as a part of the Inter- 
 colonial Railway, shall be received and borne by the said Provinces respectively ; and the 
 surplus (if any) after the payment of interest, shall go in abatement of interest on the 
 Crown-lands required for the line or for stations, shall be i)rovided by each Province. 
 
 ' (signed) Thos. D. MGte, 
 
 ' ' President of Council. 
 
 '■•■?.' -. , Joseph Howe, 
 
AN INTKDCOLONIAL i.AILWAY (XOUTH AMERICA). ii 
 
 «»4/ 
 
 — No. n. — 
 
 (No. 102.) 
 
 \ II 
 
 Copy of u DKSI'ATril from Hi» (iracc tae iXikf of SmrMiU, K.t, . to l).ikJofN,w.Mii,, 
 Lieutcnant-Guvoruor tln' llonuunihlt- Arthur II. (.iord*m. « o., ''> Lieut. 
 
 Q. OoT«nior Hon. 
 
 ^"■' Downinp-.stnet, 3 .'iovoniScr l«rt2. A. H. Oonl'^ i. 
 
 I HAVE tlie honour to acknowltdgt the recii|)t of vour Despalcli, No. 102,* of ^ Nof'mt.cr i8«*. 
 the 4th October, forwarding mcmoTanda ngni-d to'bv the Deh'ijatfH of timadn. * ''•Ht* 9- 
 
 New Brunswick, iuid Nova Scotia, i.t the hite Confercrlcc lield a-^Quohoc, on thi- 
 subject of tlie Inttrtoionial Railway- 
 
 I have, inc. 
 (^ign'■d) Newcastle. 
 
 Copy 
 
 >fova Scotia. 
 
 — No. 12. — 
 (No. 105.) 
 
 of a DESPATCH from Lieuten?.nt-Govfrnor th*- llonDurabli- Arthur 
 U. Gordon to His Grace the Duke of \eu\n\th\ k. <i 
 
 My Lord Duke, Fredorictou, i:< Octol)i r IM02. 
 
 I HAVE the lionour to inform your Grace that 1 have diieuted tlio Provincial 
 Secretary, the Honourable S. L'. Tilley, to proceed to England innnediately, U> 
 couftr with the Imperial Government on the Aubject of the profiuseti int«'rcolo- 
 nial Railway, and that I have accordingly granted him leave of iibsencf from the 
 Province for two months. 
 
 I have, See. 
 (signed) Arthur H. Gordon. 
 
 No. 13. 
 
 Lieut. General 
 Hun. A. H. Gor- 
 don to Duke of 
 
 Vewrattle, k.o. 
 13 Octol)er i86«. 
 
 )tia and New 
 
 )f CounciL 
 
 — No. 13. — 
 (No. 92.) 
 
 Copy of a DESPATCH from the Officer Admini-tering tho Govermuent, 
 to His Grace the Duke of Newcastle, k.g. 
 
 Government House, Halifax, Nova Scotia, 
 16 October 1862. 
 My Lord Duke, (Answered, No. 212, 3 November 1802, page 13.) 
 
 YoiR Grace has tdready, 1 am informed, been made aware, by his Excellency 
 the Governor General of Canada, of the result of the deliberations which took 
 place at Quebec last month, when the Lieutenant Governors of Nova Scotia and 
 New Brunswick, with certain delegates selected from the leading men of these 
 Provinces, assembled there for the purpose of iHsoussing the subject of the 
 proposed Intercolonial Riiilroad. 
 
 I conceive it, nevertheless, to lie my duty to transmit to your Grace a c )py of 
 the Resolutions udopted on that occasion, and to intbrm you, that as it has been 
 dctemiincd by the sister Provinces to send certain members of their Governme.t 
 to England, for the put pose of arranging with Her Majesty's Ministers the natuie 
 of the securities to be given to the Imperial Government, with ti view to uiiifor- 
 mily of legishitiou in all the Provinces, I have commissioned the Ilonour.ible 
 Joseph Howe to proceed to England, and to put himself in communication with 
 your Grace for that purjiose. 
 
 So much has already been written and said upon the subject ol tlie very great 
 importance of this line of railroad, and being fully aware of the favourable opi- 
 nion entertained by your Grace with reference to it, I feel I should only intrude 
 upon your time if I \yere to enter generally upon the whole (juestion ; but I 
 trust I may be excused in bringing to your notice the very essential benefit in a 
 military point of view which would be derived from its construction. 
 
 I would take leave to bring to your Grace's recollection the very great dif- 
 ficulty and enormous expense which was incurred in December last, wlniii I was 
 called upon to pass a force, consisting of upwards of 10,000 men, through the 
 Province of New Brunswick, along the frontier of the .Stale of Maine, into 
 Canada; which owing to a combination of favoumble circumstances was success- 
 fully per'brmtd, but which in a time of war could scarcely he accomplished at 
 all, and certainly not without great loss of life. 
 530. 3 3 -,. . . Although, 
 
 No. 13. 
 
 Major-OenenI 
 H Doyip to Doka 
 uf Newcastle, mAt. 
 16 October i86f. 
 
 
C^i^'o 
 
 
 12 CORRESPONDENCE RELATIVE TO A LOAN FOR 
 
 Altliougli, in the event of any rupture between Great Rritain ami the United 
 State?*, file Metii* Roatl is beinp |)rc|>arc<l for tlie |)urpns« of enabling troop to 
 proeeed to Canada during the winter, out of the reach of any hostile force, it 
 must be boine in mind that the risk of passing large bodies of men over it 
 during an inclement season would, aa in the former rase, be considenilile, the 
 delay unavoidably great, and the expense enormous ; whereas if railway eom- 
 nmnieatiun were once established, both troops and munitions of war could at all 
 times be rapidly and safely transported to Canada, and mutual military opera- 
 tions would thereby be vastly facilitated. 
 
 Under all these circumstances, the great advantage which would be derived 
 from the establisiimcnt of a railway such as is in contemplation (provided the 
 site be judiciously selected) cannot, in my opinion, be over-estimated. 
 
 I have, &c. 
 (signed) Hastings Doyle, Major-Genenl, 
 
 Administering the Government. 
 
 ,-1 
 
 In I 
 •10* * !' 
 
 Enclosure in No. 13. 
 
 V . 
 
 m 
 
 Memobandum. 
 
 End. in No 13. The undersigned, representing the three Govcrnmenta of Canada, Nova Scotia, and 
 New BninswicK, convened to consider the Despatch of his Grace the Duke of Newcastle, 
 of the 12th Aj>ril 1862, with reference to the Intercolonial Railway, having given the very 
 important matters contained in that Des]>atch their attentive consideration, are agreed, — 
 
 I. That whilst they have learned with very great regret that Her Majesty's Imi)erial 
 Government has finally declined to sanction the proposals made on behalf uf these Provinces 
 in December 1861, and at previous periods, they at the same time acknowledge the con- 
 sideration exhibited in substituting the proposal of " an Imperial guarantee of interest 
 towards enabling them to raise by public loan, if they should desire it at a moderate rate, 
 the requisite funds for constructing the railway." 
 
 II. That with an anxious desire to bind the Provinces more closely together, to 
 strengthen their connexion with the mother-country, to proniute their common commercial 
 interests, and to provide facilities essential to the public defences of these Provinces as 
 integral parts of the Empire, the undersigned arc prepared to resume, under the Imperial 
 guarantee, the liability for the expenditure necessary to construct this great work. 
 
 III. That the three Governments are agreed that the proportion of liability for the 
 necessary expenditure shall be apportioned as follows: viz., 5-1 2th8 for Canada, and 7-12th8 
 to be equally divided between tne Provinces of New Brunswick und Nova Scotia. 
 
 IV. But it is understood that the liability for principal and interest shall be borne by 
 each Province to the extent only of the proiwrtion hereby agreed upon. 
 
 V. That in arriving at this conclusion, the undersigned have been greatly influenced by 
 the conviction that the construction of the road between Halifax and Quebec must supply 
 an essential link in the chain of an unbroken highway extending through British territory 
 from the Atlantic to the Pacific, in the completion of which every Imperial interest in 
 North America is most deeply involved ; and the undersigned are agreed that to present 
 properly this part of the subject to the Imperial authorities, the three Provinces vrill unite, 
 at an early day, in a joint representation on the immense political and commercial impor- 
 tance of the western extension of the projected work. 
 
 ih. ]. 
 
 '.Jin ' ' 
 .0.: 
 
 (signed) 
 
 J. S. Macdonald, 
 L. V. Sicotte, 
 J. Morris, 
 W. P. Howland, 
 Wm. M'Dougall, 
 U. T. Testier, 
 That. D'Arcy M'Gee, 
 F. Eventurel, 
 Adam Wilson, 
 
 Joseph Hotce, 
 J. M' Cully, 
 William Annand, 
 
 S. L. Tilley, 
 W. H. Sleeves, 
 P. Mitchell, 
 
 Representing. 
 Canada. 
 
 Representing 
 
 Nova Scotia. 
 
 Representing 
 New Brunswick. 
 
 Quebec, 12 September 1862. 
 
 m\ 
 
FOR 
 
 nil] tlie United 
 Wing troops to 
 lostile I'orce, it 
 )t" men over it 
 isitlcnilile, the 
 f railwa}' eom- 
 .iir could at all 
 nilitary opera- 
 
 dd be derived 
 (provided the 
 ed. 
 
 jeiieril, 
 jovernment. 
 
 ^ova, Scotia, and 
 ke of Newcastle, 
 ig given the very 
 1, are agreed, — 
 
 [ajestyV Im])erial 
 r tlieae Provinces 
 owledge the con- 
 antee of interest 
 a moderate rate. 
 
 lely together, to 
 imon commercial 
 ese Provinces as 
 tder the Imperial 
 lat work. 
 
 liability for the 
 loda, and 7-12th8 
 a, Scotia. 
 
 shall be borne by 
 
 tly influenced by 
 ebec must supply 
 British territory 
 perial interest in 
 d that to present 
 (vinces will unite, 
 ammercial impor- 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICA). 
 
 ..; I onhrrnco ..f thr n,.l,.p,.t. , of AWa Scotia and A<w 
 llriinsick uiul the (ji.vcrumoiit ct Cinndn. 
 
 Memobandim iigncd iit til.' {'.ml' 
 
 Ilr, 
 
 I. If it .l«..uia 1.0 r..,u.|u.lHl that thf work .hall be conMructo.l and ma.mL-.Hl l.v a joint 
 ™,m.«..on ot tho thr..,. Provnce. it .hall I,.. oo„,titut.d i„ th,- ,.ro,K,r..o., ofuv.,,.L.int."l 
 
 Conimi8»>i 
 
 bv the (invtrniiuiit ot' Ciiiiiiiln unci on.' .iicli 
 Brunswick— the f..ur to solpct u tiitli Let'.. 
 
 |>ro|K)rli.in ort\v..!i|>|M.int<><l 
 y th.' Gov.rnmcnt* of Nova S<i.tiii nml New 
 re entering uiKin the dischargi- of thoir «luti*«. 
 
 H. That ajoint dii..j.rati,,n i.r cd with «.h little Im of time a» iw^Mble f.. EnRlan.!, to 
 
 arraiigc with the Inii.,nu G..vertuncnt the terms of the l.«n«. the nature of the •ecuritiM 
 rerjmre.!, thr am-.unt.. to I.e puid tor the tnin.|H)rt of tro,.].* and mail., and. if i«wible. to 
 obUm a mo< iheatiun o( the ternw proi«,»c(l, to the extent of the intercit accruing durinjt 
 the construction of the work. '^ 
 
 III. That no surveys he authorised until the law* contemplated shall have been i.aMcd. 
 d tlie joint commissioners anix.inted. 
 
 an 
 
 IV. That any profit or loss, after paying workmg expenses, shall b« divided in proiK)rUoa 
 
 to the contril.utions of the several Provinces. 
 
 y. That such p<.rtions of the railways now owned by the Qovcmmentt of Xova Scotia 
 and Aew Brunswick, which may he rcijuireil to form jiart of the Intercolonial Koiul. shall be 
 worked under such joint authority as may be ap|M)inte<l by the three Provinces. That tho 
 rates collect, d shall he uniform over each re»|»eetivu portion of tlie road. That all mX gain 
 or loss resulting from the working and keeping in re|«ir of any |>ortion of the road c.in- 
 Btructed by Nova Scotia or New Brunswick, and to h" used as a part of the Intercolonial 
 Radwii^, shall lie received and home by the said Provinces respectively; and the surplus (if 
 any), alter the payment of interest, shall go in abatement of interest on the whole line 
 between Halifax and Riviere du Lou].. 
 
 VI. That Crown-lands required for the line or for stations shall be provided by each 
 Province. 
 
 (signed) T/ioma* D'^rcy A/ Cte (for CanaUa). 
 Joseph Howe, 
 S.L. Tilley. "' 
 
 Memorandum. 
 
 The Delegates from Nova Scotia and New Brunswick and the Government of Canada, 
 having under consideration the Report of the Honourable the Finance Minister uf Canada, 
 of the 8tli September instant, im the subject of intercolonial reciprocity, agree — 
 
 I. That the free interchange of goo(ls, the growth, produce, and manufacture of tho 
 Provinces, and uniformity of tariff, are considered to be an indispensable consequence of 
 the construction of the Intercolonial Railway. 
 
 II. But that in consetiuence of the recent diminution of the revenues of the respective 
 Provinces, arising out of the war in the neighbouring Republic, and the increased liabili- 
 ties incurred by tlie additional obligations necessary to the constructii.n of the projMtscd 
 road, the Delegates from New Brunswick and Nova Scotia regret that they are not at 
 this moment in a position to adopt measures to carry this imixirtant principle into practical 
 effect. 
 
 (signed) J. 6'. J/acf/o«aW (for Canada). 
 Jotenh Home, 
 S. L Tilley. 
 
 ttl 
 
 Representing. 
 Canada. 
 
 Representing 
 Nova Scotia. 
 
 Representing 
 few Brunswick. 
 
 - ; No. 14. — 
 
 (No. 212.) ^ ; 
 
 Copy of a DESPATCH froin His Grace the Duke of Newcastk, k.o. 
 Officer Administering the Government of Nova Scotia. 
 
 to the 
 
 Sir, Downing-street, 3 November 1862. 
 
 I HAVE the honour to acknowledge the receipt of your Despatch,* No. 92, of 
 the 16th October, forwarding memoranda agreed to by the Delegates uf Canada, 
 Nova Scotia, and New Brunswick, at the late Conference held at Quebec on the 
 subject of the Intercolonial Railway. 
 
 I have, &c. 
 .;,., ■ (signed) Newcastle. 
 
 No. 14. 
 
 Duke of Seaxaillr, 
 K.O., to the Gover- 
 nor of NoTii Scotia. 
 3 Nov. l8(ii. 
 
 •Page 11. 
 
 530- 
 
 B3 
 
c^t% 
 
 >4 
 
 CORRESPONDENCE RELATIVE TO LOAN FOR 
 
 
 No. 1. 
 Tit mvr j Memo- 
 fMdum. 
 
 't. 
 
 m 
 
 6; 
 
 -;-'^' II. , • • ; ] 
 
 The following AJeinoraiidum was prepared at the Treasury, expUmatory of Ihe 
 termt on which Her Majesty's Government could concur, subject to the sanction of 
 Parliament, in the proposed plan of assistance to the construction of the Inter- 
 colonial Railway. It was communicated, on the 13M December 1862, to the 
 Delegate* of Nova Scotia and New Brunswick, the Canadian Delegates being at 
 that time absent at Paris. 
 
 — No. 1. ~ 
 
 "^'•^ Treasury Memorandum. »* 
 
 It is proposed, — .^ . .,, ',, 
 
 1. That Bills shall be immediately submitted to the Legislatures of Canada, 
 Nova Scotia, and New Bruusnick, authorising the respective Governments to 
 boi-row 3,000,000 /., under the guarantee of the British Government, in the 
 followii,fr proportions: — 5-tweIftTis, Canada; S^-twelfths, Neva Scotia; 3J- 
 twelfths, New Brunswick. 
 
 2. But no such loan to be contracted on behalf of any one Colony until cor- 
 responding powers hive been given to the Governments of the other two Colonies 
 concerned, nor unless the Imperial Government shall guarantee payment of 
 interest on such loan until repaid. 
 
 3. The money to be applied to the completion of a Railway connecting Halifax 
 with Quebec, on a line to be approved by the Imperial Government. 
 
 4. The interest to be a first-charge on the Consolidated Revenue Funds of tlie 
 different Provinces, after the Civil List and tlie interest of existing debts, and as 
 regards Canada after the rest of the six charges enumerated in the 5 & 6 Vict. 
 c. 118 and 3 & 4 Vict. c. 35 (Act of Union). 
 
 5. The Debentures to be in series as follows, viz. :— 
 
 £. 250,000 to be payable 10 years after contracting loan. 
 ; ' , £. 600,000 „ 20 years „ » 
 
 £. 1,000,000 „ 30 years „ „ 
 
 £. 1,250,000 „ 40 years „ „ 
 
 In the event of these debentures, or any of them, not being redeemed by the 
 Colonies at the period when they fall due, the amount unpaid shall become a 
 charge on their respective revenues, next after the loan, until paid. The principal 
 to be repaid as follows : 
 
 First decade (say 1863 to 1872 inclusive), 250,000 I. in redemption of the first 
 series, at or before the close of the first decade from the contracting of the loan . 
 
 Second decade (say 1873 to 1882 inclusive), a sinking fund of 40,000/. to be 
 remitted annually, being an amount adequate, if invested at five per cent, com- 
 pound interest, to provide 500,000 /. at the end of the decade ; the sum to be 
 remitted annually to be invested, in the names of trustees, in Colonial securities of 
 any of the three Provinces prior to or forming part of the loan now to be raised, 
 or in such other Colonial securities as Her Majesty's Government shall direct and 
 the then Colonial Governments approve. 
 
 Third decade (say 1883 to 1892 inclusive), a sinking fund of 80,000/. io be 
 remitted annually, being an amount adequate, if invested at five per cent, com- 
 pound interest, to provide 1,000,000 /. at the end of the decade ; the amount when 
 remvted to be invested as in the :ase of the sinking fund for the preceding 
 dec. de. 
 
 Fourth decade (say 1893 to 1902 inclusive), a sinking fund of 100,000/. to 
 be remitted annually, being an amount adequate, if invested at five per cent, 
 compound interest, to provide 1,260,000 /., being the balance of the loan at the 
 
 end 
 
*^ 
 
 tory of the 
 sanction of 
 ' the Inter- 
 )62, to the 
 es being at 
 
 }f Caiiuda, 
 rnments to 
 !nt, in the 
 icotiu ; 34- 
 
 until cor- 
 vo Colonies 
 jayment of 
 
 ing Halifax 
 
 'unds of tlie 
 
 bts, and as 
 
 & 6 Vict. 
 
 led by the 
 
 become a 
 
 le principal 
 
 of the first 
 
 the loan. 
 
 00/. to be 
 
 cent, com- 
 
 sum to be 
 
 ecurities of 
 
 be raised, 
 
 direct and 
 
 )0 /. io be 
 
 sent, com- 
 
 ount when 
 
 preceding 
 
 9,000 I. to 
 per cent. 
 }an at the 
 end 
 
 AM INTERCOLONIAL RAILWAY (NORTH AMERICA). ij 
 
 end of the tifcade. Tliis amount, wlien nmittcd, to be investiil oa in ihc pre- 
 cedini; decade. 
 
 Shouiil llie sinkiifr fund of any decade produce a surplus, it will go io the 
 ci.dil of tlie next dicade; and in the last decaile the sinking fund will be 
 remitted or reduced ateordiutjly. 
 
 It is of course understood that tlie assent of the Treasury to tliese armngo- 
 0Mnt8 presuppo-cs adequate proof of the sufficiency of the C'olonial revenues to 
 meet the charges intended to i)e imposed upon them. 
 
 6. The construction of the Railway to be conducted by five Commissioners, 
 two to be api)ointed by C 'uada, one by Nova Scotia, and one by New Bnms- 
 wick ; these four 10 choose th^ remaining Commissioner. 
 
 7. Tile preliminary surveys to be etfected. at the expense of the Colonies, by 
 three engineers and other officers nominated, two by the Commissioners, and 
 one by the Home Government. 
 
 8. Fitting provisiim to be made for carriage of troops, &c. 
 
 0. Parliament not to be asked for this guarantee until the line and surveys 
 shall have been submitted to and approved of by Her Majesty's Government, 
 and until it shall have been shown, to the satisfaction of Her Majesty's Govern- 
 ment, that the line can be constructed without further application for an Imperial 
 guarantee. 
 
 Canada, New Brunswick, and Nova Scotia Intercolonial Railway Loan. 
 
 lit Decade. 2d Decade. 3d D'-nade. 4th Decade. 
 
 Canada : 
 
 To pay annuallv for interest . - . - 
 At the end of the first 10 years a principal gum 
 
 of. - ... ... 
 
 And after the first 10 years a ainking fund, per 
 
 annum - 
 
 Per annum - 
 
 £. 
 
 And at the end of first 10 yeaw a principal 
 gam of •-••-- - 
 
 New Brukswick ; 
 
 To pay ai\;iually for interest . . . - 
 At tne'end of the first 10 years a principal sum 
 
 of 
 
 After the first 10 years a sinking fund, per 
 
 annum 
 
 £. 
 
 50,000 
 
 104,593^ 
 
 00,000 
 104,5681 
 
 Per annum - - 
 
 £. 
 
 And at the end of first 10 years a principal 
 sum of ---••-" 
 
 33,000 
 
 75,708j 
 
 35,000 
 72,708i 
 
 £. .€. £. 
 
 45,833j 37,000 20,S33^ 
 
 16,Qe6§ 3a,833i 41,060j 
 
 62,000 7(i,833i 02,000 
 
 32,083i 
 
 ll,666<f 
 
 43,750 
 
 Nova Scotia: 
 
 To pay anuuallr for interest . - - - 
 At the end of the first 10 years a principal sum 
 
 of - - 
 
 After the first 10 jeari a sinking fiind, per 
 
 annum .,.-.-•- 
 
 Per annum • - • £. 
 
 And at the end of first 10 years a principal 
 sum of -•--••• 
 
 35,000 32,083i 
 
 72,708 J I — 
 
 11,0063 
 
 26,200 
 
 23,833^ 
 
 J 0,583 j 
 
 14,5H3i 
 
 2U,I«6§ 
 
 13,750 
 
 30,000 43,700 
 
 79,708} I — 
 
 20,200 14,583^ 
 
 23,833} I 20,1063 
 
 40,083} 48,7 
 
 <i<^ 
 
 530. 
 
 B4 
 
mm ^^ 
 
 iti 
 
 CORRESPONDENCE RELATIVE TO LOAN FOR 
 
 l^ 
 
 i 
 
 
 No. 2. 
 8. L. '1 illc.v, £iq., 
 to Sir ( . linger*, 
 Bart. 
 i3Dec(.-iul>«ri86a. 
 
 'V' 
 
 
 , — No. 2. — ■" 
 
 S. L. Tilley, Es<i., to Sir Frederic Rogers, BarL 
 
 Dear .Sir, London, 13 December 1862. 
 
 As I inii!«t return lionie by tliis night's mail, Mr. Howe and I have anxiously 
 conferred upon tlie dral't oi tliu Treasury Minute read to u^ thi» morning. It 
 accurately ut !»i:iibi's the terms proposed to llie Delegates in the various interviews 
 with which wu have b.cn honoured by his Grace the Colonial Secretary Olid the 
 Right tloiioiirabie ttie Chancellor of the Exchequer. 
 
 As I understand the matter, the Delegates have obtained the assent of Her 
 Majesty 'h Government to every proposition they submitted, and there is no differ- 
 ence of opinion except on the single point of tiio sinking fund. 
 
 As the Intercolonial Railway is a work in which the Imperial and Colonial 
 Governments are assumed to have a joint interest — as in the Provinces we regard 
 it as indispensiible to national defence and to the transportation to this 
 country in winter of breadstufl's, in case war with the United States should ever 
 arise, I hope that Mr. Gladstone may be induced to reconsider the matter of the 
 sinking fund, and trust that the Cabinet may be enabled to convince Parliament 
 that, under all the circumstances of this peculiar case, a sinking fund should not 
 be insisted upon. But if it is, Mr. Gladstone having consented that this sink- 
 ing fund may be invested in our own or other Colonial securities, 1 will not 
 assume the responsibih'ty of perilling or delaying this ifreat enterprise Ijy re- 
 jecting what (he Chancellor of the Exchequer and the Cabinet may regard as an 
 indispensable condition. 
 
 I have, &c. 
 (signed) S. L. Tilley. 
 
 No. 3- 
 Meun. Sicotte & 
 Howland to HU 
 Grace the Duke of 
 Newcastle, k.o. 
 
 — No. 3. — - 
 Messrs. Sicotte if Howland to His Grace the Duke of Newcastle, k. o. 
 
 The u.v.dersigned, representing the Government of Canada, as Delegates 
 specially deputed to arrange with the Imperial Government the terms of the 
 loan to be effected upon the Imperial guarantee offered, as well as the nature of 
 the security, concerning the construction of the International Railway between 
 Halifax and Quebec, have the honour to submit to your Grace the following 
 Memorial. 
 
 On the part of the Government of Canada, they must again assert — what has 
 been admitted at every period of the negotiations both by British statesmen and 
 by Colonial Governments — that the construction of a Railway connecting the 
 British North American Colonies ought to be regarded as a matter of Imperial 
 concern, and, to use the words of the late Colonial Minister, as a great national 
 road. 
 
 A brief review of the opinions expressed by public men, and of the views enter- 
 tained by the different Governments of Great Britain and of the Colonies since 
 1839, is perhaps necessary now, to explain fully the conditions proposed on the 
 part of the Imperial Government as well as on the part of the Colonial Govern- 
 ments. 
 
 In 1830, Lord Durham, in an answer to the Secretary of State for the Colonies, 
 instructing him to turn his attention to the formation of a road between Halifax 
 and Quebec, in connexion with the determination of the Imperial Goverment to 
 establisli steam communication between the former port and Great Britain, strongly 
 recommended the construction of a railway between the two cities. 
 
 During Sir Robert Peel's Administration, in 1843, they caused a survey of a 
 military road, but, when nearly completed, it was abandoned by the Imperial 
 Government in favour of railroad. 
 
 In 1846 Mr. Gladstone, thin Colonial Secretary, organized a survey for the 
 Railroad at the joint expense of Canada, New Brunswick, and Nova Scotia, and 
 the Imperial Government. 
 
 Major Robinson, in his report, expresses himself as follows, as to the nature 
 
 and 
 
n 
 
 AN INTER( OI.OMAI. RAILWAY (NOUTII AMEHICA). ,7 
 
 and ol^ject of fuel, a Kuilroa.1 : "In a poLticIuml n iliiars |>..int .,f view, tlx- pro- 
 
 "It IS most (•N,ential that the Motli.T C'.iuntrv sliouM Iv iil>|,. to kr, t, ui. 
 the coTnm«inicatiaii with the ( aiiadas nt ..11 time'* an.) all sciisonv ll„J,v,'r 
 powcrlul En^ian.l iiiay Im« at «.a. no navy couM »i,%c Caiia(ia from a luii.l 
 force. 
 
 " Weakness invitis an^rossion, and as tiie Uailroad wouM lie a 1»V( r of |M»v,cr 
 by winch Great Urilain eouLI hrin^' h.r stfinpth to luiii in tlir con,.«l, it i- not 
 improhable that its ronstniction would be the nuan^^ of riievtiitin.' a war at ^oM.e 
 more disttmt |Kriod." 
 
 Tlic expeiiseol'one y<ai'swar«ouUI pav tlieexpon-'e lor a R;iilwav two or three 
 times over. 
 
 In 1848, Earl Grey, in traiisn.itling the report of .Major Uohinon t;. L ml 
 Eljzin, Slated in hi:j Despatdi :— 
 
 "I have perusi'd this able document witii the interest and aitin'.ion it >o will 
 merits, and I have to convey to you the nssurance of Her Majists's Gov, rnmiiii 
 that we fully appreciate the importance of the pniposed nnderiakin-, and enter- 
 tain no doubt of the great advantaj^cs which would rcrult, net only to tlie 
 Proviiices interested in the work, but to the empire at large, Irom tli lon- 
 struction of such a Railway; but, great os these advantages would !).■, it i. im- 
 pos.Mhle not to he sensibh; that the obstacles to be overrom ■ in providinj; f r 
 so large an expenditure as would be thus incurred would be ol a very loimiriahlf 
 kind. 
 
 " Before, therefore, Her Majesty's Guvernment proceed to consider the (jik'S. 
 tion as to whether any steps should be taken to carry this plan into eilect. it i< 
 necessary that we should be inl'onnol how the several I'rovim es would bv pre- 
 pared to co-ope rato in its execntion." 
 
 Lord Elgin declared in his answer to that D. spalcli : 
 
 " It is obvious, tiiat as soon as IlailwdV eomniunication iscxtendi d iliroughout 
 the Provinces, a smaller military force tiian is now requisite will sullici' for iheir 
 protection. 
 
 " But, looking to the anxiety which your Lordslii|) has repeatedly t'xj)ressed, 
 that a diminution in the expenditure incurred by (Ireat Britain on tlii< iiccoimt 
 should be effected at the earliest period, I am prcpiircd to jro a step tunh,r in 
 this direction, so confident am I that the mere undert ikiiig of the work in (jues- 
 tion will tend to raise tlie Colonists from the despondency into which recent 
 changes in the commercial policy of the empire has plunged them ; to imite the 
 Provinces to one another and to the Mother Country, to inspire them with that con- 
 sciousness of their own strength, ami of the value of the connection with Great 
 Britain, which is tlieir best security against aggression, that I would not hesi- 
 tate to recommend that an immediate and considemble reduction should take 
 place in the force stationed in Canada, in the event of the execution of liiu Quebec 
 and Halifax Railway being determined on." 
 
 In 1851, Lord Stanley, in the House of Lords, rcviewinfjf tlie sclieine pro- 
 pounded by Earl Grey, stated in a speech, which was accepted !»} the (oh nies 
 as the expression of the ojiinions and feeliniis of the people of Eiialand : " We = 
 hold, therefore, that the establishment for a line of conunnnicutidn hetwem i 
 Halifax ami Quebec, for a distance of about 700 miles through an exclusively | 
 British territory, rendering two points and two points essential lor tiic power of 
 this country, which an; now separated by a vast extent of wilderness 111 the one 
 side, and by a difficult, and for a great portion of the year, frozen coast on the 
 other, renderin<; their communication from being what they now are, most 
 uncertain, most difficult, and most dilatory, rendering it rapid, easy, and eon-tant ; 
 that, he said, was an object in itself of primiiry importance to tlie interests and 
 to the Imperial power of this country on the Continent of America. 
 
 " But it was also a matter of incalculable importance that we should open to 
 
 the teeming thousands and millions we were pouring out from this country, 
 
 where they were unable to obtain a livelihood, that we should open to them in a 
 
 healthy climate, and within a very limited distance from our ow n shores, whicli 
 
 530. C ditl 
 
 I 
 
 k\ 
 
r.^">' 
 
 ^^ 
 
 IK 
 
 lC)UKt:SI'ONDEN(i: lU'IwMIVi: lO A LOAN Fo:» 
 
 i:i 
 
 i m 
 
 
 m 
 
 (litl iiiiiexoi-<l a 11 )l<iyt' puoHau*' I'V stiiiii, niai tlic rapidity of tliut tiuasi>i;e wus 
 cviry iliiv iticniinini; ; it wiu ol ilic hiKiii-bt iin|><)it.in(f, wlu-tlicr wt; luokt'd at it 
 ill Mtropiiii;^ a rrlit'f tor otir pauptriMii, ur mi iiicrt'a>e of our power iti lliosu 
 rc^i'iiiK, tliat Viv lind 11 or 12 tinllions of acM of mix cciipud lands fertile uu<] 
 poMfic'~H< d lit' pn it iiilni-ral wtalth, and whicii ut tlic Siinic time would lie the 
 iritMiis ( t lAii'iiiliii'; (iiir military imucr ami M'curini; tlic |) rmaiu'iicc of uur 
 (•mpir«! in America, 'lii.:* "a^ no uriiinary r.st; of a H.iilw.iv project win n; t!,o 
 (|nc*ti()n viTv prop' ily might l>i.', wonld tliv line pay or not ! liut it i« a Itaiiway 
 Mhich.i'Vcn in a ptfiiniaiy sciisi-, lie had sanguine ixpcctation^ would pay itthoy 
 took into con iiii'iatiiui not nurdy llic triffic on tliu KaiivNay. Imt the a<ljiincts 
 lh<-y would lairt' hy tiiv foiination ol it. Hut ho 8aid if it »uiiltl not pav I v. for 
 tin; loo/, ill a pi-ciininry point of vitw for tlic next 10 y<'ar^ to coum', tin- into- 
 pusition of tlii-^ country, lut fur th.' piir]Mse of lnvolvill^ itvlf in an enorm'>ua 
 umi ni'cilhss ( .\])iii«f, hut for the purpose of nitliny; with it« credit, if i.of hy 
 more than its credit, those who were anxious to the utmost of tii-'ir power, 
 nnd evm lnyond their power, not for a T c.il hut lor nn ImjH-iial ohjict, this was 
 u suhjcci well worthy of the consideration of the Imperial Parliament, and wus 
 not to he looked upon m a matter of pound'', shillings, and pence. 
 
 " Now he felt that to ;;rant our aid was a wise, n sound, and even nn econo- 
 mical corns ■ in the end, e\eii though in the first instance it would involve an 
 outlay; and suie he was that it would cnnftr immense henetits on the Colony, 
 and h( stow incalculable advantuges on this country it:>flf, and confirm its ter- 
 ritorial jiower in North Ainerieu. 
 
 " And if the noble lijirl would only say which course lie should be jirepared 
 to take, and it the Government would give any s<4nction and assistance for tiic 
 execution of what tliese Colonies could not accoinplisli unassisted, although lio 
 l)elievi>d a com|i iratively small aid on tlic part of tlie Gover.imcnt, or its liberal 
 guarantee for the capital recpiired, on account of which guarantee they would 
 never be called upon to pay a single shilling ; such an amount of assistance from 
 the Government, Jic firmly believed, would eiialde the great work to be carried 
 to a successful completion, and ecpially certain he was that unless our Govt rn- 
 nient and our Parliament did interfere, these advantages would be imkfinitely 
 postponed, the c iinmuiiication between two most important points would be per- 
 manently cut off, the stream of emigration would continue to be directed, as it 
 was now directed, from this country and Ireland, not to our own Cohmics but to 
 the territories of the United Statts ; the communication between Halifdx and 
 Quebec would ultimately be through the United States, be wholly dependent 
 upon them, and liable at any moment to be cut ofl' in the case of hostilities, 
 while the United States would be able to reap all the advantages of the transit in 
 times of peace. 
 
 " Now we had tlie option whether we should give to the Ur.il^d States these 
 great advantages, and at the same lime deprive the subjects of this country of 
 the opportunity of receiving a useful and most valuable population settling in 
 our Colonies, and by their emigration relieving the overburdened Mother 
 Country of its surplus labour, or whether we would by a prompt and liberal 
 course of action, which would ultimately cost us nothing, enable our dependencies 
 to cC'Tiiplete that which would cement a stronger union between our North 
 AniCiliin pr • essions, and to teach them to feel that they were regarded by the 
 Imperial Governmen'- and Parliament as an integral portion of the Empire." 
 On file ether hand, wf; beg to recal to your Grace's recollection the fact that — 
 
 The 'jegislature of the Colonies and their Governments have always repre- 
 sented the road as a necessary means for the defence of the country, and as a 
 work of national concern. 
 
 "On the Cth January 1849, the Legislative Council of New Brunswick passed 
 a series of resolutions from which the following extracts are made : — 
 
 " Viewing the relative positions of the North American Colonic.-, and the 
 great importance, in a national point of view, of improving the facilities for 
 mutual intercourse, we consider it a matter of the greatest moment for the per- 
 manency of British interests in this Continent that a Railway should be laid 
 down to connect the Lower Provinces with the interior of Canada. 
 
 " We believe that no measure can be devised which will so certainly consoli- 
 date the Colonies and perpetuate our connection with Great Britain ; while 
 without it we fear that our position as Colonies will be of short duration. 
 
 " We think the plain broad question on this subject is, ' Do the people of 
 
 En^and 
 
lit |)b9iH^((e wns 
 M- iuukt'd at it 
 
 lOWlT ill |I|0«(! 
 
 lis fertile- and 
 J wuiilii l>e till! 
 laiifnco of our 
 ijci't will ri; t!.i; 
 it i* a Kail way 
 iild P'ly it' tlipy 
 it tlic ailjuiicts 
 not pav 1 V. for 
 )iiic, tlic iiitii- 
 1 ail enorrn'Mib 
 (lit, if !;of hy 
 r tii'.*ir power, 
 ibjt ct, tliiii was 
 tneut, an<l was 
 
 I'veii nn icono- 
 uld involve an 
 )M thu Colony, 
 [infirm its tcr- 
 
 il be |jri'j)nrud 
 istance for tlie 
 1, although he 
 , or its liberal 
 ee they Mould 
 issi.staiice from 
 k to be cirri ed 
 .s our GoviTii- 
 bc inilefinilely 
 would be |)er- 
 directed, as it 
 ^.'olonics but to 
 n Hulifdx and 
 oily dependent 
 ! of liostilities, 
 t' the transit in 
 
 ^d States these 
 this country of 
 ion settling in 
 dened Motlier 
 pt and liberal 
 r dependencies 
 en our North 
 giirded by the 
 
 the Empire." 
 e fact that — 
 
 always repre- 
 ntry, and as a 
 
 jnswick passed 
 
 onie.-, and the 
 le facilities for 
 Jt for the per- 
 ihould be laid 
 
 'tainly consoli- 
 Britain ; while 
 ration. 
 
 the people of 
 En^and 
 
 AN INTRmoi.ONlA! H.MLWAY (NORTH AMKIUlA) 
 
 '^3 
 
 lUv 
 
 Knglind m i»h lo rou.n th.- X,.rth Am..r,c.m < oluu.ct or not r ' |, ,|., , ,\„ 
 
 Jrunk Kailway I. .ndiHp,.,,»..bl... uud »,ouid !«■ c.ni.l. •.•.! ,.t any ,■.„, ■ 
 
 a. Jollll?!!" '-■ "*■'" "" '•''8'»'-'"^'-" >^o^-^^<->i''^ ad.lrm...l Ih-rMaj-u 
 
 •' This Kuat cntorpri... of National, no If., thun (olonud ini.K.rt.n... 1..,h 
 
 Wn tl.rnu,:;!, inany y-ars pre-, el upo„ ,1... ,• |,,,„i.,„ „, ylar \ a ,' J . 
 
 (lovtitinicnt. ' " • 
 
 •' Tiie biiufiih of the .nea3..r.>, both i„ it, National and Col .niul r lati.m^ a-r 
 nrknowlid;;((l. •• , » x 
 
 •• Till- ^ri^raoti. Moik l,a* i...en farilit .t. d l.v lb, rtforis a-.d .•xi.,n,li.„r.. of tb. 
 J royiufo, but its a,r,Mn|,l..hn..nt is beyond tbeir unaid-d rem.iirn*. on ! on ili< 
 fftciint HSHistanie of \ our Majesty's Covornment d. p.-nd« the irrwit result." 
 
 llic 
 
 .•gr 
 iwiii'.: Ui>Mliiti>iiis 
 
 III J8.'i«, the I.ei>i.lafMr.' orCaind,. pm^.-d t]\<- f,dl.i 
 
 • '■ " Jl!'" ''','. '^^•'"** ""■''"" "'■ "» Inten-ol .iiial R.iiKvav. roniurtln-,' tbr I'ro- 
 vinoisol N,w Mnin^wi.k a .1 Nova Sctia with (^.iiada.ba* lon^' been r.^ardtd 
 as a niatliM- of nniional eoncern. and oiij-bt larii.^th t) be pr. ^..-d on tbe con- 
 Mdciatiim ol the Iiiiiiciial (lovcnniiMit. 
 
 •2. •'That, during several months of iju; ve,r. intercourse b iwein tb.- United 
 Kuiiidom and Canada ran only !>.• eani.d on llir.aiph lb- t.-iritorvot tl„' Unittd 
 States ot Ainiri.a. and that snib dcii.iid.ine o:i. and exiliiMve r.'i itions with a 
 for.'iLMi eoiintry canno! .veii in time (,f p.ace. but exereis.- an iinporiuMt and 
 nnwiiolcs inie inllumee on the State of Canada a- a portion of tb.' Knipire, and 
 may tend to e-tablisli elsewh.re that id. ntity of interest wliiih out;bt lo exist 
 between the Motlier Country and h r Colonies. 
 
 3. "That while tbe Housu implicitly reiies on the repeated iis^iiranee of the 
 Imperial (jovernment tliat till' stri'n.;tli of tiie Knipire would lie put forth to 
 secure this province against external aggression, it is convinced tliat f.uc!i stn-ngth 
 etinnot be sullieiently exerted .luriiiir a large portion of the year from tlie absence 
 of stiflieient means of eominunicatioii, and tlint should tbe amicable relations 
 which at present so happily exist between Cr.at Britain and the I'nited States 
 be ever distnrbeil, tlie diffieidty of access to the ocean during the winter months, 
 might serieusiy endanger the safety of the province 
 
 4. "That in view of the speedy opining np of the territories now occujiied by 
 the Hudson Bay Coinpany, and of th" develoi'inent and >elllenienl of llie vast 
 regions lutweeii Canada and the Pacific Ocean, it is essential to the inter, sts of 
 the r.mpire at large that a highway extending from the Atlantic Ocean, westward, 
 should exist, which should at once place the whole British possessions in America 
 within the ready access and easy protection of Oreat Mritain, whilst by thi; 
 faciliti.- for internal communication thus afl'irded, the prosjierity of those great 
 <!e|iendencies would Ik promoted, tlKsir strength eonsolid.itcd and added to the 
 strength of the Empire, and their permanent union witii the Mollier-Counfry 
 secured.'' 
 
 In 1861 tbe Colonies pressed again upon the Inipnial Government the 
 advantages and necessity of constructing the Railway. 
 
 'i heir delegates strongly urged that — 
 
 " Without that road the (U'ovinces are dislocated and almost incapable of 
 defence fur a ^jreat portion of the year, except at such a sacrifice of life an I pro- 
 perty, aiiu such liii enormous cost to the Mother Country, as makes tlu- small 
 contribution sink in') insignilicance. With that Railroad we can concentrate 
 our forces on iIh- nn laced parts of our frontier, guard the citadels and works 
 which liav> bei n c;>,;ted by (irent ilritain at vast expense, cover our cities fi-oin 
 surprise, aii<l hold one own till reiuforceiiunts can be sent across the .sea ; while, 
 without the Railway, if an at'ack weie made in wint(!r, th.' .Moth.'r C luntry could 
 put no army worthy of tbe national honour, an 1 idecjiial^' to the existence of the 
 Canadian frontier, witlmut a pisitivi? waste of trc.t-nre far greater than tbe principal 
 of the sum the interest of which she is asked to contribute, or rather to risk. 
 
 "The British Government have built exjicnsive citidels at Halifax, Quebec, 
 and Kingston, and have stores of munition- and warlike materials in them; but 
 their feeble garrisons will be inadequate for their defence, unless the provincial 
 forces can be concentrated in and around th-m. An enterpri.-.iug enemy would 
 carry tlieni by coups de main before they cuuld be reinforced from England, and 
 
 /530. »» - once 
 
\-^' 
 
 80 
 
 CORRESPONDENCE RELATIVE Tl) A LOAN FOR 
 
 '>n 
 
 i 
 
 once takcD the ports and roadsteads which they Iiave been erected to defend, 
 would nut be over-safe for the naval armaments sent out too late for their relief. 
 " That the subject should be looked upon and deult with mainly to the con- 
 sideration of permanent connection between Great Britain and the provinces, and 
 the relative positions of England and the United States, in the event of hostilities 
 between them." 
 
 The Imperial Government gave a final answer to all these demands and con- 
 siderations, by the Despatch of your Grace of the lath April 1882, in which your 
 Grace 9ay^s, — 
 
 •' I much regret to inform you that after giving the subject the best considera- 
 
 i tion. Her Mjyesty's Government have not felt tliemsclves at liberty to concur in 
 
 i this mode of assistance. Anxious, however, to promote, as far as they can, the 
 
 j important object of completing the great line of Railway communication on 
 
 I British ground between the Atlantic and the westernmost parts of Canada, and 
 
 f to assist the provinces in a scheme which would so materially promote their 
 
 i interests, Her Majesty's Government are wiUing to offer to the Provincial 
 
 Governments an imperial guarantee of interest towards enabling them to raise 
 
 by public loan, if they siumid desire it, at a moderate rate, the requisite funds 
 
 for constructing the Railway." 
 
 The Colonies held, in consequence, a conference at Quebec in September, and 
 then by their delegates agreed, — 
 
 { 1st. " That whilst they had learned with very great regret that Her Majesty's 
 
 I Imperial Government has finally declined to sanction the proposals made on 
 
 j behalf of t'lese provinces in December 1861, and at previous period4, they at 
 
 I the same time acknowled;:ed t!ie consideration exhibited in substituting the pro- 
 
 • posal of an Imperial guarantee of interest towards enabling them to raise by 
 public loan, if they should desire it, at a moderate rate, thu requisite funds for 
 
 ' constructing the Railway." 
 
 2d. "That with an anxious desire to bind the provinces more closely together, 
 
 ^o strengthen their connection with the Mother-Country, to promote their co mmon 
 
 .• commercial interests, and to provide facilities essential to the public defences of 
 
 I these provinces, as integral parts of the Empire, the undersigned are prepared 
 
 \ to assume under the Imperial guarantee the liability for the expenditure necessary 
 
 to construct this great work. 
 
 3d. " That, in arriving at this conclusion, the undersigned have been greatly in- 
 iluenced by the conviction that the construction of the road between Halifax 
 and Quebec must supply an essential link in the chain of an unbroken highway 
 extending through British territory from the Atlantic to the Pacific, in the com- 
 pletion of which every Imperial interest in North America is most deeply in- 
 \ volved." 
 
 " The Colonies have declared their willingness to assume the whole liability of 
 the cost of the road, provided they are assisted in raising the requisite funds for 
 its construction at a moderate rate of interest by the Imperial guarantee. It may 
 fairly be said that the proposal now is, not of a loun of Imperial monies to the 
 Colonies loi "Colonial purposes only, but of a mode involving no actual liability 
 to the Imperial Government, to facilitate the construction of a great national 
 work in the interest of the Empire, as well as of the Colonies. 
 
 The only question involved, as regards Great Britain, is the sufficiency of the 
 security ofiered by the Colonies to cover this distant liability resulting from the 
 Imperial guarantee. 
 
 If tlieir past condition, compared with the present, does not establish fully 
 their ability to repay the lonn in the periods proposed, such a comparison would 
 only prove more strongly than any other fact that this admittedly necessary 
 work of military defence ought to be adopted by the Imperial Government 
 alone. 
 
 But to maVe evident the ampleness of the security offered by the Colony, it 
 is sutficient to compare the Revenue of the Colony in 1842, when the first 
 Imperial Guaranteed Loan was effectuated with the Revenues in 1861. 
 
 In 1842 it was 365,606/. currency; in 1861 it was 1,785,156/., after 
 deduction of the costs of collection. 
 
 After several interviews witli your Grace and the Chancellor of the Exchequer, 
 
 when 
 
'n^ 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICA). 
 
 31 
 
 eptember, and 
 
 when ihe conditions of the lonn, the nature of the socuritv, and (he arran-rcnients 
 of u sinking fund were discussed withnut coinina to uiiv pu-itive imd(T>riiiidin!: 
 the delegates have now bucn oliicially informed that 'the linperiai liu'aranttvj 
 will be given on certain conditions staled in tlio aniH-\ed doctinient. 
 
 The delegates regret to state that, in their opinion, some ol tiuse conditions 
 are of a nature to nnder the Im])erial guaranty; of no advantage, and otiiers to 
 render its availai)li.ness »o remote or encumbered witli dilticuitie-i that the Colonies 
 could not accept it, as an assistance towards an undertaking, and a mea-iire to 
 provide facilities tissential to the public defences of the provinc 3 as iiitenral 
 parts of the Km pi re. 
 
 The stipulation that the loan is to be the first eliari;e after the interest of 
 existing debts seems to them aliaiied so as to operate against tiie payment of 
 other debts cominy; due before the repayment of tlic loan. 
 
 The annual repayment of the loan renders the period of p;tytnent much 
 shorter than the period proposed ; and, beside the loss it " involves, it 
 deprives the (>oloiiy of a large sum which, employed during such a period 
 towards internal iinprovetnents, would aHord a greater security than this 
 annual payment, \>y the development of the re-*ourccs and of the wealth of the 
 country. In any arrangement the Colonies ought not to be fettered by conditions 
 of payment through any f"nn of sinking lund, which would make this Imperial 
 guarantee an impediment to future internal improvement, while, by incre.isiug 
 the rate of interest and by tlie expenses and loss incurred in its management, the 
 Imperial guarantee would thus cease to be of any real aid and advantage. 
 
 The investment of these annual payments into colonial securities will not 
 give a better security tiian the engagement of the Colonial (iovornment to pay 
 a fi.\ed sum at a fixed period. 
 
 Tliese investments into colonial securities, "as Her Majesty's (Jovernment 
 shall direct, and the Coloidal Government shall approve," will lead to difficulties 
 which, if not of a graver character than those that have already arisen out of 
 the disposd of the sinking f iid created for the first Imperial guarantee, fully 
 satisfy the delegates that these arrangements arc not more favourable thau the 
 former. 
 
 The exijcrience of Canada is strongly adverse to a sinking fund ; it created 
 annoyances and difHcultiea, made the rate of interest higher than she would have 
 paid by borrowing on her unassisted credit. 
 
 The delegates are informed that '• it is of course understood that the assent of the 
 Treasury to these arrangements pre-supposes adequate proof of the sufficiency of 
 the Colonial resources to meet the charges intended to be imposed upon them." 
 
 When, after more than 20 years negotiation, the oH'er of an Imperial 
 guarantee was made, the Colonies had some right to believe that the sufficiency 
 of their revenues to meet these increased charges was known and acknowledged, 
 as all information which they could give is already iu the possession of the 
 Treasury, and is set forth in the fullest detail in the statistical table annually 
 published by Her Majesty's G )vernment. No survey, no legislation, can take 
 place before the (>olouie» are made aware that adequate proof has been made of 
 the sufHciency of their revenues to meet the intended cliarges ; and it would be 
 important for the Colonies to be informed, at tiie earliest period, what further 
 proof is wanted. 
 
 The 8th condition is, that fitting provision is to be made for the carriage of 
 troops, &,c. &c. 
 
 If it is meant th.tt the troops are to b > carried free of any charije, the delegates 
 must observe that, when this was offered by tho Colonies, it was as a part of the 
 scheme then proposed, that England should contribute half the cost of the con- 
 struction of the road. 
 
 Wlien it is now proposed that the whole cost should be borne by the Colonies, 
 it cannot be expected that they must also relieve the Imperial Government from 
 all expenditure attending the transport of troops, &c. 
 
 All these conditions pre-suppose that the Imperial government has no interest 
 to serve, or no policy to uphold in the construction of this great railway, that tiie 
 Colonies must be treated as any other government asking a loan from the 
 Imperial Treasury ; proof is retpiired, as it is enacted from any utiknown debtor, 
 as to the sufficiency of his means to meet his engagement. With an ordinary 
 debtor, when this sufficiency is established, he may do what he pleases with the 
 
 530. c 3 monies 
 
 \ 
 
 ! 
 
'Cf 
 
 . 1 
 
 99; CORHESPONDENCt RELAllV^E TO A LOAN FOR 
 
 monies Ixirnmod ; but, in lliis instance, tlie funds arc to be applied to an 
 unileitakin^; admitteii by uH to afl'ord an ir.iin<-nse development to the wealth of 
 the creditor, enabliiiu bini to maintain more efliciently his power and su|)remacy, 
 witii the control even of directing tlie location of this work where, in his opinion, 
 it "ill secure ail these advantajjes most efficiently, although the cost to the debtor 
 may be mucii increased antl the pecuniary advantages made much less, if not a 
 great loss, thereby. 
 
 Till Treasury pr<jpos>8 anotlier condition, which must greatly delay all tiie 
 arraugenunts, ami may, after all the ex|)en8es attending the requisite' surveys, 
 the trouble and the difliculties of carrying the necessary legislation in the 
 diflerent Colonial Legislatures, render all this trouble, all this expenditure, all 
 thi^ legislation, usele>i8 and of no avail, leaving certainly a strong feeliug of 
 dissatisfaction in the minds of the inhabitants of the Colonies. 
 
 "The Imperial Government is not to be asked for this guarantee until the 
 line and the surveys sliall have been submitteil to and approved by Her Majesty's 
 Government, and until it shall have been proved to the satisfaction of Her 
 Majesty's Government that the line can be constructed without further application 
 for an Imperial guarantee." 
 
 The proposi d guarantee is limujd by the Treasury to 3,000,000 /. It is pos- 
 sible thai the railroad may cost half a million or more above this fixed sum of 
 3,000,000/., and this, by the fact of a selection of a route chosen for its military 
 advantages and upon consideration certainly as Imperial as Colonial. And then 
 the Colonies, before obtaining this guarantee, mu^t prove to parties not always 
 showing too much confidence in their wealth, that the line can be constructed 
 without furilier api>lication for an Imperial Guarantee. 
 
 Another period of many years will probably elapse before the discussions upon 
 this point clo;>e. 
 
 The .Schedule pre-suj)p()se8 that the rate of interest is fixed by the Treasury at 
 four |)er cent., while ii was denianiled by the delegates, after consultation with 
 tlie fiscal agents of the province, tliat the rate should be fixed at 3i per cent., 
 and that the debentures should bear that rate of interest. 
 
 The surveys and the selection of the route must be settled as preliminary pro- 
 ceedings to any legislation prepared to carry out the offer of the Imperial 
 guarantt e in the Colonial Legislature. 
 
 Hy the proj)osal of the Treasury, it is only after the surveys and after the 
 selection of the route that the provinces can act in regard to their guarantee, if 
 the cost is established at no more tiian 3,000,000 /., and when information is 
 given to the Colonics that their reiources are judged sufficient to bear the 
 charge. 
 
 If the cost of construction is above 3,000,000/., proof must be made, to the 
 satisfaction of Her Majesty's Government, that the line can be constructed 
 without further !i])plication for an Imperial guarantee. Pending the discussion 
 which may ibllow during a long period, to establish this fact or tliis possibility, 
 no action, no legislation, can he adopted. 
 
 Some of these conditions and demands are a strange commentary upon the 
 official statement made by Earl Grey, in 1848. "Her Majesty's Government 
 fully appreciates the importance of the proposed undertaking, and entertains no 
 doubt of the great advantages which would result not only to the provinces 
 interested in the work, but to the Empire at large, from the construction of such 
 a railway; but before proceeding to consider the question whether steps should 
 be taken by Her Majesty's Government to carry this plan into effect, it was 
 necessary tliat they should be informed how the several provinces were disposed 
 to co-operate in its execution." 
 
 These demands, rather ungracefully unsay the eloquent words of Earl Derby, 
 that to grant an Imperial aid was a wise, a sound, and even an economical 
 course in the end, even though, in the first instance, it would involve an outlay ; 
 and sure he was that it would confer immense benefits to the Colonics, and 
 bestow incalculable advantages on this country itself, and confirm its territorial 
 power in North America. 
 
 The question of tiie public defences of the Colonies, as integral parts of the 
 Empire ; the question of the maintenance, of tlie extension of the political and 
 social influence of England over the whole of her immense possessions in North 
 America ; the economical questions of bo vast magnitude to the welfare of the 
 
 nation; 
 
117 
 
 2ussions upon 
 
 AN tNTERCOLONIAL RAILWAY NOUTH AMERICA). jj 
 
 nalion ; the question ol iinemploye<l capital, of surplus lal,„Hi. uiMlerlie evtry 
 link of the great and national m»\ which Cuimia i'* »iixiou« to huild hy the 
 lar<ii«t and most lilieral toiiiribntion, from tiu- Atl.intic ti. tl„. p.cih.-. 
 
 They Iiad a just right to ifsk thi- co-o| eration ol (i,e.u Hriiain. :u..l «hen h\u- 
 only ilemands an advance ofKu.iraiiti , which can In no .v, niu liti.s involve 
 the liiibihty of a sinfrle halfpenny, to use the lansjuaii".- .f Kail I), rl)v. .ho has 
 certainly fidr grounds to c.xpeit a prompt and lihcial ei.nrsc »! aeti()n." 
 
 It the dilFerent groups of po|mhitioii spn ad over llritish Anicrici, and win. h 
 will iiumenite at lea-t 12 or i:. million? in iwent>-five y.ars, are allowed lo pm- 
 ceed in dlH'ereut directions to have w> con.mon t. nduicies, witl.f.ni anv ceu- 
 tralisation of their political existence, no other h.-iid hnt their di-jointed mten^t, 
 fostered hy ditVerent conimcicial policies and bcitled upon principu s ■ i localities, 
 they must continue weak and pouerle>s, and an caM- i n v to the poweili.l li. puhlic 
 girdled round the^e Colonies. 
 
 Bind all those small communities hy closer interconr.-es ; make a wlioli- sti\ ng 
 by its unity of interest, of tendencies, of political oiiianisation, of (omnioi: views; 
 create by eommercial relations mutual interests ani<ing>t tlienis. Ivi-, and with 
 En<;hind, direct the minds towards a jieneral aid coinpiehei.sive policy; .\ou 
 will thus benefit the industry, the wealth of Enghind, extend your power of 
 civilization, and lay the fouiuhitions of large an i ini' oitant Stutis irieiidlv i nd 
 grateful. 
 
 The Canadian Government does not press this undertaking heeau e i; i?- po; ular 
 with their people ; on the contrary, they have to encounter a s-tiong and jiopular 
 opposition ; hut fully appreciating the strength and the iniportauce it will 
 eventually give their country, and more particularly tlic ficilities it will pio\ide 
 for the puhlic defences of their part of the Enipiie, ihiy have not hesiiated to 
 adopt a policy which appeared to them sound, highly national, and eoiidueive 
 to the greiitness and the defence of the Empire at larg( . 
 
 As a measure of defence, Canada will cheerfully hear her share of the lar"e 
 burden imposed hy the construction of the road. But if the |)olicy of the Im- 
 perial Government in relation to this woik is practically a de( 1 iiaiion that tiiey 
 are not disposed to treat it as a measure of national concern and of pul)lic defence 
 of a portion of the Empire, the euterpris-e will not beeonie more popular. 
 
 The views and the policy involved and foliouing out of the conditions attached 
 to this so distant liability of the Imperial Exchequer, arc so nnieh at variance 
 with the views and the policy entiTlained hy Canada, that tlie undersigned have 
 considered themselves bound to review these long pending negotiatii iis, and to 
 contrast the views of the Colonies as to the military and Imperial character of 
 the work, with the Imperial policy refusing to contribute towards it. and arianging, 
 not an advance ut money, but of a simple guarantt e, which the work alone would 
 sufficiintly protect, in a manner illiberal, ohstructive, and which refuse, to 
 acknowledge any corresponding duty on the part of the Mother Country. 
 
 They will hasten to submit to their (iovernment the conditions and arrange- 
 mcnts proposed by the Imi)erial Government to carry out the t ft'er of an im- 
 perial guarantee, with the hoje that u]jon the pressing instances of the Colonics 
 this aid of an Imperial guarantee will be given in the manner explained by the 
 Delegates at their different interviews with your Grace and the Treasury. 
 
 These conditions, urged by the Delegates, and detailed iu the annexed pa|)cr, 
 in enabling the Colonies to borrow the requisite funds at the low rate of 3i per 
 cent, would render the Imperial guarantee a real and tangible assistance, accepted 
 as un equivalent lo the contribution of the Imperial Government towards a work 
 of national concern and a measure of public defence. The actual and future 
 wealth of the Colonies are ample and sufficient securities to the Imperial Ex- 
 chequer against the possibilities, even the most remote, of any los«, and a satis- 
 factory proof that the road would he constructed if these conditions were 
 
 accepted. 
 
 We have, &c. 
 London, (s'lfe'ied) L. V. Sicotte. 
 
 23 December 1862. '''"'• P- Howland. 
 
 530. 
 
 04 
 
 EncloMtd 
 
\^ 
 
 >4» 
 
 24 CORRKSHONDENCE RELATIVE TO A LOAN FOR 
 
 Eticloted in the ahunf letter from Mmsrii. Sicotle and Ilowland irm a Copy nf the Tienturi/ 
 Memorandum mid Schedule, printed on po^i-s 14 and 15, but with the addition of the follow- 
 ing note hi/ themtelvea : — 
 
 It is proposed by the Delegates — 
 
 1. That the loan ehall be for 3,()00,(XK)/. sterling. 
 
 2. That the liability of each Colony shall be apportioned as follows : 
 
 £.1,250,000 for Canada. 
 
 875,000 for New Brunswick. 
 
 875,000 for Nova Scotia. 
 
 3. TImt the debentures issued shall bear interest at the rate of 3J per cent. 
 
 4. That the interest shall be paid half-yearly, in London, on the 1st of May and the 
 1st of November. 
 
 5. That the loan shall be repaid in four instalments : 
 
 £. 250,000 in 10 years. 
 
 500,000 in 20 years. 
 
 1,000,000 in 30 years. 
 
 1,250,000 in 40 years. 
 
 6. Tliat tlic net profits of the road shall be applied towards the extinction of tbu loan. 
 
 7. That the loan shall be the first charge upon the revenues of each colony, after the 
 existing debts and charges. 
 
 8. That the Imperial Government shall have the right to select one of the engineers 
 appointed to make the surveys for the location of the line. 
 
 9. That the selection of the line shall rest with the Imperial Government. 
 
 10. If it is concluded that the work is to be constructed by a joint commission, it shall 
 be constituted in the following proportions : Canada shall appoint two of the Comuiissionera, 
 New Brunswick and Nova Scotia, each, ore. 
 
 These four shall iinnin a fiftli before entering upon the discharge of their duties. 
 
 11. Such portions of the llailways now owned by the Governments of Nova Scotia 
 and New IJrutiiswick, wliicii may be required to form i)art of the Inter-colonial Road, will 
 be worked under the above commission. 
 
 12. All net gain or lo?s resulting from the working and keeping in repair of any portion 
 of the roads ccnstructcd by Nova Scotia or New Brunswick, and to be used as a part of the 
 Inter-colonial Road, shall be received and borne by these Provinces respectively, and the 
 surplus, if any, after the payment of interest, shall go in abatement of interest, on the whole 
 line between Halifax and liiviere-du-Loup. 
 
 13. That the rates shall be uniform over each respective portion of the road. 
 
 14. That Crown land^ required for the Railway or stations shall be provided by each 
 Province. 
 
 No. 4. 
 
 No. 4. 
 
 DukeofNcwcastle, 
 
 K.O., to Governor 
 
 General Viscount 
 
 Monck, 
 
 17 January 1863. 
 
 (No. 4.) 
 
 Copv of a DKSPA'lCn from His Grace the Duke oi Newcastle, k.g., to 
 Governor General ^'iscount Monck. 
 
 My Lord, Downing-street, 17 Jiinuary 1803. 
 
 You will no doubt have received from Messrs. Sicottc and Howland, the copy 
 of a Meuioraiidum wliicli they have addressed to me respecting the proposed 
 loan for the construction of the Intercolonial Railway. 
 
 l\Fy first impiei^sion derived from the language and peneral character of tliat 
 document, was tliat it amounted to a final though indirect rejection on the 
 part of Canadii, of tlie terms offered by Her Majesty's Government, and thus 
 required r.o ])rescnt noJce from me. As, however, the Act of the Canadian dele- 
 gates is not necessary to be taken as that of the Government, and as, therefore, 
 the quf-siion will probably be further agitated in the Colony, I liave thought it 
 best to inform you generally of the circumstances under which this Memorandum 
 was sent to me. 
 
 The whole question of the loan was very fully canvassed at this office in 
 repeat! d interviews between the four delegates and myself; and I was certainly 
 under the impression that, with a single exception, the very numerous objec- 
 tions interposed by Mr. Sicotte had been successively removed by explanation or 
 concession : the exception related to the mode of securing repayment of the 
 prhu'lpal sum borrowed, but I collected that, even on this head, the substantial 
 objection to a sinking fund was admitted to have been removed by providing 
 tliat the payments to that fund might be employed in extinguishing the debt or 
 invest it in other Colonial securities. 
 
 At this period of the negotiation the Canadian delegates left London for 
 Paris, where, I presume, they received a copy of the memorandum embodying 
 
til 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICA). j^ 
 
 the terms, as altered after .lisonssii.n. wl.irh Her Maj.^tv's Government were 
 prepared to sanction, and v.lii,|, tlu- d.legnt.--. of Nova S.-oiia an.) N.w Uruns- 
 Wick have Minified the.i rcmliness lo ai-.q.t. ()„ ,|,..ir r.turn t„ 1 „..1,.„,| 
 Messrs. Sicoite and Howland soimlit no lurtlier c-on.mnni. afion «itl, orrxida" 
 nation trom, tliH dcpMrfment, l.ut on tli.' dav on uliul, tliev ,M.lmrk.,| for 
 Canada, left tins statem. iit, re|,niliatinji il"'" tortus whici. I,a.l lio.n i.c-.-uto,! b\ 
 their toll ij-ues and which I had been led to snppose cntuiRd liitl,. il.au^, 
 uiiaccei)tablr to tlitmsi-lves. 
 
 Some of the grounds aUeRed for that repudiation woul.l. I think. Iianllv have 
 been advanced had the ohj.clors thouj^ht it advisalde to i.scerlain l)v iurth.r 
 conference, tlu; intentions of Her Maje>tv's (Jov.niinent I will my«.lf 
 only <.hscrvx- upon them, fi.st, that the reipudi.ition bv Messrs. Sicotte ami 
 Howland of anv fixed arrnn_ement for seen riuf; pavin.ntof the prineioai bor- 
 rowed does not appear wliolly consistc-nt «iili ihe sixth article of iljfir own 
 counter-|)roposal ; and next, that the Hritisii Treasnrv. in proiHjsini 4 °/o "s 
 the rate of interest, can linrdly Ikj supjioscd to insist on" that r,»fe hein^- othred, 
 if it should iippear that the money couhi be ohiaine.l at par on moreadvirula"eous 
 terms. " 
 
 I slid!, of cnur?e, wish to be infmined wlietlirr the views set foitii in the 
 delegates' p,ip( r are adopted iiy tiio (Jiinadian Gov. niment, and whether 1 
 am to understand that the otler of Her Majesty's Government is finally re- 
 jected. 
 
 I have, &e. 
 (sijrned) Nr., castle. 
 
 — No. 5. — 
 (No. 8.) 
 
 Copy of a DESPA'rCH ftvm His (naee the Duke rWVewcustlc, km., to 
 Governor General Viscount Monck. 
 
 My Lord, l)ownin>;-strect, 29 .January 1803. 
 
 With reference to my DesjKifeh, No. 4*, of tlie 17lh of January, 1 transmit t . 
 you herewith a copy of a Minute by the Secretary to the i'reasnry.t upon two 
 
 auestions raised in the annexed letUr fVoni Mr. Tilley, the New Brunswick 
 elegate, on the subject of the proposal loan for the construction of tliu Inter- 
 colonial Railway, viz., the mode in which the loan should he raised, and the 
 extent to which it shou'd form a first ciniroe on the provincial revenues. 
 
 I have, &e. 
 (signed) Newcastle. 
 
 No. /J. 
 
 Diikt'of Newcugtlr, 
 
 K.(>., to (iovcnior 
 
 (ancriil Viscount 
 
 Monck. 
 
 jji J.tiiujiy 18(13. 
 
 • Pi^e 24. 
 
 
 Enclosure in No. 5. 
 
 S. L. Tilley, Esq., to Sir Frederic Rogers, Biirt. 
 
 Provincial Secretary's Office, Fredencfun, New Brunswick, 
 Dear Sir, ' 5 January 18(53. 
 
 Just before leaving London, I received tlie ropy of the paper you read to rae at the 
 Colonial Otfice on the morning of the 1.3th Deeembcr last, «a embodying the terms on 
 which the Duke of Newcastle and Mr. (ihidintone would be pre])arcd to pro|>08e to 
 Parliament an Imperial guarantee of the Bailway Loan of .'5,(XH),()0()/. 
 
 In the letter accompanying the Memorandum, you state that the 4th clautic is not 
 altered so as to meet my objections, as Mr. Hamilton thought it best that I should receive 
 the paper as it stood, and that 1 could make my ob.aervations u])on that section. 
 
 As worded, tlie provisions of Section 4, if endiodicd in an Act of our Legislature, 
 would change the character of our debentures now outstanding. Such a measure could 
 not be sanctioned by the Government or Lcgislntiirc, and I nni confident it will not be 
 insisted upon, when understood, by Mr. Gladstone. The proposed loan must i-taiid as a 
 first charge on the Consolidated Kevenues, after the Civil List, and existing legal liabilities, 
 including principal as well as interest. 
 
 During one of the interviews with which Mr. Ilowland and I were favoured by 
 Mr. Hamilton, it was understood that if the Imperial guarantee was given, the debentures 
 would be issued by the Lords Commiesioners of Her Majesty's Treasury, and these 
 Commissioners would act as trustees of this loan and the Sinking Fund. This arrange- 
 ment is only indirectly referred to in the Memorandum transmitted to mc on the 
 
 530. D 13th 
 
 End. in No. 
 
3(? 
 
 COllBESPONDENCE RELATIVE TO A LOAN FOR 
 
 13tli Dcccmlicr. You will plcwe obtain the sanction of tiio Treasury to on additioul 
 section containiuir this propoHol. 
 
 It irt iKWHible tTint thc«! niattcr.i linvc all been armnpeil by the Canadian and XoTa 
 S«c.tia delegate!* before leaving, and the ncccssarj- rerords made; if io, u answer to this 
 letter will not be neceswrj'. 
 
 I un, &c. 
 (signed) S. L. Tilktf. 
 
 \i' ;.-« 
 
 With reference to the two questions raised by Mr. Tilley upon the stipulations embodied 
 in tJie Mcmorandinn relating to the proposed Loan for the conHtruction of an Intercolonial 
 lioilwiu-, the Treasury considers that an answer should 1)C sent to the following effect : 
 
 1. Iler Majesty's Government never contemplated acquiring a precedence over existing 
 engagements of the Colonial Governments, wncther for interest or principal ; but the 
 assent of the Trcas'iry to the arrangement, as stated in Article V., pre-supposea adequate 
 proof of the sufficiency of the Colonial revenues to meet the charges imposed upon Uiem, 
 which charges would comi)rise not only the Civil List, end the accruing interest of any 
 existing debt standing in priority to the projwscd railway loan, but also any i)aymcnt of 
 princijjal standing in tlie same priority, which may fall due within the period at the expi- 
 ration of which the railway loan is required to be fully liquidated, as well as the current 
 interest and ihc decennial iiccumulation for extinction of principal, of the projiosed railway 
 loan. 
 
 No statement of revenue or liabilities which would afford this evidence has as yet been 
 exhibited to Her Majesty's Government, 
 
 2. In the event of the proposed arrangement being carried into effect, the Treasury 
 will not object to issue the debentures, upon the precedent of the Canada Guaranteed 
 Loan of 1843, under the hand of the Lords Commissioners, and to authorise one of their 
 officers to act as trustee, together with a nominee of the Colony, for the investment in their 
 joint names of the instalments remitted from time to time on account of Sinkin<» Fund, 
 provided such a course shall be deemed advisable by the Colonial Governments. 
 
 No. 6. 
 
 DukeofNewcastle, 
 K.O., to Lieut. 
 Governor Hon. 
 A. H. Gordon. 
 34 January )b63. 
 
 * Page lO. 
 
 - No. 6. — 
 (No. 2.) 
 
 Copy if a DESPATCH from His Grace the Duke oi Newcastle, k.g., to 
 Lieutenant Governor the Honourable A. H. Gordon. 
 
 Sir, Downing-street, 24 January 1863. 
 
 I HAVE the honour to transmit to you herewith a copy of a Memorandum* 
 which Messrs. Sicotte and Howianil, the delegates from Canada, on the subject of 
 the luter-coloiiial Railway, have addressed to me, on their departure from 
 England. 
 
 I have, &c. 
 (signed) Newcastle. 
 
 No. 7. 
 Dukeof Newcastle, 
 K.O., to LieiU. 
 Governor Hon. 
 A. H. Gordon. 
 34 January 1863. 
 
 • Page 23. 
 
 t Page 14. 
 
 — No. 7. — 
 (No. 3-) 
 
 Copy of a DESPATCH from His Grace the Duke of Newcastle, k.g., to 
 Lieutenant Governor the Honourable Ai'thur H. Gordon. 
 
 Sir, Downing-street, 24 January 1863. 
 
 I HAVE to request tiiat you will acquaint Mr. Tilley that iiis letter of tlie 8th* 
 instant, addressed to Sir Frederic Rogers, on the subject of tiie Treasury Minute 
 on the proposed loan for the construction -»f the Inter- colonial Railway, has been 
 received in this department, and I enclose a copy of a meiiiorandumt which I have 
 received from the Secretary to the Treasury on the points raised b; Mr. Tilley 
 respecting the mode of raising the loan, and the priority of charge on the 
 Colonial Revenues, whicii I trust will be satisfactory to him. 
 
 ^fr. Tilley will doubtless communicate this information to his colleague, Mr. 
 Howe. I liavc therefore not sent a copy of this paper to Lord Mulgrave. 
 
 I have, &c. 
 (signed) Newcastle. 
 
^\^ 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICAN 
 
 27 
 
 c has 06 yet been 
 
 — No. 8. - 
 (No. 4.) 
 
 Copy of a DESPATCH from His Grace ilie Duke of Narcnstlc, k.o., to 
 Lieutenant Governor the Karl of A/M/«;/\-fir. 
 
 '^"■» J>owning-Mrttt, 24 Jauu;.rv 1H«3. 
 
 1 HAVK the honour to transmit to you herewith a eopv <.f a Memoran<luni* 
 wliich Messirs. Sicotte and Howland, the delefiates from runadu. on the !>uhj<rt 
 of tlic Int. r-colonial Railway, have iiddre^sed to me on their dcnuruire finn 
 England. 
 
 I liave, &c. 
 (signed) Xewcastle. 
 
 No. 8. 
 
 Diikcol Nmiuitlc, 
 K.(.., Ill l.ii'ut. 
 (iuvt'rnui lilt' Karl 
 of Mul^ravf. 
 '.'4 Jinuiirr iSCj. 
 
 • I'a^ji- Ml. 
 
 — No. 0. — 
 
 (No. 10.) 
 
 Copy of a DESPATCH from his (Jiaec. the Oiikc of Ncu-caslU: k.i;., ta 
 Lieutenant Governor the Earl of Mulgravt. 
 
 My Loid, Douning-street, 31 January l«(i3. 
 
 With ivltience to my Despatch, No. 4,* of the -^4111 of January, \ have the 
 honour to transmit to your Loidsiiip a copy of a Minntef hv the Secretiry to 
 the Treasury upon two ijiieitions lair^icd ii: tlic annexed letter" fmiii Mr. Till'ev,* 
 the delegate of New Brunswick, on the subject of llir proposed Loan fur the c<)U- 
 struction of the Inter-colonial Railway ; viz., ibo mode in which the hian 
 sliould 1)0 raised, and the e.xteiit to which it should form a firsl charge ou the 
 Provincial Uevenue. 
 
 I am, &c. 
 (signed) Newcastle. 
 
 No. 9. 
 
 Dukc'ol' Ncwrnsilc, 
 K.(i,, 10 l.i(lll. 
 (iovcr-ior the Earl 
 iif Mul|;rave. 
 il Jaminry lHl>3. 
 
 • I'll);.' -.'7 (ul>ove). 
 
 t l'n«r U. 
 
 —III.— 
 
 ACTS passed by New Buunswick and Nova Scotia. 
 
 - No. 1. — 
 (No. 31.) 
 
 Copy of a DESPATCH from Lieutenant Governor the Honourable Arthur 
 II. Gordon, to his Grace the Duke of Xeurustle, k. c. 
 
 Fredeiicton, 27 April 1803. 
 My Lord Duke, (AnswtTfd, \o. ■.'», 10 M«y i«i;n, pujre aa.) 
 
 It is with great satistaction that I transmit to your (irace a co, y of a IJill 
 to authorise a loan, and for tlic construction and management of an intercolonial 
 railway, as finally assented to by me on the 20tli instant. 
 
 2. The Bill passed through all its stages in the IIousc of Assembly by enn- 
 siderable majorities, and in the Legislative Council only two votes were recorded 
 against it. 
 
 3. So far as this Province is concerned, no more can at present be done towards 
 the completion of this great work, but I earnestly trust that the (Jovernment of 
 Canada may, before long, be induced to perceive the necessity of fulfilling their 
 part of the agreement entered into between the diiferent Provinces in September 
 1862. 
 
 I have, &c. 
 (signed) Arthur H. Gordon. 
 
 No. I. 
 
 l.icul. (iovirnor 
 Hon. A. ll.Cmr- 
 (Inii to tlic Duke ui 
 Ncwcaatli', k (i. 
 ■:: April i8(I:j. 
 
 Enclosure in No. 1. 
 A Bill to authorise a Loan, and for the Constrnction and Management of an Inter- 
 
 COLONLAL HaILWAY^ 
 
 Whxbeas, is 1^17 to >n Bjmlication for Imperial aid to construct a railroad from Truro, 
 in Nov* Scotia, throiwli New Bninswick, tc Bivifirc du Loup, in Canada, hU Grace the 
 Duke of Newetwtle, Her Mi^jesty'a Principal Secretary of State for the Colonies, trann- 
 
 530. D 2 mitted 
 
 End. in No. 1. 
 
I**' 
 
 as 
 
 CORRESPONDENCE RELATIVK TO A LOAN FOR 
 
 i -J 
 
 ■ ' 
 
 1; 
 
 ■(' 
 
 mittcu lo the (iovcrnor (icncral of Canada, and to carh of the Lieutenant Governors of 
 >iova Scotia and New liriinwi^'k, u DcH|iutrh hearing <!ate the 12tli day tit' April, A. l>. 
 18(52, in whicli lunong otlier thinfri*, it in declared that Her Majesty's Government, anxious 
 to pniMiute, as lar as liiey can, tlie iin|Hirtiint ohject of eiim|iletin(r the great line of railway 
 eoniniunication on llrilish ground, hetweon the Atlantic and the we:*ternnio.it part, of 
 Canada, and to assist the Provinces in a hc-lienu? whicli would niateriallv promote their 
 interest. Her Majofty's tiovernment arc \Niiling to otlcr to the provincial ("lovcriinicnts an 
 Imperial gjiaraiiiee of interest towards enahling them to raise by pidilie loan, if they should 
 desire if. at a mi«lerute rate, the re:|uisite funds for con.-tructing the railway. 
 
 And wlicri'M.*, at a uiccliiig of delegates from the Provinces of Nova tk'Otia and Now 
 JJrunswick, with mendiern oi' the Government of Canada, held at Quebec on the loth day 
 of September, in the year last al'orcsaid, to consider such proitosition ami to adjust the 
 terms upon which the same should be acceiited, after delil eration had, two memoranda 
 in writing were drawn up and signed on liehalf of the (loverrtments of Canada, Nova 
 Scotia, and New Uruii-wick, relating to the several matters under consideration, copies of 
 which are contained in a Schedule hereunto annc.ed, piarked rnspeetivcly A and H. 
 
 And whi^reas, in pur.-iiancc of the provisions in said memoranda eojitained, a delegation 
 fron\ the Provinces of Canadi,. Nova Scotia, and New Urnnswick, jtroceeded to Loiidtin, 
 with a view of carrying out the objects therein set forth ; and, alter consultation with 
 Members of I'er .Majesty's Government, a I'aper, slating the terms and conditions upon 
 which the Pritish Government would afford their guarantee, was subniilted by Sir 
 Frederic Rogers, on the Kith December, in the year aforcsaiil, a:< a basis for Ct'lonial 
 legislation, u cojiy of which Paper is set forth in said schedule, and marked C. followed by 
 a further I'iijier from Sir Frederic Kogers, on behalf of the Duke of Newcastle, dated 
 21st of tianuary 18fi3, transmittii <• a copy of a Minute by the Secretary of the Treasury 
 also hereto annexed, and nuu-ked D. 
 
 And whereas, on the part of the Province of New Brunswick, it has been determined 
 to accept this ofl'er of I'.ii]ierial aid to construct the said railway, uimn the terms in the 
 said papers set forth, um\ to assiunc the liability of three and one-half twelfths of three 
 millions of pounds sterling, as specified therein; — 
 
 Be it therefore enacted by the Lieutenant Governor, Legislative Council, and Assembly, 
 as follows; — 
 
 1. The Governor in Council is hereby authorised to borrow through and upon the 
 guarantee of the British Government, three and one-half twelfths (><" three millions of 
 pounds sterling, for the puriK)se of aiding in the construction of an intercolonial line of 
 railway betweesi Truro, in the Province of Nova Scotia, through the Province of New 
 Brunswick, and Riviere du Loup in the Province of Canada. 
 
 2. No such loiui shall be contracted on behalf of the Province of New Brunswick until 
 corresponding power,* have been given by the Legislature f)f Canada to the Government 
 of Canada, to borrow, under like guarantee, five-twelfths of three millions of pounds 
 sterling, ncr until oorros|)onding powers shall have been given by the Legislature ot Nova 
 Scotia to the Government of Nova Scotia, to borrow, under like guarantee, three and one- 
 half twelfths of three millions of pounds sterling for the same object. 
 
 3. The amount so borrowed shall be applied towards tlu completion of the said railway, 
 on a line to be aji])roved by the Imperial Government. 
 
 4. The principal and interest on the said loan of three iind one-half twelfths of three 
 millions ot pounds sterling, shall be a first charge on i''c revenue of the Provinces after 
 the Civil List and the iirincijial and interest of existing debts and liabilities, the interest 
 on the said loan to be jiayable semi-annually at London on or before the 1st day oi' May 
 and November in eacli year. 
 
 5. The loan to be liquidated as follows: — ^Three and one-half twelfths of two hundred 
 and fifty thousand ])ounds sterling, to be payable ten years after contracting such loan ; 
 three and one-half twelfths of five hundred thousand pounds sterling, twenty years; three 
 and one-!"alf twelfths of one million of pounds sterling ; thirty years ; and three and one- 
 half twcl'ths of one luillion two hundred and fifty thousand pounds sterling, foriy years, 
 after cor tracting such loan. 
 
 6. T'.ic payment of the three last inetalinonts to be j)rovided for a.* follows : — 
 
 2d Decade (say 1873 to 1882 inclusive). 
 
 A Sinking Fund of three and one- half twelfths of 40,000 /. sterling, to be remitted 
 annually to the Imperial Treasury, being an amount adequate, if invested at five per 
 centum compound interest, to provide three and onc-holf twellths of five hundred thousand 
 pounds sterling at the end of the decade ; the sum to be remitted annually, to be invested 
 m the names of trustees, in Colonial securities of any of the three Provinces aforesaid, 
 
 iirior to or fonning j)art of the loan to be raised, or in such other Colonial securities as 
 Icr Majesty's Government shall direct, and the Government of New Brunswick shall 
 p^jjirove. 
 
 3d Decade (say 1883 to 1892 inclusive). 
 
 A Sinking Fund of three and one-half twelfths of eighty thousand pounds sterling, to be 
 remitted annually to the Imperial Treasury, being an amount adequate, if invested at five 
 per centum compound interest, to provide three and one-half twelfths of one r Jlion of 
 pounds sterling at the end of the decade ; the amount when remitted to be invesved as in 
 the case of the Sinking Fund for the preceding decade. 
 
 4th Decade 
 
%l 
 
 'OR 
 
 t Governors of 
 f of April, A. V. 
 'nnicnt,nnxii)U8 
 
 line of rittlway 
 
 nmioi't pnrts of 
 V promote tiieir 
 
 iiivcriinifiitK an 
 II, if tlioy hIiouUI 
 »y. 
 
 tHotia and New 
 on the iHtli (lay 
 nd to a<ljii!<t the 
 t^vo iiit'moranda 
 
 Cnnadn, Nova 
 rnticiii, ('opic!< of 
 
 A and H. 
 led, a delegation 
 cde<l to London, 
 lln^<ultati<ln with 
 coiiditicmf upon 
 iljinitted by Sir 
 )a!;is for C'.'lonial 
 d C, fiillowed by 
 Newcantle, dated 
 of tlic Treaj-ury 
 
 been determined 
 the ternii^ in the 
 twelfths of three 
 
 il, and AsseniVily, 
 
 :h and upon the 
 three millions of 
 ercolonial line of 
 L'rovincc of New 
 
 .- Brunswick until 
 the Government 
 dllioni? of jiounds 
 3gii<lature of iNova 
 ee, three and one- 
 
 [' the said railway, 
 
 twelfths of three 
 le Provinces after 
 lities, the interest 
 6 1st day of May 
 
 3 of two hundred 
 racting such h)an ; 
 enty years ; three 
 ad three and onc- 
 rling, forly years, 
 
 OWB : — 
 
 ig, to be remitted 
 vested at five per 
 hundred thousand 
 illy, to be invested 
 rovinces aforesaid, 
 lonial sceurities as 
 V Brunswijk shall 
 
 inds sterling, to be 
 if invested at five 
 of one r Jlion of 
 
 ) be invesved as in 
 
 AN INTERCOLONIAI. RAILWAY (NOUTIi AMERICA) 
 
 29 
 
 4th Decade (nay IM'I.I In UM)2 inrbi»ive). 
 
 A .Sinking Fund of thrc- and one half l«,.|fth> of one hundred thou»uml iH.umU «tcr. 
 inp to be rei.utte.1 annually to the Imperial Trciwury. being an amount ad..>,nalc, if 
 inve-tCMl at five per ccntmn corniK.nn.l intcrct, to pn.vidc thr..,- and om-half tw.'llih.. of 
 one million two hundred an.l fifty th.Mi-an.l i-unds Hlcrlini:. bcin- the balance ,.f il,c loa-i 
 at the end of the decade. Thi- amount, when remitted, to be inve.ied a. if. tin' iircclimr' 
 decades. ' *» 
 
 Sb..uld the .<inkin^' Fund of any <U-ca.le jToduce a ^nrphin. it will go tu the credit of 
 the next .hxad ■ : and in the last decide, the .Sinking Fund will be remitted or r.duccd 
 accordingly. 
 
 (. J he con^tructlon of ^aid IJaihvav, if bv the tioNcrmncnt-. Hhall be lu.t.d by (he 
 
 Lommi...si..ncrs— two to be appointed bv Cana.la. ..nc bv .\oNa .Suiia. and onebv'Ncw 
 
 Jirun.-wick : thc.-e lour |o elmo.e ibe rcmainin- C ni^.-iomr. Tbc prcliminarv H.rvev. 
 
 Hhall be e Icctcd at the cxpcuM. of the Colonic,-, bv three enginecr> and ,.ilicr ofiiivr- t.. I,c 
 nominated, two ol sucli engineer- to be elio>rn bv llie (i.,veriniieuis of Caiiad:,. .Nova 
 bcotia. anti New Mrunswiek. and .,ne bv tlic Imperial (iovernm.'ul : and of such expense 
 the Province ot New Hnm-wiek shall be liable for tlircc ami one-lialf twelftli-. 
 
 K. The road to_ be at llic ^rvicc of the Imperial (iovernnunt for llic .'arriage ..f Irooo^ 
 and munitions of war. on such terms and at such rate oi' tariff as may fr. "' 
 be agreed upon between the Imperial ami Colonial (iovcrmuent^. 
 
 9 ' .... 
 
 oni lime to time 
 
 4th Decade 
 
 [). As soon as the Provinces of Canada and Nova .Scotii .-ball liavc provided the ncecs- 
 y legislation to carry into cffc.-t the siipulalinn< c inlaiiied in tbc .Memoranda A. aii<l U, 
 and iiiion the terms and coiidiiion-- set forth in the Taper marked C, in tlic .SrluMlnlJ 
 annexed, fiirni-hcd bv the Mritisli (iovcrnmcnl, tlic (iovcrnor in Council ma\ appoint a 
 suitable jicrson, to bold office during pleasure, as one of the CoMmii'^sioners to be -elected 
 in conformity with the pn>vi>ions of Sections One of Mcniorandum I( in ^aid Scliediiic, 
 who shall be clothed with all the ] owcrs necessary to carry out the provisions of thi:- .Vet 
 in coniiiiiction with Commissioners to be appointed by tlie (Invernnicnts of Canada and 
 NovPv Scotia, as in said .Section set fbrtli. 
 
 10. II any company or body corporate now or hereafter to be organizecl, p(i.--es.-in" 
 sufficient capital, shall offer to construct the I'mitemplatcd railway between Truro, in .Vova 
 Scotia, and Kiviere du Loup, in Camula and shall give such gi'iarantee or assurance that 
 they will complete the same a- the several Government-' of Canada. .Nova .Scotia, and 
 New Brunswick may deem ncce-sary. the Governor in Council is bcrebv autIior;'.e(l and 
 einpowercd on the part and liclialf lif New Hruiiswick, to enter into an agreement, con- 
 jointly with Canada and Nova .Scotia, with such company or body corporate, for the con- 
 struction of said railway, upon the following terms, viz.: — That upon completion of such 
 railway, the Province of New Brunswick >liall each and every year for and during the 
 first period often years tliereaftcr, in which the said railway shall be effeclnally worked, 
 pay to the said company or body eor]>orate, a sum which, together with tiie net 
 earnings of the said railway, shall be c(|ual to the interest, at the rate ol three ami 
 a half per centum on three and one-half twelfths of three millions of pounds sterl- 
 ing. Kacii and every year for and during the second period of ten years thereafter 
 in which the said railway shall be efiectiially worked, a sum which, together with 
 the net earnings of said railway, shall be efjiial to the interest at the rate of three 
 and a half per centum on three and one-halt twelfths of three million.! of pound.s 
 sterling, Init not exceeding in aiiv mie year the sum "f twenty thou>anil pmiiids steriini''. 
 Each and r'vcrv year for and during the third pcritil often years thereafter, in which the 
 said railway shall be effectually wm'ked, a sum which, together with the net earnings of 
 the said railway, shall be equal to the interest at tlic rate of three and a half per centum 
 on three and one-half twelfths of three millions of ]ioiiiids sterling, but not exceeding in 
 any one year the sum of twelve thousand pounds sterling. Kai'h and everv year for and 
 during the fourth period of ten years thereafter, in whi'li tlic saiil railway shall be efiectiially 
 worked, a sum which, together with the net earnings of the said railway, shall be cipial to 
 the interest at three and a half jjcr centum on three and one half twelfths of three millions 
 pounds sterling, but not exeeei'ing in any one year the sum of six tliousand pounds 
 sterling ; which said payments shall be and are hereby made a first charge u\ton the reve- 
 nues of the Province next after the Civil List and the debts and liabilities existing at (he 
 time of the ])assing of this Act. 
 
 11. Ill case that no suitable companv, or body corporate, shall offer or be found willing 
 to con.struct and maimge the said railway, upon tenns and conditions provided in ti c 
 preceding section, then the Commissioner to lie appointed on behalf ■ f this Province shall 
 be empowered to act conjointly with the other Commissioners to co truet the said mail, 
 by public tender and contract, in the cheapest and most efficient manner the said Commis- 
 sioners can devise, and "po" the site that shall have been surveyed and approved by the 
 Governments of the three Provinces. 
 
 12. When the preliminary surveys shall have been completed in the manner above pro- 
 vided, and the British Government shall have approved of a line and surveys, the work 
 shall commence and be continued simultaneously in each of the Provinces, and such 
 portions, or the whole of the line, shall be immediately put under contract of construction, 
 in sections or otherwise, to be finished at such dates, with such gnarante's and securities 
 for completion as shall be deemed most advisable by such Commissioners. 
 
 13. No such loan shall be contracted without the assent of the Legislature, until it shall 
 be satisfactorily made to appear to the Governor in Council by the estimates and certificates 
 of the engineers appointed under the authority of this Act, that a first class railway can 
 
 53'^. D 3 bo 
 
-^%M 
 
 3" 
 
 COIIRESI'ONDENC E liELATlVE TO A LOAN FOR 
 
 111! 
 
 tA. I 
 
 lio ciiii^-triu'ted trom Truro, in Nova Sootin to Itivu-re du Luup, in C'nimdii, nii the line 
 oflccti'il ami iitidcr tlip trriiiH of the proffcreil jiuarniilrc. 
 
 14. Tliri'o of thn Kve ConiiiiiHiiioncn< i*hall lie n i|iioriiin tor thu trau.'action of but>inet<i<, 
 ami in <•»"<' of fliMajtrcfriMMit, the deeifion of a majority tthall ho luudiii;;. 
 
 1.5. N I piTMin holding' n «"nt in the LefjiKliitiire nliall lifcorue i«c'iMirify for the |icrforui- 
 aneeofaiiy contract with the^C'oinniiscionerH, or for uiiy work or en^a^uliivnt in rulation 
 to the riiilwnv to he ponntnictcd referred to in thi.< Art ; iind no Meinher of tlu! Lcuiidtt- 
 ttiM' iiflirw l^rovini'c .-hall hold the otHcc of ('oiinni-.-'i'liicr. ur hujd or he a|>|Miiiit(.'il to any 
 office of cniohinicnt nnder the C'onin>i*sionern, m he n contractor or parvy to any contract 
 ari^tiii^' out of the construction, luunagcmont, or wiirkin<; of the rond.or any |>*rt llicrcof. 
 
 l(i. Where tlie mad !< hull \>H!** tlirou;rli ('r.nvn L:iii Is the (rovcrniii" in Council id 
 herelty authorized to ixrunt, for the pur|)o-<ei of the road, the nece..<.-ary Crowu lr>\ uIh for 
 track, ."iclinf.'^, ai .1 gtationn. 
 
 17. The L'oniinii'xionerrt to be appointed for carryinfr oiu the proviitionii of thi.t Act, 
 when thf line shall he eonstrin-tol. arc authorized to make nilei* and regulationx for 
 inanajfini; and workiuff the entire line, in cuni'nrniity with the stijiul.itionfi in tlie Memo- 
 randa atorer<aid mentioned; and m) far a« the I'mvinee of Xow urunttwit^k i-- coiutrned, 
 i-ucli rulc-i and rcftidationM, when approved Ity tlu' (iovernor in Council, shall imve all the 
 force of law within the houndaricK of this Province. 
 
 IH. If either the Province of Cniiuda or the Province of Nova Scotia shidl cot Icgi.^ihite 
 witliin two yearr" after the pasninf; of thi^ Act, providinjt liir the eonstructi<i;i of the nuiil 
 Intercojunial Itailway, on the terms of the said Meuioruuda and Pu|)ers in the wiid S lieduh', 
 or some nmdiHcation of them to he aj^rced upon hy the Le;j;islatures of the three Provii-.ees 
 and tiic Imperial (rovernmeut, then this Act, and every nnitter and thing herein contained, 
 shall, at tli(' end of two years from the passin<; hereof, lie and stand repealefl. 
 
 10. The Lej,'islatiire will make siieh further provisions as may ho deemed necessary to 
 •live efei't to this Act. for the jiurpose of raising- the loan, pa\iiig the iutcrutst, liquidating 
 the deht.und for the construction and uiunagement of the road. 
 
 SciiEDi'i.K in the Foregoing Act referred to. 
 
 Memohandum a. 
 
 Thi: undersigned, representing the three (Jovcrnnients of Canada, Nova Scotia, and 
 New HrunswicK, convened to consider the Desi)at<'h of his (Jrace the Duke of Newcastle 
 of 12th Ai)nl 18(12, with nfereuce to the intercolonial railway, having given the 
 very important matters contained in that Despatch their attentive considciratiou, are agreed — 
 
 I. That whilst they have learnt with very great regret tliat Iler Majesty's Imperial 
 Govcrnmout has finally declined to .sanction the proiiosals made iu behalf of these Pro- 
 vinces in December 1861, and at i)rcvious periods, thoy at the same time acknowledge the 
 consideration exhibited in substituting the projuisal of " an Imperial guarantee of interest 
 towards enabling them to raise hy jjublic loan, if they should desire it, at a moderate rate, 
 the reiiuisite funds for constructing the railway." 
 
 II. That, with an anxious desire to hind the Provinces more closely together, to 
 strengthen their connection with the mother country, to promote their common connnerc.'ial 
 interests, and to provide facilities essential for the public defence of these Province.s as 
 integral ];arts of the Empire, the undersigned are prepared to assiunc, under the Imperial 
 guarantee, the liability necessary to construct tliir- great work. 
 
 III. That the three Governments are agreed that the proportions of liability for the 
 necessary expenditure shall be ai)pro))riated as follows, viz. — live-twelfths for Canada, and 
 seven-twelfths to be equally divided between the Provinces of Nova Scotia and New 
 Brunswick. 
 
 IV. IJut it is understood that the liability for principal and interest shall be borne 
 by each ])rovinee to the extent only of the jiroportion hereby agreed upon, 
 
 V. That, in arriving at this conclusion, the undersigned lune been greatly influenced 
 by the conviction that the construction of the road between Halifax and Quebec must 
 supply an essential link in the chain of an unbroken highway extending through British 
 territory from the Atlantic to the Pacific, and in the comidetion of whicn every Imperial 
 interest iu North America is most deeply involved ; and the undersigned are agreed that, 
 to present properly this part of the subject to the Imperial authorities, the three Provinces 
 will unite at an early day in a joint representation on the immense political and comiuercial 
 importance of the western extension of the projected line. 
 
 (signed) J. S. Macdonald, 
 L. V. Sicotte, 
 J. Morris, 
 W. P. Rowland, 
 Wm. JWDoriffall, 
 
 . ' ' '' V. T. Teasier, 
 ^' t X. D'Arcy liPGee, 
 F. Eventvrel, 
 Adam Wilson, 
 12 September 1862. 
 
 Represent- 
 ' ing Canada. 
 
 Joseph Hmce, 
 William Annand, 
 J. MCull,/, 
 
 S. L. Tilley, 
 IV. H. Steeves, 
 F. Mitchell, 
 
 \^ Representing Nova 
 i Scotia. 
 
 Representing New 
 Brunswick. 
 
^i^ 
 
 I, nil the lino 
 1 oi' butiineM, 
 
 AN INTEUCOI.OMAL HAIi.U AY (NORTH AMEHICA). 
 
 3« 
 
 MkNiiRVNOIM It. 
 
 I. Ik It Jiojil.l Ik, o,i.,:1,.. e.l that tl... «-..,k .lull Ik. .•on.trurt..! hiuI ui«n.«>.| U « hhw 
 Cn,„„u-mn ..I tl... tin,.. I'n.xl,.,-.,. it .l,»I| |„. c..nMilut.Hi in tl... ,.r,.i..r.i,.„ ..I two 
 «p|,nu.l,.l 1^ tl, (,„v..nm,n,t ..f C.n:,.!,,. .ml „„.■ ru.-l, l.v tl... (;„>..,„,;„,.,, „( S.va 
 N-.|tiH and N, w Hrmi-wiilc. th.- four t.. ^Ir.t n fifth helnre .titrrins upon ih. tll«hurirc ..t 
 the ir (li.tiOH. ' «'■ • 
 
 II. Tl.iit II i.Miit i|..I, M.':it!..ii |.r..c....| uiih -.i, little I.M* ,,r till),. a» |...M<il.|< to K.i.clanU b> 
 arraiif,'.. will, tho Liiprriiil (i..MTiii.i, i.t tl.c t..rni,. ..I' tin- l.iai..-. tl... naiur.- ..1 thr -.•..uriti.-n 
 rt'<|Uiiv<l. the uimimit tu l.o imi.l f.ir tlio lriin«|«.rt ..f tr.H.|.« ami mails aud, if |,».mI,|,., i,. 
 ol.ti.iii a i..n,iili,-„ii,,M ,,f il„. trill.- |.r..|.,,...i, t.. the i-xtci.t of the ii.tiTi..,! u.-.Tuinj. ilurilur 
 tiio ...iiicli iuli..n of tl... wi.rk. 
 
 III. That tio .i.rvrv- lie ati'l...n-c<l iin-il ih- law^ r..nl.-iii]iluto<I kIiiiII haw Im.-u i.adH.l, 
 aii'l tlicj.iiiit Ciiiiiiiiis-iiin.r^ ii]i|iiiiiit.'(l. 
 
 IV. Th.it anv profit or \u<f, afi.T i.nyin;,' WM.-kinjr ,.x|ifn*c-. ^hall he ilivldc.l in iin.iH. 
 to the ccmtrihutinnH of thr M'Vfrnl rrnviiii'i's. 
 
 V. That Mich i>..rtitiii^ ..f tlif railway, imw ,,\vii.,l l,v il... ( lucniimiiu ..f \,,vh Sctin 
 and New Uninnwii-k, whi< h may h.. ri'.niin.l t.. form |.'ait ..f tin- ii.l..|-....|,.i.ial loa.l. .hall 
 bp worked iimlcr snrh jnint authority a< iiia> li.. a|.|Miiiil.(l l.v the thr.'e PfNin.-e-. ; tltat 
 the rates e..llei.t.il ^liall he iinifoni. o\, |- ,,,.-li n-i.e.liv .. iMirti'on of the loail ; that all net 
 gain or l..-...* rc.'iiltiii}; fr..m the w..rkiii;; or keo|.in^' in repiiir ..f iiuv ix.rti.m i.f the n.a.l 
 eon..tnii.|t(Hiy Nova .Si..,tia or N. u llnni-ui, k, ami t.. !].• ii.^e.l an 'u part of tlie liit.T- 
 coloiiial Hftilway, shall h.- re<*eive<l and home l.y th.' .'uiil I'n.vinee.< rexj.ectiveK , and thi> 
 cur]ihi«. if any, aftor the paynient of inter.-l, Vhall ^.'d in uhatomrnt of intercHl on the 
 whole line hetween Halifax and liivii'-r.' dn Lmip. 
 
 Clown land.s re.iuired for the line orf.ir i-tations shall he provided hy ea.'h rro\inop. 
 
 (sirrned) 7'lins. I >' A n i/ M-<l,r. i'xr {'■.uunh. 
 
 Joxtji/i Uiiiri; tor Nova Si..itia. 
 S. L. Tiltii/, tiir New liriin-wiek. 
 
 irtion 
 
 ill be home 
 
 It is propo.scd — 
 
 MEMOIlA.NDir.M C 
 
 Pai'EK furnisbcd hy Sir Frederic Royrrt. 
 
 1. That Hill.-i .shall he iininediately .■^uhn.iltod to the Legislatures of Canada, Nova Sootia, 
 and New Brunswick, atithori!"ia|j the respective (Jovenimcnt.s to borrow 3,0<MI,(KK)/., uiuler 
 the {guarantee of the Hrilieh (iovernnient, in the foUowinj^ pnnM.rtions: — five-twelfths, Ci»- 
 nada ; three and a half twelfths, Xovn Seolia ; three and a liali' twelfths, New liriinswit.k, 
 
 '1. But no sii(.h loan to he contracted (in hehalf of any ime C.dony, until corresponding 
 powers have been given to the tiovcrnnientf' of the other two Colonies coiieei-iied, nor 
 unless the Iiniierial Government shall guarantee |iayinent of interest on hucIi loan until 
 repaid. 
 
 ;i. The money to he applied to the completion of a railway connecting Halifax with 
 Quebec, on a line to be approved hy the Imperial Government. 
 
 4. The interest to he a first-charge un tlie Constilidatcd Keveniie Funds of the ditt'ercnt 
 Provinces, after the Civil List and the interest of existing debts; and, as reganls Canada, 
 after the rest of the six charges enumerated in the 5 & 6 Vict. cap. 118, and 3 & 4 Vict. 
 cap. 35 ( Acts of Union). 
 
 5. The debentures to be in series as follows, viz : — 
 
 £.250,000 to be payable 10 years ai'ter contracting loan. 
 £.500,000 „ 20 » ,. , 
 
 £.1,000,(KX) „ 30 ,. ,. 
 
 £.1,250,000 „ 40 „ 
 
 In the event of these debentiircK, or any of them, not being redeemed hy the Colonies at 
 the period when they fall due, the amount unpaid shall beeome a chw-ge on tlieir respective 
 reveiuios, next after the loan, until paid. Tlic principal to he repaid as follows :— 
 
 1st Decade (say 1863 to 1872, inclusive), 250,000 /. in redemption of the first series, at 
 or before the close of the first decade from the contracting of the loan. 
 
 2d Decade (say 1873 to 1882 inclusive^.— A Sinking Fund of 40,000/., to be remitted 
 annually ; being an amount adequate, il invested at 5 per cent, compound interest, to 
 provide 500,000i at the end of the decade ; the sum to be remitted annually, to be 
 uiveetcd in the names of trustees in Colonial securities of anv of tlie three ProTinccs prior 
 to, or forming part of the loan now to be raised, or in such other Colonial aecurittcs aa 
 Her Maiesty 8 Goyemment shidl direct, and the three Colonial GoTeniments ajiprove. 
 
 530. D4 SdDeowle 
 
.^ 
 
 St 
 
 COHRESPONDFACE RKLVTH T. TO A LOAN FOR 
 
 3d DocHilc («ay 1N>«3 t<> 1h!(2 inrlufivc). A Sinking; KimhI nl' m),(HM)/., to l)i' romitti'd 
 •liiiiiully ; lit'ln^; iiii uiiiiniiit !iil<'i|iiuti-, It' iiivcti'tl ill .i per cent. ('<>iii|i<iiiii<i iiiterc*!, to 
 |in>viili' I ,UH),lNM) /. at the ciul <•!' tlic i|e<':t<li' : the aiiicnint, whoii remitted, to lie ii)votite<I, 
 SK ill tlic rare iit' tlie Sinking Kiiml for the |ireri'i|in^ deenile. 
 
 4lii 1)( <ii>le ii.«y iH'Kt to 1!«12 iiuiiipive). A Sinkliij< Fiiiid of liHI.IMMt/., to ttc reiiiilt(!d 
 •iiiiiiiiily : lielii^ iin aiiiiiiiiil iiilei|iiHte. it' iiivesteil ill .'> |iei- cent, eoiiiiiuiind interest, to 
 provide 1,2 i(i,<KNl/., Ill ill); llie lialiiiieeof llie liiaii.nt tlie end of the deeadu. Thl.'* iiiiiuuiit, 
 wlirii remitted, to lie iiivei<ted «» ill the |irect'dinj{ de<'ade. 
 
 Slioiild the Sinking Fund oriinvdeeaiie jiriMlii HurpliiH, it will ^o to the credit of the 
 
 next deeade. And, in the liiHt ifeeiide, the Sinking; Fund will he remitted or reduced 
 accordingly. 
 
 It i.-, ol' eciiirse. underHtood, timl the uit-enl of the Treii«iify to tlieiic arrnii);cmcuti>, pre- 
 HUpiMireH ndeijuutp proof of the .nuHieieney of thi^ (.'uloniiil revenue!* to meet the ehari^es 
 intended to he ini|>oi<ed ii|hiii thrni. 
 
 6. The eoni<lruetion of the railway to lie eiiniliiiled hy live ('ommif>rioncrii. Two to ho 
 j)|Miiiiied liy Canada, one hy .Nova I 
 cliuotie the remaining; Cummi><iiioner. 
 
 ap|Miiiiied liy Canada, one hy .Nova .Seotia, anil one hy New lirunKwiek. Tliene four to 
 cliu 
 
 7. The preliminary Hurvey.-* to he etfeeted at the cxpciixc of the Coloniej hy three 
 cngiiieei-H, or other utfieert) uuminated, two hy the Coiiiiiiiitsiunertt, and one hy the Hume 
 Oovcrnment 
 
 8. Fitting provision to he made for carriage of troops, &e. 
 
 !>. I'urliament not to he axked for the guarantee until the line and surveys ^hall have 
 been fuhmitted to and aiiprovcd of hy Her MnjeHty'ti Goverument, and until it tiliall have 
 been shown, to the satiitiaction of Her Miijesty'ii Government, that the line can he con- 
 Btructed without further application for au Imperial guarantee. 
 
 Mkmok.vndlm D. 
 
 Sir, Downing-Htrcct, 24 January 1863. 
 
 I IIAVK to request that you will acquaint Mr. Tillcy that his letter of the 5th instant, 
 addres.*ed to Sir F'rederic Kogcr."", on the suhicct of the Treasury Minute on the projiosed 
 loan for the construction of tlio Intercolonial Railway, has hccn received in this Depart- 
 ment ; and I enclose a copy of a Memorandum which I have received from the Secretary 
 to the Treasury, on the points raised hy Mr. Tillcy respecting the mode of raising the 
 loan, and the priority of charge on tlie Colonial revenues, which I trust will be satisfactory 
 to him. 
 
 Mr. Tilley will, doubtless, coniinunicatc this information to his colleague, Mr. Howe; 
 I have therefore not sent a copy of this paper to Lord Mulgrave. 
 
 I have, &c. 
 (signed) Frederic Roger$, 
 (In the absence of the Duke of Newcastle). 
 
 Lieutenant Governor Honourable A. H. Govdmi, 
 &c. &c. &c. 
 
 (Enclosure.) 
 
 With reference to the two questions raised by Mr. Tilley upon the stipulations embodied 
 in the Memorandum relating to the projKised Loan for the construction of an Intercolonial 
 Railway, the Treasury considers that an answ^er should be sent to the following eft'ect : — 
 
 1. Her Majesty's Government never contemplated aeqiiiring a precedence over existing 
 engagements of the Colonial Governments, whether for interest or principal ; but the 
 assent of the Treasury to the arrangement, as stated in Article V., pre-supposes adequate 
 proof of the sufficiency of the Colonial revcnuej^ to meet the charges imposed upon thein, 
 which charges would comprise not only the Civil List, and the accruing interest of any 
 existing debt standing in priority to the proposed railway loan, but also any payment of 
 principal standing in tne same jiriority, which may fall due within the period at the expi- 
 ration of which the railway loan is required to be iully liquidated, as well as the current 
 interest and the decennial accumulation for extinction of principal, of the proposed railway 
 loan. 
 
 No statement of revenue or liabilities wliich would afford this evidence has as yet been 
 exhibited to Her Majesty's Government. 
 
 2. In the event of the proposed arrangement being carried into effect, the Treasury 
 will not object to issue the debentures, upon the precedent of the Canada Guaranteed 
 Loan of 1843, under the hand of the Lords Commissioners, and to authorise one of their 
 officers to act as trustee, together with a nominee of the Colony, for the investment in their 
 joint names of the instalments remitted from time to time on account of Sinking Fund, 
 provided such a course shall be deemed advisable by the Colonial Governments. 
 
^s^ 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICA^. 
 
 3.J 
 
 — No. i. - 
 
 (No. 29.) 
 
 Copy of n DESPATCH from His Cni... tl.o Diikf of SWraUl^, km., to 
 '-ieiitonaiit Governor thf Honourable Arlhur II. Cionloi,. 
 
 P""' Dowiiiii(r.Mrtvt, 1« May 18U.1. 
 
 I HAVE till- lionour to iickiio»\lcilgf tlii; ii-ccipl of your Dospiitcli, X.,. .W „f 
 tlic aTth ultimo, iMulo.iny; a copy o| t|„. Hill to wfii.!, you li.ul .i^si-ntwl -''to 
 authorise a loan, anil for the construction ami manaKfuuiit of an Intercolonial 
 Raihvnj." The nailines of the Legislature of New Urnnr*wiek to forwai.i the 
 work of nil Intiicolonial Hail«ay has atlonlt il much >ati'«factiou to Her Mujestv's 
 Govcriiniciit. ' • J . 
 
 I have, &e. 
 (signed) AVuru.«</f. 
 
 No. :. 
 
 rtdlr. c 'i . 1.1 
 Lirui (iott'rnor 
 lion \.ll.('4in)oa. 
 11; M») i9<i3. 
 
 * V»x<' 17. 
 
 — No. 3. — 
 
 (No. 5i.) 
 
 Copy of a DESPATCH from His Grace the Duke of yewcantU, k.o., to 
 Lieutenant (iovernor the Honourable Arthur H. iiordnn. 
 
 Sir, Dowiiin^j-street, lo October ISfJU. 
 
 I HAVE the honour to acknowledp;e the receipt, together with other Acts of 
 the Legislature of New Brunswick, of "Cliaptcr V., an Act to authorise a Loan, 
 and for thet'onstructioM and Manafjement of an Intercolonial Railway,"*, ^-^ed 
 in April last. 
 
 This evidence of the readiness of the Lcfjislature of New Brunswick to pro- 
 mote this importaiu project of intercolonial communication has afforde*! me 
 much satisfaction. 
 
 Her Majesty's decision upon this Act, as well as upon a similar one received 
 from Nova Scotia will, however, be reserved until the arrival of the correspond- 
 ing Act from Canada. 
 
 I am, SiQ. 
 (signed) Newcastle. 
 
 No. J. 
 
 Tlic Uukeof Nfir- 
 caiilv, k.i.., tu 
 Lieut, CiiiTfrnor 
 Han.A.II.Cinriion. 
 Ill October iSlij. 
 
 • Tlic An l» till- 
 name ft.< ili,^ Dill 
 I'lii'loieH ill tioviT- 
 nor (lordon's De»- 
 pnlcli, No. ;ii, 17 
 April l8(),-),|irinl«il 
 at p;igc 27, 
 
 I 
 
 !i1 
 
 ii 
 
 — No. 4, — 
 
 (No. 43.) 
 Copy of a DESPATCH from Lieutenant Governor the Earl of Mulgrave to 
 His Grace the Duke of Newcastle, k.g. 
 
 Government House, Halifax, Nova Scotia, 
 29 April 186.-). 
 My Lord Duke, (Answered No, 33; 10 May 1863, page 34.) 
 
 I HAVE much satisfaction in informing your Grace that I have this day assented 
 to an Act passed by the Legislature of this Province, accepting the terms offered 
 by Her Majesty's Government for the construction of an intercolonial railroad ; 
 and I now enclose the copy of a Minute of my Executive Council, lORCther with 
 a copy of the Bill which has been passed, 
 
 I have, &c. 
 (signed) Mulgrave. 
 
 The Nova Scotia Act enclosed in this Despatch from Lord Mulgrave, and the Papers 
 appended to it, coincide with the New Briinswiik Bill and Papers above printed. 
 
 No. 4- 
 
 The Earl of Mul- 
 
 grare to tbc Duke 
 
 of Newcastle, k.o. 
 
 ay April 1803. 
 
 530. 
 
 & 
 
 ■%!)yik 
 
m 
 
 V 
 
 
 1 
 
 
 
 t 
 
 , 
 
 
 t*l 
 
 ij 
 
 
 r 
 H' 
 
 i 
 
 i 
 
 111 
 
 
 m 
 
 h 
 
 <\^ 
 
 34 
 
 No. 5- 
 Dukcof Newcaotlc, 
 K.O., to Lieut Ho- 
 vernor the Earl of 
 Mnlgrav*. 
 iC May 18C3. 
 
 • Pago 33- 
 
 No. ). 
 
 Governor General 
 Viscount Moiickto 
 tlieDu'<': uf New- 
 castle, K.G. 
 1 October 1863. 
 
 CORRESPONDENCE RELATIVE TO A LOAN FOR 
 
 — No. .-.. — 
 (No. 33.) 
 
 Copy of a DESPATCH from His Grace the Duke of Seaxiistle, 
 Lieutenant Governor the Earl of Mulgrave. 
 
 K.G., to 
 
 My Lord, Downing-struet, 16 Mtiy 18«3. 
 
 I HAVE the honour to acknowledge the receipt of your Despatch, No. 43* of 
 the 29th ultimo, enclosing, together witli a Minute of the Executive Council on 
 the subject, a Bill to which you had assented " to authorise a loan, and for the 
 construction and management of an Intercolonial Railway." Her Majesty's 
 Government regard with much satisfaction this evidence of the readiness of the 
 Legislature of Nova Scotia to promote this important undertaking. 
 
 1 have, &c. 
 (signed) Neucastle. 
 
 No. 6. 
 Duke of Newcastle, 
 K.G., to the Officer 
 Administering the 
 Government of 
 Nova Scotia. 
 10 October 1863. 
 
 • Page 34 
 (above). 
 
 (No. 60.) 
 
 — No. 6. — 
 
 Copy of a DESPATCH from His Grace the Duke of Newcastle, k.c, to the 
 Officer Administering the Government of Nova Scotia. 
 
 Sir, Downing-street, 10 October 1863. 
 
 I HAVE the honour toacknowledge the receipt, together with other Acts of the 
 Legislature of Nova Scotia, of " chapter 21, an Act to authorise a loan, and for 
 the construction and management of an Intercolonial Railwajr," passed in April 
 last. In my Despatch, No. 33* of the ) 6th May last, I intimated to you my 
 satisfaction at this evidence of the readiness of the Legislature of Nova Scotia to 
 promote ihis undertaking. 
 
 Her Majesty's decision upon this Act, as well as upon a similar one received 
 from New Brunswick, will, however, be reserved until the arrival of the corres- 
 ponding Act from Canada. 
 
 I have, &c. 
 (signed) Newcastle. 
 
 — IV. — 
 
 CORRESPONDENCE relating to the Survey of the Intercolonial Linb, 
 and the Constiiuction of the Truro and the Bend Line. 
 
 — No. 1 . — 
 (No. 93.) 
 
 Copy of a DESPATCH from Governor General Viscount Monck, to His Grace 
 
 the Duke of Nencastle, k.g. 
 
 ., , „ Quebec, 1 October 1863. 
 
 31y Lord Uuke, (Answered No. lOS ; 20 October 1 863. Page 36.) 
 
 I HAVE the honour to send for j^our Grace's information a copy of a Despatch, 
 and Enclosure which I have received from the Lieutenant Governor of New 
 Brunswick, in reference to the proposed Survey of the Line of the Intercolonial 
 Railway, and a Minute of the Executive Council of this Province in answer to 
 that Despatch. 
 
 I have sent a copy of this Minute to Mr. Gordon. 
 
 I have, &c. 
 (signed) Monck, 
 
to His Grace 
 
 n<\ 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICAN. 
 
 Knclo!»urp 1, in No. I , 
 
 M 
 
 Mv Lonl, Freileriitdii. !» SoptoiiiluT \x(i:\. 
 
 I RAVE the honour to transmit to vour Excellency the accompanying rnjiy of a Minute 
 of my Executive Council presented to nie to-<liiy. 
 
 2. I readily assent to the adi>iition of the courso recommended hy thi* Minute, and 
 entirely concur in the hope therciii expre.-scd tli:it no further departure iVom the termo of 
 the agreement entered into hy.thc tliree Provinces will he hereafter prc]io«ed l)y your 
 Excellency's Advisers. 
 
 I lia\e. &r. 
 His Excellency Viscount Monck, (si-'ned* Aiflmr U. (.'union, 
 
 &c. &c. &c. 
 
 Loci. 1, 111 No. 1. 
 
 To His Excellency the 
 
 Suli-enclosure. 
 
 Ilonourahle A. If. Gorilmi, cm.o.. Lieutenant (iovmior 
 Province of New Hrunswick. 
 
 of the 
 
 Executive Council Room. Id Septemlier lft(>3. 
 In recommending your Excellency to ajipoint, in conjunction with the Oovcrnnient of 
 Nova Scotia, an enj^inecr to make tlio iirehminary exploration and survey of ihe line of 
 the j>ro]>osed railway, ])reviou.'< to the passing of the Railway IJills hy the Canailian 
 Legi.slaturo. we are aware that we arc not adhering strictly tii the arrangements agrecil 
 upon at Quchee by the representatives of the three Provinces in Sc]itemlier la,-t, and ^uh- 
 Bcquently confirmed hy iter Majesty's representative in each, which jirovided that no 
 surveys shoidd he authorised until the necessary Legislation should he had hy the se\oral 
 Colonies and joint Commis.sioners appointed. 
 
 As sudi previous survey, however, is desired hy the Canadian (iovcrnment, they 
 bearing five-twelfths of tlie cost, we are induced to advise your Excellency to make the 
 necessary ap]X)intinent8 for that purpose in full faith that no other dcjiarture from the 
 compact entered into between the Provinces will be pro|)osed. and that the constru<'tion 
 of the railway, if found practicable, will be undertaken ujion the basis of that agreement. 
 
 We respectfully recommend that a copy of this Minute be transmitted to the Governor 
 General of Canada. 
 
 I have, &c. 
 (signed) S. L. Tlll,i/. 
 »»', //. Shkrs. 
 Chiirles U'atfers. 
 P. Mitchell. 
 John M'Millan. 
 James Steadmnu. 
 Georqe L. Ilatheway. 
 Willv.m E. Pfdey. 
 
 Enclosure 2, in No. 1. 
 
 Copy of a Report of a Committee of the Executive Council ; ajiproved by His Excellency End. a in No. i 
 tlie Governor General, 29 September 18(!;J, 
 
 The Committee of the Executive Council having had referred to them the Dcsjiateh 
 of the ISth September instant of His Excellenev, the Lieutenant (iovernor of New 
 Brunswick, transmitting cojiy of a ilinute of his Lxeeutive Council on the su'oject of the 
 contemplated survey for an Intercolonial Railway, have the honour to »id)mit for your 
 Excellency's consideration the following observations in relation thereto : — 
 
 The Committee find that whilst the Executive Council of New Brunswick advise the 
 appointment of a surveyor to act in conjunction with the surveyor appointed by this 
 Province to conduct the proposed survey, they would seem to qualify the recommendation 
 by associating with it a nope that the survey being accomplished, tlie basis agreed uj)on i. ■ 
 
 by the Convention held in September 18(52 vvill be adhered to, if the construction of the 
 railway be hereafter found practicable, ' 
 
 The Committee learn with pleasure that so far as the survey is concerned, their plans 
 are cordially acquiesced in by the Executive of New Brunswick, and thoy look forward 
 with satisfaction to the consummation of the important undertaking, of which the survey 
 is the preliminary step. In order that there may be no misapprehension however betvyeeu 
 the Governments of the Provinces liaving a common interest in this matter, the Committee 
 think it right to call to mind the manner in which the negotiations conducted in London 
 terminatcu, and the general position in which the question of any Intercolonial Railway 
 
 at present stands in this Province. 
 530. 
 
 E 2 
 
 The 
 
n^' 
 
 36 
 
 COHRESPONDENCE RELATIVE TO A LOAN FOR 
 
 »r 
 
 'i 
 
 ^ 
 
 ^ 
 
 ti 
 
 Tlir rViinmittce wrmld iTiiiind voiir Excellency that the conditions proposcrl i>y the 
 Ini|Krial (idvcrniiiunt in iciniu'-xiim with the assiftanco to lie rendered towards the con- 
 etnictioii <'l' the niilway, diflrred in some iin|iortaiit iiartieulars trmn the afrreenient of 
 Se|iteinl)ei' lH(i2,anil tVoiii the instructions which the delejratcs sent on the part ot'Caimila, 
 were charged to carry into etlt'ct. The Cominittee may refer to tlie distinct refusal on 
 the part of the imperial (lovernmenl to re^'ard the contrihiitioii which Canada might 
 make to the Intercolonial Railway as l;eing to iliat extent an expenditure for ilefcnsive 
 purposes, the proposed sinking fund, and to the conditions set forth as in the ninth of the 
 series of propositions presented hy the Imperial Ciovcrnment. 
 
 " Parliament not to he asked for this gtiamntcc nntil the line antl surveys shall have 
 hecn submitted to and apjii'oved liy ller Majesty's (iovernmcnt, and until it sliall have 
 heen shown to the satisfaction of ller Majesty's Government tliat the line can be con- 
 structed without further application for un Imperial Guarantee ;" the Imperial Govern- 
 ment tluis making the projiosed assistance hy way of loan contingent ujjon the results of a 
 j)revious survey, establishing the Mitfieicncy of the guarantee for the full purposes for 
 which it was to be granted ; the delegates were therefore constniined to decline the accept- 
 ance of a proposal fettered by conditions so mueh at variance with their instructions, and 
 their decision received tlie approval of their colleagues as being in harmonj- with the 
 spirit of the agreement arrived at by the Quebec Convention, and in entire conformity with 
 the unequivocal tone of public opinion in the Province. 
 
 The negotiations fotinded ujion the understanding entered into by the Convention of 
 Sejitember 1862, were regarded as terminated with the'return of the delegates to this Pro- 
 vince, and it was hoped that the report of this Council of 25th February last would have 
 sufficed to prevent misconception as to the necessary abandonment of the basis uj)on which 
 the negotiations u]> to that time had been founded, and to show that any further action by 
 the Government of this Province must be the subject of subsequent consideration. 
 
 It is further to be observed that the carrying out of the agreement of September 1862, 
 necessarily depended upon the success of the negotiations with the Imperial Government, 
 and the assent of tiie Legislatures of the three Provinces being obtained. These negotia- 
 tions having failed, and it beinfi; manifest that the construction of the railway could not be 
 attempted without Imperial aiu, the Canadian Government did not feel that they were in a 
 position to invite any action on the part of the Canadian Legislature, beyond making a pro- 
 vision for a preliminary survey, the results of which may lead to further negotiations, and 
 on a different basis from that agreed to by the Convention. 
 
 In order to promote the construction of a work which the events of each succeeding year 
 invest with greater importance, the Committee addressed themselves to the task ol de- 
 vising plans whereby tlic attainment of the object might be secured in a manner consistent 
 with the interests and resources of this Province. They found that the examination of the 
 route and tlie satisfactory completion tif a survey were also indicated by the Imperial 
 Governmcat as conditions precedent of any negotiations, and they then informed your 
 Excellency that they had decided upon recommending an appropriation by the Legislature 
 of Canada for the purpose of making such a survey as is necessary to the final determina- 
 tion of the several i)roposals. In confonuity with this determination, they have asked an 
 appropriation of 10,000 dollars during the present Session, and they have also appointed aa 
 engineer to proceed with the survey so soon as the requisite arraiigements can be comjileted. 
 The action of the Legislature has proceeded so far as that it mav be regarded as having ren- 
 dered the appropriation a certainty, and the immediate commencemeiit of the survey is 
 therefore dependent only upon the unqualified concurrence of the Provinces of Is'ova Scotia 
 and New Brunswick. 
 
 The necessity of a prompt decision on the jiart of the Government of New Brunswick, 
 with a view to an early commencement of the survey, is obvious, inasmuch as the season 
 during which this survey may be most advantageously performed is rapidly passing 
 away. 
 
 (Certified.) 
 
 William H. Lee, CE.C. 
 
 No. 2. 
 Duke of New- 
 CRBtle, K,o.,to Go- 
 vernor General 
 Viscount Monck. 
 20 October 1863. 
 
 • P»ge 34. 
 
 (No. 108.) 
 
 — No. 2. — 
 
 Copy of a DESPATCH from his Grace tlie Duke oi Newcastle, k.c, to Governor 
 
 General Viscount Monc.'\ 
 
 My Lord, Downing-street, 20 October 1863. 
 
 I HAVE the honour to acknowledge the iecoipt of your Lordship's Despatch, 
 No. 93,* of the 1st instant, enclosing a Minute of your Executive Council, 
 approved by yourself, arising out of the proposed commencement of the prelimi- 
 nary surveys for the Intercolonial Railway. 
 
 I understand this Minute to embody the decision of the Canadian Government 
 to the following effect : that the negotiations with the Imperial Government, 
 commenced last winter, with a view to the construction of that railway, are con- 
 clusively 
 
R 
 
 nposcil l>y tlic 
 urds llic I'on- 
 iiizrofiiicnl 'if 
 art ol'C'aimtla, 
 net rei'u.-^al i>n 
 Caiiailii inij'lit 
 e for <lel'<iiHivc 
 le ninth of the 
 
 cys i'hall have 
 I 'it shall have 
 
 10 can be con- 
 [jcrial Govern- 
 ihe results of a 
 
 11 pui'iioseB for 
 line the iicccjrt- 
 structlons, and 
 nony with the 
 lonformity with 
 
 Convention of 
 ,tC8 to this Pro- 
 li-t woiikl have 
 asis upon which 
 rther action by 
 B ration. 
 
 epteniber 1862, 
 nl Government, 
 
 Thegc negotia- 
 ly could not be 
 It they were in a 
 il making a pro- 
 egotiations, and 
 
 succeeding year 
 the task ot de- 
 lanner consistent 
 lamination of the 
 jy the Imperial 
 a informed your 
 the Legislature 
 final determina- 
 T have asked an 
 Iso appointed an 
 m be completed. 
 ?d as having ren- 
 )f the survey ia 
 s of Nova Scotia 
 
 S'cw Brunswick, 
 
 eh as the season 
 
 apidly passing 
 
 H. Lee, c.E.C. 
 
 j^qi 
 
 G., to Governor 
 
 )i 
 
 ctober 1863. 
 
 p's Despatch, 
 ;utive Council, 
 of the prelimi- 
 
 in Government 
 Government, 
 ilway, are con- 
 clusively 
 
 .\N INTERCOLONIAL R.MLWAY (NORTH AMKRICA). j; 
 
 chisivoly iibandoiied ; iliat tii Provincial fiovcrnmcnti* (and thercfoii", of i\)ur*«>, 
 till' fiovennm lit of tlii> c'oiiiitiy ), an- IK) lon;;i'r bound bvtluir i\<'ii'ciivi' pro 
 posiils ill ifl.iliii!! to that projrct, and tliiit by rejei-tiii'^^ tlieoHcrs made 1; >l wIukt 
 by tlic Homo Govcrnuuiii, tin- ('auailiaii (iovtrninciit Ims placed iN<'lf at libertv 
 to repudiatt' al^o fbi' Convention of tlio previous Septpinber. 
 
 I find sdiiuMliflieulty in leeoiu'llin;,' tiic terms nftliis Minute with those of vour 
 Lordship's Ue->j)ate!i, No. h7, ( t' the 14iii ultimo, in which you conveyed ilii- re- 
 coniineudatioii of yom (iovernment that hii engiiucr should be appointed bv tin; 
 Imperial Goveinmt'iit for t!ie preliminary surveys in apparent pursuance of the 
 terms embodied in tiu; Treasury Mcmoiaiulum of December last, which M.'ino- 
 randum <\as based ujion tlie negotiations which your Governinenl now treat as 
 abortive, and I am ilierefore somewhat at a loss to understand on what grounds, 
 or in what capacity I have bicn requested to nominate a surveyor on behalf of 
 the British Government. 1 have, however, no difficulty in stating tliat 1 have 
 every desire to facilitate the operations of the Provincial Government in this 
 inattf-r, and in lepeatini: that tiie pveliuiiiiary survey may, in my opinion, very 
 properly be phiced in Sir. Fb uiinji's hands. 
 
 I have, &c. 
 (signed) Xeucd.stk. 
 
 — No. 3. — 
 (No. no.) 
 
 Copy of a DESPATCH from Governor (ientral Viscount Monck to His (iiace 
 
 the Duke of Newcuntle, k, g. 
 
 Government House, Quebec, 
 My Lord Duke, 7 November 1H03. 7 
 
 I HAVF. tiie honour to acknowledge the receipt of your Grace's Despatcii, 
 No. 108,* of 20 October, in reference to the last Minute of the Executive Council 
 of this Province, which I transmitted to your Grace on the subject of the con- 
 templated survev ot the proposed line of the Intercolonial Railway. 
 
 In reply, I have to inform your Grace, that the Government of Canada con- 
 siders that the disagreement between the Imperial Government and the delegates 
 of Canada with regard to the teinis on which it was proposed to grant the 
 Imperial guarantee for the loan necessary for the construction of the line has 
 rendered furtiier proceedings on the basis of the agreement of 1802 impossible, 
 and that, as a lucessary consecpieuce, neither the Imperial Government, nor that 
 of Canada, should be considered as concluded by any of the stipulations entered 
 into on that occasion. 
 
 The Canadian Government is however impressed with the importance of the 
 proposed work, and desirous of taking every measure calculated to lead to its 
 
 execution. 
 
 This Government entertains the strongest conviction, that in order to render 
 the scheme acceptable to the public of Canada, and therelty to secure for it that 
 support in the Legislature^ without which it is useless for the Executive to enter 
 into any further preliminary negotiations on the subject, a survey, which will 
 afford a trustworthy basis for an estimate of the probable cost of the work, is 
 
 indispensable. . „ , ^ , ,r. 
 
 Should the results of the survey prove satisfactory, the Canadian Government 
 look forward to obtaining at some future period the co-operation and assistance 
 of the Imperial Government in the execution of this work, and it is with the 
 design that Her Majesty's Ministers may be officially satisfied with the compe- 
 tence of the persons appointed to conduct the proposed survey, and of the trust 
 which should be reposed in their reports that I have, at the desire of the 
 Executive Council, requested your Grace to appoint an engineer to act on the 
 part of the Imperial Government in the survey with those nominated by the 
 
 Provinces interested in the work. ,, , , n ■ n> i 
 
 It is a matter of great satisfaction, both to myself and to the Executive Council 
 of Canada, that your Grace is disposed to join with us in the proposed survey, 
 aiid .0 express your app'obation of the selection we have made ol .Mr. Sandlord 
 fi ;„„ „<= ,1,1 „„n.!nppr *n reorescnt Canada ia the duties connected with it. 
 
 No. .1. 
 
 (iovrrnor VidOdUiit 
 Monck t'l the 
 DiiUc iii' Niw- 
 ca»tle, I. li. 
 7 >i(i\(iubfr l8Cj. 
 
 Fleming, as the engineer ♦o represent Canada ia 
 
 I have, kc. 
 (signed) Monck. 
 
 I 
 
 530. 
 
 E3 
 
m\ 
 
 I -. I 
 
 n*' 
 
 n '. 
 
 •H; 
 
 qq 
 
 38 
 
 Eficl. ill No. 4. 
 
 No. 5. 
 
 DukeofNc«- 
 cnstle, K.o., to 
 Viscount Monck. 
 s(> March 1864. 
 
 * Page 38 
 (above). 
 
 CORRESPONDENCE RELATIVE TO .\ IX)AN FOR 
 
 - No. 4. - 
 
 (No. M) 
 
 Go. riK 1 Viscount 
 Muiick to the 
 Duki' of New- 
 castle, K.c . 
 aOFcbriia-v i8<;.t. 
 
 Copy of a DLSFATCH from Governor General Viscount AJonck to his Grace 
 
 the Duke of Newcastle, k.o. 
 
 Quebec, -20 Feliruary 1864. 
 My Loni Duke, (Answered, No. 31, 20 March l's04. Page 38.) 
 
 I HAVE the liouour to enclose for your Grace's informavion, a copy of a 
 Despatch which I have addressed to the G'>vernors of Nova Scotia and New 
 Brunswick respecting the survey of the ine of the proposed Intercolonial 
 Railway. 
 
 1 have, &c. 
 His Grace the Duke of Newcastle, &c., &c. (signed) AJonck. 
 
 Enclosure in No. 4. 
 
 Goveniment House, Quebec. 
 Si) , 20 Februaiy 1864. 
 
 Kefkuring to tlie coirespoudeucc wliioh has taken place between the Government of 
 Canada and that of New Bniuswick, in reference to the execution of a survey of the 
 route of the proposed inter-colonial railway, I have the honour to inform your Excellenc)-, 
 that, in order to avoid further delay, the Government of Canada has decided to undertake 
 the survey on its own responsibility, and at itc sole ex])ense. 
 
 It wil. be for the Governments of New Brunswick and Nova .Scotia hereafter to con- 
 BJder whether, if the rosults of the survey shall prove useful to the enterprise, they will 
 deem it nght to reimburse to Canada their proportions of the cost of the work. 
 
 Mr. 'Sandlbrd Fleming, the engineer appomtcd to conduct the survey will be des- 
 patched to the seat of his operations as soon as the necessary arrangements can be 
 completed, and I have to request that you will give directions that he may receive any 
 assistance in tlie discharge 01 his duties which it may be in the power of your Govern- 
 ment to afford him. 
 
 I have, &c. 
 'ngned) Monck. 
 His Excellency the Honourable A. H. Gordon, c. m. g., 
 • &c. • &c. &c. 
 
 Fredericton, New Brunswick. 
 Hb Excellency Major General Doyle, 
 &c. &c. &c. 
 
 Administrator, Halifax. 
 
 (No. 31.) 
 
 — No. 6.— 
 
 Copy if a DESPATCH from His Grace the Duke of Newcastle, k. g, to 
 Governor General Viscount Monck. 
 
 My Lord, Do vning-street, 26 March 1864. 
 
 I HAVE the honour to acknowledge the receipt of your Lordship's Despatch, 
 No. 24,* of the 26th ultimo, enclosing a copy of a Despatch which you had 
 addressed to *he Lieutenant Governor of New Brunswick, communicating the 
 decision of the Canadian Government to undertake the survey of the line of the 
 proposed Intercolonial Railway on its own responsibility, and at its sole expense, 
 leaving the question of making any reimbursement to the discretion of the 
 Governments of Nova Scotia and New Brunswick. 
 
 I am, &:c. 
 (signed) Newcastle. 
 
AN INTERCOLONIAL RAILWAY (NORTH AMERICA). 39 
 
 - No. «. — 
 (No. 32.) 
 
 Copy of a DESP.\TCH from 'iovornor C^fneral Viscount .\fonrk to His (Jnif. 
 
 the Duke of Nrwco'tle, k.o. 
 
 My Lord Duke, Qiuhfc, la Mardi 1».,4. 
 
 I HAVE the honour to enclose for yo'jr Grac-'s information, u copy of tlic 
 instructions given by tliis Government to Mr. Sauilford Fleming, f..r tli.' «iirvy 
 of the line ot the Intercolonial Railway, 
 
 I hnve, i;e. 
 (signed) Mvnc/t. 
 
 No. I'. 
 
 ▼ iicouiii .Nlunck 
 
 (o the Duke of 
 %t -if*.- — « 
 
 15 March \M4. 
 
 Enclosure in No. U. 
 
 Secretary's DtHoc, t^ueboi'. 
 Sir. 11 Manli \HtU. 
 
 I HAVK the hono\ii- to enclose to you herewith, a copy of my letter wliicli I Iium' thii 
 day iuldresHetl to Mr. Sandf'ord Flcminf^, c. K., at Frc'derictfji, New l?riiTK<wii-k. on tlie 
 subject of his instructlDna with reference to the nurvey of the i>roiM>s»d route >>t' the 
 Intercolonial Railway. 
 
 I have, &c. 
 The GovernorV Secretary, (signed) A. J, l'-,yussou Blair. 
 
 &c. &c. &c. 
 Quebec. 
 
 End, in No. 6. 
 
 Sub-Enclosure. 
 
 Secretary's Office, Quebec, 
 Sir, n'Marcli 1WC4. 
 
 I xow addrcHsi ;o yo\i in writinj; instructions liy the Governiacut of Canada lor the 
 survey intrusted to you of the route of the projioscd Intercolonial Railway, the .-^ub- 
 etanee of which instructions has already l)cen (•ommunicated to you in a verlial manner, 
 such mode of communication having been adopted at tlie time in order to avoid delay in 
 your departure from Quebec on the duty in question. 
 
 1. You are instructed on the part of the Govermnent of Canada to proceed inune- 
 diately to a survey and examination of the territory through which the proiKjsed line oi' 
 railway between this Province and those of New IJrunswiek and Nova Scotia ■vould run. 
 
 2. Tins survey and examination are intended for the purpose of enabling the Govern- 
 ment of Canada to form an estimate of the practicability of the j'roiM>seu undertaking, 
 and of its probable cost in order that the expediency of engaging in the work itself may 
 be judged of in a satisfactory manner. 
 
 3. The information so obtained \vill also be at the service of the other Governnientu 
 interested if desired. 
 
 4. On a general examination of the country you will consider the routes which have on 
 previous occai^ions been contemplated for the object in (juestion, as well as an; otiiers 
 which may seem to vou worthy of attention, 
 
 5. Your notice wdl be especially given to any obstacles which may present themselves 
 as re(|uiring serious expense to surmount, and to tiie best nictluKis of overcoming .•'uch 
 obstacles, or of avoiding them by deviation.-^ from the direct line, 
 
 6. You will also pay at'cniim; to the distance of what n;ay in other respect.^ appeur the 
 most eligible line from tlic frontier of the United States at various jioints, 
 
 7. You will make your calculations in the matter of the ]iroliable cost u\' the work 
 with a due regard to economy, but at the same time to full efficiency. 
 
 8. Similar considerations will guide you as regards the survey and examination, 
 
 9. You will endeavour to act in a cordial an<l hannonions sjiirit with any persons who 
 may Ite appointed either (m the part of the sister colonies or of the Imperial Government 
 to co-operate with you. 
 
 10. The completion of the survey and examination at as early a period a? jwssible is 
 highly desu-able. 
 
 11. You will report your progress from time to tiiae to the Provincial Secretary of 
 Canada, 
 
 I have, &c, 
 (signed) A. J. Fcrr/usson Blair, Secretary. 
 Sandford Fleming, Esq., Civil Engineer, 
 Fredericton, New Brunswick. 
 
 
 n 
 
 n 
 
 530. 
 
 E4 
 
^(a' 
 
 40 
 
 CORRESPONDENCE RLLATIVE TO A LOAN FOR 
 
 r3i' 
 
 h\A 
 
 '^11 
 
 *'1 
 
 miiiL 
 
 iJiike of New- 
 cattle, K.ci., to 
 Lieut, fiovcmor 
 Hon.A.H.Gordou. 
 S3 October 18C3. 
 
 • rase 34. 
 
 
 No. 8. 
 Duke of New- 
 castle, K.r.., to 
 Lieut. Governor 
 Hon. A. H.Gordon. 
 19 March 1863. 
 
 
 (No. 5fl.) 
 
 No. 7. — 
 
 Copy of a DESPATCH from His Grace the Duke of Newcastle, k. g., to 
 Lieutenant Governor the Honourable Arthur Gordon. 
 
 Sir, Downing-stroet, 23 October 1863. 
 
 Learmn-o from Lord Morick's De-spatch to me of the Ist October (No. 93),* 
 that his Ix)rdhhip had sent you a copy of an approved Minute of the Executive 
 Council of CanaJa, dated the '29th of last September, purporting to be an 
 answer tu your Despatch to his Lordship of the 18th of the same month, on the 
 subject ot the contvniplated survey of the line for the Intercolonial Kailroad, I 
 deem it advisable to put you in possession of the Despatch which I have 
 addressed to Lord Monck. I accordingly enclose you a copy for your infor- 
 mation. 
 
 I have, &c. 
 (signed) Newcastle. 
 
 (No. 18.) 
 
 — No. 8. — 
 
 Copy of a DESPATCH from his Grace the Duke oi Newcastle, k. o., to 
 Lieutenant Governor the Honourable Artnur Gordon. 
 
 Sir, Downing-stieet, 19 March 1864. 
 
 I TRANSMIT to you, foT your information, a copy of a correspondence whicli 
 has passed between this Department, the Treasury, and Mr. Watkin, tiie Pre- 
 sident of the Grand Trunk Railway, on the subject of the proposed Intercolonial 
 Railway. 
 
 From this correspondence you will learn the understanding upon which Her 
 Majesty's Government are prepared to accede to the proposition now submitted 
 to them, with regard to the constr* ction of a line of Railway between Truro 
 and the Bend, in the Provinces of T^ew Brunswick and Nova Scotia, as a part of 
 the larger project for completing the railway communication between Halifax 
 and Quebec. 
 
 The question whether this sec' ion of the railway shoc.Id be at once under- 
 taken is, of course, entirely for ' he decision of tlie Provincial Legislatures. I 
 need hardly say that I shall myst If view with interest any step which tends to 
 facilitate the completion of the pl.in contemplated in the negotiations of 1862-3. 
 
 I have, &c. 
 (signed) Newcastle. 
 
 No. 9, 
 
 Duke of Newcasile, 
 K.o., (0 the OFicer 
 
 administering the Go- 
 vernment of Nova 
 Scotia. 
 23 October 1863. 
 
 DttW" -- 
 
 t86». 
 
 (No. 64.) 
 
 No. 9. 
 
 Copy of a DESPATCH from his Grace the Duke of Newcastle, k. g., to the 
 Officer Administering the Government of Nova Scotia. ^ .. 
 
 Sir, • Downing-street, 23 October 18G3. 
 
 I HAVE the honour to transmit, for your information, tlie copy of a recent 
 correspondence between the Governor of Canada and myself, on the subject of 
 the survey of the line for the Intercolonial Railway. 
 
 I have, &c., 
 (signed) Newcastle. 
 
^i^y 
 
 3R 
 
 AN 
 
 INTERCOLONIAL RAILWAY (NORTH AMERICA). 41 
 
 Je, K. o., to 
 
 I. 
 
 tober 1863. 
 >er (No. 03),* 
 the Executive 
 iug tu be an 
 month, on tlie 
 al Kailroad, I 
 Khich I have 
 )r your infer- 
 
 8rc. 
 ^ewcatlle. 
 
 k, K. a., to 
 
 larch 1864. 
 adence whicli 
 ttkin, the Pre- 
 i Intercolonial 
 
 on which Her 
 low submitted 
 etwcen Truro 
 fi, as a part of 
 ween Halifax 
 
 once under- 
 lisiatures. I 
 lich tends to 
 IS of 1862-3. 
 
 'caslle. 
 
 K. G., to the 
 
 ober 1863. 
 
 of a recent 
 le subject of 
 
 (No. 1.,.) 
 
 — No. 10. 
 
 Copy of a DESPATCH from His Grace the Dnke of NewcastU, k.o., to the 
 OfRctr Administering the Government of Nova Scotia. 
 
 N. 
 
 Sir. 
 
 Dnwning-strcet, 11» March 1864. 
 
 «o. Id. 
 
 I* t K. R.>t;rt», llirt,, lu 
 I'-e OtficiT aUiriuiittt* 
 init titp Govfrnmnit 
 
 of N. XSCDIII. 
 
 IV >Uuh IMI, 
 
 C„i,„ . 
 T "* <>m 
 
 . ........J..... x\j juu, .«. j»/..i ■■■■III iiiaiiuii, a vu|>^ ui u t-ui ii3:«(H>inn-iicc WHICH 
 
 \\a» pai-sed between this Deimtmeat, the Treasury, and .Mr. Vkatkin, tlie Pre 
 sident of the Grand Trunk Railway, on the subject of tlie pro|Mi!Kjd Inter 
 colonial Railwav. i,^ - 
 
 Fi(im this correspondence you will learn the understanding upon which '■""■^'^'''Co'oa,,, 
 Her Miijesty's Government are prepared to accede to the proposition now sui)- '' "-^' 
 mittcd to th"m, with regard to llie construction of a line of railway between 
 Truro and the Bend, in tiie Provinces of New Brunswick and Nova Scotia, us 
 a part of the larger project for completing the railway coniniunicittion between 
 Halifiix and Quebec. 
 
 The qui M ion whether this section of the railway should he at once under- 
 taken is, ( f totirs-e, entirely for tlie decision of tiie Provincial Legislatures. 1 
 need hardly say that I shall myself view with interest any step which tends 
 to fiicilitate the rompletion of the plan contemplated in the negotiations of 
 1862-G3. 
 
 1 have, &c. 
 (signed) Neiccastle. 
 
 
 (No. 35.) 
 
 — No. 11. 
 
 Copy of a DESPATCH from the Officer Administering the Government of 
 Neva Scotia to his Grace the Duke of Newcastle, k.o. 
 
 Halifax, Nova Scotia, 13 April 1864. 
 My Lord Duke, Answered, No. 8, 6 May 1864, page 42.) 
 
 I THINK it right to keep your Grace informed with reference to the action 
 lately taken in the Legislature of this Province on the subject of the Intercolonial 
 and other railway projects. 
 
 A Bill has passed both branches of the Legislature providing for the extension 
 of the railway from Truro to Pictou. 
 
 A Bill has also passed tlie I.Awer House, by a very large majority, re^«aling 
 the Intercolonial Railway Bill, passed last Session. 
 
 Your Grace's Despatch, No. 16,* of the 10th March, on the subject of the 
 Intercolonial Railway received by last mail, was immediately 011 its receipt laid 
 upon the table of both Houses. 
 
 The second reading of the Repeal Bill has not been moved in the Upper House, 
 and I do not know whether it will be pressed. 
 
 A resolution (copy of which is transmitted herewith) has also passed the 
 House of Assembly by a majorty of 28 to 8, and was yesterday laid on the table 
 of the Legislative Council, but it appears uncertain what action will be taken 
 upon it by that body. 
 
 I have, &c. 
 
 * ' ■' ■ (signed) Haslings Doyk. 
 
 No. II. 
 
 The Officer admi- 
 nistering tlie Go- 
 vernment of Nora 
 ScoiiK to Ike Duke 
 of Newcattic, k.o. 
 13 April 1864. 
 
 above. 
 
 Newcastle. 
 
 -yim^l' 
 
 530. 
 
 # 
 
^iV 
 
 CORRESPONDENCE RELAllVE TO A LOAN FOR 
 
 Enclosure in No. 11. 
 End. in No. 1 1 . In the Hou^c of Asoembly, 1 1 April 1864. 
 
 Penoheil, — That the Exerutive Govemmeiit be •athoriaed to Mcure the constniction ot 
 the railway from Truro, or from tlM point of junction with the main line to the border 
 of New Brunxwiok, through the agency of any rcfponeible Company, provided no greater 
 liabilitr i^i incurred than four per cent. ]>i'r annum, upon a ca]>ital of 10,0<K)/. currency, 
 per mile, for a period not to exceed 20 years, and provided connexion is thereby secured 
 witli tlie railway from St. John to Shediac ; and that the Government be authorised to 
 procure tlie construction of the line west of Windsor, io the same manner to the extent 
 of four cent, on a capital of 6,000 /. per mile. 
 
 t . 
 
 •• N 
 
 %\ 
 
 Nu. 12. 
 Right Hgn. E. 
 Cardwell, m.p., to 
 the Officer admi- 
 nistering the Go. 
 Temment of Nova 
 Scotia. 
 
 5 May 1864. 
 
 * Puge4i. 
 
 No. 13. 
 Right Hon. E. 
 Cardwell, u.p., to 
 Viscount Monok. 
 95 June 1864. 
 
 (No. 8.) 
 
 — No. 12. — 
 
 Coi'Y of ii DESPATCH from i!ie Right Honourable Edward Cardwell, m.p., 
 tlie Officer Administering the Government of Nova Scotia. 
 
 Sir, Downing-strcet, 6 May 1864. 
 
 I HAVE (lie honour to acknowledge the receipt of your Despatch, TSo. S&,* of 
 the 13ili of April, relative to the action taken in the Legislature of Nova Scotia 
 on the subject of the Intercolonial and other Railway projects. 
 
 I have, &c. 
 (signed) Edwarl Cardwell. 
 
 (No. 31.) 
 
 — No. 13. — 
 
 Copy of a UFSPATCH from the Right Honourable Edward Cardwell, m. p., 
 to Governor General Viscount Monck. 
 
 My Lord, Downin<;-8treet, 25 June 1864. 
 
 I HAVE the honour to transmit to you, for your information, the enclosed 
 copies of a correspondence which took place between this Department, the 
 Treasury, and Mr. Watkin, relative to the construction by the Provinces of New 
 Bninswick and Nova Scotia of a railway between Tritro and the lieud, which 
 would serre hereafter as the first link in the Intercolonial Railway, if that project 
 shoi'.Id be carried into execution- 
 
 These papers were not sent to you at the time, because they more immediately 
 referred to a v/ork which was confined to the Lower Provinces ; but, considering 
 the bearing which they have on the more general scheme of the Intercolonial 
 Riiihvay, and especially upon the applicability and duration of the offer which 
 has been made of a guarantee on the part of Her Majesty's Government, I think 
 it right to brinf inem also within the knowledge of yourself and of your 
 Government. 
 
 I have^ &c. 
 i (signed) Edward Cardwell. 
 
 End. I, in No. 13, 
 
 Enclosure 1, in No. 13. 
 
 Sir, ' ■ • Downing Street, 11 March 1864. 
 
 In the months of December 1862 and January 1863, I had the honour, by direction of 
 jthe Duke of Newcastle, to submit to you, for the consideration of the Lords of the 
 Treasury, certain proposals made on behalf of the Colonics of Canada, Nova Scotia, and 
 New Brunswick, m relation to the completion of a line of Railway, now partly in exist- 
 ence, between Halifax and Quebec. 
 
 The conclusions approved by their Lordships and his Grace, were recorded in two 
 memoranda, which, though not (embodied in the usual form of departmental correspond- 
 ence, were i)laced in the hands of the Colonial Delegates, and have since been recited in 
 
 lull 
 
 ''^yj. 
 
JR 
 
 I construction oi 
 le to the border 
 adcd no greater 
 ,0<M) /. currency, 
 thereby secured 
 e authorised to 
 or to the extJent 
 
 dwell, M. P., 
 itia. 
 
 i May 1864. 
 h, ^fo. 36,* of 
 )f Nova Scotia 
 
 r .' Cardwell. 
 
 trdwell, M. p., 
 
 June 1864. 
 
 , the enclosed 
 epartment, the 
 jvinces of New 
 16 Bend, which 
 
 if that project 
 
 )re immediately 
 lut, considering 
 le Intercolonial 
 the oifer which 
 •nment, I think 
 f and of your 
 
 v'd Cardwell. 
 
 1 March 1864. 
 r, by direction of 
 the Lords of the 
 Nova Scotia, and 
 w partly in exist- 
 
 recorded in two 
 ental correspond- 
 oe been recited in 
 fuU 
 
 9^y 
 
 AN INTERCOLONIAL RAILWAY (NORTH AMERICAN 
 
 43 
 
 full in the I rovinc.»l Act, .o whi, h I .hall ,,ro«.ntlv rotVr. It ha., hither... n,>t b.-en 
 thought „ccca«.ry to make thc«, transaction, tke .ubJeVt of ,„..„. fon,ml of^rJn.. . h^ir 
 
 CI • 1 I • 1 .• 11..'. b "'■" > Miiiumiii, III III- nr«i iiiHiiuirt' on 
 
 olonial Lc.s..l«t.o,j. and thM LcKisiati..,, hu. as y.t b-a jmrtiallv taken ,.l«.e. ul wh " 
 the proM-cut >.,....( tin. uudcrtakin;; a- a wh-lo. i, tin.H i„ al.oya.ur. a nr',....! b..Vr'..^.lu'd 
 
 ix|«!i«o or liHbilitv (Ul tho Iiii|>orial 
 lent of <.ii.' Hurt of tJu! line. 
 Iii-imiis of rccomiucndinK htrimgly for the fuvomablc oon- 
 
 liif Cdioniiil Lcjiir"- 
 
 '■«/i, 
 
 - 1*;; "'^H. 
 
 '3. 
 
 hi* Grace which, without entailin- any a.l.iitional ..x|«.n>o' .,r linbilitv n„ tli 
 Government, mav lead to the ininaMJiHt. c.mnion. enunt ..f ..n.- t,art ,>f tJie line 
 
 llii«pn>;io«aMuii (trace in dei'' 
 bidcration of their l.iiril.-iiiiis. 
 
 The cai*c now stands iu< follows : — 
 
 In the memoranda aJready alluded t... Her Majp.tvV (Jovcmmrnt «afo the toniw on 
 wUieh they are |.rei.are.l to pr..|»...o to IVIiaincnt I., guarantee a bmn ol ;J.IKhi.(mk./ to be 
 spent 111 ninipletin^r railway .uniiuuni, ali,,n lielwceii (^iiei.eo mul llulifax 
 
 It 1=. .tipulat.d that the line shall l.e appr..v...l by tl... II e ( i.,vernineMt that arran-a- 
 
 inents there .Kw-'iibed shall bo made for the repayment of il„. l„an. and that Iler Maje.tv^ 
 government shai approve the -nrvf y-. and mn-t be sali.licd that .he lin.' ean be cm- 
 strncted without turtlier apiilication (or an Imperial ;;iiaraiitee. 
 
 It is iilMi stipulated that liilis shall bo " iinnie.liatelv " submitte.l to 
 latiires, f.e },'ivinf: etieot to the plan. 
 
 Snob Hills have l|oen submitteil to the Lef;i-latnres ol .New Hriniswiek and .\,.va A'» 
 .Sootia, and passed Copies of the Arts are m.w enclosed foi th.ir Lordships- information, o * ''' 
 It wdl be nb.-erved, that they contain transeriiits of the memo amia of December lh(i2 aii.l .''' '*' .,. 
 
 •January 18t>3. J he C'un»<lian Government has not Kiibmitted i.:.v lii", and apoears to ^'"''o .s„ -.^ 
 
 deny its oblifiation to the twoothor Colonifs to do«.. ^^j. ''•.•Ti 
 
 But it apiHWH ])<.s.-iblo, that uotwithstuiidin^' the haekwar(li,e=.s of that (iovornment, the ^"~^ 
 two lower 1 rovinces m«y think it worth while at on.-e lo construct u certain portion of 
 the line (j. e., irom Trnro, the j.rcsent tPi-mimis in Nova Scotia, to what is called the IJond), 
 if they can be assured that they will not. by this premature action, prejudice their claim 
 on the Imperial Guarantee, snpi.osiiifr that this };narantee should eventuallv be f,'rantid. 
 
 It appears just lo His Grace that, if the iindertakiuf; is a \aluablo one ( w'hieh it c. rtainly 
 is), the Ijower Provinces oujiht not t<( sutt'er by their forwardnebri in commencing; it, pro- 
 vided their work is really what it oiij,dit to be, "with reference to the main scheme. 
 
 ^ But if the railway is at once commenced, <iuestioiis mif;ht arise (in which Her Majesty's 
 Government cu{,dit not to bo involved) a^* to tli'j pro|iortioii in which the dilFcrcnt Pro- 
 vinces are entitled, or called U|Mm to share in the advautaj^es or burdens of the (riiaraiitoed 
 loan. And it is also lo be borne in mind, that in strictness of coiintruction Her Majesty's 
 Governincnl may now, jicrhaiis. be entitled to withilraw the promises contained in the 
 memoranda of 1862-3, on the ground that the couditiou provided of " immediately " sub- 
 mitting the necessary Bills to the Colonial Legislatures, has not been performed. This 
 right Her ^lajesty's Government would implicitly waive, if they sanctioned the com- 
 mencement of the railway by Xova Scotia and New Brunswick. 
 
 His Grace thinks that the first of these two questions (that respecting the aiiportionnient 
 of the guarantee), so lar as regards the .idvantage derivable from the guarantee, is almost 
 exclusively for the consideration of the ProviiK-cs themselves; and as regards the liabili- 
 ties attaching to it, that Her Majesty's Government have no reason for desiring any altera- 
 tion in p'-i.seipienoe of the ])roceedings now contemplated, the only object of this country 
 being to ensure that the road is made, and the debt |)roiicriy secured. 
 
 On the second point, it ai)])ears to his (iracc that the jiresent may be a jn'oipcr oppor- 
 tunity for fixing a definite period within which, if at all, the Legislatures must etl'ect their 
 legislation. 
 
 His Grace would therefore propose that the promoters of this undertaking (who, he 
 understands, have already brought their ease under the consideration of the Lords of the 
 Treasury), might be answered to the following effect, — that if the Lower Provinces shall, 
 at their own expense, commence the construction of a railway on a. line approved by Her 
 Majesty's Government between Trnro and the Bend, and if snbsetpiently the proposed 
 loan of 3,0(X),000 /. shall be raised under the Imperial guarantee, in virtue of the oiler con- 
 tained in the above-mentioned memoranda, the railway between Truro and the Beml, and 
 the works constructed thereupon by the Lower Provinces shall (as I'ar as Her Majesty's 
 Government is concerned), be considered to fi>rm part of the railway on which the loan 
 of 3,000,000/. is to be expendetl, and Her Majesty's Government see no reason for 
 requiring any change in that part of the nicnioranda which declares that ;3-12th8 of the 
 loan shall be chargeable against Canada, 3i-12ths against Nova Scotia, and 3i-.I2ths 
 against New Brunswick. 
 
 It may be added that the further question what part of that sum of 3,000,000 / should 
 be paid over to New Brunswick and Nova Scotia, in consideration of the works effected 
 by then, without the concurre ice of Canada, will be mainly a question for the Provincial 
 Goverjmcnts, but that the Imperial Government before being party to any such payment, 
 in ref.pect of this section of the railway, must have sufficient security tliat the whole 
 Bchemc will be prosecuted with effect- 
 It must be clearly explained that this assurance is given merely for the purpose of 
 providing (as far as Her Majesty's Government is concerned), that New Brunswick and 
 Nova Scotia shall not be prejudiced by commencing the railway in anticipation of a final 
 arrangement (if such an arrrngement should ever take effect), and is not to be understood 
 as in any way varying or keeping alive, or extending tliat an-angemcnt ; or as imiiosiug 
 
 530. V i on i 
 
 
rni 
 
 i:p 
 
 (^C^fe 
 
 44 CORRESPONDENCE RELATIVE TO A LOAN FOR 
 
 on the Imperial Government any liability to auiit in the lonatruction of the shorter line 
 now conti-miilated, whether hy way of giiaranteo oi otliurwi«e, except in purauance of 
 the oHcr of Deecmbcr iNblJ ami .January 1863. It follows, of cuurrie, that if that offer 
 nhould fall to the crouml, this a«surajice will fall with it. And it should be jmrticularly 
 |Miinted out that tiiu present correspondence is not t« affect the right of the Home Oovcrn- 
 nient to determine for ilj-clf at what Deriod the offer of 1862-63, shall be held to bo can- 
 celled by the failure of the Canadian Uovcrnment to fulfil the first of the proponed condi- 
 tions, viz., that of submitting iinuicdiately to the Colonial Legislatures the Bills retiuired for 
 carryinjr that offer into effect. 
 
 It niight however be added, that Her .Majesty's Government consider that offer as still 
 subsisting ; but would certainly cease to do so, unless a delinitivc arrangement were made 
 and the necessary Colonial liiws passed within five years of the date of the first memo- 
 randum, t. r. before December 1867. 
 
 G. A. Hamilton, Esq. 
 &c. &c. &c. 
 
 I am, 
 
 (signed) 
 
 &c. 
 
 Frederic Rogen. 
 
 End. 3, in No. 13. 
 
 Eiicloaure 2, in Nu. 13. 
 
 Sir, Treasury Chambers, 18 March 1864. 
 
 1 am commanded by the Lords Commissioners of Her Alajesty's Treusury to transmit 
 to you the enclosed copy of a letter from Mr. Watkins, the President of the Grand Trimk 
 Kailwoy of Canada, dated 15th ultimo; and with reference to your letter of the 11th 
 instant, 1 om to request that you will state to his Grace the Duke of Newcastle that my 
 Lords are very averse to entertain the projmsition now made in relation to the construc- 
 tion of the line of railway between Truro and the Bend in the Provinces of New Bruns- 
 wick and Nova Scotia, as a part of the larger project for completing railway communica- 
 tion between Quebec and Halifax, without knowing the views of the Government of 
 those Provinces. 
 
 If, however, it should be the desire of the Governments of the Provinces of New 
 Brunswick and Nova Scotia that the arrangement proposed in your letter of the 11th 
 instant, with the conditions annexed, should be carried into effect, and if the Legislatures 
 of the Provinces should make provision accordingly, this Board will be prepared to assent 
 to that arrangement- 
 
 But their Lordships desire that it may be distinctly understood that the construction of 
 the line now proposed between Truro and the Bend is undertaken by the two Provinces 
 at their own risk, that no claim of any kind is to be made upon the lmi>erial Government 
 if the whole project of 1862-3 should not be carried out, and that Her Majesty's Govern- 
 ment is not to be involved in any question that may arise between the three provincial 
 Governments with reference to the arrangement now proposed. 
 
 Sir F. Sogers, Bart. 
 &c. &c. &c. 
 
 I am, &c. 
 (signed) F. Peel. 
 
 Sub-Enclosure. 
 
 Grand Trunk Railway of Canada, 
 21, Old Eroad Street, E. C. 
 Sir, 15 February 1864. 
 
 Provisional arrangements were made in 1862 and 1863 between Her Majesty's Trea- 
 sury and delegates from Nova Scotia and New Brunswick and Canada in reference to the 
 Intercolonial Railway. 
 
 The railway, as projected, was composed of two integral portions, one extending from 
 Truro in Nova Scotia to a junction with the St. John and Shediac line at a place below 
 Shediac usually known as the "' Bond," and which portion was about 100 miles in length ; 
 the other extending from " the Bend," through portions of the Provinces of New Bruns- 
 wick and Canada, to Riviere du Loup, where it effected a junction with the system of the 
 Grand Trunk Railway, of which I am President, and by means of which system a direct 
 through communication is secured to the extreme western boundary of Canada. 
 
 In the papers drawn up under your supervision, I believe, in 1863, it was proposed that 
 the British Government should have the right of laying down the exact course of the line 
 of railway, and that in consideration of tnis and other matters the Imperial guarantee 
 should be extended to an issue of 3,000,000/. sterling of provincial bonds to be devoted to 
 the construction. 
 
 I need not trouble you with further details, with which you are so familiar. 
 
 Since the issue of these documents the Provinces of Nova Scotia and New Brunswick 
 have each passed Acts in their Parliament accepting and confirming the arrangement so far 
 as those two Provinces are concerned ; but these Acts contain a provision that if within 
 
 two 
 
w 
 
 AN INTERCOI/>NI \L RAILWAY (NORTH AMERICA) 45 
 
 two venrs the Pro%'incc of rnnmla --'iiiuM not nnsent »n<l leifiHlntp, then that their own 
 IcgiHlatidii nhoiild he nmiiitlprcd void therefore their le)iiKlntiiiii nf |h«3 will he void in 
 the year lHfl5. 
 
 T'nfortiinntcly Cmmila hn* tint yet ninilo niiv |iniotii«l "tcii in ni|\Aiii<)> in the wuv nf 
 legislation, mir i^< there any i^reiit likt<liliiH»l tlirit the ('itnn<lian I'nrliiinient, in the Ses»ion 
 BDC'it to commence, will carry tlir. U'rli the nccilt'ul meniurcn. 
 
 Under fiiC!<o circMinHtances, the IVuvincex nC Nll^a Scntin an<l New Hnm'wirk were 
 nnxious that Her Mnje^ty"!i fiovenitncMt sihuulil jiennit the Iin|><'rial <iunriiniM> to ciiicritte 
 M regards the caiiital reiiuireil tn lie ex|iendeil on the fir^t link nt' the railway, viz., that 
 between Truro and '• the Mend." liut on enntultiii;: hi- (irai'e the Duke of N'cwriii.tle, nt 
 the reque-t of Meniher- of the (ioM'rnment of the two Provinces, I timl him iiidi-iMiHed to 
 recommend a com](lianee with »he wi-he- m ex])re!'>ed. 
 
 A» matters stand, the Parliaments of Nova Scotia and New Hninswiek will, in the 
 coming; Session, he urj»cd to devote, in other directions, the capital to be set apart for the 
 constructiim of the Intercolonial. 
 
 As rcjiards Xova Scotia, a i-tioii;.r ettiirt will he made to extend their exii>tinj; railway 
 gystem, for local pur|iosos. to Pietoii ; ami more than that, hoth Nova Seotia and New 
 Brunswick are, at this moment, appealed to to join with partie" in the Stale of Maine, in 
 connecting their respective railway systems witli the railway system of the I'nited States. 
 
 And as the latter ])roposal involve!! a mueh smaller cost and length of railwav to con- 
 Htruct than the Intereoloi\ial, and as it will give for New Itrnnswiik a ^liurt route into 
 districts with which they have a very eonsiderahle tniile, ,-neli a pro])osal finds many and 
 ardent snimortcrs. 
 
 Under these circumstances, I have suggested to his (ii-.iee tlu^ Duke of Newea-ile. in ai'- 
 i rdance with what I lielieve to he the wi^ll( s of those in the T^ower Provinces, who are 
 auxiims still for the realization of the Intercolonial project, that Her Majesty's Treasury 
 ohoiild protect these two Provinces from damage, in the event of their taliing uelion in the 
 right direction, and not waiting for ( 'anada. 
 
 Provided they can he induced 'o construct, without delay, and out of their own t'unds, 
 the first link in the Intercolonial system ahove allmled to. which I consider will coul 
 about 8()0,( )()()/. sterling, will Her Majesty's Trcastiry consent that, in the event of the 
 coui]>lcte construction of the Intercolonial Uuilway, under the approval < f Her Majesty'* 
 Government, the fair rateable proportion of capital attributable to thin first link dhull ho 
 then included in the guarantee 'f 
 
 It might be distinctly understood, that some reasonable limit of time should be fixed by 
 Her Majestv'.s Government, an<l also that the whole arrangement is still contingent upon 
 Imperial Legislation, that no present gtuu'antee is reipiired, and that no guarantee or 
 liabilitv can accrue unless the whole scheme be carried out under the a|iproval of the 
 Treasury, and the confirmation of Parliament. 
 
 1 have, &c. 
 G. A. Hamilton, Esq., (eigned) Edwin W. IVathin. 
 
 Secretary, Treasury, Whitehall. 
 
 -M 
 
 Enclosure .3, in No. 13, 
 
 Sir, Downing-street, 19 March 1864. 
 
 The Duke of Newcastle desires me to inform you that he has received from the Lords 
 of the Treasury a copy of your letter of the 15th of February, contemplating the construc- 
 tion, by New Brunswick and Nova Scotia, of the first link of the Intercolonial Kailway 
 between Truro and the Beud, and suggesting that the line so constructed should be held 
 to be part of the larger scheme contempiateil in the laws recently passed by those two 
 Provinces, and by the memoranda of December 1862 and January 1864, recited in those 
 laws. 
 
 I am directed by his Grace to inform you in reply that if the Lower Provinces shall at 
 their own expense commence the construction ol a Railway on a line approved by Her 
 Majesty's Government between Truro and the Bend, and if subse(iuently the proposed 
 loan of 3,000,000 /. shall be raised under the Imperial Guarantee in virtue of the oftir 
 contained in the above memoranda, the railway oetween Truro and the Bend, and the 
 works constructed thereuj)on by the Lower Provinces shall (as far as Her Majesty's 
 Government is concerned) be considered to form j)art of the railway on which the loan of 
 3,000,000 /. is to be expended, and that his Grace sees no reiison for requiring any 
 change in that part of the memoranda which declares that 5-l2th8 of the loan shall 
 be chargeable against Canada, 3J-12ths against Nova Scotia, and 3j-12ths against New 
 Brunswick. 
 
 The further question, what part of that sum of 3,000,000/. slumld be paid over to New 
 Brunswick and Nova Scotia, in consequence of the works effected by them without the 
 concurrence of Canada, will be mainly a question for the I'ruvincial Governments in 
 which it must be understood that Her Slajesty's Government is not to be involved. But 
 the Imperial Gk>vemment before being party to any such pavment in respect of this 
 eection of the railway must have sufficient security that the whole scheme will be prose- 
 cuted with effect. 
 
 530. •'3 '* 
 
 Encha, in No. 13. 
 
 
C^JO 
 
 40 INTERCOLONIAL RAILWAY (NORTH AMERICA) 
 
 It i« Kcarccly ncccsHary tu uliscrve llmt iliix u:<uruiicu U (;ivuu iiicruly tor tLc |iur|Ki6t: 
 uf priividing (ait far ai* llcr Mi^vttyV (iovt'i-uiuLMit i" (■uncernuclj tliai New Uruiiswick aitil 
 Novn Scotia nhall not do prrjiiiliml hy rdiiiincMi'in^r tlit- railway in nnticipatioD tif a final 
 arrangement (if Huch arritiip.'t'nicnt /houlil cvrr take eflt'ct), and ii< nut tiiuc construed m 
 in any way varying or kec]iing alive, or cxtcmling that arrangement, or tui iiu|M>i)ing uu 
 the Im|>criul (lovcrnment anv liuliility to U!«.»i.*t in the (-otiRtruction of tlie shorter lino 
 now oontcuiplated, whether l>y way oi° guarantee or utiicrwitte, except in pursuance 
 of the offer of Decemher lhfi2, and January iHfi.'J. Therefore no claim whatever i^ 
 to be made on the Imjtcrial Government, unlcM the whole jiniject Ik carried into execu- 
 tion ; and if the offer of 1^02-03 should full to the ground, thin u^iiuraucc will of cour«c 
 fall with it. 
 
 It must also he underKtoml that the pre.-ent correi-poiulence is not to affect the right of 
 the Home Government to deteruiiue for itself at what period the offer of 1HG2 113, phall 
 be hchi tu lie eancelleil hy the failure of the Canadian Government tu fulKl the tint of 
 the proposed conditions, viz., that of sulmiittiii;: inime<1iately to the C'oloniul Legiblatures 
 the liills reouired for carrying that offer into effect. 
 
 I am to add, however, that Her Majesty's (iovcrnmcnt consider tliat offer as still sub- 
 sisting ; hut wuuld certainly ceaae to do so, unless a <lefinitive arrangement were made, 
 and tlie necessary Colonial laws passed within five years of the diite of the first mentorou- 
 dum, /. r., before December 180". 
 
 I am, &c. 
 
 E. W. Watkin, Esq. (signed) Frederic Roj/en. 
 
 u 
 
(ce/ 
 
 cly itir tbu |iur|Ki6u 
 New Uruiiswick anil 
 iiticipntioD tif a final 
 t til uc coiiDtrucil OK 
 , or am iiu|H>i)inK uii 
 (if the .-liorttT line 
 xcc|it III |iur8uancc 
 I rluim whatever L 
 ; rarried into exccu- 
 iraui'c will of cuunto 
 
 to uttect the right of 
 cr 1)1' 18G2 1)3, ^hllll 
 t to t'ulKl the fir8t of 
 !ol(iniuI LegiblntureM 
 
 hat offer at* r<till nub- 
 nj;enient were made, 
 if the first muukurou- 
 
 Frederic Royen. 
 
 
 •^.r-rJ