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32X

MEMORANDUM :

RESPECTING THE

PROPOSAL OF THE HON. MR. HINCKS,

INSPECTOR GENERAL OF CANADA,

., TO THE IMPERIAL GOVERNMENT,

yl/ TO OBTAIN AID IN THE CONSTRUCTION OF THE

SYSTEM OF RAILWAYS

IN THE

PROVINCES OF CANADA,

I NEW BRUNSWICK AND NOVA SCOTIA; ^

AND

REASONS AGAINST ITS ADOPTION

BV THE

BKITISH GOVERNMENT.

HAMILTON, C. W.:

PRINTED AT THE SPECTATOR OFFICE, COURT-HOUSE SQUARE.

1852.

^(@J^^4i3?'^Rpfeji^^MipJP"SS

MEMORANDUM:

Hespeotrng the Proposal of the Honourable Mr, Hinchs^ Inspector
O&nercH of Canada^ to the Imperial Government, to obtain aid
vn the construction of the proposed system of Hailways, in the
Pravvnces of Canada, Nefw Brunswiclc amd Nova Seotia ; amd
reasons against its adoption hj the British Goven'nment

'„'.', . No. 4, Austin Friars,

Zandon, 20th May, 1S52.

To the HonoraMe Members of the
Legislative Council and Legis-
lative Assembly of the Province
of CamMa :
Gentlemen,

As a native of the Province
whose material interests are en-
trusted to youi' guardianship, and
having a considerable investment
in real estate therein, and as the
son of one of the pioneers of West-
ern Canada — who devoted thii'ty
yeai'S of his life to the public ser-
vice, as a Member of one or other
of the branches of the Legislature
of that section of the Province,
before the union — I have felt it
to be my duty to counteract, by
eveiy means in my power, the
designs of certain individuals,
whom circumstances have placed
in situations of honour and trust,
in reference to the construction
of the Quebec and Halifax Rail-
way. The reasons which have
induced me to oppose this scheme
are set forth at considerable

length in the Memorandum and
accompanying documents printed
herewith. They were prepared
shortly after the anival in Lon-
don of the Provincial Agents sent
out to solicit the aid of the Impe-
rial Government, on behalf of the
line of Railway in question, and
were laid before the Right Hon-
orable the Secretary for the Col-
onies, whose acknowledgment is
appended. I have also had aji
opportunity afforded to commu-
nicate my views on the subject
freely, to leading members of the
Imperial Parhament, and I be-
lieve that the steps I have taken
have not been without effect.

It is well known to my friends
and the public in Western Cana-
da, that I have, for several yeai-s,
taken a warm interest in the pro-
motion of Railways in Canada. In
1816, whilst acting as the Agent
of the Great Western Railway,.!
wrote many articles in leading
papers in Montreal, Kingston, and
Hamilton, advocating a Trunk
Line from Quebec to the Western

'')>I'i,{..i. C

t
r^ .

j^ontier opposite Detroit, and I
strongly ui'ged upon the Legisla-
ture the necessity of affording aid
to such line, as calculated to bene-
fit the entire Province, and at the
same time affording abundant
evidence of being a good mercan-
tile enterprise. But I was always
opposed to the Provincial Govern-
ment taking upon itself any share
of the burthen of constructing
the line from Quebec to Halifax,
which I have shown, in my re-
marks on Major Kobinson's Re-
port, must prove a most disastrous
undeiiaking, except to the few
jobbers who expect to become
interested in the contracts.

I have also felt it right to lay
before you, fully and openly, the

Proceedings I have taken here to
efeat the attempt to obtain the
Imperial guarantee. This course
has become the more necessan?"
since the discouragement which
the application has received, in
consequence of my having obtain-
ed rehable information that Mr.
Hincks goes out with estimates
from certain Railway jobbers
here, to construct both the Que-
bec and Halifax, and the Quebec
and Hamilton lines, upon the
Provincial securities alone, — thus
manifesting a determination to
saddle the Province of Canada
with a veiy large share of the
cost of the former work, in which
she has no interest worth naming.
It 18 due to myself to inform
yon that the course which I have
adopted was the only one left

open to me. When I heard of the
arrival of Mr. Hincks in England,
I determined to communicate
with him on the subject of his
mission, before he had finally
made his proposition, in order, if
possible to induce him to modify
his views. I accordingly solicited
an interview with him. After
waiting two days without receiv-
ing a reply, I called upon him, in
company with another gentleman
interested in the Great Western
line, but found Mr. Hincks petu-
lent, and disinclined to hear any
explanation; I was therefore dri-
ven to act in the manner I have
done.

I have now to state that I have
reason to believe that an arrange-
ment might have been effected,
if not through the aid of the Im-
perial Government, at any rat^
through the instrumentality of
responsible peraons of the highest
respectability, to construct the
entire line from Quebec to Ham-
ilton, on much more favourable
terms than any I have yet heard
of The last sale of Canada six
per cent Debentures (£400,000)
which was effected by Mr.Hincks,
I am advised was made at par,
less a considerable sum for com-
mission. Had these Debentures
been offered in the usual way that
Government loans are, in this
market, there is no doubt they
would have netted a veiy consid-
erable advance. Had they been
only Five per cents, they would
have commanded par, and these

receiv-
n, in

^mie Debentui*e9 aje now quoted
at 113 to 113j.* The suggestions
I had to make to Mr. Hincks em-
braced a plan and proposal to
raise the necessary sum of money
to construct the last mentioned
line of Koad at a lower rate of in-
terest, — which would have ren-
dered the Imperial guarantee
wholly unnecessary.

In connection with this subject,
I avail myself of the opportunity
to draw your attention to another
subject of vital importance to the
great and growing interests of
Canada, — that is, the necessity of
the Province being represented
at London by a duly appointed
and acknowledged Agent. Such
Agent should be entrusted with
the negociation of all matters of
importance, either with the Go-
vernment or with individuals, —
if indeed it would not be desir-
able to go a step fui"ther, and to
obtain fromEngland the privilege

^ The Times of the 2'7th December lost, says
in the money article : —

" A further issue of Canada 6 per Cent. Deben-
tures was made to-day to the extent of £400,000,
at the price of 103, the whole of which were ta-
ken up immediately by private capitalists. The
dividends date from the 1st of March next, and
the principal is redeemable at Baring's and Glyn's,
in 1876. About twenty months back similar
debentures, to the amount of £460,000, were ne-
gotiated at par, the price of Consols being then
^6."

It is probable that the public accounts will
ehow that the Barings and Glyn's got these de-
bentures at par, and thus make 8 per cent, on
the whole lot, besides 7 or 8 per cent, on what-
ever they may have taken on their own account.
It matters not how the transaction was arranged,
ibe result has been as stated, and the Province
bu sustained on the last loan a loss of at least
1200,000. The pubUc must draw their own in«
iireniBe of the iad)UMmi»a^ F^l^iob led fo 9^ch a

enjoyed by every petty indepen-
dent State, of having a duly con-
stituted Charge d'Alfaii-es or Min-
ister. In the latter case all the o^
ficial correspondence of theProvin-
cialGovernraent might be transfer-
red from the Colonial office to such
Minister. It has ever been the com-
plaint of the Colonies that their
business has been neglected, or
their interests sacrificed by the
Colonial Minister. When it is
considered that England has 44
Colonies to take care of, and all
having more or less pressing af-
fairs to be attended to by the
chief of the Department for the
Colonies, it is only surprising that
there are so few evils existing in
the present system.

The mode of sending to this
country, every year or two, an
Agent, whose acts are always
open to suspicion, from the fact
that he is not the official medium
of communication between the
two Governments, is not calcula-
ted to exalt the Province in the
estimation eitl; '* of the Govern-
ment or people of this country.
The nomination and recognition
of such a functionary, withhmited
or extensive powers, as the case
may be, would at once raise the
Province to the dignity of an in-
dependent country, without de-
stroying those relations so highly
cherished by a large number of
the inhabitants of Canada.

That such a concession would
be made by this countiy there is
no room for doubt, provided it

"be respectfully but firmly solici-
ted.

There is no longer a desire on
the paii; of British Statemen to
exercise political sovereignty over
the powerful Province of Canada.
No strongerproof of this fact need
be adduced than the proposal of
EarlGrey to withdi'aw the Troops
from the Province, and to entrust
the military defences of the coun-
try to the local authorities. This
{)roposal ought to be immediate-
y complied with. Canada re-
quires no external defences, whilst
Her independence is guarantaed
by the wliole force of the British
Empire.

The establishment of such re-
lations between Great Britain and
Canada as those pomted out by
Earl Grey, accomj^anied by the
right of the latter country to ap-
point a diplomatic agent to reside
neai* the Court of St. James, would
have a most beneficial effect upon
the credit of the Provmce in the
Honey Market of England. With
a lai'ge sui-plus revenue. Provin-
cial credit ought to stand on a
much better footing than it does.
Its credit at present is in a great
measure fictitious — and in the
management of a few great spec-
ulators, into whose hands the
chief &iancial officer of the Cana-
dian Government can play as
suits his pui'pose. This is no po-
sition for a country possessing
such resources as Canada to hold.
• In conclusion, I earnestly ap-
peal to my feUow-conntiymen, m

both sections of the Province, to
put an end to such an anomalous
state of things. It now rests with
you, gentlemen, as the Kepresen-
tatives of the people of Canada,
to say whether you will continue
to go on, year after year, in the
old l)eaten track of political dis-
cord, or to take up, with the con-
sent and approbation of the Im-
perial Government, a position
which will, at the same time, con-
duce to the material interests of
the Province, and give it a posi-
tion and character amongst the
independent nations of the earth,
— a position which by doing away
with all cause of complaint will
knit together the two nations by
the closest ties of loyalty, frater-
nity and common interest, and
add fresh gloiy to the Empire of
Britain.

I have the honour to be, }'
Gentlemen,
Your very obt. serv't, "

H.B.WILLSON.

♦ ♦ ♦

36 Bloomsbury Square,

28th April, 1852.

To the Right Honorable Sir John Pahing-
ton, Her Majesty's Chief Secretary of
State for the Colonies, dc. <&c.
Sir, — I beg most respectfully to submit,
for the consideration of Her Majesty's Gov-
ernment, the accompanying Memorandum,
on the subject of the proposed iotercolonial
Railway from Halifax to Quebec, and
thence to the Western frontier of Canada,
to construct which Imperial aid is being
sought at the present time, by agents ft'oni
the Provinces. ...',. ^

I believe that my views are perfectly in
accordance with those of the great majority
of the people of Westeni, and of a larga

pe, to

posi-

b the

number of those ofEastern Canadp. In con-
sequence of the necessity of plac ing these
views in the hands of Her Majesty's Ministers
before they should decide upon the expedi-
ency of complying with the reouest ot the
Colonial Agents, I have not had time to
communicate with my friends in Canada,
to obtain their co-operation.

In order to supply this deficiency ,and to
corroborate my statements, I have added, in
the shape of appendices, several extracts
from Canadian ncwspjipers and the resolu-
tions of the Hon. Mr. Merritt, late President
of the Canadian Government, and also,
remarks on Major Robinson's Repoil, to
which I beg respectfully to invite your ear-
nest attention.

-• iUi I have the honor to be,
••!'" ', ■ Your very obed't serv't,
'"' '- H.B.WILLSON.

-.1 ]. .,v: ..M..., .■„„,;.'

[rbply.]
Colonial Officb,

10th May, 1862.

Sir, — I am directed by Secre-
tai-y Sir John Pakington, to ac-
knowledge the receipt of your let-
ter of the 28th ultimo, with its
accompanying Memorandum, re-
lative to the proposed Halifax
and Quebec Kailway ; and I am
to express his thanks for the views
on this subject, with which you

have favored him.
I am. Sir,
. . Your most obed't serv't,

DESART.
H. B. WiLLSON, Esq.,

36 Bloomsbury Square.

•-) 'I'l I. li:

-I

MEMORANDUM :

Mb. Hincks' scheme, as set forth in the
published correspondence between the Com-
missioners of the three Provinces, at their
recent meetings at Halifax, and as explain-
ed more at length in the resolutions and
speech of Mr. Hincks in the Parliament of
Canada, during its last session, embraces
the following leading features :

1st. — A Main Trunk Line from Halifax
to Quebec, by way of the Valley of the St.
John's, to be constnicted and owned jointly
by the three Provinces, on condition that
the British Government guarantee the De-
bentures of the said Provinces, which are
to bear interest at the rate of 3^ per cent,
and on cei*tain conditions set forth in a des-
patch from Earl Grey to the Governor of
Nova Scotia, on that subject, specifying that
the entire line shall be within the British
territory. , .'V ' : '

2nd.— A line from Quebec to the West-
ern Township of Canada, passing through
Montreal, Toronto and Hamilton, and all
the intermediate Towns on or near the mar-

gin of the St. Lawrence and the shore of
Lake Ontario, to be undertaken and con-
structed by the Province of Canada as a
Provincial Work — ^with the like guarantee
by the Imperial Government, if it can be
obtained, — and without, if withheld.

It is not yet made public whether the
two propositions have been submitted for
the consideration of the Imperial Govern-
ment by Mr. Hincks, separately, or con-
jointly as an entire plan, to be adopted or
rejected by the Home Authorities. The
inference to be drawn from the proceedings
of the Joint Commission at Halifax, and
the resolutions of the Canadian Legislature,
strongly indicate that they are to be urged
upon this GoveiTiment as separate measures.

Assuming this to be the fact, and that
the promise of Earl Grey, late Secretary of
State for the Colonies, to recommend to
Parliament a measure to afford the Impe-
rial guarantee in the manner set forth in
his despatch was made upon exparte
representations, the following copsidemtion*

5wi J

are renpectfully submitted as worthy the
attention of Her Majesty's Government.

It may here be noted, that the despatoh
above referred to was subsequently explain-
ed by another dated 9th January, 1852,
limiting the promised guarantee to such
line only as might be considered national
in its character.

1. — The principle of undertaking the
construction and management of Railways,
as well as of many other public works, hy
popular Oovemments, has been found in
Canada, and in nearly all the adjoining
States, to be open to the most serious ob-
jections. Owing to the party character
which all such governments almost neces-
sarily assume, the outlay of large sums of
money upon State or Provincial Works, is
made the subject of bitter political strife
and contention. In many of the States the
tendency to abuse the discretionary power
which the Executive must be allowed in
the construction and management of Public
Works, has been such, that very many of
them have amended their Constitutions, or
framed new ones, expressly to limit the
power of their Legislatures to raise money
on loan for such purposes. Even in the
great State of New York, where the system
of Canals has been a source of large profit,
in consequence of that Staters being the
great highway between the Atlantic Sea-
board and the Western States and Canada,
rather than owing to economy in their
construction and management, such a clause
was inserted in the new Constitution framed
in 1848. The gross mismanagement of
State Works in Mississippi, Arkansas, Mi-
chigan and Indiana, on account of the
strife of parties, has even been alleged to
have been one of the fruitful causes of
repudiation ; and in Pennsylvania and
Maryland, for non-payment of the interest
on their debts.

2. — In 1848 and 1849, Canada was only
saved from being placed in the same dis-
graceful position as Pennsylvania and
Maryland, by the issue of neai'ly a million
of dollars, in ten and twenty dollar promis-
sory notes, bearing 6 per cent, interest, and
payable one year after date. This arose
nofm th» profl^te expenditure of sums be^

yond the resources of the Province at th«
time, upon unproductive Public Works^
It is not a subject for discussion here, whe-
ther these works have not been of substan-
tial benefit to the Province, particularly the
largo extent of Plank and Macadamized
Roads, for which a part of the debt was in-
curred. The question is, whether they
could not have been constructed at a greatly
reduced cost, by incorporated Companies,
either with or without Government aid.

3. — The latter is now the only mode by
which such roads are made in Canada, ex-
cept in a few instance?, where the County
Councils have lent their aid. But even
here abuses are found to exist; and it may
now be fairly assumed, that no Macadam-
ized or Plank Roads are undertaken in that
Province, except by Joint Stock Companies.
These Companies are becoming very nu-
merous, inconsequence of the passage of an
Act, expressly to give them corporate pow-
ers, and intended to relieve the Legislature
from future applications to make such roads.

4. — The Public Roads constructed by
the Government of Canada, cost nearly cent
per cent more than similar roads made by
companies, and the profits arising from tolls
were proportionately less. So great a bur-
then had these roads become to the Pro-
vince, and so many and so pressing the de-
mands upon the Treasury to keep them in
repair, that the Inspector General, Mr.
Hincks, obtained from Parliament, in 1860,
an Act to authorise their sale. Under this
Act, roads, bridges, and harbows, whicli
cost the Province nearly two millions of
dollars, were sold at auction at less than
one-third their cost, and are now owned and
managed by Joint Stock Companies. Most,
if not all of these works, after a large addi-
tional outlay by their new propnetors, to
restore them from the dilapidated condition
in which the Government Agents had left
them, are now yielding a handsome profit.

5. — Another striking example to illus-
trate the superior management of Com-
panies over State, or Provincial Govern-
ments, may be found in the caseof theCen-
tral Michigan Railyiray. This tjrork was
originally built by the St^t^ ^d alt|ipu^li
the line of thi^ ro^ yras f i^oet iffiyoui;^

onc^ and of great importance in shortening
the distance between the States of Illinois,
Wisconsin, and Indianu, and the Sea-board,
by 600 miles, as compared with the onl^
other thoroughfare for travel, by Lakes Mi-
chigan and Huron, it was found, under
Government inanaKcment, not to ^)ay ex-

Senses, and the road itself began to tall into
isrepair. The Legislature at length re-
solved to soil it, and passed a Bill fur that
purpose. As in the case of tlio Rouda in
Canada, sold by Mr. Hincks, under his Bill,
the Michigan Hailroad was purcliased by a
Company, and the same results followed the
change of ownership in the one instance as
in the other. The new Company entirely
relaid the hne, with heavier and better iron,
and under economical and judicious man-
agement the road has, for several year8,paid
large dividends.

6. — If the Public Works of Canada and
the several States referred to, have been the
subject of so much extravagance, and have
proved so unprofitable in the hands of the
respective Governments, when money was
hard to be got, even at a high rate of inter-
est — when their credit was pushed to the
utmost — and whilst there was every incen-
tive to economy — is it to be expected that
a different system will prevail, if the British
Government pour into the Provincial Ex-
chequers eight millions sterling at the low
rate of interest now ruling?

1. — The expenditure of such a sum by
the Provincial Governments would, it is
feared, become the subject of political strife
— the gates of peculation and corruption
would be thrown wide open — and the re-
sults would, in all probability, prove most
disastrous to the morals and interests of the
commuuity. There is perhaps no country
in America, where the elements of abuse of
such a system of works exist in greater
bundance than in the British Provinces,
hey are comparatively poor, and are full
f needy adventurei-s, who, when no better
ccupation ofFei's, are sure to turn political
agitators — and are by no means scrupulous
how they rise to power and consideration
in the State. The experience of the past
leaves no room to hope, that the Govern-
ments which would have the management

of these ^eat lines oif Railway, would hdl
be cotaap<Med, more o^ less, of such m«n.

8. — ^The next point to be considered ik,
whether these lines of road, if constructed on
the most economical principles, would, ah
Government Works, be any more produ©-
tivo than the other public Works of Canada.
There is already in a forward state of com'-
pletion, a Railway from the Niagara Falls
to the \\ estom Frontier opposite Detroit,
which touches the head of Lake Ontario at
Hamilton. This road is called the Gfeat
Western, and is building by a Compan^
which recently negociated in England, on
favourable terms, £200,000 of their Bonds.
This Railway it is proposed by Mr. Hincks
to buy up, in order that the Government
may have a monopoly of the entire rail-
ways of the Provinces. The Great Western
forms a part of the Great Main Trunk Line
from Hamilton westward 200 miles — ^being
also, by having an extension eastward to the
Niagara Falls, a link in the great system of
American Railroads, with which it is to be
connected at each end, and running throtigh
the best settled part of Cauda for its whole
length, will undoubtedly prove a most pro-
ductive enterprise.

9. — That portion of the Main Trunk Lin6'
between Hamilton and Quebec, would skirt
the borders of Lake Ontario and the St.
Lawrence all the way, and be subject to
steamboat competition during seven months
of the yoi\\; But as it passes through all
the large towns — such as Toronto, Port
Hope, Cobourg, Kingston, Montreal, and
numerous othera of considerable commer-
cial importance, and cuts through the most
rich and flourishing parts of Canada, there
is eveiy reason to think favourably of it,
under the judicious management of one or
more Companies. If the Government of
Canada would lend its aid to such Compa-
nies, with or without the Imperial guai^n-
tee, there are responsible parties ready to
undertake the contracts for its completion.

10. — To this mode of affording aid to the
projected line of Railways, there can be no
objection,provided the Government advani^
only one-half or two-thirds of the cofst '6f
construction, and take a mort^^e 6a th^
road and equipments. If the British Bb-

Teminent desire to aid the Province of Ca-
nada in its Kailway entorprizes, they will
be perfectly safe in guaranteeing Provincial
Debentures to be thus loaned to Joint Stock
Companies, taking care to leave a margin
of from 30 to 60 per cent as a warranty that
the money will be prudently eatpended and
the works well managed.

11. — ^If, on the contrary,the proposal now
submitted by Mr. P^incks should be acceded
to, and the roads be made as Government
Works, it would be better for the British
Government, in the first instance, to con-
struct them through its own agents, and re-
tain the management in its own hands. —
This would save any unpleasant collision
between this country and the colonies, in
consequence of a failure to meet either in-
terest 01' principal, on so large an addition to
the already heavy debts of the Provinces,
and especially of Canada,

1 2. — There are many forcible reasons for
believing that the portion of the Trunk line
from Quebec to Halifax, by way of the St.
John's or any other route, can never pay
running expenses and repaii-s. It would
extend this paper to too great a length, to
adduce these arguments in detail. A few
general facts, will, however, elucidate the
true position of this part of the project.

13. — ^The advocates of the line from Que-
bec to Halifax, in making up their data for
a business for their favourite scheme, are
compelled to rely largely upon the local, or
waytraffic, to be created by the future set-
tlement of the countiy traversed. The set-
tlements at present are veiy limited and the
people very poor. At least three-fourths of
the entire distance is through a perfect wil-
derness, hitherto seldom trod b)' the foot of
civilized man. This vast wildernass, of
more than 400 miles, is of the same moun-
t^ous character as that described by the
North Eastern Boundary Commissioners,
and the proposed Railway would run
through the country a little north of, but
Adjacent to the Boundary line between Main
and New Brunswick, which is formed for
about 100 miles by the River St. John. —
When the advocates of a line of Railway
predicate the business of their road upon
the future settlement of the country, some

ten or twenty years hence, it is diflScult to
combat their figures. With disinterested
financiers such calculations must go for
little or nothing.

14. — Hitherto the projectors of Railways,
instead of selecting lines with a view to set-
tling new countries, which require at least a
quarter of a century before they can afford
any considerable traflBc, beyond the scanty
supplies required for the sustentation of the
settlers, have invariably chosen routes thro'
the wealthiest and most populous districts.
Although this rule has been so generally
observed, Railway investments hiave not
been found to be so extremely productive
as to warrant the adoption of a directly op-
posite principle, as in the present instance.
Besides there are millions of acres of more
fertile lands in UpperCanada and the Wes-
tern States, where the climate is infinitely
more genial, to attract the attention of the
better class of emigrants for half a century
to come. '"

15. — The estimates based upon the en-
hanced value of the lands, and the proceeds
to arise and flow into the Provincial Ex-
chequers therefrom, are no more reliable
than the predicated sources of revenue for
the Railway. It is an indisputable fact, that
the Crown Lands Departments in the Pro-
vinces have not realized enough, from the
entire gross sales of land, to defray the ex-
penses of management. This fact is suflSci-
ent to overthrow the assumption of profit
from that quarter.

16. — It is evident that a Railway from
Quebec to Halifax cannot compete for the
traffic of Western Canada, with the numer-
ous lines running from New York, Boston,
and Portland to uie Canada Frontier. There
are at least eight other routes, each of which
is shorter by two-thirds or one-half by which
the freight and passenger traflSc can reach
one or the other of these Seaports. These
different Railways tap the Canadian Fron-
tier at the following points, namely: at
Dunkirk and Buffalo, on Lake Erie; Nia-
gai'a Falls, Rochester, Oswego, and Kings-
ton, on Lake Ontario; Ogdensburg on me
St. Lawrence, and the Province Ene near
Montreal. All these lines, except the New
York and Erie, which leads direct to New

ifficult to
interested
3t go for

Railwa3rs,
ew to set-
at least a
an afford
be scanty
ion of the
ites thro*
districts,
generally
liave not
•oductive
rectly bp-
instance.
i of more
theWes-
infinitely
on of the
a century

1 the en-
I proceeds
icial Ex-
e reliable
venue for
fact, that
the Pro-
from the
y the ex-
is siiffici-
of profit

ay from
3 for the
3 numer-

Boston,
r. There
of which
)y which
in reach
These
m Fron-
nely: at
ie; Nia-
l Kinffs-

on uie
ne near
lie New
to Niew

York, afford a choice between the markets
of that city and Boston — ^the two greatest
centres of civilization and commerco in
America, whence all the Mail Steamers ply-
ing to Europe depart and anive. In addi-
tion to these lines, there is the St. Lawrence
and Atlantic Railway, connecting Montreal
with Portland. This route is about 250
miles in length, whilst from Montreal to
Halifax, via Quebec, is more than 800.

, ; 17. — It would therefore be absurd to sup-
pose, that the business of Montreal, or any
of the productions of Western Canada, would
find their way to Halifax, for shipment to
foreign markets by the route in question.
But more than this, it is questionable if the
business of Quebec itself will not bo dra; ri
over the line of road now building from that
city to intersect the St. Lawrence and At-
, lantic Railway at Melbourne, and so to

J Portland. Quebec, by this route, will be

less than 300 miles from that city, whilst
it is 600 miles distant from Halifax by the
line in question.

18. — ^The proposed route, in order to get
round the State of Maine, which makes a
deep indentation into the territory of the
Provinces, has to be carried more than 100
miles out of a direct course, which must
greatly increase the cost and running ex-
penses, and give to the numerous competing
lines, running through Maine, Vermont and
the State of New York, immensely superior
advantages.

19, — It will be an act of gieat injustice
to the people of Upper Canada to be com-
pelled, by a majority of members in Lower
Canada,to pay a heavy tax for the consti*uc-
tion of a work in which they have no inter-
est whatever. Indeed, the chief burthen
would fall upon them, in consequence of
their being by far the largest consumera of
goods paying duty upon importation into
the Province.

20. — The following vote, taken last sum-
mer in the Assembly at Toronto, upon Mr.
Hincka?. resolution, on thi§ que^on, will
show haw'tha Members fisomtbe two see*
tiona of the Provhiee viewed the subject:
B

FOK. AGAINST.

Upper Canada Members, 11 20

Lower do do 27 3

38 23 '

Of the eleven Upper Canada Members who
voted for the resolutions, three or four, in-
cluding Mr. Hincks, were membei*s of the
Administration, and as many more of them
wore rejected by their constituents at the re-
cent election, and persons opposed to the^
scheme elected in their places.

21. — Should the Imperial Government
therefore, extend its aid to the construction
of this part of the great Main Tmnk Line,
and refuse assistance to the part from Que-
bec to Hamilton, it will become a subject of
the most serious dissatisfaction to the peo-
ple of Western Canada, who require but a
small motive to go €)i masse, in favour of a
dissolution of the Union with the Lower or
Eastern section of the Province. What
ulterior results might follow such a move-
ment, it is impossible to predict.

22. — The only advantage which the
British Government would derive from the
construction of a Railway from Quebec tc
Halifax, would be the facility it would af-
ford for the transportation of troops and
munitions of war. Should Earl Grey's pro-
posal to withdraw the troops from Canada,
and to throw the biu-then of self-defence on
the Province, be carried into effect, even this
small advantage would be lost. But it is
doubtful whethei' a Railway on the propos-.
ed line would be available for this purpose
in case of war with the United States — and
it would only be in cjise of such a contin-
gency that a military highway between the
Provinces would be required. This doubt
arises from the proximity of the Une to the.
State of Maine, whence it would be easy to'
send detached forces, to break up the road,
or otherwise interrupt communication. , ;'

23. — In conclusion, it must bo borne hi.
mind, by all parties concerned, that it is ^
matter of almost equal importance to this
country as to the Provinces themselves, that
so lar^e a liability as Eight Millions Ster-
ling would not be incurred for ihe ooqstnic-
tion of Railways, under circumstances,, and
in localities so little encoura^ng. Oanadit

is already heavily indebted, and has been
compelled to levy a duty of 12^ per cent,
on all British as well as Foreign manufac-
tures, in order to keep faith with her credi-
tors. If she should expend Three or Four
Millions more upon unproductive Works,
this duty will have to bo increased to 20 or
25 per cent, to meet interest and principal.
H. B. WILLSON,
Of Hamilton, Canada West.
London, 28th April, 1852.

APPENDIX No. I.

In striking contrast with the extravagant
systems by which the Provincial Govern-
ments have managed their lands and con-
ducted their sale, may be cited the economy
and prudence of the Canada Company.
The Crown Lands in the Provinces were
the gift of the Imperial Government, whilst
the association just mentioned acquired their
domain by purchase. Nevertheless the lat-
ter have made their lands a source of large
annual profit to the shareholders. On the
other hand, the Provincial I^ands Depart-
ments have been so prostituted to political
patronage as to require, in addition to the
gross receipts of sales, annual grants to make
up the deficits. Is this not another power-
ful argument in favour of leaving the Rail-
ways of the Provinces to be constructed by
private enterprise, as in England and the
United States. To such legitimate enter-
prises the Provincial and Imperial Govern-
ments may properly lend their credit in the
manner pointed out.

The following Resolutions taken from a
series moved by the Honourable William
Hamilton Merritt, in amendment to those
introduced by Mr. Hincks in the Legisla-
tive Assembly of Canada last summer, are
valuable, as bearing on this question. Mr.
Merritt is father of the Canal system of that
Province, and has had more experience in
these matters than any other man in it. He
was moreover for some time President of
Mr. Hincks' Ministry, and had then but re-
cently resigned the Presidency of the Board
of Public Works and his place in the admin-
istration. His opinions are therefore entitled
to great consideration.

* Resolved — ^That all former experience,
both in the United States and in Canada,
tends to prove that the construction and
management of Railways by Government
is unwise and inexpedient ; and has invari-
ably resulted either in great public loss or
in a total failure to produce the anticipated
benefits; as, for example, in the State of
^Michigan where, it has been alleged, that
tlie Central Railroad, constructed by the
State, created offices for maintaining politi-
cal paupers at the public expense, giving
employment to a class of persons incompe-
tent for the duty to be performed, and ulti-
mately causing so much dissatisfaction, that
the road was sold at a great loss to a private
Company, who, by their prudent and econo-
mical management, have since made it a
profitable concern. That, in like manner,
the removal of Local Works in Canada
fromth e manafjement of Local Commission-
ers to that of the Provincial Government
has been attended with similar results, by
occasioning a yearly increase of the public
expenditure — until by experience the Go-
vernment became convinced that all Public
Works, except such as relate to the leading
water communications, ought to be under
local management, and consequently a
transfer of the same into the hands of Muni-
cipahties or private Companies has been
etiected."

" That, in the opinion of this House, it
would be inexpedient, with the imperfect
information it now possesses, to undertake
the construction of 1216 miles of Railway,
involving an expenditure (at £6,600 per
mile) of about £8,000,000, which, in the
event of the road not being economically
managed and yielding a profit would, at 3^
per cent, interest, subject the Province to an
increased tax of £280,000 per annum, un-
less some additional security be provided to
guard against future loss."

APPENDIX No. II.
The last published Dispatch from the
Imperial Government on the subject of the
Quebec and Halifax Railway is from Mr. F.
Peel to Mr. Hincks, and was written under
the direction of Earl Grey and dated 20th
February last. It concludes as follows :

>erienee^

)anada,

ion and

imment

** Lord Grey, directs me to add that no

f)roposal for obtaining the assistance ofPar-
iament towards the construction of the pro-
posed Railway could be entertained by Her
Ma]esty'sGovernment,unless it can be shown
that it would establish a complete line wholly
on British Territory."

The question th(;n resolves itself into this.
Of what value will such a road be, either to
England or the Colonies, if it is incapable
of competing with the numerous shorter
lines of the United States which every where
intersect the great line of commimication by
the Lakes and the St. Lawrence, by which
larger and better markets are reached ? All
the provinces are earnestly seeking to obtain
reciprocal Free Tradewith the UnitedStates.
Numerous agent have from time to time
been sent by the Provincial Governments to
Washington — ^Mr. Hincks among the num-
ber — to promote this object. This proves
that what the Provinces most want is to ex-
tend their commercial intercoui-se with that
country, and not with each other. It is the
great markets of the Union, with which they
wish to have intercouree. Those markets
also afford the best entrepots through Avhich
to carry on a foreign and transatlantic trade.
The trade between the Provinces themselves
forms a very insignificant part of their entire
commerce, as will appear by the following
official statement of the Lnports and Exports
of Canada for the year 1850 — given in
Halifax Currency, equal to 16s. 8d. sterl-
ing to the pound.

IMPORTS.

From Great Britain - - - £2,407,980
" The United States - 1,648,715
« All the rest of B. America, 00,464
« All other Countries, - - 92,358

Total - - £4,245,517

EXPORTS.

To Great Britan, - - - - £1,200,849
«* The United States, - - 1,237,789
«' The other N. A . Provinces, 202,1 94
" All other Countries,- - - 29,166

Total - - £2,669,998

By the above tables it will be seen that th«
United States are better customers to Canada
for her productions by £37,000 than Great
Britain, and by £1,035,000 than all the rest
of British North America put together, —
and this in the face of considerable Custom
House restrictions. Any attempt to force a
trade between the Colonies by Legislative
restrictions, and high tarift's against other
countries, would be contrary to the present
policy of the Empire, and would, most cer-
tainly, prove disastrous to the commerce and
pros})erity of the Colonics. The results of
such a policy it would be difficult to calcu-
late. — A measure calculated to destroy
half their commerce would probably not
only prove the destruction of the Provincial
Administration that attempted it, but might
lead to a speedy severance of these colonies
from British connexion. It is not reason-
able to suppose that the great mass of the
people of Canada, and especially of Upper
Canada, who have all the energy and enter-
prise of the Anglo-Saxon race, which only
requires scope for developement^ to make
them a great people, will quietly submit to
be taxed, in order to favour any particular
branch of industry or commerce, or one line
of Railway or water communication, at the
expense of any other which may present
itself, whether it be British or foreign.

APPENDIX No. in.

Extracts from Canadian and
New Brunswick papers.

From the Toronto Globe, (Reform) for-
merly the organ of Mr. Hincks' govern-
ment (Aug. 28th, 1861) :

The Trunk Railway. — We beg our
readers to peruse the debate in another
column on the Trunk Railway from Hali-
fax to Quebec, and if they are not then sa-
tisfied that Upper Canada interests are com-
pletely sacrificed to the demands of the
French Canadians, nothing will convince
them. Mr. Hincks has absolutely induced
the House of Assembly to authorize a debt
of sixteen millions of dollars, to build a Rail-
way for which at this moment not the slight-
est necessity has been showni, nor one cal"

eulatkm exhibited of nuticipated traffic^ re-
venue, or expenditure 1 Were a road built
from Quebec to Detroit, the prospect of
profitable traffic eastwaid from Quebec
would even then be exceedingly doubtful
for years to come, but without a road west
from Quebec, it is difficult even to imagine,
what business can be done upon it. Yet
with this prospect Mr. Hineks pushes on the
scheme, and sinks the millions ! And be-
sides its unprofitable aspect, it is very clear
that ere the road could bo built we shall
have railway communication to Halifax by
the Portland route, without paying a six-
pence. So there is no justification for the
thing, except that the French Canadians
want it.

"The debate brings out veiy clearly
Bevei^al impoi-tant factvS. First, that Nova
Scotia and New Brunswick are not only to
have the Trunk Line through their country
entirely built with the 3|- per cent, loan, to
but are to have the surplus of the loan to
build their road to Portland in the United
States, in direct opposition to the Canadian
line, and in direct frustration of the very
object it was intended to accomplish, namely
to turn the highway of the European passen-
ger trade through the British Provinces. —
How Mr. Hineks could have agreed to this
we cannot imagine.

Secondly, it is clear that the prospect held
out of a surplus being received from the
Imperial loan to build the Quebec and
Hamilton route is a complete delusion.
There will be no such surplus, and if there
were, the Halifax and Portland Line would
get it all, — and if it did not get it all, it
would be four or five years before it could
be known if there was to be anything over
•—a period of time we could scarcely wait
for— *and could we wait, and were there any
over, Mr. Hineks admits there is no security
for our getting it then.

Thirdly, Mr. Hineks builds the Lower
iCanada Railroad at the expense of the
wiole Province, — ^the Upper Canada Rail-
road he proposes to build half from our lo-
cal funds and half from Provincial funds.

The whole scheme is perfectly outrageous,
and ought to have been kicked out without
hesitation. A Trunk Road from Halifax

to Detroit and Sarnia, with a British guar-
antee for the whole, we could comprehend
— but to sink sixteen millions on a road
through a wilderness, which must be closed
for a great part of the year, and leave to
chance the road really needed — is a scheme,
which none but the Hon. Francis Hineks
dared to enunciate. The explanation of it
is only too obvious — concessions must be
made to preserve the Union ! — as well in
Railways jis in Rectories.

We ask Upper Canada Reformers to
notice tlie wav in which Mr. Hineks has
earned this scandalous bill :

FOR IT.

Upper Canadians, H
Lower do 27

AGAINST IT.

20
3

S8 28

"The only Upper Canadians, not in the Go-
vernment, Avho voted for the Bill, were
Messrs. Bell, Fergusson, MoiTison, Prince,
Richai'ds, Smith, of Durham, and Wilson —

7."

From the Toronto Colonist, (Conserva-
tive) July 11th, 1851:

Our assent to the proposition for the con-
struction of the Quebec and Hahfax Rail-
way would be qualified most decidedly by
the condition that the Imperial guarantee
shall be extended to the whole line of road
from Halifax to Hamilton (head of Lake
Ontario). Without this it would, in our es-
timation, be folly on the part of the Province
of Canada, to involve herself for the con-
struction of the Quebec and Halifax line.
Let it be a Halifax, Quebec and Hamilton
Une, and we will go for it most cordially."

From the St. JohrHs (New Brunswick)
Courier, February, 1862.

" That a Railroad from Quebec to Hali-
fax, especially as constructed and managed
by Government, will not for the first twenty
years pay half its working expenses, there
not being at present, capable of travelling by
it, over fifty thousand people on the whole
seven hundred miles. That before the
money can be got, there are various ques-

1 1

tions to be settled, such as the approval of
the route, a provision for the troops station-
ed in the Province, say some trifle of £30,-
000 a year — salaries of two or three thou-
sand a year to the Imperial Commissioners,
who are to take charge of our revenues, and
various other such minor details."

From the Hamilton Spectator (Conserva-
tive), January 22nd, 1862.

"The telegraphic report Avhichwe pub-
lished in our last, of the total failure of Mr.
Howe's Railway scheme, turns out to have
been correct. We are sure our readera in
Upper Canada will rejoice at the failure of
this most partial and iniquitous proposition
to saddle them with a heavy debt for the
construction of a road distant 250 miles from
their boundary, and which could never have
been of the slightest benefit to them. Judg-
ing by the language of the Montreal press,
we should think the good people of that
city, who might have indirectly expected
some advantages from the road, which we
could never never hope for, are well pleased
at the failure of the imdertaking, and the de-
feat of the chief cliiseller in Nova Scotia.
The Herald speaks as follows on the sub-
ject:

"This monstrous bubble threatens to
" buret and overwhelm its great projector,
" Mr. Howe, with deserved ridicule and ob-
" loquy. It appears that this great specu-
" later has ' entirely misunderstood' the Im-
" perial Government on the subject of the
" European line, and that he has also been
" the means of misleading the Governments
" of Canada and New Brunswick."

From the Kingston JVetvs.
"The Grand Trunk Railway. — It has
been charged upon those whe " have object-
ed to the arrangement entered into between
Mr. Hincks and Mr. Howe, in relation to
the 'GrandTrunkRailway' that their opposi-
tion is based rather upon the ground of hos-
tility to the Inspector General, and the ad -
ministration of which he is a member, than
upon any legitimate principle of public po-
licy. The allegation is hardly worth a de-
nial, ret we deny it most emphatically. —

Belonging to the number of the opponents
of the ministeritil scheme, we can at least say
for ourselves that no such motive as that
ascribed to us has influenced the publication
of a single word of condemnation of that
scheme in the columns of this journal, and
we see nothing in the columns of our con-
temporaries indicative of anything like a dis-
position to sacrifice a great project of inter-
nal improvement to personal or political
hostility to the gentleman who happens to
be charged with the chief direction of the
aiTangement, so far as this Province is con-
cerned.

"All parties are united in a desire for the
construction of a trunk line of railway, which
shall connect Quebec and Hamilton, but
they are not so united upon the expediency
of connecting Quebec and Halifax. The
country wants a very large portion of the
foi-mer work for the facilitation of trade and
travel — and the latter has chiefly local con-
siderations to recommend it. It is there-
fore not very diflBcult to determine which
has the gi*eater hold upon the public mind,
and is the object of its primary regard. One
objection to the ministerial scheme is, that
the work of primary importance is made to
take a secondary position, and that which
the people of this Province consider of com-
paratively little value, is thrust upon them
as one upon which they should concentrate
their energies, even at the risk of exhaus-
tion. * * * * *

" It is really too much, however, to ask
the Canadian people to consent to tax
themselves for $16,000,000 additional debt,
on the demand of Mr. Hincks, to accomplish
an object, which not only can be productivd
of no benefit to them, but which, if "attained,
may, and doubtless will, effectually prevent
the undertaking for years to come of that
line of Hailwag communication throughout
the Province, ivhich has long been to them
an object of ambition. Our government
may, with the aid of the Imperial guaitin-
tee raise the four millions required for the
Halifax and Quebec line, but they cannot,
we feel persuaded, follow up that loan, and '
obtain the additional three or four millions
necessary for the Quebec and Hamilton
Railwav. If the sum necessary to constmct

the whole hne can be prociired under the
Imperial guarantee, it would be well enough
to enter upon the gigantic undeitaking; but
it seems to us nothing short of madnt'ss to
proceed in the reckless niannei' suggested bj''
Mr. Hincks, and sanctioned by a majority
of the late Assembly.

' From the Cohourg Star.
" Upper Canada plundered to benefit
Lower Canada. — The independent portion
of the press of Upper Canada, of all shades
of politics, is out against the grant for the
Halifax and Quebec Railroad. By the
terms of Mr. iiincks' Act, Canada is pledg-
ed to pay the interest on sixteen millions of
dollars, and as Upper Canada pa}s four-
fifths of the taxation, we shall be victimised
to the extent of one dollar a head for every
man, woman and child, for the next hundred
years,* for interest, to say nothing of the tax
for the principal. Should the road not pay
expenses, and it will not, we shall have an
additional tax for that. True, Mr. Hincks
has provided in his act, that if there be any
surplus, we should have it, as far as it will
go, to build a road from Quebec to Hamil-
ton. But no sane man expects that there
will be a sui-plus, indeed if JNJr. Killally has
the management of the Canada portion of
the roadjWe fear seven millions will not build
the road even to Quebec. The Quebec
Chronicle has the impudence to tell us that
' a line of Railroad is not surely so much
wanted between Hamilton and Quebec,
there being now direct and speedy commu-
nication by water.' The writer is evidently
under the impression that our steamers run
to Montreal the year through, and, we sup-
pose, he will be much astonished to find that
for six months we are as much ice-boimd as
himself. But Mr. Hincks' Act not onlv
compels Upper Canada to pay for a road
which is of no more service to her tlian if
built in the moon, but it actually prevents
our municipalities going on with their own
road. For, not only will the people not
consent to pay a double tax, one for a road
down there and another for a road here, but
even supposing they were willing to do so,
the money could not be obtained, for the
sixteen million pledge will have exhausted

our credit at home. A country, like an indi-
vidual, has only a certain amount of credit,
and a certain amount of name, and the mo-
ment the one or the other reaches its ex-
tent it is of no further use."

From the same, March, 1852.
" We may now cease to look for Govern-
ment assistance to the front or rear line of
Railway from Montreal west. In the above
memorandum we find it clearly stated that
'Canada, in order to comi)lete itstrunk Hne,
will hav e to construct either by private or
public enterprsse, the line from Montreal to
the Detroit River, a distance of 600 miles.'
All our credit being absorbed in providing
funds for the Halifax and Quebec road, our
line must be built by ])rivate enteii^rise, or
not at all. To sink all our resources for a
scheme, that no man expects to be profitable,
to the prejudice of railroads that would pay,
and whose construction is of urgent neces-
sity, must be highly injurious."

.'i '■»

APPENDIX No. IV.
RemarTcs on Major Robinson^s Report.
In drawing up the accompanying reasons
against the proposal to construct the great
Intercolonial Railway from Halifax to Que-
bec, and thence to Hamilton, by the Pro-
vincial Governments — instead of leavingthe
project in its several parts to the enterprise
of Joint Stock Companies aided by Govera-
ment, — it was not considered necessary to
enter into the voluminous details set forth
by Major Robinson, and his associates, in
their Report of the survey of the line be-
tween Quebec and Halifax. The facts sta-
ted in the Memorandum are sufficient to
show, that Major Robinson has evidently
allowed his enthusiasm, in making out a
case for his favourite scheme, to get the bet-
ter of his judgment. A few facts, connected
witli the estimates of the Rei)ort, both as to
the cost of construction and probable busi-
ness of the Road, will serve to show, that
Major Robinson's data are to be received
with great caution.

First, as to cost. — ^The estimates of pro-
bable cost are based wholly upon similar
undertakings in the United States, — and

particularly of the Roads in Massachusetts,
and the New York, and Erie, and Hudson
River Railways in the State of New York.
How far such data can be relied on, must be
determined by the similarity, or dissimilari-
ty, of the particular routes chosen. In
Massachusetts the average cost ])er mile, of
a single track, is put down at .£7,050 ster-
ling, but owing to the cheaper r:\te at which
iron can be supplied to the British Provin-
ces, the cost of the Quebec and Halifax line
is set down at £7000, to which 10 per cent,
is added for contingencies, making in all
£7700 per mile. The entire line is there-
fore estimated to cost £5,000,000 sterling.

But the Commissioners have failed to
take into account the important fact, that in
Massachusetts the Railways almost invari-
ably follow the more level courses of the
numerous rivei-s and streams, and rarely
cross the mountain ridges. This Jilmost
uniform principle observed in selecting the
lines of Road in New England, possessed,
in addition to' the advantages of avoiding
engineering difficulties, the great desidera-
tum of traversing the most densely settled
parts of the country. It is an indisputable
fact, that the valleys of the streams, being
the most fertile, were the first settled, — and
at the commencement of the grand system
of Railways in New England, were thickly
peopled with an enterprising, industrious
population, engaged in agriculture and
manufactures. Every stream had already
been turned to some account, and New
England had become famous for its numer-
ous and beautiful towns and village''.

On the other hand, by Major Robinson's
own showing, (page 8 of his Report) the
greater portion of the Quebec and Halifax
Railway will not only pass through a perfect
wilderness, but will run at right angles to
the general courees of the streams and
river's, and, consequently, to the mountain
ranges. But it Avill be more conclusive to
give the words of the Report itself : —

"It will be evident, therefore," (says the
Report) " that any line, from the coast of
Nova Scotia to the St. Lawrence, has a
general direction to follow, which is the
most unfavourable that could have occurred
for it, having to cross all those mountain

ranges, streams and valleys at right angles
nearly to their courses."

This comparison must prove conclusively
that the Roads of Massachusetts cannot be
assumed as correct data, or data at all, for
the basis of an estimate for the Quebec and
Halifax Line. The nigged, broken country
travei-seil by the New York and Erie Rail-
way, 450 miles in length, is undoubtedly
more characteristic of the line recommended
by Ma,jor Robinson, or " any line from the
coast of Nova Scotia to the St. Lawrence."
At page 19 the Report gives the estimates
for this New York Road, then making —
(August, 1848) at "£6250 per mile, exclu-
sive of equipment." This is an excellent
exami)le of what value is to be attached to
the generality of Reports, got up to make
out a favourable ca=;e.

The writer of this paper was one of the
invited guests of the New York and Erie
Railroad Company, to the grand fete given
in May, 1851, to celebrate its completion —
and heard the detailed history of the work
over and over again from the mouths of the
President and otiier officers. The entire
cost of the Road at that time, with only
thirty miles of double track, was stated by
all the speakers at $25,000,000, or more
than £5,000,000 steriing. To this must be
added another million of dollars (£200,000
sterling) for subsequent equipment. This
will give, in round numbere, about £11,500
sterling per mile, or £5,250 more than the
estimate put down by Major Robinson.

The Hudson River Railroad is set down
in the Report at £7440 per mile. Upon
its completion, in October last, it was found
to have cost over £12,000 steriing per mile.

The latter road follows the river its whole
length, — and the New York and Erie, the
valleys of the Delaware, Susquehanna, Che-
mung, Gennesee, and Alleghany Rivers and
their tributaries, for at least three-fourths of
the way. The inference, therefore, is that
they have cost less per mile than a road run-
ning across " mountain ranges," streams and
valleys at right angles."

It will not be assuming too much to place
this disadvantage as a sett off against the
additional cost of iron in the States.

But the New York and Erie Railway, by

fbllowiog the courseu of the rivers, also fol-
lowed the lines of Hettlements, where men,
horses, and provisions for both, could be had
for a moderate price on the spot — whilst all
these would have to be transported, at enor-
mous cost, through hundreds of miles of
wilderness, if the work is to be completed
within any reasonable time, for the Halifax
route

But supposing, with all these drawbacks,
that the Halifax road can be constructed as
cheaply as the New York and Erie — which
is assuming more than the circumstances
warrant — it will cost £11,600 per mile, —
or for the whole length (635 miles) £7,302,-
600— which is £2,302,500 more than Ma-
jor Robinson's estimate. Even this sum is
regarded by experienced American En-
gineers as far too low for completing and
equipping a road,running 600 miles through
a wild mountainous country, covered for six
months every year with snow (stated by Ma-
jor Robinson himself to be not less on an
average than from three to four feet,) a
country entirely deficient in men, horses and
food — ^in fact in every pre-requisite for cheap
construction, excepting only, timber and
stone, which in America are everywhere
cheap.

Another thing must not be lost sight of
in taking the American Roade^. mentioned
by Major Robinson, as data for estimating
the probable cost of the Halifax Railway. —
That is, the fact that the former are owned
by companies, which all experience goes to
prove to be more economical, by far, than
Governments, — whom most of the world
seem to regard as legitimate objects for
plunder — whilst it is proposed to construct
the latter as a Provincial work, through the
medium of Government agents. It must
also be borne in mind, that a work of such
magnitude will require some double track,
in order to its being worked in safety ; this
Major Robinson has not estimated for. ]ts
entire cost and equipment, cannot therefore,
under all the circumstances, be honestly es-
timated at less than from eight to ten
millions sterling.

It is not intended to apply any of these
arguments against the proposed line from
Quebec to Hamilton, or to the Great Wes-

tern, now in a forward state of construction.
The coimtiy here is of an entirely opposite
character. It is almost a level plain all the
way, having nearly as regidar a grade as
the great River and Lake themselves, whose
beautiful, fertile and well settled banks it
will follow for its whole length, and from
which there is a fair promise of a paying
business.

Secondly, as to the estimated business
resources : —

If Major Robinson has been wide of his
mark in his estimate of the cost of his road,
ho has certainly taken a higher flight into
the regions of fancy, in search of data to
supply it with traffic. A few facts, to which
the four years that have elapsed since his
Report was got up have given birth, will
serve to bring the subject within the com-
prehension of ordinary and less excitable
minds. ^

At page 21 the Report assumes the pop-
ulation " within the area which will be be-
nefitted by and become contributors to the
line" at 400,000. This includes the two
tenniui. It is then taken for granted, that
each inhabitant will contribute eleven shil-
lings per annum in the shape of business,
towards supporting the line, — this being the
amount ]xn' head in Massachusetts. Now it
is not to be taken for granted, that a popu-
lation chiefly engaged in lumbering and
fishing — and so poor that a St. John's pa-
per published a statement in 1849, to show
that about 10,000 persons left New Bruns-
wick every year for the States — would af-
ford the same support for a Railway, as the
wealthier and far more energetic inhabitants
of one of the most impoi-tant States in the
Union. Besides, it must first be proved,
that the people of Quebec, numbering 50,-
000 — and about an equal number in its vi-
cinity, taken into Major Robinson's calcula-
tions, will not prefer the shoi-ter way to the
sea, at Portland or Boston. Taking these
circumstances into account, this item of the
estimate may be fairly shorn of three-fourths
of its proportion, — in other words, the gross
sum of £200,000 must be cut down to
£75,000, as the probable result.
Before going further, it may be as wdJ to

ictio&.
posite
ill the
de as
whose
nks it
from
jaying

have some criterion by which to estnnate
the probable cost of operating, and keoi)inj^
the line in repair. The Eilitor of the Ameri-
can Railroad Journal last suninu!!-, havinjr
access to the most reliable information, siits
down the cost for operating, and road re-
pairs and renewals, for the Now York and
Erie line— 450 miles— at fi<2,500,000, say
£500,000 sterling ])cr annum. Taking
into account the additional length of the
HaUfax Road of 185 miles, that line could
not, at the same rate, be o}x*ratod and main-
tained at less than £700,000 sterling i)er
annum.

It may be argued that the ])usiness of
the Halifax lino could not bo exi)ected to
be equal to the New York and Erie, and
that, coasequently these expenses would Im
less. The answer to this is obvious*. If the
business does not exceed that of the Erie,
then the road will indeed be a hard bargain
for the Provinces. The larger the traffic of
a Railway, so that it be within its capacity,
the less will be the cost of opemting, compar-
ed with its businesss. If this be tme, and
it is, laid down as so established, a road must
have a certain amount of traffic before it
will pay for operating and maintenance of
way, after which a certain portion of the re-
ceipts, to be ascertained by experience, will
be profit, and the other portion go to defray
the increase of expenditure. Now, the re-
ceipts of the New York and Erie, as taken
from the company's own statements, are put
down for last year at |3,000,000, or £600,-
000 sterling, leaving for profit on an invest-
ment of £5,000,000 the sum of £100,000,
or 2 per cent.

tf, therefore, the Halifax line should only
cost at the same rate per mile as the Erie,
(£11,500) or £7,300,000 for the whole, and
its business should be equal to the latter — a
supposition too improbable to be entertain-
ed — ^there would be an annual loss of £ 1 00,-
000, in addition to the interest to be paid
on its cost. Taking the interest, under the
Imperial guarantee to be 3^ per cent, it
would amount to £226,500, or including
Ibss on running and maintenance £335,500,
to be provided for out of the Provincial
leveniies. But from the facts adduced in the
aeeompanying Memorandum, — supported

by Mr. Merritt's Resolutions, establishing
the improvident and extravagant manage-
ment of Public Works by the Provincial
Government of Canada — even this estimate
f»f losson operating and maintenance of way
will be found too low, and it will probably
not be too much to put down in round
numbera $2,000,000 or £400,00 sterling,
as the sum that will have to be provided for
every year by the Provinces.

This estimate, it must however be recol-
lected, is based upon the supposition that
the traffic will equal that of the Erie line.
Should it fail in doing so— and no man
knowing any thing of the subject will be
found hardy enough to assert that any other
result will follow — then the loss to the Pro-
vinces w ill increase in nearly the same ratio
that the business decreases. Or, to make
it more clear, if the receipts amounted to
only one-half, or £300,000, then the ex-
pense of operating and maintaining would
probably amount to only £600,000 — ^the
same amoimt as in the case of the Erie,
which would cause a loss of £200,000 in-
stead of £100,000 to be added to the inter-
est The sum to be provided every year
by the Provinces would then amount to
two and a half millions of dollars, or £600,-
000 sterhng.

Bad as this case may appear for the Ha-
lifax line, it is by no means the worst view
of the enteiprise. It now remains to be
shown, that nearly all the other estimates
of traffic are wholly fallacious and improfa'ar
ble, — except that which would grow out of
the comparatively small business of trans-
porting supplies of provisions for the local
residents, until the products of the countiy
would equal the deficit already existing, or
which would be created by a sudden i^ux
of population. This latter source of busi-*
ness cannot be insisted upon as likely to be
of any considerable importance short of 20
yeai-s.

At pages 22 and 23 of the Report, it is
attempted to be shown,that not only ttie suP'
plus productions of Western Canada, which
are sent to England and other transatlan-
tic (Countries for a market> but also a laiga
quantity of thoee of the Westeili fitotei^

1:8

wotUd find their way to tho port of Halifax
for shipment.

At the time the Report was delivered to
the Secretary of State for tho Colonies
(August, 1848), the system adopted by tho
American Government, of admitting the
transit of Canadian produce, and merchan-
dise, through its tenitories for exportation,
free in bond, was only in its infancy. There
was but one lino of Railway through tho
State of New York, that touched tho navi-

f'able waters of Lake Ontario, — and that
inewas not pennitted to compete with tho
Erie Canal,during the se.Tson of navigation,
and could not cuiry freight, even in winter,
when the canal was closed, except by pay-
ment of *• Canal dues," as they wore called.
Since that time thero have been opened
several new lines of Railway between tho
ports of New York and Boston, and various
points along the Canadian Frontier, and
there will shortly be several more. These
various roads tap the Province line, or ter-
minate at harbours on the Lakes at the fol-
lowing points, namely : — at Dunkirk, and
Buffalo, on Lake Erie, and tho Niagara
River at the Falls, which is to bo crossed by
a substantial Railway Bridge, to cany over
heavy trains; at Rochester, Oswego, Sack-
ett's Harbour and Kingston, on Lake Onta-
rio, and Ogdensburg on the St. Lawrence
— a road already doing an immense Cana-
dian traffic — and at Montreal, where there
are two lines now open, leading, the one to
New York and the other to Boston, and a
third, the St. Lawrence and Atlantic, nearly
completed, leading to Portland. Recently
a law has been passed in New York to al-
low all the roads in that State to carry
freight and compete with tho Canal, free of
dues. There has also been a reduction of
forty per cent, upon the tolls of the Erie
Canal.

The effect of the competition of the Rail-
ways has not yet been felt in reducing the
cost of transpoi-t, except in the case of
the Ogdensburg line, but the general ten-
dency of these measures has already been
to divert one half of the traffic from the St.
Xiawrence. The following statements of the
trade of Canada will show how the case
nlood at the doso o( 1 850 :•—

TABLES.
No. 1.
Exhibiting the comparative valve of all
articles the Produce and Manufacture
of Canada {excepting the products of
the Forest) exported into the United
States and (rreat Britain respectively^
in the years folloioing :

1849. 1850.

Into United States, £051,803 £1,022,511
" Great Britain, 338,755 229,474

In favour of U. S. £313,048 £ 793,037

No. 2.
Shoiving the comparative qtiantity of flour
and wheat, the latter being reduced to
barrels, exported into the United States
and Great Britain, and all other coun-
tries, by the St. Lawrence, for theyears
following — in barrels:

1848. 1849. 1850.
Into U. States, 362,294 400,928 673,030
Into Gt. Britain

and other coun-

viaSt.Lawrence422,105 339,871 301,163

No. 3.
Shoioing comparative export of wheat m
bushels of 60 lbs.

1847. 1848. 1849. 1850.
ToU.S. No ret 297,011 928,980 1,213,078
Gt.B. 628,091 238,051 72,289 81,951

favor of U. S. 58,960 856,691 1,131,127

For total of imports and exports including
timber d'c. see tables in Appendix No. 2.

The official Returns for 1851, have not yet
been filed at the Colonial Office. They will
doubtless exhibit a still more striking result
in favour of the American routes of traffic to
the seaboard.

The causes of this rapid divei-sion of trade
from the St. Lawrence to the American
channels of traffic, are wholly owing to the
lower rates of freight and insurance by the
latter. It is evident that inland freight*
have not yet reached their minimum under
the competition of the several Unes of Rail-

)3,037

way, and the removal of the 2^ per cent,
ad valorem duty nntil lately c-lmrged by the
American Government n)>on all goods pjus-
sing tlirongh in bond. Within two vcnrrt
the enlargemont of the Erio Canal will bo
completed between Albany and Oswego.
Vessels of 250 to 300 tons Imithon can thon

fo from Lake Ontario, and all tlio u]i|»{'r
lakes, with cargoes all the way to New
York, without breaking bulk. It is estina-
ted that flour can then be carried from Lake
Ontario to New York for 26 cents., or Is.
sterling, per barrel.

Major Robinson gives the following as
the rates for transporting flour in 1848,
namely : —

From Upper Canada to Quebec, - - 2s.
Quebec to Livei-pool by the liiver, 5s.

Total

Ts.

He says, at page 23, "it has been calculated
that the cost of transport for a barrel of
flour from the Lakes to New York was 5s.
Id. sterling; to Boston 6s., exclusive of
charges for transhipment." The freight
from New York and Boston to Europe is
not stated, but could not bo put at less than
is estimated from Halifax, namely, 3s. This
would make the cost for sending a barrel of
flour from the Lakes to Liverpool via New
York 88. Id., and via Boston 9s. sterling.
The estimate for transport by his Halifax
line is as follows:

jr. d.

'' Upper Canada to Quebec - 2

Quebec by Rail to Halifax - 2 2

Halifax to Liverpool - - - 3

Total ... 7 2

According to these data, the cost by the
Halifax route would be 2d. per barrel more
than by the River. But this it is argued
would be far more than counterbalanced by
saving in time, avoiding the risks of a dan-
gerous navigation, and ability to reach a
seaport after the St. Lawrence is closed in
winter. There would be, as compared with
New York, a saving of lid. and with Bos-
ton of Is. lOd. These facts are stated in
order to contrast them with the present rates
of charges.

During the month of October last, th«
freight on flour from Now York to Liver-
pool nded at about 7-J^d, and was at one
time as low as Od. per barrel. At the pro-
sent time it is quoted at Is. V^d. to Is. 9d.
sterling. The average rate would probably
bo \\\n\ov Is. Gd. From Lake Ontario to
New York the average may be correctly
stated at the same sum — making 3s. from
Canadian Ports on the Lake to England,
as the average cost, by the United States.

I'he otl'oct of this competition has been
to bring down the freights by the St. Law-
renoo. In a little work, containing infor-
mation respecting the trade with Canada,
r<^cently publisluid by I.Iessrs. Henry Chap-
man <k Co., of Montreal, Commission Mer-
chants, tho freight on flour is set down for
tho present year at 2s. 6d. to 3s. Cd. If
3s. be taken as the average, the cost of trans-
poiting a bai-rel of flour from Montreal or
Quebec, by the Rivei', to Liverpool, will be
the same as it is from Toronto or Hamilton
via New York. The cost per barrel from
Toronto cannot be assumed to bo less than
Is. 2d., including transhipment and port
charj;es. Thus much have the American
routes the permanent advantage over the
St. Lawrence. Giving to the Halifax route
the benefit of the reduced charges on freight
and still adhering to Major Robinson's
estimates, the case will stand thus at the
present time :

8. d.

Cost per bbl. U. Canada to Montreal, 1 2

Thence to Quebec, say - - - 4

Quebec to Halifax, by Rail, - 2 2

Halifax to England, . - . l 6

In all - - - 5 2
Excess over the River route Is. 2d., over
the States 28. 2d. But it can be shown
that Major Robinson has set down the ac-
tual cost of transport over his line at only
25 per cent, of what has been found to be
the minimum on the American Railways.
He has evidently been led into this error by
the statements published by the New York
and Erie Railway Company in 1847. It
has already been shown that the estimates
of this Companyas to probable costoliheiv
I road were fully 85 per cent, too low,

Tlie following table i» taken from a very
able Report published in tlio Amoricaii
Railroad JournnI of the 27tb Marcii, 1852,
made by Walter Oingnn, Ewj^ Cliitf En-

S'neer of tho James River and Kanliawa
iinal. It btw evidently been (H)in[iile(l
witb ffivat care, and umy bi' relieil ujKm jh
exhibiting tlie nearest a|»i>i'(»xiiiiation (<» tho
actual co.it of trans(K»i'L on American Kail-
roads over iiublif<hecl.

**Actual cost [ojyproximatelt/] per ton pa'
mile of transport/' iifffirhf/U on tke/ul-
lowing Ruih'oads In 1850.*

MAbbACIlUSKTTS.

Cents.

Western,

i,r.oi

Boston and Worcester -

1,720

Boston and Maine - -

2,958

Boston and Providence -

2,200

Boston and Lowell -

2,531

Old Colony - - -

2,907

NEW YORK

[Note, that tho estimates (n the New
York roads are exclvsioe of cost of iron, ro
pairs of road, 4ci>reciati<>n of engines, ma-
chinery, and freiglit and pasisenger cars.]

cts.
Albany and Schenectady, - 4
Hudson and Berkshire, - 2,3
Hudson River Railroad, - 4
Northern Railroad - - 4,3
Oswego and Syracuse, - 2,4
Rochester and Syracuse, - 1,0
Utica and Schenectady, - 1>8
New York and New Haven, 3,1."

These tables show amaxinmmof 4 cents
and 3 tenths a ton per mile, and u mini-
mum of 1 cent. 501 thousandths, Avhieh
may be called 1^ cents.

In order to extract from the above table
anything like reliable data, to form an esti-
mate of the actual cost of traasporting
freight on the proposed Quebec and Hali-
fax Railway, it would be necesvsary to select
some line of road bearing tlie nenrest re-
semblance to it in its gradients, liut giv-
ing . to the Halifax line the benefit of
the lowest estimate, namely upon the Wes-
tern road from Boston to Albany, and also
the advantage of the fraction of sixty-one

thousandths of a cent thrown off t<»
make tlm estinnito an even cent and a half
|)er ton, j>er njilo the result would be us tbi-
Iow8 :

Cast f»er ton over tho Halifax road, at
1^- cents pi-r mile |0;i5j 9 dollars 62^
ei'iits., i<|iial to aluiut. 40s. sterling, instead
t»flls, a.x^unied by ilajor Robinson upon
Ills «'iToni'ous data. At this rate, allowing
lU barrels to the ton [in America the ton
in all estimatv's is takt-n at 2000 lbs.] tho
cost for traii.spoi'tin'i,- Hour from (iuebec to
Halifax would In; 4s. sterling jnir barrel.
Add to this tho very inoderate sum set
down in tho Report "to j^ay interest on
eapital," of Is. Id. — tlie charge for trans-
[lortiug a barrel will be As. Id.

But unless there was a very largo freight
traffic, tho ex)-M'ns<> to the road would be
greater, as previously ])oint('d out. Enough
however has Ikhmi shown, upon Major Ro-
binson's own figures, to prove that a Rail-
way from Halifax to Quebec, if it should
now be constructt'd, cannot compete either
with the St. Lawrence or any of the Ame-
I'icnn routes, for the Canaditm transatlantic
business.

If any more conclusive evidence in sup-
port of this deduction is required, it Avill be
found in the fact, that the American routes,
by being so much slioiler, would command
the business, if tho Governments of tlie
Provinces should be so liberal as to cany
freight over the Halifax lino for nothing, and
pay all ex])enses — a piece of liberality,
which even Major Robinson has not thought
it commendable for them to undertake.

If the minimum cost of transport on the
American Roads be admitted as tho basis
for estimating for the Halifax line, it does
more than overthrow tlie assumption, that
this road would command any share of the
Canada transatlantic trade. It establishes,
by equally conclusive evidence, that the
su])plies of Western Canada produce, re-
quired for home consumption in New
Brunswick and Nova Scotia, can be trans-
ported cheaper both by the St. Lawrence
and the American ports. If flour can be
carried [as it is regularly done at present]
from Lake Ontario to Liverpool at from 3s.
to 38. ed. per barrel [the latter may be ta-

a hult'
c m Ibl-

road, at
rs 62 i-
iiustoad
)ii u|)un
1 lowing
tlio ton
Iw.] tlio
<jl)ec to

barrel,
■ium H(!t
rest on

tmns-

ken as the inaximum] it is clear that it can
be delivered at St. John's and Halifax at the
same rate, or lower, whilst it is shown that
68. Id. is the lowest charge that could be
made for carriage over the propow^d Rail-
way — to which must be added at lojwt ) f .
6d. for transport from Up|K,'r Cuiiuda tu
Quebec.

The following table of distances will
serve to elucidate the subject still i urtlier,
and ought to convince evtjry unprejudir/Hl
person, that the chances of the UaUfux line
are utterly hopeless :

Miles.
Quebec toHalifax, via proposed Railway 635
Do do via Valley of St. John's 600
Do to Portland, via St.Lawrence and

Atlantic line, - - - -300
Do to Boston, via Montreal - - - 600
Do to New York via Montreal, - 670
Montreal to Halifax, via Quebec and

Halifax line - - - -815

."■Do to Portland, ?80

Do to Boston, 320

Do to New York 370

Toronto to Halifax via Quebec route, 1185
Do to New York, via Oswego - 470

There is only one thing more that need be
noted as a great additional inducement for
Canada to trade through and with Boston
and New York, in preference to Halifax,
and that is the advantage, always conceded,
as pertaining to large markets over small
ones.

The proceeds expected to arise from the
sales of lands opened up by the Railway,
have already been disjwsedofinthe accom-
panying Memorandum. Instead of a pro-
ifit resulting from them, it will be seen, by
reference to the North American Review,
published at Boston, for January, 1852 —
article on " The Commerce of the Biitish
Provinces," that in New Brunswick the
gi-oss amount of sales is insuflRcient to de-
fray the expenses of the department which
has their management. This part of Mr.
Robinson's estimate of profits must there-
fore go for nothing, or rather a sum must
be added to the interest account of the en-

terprise, to be paid out of th« Provincial
Treasuries.

By reference to a Memorandum signed
by Mr. Hincks, Inspector General of CanA-
dft, on the subject ot the Halifax and Que-
bec Railway, dated ISthDeoember, 184S,
and published at page 60 of the Report, it
will m -^een, that the views of that gentle-
man, re«|»f?**ting the desirability of the Pro-
\mv of Canada att'ording aid to this enter-
prise, JiHve undergone a great change since
that time. Mr. Hincks distinctly condemns
the enterprise as a " more mercantile specu-
lation," and says " its total unproductiveness
ought to be provided for." He concludes
his Memorandum as follows:^ — "Should
the Imperial Government be induced to
undertaKo this great national Avork, the Ca-
nadian Legislature would be ready, there
can bo no doubt, to transfer to the Imperial
Government, or its Commissioners, the lands
on each side of the Road, to the extent of
two miles in depth, Avhen it should pass
through the public domain, and would also
be at the expense of purchasing all the pri-
vate property, required for the Railroad
line, and for the Stations at the terminus."

Mr. Hincks' liberality has doubtless been
acted upon by the large increase of the Pro-
vincial Revenue, — for he is now willing that
the Province of Canada shall not only give
two miles on each side the roadway, but
any given quantity of lands, in addition to
purchasing the private property, required
for the use of the road,-^ — and he recom-
mends that the Province shall supply the
money to oonstmct and maintain five-
twelfths of the entire hne. 1 j-iriiivrvin

But Mr. Hincks' views dboirf Canadian
Railways have never been settled for any
length of time. He several times changed
his opinions on the merits of the Great
Western of Canada, line, at one time advo-
cating it, and another time espousing the
cause of a rival Company. This fickleness
of temper may be seen both in the columns
of the paper {Montreal Pilot), which he
formerly edited, and in his speeches in
FarHament, as reported.

APPENDIX No. V.

Although the facts and circumstances adduc-
ed clearly indicate that a Railroad from Quebec
to Halifax, by the route recommended by Major
Robinson, or by any other route, must at present,
and for many years to come, prove a ruiaous en-
terprise, it does not follow, that it may not, at
aome fhture period, become a good mercantile
undertaking.

The history of similar enterprises, and the pro-
gress of settlement and civilization in the United
States, would suggest the following principles as
the true policy of the British Provinces, in refer-
ference to this work, and to the settlement of their
waste lands.

Some general plan should be agreed upon by
the three Provinces of Canada, New Brunswick
and Nova Scotia, and a line selected for a future
Railway. Companies should be chartered and
aided by the respective Governments to com-
mence and construct such portions in each of the
Provinces as would pay expences and afford a
profit to the shareholders. The local interests of
New Brunswick andNovaScotia could thus be har-
monized by tho simultaneous commencement of
Roads at St. John's and Halifax, to unite at some
convenient point — thence to be gradually extend-
ed, as the country becomes settled, and affords
business to support a common line of Railway.
At the same tune, a line might be commenced
at Quebec, as an extension of the proposed Mont-
real and Quebec Rulway, and carried 40 or 60
nules eastward, through the well settled part of
the country described by Major Robinson.

In order to prevent the present population
from emigrating in considerable numbers every
year to theUnited States — and to induce any im-
migration from Great Britain and other Europe-
an countries, the Public Lands should be sur-
veyed into sections, and sold at a low and uni-
form price, on the principle that has proved so
«fBcacious and attractive in the United States. —
Not more than one square mile shovdd be sold to
one individual. This precaution would be indis-
pensable, in order to prevent that bane to the
progress of new countries, private speculation in
lands. The principle recommended constitutes a
leading feature in the American system, as con-
trasted with the management of the wild lands of

the British Colonies. In the latter, Compsnies
have been chartered for the express purpose of
speculathig in lands, which ought to have been
given, or sold at low rates, to actual settlors. —
Both tho Imperial and Local Governments have,
hitherto, done everything in their power to foster
speculation, by selling to such Companies, and to
large capitalists, at low or merely nominal rates,
whilst they have done very little for the poor man,
who buys for actual settlement, unless it be to
charge him four or five times as much as the
rich speculator.

Thus the best lands of the Provinces are
bought up by private speculators, who make large
fortunes, and retard the progress of the country.
Whilst systems so vicious continue, it is in vain
to point out to intending emigrants in the mother
coimtry the advantages of settling in the British
Provinces, which, in other respects, present so
inviting a field of enterprise and prosperity. —
Many millions of acres of the finest lands in Ca-
nada are in the hands of such speculators, who,
in order to make larger profits, retain them until
the Government 1ms opened roads, and been at
the expense of settling those in the neighbour-
hood.

Under such management, and with a host of
highly paid employes, it is not to be wondered at,
that the Land Departments do not pay expenses.
The knowledge of the existence of such evils is
of itself sufficient to prevent the class of emi-
grants most useful in a new country — namely,
such as have amassed a few hundred pounds by
their own industry — from going to the Colonies
to lay out the fruits of their labour.

From 300,000 to 400,000 emigrants* settle
every year in the Northern and Western States,
and the accounts they send home to their friends,
accompanied by remittances, to aid them to fol-
law, keep up the incessant stream, and add to it
each year increasing numbers. It has been estima-
ted, by a nobleman who was several years ago at
the head of the Colonial Department, that the re-
mittances sent from the States to Ireland alone,
by settlers, to enable their friends to join them,
amounted in three years to no less than two
millions of pounds sterling, as follows ; — In 1848,
£460,000; in 1849, £640,000; and in 1850,

• S«)0,000 landed at the Port of New York alone,in 1850.

£900,000. On the other hand, it la computed
that nearly one half of the comparatively small
number of those who go to the British Provinces
cross over into the neighbouring States.

If the North American Provinces would set
seriously to work, to reform the abuses that have
hitherto existed in their Land Departments, and
place men of business', instead of adventurous
politicians, in their other administrative Depart-
ments, there would be no necessity for their per-
petually beseiging the Colonial Office with impor-
tunities for aid. Under wise and economical sys-
tems of Government, such as exist in most of the
States, where Governors and public officers of high
business qualifications, are found to serve for less,
by half, than is paid in the poorer Colonies, there
might be a reasonable hope of having a good

paying line of R^hroad constructed within twenty
years, without Imperial a8si8tance,-HUid the
basis of a future empire established second, in
America, only to the United States themselves.

For the Imperial Government to lend its name
and credit to the proposal now made, to obtdn
money to construct more than a thousand miles
of Railway, would be to foster and encourage the
evils complained of, — and to create new and un-
heard of abuses. They will only do uyury, in-
stead of good, to these important Provinces. If
aid is given, let it be distmctly understood that
the contemplated works shall be left to private
enterprise to supply one half of the capital. This
will afford a guarantee, that they will not be un-
dertaken until there is a pretty fair certunty of
their turning out good investments.

Printed at the " Spectator" Office, Corner of Court-House Square.