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 {SHOWmC THE PLAN FOR SHORTENINC TNC TRANSIT 
 
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PROSPECTUS 
 
 OF THE 
 
 EUROPEAN AND NORTH AMERICAN 
 RAILWAY COMPANY : 
 
 INCORPORATED DY THE LEGISLATURE OF MAINE. 
 CAPITAL 40,000 SHARES OF $100 EACH. 
 
 TERMS OF SUBSCRIPTION. 
 
 The bubmcriberb hereby agree to take and fill the number of Shares in the 
 Stock of the European and North American Railway Company, set against their 
 names respectively, on the terms and conditions following, viz : 
 
 lit. The advance pavroent on each share ihall be one dollar. 
 
 2d. The shares shall not be assessed more than five dollars each, payable at one tim c 
 nor to a greater amount in all, than one hundred dollars. Including the advance of one dol- 
 lar, nor shall more than one third the amount be called for, in one year. 
 
 3d. Whenever the vrhole amount of one hundred dollars shall be assessed, and the road 
 put in operation for the Mihole or any part of its distance, the holder of stock upon which 
 the assessments sliall have been paid in full, shall receive interest at the rate of six per cent, 
 on the sums paid on his or her share or shares, computed from the days of payment up to 
 (he time the last assessment shall become due and payable. If any stockholder be delin- 
 quent, after said time, Interest shall be charged on his assessment from said time till pay- 
 ment. 
 
 4th. Whenever the Directors shall call for any assessment, every stockholder shall be at 
 liberty to pay such sum over and above the amount actually assessed, as he or she may see 
 flt to pay, not exceeding one hundred dollars on each shore, and interest shall be allowed 
 and paid thereon, as provided in the third regulation. 
 
 5th, If tlie whole number of Shares subscribed for, shall exceed forty thousand, such 
 exeess shall be disposed of by reducing pro rata, the subscriptions which are over twenty 
 five sliares, without making fractions in the apportionment of the excess. 
 
 The undersigned. Corporators named in the act establishing the European & 
 North American Railway Company, passed by the Legislature of Maine, and 
 approved August 20th, 1850, present the claims of that enterprise to the public 
 iittention, and moat respectfully ask the concurrence and co>operation of all, who 
 
 
 «*» 
 
feci an interflst in tho oarly roinpletion of a work, " which," in the hingniigo of 
 that didtinguiithud Stuti'Hnmn, the Hon Robviit J. Walker, "will greatly 
 enlarge international commerce, and become a new bond to preserve the peace of 
 the world." 
 
 We feel justified in saying, that the contribution of one million of dollars only, 
 in the form of subscription, to the Htock at the present time, will secure beyond 
 all peradventure the early completion of the European & North American KuiU 
 .vay. 
 
 The cities of Boston and N. Vork, the (-'nnadas and the far West, are connected 
 by Railway with the State of Maine, by lines extending as far east as the Ken- 
 nebec River. The Portland and Montreal Railroad far advanced toward com- 
 pletion, and to bo opened to Montreal during the coming year, with the Railways 
 of New England, secure the convergence of all the lines of Railway in the United 
 States and Canada, upon the single trunk Railway, which wu now propose to ex- 
 tend, from the Kennebec valley to the Atlantic shore of Nova Scotia, and will 
 ensure to this trunk line, when completed, the travel between the two Continent*, 
 that seeks to abridge the length of passage, and shorten the sea voyage between 
 Europe and America. 
 
 While claiming for this line all tho advantages proposed, for shortening the 
 transit between Europe and America, reducing tho length of passage to five or 
 six days time, it has claims on the business men of the British Provinces and the 
 Northern States of the Union, as a means of increasing trade, stimulating enter- 
 prize, and augmenting the productions of tho region of country through which it 
 is to paaa. We concur in the opinion expressed by the Portland Convention. 
 
 " That from the valley of the Kennebec in Maine to the Eastern terminus on 
 the Atlantic coast of Nova Scotia, the proposed line of Railway will traverse a 
 country abounding in natural resources and possessing all the elements of wealt 
 and commercial greatness in an unusual degree ; that although now sparsely pop- 
 ulated, this line of country under railway intluence will soon become densely 
 peopled, and every species of industry will be called into existence among its in- 
 habitants." 
 
 Since the separation of the Portland Convention, all the opinions expresseil by 
 that body, have been abundantly confirmed by various public bodies and the press 
 generally in Europe and Ameiica, and by the more matured opinions of an Engi- 
 neer of the highest authority, as to the practicability and paying qualities of the 
 line. Upon these grounds alone, we may confidently appeal to the conmiercial 
 world for support. We believe that in order to justify us in expecting its entire 
 success, it is enough to say that it is proposed to extend a line of railway through 
 a region of country rich in every natural advantage, — forests, soil, climate and 
 mineral wealth, — over a route the most direct and practicable that can be ascer- 
 tained, irrespective of intermediate localities, remote from water communication, 
 — giving it perfect immunity from all competition forever, by securing the most 
 direct possible line, between the great centres of population and business. 
 
 In further confirmation of these views, we refer to the very able Report of A. 
 
 ^# 
 
 ^i^rni^'- 
 
W^fW 
 
 €. Morton, E«q., upon the whole line, « omittfd to the Governor of Mnine nnd 
 iimdo under the authority of the Htate. 
 
 The length of line from the Kennebec River to Ilnlifux °i 475 inileM. It in 
 proiM>ried to build thin lino in aepurute sectionH, all partd of tho work, being 
 kept in subordination to one general plan, so that an unbroken lino of Railway 
 Bhnll connect llalifiix, Nova 9cotia, or whatever Eastern port is adopted, with al 
 the Railways of Canada and the United States. 
 
 From Waterville to Bangor, the distance of 55 miles, tho means re<,uired will 
 unquestionably bo furnished by tho guarantee of tlie Railway companies, connect- 
 ing Waterville with tho Railwoys, extending from that point toward Boston. 
 
 Froiii Bangor to tho Boundary of New Brunuivick, a distance of 96 miles, the 
 Charter of the European & North American Railway, under which we are now 
 acting, authorizes tho construction of a line of Railway on the most direct and 
 practicable rou^o to the city of St. John, New Brunswick. It is for this portion 
 of the line that we now invito subscriptions. 
 
 The Province of New Brunswick, by an Act passed on the 15th of March, 
 1851, incorporated a Company under tho name of the European & North Ameri- 
 can Railway Company, for tho purpose of making a Railway, which in section 
 8 is described as " A Railway to run from some point or place from the Eastern 
 boundary of this Province in the county of Westmorland, so as best to connect 
 with n Railway to be constructed from the city of Halifax or some other port on 
 ihe Eastern coast of the Province of Nova Scotia on tho Atlantic Ocean, over the 
 most practicable route through the Province of New Brunswick, so as best to 
 connect wilh a Railway to be constructed from the city of Bungor in the United 
 Slates of America, to the Eastern part of the State of Maine." 
 
 This Charter is of tho most liberal character, and while the British Ministry 
 request certain modifications of the charter, of a character in no respect objection- 
 able to the Company, a recent Despatch of Earl Grey, under date of June 12, 
 1851 , contains an assurance of its approval ; — so that, the requisite authority is now 
 obtained, for the construction, by a private Company, of a continuous line of 
 Railway from tho city of Bangor to t'.ic boundary of Nova Scotia. 
 
 Of this distance, all that portion of the route from St. John, East, contains 
 ample means along its line, to construct a Railway, and resources, popula- 
 tion, and business adequate to support such a line, whenever completed. 
 
 It is the distance from Bangor to the city of St. John that requires our principal 
 exertions. From St. .Tohn to the boundary of Maine the 73 miles required to 
 form this connection, will have ample means furnished by the people of St John 
 citv, and New Brunswick, as soon as the Facility Bills receive the Royal assent. 
 By these Bills, New Brunswick offers to grant assistance by a subscription to th»' 
 Stock of the Company, to an amount equal to ^1 ,250,000 from time to time in sums 
 of ^50,000 each, on the payment of equal sums by the Shareholders in said 
 Company ; and a gift of all the ungrantcd crown lands contiguous to ond within 
 live miles of each side of the line of said Railway. 
 
 This assistance from the Province of New Brunswick, will at once command 
 
wHWcWfiMVJPiiff III ,i.«.i,ipif»™ iin-1." ui^ii- 
 
 ^ 
 
 llie means to build tho line from the boundary of Maine to St. John city, even if 
 no further or other assistance is afforded by the Colonial or Imperial Governments. 
 But it is known that the British Ministry have proffered assistance to tlie 
 North American Provinces, to an amount sufHcient to provide *' for tho construc- 
 tion of a Railway, by which a line of communication may be established on 
 British Territory, between the Provinces of Nova Scotia, New Brunswick, and 
 Canada, *♦ "from Halifax to Q,uebec or Montreal." The Hon. Mr. I la wes, 
 under Secretary of the Colonial office, says " it is also to be understood that 
 Her Majesty's Government will by no means object to its forming part of the 
 plan which may be determined upon, that it should include a provision for estab- 
 lishing a communication betveen the projected Railway and the Railways of the 
 United States." 
 
 The Hon. .Ids. Howe the able and distinguished Delegate from the Province 
 of Nova Scotia, through whose agency and by whose exertions these pledges 
 have been obtained, informs us that the British Ministry estimate the amount re- 
 quired to carry out these two works, at seven millions pounds sterling or $35, 
 000,000. The condition on which this grunt is to be njade is, "that the Provinces 
 shall make the loans they are to raise, a first charge upon the Provincial Reve- 
 nue, after any existing debts and payments, on account of the Civil Lists, settled 
 on Her Majesty, by laws, now in force." 
 
 The acceptance of the money on this condition is a matter still in question ; buj 
 whether the same is accepted or not, no delay need occur in pressing forward our 
 line to a point of connection at tlie boundary of New Brunswick. That in some 
 mode or other, most agreeable to themselves, the Provinces of New Brunswick ..ad 
 Nova Scotia will carry out the plan of a continuous lino of Railway, from the boun- 
 dary of Maine to the Eastern shore of Nova Scotia, no longer admits of a <}uestion. 
 Such portion of the Railway Despatches from the British Government as may be 
 required to a full understanding of the question, are hereafter given in the Ap- 
 pendix. It niay be proper in this connection to remark, that negotiations are on 
 foot, withii view to obtain further assistance from the British Government, in aid 
 of Railways in Canada, by securing the Imperial guarantee, or an advance from 
 the Iniperiui Tresury, of the money required to constrjct the Grand Trunk Line 
 of Canada, from Montreal to Sandwich, opposite Detroit, in addition to the amount 
 already otfered. From Sandwich to Halifax the distance is equal to 1400 miles, 
 which distance, with the European & North American Railway across New- 
 Brunswick, would require an advance from the Imperial Treasury of over fiO,- 
 000,000 of dollars. 
 
 Assuming the early completion of that portion of the European 6l North 
 American Railway which belongs to New IJrunswick and Nova Scotia, the inquiry 
 arisesj can that portion of the line which is situated in the United States be 
 constructed ? 
 
 From the eastern terminus of the lines extending from New York to the Ken- 
 nebec River at Wuterville to the line of New Brunswick, at Calais, the distance 
 is 151 miles. To extend this line as far as Bangor, rerpiires the absorption of 
 all the means of the people of Maine, west of the Penobscot River, whicii can 
 
be made available to such an enterprize. Still we regard that portion of the work 
 as coming within the ability of the people of Maine to accomplish, and our 
 exertions are directed to the task of obtaining the means for extending this line 
 from Bangor to the Boundary of New Brunswick. The amount required to fin- 
 ish and complete thii 96 miles is entirely beyond the ability of the people of 
 Maine, east of Penobscot River to supply. 
 
 There ate some d'sadvantages in refereni^e to the construction of this portion 
 of the line, from the fact that some 60 miles of the distance is a wilderness, and 
 though favorable for the construction of a road, and full of valuable forests of 
 timber and abundant water power, which will furnish a large amount of business 
 to a railway when built, cannot contribute any considerable amount towards its 
 construction. Mr. Morton estimates that the entire line from Bangor to Calais 
 can be built and equipped as a first clasi i'oad for about $28,000 per mile, or 
 something over 2,500,000. 
 
 Without enlarging upon the question of the practicability and advantages of 
 the European & North American Railway, we refer parties seeking information 
 to the elaborate Report of Mr. Morton. But to give in the briefest terms a sum- 
 mary, showing the extent of the proposed line, the feasibility of its construction 
 in the favorable features of the country over which it is to pass, and its remuner- 
 ative character when completed, we subjoin the following extracts from the Re- 
 port of Mr. Morton :— 
 
 "The general resiiUs of the surveys show: 
 
 1st. That a highly feaaihle route can be obtained between the city of Bangor and the city 
 of St. John, upon which the distance will not exceed 168.5 miles, with a strong probability 
 of its being reduced on a final location to IGO or 165 miles. 
 
 2d. That the greatest elevation above tide, to be crossed, will not probably exceed 350 
 feet, which is within the limits of Maine, and that the maximum grade will not exceed 50 
 feet per mile, and may probably be reduced to 40 or 45 feet per mile. 
 
 3d. That fheie will be very little if any abrupt curvature, no points requiring excessive 
 expenditure, and tlie cost per mile will fall below that of the average of the New England 
 rof.ds." (I'age37.) 
 
 "With this we are enabled to make up the length of that portion of the European and 
 North AmericMi Railway, within the limits of New Brunswick, 
 
 From the 'Joun.liiry line of thu t'nited States at Calais to the City of .St. John, 73 miles. 
 
 From the City of St. John to the Boundary line of Nova Scolia, near Bay 
 
 Verte, 126 miles. 
 
 CO 
 
 of 
 
 Total, 199 miles. 
 
 The length of road to be built in New Brunswick will not probably, at most, exceed 200 
 niileM, and there m8 strong (,'rouuda to believe that It may be reduced to M5 miles.'' (P. 15.^ 
 "The total U'Ugth of line in Nova Scotia is 121 miles, of which distance the road for 
 6fi miles will be level, or of grades not exceeding 20 feet jier mile. 
 44 n\llei will have grades of from 20 to 40 feet per mile. 
 10 miles will have (.rades of 57 feet per mile. 
 4 miles will have ijrades of 66 feet per mile. 
 From the above, it will be observed that for one half of the whole distance in Nova Sco- 
 tia, the road will be either level or have iueliniitions under ;!0 feet per mile, and nearly I- .I 
 per cent of the whole distiti.ve is less th in 10 feet per mile." (Page 50.) 
 
 
ipi^imii^iuii iujii>!iimi. 
 
 6 
 
 **Tlie following lummary shows the Ipngth of road to be built in the State of Maine, in 
 New Brunswick and in Nova Scotia. 
 
 Maine, (omitting fractions) 96 miles. 
 
 New Brunswick 200 miles. 
 
 Nova Srotia 124 miles. 
 
 Giving 420 miles 
 
 as the total length of the European and North American Railway. 
 
 From the surveys made of the various portions, I can state with much confidence that, 
 of the 420 miles of railway, there will be over 350 miles upon which the grades ^^ill not 
 exceed 30 feet per mile, and for over lOO miles of this latter distance, the road will be 
 level. The maximum grade, with the exception of one point, will probably not exceed 50 
 feet per mile, w.ih comparatively a short distance of this inclination. 
 
 The portion of the line where the grades exceed this, is confined to a distance of about 
 12 miles, in crossing the Cobequid Hills in Vove Scotia. These inclinations probably 
 will not rise higher than from 50 to 60 feet per mile, and of the latter gradient there need 
 not be more than five or six miles. 
 
 The greatest elevation passed over in the 420 miles is also at the Cobequid Hills, which 
 is 600 feet; the greatest in New Brunswick probably will not exceed 250 feet, and that in 
 Mame 300 feet above the ocean. 
 
 It is a fact worthy of n ;tice, that this great work throughout its whole extent of ov» 
 400 miles, traversing a country, the must prominent characteristics of which are its numer- 
 ous la' ge rivers, lakes and inlets, that at no point is it interrupted by ferries, nor are the 
 difilculties encountered or expenditures required in the construction of bridges and other 
 works at all corresponding with the magnitude of the rivers to be crossed, and the obj<icts 
 to be attained. 
 
 This peculiarity, together with the great extent of line which may be constructed at u 
 low rate, will lend to reduce the average cost of the whole work to a sum considerable 
 below most of the great lines of the United States." (Page 51.) 
 
 "Bringing the various items of business togpthej, as hereinbefore set forth, we have the 
 following estimate of the probable annual receipts of the proposed railway. — 
 1,073,000 inhabitants, estimated to piiy the rnilway one half the amount 
 shown in the preceding table or $1,50 for each inhabitant, $1,609,500 
 
 35 steamer passenger:^ each way over the railway at 2 1-2 cents per mile, or 
 $10,50 eacli, .9,320 
 
 Transportation of mails $300 per mile per annnm 126,600 
 
 Total annual estimated receipts 
 
 Deduct 50 per cent for expenses of operating the road 
 
 $1,964,820 
 982,410 
 
 Estimated net receipts $982,410 
 
 Which is over 7 3-4 per cent on $12,600,000, the estimated cost of the railway.", (p, 89.) 
 Tiui Uuilway from Bangor to Oldtovvn, 11 iiiilea at one end, and from Calais 
 to Barii ,, C miles at the other, making a total of 17 miles of road built, may 
 perhaps be brought into use as portions uf the line, reducing the actual distance 
 required to Se constructed to less than 80 miles, and icducing the cost to a trifle 
 only above 2,000,000 of dollars. 
 
 Our plan i.s to raise one million of dollars, the amount required by law to ena- 
 ble us to organize the company — secure the right of way, conmience operations 
 at each end, and lay the foundation for a credit which will secure the balance. 
 If this sum can be raised, the work can be forthwith commenced, and success- 
 fully carried through. 
 
 «■' 
 
 ^^'^'^fl^^^^^P^T^^WqP'' flP>T^W^W|^TOB^Wi^*^W ^iPWp 
 
 .^■m'vj'' 
 
The Commonwealth of Massachusetts has expressed her interest iii the scheme, 
 and the fact of her owning nearly 2,000,000 of acres of land in Maine, justifies 
 the expectation that she will in some form supply a portion of the means. Our 
 application to the Legislature of Massachusetts, during its recen* session, received 
 very respectful attention, and was by consent of its friends, referred to the next 
 Legislature, — the Legislature of New Brunswick, did not act upon Railway 
 matters in season to enable us to make our application to Massachusetts till a 
 late period of the session. There was a general expression of confidence in the 
 scheme, among the public men and the press of the Commonwealth of Massa- 
 chusetts. 
 
 In Maine there is a constitutional inhibition against the loaning of the credit of 
 the State, or the contracting of a State debt ; but it is not expecting too much of 
 Maine, to say that a portion of the proceeds of its public lands might be advan- 
 tageously applied to this object, if the same can be done consistently with the 
 public interests, and thereby enhance the value of the Public Lands of Maine. 
 
 At all events, the undersigned express the confident opinion that the subscription 
 of one million of dollars of available stock at the present time, will secure the 
 early and complete success of this great enterprise. 
 
 We do not appeal to the people of Maine only, for it would be presumptuous in 
 us to expect to realize this amount, under the present circumstances, from them 
 alone ; but we appeal with entire confidence to all the good people of New Eng- 
 land, the Canadas, and to the Commercial interests of the whole Atlantic Sea- 
 board, and to the people of the United States generally. 
 
 A small amount from each one, who has expressed or felt a general good will 
 to the enterprize, will secure at once the required sum. 
 
 By the terms of the Charter in Maine, an exception not heretofore granted, 
 
 every stockholder is exempted from personal liability, beyond the paying up 
 
 of the instalments on the Stock, and the Charter, is not subject to amendment, 
 
 alteration or repeal by the Legislature. 
 
 Parties who may incline to aid this enterprise, residing at other places than 
 those in which books of subscription are opened, mav -ddress Mr. Poor at 
 Portland, Mr. Chandlei at Calais, or Mr. Ilamliu at Bango. , Maine, the Execu- 
 tive Committee of the Corporators, by whom the fullest information will be given 
 
 in regard to the enterprize. 
 
 JOHN B. BROWN, 
 JOHN ANDERSON, 
 GEORGE F. SHEPLEY, 
 HENRY CARTER, 
 THOMAS J. D. FULLER, 
 JOHN STICKNEY, 
 GEORGE M. CHASE, 
 GEORGE DOWNES, 
 NOAH SMITH, Jr., 
 ICHABOD R. CHADBOURNE, 
 BION BRADBURY, 
 JAMES P. WHEELER, 
 JAMES S. PIKE, 
 STEPHEN R. HANSCOM, 
 JOHN N. M. BREWER, 
 STEPHEN EMERSON, 
 
 Portland, July, 1851. 
 
 JOHN A. POOR, 
 ANSON G. CHANDLER, 
 ELIJAH L. HAMLIN, 
 MOSES L. APPLETON, 
 SAMUEL P. STRICKLAND, 
 LEONARD MARCH, 
 WYMAN B. S. MOOR, 
 DANIEL W. BRADLEY, 
 GEORGE W. PICKERING, 
 WALDO T. PIERCE, 
 RUFUS DWINEL, 
 JOSIAH S. LITTLE, 
 JAMES B. CAHOON, 
 CHARLES a. CLAPP, 
 F. O. J. SMITH. 
 
ipi),ii iiiun.aipipgiBwr'"-"'^ 
 
 mnfiil^ piw«np«" 
 
 ^•ifll|P|S«rsTra.#r,i^*?' pii^»f» 8 W ffMi »%r' 
 
' 
 
 mm^ 
 
 RAILWAY DESPATCHES. 
 
 SIR JOHN HARVEY TO EARL GREY. 
 
 Government House, August 29th, 1850 
 My Lord — 
 
 Your Lordship is aware, from the correspondence which nas passed between 
 the North American Governments and the Colonial Office, ^that for sometime past 
 a deep interest has been felt by the people of these Provinces in the promotion of 
 Railways. 
 
 2. So long as hopes were entertained that her Majesty's Government would 
 aid in the construction of the line between Halifax and Quebec, public attention 
 was concentrated upon that. As the prospects of its accomplishment became less 
 definite and assured, other projects either local or inter-colonial were discussed, 
 and Resolutions or Laws, having relation to these were passed during the recent 
 Sessione of most of the Colonial Logislatures. 
 
 8. The construction of the Electric Telegraph which now not only connects 
 Halifax with the chief towns of New Brunswick and the State of Maine, but 
 forms the most important link in the chain of communication between the old 
 world and the new, and the success which has attended that appropriation of the 
 public funds have attracted public attention to the practicability and importance 
 of placing a Rail Road beside the Telegraph. 
 
 4. This would give to Nova Scotia and New Brunswick a noble highway 
 through their Territory — connect them by Railway wuh all the principal Cities 
 of this Continent, and secure to the Port selected for the Eastern terminus, com- 
 mercial advantages, with which no seaport within the Republic could ever suc- 
 cessfully compete. 
 
 5. While these views were pressing upon the minds of the leading men in 
 the Provinces, the subject was taken up in the State of Maine, and a Convention, 
 to which the Colonists were invited, was called to meet at Portland on the Slst 
 of July. 
 
 6. The proceedings of that Convention I have now the honor to enclose (No. 
 1,) together with the reports made by the Delegates who attended from Nova 
 Scotia, to the communities or committees by which they were severally appoint- 
 ed, (No. 2.) 
 
 7. On the return of those Delegates, the piblic mind i- Nova Scotia became 
 very highly excited, particularly in Halifr", ^..d those Counties through which 
 the Road would pass. 
 
 8. Under these circumstances, my Government were required to deal with 
 the question thus raised, and to decide whether they would stand aloof from this 
 
 3 
 
10 
 
 movement, and allow a great Highway, which in peace wonld be a thoroughfare 
 of Nations, and in war might be of vast importance, to be constructed and con- 
 trolled by Foreign Capitalists, or should at once grusp the enterprize, and by the 
 aid of the public funds and credit, discharge, towards the Country, the highest 
 and most legitimate functions of a vigorous Executive. The latter determination 
 was arrived ut, and the opportunity was afforded to declare their policy, at a 
 public meeting held at the Metropolis on the 24th Instant, the proceedings of 
 wliich will be found reported in the papers transmitted by this mail. 
 
 9. This movement, which meets my entire approbation, has been received 
 with great satisfaction by all parties. The address of the City Council, with my 
 answer, (No. 3,) I have the honor to enclose. 
 
 10. The details of this measure have yet to be adjusted, and it may be neces- 
 sary to send to England some Members of my Government to communicate more 
 at large with Your Lordship in reference to them. 
 
 11. In the meantime, I should be glad to be informed, whether, upon such 
 pledges as have been regarded as satisfactory in other Colonies, being given, Her 
 Majesty's Government would be disposed to aid Nova Scotia with its guarantee 
 of such funds as she may find it necessary to borrow in England, hi order to con- 
 struct this Road. These would not exceed £800,000 Sterling, and would 
 probably be secured, not only on the general Revenues of the Province, hut 
 upon the road itself. 
 
 12. Such a guarantee would enable the Province to enter the market on the 
 best terms, and effect a large saving in the accomplishment of the work. 
 
 13. The Revenue of Nova Scotia is about £80,000 Sterling — her debt but 
 £87,802 Sterling, of which £47,892 is represented by Province Paper, on which 
 no interest is paid, — The permanent and indispensable charges are about £40,- 
 000 Sterling, leaving about £40,000 of Surplus Revenue available for public im- 
 provements. The Revenue has increased £4,400 Sterling within the present 
 year — the increase on the whole will be probably £10,000 Sterling. 
 
 14. If therefore, as I anticipate, the Legislature sustains the policy of the 
 Government, they will have the means at their disposal to pay the interest 
 promptly on any loan they may reqnire to effect. 
 
 15. I shall be very much gratified by an early communication of the decision 
 of Her Majesty 's^Government on this point, and of the terms and nature of the 
 securities required. 
 
 I have, &c., 
 (Signed) J. HARVEY. 
 
 The Right Honorable Earl Grey, &c. &c. &c. 
 
 EARL GREY TO SIR JOHN HARVEY. 
 
 Downing Street, 2l8t Sept., 1850. 
 Sir — In acknowledging your Despatch No. 190, of the 29th ultimo, on the 
 subject of the projected line of Railway from Halifax to Portland in Maine, I 
 liave to express my entire approbation of the degree of support and encourage- 
 
II 
 
 uieiit given by yourself and the Provincial Administration to this important un- 
 dertaking. 
 
 2. I regard the Work as one calculated to be of the highest service to Nova 
 Scotia and New Brunswick, and instead of considering it as likely to endanger 
 by competition the still more important scheiae which has been proposed for con- 
 necting Halifax and Quebec, I believe that it is likely to prepare the way for the 
 execution of the latter, and that it will contribute to the same end, namely, that 
 of rendering Halifax the great Port of Communication between the two Conti- 
 nents of Europe and America. 
 
 8. But while I am most anxious to promote the success of this enterprise, I 
 regret that the same reasons which have hitherto prevented Her Majesty's Gov- 
 enmient from recommending to Parliament any measure for aifording pecuniarj 
 assistance towards the construction of the Quebec Railway, will probably stand 
 equally in the way of their advisuig the guarantee of a loan for the scheme now 
 in contemplation. I have, &c. 
 
 (Signed) GREY. 
 
 Lieut. Governor Sir John Hahvey, &c. &c. 
 
 SIR JOHN HAiiVEY TO EARL GREY. 
 
 Government House, Halifax, ) 
 October 25th, 1850. 5 
 My Lord — 
 
 The members of my Government, upon a full consideration of the contents 
 of your Lordship's communication of the 21st ultimo, having deemed it to con- 
 sist with what they owe to public feeling (which has been very enequivocally 
 expressed thrr ghout the province,) as well as to their own views to Her Majes- 
 ty's Government, in as plain and forcible a manner as may be consistent with 
 the deep respect with which all decisions by your Lordship have been and will 
 at all times be received by them ; they have accordingly resolved on delegating 
 one of their body to proceed to England, in the hope that your Lordship will ad- 
 mit their Delegate to an audience, und will afford him every facility in bringing 
 the views which he is charged to advocate, under the consideration of Her Ma- 
 jesty's Government which to your Lordship may seem fit. 
 
 Permit me, therefore, to present to your Lordship the Honorable Joseph Howe, 
 a member of my Council, and a gentleman well qualified, in my judgment to 
 afford to your Lordship and to Her Majesty's Government the fullest information 
 and the most correct views of the state of public feeling in Nova Scotia. 
 
 Tiie deep importance attached tinoughout the province to the subject of Mr. 
 Howe's mission, will, I doubt not, plead my excuse from any deviation from ex- 
 isting regulations which may attend this mode of communication with your Lord- 
 ship; and I do not doubt that on this, as on some other points, Mr. Howe's local 
 information, experience, and sound judgment, will be found useful and acceptable. 
 
 It is Mr. Howe's present intention (should circumstances not induce him to 
 alter it) to return to Nova Scotia before the meeting of the Legislature, in the 
 hope of enabling me to convey to that body, at their meeting, some definite in- 
 
Id 
 
 formation at to the prospect of being able to obtain the neco^<iary funds from 
 London capitalists, either with or without the aid of Her Majesty's Government. 
 As the latter alternative, however, would involve the difference of from 16,OO0Z 
 to 20,000/. a year, in the amount of interest to be paid by the colony, I feel sat- 
 isfied that your Lordship will be disposed to promote any well-considered meas- 
 ar« by which so large a saving may be effected, without risk to the Imperial. 
 Government. I have &c. 
 
 (Signed) J. HARVEY. 
 
 The Right Hon. Earl Grey. 
 
 HON. JOSEPH HOWE TO EARL GREY. 
 
 5, Sloane Street, Nov. 25th, 1850. 
 My Lord, — 
 
 Having, at the interview with which I was honored on the 18th instant, re- 
 ceived your Lordship's instructions to place before you, in oliicial form, the argu- 
 ments on which, as Representative from the Province of Nova Scotia, I base my 
 application for the guarantee of the Imperial Government, in aid of the public 
 works projected by the Government of that colony, I beg leave, with all respect, 
 to call your Lordship's attention to the following statement and observations. 
 
 Regarding the period as rapidly approaching, if it has not actually arrived, 
 when railroads must be laid down through her most advanced and prosperous 
 counties, east and west. Nova Scotia is called to decide, with the experience of 
 the world before her, upon the measures to be adopted to secure for her people, 
 at the least expense, with the slightest risk, and in the shoi-test time, these great 
 modern improvements. Her people have been accustomed to free roads; no toll 
 bars exist in the Province. Her roads, made at the public expense, belong to the 
 country, and are emphatically the Queen's highways. In the few instances 
 where she has deviated from this policy, in respect to bridges or ferries, the cost 
 and the inconvaniences of monopoly have tested its value. 
 
 Railways are highroads of an improved construction. They are as essential 
 to our advancement and prosperity now, as common roads were in the olden 
 time. The service which the Government has performed for a hundred years in 
 respect to the common roads, which probably measure 8,500 miles, we believe 
 it to be capable of performing in regard to railways. The administration is con- 
 tent to assume the responsibility, and the people, including an immense majority 
 of all political parties, are willing and anxious that they should. 
 
 If our Government had means sufficient to build railroads, and carry the people 
 free, we believe that this would.be sound policy. If tolls must be charged, we 
 know that these will be more moderate and fair, if Government regulate them 
 by the cost of construction and management, than if monopolies are created, and 
 speculators regulate the tolls only with reference to the dividends. If there bo 
 risk or loss, we are content to bear it. If the traffic of the country yields a 
 profit, we would apply the surplus revenue to the opening cf new lines, or to the 
 reduction of the cost of 'transportation. 
 
13 
 
 Were a railroad to be constructed in Nova Scotia, for the accommodation of in- 
 ternal traffic alone, we should perhaps decide to lay a line through our western 
 conntiea first. 
 
 An inter-colonial railroad, in which the adjoining colonies feel an interest, of- 
 fers more general advantages than a n> ;fe local line. Hence the interest felt in 
 the Quebec Railroad, which would have drawn to Halifax much trade from the 
 St. Lawrence, and opened up to colonization large tracts of wilderness lands, 
 both in Canada and New Brunswick. This line requiring 5,000,000^. sterling 
 to complete it, the united resources of the three provinces are inadequate to the 
 work, without very liberal aid from the British Government; that aid having 
 been refused, the project has been for the present reluctantly abandoned. 
 
 A railroad to Portland offers many advantages which one to Quebec does not. 
 It will cost only about half as much. It must run, nearly all the way, through 
 a comparatively improved country. It would connect Halifax with St. John 
 (and by the river, with Fredericton) and the larger towns of New Brunswick; 
 giving to all these, with the villages and agricultural settlements lying between 
 them, most desirable facilities for internal traffic. 
 
 The Portland Railroad would secure to Nova Scotia the advantages which na- 
 ture designed her to enjoy: connecting her with all the lines running through the 
 American Continent and making Halifax a common terminus for them all. No 
 American steamer, which did not touch at Halifax, could thence for^vard com- 
 pete, in priority of intelligence, and the rapid transit of passengers, with those 
 which did. 
 
 Miles. 
 
 From Halifax to Galway is - - - - 2,130 
 
 Dublin to Holyhead > « _ - gg 
 
 
 
 2,193 
 
 Holyhead to London _ - - _ 
 
 263 
 
 
 Dublin to the S. W. Coast of Ireland 
 
 120 
 
 
 Halifax to St. John's - - - - 
 
 266 
 
 
 St. John's to Waterville - - . 
 
 200 
 
 
 Waterville to New York - » - 
 
 410 
 
 
 
 
 1,259 
 
 3,452 
 
 making the whole land and sea distance 159 miles more than the present sea 
 passage. But the sea voyage, by the one route, would be 1107 miles shorter than 
 by the other. 
 
 To run these 1107 miles by steamboat, at 12 miles an hour, would require 92 
 hours; to run them by rail, at 30 miles an hour, would require but 36 hours. 
 This route would therefore save, in the communication between Europe and 
 America, .56 hours to every individual, in all time to come, who passed between 
 the two continents; the sea-risks to life and property being diminished by one 
 third of the whole. 
 
14 
 
 The States lying east of New York will be benefitted in n ratio corresponding 
 with their relative distances from that city. A merchant travelling from London 
 to Portland, not only wastes 36 hours in going to New York, but must turn back 
 and travel 400 miles on the route to Halifax besides, which will require 13 hourn 
 more. 
 
 It is clear then, that when the line across Ireland is completed, and that from 
 Halifax to Waterville (from thence the lines arc continuous all over the United 
 States,) this route may defy competition. No business man will travel by a route 
 which leaver* him 56 or 60 hours behind time, which gives to others dealing in 
 the same articles, and entering the same markecs with the same information, 
 such very decided advantages. 
 
 No person traveling for pleasure will waste 56 hours, at some peril, on the 
 ocean, where there is nothing to see, who can, in perfect security, run ovei the 
 same distance by land, with a cultivated country and a succession of towns and 
 villages to relieve the eye. 
 
 The Americans assembled at the Portland Convention pledged themselves to 
 make this line through the territory of Maine. Capitalists and contractors in 
 that country profess their readiness to complete the whole thiough the British 
 provinces, provided acts of incorporation are given to them with liberal grants of 
 land and money in addition, ***** 
 
 The idea of a great inter-colonial railroad to unite the Dritish American Prov- 
 inces, originated with Lord Durham. In the confident belief that this work waa 
 to be regarded as one of national importance. Nova Scotia paid towards the sur- 
 vey of the line nearly j£SOOO. The anticipation that the completion of this 
 great work, in connexion with a scheme of colonization, would redress many of 
 the evils and inequalities under which the provinces labor, for some time buoyed 
 up the spirits of the people, and the disappointment is keenly felt in proportion as 
 hopes were sanguine. If then the British Government has abandoned the policy 
 to which, perhaps too hastily, we assumed that it was pledged; if the empire 
 will make no roads through its territoriess (and the legions of Britain might be 
 worse employed ;) surely it cannot be less than madness to permit foreigners to 
 make them ; and it must be sound statemanship to aid the Colonial Governments, 
 whenever they will assume the responsibility of constructing and controlling the 
 great highways, no less necessary for internal improvement than for national de- 
 fence. 
 
 If the road to Nova Scotia is commenced, the spirits of the colonists will re- 
 vive. If extended to Portland, it will "prepare the way," to employ your 
 Lordship's own language, '* for the execution of the line to Quebec, and it will 
 contribute to the same end, namely, that of rendering Halifax the great port of 
 communication between the two continents of Europe and America." 
 
 I have said that the railroad across Nova Scotia will be the common trunk for 
 the Quebec and Portland lines, whenever these are made. The former cannot 
 be constructed by the colonists, unless the British Government make liberal con- 
 tributions. The line to Portland will be made either with British or American 
 capital. If by the latter, 'then, my Lord, it is worth while to inquire in whtit 
 
15 
 
 poiition the British Government will stand, should they ever attempt to realize 
 Lord Durham's magnificent conception, and find that tho first link in the great 
 chain of inter-colonial communication is already in possession of their enemies ? 
 The Americans at this moment are putting forth their utmost skill to compete 
 with our ocean steamers. When the Railroad is constructed across Nova Scotia 
 and New Brunswick, their boats must start from and return to Halifax, or the 
 competition will be at an end. A rivalry, honorable to both nations, may still 
 continue; but, however the odds ma) turn, at least we shall have the satisfaction 
 to reflect, that the inevitable result of that competition is to build up a noble 
 maritime city within her Majesty's dominions. 
 
 The British Government now pays, for the conveyance of the North American 
 Mails between England and New York, £145,000 sterling per annum. By this 
 arrangement, 1107 miles of sea are traversed more than are necessary. The 
 correspondence of all Europe with all America is delayed fifly-six hours beyond 
 the time which will he actually required for its conveyance, when the railroads 
 across Ireland and Nova Scotia are completed. 
 
 One set of these British mail-steamers pass by our own provinces, and, to the 
 mortification of their inhabitants, carry their letters, and even the public des- 
 patches of their Government, to the United States, to be sent back 800 miles, if 
 they come by land; at least 500, if sent by sea. 
 
 While the nearest land to Europe is British territory, — while a harbor, almost 
 matchless for security aud capacity, invites Englishmen to build up within the 
 empire a fitting rival to the great commercial cities which are rising beyond it, 
 your Lordship will readily comprehend the depth an earnestness of our impa- 
 tience to be rescued from a position which wounds our pride as British subjects, 
 and is calculated rapidly to generate the belief, that the commanding position of 
 our country is not understood, or our interests but lightly valued. * * 
 
 I have &c. 
 (Signetl) JOSEPH HOWE. 
 
 The Right Hon. Earl Grey. 
 
 at 
 
 HON. JOSEPH HOWE TO EARL GREY. 
 
 5 Sloane Street, Jan. 16, 1851. 
 My Lord, — 
 
 In the letter which I had the honor to address to your Lordship on the 25th 
 November, I argued the case of Nova Scotia on its own merits, and ventured to 
 claim the guarantee of the Imperial Government in aid of her public works, 
 upon grounds which affected her material interests, her pride, her enterprize, and 
 steadfast loyalty to the British Crown. 
 
 The immediate consideration of that letter I did not desire, because, while 
 preparing it, I was quite conscious that if the single issue raised, were to be de- 
 rided by Her Majesty's Government upon the merits or claims of Nova Scotia 
 alone, the Cabinet would have a very inadequate statement of the reasons which 
 
16 
 
 ooglit to tocure, and tho province I roprofent but a slender chance of obtaining, a 
 favorable decii^ion. 
 
 The interest which the mother-country han in the elevation of North America, 
 in the increase of her population, tho development of her resources, the occupa- 
 tion of her wild lands, the extension of her cotnmerdo, and of her means of easy 
 internal and external communication, I believe too far transcend the interest, 
 great us that is, which the several provinces feel in these very important questions. 
 
 Should the aid of the parent State bo refused, the Northern Provinces would 
 still, but with lesH rapidity, complete their public works. Though not an emi- 
 grant landed on their shores, the population they have would live in plenty, and 
 double every twenty years. Should they change their political relations, the 
 worst that could beful them, would be association with their Anglo-Saxon neigh- 
 bors, or an independent position, moderately secure, and full of future promise. 
 
 299,498 emigrants left Great Britain and Ireland for America, in 1849. A very 
 great proportion of the Iriith had a journey and a voyage to~niake to some Eng- 
 lish seaport, before they embarked upon the Atlantic. But pass that over, and 
 multiplying the number of emigrants by thirty, and we have the number of days 
 that would have been saved to these [)Oor people, if they had been curried oat by 
 steam. It is clear that they wasted 8,984,940 days at sea, in, to them, the most 
 precious year of life, and the most valuuble part of that year, which, estimating 
 their labor at Is. n-day in the countries to which they were repairing, would 
 amount to £449,247. 
 
 The employment of ocean steam-ships for the poor would save all this, and it 
 would put an end to ship-fever, disease und death. The Government of England 
 expended in Canada and New Brunswick alone, in 1847, in nursing the sick and 
 burying the dead, £124,762 st'g. The ocean omnibus, whether established by 
 Government or by a private association, would save all this in future. Restric- 
 tive colonial laws would disappear ; and from the moment that there was a cer- 
 tainty that emigrants would arrive in health, however poor, the colonists would 
 prepare their lands and open their arms to receive them. 
 
 The saving of expense and time on our side of the Atlantic would also be im- 
 mense. These ships could run down the southern shores of the maritime prov- 
 inces, and land emigrants wherever they were reouived from Sydney to St. An- 
 drews; passing through the Gut of Cunso, they rould supply all the northern 
 coasts, including Prince Edward Island. They could go direct to the St. Law- 
 rence, landing the people wherever they were wanted, from Gaspe to Quebec. 
 
 Knowing exactly when to expc* these vessels, our people would send to En- 
 gland, Ireland, and Scotland for their friends, and be ready with their boats and 
 waggons to convey them off, without cost or delay, the mon;ent they arrived. 
 
 We should thus have a healthy, almost self-sustaining British emigration, to 
 the full extent of the exciting demand for labor, even if no public works were 
 commenced. 
 
 But much would soon be done, still without coating the British Government a 
 pound, to extend the labor market. The moment that the arrival of healthy em 
 
17 
 
 igront«, at convenient pointu, and early in the Beason, could he counted upon 
 with certainty, the Trovincial Govprimienta would lay otF and prepare their landa 
 for uttionient, advortiaing them in all the British and Irish sea ports. They 
 would empower th.) deputy surveyor,; in each county to act as emigrant agents, 
 and locate the poo|.lt«. They would cull upon the county magistracy to prepare, 
 at the autumn or winter seosiona, returnH, showing the number and description of 
 emigrants required by each county in the following Hpring, with the number of 
 boys and girls that they w ere prepared to take charge of and bind out as appren- 
 tices. 
 
 Proprietors of large unimproved tracts would soon, by similar exertion and 
 kindred agencies, prepare thent for occupation. 
 
 All this may bo done by the employment of steam-ships for the poor ; and they, 
 I am confident, might be drawn into the public service without any cost to the 
 country. If it be objected that to so employ thom would diminish the demand 
 for sailing-vessels, I answer no ; but, on the contrary, there would be an annu- 
 ally increasing demand for British and Colonial tonnage, to carry on the com- 
 merce and reciprocal exchanges that this health immigration would create. 
 
 But, my Lord, I am anxious to see these cheap steamers on another account : 
 that they may bring English, Irish and Scotchmen and their descendants, from 
 time to time, back to tiio land of their fathers, to tread the scenes which history 
 hallows, or revive the recollections of early life, to contemplate the modera 
 triump! J and glories of England, and contrast them even with those of the proud 
 Republic beside us. This ennobling pleasure cannot be indulged m now, but at 
 a cost which debars from its enjoyment the great body of the Queen's Colonial 
 subjects. 
 
 Reduce the passage to ten days, and the cost to .£5., and thousands would come 
 over here every summer, to return with their uuarts warmed towards their British 
 brethren, to teuch their children to understaud the policy of England, and to rev- 
 erence her institutions. 
 
 So far, my Lord, you will perceive that I have suggested nothing which would 
 involve Her Majesty's Government in heavy expense; on the contrary, I believe 
 that even the cost of emigrant steamers would be more than made up, either by 
 a reduction of e.\{)euse in the naval service, retrenchment of the cost of lazaret- 
 toes and quarantine, or by the relief which a healthy system of emigration would 
 at once give to some, if not all the branches of the public service which now cost 
 j£ 11,000,000, sterling. It would require but a slight calculation to show that the 
 planting of half a million of British subjects in the North Ani.'rxcan provinces, 
 where the duty on British manufactures ranges from 6 1-4 to ] 2 1-4 per cent. ; and 
 in the United States, where it ranges from 15 to 100 per cent., would amount to 
 more than the whole sum wanted to establish those steamers. * * ♦ 
 
 The tirst 130 miles of this communication Nova Scotia will make, and amply 
 secure the British Government from loss, should the advantage of its credit be 
 given. We will do more — we will prepare our lands, collect returns, appoint an 
 agent in each county, and repeal our taxes on emigrants; offering on the best 
 terms, a home to all who choose to come among us. If Her Majesty's Govern- 
 
18 
 
 meal have no objections to the employment of such portions of the troops as are 
 not required to do garrison-duty, wc will give them ' ir addition to their pay, 
 or land along the luie, to which in war their discipline would be a defense; thus 
 saving to the British Government the expense of bringing these veterans back to 
 England. 
 
 The ability of Nova Scotia to fulfil any obligations she may incur to the Im- 
 perial Government, may be estimated by reference to her past progress and pres- 
 ent fii.ancial condition. 
 
 Montgomery IMartui, in his late work, estimates the value of the province, in 
 moveable and immoveable property, at f 20,700,000. — Without counting wild 
 lands and property upon which labor has not been expended, we rate it at ;£15,- 
 000,000. This has been created in a century, by the industry of a few thousands 
 of emmigrants and loyalistSj, and their descendants. To the amount of shipping, 
 as evidence of a prosperous commerce, I have already referred. 
 
 Within the twenty years from 1826 to 1846, the population more than doubled, 
 the tonnage rising, in the last ten years of this period, from 96^996 to 141,043 tons. 
 
 The exports rose iu the 'wenty years from £267,277 to £831,071. 
 
 The revenue of Nova SccUa is chiefly raised from imports, the royalty on the 
 mines, and the sale of Crown iunds. There is no property-tax, or assessed ♦'«x- 
 es, except poor and county rates raised by local assessments. 
 
 Her turilF is the lowest in North Amerira. Her ad valorem duty on British 
 goods is 6 1-4 per cent., that of Canada 1 2 1-2. 
 
 All the liabilities of the province amounted on the 31st December, 1849, to 
 j£ 105,643 13s. Id. The Receiver-General writes me that there has been an in- 
 crease of the revenue during the past year, of 15,000/., which will reduce the 
 liabilities to Pv>,643/. ISs. Id. No part of this debt is due out of the province. — 
 Province notes, which circulate and are sustained by the demand for them to pay 
 duties, represent 59,864/. of the whole, which bears no interest Of the balance, 
 40,000/. is due to depositors in the S-ivings Bank, who receive 4 per cent. The 
 holders of Stock certificates, covering the remainder, receive 5 per cent. 
 
 The public property hold by the Government in the city of Halifax alone, 
 would pay the whole I'^bt, which could be extinguished by applying the surplus 
 revenue to that object for two years. 
 
 The income from all sources fluctuates between 90,000/. and 110,000/. The 
 permanent charges on this revenue secured to Her Maj»'sty by the Civil List 
 Bill, isre 7,500/. sterling. The balance is expended in maintaining ether branch- 
 es of the Civil Government, in opening and repairing roadp, and promoting edu- 
 cation. 
 
 We should make the interes>. of the loan we now rijquire u first chaige on this 
 surplus, in the event of the railro.id nel yielding toils sullicient, which, j'ulging 
 Viy the experience of our neighbors, we do not apprehend. 
 
 This surplus must steadily increase, b'-'cauot;, while population ."'id revenue 
 will probably double within the next twenty years, as it has done, uimost with- 
 out emigration or railroads, during the past twenty, the exp 'nses of the L'ivil 
 Government will l)e but very slightly augmenteiL 
 
 §m '^ * mmw'm<» ^ 
 

 19 
 
 The revenue could be, and if necessary would be, promptly increased, by 
 raiding the ad valorem duty, re-adjusting specific duties, or if even that were 
 necessary to sustain our credit with the mother country, by a resort to a legacy, 
 income, or property tax. 
 
 The Cjverninent of Nova Scotia (exclusive of lands in Cape Breton) still re- 
 tains 3,982,388 acres of ungranted Crown lands. These, if required, could also 
 be pledged, or the net amount of sales of lands along the line could be paid over 
 from time to time in liquidation of the loan. 
 
 The whole amount required is 800,000/. The city of Halifax being pledged 
 to the Provincial Government to pay the interest on 100,000/., the whole amount 
 that would therefore be chargeable on all sources of provincial revenue, the tolls 
 on the railroad included, would be 24,500/. 
 
 Although having no authority to speak for the other Colonies, I may observe, 
 the province of New Brunswick, which lies between Nova Scotia and Canada, 
 has in addition to her ordinary sources of revenue 11,000,000 of acres of un- 
 granted lands. She might pledge to her Majesty's ijlovernment the proceeds of 
 as m^r.y millions of acres of these lands, along the lines to be opened, as might 
 be necessary, in addition to the pledge of her public funds to secure this country 
 from loss. The troops might be employed, and settled in this province also. — 
 The lands pledged could be sold to emigrants, — the British mails and soldiers 
 would be transpoi ted at fair prices^ and the amounts might be carried to the 
 credit of the loans. I believe that New Brunswick could, if moderately aidt:d, 
 ultimately make her great lines, absorb and provide farms for millions of en - 
 grants— increasing the home market for British goods by the annual amount o» 
 their consumption — and; in a very few years, pay any loan she may require to 
 contract, without costing England a farthing. 
 
 The resources of Canada are well known to your Lordship. 
 Her interest in these great works cannot be exaggerated, and must be greatly 
 enhanced by the approaching removal of the seat of Government to Quebec. — 
 They would bring her productions to the seaboard at all seasons of the year; 
 connect her by lines of communication with all the c'hcr provinces, and with the 
 mother count y ; preparing the way for a great industrial, if not a political imion, 
 of which the citadel of Quebec would ultimately form the centre. That her 
 Government would second any policy by which this might be accomplished, there 
 is no reason to doubt. * ♦ # 
 
 I have, &c., 
 (Signed) JOSEPH HOWE. 
 
 The Right Hon. Earl Grey. 
 
 HON. JOSEPH HOWE TO EARL GREY. 
 
 5, Sloane Street, 13th February, 1831. 
 My Lord — 
 
 Advertin:^ to the »oint raised by Your Lordship yesterday, I hasten to furnish 
 on explanation, which I Uust may be satisfactory. 
 
20 
 
 Assuming that Nova Scotia makes, with the guarantee of the British Govern' 
 inent, a Railroad across her Territory, and that an extension throoigh the other 
 Provinces for national or inter colonial objects becomes immediately or remotel y 
 desirable, either by the Governments of Canada or New Brunswick, by the 
 British Government, or by any Colonial or British Company under their patron- 
 age, the question is, would Nova Scotia claim to retain the revenues of that 
 which might be the most profitable part of a long line ? 
 
 Nova Scotia, whatever her geographical advantages may be, desires to make 
 them subservient to common. Imperial and Provincial interests, and will be pre- 
 pared to share the revenues of her Railroad, as she does those of her Telegraph, 
 upon equitable principles, with the other Provinces, or with Companies by which 
 they may bo represented. 
 
 The principle apjilied to the Telegraph is very simple, and works satisfactorily 
 to all jStates and Companies extendhig between Halifax and New York. The 
 tolls for messages which originate and end within Nova Scotia, New Brunswick, 
 or Maine, for instance, are retained by those who send theiii, but the tolls for 
 through messages, which pass over a common line, are shared by mileage, and 
 the common account is checked and the balances paid over every week. 
 
 I think I may go even further and say, that should our portion of the line pay, 
 from excess of local traffic, and that through New Brunswick be less profitable, 
 Nova Scotia would not only lend to her Sister Province any excess which might 
 accrue, b'u would take her debenturep up and give her the aid of her public rev- 
 p^'ues rather than that even a temporary demand should be made upon the Im- 
 perial Treasury. I have die. 
 
 (Signed) JOSEPH HOWE. 
 
 The Right Hon. Earl Grey, &c. &c. &c. 
 
 
 B. HAWES, ESQ., TO HON. JOSEPH HOWE. 
 
 Downing Street, March 10, 1831. 
 Sir, — I am directed by Earl Grey to inform you, that he is at length enabled 
 to communicate to you the decision of her Majesty's Government on the appli- 
 cation for assistance towards the construction of the projected' railway through 
 Nova Scotia, contained in your letters oi the 25th of November and 16th of 
 
 January last. 
 
 You are already aware, from the repeated conversations which you have had 
 with Lord Grey, of the strong sense entertained by his Lordship and colleagues, 
 of the extreme importance, not only to the colonics dh-ectly interested, but to the 
 empire at large, of providing for the construction of a railway by which a line of 
 communication may be established on British territory between the Provinces of 
 Nova Scotia, New Brunswick, and Canada, and that various plans which have 
 been suggested for the accomplishment of this object have undergone the most 
 attentive consideration. 
 
 It appears from Sir John Harvey's Dispatch of August 29th, 1850, as well as 
 from your letters and the verbal commuuicationa you have made to Lord Grey, 
 
 
 iiiMittyiiiiii 
 
21 
 
 that the Provincial Govornraent of Nova Scotia, fully relying on the concurrence 
 of the Legislature, is desirous of undertaking the construction of that part of the 
 projected line which would pass through that province, and proposes to obtain for 
 that purpose a loan of JE800,000, which is the estimated expense of the work. 
 The assistance which Lord Groy understands you to apply for on behalf of the 
 province, is, that the payment of the interest of a loan to this amount should be 
 guaranteed by the Imperial Parliament, the effect of which would be that the 
 money might be raised on terms much more favorable than would be otherwise 
 required by the lenders. 
 
 I am directed to inform you that Her Majesty's Government are prepared to 
 recommend to Parliament that this guarantee should be granted, or that the 
 money required should be adv inced from the British Treasury, on the conditions 
 which I will now proceed to state. 
 
 In the first place, as Iler Majesty's Government are of opinion that they 
 would not he justified in asking Parliament to allow the credit of this country to 
 be pledged for any object not of great importance to the British Empire as a 
 whole (and they do not consider that the projected Railway would answer this 
 description, unless it should establish a line of communication between the three 
 British Provinces) it must be distinctly understood that the work is not to be 
 commenced, nor is any part of the loan, for the interest on which the British 
 Treasury is to be responsible, to be raised, until arrangements are made with the 
 Provinces of Canada and New Brunswick, by which the construction of a line 
 of railway passing wholly through British territory, from Halifax to Quebec or 
 Montreal, shall be provided for to the satisfaction of Her Majesty's Government, 
 
 In order that such arrangements may be made Her Majesty's Government, will 
 undertake to recommend to Parliament that the like assistance shall be rendered 
 to these Provinces as to Nova Scotia, in obtaining loans for the construction of 
 their respective portions of the wo.-k. If it should appear that by leaving each 
 Province to make that part of the line passing through its own territory, the pro- 
 portion of the whole cost of the work which would fall upon any one Province, 
 would exceed its proportion of the advantage to be gained by it, then the ques- 
 tion is to remain open for future consideration, whether some contribution should 
 noi be made by the other Provinces towards that part of the line ; but it is to be 
 cleariy undei stood that the whole cost '^f the fine is to be provided for by loans 
 raised by the Provinces in such proportions as may be agreed upon, with the 
 guarantee of the Imperial Pariiament. 
 
 The manner in which the profits to be atrived from the Railway when com- 
 pleted are to be divided between the Provinces will also remain for future consid- 
 eration. 
 
 You will observe that I have stated that the line is topa•^^" enlirely through Brit- 
 ish territory ; but Her Majesty's Governniont do not require that the [line shall 
 necessarily be that recoinnu'uded by >Iajor Robinson and Captain Henderson. 
 
 If the opinion which is entertained by many persons well qualified to form a 
 judgment, is correct, that a shorter and better line may be found through New 
 Brunswick, it will of course be preferred, and there will be sufficient time forde- 
 
22 
 
 terinining tliis question while the earlier part of the line li in progress. It is aUo 
 to be understood that Iler Majesty's Government will by no means object to its 
 forming part of the plan which may be determined upon, that it should include a 
 provision for establishing a communicatici between the projected Railway and 
 the Railways of the United States'. Any deviation from the line recommended 
 by Major Robinson and Captain Henderson, must, however, be subject to the ap- 
 proval of Her Majesty's Government. 
 
 It will further be required that the several Provincial Legislatures should pass 
 laws making the loans which they are to raise a first charge upon the Provincial 
 Revenue, after any existing debts and payments on account of the Civil Lists 
 settled on Her Majesty by laws now in force ; and also that permanent taxes 
 shall be imposed (or taxes to continue in force till the debt shall be extinguished) 
 sufhcient to provide for the payment of the interest and sinking fund of the loans 
 proposed to be raised after discharging the above prior claims. It will further be 
 necessary that the expenditure of the money raised under the guarantee of the 
 Imperial Parliament shall tak> •! vce under the superintendence of Counnissioners 
 appointed by Her 3Iijesty's Gt i n.t, and armed with sutHcient power to se- 
 cure the application of the funds s ied to their intended object. The Com- 
 missioners so appointed are not however to interfere with the arrangements of the 
 Provincial Governments, except for the above purpose. 
 
 The right of sending troops, stores, and mails, along the line at reasonable 
 rates, must likewise be secured. 
 
 If on the part of the Government of Nova Scotia you should express your con- 
 currence in the above proposals, Lord (Jrey will innnediately direct the Governor 
 General of the British North American Provinces to connnunicate with the Lieu- 
 tenant Governors of New Brunswick and Nova Scotia, who will also be directed 
 to bring the subject under the consideration of their respective Executive Coun- 
 cils, in order that if they should be prepared to join in carrying the undertaking 
 into effect on the terms proposed, tlie details of the arrangement between the 
 Provinces may be settled, and the sanction of the Legislature obtained for the 
 plan, so that it may with as little delay as possible be submitted for the approval 
 of Parliament. 
 
 Before, however, the proposed measure can be so submitted to Parliament, it 
 is proper to observe that there are some other questions affecting the pecuniary re- 
 lations between the mother country and the colonies which will require to be con- 
 sidered, but as these (|uestions have little, if any, refereni'e to Nova Scotia, it is 
 not neci.'ssary that they should be further adverted to in this letter. 
 
 I am directed to add that Lord Grey thinks it unnecessary that any measure 
 •^i.ould be taken by Her Majesty's Government to encourage the establishment of 
 steam vessels for the accommodation of emigrants of the humbler class, which is 
 one ol the subjects to which you have called his attention. 
 
 If there should be a demand for such vessels. Lord Grey has no doubt that 
 they will speedily be supplied by private enterprise; indeed he has been informed 
 that ships of large size intended for the conveyance of emigrants, and furnislied 
 
 v>f mvm>- - 
 
23 
 
 with auxiliary steam power, are already building both in this country and Ameri- 
 ca, and if by undertaking the projected railway a demand for labor is created in 
 the British Provinces and a large extent of fertile land is opened for the occupa- 
 tion of settlers, these circumstances cannot fail to lead to an extension and im- 
 provement of the means now afforded for the conveyance of emigrants to these 
 Provinces. 
 
 Lastly; with rtference to the suggestion contained in your letter, that convicts 
 might bo employed in the construction of the Rail-, ay, I am to imform you that 
 though her Majesty's Government entertain no doubt that the expense of the 
 work to the Provinces might thus be greatly reduced, while at the same time by 
 judicious regulations ail risk of serious inconvenience might be guarded against, 
 they would not be disposed to take any step with a view to the adoption of this 
 suggestion, unlens on a distinct application from the Colonial Legislature; but if 
 such an application should be made. Her Majesty's Government would be pre- 
 pared to make ihe necessary arrangements for the employment of a moderate 
 number of convicts on the work, without any charge for their custody and subsis- 
 tence to the Provmce which may have applied for them. 
 
 I am &c., (Signed) B. HAWES. 
 
 HON. JOSEPH HOWE TO ;. HAWES, ESQ. 
 
 5 Sloane Strekt, March 12th, 1851. 
 
 Sir, — I have the honor to acknowledge your letter of the 10th March, con- 
 veying to me by direction of Earl Grey, the decision of Her aiajesty's Govern- 
 ment on the questions raised in my letters of the 25th November and 16th .Tan- 
 uary. 
 
 I beg you to assure his Lordship of the sati.-sfaction with which I have read 
 that communication, and of the sincerity of the belief which I entertain that the 
 Governments of the North American Provinces will cheerfully, and to the full 
 extent of their means, exert themselves to secure upon the terms proposed, the 
 completion of the great national highway, for the construction of which Her 
 Majesty's Government are prepared to propose to Pailiament to advance the 
 funds, or pledge thi National credit. 
 
 Sliould anything occur to delay a general arrangement, (which I do not appre- 
 hend,) beyond the period when Nova Scotia may be prepared to execute her part 
 of the line, for local or other purposes, it will be time enough then to submit 
 whether that portion of the work which will run through her territory should not 
 be commenced, either with or without '.!.e aid of Her Majesty's Government. 
 
 As till.' rapid sale and settlement of the waLte lands of the three provinces will 
 now become very desirable, in order that their annual revenues may be increased, 
 and the country on both sides of the Railroad settled as the work proceeds, I 
 lu)pe to be able, in a few days, to submit a plan by which these objects may be 
 attained by an organized association, acting under the countenance of the Im- 
 perial and Colonial Go^•ernments, but without any aid from their public resour- 
 pos. I have, &c., (Signed) JOSEPH HOWE. 
 
 B Hawes, Esquire. 
 
24 
 
 HON. JOSEPH HOWE TO W. H. KEATING, ESQ. 
 
 5 Sloane Street, Londow, March 13, 1851. 
 
 Sir, — 1 had the lionor to report to you on the 14th of February. 
 
 On the evening of that day a Debate occurrrd in the House of Lords, which 
 you will find in the Newspapers I now enclose. In that House there appeared to 
 be but one opinion as to the importance of the North American Provinces and 
 upon the soundness of the Policy of aiding them to complete their Public Works. 
 The personal references to myself will convey to His Excellency the best evi- 
 dence that I can offer as to the mode in which my Public Duties have been dis- 
 charged. 
 
 Prior to the occurrence of that Debate I had been honored with two very in- 
 teresting interviews by Lord Stanley. 
 
 On the IStli I had addressed to Earl Grey the letter a copy of which is en- 
 closed. 
 
 On the 21st of February, 1 was honored by Earl Grey with the perusal of the 
 draft of a communication, which His Lordship proposed touddress to me, and by 
 an appointment for the following day, to adjust any points which might be raised 
 by an examination of that draft. On the 22d of February, the Cabinet resigned, 
 and no further progress could be made in the negociation until their acceptance 
 of the Seals again on the 3d of March. 
 
 I have now the honor to enclose a copy of a letter addressed to me on the 10th 
 inst., by Mr. Hawes, in which the Lieutenant Governor will be gratified to per- 
 ceive that my mission has resulted in the determination of Iler Majesty's Gov- 
 ernment to propost; to Parliament to advance or gurantee the funds which may be 
 required by the three North American Provinces, to make a Raiiooad from Hali- 
 fax to Quebec or Montrreal, including a line of connection across New Bruns- 
 wick, with the Railroad Lines of the ignited States. 
 
 1 have reason to believe, that, if 'he pressure of public business will permit, 
 copies of this letter will be transmitted to His Excellency the Governor General, 
 and to the Lieutenant Governors of Nova Scotia and New Brunswick by this 
 Mail. 
 
 You will perceive that all our great Lines are to be provided for, the Provinces 
 through which they pass pledging their revenues to the Imperial Government, 
 which will advance or guarantee the funds ro(|uiri!d at the lowest rate of interest. 
 This cannot be higher than 4. and will probably not exceed 3 1-2 per cent. No 
 American or Colonial Company seeking funds in the Money Market here, could 
 obtain even a moderate amount at less than 6 per cent. I could make contracts 
 for completing our own Line, in sections of 50 miles, paying the parties in our 
 Provincial Debentures at 5 per cent, but, from ail the iuformation I can gather, 
 even the Provincial Government could not depend on obtaining any large amount 
 of funds at a less rate of interest than what Canada pa} s for the last loan effect- 
 ed here, which is 6 per cent. 
 
 The value to us, then, of the Imperial Guarantee, cannot even be over esti- 
 mated. 
 
 You will perceive that Her ^lajesty's Government leaves the Provincial Go- 
 
25 
 
 vemments free to select a shorter and more profitable line than that chosen by 
 Major Robinson, if one can be found. 
 
 As regards construction and management, we are not to be unduly controlled; 
 the Imperial Commission being limited to such necessary jurisdiction as may 
 prevent the appropriation of the funds raised to objects not contemplated by Par- 
 liament. 
 
 You will also observe that the Provincial Governments are left free to make 
 the most they can of the lands through whhich the Railroads are to pass. My 
 present impression is that, by making a judicious use of these, Colonization may 
 be carried on extensively in connection with the Railroads, so that as many peo- 
 ple may be added to the population of each Province as will swell its annual 
 consumption and revenue beyond the charges which may be assumed for the con- 
 struction of the lines. If this can be done, and I believe it may, we may 
 strengthen the Provinces, and permanently advance and improve them, adding to 
 their wealth and population, flanking the Railway lines with thousands of indus- 
 trious people — and giving the Provinces, in a few years, an elevation which we 
 are all anxious that they should attain. 
 
 To carry out this policy there must be mutual co-operation between men of in- 
 fluence here, and in the Provinces, acting with the general concurrence of the 
 Imperial and Colonial Governments. 
 
 The ground has, I trust, been prepared for such organization — and I shal' 
 spend the rest of ' iie month in drawing together those interests and influences on 
 which the northern Provinces may most securely rely to aid them in filling up 
 their waste lands, and completing their public improvements. 
 
 My present intention is to leave England by the Boat of the 5th of April, and I 
 cannot anticipate that anything will occur to occasion further delay. 
 
 I regret that it has not been possible to bring these matters into a shape to be 
 passed upon by the Legislature during the present Session — but, on reflection, it 
 will perhaps appear to His Excellency better that questions of such deep import- 
 ance should be gravely projiounded to the country for its deliberate decission, 
 than that they should have been hurried through, or hastily rejected in the last 
 Session of an expiring Parliament. 
 
 I have the honor to be Sir, Your obedient Servant, 
 
 JOSEPH HOWE. 
 W. H. Keating Esq., Deputy Provincial Secretary. 
 
 EARL GREY TO SIR JOHN HARVEY, 
 
 Downing Street, March 14th, 1851. 
 
 Sir — I have roroived your despatch. No. 204, of the 25th of October last, 
 informing me that I uc members of your Executive Council had deputed one of 
 their owni body to repair to this country for the purpose of representing to Iler 
 Majesty's Government the views generally entertained in Nova Scotia on the 
 subject of the projected Halifax and Quebec Railway; and I have now the hon" 
 or to transmit to you the accompanying copy of a despetch which I have this 
 
 4 
 
vol 
 
 26 
 
 day addressed to the fJovcrrior General of Dritish North America, in the enclo- 
 sures to which you will find a Letter which has been written by my direction to 
 Mr. Howe, containing a full ex[)lanation of the views of Her ]\rajesty's CJovern- 
 ment as to the mode by which it is to be hoped the funds necessary for the pro- 
 posed undert!' ing may be raised. 
 
 Referrhig you to that despatch for general information, I have only to add that 
 it will be proper that you should at once place yourself iu coinmuuicution with 
 the Governor General on this very important subject. 
 
 I am, iiic, 
 (Signed) GREY. 
 
 Lieut. Governor Sir Johx Harvey, K. C. B., Nova Scotia. 
 
 E'lRL GYEY TO LORD ELGLN. 
 
 Downing Street, March 14th, 185L 
 My Lord — 
 
 From the correspondence which I have already had with your Lordship on the 
 subject of the projected railroad from Halifax to Quebec, you are well aware 
 tliat although Her IMajesty's Government have not hitherto been enabled to take 
 any steps towards the execution of that work, it is an undertaking which they 
 have long earnestly desired to see accomplished, as they believe it to be one cal- 
 culated very greatly to advance the commercial and political interests both of the 
 British Provinces in North America and of the mother country. It is, therefore, 
 with great satisfaction that I have now to acquaint your Lordship that 1 have 
 reason to hope that the time is at length come when this great niitional enterprise 
 may be undertaken with advantage, if there still exists (as I am assured there 
 does) as strong a desire to promote it, on the part of the inhabitants of Canada 
 aiid New Brunswick, as they formerly expressed, and as the people of Nova 
 Scotia liave recently manifested. 
 
 2. I inclose for your l^ordship's information a copy of a despatch addressed 
 to nie iu the course of the last autumn by Sir John Harvey, introducing to me 
 Mr. Howe, a member of the Government of Nova Scotia, and also copies of 
 two letters 1 have received from that gentleman, and of tht> answer which has by 
 my direction, been returned to him. Your Lordship will perceive from these 
 papers, that the proposals made by Mr. Howe, on behalf of the Province of Nova 
 Scotia, and to which Her Majesty's Government have thought it their duty so 
 far to accede as to undertake on certain conditions, to recommend it, for the 
 sanction of Parliament, is to the etl'ect that the credit of this country should be 
 employed to enable the Provinces of Canada, New Brunswick and Nova Scotia, 
 to raise upon advantageous Uitms the funds necessary for the construction of the 
 proposed railway, just as Canada has already been enabled by similar assistance, 
 to construct the canals by which she has lately completed the most extensive and 
 perfect system of inland navigation which exists in the world. Although Her 
 Majesty's Government are of opinion that great caution ought to be observed in 
 pledging the credit of the British Treasury for aid of loans raised by the Colonies, 
 they regard the work now iu coutemplatiou as being (like the Saint Lawrence 
 
 i HiUH I lii ■ «^'?»o*^^'• 
 
27 
 
 
 Canals) of so much importance to the whole empire, as to justify them in recom- 
 mending to Parliament that some assistance should be given towards its con- 
 struction, nor is there any mode of aflbrdiiig such assistance which has been 
 hitherto suggested, which appears on the whole so little burthensome to the 
 mother-country, and at the same time of so much real service to the Colonies, as 
 that which is now proposed. 
 
 8. In coming to the decision that Parliament should be invited to give this 
 support to the projected railway, Her Majesty's Government have not failed to 
 bear in mind that by enabling the North American Provinces to open this great 
 line of connnunication, it may fairly be assumed that a powerful stimulus will be 
 given to their advance in wealth and population, and that the increase in their 
 resources will render it possible for them to relieve the mother country sooner, 
 and more completely than would otherwise be practicable, from charges now 
 borne by it on account of these colonies. In another despatch of this date, I 
 have informed your Lordship, that in the judgment of Her Majesty's Government, 
 the British colonies ought to be required, as t'.iey become capable of doing so, to 
 take upon themselves not only the expenses of their Civil Government, but a 
 portion at all events of those incurred fc their protection ; and I have pointed 
 out to you, that the British North American Provinces, and especially Canada, 
 liave now reached such a stage in their progress that the charges for which Par- 
 liament is culled upon to provide on their account, ought to be rapidly diminished. 
 The construction of the proposed railway would greatly contribute to promote 
 this imitortant object. By opening new districts for settlement, and by the de- 
 mand for labor which would be created during the progress of the work, the 
 projected railway cannot fail to increase the wealth and population of these 
 Provinces, while by allbrding a rapid and easy communication between them, 
 it will enable them to alFord to each other far greater support and assistance tlian 
 they now can, in any dilKculty or danger to which they may bo exposed. 
 
 4. Your Lordship will not fail to observe from the letter which has been ad- 
 dresstnl to Mr. Howe, that the assistance which it is proposed to grant to the 
 Provinces towards the construction of the proposed Railway, is to be contingent 
 On provision being made for opening a complete line of communication from Hal- 
 ifax to Quebec or ^lontreal. It is necessary, therefore, to ascertain whether 
 Canada and New Brunswick are ready to join with Nova Scotia in raising the 
 capital required for the work in the manner proposed, and if so, in what propor- 
 tion each Province is to become responsible for the expense incurred. The ques- 
 tion, whether it will be advisable for these two Provinces to join in the construc- 
 tion of the projected railway ,if they should be enabled, by the assistance of Par- 
 liament, to raise the required capital, at a low rate of interest, is one for the con- 
 sideration of their respective Leglislatures; but so far as I have the means of 
 forming a judgment upon the subject, I should anticipate that their decision would 
 be in favor of doing so. I infer that this is probable, not less from what I have 
 learnt of the actual state of public opinion on this subject in the Provuices, than 
 from the view which 1 take of their interest in the work. 
 
28 
 
 Though I can beVieve that there would be much room for doubting whether 
 the railway would pay as a mercantile speculation to a company looking to traffic 
 only for its remuneration, the case is very different when it is regarded as a 
 public undertaking. When viewed in this light, the various indirect advantages 
 which cannot fail to arise to the Provinces from possessing snch improved means 
 of communication, must be considered, as well as the very great additional value 
 which would be conferred on a vast extent of public lands, which are now com- 
 paratively worthless. This is a source of profit from which no advantage can in 
 general acrue to tho constructors of railways in countries where the soil has long 
 been appropriated by individuals; on the contrary, in these countries the pur- 
 chase of land is not one of the least important itewM of the expense to be incur- 
 red in such undertakings; but where, as in parts of Canada and New Brunswick, 
 a great part of the territory to be traversed by a railway is still unappropriated, 
 and the land may he sold by the public, the increased value given to it by being 
 thus rendered accessible, may render it advantageous to construct a railway, 
 though the traffic is not expected to do more at first than pay the working expen- 
 ses. 
 
 6. If theso considerations -bould induce the Logislatures of the three Provin- 
 ces to combine in undertaking the proJ3cted railway, the terms on which they 
 are to co-operate with each other for that object will have to bo settled; and in 
 coming to snch an arrangement various questions of great difficulty and impor- 
 tance will requito to be considered. For instance it is probable that when the 
 line is completed, the traffic will be far more remunerative at the two extremi- 
 ties than in the more central portion of it; while at tho same time the expense of 
 construction would, from the nature of the country, be precisely higher where 
 the traffic returns would be the lowest: so that if each Province wore required 
 to pay for the formation of the line through its own territory, and to receive the 
 returns from the traffic through the same, it would follow, that while the expense 
 to New Brunswick would Vie the greatest, its receipts would be the smallest. 
 On the other hand, as I have just observed, one of the most important sources of 
 profit from the construction of such a railway as that now in contemplation would 
 arise from the sale of land of which the value would be increased by the work; 
 and it appears from the papers before me, that New Brunswick would probably 
 derive a greater profit from that source than the two Sister Provinces. Whether 
 the result upon the whole would be, that each Province, considering these vari- 
 ous circumstances, ought to take upon itself the construction of the railway 
 through its own territory, or whether, on the contrary, any one should be assisted 
 by the others, is a point on which I have not the means of forming a judgment; 
 and I would suggest to you, that the best course, with a view of arriving at some 
 practical result, would be, that a deputation from the Executive Councils of the 
 two Lower Provinces should proceed to the seat of Government in Canada, in 
 order to confer with your Lordship and with your Council for ih'j purpose of com- 
 ing to some agreement upon the subject, which, after being approved by the Leg- 
 islatures of the several Provinces, might be submitted for the ianctiou of Parlia- 
 ment. 
 
 wm-imn'^'' 
 
29 
 
 6, II docs not appear to me that if sucli a conference sliould be held, it need 
 occnpy any very great length of time, or that mucli diJHcuIfy would arise in com- 
 uig to an Hrrangeinont for the construction and worliing of the projected railway, 
 by which the expense of tbo undertaking on the one hand, and tho advantages to 
 be derived from it on the other, might be fairly apportioned between the ditfercnt 
 Provinces. Hereafter I may probably bo enabled to offer some suggentions aa to 
 the manner in which this might be accomplished; but at present I have only to 
 add, that I shall transmit copies of this despatch to Sir Edmund Head and to Sir 
 John Harvey, with instrnctiona to communicate with your Lordship without de- 
 lay on the important subject to which it relates; and it will give mc the highest 
 aatisfactioa if the result of these communications should be tho undertaking of a 
 work, which, if completed, cannot, I believe, fail to add greatly to the prosperity 
 of the British Provinces in North America, and at the same time to give addition- 
 al strength to the ties which connect them with each other and with the British 
 
 Empire. 
 
 I am, &.C., 
 (Signed) GREY. 
 
 The Rt. Heri. the Eari/ or Elgin and Kincardine. 
 
 Downing Street, 12th June, 1831. 
 
 Sir, — I have to acknowledge the receipt of your Despatch No. 16, of the 7th 
 April, transmitting certified copies of 3 Acts passed by the Legislature of New 
 Brunswick in its last session, entitled respectively "An Act to incorporate the Eu- 
 ropean and North American Railway Company, — (2061); and an Act to facili- 
 tate the construction of the European and North Amerk^an Railway (2062) ; and 
 an Act to facilitate the construction of a Railway from St. Andrews to Quebec." 
 —(2063.) 
 
 Having referred these Acts for the consideration of the Commissioners of Rail- 
 ways, 1 have received from these officers a Report of which I now transmit a 
 copy for your information. 
 
 Although it would appear that the most important of these Act (that numbered 
 2061) is in some respects defective, I do not conskler it necessary to recommend 
 its disallowance on account of the imperfections pointed out by the Commission- 
 ers. I trust without doing so, and thus delaying the commencement of the work, 
 a sufficient oppoitunity for reconsidering the subject will be secured to the Legis- 
 lature of New Brunswick, by my deferring to submit the Act numbered 2062 for 
 Her Majesty's confirmation. By this Act it is proposed that pecuniary assistance 
 from the Colonial Treasury, to a very considerable amount should be given to the 
 Company to enable them to construct the proposed Railway. To this I have no 
 objection — on the contrary, I believe that in the present state of New Bruns- 
 wick, it is consistent with sound policy that assistance should be given by the pub- 
 lic towards the construction of the great leading lines of Railways ; and the par- 
 ticular line now suggested for encouragement is one which I think deserves it, for 
 thougli it appears to me one of less importance than the projecte<^ line from Hal- 
 ifax to ^ebec, I regard it as not being calculated at all to interfere with the Iat< 
 
30 
 
 ter (if properly rpgulatcil,) but on tlio pontrnry, to contribute to it« hucppss. But 
 while I um pri'parcJ to udvi^e that Her Majesty's Hanction tthouUl be givi'n to u 
 mcaeiure for allbrtling assiijtance to this Vino on the principi*; propostnl by tbn Act 
 now umk'r my conrtidi-ratiun, I consider it inuxpodicMit that thin should bo done 
 until the Legirtlaturu shall have had an opportunity of rcconMidering the Act No. 
 
 2061, and that the proposed assistance to the Company should only be granted 
 on condition of its assenting to such amendments of this Act as may then be found 
 advisable. I trust that the Legislature will carefully consider all the remarks of 
 the Commissioners, as I consider them to be of much importance, and I fear that 
 the interests of the Province may hereailer be exposed to serious injury if the 
 amendments in the Act which are suggt'sled are not now made; but there are 
 only two of these amendments on which as allecting the interests of the Empire 
 at large, as distinguished from those of the Province alone. I consider it neces- 
 sary to insist before Her Majesty can be advised to sanction the grant of pecuni- 
 ary assistance to the Company. The two amendments which I consider to be in- 
 dispensable are those pointed out by the Commissioners as being required to se- 
 cure the use on fair terms for the traflic between Halifax and Quebec, of that 
 part of the line of Railway now proposed to be constructed which will be com- 
 mon to the two lines, and secondly the conveyance of Her Majesty's Trooj)s and 
 stores for their use, along the line at reasonable rates of charge. 
 
 I am not as yet enabled to express a positive ojiinion whether the Act No. 2063 
 ought to be confirmed; this question is still underconsiderution,butI hope to have 
 it in my power to inform you by an early opportunity what decision may be adopt- 
 ed with respect to it. 
 
 In conformity with what I have now stated, the Act No. 2061 will be submit- 
 ted to Her Majesty on the first opportunity, in order that it may be left to its op- 
 eration. The Acts Nos. 2062 and 2063 will not be laid before the Queen for 
 the present 1 am, &c., 
 
 [Signed] rjREY. 
 
 [EXTRACT.] 
 
 Office of Commissioners of Raii^ways, ) 
 Whitehall, 2nd June, 1851. 5 
 
 Sir — I am directed by the Commissioners of Railways to acknowledge the 
 
 receipt of your letter of the 2'Uh ultimo, enclosing copies of three Acts, passed 
 
 by the Legislature of New Brunswick, entitled respectively — No. 2061, "An 
 
 Act to Incorporate the European and North American Railway Company." No. 
 
 2062, "An Act to facilitate the construction of the European and North Ameri- 
 can Railway" — and No. 2063, "An act to facilitate the construction of a Rail- 
 way from St. Andrews to Quebec" — and I am to acquaint you in leply for the 
 information of Earl fJrey, that agreeably to His Lordships request, the Commis- 
 sioners have taken these Acts into their consideration, and have made the follow- 
 ing observations upon their provisions. 
 
 By the .\ct No. 2061 , it is proposetl to incorporate a Company for the purpose 
 of making a Railway, which in section 8 is described as "A Railway to run from 
 
31 
 
 in 
 
 0. 
 
 he 
 
 is- 
 
 V- 
 
 se 
 tin 
 
 
 some point or place from the Fnstcrn boundary of the Province of New DrunH- 
 wick in the Co. of Westmoreland ho uh bent to connect witii n Railway to be 
 oonstructt'd from the City o<* Halifax, or some otber port on the Eastern const of 
 the Provinrn of Nova Scotia, on the Atlantic Ocean, over the most practicable 
 route through the Province of New Brunswick, so as best to connect wiihu Rail- 
 way to be constructtnl from the City of Dangor, in the United States of America, 
 to the I'astern part of the State of Maine." 
 
 It appears probable that the direction of n considerable portion of this line, 
 near the Eastern Boundary of New Brunswick, will coincide with that of the pro- 
 jected Railway from Halifax to (luebec, the construction of which has already 
 engaged the attention of Earl (Irey as an undertaking calculated to promote the 
 interests both of the Coloni(;s and of the Mother Country, and therefore entitled 
 to encouragement and assistance on the part of II. M. (iovernnient. It appeara 
 from Mr. llawes' letter to Mr. Howe of the 10th March, 1851, that one of the 
 conditions of alVording that assistanco would be, the proposed Railway should be 
 nn entire line from Halifax to Ciuebec, passing wholly through Brhish territory, 
 but it would not be considered an objection to the plan, that it included a provis- 
 ion for establishing a communication between the Railway and the Railways of 
 the United States. The above mentioned portion of the Railway proposed in 
 the present Act might therefore form part of the main line of the Halifax and 
 
 Quebec Railway; and as it would be expedient thiit l.e whole of that line should 
 be under tlu> same management, the Connnissiont'r> suggest that it might be ad- 
 visable to stipulate with the (\)nipany incorporateil i)y this Act, that in the event 
 of arrangemetits being nuide for the construction of the Railway from Halifax to 
 Quebec through this part of the Province of New Brunswick, it should be obli- 
 gatory on the Company to transfer the common portion of the line to the parties 
 entrusted wilh the construction of the Halifax and Quebec Railway, or a sura 
 ecjuivalent to th<.> outlay incurred by the Company in making that portion of the 
 line; and with this view, that the accounts relative to its construction should be 
 kept in such u manner as to atlbrd the means of apportioning the outlay accord- 
 ingly. 
 
 '1 be Connnissioners proceed to consider certain provisions of this Act, which 
 appear to them to call for remark. 
 
 in the 1st section, provision is made for submitting the Company's bye-laws to 
 the liovernor of the Province for hia a|)proval, but no power is reserved (as in 
 the Imperial Act for the regulation of Railways, 3 and 4 Vict., c. 97., s. 9,) of 
 disallowing the bye-laws at any future time al\er they shall have come into oper- 
 ation — and this jiower appears to be necessary for the completeness of the con- 
 trol over the byt!-iaws intended to be vested in the Governor, who would other- 
 wise have no cause of suspending the operation of a bye-law that was found to 
 be objectionable. 
 
 By section 5, the Directors are authorized until the Railway is completed, to 
 pay intt!rest to the Shareholders on the amount of the calls paid up by thenu In 
 former reports on New Brunswick Railway Acts, containing a similar provision, 
 the Conniiissioners took occasion to observe that provisions of this kind were fre- 
 quently at one time inserted in English Railway Acts, but in the Session of 1847 
 ii Resolution was passed by both Houses of Parliament, (which has been since 
 adopted as a staiuling order,) requiring the insertion in every Railway Bill of a 
 clause prohibiting the payment of interest out of capital, and it might therefore 
 be worthy of consideration whether the reasons that led to that Resolution were 
 equally applicable to the Colony. 
 
 By Section 28, it is provided that the Act shall not be revoked, altered or 
 amended, without the consent of the Company. This is inconsistent with the 
 
92 
 
 t 
 
 first recommendation in Mr. Secretary Gladstone's Circular Despatch, of the 15 
 January, 1846, and the clause there referied to as proper to be inserted in all 
 Colonial Railway Acts — viz : "That nothing herein contained shall be construed 
 to except the Railway by this Act, authorized to lue made from the provisions of 
 any general Act relating to Railways which may be passed during the present, 
 or any future Session of Parliament." A clause of this kmd is invariably insert- 
 ed hiEnglish Railway Acts. 
 
 Section 86, after providing for the level crossings of Roads, authorizes the 
 Company " if they deem it more conductive to the public safety to substitute a 
 bridse over or under the Ruilway for the level crossing." 
 
 The Commissioners would suggest that a matter of so mnch importance to the 
 public should not be left entirely to the discretion of the Companv, but that 
 power should be reserved to the Governor of the Province, or some other public 
 officer, requestmg the Company to make the alterations which tbd increase of 
 traffic on the roads arising from that on the Railway may hereal^?'.- render neces- 
 sary, although at present, a level crossing may be allowed without danger. 
 
 Section 55 gives the Company the power of levying tolls for the conveyance 
 of passengers and goods. But the Act does not provide any scale of maximum 
 charges for such conveyance. And this defect does not apoear to be remedied 
 by the power of revising the tolls and the option of purchasing the Railway re- 
 served to the Government by the 55th and 57th Sections. 
 
 The exercise of those powers is dependent upon the event of the Company's 
 profits exceeding a certain rate per cent, on their capital. In former communica- 
 tions addressed to the Coionial Office, the Commissioners have stated that al- 
 though such provisions may have been introduced into Colonial Railway Acts for 
 the purpose of thus intimating the possibility of future revision and purchase, 
 yet, in their opinion, it may be questionable whether they can have any other 
 practical effect. 
 
 The provisions in Section 61, with respect to the conveyance of Troops, ap- 
 pear to be defective in not specifying the terms and conditions of conveyance, at> 
 provided by the corresponding enactments of the Imperial Act 7 and 8 Vict: c. 
 85, s. 12. 
 
 The 50th section adopts the provisions of the 13th Section of the Imperial Act 
 7 and 8 Vict: c 85 with regard to the power of the Government to establish a 
 line of Electrical Telegraph on th;i Railway; but does not contain any clause 
 similar to the 14th Section of that Act, for providing that the Telegraph subject 
 to the prior riphtof use by the Government, shall be open to all persons, without 
 favour or preference and at equal charges. 
 
 lu the absence of any general Legislation on the subject of Railways in this 
 Colony, it is necessary that every New Brunswick Railway Act should comprise 
 within itself the whol^f of the provisions that may be considered requisite for tho 
 protiiction of the public interests. Provisions is made by the present Act for the 
 conveyance of Mails and Troops, for laying down an Electrical Telefrraph on the 
 line of tiie Railway, and for making returns of traffic and accidents. Put of 'he 
 other matters which in this Country have been made the subject of general legis- 
 lation with a view to the public safety and convenience, the Commissioners would 
 particularly observe thnt the Act does not contain any provisions similar to those 
 of the Imppr*!'! Acts relating to cheap Trains, the appointment of Inspp-itors, and 
 the opening of the Railway after notice and inspection, nnd the construction of 
 Bridges and Reads. 
 
 The Commissioners are desirous to draw the attention of Lord Grey to these 
 variations from the course pursued in legislating upon Railways in the Country, 
 lea^flg it as a matter entirely for His Lordship's consideration, what degree of 
 nuportance is to be attached to them, with reference to the local circumstances of 
 the Colony, and whether any correction may be called for in the way of suppli- 
 mentary legislation. # • • ♦ * 
 
 (Signed,) J. L. S. SIMMONS, 
 
 . .^ Cojituin Boj.'l JSngineers. 
 
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