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This brings us to the spring of 1873, ''^"^ ^•'» ^hc thne for the commencement of Railway con- struction was drawing near, you will fmd great anxiety displayed by the government to commence work on the 20th Jnly; and, although I have reason to believe, that an extension of time could have been obtained from the government of British Columbia, at that period, the Dominion Government preferred passing an order in council, on the 7th June, 1873, recommending that Esquimalt, Vancouver Island, be fixed as the Terminus of the Canadian Pacific Railway, and that a line be located between that point and Seymour Narrows; and asking for a conveyance of the land between those points, ac- cording to the nth " paraijraph of the Terms of Union." The local government refused to convey the land, but made a reservation of it. The result of this was, that on the 20th July, instructions had arrived to commence locating the line from Esquimalt — on that morning, the City of Victoria was all alive — Real Estate changed hands; a locating party was formed, consisting of the Chief Engin- eer, and assistant, and several members of the local government, the Premier, Mr. DeCosmos being amongst the number, repairing to Esquimalt, the initial post was set, lunch taken, champagne suff- ered, a few hundred feet of line run, and that was the end of it. It was thought by many that the action of the Dominion government, passing an order in council recommending that Esquimalt be made the Terminus of the Canadian Pacific Railroad, indicated pretty clearly that the Bute Inlet route would be adopted. I felt it did not neccessarily do so, for an application to Sir John Macdonald, a short time previously, he stated that the line from Victoria to Nanaimo, if built, would be common to either the Bute Inlet or Eraser River Route. If the latter was adopted, it could be connected by Ferry to Burrard Inlet. It is a pity that this survey was not continued then. E[ad that been the case, some information as to the cost of a Railway on Vancouver Island, would have been in the hands of the Dominion Government, at a time when its construction was forced on them as the price for relaxation of the Terms of Union — and to which I bhall shortly refer. Between the 20th July and the resigna- tion of Sir John Macdonald's government, several minutes of coun- cil of oui local government were forwarded by the Lieut. Governor to the Dominion Government, in reference to the non-commence- ment of the Railway, and the reservation of land on Vancouver Island, and so persistent were they in endeavoring to get the Do- minion Government further committed to the Island piece of road, '«: (9) that they passed an ord' r in council, authorising Mr. DeCosmos, the then Premier, lo proceed as special Delegare to Ottawa, to ask the Dominion Government to define the boundaries of the land on Vancouver Island, proposed to be claimed by them to aid in the construction of the Railroad on the Island, although in a previous report of the council, they had impressed on the notice of the Domin- ion "that the Reserve itself should noi be of a ptrmanent character." This was at a time when political com plications were imminent, and I have no doubt it was considered a favorable one tor uilving a hard bargain. Thus the question rested until Mr. Mackenzie came into power, and on the 2 2d November, 1873, we find a rer>ort of the Executive Council of our Province, asking the Dominion Gov- ernment ic'v an expression of its policy with reference to the Rail- way clause of the Terms of Union — and a reply by telegraph from Mr. Mackenzie to Mr. Wdkem on the 2 2d December, referring him to his speech at Sarnia of the 25 November, which he supposed Mr. Walkem hat' seen, and further stated, that the government was giving earnest consideration to the details of a scheme, which they believed would be acceptable to the whole of the Dominion, includ- ing British Columbia — and ends t)y saying "we hope to communi- cate with you shortly, probably by special agent." The local Legis- lature was now in session, and a few days after the receipt of this telegram, (with, I presume a knowledge and approval of the policy of the Dominion Government.) Mr. Walkem makes a speech, lauding Mr. Mackenzie to the skies, and casting obloquy on Sir John Macdonald, who onlv a few weeks previouslv had fallen in our cause, and who was then and still is a stauuch friend to British Columbia. On the 9th February, 1874, during this same session, Mr. Beavan, finding that Mr. Mackenzie did not consider himself boun I to con- struct a Railway beyond the sea-board of the Province, brings in a resolution protesting :• gainst the infraction of the Railway clause of the Terms of Union, and impressing upon the administration of Can- ada, the absolute necessity of commencing the actual construction of the Railway from the seaboard of British Columbia, early in the present year. The drift of this resolution is apparent. At this time, the surveys had been pushed forward most energetically o*^ *he Bute Inlet Route, and it was thought a favorable line could be /Dtained. so, if by any means, the local government, could force the I ominion to make a commencement early that year, Mr. Beaven knew it must have been made on it. That spring, while nt Ottawa, I brought forward a resolution in the House of Commons, asking that further surveys might be made, between Kamloops and Hope on Fraser River, and gave my reas- ons for it. I was listened to attentively by Mr. Mackenzie, who promised that what I asked for should be granted, although Mr. De Cosmos assured the House, that the money might as well be thrown into the Fraser River, I was astonished to hear this from the lips ■10) f of a gentleman, who, only u ^hort time before, made use of the following words: — " I never could see how British Columbia could be settled up, wiihoot a railway to connect Fraser River with Kam- loops;" also, " I maintain that the true course for the development of the resources of the country, is to make a line of railway from some navigable spot or> the Fraser to Lake Kamloops; I claim for this, that it might be regarded as a part of the trans-continental line, and, in iny opinion, it would do more to build up the country, than anything else that could be conceived, and I believe it to he thoroughly practicble." Ke even went so far as to make an esti- mate of what that lio.e would cost, viz $50,000 per mile, and that through admittedly the worst portion of the Fiaser River route; (vide Confederation debates 1870); but I do not attach much importance to his estimate, as last session, he stated in the House of Commons, that the Island road could be built for $30,000 per mile, and upon a survey being made this spring, it was found that it would cost nearly three times that amount. Well, during the early spring of 1874, an exploration was made of the doubtful portion on the line of the Bute Inlet route, as recomniended by Mr. Fleming. Upon thai, depended the success of the rouic up to that time. The en- gineers fiiiled to find a practicable line, and so, from quarters v/hich appeared then to be reliaoie {Globe, August 17th, 1874, and which were subsequently confirmed in a rci)ort of the Privy Council of Canada to Lord Carnarvon,) came rumors, that on a further exam mation of the Bute Inlet route, it was shown that the difficulties were ali but insurmountable, and that having regard to those con- siderations, and the importance of saving in distance, the road would probably terminate at Burrard Inlet; and so the matter remained until the spring of 1875, ^^^ ^^^ Government appear to have con- tinued in that opinion until very lately, as Mr. Barnard received in- structions to commence constructing the Telegraph line from Cache Creek to Kamloops, and thence follow up tne North Thompson River, on the supposed line of Railway. In fact, the cutting out of the line, was to be part of the Railroad work itself. Since I left Ottav.a, Mr. Barnard received instructions to stop the work for . lime. I have endeavored to find out from what cause this was brought about. If, as in previous years, the report 01 last season's survL\vs had been published, with the engineers remarks thereon, I have no doubt our curiosity would be easily satisfied. But failing that, 1 think by referring to the Globe of April 30th, 1875, ^vhose authority appears to have been correct last year, we shall find that the government have received information of such a favoroble char- acter of the Northern Route as to cost, compared with Fraser River, thai they were compelled to suspend the construction of the tele- graj h through the Province of British Columbia, until some more reliable data were before them, upon which an estimate of the com- parative advanlaj^es of the several routes could be formed. The (11) Canadian Pacific Railway Act, altiiough authorizing the construction of the telegraph in advance of the railway, limits it to a period sub- sequent to the general location of the line. After referring to the different routes in the North, terminating at Bute Inlet, Gardner's Canal and Bentick Arm, the Globr goes on to say: "We believe we are correct in statmg that the government have definitely abandoned the lower Fraser route." This conclusion, if come to by the Gov- einment, \v:ll, 1 confidently believe, be re-considered when the reports, plans, profiles. &c.. are placed before them of this season's work. The fire which occurred in Ottawa in January, 1874, de- stroyed not only the Pacific Railway offices, but a'.most all the plans and inforniotion that the government had with reference to the sur- veys in British Columbia. Had thdt not happened, the possibiiitv is that no further surveys would have been found necessary. But when [he government find that there is such slight data in existence, as to the cost of the enormously heavy work through the Cascade range, to reach the head of Bnti' Inlet, I am not surprised that they have ordered a partially located line to be run from that point to Fort George. When the result cf that survey is before them, I can- not but believe, fiom information I possess, that the work from the head of Bute Inlet to the sMmmit of the Homatheo, will be found heavier than the same number of miles on any})ortion of the Fraser River route I refrain from entering fully into a comparrison of the various routes, until tiie engineer's reports are made public, but when the proper time arrives, you will find me as much alive to your interest as I am now . Having reviewed in as few words as possible the position of the surve}s from the commencement up to the pres em time, I shall now ask your attention, while I refer to the politi- cal aspect of affairs on the accession of Mr. Mackenzie to power. Pubhc feeling and sympathy up to that time in British Columbia had been, I may say, unanimously in favor of Sir John Macdonald and his government, and every member of the House of Commons had gonu either pledged to, or, by public sentiment, expected to accord that government his support. This is hardly to be wondered at, when we know that it was in a great measure through their instru- mentality, that we entered the Union; and further, that the railway was promised^ by them to be commenced in two years from Confed- eration, and to be completed in ten — while we. in framing the Tkrms which were submitted by our delegates to them, asked for a coach read from our trunk road to FortGarry^ to be finislied in three vears, and railway commenced at the earliest practicable date. You are familiar, I have no doubt, with the position taken by the two political parties at the time our Terms were considered in Parlia- ment, in the sj^ring of 1871; with reference to the railway clause. Sir John iMacdonald's Government contended that the proposition submitted bv them, was not less favorable for Canada than that proposed by British Columbia, and the Hon. Mr. Tilley a member ( 12 ) of that Government, stated in he House of Commons, March 28th, 187 1, in answer to Sir A. T. Gait, "The member for Sherbroke had stated that all British Columbia asked for, was a coach road con- necting Fort Garry with the Government roads of British Columbia, and an expenditure of a million dollars a year on a r .ilway, and that the proposition submitted by the government was less favorable to Canada. He entirely dissented from the hon member on that matter, on these grounds. When the road had been proposed, it had been found from enquiry and investigation, that from the high cost of labor, and other charges that would have to be met in con- structing such a road within the stated time ol three years, that the cost would be very heavy, very heavy indeed, and in addition to this, it was coupled with a proposition that a Railway should be built as soon as practicable, and that there should be an animal expenditure from the commencement, of a million of dollars. Under these circumstances, the government had held that any expenditure on a coach road was useless, and one that was not required, inasmuch, as all the traffic would be taken by the Railway, as soon as complet- ed. Taking this view^ therefore, the government had at once dis- sented from the proposition of British Columbia, and would not agree to it." The Hon. Mr. Chapais, also a member of the Government, stat ed, "With regard to the construction of the Railway, I will show that the conditions embodied in the resolutions — which are in keep- ing with the policy already followed by the Government, w-hen they agreed to construct the Inter-Colonial Railway, are much more favorable to Canada, than would have been the acceptance of the propositions made by British Columbia." The Oppo.sition, on the other nand, contended that the 10 years litrit was very objectionable, and Mr. Mackenzie, when Sir George Cartier moved the House into committee, to consider the resolution respecting the admission of British Columbia into the union with Canada, moved the following amendment: "The proposed Terras of Union with British Columbia, pledge the Dominion to commence within two years, and complete within ten years, the Pacific Railway, the route for which has not been surveyed, nor has the expense been calculated. This House is of opinion that Canada should not be pledged to do more than proceed at once with the necessary survey, and after the route is determined, to prosecute the work at as early a period as the state of it? finances will justify, and that the further consideration of the said terms be postponed, with a view to obtaining some modification thereof." A debate, lasting several aays, took place, in which all the able men of both sides took part. The Hon. Mr. Blake (Opposition) stated, "If this measure should become law, the faith of the Dominion would be plighted, and with- out the consent of British Columbia, could never break one jot or tittle of these cast-iron obligations;" and further stated in answer to (13) It Sir George Cartier, ''Bm the Hon. Minster of Militia, did not pro- pose to increase the taxation of tlie country. Let him then put it in the bargain with British Columbia that no future misunderstand- ings might arise in the fulfilment of our pledge. " The Hon. Mr. Langevin stated, "It was necessary tJ satisfy the Columbians as well as to give confidence to Britisli ca[titaiists, that a period should be fixed for the completion of the rf)ad, but if in seven or eight years it should appear with represeniaiives from that Province, sitting amongst us, that despite our good faith and utmost efforts, it was impossible to complete the work viihin the time named, they could not and would not find fault with us.' The Hon. Mr, Alorris said, "He believed that when the Uiiion should be accomplished, and representatives from British Columbia should sit in that House, there would be no doubt of the Railway being proceeded with as rapidly as the resources of the country would admit." The Hon. Sir A. T. Gait (Opposition), "Considered that a policy of prudence and foresight was more necessary for the future progress of the Do- minion, than the unwise incuning of the obligations now proposed could possibly be. As to the coach road proposed by British Co- lumbia, involving a useless expenditure of money, he maintained that the necessities of the railway, would require the construction of such a road* so that it would have to be made in any case." The Hon. Sir Francis Hincks s dd, "That it was estimated that the Do- minion would have to p ly about a million and a quarter a year; but it was well understood that if insurmountable difficulties arose, the Government could not be supj)osed to proceed to anything ruinous," At the close of the debate, several amendments were put to the House, one from Mr. Jones (Halifax) that the proposed railway engagement wou'd press too heavily on the resources of the Do- minion. Mr. Ross (Dundas) proposed that the question be post- poned. Mr Mackenzie's amendment, which I referred to before, was also put, as well as one from Mr. Dorion, to the effect that, "In view of the engagements already entered into since the Confeder- ation, and the large expenditure urgently required for Canal and Railv.ay purposes within the Dominion, this House would not be justified in imposing on the people of this Dominion, the enormous burden required to build, within ten years, a Railway to the Pacific, as proposed by the resolution submitted to this House." On th? 31st March, 1871, the Hon. Sir George Cartier moved the recep tion of the Report of the Committee of the Whole on certain reso- huions respecting the admission of British Columbia into Union with Canada, and Mr. Mackenzie moved the following: "That hav- ing regard to the vast importance of the question involved in the said resolution, including the obligation to construct within ten years, the Pacific Railway, the cost ti which is estimated to exceed one hundred millions of dollars, lime should be afforded to the people and representatives for consultation before coming to a final (14) decision, and that the said resolutions should therefore be postponed till next session." The Hon. Sir George Cartier, in reply, staled, "If the Railway was practicable at all, everyone would admit ttiat it could well be built in ten years. If there had been any com- plaint, it ohould have been that the time allowed was too short, and in answer to a question of Mr. Mackenzie's, wliat about the obliga- tions ? said, 'suppose the Hon. gentleman undertook an obligation, could he be obliged to fulfil it, if he should be prevented by unfor- seen circumstances .'' ' No one could 1 e compelled to perform an impossibility." The Hon. Mr. Blake replied, "The argument seemed to be, that they could not be compelled to perform impos- sibilities, but an honest man would fulfil an obligation though the result might be bankruptcy." At the close of the debate Mr. Mac- kenzie's amendment was put to the House and lost. I have hur- riedly referred to the debates that took place in tne House of Com- mons in 1871, to show you that what Mr. Mackenzie enunciated, when he came into power, as the policy of his Government, with re- gaid to the Canadian Pacific Railway, was what he and his party had advocated in opposition; and it appears to me, that after all there was very little difference between the policy of the then Govern- ment and the Opposition; th,2 chief fight was on the time limit. The Government of Sir John Macionald said, "British Columbia insists on the 10 year limit, it is in the terms agreed between the Government of the Dominion and the people of British Columbia; they are now submitted to you for approval, and must be accepted or rejected as a whole. The Hon. Mr. Campbell in the Senate, said, " But it is urged, why not include the resolution of which no- lice has |been given elsewhere in the present arrangement. It is unnecessary, in my opinion, but more than that, it would force us ?o send back the whole scheme 10 British Columbia, and open the door for other changes." And so to save a year's delay with the J)ossibility of British Columbians requiring "other stipulatioas," the terms were forced through both Houses. Still there appears to have been an understaiiding that the Railway works should be proceeded with only as fast as the resources of the country would allow, and a resolution was nassed in the House of Commons, as follows: " Re- solved, that the railway referred to in the address to Her Majesty concerning the Union of British Columbia with Canada adopted by this House on Saturday tlie ist of April instant, should be con- structed and worked by private enterprise, and not by the Dominion Government, and that the aid to be given to secure that undertak- ing, should consist of such liberal grants of land, and such subsidy in money, or other aid, vut unduly preying on the induMry and rewurces of (he Dominion, cs the Parliament of Canada shall here- cfler determine.^' I trust I have clearly shown you, in what light I believe our great public work was regarded by the Commons and Senate of Canada, I shall now go further, and read you what one of 1 r (15) the delegates said (our present Lieutenant-Governor) at a compji- mentary dinner given to him on A{)ril loth, 1871, in Ottawa. He had been present during the whole of the debates on the Union question, and in response to the toast of Sir George Cartier — "Our Guest," the Hon, I\Tr. Trulch said with reference to the ten years limitation. " And now, Sir, I speak with special care, as I desire that full weight should be given to every word 1 utter on this point, that is to say, as to the understanding which I had when this clause was framed, and still have, of the intention of this engage- ment by the Domirion to construct the Canadian Pacilic Railway within ten years. "When we came to you in June last, w-e proposed that you should at once build a coach road from Fort Garry to the Pacific, and within three years begin a railway, and we sought to bind you to spend ^ million of dollars annually on the section of this railroad in British Columbia, and to complete its construction with the utmost possible despatch. We fully, understood then, that once the road was commenced, it must be urged toils completion, as a matter of course, as a business necessity, and that instead of $1,000,000 being spent, probably $5^000,000 would be yearly ex- pended in British Columbia. We knew, in fact, that if the road were to be completed at all, it would have to be proceeded with at a far faster rale than a million a year would insure. But there were those in British Colum!>ia who thought that Canada would not un- dertake the work at all, and it was to satisfy their doubts, to secure their adhesion to the scheme, that the guarantee of the expenditure of the $1,000,000 annually was asked. The Government, on con- ference with our delegation, at once expressed their readiness to commence at once the railroad to the Pacific, and to complete it as soon as it was practicable to do so; but the coach road was objected to as an unnecessary expense, in view of the immediate construction of the railroad. We, from British Columbia, were prepared to ac- cept the amendment of the scheme, and we accordingly proceeded to calculate the time it would probably take lo build the railroad, ana we agreed u[;on an estimated period of ten years. If it had been put at twelve it fifteen years, Briiish Columbia would have been just as well satisfied, and if the estimated period had been re- duced to eight years, she would scarcely have been better pleased, but some definite period for the completion of this work, the Brit- t.s/i Columhicnn inKidedon as a necessary safeguard to our colony, in entering into the proposed union. To argue, that any other in- terpretation will be placed upon this railway engar:ement by British Columbia, than that which 1 have given to you as my construction of it — to argue, that she expects it to be carried out in the exact in- terpretation of the words themselves, regardless of all consequences, is a fallacy wliich cannot bear the test of common sense. (Hear, hear.) The case stands thus: Briiish Columbia is about to eater into a partiieisliip wiih Canada, and one of the terms of the articles (i6) of partnership, is, that we a e under the partnership to construct a ruilwav upon certain comhtions. Is British Columbia going to hold her partner to that, which will bring ruin and bankruptcy upon the firm ? Surely, you would think us fools indeed, if we adopted such a course. I would protest, and t'te whole of British Columbia would protest, if the government proposed to borrow $100,000,000 or $150, 000,000 to construct this road; (hear, hear,) running the country into debt, and taxing the people of British Columbia as well as of the rest of the Dominion to pay the burden of such a debt. Why, Sir, I heard it said the other evening, that British Columbia had made a most Jevish bargain with you in these terms, but even Shy- lock, himself, would not exact his pound of flesh, if a portion of it had to be cul from his own bodv. (Loud cheers and laughter.) I am sure that you will find that British Columbia is a pretty intelli- gent communiiy, which will be apt to take a business view of this matter. She will expect that this railway shall be commenced in two years, for this is clearly practicable; and she will also expect *hat the financial ability of the Dominion will be exerted to its ut- most, within the limits of re son, to complete it in the time named in ihc agreement; but, you may rest assured, that she will not regard this railway engagement as a 'cast-iron contract,' as it has been called, or desire that it should be carried out in any other way than as will secure the !>rosperity of the whole Dominion, of which she is to ! e part. (Cheers.) 1 have understood this railway engage- ment in this way from the first, and I still so understand it." " I believed when we negotiated this clause in the Terms of Union last year, and I now believe, that it is not only practicable for this road to be built by a liberal land grant and a moderate money sub- sidy: but that it will be so built, and completed within the estimated period of ten years. But if a mistake has been made in this esti- mate, do not think that British Columbia is going to put a strained interpretation upon it, to her own material injury; that she is likely, as the saying is, to bite her own nose off to spite her face." Mr. Trutch spoke, I believe, the true sentiments of British Columbia then, and those utterances represent the feeling here to-day. So, not only was there the understanding I have referred to, between the Government and the Opposition at the time of our Union, but British Columbia, through her delegate, enunciated the same views. But with all, compile uions have arisen. Mr Mackenzie, on coming into power, saw the altitude the Government of British Columbia had taken with reference to the two years limit, the time at which construction should have commenced; he saw that it was the fore- runner of continued and protracted bickerings between the two Governments, unless an early arrangement was come to. At the general election for the Commons, in the spring of 1874, Mr. Mackenzie slated what the policy of the government would be, with reference to the Pacific Railway; this was accepted by the country, (17) I ,• and he came back to the House, supporteJ by a larje majority of the people's representatives. He then, as you are aware, in order to come to a speedy and satisfactory arrangement with British Co- lumbia, sent an agent of his Government to treat with British Columbia, for an adjustmenj of tlie terms, on a basis consistent with his policy; and in his letter introdncincf Mr. Edgar to Mr. Walkem, said, "I need not, I am sure, assure you of my own sincere desire to d) all I can, tc not only act justly, but generously to Columbia. It is in your interest, and in the interest of the Dominion, that we should both act wiih a reasonable appreciation of difficult es which are unavoidable, and to devise means to remove them or overcome." I do not propose to delay you with a long dissertation on the result of that mission, it is now a matter of history; but the disastrous ter- mination to a very friendly overture on behalf of the Dominion Government cannot but be felt by all of you, when you look around and see that the public works you have been anxiously expecting to be actively progressing, are at a stand-still, and the only parties who have succeeded in holding their own, are the four high salaried members of your Locxl Government; it is to their action in this matter- that 1 wish to call your attention, and I think before I finish I shall be able to convince you that to their selfish policy alone, must this protricted and heartburning uncertainty, which we are now suffering, be attributed. It will be in your recollection, that in the spring of 1874, before the arrival of Mr. Edgar, there had been considerable excitement in Victoria at the action of the local Gov- ernment, with reference to their attempt to place us it a false posi- tion with the Dominion Government by seeking a relaxation of 2 and 12 of the Terms of Union, at a time when it was known that negotiations had to be entered into with regard to our all important Railway clause. The excitement was so great that the populace went in a body to the Parliament building, singing, "We will hang DeCosmos to a sour apple tree, ana then go marching on." They demanded that a petition should be received at the Bar of the House, setting forth their grievances — Parliamentary procv^edings were stopped, the Premier wilted, and dispatched a messenger to the Government House at midnight, to ask the Lieutenant-Governor to order a gun-boat to the harbor, and he proposed to subjugate these rebellious subjects at the cannon's mouth. His forced and hurried resignation, and precipitate flight to Nanaimo, are laughable politi- cal incidents which we shall not readily forget, Mr. Walkem was then called on to form a Government, and perhaps it is not generally known that it was impressed on him very wisely I think, that in case of any alterations of the Terms of Union, the question must be sub- mitted to the peop'.e — and a resolution was also passed in the House, forced by the Opposition, to the same effect. I must ask you to recollect this, as it has, to my mind, an important bearing on the subsequent actions of the local Government. A' 'he close of the (i8) / session, a banquet was given U the members oi the Opposition who had so unitedly and nobly acteJ and saved the Province, being placed in a false position wjih the Dominion Government. Mr Edgar had just arrived in Victoria, and the newly elected members for the Do- minion Parliament were leaving for their duties in Ottawa. Mr. Edgar remained in lb ^ Province for some two months, and as direc- ted by Mr. Mackenzie, endeavored by consulting with leading men in and out of the Government, to find out what would be acceptable to the Province, and was instructed, should no proposition be made to him, to ielcgra[»h what he thought would be acceptable. The course pursued by t' e local Government during Mr. Edgar's stay in British Coluiribia, is very clearly shown in his report to the Domin- ion Government, on his return East. I will now read it to you. "When I received the above letter, I lost no time, and starting upon my journey and leaving Toronto, February 23rd, I arrived upon March yth at Victoria, the capital of British Columbia. On the d V that I landed in Victoria, the Hon. Mr Walkem, leader in local Government, called u{)on me, and I made him aware of the object of my mission. Upon the same day I handed him Hon. Mr. Mackenzie's letter of 1 6th February (Appendix A), also informing him that I had letters from His Excellency the Governor-General to his Honor the Lieutenant-Governor, which were next day deliv- ered. Very soon afterwards Mr. Walkem introduced me to his colleagues, as the representative of the Canadian Government. Upon my arrival in the Province, I found that an intense interest was manifested by all the population in whate^^er related to the ques- tion of railway con^truct'on. It is difficult, at a distance, to conceive the importance thai is attached to the railway by British Columbians. On account of the vast construction expenditure, and the sparseness of the population who would p-riicipate in the immediate benefits derivable from it, an interest of a direct and personal character is lei*, upon this subject. The entiie white population of the Province, according to the census of 1870, was 8,576 souls. Of this number, there were upon the Mainland 3,401, and upon Vancouver Island, 5, 175. The white population to-day has probably increased to 10,- 000. With the exception, perhaps, of the gold miners, who are confined to the mainland, there is no class in the Province, that would not derive immediate personal advantage from the railway construction expenditure. Those in business, in trade, and in agri- culture would feel the stimulus instantly; while those of means and leisure would be enriched by the increase in the value of their pro- perty. The circumstances of the early settlement of the Province, gave ii a population of peculiar intelligence; and the fact that most cf the rougher kind of labor is performed by Chinamen and Indians, lias afforded, in an especial way to the people of Victoria, the Pro- vincial Metiopolis, leisure and opportunity for the fullest discussion of their great question of the day. Their keen intelligence and zeal ^ (■9) V. in public affairs sn^'S^ests a parallel in the history of some of the minor Stales of ancient Greece or Italy. Although a strong feeling of jealousy of the greatness of Victori:i, undoubtedly exists in parts of the mainland, yet, lliat town is the chief centre of public opinion. Its population is almost equal to the whole of the rest of the Pro- vince, and in its mitlst are the hod-quarters of Government, of the courts, of the churches, and o( trade. Within three miles, there is the fine harbor of Esquimalt, with its arsenal and British ships of war. To Victoria, the question of the location of the railway terminus, is all im[)oriant. lecause there is nothing in the terms of Union which settles thai there shall be any [lortion of the line upon Van- couver Island, exce[)t a revocable Order in Council, and the intrin- sic merits claimed for the location, are the grounds ujion which ihey hoped to secure the terminus at Msquimnlt. When it became well understood, that the siuveys were not yet Sv. hr advanced, as to warrant the Canadian Government in fixing the permanent route and "Western terminus of the railway, it w!:'s strongly urged uj)on me, by many persons in Victoria, that the construction of the line of railway should be at onte undcitaking by the Dominion, from the harbor of Esq. imalt to the j)ort of Nanaiuio, on the east coast of Vancouver Island, a dis:..nce of about seventy miles. It was argued, that at whatever point, u{)on the uiainland, the Ricific Rail- way might be brought to the coast, astemi ferry thence to Nanaimo, might be establishetl, and would render th/iiT portion of railway a means of connection wiili Esquimalt, which is said to be the finest harbor upon the shores of the North Pacific. It was also insisted, that from its o[)ening, there would he a considerable and profitable traflic over this line in the carriage of coal to Esquimalt, from the mines at Nanaimo and Departure Bay. Moreover, ii was contended, that in view of i he admitted im-' possibility to complete the coiislruction of the irans-coniinenial rail- way, within the time originally limited, some substantial concessions should be made to the people of the Island, as compensation for their disappointment and pros| cciive losses. A contention, similar to the 1 ist meniioued one, was also pressed upon me warmly, by leading men of the mainlaml, who considered that they were now eniiiled to have some definite undcrsiandmg arrived at, not so nir.ch in regard to tlie ultimate completion, as to the early, vigorous, and coniinuous construction of the railway upon the mainland, It was re[iresented that those engaged in agriculture and stock raising, in the inteiior parts of the countr)-, were almost without a niarkeL for their {)roduce, pailly because the gold miners were leaving in considerable numbers, and partly for the reason that, in anticipation of railway construe ion, they had raised more crops than usual. The great distance to the coast, and the stupendous mountain ranges to be traversed, prevctncd them from gelling the (20) bulky products of their land lo the Is'and mofkcts of Victoria and Nanainio. Iking familiar villi the diiriciiliies to be met with by engineers, in seeking for a lai^^ay routo ih rough ihoir conntry, the mainland people were not diS[)o.sed to blame the Dominion, for in- sisting u{)on further time and surveys before fixing the location. Tiieir immediate necessities also induced them to attach more im- portance to the securing of an early and stf^ady expenditure amongst themselves, than to the maintaining of an arbitrary time limit for conipleiion, while ihcy a'so ex{)ress:ed their perfect appreciation of the agreement, that a vigorous expenditure of itself involves an ac- complishment of tne work within a reasonable period. In the Provincial Couhiiiuiion of Ihiiish Columbia, the working of representative institutions, and resi)orsiblc parliamentary govern- ment, mav be studied in a simple form. Tiie system is elaborated out of, perhaps, slen(ier niaterials, but has Inen couragi.^ous'.y fashioned after the model of the I5ritisli Co isiiiuiion. The people are repre- sented by a House of twenty-live uiendK^s, of wliom thirteen are elected from the mainland, and twelve from the Island. In th's House sit the Ministers of the C^own, four in number, two being Island members, and two from the niainland. The deliberations are presided over by a Speaker, and due respect for the dignity of the Assembly is maintained by a Scrgeant-at-Arms. Although I had not the fortune to be in the country when the House was in session, I was able to discover among the gentlemen who hold seats, a considerable number of much experience, and somewhat above the average intelligence of Provincial legislators. To those accustomed to older Canadian constituencies, each with population varying usua'lv fioni fifteen to thirty thousand souls, it is somewhat novel to see the !?mallness of electoral distiicts in British Columbia. Yet it would be quite unfair to fix the number of elec- tors as the standard of the intelligence of the representative, for one of the ablest of the Provincial ]\lilJi^ters, after an exc'ting contest at the last election, succeeded in polling but sixteen votes in his con- stituency, whilst his opponent suffered a decisive defeat, having polled exactly half that number. The Session of the Provincial Legislature had terminated on the 2nd IMarch, a week before my arrival, and the House had unani- mously agreed to a resolution upon the suliject of the eleventh, or railway clause, in the terms of Union with the Dominion, which was calculated to have an important bearing upon all negotiations with the local Government for a change in that clause. The language of the resolution is as follows: — 'That in view of the importance of the Railway Clause if the Terms of Union between Canada and Biiii^li Columbia being faithfully carried oiu by C;mada, this House is of opinion, that no alteration in the said clause shuulcl be permit- led by the Government of this Province w/'/ 7 ihi; t'omc has ht-en aub- milted lo Ike pviiple for endornalioii.' When I ascertained that the resolution had been passed, that the Provincial Parliament had yet more than a year to run, and that the Ministry had in it a suf- ficient working majority, it at once became apparent that any pro- posals 'o alter the railway clause, could possess few attractions in the eyes of the party in power. While prepared to admit that the Pro- vince would be most reasonable, and would not be disposed to in- sist at all upon the origin d time limit for completion, yet, members of the administration, looking at it from their own point of view, very naturally urge that this was a peculiarly unfortunate time to seek any alterations. I also discovered that the first Act of the Pro- vincial Statute of 1873-4, contained elements of danger to the con- tinued harmony between the General and Local Governments. This Act became necess try to authorize the Provincial to receive from the Dominion, the large sums of money, both for the Esqui- mau graving dock, and for other public works, which the local Gov- ernment petitioned the Dominion Government to advance, and which requests the latter complied with, as concessions to the Pro vince in excess of what could be claimed under articles two and twelve of the terms of Union A saving clause, or proviso, was in- serted in this Act, containing very strong language concerning the rights and wrongs of British Columbia as regards the railway, and adding, "This Act shall not have any force or effect unless the above proviso be inserted, in the same words, in any Act of Parliament of Canada, which may be passed for the purpose of this Act ' A profound anxiety'^St once manifested by Mr. Walkem and his colleagues, to ascerta/n through me, if the Canadian Ministry would propose to Parliament to adopt the words of this proviso. When I sought to get from them some proposals or suggestions, as to their /-/Vii* teHaas of the concessions that should be made to British Columbia, in consideration of a change in the railway terms, I was continually met by an urgent inquiry as to what was to be done about that clause. As early as the i6th of March, I was informed by telegram, that the Dominion Government would not adopt the language of the proviso in their bill, but would make the concessions as origina'ly agreed, and without conditions affecting the railway terms. The announcement of this, was rec<'ived by the local Ministers with alarm and disappointment, and it afterwards became still more difficult to get a satisfactory discussion of an alteration of railway terms with any of them. Orders in Council were passed by the local Government upon the subject, and I was continually urged to press upon the Dominion Government, the anxiety of the Provincial Ministry for the adoption of the saving clause, and I took many opportunities of doing so. 'I'his pressure continued without intermission until the 25th of April, when, at the request of Mr. Walkem, I sent a dispatch to Mr. Mackenzie on behalf of the former, and in his own language, urging the adoption of the saving clause. (22) When, according to inst uctions, T endeavored to ascertain from tlie local Ministers, if ihcir unwillingness to submit | rojwsals as to the railway, lo the people, arc se entirely from our refusal to adoj)! the saving clause; 1 found ihr.t even such a concession would not induce thetn to bring about an appeal to the people. According to instructions receivd, it was in my aim, from the very first, to take every means of ascertaining the popular view of the railway question. Indeed, when it was understood that the Can- adian (Government had delegated me upon this and general matters, the politeness and hixsjiitable attentions of all classes soon rendered it an easy tnaitcr lo form some estimate of public opinion. All were as willing to communicate, as I was anxious to receive their various views and inlurmation. I paid two brief visits to the mainland, meeting with i)eo{)Ic of New Westminster, Hope, Yale, and some few other places, and I was so fortunate as to meet, at one ti i e or another, nearly all the members of the local LegisLiture, and m.iny Other persons of local prominence from the mainland. '["he Lieutenani-Cjovernor and the lion. Caj)t. Hare, Senior Naval Oflicer at Ksquimalt, kindly offered me an Oj)porlunity of visiting the east coast of the Island, in company with them, on loard H.M. S. Myrmidon, .^m./iiw^i In di.scussing the question of the time for the completion of the tlHre-fet-Uu: railway, I elicited a very general expression of opinion, that there was no great importance attached to any particular period for conii)leiion, but that serious disappointment had been felt at the failure to commence the work of actual construction by July of last }car. Much anxiety was felt for an announcement of the policy o? Canada upon the subject of the railway, and an extreme desire pre- vailed to liave a definite understanding arrived at as to what the Pro- vince could expect, in place of the original railwy terms, which were all but universally admitted to be incapable of li eral fulfiment. The public agitation in Victoria of P'ebruary last, mighi have been mistaken for a movement to insist upon 'the terms, the whole lerms, and nothing but the terms,' or to seek some disloyal allerna- live. IndeeJ, a portion of the community, who did not sympathize with the excitement, so interpreted it. Yet, 1 was assuied by the leaders of that agitation, that no such motives or intentions influ- p t'nem. The people had b< en roused, by what were deemed circumstances, to fear thai efforts would be made, or were vde, to secure from the local Government an agreement to ch he railway terms witlout a submission to the people, who ha,„ ^ucctly sanctioned the original terms. The local contradictions had scarcely been accepted as satisfactory upon this point, but my denial of it on the part of the Ottawa Government, coupled with the announcement that the latter would not seek to secure any alter- ation V iihout the sanction of the people of the Province, set that dilLcuuy very much at rest. (23) Nolwiihslanding the altitude lliat was assumed by the ProvinciaJ Governniem against the submission of a proposal, or the opening oj negotiations to alter the railway terms, it was quite appireni that popular feeling, all over the Province, was stron jly in favor of sovhq definite settlement bf.'ing arrived at upon the question. The notor- ious and admitted failure of the original scheme of railway con^uc- tion, had unsettled the business of thecountry, and the whole am. munily, including even those who wouKl have been the most exact- ing in bargaining with Canada for new terms, were anxious to havq a proposal made, and to have a full opportunity of discussing and accepting or rejecting it. I felt, therefore, that I should lake an early oppoiiunity of arriving at the views of the local Government upon the subject I was given an appointment by Mr. Walkem in the first week of April, and thei> confidentially discussed with the INli.iistry, the whole question of alteration in the railway terms. I may mention, that upon this oc- casion, no dittkulty was raised as to my authority to represent the General Government. At this time there was considerable irritation di^|)layed by Alinis- lers upon this subject at the saving clause, before alluded to; they would not admit any necessity for a present settlement of the rp.il- way question, but still persisted, that next year, or some lime, should be awaited for the making of any such pro[)ositions; and they were particularly careful to avoid saying what concessions, in iheir opin- ion, would be acceptable to the i'rovincein lieu of the original terms. The attitude of the local Ministry, rendered it more important than ever, that the popular feeling should be accurately ascertained, and it was my aim to discover it by unreserved discussion with as many men as possible of the differeni parties and localities. It was now quite apparent that the local Ministers were deter- mined to be obstructive, and it became all the more necessary to satisfy the people in so far as their views were found to be reason- able. After receiving from me the best information I could supply, Hon. Mr, Mackenzie directed me to make tue Provincial CJovern- ment certain pr'>posals, which were so arranged as to give large and certain advantages to the mainland, eqrally with the Island, and on the 6ih May, 1 was instructed to put them formally in writing and give them to the local Premier, and a copy to the Lieutenant-Gov- ernor. Upon the 8th May, I had prepared, and I read over to Mr, Walkem, the letter of that date, containing the proposals (Appendix B), and upon the following day I handed it to liim, and furnished a copy to His Honor the Lieutenant-Governor, as directed, accom- panied with a short note (Appendix C). I had made arrangements for another vibit to the mainland, to ascertain something more of the feeling there, while the Provincial Government were having the proposals under consideration. Before sailing foi New Westmin- ster, however, I received the letter from Mr, Walkem (Appendix D) i I (u) in which he raised objections to recogniz'ng me as the agent of ihe General Govcinmeni. It struck me as so peculiar a coninuinica- lion on Mr. Walkcni'-j part, after he and his colleagues had recog- nised me as such agent, almost every day for two months, that 1 felt it woald be belter not to be too hasiy in accepting that as a serious Biid final reply to the proposals, but to await the lapse of a few days to l;e occupied by r c in visitinsr New Westminster, Burrard Inlet, and some other pi. I cs on the mainland. Upon returning to Vic- toria, on Saiuiday, i6ih !\1av, I was wailed upon by a deputation of leading genileiuen, connected with both sides of local pc'llics, who inft^rmed me thai it had been announced in the House of Commons at Ottawa, bv Hon. I\!r. Mackenzie, that proposals had been made, on behalf of his Ministry, 'hrough m\self, to the Provincial Govern- ment as to the altera'ion of the railway termi,; and yet, that it was denied by members of the local Ministry, and by their newspaper organ, that any propo.sals whatever had been made. They repre- sented thai the p()[>ular feeling was very much e.xcited upon the sub- ject, and that the people ucie an.xious to have the earliest opportu- nity of consideiing and deciding upon the question, and I was asked to infoiu) them whether such proposals 1 ad been made. Upon re- ceiving an adirmaiive reply, they took their leave, and shortly after- wards, as the inielligt-nce hpicacl, considerable excitement was man- ifesteiJ at the ticainit'nt die projiosals vere receiving at the hands of local Ministers. in order lo afford Mr. W'alkem another op;)ortunily to reply to the proposals, or to consider them, if he were at all desirous of doing 6o. I again addressed him. and in a letter of i8tn May (Af pend'x E), endeavored to | )'un out th.it he could not ignore the communi- cation of 8lli May. and reiterated the request on behalf of the Gov- ernment of Canada, tii.U the proposals should receive the consider- ation to wiiich they were eniided. In reply to th;s, 1 received the letter (Appendi.x V) and uj)on die lyih Ma), under directions from H>n. Mr. Mackenzie, I leit Victoria upon my return journey, with- out any further official communication with the local Ministry. I may be permiiied to mention that His Honor the Lieutenant- Governor, throughout the whole of my visit, was always most oblig- ing in giving me, upon all public questions, very full infoimation, which hk large cxpeiience in the Piovince, rendered of the highest value. He also manifested an earnest wish to see a definite and amicable settlement of the railway qucrlion . peedily arrived at be Ivveen the General and Provincial Governments In accordance widi the direction contained in the ''^Jt paragraph of Hon. Mr Mackenzie's letter to me of the iQlh February, I took every opportunity, during .i y stoy in British Columbia, of noting various matters connected with Dominion business and interests. In several despatches to Heads of Departments, as wrll as in verbal communications with Ministers, I have already called* attention to (25) some impoitant subjects of that kind, and I propose to have the honor of communicating in separate reports, or desjatches, upon seveial other points of interest and importance, conircteJ with Do- minion af!'airs in the Pacific Province. I have the honor to be, Sir, Your obedient servant. (Signed,) J. D. Edgar." I contend, gentlemen, that nothing has transpired from that day to ihjs, to alter the view taken by Mr. Edgar, viz: tliat the only reason that prevented Mr. Walkem from n .goiiaiing with Mr. Mackenzie, was his fear of facing the country. TliC quibble about credentials, did very well to play off on a few of the prominent lawyers in Victoria, who took every opportunity of stating that " Walkem was light in his la-w," but that gentleman did not dare, while extended at the foot ot the throne, to raise that objection, such trickery would not go down with a high-minded statesman like Lord Carnarvon, for when ne gotiations were going on with that gentlemen, he admitted that Mr. Edgar had made the proposals on behalf of the Canadian Govern- ment. It was plain to these gentlemen in pcsver that it would be fatal to go to the country, the present House had been in existence three years. When it was elected, no matter of such vital import- ance \vef€ before the country, as has lately occupied the attention of the public, and very little interest was taken in the election; men nnfortunately were returned who proved recreant to their trust, when the time of trial arrived, and many mainland members had been so manipulated by Mr. Walkem that they were always found opposed to your interests, and in favor of Victoria; and the Premier himself, who was supposed to represent a mainland constituency in ths Cab- inet, as you know by his actions, has proved himself to be anything but the friend of the mainland. On my return to Victoria, in the spring of 1874, Mr. Edgar had just left for the East; Victoria was in a state of cxcite.i;ent. The local Government had determined on petitioning Her Majesty, and a vote advocating it was passed by the "Preservation of Terms of Union League," at a meeting packed for the purpose, at the instance of the local Government. The inainl?n(j, and many on Vancouver Island, opposed it, but the op- portunity for a pleasant Mip and a little notoriety, could not be lost by Mr. Walkem. The mission resulted, as you are aware, in noth- ing — in fact, it was a miserable failure Lord Carnarvon, after hav- ing received an assurance from ihe local Government, that they ac- cepted his offer to arbitrate between the two governments on the question in dispute, upheld the policy ot the Dominion Government, Suggested terms if anything inferior (certainly to the mainland,) to those previously offered by Mr Mackenzie through Mr. Edgar, and is that to be wondered at, when we find Mr. Walkem opposing to the utmost, any public work in your section of the country, which w^ (36) had the appearance of itrengihening the adoption of your railway route. In order to prove this to you, I arn compelled to go back to the Edgar Mission: "To avoid possibly tedious correspondence," Mr. Mackenzie sent an agent, authorized to lay a certain proposition before cu: Government, for ihc relaxation of the Railway terms, and the cl mt.e to which I wish to draw your attention, is that proposal which aflFects us most; it i^ the clause that was introduced (so I am informed) at the instance of the known fr ends of the d'itricts to the East of the Cascade Range, and I propose to follow i he discussion that arose from it beiweeii Lord Carnarvon, the Canadian Cabinet, and Mr. Walkem. It i.*- dated, Viciona, May 8th, 1875, and reads thus: — " The (jovernment have alrcadyasked Parliament for a large sun.', for the | urj oi-e of carrying on the;