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 RELATING TO THK 
 
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 MISSION o!i"i HON. A. De COSMOS. 
 
 — TO— 
 
 LoncLori, irz 1881, 
 
 TO- 
 
 SUfPORT THE PEIITION OF THE LEGISLATIVE mEMBLY, 
 
 -TO- 
 
 Her Majesty the Queen, 
 
 RESPECTING THE CONSTRUCTION OF THE 
 CANADIAN PACIFIC RAILWAY 
 
 -IN- 
 
 BRITISH COLUMBIA. 
 
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 SI 
 
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 PAPERS 
 
 RKLATINCJ TO 11 1 1: 
 
 . 
 
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 MISSIONo^HON. A. De COSMOS, 
 
 ro- 
 
 LoixdoTi, in 188.1, 
 
 -TO- 
 
 SUPPORT THE PETITION OF THE LEGISLATIVE ftSSEMBLy, 
 
 -TO-^ 
 
 Her Majesty the Queen. 
 
 RESPECTING THE CONSTRUCTION OF THE 
 CANADIAN PACIFIC RAILWAY 
 
 —IN— 
 
 BRITISH COLUMBIA. 
 
 It 
 
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 I 
 
 PETITION OF LEGISLATIVE ASSKMBLY 
 
 Oh- BRITISH COLUMBIA TO THE QUKKN, RKSI'ELTING CANADIAN I'ACIFK.^ 
 
 RAILWAY, MARCH 25, 188L 
 
 To the Quc(m'n Most Excrllenl Majesty, 
 
 Most GnAciouH Soveheign : We, Your Majesty's most dutiful and loyal 
 subjects, the Members of the Legislative Assembly of the Province of British 
 Coluiabia, iu the Fourth Session of the Third Parliauieut assembled, humbly 
 approach Your Majesty f(jr the purpose of representing — 
 
 1. That the Province was mainly induced to enter into the Dominion 
 Confederation in 1871, by the offer and agreement on the part of the Dominion, 
 as appears by the Treaty of Union of that year, to construct and complete a 
 R ulway on or before July, 1881, through British Territory, connecting British 
 Columbia with the Eastern Provinces, 
 
 2. That, on the 31st day of July, 1874, the Government of this Pro- 
 vince ]n'eseuted a humble Petition to Your Majesty respecting the non-fulfill- 
 ment by the Dominion of its Railway obligations towards British Columbia, 
 a.sarecontainfidiuthe Treaty of Union between the Dominion and British Co- 
 hiiubia, assented to by Your Majesty in the year 1871. 
 
 ;). That negotiations theroiiijon ensued, which resulted in Your 
 Majesty's Principal Secretary of State for the Colonies (the Earl of Carnarvon) 
 signifying bis decision v)n the question in dispute, which decision, it is impor- 
 tant to oljserve, was assented to by the Dominion Government. 
 
 •1. That the following, amongst other conditions, form a part of this 
 decision: — 
 
 a. " That the Railway from Esquimalt to Nanaimo shall be commenced 
 " as soon as ])()ssible, iind completed with all practicable dispatch. 
 
 /). " That $2,0U(»,{J00 a year, a-ul not $1,500, 000, shall be the minimum 
 " expenditure on railway works within the Province from the date ut which 
 " the surveys are sufficiently completed to enable that amount to be expended 
 " on construction. In nan)ing this amount I understand that, it being alike 
 " tiie interest and the wish of the Dominion Government to urge on with all 
 " si)eed the completion of the works now to be undertaken, the'annual expen- 
 " diture will be as much in excess of the minimum of l{!2,000,000 as in any year 
 " may be found practicable. 
 
 c. " Lastly, that on or before the 31st December, 1890, the railway 
 " shall be completed and open for traffic from the Pacific seaboard to a point 
 " on the western end of Lake Superior, at which it will fall into coi.nec- 
 " tion with tlie existing lines of railway tlivough a portion of tlie United States, 
 " and also with the navigation on Canadian waters. To proceed at i)reseut 
 " with the remainder of the railway extending, by the country northward of 
 " Lake Superior, to the existing Canadian lines, ought not, in my opinion, to 
 " be re(piired, and the time for undertaking that work must be determined' by 
 " the development of settlementand the cluiuging circumstances of the country. 
 " The day is, however, 1 hope, not very distant when a continuous line of Rail- 
 *' way through Canadian territory will be practicable, and I therefore look 
 " upon this portion of tlie scheme as postponed rather than abandoned." 
 
 5. That owing to the total disregard by the Dominion of these and 
 other conditions contained in tlie Settlcmen't so efi"ected, the Legislative 
 Assembly, early in the Session of 1876, unanimously passed a humble Address 
 
to Yoiii MiijciNtv. i.ravin- tlmt Your .Miijohty wouM bo gnunouHly pleuHiul to 
 Cftusc tlio Donimidii (lovoninioiit to curry out the aijfriioniont ubovo reforroil to. 
 C. Tlmt ill reply to tlio Hiiiil AddroHS, Your lUiijcHty'H Bind Socrotiuy of 
 State was iileiiHed to ii.lvise the Province to Hubiiiit ti, luilwiiy cnnHtrtictioii bo- 
 \u^ d.'ferrcd until tlu^ Sprint,' of 1H78, in order to enabl(f the Dominion Gov- 
 eriinieiit, durin-,' the your 1877, to solve Home doul)tlul pointH connected willi 
 the ruihv'ay route ; uiid that the deluy mentioned wuHconcedc'd in .lef(!iencG to 
 His Lordship's wishes, without prejudice, however, to the rights of the 
 
 Province. ., t • - 
 
 7. That, the Dominion (rovernnient huviiif,', uj) to the month of Au<,'UHt. 
 IK7S, fuilcd to commence Kuilwav construction in the Provincje, tlu! Le^(isliitive 
 Assembly, on the ;U)tli of Au;,'ust of the sume yeur, further humbly addressed 
 ■Your aiujesty on the subject. . . i r ,v i 
 
 8. That, for the purpose of avoidinj,' needless repetition, and of allonl- 
 in«' Your Majesty the fullest iuformatiou on this subject, Your Petitioners 
 crave leave to refer Your Majesty to the contents of the above-mentioned 
 Addresses presented to Your Majesty, and to the several documonts therein 
 
 referred to. , , , ,• 
 
 {). That, in the Spring of 1880, the work ot construct-on was com- 
 menced by the Dominion in the interior of the Province, but not from its sea- 
 board, or between Esqiiimalt and Nanaimo. 
 
 10. That it is believed that urningemcnts have hvtely been made 
 between the Domion and a Syndicate, or Company of capitulists, for tlx! (-(mi- 
 struction of the Canadian Pacirtc Kiiilwuy l)y 18'J1 ; which ariungcMuents in- 
 clude about 500 miles of Kailwuy North of Lake Superior, but exclude the 
 section of 70 miles of Kuilwav between Esquimult and Nanaimo. 
 
 11. Tliut, under the Treuty of Uiiioi,, it was expressly stipulated and 
 agreed that railway construction should be commenced from the seaboard of 
 tiie Province ; and under the settlement elVected in 1874, it was, as has been 
 shown above, also expressly stipulated and agreed that the section of the rail- 
 way between Esquimult and Nanaimo shoukl l)e constructed and comi)leted 
 with all practicable dispatch, and that construction of the line north ol Lake 
 Superior should be deferred until after the compleiicju of the railway coic- 
 muuication between the sealioard of the Province and Lake Sup(;rior. 
 
 12. That, although the Dominion Government has never questioned 
 the ri-'lit or claim of the Province to have the railway comnK^nceil from its 
 seaboard, and has moreover acknowledged that the Province is entitled to 
 have th!) section of the line between Esiiuimalt and Nanaimo <!onstrucled, yet 
 no provision has been made by them for the fulliUment of these portions of 
 
 their railway obligations. ,...,,,, ,• n i 
 
 13 That by the Treaty of Union, British Columbia was allowed 
 to retuin its own tariff until the Camulian Pacitic liailway should be com- 
 pleted but believing in the good faith of the Dominion, and being desirous 
 of ])romoting confederation in its true sense, the Province surrendered it.s 
 tarilV in 1872, and adopted the tariff Df the Dominion. 
 
 14 That since th« Province adopted this course, the tavill ot tlie 
 Dominion has been largely increased, to tie serious injury of British Colum- 
 bia upon whom increased burdens have been thereby placed, without any of 
 the compensating advantages which are, m conse.iuence ot such mcreaso, 
 enioved by the eastern Provinces of the .dominion. , ,,, , __ 
 
 15 That the time originally agreed u|)(.n in the ireaty or Union, for 
 constru<'ting the Canadian Pacitic lluilway, will expire in July ot this year 
 without the terms thereof, as to railway eonstrucliou, having been even ap- 
 proximately fulfilled, no portion of the Canadian Pa.ulu- llaihvuy having up to 
 the present time, been constructed and eciuipped in ihc. Province 
 
 1(1. That, under the circumstuuces herein and in the said addresses set 
 forth, Your Piititioiujrs humbly pray— 
 
 [J^ I 
 
 fj « 
 
 I* I 
 
I' I 
 
 {(I.) Tliiit, Yt)ur MiijCHly will \m <jriuM<>UHly pltmnod io <!iiiimo tlio Domin- 
 ion (lovonmiciit, to l)«i iiiovdd to curry out tlioir ruilwiiy <)l)li;,'iiti()ii8 
 to till' ProviiicK, by providiiijj for tlio iiniiuiditito (!oiuin(»ii(!tMuont 
 mill iictivo proHCdutioii of milwiiy work on tlio Hoctioii of tlio Cnn- 
 luliiui I'iK'ilic lluihviiy lyin^,' between EHquiniiilt and Niiniiinio, and 
 by conHtructin^i tho portion of line between Port Moody and 
 Yale : 
 
 (/».) That the Province bo permitted to regulate nnd collect its own 
 turilT of custoniH and exciwe until tliroiifjfh communication by rail- 
 way be cHtabliHlied tliruugli Jiritish Territory with the eaHteru 
 ProvinccH : 
 
 (f.) That in any event compensation be awarded by tho Dominion to 
 the Province for the Iohhch inflicted upini tho latter by reason of 
 the breaches of ugroements and delays herein referred to. 
 
 Anil Your Petitioners, as in duty bound, will ever pray. 
 
 FREDCK. WILLIAMS, 
 
 Speaker of Legislative Anaenihlij. 
 
 VioTOKiA, BuiTisH CoLUMiiiA, March 25th, 1881. 
 
 U'« 
 
 I* t 
 
 Hon. a. D. De Cosmos, to Secretaiiy of Statk fob the Colon'ifs. 
 
 London, .Tunc 15th, 1881. 
 
 My I.oki) : During otir iiuorvicw yenter<lay. your lionlship read to inc, with tiie object 
 of placing nie in pOMMOssion of tin; views of the Canadian (Joverninent, the Order in Council, 
 transmitted to you l)y tiie (iovernor-Ceneral of Canada, reporting upon tlu! I'etitioii of the 
 Legislative Aasendtly of lirit'sii (Jolunil)ia to the t^ueon. 
 
 For tills favor — showing the disposition of tier Majesty's Government to act impartially 
 in the matter in dispute between Jiritish Columbia and C/anada — 1 have the honor to olFer my 
 sincere thanks. Hut, as I cannot <lepend on my recollection of the contents of the Order in 
 Council, so as to frame an answer thereto, and as it is imjiortant that a rejily to the statements 
 contained tlu^rein should be sui)niitted for your consideration, I have the honor to reijuest you 
 to f.'ivor ine with a cojiy of the Order in Council referred to. 
 
 On this occasion, however, 1 have the honor to state, for your Lordship's information, 
 that it is the desire of the (Joverntnent and Legislative Assend)ly of Hritisli Columbia, that the 
 existing dispute respecting the non fulfillment of th : agreement made by Canaila to construct 
 the Canadiim I'acitic Railway in accordance with the 11th .Section of the Ternis of Union 
 between that Province and Canada, and the Supplementary Agreement through Lord Carnarvon 
 in lS7t, should be linally and satisfactorily settled through Her Majesty's (iovernment. But 
 1 have further to state, that no settlement can be final and satisf.ictory to the Province, unless 
 it shall include provision "for tiie immediate commencement and active prosecution of railway 
 work on the section of the Canadian Pacilic liailway between Ksiptimalt and Nanainio, and by 
 conatructing the portion of tiie line between Port Moody and Vale,'' and also, "compensation 
 for losses iiillictetl " <in tiic Province, " by reason of the breaclies of agreements and delays," 
 referred to in the Petition to the yuecn. 
 
 L take occasion to further remark, for your Lordship's information, that the Petition to 
 the Queen was passed in a full Hcuise by a majority of twenty (of which the lecognized leader 
 of the opposition was one) to a minority of four ; that the majority of the Legislative Assembly 
 represented nearly the entire civilizt:d population of the Province, embracing almost the whole 
 wealth and industry of tiie country ; and that the minority expressed themselves in favor of 
 urging the Dominion (Joverniiient to construct the Esiiuinialt-Nanainio section of the Canadian 
 Pacilic Railway under the "t'arnarvon Terms.'" with compensation for delays. Virtually, the 
 
 { 
 
T 
 
 I<c'j{iHlutivt' AhncihIiIv wiTf iinaiiiiiioUM; fhc iimin ilifl'iMciicti in 'ipiiiion t)i:iin?, ah to whether 
 iiogotiatioiiM mIiiiuIiI I)<< i'(iiitiiiiu<il iit Ottawa, nr i» )>t'titiim Huiit ti> tlm (^in'cii, 5> . d 
 
 I (l.iftr any fiirtlur olwrrviitioiiH until I hIwiII liiivu rcuulvi'd your Lordnhiit'M reply to my 
 ro(jUf«t for a copy of th»' Onlcr in Couuril ivforn-il to. 
 
 1 hftvc the honor to hv, My Lord, 
 
 Your iiiunt obudisiit Burvaiit, 
 
 A. Hk cosmos. 
 
 To TlIK TlKillT Hon. 'I'lrKflAHI, OF KlMBKnl.KY, 
 
 The I'rincipal StHTi't«ry of .State for the ColoiiioB. 
 
 t''; • 
 
 John Buamston, Ehq., to Hon. A. De Cosmos. 
 
 Dow NINO Sthekt, '20th ,Iuno, 1881. 
 
 Riri ; I am dirocteil by tlii" K.irl of Kinihorlcy to ackiiowltdge tln' rccciiit of your letter 
 of the inth instant, niiiitinj,' to tlu' ("anmli.ui I'acitic IJailway <|Ut'stion. 
 
 Lord Kimlicrlcy dcsircn nil- to tian^niit to yon in coiiii.liaurc with your apiilication — 
 a copy (if till! Report of tliu I'rivy Couni'll of ("auada, datid the li»th of May last, up<m the 
 recent I'etition to tho t^ieen fniui tlio LegiHlativo .XsHeniMy of tin; I'rovinee of ItritiHh Col- 
 umbia. 
 
 I uui, Hir, 
 
 Your oVicdient Hcrvant, 
 
 tjSigned) JOHN BRAiMSTONjj 
 
 I 
 
 COPY OF A REPORT 
 
 OF .\ t^OMMITTKE OF TlIF, H()N()i;.\I!LK, TlIK I'HIVY OOUNCIL FOR CANADA. 
 
 ArritovKD r.v hi.s kxcfllkxcy, thk covkrnok cenkral, 
 
 ON THK Utiii day of .MAY, 1881. 
 
 The Cornmitlefi of the Privy Council have had niulcr coiisideiation tho 
 letter addressed bv Mr. De Cosiuo's, on behalf of the Governnifnt of British 
 Columbia, dated the 13th instatit, to Sir Joliii McDonald, rei)resentiiifr the 
 importance of constructino; the Esqiiimalt and Nanaimo liailway on the Ishind 
 of Vancouver, and they have had also before them a copy of the Petition to 
 the Queen, which the Legislative Assembly of that province directed, on Iho 
 29th of March, shotdd be forwarded for presentation to Her Majesty. 
 
 On these papers, the Committee humbly submit to your Excellency as 
 
 follows: . 
 
 1. One of the terms upon which British Columbia, in the year 18(1, 
 entered into the Union of Her Majesty's North American Provinces, was as 
 follows : 
 
 " The Government of the Dominion undertake to secure the commence- 
 " ment simultaneously within two years from the date of the Union of the 
 " construction of a railway from the Pacific towards the Rocky Mountains, 
 " and from such point as may be selected, east of the Rocky Mountains, towards 
 " the Pacific, to connect the seaboard of the British Columbia with the railway 
 
 ^1 
 
T 
 
 I ' I 
 
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 " Bystom of Canada, ami furtlior to Boouro the coniplotion of Huch railway 
 " within ton yoarH from llic dato of tlut Union." 
 
 2. On tho Cilh of Juno, ISTU, in viow of tho tlion iiro'tiiMlily of the 
 railway running,' by Hiito Inlut, an Order in Council wuh puHscid doidarinf^ that 
 EHquinialt Hhould l)c tho torniinuH of tho railway on tho I'aoilh! (-oaHt, hut tho 
 alignment on tho mninliind wan at that timo wholly iindotorniincd. 
 
 In May, Ih7h, tho (iovo-ntuont, on incrouHod informaliofi, dotormined, 
 however, to neleot Burrard Inlet an tho objootivo point o'l the Pacilic Coast, to 
 1)0 niaohod by the railway, and they can'jcUed tho Order relatiii;,' tt> Ksciuimalt. 
 Slill further oxuininationH wore, however, doomed nocoHHary, particularly with 
 roforonoe to tho uilvantaf,'08 of a .still more northern route whicli hIiouUI term- 
 inate at l*orl 8imi)Hon, and to keep the whole* <pieHlion entirely free \intil adili- 
 tional exploratory Hurveys Hhould bo nmdo. The Order in {Council of June, 187!J, 
 was, in April, 187'.), revived and eontiuued in foreui until October, 1871), when 
 the HolectioM of IJurnird Inlet wan liiially made aw the teriiniinis on the Paeitio 
 Coast of the Canadian Pacitu; Kail way, rendering,' unnecessary the lino between 
 Nauaimo and KsquimaU as a condition of tho Union with IJritish Columliia. 
 
 3. In 187-1, Her MajoHty's Principal Secretary of Slate for the Colonies, 
 havitifj had tlio matter submitti'd t" him, had su<^';,''cHtcd " to componsate 
 "British ('olumbia for past, and probablo future delays, " wlial, liavc since 
 beconie known a.4 " Lord Carnarvon's Terms," which pcovided, amonfjst other 
 thingH, that " the railway from Esrpiimalt to Nanaimo sliouUl be commenced 
 " as soon as possible and complott with all practicable dispatch," but this 
 was not necessarily a part of tho Canadian Pacilic liailway aii<l net esscutial 
 to the fultillment of tho conditions of tlie Union wiiii British ('oluml)ia. 
 
 These terms were the suggestions of the then Secretary ol' Slate for the 
 Colonies, made for the ])urposo of quieting tho ditTorences which had arisen 
 between tlie Goveriinieiit of tlio Dominion and the Province of Bi ilish Colum- 
 bia, growing out of the long delays in commencing works of construction; and 
 wliich had formed tho subject of continuous and acrimonious complaint, on 
 tho part of tho Province. Lord Carnarvon's snggestions were entitled to every 
 respect; but, although adopted by the (lovernment of the day, the}- never 
 received the sanction of the Parliament of the Dominion, and never acquired 
 the force of a national compact. 
 
 4. On the contrary, in tho session of 1875, with the vIl w of seeking to 
 give efl'ect to these "terms," a Bill having been introduced by the Government, 
 into the Canadian House of Commons, providing for tho construction of the 
 Esquimalt and Nanaimo lino — a step which would not have been necessar}', 
 it may be observed, had that line proved necessarily a port of tho Canadian 
 Pacitic Railway — the Bill, though passed by the House of Commons, was lost 
 in the Senate, and consequently parliaraentry sanction, refused to tho con- 
 struction of what w!is regarded by tiio majority in the Senate, as a ))rovincial 
 work, quite unnecessary to the fullillmeut of tho terms of Union with British 
 Columbia. 
 
 5. Tho necessity of extended examination of the different possible 
 routes for a line of railway, running across a continent, and as to long dis- 
 tances through very ditBcult country, caused much time to be occupied iu 
 exploratory surveys — tho difficulties attending the selection of the pass, through 
 whicli to cross tho llocky Mountains — and of settling the best lino from thoir 
 summit, to tho Pacific Coast, and tho selection of the terminus on that const; 
 all tended to ])rolong tho period, before works of construction couid prudently 
 be begun. The inngnitude of these preliminary difficulties may be estimated, 
 when it is stated, that the cost of the exploratory and ])reliminury surveys, has 
 reached the sum of three and a half millions, ($3,500,000); but the absolute 
 neccssitj' of exhaustive examinations for tho best line, including all consider- 
 ations of topography and soil, before embarking iu tho construction of so 
 gigantic a work, will be admitted. 
 
8 
 
 6. Within the last year a contract Las been enteiod irto, and received 
 the simotion of the Cauadiau Parliament, fur the construction of the whole 
 Pacific Railway, from the end of the existiiig system of Canadian Railways, at 
 Calhnder Station, near Lake Nipissing, about 250 miles from the capitol of the 
 Don.iuioi), to Burrard Inlet, on " the sea-board of British Columbia, " involving 
 p.n expenditure of about 53,000,000 dollars in money, and 25,000,000 of acres 
 of land. Contracts involving a sum of about 8,000,000 dollars, have been given 
 out in British Columbia, and work is being vigorously pressed in that Province, 
 and the Government itself, haoi underti'.ken the construction of tho section of 
 railway, extending from Yale to Burrard Inlet. 
 
 7. Every guarantee ha'' thus been afforded to the Province of British 
 Columbia that the terms of the Union will be carried out at the earliest prac- 
 ticable day. 
 
 8. Parliament has not authorized the construction of the Nanaimo and 
 Esquimau line, and, in view of the large expenditure involved in the build- 
 ing of the Canadian Pacific, from Callendar station to the Pacific Ocean, at 
 Burrard Inlet, it is not probable that it would do so. 
 
 The Committee desire to observe that there exists in the adjacent waters 
 of ihe Str^'.its of Georgia, sheltered water communication open all the year 
 around quite adequate to the needs of the population of the Island. 
 
 9. As regards tho prayer of the proposed petition to Her Majesty : "That 
 " the Province be permitted to regulate and collect its own tariff of customs 
 " ai'd e;cise, until through communication by railway be established through 
 '■ Bri'ish territory with the Eastern Provinces." The Committee of the Privy 
 Council desire to observe that this request involves a breech of the terms of 
 Union and the virtual servorauce of British Columbia from the Dominion. 
 
 10 It will be seen by official statements hereto annexed, that an expen- 
 diture in the Pro%ince since it entered the Union has been made by the 
 Dominion of ^5,'.)!)0,289 against which the receipts have been $4,173,238 (and 
 this expenditure is entirely irrespective of disbursements on account of the 
 railway.) 
 
 The Committee advise that a copy of this Repcu't be forwarded with 
 the Petition, to v'lich it refers, to Her Majesty's Principal Secretary of State 
 for the Colonies. 
 
 [Certified. 
 
 (Signed), J. O. COTE, 
 
 Clerk Privy Council, 
 
 Canada. 
 
 STATEMENT OK PAYMENTS 
 
 In the Province of l>itisli ('oluiiil)ia. from 1871 to 1880 inclusive, with exception of payments 
 iride on account of I'acilic Railway, us prepared hy the Financial Inspector. 
 
 Year 1871-2 .\ ? 481,330 
 
 " 1872-3 037,544 
 
 ^' 1873-4 717,348 
 
 " 1874-5 741,909 
 
 " 1875-G 750,082 
 
 " 187(;-7 - G81,73G 
 
 " 1877-H 008,085 
 
 " 1878-9 082,344 
 
 " iS79-80 v.. 035,311 
 
 t^J 
 
 t:i 
 
 15,99(5,289 
 
 ^^ 
 
{ 
 
 STATEMENTS OF RECEIPTS 
 
 In the Province of British Cohimbia, from the year 1871 to 1880 inclusive, as prepared by the 
 Financial Inspector. 
 
 Year 1871-2 $ 356,099 
 
 " 1872-3 381,711 
 
 *' 1873-4 387,146 
 
 " 1874-5 455,914 
 
 " 1875-6 544,952 
 
 " 1876-7 456,976 
 
 ' 1877-8 493,756 
 
 " 1878-9 579,144 
 
 " 1879-80 517,540 
 
 $4,173,238 
 
 *- i 
 
 Hon, a. De Cosmos, to Loud KiMBEBLEy. 
 
 Tavistock HoTKL, June 25th, 1881. 
 
 My Loud : In reference to your inquiry respecting the views of the Members of the 
 Canadian Comnidus, belonging to the Continental Section of British Columbia, as to the con- 
 struction of a Railway on Vancouver Island .as part of the Canadian Pacific Railway, I tako the 
 liberty to send you the following extract from the Common's Debates (ofiicial) of Canada 
 durii:,'- the recent session, January 24, 1881, Mr. Mclnnes, M. P. for New Westminster, said: 
 << ♦ '» ♦ J believe, however, that the people of the Island have a strong claim on the 
 " Dominion Government for the construction of their road, and I have no doubt, if they exercise 
 patience as we did. they will get the road." 
 
 I have the honor to be. My Lord , 
 
 Your most obedient servant. 
 
 To The Right Honorable 
 
 The Earl of Kimiikuley, &o., &c. 
 Colonial Office. 
 
 A. Dk COSMO.S. 
 
 K% 
 
 Hon. a. De Cosmos, to Loro Kimberley. 
 
 London-, July 28, 1881. 
 
 My Loud : Adverting to my letter of, the l.'ith of June, I have the honor to submit for 
 your Lordship's consideration a Memorandum on the Ru|)ort of the Privy Council of Canada 
 on the recent Petition of the Legislative Assembly of British Columbia to the Queen. 
 
 The very full details therein, render it unnecessary for me to enlarge on the subject in 
 support of the "Petition, except as to what I believe to be desirable, in order to secure a final 
 and satisfactory setHemuut of the dispute between British Columbia and Canada respecting the 
 construotii-n of the Canadian Pacific Railway. I have the honor, tiierefore, to respectfully 
 submit for your Lordship's consideration : — 
 
 1. i'liat it is most desirfible, from .an Imperial, Dominion, and Provincial point of view, 
 that the most conlial relations should exist between British Columbia and Canada in order to 
 work out successfully tiie great problem of confederation in Her Majesty's North American 
 Provinces. 
 
 2. That to effect that object it is necessary th.at the long and almost chronic dispute 
 between British Coluinl>ia and Canada respecting railv/ay construction sliould bo finally and 
 satisfactorily settled. 
 
 3. That the means by which that may be acc(nn]ilisheil appear to me to be extremely 
 simple, comparatively incxpen.sivc -far leas than Hritisih Ci)lum!):;i cxpccteil when she united 
 
10 
 
 with Canada, and ;iio a connession to Canada that ought to be iippreoiated and with promp- 
 titude acce[)ted in good faith. 
 
 4. Tliey are an follows : 
 
 ( 1 . ) That the Esquinialt-Nanainio section of the Canadian Pacific Kailway , be commenced 
 on or before the Ist of May, 1882, and completed on or before the 1st of July, ISSS. 
 
 (2. ) 'J'liat the route of the J{ailway shall be along the line already surveyed and mapped, 
 subject to such variation of alignment and gradients as may render the road as inexpensive 
 as possible without impairing its eliicicncy— the gradients if possible, to be kept low— as the 
 principal buitsness of the Railw.ay, for some time, will be to carry coal from the !Mines to Es- 
 quimalt for domestic use and export. 
 
 {'■i. ) That the construction of the section of the Canadian Pacific Railway between Port 
 Moody and Kmory be commenced not later than the 1st of May, 1882, and comjileted on or 
 before the 1st of July, 18S,5. The work to be actively prosecuted throughout the whole period. 
 
 (4.) That an extension railway be constructed between Port Moody and such point on 
 English Bay as may be deemed most .'suitable for a landing for a Railway Fen-y between 
 English Bay and Xanaimo. 
 
 (").) That an etlicient railway ferry be establishecl between Nanaimo and some point on 
 English ]}ay tliat may be selected for the Western Extension from Port Moody. 
 
 (<i.) That the Extension and Ferry be comnleted and j)ut in operation bv the 1st of 
 July, 1885. 
 
 (7.) That as soon as the Emory-Kamloops section of the Canadian Pacific Railway, now 
 under contract, shall be sufficiently far advan'Hnl to enable a construction party to be set at 
 work at Lake Kamloops at the Wester end of the "Central Section " of the Canadian Pacific 
 Railway, the last meritioned section shall be coni.denced and vigorously prosecuted till it shall 
 form a Junction witli the main line of the Car.ulian Pacific Railway tliat may be con.«tructed 
 westwardly from Winnipeg. 
 
 (S.) That the whole railway from Esquimalt and Port Moody to Winnipeg be completed 
 on or before the 1st of May, 1891. 
 
 (0.) That, in addition, the sum of ?2,r)00,000 be paid by Canada to British Columbia as 
 compensation for losses sustained in the piist by the non-fulfillment by Canada of her Railway 
 obligations. 
 
 (10.) That the conditions be formally agreed to 'under such assurances of good faith as 
 may command the confidence of the parties concerned. 
 
 5. It is submitted tliat the above jiroposul in no way conllicts with agreenients already 
 wade, whilst the con)pensation mentioued is wholly in;uk(|uale to the Ul-s and injury sus- 
 tained by Hiiti.sh Columbia. 
 
 G. If the conditions of settlement that I have submitted for your Lordship's considera- 
 tion be adopted, 1 believe that there will be a restoration of that loyal and cordial feeling 
 between Jiiiti.-i'h Columbia and Canada that it is so desirable should exist. 
 
 7. I shall be glad to learn the decision of your Lordship on the Petition to the Queen, 
 as soon as it may be convenient to you. 
 
 1 have the honor to be, my Lord, 
 
 \ our most obedient servant, 
 
 To The Rii;irr Ho.s. Thk Eaul ok KiMisEia.KV, 
 
 Her iNlajesty's Principal Secretary of State for the Colonies. 
 
 A. I'E Cosmos. 
 
 P,l 
 
 ♦";i 
 
 V- 
 
 Hon. a. De Cosmo.s to G. W. Heebkrt, Esq. 
 
 Tavistock Hotel, August 4, 1881. 
 
 Dear Sik: With reference to our conversation yesterday, respecting a Steam Railway 
 Ferry across the Strait of Ceorgia, between Nanaimo and English Bay, ' have taken the lib- 
 erty of inclosing to you, two plans, showing the possible routes across the Strait : and I also 
 stiliinit the following extract from the San Francisco Hpiri/ of llic T'niicx, giving a description, 
 whiU' building, of a Railway Ferry Steamer which is now m-ed by the Outral I'acific Railw.ay 
 in th(^ transportation of I'assengers and freight across the Strait of Carquinez on the Overland 
 Route : 
 
 " The floating bri<lge, for such iiulced it is, will be 42.') feet in length on deck over all, 
 " 116 feet in width over all, and 18 feet depth of hold. She will be provided v ii,h four tracks, 
 ' ' running her entire length, of capacity sufficient for 4S freight cars and 24 passenger ears. 
 
 Kl 
 
p;i 
 
 11 
 
 " • * * It is intomU'd tluit tlu'itj.sliiill Iji' no (Uglily ill making tliu truD.sitaoroHS the straits, 
 " and locomotive as wfll as cms will lie run on tin; tracks, leaving the Hteamer on the other 
 " side, as any other vehicle would, drawn by any otlier power— the steamer being a double- 
 " eiider, like any other fcri-y boat." 
 
 I may add, that I crossed the Strait of Carquine/. in a Passenger train on the Railway 
 Ferry steamer referred to, and can therefore from personal knowledge pronounce her a succesB. 
 
 I have the honor to be. Sir, 
 
 Your most obedient servant, 
 
 R. G. W. Hkkbert, Esq., 
 
 Under Seeretarv of State for the Colonies. Colonial Office. 
 
 A. De Cosmos. 
 
 (This Memorandum is refen-ed to in the First Paragraph of Mr. DeCosmos' 
 letter to Lord Kimberley, Jnly 28th, 1881. See page 9.) 
 
 ^ I 
 
 Kl 
 
 MEMORANDUM 
 
 On "A Report of a Committee of the Honorable the Privy Council for Canada, approved by 
 His Excellency, the Governor-General on tlie lOtli May, 1881, — and generally in support 
 of the recent Petition of the Legislative Assembly of British Columbia to Her Majesty 
 the Queen." 
 
 1. In tlie Preamltlo of the Report of the Committee of the Honorable 
 
 Privy ('ouiioil of Ciinatlu, ou the 19th May 1881, it is stated:— 
 
 •' The Committee of the Privy Council liave had under consideration tiic letter addressed 
 "by Mr. Dc Cosmo.s on belialf of the Government of British Columl)ia, dated the " KUh in- 
 "stant, to Sir -John Macdonald representing tlie importance of constructing the Es(|uimalt and 
 " Nanainio Itailway on tlie Island of Vancouver, and they have also had before them a Petition 
 "to the QiUHii. wliicli tlie Legislative Assembly of that Province dirci'tcd on the iOtli March, 
 " should be forwarded for presentation to her Majesty, aud in these jnipers the (Aimniittee 
 " humbly submit to yonr E.xcellcncy as follows :" 
 
 It will be observed, that the Preamble states that the Committee of the 
 Privy Council have had under consideration a letter, addressed by Mr. De 
 Cosmos on behalf of the Government of British Columl)ia, dated the 13th 
 ultimo, to Sir John Macdonald, representinpf the importance of constructing 
 the Esquimalt and Nanaimo Railway on tlie Island of Vancouver, and they 
 have also had a Petition to the Queen, which the Le<,dslative Assembly of that 
 Province directed, on the 29th March, should be forwarded for presentation to 
 her Majesty; and that "on these papers" the Committee made their Report to 
 His Excellency the Goveruor-Genoral. 
 
 The Urst statement, as to the purpose for which the letter of Mr. De 
 Cosmos was written, is a mistake; for the real object of that letter was to give 
 the Dominion Government an opportunity to consider the Prayer of the 
 Petition to the Queen ; and, if possible, arrive at a final and satisfactory set- 
 tlement of the (juestions in dispute respecting the Railway obligations of 
 Canada lo British Cohnnbia, -— and, thus rcTider the presentation of 
 the Petition to the Queen, unnecessary, AVliat object the Com- 
 mittee of the Privy Council had \u taking a dilVerent view 
 of tlie letter, — unless it was a desire that tlie whole question 
 of the Dehivs and Breaches of Agreement respecting the construction of the 
 Canadian Pacific Railway in British Columbia, should be submitted to her 
 Majesty's Im})erial Government,— cannot be discerned. To show, however, in 
 the most conclusive manner, that the letter of the 13th April, addressed to Sir 
 John A. Macdonald, was not as repicsented in the Preamble to the Report, a 
 Copy of the letter of Mr. De Ct)smos, with the reply of Sir S. L. Tilley there- 
 to, on behalf of the Privy Council, and the rejoinder of Mr. Do Cosmos, are 
 submitted, and are ns foilowfs;- 
 
12 
 
 Mb. De Cosmos to Sir John A. Macdonald. 
 
 "Ottowa, At-uii, 13, 1881. 
 
 " Sir, — I have the honor to state that on November 6th, 1880, I informed the 
 Secretary of State for Canada, that I had been authorized by an Order in Council of 
 the (lOvernnieut of British Columbia to press upon the Iioniinion Government the 
 importance of carrying out their Agreement to construct the KM(|uinialt-Nanaimo 
 Section of the Canadian Pacific Railway, — and report the result from W'nic to tiuic 
 to the former Government. 
 
 "On November 8th, I received a reply from the Under-Secretary of State, acknow- 
 ledging my letter, and stating that a copy of the Order in Council referred to, had 
 lieeii received from the Lieutenant-Governor of the Province. 
 
 " Between the latter date and the '28th February last, I had several interviews 
 witli yourself. Sir Charles Tupper, Hon. J. H. Po]ie, and Mr. D. McTntyre of the 
 Syndicate, respecting the Agreement referred to ; but without reaching a final con- 
 chisioii on the subject. Since then, the question lias remained in abeyance. 
 
 "To-day I received a letter from the Hon. T. IJ. Humphreys, Provincial Secretary 
 of British Columbia, in which I was officially informed that I liad been appointed 
 Special Agent and Delegate to London to support the Prayer of a Petition of the 
 Legialative Assembly of that Province to tlie Queen,— a Copy of which is herewith 
 enclosed. 
 
 " This Action of the Government and Legislative Assembly, — whilst it raises in 
 the Petition new questions, .and includes the former one, for the consideration of the 
 Dominion and Imperial Governments, — has not, as I understand it, superseded my 
 authority to press upon tlie Dominion Government tlie importance of carrying out 
 their Agreement to construct the Es([uimalt-Nanaimo Section of the Canadian Pacific 
 Railway I am, jiowever, authorized to proceed to London to support the Prayer of 
 tlic Petition ; and, unless it is your desire to consider here, without undue delay, tlie 
 questions raised in it, with a view to their linal and satisfactory settlement, it will be 
 necessary for me to complete my preparations to proceed to London at an early day. 
 In case you should decide to consider, liere, the Prayer of the Petition, of course, it 
 will be understood as being done without prejudice to the Petitioners. 
 
 " I may remark, that 1 have alwas held in tlie past, and still hold, that as a matter 
 of sound Public Policy, any important matter in dispute between the Province of 
 Canada and the Dominion Government, ought to be exhaustively considered by the 
 representatives of the respective (iovernments at Ottawa, before presenting an appeal 
 for the consideration and decision of Her Majesty's Imperial Government. Such was 
 my advice, when Mr. Walkein was eii route to England in 1874 with a Petition to the 
 Queen ; and such, also, were my views as expressed and reported in the Hansard 
 JMhiit.es of the Session of 1876. 
 
 "In submitting this matter for your consideration, I trust that you may be pleased 
 to fa\ or me with a reply, at an early day. 
 
 " I have the honor to be. Sir, 
 
 " Your obedient Servant, 
 
 To Till', KicHT Hon. Sir .John A. Macdonai.d. 
 
 "Premier and Minister of Interior, Ottawa.'' 
 
 A. DE COSMOBL 
 
 P I 
 
 
 Sir S. L. Tilley to Mr. De Cosmos. 
 
 "Ohawa, Mav 16, 1881. 
 
 " SiK— Sir John Macdonald has desired that your letter to him of the 13th of 
 " April, on the subject of the construction of a Railway between Ks(iuinialt and 
 " Nanaimo, should be sulimitted to the Committee of the Privy Council ; and I have 
 " to-day taken the opportunity of complying with his re(iuest. 
 
 " You arc aware that every eflort is now being put forward by the Government to 
 " construct the Pacific Railway from this part of Canada to the Seaboard of British 
 " t!olumbia ; tliat the main line in that province will cost a very large sum of money ; 
 ■" And that some of its most exijensive sections are already under contract. 
 
 l«l 
 
I '• I 
 
 13 
 
 " With this evidence of tbe good faith, with which tlie Government is dealing with 
 "the (|uestion before them, we trust that the |)L'ople of British Columbia will bo 
 "aatistied ; and that it will be recognized that the Kaquimalt and Nainamo Railway 
 "should be loft over, for the present, as a work which ia not essential to the connection 
 "of the Scaborad of Uiitish Oolunil)ia with the Canadian System of Railways. 
 
 " 2. In the meantime, tbe (iovernnient of the Dominion will avail themselves of 
 "every opportunity of pressing tlie question of tiie construction of this Railway, as a 
 " private enterjjrise, upon tiie attention of the Canadian I'aciliu Railway Company, in 
 " furtiicrance of views already expressed to you by Sir John Macdonald, Sir Charlea 
 " Tupper, and Mr. I'opc;, and which arc referred to in your letter. 
 
 ";j. I trust that tiie e.xitlaiiations which I have given you, will prove sufHciently 
 " satisfactory to you to render unnecessary your proponed mission to London. 
 
 "4. In any event. Her Majesty's Government can only be approached by you 
 "through his Excellency The Governor-General. 
 
 " I am. Sir, 
 
 Your obedient Servant, 
 
 " Hon. a. Dk Cosmos, 
 
 "Ottawa." 
 
 ' S. L. Tl LLEY. 
 
 r I 
 
 I" I 
 
 •I 
 
 I 
 
 Mr. Dk Cosmos, to Sir S. L. Tillky. 
 
 Ottaw.\, 18th M.\Y, 1881. 
 
 "Sik;— 1 have the honor to acknowledge the receipt, on the 17th instant, of 
 " your letter of tlie Kith instant, in which you inform me, that Sir .lobn Macdonald 
 "luid desired that my letter of the 13th Ajial on the sul)ject of tiie construction of a 
 " railway lictwccn Ksc(uimalt and Naiiaimo should be .submitted to the Committee 
 "of tiie I'rivy Council; iuid that you had done so mi that day. 
 
 "In reply, I have tlie honor to stitc, tliat tlierc is a manifest misapprehension, 
 "on your pari, as to tiic contents and oliject of iiiy letter of the l:!th ultimo; and in 
 "proof of tliis statement I refer you to tlie letter itself. 
 
 "The following extract from my letter of the i;Uh ult.. to Sir John A. Mac- 
 "donald, makes it perfectly clear wiiat wa.s my paramount ol)ject in aildressing it to 
 
 " him, viz. - , „ r i.i 
 
 " ' I am, however, autliorized to pioceed to l.ondoii to support the I'rayer of the 
 •"Petition; and unless it is your desii-e to c(msider ln'ie, without undue delay, the 
 "'question's rai.sed in it, witl'i a view to tiieir liiial and satisfactory settlement, it will 
 "•be necessary lor iiic to coiiqilcte my prei)aratioiis to pmceed to i.<mdon at an early 
 •••day. Ill case you should decide to consider, iuiv, the I'rayer of the Petition, of 
 ••♦course, it will be undcrstoixl as being done without prejuilice to I'etitioners.' 
 
 •• Not having replied to tiie real object of my letter, you leave me «0 othel 
 '• COOTiie open, but to pro<;eed to London. 
 
 ••At ft future tinu! i may reply to tlic otiier statfrnent* m your letter. 
 
 "I have t!a» lionnr to be, Sir, 
 
 " Your most obedient serxant, 
 
 "A. Pk cosmos. 
 ••To THK Hon. Sik S. L. Tih-ky, 
 
 '• Mininterof Finance, *.tt„ &>!., &c.. Ottwa." 
 
 2. The Report furUier stiit(>s; — 
 
 •• 1. Otie of the leriiis upon wliich Brit'iHli C'olninUia, in the year 1871, 
 '« entered into tlio Union of Her Majesty's North America)! Provinces waa 
 
 "as follows:— -, , , , .i 
 
 •• The (jovernraent of tlie Doininion iindortake to secure the com- 
 «• mericeaient siinnltaneonslv within two years from the date of the Union, 
 " o£ iho constrnctioii of a llailway from Hie Pawiio towanls the Rocky 
 
u 
 
 " Mountains, aud from such point ns miiy be selected, east of the Rocky 
 " Mountains towards the Pacific, to connect the Seaboard of British Co- 
 " lumbia with the Kailway System of Canada; and further to secure the 
 " completion of such Railway within ten years from the date of the Union." 
 
 The points in this Section of the Report that deserve special notice are: — 
 
 (1.) That "one of the terms upon which British Columbia, in 1871, 
 entered into the Union of Her Majesty's North American Provinces" was 
 the first Clause of the 11th Section of The Terms of Union, providing 
 for the construction of a Railway connecting the Pacific Ocean with the 
 Railway System of Canada; 
 
 (2.) That the words "one of the terms,' injply that there were other 
 terms of Union; 
 
 (3.) That a Railway was to be constructed to connect the Seaboard of 
 the Pacific with the Railway System of Canada; 
 
 (4.) Thiit the Railway was to be commenced within two years from 
 the date of Union; 
 
 (;") ) Tiiat the Railway was to be commenced simultaneously, at each 
 end, that is to say, at some point on the Seaboard of the Pacific, and at 
 sucli point east of the Rocky Mountains as might be selected, and that 
 the work of construction should commence at both of the said points at 
 one and the same time; 
 
 (G.) That the Railway should be completed within ten j'cars from the 
 date of Union, between the Seaboard of the Pacific and the Railway Sys- 
 tem of Canada; 
 
 3. With reference to these several conditions of the Railway obligation of Can- 
 ada, it is necessary to state: — 
 
 (1.) That the Railway was not commenced "within two years from 
 the date of Union," at its Eastern or Western Terminus, or anywhere; 
 
 (2.) That at the end of "ten years fi'om the date of Union," it had 
 neither been commenced on the Scabuard of the Pacific, at Port Moody, 
 or Esquimau, — the terminus fixed by an Order in (Jounoil of June, 1873, 
 under tlie Railway Act of 1872, — nor at Nipissing, which was declared by 
 the same Act to be the Eastern terminus; 
 
 (3.) That the railway was commenced in 1874, on the Pembina-Win- 
 nipeg branch of the Canadian Pacific RaUway; 
 
 (4.) In 1875, on the Fort William-Sunshine Creek branch of the 
 Canadian Pacific Railway; 
 
 (5.) In 1875, on the sections between Red River and Cross Lake; 
 
 (6.) In 1870, on the section between Sunshine Creek and English 
 Ri^er; 
 
 (7.) In 1877, between Cross Lake and Rat Portage; 
 
 (8.) In 1879, contracts were let for the construction of 200 miles 
 railway west of Red River; 
 
 (9.) In 1880, construction was first commenced in British Columbia 
 at Emory, on Eraser River; but not on the Seaboard of the Pacific; 
 
 (10.) That a subsidy had been granted to the Canada Central Rail- 
 way Company in 1874, though not part of the Canadian Pacific Railway, 
 at "the rate of $10,000 per mile, bii* not to exceed in the wliole $1,440,000, 
 to aid in the extension of the Canada Central Railway from Douglas to 
 Nipissing; 
 
 (11.) That a subsidy had been several times refused to a company to 
 construct the Escpiiiiialt-Nanainin snclio!! of the Camulijiu Pacific Rail- 
 way, though the location survey had Immmj made in 1875; 
 
 (12.) Thai the expenditure on the survoys for the Canadian Pacific 
 Railway up to Uccemlx'r 31 , 187!), amounted tu $3, Hi), 017. 79, leaving the 
 total expenditure in construction at §11,1()8,008.22; but not a dollar of 
 
 1'^ (/ 
 
 
 #1 
 
r^i 
 
 »N 
 
 r 
 
 4. 
 
 mi 
 
 16 
 
 that, Buni had boon expended in British Columbia, although the surveys 
 between Esquiraalt and Nanaimo had been completed and mapped in 
 1875, and on the Continental section of the Province in 1877-8; 
 
 (13.) That up to December 31, 1879, $14,287,824 had been expended 
 in construction and surveys, but not a dollar had been expended in British 
 Columbia in the construction of the Western end of the Canadian Pacific 
 Railway, either on the seaboard or elsewhere; 
 
 (14.) That up to July 1, 1880, $10,488,759 had been expended on the 
 Canadian Pacific Railway,* of which, about $13,400,000 had been spent in 
 construction east of the Rocky Mountains, whilst only two months' work, 
 in construction, had been done by the Contractor in British Columbia; 
 
 (15.) That up to November 30, 1880, the total amount expended on 
 the Canadian Pacific Railway was $18, 000,402. 3G, and of that sum up to 
 December 31, 1880, exclusive of Surveys, only $307,055.40 had been ex- 
 pended in actual construction in British Columbia; 
 
 (10.) Tliat the route of the railway from Burrard Inlet to Yellow 
 Head Pass, the eastern boundary of British Columbia, had been fixed by 
 Order in Council in 1878; and that, notwithstanding that fact, a further 
 postponement of construction for a year, was made to etlect surveys, cora- 
 mencinf? at Port Simpson, near the south-eastern extremity of Alaska, 
 about 500 miles from the settlements in the Province, and thence east- 
 wardly to Peace River, with the evident object of securing a year's delay; 
 for it was well understood, all tlie time, in the Department of Railways 
 and Canals, that when construction commencod, it would be on the route 
 between Burrard Inlet and Yellow Head Pass; 
 
 (17.) That ])ersistent and unnecessary delays were made respecting 
 the commen(!enient of the railway in British Columbia, at variance witli 
 the letter and spirit of the Railway Clause of the terms of Union; and 
 that, at the end of the ten year period of completion of the Canadian 
 Pacific Railway, there is still further delay, as the work has not yet been 
 commenced on the Seaboard; 
 
 (18.) These facts show the great wrong that has been done to British 
 Columbia, by Canada— and, it is submitted, warrant the interference of 
 Her Majesty's Imperial Government, to secure to the Province, 
 prompt, certain, and substantial relief. 
 
 The Section 2 of the Report is as follows: — 
 
 " II. On the Gth June, 1873, in view of the then probability of the 
 " Railway running by Bute Inlet, an Order in Council was passed declar- 
 " in<' that Esquimau should be the Terminus of the Rjiilway on the Pa- 
 " cific Coast, but the alignment on the Mainland was, at that time, wholly 
 " undetermined. 
 
 " In May, 1878, the Government, on increased information, deter- 
 '• mined however to select Burrard Inlet as the objective point on the Pa- 
 " cific Coast to be reached by the Railway; and they cancelled the Order 
 " relating to Esquimalt. Still further examinations were, however, deemed 
 " necessary, particularly with reference to the advantages of a still more 
 " northern route which should terminate at Port Simpson; and, to keep 
 " the whole question entirely free until additional exploratory surveys 
 " should be made, the Order m Coiintiil of June, 1873, was in April, 1879, 
 " revived, and continued in force until October, 1879,— when the selection 
 " of JJurrard Inlet was finally made as the terminus on the Pacific Coast 
 " of the Canadian Pacific; Railway, rendering unnecessary the line between 
 " Nanauno and Esquimalt as a Condition of the Union with British Co- 
 " lumbia." 
 
16 
 
 Attention is directed to tlie followin;^' pointu in the above statement: — 
 
 (1.) That on tlie 7th Juno, 1873, an Onler in Council wan pasHOil by 
 Canada, lixing the Western Terminus of the Canadian Pacifu; liailway at 
 EMquinialt. 
 
 (2.) That it was done in view of the probability of the Railway run- 
 ning by way of Bute Iiilot. 
 
 (!5.) That the alif^nmcut was wholly undetermined on the Mainland 
 of British (Columbia on the 7th June, 1H73. 
 
 (4.) That the Government of Canada in 1878, dotcrmiiiod that Bur- 
 nird Iidet should be the objective point on the Pacific Coant to be reached 
 by Railway. 
 
 (5.) That this dolerminatiou was based on increased information. 
 (().) Tluit the Government, therefore, cancelled the Order in Council 
 fixing the Terminus at Esquimalt. 
 
 (7.) That it was deemed necessary that further surveys should be 
 made to find out the advantages of a more northern route, terminating at 
 Port Simpson. 
 
 (8.) That it was determined in 1879, to keep the whole question of 
 the route of the Railway unsettled till the exploratory surveys from Port 
 Simjjson were made. 
 
 (!).) That tlie Order in Council fixing the Terminus at Esquimalt 
 was, consequently, revived, in A]u-il, 187S). 
 
 (10.) That it was continued in force until October, 1871). 
 (11 ) That in October, 1871), Bnrrard Inlet was made the Terminus 
 on tlui Piiciiic Coast of the Canadian Pacilic Railway. 
 
 (12.) That the fixing the Terminus at Burrard Iidet rendered the 
 line between Esquimalt and Nanainio unnecessary as a condition of the 
 Union with British Columbia. 
 
 4. Before commenting on the points I'aised in Section 2 of the 
 Reiiort, it is necessary to advert to certain })ledg(;s of the Canadian 
 Government to construct a Railway on Vancouvctr Island as part of the 
 Cauiidian Pacific Raihvuv, in case either the Biit(! Inlet route, or the Bur- 
 rard Inlet route, was selected ns the Main Trunk line. 
 
 (1 ) During the Session of the Canadian Parliament in 1872, a Bill 
 was intrndiiced, intituled "An Act re8|K-cting Canadian Pacilic Railway, 
 1872," and afterwards became law. Section I. of tiiis Act is as follows: — 
 " A Railway, to be called 'The Canadian Pacifier Railway,' sliall be 
 " made in conformity with the agreement ref'eircd to in the Preamble to 
 " this Act, and sucii Railway shall extend from some point on or near 
 " Lake Nipissing, and (jn the south slioro thereof, to some i^oint on the 
 " shore of tlie Pacilic Ocean — /;'>//*. tin: suul j)i)i.iils Id br. ilrli;nnini'il hi/ fh*i 
 " Guveruor and Council, and the course and line of the siiid Railway be- 
 " tween the said points to be subject to the approval of the Aoveruor ia 
 " Council." 
 
 (2.) On May 28th, 1872, whilst this Section was under discussion ta 
 the House of Commons, and after Nipissing had been adopted i\n the 
 Eastern Terminus of the Caiuulian Pacilic Railway, Sir Hector L. 
 Langevin, tiie tiicn Minister of Public Works, whose Department included 
 Railways, staled, in re])]y -to ]\Ir. De Cosmos, that "should the Railway 
 be carried to Bunard's Inlet, a Ferry will be estal)lislunl iiud a /uf- will 
 be carried to Es(iuiniall, as ]iart of the Railway." 
 
 (d.) The foUowing extract from the Toronto MaiVn report of May 
 28, 1872, confirms this statement, — the [)art in parenthesis being addedio 
 both of I he ft>llowing extracts to make the sense clearer: — 
 
 " Ml'. \)e CciMiioM .siiiil till' I .\i)laiiJitioii was ((uito satisfactory in one rcsfject ; hut 
 " lu! wiuiIimI to know wiu.'tliir tlie (iovoiiiiiKfiit was prepared, ia ease tlif riiilway 
 " sliuu'ni start at iUirraul'.s Iiilet, tocoiistruet a hraucli line iniUi Victoria tsj N.iiKiJmo; 
 
 I' 
 
 V 
 
 i 
 
 
17 
 
 "and in i-asclluiy take tins Stiiiits wliitli.T tli. v will oluhc ii line, to hi' constructed 
 " alonn tlic east coast ? 
 
 ^ " Mr. Lim^jcvin ivplicd tiiiit tlui intention of tiic (iovciMiifnt wiis to j,'o {via Bute 
 "Inlet) to KMiiuiniiiit ; l)iit, of cotirso, if it was inJi.iacticaMc tlicy coiilil not no : and 
 "slioui<l tlic railway lie <ariic(l to Uni raid's inlet, a f.iry will 1,'c .■.4;.Mi«luil and a 
 " ' " '11 lie eariied to Ksipiinialt an |iait of the radway. 
 
 ' lin 
 
 " Mr. Du ('(j.snio.s e\nre.«Hed liiniwclf jieiVectiy .satJHilcd 
 "made." 
 
 \> itii tlje exjilnnatioii 
 
 ^ 
 
 I 
 
 (i.) The Toronto Glohr's report of May 28, 1872, corroboriites the 
 anove Htiitonieiit, mid is us follows : — 
 
 " Mr. he Cosmos asked if the Covernnient wonld pledge itself that, if the railway 
 " were ^onstiucted to Burrard's inlet, a line woidd 1 e laiilt from Victoria to Nanainnj 
 "(lan;4hter), and that if it reached .Johnson's Straits, one would he Imilt ahne' the, 
 I' cast co.ist to Msiininialt (laughter). If the (iovernnicnt W(ndd not <lo .so, he would 
 "take the statement ol the nnnister of puhlic works for what it was worth— (loud 
 " laughter). 
 
 ".Mr. Lan^'evin said it was the intention of the (lo\crnment to go {ria Bute 
 " Inlet) t(i KsijMinialt ; and if the line were carrii d to Ihinard's Inlet, a lir.uich would 
 "be extended to i'lscjnimalt." 
 
 (5.) When the Ciinudiun Pacilic K 
 
 uilwiiy was luiih'r disciision in the 
 
 onse of Couinions on tho otli of Ajiril, 187(5, Sir Hector L. I 
 
 j.'inocvm 
 
 H 
 
 then stated what the Government of wliic-li he was a niemhcr, in T872, 
 liad done respectinj^- the i)roi)ose(l lino of railway on Yancouve'r Island.' 
 Hisexi'Janation, ou that ocea.sion us to the lini; "of railway on 
 
 ancouver 
 IS j^iven in 
 
 Island, is so pertinent to the subject no\v- disoiisscd, that it .., „ „ 
 
 full to show tliat he ftavea deliberate pledge in 1872 to Britisli CVlunibia 
 under instructions from the Cabinet of Canada, that a lini' of railwin 
 
 should I 
 
 snouid 1)1- (toustructei on Vancouver Island as part 
 Pacific liailway. It is as follow^ : — 
 
 of the Canadian 
 
 " ihis radway was considered hy the previous Government and Parliament as a 
 I' necessity in view of our position, and as re(piired l>y treaty oMigatioii. When they 
 "gave the contract to , Sir Hugh .Mian and his twelve as.s.'iciate.s, they hound them- 
 " selves to give the company §;{(), 000, 000 and 50,000,000 acres of land'to construct a 
 "nulway from Lake Nijiissing to i^siiuimalt, between which points lay the rnuto of 
 •'the i'acilic Hallway, if relerencc was made to the Acts they passed incmporatinL' 
 "certain companies during that year, it would he .seen that they were intended to 
 "build railways Ironi i.ak(t .Xipissing to the Pacific Ocean, with power of extension to 
 '^ Ks(|uinialt, and of budding besides branch lines. T/ic poiiioii of t/ic liiu' from th" 
 ^1 tHiicr waleif of ISritish Coliitnliia lo h'-i/iiiiinill ira-s nut cdiisiilcn-il, and. ira.-< not treatrd 
 " (■/( //(cw Ai-lK iix a In-anch, hut. «< an fxlensioi, ami a /lorHoii ol' llic raihrai/. He would 
 "go further- and these were matters of fact and history. When the (lovernment of 
 ''^ which he was a member was called ujion in this House by the inesent member for 
 *' \ ictoria, to state whetlu-r he had determined upon tiie western terminus of the line, 
 "he was instructed l.y the Cabinet to ann(miu:e -as he did do openly -that they 
 "intended to make i':s(piiinalt the terminus. .Moreover, anonler in Council was pas.sed 
 •'to that etl'cct; and in the coiTespondeiice laid the otiierday before the Hou.se, it was 
 ".so stated in a minute of Council of the present (iovernmei't. When the (lue.stion 
 "cnme n[i under the present Administration, if he wa.s not mistaken, the same 
 "course was followed."' 
 
 ft 
 
 This extract uudcey it jierfectly clear that the Canadian Government 
 had pledged itself to eonstru(!t a line of railway ou Vancouver Island as 
 part of the Canadian Pacific Railway. 
 
 (G.) A charter, dated at Ottawa, February Oth, 187;5, was "ranted to 
 Sir Hugli Allan and others, to construct tiie'^Canadian Pacific' llailway. 
 Section 5 of the cliarter includes, although not expresslv stated, a line of 
 railway on Vancouyer Island, but left the terminal poin't and line on the 
 Pacific, to be determined subsequently by the Governor in Council. The 
 following extract from bectiou 5 corroborates fully this statenuMit :— 
 
 I 
 
18 
 
 "Section T). And Hiicli mihviiy slmll extend from Homo point on or near Uke 
 "NiiiiHuinK, and on tlif south hIioio tiicrcMif In somr iioiiit on flu' nhmr of the /'uci/Sc 
 "Oo-rn/, l»)tli tlio Huid iiointx to luMlotcrniimd l>,v tliu (loviM-nmont; and the courHe 
 "and lin(! of tiie miid railway lietwcon tlie said points to lio Mnl)ject to tiiu approval of 
 " thi' ( iiivcrnnicnt." 
 
 (7.) Tlio (i()vonimf>iit, of CiiiiiKla, oii Uio 7(h of Jiiuo, 1H73, four 
 months iifter tli« Cliiutor was ^^ainited to Sir Hiit,'h Alliiii ami others, 
 paHsed an or.lcr in Council fixing' tlic IcrniiiniH of tho Camuhau racihc 
 Railway on I ho l'»i(-'ili<', and ordirin-- tiiat a lino of railway bo located on 
 Vancoiivcr Islaiul. This ord((r in Council made it incunihont on the 
 conipanv iioldin^ the charter to constnn-t a lino of radwa.y from Esqm- 
 
 ' : ;,,.,>..,,, I Iw.v, ,11,1 fiu niivt <.!' tlio (Janiidian Pu(!ilic Railway — 
 
 Sir 
 arlia- 
 
 nialt lo'Naniiinio and Ix'vond, as part of the CJanadian Pacilic Radway- 
 aiid thus, HO far, fultillod the plod-v t,'ivcn to iJritish Cohunhni, by S 
 Hector L Lun^Mnin, on behalf of the Canatiian Governniont, in Parli 
 nient in 1S72. Tho order in Council nd'orrod to is an follows : 
 
 '• ( 'ii|i\ lit 
 
 liV His V.wy 
 
 ii ivport of a ("oniniittw of thi' llonorMhlc and I'livy Couiiuil, approved 
 Uiiicy the (iovurnor-dciu'iiil in Coiuicil. on tlit: Ttli .linic, l!S7.S. 
 ••'I'hc CnMiMiittcf o|- Cunncil hiiviiii,' lind lu'foiv tiicni tlif meniorandnni of the 
 '•■-'lltli M;iv lii.st from tiic liiirf .'nj/intcr of tiic Cinuidiiin I'mMlic Kailway. and the 
 '•minntcot CuiMuil tlifiTupoM of tlu' :!Oth May. I)f^ liuvc to n.comm.nd to ) our 
 "Exi'oil.ricy that i:s(|uimalt in Vancouver Island he lixi'd as tlio termnms ot tho 
 "Canadian" I 'a.'itif Itaiiway. and that a line of railway l)C locatetl l.etwoon the 
 " liarl'or of K-i|Minialt and Scvmour Narrows on till' said island. 
 
 ••'I"hc coMimitU'i' furtlicf ricouKiid tiiat aiipiiiMtion immeiliattly lio made hy 
 to the l.ifuieiiant-dovirnor of liritish Coiundiia, for tiic conv.'yancc to 
 
 i.it.-ii 
 
 f(»r till' 
 tlic Dominion (lovcrnment in trust, io'cordint,' to the lltli para>,Mvpli of tiie terms 
 of tlio .A-nenu-nt of Union, of a strip of land •Jd miles in width alonir tlu' eastern 
 Island, hetweeii Seymour Narmws and the liarhor ot hs(Hiimalt. 
 I,ieutenant(oiveriior of liritish Colunihia in Council, appro- 
 liiiid in lurtlier.inee of tlie eoiistnielimi «i the said radway, 
 rder to operate as a silllieieiit (..iiveyanec- iiiel n'seivation of 
 
 • eoost of X'iMieoUS er 
 
 " All order of the 
 
 • priatin^i this Iraet of 
 ' will he neeessarv 
 
 'the said land to and for the Uoiiiiiioii (!ov(^iiimeiil. 
 
 "(Vrtili.'d. W. 
 
 A. lliMsWdurii, ('. I'. ('.'" 
 
 (K.) From tlio date of tiie plod^e oiven, in lS(i2. by Sir Hector L. 
 Lauf^evin, already refornMl to, to the time when this ord-r in Conned waH 
 proiaiiluated, Bri'tisli Ci.lumbia had the most complete conlideneo in the 
 promise of Cani.lfi to einistruct a railway on Taiicouver Island as part of 
 the Canadian Pacilic Rnilwav ; and consecpuMitly her business interests 
 were o(,vornod in a very larf-o measure sidijeet to tiiat phidofo— and 
 particularlv soon Vanconver Islnnd— -the Goveriimont and i)e()ple behov- 
 ing that ithad beea made in .o^ood faith and would bo preserved inviolable. 
 
 (9.) Under the second clause of the Uth Section of the Tornis of 
 Union, British Columbia was botind not to sell or alienate any of her 
 crown lands except l)y pre-emption, till on and after two years from the 
 date of Union, which period would expire on the 2()th of July, 1873. 
 
 (10.) Tho Ciiuadiau Government— in veiw of reqnestinpf the Govern- 
 ment of Britisli Columbia to c(»nvey to her the <iuantity of land to which 
 Canada was entitled under the nth" Section of tiio Terms of Union— had 
 B memorandum of tho chief eno;iiioer of the Canadian Pacilic Railway, 
 dated M;iy lii», 1S7;5, submitted to it— in which ho rocronuiiended the cou- 
 veyamte of a belt of land 2(» miles wide and KUt miles lono^, alongsulo 
 the line of railway ordered, in the suljsequent Onler in Comicil of the 7th 
 June, 187:5, already referred to, to b(> locatful between Esquimalt and 
 Seym'our Narrows', on Vancouver Island. This recommendation points 
 out that the Government of Canada had a decided preference for Esqui- 
 
or iioar Ijike 
 ri/' thf I'ltcijir 
 1(1 the rourMe 
 u approval of 
 
 1873, four 
 iiul others, 
 liaii I'aciftc 
 
 located ou 
 iiit ou the 
 if)m Esqui- 
 
 Riiihviiy — 
 l)ia, by Sir 
 
 in Parlia- 
 
 iL'il, iipproviid 
 , l.S7:{. 
 
 ikIuiu of tliu 
 way, mill tlio 
 iiiiil to Your 
 inimiH of the 
 lii'twoon the 
 
 1)(! niiifle by 
 ■oiivi'yaucc to 
 
 of till' tonus 
 iir thi' I'listL'i'ri 
 of l'i.-<i|iiiioalt. 
 oiiiiiii, iippro- 
 .saiil I'liiUvay, 
 rcsiTVatioM (if 
 
 C. I'. ('." 
 
 • Hector L. 
 
 Council wfiH 
 iMici! in the 
 as i)art of 
 •ss iiitorests 
 >l(!(lgo — and 
 >\)\<i belicv- 
 1 inviulablo. 
 
 le Tonus of 
 I any of her 
 r.s from the 
 ^, 1873. 
 
 the Govem- 
 jul to which 
 Union — had 
 ilic llaihvay, 
 led the cou- 
 ff, alongside 
 :;il of the 7th 
 ([uiuialt aud 
 [ition points 
 for Esqui- 
 
 19 
 
 •nmltiiH the tenniiiUH, whether Vau(imv<r IhIiukI be reaehed l)y bridf^o or 
 ferry ; and tiiat " tlie time for soleclin<,' l/indH for railway piirpoHOfl iu 
 British Columbia wmdd expire on iIk^ 'iHth July uext." The following 
 •extract from the metuoiandum contains the full retiomiiu^ndation : 
 
 <'AN\|i|,\N TaCIFIC II.MI.WAV, \ 
 
 OfKICK OK TWK K.NCINKKIt INCmIKK, ! 
 
 Ottawa, 'J'.tth May, KST.-J. j 
 
 " MpinoraiiiluDi with rcj^anl to opcralioiiH fur tliu prcHuDt hcohoii, tbo uiulerHignud 
 " rucoininuuda tliat the followiuf{ be undertnkoii : 
 
 " The Western Section. 
 
 " 4, With ri'sprct to the Railway in Uritish Colunihiii, the Government having an- 
 " nouneed a decided )irefercnce for Ksiiiiiinalt as the 'reiiniiuia, whethia' Vancouver 
 " Islaml he reached liy ISridge or Kerry; ami iih the time for Hclectiu),' lands for Rail- 
 " way purposes in Uritish Coluirihia ex[iircs on tlie 'JOth -luly next, it liecomes iinport- 
 " ant to si'cuie, either by un extension of time or otherwise, all the vai'ant Aj^ricultiiral 
 " and MiiK ral lands alonj; the piobable line f(;r the liailway on Vancouver Island. 
 " Slioidd the (li)vernnient eonsidei' this advisable, the limits of the resitrvation may 
 " be safliciently well described as a strip of land '20 miles in width alonj^ the Kastcrn 
 " Coast of Vaiiciiuvcr Island, betwi'cn Seymour's Narrows and th<' Marl)or of Ks<iui- 
 " malt. 
 
 "SANFORD FLKMING." 
 
 (11.) Tlie (fovernment of Canada adoi)tod the recommendation of 
 the Chief Euf,'inoer of the Canadian Pacific Railway respecting the Rail- 
 way Lauds, and requested the (Jovcrumont of British Coluuibia, in' the 
 Order in Council of the 7th of June, 1873, already referred to, to convoy 
 to Canada under the lllh Section of the Terms of Uniou, the belt of 
 Laiul de.scribed by the Chief Engineer. 
 
 (12.) Tlio Government of British Columbia complied with tiie re- 
 
 (juesL of the Canadian Government for the conveyance of the Lands 
 
 referred to, in' reserving the lands, inasmuch as the lands coidd not be 
 
 •conveyed till the line of Railway ordered to be located on Vancouver 
 
 Island had Ijeeu defined. 
 
 (13.) The Government of (,'anadii accepted the Reservation as a 
 HulHcient couveyanco, aud communicattid to the Government of the 
 Province its acceptance in the following Order in CouniMl: — 
 
 " Re|)ort of the Privy Co\uicil apiu-oved by the (iovernor-Oeneral on the .3rd 
 " September, KSVIl. 
 
 " The Conunittee of the Privy Council have had under eousideratidii a Despatch 
 " from the Licntenant-Covernor of British Columbia, of the 'J(ith July, I,S7.'!, inclosing 
 " a .Minute of his Kxecutive Council, conveying the comilusion of the (idvernment of 
 " Ibitisli (,"ohiiiil)ia, that it is not advisable to make at present the Conveyance ap- 
 " iilied for in a I'csiiatch uf the Under Secrctarv of .State for the Provinces, of the 
 " lUth of .June. 
 
 " The ("onnnittee of the Privy Council have read with great attention the report 
 "of the F^xeciitive Council of Mritish Ctdunibia, inclosed in the Jjieuteiiant-Oovern- 
 " or's Itispatch, and beg to submit, that so long as the laud which is referred to is not 
 " alienated from the Crown, but held under reservation as stated in the Lieutenant- 
 " (iovernor's Dispatch, the object of tin' (Jovernment of the Dominion will be ob- 
 " tained, that object being simply that when the Railway sluall come to be constructed, 
 " the land in (lucs.'on shall be at the disimsition of the (Jovermnent of the Dominion, 
 " for the purposes la! ' down iu the I Ith Section of the Terms of Uuion with British 
 " Columbia. 
 
 "[Certified.] W. A. HIMSWORTH, 
 
 •• (Uerk I'rivv Council." 
 
■21) 
 
 
 (14 ) Tli«! Ui!Hcrviitioti of tlio Liiinl on Vancoiiver iHlnml for the pur- 
 iioHBH of tho C'liiiiuliiiii VnvW'w Itailway lit \\w rvqxwHl of Cami.lii, iukI tho 
 order io loc-iito ii V\m of Uuilwuy lliroiij,'li tli.m, (•(.iiHtiluloil n binding 
 oV)lit,Mitiou ou tlio piirtof Cluiimlii to Urilihli ("ulmnbiii to coiiHtnua ii lino 
 of Railway on Vancouvfr'H lNluu(l,iin(Ur llio lllli H<'i'tioii of Hh' IVriiiH 
 of Union; for, it Ih Hnbniittcd, that tlu) " A<!t roHj.iH-tinK Canadmn raoifio 
 llailway IH72 " ^^li\^^ lli<! 0«iv<rn«)r in Coiiiu'il power to deterniino wiioro 
 the T. iiliinuH Hhonld be locat.d, but guvo them uu power to cancel it after 
 it had oiu;o been determined. 
 
 (If) ) To nial(o tho matter ntill inoro l)indin<,', if jioHHiblo, and hIiow 
 that the Government of Canada inten.led, to all ontwurd appcurances to 
 keep invii.iable their pledued faith to British Cobnnbni, b .t . in tiie Ith 
 Section of the Treaty of Union, and upon the tlnor ot l'arhament--the 
 Chief En-rineer of the Cana.lian Pacitie Uailway aHin^ under lUHtruetions 
 from «ir Hector L. Langevin, the then Minister of I'ubie \\ orks di- 
 rected Mr. MarcuH Smith, the Eno;ineei-ii> Cluiige of Ine Uailway Sur- 
 vevH in JiiiliHli (^.liimbia, to commeni-e tlie location Hurvey of tlie lino 
 of llailwav on Vancouver IhIhihI, referred to in the Order ot Council of 
 the Tth ot' June, 187:5. The En-ineer-in-Cluu-e ot the b'lrveys earned 
 out his imstruetiouB ou July 18th and IDtli, IH73. 
 
 Tho following Extracts, from the nrilixh (Joh.nixt newspaiior. give a 
 brief account of the manner in which he commenced the Locatiou Survey 
 of the Canadian Pacilic llailway on Vancouver Iwhind :— 
 Extracts from the '^ Daily lirlthh ColonM." Virtoria, Ii. C. Fridn,,, Jnhj ISth, IS73. 
 
 " CANAUIAN I'ACIKIC RAII.WAV.--THK I'lltST STAKK IIKIVK.N. 
 
 " Mr. Marcus Sniitli, accon.pani«d l.y Mr. Tiu.ltMnan, C, K., anJ men.bera of tho 
 " Local ( loveruMu-nt, proccc.kMl to Ks,iui>nalt yest.T.lay aiul .Irovc tl.o irst ..take for 
 " the Location Survey of the liaili-oa.l ivom Ks,,u„nalt to Nanalioo. he .stake was 
 " drivu at the S. K. coiner of the iMckyanl fen. c, an.l a il^a lioHtc.l thereon . 1 ho 
 "health of the Canadian I'acilic HaiUvay was drunk ma llowin^ hiMnj.erjjf eham- 
 " paKue. The stake was driven to obtain a 'Hi^ht.' 1 he location ot the '■'"'•>'>'« 
 " liU he at Constance Cove, it is thought: and it was reportcl last even|;.g that Hon. 
 " Dr. Hclincken, the Pacific director, will turn the lirst sod tomorrow. 
 
 Siiitdiii/, Jiilij Mth, IK73. 
 
 " THK TKIIMINTS UK'ATKD. . 
 
 " The Ternnnus of the Cana.lian facilic llailway was locate(l ycstereay. It is at 
 
 "the nortlw^t corner of the fence which surrouu.ls the A.lnun..s residence a 
 
 " Thetis Cove aiul is marked hy one of the p.^sts of the lence. ..n which is written 
 
 .. 'C !• us' July I'i 1^73.' Mr. Snntli, with his force, yester.lay cut a hroad 
 
 " trail throuuh the hush iu^.i -ai^liugs f..r a distance of sever .1 hun.lre.l yar.ls, .Iriving 
 
 tra 1 *'f'"^ ;';',. 1, T) ,. rerininus i.s i, to Iiuhan Reserve, winch comprises 
 
 ft^t c i ''■' : . Ij^. at t,. the AUiiiirafs ivsid.mce an.l Thetis C..ve^^a 
 
 .. pre t"; safe and commomous hay in l<:s.,uinialt Marhor. It is suppos.. that be 
 
 " K, ipa'ny wi 1. ke the In.lian Reserve, ami that lands m another part ot the harhor 
 
 to ipany w 11 la i,,ji;i„H No ' sod ' was tnrn.;.l, unless hy some ot tho visi- 
 
 . Tor by w^y of a ' Ik ■ Ami we learn that a telegram was received fr.mi Ottawa 
 
 '. irrthe rmnninV that the cmmencement ot the Locatmn Survey, on or before the 
 
 ■' 20th July, is considered as keeping the Terms of the Treaty of Union. 
 
 flO \ About this period, Sir Hector L. Lanoevin, in whose Depart- 
 xnen Ii/ nit^rB cot.nJcted with the Surveys ^^^^ ^^^^ ^ ^ 
 Canadian Pacific Railway were nuum^'ed, ^•--"'"5;;;\^;i^' ^''^^^..^le^m 
 faith with British Columbia, that the Hiini ot Jfc.JUd.UUU .e cxpenciea m 
 construction of the llailway on Vancouver Island; but his recommenda- 
 tiou was not adopted. 
 
di- 
 
 al 
 
 (17.) Tlio (lovrrtitiK'iit. (»f Th'itiHli Coliimhiii, tiiidiiit,' llmt llio Looa- 
 lion Survry coiiiUH'iiccd iit I'iN<|uiiiiiilt, hud l)«»ii Hlopitcd, and llmt, to nil 
 uutwiird iipii('ai'iiiic(>, tli<^ (wiiiiidiiiii (iovorniiH'ut. did nnl iritoiid t(< ciiiii- 
 ineiKio the ictiiul coiiHtriKilina of tiio Itiidwuj iu lliiil Province, pJotoHtcd 
 iif^iiinHt th« l)r«'iicli, by t.ho Government of Ciininlii, of the lltL Section of 
 the TerniH of Union. Tlio protuHt in as follows: 
 
 "DnU'i- ill Cuurnil <>f thin I'rovinif, diiU-cl .Udy 'J5th, IHTII. 
 
 "Tlus ('oMitiiittin* of ('oiiMcil hiivo IiikI uiiilor conMiiltTiition t\w non-fuirillinunt by 
 " the L)oiiiiiiii)n (iovt'i'iiini'iit of tliu 1 Itli Scctiim of tlio 'IVrinn of Union. 
 
 "Tlic t 'oiumittfi' I'i'grot that tlic uoiiMtnulion of tiic lUilway liiin not hvvw com- 
 " intMiccii, uml thcfffort! Htioii^^ly protimt iiKiiiiint thi' lireacli hy tlm l>i)niini(iu 
 "(iovct'iirrii'iit ol ii coiiilitioii of tlu> 'I'uinm no lii^'liiy inipoi't'iiit to tliu I'rovinut!, 
 
 "'I'll!) Coiniiiittoo I'lvoiiniicnd tlic iiliovt^ for tliii ii|)|novalof Yoin' Hxi illoncy, and, 
 "if Hunctioni'd, ruHjUictfully nM|U<!»t that a copy thereof hu at onct forwarded to tile 
 " Doniiiiioii (iovurninunt. 
 
 "(Certified) W, J. Akm«tr<in(i, 
 
 "Clerk, Kxocutive Couneil." 
 
 (18.) Two adilitional protcHts ftfifainst the non-fulfillment by Canada 
 of the 11 til Section of the Terms of Union were made In British Columbia: 
 one on the 22d November, 187U, by the Government of Britinh Columbia; 
 the other on the 'Jth February, 1874, by the Legislative Assembly of that 
 Province. 
 
 (19.) These statements of fact show conclusively that the Canadian 
 Government pledged itself iu the House of Commons aud by Order in 
 ('ouneil to build a lino of railway on Vancouver Island as jiart of the 
 Canadian Pacilic Railway; that such line, — iu case the Bute Inlet route 
 were adopted as the main trunk line of the Canadian Pacific Railway, — 
 should extend from Esquimalt to Seymour Narrows; that, — if thoBurrard 
 Inlet Route were udoj)ted, — a line of railway should bo constructed 
 between E.squiinalt and Nanaimo, as part of the Canadian Pacific Railway; 
 and tliat, in the latter case, a railway ferry should be established between 
 Nanaimo and Burrard Inlet. Ami further, they show that the Govoru- 
 ment of Canada, t)n June 30, 1873, became the possessor, in trust, of a belt 
 of land measmino 20 miles wide by 100 miles long, equal to ;3,200 square 
 miles, or 2,048,1100 acres, as part of the con.sideralion for the construction 
 of H section ol, railway between Esquimalt and Seymour Narrows. 
 
 (20.) The statement, therefore, in section 2 of the ro))ort as given 
 above, that the terminus was only fixed at Escpiimalt in view of the prob- 
 al)ility of the railway running by the way of Bute Inlet, is incorrect; 
 Ixicause it is shown by the pledge given by Sir Hector L. Langevin on 
 behalf of the Canadian Government, on the floor of the House of 
 Commons, by instructions of iIk^ C;ibinet, that if the Burrard Inlet route 
 were sele<!ted as the main trnidv line of the Camulian Pacific Railway, then 
 a line would be built between Escpiimalt and Nanaimo, and a railway ferry 
 be established between Nanaimo and Burrard Inlet; further, that, as 
 stated by the engine(!r in chief of the Caiuidian Pacific Railway, the 
 Government annouiured a decided i>referen(!e for Esquimalt as the 
 terminus, "whether Vancouver Islaml be reached by bridge or ferry;" 
 and that all the vacant agricultural and mineral lands along the line of 
 railway on Vancouver Island should bo secured U)V railway purposes; and 
 it has been further shown that the Order in Council fi.King the terminus 
 at Esquimalt, aiul ordering a line to be located between Esquimalt and 
 Seymour Narrows, — requested the transfer of 3,200 square miles of 
 agricultural and niineral lauds, .along the line of the railway, under the 
 
f - 
 
 22 
 
 lltli Section of the Terms of Union- iis no sncili request could legally 
 have been made except under !liat Section of the Terms of Union,— and 
 that the Government of (.'anuda accepted tlie said lands. Moreover, it ib 
 shown that a location hurvey was commenced at I'squimalt, in 1873, and, 
 as the Canadian Government cannot wish it to be inferred that such 
 location was made with the intention to deceive British Columbia, it must 
 be considered as having- been done with the bona fide intention of con- 
 sl'-ucting the I'.land section of the Ciiiiadian Pacilic Eailway. The binding 
 of ihe Allan Compunv under their Cliiuttr to build a railway from Esqui- 
 malt to Seymour Narrows, renders the sui)position incredible that the 
 terminus was fixed at Esquimalt merely in view of the probability of the 
 Bute Inlet route being selected as the main trunk line of Ihe Canadian 
 Pacific Kailway. 
 
 (21.) The statement "that the jilignment on the mainland was 
 wholly undeteri, lined, "—when the terminus was fixed at Es(iuimalt, when 
 the location survey of a line on Vancouver Tshmd. between Esquimalt 
 and Seymour Narrows was ordered, and wlun a recjuest was nuide for the 
 transfer bv British Columbia to Canada of •2.()4S,()IK) acres of huul,— does 
 not in any wiy affect Ihe obli.i^ation assumed l>y Canada to build a line of 
 railway fn'iu Esquimalt to N'anaimo and beyond, as part of the Ciinadian 
 Pacific Railway ; for the Allan Company had bef^^re l)eeome re>ponsible 
 for making tlie alignmeut on the mainluud. Besides that, the fact of the 
 alignment on the nuiinland being wholly undetermined was not sufficient 
 reirson why the terminus sliould not be 1)X( d, and the location of a line 
 of railway on Yan'-ouver Island ordered ; for it is manifest that the very- 
 first thing to have done towards constructing a line of railway to connect 
 the PacifU- with tlie railway system of Canada was to select the terminus, 
 and then construct from it" towards the railway system of Canada. 
 
 (22.) The nth Section of the Terms of Union allowed two years 
 within wliich to fix terminus, and then commence simultaneously at each 
 end of the line. It was well known in LSTl 2:5 to the Government of 
 Canada that there were only two possible routes from the coast of the 
 mainland, across the Cascade ^Mountains to the interior idateaux ; tlie 
 first was r'm Burraid Inlet, and the secon.l ivVfBute Inlet :— For, in 1871, 
 Sir Hector L. Langevm, as Minister of Public Works, visited Bute Inlet, 
 and personally inspected the route from Burrerd Inlet, .up theFiaser and 
 Thompson llivers, (Hi the line of railway at ]tresent, adopted, and also the 
 Harbors of Alberni an,l Esquimall ; and on May 2S, 1872, on the tloor of 
 the H()use of Commons; stated his preference for Esquimalt as the termi- 
 nus and Bute Inlet as the continental route,— and concluded by [iledgmg 
 the Government of Canada to const ru('t the line between Esfpiimalt and 
 ■Nanainio with a railway ferry to Bnrnird's Inlet. 
 
 (2:! ) Mr. Sanford Fleming, Chief Engineer, in his report on the 
 Canada Pacific Railway for 187(;-7, page 13, said, in giving air epitome of 
 the results of surveys in 1871 that,— 
 
 •' Tin; gnrvoy diil not begin in IJritisli t'uluinluii uiiUl tliu 20lii .iuly, 1S71, tlio day 
 " mion wliicli that I'lovincu bc'Laino incorpuratcMl into tlie Dominion. 
 *♦ « * * * * * * 
 
 •'It was foun<l tliat there would he no diliieulty in carrying a line from the V.dley 
 "of the river North I'Yaser, in the iieighliorhood of Tete .launo Caehe, to the valloy 
 "of the Nortii Thompson, hy a low and wide dejiression in the numntain.s in that 
 "((uarter. 
 
 " It was fo\ind that the valley of the North Thompson would, in all probability, 
 " admit of a liiu' being eonstrueted from Yellow Ilea.l I'assto Kandoops, a di.sUii'je ot 
 " iiij.O mUes, with graiies not exceeding hlty feel pel' mile. ^ 
 
 # 
 
 i 
 
23 
 
 " It was t'urthci- toiiiul th.it it was i)()>isil)le to reach tlic coast fioni Kamloops, by 
 " the coiirsi! aiul outlets of the livers 'J'iioTii[isoii and Fiaser, the line teiitiinatiiig at an 
 "excellent iiarhor on Bmrard Inlet. 
 
 "Thii!) it was ascertained that a liiiii was availalile for tiic Railway, throufjth the 
 "entiri' Rocky Mountain ll('gi(Mi, although poitioirs of it woiihl lie enomously 
 " expensi\ c." 
 
 Ou pag(! 11, of the Report of Iho Canadian Piicifu' Railway t'or 1874, Mr. 
 Fleming Huiil: — 
 
 •' in order to ac((uire a correct knowledge respecting the physical characteristics 
 " of the u hole rcrrit(U'y, and obtain sucii infornuition conceruinL! its eunincering 
 " features as oidy a iieis(jnal examination can furnish, 1 cousid(!red it necessary that I 
 " should undertake a personal r<ciinn;ussancc of (he several rcgiims proposed to be 
 " traversed by the rail\\ay. 
 
 " Accoi-dingly, early in .hd ,-. IsT'J. j stiirtcd with a sniidl ixpliiriilnry expedition 
 
 " t(> cross the Cuntiiient. 
 
 * * -^ ^ -' '-^ 
 
 " After a soniewhat fatii^uing jouiiiey thruuuh iuterniiuulile wiudialls and other 
 "biiidran<:es, we entered the tirst ran;;e of mountains on the 1 Itli Septeinpbcr, and oa 
 " till' l.")th reached the N'cUow Head I'mss. and camped near the ( oiitiuental Water 
 "Shed. 
 
 " I'ursuiu;,' iiio' JdUrney, we fi.'inwiil the river- l-'ia-cr finm its Yellow Head 
 " source to 'i'ete .lainie ( -acne, crossed (m-v U< the ( 'anoe river, the AUireda, and thence 
 " fdllowt'd the Nortli 'rhompsoii Kivcr to Kamloops. at which placi' we arrived <ai 
 " the evi'iiiii.Lj; of Sc[itcmlier "JSth. I'miii Kamloops uc traveled to Ls tton, ^'ale, and 
 "New Westminster, examined l',urr:ird Inlet, liute Inlet, Barclay Si iii nd, . 'Seymour 
 " Nail'ows, Dent, and .\rran Itajiids. visited interniediate )ioints, and on the 1 1th 
 "Oetolier linally arrived at N'ictoria. in Vancoiivci- Isliind, tiius completing a lecon- 
 " naissimcc u liicli alto:,'ethcr extcmk'il liver ."i,:i(M) miles." 
 
 * 
 
 i 
 
 Mr. Fleming; nuiciiiilcs this Report (])a<>-e 3-1), dated Ottawa at on January 
 2(itii, 187-1. on llie Canadian Pacilic Railwiiy, as follows: — 
 
 •'Th.-it the practinibility of istabli.shii.g railway comnninication aci-o>s the Con- 
 "tinent wholly within the limits of the |)ominiiin, is no InULiir .i matter of dnubt. It 
 " may, indeed, be now acce|itcii as a certainty that a route has been found, generally 
 " )iossessing favorable i ngiiucring features, with tiie exccjition of a short section a])- 
 " proaehing the i'acilir (\iast : which rmite, taking its entire length, including the ex- 
 "eeptionai section albnled to. v. ill, nn the average, show lighter work, and will re (uire 
 "less costly structures than have been nei'cssary on ni.-my nf the railways now in 
 "operation in the Dominion.' 
 
 ( 24.) It wiiUxj observed that these extracts show conclusively, thatthe 
 Caiiadiiin Goveinnient and their Chief Engineer knew, in 1871, — nearly 
 two years before the terminus was lociited at I'^squ'inalt and ii line ordered 
 to be loc'ited on Vancouver Island, — thiit there was an available route for 
 the railwjiy on the mainland; and that, in January, 1874, — about eight 
 inontlis after the Order in Council had been passi d to locate a railway and 
 terminus on Tancouver Island, — that the Chief Engineer ntated "that the 
 practic.diility of establishing a railway across the C'ontinent is no longer 
 u matter of doubt." It must ajipear, therefore, to every impartial person 
 that tiie statement made by the Canadian Government to excuse itself 
 from ciiriying out its obligations to construct the Esciu'iiialt-Nainamo 
 Railway, on «h> mere ground that the alignment on the mainland, iit the 
 time the terminus was lixed at Esquinndt, ' was wholly undetermined," 
 — is wholly untenable !ind cannot be entertained; particularly, as among 
 other things, the Raihviiy Land Reserve, Vancouver Islam^ has been con- 
 tinued from June ;iOtii, ]87:{, to July, 1881, — and that no later than April 
 14th, 188(1, Mr. Trntch, a confidential agent of the Dominion Goveru- 
 nieut, requested the Governnieut of British Columbia to convey nnu-e laud 
 by Statute to Canada, than the tpiantity iianmed in the Original Reserve 
 ioi' railway purposes on ^ ancou\i'r Island. 
 
Before dealing with the other poiuts iii Section 2 of the Report, it is nc- 
 cessarv to a, thonnif,'h understaiulin<? of tlie case of British Columbia 
 to refer lo some other matters: 
 
 ( 1.) On September 2'2n(l, 1871?, the Government of British Co- 
 lumbia requested the Canadian Government "to at once define, by survey, 
 the land they propose claiminjif on the east coast of Vancouver Island," 
 and to " apjioint, also, a compttent ])erson in the ]irovince to dispose of the 
 " lands on such terms as will admit oi' settlement." 
 
 ( 2.) The Canadiaii Government replied to this request as follows: — ■ 
 
 "I'lIK SKCIIKl'AllV OF STATK Til TIIK 1,1 Kl TKN ANT-COVKRNOR. 
 
 Ottawa, October 8, 1873. 
 
 " Sir : — I liave the honor to ackiiowledire the rocei|)t of your despatcli of tlie 22nd 
 " ultimo, on the sulijcct of the (iccuii:itioii ot lands rcsur\ed by tlie Dominion Govern- 
 " nieiit, anil to state that tlie same will receive due eonsidoration. 
 
 '■ [ have, kc, 
 
 ■EDWARD J. LANdF.VIX, 
 
 " Under Seeretary of State." 
 
 In this communication it is stated, that the question of the occupation 
 of RailwMV Land Reserve, between Esqiiimalt and Seymour Narrows, 
 would receive the consideration of the Canadian Goveriunent; and it will 
 be observed, by reference to page i), that they had on September IJrd pre- 
 vious, accepted its Reservation. 
 
 ( 3.) Nothing has since been done by Canada to throw open the Rail- 
 way Land Reserve on Vancouver Island to settlement, that is, for a period 
 of eight years and over. 
 
 ('i]) In May, 1S74, the Canadijin (iovcrniLient, tlirongii Mr. Edgar, 
 asked fur a relaxation of the time limit for tlie constrnctioii of the Cana- 
 dian racilic Railway, in tlie 11th Section of the Ternis of Union; and 
 proposed " to commences construct! ui from Esquinialt to Nanaimo imme- 
 diately, and to push that portion of railway on to completion with the 
 utmost vigor, and in the shortest [lo-^sible time.'" 
 
 (Jr.) Tlie negotiations wore, li.iwcver, un-^nccossful ; but the proposal 
 shows that tlu^ proposed I'ailway linm Esquinialt to Nanaimo was then 
 considered to be a part or portion id lln' Canadian I'aciiic Railway. 
 
 (5.) Subscijucntly, on Drceiiibir ISth, 1>S71, Canaiia agreed, through 
 the then Secretary of State for tlie Colonics, the Earl of CarnjU'von, " That 
 the railway from Esquimidt to Nanaimo shall be comuu'nced as soon as 
 possi\)le, and completed with all }iii.'-sibk' despatcli." J5ritish Columbia 
 \v\cs sati-tied with this part of the agreement, and fully expected that it 
 would be carried out. 
 
 ti 
 I^ 
 1 
 
 \ 
 
 n: 
 tl 
 k 
 it 
 
 C 
 b 
 
 ( n.) The Canadian Goveriunent, on ^larch 2r)tli, 1875, — in makingf 
 provision for the constriictiou of the Section of tiie t'anadian Pacifii; Rail- 
 way between Escpiimalt and Najiaimo, — recpiested the Government of 
 British Columbia to convev bv Statute, in aecordance with the 11th Sec- 
 
 B 
 
 re 
 b( 
 
Co- 
 
 25 
 
 tion of the terms of Ualoii; to Cuniida that {)ortion of the Eailway Land 
 
 Reserve on Vuiicouver Ihliuul, siiimted between Esqiiiraalt and Nanaimo. 
 The Order in Council to that ellect is as follows;— 
 
 '* tJopy of .1 Heport of tlie ITonoiahlu the Privy Council, approved l)y His Kxcollency 
 " thu (iovuruor-Oenural in ('oiiuLil on tlio •2')t\i tiny of Marcii, 187.'). 
 " On a nitnioranduin, dated •2M\ of March, 187."), from the Hon. the Minister of 
 '* Public Work.s, rcportini,' for the consideration of Council, that piior to the com- 
 ♦• nicncenicnt of any work.s of con.-itniclion on the proposed Itailway from Ks(iuimalt 
 "to Nanaimo, whii'h the Dominion Covernment have ai;reed to huild under the ar- 
 " rangement made through J.ord Carnarvon at the instance of P.ritish Coluud>ia, it is 
 " essential that the Province of Uritish Culumiiia should convey, hy lejjislatioii, to the 
 " Dominion (lovernnuiit in trust to he apjjropriated in sneii manner as the Dominion 
 " (ioyermneut may deem advisable, a similar'extent of public lauils along the line of 
 " Itaihv.ay hefoi'e mentioned (not to exceed twenty miles on each side of the said 
 " line) as may be ajipropriated for the same ptnpose by the Domhiion from the imblic 
 " lands of the Xorthuest 'J'eri'itorics and the Provinces of Manitob.-i, as provided in 
 " the Order in Council, section 11, admitting the Province of British Cohunbia into 
 "the Ccmfederation ; and that it is desirabh' that the ]5ritish Columbia Oovernment 
 " should he at once notilied that it will be necessary during the present Session of tiie 
 " Legislature of that Piovince to pass an Act so to "appropriate and set i\\nii-t lands to 
 " thifi extent, and for this purpose, the grant to be subject, otherwise, to all the cou- 
 " ditions contained in the said Kleventh Section of the Terms of Union. 
 
 " The Committee concur in the above report of the Minister of Public Works, 
 " and reconmiend the British Colundiia <roverument be notilied accordingly. 
 
 •'[Certified. J 
 
 VV. A. HIMSWORTH, 0. P. C." 
 
 (7.) This Order in Coum;!! expressly states that the Dominion Gov- 
 nient had agreed to build a Railway from Esqnimalt to Nanaimo; and 
 that British Columbia should be at oneo notified to convey, by legislation, 
 to Canada a belt of land along the line of the said Railway, iu conform- 
 ity with the lltli Section of the Terms of Union. 
 
 akin*; 
 
 (t.) British Columbia conveyed by Statute, on April 22d, 1875, to 
 Canada, the belt of laud between Esquimalt and Nanaimo as requested 
 by Canada, and as the following extract from ♦he Act shows: 
 
 '* All Art to authorize' t/ifl 'jmiit of cerhtin J'lihlir Lamh to the llovemmmit of the 
 " Vomhiiou of Cannild for liaihray purjiO''e:i. {Asm-iiIkI to :i2d Ajml, 1875.) 
 
 "Whereas, it U expedient to provi(}e for the grant of Public Lands to the Domin- 
 " ion (iovernment, requireil for a liailwav between the Town of Nanaimo and Esqui- 
 " malt Harbor; 
 
 " Therefore Her Majesty, by and with the advice and consent of the Legislative 
 " Assembly of tliu Province of British Columbia, enacts as follows;— 
 
 •• 1. From and after the passing of this Act, there shall be and there is hereby 
 "grained to the Dominion (i.ivernnieiit, for the purpose of constructing, and to 
 " aid in the construction of a liailway between the town of Nanaimo and Ksqni- 
 " malt llarljor, in trust to lie a|iproiiriated in such manner as the Dominion 
 "Covernment niav deem advisable, a similai- grant of Public Lands along the 
 " liiie of liailw.iy before ?uentioned (not to exceed '20 ndles on each side of the 
 "said line) as may be ap|)ropriated for the same puriiosi; by the Dominion from 
 "the Public Lands of the Xorthwest Territories and the Province of Matdtoba, 
 " as provided in the Order in (.'ouneil, Section 1 1. adnuttiiig the I'rovince of Brit- 
 " ish Cylumbia into Confedeiatioii ; such grant to be subject otherwise to all 
 " the conditions contained in the said 11th Section of the Terms of Union. 
 
 "7. Thin .\a may be cited as the Esquimau and Nanaimo Itailw.iy Act. 1875." 
 
 (i).) It is perfectly clear, therefore, tliat as between Canada and 
 Britisli Columbia, the Section between Esciuimalt and Nanaimo was 
 recogniiied as ])art of the Canadian Pacific Railway; for unless it had 
 been, the Canadian Govfrnment lnul wn right to notify British Columbia 
 
26 
 
 to convey by Statute the Railway Lands now held by Canada under 
 Reserve and' Statute on Vancouver Island to Canada under the llth Sec- 
 tion of the Terin« of Union. 
 
 (10.) In the Session of 1875, the Canadian Parliament voted 
 $500,000 for the construction of the Esquimalt and Nuuaimo StictioD of 
 the Canadian Pacific Railway. 
 
 (11.) The Location Surveys between Esquimalt and Nanairao, wer© 
 comiileted and nui])i)ed in 1875; and 5,000 tons of rails wt-re landed at 
 Esquimau and Nanaimo to iron the railway between those points. 
 
 (12.) On April 14th, 1880, Mr. Joseph W. Trutch, actinfT as a Con- 
 fidential Agent of the Canadian Government, and appointed under an 
 Order in Council, requested the Goverment of British Columbia to pro- 
 vide by legislation for the couvevauce of more land on Vancouver Island, 
 under" the llth Section of the Terms of Union. The following extract 
 from the letter of Mr. Trutch to Mr. Walkem, the Attorney-General of 
 British Columbia, shows conclusively the Claim made by the Canadian 
 Government to lands on Vancouver Island, up to lil'teen months ago. 
 
 " The urea to bo soleoted outsiac of tlic belt iiieiitioncd hIiouUI. in iKldition, in- 
 " cludo a (juautity of laiul to iviuvseiit that in the I'Vasi-r River Valley n'l.l elst- 
 " where aloii-r or in the vieinily of tiie Railway line wlueli may l)e toiinil to have been 
 " already disposed of l>y the I'rovince, or witli regard to whieli, valid ehunis may be 
 " preferred, as (t/so to rvtrr tin- ihjicU iinj niiiMil h;/ the International lioundary on tlie 
 •• Mainland uikI (lit njad line uii Vaiiro'iin r IMitiid n sf,, ,-fcnly fdlliii;} irilhia tlii' fori^J 
 '• lll'dr tivlt. 
 
 " 'l"he Dominion (ioveriunent eannot doulit that the I'rovineial CJoverinnelit uill 
 '• eonsider itself iiled>.'ed in jiood faitii in view of the whole eircumstanecs, and of thu 
 " aetual money con.sideralion stipulated for in the seetiou of the * Terms and (.'onoi- 
 " tions" above'eited, and whieli has been rej.'ularly paid, to (ilaee the DiMnuiioii (iov- 
 " eminent in jiossession of land clsi^where in lieu of the eorre.-pondmg area vvUhin 
 " the Railway belt, whieh may be found to be useless fiir agrieultural or othef valu- 
 '■ able purposes. 
 
 •• In aeeordanee with these views, and aetin,-; ns the Agent of the Domininn (lov- 
 "eminent, duly aeeredited to the ( ioverument of Jiritish Columbia under authority 
 •' of the Ordei-' in ('(Jiineil. dated the 'Joth February last, a eopy of wiiieK has been 
 " reeeived by His Honor tiie Lieutenaut-( lovernor, I have the honor to prefer tjn-' '■«• 
 " (piest that'llie rifiht above ch^lined of seleetinj,' lands outsiil- of the lorty-mde belt 
 " in lieu of lands within tliat limit whieh, on investigation, shall be found to be val- 
 '• neh'ss, ('»-/ tr, siij,iili/ tfi'' diji'-kiicij caust-il Inj the International Boundary ou the 
 " Mainland, mul Ih, c'oaxf line, on I'lnicoiiri'r 'idaml resjieetively falling within the 
 " tortyinile belt, be specilieuUv conveyed to the dominion by tlie insertion , of pro- 
 " visions to ihat ell'eet in the ' Kailway Lands Reservation iUU,' now under consider- 
 " atioii in the Legislative Assembly. 
 
 " I have, ttc, 
 
 ••JOSKI'll W. TllUTl'H." 
 
 (13.) All the lands reserved on Juno 30, 1873, for the Canadian 
 Government on Vancouver Island are still at its tlispusal— -the portion 
 between Esquimalt and Nanaimo being held under Statutory conveyance; 
 and that north of Nunaimo to Seymour Narrows tindc^' Ihi; Reservation 
 accepted by Can.'ida in iS73. 
 
 (U.) It will tlnis be seen that Canada has now in her possession a 
 belt of land extending from Esquimalt to Seymour Narrows on Van- 
 couver Island that she received from British dilumlna. on condition of 
 constructing a jiorlion of the Canadian Pacitic Ixaihvay through it ; and 
 that there has been a continuous and unbroken ehuin of possession from 
 June 30111,1873. to Julv, 1881. 
 
af 
 
 la under 
 nth Seo- 
 
 iectioD of 
 
 irao, were 
 liiiiiled at 
 
 as ft Con- 
 
 uiuler aa 
 ia to pro- 
 
 ei- Isl.'iml, 
 <^ extract 
 reiienil of 
 Caiiiulian 
 
 idditiim, in- 
 ■y ami ulso- 
 .() have beea 
 Una may be 
 ihay "11 the 
 I ill till/ forty 
 
 ;riniKiit will 
 
 S and of thu 
 
 iiiiiiiiiii < i(iv- 
 iiroa vitliin 
 ythft Villu- 
 
 miniiin <!ov'- 
 :ci- aiitliority 
 cli lias been 
 l-efi'i' the re- 
 ity-iuile belt 
 1(1 t(i be val- 
 idary ou the 
 witinn the 
 rtiiiii ,i)f pro- 
 lei" consider- 
 
 llUTl'H." 
 
 Ciinadian 
 ho portion 
 jiiveyauce; 
 k'scrvatiou 
 
 DSRCssion a 
 s on Van- 
 Jiidition of 
 (h it ; and 
 issjou from 
 
 I 
 
 i 
 
 (15.) It is coiitciiiled, tlieroforo, tliat Canada is morally and legally 
 bound to construct a Railway bctwcfMi Esquimalt and Nauaimo, and to 
 conntruct it as a part of tlic Canadian Pacific Railway. 
 
 The remalnin;:^ points, of Section 2 of the Report on the Petition to the 
 Queen, may now bo considered; and in the iirst place, " the objective 
 point to be reached by the Railway on the Pacific." 
 
 (1.) *• The objective point" was not named in 1H78, as the Terminus 
 in any Order in Council. In a letter of Mr. Braun, Secretary of the De- 
 partment of Public Works, dated Ottawa, jMay '29th, 1878, addressed to 
 the Under-Secretary of State for C'anada, with a request that it sliould be 
 comnuuiicated to the Government of British Columbiti, it is stated: — 
 
 " I am further dir<et«'d to slate that as liiu-iard Inlet mil in all pmhaliilit!/ he 
 '^ uihi]il<'il r/K till' Wistn-ii /'i-niiniii-i ii/ t/ir i'aiKuliiui I'lirijic Rdiliraii, it is deemed 
 ••iidvisable that .•> strip iif land.slundd be resirved for the eonveyance to the Dondniou 
 " »!(i\er'niMent. in ai^ordance with (lu^ lltii iiaraj^raoh of the Tcrnis of the l^nion, 
 " alum,' said line of railway, bei,'innini.' at I'liiglish liay, or linrrard Inlet, and foUow- 
 •' ini; the Riv(.:r Fraser to Lytton, thenei- liy the valley oi the Kiver Thomi)siin to 
 •• Kandoo[;Ss t)ieiic(^ up the valley of the North Tiiompson, passing near tu Lakes 
 " Albreda an<l C'r.inlierry to 'IVte daune Caelie; tlienee \\\t the valley of the I'Vaser 
 *' Kiver to the summit of V«llow Head, or boundary of British (Jolundiia and the 
 •• North- Wfst Tirritories." 
 
 (2.) "When this letter was written, it would appear that there was 
 only A {iTrd)al)ility that the Western Terminus of the Canadian Pacific 
 Railway wtnild ' be located " on Burrard InUt. It is true tliat an Order 
 in Council, that was intended for tlie purpose of cancelling' the Order in 
 Council of June 7th, 187:}, tixintr Esciuiinalt as the Terminus. )iad been 
 passed ou tlie 2;hd ]\Iay, 1878. But there arc j^Touuds for the l)elief tliat 
 it was done, mainly, in view of the (leiiend Election that was imniiiu'iit. 
 If the result of the election had been favorable to the then Government, 
 it is d(jul)tt'ul what weij^lit mi,oht have been attached to the Order in 
 Council of ]\ray 2lh'd, 1878. In fact, the letter of ]\[i. Braun was n()t 
 based on an Order in Council, at tUl. 
 
 {'\.) The Order in Council deliniiiLr the route of the Canadian Pacific 
 Railway from Tete Jaune Cache to Burrard's Inlet, was not passed till 
 July l:5th, 1878, iiliout two months iifter Mr. Braun's letter hail been 
 written. — aud it fixed no Terminus, but merely alludes to the terminal 
 ]ioinl ol' the Railway as " Port Moody or such other point on or near 
 Burntiil Inlet as may be most convenient for harbor accommodation," — 
 thus Icavin;; the Terminus on the Continental Section of British Cnhimbia 
 undetermined. For instance, it .says:— 
 
 "' 'I'hat later information has shown that it would be in the I'ublie iiitere.st that 
 " tlie route of tlie railway, frmii tlie m-igliborhoiid ol the 'I'ote .laune Caehe should 
 •• be toward iiurranl'.s lidet. 
 
 •* 'I'lie Minister, therefore, recommends that the route of the Kailroad shall be 
 " dilineil ■'.(•nerally a.^ pa.-iSiiif,' from the neigliborliood of tiie 'Pete .laune t'aelie, by 
 " till' .Mlireifti to the North Thomiison liiver, tow.irds Kainloops Lake, to the Fraser 
 " Valley at lytton, and tlienee deseeiiding the Valley of the Fraser by Yale and New 
 " Westminister, to I'oit Moody, or sueh otlier point on or near liuirard Inlet as may 
 •' be fMiiiid most eoiuenient for the )iurpose of harbor aeeoiiiinodation." 
 
 (4.) It will be observed, however, that the letter of Mr. Braun speaks 
 of the "line of Railway, bef^inninof at En<j;lish Bay or Burrard Inlet." 
 Eno'lish Bay or Burrard Iidel, according to Admiralty Charts, is 15 miles 
 from Port Moody, — iind. thus " the proposed beo^inuing"' of the Railway 
 seems to be in the direction of connection with Vancouver Island. 
 
28 
 
 (5.) What the increased iufornmtioii iimy bo is uiioeiiiiin, and possibly 
 not material, as the Order in Council cf l:3th July, 1H78, merely speaks 
 of it as "later information has shown that it would be in the Piibhc 
 Interest that the route of Railway " from Tete Jaunc Cache should be 
 towards Burrard Inlet. 
 
 ((•).) The alleged Revival of the Order in Council fixing Es(iuiraalt 
 as the Terminus in 187:J, was done by Order in (Council in April, 187i); 
 but it is remarkable that there is not a single word in it intimating lu the 
 slightest degree that it was done in consequence of further surveys near 
 Fort Simpson being necessary. The Government and Legislative Assem- 
 bly were, at that time, very urgent in their requests to learn what the 
 Dominion Government intended to do respociting Railway Construction 
 in British Columbia; and it is presumed that it was passed with the object 
 of " quieting" them. The whole tenor of the Order in Council seems to 
 be adverse to the supposition that it was passed as the consequence of a 
 determination on the part of the Canadian Government to make further 
 surveys "with reference to tlie advantages of a still more northern route." 
 That^t had been determined to make the further surveys, before the 
 Order in Council of the 22nd April, 1879, was passed, is no doubt correct. 
 The Order in Council is as follows; — 
 
 " Report of the I'rivy Council approTed by the Oovernor-General on the 22nd 
 April, 1879. 
 
 " On a mtmioraiKluni dated Kith April, 187!t, from the Hon. the Minister of I'uh- 
 " lie Works reiiresonting tiiat on a nieinoraniluni from the Chu^f Kngineer of the 
 "Cana.lian Pacific Itailway, dated 'J.'h-d May, 1878. an Order in Council was passed 
 "June 7th, 1S7:?, fixinjj; Ks(|uinialt, on Vancouver Island, as tlie 'IVrniinuH of that 
 "Railway in iSritish Columhia. Tiiat suhsequently, March 2r)th, 187r>, an Order in 
 "Council was passed, authorizing the Dominion (iovernnuint to notify the (Jovern- 
 " m.^nt of Britisli Columhia tliat it would lie necessary that the Legislature of that 
 " I'lovincc tlien in .Session should pass an Act setting aparl such extent of Public 
 " lauds along the line of the Railway in Vancouver Island in the manner set forth by 
 " the nth paragraph of the Terms (if Agreement of the Union. 
 
 " That on the ionl Mav, 1S78, the late Oovernmcnt had another Order iu Council 
 " jias.sed, cancelling that of" June 7th, 1S7:1, which fixed the Terminus at Es(iuimalt; 
 " but no reason appears to have been given for their action in the matter, uor is there 
 " any mention made of the Order in Council of March 2.")th, 1S75, which provides for 
 " the appropriation of the necessary lands in Vancouver Island. 
 
 " The Minister, therefore, recommends tli.at iu the absence of satisfactory 
 "reasons having been given for cancelling the Order in Couiu'il of June 7th, 1873, 
 " that the Order iu Council of May 2:h-d, 1878, cuiiLelling it, be annulled, and that 
 "of .June 7th, 1873, be revived. 
 
 " He also recommends that a copy of his Report to Council, if approved, be 
 •'furnislud to the Hon. Secretary of .State for transmission to the (iovernment of 
 " British Columbia for their information, 
 
 " The Committee sulmiit the above recouiinendations for your Excellency's 
 " apiiroviil, 
 
 " (Certified) W. A. Himsworth, 
 
 " Clerk I'rivy Council, Canada.*' 
 
 (7.) It mav be remarked that, notwithstanding the '• further exami- 
 nations with reference to the advantages of a still more northern route 
 which should terminate at Fort Simpson," it was well understood in the 
 Department of Railways and Canals, that the Railway would be com- 
 menced on Fraser River. 
 
 (8.) It is stated that the object in view in reviving the Order in 
 Council of thn 7th June. 187:i, fixing the Terminus at Esquimalt, was to 
 "keep the whole question entirely free until additional exploratory 
 
29 
 
 id possibly 
 
 •I'ly speaks 
 
 the Public 
 
 shuuUl be 
 
 Esquimau 
 L|.ril, 187!) ; 
 tiiij^ iu the 
 irveys near 
 Live Assem- 
 n what the 
 oustruction 
 1 the object 
 Ml seems to 
 pience of a 
 ake further 
 lern route." 
 
 before the 
 abt correct. 
 
 on the 2211(1 
 
 iiister of I'ub- 
 igincur of the 
 cil was passed 
 iiiinuH of tliat 
 '), an Oilier in 
 y the (Jovern- 
 ilature of that 
 ;eut of Public 
 .!!• set forth by 
 
 ilcr iu Council 
 at Ksijuiinalt; 
 :r, nor is there 
 :h provides for 
 
 if satisfactory 
 unc 7th, 1873, 
 lied, and that 
 
 approved, be 
 Jovernment of 
 
 r Excellency's 
 
 hI, Canada." 
 
 •tlier exami- 
 ;'theru route 
 itood in the 
 .lid be com- 
 
 he Order in 
 
 iialt, was to 
 
 exploratory 
 
 surveys should be made." But it is submitted that the alleged revival of 
 the Oi'dor in Council of the 7tli June, 1873, instead of keeping the whole 
 question free, really re-tixed the Terminus under tlie Railway Act of 1874, 
 at Esquimau. 
 
 (9.) The Order in Council of the !th of October, 1879, merely con- 
 firmed the Onler in Council of July lljth, 1S78, uh to the route of the 
 Cuniuliiin Pacific Hallway, on the (continental portion of British Columbia, 
 and 'lid not revoke the Order in Council of the 2"2nd April, 187i), re-tixing 
 Esquimau, as the Terminus. The Order iu Council cancelling the 
 Terminus at Esquimalt is as follows:— 
 
 "Copy of a re])ort of a Cominittee of the Honorable the Privy Council, approved by 
 " Mis Exeellfticy the (iovernor-Ceneral in Council on the 2;M May, lfS7<S. 
 " The Coiiiinittee of (council have the lioiior to reiioninicnd that th<^ order in 
 "('ouiicil of tiie 7tli .lime. 187;^, tixiiifj; Esquimalt in Vancouvei'"s l^land, as the tor- 
 "minus of the Canadian i'ai.'ilic Riulway, and reipiiiiny the cunveyance to tiie Can- 
 " adian (Joverninent of a stiip of land 20 miles iu widtli, jiIoiil; the Kastern coast of 
 " Vancouver's Island, hetween Seymour's Nairows and the harbor of Ksquimalt be 
 " rescinded, 
 
 "Certified, W. A. HIMSWORTH, C. l\ C." 
 
 (10.) Nowhere in the Act entitled " An Act respecting the Canadian 
 Pacific Railway," which was passed in the hist session of C;iniidian Par- 
 liiinient, 1881, to coiilirm " the contract" mnde with Mr. George Stephen 
 and others, now known as ' The Canadian Pacific lliiilway Conipany,' is 
 there any mention made of a terminus; but it is said in schedule A of 
 that Act, that " any extension of the main line of railway that shall here- 
 after he constructed or acquired by the Conipiiny, shall constitute the Hue 
 of railway hereinafter called the " Canadian Pacific Railway." 
 
 (11.) Were it not stated in section 2 of the report under consider- 
 ation, that in Octolier, 1879, Biirrard Inlet "was tinally made as the ter- 
 minus on the Pacific Coast of the Canailiau Pacific llailway," it would not 
 otherwir.e have been known, as no order in Council to that effect exists, or 
 it would have been submitled to Parliament. But even that statement 
 seems only to extend to the terminus on the Continental section of British 
 ColuniViia'; for, it will be [emarked, that it is stated that " Burrard Inlet 
 was tinally made as the terminus on the Pacific Coast of tiie Canadian 
 Pacific Railway, rendering iinuecessary the line between Nanaiino and 
 Escpiimalt as a condition of the Union with British Columbia;" but it ia 
 not stated that it is not necessary to construct the section between Nau- 
 aimo and Esquimalt as essential to the commercial success of the Can- 
 adian Pacific Railway. 
 
 (12.) Port Moody as the mainland terminus is not objected to, nor is 
 it the wish of the Government and Legislative Assembly, as expressed ia 
 the petition to the Queen, to do so; but it is contended that the intend- 
 ment of the 11th section of the Terms of Union is that the ocean ter- 
 minus of the Canadian Pacilic Railway should be jilaced at such a com- 
 manding point on the Pacilic coast as would ensure its commercial suc- 
 cess in competition with the Northern Pacific Railway, and where it would 
 be most valuable for defence in tlie event of war. 
 
 (13.) Mr. Sanford rieming in his Report for 1878, on the Canadian 
 Pacific Railway, page 13, says: — 
 
 " Burrard Inlet is not so eligible a terminal )iointas Ksijuiiualt. It cannot be ap- 
 " proached from the ocean except by navigation more or less intricate; nor can it be 
 " reached by large sea-going ships, without passing at no great distance from a group 
 
30 
 
 " of islands in tho iiosscssion of i\ ti.riiKU |)u\ui, wliicli may at any time .iHsume a 
 " liostilo ivttitniU^ imd intorfuru with tlio ihismuul' i>f vi'sijtjU." * * "It is 
 
 '• inipossiblf, howtiviT, to dony tliat, other thiiiK-s ^uing e(iual, Ksqiuinialt aa » Imibor 
 •• and terminal point is superior to Hiumnl inh t." 
 
 (14.) Admiml De Horwey in his report reHpectinpf the terminus of the 
 Ciumdian Pacilic Railway, to the LohIh CommisHiouers of the Admiralty, 
 Dated on board Her Majesty's ship "Shah," at Esquimalt. 2Gth of Octo- 
 ber, 1877, also says, speaking of Esiiuimalt, that— 
 
 " Tliis port is cu.sv dud safo of approndi at all tiniea: itsdook (to tako the largest 
 " «hips) has been I'oniim'ui'ccl. anil tlicro is reason to think that the line coming from 
 " the iirineipal eoUieries and iron districts on Vancouver Island, otiglit to pay itself 
 " in great part liy tho eonvi^vanee ot minerals to Ks.|iiininlt for shipment. Not only 
 " for trade, l)ut ior the siijipiy of eoal to Her Majesty's wpiadron at Ksipnmalt, a hne 
 " a line of rail from Naiiaini'o would l)e advantageous, as the possession of San Juan 
 " nii-ht enable thi^ United Stales, iu ease of war, to cut ofl' our supply from the 
 " ndnes by sea." 
 
 (15.) The Cauadiiin Cxovernment, liariiio- selected the Burrard Inlet 
 ronle as the line for the Canadian racitic Railway, cannot overlook the 
 difficulties in apin-oachinf,' Port Moody by .sea. If Vancouver Island were 
 not between it and the ocean, no (juestion could be successfully raised 
 a-'iiinst its unaninio\is adoption us the sole Western teniiinus of that rail- 
 w^iy on the Pacific Ocean. But Vanconver Ishuid. with tlie Archipelago 
 lyiiig between the Strait of Puca and the Strait of Georgia, renders that 
 inniossible; and makes Esciuimidt, on Vancouver Island, and Port Moody 
 and Burrard Inlet on tlie Mainhmd, the joint ;ind natural terminus of the 
 Canadian Pacific Railway on llic Pacific^ Ocean. It is with this view that 
 the petition to the (iuecli is Iruiued. But (.'ven if that had not been the 
 case, the physical and ^xilitical geography of the country between the 
 Pacilic Ocean i)roper and Port Moody, points out that E.squiiualt is esseii- 
 tial to Burrard Inlet, and c/'V versa. The competition that will inevi- 
 tably arise between the Northern Pacilic Railway and th(! CaiKulian Pa- 
 cific" Railway, rendeis a line of railway from Escpiimalt to Nanaimo with 
 a feiry to Burrard Inlet, absolutely essential to the commercial success of 
 tUt' latter as a trans-cuntineutal line. 
 
 6. Sections 3(?) und 4 of tho report are as follows; 
 
 ••* state for tho Colonics, hiiv- 
 
 ■lupensate I'.i tisli Co- 
 
 . .' liocome known as 
 
 f 'liiijs, tliat 'tlie rail- 
 
 ■ "I as possible, and 
 
 ■.s. . rily a ])art of the 
 
 (it of tlie conditions of 
 
 "(:!•) bi ls74ller Majesty's T'riii'ipal Seer. 
 '• iili; hail till' matter submitted to liiiii, ha<l s", 
 '• iunil»ia for ,xi.st and pmliablc I'uturc delays ' wlu. 
 " 'Jv)!-!! CarnarvoM s 'ri'inis.' which provided, aiiioig.- 
 " way from i'lsipiiiiialt to Xanainio should be coimiic,-, 
 " completed with all piiicticable dispatch,' but this was 
 'M'aiiadiuii Paeitie l\aiiw:iy, and not essential to ihu full! 
 "tlie I'liion with Uritish ('olumbia, 
 
 • " These terms wen; the suggestions of the fliiii Secretary of State for the Colo- 
 '♦llies, made for the purpose of (piictin'i the dillcrenecs wliieh had arise n between tiie 
 "(ioveriimeiit of the D.iminion and the I'rovinee of British Coluiiibia, growing 
 "out of tlie loll" delays in commencing works of eonstruetion, and which li.ul formed 
 " the siibji'ctof "continuous and acrimonious coiiii>laiiit on tlie part of the i'rovinee. 
 " Lord faniarvmi's su;ig(^stions were entitled to every respect, but although adopted 
 " t>V tlie (Joveniinent of tlii^ day, they never received the sanction of the I'arliament 
 " iti the Dominion, and never acipiired the fnrc<' of a natiiuial compact. 
 
 "<4.) On the contrary, in the si-ssion of 187'', v.ith the view of seeking to give 
 " t'llect to these 'terms," a bill li.iviiig been introduced by the < iovernincnt into the 
 'TaiKuliau House of (.'ommoiis providing for the construction of the Msiinimalt and 
 •• Xanainio liiu', a step which w>uld not h:ive been ncces^iary, it may be observed, 
 "iiadthat line formed necessarily part of the Ciiiadian I'acitic Railway. The bill 
 " tiioiigli p;is.sed b\ tin; lloiise of romiiKUis was lost in t^ie Seiiata, and conscijuently 
 " Parliamentary .-^auctii'li |-efused tti the e:iiisti le.'tioii of wliat was regarded by the 
 " majority in tlic Senate as ,!, I'roviiicial Wiiik iiiiite unue.jessary to the fullillnieiit of 
 " tU'' Terms tif rniou >*itli i5iiti«l> r<.!!n!!!,ii!,' 
 
81 
 
 1110 assume a 
 • " It is 
 
 It M a 1 1 arbor 
 
 inus of the 
 Adminilty, 
 til of Octo- 
 
 ko the largest 
 ! coming from 
 t to pay itself 
 it. Not only 
 inimalt, a line 
 I of San Juan 
 ply from the 
 
 I 
 
 The chief points in these twu Heutiuus that deserve particular notice are 
 as follows: — 
 
 (1.) Tliat what are known as "Lord Carnarvon's Terras" were sug- 
 fjested " to coiuponsate British Columbia for past and probable future de- 
 lays." 
 
 (2.) That the condition that " the railway from Esquimalt to Nanaimo 
 should be commenced as soon as possible, and completed with all possi- 
 ble dispatch," was part cf the compensation. 
 
 (!J.) That, nevertheless, that railway "was not necessarily a part of 
 the Cimadiau Pacilic Railway, and not essential to the fulfillment of the 
 conditions of the Union with British Columbia." 
 
 irrard Inlet 
 verluok the 
 [sliind were 
 fully raised 
 )f that rail- 
 Vrchipelngo 
 iiiders that 
 Port Moody 
 liiius of tiie 
 is view tliat 
 )t been the 
 jeUveeu the 
 alt is essen- 
 will iiKfvi- 
 uiudian i'a- 
 luaimo with 
 il success of 
 
 Colonies, Imv- 
 to I'.itish Co- 
 ine known a.s 
 tliat 'tlio rail- 
 poHsihlf, anil 
 ' a |>art of the 
 e conditions of 
 
 '. for the Colo- 
 Lii 1 let ween the 
 uliia, growing 
 a:\\ h.-ul formed 
 tlie i'rovince. 
 hough adopted 
 he I'arlianient 
 
 sei.'king to give 
 inient into the 
 i'!si|uinialt anil 
 ,' l)e oh.scrved, 
 ,vay. The liill 
 I eonsccjuently 
 garded liy the 
 fullillment of 
 
 I 
 
 (4.) Tliat "Lord Carnarvon's Terms were 'sugpfestions' that were 
 made for the purpose of quietinj^ the differences whicli had arisen be- 
 tween (Tovernmont of the Dominion and the Province of British Colum- 
 bia, growiuo; out of the long delays in commencing works of construction." 
 
 (5.) That "Lord Carnarvon's Terms" never received the sanction of 
 the Parliament of the Dominion, and never acquired the force of a na- 
 tional compact. 
 
 (6.) That a bill was introduced, in 1875, into the Canadian House 
 of Commons, providing for tlio construction of tlie Esc^uimalt and Nanai- 
 mo line; and that it "would not luivobeen necessary had that line formed 
 necessarily a part of the Canadian Pacific Railway." 
 
 (7.) Tliat the Bill passed the House of ('ommons, but was rejected 
 by the Senate, and never received tlie Sanction of Parliament; and that a 
 majtu'ity in the Senate regarded the Esqnimalt and Nanaimo Railway as a 
 Provinci.'il work, quite unnecessary to the fuliillnicnt of the Terms of Union 
 with British Columbia. 
 
 7. In considering the above points, it is necessary to state : — 
 
 (1.) That the quotation "to compensate British Columbia for past 
 and probable future delays,'" is not contained in Lord Carnarvon's Des- 
 patches. 
 
 t 
 
 (2.) Canada was bound at the time Lord Carnarvon wrote his des- 
 patches of .A.ugust KJth and November 17th, 1874, to complete the Cana- 
 dian Pacilic Railway by July 20th, 1881; and referring to Lord Duli'erin'a 
 Ministers, he said, that "tiiey will not on the other hand fail to bear in 
 iniiul, that even after these concessions ant made, British Columbia will 
 receive considerably less than was promised her as the condition of enter- 
 ing the Dominion. " 
 
 (!1) Instead of "Lord Carnarvon's Terms" being suggested "to 
 compensate British Columbia for ])ast and probable future delays," they 
 were declared to be "in tlie nature of a compromise," by which that Prov- 
 ince made an im])ortant concession to Canada, by exteinling tlie time limit 
 for completing the Canadian Pacilic Railway from the Pacific Seaboard 
 
82 
 
 to Lake SujKrior, from July '2()tli, 1881, to l)(!<!«'inl)or :il8t, 1890, niul by 
 abundonirif,' any dclinito period for llio coMij)lotioii of tlic roiuiiiiiirif^ por- 
 tion of tlic Cariudiiin Pacific Railway between Lake Superior and the Rail- 
 way System of Cauada. 
 
 (4.) Lord Carnarvon also stated that under liis "decision" "the Do- 
 minion will be relieved of a consideraltly part of those obli<^ations which 
 were assumed in the lirst instance" in 1871. 
 
 (5.) It is evident, therefore, that as the Dominion was to be a pfainor, 
 and British Coluiiii)ia a loser, that compensation was impossible. 
 
 (C.) The lanf;iia;,'e of Lord Ciiinarvon on this subject, as contained 
 in his despatch of Noveml)er 17, 187-1, conveyinj,' his linal decision, is as 
 follows: 
 
 "1 cxplairuMl very fully i" my (k'sputdi of tiiu Kitli August, thf o|iiuion which I 
 "outortairit'il on cacli of thi; luiiiciiial (|iicstic)iiM at is'<iii', iiiul [ iiccmI how iuh\ hut lit- 
 " til! to till' Hiinpk' Htatouicut of my decision. That decision is necessarily, as hoth 
 "parties iiro iiware in the nature of eoni|irotnise, and as such it may ])erliaps fall short 
 " of ^'iving complete satisfaction to either. If on the one haM<l yoiir .Ministers, as you 
 " inform nie, consent with rehietauec to the further concessions which, at an earlier 
 " staj,'e, I suggested, they will not on the other hand fail to licjir in inind that even 
 "after those concessions are made. Ilritish (>)luinhia will receive considerahly less than 
 "was promised to her as the condition (it entcriiij,' the Doniinion. 1 prefer rather to 
 "relleet that und(tr the iimendcd terms now to he estahlisheil, Uritisii C'olnnd)ia will, 
 "after all, receive very f,'rcat and substantial advanta^jes fiom its union with (Jaiiada, 
 " wliilc! the Doniinion will he relieved of a considerahic part of those oliligationH which 
 "were assumed in the lirst instance without a sidlicient knowledge of the local condi- 
 " tions under which so cnoinious atul dillicult an underlaUinj,' was to he carried into 
 " etfeet, and to fultill which would seriously emharrass the resinirces of even so prosper- 
 " ous a country as Canada. " 
 
 (7.) It follows, therefore, that the Esquinialt and Nanainio Section 
 of the Cimiidian Pacific Railway was not "siio>,'ested" to compensate Brit- 
 ish Columbia for past, and probable future delays. Besides that, the line 
 between Esquimalt ami Natiaimo had a year and a half before been de- 
 clared part of the Railway. 
 
 (8.) It has been shown in cou8iderin<,' section 2 that by the intend- 
 ment of the lltli Section of Terms of Uni>m, the FiScpiimalt'and Nanaimo 
 Section was necessarily, for pliysical, political, tiud commercial reasons, a 
 part of the Canaiiian Pacitii^ Railwtiy, iiiid wjis "essential to the fulfillment 
 of the conditions of the Union with Briti.sh Columbia." 
 
 (9.) It is stated that Lord Carnarvon's "su^'f,'estions" were made for 
 "quieliiif,' the diiFerencfes which had arisen between the Government of 
 the D(}miiiion and the Province of British Columbia, ojrowiiig out of the 
 long delays in commencing works of construction." That being the case 
 in 1874, when there had been only about eighteen months' delay, how 
 much more binding ought those "suggestions" to be now after seven years 
 more delay. 
 
 (10.) The iinswer to the remaining points is, that the Canadian Gov- 
 ernment practic.'illy recognized that Esquimalt and Nanaimo Section was 
 "nece.ssarily a part of the Caiia<liaii Pacific, when it afiplied in 1875 for 
 lands on Vancouver Island, under the 11th Section of the Terms of Union, 
 and had tliem conveyed to Cantida by Statute in that year, and hy con- 
 tinuing the Order in Council of the '7th June, 1873, fixing Esquimalt as 
 
33 
 
 )0, ftud by 
 inirif^ por- 
 il tho Iluil- 
 
 ' "theDo- 
 oiis Avhich 
 
 e a pfniner, 
 e. 
 
 containfid 
 sioii, is as 
 
 lion which I 
 .'1(1(1 hut lit- 
 •ily, .a.s hoth 
 ips fall short 
 steps, as you 
 at an earlier 
 it that even 
 l)ly less than 
 fur ratlier to 
 ihiiiii)ia will, 
 V itli (Jaiiada, 
 itionH wliiuli 
 local condi- 
 carriod into 
 n HO prosper- 
 
 lo Section 
 
 isate Brit- 
 
 t, the line 
 
 been de- 
 
 e intend- 
 
 Niinaimo 
 
 reasons, a 
 
 ulfillmeut 
 
 I made for 
 rnment of 
 out of the 
 ^ tiie case 
 el ay, how 
 3ven years 
 
 tlian Gov- 
 ction was 
 1 1875 for 
 of Union, 
 [ \)y con- 
 luimalt as 
 
 tho TorniiniiH, and orderin<,' n line of Hallway to bo located between Es- 
 qniinalt and Seymour Narrows. Tlut mere fact of a majority of the Sen- 
 ate holdiii-,' that tiio Kmiuinialt-Naiiaiiiio Section was a I'rovincial work, 
 did not make it ho, in the faco of Ordors in Council under the Terms of 
 Union and tho Railway Sta: tes of 1872 and 1874, to tho contrary. 
 
 (11.) It will bo remembered that Sir Hector L. Langevin saiil, ou 
 April 5th, 187(i, in the House of Commons: 
 
 "The portion of the line from thi,' inner watci'ts of Uritish ('oliinil>ia to l''.S(|n 
 ' was not c(iii.si(ler(^(i, iimt was not treated in tliese Aets, (Acts imoiiioratinj,' the 
 'adian I'acitic Kailuay Company and liiterocuaniu C'oii.panyias a hrancli, l)Ut 
 •extension and a portion or tlu^ Itiiilw ay. « » * If it MJiould lie determimd 
 'tlieroad must come to liurrard lidet, "instead of liute lidet, we wouhl have to 
 'across to Nanainio, which wouhl occupy an liour and a iialf. • » • 'Plu.y 
 'hound to huild the road to l':s(|uinialt on the west, wliii h was tlie terminus 
 ' upon at the time, lie would 140 further, and say that tliey were iwund of nec< 
 'to iiuild it to that point in order to c(jmpet(i snccc-sfully with the American 
 
 ' way (tiie N'ortliei'n I'acilic) for the tra^ 
 
 tlie Kast. ' 
 
 imalt 
 ('a li- 
 as an 
 I that 
 ferry 
 wcrt! 
 fixed 
 •ssity 
 Uail- 
 
 Those statomcntsof tho present iMinistor of Public AVorks for Cunnda, 
 make it clear that the construct' -n of the Canadian Pacilu! lluihvay betwoeii 
 Es(|uiniaU, and Nanainio is a ncc-ssity, in order to coni[iete successfully with 
 Northern racitic Kailway, and consequently noces.sary to tho fuUillmunt of 
 the 11th Section of the Terms of Union. 
 
 (12.) Lord Dufl'erin, in his speech delivered at Victoria, Septond)er 
 20th, 187(1, said that, "Every sinpfle item of tho ' Carnarvon Terms,' is at 
 this moment in the course of fulfillment." 
 
 This utterance of it.self, expressive of the intentions of the Canadian 
 Government, is a sulticient reply to tho statenujut that the " Canarvon 
 Terms " had not been sanctioned by the Caniulian rarliament, and im- 
 plied that measures would be introduced into Parliament to make those 
 terms operative. 
 
 8. The 5th Section of the Report is as follows : 
 
 The nccesf-itv of 
 
 I considerations of topoi,'raphy and soil, Ijcforc emluu'king in 
 " tliu construcHon of so gigantic a worlv, will In^ admitted." 
 
 The points of this section deserving of notice are : — 
 
 (1.) That there was necessit- for extended examination 01 tho 
 (lift'erent possible routes for a lino of railway running across the Con- 
 tinent. 
 
 (2.) That lono- distances through very difficult country caused much 
 lime to be occupietl in exploratory surveys. 
 
u 
 
 (8.) Tliiit 111.' (lini<Miltic8 of Holroting tlio 1)iihh tliioii<»li which to 
 cioHH tho lUnVy MouiilaiiiH prolonged the jierioa bofoio coiiHtruction 
 could 1)(' (•oiimicnccd. 
 
 (1) Timt the time wiih proloii^'ed ill nettling tlio hcKt lino from 
 the " MUiuuiit " of the Kucky Moiiiitiiins to the Paeitie CuiihI. 
 
 (5.) That tho ditrutidtioH in the Holectioii of a teriiiiiiuH on the Pacific 
 CottHt prolonncd the period before which woilih of conHtnictioii coiild pru- 
 dently bo begun. 
 
 (G.) That the magnitudo of tho exploratory und proliuiinary survoyH 
 may be eHti mated by the total cost, $3,500,(11)0. 
 
 (7.) That tho noceHsity for exhaustive exaiiiiimtioiia for tho best line, 
 including topography ami Huil, before coniinoncing conHtruction, nuiHt be 
 admitted. 
 
 U. The pointH enumerated in this section of the report are more or less cor- 
 rect, but cannot be paHsed over without conHideratioii :— 
 
 (1.) It in admitted that exhaustive exaiiiiiiations were necessary for 
 a line of railway across tlie Continent. Hut it is not admitted that there 
 was any necessity to speinl eiglit yciirs from July, IHTI, to November, 
 1870, in making such examinations. 
 
 (2.) Whether the distances were long and the country very difficult 
 to explore, or not, it is a fact that the t'liief Kngineer stated, in his report 
 of January •Jtitli, 1871, as already cpioted, that "the piacticahihty of 
 " estiiblisl'iing railway communication across the (Continent, wholly within 
 " the limits of the liominioii, is no longer a matter of doubt." It there- 
 fore, follows, thai eight years ago the Chief Engineer reported to the 
 Canadian aovornment that a line of railway across the Continent was 
 practicable ; and that its average cost would be less than on many of the 
 railwiivs then in operatinii in the Dominion. 
 
 {:').) The very dilBcull country to exi)lore referred to in section 5 of 
 the report, certaiiilv did not include tho 1,200 miles west of lied Kiver ; 
 for the Government as well as the railway " syndicate " have stated that 
 it would be built and completed to the foot of tho Ilocdiy Mountains 
 within three years, or in 1881. It follows, that the ditlicult country must 
 be east and west of the "Central Section " of the Canadian Pacific Rail- 
 way. It is well known that from the date of tho Canarvon Terms in 
 November, 1871 to 1880, the eastern end of tho railway from Lake 
 Superior to Nipissing was abandoned, excei)t an abortive attempt to con- 
 struct a branch line from Georgian Bay, rin French llivor to connect with 
 the Canada Central at Renfrew. Besides that, the Chief Engineer, in his 
 report tor 1877, page 18, says, that wlien the season closed in 1872, " it 
 was established that tho railway could be constructed from tho River 
 Ottawa to Red River, rin tiic northern side of Lake Nipegon, and that 
 neither tho work nor the gradients would be exceptionally heavy." These 
 facts may be taken as an answer to the statement of prolonged delays in 
 surveys so far as what is now called " the Eastern Section " is concerned. 
 
 As to tho surveys in the western section, it has already been stated 
 elsewhere on the aiithoritv of the Chief Engineer that an available line 
 for the railway had been found through British Columbia from the sum- 
 
 ^^^B 
 
 ^ 
 
86 
 
 li which to 
 oiiHtruction 
 
 liiift from 
 
 I ho Piinific 
 couUl pru- 
 
 ^ry BurvoyH 
 
 10 best lino, 
 )n, immt be 
 
 or leHS cor- 
 
 BcosHiiry for 
 
 1 that tliere 
 
 November, 
 
 ory difficult 
 11 liiH rt'iiort 
 iciihility of 
 lollv withiu 
 " it thore- 
 tji'totl to the 
 itiiieiit wiia 
 iijuiy of the 
 
 section 5 of 
 lied llivcr ; 
 ! stated tliat 
 ' Mountiiius 
 [)untry must 
 L'aeitic Rail- 
 in Terms in 
 from Lake 
 mpt to cou- 
 onnoct with 
 iuoer, in his 
 1 1872, "it 
 a the River 
 .)n, and that 
 vy." These 
 d delays in 
 5 concerned. 
 
 been stated 
 vailable line 
 om the sum- 
 
 mit of Ytllow Head PasH to the coufit iu 1871- 
 by him in hiu report uf 1874. 
 
 -nud that wuh coutirmud 
 
 4 
 
 (4.) Th«' statement that there was ditficulty iit Helcctinj? a paBB 
 throiif,'h wliich to cvohh the Rocky Mounlnins, and that tlmt pri)lon(,'od 
 tjjo time is a mistake. For all tin) passes south of Yellow Head I'aHS 
 wre abandoned in 1872, — and Yellow Head liecamo an accepted crossing. 
 In 1M7(!, an order in coiiiKiil was passed locatinf,' the lin«) of the Canadian 
 Pacific Hailway from Yellow Head Pass to Fort (leorf^'e, via the North 
 Fraser, witli a vic^w of teriuinatiiif,' either at Dean's Canal or JJuto Inlet. 
 The only actual delay apparently, in relation to Yellow Head Pass was 
 iu 187U, when exjilorin*,' parties were sent to Port Simj)son and Pine and 
 Peace Rivers ; and that route had lieen well explored before, and tlie line 
 via Yellow Head Pass to Ibirrard Inlet ailopted, formally, by order iu 
 Council, on July llUii, 1878. 
 
 (5.) But the time occupied in iiialdno' the surveys in British 
 Columhia is now admitted to be n fault of administration, and not 
 duo to the character of the country. The Chief En<,'ineer, Mr. 
 Fleming, has admitted before tlie Royal Railway Commission re- 
 cently, that if he had to order the surveys a;^ain they would bo 
 managed dilVerently. And, what is very important, ]\fr. Walter iMoberly, 
 a civil engineer, who had been employed in command of a surveying 
 party, and who had been familiar with British (Jolumbia as Assistant 
 Commissioner of Lands and Works bcjfore Union, is reported as having 
 r(!ceiit]y testified l)el'ore Mie Royal Coiiiiiiission, that twoyears' time, from 
 July 2Ulli, 1871, was sutlicieiit to tietermine the route generally of the 
 lino liirough British Columbia ; and that the cost of surveys iieed not 
 have been more than J<11K),01H» or !?rj()0,(i(l(). 
 
 ((1.) It has already been shown that the ocean terminus of the 
 Canadian Pacilic Railway had been selected in 187;j, and that the Order 
 in Council of April 22ii(l, 1H7!), reviving ami conlirmiii|>- that selection, is 
 still in force ; and, it is submitted, cannot bo changed without sjiecial 
 legislation. 
 
 (7.) No one familiar with the geograiihy and climate of the Pacific 
 Coast of British Columlaa, and competent to form an o]iiiii()n, could 
 hesitate for a juoment as to where the ocean terminus must be placed. 
 Noi'th of Bute Inlet to Alaska, the climate and harbor accommodation 
 and approaclies from the ocean render any consideration of that coast 
 useless. This is coiilinnetl by admiralty reports. The onlj two routes 
 l)()ssibk) were vi(t Burrard Inlet and Bute Inlet. Either of those routes 
 necessitated !in ocean terminus at some harbor on Vancouver Island. If 
 any delay be admissible at all, it would be confined simply to a choice 
 between those routes; and tliat choice fell on Burrard Inlet^'oute. The 
 time taken to determine which of the two routes it would be most de- 
 sirable to select, was extended beyond all reasonable limits. For, it had 
 been for years shown that tlie railway could be prudently commenced at 
 one or the other inlet, and the construction from the coast to the summit 
 of Yellow Head Pass, common to both routes, could have been com- 
 menced within the period fixed in the 11th Section of the Terms of Union, 
 or at latest in 1874. 
 
 (8.) The cost of the surveys for the whole line was unquestionably 
 very great. It will be seen by reference to " No. 1 Statement" hereto 
 
86 
 
 amiexed that in British Columbia alone $1,552,297. Ou the other hand 
 it is sworn to Mr. Moberly that it need not have cost over $400,000 or 
 $500,000, and not have occupied over two years' time. The resignation 
 of the chief engineer, in 1880, was a consequence of the dissatisfaction of 
 Parliament with the surveys and construction of the Canadian Pacific 
 Kaihvay. 
 
 (9.) To delay the construction because a location survey had not 
 been made defining the whole line was not necessary. The main points 
 being determined was all that was necessary. This is seen very clearly 
 by the contract with the syndicate or present " Canadian Pacific Railway 
 Company." By Section 13 of their contract, they are only governed by 
 the term'innl points— and may vary the route between these points as they 
 please. This course has been sanctioned by Parliament, and is as 
 follows : 
 
 " The company slmll have the right, suljject to the approval of the (Jovernor in 
 " t'ouncil, to lay out and locate the line of tJic railway hereby contracted for as they 
 "may think tit, preserving the following,' terminal points, namely : from Callander 
 '• St:'ition, to the junction witii the Lake Superior Section, and from Selkirk to the 
 " junction with the western section at Kaniloops, hy the way of Yellow Head I'ass." 
 
 ^Yhat has been agreed toby the Canadian Government with "the 
 Syndicate," might have been adopted in 1S7;5, and the work of construc- 
 tion commenced in British Columbia long ago. 
 
 (10.) It is admitted that exhaustive surveys were necessary ; but it is 
 maintained that these exhaustive surveys between the terminal points of 
 each section, could have been conducted during tlie progress of construc- 
 tion, before the contract was made with the " Syndicate " as well as after 
 it had been made. 
 
 (11.) There has been delay, however, no matter from what causes. 
 But that cannot be urged as a reason for not commencing the construction 
 of the Esquimau section of the Canadian Pacific llailway now; nor for 
 delaying tlie commencement of the construction at Port Moody. Neither 
 can the delay, from whatever cause, be riglitlully set up as an offset to 
 full comiiensiition being paid to British Columbia for the breaches of 
 agreement and delays by Canada in tlie fulfillment of her railway contract 
 with British Columbia. 
 
 (12.) If the Treaty of Union, instead of being between Canada and 
 i-itish Columbia, had been between Canada and the United States or 
 other foreign power, the default in the construction of the railway would 
 have entailed the payment of indemnity or war; and it is contended that 
 the same principle is involved, as between Canada and British Columbia, 
 as would obtain between Canada and the United States or other foreign 
 powers. - 
 
 10. Section G, one of the most important sections of the report is as follows: 
 
 " (().) Within the last year a contract has heen entered into and received the 
 " sanction of the Canadian I'arliainent for the conslniction of the whole I'acilic rail- 
 " way fi'on\ tlic end of the existing system of ( 'anadian railways at (Jallandcr Station, 
 "near Lake Nipissing, aliont •2iH) miles from tlie capital of the Dominion to Hurrard 
 "Inlet, or 'the sealioard of IJritish Coluniliia,' iiivulving an expenditure of alioiit 
 ".*!r):{,(H)0,(.00 in money; and -J."), ()()(), 000 of acres of land -contracts involving a sum 
 "(vf about .^8,000,000 have been given out in 15iitish Columbia, and the work lias 
 " being vigorously jiresseil in that I'roviuci, and the (ioveriiment itself has uiider- 
 " taken the construction of the sectioii of railway extending from N'ale to liurrard 
 "Inlet." 
 
 Br 
 
e otliei' hantl 
 • $400,000 or 
 ) resignation 
 atisfactiou of 
 icliau Pacific 
 
 37 
 
 Attention is directed to the following points in this section : — 
 
 (1.) That within a 3'ear a contract had been made by the Canadian 
 Government for the construction of the whole Pucilic Railway. 
 
 ■vey had not 
 main points 
 1 very clearly 
 icific Railway 
 governed by 
 joints as they 
 ;, and is as 
 
 the (iovernor in 
 
 cted t'oi' as they 
 
 from Callandei' 
 
 Selkirk to the 
 
 ow Head I'ass." 
 
 ntwith "the 
 : of construc- 
 
 iry ; but it is 
 inal points of 
 3 of construc- 
 1 well as after 
 
 what causes. 
 3 construction 
 now; nor for 
 idy. Neiiher 
 an offset to 
 3 breaches of 
 Iway contract 
 
 Canada and 
 ted States or 
 ailway would 
 )ntended that 
 sh Columbia, 
 other foreign 
 
 is as follows: 
 
 mid rcci'ivcd the 
 hole I'acitie rail- 
 lUaiider Station, 
 iiioii to Hurrai'd 
 iditmc of aluiiit 
 involving a sum 
 d tlie work lias 
 iti<clf has under- 
 ^'aie to lUirrard 
 
 (2.) That the whole Pacific Railway lies between the end of the 
 existing system of Canadian railways at Callander Station, near Lake 
 Nipissing and Burrard Inlet, on " the seaboard of British Columbia." 
 
 (3.) That this contract involves an expenditure of about $53,000,000 
 and 25,000,000 of acres of land. 
 
 (•4.) That contracts involving a sum of about $8,000,000 have been 
 given out in British (Columbia. 
 
 (5.) That the work (of construction) is vigorously pressed in that 
 Province. 
 
 (().) That the Government itself has undertaken the construction of 
 the section of railway between Yale and Burrard Inlet. 
 
 11. These points deserve special consideration: — 
 
 « 
 
 (1.) It is denied that " the whole Pacific Railway " is included be- 
 tween Callander Station and Burrard Inlet, for tlie reason, as already 
 shown, that under the Statutes of 1872 and 1871, and the Order^ in 
 Council in force based thereon the whole Pacific Railway " would extend 
 to and include the Section from Es'j^uimalt to Nanaimo, with a Railway 
 Ferry to Burrard Inlet; and tluit no contract has been made for the 
 whole line of the Canadian Pacific, but only for " the whole of the Rail- 
 way " between Callander Station and Port Moody, leaving the extension 
 from that point to Euglish Bay, " the beginning " of the line referred to 
 in Mr. Braun's letter of May 29th, 1878, with the Ferry across the Strait 
 of Georgia to Nanaimo, and the Railway between that town and Esqui- 
 mau unprovided for in the contract. 
 
 (2.) If the Canadian Government had included the Esquimalt and 
 Nanaimo Section of the Canadian Pacific Railway in the contract, and 
 had provided for its immediate commencement and vigorous and contin- 
 uous prosecution, in tlie contract with " the Syndicate," " the continuous 
 and acrimonious complaint " of British Columbia would have been hap- 
 pily terminated; and the cordial feeling that once existed between the 
 Province and Canada would have been fully restored, and Her Majesty's 
 Imperial Government would not, in all probability, have ever been again 
 asked to move the Canadian Government to fulfill any condition of the 
 Terms of Union. 
 
 (3.) It is unfortunate that that Section of the Canadian Pacific Rail- 
 way was not included. Under *he " Carnarvon Terms," the time limit 
 for the construction of that part of the Railway between Esquimalt and 
 Lake Superior was extended from July 20th, 1881, to December 31st, 
 1890. The Canadian Government, however, without showing any regard 
 to that agreement, and without asking British Columbia to assent to a 
 further extension of time, deliberately contracted with " the Syndicate " 
 to have the Railway completed on or before the 1st of May, 1891. They 
 
38 
 
 also included the section between the junction with Lake Superior Sec- 
 tion and Callander Station in the contract, which was indefinitely post- 
 poned through Lord Carnarvon, and ignored altogether the Esquimalt- 
 Nauaimo Section. 
 
 (4.) The cost of the construction of the Esquiiaalt and Nanaimo 
 Section would not have added materially to the whi lo cash cost of the 
 Railway. If a cash subsidy of " $13,333 per mile vhich is the rate of 
 the cash subsidy to the "Syndicate" for the last V , miles of the Central 
 Section — had been given to the Syndicate contv ors, with the Railway 
 Lands on Vancouver Island along that line, would have only added 
 $913,310.50 to tlie $53,000,000, making (' Total Cash Expenditure 
 on account of the whole Pacific Railway i ,,J13,310.50. Sir Alexander 
 Campbell, the Minister of Justice for Can, .da, in introducing the Act to 
 sanction the contract, said, "that the interest on $53,000,000 at 4 per 
 cent, would amount to $2,120,000 a year." Adding interest at the same 
 rate, on the Cash Subsidy mentioned above for the Esquimalt-Nanaimo 
 Section, namely $30,532, to the $2,120,000, the total amount of interest 
 on Cash Subsidy for constructing the wliole Canadian Pacific Railway 
 would only reach $2,150,532, an almost inappreciable addition, consider- 
 ing the magnitude of the contract. 
 
 (5.) The cash subsidy for the "Eastern Section" under the con- 
 tract is $15,384 per mile. If a like subsidy had been given " the Syndi- 
 cate " for constructing the GSA- miles between Esquimalt and Nanaimo, it 
 would only have added $1,053"804, and the interest would be $42,152 a 
 year, making the Total Cash Subsidy, for completing the whole Canadian 
 'Pacilic Railway from Esquimalt to Callander Station, $54,173,804, and 
 the total interest thereon $2,102,152. 
 
 (G.) It seems almost incomprehensible how so small a subsidy, so 
 * necessary to the con)pletion of the Railway obligations of Canada to Brit- 
 ish Columbia, was not included in the contract. 
 
 (7.) It has been stated by one of the London negotiators with " the 
 Syndicate " in 1880, that he believed that a cash subsidy of $000,000 
 would have induced tliem then to consent to include the Esquimalt- 
 Nanaimo Section in the contract. 
 
 (8.) In the Bill for the construction of the Esquimalt-Nanaimo Rail- 
 way, that was introduced into Parliament by Mr. Mackenzie, the cash sub- 
 ' sidy was limited to $10,000 per mile, or $085,000 for the wliole line; but 
 to that was added a guarantee for interest at four per cent, on " the low- 
 est sum on which such interest and guarantee will be required." 
 
 (9.) There was also a land subsidy of 20,000 acres per mile to be 
 given to the contractors. It was not, however, proposed to give the 
 Lands witliin the Railway Land licit, between Esipiimalt and Nanaimo, 
 as they were considered to be very valuable Coal and Mineral lands; but 
 to give the contractors 20,000 acres of Land elsewhere on the line of the 
 Canadian Pacific Railway. 
 
 (10.) The provisions of the Bill providing for this Subsidy are as 
 follows: — 
 
39 
 
 iperior Sec- 
 initely post- 
 I Esquimalt- 
 
 id Niuiaimo 
 cost of the 
 s the rate of 
 the Central 
 the Ilailway 
 only added 
 Expenditure 
 V Alexander 
 g the Act to 
 )00 at 4 per 
 at the same 
 alt-Nanaimo 
 t of interest 
 ific Ilailway 
 in, consider- 
 
 ler the con- 
 ' the Syudi- 
 Nanaimo, it 
 )e $42,152 a 
 )le Canadian 
 173,804, and 
 
 L subsidy, so 
 lada to Brit- 
 
 " ;{. 'I'liivt tlie total sum to l)c paid to tli(! contiactorfi hIiuII l)e stipulated in the 
 contract, and shall be $10,000 for each mile of the railway or of tiie section con- 
 tracted for, and that sucli sum shall be paid to the contractors as the work pro- 
 
 ■ gresses, by monthly payments in proportion to the value of the work then 
 actually jierformed (according to tlie estimates of the engineers designated for the 
 purpose by the Minister of rublic Works), as comparetl witli tlie value of the 
 whole work contracted for, including rolling stock and all things to be done or fur- 
 
 ' iiished by the contractors ; and excei.t nu)noy arising from the sale of lands as horeni- 
 after provided, no further sum of money shall be payal)lu to tlie contractors as 
 
 ■ princiiial, but interest at the rate of four per cent, per annum for twenty live years 
 from the completion of the work, on a sum (to Ik; stated in tlie contract) for each 
 
 • mile of the section or suli-section cuntraeted for, sliall be payable to the contractors, 
 
 • and guarantees for the payment thereof shall l)e given from time to time to the 
 ' contractors in like manner and proportion, and on like conditions, as payments are 
 'to be made on the principal sum above mentioned; and the tenders for the work 
 ' shall bo reipiired to state the lowest sum per mile on which such interest and guar- 
 ' antees will be recpiired. 
 
 " 4. That a quantity of land, not exceeding 20,000 acres for each mile of the 
 ' railway or section contracted for, shall l)e apjiropriated as hereinafter mentioned, 
 ' and tiiat two-thinls of the (piantity of land so ajjpropriated shall bo sold by 
 ' the (iovernment at such prices as may be from time to time agreed upon between 
 ' the (iovernor inOoiincil and the contractors, and the proceeds thereof accounted for 
 ' and paiil half-yearly to the contractoi-s, free from any cliarge of administration or 
 ' nianau'enient ; the remaining third to be conveyed to the contractors. The said 
 ' laiuls"to be of fair average (piality, and not to include any land already granted or 
 ' occupied under anv patent, license of occupation, or iire-emption right; sucli lands 
 ' to be situated on the line of the Canadian Pacific Railway or elsewhere in Canada, 
 ' at sncli places as may be determined by the (iovernor in Council." 
 
 (11.) It will readily be perceived how small a sum was estimated, iu 
 SI'}, to be suflicient to'comi)lete the Eailway from Esqiiimalt to Nanaimo, 
 ud carry out in good faith the first article in the " Carnarvon Terms." 
 
 IS 
 and 
 
 (12.) Wliat was proposed to be done iu 1875, i)i a time of depression, 
 by the Canadian Government can be mucli more easily done, at present, 
 by a Grreat Government like Canada, with a prosperous people, and a 
 surplus revenue for the fiscal year 1880-1, tliat has been estimated o^ 
 $4,000,000. 
 
 s with " the 
 • of $000,000 
 ! Esquimalt- 
 
 anaimo Rail- 
 the cash sub- 
 tle line; but 
 m " the low- 
 d." 
 
 ir mile to be 
 to give the 
 ad Nanaimo, 
 id lauds; but 
 ,e line of the 
 
 ibsidy are as 
 
 (13.) It only remains for the Canadian Government to make some 
 such provision for tlie immediate commencement aiul active prosecution 
 of tlie E.S(piinialt-Nanaimo section of tlio Canadian Pacific, and nlso to 
 commence the section between Port Moody and Emory, to secure in. a 
 large degree the contentment of British Columbia. 
 
 (14.) The contracts given out in British Columbia commence nearly 
 100 mih.'s from Port Moody, and cannot be approaclunl nearer by ocean- 
 going vessels. Only river steamers drawing a few feet of water, can 
 reach YaU^ and tliat can be done only during a i)ortion of the year, as 
 nearly the whole river below Yale for months sometimes in tlie winter is 
 frozen up, rendering navigation impossible. 
 
 (15.) To render the section now under contract valuable as a local 
 railway, pending the completion of the through line to Winnipeg, the 
 immediate! conimencement of the Port Moody-P^mory section is necessary. 
 The Emory-Kamloops section, connecting navigable water on the Lower 
 Eraser with Lake Kandoops, is expei^liid to bo finished in 1S85; and 
 unless provision be made for the unmetUate connnenccmeiU, of the Port 
 Moody-Emory section, the advantages of the sections through the Cas- 
 cades" now under contract, will be indefinitely posli/nncd even for local 
 and provincial purposes. 
 
40 
 
 (10.) From tlio stuheir.ont tliut contracts for construction of the rail- 
 way iu British Columbia for " about $8, 000, ()()() have been {,nven out," it 
 may be inferred that a very great deal has been done there in construction. 
 But in answer to ;i question, it was stated on January 4, 1881, by Sir 
 Cliavles Tupper, the '^linister of Railways and Canals, iu his place in the 
 House of Commons, tliat " the value of work performed up to December 
 iUst, 1880, is $408,5130, the amount paid is that amount less ten per cent., 
 retained as drawback." Accordingly, only the comparatively small sum of 
 §;$07,05r).4O had been expended in British Columbia in actual construction 
 of the Canadian Pacific Railway — at tlie end of 1880, seven years from 
 tlie treaty pericnl fixed for its commencement. On the other hand, over 
 §15,100,402 had been expended up to Novend^er 30th, 1880, in construct- 
 ing portions <jf the Canadian Pncilic Railway, and yet of that sum, up to 
 the date mentioned, only §307,055 had been expended in British Colum- 
 bia. This fact shows moat conclusively how unfairly British Columbia 
 has been treated — particularly when it is remembered that under the 11th 
 secti(Mi of the Terms of Union the work was to be commenced simul- 
 taneously on the Pacific Coast and East of the Rocky Mountains. 
 
 (17.) The re])ort of the Rail\v;iy Statistics of Canada, for 1879-80, 
 'prepared March 1st, 1881, by Mr. Schrieber, Chief Engineer yf Govern- 
 ment Railways iu 0[)eration, states tliat there were 
 
 Undkr Construction, 
 
 Fort William to Red River 410 miles. 
 
 First 100 nnles west of Red River 100 
 
 Pembina Branch 85 " 
 
 British Columbia 127 
 
 Total under oonstruction 722 " 
 
 In Opkeation, 
 
 Fort William to English River 113 miles. 
 
 Kewatin to Selkirk 112 
 
 Pcnibina Branch 85 
 
 First 100 miles west of Red River 70 
 
 British Columbia nil. " 
 
 Total in operation 380 
 
 No other conclusion can be reached after considering this statement 
 than that British Columbia has sullered a great wrong at the hands of 
 Canada. 
 
 (18.) Since the Report on Railway Statistics for 1879-80 was issued, 
 in March last, four miles liave been completed between Emory and Yale. 
 A telegram states that on June 7th, 1881, "tlie construction train, con- 
 sisting of engine and six cars reached here (Yale) to-day." 
 
 (19.) It is stfited in the section under consideration that the " work 
 is being vigorously j)ressed in that Province!." Yet there is the fact 
 showing that fourteen months after tlie woik was commenced that only 
 four miles were so far completed as to enal)lethe contractor to run a con- 
 struction train over it. Hence no one familiar with railway construction 
 is likely to admit that " work " on the Canadian Pacitic Railway " is 
 being vigorously pressed " in British Columbia, without Ijetler exi)laua- 
 tions than are given in sccticm (i of Ke^iort on the Petition to the Queen. 
 
410 miles 
 
 100 
 
 85 
 
 127 " 
 
 41 
 
 (20.) The naked statement is also made in section that " the Gov- 
 ernment itself has undertaken the construction of the section of the rail- 
 way extendinjLj from Yale to Burrard Inlet." In the sixth section of the 
 contract with " the Syndicate " it is stated that " the Government * * * 
 shall also cause to be completed on or before the 1st day of May, 189?, 
 the vemaininnf portion of the said Western section, Iving between Yale 
 and Port Moody." 
 
 (21.) Here, then, it is found that the Canadian Government liave to 
 complete the Port Moody-Yale section on ov before ten years hence. By 
 the Terras of Union the whole Canadian Pacific Railway was to have 
 been completed on July 20, ISSl; but the Government of Canada under- 
 takes a contract with the Syndicate to complete ninety-one miles within 
 ten years from the date of the report on the Petition to tlie Queen. It 
 will readily be perceived therefore, that this contract with the Syndicate 
 gives no assurance to Britisli Columbia of the early commencement and 
 rapid completion of the Port Moody-Emory 8ectif)n of the Canadian 
 Pacific Railway; but, in fact, leaves it in the power of the Canadian Gov- 
 ernment to postpone the commencement for the next seven j'ears at least, 
 and then have ample time toc()m[)lete it before the 1st May, 1891. It is 
 manifest that this contract is mere trifling with the solemn railway obli- 
 gation of Canada to British Columbia. 
 
 (22.) 'Since the Petition to the Queen was forwarded to Her 
 Majesty's Principal Secretary of State for the Colonies, engineers have 
 been sent from Ottawa to make a survey and report on the Port Moody- 
 Emory Section, witli the object, it is alleged, of })re]"iaring the plans and 
 cpiantitios, so as to bo able to call for tenders for its construction. It is 
 remarkable, however, that no special provision for this work was made in 
 the estimates i)assed in the last Session of the Dominion Parliament, and 
 it is only reasonable to conclude that the Canadian Government has been 
 induced to take this step in consequence of the transmission of the" 
 Petition to the Queen. INIoreover, not a word is mentioned in the Report 
 on the Petition, that it was intended to call for tenders for the construc- 
 tion of the Port Moody-Emory Section this year, but the naked statement 
 is made that the Government had contracted to complete it ten years 
 hence, as above stated. 
 
 12. The 7th Section of the Report is as follows: — 
 
 " 7. JMt'ry guaraiitiio lia.s thus l)een afl'oided to tlie I'roviiice of Britisli (Columbia 
 " that tlie terms of the Unimi will be carriod out at the earliest practicable day." 
 
 (1.) Tliis Section of the Report alleges tliat by having made a 
 contract with " the Syndicate," otherwise the " Canadian Pacific Railway 
 Company," to construct the Canadian Pacific Railway from Nipissing to 
 a ju)iction with the Lake Superior Section, and from Red River to 
 Kamloops, in British Columbia, on or l)(.'fore 1st day of May, 1891; and, 
 also, by having agrecid that the Government itself shall complete the 
 Lake Superior and Emory-Kamloops Sections, now under contract, at 
 the time specified in those Contracts; and, lastly, by having agreed to 
 construct the Port jNIoody-Emory Section by the Ist day of May, 1891, — 
 the Canadian Governiueut has given "every guarantee" to British 
 Columbia that the Terms of Union will be carried out at the earliest 
 practicable day. 
 
 (2.) It is denied that the contract with the " Canadian Pacific Rail- 
 
WT' I 
 
 m 
 
 m 
 
 42 
 
 way Company" and otbera afford " every Kiiarantee " that the Terms of 
 Union will be curried out. On the contrary, what has been done is not a 
 vahiable guarantee to British Cohinibiii for the performance of the con- 
 tract under the Terms of Union with Canada. 
 
 (3.) A vahiable guarantee can be enforced; but there is no Court of 
 competent jurisdiction in Canada to which Britisli Columbia can apply to 
 compel the Canadian Government, in case of a further default, to build 
 those portions of the Canadian Pacific Eailway for which contracts have 
 been made with the " Canadian Pacific Railway Company" and others. 
 N Ht'O. '<"'•■ tl'.at Province any right, in case of default, to commence 
 »v, ^.''^ngs in a Court of Law or Equity against the " Canadian Pacific 
 r, . Company," and other contractors, to give effect to th(;ir respective 
 CO. iicts for Hie construction of the wl-.olo or parts of the Canadian 
 Pacific Railway. Thus, the guarantees, referred to in the Report, are 
 only "a vague, and uncertain assurance" at most, that the Canadian 
 Pacific Railway may, at some time in the future, be built. 
 
 (4 ) If the Canadian Government had made provision in the contract 
 with the "Canadian Pacific Railway Company" to construct the 
 Esquimalt-Nanainio Section, and bad had it commenced and vigorously 
 prosecuted- and had commenced the construction of the Port Moody- 
 Emory Section, it would liave ali'ordcd a iv.isonablo assurance that it was 
 their intention to keep faith wiiii British Columbia, by com|)leting the 
 whole railway within a reasonable time in the future. But haying 
 ignored altogether the construction of tlie Esquimalt-Namunio Section, 
 alid not having yet commenced construction at Port Moody, it is natural 
 to conclude that the Canadian Government has not yet oit'i.'red those 
 substantial guarantees to British Columbia for the construction of the 
 Canadian Pacific Railway, that will content that Province. 
 
 * (f) ) The Government and Legislative Assembly of British Columbia 
 
 knew all that the Ciinadiau Govermnent had done towards the construc- 
 tion of the Canadian Pacific; Railway in t!iat Province and elsewhere, 
 before the Petition to the (iueen was adopted; but wlnit had been done 
 was not considered by them as all'ording ■' every guarantee" that "the 
 Terms of Union will be carried out at the earliest practicable day. 
 They, consequently, petitioned Her Majesty, ihv. Queen, to move the 
 Canadian Government to carry out the Prayer of the Petition. 
 
 (C).) It was with painful reluctance that they did so;_ but the 
 repeated breaches of agreement and delays by Canada in the fultillment of 
 her Raihvav obligations to British Columbia, left the Legislative Assembly 
 no otiier afternative; and so they have appealed to Her Majesty's Imperial 
 Government to afford them those substantial guarantees that will assure 
 them that the Railway obligations of Canada will be carried out. 
 
 12. Section 8 of the Report on the Petition to the Queen is as follows:— 
 
 " 8. riirluuneiit luis nut autlioii/CMl the coiistiULaion of tliu Xanaiino and Ksciui- 
 " malt lino and, in viow of the larue cxiicnditunt involved, in the l)Uildni^' of the 
 " Canadian' I'aeilic from ( 'allaii<ier Station to the i'aeitie Oeean at I'.uii'ard Inlet, it is 
 " not piohalde that it woidd do sf)." 
 
 " The ( 'ommittee de.sire to oh.,ervo tliat there e.\ist.s in the udjaeent waters of the 
 " Strait.s of (ieorL'ia, HJieltered water eonununie amn open all the year round (juite 
 " adec|uate to tiie needs of the poiiulation of the Island." 
 
 ^« 
 
43 
 
 le Terms of 
 [)ue is not a 
 of the con- 
 
 110 Court of 
 iin apply to 
 lit, to bnilcl 
 (tracts liavo 
 ami others, 
 coiumenoe 
 (lian Pacific 
 ir respectivo 
 le Canailian 
 Report, are 
 le Canadian 
 
 the contract 
 nstruct the 
 1 vigorously 
 'ort Moody- 
 ^ that it was 
 i|)letiiig the 
 But having 
 mo Section, 
 it is natural 
 lil'ijred those 
 ctiou of the 
 
 sh Columbia 
 lie coustruc- 
 1 elsewhere, 
 il been done 
 " that " the 
 icable day." 
 ]0 move the 
 1. 
 
 io; but the 
 iiltllhueiit of 
 ive Assembly 
 ty's Imperial 
 t will assure 
 out. 
 
 lUows: — 
 
 lino ami Ks(|iu- 
 liuililiii;,' of tlic 
 rard lulut, it is 
 
 iL wati-'is of ttie 
 jar rouiiil (iiiite 
 
 1 
 
 • 
 
 The points in Ihia important Section of the Report may be particularized in 
 the following order: — 
 
 (1.) That tlie Dominion " Parliament has not authorized the con- 
 struction of the Esquiraalt-Nanaimo line." 
 
 (2.) That it is not probable that it will authorize its construction, 
 " in view of the large Expenditure involved in the building of the 
 Canadian Pacific Railway from Callander Station to Biirrard Inlet." 
 
 ('ii.) That the Canadian Government desire to observe thi.t in the 
 adjacent waters of the Strait of Georgia tiiere is sheltered water com- 
 munication adequate to the needs of the population of Vancouver Island. 
 
 In answer to those points it is necessary to state: 
 
 (1.) Tliat the Dominion Parliament has not been asked by the Can- 
 adian Government to authorize the construction of the Esquimalt-Nfuiai- 
 mo line, since the rejection in 1875, by the Senate, of the Bill sent up 
 from tlie House of Commons for that purpose, 
 
 (2.) That Canada stands pledged to its construction, and hold,-, a 
 large extent of valuable lands on Vancouver Island as jiart of the consid- 
 eration for constructing it. 
 
 • 
 
 (3.) That the Dominion Parliament is the custodian of the honor as 
 well as the purse of Canada, and that it is impossible to believe tliat either 
 House of Piu-liiiment would tarnish the one by refusing their assent to an 
 appropriation from the other to keep that pledge. 
 
 (4.) The sum n(>cessary to be api)ropriated for the Esquimalt-Nanai- 
 nio lino is so small in com]iarison witli the $");}. 000, 000 already pledged 
 for that ]iart of tlie Canadian Pacific Railway under contract — and the 
 length (jf the liiu; on Vancouver Island is so short in comparison with the 
 2(100 miles of railway to bo completed between Biirrard Inlet and Callen- 
 der Station — that it cannot be supposed for a moment that the Parlia- 
 nieni of Canada would refuse to grant it, if asked by the present Domin- 
 ion Government. 
 
 (5.) What is meant in Section 8 by "the adjacent waters of the Strait 
 of Georgia" is not very clear. It is presumed, however, that it refers to 
 that portion of tlie Archipelago that is bounded by the Strait of Fuca, the 
 Strait of Georgia, Haro Canal, and Vancouver Island. What "sheltered" 
 refers to, whether sheltered from storms in peace, or from hostile attacks 
 in war, is uncertain, (.^"o thing seems certain, however, that it was in- 
 serted in Section 8, to show that tliere was no necessity for a railway along 
 tlu! East Coast of Vancouver Island, betweer. Esqiiimalt and Naiiaimo; 
 and that tlie navigation from the Pacific Ocean proi)er, to Burrard Inlet, 
 was free from danger or difficulties. Now, one of the reasons why it is 
 contended that a Railway on Vancouver Island, between the points last 
 mentioned is necessary, is that the channels, in the adjacent waters of the 
 Strait of Georgia, nic not sulficiently sheltered, safe, and ojien for naviga- 
 tion, to meet the wants of the population on the Island. The other rea- 
 son is that the navigation between the Strait of Fuca and the Strait of 
 Georgia "in the adjacent waters" referred to, is so dangerous, and likely 
 to j)rodu('e such delays in going to and from Burrard Inlet and Nanaimo, 
 from tlic Straits of Fuca, th;it a Railway on the Island is essencially nec- 
 essary to the Canadian Pacific Railway terminating at Port Moody. Sail- 
 

 41 
 
 ii){» vessels ffoinj,' either to Nannimo for coal or to Burniril J .let for lum- 
 ber, at pieseiit take steam tiij^'s to tow them. The expense of towage is 
 iucurred, rather than submit to the delays ami danger incident to sail- 
 ing. These facts are a sufficient answer in themselves to the statemeut 
 in tlie lleport that the "sheltered water comnuinications" are "adeiiuate 
 to tiie needs of the population of the Island." It will be i)erceived that 
 Vancouver Island is not alone interested in the EstpiimaL-Naniamo Sec- 
 tion, but the Mainland is, also. In a "Iloturn" placed before Parliament 
 in 1881, "For (Copies of any correspondence with the Government ot Brit- 
 ish Columbia, or with any persons in that Province respecting the Island 
 Railway," it is shown that out of about a luindred accidents to vessels 
 iiavigafing the waters between Esquimalt and Nauaimo and Bnriard Inlet, 
 from 1858 to 1870 inclusive, about 75 per cent, occurred in the Arcliii)el- 
 ago referred to, and the Strait of Georgia. This, at least, shows tiiat the 
 navigation of the adjacent waters and Strait of Georgia is unfortunately 
 difficult and dangerous. In this the following officers of Royal Navy con- 
 cur. Por instance: 
 
 Admiral Farcpihar, in his Report to the Admiralty, in 1870, says:— 
 
 " O.wiii-i'oiii" sidling ships conkl not l>o depended on to siiil furtlier than the on- 
 "traiice uf Hai'o rluiiinil, altiiou.uh, (hiul>tl('ss, with fair winds uml favorable weather, 
 "they tnif^ht sail to Knglish Hailior at tlie entrance ot Bniiaiil Inlet." 
 
 I 
 
 I 
 
 no 
 eni 
 
 sec 
 
 U. T] 
 
 Admiral Richards, in his report, says: — 
 
 " Ships need not pass as far oil' as witliin thiee miles of San .Inan, hut they must 
 "paas within two miles of Stuart and I'atos Islands, unless indeed they take tile inner 
 " ehannel along the eoast of N'aneouver Island, and the passages from these channels 
 "to the Strait of (ieorgiu are dangerous." 
 
 Commander Pender, R. N., in his Report, says: — 
 
 " The risks attending navigation witii large steamships, against time, amongst 
 •'the Islands lying between Fuca Strait and tiie Strait of Ceorgia, lire to me, very 
 "great." 
 
 (fi.) This is the testimony of officers of Her Majesty's Navy— two of 
 whom were verv familiar with the Navigation, as they had commanded 
 the Coast Survey in British Columbia for over ten years— and ought to be 
 a sufficient answer in itself to tiie statement in tliensport about "sheltered 
 water communication" in the adjacent waters oC the Strait of Georgia." 
 
 13. Section 'J of the report on the Petition to the Queen is as follows: 
 
 " !). As regards the Prayer of the m'oposed Petition to Her Majesty, 'That the 
 " Piovinee lie permitted to regulate and eolleet its own taritF of Customs and Rxeise 
 "until through eommunieation Ijy Railway lie establishe.l tlirougii IJriti.sh Territory 
 "witii tlie Hastern Provinces,'— the Committee of tlie I'rivy Council desire to observe 
 "that this rtiincst inv(dves a l)reach of the terms of Union, and the virtual severance 
 "of Britisii Columbia from the Dominion." 
 
 On this section of the Report but little comment is necessary, as Her 
 Majesty's Principal Secretary of State for the Colonies, has viewed it un- 
 favorably. It is deemed necessary, however, to state that the Government 
 and Legislative Assembly of Columbia— having been so long and so often 
 dis!ii)pointed by Canada," in carrying out her railway obligations— inserted 
 Section (b) in the Prayer of the Petition, in order to secure a substantial 
 guaranteee that Canada would fulfill her railway obligations to that Prov- 
 ince. Mere paper contracts having been often broken, and there being 
 
46 
 
 Bt for lum- 
 f towiigG is 
 ejit to Hiiil- 
 ) Btateiueut 
 
 "iitloiiuiite 
 [■ceived that 
 uiimiio Sec- 
 Piirliiiineut 
 ent of Brit- 
 
 tho IhIiukI 
 i to voHsels 
 niinl Inlet, 
 e Ar(!liij)el- 
 )\vs til lit the 
 1 fortunately 
 il Navy cou- 
 
 ays:— 
 
 ;r than the cu- 
 irablo weather, 
 
 l)ut they must 
 take the inner 
 these ehiiuiiels 
 
 time, aiiicingst 
 •e to me, very 
 
 vvy — two of 
 coniniiincletl 
 ought to be 
 t "sheltered 
 Geor,i''ia." 
 
 Hows: 
 
 ity, 'That the 
 ins anil Rxeise 
 iti.sh Territory 
 (in; to observe 
 •tual severance 
 
 ■iary, as Her 
 iewed it un- 
 Gloverninent 
 uitl so often 
 js — inserted 
 I sub.stantial 
 that Prov- 
 there being 
 
 -.:1 
 
 no Court of coiupctont jurisdietioM to whicili application coidd be made to 
 (h force tlicni, they deemed thoniselvcH justitied in '.lomanding a money 
 Kcciirity. 
 
 U. The 10th Section of tlic Report is as follows:— 
 
 " 10. It « ill lie seen liy ollieial statrMicnts liereto antutxe<l. that an expenditure 
 "in the Province since it entered the Union has liecn made hy the Dominion of 
 "!?.">.<>!•((, US'.t, a^,'ainst wiiieli the re<'eipts have lieeu §4, ITH.'-'.HS, this expenditure is 
 " entirely irrespective of dishursements on account of the railway. 
 
 ( 1.) The answer to this Section of the R-^port is, that it is wholly ir- 
 revelant to tlie Prayer of tlie Petition to the l^ oen. The railway obliga- 
 tion of Canada to j'hilish Coliindiia under the iltii Section of tlie Terms 
 of Union is Hei)arate and distinct from the other Terms, — and, to use the 
 language of Section 1 of the Report, is " one of the terms upon ^v>\icu 
 BritisirColunibia entered into tlie Union of her Majesty'.s North American 
 Provinces." If the railway obligations were fulliiled to the letter, it would 
 not exempt Canada frc»m her agreement to fullil the other Terms of 
 Union, Neither do the alleged expenditures and receipts exerai)t Canada 
 from her raihvny obligations. If she had ex])en(led, within the time men- 
 tioned, $10,(Hl(),(lO(), instead of the alleged expenditure of s<r).!)t)(;,28'.>, and 
 had received only $1,011(1, (100 instead of the alleged receii)ts, $4,173,238, 
 it would nf'ither strengthen her case nor justify Canada in delaying the 
 fullillment of her railway contract with British Columbia. On the other 
 hand, if British'Columl'iia had paid into the Consolidated Revenue Fund 
 of ('anada, witliiii tlicf time nuMitioned, $10,000,000 instead of the alleged 
 $4:,1T3,2;!S, and if within the same period the ex])enditure by Canada had 
 been only |1,000,000 instead of the alleged Sr),!)!)0,289, it would not 
 strengthen her claim for the fullillment of the railway obligations of 
 Canada. Tlu) contract to commence the railway within two years, and 
 com|)lete it within ten years from the date of Union, is clear, precise, and 
 binding, and cannot be varied by Canada without the consent of British 
 Columbia, the other contracting party. The settlement made, through 
 Lord Clarnarvon, in 1874. was agreed to by the respective Governments 
 of the contracting inirties; and if the sanction of the Canadian Parliament 
 to that agreemen't, which is morally binding, iiad been secured, it would 
 have varied the railway contract under the 11th Section of the Terms of 
 Union. That sanction not having been obtained, and the settlement made 
 through Lord Carnarvon being treated in Section 3 of the Report ns merely 
 " the suggestions of the then Secretary of State for (he Colonies," — a vir- 
 tual repudiation of a solemn agreement,— the original railway contract re- 
 mains in all its binding force to-day as it was iii 1871, when British 
 Columbia entered into Union with Canada. 
 
 ( 2.) If British Cohnnbia had agreed with Canada that, in considera- 
 tion of the alleged expenditure having been made, cr to be made, and the 
 alleged receii)ts having been accepted, or to be accepted, the coiistruction 
 of tiio Canadian Pacific Railway in accordance with the llth'Section of the 
 Terms of Union might be delayed, and the time limit for commencement 
 and comi)l('tion indefinitely extended to suit the Railway Policy of the 
 Canadian Clovernment lor^he time being, then the Canadian Government 
 would have been justislied in juitting forward in their Report the alleged 
 expenditures and receipts in British Columbia, as their justification for the 
 delavs and breaches of agreement complained of in the Petition to the 
 Queen. But no such agreement has been shown to exist; neither does 
 anv such agreement exist; and, therefore, the alleged expenditure and re- 
 ceipts referred to in Section 10 are on this ground, wholly irrevelaut to 
 the Petition to the Queen. 
 
40 
 
 ( IJ.) Tlmt tho (rovormnout of CnuiKla had an object in i)iittiiif,' " Sec- 
 tion 10" into tlie Order in ("uuncil iH uinloublcd; niid doiilitloHH their 
 (losij^'n WHH to inlluonoe tliorcby tlio dei-iHioii of Hor MiijcHt.v'H Iiuixiriiil 
 (.overnnient upon tlio Pniyer of the Petition to the Queen. It could not 
 have been put there in reply to a formal ooniplaint in the Petition of iu- 
 Hiilfioient expenditure in the Province under tho TerniH of Union other 
 than the 11th Section thereof; for no h\h'}\ complaint haw ever been made 
 by the (Jovernment of British Columbia. But the evident object wrh to 
 impress upon her ^Majesty's lmi)erial (jovernnient that the iuHufliciency of 
 the receipts in that Province to meet the exi)enditure therein, left, within 
 a i)eriod of nine years, an allef,'ed deficit of !f!l,H2;J,051, which, of course, 
 was expected to become an important factor in the consideration of and 
 decision ui)on the Prayer of the Petition. Not a word is mentioned in 
 connection with Section 10, admitting or denying that the expenditure v/as 
 incident to the extension and application of the laws of Canada to British 
 Columbia in coni])lianco with the Treaty of Union, or that the receipts aiul 
 expenditure were mainly within the control of the Dominion Parliament. 
 The unqualified statement of receipts and expenditure was made without 
 even a reference to those rights of British Columbia, of Avhich, under the 
 Treaty of Union, Canada had l)ecome the Chief G .lardian, and whose duty 
 it was to respect and maintain; and also without the faintest allusion to 
 the fact that the peojjle of that Province had paid more than twice tho 
 amount of taxes i)er head than were i)aid as the average per cijuta tax 
 throughout the whole Dominion. It becomes neccsssary, therefore, in 
 view of the way and evident purpose in and for which the CTOvernment 
 of Canada put Section 10 in their Report, that the alleged expenditure 
 and receipts should bo more fully considered, even A.ith the addition of 
 iome historicid and financial details. 
 
 (■4.) To ell'ect this ol)jocf it is necessary, in the lir.st place, to (pioto 
 financial conditions of wnich British Culund)ia " in 1871 entered the 
 
 the 
 
 Union of Her Majesty 'u North American Provinces." 
 
 follows: — 
 
 Thev 
 
 are as 
 
 "1. -Caiiada >li!ill h,- linliU' tor the li^lits aiul liiil>ilitii'.s of IJriti.sli Coluinlnii 
 'existing ;vt tin' time ol the L'iii(jii. 
 
 '■ "2. - -liritisli (,'()hiiiit>ia not liaviii;,' imuniil (Icbts i'(|Ual to tlio«f of the ottier 
 ' i'r(>viiiei's now eon.stitiiting tiie Iionimion, .shall he ii.tithd to reeeive by lialf-yearly 
 ' jinynients in advanue from tlie 1,'eiieral ( lovernnaiit, interest at tlie rate of live jier 
 'cent, iier annum on the (lid'eniiee lutween the actual amount of initeliteilne.sfi at tlie 
 ' (late of the L'nion; anil tlie inilehtednes per lieail of the poiiulation of Nova Scotia 
 'and New Hriinswiek ('-'7.77 dollars), the jiniiulation of IJritisli t'ohimhia ht'iig taken 
 ■ at ()(»,000. 
 
 '• ;{._'|'|h; f()i1<n\inj; sum.-i shall lie jiaid by t'aiiada to ISritish Cohnnbia fo'.' the 
 ' .supfjoit of its (jio. vmnei't and Legislature, to wit: an annual .subsidy of :{5,000 
 'dollais, iuid an annual j,i'nt equal to 80 eents per head of the said ]i(ii)alation of 
 '(iO.OUO both half-yearly in a-^ inee, siuh grant of SO cents per head to be augmented 
 ' in proitortion to the increase of ]io|iula1ii)n. as may lie shown by each subsei|Uent 
 •decennial census, until the population anu.'.ints to 4(10,000, at whii'h rate sucli grant 
 ' shall thereafter remain, it being understood tliat the lirst census be taken in the year 
 'IS81. 
 
 "4. The |)onnnion will jirovidc an ellicient mail .ser\ ice fortnightly by .steam 
 ' communication, between \'ietoria and (San I'lancisco, and twice a week l)etween 
 ' Victoria and (.)lynipia ; the ves.-.,cls to Ije adapted for the conveyance of freight and 
 ' passengers. 
 
 " .■). — Canada will assume and defray the charges for the following services : — 
 " ( A.) Salary of the t.i(!i'cenant-(;ovcrnor ; 
 "(li.) Salaries and allowances of the . I udges of the Superior Co\ats and the 
 
 " ("(junty or Histrict Courts ; 
 " ( C. ) The charges in respect to the I'epaitment on Customs ; 
 " ( u.) The I'oslul and Telegrapliie Services ; 
 
 t: 
 
 i 
 
 \\ 
 
•17 
 
 iittiuff " Soc- 
 )iilitloHH thuir 
 tv'H Imporial 
 
 It could not 
 L'tition of iu- 
 
 Union other 
 r been luiule 
 
 object WilH to 
 
 iHuflic'iciicy of 
 11, left, uitliin 
 ill, of course, 
 iitioii of and 
 Dientioiied iu 
 [xuditme was 
 idiv to British 
 [! receipts mid 
 I Piivliumeut. 
 niido without 
 cli, under the 
 id whose duty 
 it allusion to 
 lau twice tho 
 er c'linta tax 
 , therefore, in 
 ? Govern iiient 
 1 expenditure 
 addition of 
 
 luce, to (juoto 
 1 entered the 
 Thev are as 
 
 h'itisli Coliiiiibiii 
 
 )se of the other 
 lu by liiilf-yt'iirly 
 
 rati! of iivi! jiur 
 lt'l)teilne,sfi .it tlic 
 
 of Nova Scotia 
 iiljia IjLMig taken 
 
 'olmiiliia fo'.' the 
 ilisidy of :ir),000 
 liil |ioi)iilatioii of 
 to lie augineiited 
 eaeli .siil).sei|Ueiit 
 li rate siieli gi'aiit 
 taken in the yeai' 
 
 liglitly by steam 
 a week l)et\veen 
 lie of fieiLjht and 
 
 ng services ; — 
 ■ Courts and the 
 
 " ( K.) I'rotuetioii anil eiicoiuagenieiit of Figheries ; 
 
 "(V.) rrovision for the Militia ; 
 
 "((!.) Lightlioiisr.4, lli'.oyK, and Hetvcoim, Shipwrecked CrewH, t^uarantino 
 
 "iind Marine lliiM|iitalM, inehiding a Marine HoMpitul at Victoria ; 
 " ( II.) 'I'lie (ieohigieal Snrvtfy ; 
 " ( r.) The Penitentiary ; 
 
 " And Hneh fiirtlier eliargew an may lie iiaicient to and connected witli tlie Hervicon 
 "wliieli by the ' l!riti.-di Norih Airieriia Act of l!S(;7 ' aii|i<'_"f"'i" to tlie (;eneral (!ov- 
 "erinnent, and uh are or may l)e allowed to tin. other Provinces. 
 
 "(1. Snita!)le iiensioim, Hni'h as .>diall be approved of liy Her Maj' .sty V (iovern- 
 " ment, sliall lie proviiled by the (iovernnient of the Dominion fcr those of her 
 " MajcHty'.^ Ser\ant.'< in tlie Colony whose position ami uinolnments derived therefrom 
 " would \>v all'eeted by political ehangci on the admission of iiritisli Columbia into the 
 " liominion of ( ';iiia<la. 
 
 "H. Uritish Coliimbiii siiall be entitled to be represented in tlie Senate by three 
 " Members, and liy six Meniliers in the llonse of Commons. 'I'lie lepivsentatiowtobe 
 " increaseil nndei the provisions of the ' British North America Act, 18(17.' 
 
 "10. The provisions of the 'Hiitish North America Act, IMIT ' shall (except 
 "those parts thereof which are in terms made, or by reascmabh' intendment may be 
 "held to be specially ap|)licalile to and only affect one and not the whole of the 
 " Provinces now coiiipiising the Dominion, and e\eei)t so far as the sanii^ may bo 
 " varied by this minute) be a)iplicablc to liritisii Columbia in the saints way, and to 
 " the like"e\teiit, as they apfily to the other Provinces of the Dominion, and as if the 
 "Cohmy of p.riti.-li Columbia had been one of the Provinces originally united by the 
 " said Act. 
 
 "11. The (iovciuniciit of the Doniiiiiiiii undertake to secure the comiiiencoinont 
 "siiuiiltaiieously, within two years from the date of L'liioii, of tiie construction of a 
 "railway from the IV.cilJc tow'anls the llockv Mountains, and from such pointa^ may 
 " be selected east of tli" Pocky Mount.iiiis, towards the Paeilic, to connect the sea- 
 " board of British Columbia," with the railway system of Canada; and further to 
 "secure the completion of such railway, within ten years from the <late of the Union. 
 
 "And the (;overumeiit of British ('oliiiiibia agree to convey to the Dominion 
 "( iovernnient, in trust, to be ajipropriated in such muuiier as the Doiiiiiiioii Covern- 
 "ment may deem advisable, in furtherance of the cou.strtictiim of the said r.iilwr.y, a 
 "similar extent of public lands along the line of the railway throughout its entire 
 "length in British Columbia not to exceed however (;20) miles on each side of said 
 " line', as ma V be appropriated for the .same purpose by the Doiiiiiiion ( iovernnient 
 " from the jiiiblic lands in the Xorthwest Territories and the Province of .Manitoba; 
 " Provided that the (|Uantity of land wliich may be held niuler pie-emptioii right or 
 " by Crown grant m itiiin the limits of the tract of land in British Coluinliia to be ,so 
 " coi.veyed to the Dominion ( Iovernnient shall be made good to the Doiiiiiiiini from 
 " contiLruous public lands; and piovideil further, tluit until the commencement, 
 " within two years, as aforesaid, from the dale of the I'liion. of the construction of th'j 
 "said railway, the (iovernnient of British Columbia Av.Al not sell or alienate any 
 " further [lor'tious of the )niblic lands of British Columbia in any other way than under 
 " right of ]ire-eniiitioii rei|uirini,' actual residence of the Pre-emptor on the land 
 " claimed by him. In consideration of the land to be so conveyed in aid of the coii- 
 " struetion of the said railwav, the Dominion (iovernnient agree to pay to British 
 "Columbia from the ihite of the Union the sum of 10t>,t)00 dollars per anunm in half- 
 
 " yearly iiavmcnts in advance. 
 
 « » '■ ♦ * * • 
 
 "13. The Charge of the Indians and the Trusteeship and management of the 
 " lands reserved for their use and benelit shall be assumed by the Dominion (lovern- 
 "ment, and a I'olicy as liberal as that hitherto ])ur.sued by the J5ritish Columltia 
 "(iovernnient shallbe lontiimed by the Dominion (iovernnient after the Union. To 
 "carry out such jiolicy tracts of land of such extent as it has hitherto been the 
 " practice of the British Columbia (iovernnient to ajipropriate for that pnr]io,se, shall 
 " from tin;-! to time be conveyed by tlie Local (iovernnient tt, the Dominion (ioyern- 
 "ment in trust for the use and benefit of the Indians, on apiilication of the Dominion 
 " (ioveriiment ; and in case of disagreement between the two (iovernments respecting 
 "the (piantity of such tracts of land to be so granted, the matter shall be referred to 
 "the decision of the Secretary of Stiite for the Colonies." 
 
 (5). " It will be seen " that, by the ttbove terms, Canada, " irrespec- 
 tive of disbursements on account of the railv.ay," Bolemiily agreed to 
 provide for and pay Certain Debts, Liabilities and Subsidies, and Defray 
 
48 
 
 tli«* Clmr^'CH for Cfitiiiii SorviccH, nn \niii (if llic (•oiiHi<lorati(>n to British 
 C(>liiinl)iii for siirreiul<iriii^' " from tlio dale of Union " to Inr cuHtody and 
 ('xcIiihIvo control Certain ili^litH and ItcvcnucH tliat IiikI liflon^^cd to that 
 I'rovinco up to tlic date of Union ; and tiiat Canada iH aH tirndy lioinid to 
 I'OHiii'cl and fuUill tliosc ohlij^atioiiH aH slm in to pay tho lnt(;njKt and 
 Principal ihic to the IJoiidlioldcrH of her rublio Debt. 
 
 (0.) Tho Htatcincnt of alleged Kxpcndiliiro and RcneiptH in Uritinh 
 Colnmliia "as prcpurcd l)y tlic Financial Inspector," in not (|nalifi('il a« 
 bcinj,' " approximate," hnl Ih assnnied to be exact. The aHH\iinption is 
 very ((ucHtiomible, as will bo Hhown hereafter. The Total allej;ed Ex- 
 penditure and HeceiptH " as prepar(>d by tiie Financial Inspector" fortlio 
 liHcal years IhTl 2 to 1H71> NO, inclusive, an^ respectively, Kx[)enditnro 
 fr),l)!l(!,2H!) and lleceii)ts ^ t,lT:J, '2:)H. ]$y reference to " No. 10 Ai)[)roxi- 
 nuito Statement," hereto annexed, carefully compiled from Statements 
 made at Ottawa in tho Auditor-OenerarH Department from tho Pid)lic 
 Accounts, it will be perceived lluit the Total Expenditure by Canada in 
 British Columbia for tiie jieriod, extending' from July 20lh, 1871 to July 
 Ist, 1880, is $r),;};!8,81U ('.() ; and by reference to " No. 8 Statement " 
 (column sixth) hereto annexed, coniiiiled from Statements made in tlio 
 Anditor-deneral's Department, that the IJeceipts in British CoUnnbia, 
 from July -JO, 1871 to July I, 1880, are put down at H,'l'2ii,l[fyiui. It is, 
 however, very apparent that there is a material dil'l'erenco between the 
 two Statements of Expenditure and Keccipts, us tho following compan- 
 Bon will more fully show : 
 
 ExiKNlUTUltE. 
 
 I. l'",xiHiiilitiir«' "iiM pripart'il hy i''iiiaiiLi;il iii>|iir|iir " .*.">, ',100, -81). 00 
 
 •J. I'Aiicnilitiirc IIS coinipiled fnnii Sliitiint'nts luiuii' in Ainlitor (Icii- 
 
 .lal'H i )( paitiiuiil .".,:i3S,804.66 
 
 ',]. Ditliiiuiice ill KxpLiiditiirt' lutwiiii tiic two Slatciiieiits |057|3tt'1.34 
 
 Rkcku'Ts. 
 
 1. ii!tict'i|)tH lis iiiiii|iili'«t liimi Statfinoiit.s iiiatlo in Aiulitiii' ( Iciicral's 
 
 t)ri)aitiiKnt .^t,'2a'{,7 i:),(l3 
 
 '2. liL'i'iipt.s " as ]i)L'iiartil hy l''iiiam'ial liispci'tui' " 1, 1 7;i, ■-•"<!<. 00 
 
 3. l>itt'oiuuuc ill iii't-'t'ipU Ijotwoeii tliu two Stateiiiints !5i.")O,."iO7.0.3 
 
 A further comparison of tho Statement of the Financial InHjiector 
 with that compiled from Statements made in the Auditor-General's De- 
 partment, shows a yery material dil't'erence in the Total Delicit from July 
 20, 1871, to July 1, 1880. For instance : 
 
 Financial Inspectou's Statement. 
 
 1. Exiioniliture in B, ('., .tuly ;J(), I87I, to .July 1, ISSO .?r),0!)0,'2S» 
 
 2. KicwptH " " " " 4,17.'l,l2.'}8 
 
 3. Total Deficit of Excess of Expenditure over Receipts from .Inly 20, 
 
 1871, to July 1, 1880, as per Financial IiiHiioctors's Statement. .S1,823,0.">1 
 
 Statement Cojipiled erom Statements of Auditok-General's 
 
 Department. 
 
 '.. Expeiulituic in B. C, .Inly 20, 1871 to July 1st, 1880 ^■),338,8<)4.Gf) 
 
 2. Itcceipta " " " " 4,22;i,74.').(i3 
 
 3. Total Deficit or Excess of Expenditure over Receipts between .fuly 
 
 20, 1871, und.lulv 1. 1880 S 1,1 1,5, 149,03 
 
 v\ .^,.. 
 
40 
 
 m to Bi'itifilj 
 ciiHtotly ami 
 m^^cd to that 
 Illy lioiiiid to 
 lutcioKt uml 
 
 [h in BritiHli 
 i (inalilioil as 
 tsiiiii|itioii in 
 
 n\U"^Oi\ Kx- 
 (itor " for tlio 
 Kx[)('ii(litiiro 
 
 10 Ai)i)idxi- 
 \ StatcniciitH 
 lu tlio Public 
 )y Canada in 
 
 1871 to July 
 
 Stutcniciit " 
 uuido in tliu 
 ill Colunihiii, 
 Ifi.dU. It is, 
 botwoeu the 
 iug ooinpan- 
 
 .■*.'), !)()0, '-'89. 00 
 5,338,804.00 
 !?(ir)7,304.34 
 
 S4,2'23.T4:«.(I.3 
 
 4,i7:{,'j;w,oo 
 
 !5ir)0,r)0".G3 
 
 ul TnH])cctor 
 eneral's De- 
 it from July 
 
 .<i!r),0flfl,'289 
 4,17H,'2.'W 
 
 SI, 823, 051 
 
 iAL S 
 
 .^5,338,8!)4.G() 
 4,'2-';{,745.(i3 
 
 I 
 ''I 
 
 §1,115.149,03 
 
 TlKMlifTt'Joncobetwcon the Total Drtioit or Kxcrss of Kxiienditurn 
 over llecciplH, as f,Mv<n in the Financial IiiHpoetor'H Slatctiient above, and 
 that eomiiilcil from SlattnicntH made in Auditor-CJcnt riil'M Ofllce, Ih beHt 
 Hhown by the following' Statement : 
 
 I , Total (liCuit (»i- oxt.t'HB of cxiifiiditiiru over luciiipts an yivr KimuiLiiil 
 
 liiH|i.rtoi'»Stati'iiii!iit i«I.M'J3.05I.OO. 
 
 'J. Totiil lU^liiit (ir CXI rsM ol «\|iciiilitiir<: ovir r<'i'fi|)tM, an |iit .""itiilt- 
 iiii'iit LMHiiiiilcd from tlioMc liiiiclc in Aiiiiitur < iciu'llir« Hcjiiut- 
 mint 1,115,149.03 
 
 3. 1 lilli'i't'iii'i' lit'twcoii tliu two HtutuiiiuntH US to exix'RM of (ix{iuii>)itui'(' 
 
 ov.r iv.iriptM *707,n01 .07 
 
 It may lure b<( lemarkcd tliat HtiitcnuintH made, by retpUKt, in the 
 Auditor-tieiieralH Dciiartmcnl, which, by Ktatntfi in iml('|]end< nt of the 
 miiUKtiy, may be fairly ranked us (qual in weight with those " pnqiared 
 by th(! Financial Inspeclor," and that th(! diil'erence between the two 
 HtatenientH as to the ex<!ess of expenditure over receipts, ia Ho very lar(»e 
 that the statinicnt of ihc Financial Insjieetor nniy with no impropriety 
 be (juentioned as to correctness of data and clerical ucciuiwy. 
 
 (7.) It has been remarked that section 10 made no allusion to the fact 
 that British (Columbia ha<l paid double the amount of taxes per head, that 
 wer(i paid per capita by the averii^'e of the whole Dominion. The proof 
 of that fact is apjiarent in the followinj^ statement: — 
 
 1. .Stati'iiu'iit No. 5, ouUuiiu 10, lierutii aniR'.XL'd, uliows that tlir Idt.il 
 
 tax<'.s paid l.v B. C, from .Inly 20, 1871, to duly 1, 18S(l, 
 
 aiiiountiMl to" lg3,S44.4 19. 19 
 
 2. Stiitciiiciit No. 5, cohinin 7, shows tliat tho total ta.xi's th;it U. C, 
 
 would have [laid at the aviTugu ratu of tlit- Doiiiiiiioii from 
 
 July 20. 1871, to .Inly 1, ISSO, in 1,897,875.00 
 
 3. .Making tlio total cxousa of taxt'.s paid hy 11. ('., over thi' avi'iage 
 
 rate per capita of J^oniinioii to he .'51, 040, 544. 19 
 
 It may be fiirtlu^r remarked, that British Columbia with an estimated 
 population of 50,000, equal t,o t)n('-eio:hty-ei^ditli (1-88) of the total esti- 
 mated population of Canada, paid more than one-forty-fourth (lAi) of 
 the eutne taxes of the Dominion. 
 
 (8.) That Cnnadd can liave no reasonable cause to complain about the 
 excess of expenditure over receipts " irrespeetiv.^ of disbursements on 
 account of the railway," is still further apparent from the fact that the 
 receipts in British Columbia for the whole period, were nearly i?l. 000,000 
 more on Jidy 1st, 1880, than thcsy would have been had there been no 
 increase in the receipts above the amount collected in the first fiscal year 
 after union. For instance: — 
 
 1. The total reneipts, .luly 20, 1871, to duly 1st, 1880, were (see 
 
 statement No. 3, column 0) ?f4, 2.33,74.5. 63 
 
 2. The total reeei])tH in H. (J., fiu' the llseal year, 1871 2, No. 3, 
 
 statement, eoluinn 7, weri^ $.Sli;{,298.08, which at that annual 
 rate would have amounted in nine years, .Inly 20, 1871, to 
 .luly 1, 1880, to 3.200.088.12 
 
 3. Total increase of receipts in nine years over the total receipts, al 
 
 the rate of $.t03,298.08, for 1871-2, is $0d4,0.57.51 
 
 This makes the annual average increase in receipts in British Colum- 
 bia, over the total reefiipts for 1871-2, to be about *100,(!0() :i year; and 
 
50 
 
 this is ii very iniportaut fact, as it will be shown hereafter that the expend- 
 iture is decreasiug, whilst the revenue is increasing. 
 
 (9.) The statement " as prepared by the Financial Inspector," shows 
 that during the five years of coniineroial depression throughout Canada, 
 that is the live fiscal years, 1875-0 to 1870-80, inclusive, in which there 
 was an annual deficit, (see " No. 7 statement" hereto annexed) that the 
 receipts in tlie Province wf-.e increasing, the expenditure decreasing, and 
 rapidly tending to balance each other. For instance : — 
 
 Fiscal Yi;ar. 
 I. 1S7.') (•>. 
 1870 7. 
 1877-S. 
 187S <.l. 
 187 '.I 80. 
 
 IJeceipt.s. Exiieniliture 
 
 .•«.-)44,iirvJ $750,082 
 
 4a().ll7ti (iSl.T.SG 
 
 4!t:?,7.Hi ()()8,(i85 
 
 -,79,144 ()8'2,:U4 
 
 r)i7,.')40 
 
 Deficits. 
 
 224, 7B0 
 174,!»29 
 103,200 
 
 G,S.-.,;ill 117,771 
 
 Total (l(!ficit ill five years .1>82.'),790 
 
 Tlic stiitcmciit made in May, 1881, in the Auditor-General's^ Depart- 
 ment, oF the icccnpts and expenlliture .show not only a marked difference 
 in the .•lUKUUits received and expended from what is found in the state- 
 ment " as j.repared hv the Financial Inspector" in the fiscal years re- 
 ferred to ; but that the expendituie in Bi .sh Columbia was but very 
 little over its receipts toAaids the end of that period. For instance:— 
 
 I'isi-al N'car. 
 187.-) C. . 
 1870 7. . 
 
 1877 8. . 
 
 1878 0. . 
 187!) 80. . 
 
 i!cc(iiits. 
 
 >..-.4(),'.)Sl.i:2 
 
 -I.V.. 122.01 
 
 448,7;i8. 12 
 
 r)7.-),!l41..M) 
 
 ,")ii,t!)i). u; 
 
 l'",\lH'Ililitlir(:. 
 
 .•ill.") 1,7 82. .V) 
 .■),s!»,704.0:i 
 
 .■)7^,."iO().:^l 
 .■i!i:!,i>8i.;{2 
 
 .">44,22:5.'.)0 
 
 Deficits. 
 
 ,?no,80i.;!:i 
 
 i:{4,.W1.42 
 !';!,702.1!> 
 17,7S!>.7:{ 
 
 :<2,7:!S.74 
 
 Tiital ileticit ill fivey.ais.... S38<),«18.4I 
 
 Tlie following stateiueul shows the actual difference between the 
 deficits of tlio two statements: — 
 
 Tot.-il ilclirit as per Financiul Iiisjicctdr's stateiiieiit 
 
 Total (litirit aspiT .slatciiiciit of .\ii.litor-( '.ciKTar.- cli>i>;irtincnt . 
 
 Total liill'iTi'iice lietwei'ii the Uvo .-tatciin'iits 
 
 .•j;S2r),7'.)o.oo 
 
 :18»,018.11 
 S4:i(5,171.S9 
 
 These staleiiients show that the direct rec»'ii)ts and exi)enditure in 
 British C^olumbia will very shcnflv b;dam-e each other; and it is believed 
 that the receipts and expenditure for 1880-Sl, did balance each other. 
 For instance : — 
 
 1 Kstiinalnl re.'ei|its in U. ('., for IS80 1 coPi]>ileil from otiieial data. . !j!02r>,000.00 
 
 2 Kstiiiiateilexi.eii.lituie 1880 81 , as iicr avora.ue of the two last fiscal 
 
 years 1S78 i) and 1870-80, as iier statement of Auditoi-deii- 
 
 'rurs l.eiiartiuei.t ^,052.61 
 
 :! lolal (■stiiiiated excess of leeeipt- over exiK-iiditnie in W. ('., for fiscal 
 
 year, 1880 I... ' .^50,04/. .W 
 
 Under the Financial Tns])ector's stalement there would be an insig- 
 nificant excess over expenditure. For instaiuie :— 
 
 !. Kstimate.i e\|.enditnn^ as per avcra.^e of tlie two la.st fiscal yeai 8 
 
 1878 and 1870 SO, as |ier Financial Inspector's staliineiit.. ^()o8,»-7..)0 
 2. F.stiiiiated receipts in H. C, 1880-1 compiled from ofiicial data. .. . 02r),000.00 
 
 ;5. Total excess of e\|)en.htiire o\er receipts for 1880-81 as per Fiiiuucial ^ 
 
 Inspector's statement ¥;W,827.oO 
 
 t\ 
 
51 
 
 the expend- 
 
 ctor," shows 
 lout Canada, 
 which there 
 ced) that the 
 ireasing, and 
 
 Deficits. 
 
 §205,130 
 '224, 7B0 
 174,!)29 
 10:?,200 
 117,771 
 
 i 
 
 years S;825,790 
 
 ral's Depart- 
 ed difference 
 in the Ktato- 
 cal years re- 
 ivas Init very 
 »v instance: — 
 
 Deficits. 
 ,, siio,soi.;!:i 
 i:u,r)Hi.42 
 
 i';!,7t)2.1!> 
 17,7;i!).73 
 
 :{2,7;!3.74 
 
 . .. SaH9,(»18.41 
 l)ot\veen the 
 
 , . . .•i<S2r).71H).()0 
 :JS!t,«18.11 
 
 . .. $4:«5,171..S9 
 
 xjicndituro in 
 it is believed 
 e each other. 
 
 1,.. !#t)2r.,O(K).0O 
 si'al 
 
 iCIl- 
 
 . . . 508,9.52.61 
 
 .seal 
 
 . . . .^56,047. :19 
 
 \ bo an insig- 
 
 ^(558,827.50 
 1)25,000.00 
 
 ;ial 
 
 S!;}3,827.50 
 
 From tlif'se Hfatciuent.s, it iqipears, that, at ih(i end of ten years from 
 the date of Unicm, the onliiiary cxpciiditMre of Canada in Britisli Colum- 
 bia is more than baliinced by the ro('(-i|)ts, as per stiitement of Auditor- 
 Generals Department; and that only th(; insignilieant sum of $:j:5,82'.50 
 is the e.xcess over receipts, as per Financial Inspector's statement; and 
 there is every reason to believe that, in future, the receipts in British 
 Columbia will be very considerably in excess of the expenditure, " irre- 
 spective of disbursements ou account of railway." 
 
 (10.) It is submitted that tiie otdy fair way of determining whether 
 a Province of Canada has or has not contributed her share to the Domin- 
 ion Treasury, is to first find the total amount paid by tiie whole popula- 
 tion of Canada into the Consolidated Revenue Fund; then find the 
 averaj^e rate per head paid by the whole population, and then take such 
 average rate i)er hf^ad as the amount, that the population of a Proviiice 
 should pay per head. On that basis, it will be seen by reference to "No. 
 ;j Statemii'nf," hereto annexed, that the estimated population of Canada, 
 1,400,000, contributed between July 20th, 18T1 , and Jidy 1, 1880, in 
 taxes and oilier revenues, §20:$, 228,752.58 to the Consolidated Revenue 
 Fund; that British Columbia with an estimated population of 50, 000, 
 contributed within the same period as her proportionate sliare $2,305,000; 
 but tiiat, as shown in the statement retV .red to, her actual contribution 
 to the consolidated Revenue Fund w:m Sl,22;5,715.():}, or an excess over 
 her proportionate share of the very large sum of §1,918,745.63. 
 
 Witli regard to expenditure, also, 'Mt will bo soon," by reference to 
 "No. 4 Statement," hereunto annexed, that the "total expenditure of 
 Canada with an estimated population of 4,400,000, out of the Consoli- 
 dated Revenue Fund in nine years, from July 2()th, 1871, to July 1st, 
 1880, was $204,()IO,;j52.(>7; and that British Cohiiiibin, with an estimated 
 population of 50,000, contributed not merely her jjioiiortiouate share, com- 
 puted from the average per capita, $2,701,120.0;?; but also an excess over 
 lier [jropotrionato sliaro of $l.522,()25. 
 
 Had liritish Columbia not contributed her proportionate share to the 
 Revenue and Exiienditure of C'anada, it would not have siutliorized Can- 
 ada to delitierately and e(uitiiiu(iusly leave \infultUled her railway obli- 
 gations to that, Province; but luiving contriliutetl her proportionate share 
 to the receipts and ex[)eu luute of the Dominion, aiul an excess besides, 
 it is manifest that she has done all tiiat in common fairness can be e.x- 
 pe(!led of jjer; and that the un(pialilied statement of receiptsainl ex|)end- 
 iture in seetion 10 of the riipoit cannot be entertained as an olVsut U) the 
 broaches of agreement an<l delays in the fullilhnent of the railway con- 
 tract of ('anatla. 
 
 (11.) '• No. Approximate Statement," with " ^Memorandum,'" is sub- 
 mitted to show in detail the (dnirges for the tlu^n existing serviees in Brit- 
 ish Columl)ia for which Canada became responsible at the date of Union. 
 " No. 10 ApproKimate Statement" with " Menioranduni." explains in 
 detail what expenditure Canada incuirred for British Columbia, ■' irre- 
 speelive of disbui'sements on account of the railway." It seems nnnec- 
 «8sarv to offer any further explanation respecting them, every nnitter 
 being so fullv explained therein. It may be remarked, however, that the 
 facts they contain nudve it self-evident that no item of the exi>enditure 
 can be nuidn a set-oil' to the breaches and delays c()m[)lained of in the 
 .Petition to the Queen. 
 
52 
 
 ;,. I 1 
 
 (12.) It may beobwerved that no mention has been made of the value 
 of the property, irrespective of railway lands, that came into the posses- 
 sion of Canada by virtue of the Terms of Union in 1H71. That property 
 consisted of valuable Indian Reserves (since materially increased in 
 exteiit), Dredging Vessels, Steamer "Sir James Dou<,das," two of the 
 best Lif^hthonses on tlie Pacific Coast, Governor's Residence, Reserves 
 for Public Piir])Oses of considerable value; the whole beinp worth at 
 least $300,000. In addition, Canada had erected up to July, 1880, a Post 
 Office, Customs House, three Lighthouses, and a Penitentiary; the total 
 value of which niav be about $225,000. Under these two heads then' is an 
 offset of $525,000. 'if that sum be deducted from the Excess of Expenditure 
 over Income, computed from Statements made in the Auditor-General's 
 Office, $1,115,149, the Actual Excess of Expenditure over Receipts, would 
 be reduced to $590,149; or, if the $525,000 be deducted from the alleged 
 Excess of Expenditure over receipts, under the statement of the Finauiiial 
 Inspector, $1,82:1,051, the real excess of expenditure over receipts would be 
 reduced to $1,298,051, which is equal to an annual average expenditure for 
 nine years of $129i805; and the interest on that sum, if charged to capital 
 account, would be, at 4 per cent., only $5,192, a year,— a very small an- 
 nual charge indeed. 
 
 (13.) In the session of the Canadian Parliament for 1880, Mr. Blake, 
 the leader of the opposition, stated that in Manitoba the excess of expen- 
 diture over receipts was $722,0(:0; in Prince Edward's Island, $1,027,000; 
 in British Columbia, $823,000; in Nova Scotia, $2,000,000. Now, if the al- 
 leged or implied excess of expenditure in Section 10 of the Report be held 
 to'^be a good set-off by Canada to non-fulfillment of her railway contract, 
 the Provinces or either of them named above, as well as British Colum- 
 bia, might be told that tlieir annual subsidies were stopped, because there 
 was an excess of expenditure over receipts. It is apparent, therefore, that 
 the eonse(jueiices of the enforcement of such a principle might be of the 
 njost serious character. 
 
 ( 
 
 expen 
 
 14.) It has been shown that it is very probable that the receipts and 
 ^„,.-,..diture in Britisii Columbia for the hist fiscal year, 1880-81 balanced, 
 and that, in fntun;, there would be an excess of receipts over expenditure. 
 Assuming this to be the fact, there remains only h- be considered what 
 real financial burden has been borne by Cana.hi in respect of the alleged 
 annual deficits in the receipts in British Columbia. By reference to 
 "No. 11 Stali'mcnt" hereto annexeil. the annual interest in each deficit 
 appears; and for t lie four years of surplus ( see No. 7 Statement hereto 
 annexed) viz:— 1871-2, 1872-3, 1873-4, 1874-5, the total interest on the 
 deticits of those years in British Columbia amounted to only $48,884,44: 
 and m tlie five years of deficits, 1875-(;, 1870-7, 1877-8, 1878-9, 1879-80, 
 ( see No. 7 Statement ) the total interest on deficits in Biitish Columbni 
 amounted to only $277,183,52. If each of the annual alleged deficits in 
 British Columbia during the first four years were charged to capital acicount, 
 then all the burden that Canada incurred for that Province was pledging 
 o'' the public credit for a sufficient loan to meet the dfificits, and i)r()vided 
 for the interest, either from Revenue or the issue of Dominion Notes. If 
 the Deficits in British Columbia were made good out of Revenue from 
 1871-2 to 1874-5, it is very apiiarent that thcfy will soon be paid back by 
 the incoming Ex(!ess of Receipts over Expenditure as indicated. The 
 Deficits, liowever, from 1875-0 to 1879-80 inclusive, with the interest 
 thereon' were met, there is no doubt, by Loans and the Issue of Dominion 
 Notes (see "No. 8 Statement" hereto annexed), and thus no Canadian 
 Taxuayer paid it dollar ol' Uic Deficits or the Interest; or to use the words 
 
 Laxpayer pain it 
 
o.i 
 
 of the value 
 o the posseR- 
 rhat property 
 
 increased in 
 " two of the 
 lice, Reserves 
 diip worth at 
 , 1880, a Post 
 ary; the total 
 .ds tlier<' is an 
 f Expenditure 
 itor-Genenil's 
 jceipts, would 
 in the alleged 
 
 the Fiiiaiunal 
 BJpts would be 
 icpeiidilure for 
 g-ed to cajutal 
 verv small aii- 
 
 BO, Mr. Blake, 
 :;ess of expeu- 
 d, $1,027,000; 
 Now, if the al- 
 Report be held 
 Iway contract, 
 Iritiwh Colum- 
 because tliere 
 therefore, that 
 ubt be of the 
 
 le receipts and 
 0-81 bidanced, 
 iv expenditure. 
 >iisid('rod what 
 of the alleged 
 y reference to 
 in each deficit 
 itenioiit liereto 
 iiterest on the 
 ilv $18,884,44: 
 i7"8-0, 187<)-80, 
 tish Columbia 
 ged deficits in 
 lapital a(!couiit, 
 i was pledging 
 s, and i)ri)vided 
 lion Notes. If 
 Itevenue from 
 le paid back by 
 iidicated. The 
 ith the interest 
 ue of Dominion 
 us no Clanadian 
 UHC the words 
 
 of Mr. Blake in the House of Commons, on April Kith, 1880: We have 
 raised a large sum from our people without interest in the shape of legal 
 tenders in circulation and compulsorily held as bank reserves. 
 " AVe have had yearly deficits, and have been obliged to borrow to pay our 
 interest " Mr Blake was Minister of Justice during the three tirst yeara 
 of Deficits in the Canadian Exchequer, and is, therefore unexceptionable 
 authoritv. We may fairly conclude, therefore, that the Excess of Ex- 
 penditure over Receipts in British Columbia, whether the amount be great 
 or small, has only cost Canada the trouble of borrowing to meet it-by 
 ,,led"in- th6 Credit of the Dominion, of which British Columbia is one 
 of the joint Securities for the payment of both Capital and Interest As 
 a matter of account, it may seem important, but as a matter of fact, it is 
 not. 
 
 (15 ) It is reasonably hoped, in conclusion, that no Canadian 
 Government will hereafter put an alleged Excess of Expenditure over 
 Recf^ipts in a Province into a grave public document, with the apparent 
 expectation of influencing her Majesty's Imperial Government, or as a 
 set-off to their default in not fumiliug a treaty obligation. 
 
 29 In Conclusion, it is submitted that the foregoing review of the Report 
 on the Petition to the Queen shows that Canada has done a great wrong to 
 British Columbia in not carrying out her Railway obligations-and especially 
 bv the Ion.' delay that occurred before commencing construction m that 
 Province; That Bdtish Columbia has suffered great loss in consequence; and 
 that it is, therefore, but right and fair that Canada should compensate that 
 Province for the injury done to her. 
 
 It is not intended to particularize the losses sustained as tliey have 
 been made self evident in the previous part of this Review ^^^ tl»« R'-Pf ^^ 
 the Petition; but, as a fair criterion to the amount of competisation that should 
 be paid to hev iov past delays, it is desirable to show part of what Canada has 
 gained by her delays in constructing the Railway in that Province. 
 
 The minimum Annual expenditure in construction i" British Columbia 
 fixed by Lord Carnarvon in 1874, and agreed to by Canada was !{,2,000 000 a 
 year. It is proposed, therefore, to take that amount to determine what Can- 
 ada iias gained by delay. 
 
 Canada was bound to commence construction of the 0';"^f^^"J-^'|«f « 
 Railwav in July 1873; but did not commence construction till about July, 
 ISsKh is n mkin.^ a dolav of seven years before commencing construction. 
 }f u. a u^ Ex ,e".diture"of |2,000,000 had been .nade, the total amount dur- 
 1 g l" r od o " a^^^ have' readied $14,000,000, and the annual in- 
 
 terest at 4 per cent, oil each year's Expenditure would, m seven years, have 
 Hmounted to $2,240,000, 
 
54 
 
 The followiij}:? Statement will show the Expenditure tind Interest in 
 detail as well iis Totals : 
 
 FUcal Yeu. 
 
 » 873-4 
 1874 5 
 1875-(> 
 187(i-7 
 1877 8 
 1878-9 
 1879-80 
 
 Total Ex- 
 penditure, 
 
 Annnal 
 Expenditure, 
 
 !J2,000,000 
 2,000,000 
 •2,000,000 
 2,000,000 
 2,000,000 
 2,000,000 
 2,000,000 
 
 114,000,000 
 
 Bate of Interest, 
 
 Co* 4 per cent. 
 
 Annual Interest. 
 
 ,?80,000 
 80,000 
 80,000 
 80,000 
 80,000 
 80,000 
 80,000 
 
 No. of 
 Years. 
 
 Total Interest gained by 
 ('anadiv l)y delaying 
 Construction Seven 
 Veur.s 
 
 Total Interest 
 
 on each Year's 
 
 £]ipenditure. 
 
 1500,000 
 480,000 
 400,000 
 320,000 
 240,000 
 UiO,(MK) 
 80,000 
 
 .•?2,240,00O 
 
 30. From July, 1873, to July, 1881— eiylit years— a belt of Railway 
 Lands, IGO miles long, by 20 miles wide, on Vancouver Island, has been re- 
 served, and halt' of it conveyed, by Statute, to Canada, by her request, under 
 the 11th Section of the Terms of Union. 
 
 This belt of Land is the most accessible for settlement of any in the 
 Province. Besides aj^ricultural lands and forests suitable for making lumber, 
 it contains about 450 square miles of the best coal fields on the Pacific 
 Coast. 
 
 During the eight years that have elapsed, no provision has been made 
 by Canada to open tliis belt for settleuient. No agricultural laud could be 
 sold, leased, or pre-empted — thus coniplotely preventing fanners settling upon 
 it. No sales or leases of timber land could be made — thus preventing the 
 erection of saw-mills for the manufacture of luml)er for Export or Domestic 
 use. No coal lands could be sold, or leased under royalty — thus })reventing 
 the opening of coal mines, and increasing the exports of coal and stimulating 
 other industries. 
 
 It was never intended, when British Columbia entered the Union, that 
 the transfer of her Public Lands to Canada for Railway purposes would oper- 
 ate as a bar to their settlement and the development of their industrial re- 
 sources. 
 
 The keeping of the Railway Lands closed against settlement and use 
 on Vancouver Island has entailed a serious loss of population and capital on 
 British Columbia. The great loss sustained must appear self-evident, V)y a 
 glance at the map hereto annexed, showing the extent of the Railway Lands 
 and their contiguity to the most populous and flourishing part of the Province. 
 
 If the Canadian Pacific Railway had been commenced on Vancouver 
 Island in 1873, at the time agreed on, and vigorously prosecuted, a large ,joij- 
 uldtion would have settled along the line, and a large capital would have been 
 inve.sted in v.'iriuus prosperous (niterprises. It is therefore contended that, in 
 considering the amount of compensation due to British Columbia xor past de- 
 
tereat in 
 
 1 Interest 
 ch Year's 
 enditure. 
 
 $500,000 
 480,000 
 400,000 
 320,000 
 '240,000 
 160,000 
 80,000 
 
 >,-240,00O 
 
 56 
 
 Uv« in the construction of the Canadian Pacific Rail^vay. it is but just and fair 
 lrt8beBhouTt"Smnifiedfor losses sustained through not opemng the 
 Railway Lands on Vancouver Island to settlement. 
 
 fairness, be overlqoked in considering compensation. 
 
 32. It is therefore, submitted, without farther detail that the mmot^ 
 
 from Esquimau via Burrard Inlet to Lake Superior. 
 
 33. There are several tabular statements annexed hereto that have 
 been referred to in this Memorandum. 
 
 Railway 
 been re- 
 st, under 
 
 ny in the 
 j; lumber, 
 le Pacific 
 
 een made 
 could be 
 ling upon 
 iiting the 
 Domestic 
 reventiiig 
 imnluting 
 
 lion, that 
 uld oper- 
 istrial ro- 
 
 und use 
 iipital on 
 lent, V)y a 
 ay Lands 
 Province. 
 
 /^ancouver 
 arge ,>op- 
 lave been 
 A tluit, in 
 r past de- 
 
and 
 
 estira 
 
 Cana 
 
 and 
 
 Emei 
 
 inclu 
 
 now 
 
 F. 1 
 
CANADIAN PACIFIC RAILWAY. 
 
 .] 
 
 Office of the Engineer-in- Chief, 
 
 Ottawa, December 7th, 1880* 
 
 Sir:— At the request of the Hon. the Minister of Railways 
 and Canals, I have the honor to submit a carefully prepared 
 estimate of the probable cost of constructing the sections of the 
 Canadian Pacific Railway lying between Prince Arthur's Landing 
 and Selkirk; the Pembina Branch, extending from Selkirk to 
 Emerson ; and from Kamloops to Port Moody, British Columbia, 
 including station-houses and water tanks. 
 
 The estimate is made on the basis upon which the works are 
 now being carried out. 
 
 I have the honor to be, Sir, 
 
 Your obedient servant, 
 
 (Signed) COLLINGWOOD SCHRIEBER, 
 
 Engineer-in- Chief. 
 
 I 
 
 It 
 
 F. Braun, Esq., 
 
 Secretary, DepartmeiU of Railways and Canals. 
 
I « 
 
 68 
 
 MEMORANDUM OF ESTIMATED COST 
 
 Of constructiiij,' the fcillowing nectioiia of the t.'aiiiidiai» I'licific Railway: 
 
 Prinoe Arthur's Landing to Fort 
 William 
 
 Fort William to Knglish Uivcr.. 
 Phjglish River to Eagle River, . . . 
 
 Eagle River to Keewatin 
 
 Keewatin to Selkirk 
 
 Station houses, 2 engine houses 
 and water service 
 
 Prince Arthur's Landing to Sel- 
 kirk 
 
 Pembina Branch 
 
 Rails and laying . 
 V urehase 
 
 Kails 
 
 Grading, etc. 
 
 Rails 
 
 Grading, etc. 
 
 Rails 
 
 Grading, etc. 
 
 Rails 
 
 Grading, cte. 
 
 Rails 
 
 Gradiuf.', etc 
 
 Station house and water service . 
 
 l'.';{,ooo 
 
 1 "2,000 
 
 850,000 
 1,885,000 
 
 580,(X10 
 2,0(K»,000 
 
 ;wo.ooo 
 
 .•{,200,000 
 
 970,000 
 3,5:<0,000 
 
 ['rince Artluir's Landing to Sel- 
 kirk antl I'cmhina Branch < • • •_ 
 
 Kiindoops to Emory's . . . , j Rails 
 
 Grading, etc. 
 
 Station house and water service . , 
 
 Emory 'h to l*oit Moody ^ 
 
 Kails 
 
 
 Station housea and water service 
 
 
 
 Kngineering on construction 
 
 , ^ 
 
 * 
 
 
 Total 
 
 700,000 
 
 700,000 
 
 08,000 
 
 770,000 
 
 7,100,000 
 
 80,000 
 
 5-10,000 
 
 2,470,000 
 
 !)0,000 
 
 ;{02,ooo 
 
 1,000,000 
 
 CANADIAN PACIFIC RAILWAY 
 
 Statement of Expenditure to 30th November, 1880: 
 
 f35,(X)0 
 
 2,735,000 
 
 2,580,000 
 
 3,500,000 
 
 4,500,000 
 230,000 
 
 13,580,000 
 
 1,4H8,000 
 15,048,000 
 
 7,050,000 
 
 I 
 
 .3, 100,000 
 
 1,002,000 
 
 $28,000,000 
 
 Total Expenditure to .'Wth .Tune, 1879 
 
 Expenditure during fiscal year ended ,30th .lune, 1880. 
 
 Total Expenditure to .30th .June, 1880 
 
 Kx]>enditun' for 5 months ending 30tb November, 1880 
 
 Total Expenditure to 30th November, 1880. . 
 
 $12,444,237 10 
 4,044,027 00 
 
 $H),488,8«4 70 
 2, 111,. 537 «6 
 
 $18,000,402 36 
 
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64 
 No. 3.— STATEMENT, 
 
 «. • in. Total Annual Receipts of ConHolidated Kc venue Fund of Canada, in each Fiscal Year, 
 ''Tof it -7 1S79-SO .nclu.ve, an.l a.o Total Receipts in Nine yea.; U. Average 
 : e^ head contributed l,y Donunion, and also hy British Colund.a ; a so Total 1 
 portioLte Annual Liability of Bntish Cohunbia to .Consolidated Revenue Fund, an t 
 L Nine years ; also, Total Annu.al Receipts actually paid by Rrit-sh Cohunbia into (,on 
 m Nine yea.s ' ' j .^^ p^.^i,,, Columbia; the 
 
 isolidated Revenue Fund, and tli.i rate per iitaa acuui. y i 
 
 EKcess per head over Proportionate Rate of Dominion, the Total Anr ual Ivxcess pa.d, and 
 the Total Excess in Nine years, 1871-72 to 1879-80, inclusive. 
 
 
 Total neieipts 
 
 ad'- 
 
 a'ia 
 Ml 1 
 
 2 a- 
 
 g SO 
 
 ?M 
 Ui 
 
 
 oS.2 
 
 « f1 
 
 actually paid 1 
 Consolidated j 
 und in each 
 
 Excess per | 
 by 1 Cover 
 e per head of 
 
 Annual Ex- 
 Prnportionate 
 ou'ributed to 
 d Heveiiuo | 
 t. C. in each J 
 
 (population, j 
 
 "(J 
 
 of Consolidaled 
 
 Btveuue Fund 
 
 in each year. 
 
 •< 
 
 •< 
 
 -3-" = :?- ! 
 
 llili 
 
 < 
 
 
 fe ^ I g : ►< r: c 3 ! 
 
 < 
 
 
 
 
 S4 70i' 
 
 §235,375 00 
 
 S363,29S Oh 
 
 '$7 2Gi 
 
 ?2 55;J 
 
 
 1871-72 
 
 820,714,813 68 
 
 •54 70i' 
 
 .5127,923 08 
 
 1872-73 
 
 20,813,469 45 
 
 4 75J 
 
 4 751 
 
 •237,625 00 
 
 38,5,330 03 7 70.1. 
 
 2 95.] 
 
 147,705 03 
 
 1873 74 
 
 24,205,092 54 
 
 5 50 , 
 
 5 no 
 
 275,000 00 
 
 ;!;il,l92t)2: 7 S2 
 
 2 32 
 
 116,192 62 
 
 1874-75 
 
 24,648,715 04 
 
 5 60i 
 
 5 60i 
 
 280,125 00 
 
 464,072 56! 9 28 
 
 1 
 
 3 07.'; 
 
 183,947 .56 
 
 187r)-7e 
 
 22,587,587 05 
 
 5 02 
 
 5 02 
 
 ■.'51,000 0( 
 
 .-,5,-1.24;! (u 11 lo;. 
 
 6 08^ 
 
 304,243 04 
 
 187t) 77 
 
 22,059,274 11 
 
 5 01] 
 
 5 01.1 
 
 { 2.W,625 0( 
 
 1 4t;S,673 76, 9 37 
 
 4 35:i' 
 
 218,048 76 
 
 1877 -7 J 
 
 i 22,375,011 88 
 
 5 08i 
 
 5 OS I 
 
 254,250 0( 
 
 ) l<l(i.9l2 94 9 9H 
 
 4 84 .V 
 
 242,262 94 
 
 
 1 
 
 
 •'56 000 0( 
 
 ) 5ST.!I32 44 11 76 
 
 6 ()4 
 
 ;« 1,932 44 
 
 1878-7< 
 
 3 22,517,:i.S2 14 ;) 12 
 
 
 
 \ 1 
 
 
 1879-8 
 
 [) 23,307,406 69 
 
 5 :?o 
 
 5 30 
 
 265,000 
 
 ) 511.490 16;10 23 
 
 1 4 93 
 
 •246,490 16 
 
 
 — ' 
 
 
 
 
 
 
 . 2,305.000 
 
 
 Totals 
 9 years 
 
 , 203,228,752 5^ 
 
 
 
 
 4,223,745 
 
 i3 
 
 1,018,745 63 
 
 N0T« -1. Total Excess paid by British Columbia to ConsoUd.utcd Kevcnuo 
 
 Fun.l. 20th .lulv, 1S71, to 1st ,luly, 1880, .nclns.ve «l,918,/4., 6.i 
 
 2. Total Excess, S„91S,745 63, >n Nh.e years ; c,,ual to an annual 
 
 avena^c contribution to Consolidated llcvome ImhuI of. .... -.3,1.13 .tb 
 
 •i Annual Average Contribntion of Nin<. years to Consohdated Kev- 
 
 euuc Fund, vi/. : §213. 193 9.) ; e.,nal to interest per cent, at 4 ^^^^^^^^^^^^ ^ 
 
 per anmnii fill , • , -i-V 
 
 4 Tot.al Kxce.s. viz.: 81,918,745 63. over l'n,i,nrt,unate Li.abdity, 
 paid bv B (• into Consolidated Itcveinie Kiuid, in Nine years, 
 cxcecls the Total Interest, vi/.: *l,714,751 IW. on the Total 
 Capit-d Kxpendilnrc for Surveys ami Construction of (.anad.an 
 Pacitic Railway, fro,,, 1S71 72 to 1879-80, inclusive, to tlie ^^^^^^ ^^ 
 
 amount of ■_ 
 
 :n 
 
65 
 
 No. 4.-STATEMENT, 
 
 , ,S7,, to .,..,. -, >SSO: --'-;- ^-;;;.t,^:i..gL.^^^ per capita 
 year, esti..atin, Donnnio. population at 4,400,000, an ^^^^^ ^^^ 
 
 Lt Bnti.1. CoUunUa, .U. .0,000 populat.o. . ^;^' j^ilW ^ ^cv Uea.l for Expendi- 
 capita rate of the Don.inion for cxpena.tnro ; the ,at^ a b P ^^^^ ^^^ 
 
 - '^ -^^'t ri:;::.:::^ r:::;:^r - 1.... .... eo..w. 
 
 :;"r :— ""N::V.ar.over .er proportionate contribution to I>o„.n.n 
 Expenditure. 
 
 rinaneial 
 Year. 
 
 Total 
 
 Eippiiilitiire 
 
 out of 
 
 C,..iis.)liil"ted 
 
 Revnioe Fiuul 
 
 In eiich year. 
 
 Approxi- 
 
 luate lavcra«(' rato 
 rate per Ucail 
 
 'avei'MC 
 
 ■ pel- head of 
 
 j 1)1)1111111011, 
 
 I (iiopulatioii 
 4,4l)U,0U0 ) 
 
 1871 72.... 
 1S7-2 T.'i.... 
 187;i 74.. .. 
 
 1874 7.'.... . 
 
 1875 70. . . • 
 I87ii 77.... 
 1877-78.. .. 
 1878-70.... 
 1H70-80. ... 
 
 Totals ill Niu' 
 Years 
 
 «17.4S0,468 82 
 10.174,047 02 
 •28,;!it),:ilO 7;") 
 '2:1,71:^,071 04 
 •24,48H,:i72 111 
 
 •2:i,."iio.:s()i 77| 
 •2;i.r)o:i,i">s 2.')1 
 
 •24,4.V>,:!81 .'>(■>' 
 ■24,8.'')0,<):i4 4.") 
 
 8204,6 10, :552 07 
 
 S4 00 
 
 4 ^'ti 
 
 5 :io 
 
 .. 50'; 
 
 5 :uJ, 
 5 :u 
 5 i>^:; 
 
 5 (i4:; 
 
 for wlilcU 
 
 lirlilsii 
 rolumliitt 
 (population 
 
 .JD.IKHI) 
 
 iB liable. 
 
 S4 00 
 '4 ;15:( 
 
 a :«) 
 
 .-, .-OL 
 
 -, :u 
 5 rioj 
 
 ") G4i' 
 
 Approil. 
 
 mate 
 rate per 
 
 lii'Rd 
 
 aitually 
 
 paid by 
 
 BritlKli 
 
 Columbia. 
 
 Approxi- 
 mate excess, 
 ptr bead 
 
 over 
 
 avornge 
 
 r.ite of 
 
 Douilnion 
 
 per head, 
 
 piiid by 
 
 Uritish 
 
 Columbia. 
 
 S7 lOi 
 10 
 
 (1 «:i 
 
 8 .-)! 
 10 04 
 
 8 'yO 
 t) 00)s 
 
 10 o:u 
 
 9 (Wh 
 
 S3 10?! 
 
 1 m 
 
 1 (i:^ 
 :? \i)h 
 
 4 47i 
 •A \Sh 
 
 :i Gfi.'i 
 
 5 :?7j 
 
 4 Oli 
 
 ARRreK"** 
 appi'oilmat* 
 
 Excess 
 
 , untributed by 
 
 Brltlf^h 
 
 Columbia In 
 
 each FlBoal Ye»T 
 
 (population 
 
 .Ml, 000) 
 
 to ConBol. Rev. 
 
 Fund. 
 
 $155,250 00 
 91,625 00 
 81,500 00 
 l.-)8,2i50 00 
 •223,750 00 
 159,250 00 
 18:i,2.-)0 00 
 268,875 00 
 •200,875 00 
 
 $1,522,625 00 
 
 Note. — 1. Total 
 
 Exce.«.ovcvproportionatelial.ility,coiitrilnde.lbyBnti^i 
 oLiuliia tol'onsoliaato,! Fund forKxpeiuU.arcfronilst^^^^^^^^^^_ 
 
 00 
 
 July, 1871, to 1st July, 1880. 
 
 , ., • 1 1 ,. T..iti«li Coluiiilua, from Ist July, 
 •2. Avera,'.- Annual Excess p="'ll'>1'"*^''"*'" ' 109,180 55 
 
 IS71, to Ist July, 1880 
 
 ,,e Annual Ex...s. viz: ?109,180.55, is oqual to the inten^st. ^^^^^^^^^ ^^ 
 
 3, A vera;. 
 
 at 4 per cent, per annum, on. 
 
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67 
 
 STATEMENTS Nos. 6 AND 7. 
 
 VV.K ov Dominion. -Total Consolidated 
 
 No 6 - CONHOLIUATKII KF.VKNUK AND EXPENDITrUl 
 
 Average Expenditure, ;;<>?• capiUx, §5,05. 
 
 I^ovlnce. 
 
 Estiniatod 
 Populiitiou. 
 
 Approxi- 
 mate Average 
 Ke venue 
 per Capita. 
 
 Ontario 
 
 Quebec 
 
 Nova Scotia 
 
 New Brunswick 
 
 Prince Edward Island 
 
 Manitoba 
 
 British Columbia 
 
 Totals 
 
 •2,000,000 
 
 1,500,000 
 
 400,000 
 
 .S00,000 
 
 100,000 
 
 .-)0,000 
 
 50,000 
 
 $5 30 
 
 5 :?o 
 
 5 30 
 5 30 
 5 30 
 5 30 
 5 30 
 
 Proportionate 
 
 (iliare of 
 CouholiJated 
 
 Revenue 
 
 required of 
 
 eacli liovince 
 
 u8 per 
 
 Population. 
 
 Approximate 
 
 Average 
 Expenditure 
 I)er Capita. 
 
 Proportionate 
 
 share of 
 Expenditure 
 required of 
 
 each Province, 
 as based on 
 Population, 
 
 810,000,000 
 
 7,050,000 
 
 2,120,000 
 
 1,590,000 
 
 530,000 
 
 205,000 
 
 265,000 
 
 $5 05 
 6 05 
 5 65 
 5 65 
 5 65 
 5 65 
 5 65 
 
 §11,300,000 
 
 8,475,000 
 
 2,260,000 
 
 1,695,000 
 
 565,000 
 
 282,500 
 
 282,500 
 
 Customs 
 
 return (18S0) of Manitoba estimates population at 30,000. 
 
 No 7. -St.vtkmknt of Receipts ami Kxpc 
 
 to 1879-80, inclusive, showing Annual Surphis and Dehcit, 
 
 .and Exnenditureof Consolidated Fund of Canada, from 187i-72 
 
 FiHCul Year. 
 
 1871-72... 
 
 1872 73 
 
 1873-74 
 
 1874 75 
 
 24,205,092 54 
 
 24,648,715 04 
 
 1875-76 I 22.587,587 05 
 
 1876-77 ! 22,059,274 11 
 
 1877-78 
 
 1878-79 
 
 1879-80 
 
 Totals in Nine Years. | §203,228,752 58 j §204,610.352 67 
 
 888.775 79 
 935.644 GO 
 
 §20.714,813 08 \ §17,589,468 82 1 §3,125,344 86 
 20,813,469 45 I 19,174,647 92 | 1,638,821 53 
 2,3,316,316 75 
 23,713.071 0' 
 24,488,372 U 
 23,519,301 77 
 23,503,158 25 
 24,455,381 56 
 24.8.')0,634 45 
 
 22,375,011 88 
 22,517,382 14 
 23,307,406 69 
 
 6,588,580 18 
 
 $1,900,785 06 
 1.460,027 66 
 1,128,146 37 
 1,937,999 42 
 1, ,54 3, 227 76 
 §7,970,186 27 
 
68 
 No. 8.-STATEMENT, 
 
 sw. Tou. A.o«. . i>on..o« N..i„ ...,..« . ^::;^::^r:/z:^ 
 
 .0 1879-80. inclusive; t.e Increase <^^'^^j:;;^:^^^^ ,,,,_, ,„, l.„e lr.m 
 
 year, the Total Aunual Issue, and, also, the Total Inuca 
 
 July I. 187U to July I. 1880 ; also Total Net Issue fvo.n .luly 1. l^. 1. to Jul> 1. 
 
 Fiscal 
 yeai. 
 
 InPieaso 
 
 Dominion Notes in Dominion Note : ^^^^^^^ ^.,^^1 ^,f eai-li 
 
 ciri'ulrttion ' ,^"!,'„„,, I liBunl year, 
 
 at end of each : t-ud ot oatu j compiiri'd with 
 
 tiscal year. I fist^"' y*^"'- i precoding > 'ar. 
 
 Annual Tssue, 
 
 Net Total IncWH»« 
 of Dominion Not» 
 Dominion Notes, | iBsue in >:ini' yca«, 
 lu eiu-h 1 July 1, I'll, 
 
 ftscal yei»r. to July i, 18»>, 
 
 1870-71 5 7,367,340 74 ! 
 
 1871-72] 10,510,54121 83,143,200 47' 
 
 1872-73' 11,284,13169 773,590 48^ 
 
 1873-74! 12,175,578 62 ' 892,440 93 
 
 .. ' ,n-««-inn $1,396,705 62 
 
 1874-75' 10,7-8,8(3 00 _ 
 
 1875-76 ! 11,533,891 48 755,018 48 _ 
 
 1876-V7! .0,680,492 88 ' «33.398 60 
 
 i „ -o . oi ' '219,758 07 
 
 1877-78 i 10,460,734 81 ^ j 
 
 1878-79 1 10,789,710 04: 328,975 23- 
 
 1879-80 : 13,505,159 46 2,775,449 42 
 
 $084,654 23 
 :73,590 48 
 891,440. m 
 
 755.01 S 48 
 
 328,975 2 
 i,775,449 42 | S6,197.8lS 72 
 
 Totals, 
 
 Nox..-Difrereuce between Total ..linual Is.ue and Total Net Increase. ^11.316 05. 
 
 No. 
 
 ot 
 
 ttir- 
 
 6 
 
 n 
 i 
 
 10 
 
 15 
 16 
 
69 
 
 No. O.-AITROXIMATE STATEMENT, 
 
 Service*. 
 
 ExpluuuUiry Eomurka. 
 
 , A'piiroxiinate 
 Approximnto amt. B. 0. would 
 
 rai.l l.v U. 0. July ui, Ihi;- '" 
 furlHTl'bL.foiv.Julyl.lssU.ifsUo 
 
 Uiiiuu. luHl nut uul ed 
 
 1 wi.li Cunutla. 
 
 jGovenwr 
 
 lAuditor-OeiicniJ., 
 
 iCustoms 
 
 I'ost-oliicc-s . . . 
 
 8 
 
 UmlfV B. C. Statutes, •■••| 
 
 The Auait.u- of F.. C. IS ""V'' n^v'' 
 Union wade it neccssiiry tor Cauada 
 to have .u.h a LocaH)UK-=>- J" As- 
 sistant Ueccivu-l.tMierals Dopait-I 
 
 'iVL'toria and Xew Wcstnun.ter . . • ■ ' 
 
 Wp,.en.<;ouvtlud,.J^d||fS^^^ 
 
 ^'^""""'' 1 d^e of Union....... ^,.,....--v 
 
 Istivendiary Magis F.. Vietom, ^anauno. »;"- .^;';- 
 ' tratcs acting asj boo. \alc 
 
 County Ct. J"'^^f ;',, ,,,,,,.1 ..1 i,i ^ifts on Queen's Birth- 
 Expens._H coum^cted hxa^. n b^ ^^^^. V^-,,tu,in.tcr. . 
 
 witli Indian liil»^>-- ''''>•»'' '''>.j,-,,.y t„ Uoion 
 Ul.uly t.> NV^^ternlcn.,or > , -.^-;^:;;^|, 
 
 Union Telegraph. 
 
 $1'J,400 
 
 ! Volunteers (Militia >. 
 iGoveviituent Vessels. 
 
 . ^vith Canada. ' Tenuinable, il de- 
 
 j sired at iiKMith's notice 
 
 Under I'rovineial Act. ...... •■;,■•.■ 
 
 Steamer, S,r .lames Douglas, ^12,.-?..0, 
 i Dredger Keeper 
 
 Stc'unor. Sir James Douglas ciinicd 
 u!ilH:i'as,.enger.su.ia Freight troni; 
 
 Vietoi-ia to ComoN, t.nvcd \esoels,j 
 ,,„a served Light-house^ Inemne 
 fioni l>assengc,.sinvigl.ta.>.d Mail 
 .Service paid all lier h.^.p'Jiwes 
 
 J,ightliouses. - lcoliJJtedi.v'c'mstal.iJs;'under.lircc 
 
 jExcise 1 tion. of Stipeudary .Magistrates. No 
 
 I extra special charge 
 
 15 Repairs, Buoys,, 
 
 16 1 Penitentiary 
 
 ri'iKs of Convict,, sentenced, '1 years 
 ' or upwards, say .s4,(H)0. ....... • ' 
 
 Total Charges for ««''V^-«* '"F 
 
 187 1 .amn£n_t^iiill>_:i!:iil 1_„ 
 
 MKMOUANDUM. 
 
 Union 
 
 v^ere nlgoUatea in 1.70 .u- 1 ;;;;-^- , ^^ ;^:;;\r;:^'liaide for Services afte,;.. .u,n. (See 
 f r""''u:i'.>v'M;"::"t'Ui'::neulli ,,„,,, ...u.. Ottawa, K''-'-y-.^.M.^, .,,.,, 
 
 "^" lH=L^-:^i--^^ --'^ 
 
 A.a the Balance is nearly the same as U. Total Aniount ^"^;^;-"-^,,s,OSU..O 
 
70 
 
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71 
 
 MEMORANDUM, 
 
 UeBpectin« Statement No. 10, and Cnn-la's Kcferonce to Kxecss of Expen,litu,o in B. C. 
 over Receipt, in Onl.r in O.un.il on V.til.on to th. Queen. 
 1 Tolul approximate expculiturc. l.y Canada f<^]''flf „ 
 
 C P Rmhvav in British Colu.ubia, July 20, 1871, to Ju y , 1880. ^$o,.53o.894 
 2. Total Rovenu. (approxi.nat o) dmived l.Y Caua. a from and 
 
 in British Cohual,ia, fron. Jnlv 20, 1S71, to July 1. 1880. . . 4,.^3,-^ 
 
 (See Stat,.n,ent N.,. :% Colmnn (i, ,.. 1 1 1, of Pnnte.l fapcr..) - " 
 
 Balance in Exwss of lleceipts ^i,\i-^,it. 
 
 3 Tl.c Total Expenditure by Canada in British Columbia waH nuule iu 
 order tJfultil her Treaty obligations, under TermH of ^u-n; ami henee, ean 
 in no possible ^vay be set up as .n otTset to non-tuKdlment of he. Raihva, 
 obligation, under the 11th Section of Tern.s ot Iniou. 
 
 ^ 4. Tl>e folhnvino. items, excluding subsidies, &c u. ^f^-^^^}^^ 
 10. are consequent on extension of Dmninion (lovernn.ent to Brdish Colum 
 
 bia, viz. : §200,008 
 
 Legislation 4t),5:]3 
 
 Pensions ')-j,\\2') 
 
 Marine Hospital r)tT,;i08 
 
 JNiilitia •. loo'ooO 
 
 Public ^yovhs— PcnitiMitmry. . . . . • • • „; V ' ^ ' ' ' ',; i 
 
 Custom House and Posl-olhce, \ictona, and 
 
 Li'dithousos (valuable to-day) ■• •■• 
 
 Oc^>an service, excess over former subsidy to han 
 
 Francisco, <itc., say ,",''''■''' V^ e 
 
 Post-ollice, includino- L.jul Wnl Service, Exc(>ss ot 
 
 Expenditure over 1871 , say 
 
 Indians— Excess, say 
 
 (1.) 
 (2.) 
 (3.) 
 
 (1.) 
 (5.) 
 
 (G.) 
 
 (8.) 
 CM 
 
 75,000 
 
 ;5G0.000 
 
 .-)00,000 
 200,000 
 
 Imliaiis— I'iXce^s, f-.i.) . .• 4u 000 
 
 Excise-Excess, say • • • ' • 275'000 
 
 To ,,,rl!ll> 1 KXCCSS. SaV , ',^,^^> 
 
 (10.) Tele-iapli— Ext, , . ,- 
 
 (\l ) Superannuation — Excess, say • 
 
 (12'.) Assistant-lleccivcr General's Depaitmer.t, say.. . . 
 Unuecessarv to ^ive more particulars. 
 
 27.") 000 
 0,000 
 GS.OOO 
 
 Approxin.ite Tot 1 I'.xcess of Expenditure nf Can- 
 
 L in B. C, incdent to Union uilh B. C $1^0^ 
 
 r, Had British Columbia nnt united uith Canada, the al)ove Apj.roxi- 
 ,,„e Excess over or.linary Expenditure for tl.e Pioviuc uould ne^er have 
 
 ^"'""t" The entire Expenditure in the Slat.-uen. above ..,,,,. chMly under 
 11.0 head of (V>ntroll:d.le Expeu.i;ture, audi, .as.ithmtlu. discretion of the 
 
 pllhuon Parliament to incrc.sv or reduce it. Hence, Br.tish C olumM. can- 
 ,w,t be held respouMMe hn- tlie respeCive amonuts expende,,, 
 " „ ..v ease, and from any point of view, the Totn Expenditure in 
 
 Statement No. 10, cannot be ur.ed a. an otiset to non-tuMlment by Canada 
 of the railway oblioation of the Terms ol Union. 
 
 p,,v ..ff .k.blr,, viz., Umt II,.. i.nvmonl uf o„o or ...ore MA, l..,„.J»teJ ..11 
 
 others due to the same person. 
 
72 
 
 ! 
 
 -4 
 
 I 
 
 ! 
 
 J 
 
 
78 
 
 G. W. Hkuheiit, Ehq. to Hon. A. De Cobmob. 
 
 DowNisd Stuket, 'iflth AcdDfiT, 1881. 
 
 8iK • 1 am dirocted by tho VmtI of Kimbeiloy to acfiuaint you that his Lordship has 
 had before'hiin your letters of th« d.iteH noted in the n.argi..; together ,vith tlie memorandum 
 uiid other panerH wliieli you have transmitted to liin. upon th.) uuhje. t ot the I etition t.. the 
 
 «^ ion of the Canadian- I'aeitie Railway, lying hetwe.n Kx(,u.malt an. Nanaimo. '"''I W /-•;>»■ 
 Btructinc the portion of line between J'ort Moody and Vale ; that the Province bo pc.mitte.l to 
 reuulate and collect its own tarilV of Custonm and Kxeise until through coni.nunieation by rail- 
 way be eatablishe.l through British Territory with the Ka.stern IVuvinees : and t'lf « ;"'y 
 evtM.t, compensation be awarde.l by the Dominion to . k, 1 n.v.nee for the hmes m l.cted upon 
 the latter by reason of tho breaches of Agreements and delays referred to in the I ctition. 
 
 His Lordship duly reeeive<l this I'etition through the (Jovernor-C.eneral of Canada, :u.d 
 with it a lleport of a Committeo of the I'rivy Council of the Dominion, a coi)y of which has al- 
 ready been eonnnuiiicated to you. ., .. ^ ,. 1 I „o U^A 
 
 Lord Kimberley has given his most careful eonsi.leration to these papers, and has had 
 several interviews upon tho ,,u..stionH to which they relate both with your.self and ^ith ^>;; •{• 
 A. MacdonaW, and 1 am now to eoinmunicato to you a copy of a iJespatch which his lx.ra- 
 ship has addressed to the Covernor-Goneral stilting the conclusions which he has lormed upon 
 
 the subject. 
 
 1 am. Sir, 
 
 A. i)E Cosmos, Esq. 
 
 I.SSl. 
 
 * .list May, 188L 
 8th Am. list, 1881. 
 
 l.^th .lune, 1881. 
 
 Your obedient servant, 
 
 (Signed.) KOBERT O. W. HERBKRT. 
 
 '>r>tU .Tunc, 1881. 28th July, 1881. 4th August, 
 
 
 
 ! 
 
 i 
 
 [(Copy) CiNADA, No. 247.] 
 
 The Earl of Kimberlky to riiii Marquis of Lorne. 
 
 DowNiNd Stkekt, AutiUST 25, 1881. 
 
 My Loku: I duly received your despatch, No. 52. of the l!)th May, enclosing a I'eti- 
 tiou to tlL Queen from the Legislative .•Xssembly of Rritish Coh.mb.a praying that Her Maj- 
 esly wilLgia^^^^ Dominion Covernmcnt to be moved to carry out 
 
 iou to the Province for the losses intlicted upon the latter by reason 
 meats -'l;!;:;;;^^-;;;;'; -f:;-:;f J;:^,,„, eonsideratio,. to this I'etition and to the Report of the 
 Dominion I'rivy O.uncil which accompanied it, as well as to various lettors ,r,,.m the subject 
 which 1 have receive<l from Mr. A. De Cosmos, who was, as you arc awaie, deputed by the 
 Goiernment and Legislative Assembly of the Province, to visit this country in order to support 
 the prayer of^themition.^^^^^^^^ several interviews with Sir J. A. Macdonahland 
 
 with Mr. De Cosmos, and I will now proceed to conimnuicate to you the conclu.sions which 1 
 
 ^'*"'- '"r'ttl\\\u"J:ltry to rec:apitulate here at any length the history of this question. 
 British Columbia entered the Dominion in 1871, on the oon.lition <'f 7: "''" ^Jj^* ^,^^'^^1^^ 
 connecting the seaboard of British (Jolumbia with Railway system of Canada ^h" ^^ J« «°'» 
 menced within two years and completed within ten years from that date. . I* «°" • '^°^,^,' ^n 
 beeame apparent that a punctual c.unpliance with this condition would be impossible, and m 
 irTrfeeHngdLatiHficd with the measures contompluted by the late A.l ministration of the 
 
 I 
 
'"*"■ ^ '"ii;^rK:;u"'='K;S;;u'S'=i~ ., .a i. n™.i„ ..»»» 
 
 .-3. That tin. wagon roa.l a.ul U ^ ^1.1 I '','';''',,,, i,, ,,, tl,o nm.in.un, .xpon.lituro 
 " 4. Tl.at, .s-...(.(«),U()0 a year, u.ul not ^ ,;"»•«;;• ; ,^ ,, ^,„. ,,,,,,y, ,„t .sullie.,cntly com- 
 
 .. ,„. ruihN .iV wo.Uh ^^ itluu Iho I'rovnuM. from ' '^^ " ^J^Xn. The aum.al .xn.M.,l.lur. to bo 
 .. {.a to CM.U,1. Ih.t. an.,unt to IM. oxpcnac^^.^^c^ 
 
 ."L nu.,,1. in .N.C.H. of the -n.nnumn S' ^-'«'^^^,^' Jj: ,s,k.. the Railway h1>-;"1'1 >'" 'l;"' ^ ^ 
 
 .,..,,:ffor'l^;:;!i;f.::n;u;:iSj.;^^^^^^^ 
 
 .l,::t'ir;or::UinJc:.!;:u:.ri.^ii"^^^^ 
 ''™'''^Si::;t:::;:r:ui.a.ce.te,u.ycanajai..^Min^^^ 
 
 "^''^^^!^;u. tl. n.tt.r ,.pa.ntly «ati.fa..tc.ily ■.-;..;;; ; ':^::i)};:]^:]^:;':qZn:. 
 
 ::^£:^-u^-:::c:i:z^^^^^^^ ^"^ "•- '' ^ ""::""" 
 
 " "^'''"."^; ..n..„u.nce of th. lo. of thi. 7«-'>-;j\)::";;;^;r'^f':^.'';ii^'f^i^'i^^' 
 
 .. iHhuul Railway. , ^ ^,,,, „,_..„,„,„ n„vornn,.nt. an un«ht l>avo l.een .;M;oct^l, -u.-.l l^^oat 
 
 n>, ami tiii'y nii.inN j.i.'i'— . -■• - 
 
 "The 
 
 ; u, I'lviti.!. fohnni.ia, an.i «f ^: ;'^'?\^'^'";z.;i;,;^u;; i;;:,Vi;iuiivc A.s..n,i,iy, cmnpiaii. 
 
 nun,. , Canaaaof tho 'rarnruvon 1....^, an W-.^^^ 
 
 rovernmont mi 'ht l>c inu.uaiauly move;.! to ^'^'^V * ■ ro n ■ ulinK tl.o vi^it of tl.o Karl of 
 '-''" 'n,^v,.ly to tlH.s. r.;pr.s.ntatHU. w=^^^^^^ 
 
 DuUcrin to liriti.i, ( ■ol.nnl.ia Karly m S, . , '^ , ,,\V^ J. , ,,,,, tl,e ,.nnc:ii.al pornt ot .hH^- 
 port...l thatth. .uon.y cimvalent '•'."'^^" . \,7 jiyV 1 s (!»v.nnne..t nuj-U cxpec . through 
 
 --•• n .n i,npo,f ^ . Act .,a. -.U.n pa.se.l un.,..r ^SJiX*:;:;; .f^.i^^ile pi^eot 
 S t^^':X^^:i^^".l h£::;. r nnl;:S to llnll J. Comn^la ii far Lett. ti.an at any 
 
 p-^"T>*^"'R;.v..tin. then to the th,.. pon.t. V"'v;.'--j::-,,r;ilrt.!::is;r\rMS.n:K 
 
 particnlariy .n.nuhtun.lT notiee. I have the l.on ., t^ ;^^' "^ J ,„, ,, f„Uow« : 
 Il^n, n of cour^<^ lluive cons .Ite.l tully an.l y>!'''=^'V'\'>;?;!' ,!,' t to co.npleto without delay 
 ^•""". That it is the intention of the ^ ' '-^^^^^ ^ \ '^^My , which the Domin.on 
 those ,0 ions of the I'u-.tie Railway mkUm. « ^^ J^",, '^^1 e Sy < Ueate. an.l that .lirectn.ns were 
 GovonHnent has en«a«e,l to ^--f"^\^;^ "v Iv < l^ -o to I'ort Moo^ly; au.l t •. tins s«r- 
 ..n.e tin,e a,o given ^:;\^^-^]^^Z^:Z:I, he linishe,! in tin.e to be subnntted w.th the 
 ::i^.:X'::f ;"ri;fr ('a'^luu; ra,.Hapnt -^t it. n^xt^---^,.,,^, ,, „„,, , ,,,.. ,„,. of ran. 
 (2.) A proposal has been made o he ^ •^;^,_^^;''t,, hereafter in.prove so as to nmko 
 way frL Nanaiml. to Ks,,uin.alt, 7'"<;V'"1. ^^Mr. Stephen has informed Sir .)..hn A^ 
 
 TcMpntl in all resp.ets to th. n>a,n and ; -^ '• 1^^^' ^ ' [x favorably. If the ^y" '^f « 
 
 Mae.lonald that the Syndicate ,s dispose, to ^,^ t H P I ^^,,^ ,,^^ ,,een """■"'."'I f. f* 
 
 should, h.,wev..r, nut un.lcrlaK.- t.. n.ako ^ '^^ '^^ 'J ^^^^^^^^^^^^^^^ i„l„„, resist an appbcat.on that 
 
 tie i).m>inion (lovernnient eann.^, "', ^! j^'' ! ,^ ; ^^'^^ the llrlianu nt of Cana.U tor the roa- 
 n,ay be n.a.le by tlu- < l..vernn.ent of b sh ' '-^ Ks-punmlt an.l Nananno Kadw y. 
 
 torati.-n ..f the lan.l- n..w reserve, o„ the II'"''., , \,,,tion of the Nananno llaiNV ay 18 
 Cn Sir .l,.l.n A. Mac.l..nahl mtnnat.M tlu t u c i ^j^.^^. ^^, j5,.,^^^(. (^^i. 
 
 finally .ipo.e,l of, the I)o,ninion <'7->-"V'7'S^y; ' h A'Ten.^ of Union in the noncomple- 
 nSL.n?ln,snbje,.toftheallc,e,lln....ehl,y^ ,he result of .ho nego- 
 
 Si:: S^Kin-ndiri^^l-t fo^^ --'^--'- 
 
 v4 . 
 
 to 
 
 id 
 
 ;-i 
 
v4 . 
 
 76 
 
 ion that : ,. , .. ii.,i,t li,,,' (.f Hailwiiy from Nuimimo to Km|Himalt. 
 
 (1.) Tl.oco.mtnu:ti»iiofali«l.t >'y H'^^^^y^ 
 k Thuoxtw.sionNvitlumtcli'liO'..ltl>. ' '' - , ,. ,,,,^ t„ oomi.lcto the 
 
 ,: The «vaut .j ---'">^'^ '^^i:^'' Z vZut^^n. of U..i.n, wouhl otlbr a fa.r 
 work « ithiii tho torn, of ten y< ai m, us h).ociIu..i .1. 
 LiH f..r n Hcttlo.nent of th. « l."U' M;|;-t;''"- , . „f H^i^i^H (V.lun.l.ia, that the l'r"V.ncc b« 
 
 U Th.^ rwiiu'Htot the ''•'c^''^'''^'^''/^ f ,Y ' ,,, ' n,,d Kxci.se until "tliniUKh cm nnu- 
 pern.it el to reuulate a.ul eoUeot *-'«" ^-n ;' J, , ' -f,,.^'^ , ,, u,e Kant, rn ITovinc^" .M" 
 
 b::rs'i:^^:^.t:X-i::^'S::. I ...., ---■^ »«■ ■•■ " -' ;: ■* 
 
 THE MARQUIS t)V LOKNK. 
 
 (Sifjne.ll KIMKEKLY. 
 
 ROBKHT G. W. HKKliKUT Es(J. 
 
 r.uier Secretary of State, Colonial Office. 
 London, Ai(iist27, 1S81. 
 
 s„. 1 have the houor t;^> -'7-;r;|^,f :;.:^:T:i;!;;l^T^iI"wif ^' V'*^'^ 
 
 closing to ,ne a eo,,V of n ..spatch o *'« -^ . . te i ^ ^^^^ ^^^^^^^^^ ,^^ ,^ ,,„ f, et 
 
 iir!; ou!:^t^;;:^;St;::.''':v::w;^ i:: u::^;-^^-.^ .etit of the ......at.ve A...h.> oc 
 
 bii 111)- 'iw >'■ -■'- I i \ 
 
 British Colun.biajo the Quee,..^ ^ ^^^^^^^^^ ^^^ ^^.^ , ^^^.^,^, .^, ,„^, j,,^,,,^. 
 
 on liehalf of the I'rovince, 
 
 I shall he ,la.l, if y...> ^'H ''":'' Z^r^^^'^T^^X'lli^nlZd ti-at 1 nineerc^y tr,.st tluvt 
 
 for his very rareful an.l tavoral.h. Tl , e^ , on v th.' Do.uinion (iovenm.cnt an.l I a,l a- 
 
 Z eoncluL.us „pon tl.e Hul.jec|t w.H - -^Iv'a "uo-'ver Het at re.t the lon« stan,hug .h.- 
 
 n.ent without un.lu. delay, ='"',^^.'r,;'^;i,; ,^4.ee^^^ the Canaaiau I'acilie lta.lv. ay. 
 
 I have the honor to he, Kir, 
 
 Your most obedient sirvant, 
 A. T)E COSMOS. 
 
 n.ent witliout unou.: ueuvj,, '"■ • 7 
 pute between the Province an.l I anj 
 
 ;''i 
 
fA