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Mackenzie to yourelf, a copy of which is printed amongst the papers laid before the Dominion Parliament, respecting the non- fulfilment of the Terms of Union, and to request you will inform the Committee of Council if the letter in question ever reached Your Excellency. This request is made because the Committee has always understood that Mr. Edgar never presented you with any credentials other than letters from the Governor-General of Canada, which were marked " private and confidential." I have &c., (Signed) John Ash. Hii Excellency Jjieutenanl' Governor Trutch, &c., (fee, HmRn^ ^1 4 \ m.: REPORT / On the subject of the mission of the Honorable Mr. "Walkem, Special Agent and Delegate of the Province of British Columbia to England, with regard to the non-fulfilment by Canada of the Railway Agreement of the Terms of Union. By Command. Proiincial Sicretmi/' s Office, S(h March, 1875. JOHN" ASK, Provincial Secretary. .'* To His Excellency the Honorable Joseph William Tbutch, Lieutenant-Governor of British Columbia, ^c, jj-c, jf-c. May it plkase Your Excellency: — I have the onor to report that, in pursuance of your instructions to me to proceed to England as the Delegate of your Government, there to present to Her Majesty's Government, a Petition from your Executive Council complaining of the breach by the Donunion of the Railway Clause of the Tenus of Union, and to advocate the cause of the Province, as set forth in such Petition, I left Victoria for Ottawa on the 16th day of June, 1874, and arrived at the latter City on the 29th of the same month. Upon the following day, I made a personal application to the Secretary of State for the Order in Council necessary to place me in official com- munication with Her Majesty's Principal Secretary of State for the Colonies. I learned that owing to the absence from town of His Excellency the Governor- General, some delay in providing me with it would unavoidably occur. On the 4th of July, I addressed Mr. Mackenzie upon the same subject, and, in reply, received his assurance that a special messenger had been dispatched to procure His Excellency's signature to the Order, and that upon his return, it would be handed to me (Nos. 6 & 7.) In answer to my further letter of the 11th, the Order was sent to me, and after its receipt, I proceeded to England by the first Steamer which left (Juebec. On the evening of the 2Tth of •) uly, I arrived in London, and on the 28th reported the fact to the Colonial Office, and requested the flavor of an interview with Lord Carnarvon (No. 12.) In reply I was informed that His Loi'dship would grant me an audience on Friday, the 31st July (No. 13), and on that day I accordingly waited upon His Lordship and i)resented the Petition (No. 5) which accompames this Report. At a long interview which immediately tbilowed, a full statement of the case of the Province was made by me, and His Lordship was good enough to state that if any fuithor information was required by him, I should be notified to that effect. My next interview took j>lace with the Under Secretary of State, on the 6th of August, in deference to his wishes, and several matters connected with the petition were then fully discussed. I may here state that the remarks and arguments ofiered by me on both these oecastons, as well as at alF subsequent interviews upon the same subject, are eo fully given in substance in a letter which I addressed to Lord ^^-i^'.-:-: ,-^£'iii<^^£ \ Minsion of Hon. Mr. Walkein. 1874 Carnarvon on the Slat of October (No. 21), that I think it unnecessary hero to restate them ; indeed their repetition would only tend without advantage to burden this report. I may add, however, what has been inadvertently omitted from this letter, that at my first interview I respectfully urged that compensation should, as a matter of equity, bo given l>y the Dominion to the Province, for the very serious loss that the latter had unquestionably sustained by the course which had been pursued by Canada; though, ni a strictly legal point of view, damages in such cases were, as I observed, treated as consequential, or, professionally speaking, as too remote to bo computed or allowed. It may licre be convenient to allude to the very finendly ofter of Lord Carnar- von to act, under certain conditions, a*i arbitrator between the Dominion and Provin- cial Governments (Xo. 14). Mr. Sproat first informed me in Augiist of the offer, and of its acceptance by the Provincial Government. I heard notbing more of the matter officially, and arbitration was not resorted to. On the 16th of August I received, from the Colonial Office, a written acknow- ledgment (No. 18) of the receipt of the Petition, and also an intimation to the effect that Lord Carnarvon considered that he had the Provincial case fully before him, but that he did not anticipate that he would be able, before the lapse of two or three weeks, to decide upon the course he should pursue. At the end of that time I called at the Colonial Office and was told that his Lordship and the Under Secretary of State were absent from town. Hy the advice of the Acting Under Secretary, I wrote the annexed letter of the 10th of September (No. 19), to which I received a reply on the 14th, stating in eft'ect that no conclusion had been arrived at in the matter (No. 20). During September and October some further interviews took place, at the last of which I stated that before the case Avas closed, I desired, as a matter of record, tc put in a letter expressive of the views and opinions which I had held, and of the argument«i which, from time to time, I had advanced at the several hearings which had been gmnted to me. This letter is that of the 31st of October (No. 21), to which I have already invited your Excellency's attention. Oil the 13th of November a final interview was at my instance afforded me. I referred to the various points set forth in my last letter. Lord Carnarvon thereujx)n infoimed mo that in a few days he would state his views upon the whole question in wi'iting, and forwai'd the despatch on the subject to Lord Duflerin for the infor- mation of both Goverinuents. At my special request, he was good enough to say that a copy would be sent to ine. This copy, with its covering letter from Mr. Herbert, was received by mo on the 18th of November. On the following day I saw him at the Colonial Office, and understood from him that the official despatches would reach your Excellency through the usual channel. I delayed my departure from England in the hope of securing further aid from the Imperial Government for the construction of the Esquimalt Graving Dock. My negotiations in this direction were, I am happy to siiy, successful, and will form the subject of a separate report, On the 17th day of December I sailed from England, and reached Ottawa in the beginning of January. I had conversations at dift'erent times with Mr. Mac- kenzie, upon the Railway and other Provincial business; and with a view of afford- ing your Government immediate information upon some of these matters, I asked for, and obtained Mr. Mackenzie's authority, to state the substance of one of these conversations respecting the Railway and the Alaska Boundary. This I have done in my telegram of the 13th of January last, addressed to the Provincial Secretary. (No. 24) A copy of this message was, on the same day, handed by me to Mr. Mackenzie for his private information. About a week afterwards I learned that your Government had not received the official despatches embodying Lord Car- narvon's conclusions upon the Railway question, and upon enquiry at the Secretary of State's Office, I found that they had not been sent. I therefore requested Mr. Scott, the Secretary of State, by letter of Saturday the 23rd of January, to forward 88 Vic. Mission of Hon, Mr. Wdkem. them by Monday's muil to Victoria (No. 25). On Monday I failed to see him when I calle(l at his office. The next day I was more fortunate, and he was good enough to assure me that no further delay would occur in their transmission. I shortly aftenvards left Ottawa, and reached Victoria on the 18th of last month. Within the last week the several tclciyrunis (Nos. 26, 2", 28, 29, 80), which are appended hereto, have been HOiit and received upon the subject of the non-arrival of these despatches. The telegram from Lord Carnarvon is especially valuable as con- taining the only official intimation yet received that the Dominion Goveniment has consented to adopt and tbllow the reconuuendutions offered by his Lordship in his despatch of the 17th of last November. Before closing this Report it will, no doubt, be as gratifying to Your Excel- lency to learn, as it is pleusmg to me to state, that I received from Lord Carnanron and from the Under Secretary of State tor the Colonies a full and patient hearing ; and every opj)ortunity of j)lacing the case of British Columbia in its true ligh#«nd in all its beanugs before hiri Lordship was cordially afforded me. I must also acknowledge, whicn I do with much pleasure, the able services rendered by Mr. Sproat, the A^enf^General of the Province, who upon the railway and all other questions evinced untiring zeal in advancing the interests of Britisn Columbia. It is worthy of record, that apart from the immediate result of the appeal to England, the Province attracted much attention from the prominence given to the object off my mission. Applications, greatly outnumbering those of any former year, or even number of years, were made at the office of the Agent>General during my stay in London, for full information respecting British Columbia, and its suitability as a home for intending settlers. The interest thus awakened in Eng- land has also been extended, in a considerable degree, to the Eastern Provinces; and I can state, from a reference to Mr. Bproat's books, that a number of immi- gmnts, many of whom are in Ciisy circumstances, will arrive here within the nex t few months. I may be pardoned tor adding that my mission differed but little — if at all — from missions of a similar character. It was not unattended with difficultjes, as your Excellency can imagine ; nor was my position one of freedom from labor and anxiety in the eflbrt to discharge my duty towards the Province. Questions of a complex and intricate nature were, upon the reference to England of the issues between the two Governments, directly involved in the appeal itself. Further com- plications on my part would not only have been dangerous but mischievous. I therefore, during my several interviews in England and at Ottawa, not only refi-aincd from causing irritation between the Dominion and its Province, but endeavored on all occasions to allay it wherever circumstances pointed to its existence. As your Excellency will observe from my last letter to Lord Carnarvon, I labored — I hope not in vain — to convince Eastern Canada that British Columbia, in the advocacy of her rights, only sought to obtain a reasonable measure of justice without unduly pressing ujx)!! the resom-ces of the Dominion, of which she forms a part. Happily, the grave differences which at one time thi-eatened to create a serious breach between the Dominion and her Western Province are now matters ot the past. For my own part, 1 trust that I may hereafter have cause to look back with satisfaction upon the settlement which has just been effected, and to reflect with sincere pleasiu-e that under your Excellency's direct' ous it fell to my lot in 1874 to bo instrumental in promoting the weltiire and advancement of the people of British Columbia. I have the honor to be Your Excellency's most obedient servant, Geo. a. Walkbm. Attomey-Gcneral's Office, m March, 1876. Miii^toii of J ton. Mr. Wulkon. 1874 88 k . CORRESPONDENCE AND PAPERS CONNECTED WITH MR, WALKEM'S MTSfiTON TO ENGLAND. No. 1. No. 40. The LieutciMnt-iroKcrnor to llic Hccrdary of iiiak for Canada. ^ . Govkr.nmentJIou.sk, lltU June, 1874. •BiBj — I Jiavo the lienor to cucIoho tbv the consideration of His Excellency the Govcrnor-Gunoral, a Minute of tho Executive Council oftluH Province, representing that British Columbia is suffering groat in.jury from the failure by f'anada to carry out the obligations of the 11th Claua6of the Terms of Union, ami that it is advisable, . in tlie interests of this Province, that the case be laid before the Imperial Govern- ment, by means of a Memorial to be [)resented to the Secretary of State for tho Colonies' by the Attorney-General of British Columbia, as Special Agent and Delegate of this Government. In accordance with the advice of my Ministers, I have apixjinted the Honorable (ieorge A ithony Walkem, Attorney -General of this Province, to be such Special Agent and elegate; and at their request I beg you to inform Hif. Excellency the Governor-(:leneraI, that Mr. Walkem has been duly ajv }K>inted as such Special Agent and Delegate, and to move His Excellency to acauaint the Right Honorable Her Majesty's Principal Secretary of State for the Colonies that Mr. Walkem has been authorised and instructed to place in his hands tho Memorial of this Government appealing to Her Majesty, and to supiwrt the l»ra3'er thereof. \h'. Walkem will proceed to Ottawa by the next Mail, and will take with him a duplicate of this Despatch. I have &c., (Signed) .loPEPii W. Trvtcii. No. 2. Copy of a Jteport of a Conunidce of the IFonorable Kcecuticc Cvuncilf approved by His Excellency the Limtenant-Goccrnor o» the 11th day of June, 1874. The Comhiitteo of Council have had under consideration the Memorandum of the Honorable Provincial Sec-etary, dated 11th June, 1874, representing that the essential clause of the Terms of Union provided that the Government of the Dominion should secure "the commencement simultaneously 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 British Columbia with the Railway system of Canada; and, " further, to secure the completicn of such Railway within ten years from the date "of Union." That the set time for commencement of the work passed nearly a year ago; and that no commencement of construction has yet been made. That the Secretary of State of tho Dominion has informed this Government that no commencement can be made this year, in consequence of tho surveys being incomplete. That, by order of the Privy Council of Canada, it was decided last year that a portion of the line be located between tho Harbour of Esquimalt and Seymour j)i|iiy'iiwjrjjjiiij>it.. 1874 88 Vii MlntiioH of Jhn. Mi\ WkILdi. MR. lue, 1874. ciellcncy the •eprcHeiiting 111 to carry 8 advisable, lial Govern- State for tlio Agent and Ministers, I oral of this beg you to sen duly ajv :cellency to itate for the in his hands supiioil; the RUTCir. oved by Mis i. ►randum of ig that the ent of the )n8truction such point to connect lada; and, lu the date . year ago ; Dvernment vcys being ►'ear that a Seymour :e witli lam I Narrows; and, that in consomienco of that order, and at the request of the Dominion Government, the lands for a width of twenty miles along that lino have been reserved by the Provincial Government. That the Premier of the Dominion Government has, in an informal manner, but nevertheless in a manner acknowledged to be at the instance of the Dominion Government, offered immediately to undertake the commencement of the work, provided that British Columbia would agreo to certain Terms of relaxation. That the relaxation proposed was, that British Columbia should agree to cancel the Railway Clause of the Terms, as regards the inoiuland part of the Province, and accept in lieu thereof a promise to build a waggon ' 'ad after the line of Rail- way had been permanently located, on tho completion of which, at an undefined time, railway construction would bo coramcsnced. That such proposal has, however, been withd. \vn. That, according to the preamble of tho "Cai iiian Pacific lisiilway Act, 1874," tfie railv"^y is to be constructed as rapidly as tho same ciui bo accomplishe^gjifith- out raising the rate of taxation. That the bearing of tho Dominion Govemmeni towards British Columbia is equivalent to the repudiation of the I'.ability of the Dominion to fulfil as far m jiossible the engagement made respecting tho construction of the I'acific Railway.' That, by the course of action taken by tho Dominion Govcvimient, British Columbia, has sustained and is suflcriug groat injury and loss. That with a view to obtain redress, it is advisable that tho case of British Co- lumbia be submitted for tho consideration of the Imperial (Jovernment. The Committee concur with the recommendation, and advise that your Excel- lency do charge the Honorable tho Attorney-General and the Provincial Secretary with the preparation of a memorial and remonstrance on behalf of tho Province, re- garding tixe non-fulfilmenfc of the Terms of Union by the J)ominion Government, to be submitted to Her Most Excellent Majesty the Queen in Council. The Committee further advise, should this Report bo approved, that the Honorable George Anthony Walkem be appointed a Special Agent and Delegate, instructed to proceed at once to London, for the purpose of placing the Memorial in the hands ot the Right Honorable the Secretary of State for the Colonics, and of supporting the prayer thereof; and request Your Excellency to inform the Governor-General of Mr. Walkem's appointment, and ask that he be provided with a suitable introduction to Her Majesty's Principal Secretary of State for tho Colonies. (Certified) W. J. Armsironu, Clerk, Executive Council. No. 8. Oopi/ofa Report of the Honorabl'. the Executive Council, approved by His Excellency the Lieutenant- t,cvernorf on tlie 11th June, 1874 On a Memorandum dated 11th June, 1874, from the Honorable the Provincial Secretary, reporting with reference to the breach of the Terms of Union by the Dominion Government, and the Appeal to the Imperial Government thereon arising, that it is advisable that a telegram lie sent to the Imperial Government, informing them that British Columbia is about to appeal against the breach, by the Dominion Government, of the Terms of Union, and that a Delegate fi-om this Government is about to leave for London, to lay such Appeal before the Imperial Government. The Committee concur, and advise that Your Excellency do telegraph to that effect to the Right Honorable the Secretaiy of State for the Colonies, and also through the proper channel to His Excellency the Governor-General, for the infoi-m- ation of the Dominion Government. (Certified) W. J. Abmstrong, Clerk Executive Omncil. 6 Mission of Hon. Mr. Walkeni. 1874 rv t i Lieutenant-Governor Tnitch to the Earl of Carnarvon. GOVBENMENT HoUSK, VICTORIA, 11th Juue, 1874. Mt Lord, — I have the honor to state that I have, at the instance of my respon- sible advisers, address*"' to your Lordship a telegraphic despatch to the following effect: — **Cohiial Secretary t London, 11th June, — " Ministry desire notify you that Delegate proceeds immediately Loudon, pre- "sent appeal British C!oliimbia against breach by Canada Railway Terms Union." I have, &c., (Signed) Josrph W. Trutch. •"^ Telegram. The Lieutenant-Governor to the Honorable the Secretary of State, Ottaica, Canada. . ; Victoria, B. C, Jime 11th, 1874. My Ministers desire me to acquaint Dominion Government that they have resolved to appeal to Imperial Governmeiit upon Railway question, and that I have to^y, upon tneir advice, addressed the Secretary of State for Colonies following Telegram: — " Comial Secretary, London, — " Ministry desire notify yoi; that Delegate proceeds immediately London, pre- "sent Appeal British Columbia against breach by Canada Railway Terms Union. (Signed) Joseph W. Trutch, Lieulenani-Govenior. The Lieutenant-Governor to the Secretary of State for Canada. Government Hcuse, Victoria, 11th June, 1874. Sir, — I have the honor to enclose with reference to my telegraphic despatch to you of this day's date, the Minute of my Executive Council, in accordance with the advice contained in which my said despatch, and that to the Right Honorable the Secretary of State for the Col'^nies, a transcript of which was therein reported for the information of His Excellency the Governor-General, were addressed. I have, &c., (Signed) Joseph W. Trutch. The Lieutenant-Governor to the Secretary of State for Canada. Government House, Victoria, 11th June, 1874. Sib,— I have the honor to enclose, tor the information of His Excellency the Gtovemor-Qeneral, a copy of a despatch this day addressed by me to the Right HoDorable the Secretary of State for the Colonies, with reference to my telegram to His Lordihip of this day's date, a transcript of which has already been telegraphed to you. I have, Stc, (Signed) .Tosmph W. Trutch. 1874 88 Vic. Mission of Hm\. Mr. Walkem. 874. my respon- J following mdon, pre- as Union." RUTCn. No. 4. • Copy of a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor on the 15th day of June, 1874. On a memorandum, dated 15th day of June, 1874, from the Honorable the Provincial Secretary, recommending that the Memorial hereunto appended of the case of British Columbia be adopted, and presented to the Right Honorable the Secretary of State for the Colonies by the Honorable Mr. Walkem, on behalf of the Committee of Council of British Columbia. The Committee advise that the recommendation bo approved. (Certified) "W. J. Akmstrong, Clerk, Executive Council, , Canada. , 1874. they have ;hat I have s following ondon, pre- rms Union. cr^ior. 874. e despatch dance with Honorable n reported sed. i. m. llency the the Right elegram to ilegraphed No. 6. ' -^ :'' ' .■i(' PetUion of the Provincial Government to Her Majesty the Queen {as contained in the separate paper herevnth). No. 6. :- "" The Honwabk Mr. Walkem to the Honorable Mr. Mackenzie. Ottawa, July 4th, 1874. . Sir, — I have been infoniied that you intend to leave for Quebec to-day. If this be the case, may I be excused for pressing upon your attention my present very unsatisiactory position in having received no definite infoi-mation respecting my credentials to the Right Honorable the Principal Secretary of State. It is considered of great importance by the Government of British Columbia that I should use all possible dispatch in executing my mission to England. May I therefore request you to inform me when I shall be put in possession of the necessary authority to enable me to accomplish my task ? I have, &c., (Signed.) Geo. a. Walkem. No. 7. Mr. Buckingham to the Honorable Mr, Walkem, Ottawa, July 4th, 1874. Sir, — In reply to your letter to Mr. Mackenzie, of this morning's date, enquir- ing when you can procure your credentials as Delegate of British Columbia to the Imperial Government, I have the honor, by request of Mr. Mackenzie, to say that the necessary Minute of Council has already been forwarded to His Excellency the Governor-General for His Excellency's signature, and that it will be delivered to you immediately the special messenger retiu-ns with it to the City. I have, &c., (Signed) Wm. Buokinqham. 1 > 8 Mission of Hon. Mr. yydkeni. 1874 No. 8. The Honorable Mr. Walkm to the Secretary of State for Canada. Ottawa, July 11th, 1874. Sib,— Aa Mr. Himsworth has arrived from Tadousac, I have the honor to request you to furnish me to-day, if possible, with the documentary authority necessary to accredit me as Delegate from the Government of British Columbia to Her Majesty's Government. The object of my mission has already been stated in a despatch of last June, from the Government of British Columbia to the Dominion Government. , , , . It is of importance that I should leave for England, and bnng m^ work to a close with all convenient speed, hence my request that you will provide me with my letter to-day. I have, &c., (Signed) Geo. A. Walkbm, The Secretary of State to Mr. Walkcn. Departbibnt of the Secretary op State, Ottawa, 11th July, 1874. I have the honor to transmit to you a certified copy of an Order of His Excel- lency the Governor-General in Council, on a despatch of His Excellency the Lieutenant-Governor of British Columbia, under date the 11th ultimo, relative to the alleged failure by the Government of the Dominion to caiTy out the obligations of the flth Clause of the Terms of Union. In reference to the request of the Lieutenant-Governor, that the Right Honorable the Secretarjr of State oe informed that you have been authorised by the Government of British Columbia as their Special Agent and Delegate, to submit their memorial appealing to Her Majesty, and to support the prayer thereof. I have to state that a despatch to that effect will be addressed by the Govenior-General to the Earl of Carnarvon. I have, &c., (Signed) R. W. Scott. No. 9. Copy of a Jicport of a Committee of the Honorable the Privy Council, approved by His ExceUmcy the Governor- General in Council, on the Sth July, 1874. On a despatch, dated 11th June, 1874, from the Lieutenant-Governor of British Columbia, enclosing a Minute of the Executive Council of that Province, represent- ing that British Columbia is suffering great injury from the failure by Canada to carry out the obligations of the Eleventh Clause of the Terms of Union; and that it is advisable, in the interests of that Province, that the case be laid before the Imperial Government, by means of a Memorial to be presented to the Secretary of State for the Colonies by the Attorney-General of British Columbia, as Special Agent and Delegate of that Government. The Lieutenant-Governor states that, in accordance with the advice of hia Ministers, he has appointed the Honorable George Anthony Walkem, Attorney- General of that Province, to be such Special Agent and Delegate, and at their request he begs that Your Excellency be informed that Mr. Walkem has been duly appointed as such Special Agent and Delegate, and that Your Excellency be moved to acquaint the Rignt Honorable, Her Majesty's Principal Secretaiy of State for the Colonies, that Mr. Walkem has been authorized and instructed to place in his hands the Memor: A of that Government, appealing to Her Majesty, and to BupiK)it the prayer thereof> On the recommendation of the Houomble the Secretary of State, the Commit- tee advise that the above request be acceded to. (Certified) W. A, Himsworth, Qerk Privy Cowncil. 38 Vic. Mission of Bon. Mr. Walkem. 9 7'he Lieutenant-Governor to the Secretary of State for Canada. GoVERNMKNT IIoUSB, ViCTORU, 28th July, 1874. Sir, — I have the honor to state that I have received and laid before my Executive Council, your despatch of the 13th inst, transmitting a copy of an Order of His Excellency the Governor-General in Council, and of a letter to Mr. Attorney- General Walkem on the subject of Mr. Walkem's Mission to England in support of the memorial of this Government to Her Majesty, with reference to the Railway Article of the Terms of Union of this Province with Canada. I have, &c., (Signed) Joseph W. Trutch. No. 10. The Honorable Mr, Walkem to the Honorable Mr. Mackenzie. Ottawa, July 13th, 1874. Sir, — I have the honor to forward to you, for your perusal and for the informa- tion of your Government, two copies of the Protest of the British Columbia Govern- ment (against the breach or infraction of the "Terms of Union" with Canada by the Dominion Government), which I have been authorised to present in person to Her Majesty's Govei'nment. Two copies of the Charta referred to in the Protest are also herewith forwarded. May I request you to be good enough to acknowledge their receipt. I have, etc., (Signed) Geo. A. "Walkem, Attorney-General, B. (J. , '■ No. 11. The Under Secretary of State to tht Honorable Mr. Walkem. Department op the Secretary of State, Ottawa, 13th July, 1S74. Sir,— I am directed to acknowledge the receipt of your letter of this date, addressed to the Honorable Mr. Mackenzie, transmitting two copies of the Protest of the British Columbia Government against the alleged breach or infi-action of the Terms of Union with Canada, by the Dominion Government, which you have been authorized to present in person to Her Majesty's Government; and also forwarding two copies of the Charts referred to in the Protest. I have, &c., (Signed) Edouard J. Langbvin. No. 12. The Honorable Mr. Walkem to the Might Honorable the Secretary of State for the dolonies, London, July 28th, 1874. My Lord,— 1 have the honor to inform Your Lordship of my arrival last eveuirw in London. ae object of my mission, as a Delegate from the Government of the Province of British Columbia to Her Majesty's Government, has, so I have been informed, already been fully explained to Your Lordship. It therefore only remains for me to request Your Lordship to honor me with a personal interview at the earliest hour which may prove convenient. I have, &c., (Signed) Geo. A. Walkem. 10 Mission of Hon. Mr. Walkem. 1874 if No. 13. Mr. Meade to the Honorable Mr. Walkem. Downing Street, 29th July, 1874. Sir, — In reply to your letter of the 28th instant, I am directed by the Earl of Carnarvon to intorm you that he will be happy to see you at this Office at 3.30 p.m., on Friday next, the Slst instant. I am, &c., (Signed) B. H. Meade. No. 14. ' The Qovemor-Oeneral to the Lieutenant-Governor' of British Columbia. [Received 27th July, 1874.] July 8rd, 1874. Sir, — In obedience to the instructions of the Secretary of State, I have the honor to transmit, for your information, the enclosed Despatch. I have, &c., (Signed) Duffbrin. . The Earl of Carnarvon to the Qovemor-Qeneral. Downing Street, 18th June, 1874. Mt Lord, — The intimation, which I have received by telegraph, of the depar lure from British Columbia of the President of the Council and Attorney-General of that Province, sent to this country for the purpose of appealing against the course proposed by your Government, and sanctioned by the Dominion Parliament, in regard to the Pacific Railway, together with the Reports of the Proceedings in that Parliament, and other informal communications, have led me to apprehend that the difference of opinion which has unfortunately occurred may not onfy prove difficult to adjust, but may not impossibly, if it remains long unsettled, give rise to feelings of dissatis&ction and to disagreements, the existence of which within the Dominion would be a matter of senous regret. 2. It is not my wish, nor is it a part of my ordinary duty, to interfere in th eae questions. They appear to be such as it should be within the province and the competency of the Dominion Government and Legislature to bring to a satisfactory solution ; and you will readily understand that Her Majesty's Government would be very reluctant to take any action which might be construed as expressing a doubt of the Dominion Government and Parliament to give the fullest consider^ ation to such representations as may be made on the part of British Columbia, and to deal in the fairest and most liberal spirit with what may be established as being the just claims of that Province. 8. At the same time I am strongly impressed with the importance of neglect- ing no means that can properly be adopted for effecting the speedy and amicable settlement of a (question which cannot, without risk and obvious disadvantages to all parties, remain the subject of prolong! d, and it may be acrimonious, discussions; and it has occurred to me that, as in the original terms and conditions of the admis- Bion of British Columbia into the union, certain points (as for example the amount of land to be appropriated for the Indians, and the pensions to be assigned to pabUo officers deprived of employment) were reserved for the decision of the 88 Via. Mission of Hon. Mr. Walktm, 11 Secretarv of State; so in the present case it may possibly be acceptable to both parties that I should tender my good offices in determining the new points which have presented themselves for settlement. I accordingly addressed a telegram to you yesterday to the effijct that I greatly regretted that a difference should exist between the Dominion and the Province in regard to the railway, and that if both Governments should unite in desiring to refer to my arbitration all matters in con- troversy, binding themselves to accept such decision as I may tlunk Mr and just, I would not decline to undertake this service. 4. The duty which under a sense of the importance of interests concerned, I have thus offered to discharge, is of course a responsible and difficult one which I could not assume unless by the desire of both parties, nor unless it should be fully agreed that my decision whatever it may be shall be accepted without any question or demur. If it is desired that I should act in this matter, it will be convenient for each party to prepare a statement to be communicated to the other party, and after a reasonable interval a counter statement, and that on these written documents I should, reserving of com-se to myself the power of calling for any other information to guide me in arriving at my conclusion, give my final decision. 5. I request you to transmit a copy of this despatch with the utmost possible speed to the Lieutenant-Governor of British Columoia; I have communicated to Mr. Sproat, the agent for British Columbia, for transmission by telegraph to the Govern- ment of that Province the purport of the telegram which I addressed to you yesterday, in order that my ofter may come before both parties as soon as possiolo. I have, etc., (Signed) Carnarvon. No. 15. Copy of a lieport of a Committee of the Honorable the Executive Council approved Iry His Excellency the Lieutenant- Qovemo)', m the 5th Augfuaty 1874. The Committee of Council have had under consideration, the proposal for a reference to arbitration, of the question between the Province and the Dominion Government, respecting the fulfilment of the Terms of Union, contained in the Despatch dated 18th June, 1874, from the Right Honorable the Earl ot Carnarvon, Her Majesty's Principal Secretary of State for the Colonies to His Excellency the Governor-General, a copy of which has been transmitted for the information of your Excellency, and referred to them for report: — Li the Despatch the Secretary of State observes that he is " strongly impressed " with the impoitance of neglecting no means that can properly be adopted for " effecting the speedy and amicable settlement of a question, which cannot without "risk and obvious disadvantage to all parties, remain the subject of prolonged, and "it may be acrimonious discussion." That it has occurred to him, " that as in the original terms and conditions of " the admission of British Columbia into the Union, certain points were reserved " for the decision of the Secretary of State, so in the present case it may possibly " be acceptable to both parties that he should tender his good offices in determining " the new points which had presented themselves for settlement. That if both " Governments should unite in desiring to refer to his arbitration all matters in con- "troversy, binding themselves to accept such decision as he may think fair and just " he would not decline to undertake this service." ' That the duty, which uuder a sense of the importance of the interests concern- ed, he has thus offered to discharge, is of course a responsible and difficult one which he could not assume unless by the desire of both parties, nor unless it should be Ailly agreed that his deoisioQ, whatever it may be, shall be accepted without any question or demur. 12 Mission of Hon. Mr. Walkem. 1874 The Committee concur with the Secretaiy of State in regretting that a differ- ence exists between the Dominion and this Province in regard to the Railway, and that it is most desirable for all parties, that all the questions in controversy should receive a speedy and amicable settlement, and they are of opinion that a reference to arbitration is the course of all others most likely to lead to so desirable a result. They therefore advise the cordial acceptance by your Excellency of the arbitra- tion of the Secretary of State, in accordance Avith the conditions laid down in His Lordship's Despatch oi the 18th June, 1874; and should this report be approved, they recommend that the acceptance by this Government on oehalf of British Columbia of the arbitration of the Right Honorable the Secretary of State for the Colonies, be immediately communicated by Your Excellency to that Minister by telegraph and by mail, that copies of such communications be transmitted simultaneouslv to the Secretary of State for Canada tor the information of His Ex- cellency the Governor-General. (Certified) W. J. Armstrong, . V Clerk Executive Council. - San Francisco, 18th June, 1874. His Excellency Lieutenant-Governor Trutch, Province of British Columbia,Victoria. Dkab Sir, — We have just received the following cable message from London : "London, « 18th June. " Private and confidential. Advise Governor Trutch, Vancouver, by letter, " Sproat says Carnarvon offers to arbitrate between Dominion and Province, both "parties concurring. Sproat strongly recommends this;" which message you will no doubt understand. We are, &c., (Signed) Faulkner, Bell & Co. I British Columbia. Lieutenant-Governor's Office, June 26th, 1874. Gentlemen, — I am directed by the Lieutenant-Governor to acknowledge the receipt of your letter to him, of the 18th instant, and to thank you for the inform- ation it conveys, which is fully understood by His Honor. I have, &c., (Signed) Arthur G. J. Pindbr, Private Secretary. Messrs. Faulkner ^ Bell ^ Co., San Francisco,, California. No. 16a. Lieutenant-Governor Trutch to Governor-General. Government House, Victoria, 29th July, 1874. My Lord,— I have the honor to acknowledge the receipt, on the day before yesterday, of Your Lordship's despatch of the 8rd instant, transmiting, by direction of the Right Honorable the Secretary of State for the Colonies, for the information 38 Tic. Mission of Hon. Mr. Walkan. 18 of this Government, a cop} of a despatch from that Minister to Your Lordship pi-o- posing himself as arbitrator in tlie matter nuder discussion, between the Goveni- ment of Canada and this Province, in relation to the 11th Article of the Terms of Union of British Columbia with Canada. I have submitted Your Lordship's despatch and that from Lord Carnarvon to Your Lordship, therein transmitted, tor the consideration and advice of my Executive Council. I have, &c., (Signed) Joseph W. Trctch. Xo. 16b. 'I he Lieutenant-Governor to the Secretar>/ of State for Canada. Government House, Victoria, 3rd August, 1874. Sir, — I have the honor to transmit to you for the information of His Excellency the Governor-General, a copy of a despatch addressed by me to Her Majestv's Principal Secretary of State for the Colonies, expressing the acceptance by this Government of the oifer made by His Lordship in his despatch of 28th June last, to the Governor-General, to arbitrate in the difference existing between the Gov- ernment of Canada and this Province, in relation to the Railway Article of the Terms of Union, together with a copy of the Minute of the Executive Council of British Columbia therewith enclosed, expressing the opinions and advice of my responsible Ministers upon Lord Carnarvon's proftered arbitration, and in accord- ance with which my said despatch to His Lordship, and the telegraphic message therein referred to — and of which a copy is appended — as well as this communica- tion and the telegram to you of this day's date — a copy of which is also attached hereto — are at the same time despatched. I have, &c., (Signed) Joseph W. Trutch. No. 16c. Lieutenant-Governor IVutch to Earl Carnarvon. Government House, Victoria, Srd August, 1874. My Lord, — I have the honor to state that, on the 28th ultimo, I received and laid belbr my responsible advisers a copy of Your Lordship's despatch of June 18th, to Governor-General the Earl of Dufferin, upon the pending difference between this Province and the Government of Canada, in relation to the Railwav Article of the '•'erms of Union, which despatch was transmitted to me by Lord 1)ufferin, on the brd ultimo, in accordance with Your Lordship's instructions. I now enclose a Minute of the E:?ecutive Council of this Pro\'ince on your said despatch, and upon the advice of my Ministers therein expressed, I beg to signify my cordial acceptance, on behalf of the Government of British Columbia, of Your Lordships proftered arbitration, in accordance, in all respects, with the conditions laid down in your said despatch, and to state that I have to-day dispatched a tele- gi-aphic message to you to this eft'ect, of which a copy is appended. A copy ot this despatch and enclosures therewith, will be sent by this mail to the Secrotary of State for Canada, lor the information of His Excellency the Governor-General of Canada. I have, &c., (Signed) Joseph "VV. Truich. 1 I 14 Mission of Bon. Mr. Walkem. 1874 No. 17. Lieutenant-Governor to Her Majesty's Principal iSecretary of State for the Colonies, 3rd Aiieust, 1874. Upon advice of Responsiblo Ministers I accept on behalf of British Columbia arbitration oftered in your Despatch to Lord Dutferin, eighteenth June. Please acknowledge.' ,„ „ (Signed) Joseph W. Tbutch. Her Majesty's JMndpal Secretary of State for the Colonies to Lieutenant-Governor. Your Telegram of August 8rd, received. (Signed) Carnarvon. I Lieutenant-Governor to Secretary of Stale for Caiuuia. Victoria, B. C, August 3rd, 1874. My Ministers request me to state for the information oi the Governor-General that the following message has been this day telegmphed to Lord Carnarvon : — **Colonial Secretary, Londony — " Upon advice of Responsible Ministers, I accept on behalf of British Columbia "arbitration oftered in your despatch to Loi-d Dufterin, 18th June. Please acknow- " ledge." (Signed) Joseph W. Trutch, Lieutenant-Governor. No. 18. Mr. Herbert to the Honorable Mr. Walkem. Downing Street, 15th August, 1874. Sir, — I am directed by the Earl of Carnarvon to acknowledge the receipt of the Petition to the Queen, signed b^ yourself on behalf of the Executive Council of British Columbia, which you left with his Loi'dship, on the occasion of your recent interview with him at this Office. After careful perusal of this clearly drawn and temperately expressed state- ment, and after hearing the further representations which you have since made orally, his Lordship feels that he has before him a full exposition of the views ot the Provincial Government; and he desires me to thank you for the judicious manner in which you have discharged the duty entrusted to you. LokI Caniarvou will be much pleased if he can be the means of adjusting the diflerences which have arisen; but the subject abounds in details which require close examination; and his Lordship thinks it may be convenient to you to know that he does not anticipate that ho will be able, until after two or three weeks, to come to a decision as to the course which he should take. I am, &c., (Signed) Kouert G. W. Herbert. 88 Vk. Mission of Hon. Mr. Walkcm. 16 No. 19. I'he Honorable Mr. Walkem to the Rujht Honorable the Secretary of State for the Cblonies. London, 10th September, 1874. My Lord, — ^In a letter of the 15th of August last, acknowledging the receipt of the Petition to Her Majesty ot the Committee of the Executive Council of British Columbia, Your Lordship was pleased to inform me that you did "not anticip'te "that you would be able, until after two or three weeks, to come to a decifdon as "to the course which you should take" upon the subject matter of the Petition. As the time mentioned has now expired, may I request Your Lordship to be good enough to inform me of the conclusion (if any) which you may have arrived at. I have, &c., (Signed) Geo. A. Walkem. No. 20. Mr. Malcolm to the Honorable Mr. Walkem. Downing Street, 14th September, 1874. Sir, — I am directed by the Earl of Carnarvon to acknowledge the receipt of your letter of the 10th instant, and to express to you his regret uiat he is not at present in a position to communicate to you any decision, ia regard to the Petition of the Executive Council of British Columbia. I have, &c., (Signed) W. R. Malcolm. The Honorable Mr No. 21. Walliem to the Earl of Carnarvon. London, October, Slst, 1874. My Lord, — I now beg leave respectfully to offer, for yom* Lordship's con- sideration, a recapitulation and review of the main points of the question at issue between Canada and British Columbia, respecting the breach, by the former, of the Railway Agreement in the Terms of Union. Although I have been favoured by your Lordship with many and lengthened interviews on thin subject, I hope that the grave nature of the interests committed to my care, aw well as the impoitant influence which your Lordship's action at the Ijreseut timers sure to exercise upon the political and industrial growth of the Province, will be a sufficient excuse for again troubling you. A written communication of the kind proposed may also usefully serve to define more clearly some of the views, which I have advocated on behalf of the Province. Before proceeding further, I trust that I may be permitted to tender the expression of my grateful sense of the attention with which your Lordship has been pleased to receive, not only the statement of the case of British Columbia as set foith in the Petition of its Government, but also the comments upon it which I have from time to time made. The Iroviucial Government will be glad to learn — what your Lordship has been good enough to state — that you have been gratified >vith the temperate spirit 16 Mission of Jim. Mr. Walkern. 1874 Si )!' { » in which their case lian been presented tor the conHideration of Ilcr Mitjerty'R ations " necessary to remove it. It is to hasten the removal of this "temporary drawback," and to "force onwards," in the sense of the above desjmtch, these iiecessary operatioug. which have been lon^ deferred, that tlic Government of British Columbia liavdSBght the intervention of Ilor Majesty's (Jovenmient. The streni^th of the above jtvo^tositions, viewed in connection with the general confederation policy, was fully recognized by tlie then Government of the Dominion. They agreed with Her Majesty's Government, that without " easy communication " and "internal transit" between Ottawa and Victoria, tVie union of British Columbia and Canada could not be ett'ective. Afterwards, when the whole matter was jn'actically studied >.y the (Government of the Dominion, it seems to have been their decided opinion that "easy communication" across the Continent could mean nothing less than a railway ; and that, with respect to British Colombia, the "temporary drawback on the advantages" of Confederation, mentioned by Her Majesty's Government, should not be allowed to last for more than ten years from the date of Union. Hence the Dominion luidci-took " to secure the commencement simultaneously," on the 20th July, 1873, "of the construction of a raihvay from the Pacific towards "the Rocky Mountains, and from such point as may be selected, east of the Rockv " Mountains, towards the Pacific, to connect the seaboard of British Columbia with " the raihvay system of Canada ; and further, to secure the completion of such "railway mthin ten years from" July, 1871. And British Columbia, on her part, entered into gei-taiu obligations in favour of the Dominion, with regard to the public lands of the Province, The word "simultaneously," which appears in this agreement, was designedly inserted with two objects : — Ist. That Canada should commence construction works at the two most available points, and thus ensure the early and rapid progress of the railway ; and 2ndly. That the admitted disadvantages under which British Columbia would labour until the completion of the main line should to some extent be counter- balanced by the benefits of early expenditure upon railway works in the Province. The agreement thus entered into was inserted in, and formed the most essential ]>ai1; of, the Terais of Union mutually accepted, in 1871, by Britj'»li Columbia and Canada. These terms were placed betore the people of the Prov .<. d at a general election. They were shortly afterwards considered and foimally approved by the Provincial Legislature. They were subsequently fully debated and accepted by both Houses of the Parliament of Canada; and they were finally sanctioned and ratified by Her Majesty in Council. Xo question, therefore, could have been more thoroughly ventilated; no conclusion more deliberately amved at. As a strong ]»ractical proof of the contiiuied interest felt by Her Majesty's Government in the success of the Confederation thus established, the Imperial Parliament, in July, 1873, guaranteed a loan of j£3,600,000, to be raised bv Canada mainly lor the con- struction, among other i)ublic works, of the Canadian I'acific Railway. It may now be useful to present to your Lordship a brief statement of the manner in which the conditions of the Railway Agreement have been observed. The Petition of the Government of British Columbia shows the following tucts: — ti M'msion of Hon Mr. Watkm. 1874 That tljo Province Imn fulfilled lier pnrt of the agreement; and has endeavoured to aid the Dominion Government to carry out their jiart ; That tlio Dominion Government liavo not, during the three years Bucceeding Union, made due effort to comi)leto the railway HurveyB in Britifth Columbia ; That the Dominion (Jovcnmient did not, on the 20th July, 1878, commence tlie "HimultancouH" railway construiftion provided for in tlie agreement ; That they alno liavc liithcrto fiviled to commence any railwav construction wliatrioever in the Province, though they might have commenced Huch construction, an they admitted in Mjiy lawt tliat they were then in a position to begin the railway. Home lurther circumHtanccH connected with these matters are detailed in the Petition. It is therein shown that in .lune, 1873, the Dominion Government selected the harbour of Esnuinuilt, on the I'acific, as the western terminus of the Canariniiciit did not at the time underHtaiid that these pro]x>8al8 were officially made. They were subsequently withdrawn by the Dominicn Government, and only the moment of such withdrawal declared by tliem to have been made with their a liority and on their behalf. The above letter, which thus became invested, thoug but lor a brief time, with an authoritative character, is valuable as the only otfi ill intimation to the Provincial Government of the ix)licy of the present Dominio Government on the subject ot the Pacific Railway. In addition to certain pro] sals or offers to British Columbia, the letter contains im- jwrtant (Statements and some specific admissions which favour the Provincial case. I shall discuss these offers scriativi, and endeavour to ascertain their value tnken in connection with the conditions attaclicd to them, which conditions, as I shall afterwards show, virtually amount to a surrender by British Columbia of her existing railway agreement. I shall then offer some comments upon the above statements and admissions, using generally, as far as may be, the language in which they are expressed in the letter, in order to lessen the danger on my part of any iiMidvertent misconstruction of their iiieaning. The offers made are as follows : — No. 1. The Dominion will ''commence construction from Esquimalt to Nanaimo immediately, and push that ]tortion of railway on to com- pletion within the shortest practicable time." The offer to commence work immediately at Esquimalt (which, as already statod, was selected as the western terminus of the main line bv an Order of the 1874 88 Vc. JUimnn of Hon, Mr. Walkcm. 10 ivourod ceoding Privy Council of Canada oh far back oh Juno 1878) in wniply an oftbr to do y/\M the Dominion wan botnid to )iavo dono in July 1873, and what tlioy might have done at any time Hinoo, and which they admit in this letter wan quite practicable in May last. The oftbr, your Lordship will notice, in a very limited one. No definite pro- viuion in made tor the cxtcnnion of the main lino beyond Nanaimo (aboat 60 luilea from Esquimau); nor, indeed, in any definite ])eriod fixed for the completion of even thii* short portion of the railway, which would take neither much time nor mouev to construct. The promise to complete it "in the shortost practicable time, ' — a promise in eft'ect attached to all the oftbrs in the letter, — is one which, slightly qualified, is implied in the present and in ovorv other agreement of a Hirailar character, in which no stipulation is inserted for the poribrmance of work within a given time. The phrase is much too elastic in its meaning to admit of ony definite interpretation. It may, for the present, therefore, be mirly omitted from special cousidoratioii, except as some evidence of a general intention on the part of the Dominion Govonimcnt. I- must assume, what the languajpp conveys, that the words '''liat portion ot railway," mean the Esquimalt and Nanaimo portion or part of the main railway, which is the only railway referred to in the letter. This would tend to show that the jMisition of the terminus is not questioned. No other allusion to the terminus is made in the letter. No. 2. The Dominion mil prosecute and complete the surveys, and thou deteimino "the location of the lino upon the mainland." This promise is reasonable on the face of it, but it is very vague. Li May last the Goverimient of the Dominion informed the Provincial Government that "there was no reason to believe that it would bo possible to complete the surveys before the close of the year" 1874. The reasonable inference deducible fh)m this state- ment is, obviously, that the sm-veys would bo finished at the end of 1874. If a longer period had been deemed necessary for the purpose, the fact would have been stated. Considering the intimation thus given, and looking to the long interval of time that has elapsed without any decision as to the route having been arrived at, it might liave been expected that the letter would have positively guaranteed the completion, in 1874, of these and all other indispensable surveys within the Province at least, and have further placed beyond conjecture the commencement of construc- tion works early in 1875. I have been informed by a railway engineer here that, as a matter of f-actice, the exploratoiy surveys settle the general bearing or course of a line of railway, and that tlio subsequent location surveys may be proceeded with at several points along such line simultaneously, and the work of construction be commenced at those points without w. liting tor the actual location of the whole line. Such being the case, there is no valid reason, in view of all the facts above stated, why this practice should not be followed with respect to the Pacific Railway. The general corn-so of the railway, within the Province at least, should be deter- mined this year, and location surveys, immediately followed by actual construction, should be commenced early in 1875 at various points on the mainland and on the island. This is what British Columbia, above all things, desires, and any definite arrangement which will secure her wants in this respect will give the Province much satisfivction. No. B. The Dominion will " open up a road and build a telegraph line along the whole length of the railway in the Province, and cany the telegraph wire across the Continent." The penormance of this oftbr, both as to the road and the telegraph line, would depend, in point of time, upon the performance of the preceding o^r (No 2), as the above works would, according to the letter, only be commenced after tiie com- pletion of the surveys and the location (within the Province) of ihe whol9 line 20 Mission of Hm. Mr. Walkem. 1874 ■tm I? I along which they are proposed to be conatructed. The fact is known to your Lord- shipfthat the roid here meant is a waggon road intended for a time, at least to Sly the place of the railway. A perapnal knowledge of the country justihes me inffing tL a very large portion oY the ^50,000 or ^60,000 required for its con- Btruction would be monef simply thrown away. I can also unhesitating y state that the road would, even as a temporary substitute fortlie railway, be wh- 'unaccept- able to the Province at large, including the farmers and producers of the interior, in whose interests, and for whose benefit, it is alleged that the offer is especiaUy made. For the transport of supplies, and to meet engineering necessities along the line, as railway works progress, a merely passable road is necessary, and must be constracted ; ftiis, in fact, is all that is required. The telegraph line (when finished) would, doubtless be useful, but its construction is a question which should be treated indepem.' atly of the Eailway Agreement. The railway is what is required, and the people of the Province would prefer seeing the time and money, which are proposeiiib be expended on the above works, appropriated to the larger and infinitely more beneficial enterprise. ' . No. 4. When " the surveys and road on the mainland can be completed, there shall be in each and every year . . . during the construc- tion of the railway, a minimum expenditure upon the works of con- .'. ' ' struction within the Province of at least 1,600,000 dollars;" and the Dominion " will proceed from the very first with all the works ot ' . construction,"onthemainland, "that their engineers could sanction." The expenditure above proposed may be considered, first, in relation to its amount; and next, with reference to the date of its commencement. The amount falls far short of what British Columbia has been led to expect. The cost of the line in British Columbia has been roughly estimated at 35,000,000 dollars (j£7,000,000). Assuming this estimate to be correct, and that ten years would see the completion of the railway, the Province, in accepting the Terms of Union, had a fair expectation of an average yearly expenditure within her limits of, say, 8,500,000 dollars (^700,000). After a delay of over three years with its consequent loss to the Province, it is now proposed by the letter that this amount shall be reduced to the sum of 1,600,000 dollars (^£300,000). Again, dividing the whole cost 85,000,000 dollars (£7,000,000) bj this sum, a period of twenty-three and a-half years would be obtained m the time required for the completion of the Provincial section of the line alone, and this period would be only computed from the date when expenditure would be commenced, and not from the date of the letter. It is true that the expenditure proposed is to represent a minimum outlay, which, after aeveral years, might for obvious reasons increase with the progress of the work, but I submit that, in estimating the value of this, or of any similar proposal, the actual figures given — and not contingent amounts which might never be spent — must be the basis of calculation. Moreover, not only is the proposed expenditure inadequate, but the period when it is to be begun is left largely open to doubt. The letter states that the expenditure will follow the completion, " alon^ the whole length of the railway in the Province," of the waggon road mentioned in ofier No. 3. The completion of this road, in turn, has to depend upon the completion of all the surveys, and upon the Ideation of the whole line on the mainland (see ofier Ko. 2) ; and the comple- tion of these surveys and the location of this line are, in point of time, wholly left open to uncertainty. It is stated, that from the ''very first" construction work on the mainland will be done at such places as the sanction of the Engineers will war- rant; bat this sanction will naturally be deferred until the expenditure which has been proposed to cover construction work generally should be commenced. Takon throuffhoQt, no offer could well be more indefinite than the above. Adding all the uncertainties mentioned to the fixed period of twenty-three and 1874 88 Vic. Mismn of the Ron. Mr. "Walkem, n-half years (or even to a reduced period), it would appear that the above oftcrmay be described as one for the postponement of the completion of the line within the Province for a lengthened period, possibly until some time in the next century. Your Lordship will observe — what I must consider an important matter — that all the preceding oft'ers refer and are strictly confined to the British Columbian portion of the railway. The letter is wliolly silent as to the extension of the line beyond the eastern frontier of the Province. British Columbia is thus by impli- cation virtually requested to surrender one of the elements most important to her in the contract, namely, the right to insist upon all rail communication with the Eastern Provinces. I shall now, as proposed, make a few comments upon certain statements and admissions contained in the letter. Probably the most important of the former is the statement, that the Dominion Government " are advised by their engineers that the physical difficulties are so much greater than was expected, that it \%J^ impos- sibility to construct a railway within the time limited by the Terms ot union, and that any attempt to do so can only result in wasteful expenditure and financial embarrassment." Upon this point the Provincial Government are without any information save what is afforded by the last Report, as published, of th^^ Chief Engineer of the Dominion Government. A referent e to this Report woulJ lead the reader to a rather contrary conclusion to that above expressed. On page 84, section 5, the Chief Engineer makes the following statement : — " It may indeed be now accepted as a certainty that a route has been found generally possessing favor- able engineering features, with the exception of u short section approaching the Pacific Coast ; which route, taking its entire length, including the exceptional sec- tion alluded to, will on the average show lighter work, and will recjuire less costly structures than have been necessary on many of the railways now in operation in the Dominion." It is worthy of notice that this Report, so favorable to the enter- prise, is dated only some four months prior to the date of the letter now under discussion. During the interval between these dates, all surveys in the Province had been suspended. I n ,iy further remind your Lordship that the Charter for the construction and completion of the railway m ten years from 1871, according to the Terms of Union, was keenly competed for by two separate combinations, including men of great railway experience, large capital, and high position in the Dominion. These Com- panies, apparently, did'not consider the undertaking to make the railway within the stipulated tirre impracticable. On the contrary, up to February 1873, so eager was the competition, and so powerful were the organization? in point of wealth, influence, and ability, that the Dominion Government decided to give the charter to neither; and, upon the two Companies failing to amalgamate, as suggested by the Government, the Government, under certain powers conferred by Parliament, formed a new Company, based upon the principle that each Province should be represented in the undertaking. To this new Company a charter was granted on the 5th of February, 1873. With the political or other causes which subsequently led to the surrender of this charter it is not my duty to deal. The strong fact remains that two responsible and rival companies were willing, and a third under- took, to construct a through-line of railway to connect the east and west of the Dominion in eight years from February 1873. Neither in the Prospectus of the successful Company nor in the voluminous correspondence which took place pre- viously between the two unsuccessfV)! Companies on the subject of their respective claims to the charter, and of their proi osed amalgamation, was any doubt expressed as to the possibility of fulfilling this time obligation. Had such a doubt existed, it is fair to infer that the Dominion Government would have requested the assistance of the Province to remove it. ^o such request was, however, made. With respect to the statement before your Lordship that the chartered Com- panv considered an extension of four years necessary to place the financial success of tne enterprise beyond doubt, the Provincial Government are without any informa- S2 Missi&n of the Ron. Mr. "Wdhem. 1874 tion save what is contained in, or may be inferred from, the last paragraph of aection 8"of the Charter granted to the Company, which reads as follows: — The Company " shall complete the whole railway within ten years from the said 20th of July, 1871, unless the last-mentioned period shall bo enlarged by Act of Parliament, in which case the Company shall complete the whole railway within such extended period." Admitting, for the sake of argument, however, that such extension of four years was deemed necessary, the completion of the line would not have been deferred beyond 1885. The extract alreadv quoted from the Engineer's Report, dated, as it ?b, about twelve months after the date of the Charter, and made after a further knowledge of the country had been acquired, tends strouj^ly to confirm the views of the respective Companies that the completion of the railway was practi- cable in 1881, or at the farthest in 1885. The value of the above facts and correspondence is material as showing, in the first place, that it was considered all important that a definite period should be assignecTOr the execution of a work upon which Confederation hinges; and in the next place, that 1881, or at most 1885, was a reasonable definition of that period. The Province, after all her disappointments, above all things desires that the "prompt commencement, continuous prosecution," and early completion of the railway shall be definitely assured or, in the language of the letter, "be guaranteed." The Provincial Government, therefore, strongly, but respectfully, resist the conten- tion of the Dominion Government that the commencement, prosecution, and - completion of the line shall be left open to a doubtful and indefinite period. The further opening statement in the letter, that the Dominion Government are willing "to enter into additional obligations of a definite character for the benefit of the Province" may be said to have been disposed of, as the nature and character of these "obligations" have, in the analysis made of the ofiers, been already examined. I shall, therefore, pass on to what I have termed the admissions in the letter. The most important of these is an admission which may be inferred from the ofter made by the Dominion Government to "commence railway construc- tion immediately from Esquimalt to Nanainio." Here it is admitted that the Dominion Government were in a position, at least in May last (the date of the letter), if not before, to have begun the railway in the Provmce. There is, and has been, therefore, no excuse for delay in pushing forward the work. Of scarcely less importance is a second admission, which reads as follows: "to a country like British Columbia it is conceded, however, to be an important point that not only the prompt and vigorous commencement, but also the continuoMs Erosecution of the work of construction within the limits of the Province should e guaranteed." To these two admissions may be added a third and last: the Dominion Govern- ment, while conceding that railway construction should be commenced at the sea- board of the Provitice, consider it most important that every effort should be made by them to push forward the construction of the railway on the mainland, in order that the legitimate advantages of expenditure 8hould,"as far as possible, fall into the hands of the farmers and producers of the interior. This is an object which the Provincial Government have much at heart, and strongly desire to see realized. with the clear and just sense which the Dominion Government thus appear to have of what is due to the Province; with their full appreciation, on the one hand, of the waut« of the interior, and, on the other, of the requirements of the Island, it might have been expected that they would, as " a Government responsible for the progress of both shores of the Continent," at least have given some more definite as well as some practical meaning to their cxprewsions of solicitude for the welfiiro of the people of the Province. 1 have thus dwelt upon the letter at considerable length, as your Lordship's attention has been speciallv directed to it in connection with the present case. I conceive the tbllowing to be a synopsis of its offers and conditions: Canada will 1874 88 Vk. Mission of the Hon. Mr. Walkem. 2» e raph of :— The 20th of liament, xtended Qsion of ,ve been Report, after a firm the B practi- wing, in bould be and in it period, that the n of the •anteed." B conten- ion, and d. rernment r for the iture and jrs, been imissions J inferred construe- that the ate of the re is, and lows: "to ant point Dntinuona :c should 1 Qovern- t the sea- i be made , in order fall into eart, and appear to me hand. Island, it le for the lefinite as tvel&ro of jordship's case. I >nada will commence, on the Island, immediate construction of the Railway at Esquimalt, and lijiish about 60 miles of it (time of completion iudetiuite). On the mainland, she will prosecute the surveys for the remainder of the line, and finish these surveys (time also indefinite). She \n\\ thereafter "locate" the line falling within the Province (time also indefinite). When thin can be achieved, she will make, along this " located" line, a waggon road (which the Province does not want), and a tele- gKiph line (which the Province has not asked for), and will carry the latter across the Continent (time of completion of both road and telegraph line indefinite). Ultimately, after the comi)letiou of the surveys and of the road, but not before, Canada will begin, and will continue railway work in the Province, and spend thereon, year by year, not less than £300,000. ("Whether this sum will include the Esquimalt line or not is doubtful. It is the only expenditm'e oftered. As I have shown your Lordship, Canada thus proposes to ensure to the Province the com- pletion of the line within her limits in twenty-three and a-half years, or less, dating from the unknown period at which the ottered expenditure can be coniinenced.) Canada will do all this work "in the shortest time practicable," a phrase a shade stronger than the Avords "with due diligence," three words, the construction of which has given rise to much doubt, and to much painful litigation. In considera- tion of these otters (if accepted), British Columbia shall — Ist, abandon all claim to the completion of the Canadian Pacific Railway within a definite time; and, 2ndly, shall (virtually, though not quite so expressed) surrender her right to, and interest in, the completion of about 2,000 miles of the line necessary to connect the eastern frontier with eastern Canada. Apart from the very objectionable features of the last two conditions, the indefinite character of the above proposals made to the Province is in marked contrast to the statement of the Dominion Government that, "to a country like British Columbia," it is important that the early completion of the railway within her limits should be ensured; and, therefore, that a guarantee should be given by the Dominion Government for "its pi*ompt commencement" (which depends on the prompt completion of the surveys), and also for "its con- tinuous construction" (which depends on yearly specific expenditure). This concludes my remarks upon the letter. I have endeavoured to place before Your Lordship a full history of the position of British Columbia Avith respect to Confederation. A very unsatisfactory state of affairs has been disclosed, if the question be regarded simply as a question between the Dominion and one of her Provinces. On the part of the Dominion there have been delays, default, and avowal of default, followed by otters and conditions such as I have described. The peculiar situation of Britirth Columbia — her remoteness — her weak jwliti- tical position — her dependence on the good taitli of the Dominion — the hopes that have been held out and deferred — the grievous loss that has ensued — the consequent utter prostration of her interests, all these give her claims upon Canada, which the iircsent Dominion Government have, an already shown, to a certain extent ackiiow- edged— rin words. These claims the Provincial Government hope, will not be over- looked by your Lordship in considering the reasonable measure of justice to which the Province is entitled under the Terms of Union. The Province has not expected anything that is unreasonable, and does not do so now. It is her urgent desire that matters should be forthwith placed on a fair business-like footing, and above all, on a footing of certainty, with proper safeguards to ensure that certainty, so that a good and cordial understanding may be restored and not again be disturbed. 1 have, &c., (Signed) Geo. A. AVAiiKEM, President of the Exccutifc Council of British Columbia. I i4 Mssimqfthe Hon. Mr. Walkm. 1874 nil No. 22. Mr. Herbert to the Honorable Mr. Wulkem. Downing Street, 17th November, 1874. Sib,— I am directed by the Earl of Carnarvon to transmit to you a copy of a desiwtch, which, after fully considering the representations made to Imn on the part of the Dominion Government and by yo»i'«elf, Ws Lordship has addressed to the Earl of Dufterin, on the subject of the Canadian Taciftc Riulway. As this des- patch contain a full explanation of the conclusions at which Lord CarnaiTon has arrived, his Lordship does not feel it necessary to enter, on the present occasion, into any lengthened examination of the various points which you have pressed upon his notice trom time to time. It nT« be a source of deep satistUctiou to Lord Carnarvon if the good feeling between Canada and British Columbia, to the maintenance of which you have con- tributed by the tempemte and reasonable manner in which you have urged the claims of your Pr-^vince, is permanently confirmed by the aid of his intervention. I have, &c., -^ (Signed) Robert G. W. Herbert. No. 23. 7hc Earl of Carnarvon to the Earl of Diiferm. ' >^ DowNiNu Street, "' November 17th, 1874. Mv Lord, — I duly received your despatch of the 18th September, enclosing an Order in Council, setting forth the views of your Ministers as to the proposals con- tained in my despatch of the 16th August for the settlement of the controversy between Canada and British Columbia, respecting the Pacific Railway. I subse- quently again saw Mr. Walkem, and at his request I have delayed the announcement of the terms which, in my opinion, may properly be laid down as Mr and reasonable, until the receipt of a further written communication from him, which has now reached me, and a copy of which I enclose. The statements thus placed before me are so clear and complete as to assist luc materially in appreciating the position in which the question now stands, and in judging without hesitation what modification of the original terms should be adopted. And I would here express my satisfaction at the temperate and forbearing manner in which points involving most important consequences .have been argued on both sides, and th'^ pleasure which I feci in being able to think that asperity of feeling or language may have been, in some degree, avoided through the o]iportunity of submitting the whole case to the independent judgment ot one who may at least claim to have the interests of both i I explained very fully in niv entertained on each of the princii»a jarties equally at heart. espatch of the IGth August the opinion which I questions at issue, and 1 need now add but little to the simple statement of my decision. That decision is necessarily, as both parties are aware, in the nature ot a compromise, and as such it may perhaps tall short of ^ving complete satistaction to either. If, on the one hand, your Ministers, as you inform me, consent with reluctance to the further concessions which, at an earlier ntage, I suggested, they will not, on the other hand, fail to bear in mind that even af>er those concesidonn are made, British Columbia will receive considerably less tl- 111 w!)s jjromised to her as the coudition of entering the Dominion. I prefer rather tc reilect that, under the nmonded terms now to be established, British Columbia 38 Tu!. Mission of the Hon. Mr. Walkem, 25' will, after all, receive very great and substantial advantages from its union witb ' Canada, while the Dominion will be relieved oi a considerable part of those obliga* tions which were assumed in the fii%l instance without a suflScient knowledge of the ' locftl conditions under which so enormous and difficult an undertaking was to be \ carried into effect, and to fulfil which would seriously embarrass the resources of ' even so prosperous a country as Canada. Adhering, then, to the same order in which, on the Itith August, I stated the ' Srihoipal points on which it appeared to me that a better undiarstanding should be ' efined, I now proceed to announce the conclusions at which 1 have arrived. They ^ ai*©: — 1. That the railway from Esquimalt to Nanaimo shall be commenced as soon as' possible, and completed with all practicable dispatch. 2. That the surveys on the mainland shall be pushed on with the utmost vigour. On this point, after considering the representations of your Ministers, I feel that I have no alternative but to rely, as I do most fully and readily, upon their assurances that no legitimate effort or expense will be spared, first to determine the best route for the line, and, secondly, to proceed with the details of the engineering work. It would be distasteful to me, if, indeed, it were riot impossible, to prescribe strictly any minimum of time or expenditure with regard to work of so uncertain a nature; but, happily, it is equally impossible for me to doubt that your Government will loyally do its best in every way to accelerate the completion of a duty left freely to its sense of honour and justice. 8. That the waggon road and telegraph line shall be immediately consbucted*^ There' seems here to be sonie ditierence of opinion as to the special value to the Province of the undertaking to complete these two work?; but after vtoneide ring what has been said, I am of opim6n that they should both be proceeded witli at once, «s indeed is suggested by your Ministers. 4. That 2,000,000 dollars a-year and not 1,500,000 dollars, sh^l be« the minimum expenditure on railway works within the Province from the date at which the surveys are sufficiently completed to enable that amount to be expended on construction. In n«ming this amount I understand that, it being aRke the interest and the wish of the Dominion Government to urge on with all speed the completion of the works now to, be undertaken, the annual expendi- ture will be as much in excess of the minimum of 2,000,000 dollars as in any year may be found practicable. 6. Lastly, that on or before the 31flt December, 1890, the railway shall be completed and open for traffic from the Pacific seaboard to a point at the wefterii end of Lake Superior, at which it will fall into connection with the existing lines of railway through a portion of the United States, and also with the navigation on Canadian waters. To proceed at present with the remainder of the railway extending, by the country northward of Lake Superior, to the existing Canadiua lines, ought not, in my opinion, to be required, and the time for undertaking that work must be determined by the development of settlement and the changing circumstances of the country. The day is, however, I hope, not very distant when a continuous line of railway through Canadian territory will be practicable, and I therefore look upon this portion of the scheme as postponed rather than abandoned. In order to inform Mr. Walkem of the conclusions at which I have arrived, I have thought it convenient to give him a copy ot this despatch, althout'h I have not communicated to him any other part of the correspondence which has passed between your Lordship and me. It will, of course, be obvious that the conclusion which I have now conveyed to Tou upholds, in the main, and subject only to spme modifications ot detail, the poncy adopted by your Government with respect to this most embarrassing ques. tioEi. - On acceding ^0 office your Ministers found it in a condition which precluded « oompli&ne^ with the stipulations of Union. It became, therefore, their duty to coDuder what other arrangements might equitably and in the interests of ull coi> 26 Mission of the Hon. Mr. Walkem. 1874 i! cerned be substituted tor those which had failed. And in determining to supple- ment the construction of some part of the new railway bv that vast chain of water communications which Nature might seem to have designed for the traffic ot a great country, I cannot say that they acted otherwise than wisely. I sincerely trust that the more detailed terms which I have now laid down as those on which this policy should be carried out will be found substantially in accordance with the reasonable requirements of the Province, and with that spirit of generous and honourable adherence to past engagements which ought in an especial degree to govern the dealings of a strong and populous community with a feebler neighbour, and which I well know to be the characteristic of all parties and statesmen alike within the Dominion of Canada. . I have, &c., (Signed) Carnarvon. No. 24. Teleqram. The Honorable Mr. Walkem to the Provincial Secretary. Ottawa, January 18th, 1874. Premier agrees to commence Island location in March, prosecute work vigorously, and prosecute Mainland surveys vigorously. In the interim last Summer's work will be plotted. Railway i on has been ordered for Columbia. Carnarvon's decision adopted. Legislation upon decision deemed uimeceasary by Premier. He manifested very sincere good -will towards Columbia, and received me with generous spirit Alaska already attended to. Have not settled other busiuess with him. Will telegraph my departure. (Signed) Geo. A. Walkkm. • No. 25. 2'Ae Honorable Mr. Walkem to the Secretary of State for Canada. • Ottawa, January 23rd, 1875. Sir, — The Provincial Secretary of British Columbia has requested me, by telegram, to ask you to be good enough to officially communicate, at your earliest convenience, the decision upon Railway matters given by Lord Carnarvon on the 17th November, last. The Government of the Province would appear to have had no official inti- mation upon the subject ; I shall therefore feel obliged to you if you will cause the necessary despatches to be forwarded on Monday next, the 25th instant. I have, &c., (Signed) Geo. A. Walkem. No. 26. Teleqram. The Lieutenant-Governor to the Earl of Carnarvon. This Government having received no reply to Railway Memoral, and Legis- lature being in session, urgently request to oe informed, by telegraph, whet£«r official reply has vet been oent, or may be expected ; and whether Canada accepts decision in your despatch hande(^ Mr. Walkem. No communication from Ottawa on subject. (Signed) Joseph W. Trdtch. 38 Vic Mission of the Hon. Mr. Wdkem. No. 27 Teleqram. , Ihe Honorable Mr. Walkem to the Under Secretary of State for the Colonies. ' 8rd March, 1876. Authorize Government to use copy Railway despatch you gave me. You stated, and your private letter says, communication through Governor-General, and copy handed me for own convenience. (Signed) Geo. A. Walkem. No. 28. Teleqram. The Earl of Carnarvon to the Lieutenant- Govemm" of British Columbia. March 4th, 1876. My despatch to Governor-General, of November 17fh, was officially commu- nicated to Mr Walkem as answer to Uailway Memorial, and all other representa- tions. It may of course be published. Dominion Government accepts arrange- ment. (Signed) Carnarvon. No. 29. Teleoram. The Provincial Secretary to Hon. A. DcOosmos. March 2nd, 1875. Ask Mackenzie to forward Railway despatches. Walkem told they would be sent through Dominion Government, and was only informed of the result as matter of courtesy. Please send some answer immeaiately. (Signed) John Asu. No. 30. Tbleoram. ffon. Mr. jDe Cosmos to the Provincial Secretary. Ottawa, March 4th, 1876. Despatches will be sent; printed copies forwarded. (Signed) A. DeCobmo^. victoria : Printed bjr Richard WoLriiiDiM, Governmeut Priator, •t the OoTeroment Printing Office, James' Bajr IStft i mmm^^^^mmm wm 88 Vie. Missicn of JSon. Mr. WaUcem. SO No. 5. PETITION. \,Copy of Petition, by Provincial Government, to Her Miyesty the Queoiy complaining of non-fulfilment of Terms of Union by the Dominion. To the Queen's JWosi Excellent Majesty. Most Obaoious SovxEBzaM : We, Your Mi^e8ty*s most dutiful and loyal subjects, the Gommittee of the Executive Council of the Province of British Columbia, in Council aM«mbl«d, humbly approach Your Majesty, for the purpose of representing :— 1. That, prior to the 20th day of July, 1871, British Columbia was a Gra«m Colony, having a Legislative Council, partly nominated by the Crown, and partly chosen by the people : 2. That, by Section 146 of the <^ British North America Act, 1867," provision was made for the Union of British Columbia with the Dominion of Canada : 8. That, during the years 1868 and 1869, the subjectof Union was much discuased in British Columbia, both in the Legislature and throughout the Colony ; and a considerable conflict of opinion existed in relation to the question : 4. That, in obedience to Your Majesty's commands, contained in a Despatch (Appendix A.) of the 14th day of August, 1869, from Your Majesty's Principal Secretary of State for the Colonics to the Qovemor of British Columbia, the Governor in Council framed the ** Proposed Terms of Confederation " (Appendix B.), and in the month of February, 1870, submitted them to the Lej^lative Council, by whom they were approved : 5. That these Terms had not been directly submitted to the people for their sanction ; and the Council that approved of them was, at the time, composed of Thirteen Members appointed by the Crown, and Nine chosen by the people : 6. That the " Proposed Terms " were presented for consideration, through Dele- gates, to the Honorable the Privy Council of Canada, as the basis of an' agreement for Union : 80 Mssim of Hon. Mr. Waikem. 1874 7. That, after full discussiou, between the Delegates of British Columbia and the Committee of the Privy Council, it was mutually agreed that the said Terms should be materially modified ; and other Terms, hereinafter called the " Accepted Terms," (Appendix C.) were substituted for those proposed ; and such "Accepted Terms," commonly known as the " Terms of Union," now form the basis oi Union between British Columbia and the Dominion : 8. That the main difference between the " Proposed Terms " and the " Accepted Terms," consists in the substitution and insertion of Article 11 in the "Accepted Terms" for Article 8 of the *' Proposed Terms," which Articles are herewith labmitted:— ARTICLE 8 ARTICLB 11 or "PROPOSED TERMS." "8- Inumucb ng no real Union can subsist between this Colony and Uanada without the speedy establishment of communication across the Rooky Mountains by Coach Road and Railway, the Dominion shall, within three years from the date of Union, construct and open for traffic such Coach Road fk-om some point on the line of the Main Trunk Road of this Colony to Fort Garry, of simi- lar character to the said Main Trunk Road ; and ■hall Airther engage to use all means in her power to complete sneh Railway communication at the earliest practicable date ; and that surreys to de- termine the proper line of such Railway shall be at once commenced ; and that a earn of not less than One Million Dollars shall be expended in every year, ttom and after Thrae years from the date of union, in aetnally constracting the initial sections of such Railway from the Seaboard of British Gol- nmbia, to dennaet with the Railway system of OMiada." or ' ACCEPTED TERMS.' " 11. The Government of the Dominion undertake to secure the commencement simnltaneonsly, within two years from the date of 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 British Columbia with the railway system of Canada ; and further, to secure the completion of such railway within ten years from the date of the Union. " And the Government of British Columbia agree to convey to the Dominion Government, in trnst, to be appropriated in such manner as the Dominion Gov- ernment may deem advisable In ftirthennce of the construction of the said Railway, a similar extent of lie lands along the line of railway throughout its entire length in British Columbia, not to exceed how- ever, twenty (20) miles on each side of said line, ai may be appropriated for the same purpose by the Dominion Government from the public lands in the '' * - ' ' '■'■• North-West Territories and the Province of Manitoba. Provided, that the quantity of land which may be held under pre-emption right or by Crown grant within the limits of the tract of land in British Colum- ■ , .. bia to be so conveyed to the Dominion Government ■ shall be made good to the Dominion from contiguous public lands ; and, provided further, that until the • _ commencement, within two years, as aforesaid, f^om '■■ the date of the Union, of the construction of the Bald railway, the Government of British Columbia shall not sell or alienate any further portions of the pnb- ,' • , ' lie lands of British Columbia in any other way than under right of pre-emption, requiring actual residence of the pre-emptor on the land claimed by him. In '> consideration of the land to be po conveyed in aid of the construction of the said railway, the Dominion Government agree to pay to British Columbia ttom the date of the Union, the sum of 100,000 dollar! per annum, in half yearly payments in advance." 9. That this substitution, affording assurance of speedy Railway communieation with the Eastern Provinces, was made to secure the acceptance of Confederation by the people of British Columbia : 10. That it having been decided that the people of British Columbia should be directly consulted before the "Accepted Terms" became law. Your Majesty, in pursuance of the provisions of the " British Columbia Government Act, 1870," was graciously pleased, by an Order in Council of the 9th day of August, 1870, to so reconstitute the Legislative Council as to allow the Electoral Districts throughout the country to return a minority of Members thereto : 88 Vic. Mistion of Hon. Mr. Walkem. 81 11. That, under the new Constitation of the Council, Writs were isaued for the Election of Members to serve therein, and the said '* Accepted Terms" were duly submitted to the people for their consideration ; and at the subsequent Elections held to decide the question of Union, the provisions of Article 11 of the Terms of Union formed the main inducement to British Columbia to agree to enter into Confederation ; and Members were returned to support the adoption thereof: 12. That such "Accf^pted Terms" were, on the 28rd day of January, 1871, unanimously agreed to ^y the Legislative Council ; and an humble Address to Your Majesty was at the same time passed, praying that Your Majesty in Council would be graciously pleased '' to admit British Columbia into the Union or Dominion of " Canada, on the basis of the Terms and conditions o£Eered to this Colony by the "Government of the Dominion of Canada," which Terms and conditions are those herein referred to as the " Accepted Terms :" 18. That similar Addresses to Your Majesty on the same subject were passed by the Parliament of Canada under the provisions of the 146th Section of the "Britidi North America Act, 1867 :"'• ■ . • • 14. That on the 16th day of May, 1871, Your Majesty, in answer to the said Addresses, was graciously pleased to order and declare (Appendix D.) that the Union between British Columbia and the Dominion should take effect on the 20th day of July, 1871 — and British Columbia accordingly, became on that day, one of the Pro* vincesof the Dominion of Canada, upon the basis of the "Accepted Terms," or Treaty of Union : 15. That by Article 11 the Dominion undeiiiook " to secure the commencement " simultaneously, within two years from the date of 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 British Columbia with the Railway system of Canada ; and further, " to secure the completion of such Railway within ten years from the date of the "Union." And the Province, in consideration (hereof, and "m furtherance of the ^* construction of said £ailwfl>'" agreed, first, — to convey to the Dominion a belt of public land not exceeding Twenty Miles in width on each side of the Railway in British Columbia ; and secondly — to withdraio all its public lands from sale or alienation, except under stringent pre-emption laxos, for a period of tioo years ending on the 20th day of July, 1873 : 16. That accordingly, immediately upon Uaion, all lands of the Province were withdrawn from sale or alienation. 17. That, the Dominion Government informed the Provincial Government, by Despatch dated the lOth of June, 1873, and by an enclosed Order of the Privy Council, Appendix E. P., (based " on a memorandum of the 29th May, 1878, from " the Chief Engineer of the Canadian Pacific Railway,") that Esquimalt, in Van- " couver Island," had been "fixed as the Terminus of the Canadian Pacific Railway," and that it had been decided that " a line of Railway be located between the Har- " bor of Esquimalt and Seymour Narrows, on the said Island ;" and they requested the Provincial Government to convey to the Dominion Government " in trust, accord- 82 Mismn of Hon. Mr. Walkem. 1874 i] ' ■ ; •1 ■ f k 1 ■ r ■ ll "iug to the 11th paragraph of the Terms of Agreement of Union, a strip of Land "Twenty Miles in width, along the Euatorn ConHt of " Vancouver Island, between " Seymour Narrows and the Harbor of Esquimau :" 18. That, on the 26th of July, 1873, the Minute of the Executive Council of British Columbia (Appendix Q.) relating to the conveyance of the land referred to, was passed and forwarded to Ottawa (Ajipendix H.) on the following day; and the receipt thereof was acknowledged on the 26th August, 1878, (Appendix J.) 19. That, by that Minute, tho Provincial (jk>vemmont declined to convey the land referred to, until Railway construction should be commenced as provided by Article 11 of the Terms of Union; but agreed to reserve the said belt (which is colored red on the accompanying Chart of Vancouver Island) ; being a tract of most valuable land — about 8,200 square miles in extent, abounding in vast mineral wealth and easy of access from the sea, — and this land was accordingly reserved by Order in Council (Appendix K.L.) on the 30th of June, 1873, and by Public Notice on the day following; and has been ever since reserved: 20. That, on the 11th of September, 1873, the Dominion Government intimated their concurrence in the course thus pursued by the Provincial Government, and " submitted (Appendix M. N.) " that so long as the land which is referred to, is not "alienated f^m the Crown, but held under Reservation, * * * the object of "the Government of the Dominion will be attained, that object being, simply, that "when the Railway shall come to be constructed, the land in question shall be at "the disposition of the Government of tlie Dominion, for the purpose laid down in "the 11th Section of the Terms of Union with British Columbia:" 21. That, on the 22nd September, 1878, the Provincial Government respectfiilly tirged (Appendix O.P.) the Dominion Gi vemment to define, by survey, the belt of land referred to, as its reservation w vs oeriously retarding the settlement of Van- couver Island; but to this reque?«t n.j other reply than a mere acknowledgment (Appendix Q.) was sent: 22. That, on the 25th of July, 1873, the Provincial Government, by Order in Council, (Appendix R.) strongly protested against the breach of the 11th Article, no attempt at construction having been made up to that date; and such protest was forwarded, in Despatch, to the Honorable the Secretary of State, at Ottawa, on the following day (Appendix S.) : 28. That, in the Kionth of August, 1873, the Dominion Government simply acknowledged (Apper dix T.) the receipt of the protest of the 26th July, 187B: 24. That, on the 2'Ath November following, the Government of the Province i^ain drew the attention of the Dominion, by Despatch and Minute of the Execu- tive Council, (Appendix U. V.) to the protests which had been forwarded and not replied to; and the Dominion Government was requested to state its railway policy for the information of the Provincial Legislature. To this the indefinite reply (Appendix W.) and no other, was received: 26. That, on the 9th of February, 1874, the Legislative Assembly of British Columbia unanimously protested against the breach of Article 11 of the Terms of 1874 88 Vic. Miasvm of Hon. Mr. Walhcm. trip of Land bud, between e Council of 1 referred to, day; and the rJ.) 9 convey the provided by elt (which is tract of most ineral wealth ed by Order Notice ou the int intimated mment, and red to, is not ihe object of simply, that fl shall be at laid down in respectfully ', the belt of ent of Van- owledgment lent simply , 187B: le Province the Execu- ied and not Iway policy finite reply of British le Terms of Union, and respectfully urged upon Canada '* the absolute necessity of coromenciDg *e Dominion House of Commons, that " they were quite a vare that the "Terms of the Agreement with British Columbia had been violated." (Appendix BR.): 88 Vie. Mission of Hon. Mr. Walkem. 8ft 87. That the preamble of the '* Canadian Pacific Railway Act, 1874," shows that provision for the construction of this work is intended to be made by that Act only as &r as can be efiected without <* further raising the rate of taxation," thus purport- ing to modify the obligation of Canada, under the Terms of Union, without the consent of British Columbia : Your Petitioners, therefore, humbly submit — That, British Colombia has fulfilled all the conditions of her agreement under the Terms of Union : That, the Dominion has not completed the necessary Railway Explorations and Surveys ; nor, since 1872, has any effort, at all adequate to the undertaldng, been made up to the present time : That, notwithstanding the fact, that on the 7th day of June, 1878, by Order of the Privy Council, ^'Esquimalt " was "fixed" as the point of commencement on the Pacific, and it was decided that a line should " be located between that Harbor and Seymour Narrows ;" and notwithstanding further, that a valuable belt ot land, along the line indicated, has ever since been reserved by British Columbia, at the instance of the Dominion, and for the purposes, ostensibly, of immediate construe* tion, the Dominion Qovemment have Mled and neglected to commence construction up to the present time : That, although the Government of the Dominion admit that the agreement with British Columbia has been violated, and acknowledge that immediate con- struction might ) le commenced at Esquimalt, and active work vigorously prosecuted upon " that port* on of Railway " between Esquimaltand Nanaimo, yet they virtually refuse to coLxmence such construction unless British Columbia consents to materially change the Railway Clause of the Treaty : That, in conuequpuce of the course pursued by the Dominion, British Columbia is suffering great loss ; her trade has been damaged and unsettled ; her general prosperity has been seriously affected ; her people have become discontented ; a feeling of depression has taken the place of the confident anticipations of commercial and political advantages to be derived from the speedy construction of a great Rail- way, uniting the Atlantic and Pacific shores of Your Majesty's Dominion on the Continent of North America: — Your Petitioners, therefore, humbly approach YourMfyeity, and pray that Your Majesty may be graciously pleased to t*ke tbui, our Petition, into Your Majesty's &vorable consideration, in order that justice may be doao to British Columbia : And, your Petitioners, as in duty bound, will ever pray, Ac, Ac. Miasim of Hon. Mr. Walk&n. 1874 APPENDIX. '3 A. DESPATCH PROM EABL GEANVILLE TO THE GOVERNOR OF BRITISH COLUMBIA, ON CONFEDERATION. Downing Stbeet, litk August i 1 '. Bbitisb Colubibia. No. 84. i . ' DUKJOATK. Su, In my Despatch of 17th of June, in which I communicated to you your appoint- ment to the Government of British Columbia, I informed you that I should probably have occasion to address you on the question then in agitation of the Incoi'poration of that Colony with tte Dominion of Canada. Ton are aware that Her Majesty's Government have hitherto declined to entertain this question, mainly because it could not arise practically till the Territory of the Hudson's Bay Company was annexed to the Dominion, but also, perhaps, in the expectation that the public opinion of British Columbia might have opportunity to form and declare itself. I have now to inform you that the terms on w'nich Rupert's Land and the North West Territory are to be united to Canada, have been agreed to by the parties concerned, and that the Queen will probably be advised before long to issue an Order in Council which will incorporate in the Dominion of Canada the whole of the British Possessions on the North American Continent, except the then conterminous Colony of British Colombia. The question therefore presents itself, whether this single Colony should bd excluded from the gpreat body politic which is thus forming itself. On this question the Colony itself does not appear to be unanimous. But as far as ji can judge from the Despatches which have reached mo, I should conjecture that the prevailing opinion was in favor of union. I have no hesitation in stating that such is, also, the opinion of Her Majesty's Ctovernment. They believe that a Legislature selected from an extended area, and representing a diversity of interests, is likely to deal more comprehensively with large questions, more impai*tially with small questions, and more conclusively with both than is possible when controversies are carried on and decided upon in the comparatively narrow circle in which they arise. Questions of purely local interest will be more carefUUy and dis- passionately .considered when disengaged from the larger politics of the country, and at the same time will be more sagaciously considered by persons who have had this larger political education. Finally they anticipate that the interests of every Province of British Nort^i America will be more advanced by enabling the wealth, credit, and intelligence of th<) whole to be brought to bear on every part, than by encouraging each in the contracted policy of taking care of itself, possibly at the expense of its neighbour. Moat especially is this true in the case of internal transit. It is evident that the establishment of a British line of communication betwec the Atia;>tic and Pacific Oceans, is fHr more feasible by the operations of a single V'^vernment rociponsible fbr the progress of both shores of the Continent, ^an by a bargain iv ^c lated between separate, perhaps in some respects rival, Governments tad Legialuturos. The San Francisco of British North America would under these 'jircumstances hold a greater commeroial and political position than woulr^ be attainable by the Capital of the isolated Golonpr of British Columbia. ^ Her Majesty's Government are aware that the distance between Ottawa and Vic- toria presents a real difficulty in the wav of immediate union. But that very difficulty will not be without its adTaiilages if i', renders easy communication indispensable and forces onwards the operations which ar(> to complete it. In any case it is an understood inconvenience and a diminishing one, nnd it appears Air better to accept it as a temporary ■ti.l 4 1874 88 Vic. Mission of Mm, Mr. Walkem, H. miTISH 3n9. ur appoint- d probably )oration of entertain ory of the tps, in the ity to form the North concerned, ' in Coanoil Possessions of British ^ excluded at as f«r as e that ^he bat such is, resenting a tions, more isible when •w circle in ly and dis- try, and at bhis larger ish Nort>» ence of thi contracted at that the nd Pacific >nsible fbr id between The San 1 a greater lie isolated I and Vic- r diflSoulty Qsable and inderstood bemponury m •t*v '^ drawback on the advantages of union than to wait for those obstacles, often more intractable, which are sure to spring ujp after a neglected opportunity. The constitutional connection of^ Her Majesty's Government with the Colony of British Columbia is as yet closer than with any other part of North America, and they are bound on an occasion like the present, to give, for the consideration of the com- munity and the guidance of Her Majesty's servants, a more unreserved expression of their wishes and judgment than might be elsewhere fitting. Tou will, therefore, give publicity to this Despatch, a copy of which I have com- municated to the Governor-General of Canada, and you will nold yourself authorixed, either in communication with Sir John Young, or otherwise, to take such steps as you properly and constitutionally can, for promoting the favourable consideration of this question. It will not escape you, that in acquainting you with the general views of the Government, I have avoided all matters of detail on which the wishes of the people and the Legislature will of course be declared in due time. I think it necessary, however, to observe that the constitution of British Columbia will oblige the Governor to enter personally upon many questions, as the condition of Indian tribes, and the iuture position of Government Servants, with which, in the case of negotiation between two Responsible Governments he would not be bound to concern himself I have, &c., Governor Miugrave, (Signed) GbanviIiLI. (fee, d'c, A'c. -'■ * B. " PROPOSED TERMS." 1. Oantdk shall be liable for the Debts and Lia- bilities of British Columbia existing at tee time of Union. 2. The population of British Columbia shall, for the purpose of financial arrangements, be estimated at 120,000. British Columbia not having incurred debts equal to those of other Provinces now consti- tuting the Dominion, shall be entitled to receive, by half-yearly payments in advance from the Gen- eral GoTernment, interest at the rate of five per centum per annum on the difference between the actual amount of its indebtedness at the date of Daion and the proportion of the Public Debt of Canada for 120,000 uf the population of Canada at the time of Union. 3. The following sums shall be annually paid by Canada to British Columbia for the support of the Local Government and Legislature, to wit : — An Annual Grant of $35,000, and a further sum eqnal to 80 cents a head per annum of the popula- tion, both payable half-yearly in advance, the popu- lation of British Columbia being estimated as afore- said at 1 20,000. Such grant equal to 80 cents a head to be augmented in proportion to the increase of population, when such may be shewn, until the population amounts to 400,000, at which rate such grant shall thereafter remain. 4. The Dominion shall guarantee interest at the rate of five per centum per annum on such sum, not exceeding £100,000, as may be required for the con- struction ol a first-class Graving Doclc at fisquinialt. B. lu addition to the other provisions of this Reso- lution, Canada shall assume and defray the charges of the following Services :— a. Salary and allowances of the Lieutenant* Oovernor ; b. Salaries and allowances of the Judges and Officers of the Supreme Court and of County Courts; e. The charges in respect of the Department of Customs ; d. The Postal Dtpartment ; «. Ligbthouiti, Buoys, Beacons, ud Lightship, c. "ACCEPTED TERMS." 1. Canada shall be liable for the debts and liabili- ties of British Columbia existing at the time of Union. 2. British Columbia not having incurred debts equal to those of the other Provinces now constitu- ting the Dominion, shall be entitled to receive, by half-yearly payments, in advance from the General Government, interest at the rate of five per cent, per annum on the difference between the actual amount of its indebtedness at the date of the Union, and the indebtedness per head of the population of Nova Scotia and New Brunswick (27.77 dollars), the popu- lation of Britiiih Columbia being taken at 60,000. 3. The following sums shall be paid by Canada to British Columbia for the support of its Qovernment and Legislature, to wit, an annual subsidy of 35,000 dollars, and an annual grant equal to 80 cents per head of the said population of 60,000, both half-yearly in advance, such grant of 80 cents per bead to be augmented in proportion to the increase of popula- tion, as may be shown by each subsequent decennial census, until the population amounts to 400,000, at whic!. rate such grant shall thereafter remain, it being understood that the first census be taken in the year 1881. 4. The Dominion will provide an efficient jnall ser- vice, fortnightly, by steam communication between Victoria and Sau Francisco, and twice a week between Victoria and Olympia ; the vessels to be adapted for the conveyance of freight and passengers. 5. Canada will assume and defray the charges for the following services :— A. Salary of the Lieutenant-GoTemor ; B. Salaries and allowances of the Judges of the Superior Courts and the Ooanty or DUtrlot Courts ; C. The charges In respect to the Ocpartmeat of Customs ; D. The Postal and Telegraphie Semect ; E. Protection and Encouragement of FiiheriM ; F. Provision for the Militia ; O. Llghthousee, Bnoys, and Beaeoni, ShipwneM ivr? I iU. J^ission of Son. Mr. Walkm, 1874 •'PROPOSED '—'ConUnuid. and aaeh farther charges as may be incident to and connected with the Services which bjthe " British North America Act, 1867,'* appertain to the Gen- eral OoTornment, and as are or may be allowed to the other Provinces. 6. Snitable pensions, such as shall be approved of by Her Majesty's Oorerpic«nt, shall be provided by the Government of th*^ "^cminion for those of Herlf^esty's servants in i' >' r whose posi- tion and emoluments derived om would be affected by political changes > > admission of this Colony into the Dominion of C . jada. 7. The Dominion Government shall supply an •IBcient and regularly fortnightly steam communi- cation between Victoria and San Francisco by steamers adapted and giving facilities for the con- veyance of passengers and cargo. 8. Inasmuch as no real Union can subsist be- tween this Colony and Canada without the speedy establishment of communication across the Rocky Mountains by Coach Road and Railway, the Domin- ion shall, within three years from the date of Union, construct and open for traffic such Coach Road from some point on the line of the Main Trunk Road of this Colony to Fort Garry, of similar char- acter to the said Main Trunk Road; and shall fur- ther engage to use all means in her power to complete such Railway communication at the ear- liest practicable date, and that Surveys to deter- mine the proper line for such Railway shall be at once commenced ; and that a sum of not less than One Million Dollars shall be expended in every year, from and after three years from the date of Union, in actually constructing the initial sections of such Railway from the Seaboard of British Co- Inmbia, to connect with the Railway system of Can- ada. 9. The Dominion Shall erect and maintain, at Tictoria, a Marine Hospital and a Lnnatic Asylum, either attached to the Hospital or separate, as may be considered most convenient. The Dominion shall also erect and maintain a Penitentiary, or other Principal Prison, at such place in the Colony as she may consider most ■nitable for that purpose. 10. Efficient Coast Mail Steam Service, in connec- tion with the Post Office, shall be established and maintained by the Government of the Dominion, between Victoria and New Westminster, Nanaimo, and such other places as may require such Services. 11. Whatever encouragement, advantages, and protection are afforded by the Dominion Govern- ment to the Fisheries of any of its Provinces, shall be extended in similar proportion to British Colum- bia, according to ita requirements for the time being. 13. British Columbia shall participate, in fair proportion, in any measures which may be adopt- ed, and Funds which may be appropriated by the Dominion for the encouragement of Immigration, 13. British Columbia shall be entitled to be rep- resented in the Senate by Four Members, and by Eight Members in the House of Commons, until the year 18 , and thereafter the Representation in the Senate and the House of Commons shall be in- creased, Bubject to the provisions of the "British North America Act, ifiHf," 14. The Union shall take effect on such day as Her Mi^etty by Order in Council f on an Address to that efhot, in terma of the 146th Section of the >• Britlah North America Act, 1807,") may direct; C. "ACCEPTED tERiia."—ConHnutd. crews. Quarantine and Marine Hospitals, ln> eluding a Marine Hospital at Victoria ; H. The Geological Survey ; I. The Penitentiary , And such further charges as mar be incident to and connected with the services which by the " British North America Act, 1867,'' appertain to the General Government, and as are or may be allowed to the other Provinces. 6. Suitable pensions, such as shall be approved of by Her Majesty's Government, shall be provided by the Government of the Dominion for those of Her Majesty's servants in the Colony whose position and emoluments derived therefrom would be affected by political changes on the admission of British Colum- bia into the Dominion of Canada. 7. It is agreed that the existing customs tariff and excise duties shall continue in force in British Colum- bia until the railway f^om the Pacific Coast and the system of railways in Canada are connected, unless the Legislature of British Columbia should sooner decide to accept the tariff and excise laws of Canada. When customs and excise duties are, at the time of the Union of British Columbia with Canada, leviable on any goods, wares, or merchandizes in British Co- lumbia, or in the other Provinces of the Dominion, those goods, wares, and merchandizes may, from and after the Union, he imported into British Columbia from the Prov; '. .3 now composing the Dominion, or from either of tbose Provinces into British Columbia, on proof of payment of the customs or excise duties leviable thereon in the Province of exportation, and on payment of such further amount (if any) of cus- toms or excise duties as are leviable thereon in the Province of importation. This arrangement to have no force or effect after the assimilation of the tariff and excise duties of British Columbia with those of the Dominion. 8. British Columbia shall be entitled to be repre- sented in the Senate by three members, and by six members in the House of Commons. The represen- tation to be increased under the provisions of the "British North America Act, 1867." 9. The influence of the Dominion Government will be used to secure the continued maintenance of the naval station at Esquimau. 10. The provisions of the '■ British North America Act, 1867," shall (except those parts thereof which are in terms made, or by reasonable intendment may be held to be specially applicable to and only affect onis and not the whole of the Provinces now compris- ing the Dominion, and except so far as the same may be varied by this Minute) be applicable to British Columbia, in the same way and to the like extent as they apply to the other Provinces of the Dominion, and as if the Colony of British Columbia had been one of the Provinces originally united by the said Act. II. The Government of the Dominion undertake to secure the commencement simultaneously, within two years from the date of Union, of the construction of a railway from the Pacific towards the Rocky Moun- tains, aad from such point as may be selected, east of the Rocky Mountains, towards the Pacific, to connect the seaboard of British .Columbia with the railway system of Canada ; and further to secure the comple- tion of such railway within ten years ftom the date of the Union. And the Government of British Columbia agree to convey to the Dominion Government, in trust, to be appropriated in such manner as the Dominioa OoT> ernment may deem advisable in Airtheranoe of the 88 Vfc. Mission of Son. Mr. Walkm, ly. B. "PROPOSED r^RM8."— Continued. c. "ACCEPTED TERMS."— (/otKimwI. uni British Columbia may, in such Address, spe- cify the Districts, Counties, or Divisions, if any, for which any of the Four Senators to whom the Colony shall be entitled shall be named — the Electoral Districts for which — and the time within which the first Election of Members to serve in the House of Commons shall take place. 15. The Constitution of the Executive authority and of the Legislature of British Columbia shall, subject to the r^rovisions of the " British North America Act, IRo. " continue as existing at the time of Union, until altered under the authority of the said Act. 16. The provisions in the "British North America Act, 1867," shall (except those parts thereof which are in terms made, or by reasonable intendment may be held to be specially applicable to and only affect one and not the whole of the Provinces now comprising the Dominion, and except so far as the same may be varied by this Resolution) be appli- cable to British Columbia in the same way and to the like extent as they apply to the other Provinces of the Dominion, and as if the Colony of British Columbia bad been one of the Provinces originally united by the said Act. With reference to Defences : — a. That it shall be an understanding with the Dominion, that their influence will be used to the fhllest extent to procure the continued mainten- ance of the Naval Station at Esquimau. b. Encouragement to be given to develop the efficiency and organization of the Yoiunteer force in British Columbia. construction of the said railway, a similar extent of public lands along the line of railway throughout iti entire length in British Columbia, not to exceed, how- ever, twenty (20) miles on each side of the said line, as may be appropriated for the same purpose by th» Dominion Government from the public landi in the north-west territories and the Province of Manitoba. Provided, that the quantity of land which may be held under pre-emption right or by Crown Graat with- in the limits of the tract of land in British Oolumbift to be so conveyed to the Dominion Government shall be made good to the Dominion from contiguous pub- lic lands ; and provided further, that until the com- mencement, within two years, as aforesaid, flrom the date of the union, of the construction of the said rail- way, the Government of British Columbia shall not sell or alienate any further portions of the public lands of British Columbia in any other way than under right of pre-emption, requiring actual residenee of the pre-emptor on the land claimed by him. In consideration of the land to be so conveyed in aid of the construction of the said railway, the Dominion Government agree to pay to British Columbia from the date of the union, the sum of 100,000 dollars per annum, in half-yearly payments in advance. 12. The Dominion Government shall guarantee the interest for ten years from the date of the completing of the works, at the rate of five per centum per an- num, on such sum, not exceeding £100,000 sterliof as may be required for the construction of a first-claie graving dock at Esquimau. 13. The charge of the Indians, and the trusteeship and management of the lands reserved for their ase and benefit, shall be assumed by the Dominion Got- ernment, and a policy as liberal as that hitherto pur- sued by the British Columbia Government shall be con- tinued by the Dominion Government after the Union. To carry out such policy, tracts of laud of such ex- tent as it has hitherto been the practice of the British Columbia Government to appropriate for that purpose, chall from time to time be conveyed by the Local Government to the Dominion Government in trust for the use and benefit of the Indians on application of t' ^ Dominion Government ; and in case of disagree- ment between the two Governments respecting the quantity of such tracts of land to be so granted, the matter shall be referred for the decision of the Secre- tary of State for the Colonies. 14. The constitution of the Executive Authority and of the Legislature of British Columbia shall, subject to the provisions of the " British North America Act, 1867," continue as existing at the time of the Union until altered under the authority of the said Act, it being at the same time understood that the Government of the Dominion will readily consent to the introduction of responsible Government when desired by the inhabitants of British Columbia, and it being likewise understood that it is the intention of the Governor of British Colombia, unde^ the authori- ty of the Secretary of State for the Colonies, to amend the existing Constitution of the Lprisiature by provi- ding that a majority of its membc', ^.^all be elective. The Union shall take efTect according to the fore- going terms and conditions on such day aa Her Ma- jesty by and with the advice of Her Most Honorable Privy Council may appoint (on addresses from the Legislature of the Colony of British Columbia and of the Houses of Parliament of Canada, in the terms of the 146th section of the " British North America Act, 1867,") and British Columbia may in iti addreii specify the electoral diBtricti for which the first elec- tion of memben to serve in the Home of Oomnont shkU take plMt. V. JUiasim of Hon. Mr. Walkem. 1874 ■ •<>■{ ■ill D. At the Court at Windsor, the 16th day of May^ 1871. PRESENT, The QUEEN'S Most Excellent Majesty. His Royal Highness Prince Arthur. Lord Privy Seal. Lord Chamberlain. Earl Cowper. Mr. Secretary Cardwell. Earl of Simberley. Mr. Ayrton. Whibbai by the "British North America Act, 1867," provision was made for the Union of the Provinces of Canada, Nova Scotia, and Ifew Brunswick into the Dominion of Canada, and it was (amongst other things) enacted that it should be lawfVil ;br the Queen, by and with the advice of Her Majesty's Most Honorable Privy Council, on Addresses from the Houses of the Parliament of Canada, and of the Legislature of the Colony of British Columbia, to admit that Colony into the said Union on such terms and conditions as should be in the Addresses expressed, and as the Queen should think fit to approve, subject to the provisions of the said Act. And it was further enacted that the provisions of any Order in Council in that behalf should have effect as if they had been enacted by the Parliament of the United Kingdom of Great Britain and Ireland. And whereas by Addresses from the Houses of the Pai'liamont of Canada and ftom the Legislative Council of British Columbia respectively, of which Addresses copies are contained in the Schedule to this Order annexed, Her Majesty was prayed, by and with the advice of Her Most Honoidble Privy Council, under the One hundred and forty-six vcrnmont is entitled to the greatest consider- ation for the energy it has hitherto displayed in its desire to faithAiUy carry out the Hailway provisions contained in the Agreement. "Hence the Government of this Province holding these views, and anxious to render all the assistance in its power to the Dominion Government, assumed the responsibility of reserving the belt of land meintioned almost immediately after the receipt of tho Despatch, which is the subject of this Heport. It was, however, expressly f; .yw. MissUm of Hon. Mr, Walkem 1874 ' I understood that the Order in Council creating the reserve should not operate at a con- veyance of the landt within its limits, and that the reserve itself should not be of a permanent character. "The nth Section of the Terms of Union reads as follows :— * The Government of the Dominion undertake to secure the commencement, * * ♦ * within two years from the date of the Union, of the construction of a Railway *from the Pacific towards the Bocky Mountains,' thenqe Eastward, &c. ' The Government of British Columbia agree to convey to the Dominion Govern- ' ment, in trust, to be appropriated in such manner as the Dominion Government may ' deem advisable, in furtherance of the construction of the »aid Railway, an extent of ♦public lands afo»iflr for a conveyance of ' a strip of land ' Twenty miles in width along the ' Eastern Coast of Vancouver Island,' or in other words in the absence of a survey for a strip of the public lands along the sea coast, but not along any defined line of Bailwa^r. " It is respectfully submitted that had a ' line of Bailway ' been defined by a location survey, the Government of this Province would have been notified thereof, and the language of the Despatch, and of the Order of the Privy Council would have been materially different from that used in the present instance. Instead of asking for a conveyance of land along a sea coast, a demand would have been made for a conveyance of cert<\in lands ' along a line of Bailway ' adopted and laid out according to an accom- panying plan, such a demand, it is humbly conceived, would have been in accordance with the spirit and language of the 11th Section. " The term of two years mentioned in the first and second paragraphs of the Section was inserted by the framers of the Terms at a period amply sufficient to enable the Dominion Government to complete the preliminary surveys necessary to determine the ' line of Bailway,' and the Provincial Government agreed to withdraw all its public lands from sale for the like period in order that the first opportunity should be afforded to the Dominion Government of acquiring within the two years and before toe work of construction should commence, the land contiguous to its line of Bailway, as defined {torn time to time. "The two years have expired, and as the claim for the reserve mentioned is not established, it becomes the duty of the Government of British Columbia in the interests of the Province to respectfully press upon the Dominion Government, the necessity of some immediate action being taken to render the valuable belt of land containing an area of some 3,500 square miles of service to the Province. " The undersigned therefore suggests that, as no lino of Bailway has been defined. Your Excellency be respectfully recommended, for the above reasons, to withhold the conveyance to the Dominion Government of the land mentioned in the Despatch; and that the reserve of the said land be continued until a fair opportunity shall have been afforded to the Dominion Government to consider the subject and inforn:) the Govern- m«nt of this Province of its views thereon." The Committee concur in the above Eeport of the Attomey-Genciai, and submit the same for Your Excellency's approval, and if sanctioned, they suggest that a copy of this Order in Council be transmitted to His Excellency the Governor-General. (Certified) W. J. AttMSTBONo, CUrk Executive CowidL 1874 d8 Vic. Mission of Hon. Mr, WaUum. viU. of a H. The Lieutenant- Governor to the Secretary of State /or Canada. Copt, No. 67. GoviBNMiMT Houai, 26th July, 1873. Sib, — I have the honor to state that the Under Secretary of State for the Provinces' Despatch No. 68, of the 10th ultimo, and the copy therewith enclosed of an Order of His Excellency the Governor-General in Council, fixing Esquimalt, on Vancouver Island, as the Terminus for the Canadian Pacific Eailway, and farther deciding that a line of Rail- way be located between Esquimalt Harbor and Seymour Narrows, was duly received and submitted by me for consideration in my Executive Council, and that the strip of land Twenty Miles in width, along the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbor of Esquimalt, specified in the said Order in Council, was accordingly reserved on the Ist July, instant, under the powers and provisions of the 42nd Section of the Land Ordinance of 1870 of British Commbia, and notice of such reservation duly published in the Government Gazette, as appears in the copy thereof herewith enclosed. With further reference to the Under Secretary of the Provinces' Despatch, I have also the honor to enclose herewith, and to request that you will lay before His Excellency the Governor-General, a Minute of my Executive Council convoj'ing the conclusion of this Government that it is not advisable to make, at present, the conveyance applied for in the said Despatch and accompanying Order in Council of the land thei'ein specified, and now held undor reservation, and setting forth the grounds upon which that conclusion is based. I have, &c., (Signed) Joseph W. Tbutoh. J. Secretary of State to the Lieutenant-Governor. Copy, No. 74. 26th August, 1873. Sib,— I have the honor to acknowledge the I'cceipt of your Despatch, No. 67, of the 26th ultimo, referring to the Order of His Excellency the Governor-General in Council, communicated to you on the 10th ot June last, applying for the conveyance to the Dominion Government of a strip of land Twenty miles in width along the Eastern Coast of Vancouver Island, between Seymour Narrows ii.nd the Harbor of Esquimalt, and enclosing a copy of a Minute of your Executive Council on the subject of the said application. Your Despatch and its enclosures, will bo laid before His Excellency the Governor> General in Council. I have, &c., (Signed) E. J. Lanqevin. Under Secretary/ of State. K. Copy of a lleport of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor, on the SOth day of June 1873, On a memorandum, dated 30th June, 1873, fVom the Honorable the Attorney-General, recommending that, for the present, a bare reservation of the Twenty mile belt, lying between Esquimalt Harbor and Seymour Narrows, be made to protect the Government of the Dominion, until the question raised by the Order in Council of the Privy Council of Canada, dated the 7th instant, with its covering Despatch on the subject, of the 10th instant, be more fully discussed and determined; and that the conveyance, in trust, of the said land asked for by the Ottawa Government be for the present deferred, and that the enclosed Notice of Beservation bo adopted, andpublished in a Gazette Extraordinary. (Certified) w . J. Aemsxbong, C^k of the Executive CowicS. \ m IX. Misaiofit of Hen. Mr. Walkem. 1874 L. NOTICE. WhertfM by an Order in Council, dated the 7th day of Juno, 1873, of the Honorable the Privy Council of Canada, it has boon decided " that Esquimalt, in Vancouver Island, "be fixed as the Terminus of the Canadian Pacific llailway, and that a line of Railway '* be located between the Harbour of Esquimalt and Seymour Narrows, on the said "Island;" and whereas in accordance with the Terms of the said Order in Council, application has been made to His Excellency "the Lieutenant-Governor of British " Uoiumbia, for a reservation and for the conveyance to the Dominion Government, in "trust, according to the Uth Paragraph of the Terms of the Agreement of Union, of a « strip of Land Twenty miles in widtn, along the Eastern Coast of Vancouver Island, " between Sejnnour Narrows and the Harbour of Esquimalt, in furtherance of the oon- " struction of the said Bailway." And whereas it has been deemed advisable that the Land, within the limits afore- said, should be reserved, prior to any conveyance aforesaid being made thereof. Public Notice is therefore hereby given, that fVom and after this date, a strip of Land Twenty Miles in width, along the Eastern Coast of Vancouver Island, between Seymour Narrows and th« Harbour of Esquimalt, is hereby reserved. By Command. ProvvMxal Seeretarj/'t Office, JoHN ASH, •/tt^y l«f, 1873. Provnicial Secretarjf The Secretary of State to the Lieutenant'Govemor. ^ . Depabtmimt ov tbk Sko&etakv c7 State fob Canada, Ottawa, 11th September, 1873. Sir, — I have the honor to transmit to you herewith, fur the information of your Government, a copy of an Order of His Excellency the Governor-General in Council, on your Despatch, No. 67, of the 26th of July last, enclosing a Minute of your Executive Council, conveying their conclusion that it is not advisablo to make at present the con- veyance applied for in the letter to you of the 10th of June last. I have, &c., (Signed) J. C. Aikins, Secretary q/ State fm' Canada. Copy of a Report of a Committee of the Honorable the Privy Council^ approved by Hii ExcelUrucy the Governor-General in Council, on the Zrd September., 1878. The Committee of the Privy Council have had under consideration, a Despatch from the Lieutenant-Governor of British Columbia, of the 26th July, 1873, enclosing a Minute of his Executive Council, conveying the conclusion of the Government of British Colum- bia, that it is not advisable to make at present the conveyance applied for in a Despatch of the Under Secretary of State for the Provinces, of the 10th of June. The Committee of the Privy Council have read with great attention the report of the Executive Council of British Columbia, enclosed in the Lieutenant-Governor's Des- patch, and beg to submit, that so long as the lauu -vvhich is referred to is not alienated from the Crown, but hold under reservation, as stated in the Lieutenant-Governor's Despatch, the object of the Government of the Dominion will be obtained, that object being simply, that when the Kailway shall come to be constructed, the land in question shall be at the disposition of the Government of the Dominion, for the purposes laid down in the 11th Section of the Terms of Union with British Columbia. (Certified) W. A. Himswobtii, • Ckrk^ Executive CovmeH. 88 Vic. Mission of Hon. Mr. Walkem. 0. 'I he Lieuteiumi-GwemoT to the Secretary of State. Copy. Oovirnmint Housi, No. 86. 22nd September, 1873. Sib,— With reference to my Despatch, No. 67, of the 26th July last, I have the honor to enclose for the information of His Excellency the Governor-General, a Minute of my Executive Council, urging that the bonndarioa of the land on Yanconvor Island, proposed to be claimed by the Government of the Dominion in trust, to aid the construction of the Railroad, under the Terms of Union of British Columbia with Canada, may be at once defined, and that a competent person in this Province may bo appointed to dispose of Isaid lands, on such terms as will admit of settlement, and anthorizmg the Honorable A. DeCosmos, President of the Executive Council and Premier of my Ministry, to confer with the Government of Canada on this subject. A duplicate of this Despatch and enclosure will be handed to yon by Mr. DeOosmos, who starts to-morrow for Ottawa. I have, &c., (Signed) JosiPH W. TRUTca. F. Copy of a Report of a Committee of the Honorable the Executive Oimncil, approved by His Excellency the Lieutenant-Oovemor on the 20th day of September y 1878. On a Memorandum, dated 18th September, 1873, fVom the Honorable Chief Commis- sioner of Lands and Works, reporting that the Order in Council of the 30th June, 1873, reserving Crown Lands on the East Coast of Vancouver Island, ia seriously retarding the settlement of that portion of the Province; and recommending that, in view of the fact that the Despatch fVom His Excellency the Lieutenant-Governor to the Secretary of State, transmitting the Minute of this Executive Council, dated 25th July, 1873, upon the subject of this reservation, has not as yet been replied to, and as the matter requires immediate settlement, that the Dominion Government be respectfully urged to at once define, by survey, the land they propose claiming on the East Coast of Vancouver Island; and that they appoint, also, a competent person in this Prov nre to dispose of said lands on such terms as will admit of settlement; and that the Hun i.\ii>lo Amor DeCosmos, as Special Delegate, about to proceed to Ottawa, bo authorized to confer with the Dominion Government upon the subject. (Certified) W. J. Abmstbong. Vfcr4 ExecHtlve Oowicil. ii The Secretary of State to the Lieutenant-Oovemor. Copy. Ottawa, 8th October, 1873. Sib, — I have the honor to acknowledge the receipt of your Despatch of the 22nd ultimo, on the subject of the occupation of lands reserved by the Dominion Government, and to state that the same will receive due consideration. I have, &c., (Signed) Edouabd J Lanqiyin Under Seerttary of State. I Mission of Hon, Mr. Walkem, 1874 Copy of an Order in Council of this Province, dated July 25n to bo taken thereon. In accordance, therefore, witli the advice of my Ministers, I beg that you will be good enough to lay this Despatch and its Enclosure before His Excellency the Governor- General, and to recommend to His Excellency's favorable consideration, the representa- tions and urgent requests of the Government and Legislature of Bri^;iah Oolumbia herein set forth. I have, &c., (Signed) Josbpb W. Tkutoh. 1874 88 Vic, Missim of Bon. Mr. Walkem. XIV. »lieve hope you Z. The Secretary of State to the Lieutenant- Joveimor. Ottawa, 12th March, 1874. Sa, — I have the honor to acknowledge the receipt of your Despatch, No. 9, of the 25th ultimo, covering a copy of an Address of the Legislative Assembly of the Province of Br' -1 Columbia, and of a Minute of your Executive Council founded thereon, on the subject of the non-fulfilment of the 11th Section of the Terms of Union of the Province to the Dominion. Your Despatch, and its enclosures, will be submitted for the consideration ol His Excellency the Crovemor-Genoral. I have, &c., (Signed) E. J. Lanokvin, Under Secretary of State. AJ!l. Letter of Litrpd^icimifrom the Hon. A. Mackenzie, to the Hon. Q. A, Walkem, Ottawa, February 19th, 1874. DsA/i Sir, — ^AUow me introduce Mr. James D. Edgar, of Toronto, who visits your Provinoa on public business for the Government. Mr. E'lgar will confer with yourself and other members of the Government of Columbia on the questions lately agitating the public mind in Columbia, and will be glad to receive your views regarding the policy of the Government on the construction of the Hallway. But for the meeting of Parliament in four weeks, some member of the Government would have visited your Province, but Mr. Edgar, as a public man, is well known here, and Mly understands the question he will discuss with you. I need not, I am sure, assure you of my own sincere desire to do all I can to not only act justly but generously to Columbia. It is in your interest, and in the interest of the Dominion, that we should both act with a reasonable appreciation of difficulties which are unavoidable, and to devise means to remove them or overcome them. We have induced Mr. Edgar to go to Columbia, as we thought you would prefer a full conference with an agent to a tedious, an J ,> ossibly uusatiafactory, correspondence. I ha- -ji, &c., (Signed) A. Maokknzi>. BB. Copy of a Jleport of a Committee of the Honorable the Executive Council, approved by Hia .Excellency the Lieutenant-Governor on the 1th May, 1874. On a memorandum dated 7th May, 1874, from the Honorable the Attorney-General, rooommending that His Excellency tiie Lieutenant-Governor be requested to telegraph to His Excellency the Governor-General for a reply by telegram, containingfuU informa- tion of the Kailway policy of the Dominion Government, cKr«ecially as it affects British Columbia, and whether it is true that the Premier has publicly stated in the Commons that the Dominion Government do not intend to commence i-ailway construction this year, in this Province. The Committee advise that the rccommetidation bo approved. * (Certified) W. J. Abmstbonq, Miniai.r of fXnnncc and A(/ricultur€f and Ckrk of the ExtetUivc Council, XV. Mission of Hon. Mr. Walkem. 1874 CC. Telegram. ViCTOBiA, May 7th, 1874. To the Honorable the Secretary of State for Canada, Ottawa, Canada. It being reported hero to-day that the Premier stated in the House of Commons, on t' 4th inst., that construction of Railway in British Columbia would not be commenced t lis year, this Government urgently requests to be fully informed immediately, bjr tele- graph, of particulars of policy adopted by Dominion Government respecting Railway Clause of Terms of Union. (Signed) Joseph W. TEUTcn, Lieuienant- Governor. DD. Telegram, Ottawa, Owtakio, May 8th, 1874. Lieutenant-Govemor Trutch. Mr. Mackenzie simply said, that until the locatio:i of the road was ascortainec* it was impossible to commence construction ; that a largo surveying force was now at work, and there was no reason to believe that it would be possible to complete the survey before the close of year. (Signed) R. \V. Soott, Secretary of State, EE. Mr. J. !>. Edgar's Letter to the Hon. G. A. Walkem. Victoria, B. C, May 8th, 1874. Sib, — I have the honor to inform you that I have been instructed, by the Premier of Canada, to make you aware of the views of his Administration upon the subject of the construction of the Canadian Pacific Railway, in order that British Columbia may have fViU opportunity of considering and deciding upon a question so closely affecting her material interests. The scheme originally adopted for the carrying out of this work has, for a variety of reasons, proved unsuccessful, and to devise a plan for its more certain accomplishment has been the aim of the Dominion Cabinet. The chief difficulty to be encountered in attempting to carry out the existing system of construction, is to be found in the stipulation as to tho completion of the Railway by the month of July, 1881. In proposing to take a longer time for constructing tho Railway, the Canadian Government are actuated solely by an urgent necessity. They are advised by their Engineers that the physical difficulties are so much greater than was expected, that it is an impossibility to construct the Railway within tho time limited by the Terms of Union, and that any attempt to do so can only result in wastef\i! expenditure and financial embarrassment. It is because they desire to act in good faith towards British Columbia, that the Canadian Ministry at once avow the difficulty of carrying out the exact Terms of Union, whilst they have no desire to avoid the full responsibility of Canada to complete tho Railway by all means in her power, and at the earliest practicable date. The eleventh article of the Tcinns of Union embodies the bald proposition that the Railway should be commenced in two, aid completed in ten years, from the date of Union, to connect tho seaboard of Britisli Columbia with the railway system of Canada. Feeling tho impoBsibility of complying with this time limit for completion, tho Qovem- mont IB prepared to mako new stipulations, and to enter into additional obligations of a 1874 88 Tie, Mission of Hon. Mr. Walkein, xvl. definite character, for the benefit of the Province. Thoy propose to commenco con- gtruotion from Esquimalt to Nanaimo immediately, and to push that portion of Bailway on to completion, with the utmost vigor, and in the shortest practicable time. The engineering difficulties on the Mainland have unfortunately turned out to be BO serious, that fUrthcr surveys must necessarily be made before the best route can be deiermined upon. The Government have already asked Parliament for a large sum for the purpose of carrying on these surveys, and no expenditure will be spared to achieve the most speedy and reliable seleciion of a permanent location of the line upon the Mainland. It is useless to propose an actual construction being undertaken before the location has been determined upon ; but in order to afford as much benefit fvova the works of construction from the very first as can possibly be derived by the people of the interior, the Government would immediately open up a road, and build a telegraph lino along the whole length of the railway in the Province, and carry the telegrapn wire across the Continent. It is believed that the mere commencement to build a railway at the seaboard, as stipulated tor in the existing tei*ms, would give but little satisfaction to the producers living uiioa the east side ot the Cascade Mountains, who would be unable, without a road being first constructed, to find a market all along the whole extent of the railway wherever construction was progressing. It would then be the aim of the Government to strain every nerve to push forward the construction of the railway, — and they would endeavour at the same time, so to arrange the expenditure, that the legitimate advantages derivable from it, would as much as possible fall into the hands of our producers. In addition to conRtructing the road to facilitate transport along the located lino, they are anxious to avail of the large supplies of all kinds of pro- visions now existing, or capable of being pi'oduced in the interior, and would proceed from the very first with all the works of construction in that portion of the country that their engineers could sanction. It is to be observed that while the Ter' - of Union contemplated the completion of the whole railway within a certain number oi years, they made no provision for any certainty of expenditure in any particular time, or ou any particular portion of the line. To predicate the highest expenditure, which in any one > ear might bo warranted in a particular portion of a great work like this, is certainly difficult; and it is still more difficult to arrive at the lowest fixed annual sum, which, in ever j'ear, an I under all cir- cumstances, might be Judiciously expended as a minimum in local consti action. To a country like British (Jolumbia, it is conceded, however, to be an important point that not only the prompt and vigorous commencement, but also the continuous prosecution of the work of construction within the limits of the Province should be guaranteed. In order therefore to secure an absolute certainty in this direction, and alt hough the length of the line falling within the Province is estimated at only about one-fifth of the whole length, the Dominion Government are disposed to concede to British Columbi'a that the moment the sui-veys and road on the Mainland can bo completed, there shall be in each and every year, and even under the most unfavorable circumstances, during the construction of the railway, a minimum expenditure upon works of construction within tin Province of at least one million five hundred thousand dollars. That this will secure the continuouB progress of the works in the Province, without any intermission, is quite apparent, and it must also be perfectly clear that so largo an annual sum could not bo expended by any Dominion Administration in a remote district, without holding out to the country some early prospect of a return for it, and at the same time showing that they were proceeding with the works with sufficient rapidty to bring the investment into an early condition to earn something. In reference to this point, I may be permitted to refer to the fact that the Delegates from British Columbia, who negotiated the Terms of Union, were instructed by the Provincial Legislature to accept an undertaking from Canada to build the rail- way, with a guaranteed annual expenditure in the Province upon construction, of one million of dollare to begin at the end of three years after Union. We must assume that this guarantee of continuous construction was only abandoned by the Delegates upon a conviction of both the sincerity and feasibility of the offer of early completion that was made to them. T trubt that the proposals of the Dominion Cabinet, which I have sketched above, w''' bj considered and accepted by British Columbia, as an earnest effort on the part of the former to carry out the spirit of the obligations to the Province. The leader of the Canadian Government has instructed me to place these matteia before yon, as leader of the Provincial Administration, and at the same time to ftimiah C ztU. Misiim of Hon. Mr, Walkem. 1874 a copy to His Excellency the LientenaQt-GrOTernor. The sabatance of these proposals has oeen sent to me by telegraphic cipher, and based upon that, I have the nonor of oommanicating them to you. The Dominion Government would be slad to have the consideration of this proposal entertained by your Administration, anato learn the con- clusion of the Government of British Columbia upon the subject. I have, &c., (Signed) J. D. Edoab. PF. Hon. G. A. Wtdkeni to Mr. J. D. Edgar. ' Attobnet-Gxnsral's Dbpabtbocnt, YiOTORiA, May llth, 1874. Sib, — ^I have the honor to acknowledge the receipt, on Saturday, the 9th instant, of your letter of the previous day's date. In reply to your roquest, that I should submit your proposals for a change in the Bailway Clause of tte Terms of Union to the Local Administration, for their considera- tion and acceptance, I have the honor to inform yon that i am not in a position to advise His Excellency the Lieutenant-Governor in Council ti treat such proposals ofiScially ; nor can I tender such advice until I shall have been informed that you have been specially accredited to act in this matter as the Agent of the General Government, and tnat they will consider your acts or negotiations in the matter binding upon them. I have, &c., (Signed) G. A. Walkim, Attorney-General. GG. Oopy of a Report ufa Committee of the Honorable the Executive CbunctY, approved by His Excellency the Lieutenant-Governor on the XBth May, 1874. On a memorandum, dated 16th May, 1874, from the Honorable the Attorney-General, recommending that His Excellency the Lieutenant-Governor be respectfully requested to ascertain by telegraph, fVom the Honorable Secretary of State, whether any propo- sitionspurporting to be, or to have been, made bjr James D. Edgar, Esquire, on oebalf of the Dominion Government, will be considered binding by them ; and, further, whether he has any power to enter into any negotiations with this Government. The Committee advise that the recommendation be approved. (Certified^ W. J. Abmstrong, Minister of Finance nnd AgricuUure, and Clerk of the Executive Oouncil, HH. Mr. J. D. Edgar to the Hon. G. A. Walkem. ViOTOBiA, May 18th, 1874. Sib,— I have the honor to acknowledge having received your letter of the llth inst., just before leaving for the Mainland. I am sure vou cannot have forgotten that letters fh)m the highest dignitaries at Ottawa which nave been long ago delivered by me, both to ^in Excellency the Lieuten- ant-Governor and to yourself; have informed you that I came to this Province on behalf of the Dominion| Government, and possessing their entire confidence. In my com- maniMtion of the 8th inst., I stated most difftinctly that I was making the propotalr 1874 38 Vic. Mission of Hon. Mr. Walkem, zvuu ^ossls or of e the e con- contained in it by the instructions and on behalf of the Canadian Ministry. Ton have, however, done me the honor of assuming that my statement was incorrect, and that I am acting without authority and without instrnctiuns. I can afford to pass over Avith- ont notice the personal insinuations, but I must most strongly protest against such extraordinary trfcv.tmont of a document which emanutes from the Government of Canada, upon a subject of such deep and pressing moment to British Columbia. I have, therefore, the nonor to request that the proposals of the Dominion Govern- ment may receive the consideration at the hands of the Provincial Administration to which such communications are entitled, and which the extreme importance of the subject demands. I have, &c., (Signed) J. D. Edoar. JJ. . ' Hon. G. A. Walkem to Mr. J. D. Edgar. ,u'-l.l J. VicTOBiA, May 18th, 1874. Sir, — In reply to your letter of this date, I must express my surprise and regret that you should have taken umbrage at the contents of my letter of the 11th instant. Mr. Mackenzie in an unofficial — and in his only — letter to me, respecting your visit, has expressly narrowed and confined the object uf your mission to the holding of ft personal interview with my colleagues and myself, in order that our "views regarding " the policy of the (iovernment on the contjtructiun of the Bailway " should be ascer- tained Avithout " tedious and possibly unsatisfactory correspondence" — I quote his words. These things having been done, the special aim desired, I may be permitted to think, has been attained by Mr. Mackenzie. When, however, you proceed further, and propose changes to this Government of the gravest importance to the Province, I must be pardoned for considering it my duty, in my public capacity, to ask for your official authority for appearing in the role of an agent contractin:; for the Dominion of Canada. This information I have not yet received. I have, &c., (Signed) Geo. A. Walkem. Tdegram. YiCTOBiA, 18th May, 1874. The Hon. k. W. Hcott, Secretary o/ StaU, Ottawa, Canada. My Ministers reqaest to be informed whether Mr. Edgar is empowered to negotiate with this Government, and whether propositions purporting to be made by him on behalf of the Dominion (Government, will be considered bindingby that Government. (Signed) Joseph W. Tbvtoh, ^ Lieutenant' Govemw' ' LL. ' . Telegram. t t , Ottawa, May aoth, 1874. To LieuttnmU-Oovertic Trutch : — I refer Ministry to my letter by Mr. Edgar, which sulBciently indicated his misrion, and which they recognised. He is now recalled, and I await his return and reports. (Signed) A. Maokbhzu. t f 'I \ XIZ. Mission of Hon. Mr. Walkem. 1874 MM. Tdegram. YiOTOBiA, May 21st, 1874. MoH. A. Mncienzie, Ottawa. Will you kindly answer Governor's telegram folly. Do Mr. Edgar's propositions to chance railway terms bind your Government. * -^ (Signed) Gro. A. Walkkm. Cdpyofa Beport of a OmmiUee of the Honorable the Executive Ooitncit, approved fry His Excellency the Lieutenant-GoveniOT, on the 21st day of May^ 1874. The Committee of Conncil have had under consideration the subject of the non- fulfilment, by the Dominion Government, of the 11th or Baihvay Clause of the Terms o Union ; and, in view of the importance of the question as affecting the whole Province, they recommend that a letter of Mr. J. D. Edgar, dated 8th May, 1S74, addressed to the Honorable Attorney-GtonenU, and the Orders in Conncil, the Telegrams, and the corres- pondence relating thereto, be published for general information. The Committee remark that the letter alluded to by Mr Edgar as having been delivered by him to Your Excellency, is the only document bearing on the subject which will not be published. This letter they have never seen, nor have they any farther knowledge of it beyond the reference made to it by your Excellency as a letter received by you from His Excellency the Governor-General marked " private and confi- dential," and therefore not communicated to the Conncil. (Certified) W. J. Armstrono, Minttter of Finance and Agriculture, and Glerk of the Executive Council. 00. Telegram. Ottawa, Ontauiu, June 8th, 1874. To Lieutenant-Govemor Trutch. Seceived at Victoria, J""nc Sth. On May Sth, Mr. Edgar, on behalf of the Dominion Government, made certain pro- posals to your Government respecting the construction of the Pacific Railway, which involved immediately heavy expenditure for purchases (purposes) not contemplated by the Terms of Union — in consideration of foregoing the limit of the time for the comple- tion of the Railway. I exceedingly regret that your Government have' not replied to the proposals, or apparently considerea them. I beg, therefore, that you will now inform your Ministers that the proposals are withdrawn. ^ (Signed) A. Maokknzie. PP. Cbpy of an Order in GouncUy approved by His Excellency the Lieiitentant-Govemar, 9th June, 1874. On a memorandum of the 9th day of June, 1874, reporting ma Telegram, laid before this Conncil by His Excellency the Lieutenant-Governor, yesterday received by him, from the Honorable Alexander Mackensie, Premier of the Dominion of Canada, /copy of which is enclosed) respecting certain proposals in writing, made on the Sth of , May last by Mr. Edgar to Mr. Wfukem, and recommending that His Exoellenoy be refpeotftaUy requested to send the enclosed telegraphic message in reply thereto. The Committee advise that the reoommendation be approved. (Signed) Gn>. A. Walum, I^fideni, Executive CouneU, 88 Vie. Mission of Hon. Mr. Walkem. XX. QQ. leUgram. ViOTOBiA, Jano 9th, 1874. The Hm. R. W. Scott, Seerftary of State, Ottatca, Canada. My Ministers request me to state, in reference to a Telegram to me from Mr. Mackenzie, dated yesterday, that it conveys the first direct information to this Govern- ment, (although such information was formally applied for by Telegram to you of 18th May,) that the views on the Railway question, contained in a letter from Mr. Edgar to Mr. Walkem, were proposals to this Government from the Dominion Government, and that they consider it remarkable that the only communication to this Government which acknowledges such proposals authoritative should at the same time withdraw them. (Signed) Joseph W. Trutch, Lieutenant-Governor. RR. , Extractfrom the Montreal Weekly Gazette, Map 15th, 1S7 4. " They were quite aware that the difficulties to be suimounted were extensive, and they were quite aware that the terms of the agreement with British Columbia had been violated. Under these circumstances they thought that in the meantime the first step to be taken, was to confer with the Local Government of the Province of Britisr. Columbia, and endeavour to ascertain from them if anj- means could bo aiTanged by which an extension of time could be procured for the prosecution of the work wo wore bound to undertake. With that view an agent was sent as a representative of this Government to visit that Province, and in the course of his communications with the Local Government, it became very ai)parcnt, as it had been made apparent in the House by several Members from the Island of Vancouver, that it was an exceedingly important matter with them to have the road commenced at once. He, for one, was quite willing, if the Local Government was disposed to make some terms for the extension of time, that the Government should undei'tiike the construction of the land portion as rapidly as possible, but if it became apparent that the Local Government were determined to adhere to the whole terms, then the Dominion of Canada could accede to the terms, and nothing more. They instructed Mr. Bdgar to say that the Government would be prepared immediately to undoi*take the commencement of the work on the Island, traversing north- wards towards the point of crossing; prosecuting tho surveys on the mainland, getting a passable route along the ridge; and erecting telegraph lines. He was also instructed to state that as soon as tho work sculd be placed under contract, they would spend no less than $1,500,000 within the Provirce on tbe railway. He did not know whether this had been accepted or not, but nr.cier any circumstances thepr should have authority to proceed with the work, as they thought would moot the just expectations of thr country and the reasonable expectations of the people in British Columoia. The policy he had announced in his election address in November last had been closely criticised by the honorable gentlemen opposite. He had his own impression as to the course to be pursued, and he thought, if no recollected rightly, that the right honorable gentle- man opposite had said that if his views were adopted, British Columbia would be justi- fied in seceding from the Union." fi APPENDIX To the Report on the aiibject ot the mission of the Honorable Mr. Walkem, Special Agent and Delegate of the Province of British Columbia to England, with regard to the non-fulfilment by Canada of the Railway Clause of the Terms of Union, being papers relating to the above subject laid before the Senate and House of Commons of Canada. By Command. JOHN ASH, Provincial Secretary's Office, Provincial Secretary. ' 20th March, 1875. MESSAGE. DUFFBRIN. The Governor-General transmits, for the information of the Senate and House of Commons, copies of a Corre^ondence which has taken plaue an the su^ect of the non-fulfilment of the Terms of ITnion with the Province of British Columbia. Government House, Febiniary, 1875. TERMS OF UNION— BRITISH COLUMBIA. SCHEDULE OP DESPATCHES, &c. Lieutenant-Governor, British Columbia, 26th July, 1873. Lieutenant-Governor, British Columbia, 25th February, 1874. Lieutenant-Governor, British Colutabia, (Tel.) 8th May, 1874. Governor-General, 26th December, 1873. Secretary of State for the Colonies, 15th January, 1874. Minister Public Works, lOth and 2l6t February, 1874. Governor-General, 15th May, 1874. Governor-General, 16th May, 1874. Secretary of State for the Colonies, 18th June, 1874. Secretary of State for the Colonies, (Tel.) 18th Juno, 1874. Governor-General, 9th July, 1874, J. D. Edgar, 17th June, 1874. Privy Council, 8th July, 1874. Governor-General, 9th July, 1«74. Governor-General, 18th July, 1874. Governor-General, 22nd July, 1874. 18. Governor-General, Slst July, 1874. Governor-General, 31st July. 1874. Secretary of State for the Colonies, 16th August, 1874. .. Governor-General, 2l8t August, 1874. 17. 18. Governor-General, 18th September, 1874. 19. Secretary of State for the Colonies, 17th November, 1874. 20. 21. Governor-General, 18th December, 1874. 22. Secretary of States for the Colonies, 4th January, 1875. lA. Lieutenant-Governor, British Columbia, 3l8t March, 1874. 2a. Lieutenant-Governor, British Columbia, 18th May. 1^-74. 4a. Minister of Public Works, (Tel.) 8th June, 1874. 8a. Lieutenant-Governor, British Columbia, 11th June, 4, 5a. Minister Public Works, (Tel.) 28th May, 1874. 6, 7a. Honorable G. A. Walkem. 13th July, 1874. 8a. Honorable G. A. Walkem, 4th July, 1874. 9a. Mr. W. Buckingham, 4th July, 1874. A. B. C. 1. 2. ?• 4. 5. 6. 7. 8, 5f- iO. M. 12, 14. 15. 16. 1874. Appendix— -Mr. WalkenCs Mission. 1874 (A.) The LieutenanUOovemor to the Secretary of State for Canada {already printed^ marked S., page xi., JVb. 5— Mr. Walkem's mission.) Copy ^ a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor on the 25th Jidy, 1878 {already printed, marked R., page xi., iVo. 5— Mr. Walkem's mission.) The iMUtenant-Govemor to the Secretary of State for Canada {already printedy marked IT., page xi., No. 5— Mr. Walkem's mission.) of a Report of a Committee of the Honorable the Executive Council, approved by ~ w Excellency the Lieutenant-Governor on the 22nd November, 1878 {already printed, markedy.,page xii.. No. 5— Mr. Walkem's mission.) The Secretary of State for Canada to Lieutenant-Governor. Sir, — I have the honor to acknowledge the receipt of ^our despatch, No. 96, of the 24th ultimo, enclosing, with reference to your previous despatches on the Buhject, a further minute of your Executive Council respecting the non-fulfilment hy the Dominion Government of the 11th Article of the "Terms " of the Union of British Ck>lumbia with Canada. In reply, I have to inform you that the subject will receive the consideration of the Oovemment. I have, Ac, Copy of a Report of a Committee of the Honorable the Privy Council, approved by His Excellency the Governor- General in Council on the 2Zrd December, ISTS. The Committee have had under consideration the despatch dated 24th November, 1873, from the Lieutenant-Governor of British Columbia, enclosing a further minute of his Executive Council, referring to the non-fulfilment by the Dominion Government of the 11th Article of the Terms of Union of this Province with Canada, and stating that in accordance with the advice of his Ministers ex- pressed in this minute, he requests that this despatch, and its enclosure, be laid before Your Excellency, together with the previous minutes of his Executive Council on the same subject, which were forwarded for consideration in his despatches, No. 67 and No. 68, of the 26th of July last, the latter of which, conveying a protest from that Government on the fiiilure of the Dominion Government to secure the commencement within two years from the date of Union, of the construction of a railroad from the Pacific towards the Rocky Mountains, as provided in the 11th Article of the Terms of Union, he states is yet unanswered, and requesting Your Excellency to communicate to that Government, in whatever manner may be deemed advisable, in time to meet the requirement of tl e desire indicated by his Ministers, the course intended to be taken by the Dominion Government in fulfilment of the 11th Article of the Terms of Union of that Pro\ince with Canada. The Committee of Council respectfully recommend that the Lieutenant- Governor of British Columbia be informed that this Government is giving its most earnest consideration to the project for the construction of the Pacific Railway, an outline of which was given in the speech delivered by Mr. Mackenzie at Sarnia, on the 25th November, a scheme which they believe will be acceptable to the whole Dominion, including British Columbia, and that they hope to be able, within a short time, to communicate more definitely with that Province on the subject. Certified. (Signed) W. A. HlHSWORTH, ClkrA Ftivy Counoil. 88 Txc. Appendix— Mr. Walkem^a Mssion. The Secretary of State for Canada to the Lieutenant-Governor. (690-246.) Department, Secretary of State, 20th December, 1878. 28Td Docotnbor, 1878. Sir,— Adverting to your Despatches, Nos. 68 and 96, of the 26th July and 24th November last, respectively, I have the honor to transmit to vou »". herewith, for the information of your Government, a copy of an Order of Ilia Excellency the Governor-General in Council on the subject of the alleged non-fulfilment by the Dominion Government of the 11th Article of the Terms of Union of the Province of British Columbia with Canada. I have, &c., I'he Lieutenant-Governor to the Secretary of State for Cktnoula. (No. 4.) British Coldmbia, Government House, 21st January, 1874. Sir, — I have the honor to acquaint you that I have duly received and laid before my Executive Council your despatch of the 80th ultimo, and the copy there- with enclosed of an Order of His Excellency the Governor-General in Council, on the subject of the non-fulfilment by the Dominion Government of tiie 11th Article of the Terms of Union of this Province with Canada. I have, &c., (Signed) Joseph "W. Trutch. (B.) The Lieutenant-Governor to the Secretary of State for Canada {already printed, marked Y., page xiii., No. S^Mr. Walkem's missim.) Copy of a Heport of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor, on the 28rd February, 1874. The Committee of Council have had under consideration an Address of the Legislative Assembly of the 9th instant, respecting the breach of the railway clause contained in the Terms of Union. On the 25th July last, and again on the 24th November last, strong protests and renrfisentations on the subject of the Address were forwarded to the Dominion Government, but no reply of an assuring character has yet been received by the Province. The result of this silence has been one of painhil and growing dissatis- ittction. The Committee feel that a strong but respectful protest against the course par- sued by the Dominion Government should be once more forwarded to His Excellency the Governor-General. The Committer recommend that should this their report be approved of His Honor the Lieute.iant-Governor be respectfully requested to cause a copy of the Address to be forwarded to His Excellency the Govenior-General, with a request that he will be pleased to order immediate action to bo taken thereon. The Committee advise that their recommendation be approved of. Certified. (Signed) W. J. Armstrong, Clerk Executive CouncU. ■i ■■' Appendix — Mr. WaUcem'a Mission. 1874 Address of the Legislative Assembly of British Columbia to the LieutenmtrOovcmor. To His Honor the Honorable Joseph "William Tkutcii, Lieutenant-Oovemor of (he Province of British Columbia. «« May it please Your IIonok : — Wo, Her Majesty's dutiful and loyal subjects, " the Legislative Assembly of the Province of British Columbia, in Parliament "asBombled, bee leave to approach Your Honor with our respectful request that '* Yc ur Honor will be pleased to take into consideration the following Resolution of ** the House: — " Whereas, on the 20th July, 1871, the Colony of British Columbia was united *' to and became part of the Dominion of Canada, in accordance with certain terms; "and whereas by Section 11 of the saici Terms, the Government of the Dominion " undertook to secure the commencement, simultaneously mthin two years from "the date of Union, of the construction of a railway from the Pacific towards the " Rock}' Mountains, and from such point as may be selected east of the Rocky "Mountains towards the Pacific; and whereas the two years therein referred to " expired on the 20th Julv last, and the construction of the said railway was not " then, and has not since been commenced, causing thereW serious loss and iniury "to the people of this Province, be it therefore Jicsolved, That an humble Address " be presented to His Excellency the Lieutenant-Governor, respectfully requesting " him to protest on behalf of the Legislature and people of this Province against "the infraction of this most important clause of the Terms of Union, and to impress "upon the present administration the absolute necessity of commencing the actual " construction of the railway from the seaboard of British Columbia early in the " present year." (Signed) J. Roland Hett, 9th February, 1874. Clerk of the Assembly. The Secretary of State for Canada to the Lieutenant-Govei'nor {already printed, marked Z., page xiv., No. 5 — Mr. Walkem's mission.) (C.) TeUgram — Lieutenant-Governor to the Secretary of State for Canada {already printed, marked CC, page xv., No. 5 — Mr. Walkem's mission.) leUgram — Secretary of State for Canada to Lieutenant-Oovemor {already printed, marked DD., 2)age xv., No. 5 — Mr. Walkem's mission.) (1.) The Governor-General to the Earl of Kimbcrley. (No. 301.) Ottawa, December 26th 1878. My Lord, — I have the honor to enclose, for your information, a copy of a despatch from the Lieutenant-Governor of Britinh Columbia to the 24tb March. Secretary of State of Canada, fonvarding a minute of his Executive Council referring to the uon-iulfilmcnt on the part of the Government of the Dominion, of the 11th Article of the Terms of Union with that Province, in respect to tlie construction of the Canada Pacific Railway. I also beg to transmit copy of a reix)rt of a Committee of the Privy Council of the Dominion, on the above mentioned despatch, stating that my 23rd December. Government is giving its most earnest consideration to the project for the construction of a Railway to the Pacific. I have, &c., (Signed) DuFFERiN. 1874 38 Vic. Appendix — M: Walkem's Mission. i Oopi/ of a Seporf of the Honorable the IMi\i/ Council, appvorcd h;i Hix Excellcnnj the Govemor-Ocncral in Council, on the 2Srd December, 1873, {already printed^ page 2 of this Report.) The Lieutenant-Governor to the Hccrelar;! of State for Canada {already printed, marked U., page xi., iVo. 5 — Mr. WalkenCs mission.) Copy of a Jieport of a Committee nf the Jlmorahle the Erccutioe Council, approved by His Excellenrif the Lieulcnunt-Gorernor, on the 22ni/ flay of November, 1878, {already printed, marked \.,pa(je x\\.,No.b—Mr. Walkem's mission.) I,.,,'. . , The Earl of Kimberley to the Earl of Dufferin. " I,., , Downing Strket, ■ 15th January, 1874. My Lord, — I have the honor to acivuowlcdgo the receipt of your despatch. No. 891, of the 26th of December, enclosing a cojty of a dcspatcli from the Lieutenant- Governor of Britisli Columbia, with a copy of a minute of hirf Executive Council, referring to the non-fulfilment, on the part of the Canadian Government, of the 11th Article of the Terms of Union between that Province and Canada in respect to the construction of the Pacific Railway. I have, &c., (Signed) Kimberley. ' '=^ - ■ (2J) Mr,, Mackenzie to Mr. Edgar {Confidential — Copy 3,494.) • Ottawa, February 19, 1874. My Dear 8ir, — In your conversations \vith leading men in and out of the Government in Columbia, it will be well to let them understand that in proposing to take longer time than is provided in constructing the railway, we are actuated solely by an urgent necessity. That wo are as anxious as possible to reach the object sought by all — the early construction of the road. We are, however, advised by our Engineers, that it is a physical impossibility to construct the road in that time — that is within the time jirovided in the Terms of the Union — and that any attempt to do so can only result in veiy gi'eat useless expense and financial disonlcr. Y'ou i^an point out that *!ie sm'veys for the Inter- colonial Railway were begun in 18G4, and the work carried on uninterruptedly ever since, and although the utmost expedition was used, it will require still eighteen months to complete it. If it requires so much time in a settled country to build 600 miles of railway, with farilitics everywhere for procuring all supplies, one may conceive the time and labor required to construct a line five times the lengtn through a country all but totally unsettled. You will point out that it is because we desire to act in good faith towards Columbia, that we at once avow our inability to cai-ry out the exact conditions of the Terms of Union. That it would have been an easy mat{er for us to have said nothing about it, or carelessly to have assumed the task of finishing the road before the month of July, 1881. Acting from a desire to deal frankly and honestly with Columbia, we considered what wo could do to afford, at the crliest possible date, some means of travel across the continent, iireliminary to and in advance of a com- plete line of railway. . Appendix— Mr. Walkem's Mission. 1874 You will point out that, as part of the Dominion, it is as much in their interest as ia ours to pursue a cftreful, judicious policy; also, that in assuming a disposition in spite of all reason to insist on impossibilities, xhey are only setting at defiance all the rest of the Dominion and the laws of nature. That by insisting on the "pound of flesh," they will only stimulate a feeling on the part of people generally to avoid in the future gi^ng anything but the "pound^of flesh." You will remember that the Dominion is bound to reach the seaboard of the Pacific only, not Victoria or Esquimalt, and you will convey an intimation to thorn that any further extension beyond the head waters of the Bute Inlet, or whatever other portion of the sea-waters may be reached, may depend entirely on the spirit shown by themselves in assenting to a reasonable extendon of time or a modifica- tion of the terms originally agreed to. You will also put them in remembrance of the terms they themselves pro- posed, which terms were assented to by their Local Le^slature, and point out that it was only the insane act of the Administration here which gave such conditions of Union to Columbia; that it could only have been because that Administration sought additional means of procuring extensive patronage immediately before the general election, and saw in coming contests the means of carrying the elections, tiiat the Province obtained on paper terms which at the time were known to be impossible of fulfilment. Kyou find any favorable dispositioa among the leading men of the Produce towards affording a generous consideration to the obvious necessity of giving a suffi- cient time for pushing the road through Columbia, you will endeavo.' to ascertain what value they attadi to such connderation. You will point out that the action of this Government in the matter of the Graving Dock, and the agreement to advance in cash the balance of the amount of debt with which Columbia was allowed to enter the Confederation, showed that it was not considering itself bound to the exact Terms of Union, but was willing to go beyond them when the necessities of the Province seemed to deijiand such fl&tion, and that we not unnaturally expect similai* action on the part of the Province. In the event of your finding that there is a willingness to accent a proposition to extend the time for building the road, you will endeavor to obtain some propo- sition from them, directly or indirectly, and communicate this to us by cipher telegraph at once. if, on the other hand, they make or indicate no proposition, you will telegraph to US what you think would be acceptable, but wait a reply before making any proposition. In the event of the leading men evincing a disposition to negotiate, you will endeavor to secure something like a combination of parties to sanction any propo- sition likely to be generally accepted. It will be well that you should take some means of ascertaining the popular view of the Railway question. This may be done by mingling among the people and allowing them to speak freely while you listen, remembering, in taking im- pressions, that your audience may be impressed by special local considerations rather than the gen<»ral question. It will bo well not to confine youraelf to the vicinity of the Government offices or Victoria, but to cross to the mainla* 1 and meet with the people at Westminster and other towns and villages on the lovt-r reaches of the Fraser. It may be that you will find thea- : v disposition manifested to negotiate at Ottawa, in which case' you will advice ub of the existence of such a desire. You will take special earn nrt io dmit in any way that we are bound to build the railway to Esquimalt or any ol^icr place on the Island; and while vou do not at all threaten not to build there, to let them understand that this is wholly and purely a concession, and that its construction must be contingent on a reasonable course being pursued regarding ot^er parts of the scheme. 1874 88 Vic. Appendix — Mr. Watkem's Mission. It may be that the Local Government will desire to constitute the members for the Commons a delegation to discuss matters here ; if this be the case, you will still remain until we shall communicate with you. You will take ever;jr opportunity of noting the various matters connected with Dominion business, in accordance with Instructions that will be sent. I am, &c.., ' (Signed) A. Mackenzie. Mr. Mackenzie to Mr. Walkem {already printed^ marked AA., page xiv., No, 5,)— Mr. Walkem' s mission. , : ■ , n - 2%c JlonoraUe Mr. Mackenzie to the Lie^itenant-Oovemor. • r^^.. February 21st, 1874. Sib, — The bearer is James I). Edgar, Esq., Barrister, Toronto, who visits Columbia as the Agent of the Dominion Government, to consult with your Gov- ernment with reference to the late agitation concerning an extension of time for the construction of the Pacific Railway beyond that promised in the Terms of Union. Mr. Edgar will explain to Your Excellency our anxiety to do everything in our power to meet the views of your people. He will be glad to receive your suggestions concerning matters which may require attention. I am, Ac, (Signed) A. Mackenzie. The Govenior-General to the Earl of Carnarvon. Government Housk, Ottawa, May 15th, 1874. My Lord, — I have the honor to enclose for Your Lordship's information a newspaper rejwrt of the speech delivered by Mr. Mackenzie on the uth May*" 12th instant, when introducing Resolutions for a Bill to provide for Globe, 12th May. the construction of the Pacific Railroad, together with a summary of o>ioi«, 13th May. tjjjg speech, and an article f om the Globe newspaper of the 12th instant, explanatory of the Government prcjuct. I have, &c., (Signed) Dcffebin. 2* he Governor' General to the Earl of Oimarvon. Government House, Ottawa, May 15th, 1874. My Lord, — In oontinuntion of my despatch, No. 130, of this day's date, I have May i4tb. For »r- the houor to enclose an extract from the Toronto MaU, an oppo- UeieiM Scrap Book, g|t|on paper, criticising the scheme of the Government. I have, &;o., (Signed) Duffbbin. page 40. li.. Appendix—Mr. Walkem's Mission. 1874 I'he Earl of Carnarvon to the Oavemor-General DowNiNQ Street, 18th June, 1874. My Lord, — ^The intimation which I have received bj telegraph of the^depart- nre from Britiah Colombia of the President of the Council and Attorney-General of that Province, sent to this country for the purpose of appealing against the course proposed by your Government, and sanctioned by the Dominion Parliament, in regard to the Pacific Railway, together with the reports of the proceedings in that Parliament, and other informal communications, have led mo to apprehend that the difference of opinion which has unfortunately occurred, may not only prove difficult to adjust, hut may not impossibly, if it remains long unsettled, give rise to feelings of dissatisfaction and to disagreements, the existence of which within the Dommion, would be a matter for serious regret. 2. It is not my wish, nor is it a part of my ordinary duty, to interfere in these questions. They appear to me to be such as it should be within the province of and competency of the Dominion Government and Legislature to bring to a satis- factory solution, and you will readily understand that Her Majesty's Government would be very reluctant to take any action which might be construed as express- ing a doubt of the anxiety of the Dominion Government and Parliament to give the fullest consideration to such representation as may be made on the part of British Columbia, and to deal in the fairest and most liberal spirit with v^hat may be established as being the just claims of that Province. 8. At the same time, I am strongly impressed with the importance of neglect- ing no means that can properly be adopted for effecting the speedy and amicable settlement of a question which cannot without risk and obvious disadvantage to all parties remain the subject of prolonged and it may be, acrimonious discussion ; and it has occurred to me that, as in the original terms and conditions of the admission of British Columbia into the Union, certain points (as for example the amount of laud to be appropriated for the Indians, and the pensions to be assigned to public officers deprived of employment) were reserved for the decision of the Secretary of State, so in the present case it may possibly be acceptable to both Earties that I would tender my good offices in determining the new points which ave presented themselves for settlement. I accordingly addressed a telegram to you yesterday, to the effect that I greatly regretted that a difference should exist between the Dominion and the Province in regard to the railway, and that if both Governments should unite in desiring to refer to my arbitration all matters in controversy, binding themselves to accept such decision as I may think fair and just, I would not decline to undertake this service. 4. The duty which, uuder a sense of the importance of the interests concerned, I have thus offered to discharge i?, of course, a responsible and difficult one, which I could not assume unless by the desire of both parties, nor unless it should be fully agreed that my decision, whatever it may be, shall be accepted without any question or demur. If it is desired that I should act in this matter, it will be convenient for each party to prepare a statement, to be communicated to theother party, and after a reasonable interval a counter statement; and that, on these written documents, I should, reserving of course to myself the power of calling for any other information to guide me in arriving at my conclusion, give my final decision. 6. May I request you to transmit a copy of this despatc!), with the utmost possible speed, to the Lieutenant-Governor of British Columbia. I have commu- nicated to Mr. Sproat, the agent for British Columbia, for transmission by tele- graph to the Government of that Province, the purport of the telegram which I addressed to you yesterday, in order that my offer may come before both parties as soon m possible. I am, &o. (Signed) Carnarvon. 1874 88 Vic. Appendix — Mr. Wdlkem's Mission. The Earl of Camari'on to the Governor- General. Received in Ottawa, 18th Januar}-, 1874. I regret extremely the difficulty between Dominion of Canada and British Colmnbia as to terms of Union in connection with Pacific Railway. Her Majesty's Qdvernment are willing to give their good offices in adjusting the matter. If both parties unite in referring all mattera of difference to my arbitration, binding them- selves to abide by such award as I may deem just and fiiir, I will not refuse to undertake the duty. . i The Governor- General to the Etirl of Carnarvon. (No. 182.) Quebec, 9th July, 1874. My Lord, — I have the honor to acknowledge the receipt of your Lordsip's des- patch, No. 110, of the 18th of June, in which you refer to a misunderstanding that has occurred between the Dominion Government and that of British Columbia, and in which you have made so considerately a suggestion in regard to the settlement of the dispute. In accordance with your instructions, I have fox-warded a copy of the despatch to the Lieutenant-Governor of British Columbia, and I have also communicated it to my Government. There has not yet been time for them to acquaint me with their view in regard to the extremely considerate and fiiendly suggestions your Lordship is good enough to convey, but in connection with the subject matter to which the despatch under acknowledgment refers, I have the honor to enclose, for your Lordship's information 8th July 1874. «■ memorandum of a Committee of Couiicil ou the points in dispute ' ' between the Dominion Government and the Government of Bntish Columbia, together with a report by Mr. Edgar of his mission to that Province, ac- companied by copies of his correspondence with Mr. Walkem, the Attorney- General of British Columbia. I am, &c., (Signed) Duffbrin. Mr. Edgar to the Secretary of State for Canada. Toronto, June ITth, 1874. Sir, — I have the honor to report that in the month of February last, I was re- quested by the Canadian Government to proceed to the Province of British Columbia on their behalf. My mission was for the purpose of ascertaining the true state of feeling in the Province upon the subject of certain changes wmch were deemed necessary, in the mode and in the limit of time for the construction of the Canadian Pacific Railway, as well as to utleiul to any other business required, and to act as Canadian agent in bringing about some such feasible arrangement as might meet the general approval of the Local Government and the people of British Co- lumbia, in place of the original conditiont^ respecting the commencement and com- pletion of the railway that are contained in the Eleventh Article of the terms of Union. In that clause the language referring to railway construction, is as follows: — "The Government of the Dominion undei-take to secure the commencement " simultaneously, within two years from the date of Union, of the construction of " a railway from the I'acific towards the Rocky Mountains, and fi'om such point as " may be selected east of the Rocky Mountains towards the Pacific, to connect the "seaboard of British Columbia with the railway system of Canada; and Airthor to " secure the completion of such railway within ten years fi-om the date of the "Union." 10 Appendix — Mr. Walkem'ts Mission. 1874 I The views and policy of his Government upon the question of the Canadian Pacific Railway were communicated to me in several interviews hy the Hon. Mr. Mackenzie, and I also had the benefit of conversations upon the same subject with many members of the administration before I left Ottawa. On the eve of my de- parture, I received from Hon. Mr. Mackenzie certain further instructions and directions for my guidance, which were contained in the following letter: — {Already printed— page 5 of this Jieport.) When I received the above letter I lost no tirie, and starting upon my journey and leaving Toronto, February 23rd, I arrived upon March 9th at Victoria, the capital ot IMtish Columbia. On the day that I landed in Victoria, the Hon. Mr. walkem, leader of the Local Government, called upon me, and I made him aware of the object of my mission. On the same day I handed him Hon. Mr. Mackenzie's letter of 16th February (Appendix A), also informing him that I had letters from His Excellency the Governor-General to His Honor the Lieutenant-Governor, whicli were next day delivered. Voiy soon atter\vards Mr. Walkem introduced me to his colleagues as the representative of the Canadian Government. JJnon my arrival in the Province, I found that an intense interest was mani- fested by all the population in whatever related to the question of railway construc- tion. It is difficult at a distance to conceive the importance that is attached to the railway by the British Columbians. On account of the vast construction expendi- ture, and the sparseness of the population who would participate in the immediate benefits derivable from it, an interest of a direct and peuonal character is felt upon this subject. The entire white population of the Province, according to the census of 1870, was 8,576 souls. Of this number there were upon the mainland 3,401, and upon Vancouver Island, 5,176. The white population of to-day has probably in- creased to 10,000. With the exception, perhaps, of the gold miners, who are confin- ed to the mainland, there is no class in the Province that would not derive immediate personal advantages from the railway construction expenditure. Those in business, m trade, and in agriculture would feel the stimulus instantly; while those of means and leisure would be enriched by the increase in the value of their property. The circumstances of the early settlement of the Province gave it a population of peculiar intelligence; and the fact that most of the rougher kind of labor is performed by Chinamen and Indians, has afforded in an especial way to the people of Victoria, the Provincial metropolis, leism-e and opportunity for the fullest discussion of their great question of the day. Their keen intelligence and zeal in public afliurs suggests a parallel in the history of some of the minor States of ancient Greece and Italy. Although a strong feeling of jealousy of the greatness of Victoria undoubtedly exists in pai'ts of the mainland, yet that town is the chief centre of public opinion. Its population is almost equal to the whole of the rest of the Province, and m its midst are the head-quarters of Government, of the courts, of the churches, and of trade. Within three miles there is the fine harbor of Esquimalt, with its areenal and British ships of war. To Victoria the question of the location of themiiway tei-miims is all important, because there is nothing in the terms of Union which settles that there shall be any portion of the line upon Vancouver Island ; a revocable Order in Council, and the intrinsic merits claimed lor the Island location, are the grounds upon which they hope to secure the terminus at Esquimalt. When it became well understood that the surveys were not yet so far advanced as to wan-ant the Canadian Government in fixing the permanent route and Western terminus of the railway, it was strpngly urged upon me by many persons in Victoria that the construction of the line of railway should be at once undertaken by the Dominion from the harbor of Esquimalt to the port of Nanaiiuo, ou the east coast of Vancouver Island, a distance of about se renty miles. It was argued that at whatever point upon the mainland the Padfio Ilailway might be brought to the coast, a steam ferry thence to Nanaimo 1874 88 Vic. Appendix— Mr. Walkem's Missimi. 11 might be established, and would render their portion of railway a means of connection with Esnuimalt, which is said to be the finest harbor upon the shores of the Northern Pacinc. It wa" *ijso insisted that from its opening there would be a considerable and profitable traffic over this line in the carriage of coal to Esquimalt from the mines at Nanaimo and Departure Bay. Moreover, it was contended that in view of the admitted impossibility to com- {)lete the construction of the trans-continental railway within the time originally imited, some substantial concessions should be made to the people of the Island, as compensation for their disapiKjintmcut and prospective losses. A contention similar to the last mentioned one was also pressed upon me warmly by leading men of the mainland, who considered that they were now entitled to have some definite understanding arrived at, not so nmch in regard to the ultimate completion, as to the early, vigorous, and continuous construction of the railway upon the mainland. It was represented that those engaged in agriculture and stock raising in the interior jmrts of the country were almost without a market for their produce, partly because the gold miners were leaving in considerable numbers, and partly for the reason that in anticipation of railway constniction they had raised more crops than usual. The great distance to the coast, and the stupendous mountain ranges to be traveled, prevented them fi-om getting the bulky products of their land to the Island markets of Victoria or Nanaimo. Being iamihar with the difficulties to be met with by engineers in seeking tor a railway route through their country, the mainland people were not disposed to blame the Dominion ror insisting upon further time and surveys before fixing the location. Their im- mediate necessities also induced them to attach more importance to the securing of an early and steady expenditure amongst themselves than to the maintaining oianjr arbitrary time limit for completion, while thev also expressed their perfect appreci- ation of the agreement that a vigorous expenditure of itself involves an accomplish- ment of the work within a reasonable period. In the Provincial Constitution of British Columbia the working of reprtsenta- tivo institutions, and responsible parliamentaiy government may be studied in a simple forra. The system is elaborated out of, jterhaps, slender materials, but has been courageously fashioned after tiie model of the British Constitution. The people are represented by a House of twenty-five members, of whom thirteen are elected from the mainland, and twelve from the Island. In this House sit the Ministers of the Crown, four in number, two being Island members and two from the mainland. The deliberations are presided over by a Speaker, and due respect for the dign'ty of the Assembly is maintained by a Sergeant-at-Arms. Although I had not the fortune to be in the country when the House was in session, I wak able to discover among tlio gentlemen who hold seats, a considerable number of much experience, and somewhat above the average intelligence of Pro- vincial legislators. To those accustomed to older Canadian constituencies, each with popmations varying usually from fifteen to thirty thousand souls, it is some- what novel to see the smallness of electoral districts in British Columbia. Yet it would bo quite unfair to fix the immber of electors as the standard of the intelli- gence of the representative, for one of the .ibiest of the Provincial Ministers, after an exciting contest at the last election, succeeded in polling but sixteen votes in his constituency, whilst his opponent suffered a decisive defeat, having polled exactly half that number. The Session cf the Provincial Legishturc had terminated on the 2nd March, a week before my ari'val, and the House had unanimously agreed to a resolution upon the subject of th^ elevoiiih or railway clause, in the terms of Union with the Dominion, which was calculrited to have un important bcaringupon all negotiations with the local Government for a change in that clause. The language of the resolution is as follows: — "That in v'k^w of the importance of the Railway Clause " of the Terms of L'r.ion between Canada and Britisli Columbia being raithfully « carried out by Canada, this House is of opinion that no alteration in the said J ■ I* IS Appendix — Mr. Walkem's Mission. 1874 I .- " clause ahould be permitted by the Government of this Province until " has been submitted to the people for endorsation." When I ascertained the same has been submitted to the people for endorsation." When I ascertained that this resolation had been passed, that the Provincial Parliament had yet more than a year to run and that the Ministry had in it a sufficient working majority, it at once became apparent that any proposals to alter the railway clause could possess few attractions in the eyes of the party in power. While prepared to admit that the Province would be most reasonable, and would not be disposed to insist at all upon the original time limit for completion, yet members of the Administration, look- ing at it from their own point of view, ver^ naturally urged that this was a peculiarly unfortunate tiray the active prosecution of the surveys. This Government had therefore to provide some other method for the prosecu- tion of the work, to endeavor to keep substantially good £aith with Britinh Columbia, to avoid further taxation and, if possible, secure the consent and co-optration of the Government and people of British Columbia. The new bill, which has since become law, was prepared, which enables the Government (with the approval of Parliament) to get the work executed in one or several contracts, by a company or companies, which may or may not become pro- prietors of the Une after it is constructed. Mr. James D. Edgar was dispatched on a special mission to the Province of British Columbia, charged to confer with the Government, and also to visit all classes or parties, and luicertain their views, and to submit any proposal he might be directed to make to the local authorities or to receive any proposition from them and forward the same to Ottawa for consideration. A copy of the instructions sent to Mr. Edgar, and copies of certain telegrams already forwarded, and Mr. Edgar's report accompanying this minute, explain sufficiently the nature and result oi Mr. Edgar's mission. It was at fii-st expected that a good understanding would be arrived at, and judging from circumstances, local political complications alone pre- vented some arrangement being come to. The reason alleged for refusing to consider the proposition Mr. Edgar was finally directed to make, that Mr. Edgar was not accredited by this Government, was evi- dently a mere technical pretence. All that Mr. Edgar had to do was simply to pre- sent the proposals and ascertain on the spot whether they would be entertained by the Government. If satisfactory to them, the Dominion Government would, as a matter of course, have them sanctioned in due fonn ; or if any counter proposition had been made, instructions would be given Mr. Edgar concerning them. The propositions made by Mr. Edgar involved an immediate heavy expenditure in British CiSumbia not contemplated by the terms of Union, namely, the construc- tion of a railway on Vancouver Island, from the Port of Esquimalt to Nanaimo, as compensation to the most populous part of the Province for the requirement of a longer time for completing the line on the mainland. The proposals also embraced an obligation to construct a road or trail and telegraph line across the continent at once, and an expenditure of not loss than a million and a half within the Province annually on the milway works on the mainland, irrespective of the amounts which might be spent east of the Rocky Mountains, being a half more than the entire sum British Columbia demanded in the first instance as tho annual expenditure on the whole road. 18 Appendix — Mr. Walkem's Miasum, 1874 In order to enable the Government to carry out the proposals, which it was hoped the liritiah Colnmbia Government wonld have accepted, the average rate of taxation was rained at the late Session about fifteen per cent. The oustoms dnties being raised from fittcen per cent, to seventeen and a half per cent., and theexciso daties on spirits and tooacco a corresponding rate, both involving additional taxation exceeding three millions of dollars on the transactions of the vear. The public leeling of the whole Dominion has been expressea so strongly against the fatal extravagance involved in the terns agreed to by the late Govern- ment, that no Government could live that would attempt or rather pretend to attempt their literal fulfilment. Public opinion would not go beyond the proposal made throuigh Mr. Edgar to the Government. There is also reason to believe that local political exigencies alone induce the €k>vemment of British Columbia not to entertain these proposals. Since these propositions have been before the people, meetings have been had on Vancouver's Island and on the mainland, when the action of tne local Govern- ment was condemned, and a call made to accept the proposals offered. A very influential portion of the local press has also declared in favor of the course pur- sued by the Dominion Government. It may not bo out of place to mention that the action of the Dominion Gov- ernment regarding the Graving Dock, shows a desire to do everything that can &irly be asked, whether there be an obligation or not under the Terms of the Union. The Dominion was only bound to guarantee the interest on one hundred thousand pounds at five per cent., for ten vears after the dock should be constructed. The local Goveniment found it impossible to obtain any contractor to undertake the work on the terms they were aole to offer, based on the Dominion guarantee, and they solicited this Government to assist otherwise. This was agreed to, and Parliamentary authority was obtained at the late Session to enable the Governor^ General in Council to advance ^250,000 as the work progressed. The Report of Mr. Edgar will fully explain the object and effect of his mission as the agent of the Government. The Committee advise, therefore, that a copy of the said Report and appendices bo transmitted to the Right Honorable Lord Oamarvon, Secretary of State for the Colonies, with this Minute. Certified. (Signed) W. A. Himswortii, . Clerk Privy Council. The Governor-General to the Earl of Carnarvon. Quebec, 9th July, 1874. My Lord, — I have the honor to forward, for Your Lordship's information, a printed circular from the Department of Public Works, inviting proposals for the erection of a line of telegraph along the general route of the Canadian Pacific Railway. 1 have, &c., (Signed) Dufferin. Canadian Pacific Railway — Iclegraph Line. Proposals are invited for the erection of a line of telegraph along the general route of the Canadian Pacific Railway, us may be defined by the Government. The proposals to embrace the following points, viz.: — The furnishing of all materials, labor, instruments, and everything necessary to put the line in operation. The maintenance of the line for a period of five years after its completion. In the wooded sections, the land to be cleared to a width of .132 feet, or such greater width as may be necessary to prevent injury to the telegraph from fires or falling trees. 1874 88 Vie. Appendix — Mr. WalktnCs Miaaion. 19 t was rate of dnties excise tional and jord Distinct proposals to be made fur each of the following sections, such propo- sals to state the time when the party tendering will undertake to ha\'e the telegraph ready for use in each case : 1. Fort Garry to a point opposite Port Pelly, about 250 miles. 2. Fort 3arry to the bend of the North Saskatchewan, about 600 miles. 8. Fort Garry to a point in the longitude of Edmonton, about 800 miles. 4. Lac La Hache, or other convenient point on the existing telegraph system in British Columbia, to Fort Edmonton, about 550 miles. 6. Fort Garry to Nepigon, Lake Superior, about 420 miles. 6. Ottawa to Nepigon, Lake Superior, about 760 miles. The above distances are approximate. They are given for the genenl guidance of parties desiring information. Any increase or diminution in the ascertained mileage after construction will bo paid for or deducted, as the case may be, at a rate corresponding with the sum total of the tender. Parties tendering must satisfy the Government as to their ability to carry out the work and maintain it for the specified time. Propoals addressed to the Minister of Public Works, will be received up to the 22nd day of July next. By Order. Department of Public Works, F. Braun, Jmcy 1874. Secretary. The Oovemor-General to the Earl of Carnarvon. Ottawa, 18th July, 1874. My Lord, — I have the honor to enclose a copy of an approved Report of a flthjiiw 1874 Committee of the Privy Council, requesting mo to inform Your '• Lordship that Mr. Walkera, the Attorney-General of the Province of Columbia, has been deputed by that Government as a Special Agent to lay before Your Lordship the claims of British Columbia, under the 11th Clause ot the Terms of the Union with the Dominion of Canada. I hav'j, &c., (Signed) Dufpbrin. Copy of a Report of the Honorable the Privy Council, approved by Hia Excellency the Governor-General in Council, on the 8th July, 1874, {already printed, marked No. 9, page 8 — Mr. Walkem'a miasion.) The Governor-General to the Earl of Carnarvon. Ottawa, 22nd July, 1874. My Lord,— I have the honor to forward herewith three copies of the Act of last Session, " An Act to provide for the construction of the Canadian Pacific Railway." One copy is attested by the Deputy Clerk of the Senate. I have, etc., (Signed) Dufferin. 2' he Governor-General to the Earl of Carnarvon. Ottawa, Slat July, 1874.- My Lord,— I have the honor to transmit a copy of a despatch and enclosure o ^ T 1 ipiTA from the Lieutenant-Governor of Bntish Columbia, together with 3nd July, 1874. ^^^ petition to Her Majesty therein referred to from the inhabitants of Victoria, respecting the non-fulfilment by Canada of the Terms of Union. I have, etc., (Signed) Duifbrin. ao Appendix-^Mr. Walkem'a Missim. 1874 7'he Oovemor-General to the Earl 0/ Carnarvon. Sault Ste. Maris, July 8l8t, 1874. 18th approved uraer in uouiicn, m WDicn my at large its views with respect bO its peuding dispute with British Co- Inmbis, and expresses a desire that Your Lordship would use your good offices in promoting a settlement of the misunderstanding, in accordance with the suggestion you have oeen good enough to mivke. I have, &c., (Signed) Duffebin. Cbpy of a Heport cfa (XTimittee of the Honorable the Privy Council, approved by His Excellent the Oovemor-Oeneral m Council, on the 28rrf July, 1874. The Committee of Council have had under consideration the despatch fro^ the Right Honorable the Secretary of State for the Colonies, No. 110, relative to tLtf proposed mission of a member of the British Columbia Government to Eng;Iand, for the purpose of complaining of the alleged non-fulfilment of the Terms of Union between that Province and the Dominion, as to the construction of the Pacific Railway, and contiuning an offer on the ^art of Lord Carnarvon in the following terms: "If both Gk>vemment8 should unite in desiring to rofer to my arbitration nfl "matters in controversy, binding themselves to accept such lecision as I may think ''*fiur and just, I would noi 'decline to undertake this service;" and further stating that he could not assume sura duty "unless by the desire of both particB, and unless "it should be fully agreed that mv decision, whatever it may be, shuU be accepted "without aii7 question or ('.emur; ' concluding with a request that, in the event of this offer being accepted, a statement of the case should be prepared by each Government, to be submitted for consideration. The Committee advise that Lord Carnarvon be informed that t)ie papers already transmitted to the Colonial Office, with the minute of Council of July 8th. having special reference to Mr. Walkem's communication in Ottawa of the 15th July, convey substantially all that this Government have to say upon the subject; and that the Government would gladly accept his Lordship's offer, if it were pos- sible to define, with any degree of exactitude, the matter m dispute. When the present Government assumed office, they found that the British Columbia Government had protested against the non-commencement of works of construction on the railway on or before the 20th day of July, 1878, as agreed to in the eleventh section of the Order in Council relating to the Union. They also found that the means taken by the late Dominion Government for proceeding with the works of construction had totally failed, although the works preliminary to an actual commencement had been prosecuted with all possible dispatch. There can be no question of the extreme difficulty involved in the survey of a line of railway across an uninhabited continent, a distance of twenty-five hundred miles. To properly complete this survey and ascertain the best route for the rail- way would require not two years simply, but at least five or six years, as all experience of works of thip, maguitude and character both in the Dominion and elsewhere has sufficiently demonstrated. The expenditure wnich had taken place up to that time was v 1-% large, exceed- ing one million of dollars, and yet the engineers had been quite ut : tleto locate any portion of the line in the more difficult parts of the country to be traversed. Under these ciroamstances the Government conceive that there was no rea- sonable or just cause of complaint on thepart of the British Columbia Government. 1874 88 Vtc. Appendix-'Mr. Walkm'a Miaaim. 21 No other steps could have been taken further than proaecntinff the saireys until the assembhng of Parliament towards the close of the month of March of this year. The Qovemment were then preptred with a new bill, taking ample powers tor proceeding with the works as expeditiously as the circumstances of uie country would permit. No complaint, official or otherwise, has been made as to the sufficiency of this measure to accom>'i«h the object in view. It was distinctly understood by the British Columbia :nment to remove any possible cause of compl&int, that they did take means to increase the taxation very materi* ally in order to piAce themselves in a position to make arrangements for the pro- secution of the initial and difficult portions of the lino as soon as it was possible to do so, — ^and at the same time, a special confidential agent was deputed to British Columbia for the express purpose of conferring with the Government of that Pro- vince, and to endeavor to arrive at some understant'ang as to a course to be pursued which could bo satisfactory to British Columbia and meet the circumstan- ces of the Dominion. It should bo mentioned that before the late Government left office, it had been distinctly understood, as one of the results of tbo visit to England by the Direc- tors of the Allen Company, that an extension of time of at least four years would be absolutely necessary. Mr. w alkem, of British Columbia, quite understood this, and there is reason to believe that it would have been assented to bv nil parties. The proposal made througli Mr. Edgar to the British Columbia Government is one which the Doniiinoii Government tbiuk shotildhave been acceptedas reason- able and just. > idas ouo quite in accordaucc with the moral obligations imposed on this Govonui.ont, if not with the actual letter of the agreement. It must be remembered that British C'>4umbia earnestly petitioned the Do- minioa Government to modify the Termn of Union in its own favor, in relation to the construction of the Graving Dock. The ])omiiiioi\ Government cordially assented to provide the money for the construction of the work, instead of abiding by the agreement to guarantee merely the I'rovincial bonds for ten years, as pro- vided by the Terms of Union. This at once shows the liboralitj- of the Dominion Government, and their willingness to consider and meet exceptional circumstances wherever they existed. Ana obis manifestation of liberality on the part of this Government, the^ conceive snould have been reciprocated in other matters by the Provincial Government. The Dominion Government were also willing to exceed the Terms of Union, by constructing a railway on the Island of Vancouver, although they were bound only to reach the seaboard of the Pacific. At the present time, the only violation of the terms of the compact which can be alleged, is that the works of construction were not actually commenced qu the 20th July, 1878. But it is doubtful if even that allegation can be upheld. It was all but impossible to proceed more rapidly with the work of survey, and a very extravagant expenditure was the result of the haste already showo m endeavoring to locate the lino. This may be understood from the fact, that the surveys of the Intercolonial Railway, 600 miles long, ocoupied not less than four years, though the route w^as through a settled country, and they were thou very incomplete, causing subsequent serious embarrassments to the contractors, and the presentation by them of endless claims for compensation. Mr. Walkem, in his conversations, admits frankly that the literal fulfilment of the terms for the completion of thoHne on a certain day in 1881 cannot be expected. The only questions, therefore, that can now arise are (1) whether due diligence Appendix— Mr, WaUxtn's Mission. 1874 and expedition have been exerted by the Dominion Government in the prosecution of the workB; and, (2) whether the offers of compensation for the alleged non-ful- filment of the terms were just and fair. While expressing a very strong conviction that everything has been done that could possibly be done under the circumstances, and that the Dominion Govern- ment nave shown a disposition to go far beyond the spirit of the engagement entered into with British Columbia, considering the expressions of opinion oy Mr. Trutcb, as the delegate of British Columbia at the time of the union, and the facts set forth in the several documents already forwarded to the Colonial Office, the Committee advise that Lord Carnarvon be informed they would gladly submit the question to him for his decision as to whether the exertions of the Government, the diligence shown, and the offers made, have or have not been fair and just, and in accordance with the spirit of the agreement. The Committee advise that a copy of this Minute be forwarded to the Right Honorable the Secretary of State for the Colonies. Certified, (Signed) W. A. Himsworth, - 1 : Clerkf Privy QnmciL Th£ Earl of Carnarvon to the Governor-General. (Canada.) Downing Street, 16th August, 1874. My Lord, — With reference to my despatch. No. 110, of the 18th of June, I liave now to acquaint you that I have seen Mr. Walkem, the Premier of British Columbia, deputed by his Government to represent to nie the claims of the Pro- vince relative to the delays which have occurred in the construction ot the Pacific Railway; the completion of which works, within a certain understood time, was one of the principal considerations that influenced the Union of British Columbia with the Dominion of Canada in 1871; I will only add on this head, that Mr. Walkem laid his case before me in temperate and reasonable terms. 2. I have also received a telegram from the Lieutenant-Governor of British Columbia, stating that upon the advice of his responsible Ministers he accepts, on behalf of BritiHli Columbia, the arbitration which I thought it my duty to offer, end the conditions of which I explained to your Lordship in my despatch of the 18th of June. 8. I have further received your despatch of the 31st J uly, enclosing copy of the Report of the Canadian Privy Council of the 23rd of July, in which your Minis- ters express their readiness to submit for my decision the question whether the exertions of the Dominion Government in the prosecution of the work, the dili- fence shown, and the offers made by them to British Columbia, have or have not een fair and just, and in accordance with the spirit of the agreement entered into between Canada and British Columbia at the date of the Union. 4. I appreciate the confidence which has been thus placed in me by both par- ties to this controversy, and ho far as lies in my power, I am most desii-ous of contri- buting to the settlement of a difference, which although hithei'to conducted with great niodemtiou, and in a conciliatory 8]>irit on both sides, might easily assume more scrioii*' dinienHiouH. 5. I feel «ure that the Dominion (jovemment will agree with me that the sooner this controversy can bo closed the better, nnd tliat to arrange matters amicably, and with m little resort m \tom\Ao to Fonnal procedure, will best promote that object, and will bo most congenial to the feelingH of all parties. 0. With this view, T will inotcod to state the c;i,se as I undorstJind it, and the impressions which I have formed ns to the course that ought to bo taken. The proposals made by ?klr. Edgar, on behalf of the Canadian (iovernmcnt, to the Provincial Government of BritiBli Columbia, may be stated m follows :— 88 Vie. Appendix— Mr. Waikem's Mission. 28 (1.) To commence at onco, and finish as soon as ix)88ible, a railway from Eequi* malt to Nanaimo. (2.) To spare no cxiiensc in settling, as speedily as iwssible, the line to be taken by the railway on the mninlund. (B.) To make at onco, a waggon road and line of telegraph along the whole lengtn of the railway in British Columbia, and to continue the teleg>'aph across the continent. (4.) The moment the surveys and road on the mainland are completed, to spend a minimum amount of 81,500,000 annually upon the construction of the Baiiway within the Province. 7. I am under the impression, after conversing with Mr. Walkem, that he is not fully empowered on the part of British Columbia to make specific proposals to the Government of Canada, or to me, as to what terms British Columbia would be willing to accept, but he has stated very clearly, in conversation at this office, the objections entertained by his Government, and in the Province, to the propoMls of your (Government; and they, or a considerable part of them, are fully set forth in the petition to the Queen, of which, as it has been published in the Colonial prees, you no doubt have a copy. 8. Wking each point seriatim, as numbered in the last preceding paragraph but one. 1 unuerstiuul it to be urged: — ^1.) 'I'hat nothing is being (lone by the Dominion Government towards com- mencing uud pushing on a rainvay from Ksmiimalt to Nanaimo. (2.) That the surveying juirties on the Mainland are numerically very weak; and tnat thevo is no expectation in British Columbia or guarantee given on the part of the iVnninion, that the surveys will be proceeded with as speedily as possible. • (8.) That the iieoplo of British Columbia do not desire the waggon road offered by the Dominion Uovernment, oh it would be useless to them; ana that even the telegraph proposed to bo made along the line of the railway cannot, of course, be mack until the route to be taken by the Railway is settled. (4.) That " The moment the surveys are completed," is net onl; an altogether uncertain, but, attlic itrcseiit nite of proceeding, a very remote period of time, and that an expenditure ot ^1,500,000 a year on the railwav within the Province will not carry the lino to tho boundary ot British Columbia oefore a very distant date. 8. All'. NValkoni fuithcr urges that by Section 11 of the Canadian Pacific Rail- way Alt of 1^74, it in conipetoiit to tlio Dominion House of Commons to reject at any time tho lontract for a He(!ti<)i! of the Railway, and thus to prevent the continn- 0U8 construction of the work. 9. Roforriny tirrft to thin JMtt<^i jioint, I do not understand that it is alleged by Mr. Wulkoni nor '!o I tor ii nionjv / apprehend that the proviso was introduced with any ix ':■ *' ilisit i would deliiv Sii*" construction of tho milway. I conceive that all that Wiu-- (tcii'Ird ,y it wan to retail', the power of exercising an adequate super- vision u\ej' ill* HnuiKial detiii.- of tlic -ii'lioine; nevertheless, the objection stateu by Mr. Walkem wj^ar- to juc c *'liicli the Dominion Govcrinnont should seriously consider ^ ^^^^ t9^>' '" '*'' ♦«|'<>ri'»iit a matter ought not to be left open to criti< i'j' ",1't %^iQt V;oluin!k>v»i may (Uirly ask, according to the letter and the spin -yjif-mfff^v, for .■f-wry reasonable security that the railway will be com I- ''s A*p^\\U (|«*o(M*ftl»jections urged by Mr. Walkem to the pi-o- posalb wf\\<-h \ '•'• .1- to have niaclo on behalf of your Ministers, and iifrtrtiwit juc o" i/iic- ^n'^'"-^*^i>'i' of eontro\ orsy, I, as ut ]froscnt advised, can see no fHte ImnA i t-m^moi entertain the least doubt of the sincere intention of the ( *-v*i^hm Gov«VMNMMit ami i'lN-iiumcnt to adhere us closely as p(^siblc to the pled^Ms j^t*vt* to Britisii 'WhunMit ut tho time of tho Union; to do that which is 24 Appendix— Mr. Walkem*8 Mission. 1874 just and liberal towards the Province, and in feet to maintain the good feith of the Dominion in the spirit if not in the letter of the original agreement under circum- stances which I admit to be of no ordinary difficulty. 12. On the other hand, however, it would be un&ir to deny that the objections stated by Mr. Walkem have a certain foundation and force, and I have every confi- denoe in order to obtain the settlement of h question of such vital im{)ortance to the interests of the whole Dominion, the Canadian Government will be willing to make some reasonable concessions such as may satisfy the local requirements of British Columbia, and yet in no way detract from the nigh position which the Dominion Parliament and Qovernment ought in my judgment to occupy. 18. I am of opinion, therefore, on a general review of all the conmderations of the case, and as an impartial but most friendly adviser, who, if I may be allowed to say so, has the interests of both parties and the prosperity of the whole Dominion deeply at heart, that the following proposals would not be other than a iair basis of adjustment 14. (1.) That the section of the railway from Esquimalt to Nanumo should be begun at once. (2.) That the Dominion Government should greatly increase the strength of the surveying parties on the Mainland, and tliat they should undertake to expend on the surveys, if necessary, for the speedy completion of the work, it not an equal share to that which they would expend on tne railway itself if it were in actual course of construction, at all events some considerable definite minimum amount. (8.) Inasmuch as the nroposod waggon road does not seem to be desired by British Columbia, the Canaaian Government and Parliament may be fairly relieved of the expense and labor involved in their offer; and desirable as, in my opinion, the construction of the telegraph across the continent will be, it perhaps is a ques- tion whether it may not be postponed till the line to be taken by the railway is definitely settled. (4.) The offer made by the Dominion Government to spend a minimum amount of 51,600,000 annually on the railway within British Columbia, as soon as the surveys and waggon road are completed, appears to mo to bo hardly as definite as the largo interests involved on both sides seem to require. I think that some short and fixed time should be assigned within which the surveys should be com- pleted; failing which, some compensation should become due to British Columbia for the delay. 16. Looking, further, to all the delays which have taken place, and which may yet perhaps occur ; looking also to the public expectations that liavo been held out of the completion of the railway, if not within the original period of ten years fixed by the Terras of Union, at all events within fourteen years from 1871, 1 cannot but think that the annual minimum expenditure of ^1,500,000 offered by the Dominion Government for the constrnctiou of the railway in the Province, is hardly adequate. In order to make the proposal not only fair bnt, as I know is the wish of your Ministers, liberal, I would suggest for theii consideration whether the amount should not bo fixed at a higher rate, say, lor instance, at $2,000,000 a year. 16. The really important point, however, not only in the interests of the Province but for the credit of the Dominion and the advantage of the Empire at large, is to assume the completion of the railway at some definite period, which, from causes over which your Ministers have hud no control, must now, I admit, be much more distant than had been originally contemplated, and I am disposed to suggest as a reasonable arrangement, and one neither unfair to the Domittiou nor to British Columbia, that the year 18!«0 slioukl bo agreed upon for this purpo.se. In makina; this suggestion, 1, of course, conclude that the Dominion Government will readily uhc all reanonabk' cttortfi to complete the lino before any extreme limit of time that may be fixed. A postjMtnement to the very distant period which I have mentioned could not fail tu be a serious disappointment to the a 874 88 Vic. Appendix— Mr. Walkem'a Missicn. 25 I the im- be people of the Province, and to all interested in its welfure, and I should not have suggested it were it not for the full confidence which I felt in the determination of your Ministers to do not merely the least that they may be obliged, but the utmost that they may be able, in redemption of the obli^tions which they have inherited. 17. I have now only to repeat the strong desire which I feel to be of service in a matter, the settlement of which may be either simple or difficult according to the spirit in which it is approached, a question directly bearing upon the Terms of Union mav, if both parties to it will waive some ]M>rtion of their own views and opinions, be well entrusted to the Imperial authority which presided over that Union, and not improperly, perhaps, to the individual Minister whose fortune it was to consider and in some degree to shape the details ot the original settlement under which the Provinces of British !North America were confederated, and British Columbia ultimatelv brought into connection with them. If indeed the expression of a personal feeling may, in such a case as this, be indulged, I ma^ pen- haps be allowed to say how sincerely I prize the recollection of the share which I was then permitted to have in that great work, how deeply I should grieve to see nny disagreement or difference impair the hai-mony which lias been so conspicuously maintained by the wisdom and good feeling of all parties, and how entirely your Lordship f.nd your Ministera may count upon my best eftbrts in furtherance of every measure t lat can contril)uto to tho strength and honor of the Dominion of Canada. 18. It will be very convenient if your Government should feel able to reply by telegraph, stating generally whether the modifications which I have proposed, and which seem to me consistent with tho present conditions of the question and with the true construction of the policy aflopted by them, are in the main acceptable to them, in order that no unnecessary delay may take place in bringing this matter to ft oonolosion. I have, &c., (Signed) Carnarvon. I'he Oovemor-Gcneral to the Earl of Carmn'on. Ottawa, 21st August, 1874. My Lord,— In continuation of my despatches, noted in the margin, on the subject No. 182, 9th July, of the suggestions made by your Lordship for the settlement of the 207, 3iit " (lift'erences between tho Government of British Columbia and that No ^ 67T 29th oHhe Dominion, I Imvo the honor to enclose a cojty of a despatch jiiiy, 1874. from Lieutenant-Governor Trutch acknowledging tho receipt of the copy I 'sent him of your despatch. No. 110, of the 18th June. I have, &c., (Signed) Duffbrin. IJu Lieutenant-Oovemor to the Governor- General {already printedf marked No. 16a, pa(/cl2 — Mr. Walkem'smissun.) The Govemor-Oeneral to the Earl of Carnarvon. (Canada) September 18th, 1874, My Lord, — In acknowledging the receipt ot your Lordship's despatch, secret, of tho 16tl) of August, in wliioli yon Imvo Immju good enough to convey to me your opinion as to the modificatioiw which riiight he introduced with advantage into the terms already proftered by my Ministoi-s for the HCttlement of the dispute now pend- ing between thiH Govornmont and that of Britihli Columbia, I have the satis&ction of uifomiiug yoii th»it after a {rood deal of anxiout* (leliboratiou Mr. Mackenzie and his coileagucH haves '.onKentod to adopt Koveriit BUggeationn icciommended to them by yoiu- Lordship, «hould it be ibuud absuiuteiy inipotwible to terminate the contro- voi-sy la any other maiiner. S6 Appeniltx — Mr. Walkem's Mission. 1874 2. The general view of my Ministers on tlie varions points referred to are set forth at large in the enclosed Order in Council fi-om wnich your Lordship will Skther that it is with very considerable reluctance they have been induced to make ese lurther concessions, feeling so strongly as they do that their original proposals fiurly satisfied the requirements of the case. 3. I have no doubt, however, it will be felt throughout the country that the only mode by which the Dominion could be satisfactorily oxtricatod from the false position in which she was placed by her treaty obligations to fulfil engagements which were physically imposHiblo of exectition, was by a largo and generous inter- pretation ot tne consequent claims against her. 4. I have further the honor to transmit a sketch map of the area now under exploratipn in British Cplumbia, accompanied by a memorandum by Mr. Fleming, the engineor-in-chiet, by which it will be perceived that every effort is being made to hurry fonvard the surveys with all possible dispatch, and that the employment of any additional staff would uselessly mcroase the expense without fonvarding the work. I have, &c., (Signed) DUFFBRIN. Copy of a lieport of a Committee of the Honorable the Pi'ivi/ Council, approved by His Excellency the Governor-General, on the Vlth September, 1874. The Committee ot Council have had under considenitiou the despatch of the Bight Honorable Lord Carnarvon relating to the complaints of the British Columbia Government ^vith respect to the Facific Railway, and suggesting,' certain modifica- tions of the proposals made by the Dominion Government, through Mr. Edgar, ou the 8th May last. These proposals were prompted by a desire to provide against future difficulty, in view of the t)ien well ascertained fact that the terms of Union had become im- possible of liten.j fulfilment, on the one hand, and on the ctiicr hand giving due we'ght to the very strong feeling entertained against the fatal extravagance which these terms involved to the country. The proposals may thus be summarited: — 1. To build a railway from Esquimalt to Nauaimo, on Vancouver Island, in ex- cess of the terms of Union, and to begin the work immediately. 2. To commence the construction of the railway on the mainland as soon aa the surveys could be completed, and to expend on the work not less than one and a half millions annually. 3. To take the necessary steps, meanwhile, to secure the construction of a tele- graph line across the continent on the located line for the railway, at the same time cutting out the railway track and buildintr 'hereon a trail or road, which would become available as part of the jiennanent works. The arrangement proposed by Lord Carnarvon embodies some »meudmeut8. Hia Lordship suggests: — Ist. The immediate construction, as proposed, of the short line oo V«i»»ouver Island. 2nd. After the location of the line the expenditure of two millions on the mainland, instead of one and a half millions. 3rd. The increase of the engineering force to double the number now employ- ed; the expenditure ou the survey, if not ot anan^ount equal to the proposed annual expenditure on construction, of some other specific sum; the prescribing of a limit- ed time for the completion of the survey ; and tho payment of a sum of monay as compensation in the event of its not being so completed. 4th. The guarantee of the completion of the entire railway in 1890. It is also suggested that the construction of the telegniph lino and road need not be proceeded .with, as Mr. Walkem does not consider either as of any use to the Ffovinoe. 38 Vie. Appendix — Mr. Wdlkeni'a Misaiont 87 The Committee recommend that the first conaideratiou, which ia precisely what was previously oftbred, bo again concurred in. In regard to the second proposal, the Committee recommend that Lord Car- narvon be informed (if it be found impossible to obtain a settlement of the question by the acceptance of the former oft'cr) that the Government will consent that irfler the_ completion of the survey, the average annual minimum expenditure on the mainland shall be two millions. There is every reason to believe now that a majority of the people of Columbia would accept the propositions previously made. Judging from a petition sent from the mainland, signed by 644 names (a copy of which petition is enclosed), there is almost an entire unanimity there m fevor of these proposals, and assurances were given very lately by a gentleman of the highest position on the Island that the course of the Local Government would not meet general approval there. An application was made by one prominent gentleman, an ex-member of Parliament, to the Government here, to know if the proposals miide would still be adhered to, he pledging himself to secure their acceptance by the bulk of the people here. It is therefore earnestly hoped that no change will be considered necessary, as it will be difficult to induce the country to accept any further concessions. The third condition requires an increase of the engineer force employed on the surveying service; the completion of the survey within a specific time; and in case that time should be exceeded, the payment to the Province of a money compen- sation. The Committee respectfully submit that the result arrived at by the foregoing suggestion is already being accomplished with the utmost despatch admitted by the circumstances of the case. The Chief Engineer was instructed to provide all the assistance he required in order to complete the surveys within the shortest possible period, and he engaged a large force; a larger force mdeed than can with profit be employed until the route is dennitely determined. Whatever may bo the route finally chosen, the line will of necessity traverse a country with oj^coedingly rough topographical features for a distance of five or six hundred miles from the eastern slope of the Rocky Mountains to the extreme limit of the Province on the Pacific. The country is an immense plateau, which maintains its general elevation to within a few miles of the sea, but often rises into unshapely mountain ranges; some of these ranges towor to a height of over 9,000 feet. The boundary of the plateau on the west is the Cascade Range; this forms a huge sea-wall along the coast, and has interposed a much more formidable obstacle to the surveyors than tho Rocky Mounttvins. Attempts have been made at five or six points to piorce the barrier, but, except at the Fraser River and at Bute Inlet, without success. From the roK,ults of last year's explorations, the Bute Inlet route seemed on the whole to be the best, but it is not unussociated with serious difficulties. For a dis- tance of twenty miles the ascent or grude is about 150 feet to the mile. The straits which form the approach to the harbor from seaward, are encum- bered by islands, and when reached the harbor is found to be destitute of anchorage. The dangers of navigation are increased not alone by the precipitous and rocKT shores, but by the rapidity of the tide, which rushes througli the narrow channels with A velocity of from seven to nine miles an hour. It was supposed when work was resumed last Spring, that a practicable route would be found from the point where Fleming's line touches the north branch of the Thonipsou Rivor westward towards what is known as Big Bend, on the Fraser River, froni which no serious impediment exists until the commencement of the rapid descent to the sea at Bute Inlet is reached. Had this supposition proved correct, it is probable the Government might have been prepared at the end of this year to proceed with the exact location of tho lino. But the explorations carried on * 'I Appendix— Mr. Walkem*3 Mission. 1874 to the cloflo of July last, resulted in the discovcrj' of a high range of monntains, which fill the country from near the junction of the Clearwater mth the Thompson north^vard to tlie great hotid of the Fraser; and, without a very long detour south or north, they bar the way to the west. The Chief Engineer therefore advised a re-ezamination of the Iraser Valley, or more correctly speaking, ravine, inas- much as no broad valley anvwhere exists, the rivers [in their courses having cleft ways fbr themselves through the rocks, which in some cases they have pierced to a depth of 1,500 feet by a width of not more than a single mile, thus giving as the normal condition exceedingly precipitoun banks. This new examination of the Fraser River route will occupy at least the whole season. A memorandum from the Chief Engineer vnW give the strength of the force and show its distribution. Nearly two seasons were passed in examining the Rocky Mountain Range and the Valley of the Columbia, in the endeavor to obtain a fevor- able pass. The result was, that the explorers were driven north to what is known as Jasper House Pass. Tnese facts are mentioned to give some idea of the enormous labor involved, and the impossibility of placing a large force in the field to do engineering work, when it is not yet known where the engineering work is to be done. The explora- tory survey must be tolerably complete before the exact location of any portion of the line can bo contemplated or possible, and before plans can be made of bridges and other works of construction required; and nothing but the urgency of the con- tract so imprudently entered into with British Columbia, would otherwise have induced the Government to employ more than half the force now engaged. As pointed out in previous memorandum, the expenditure to the end of last year in British Columbia alone, was considerably over half a million of money more than the whole expenditure upon the two thousiuid miles eastward oi that Province. The Chief Engineer was informed last Winter, tliat it was the desire of the Government to have the utmost expedition used in prosecuting and completing the surveys; and in the engagements wnich he has entered into, these directions nave been fully considered. The fourth condition involves another precise engagement to have the whole of the railway communication finished in 1890. There are the strongest possible objections to again adopting a precise time for the completion of the lines. The eastern portion of the line, except so far as the mere letter of the conditions is concerned, aft'ects only the Provinces east of Manitoba; and the Government have not been persuaded either of the wisdom or the necessity of immediately construct- ing that portion of the i-ailway which traverses the country from the west end of Lake Superior to the proposed eastern terminus on Lake "Nipissing, near Georgian Bay, nor is it conceived tnat the people of British Columbia could, with any show of reason whatever, insistthat this portion of the work should be completed within any definite time, inasmuch as if the people who are chiefly if not wholly affected by this branch of the undertaking are satisfied, it is maintained that the people of British Columbia would practically have no right of speech in the matter. It is intended by the Government that the utmost diligence shall be manifested in obtaining a speedy line of communication by rail and water from Lake Superior westward, completing the various links of railway as fiist as possible, consistent with that prudent course which a comparatively poor and sparaely settled country should adopt. There can be no doubt that it would be an extremely difficult task to obtain the sanction of the Canadian Parliament to any specific bargain as to time, consid- ering the consequences which have alreafly resulted from the unwise adoption of a limited period in the Terms of Union for the completion of so vast an undertaking, the extent of which must necessarily be very imperfectly understood by people at a distance. The Committee advise that Lord Carnarvon be informed that, while in no case could the Government undertake tho completion of the whole lino in the dd Vie. Appendix — Mr. Watkem's Mission. time mentioned, an oxtremo unwillingnoss exists to another limitation of time; bat if it is found absolutely necGsauiy to secure a present settlement of the ooutroveray b^ further concessions, a pledge may be given that the portion west of Lake Supe- rior will be completed so as to oit'ord connection by rail with existing lines of rail- way through a portion of the United States and by Canadian waters during the season of navigation by the year 1890, as suggested. With regard to the ameliorating proposal to dispense with the formation of a road or trail across the country, an(f the construction of a telegraph line, on the representation of the Biitish Columbia delegate that neither is considered necessary, it IS proper to remark that it is im]X>ssiblo to dispense with the clearing out of a track and the formation of a road of nome sort in order to get in the supplies for the railway, and the proposal was, that as soon us the general route of the railway could be detennincd and the location ascertained, a width of two chains should be cleared out in the Avooded districts, a telegraph lino erected, and that a sort of rood passable for horses and rough vehicles should uo formed anvithout involving a violation of the spirit of any Parliamentary resolution, or the letter of any enactment. The Committee of Council respectfully request that Your Excellency will be t>leased to convey to Lord Carnarvon their warm appreciationof the kindness which ed his Lordship to tender his good offices to efl:ect a settlement of the matter in dispute ; and also to ab;:^ure his Lordship that every effort will be made to secure the realization of what is expected. Certified. (Signed) W. A. Himsworth Clerkf Privy Council. The Earl of Carnarvon to the Governor-General. -No. 4.) Downing Street, 4th January, 1875. My Lord, — I have the honor to acknowledge the receipt of your despatch of the 18th of December, forwarding to me a copy of an Order of the Dominion Privy Council expressing the acknowledgments of the Government of Canada for the services which I have been fortunate enough to render in promoting the settlement of the difierences which had arisen between British Columbia and the Government of the Dominion with respect to the construction of the Pacific Railway. It has been with great pleasure that I have received this expression of their opinion. I sincerely r^oice to have been the means of bringing to a satisfiictory conclusion a question of so much difficultjr, of removing, as I trust, all ground of future misunderstanding between the Province of British Columbia and the Dominion, and of thus contributing towards the ultimate completion of a public work in which they, and indeed the whole Empire, are interested. I have, &c., (Signed) Carnarvon. '. •; ITie Lieutenant-Governor to Secretary of State for Canada. British Columbia, Government House, 31st March, 1874. I have the honor to enclose herewith a minute of the Executive Council of this Province, together with a copy of the Act respecting Articles 2 and 12 of the Terms of Union, passed at the recent Session of this Legislature of British Columbia, and to which this minute refers; and in accordance with the advice and desire of my Ministers, I beg you to lay this despatch and its enclosure before His Excellency the Governor-General, and to recommend the request of this Government, expressed in the said minute, to His Excellenoy'B favorable consideration. I have, &c., (Signed) Josbph W. Truxcb. Sir,— Minute of Council, 30tli March, 1874. i' / 38 ViJtU Appendix — Mr. Walkem's Mission. 33 >■; >(,. s !■ Cbj3|y o/a Report of a Committee of the Honorable the Executive Council, approved by His Excelleiicy the Lieiitenaat-Govcmor, on the ZOth day of March, 1874. The Committee of Council have had under consideration a memorandum, dated 16th March, 1874, from the Honorable the Minister of Finance, submitting that as authority has been given by the Legislature for the expenditure in excess of revenue, of tne sum of $300,000 or thereabouts, it is advisable that immediate steps should be taken to insure that that sum shall be at the call of the Govern- ment when required, and recommending that a copy of the " Act to alter the Terms . of Union 1874," be sent to the Dominion Government, with the request that the Provincial Government be informed by telegram if it is the intention of the Dominion Government to introduce a corresponding measure to the Parliament of Canada, in order that should a negative answer be returned, no time may be lost in obtaining the funds elsewhere, under the powers conferred by "British Columbia Loan Act, 1874." The Committee concur v'th the recommendation of the Minister of Finance, and advise its approval, and request that Your Excellency will be pleased to for- ward a copy of this report through the proper channel to the Dominion Govern- ment, at the same time asking that a measure to compliment the Act to alter the terms of Union 1874, be introduced to the Parliament of Canada, and that a tele- gram anticipating any written reply may be sent to Your Excellency. Certified. (Signed) W.J.Armstrong, Clerk, Executive Council. / Terms of Union Amendment Act, ( See B. G. Statutes, 1874 — No. 1, j)a«7c 1. The Licuienanl-Govcmor to the Secretary of State for Canada . British Columbia. Government Hocsk, 18th May, 1874. Sir, — I have the honor to enclose herewith a minute of the Execu- tive Council of this Province to state that, in accordance with the advice of my Ministers therein expressed, I have this day addressed to 3'ou a message by telegraph, of which a copy is appended hereto. I have, &c., (Signed) Joseph W. Trutch. Minute of Execu- tive Couucil. Tcl. Hess., May 18th, 1874. Telegram — Lieutenant-Gwemor to the Secretary of State for Canada {already printed, marked KK., page xviii., No. 5— Mr. Walkem's mission.) The Under Secretary of State for Canada to Lieutenant-Governor. Department Seceetaey OF State, 10th June, 1874. Sir, — I have the honor to acknowledge the receipt of your despatch, No. 28, of the 18th ult., pm'porting to enclose a minute of your Executive Council, and also copy of a telegram founded thereon, and sent by you to the Secretary of State on the 18th ult., on the subject of the mission of Mr. J. D. Edgar to the Government of British Columbia. The minute of Council referred to did not accompany your despatch. (Signed) Edouard J. Lanwevin, Under Secretary of State, The Lieutenant-Govchior to the Secretary of State for Canada. [ British Columbia, GovEBNMBifT HousE, 9th June, 1874. Minute of Oonn- SiR, — ^With reference to mv telegraphic despatch to you of to-day's ^1, sth Junt. ^^^ J jjj^yg |.]jQ honoy to enclose a minute of my Ezecutive Conniinl 4' wmmmw U Aj^endix — Mr. Walkem's Mission. 1874 in accordance with which that telcffram was addressed to you, together with copies Telegram from of the documents referred to in the said minute, being a copy of a Hon. A. Mac- telegram to me from the Honorable A. Mackenzie, which, at his kenzie. request, I communicated to my Ministers, and a draft of the tele- Telegram from graphic message to you in reference thereto sent by me at the instance Lt-Governor. of my Ministry I have, &c. (Signed) Joseph "W. Trutch. (Cbyy of a Report of a Committee of the Honorable the Executive Council, approved by Sis Excellency the Lieutenant-Governor on the 9th June, 1874 {already printed, marked PP., page ^x — Mr. Walkem's mission.) Telegram — Mr. Mackenzie to the Lieutenant-Governor {already printed, marked 00., page xix.. No 5 — Mr. Walkem's mission.) Telegram — 2%e Lieutenant-Governor to the Secretary of State for Canada {already printed, marked QQ., page xx.. No. 5. — Mr. Walkem,'s mission.) U', Minute of Ex- ecutive Council. Copy of Tele- gram. The Secretary of State for Canada to the Lieutenant-Governor. Department Secretary of State, 25th June, 1874. Sir, — I have the honor to acknowledge the receipt of your despatch, Ko. 39, of the 9th instant, transmitting a copy of a minute of your Executive Council, together with a copy of a telegram addressed to you by the Honorable the Minister ofPublic Works, and also of a telegram addressed by you to the Secretary of State, in reply thereto, on the subject of the mission of Mr. J. D. Edgar to British Columbia in connection with the Pacific Railway. I have, &c., (Signed) * Edouard J. Langevin, : Under Secn'ctary of State. 2%e Lieutenant-Governor to the Secretary of State for Canada. (Copy of No. 46.) British Columbia, Government House, 26th June, 1874. Sir, — I have the honor to acknowledge the receipt of your despatch of the 10th instant, referring to my despatch, No. 28, of the 18th May, and informing me that the minute of Executive Council, which my said despatch purported to enclose, had not reached you. I beg to enclose herewith a duplicate copy of the said minute of Council, and of the telegram to you based thereon. I have, &c., (Signed) Joseph W. Trutch. Copy of a Beport of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor on the ISth May, 1874, {already printed, marked GO., page xvii., No. b—Mr. Walkem's mission.) Telegram — The Lieutenan t-G overnor to the Secretary of State for Canada, {already ^printed, marked KK., page xviii.. No. 6, — Mr. Walkem's mission. The Under Secretary of State to the Lieutenant-Governor. Department Secretary of State, 11th July, 1874. Sib, — I have the honor to acknowledge the receipt of your despatch, No. 46, of the 26th ultimo, covering a copy of the minute of your Executive Council, and of the telegram founded thereon, referred to in your despatch. No. 28, of the 18th May last, on the subject of the mission of Mr. J. D. Edgar to British Columbia. I have, &c., (Signed) Edouard J. Lanobvin, Under Secretary of Stale. ' 88 Vict. Appendix — Mr. Walkem's Mismn. i *?. ■» ■i f Telegram — The Honorable Mr. Mackenzie to the Lieutenant-Governor ^ I already printed , marked 00., page xix., No. 6— Mr. Walkem's mission}) T%e Lieutenant-Governor to the Secretary of State for Canada (already printedy marked QQ., page xx., No. 5. — Mr. Walkem's mission. The Lieutenant-Governor to the Secreta.y of State for Cknada (already printed, marked No. 1, page 4 — Mr. Walkem's mission.) Copy of a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor on the 11th June, 1874 (already printea^ marked No. 2, page 4, — Mr. Walkem's mission.) l^he Lieutenant-Governor to the Secretary of State for Canada (already printed* page 6 — Mr. Walkem's mission.) Copy of a Report of a Committee of the Honorable the Executive Council, approved by His Excellency the Lieutenant-Governor, on the 11th day of June 1874, (already printed,marked No Z, page 5 — Mr. Walkem's mission.) Ihe Lieutenant-Governor to the Secretary of State for Canada (already printed, page 6 — Mr. Walkem's missio7i.) Telegram — The Lieutenant-Governor to the Secreiciry of State for Canada (already printed, page 6 — Mr. Walkem's mission. The Under Secretary of State for Canada to the Lieutenant-Governor. Department, Seceetary or State, 11th July, 1874. Sir, — I have the honor to acknowledge the receipt of your despatch, No. 40, of the 11th ult., concerning a copy of a Minute of your Executive Council, in reference to the alleged failure of the Dominion Government to carry out the obligations of the 11th clause of the terms of Union, and recommending that the case be laid before the Imperial Government by means of a memorial, to be pre- sented to Secretary of State for the Colonies, by the Attorney-General of British Columbia as special agent and delegate of the Government of that Province. I am, &c., (Signed) Edouard J. Langevin. Under Secretary of State. Copy of a Report of ihe Honorable the Privy Council, approved by His Excellency the Governor-General in Council, on the 8th July 1S14, (already printed, . ^ marked No. 9, page B— Mr. Walkem's mission.) The Secretary of State for Canada to Mr. Walkem (already printed, marked No. S,page 8 — Mr. Walkem's mission. Mr. Walkem to the Secretary of State for Canada (already printed, marked No. B,page ^8 — Mr. Walkem's mission.) The Under Secretary of State for Canada to the Lieutenant-Governor. Department of Secretary op State, Ottawa, 13th July, 1874. Sir,— With reference to my letter of the 11th inst., I have the honor to trans- mit to you for the information of your Government, a copy of an Order of His Excellency the Governor -General in Council, and of a letter addressed to Mr. w \ 36 Appendix — 3fr. Walkem's Mission. 1875 \ 8th J 1 1874 Attorney-General "Walkem on the subject of the alleged failure of nth Ju^iyJ 1874. the Dominion Government to carry out the obligations of the 11th clause of the terms of Union. 1 have, &c., (Signed) Edouaed J. Lanoevin, Under Secretary of State. The Lieutenant-Governor to the Secretary of State for Canada {already printed^ page 9 — Mr. Walkem's mission.) Telegram — Mr. Mackenzie to the Lieutenant-Governor (already printed, marked LL., page xviii., No. 6 — Mr. Walkem's Mission.) Mr. Walkem to Mr. Mackenzie ( already printed, marked No. 10, page 9 — Mr. Walkem's mission. The Under Secretary of State to Mr. Walkem ( already printed, marked No. 11, page ' .. - . 9 — Mr. Walkem's misiimk. * » ■T, , ,. ' 'is.- The Earl of Carnarvon to the Governor-General {already printed, marked No. 14, page ^ 10 — Mr. Walkem's mimon.) Telegram — The Lieutetumt-Qovernor to the Secretary of State for Canada (already printed, marked No. 17, page 14 — Mr. Walkem's mission. The Lieutenant-Governor to the Secretary of State for Canada (already printed, ' marked No. IQ B., page IS. — Mr. Walkem's mission^ The Lieutenant-Governor to the Earl of Carnarvon, (already printed, marked No. 16o, page 13, — Mr. Walkem's mission.) Copy of a Report of a Committee of the Honorable the Executive Council, approved bjf His Excellency the Lieutenant- Govomor, on the Srd August, 1874, (already printed, marked No. 15, page 11, — Mr. Walkem's mission. leUgram — The Lieutenant-Governor to the Secretary of State for Canada (already printed marked No. 17, page li — Mr. Walkem's mission.) The Under Secretary of State for Canada to the Lieutenant-Governor, Department of the Secretary of State, 20th September, 1874. - Sir. — ^I have the honor to acknowledge the receipt of your despatch, No 68, of the 8rd mstant, and its enclosures, transmitting for the information of His Excel* leucy the Gtovemor-General, a copy of a despatch addressed by you to the Bight Honorable the Secretary of State for the Colonies, expressing the acceptance oy your Government of his Lordship's offer, as conveyed in nis despatch of tibe eighteenth of June last, to arbitrate in the difference between the Government of British Columbia and the Dominion in relation to the railway article of the terms of Union. Your despatch will be submitted for the consideration of the Government. I have, &c., (Signed) Edouard J. LANasviKr. Under Secretary of State. "iSr. Walkem to Mr, Mackenzie (already printed, marked No 6 , page 7, — Mr. Walkem's mission.) Mr. Buehngham to Mr. Wtdlum {^already printed, marked No. 7, page 7— Mr, 2t Walkem's mission.) .■#^ 'S \ I '•f"mii«miik:imifi mif)g,tm""n,m^ i^^'''w^l^iffmr'mmm^/mri''^vmmimi^m ^ ^Vqp*'^"^ '/ X #/ / / ? >