IMAGE EVALUATION TEST TARGET (MT-S) '^ 1.0 I.I 11.25 lU i^ ,2.2 mil Site ■ 1.4 11.6 /^ iV iV ■1>' >^ ^^^ <^\ '^^N o 4- ^.0 CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian institute for Historical Microreproductions Institut Canadian de microreproductions historiques 1980 ^^gj ?jyr-V ^uy,B w;_-g7^ Technical Notes / Notes techniques The Institute has attempted to obtain the best original copy available for filming. Physical features of this copy which may alter any of the images in the reproduction are checked below. L'Institut a microfilmd le meilleur exemplaire qu'il lui a 6t6 possible de se procurer. Certains d6faut8 susceptibles de nuire d la quality de la reproduction sont not^s ci-dessous. Coloured covers/ Couvertures de couleur D Coloured pages/ Pages de couleur D D Coloured maps/ Cartes gdographiques en couleur Pages discoloured, stained or foxed/ Pages ddcolo^des, tachetdes ou piqu6es Coloured plates/ Planches en couleur Show through/ Transparence Tight binding (may cause shadows or distortion along interior margin)/ Reliure setrd (peut causer de I'ombre ou de la distortion le long de la marge intdrieure) D Pages damaged/ Pages endommagdes D Additional comments/ Commentaires suppldmantaires Bibliographic Notes / Notes bibliographiques □ Only edition available/ Seule 6dition disponible Bound with other material/ Relid avec d'autres documents Cover title missing/ Le titre de couverture manque n Pagination incorrect/ Erreurs de pagination Pages missing/ Des pages manquent Maps missing/ Des cartes g6ographiques manquent D D Plates missing/ Des planches manquent Additional comments/ Commentaires suppl^mentaires The images appearing here are the best quality possible considering the condition and legibility of the original copy and in keeping with the filming contract specifications. Les images suivantes ont dt6 reproduites avec le plus grand soin, compte tenu de la condition et de la nettet6 da I'exemplaire film6, et en conformity avec les conditions du contrat de f ilmage. The las'f recorded frame on each microfiche shall contain the symbol —^-(meaning CONTINUED"), or the symbol y (meaning "END"), whichever applies. Un des symboles suivants apparaftr^^ sur la der- nidre image de cheque microfiche, selon le cas: le symbole — »> signifie "A SUIVRE", le symbols V signifie "FIN". The original copy was borrowed from, and filmed with, the kind consent of the following institution: Library of the Public Archives of Canada Maps or plates too large to be entirely included in one exposure are filmed beginning 'n the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: L'exemplaire film6 fut reproduit grdce ft Is g6n6rosit6 de I'dtablissement prdteur suivant : La bibliothdque des Archives publiques du Canada Les cartes ou les planches trop grandes pour dtre reproduites en un seul cliche sont filmdes d partir de I'angle sup6rieure gauche, de gauche d droite et de haut en bas, en prenant le nombre d'images ndcessaire. Le diagramme suivant illustre la mdthode : ' i 2 3 1 2 3 4 S 6 T wi R E PORT OF GEOEGE BIJEDEN, Esq., COMMISSIONER, ON THE "WESTERN PART OF THE DISPOTED TERRITORY bb^Wqing to the PROVINCE OF ONTAEIO, WHEREIN THE DOMINION OR MANITOBA GOVERNMENTS HAVE SINCE 1879, CLAIMED TO EXERCISE JURISDICTION irinM hu &vAtv o( iht f^flialatlve il!«$nn!ilif. l^RINTED BY C. BLACKETT ROBINSON, 5 JORDAN STREET. 1883. wiT. > y ( TI r WHl R EPORT OF GEOEGE BURDEN, Esq, COMMISSIONER. ON THE WESTERlSr FART OP THE DISPUTED TERKITOEY BELOrGING TO THE PROVINCE OF ONTARIO, WHEREIN THE DOMINION OR MANITOBA GOVERNMENTS HAVE, SINCE 1879, CLAIMED TO EXERCISE JURISDICTION. . f ilntert bu (DrtUr of tUe ^ti^i^Mivt ^ssemblif. :^iSi^ PRINTED BY C. BLACKETT ROBINSON, 5 JORDAN STREET. 1883. miHi G WES To the H SlR,- of occurr( Award of pretended incidental of which '. With Portage, o quarters ( miles fart] now callec by the ow boundary Rat ] M.cLaren i lowed in, nade it th md, generi In Ig Tom Engli ine of $20 ria; months REPORT GEORGE BURDEN, ESQ., COMMISSIOJStEK, ON THB WESTERN PART OF THE DISPUTED TERRITORY BELONGING TO THE PROVINCE OF ONTARIO. Toronto, 10th February, 1883. To the Honourable the Provincial Secretary of Ontario, Toronto: ■ ' • ' ' ;. Sir, — In obedience to instructions, I have prepared and herewith submit a record of occurrences within that part of the disputed territory in which, notwithstanding the Award of the Arbitrators, the Dominion and Manitoba Governments have, since 1879, pretended to exercise civil and criminal jurisdiction ; also a statement of such other incidental facts and circumstances as have come under my own observation or in respect of which I have obtained information since, in August last, I proceeded to Rat Portage. With the exception ot a few persons connected with the Hudson Bay Post, Rat Portage, originally called Keewatin, had no population until, in 1879, it was made the head- quarters of the contractors for Section B of the Canada Pacific Railway. But three miles farther west, on Section A of that road, was springing up, at Rat Portage proper, now called Keewatin, a flourishing village in connection with large saw mills established by the owners of timber limits on the Lake of the Woods, leased under the provisional boundary agreement of 1874. Rat Portage on becoming the distributing point for the firm of Manning, Macdonald, McLaren & Co., railway contractors, speedily acquired importance. Gradually, population lowed in, general stores and taverns were established, lumbering and mining parties nade it their point of departure for locations on the lake, a large hotel was erecied, nd, generally, the place assumed a character for enterprise and activity. In 1879, the Dominion Government proclaimed the Public Works Act in force Tom English River to Cross Lake. Under this Act an illicit liquor seller was liable to a ine of $20 for a first ofience ; $40 for a second offence j and for a third offence, $40 and ix montJis' imprisonment — the informer getting no portion of the fines. A Commissioner 2 of Police was appointed by the Dominion Government to carry out thw prnviBions of the Act. Several constables were also appointed, who were paid, jointly, by the contractors and the Government. In addition to providing penalties for the illicit sale of liquor,, the Act contemplates the suppression of the practice of carrying arms. The " North-West Territories Act " (otherwise called the " Keewatin Prohibitory Act,") which became law in 1874, was also assumed by the Dominion ofHcials to be in force in the territory. Under this Act the illicit liquor seller incurs a penalty of $50 for a tirst offence ; $100 for a second offence ; and $200 for a third offence. Imprison- ment is not provided for, except in case of non-payment of fine, and one-half the fin© when paid goes to the informer. The original intention of this Act was, undoubtedly, to make unprofitable the introduction of liquor into the Indian country by white traders j and the absence of imprisonment as one of the penalties, is accounted for by the fact that, in the then unorganized territories brought within the scope of the Act, there were no jails or lock-ups for the detention of offenders. Further, under this Act, the Lieu- tenant-Governor of the North-West Territories is empowered to issue permits to indi- viduals for the introduction of quantities not exceeding five gallons of liquor. The Public Works Act wus enforced at Rat Portage in two or three instances, by the tirst Commissioner of Police appointed by the Dominion Government (Captain Bent) in 1879. After that period, the then occupant of the office invariably carried out the Keewatin Act instead of the Public Works Act, and the same course was followed by his successors, Messrs. Brereton and McCabe, down to December last when, in compliance with instructions from the Minister of Justice at Ottawa, Mr. McCabe caused his constables to discontinue laying informations under the Keewatin Act in places contiguous to the line of railway. Among the buildings raised by the contractors of Section B, Canada Pacific Railway, in 1879, was a log-house intended to serve as a lock-up for prisoners. This lock-up wa» recognised in a proclamation, issued by the Dominion Government in .1880, as a common jail for Keewatin. (See Dominion Statutes of that year, page 82.) In the middle of December, 1879, Mr. W. D. Lyon, who had been acting under the Ontario Government as a Stipendiary Magistrate at Alberton, on the Rainy River, waa ordered to Rat Portage, representations having been made that there had been recently erected at Keewatin extensive mills and other works ; that there was a considerable number of men there, or in 'the neighbourhood, attracted by the Canada Pacific works and by the recent discoveries of gold and silver on the islands of the Lake of the Woods, and that a good deal of disturbance had arisen. Mr. Lyon was instructed that, as the territory was within Ontario, he had no authority to enforce laws which were passed for the District of Keewatin. Mr. Lyon arrived at Rat Portage on the 7th of January, 1880, having found the steamer frozen-up at the mouth of the Rainy Rivei", and having had to wait until the ice formation on the Lake enabled him to perform the journey on foot, which he did in eight days. In the course of his journey he learned that a considerable amount of whiskey was concealed on some of the islands in the lake, and also that several complaints had been lodged with the Dominion Magistrate against parties for the illicit sale of liquor. On the 5th March, 1880, it was represented to the Ontario Government that the people of Rat PortagR and Fort Frances were anxioua for the establishment of Division Oourts at those places as early as practicable ; that the people were being robbed every day i'>r the want of some process to facilitate the collection of small debts, and that the Dominion Government had declined taking any initiative in this direction. A petition to the Ontario Government from the leading citizens of Rat Portage set forth that, owing to the fact of there being no Court of Civil Jurisdiction as yet established, they were put to great inconvenience and loss for want of the necessary facilities to enforce payment of their outstanding debts. The loss and inconvenience complained of would, they said, be very much increased as portions of the works on the railway were finished, and the sub-contractors, traders and labourers began to move from place to place — many of them leaving the district and carrying their effects with them. The petitioners further com- plained that they had no power to detain the goods of defaulting creditors, or to enforce payment of lawful' claims. They concluded by saying that a great number of business transactions took place at Rat Portage, and that a majority of such cases came within the jurisdiction of a Division Court, and they impressed upon the Ontario Government the urgent necessity of establishing such a Court there at as early a date as possible. On the 28tli May, 1880, an Orderin-Oouncil was approved by His Honour the Lieut.-Governor of Ontario, establishing Division Courts, with head quarters at Rat Portage and Fort Frances. In the meantime, an Act, passed by the Ontario Legislature in its preceding session, making additional provision for the Administration of Justice in the disputed tenitory, had been disallowed by the Dominion Government. On 7th May, 1880, a Dominion Act respecting the Administration of Criminal Justice in the territory in dispute between the Province of Ontario and Dominion of Canada, received the assent of His Excellency the Governor-General. Under the provisions of this Act, crimes and offences committed within the disputed territory might be enquired into, tried and punished within any county or district of the Provinces of Ontario or Manitoba, or the District of Keewatin, as though such crimes or offences had been committed within thd county or district where such trial was had. It was also enacted that such crimes or offences would be sufficiently laid and charged, whether they were laid and charged to have been committed in Ontario or the District of Keewatin, and any sentences which might have been imposed upon offenders had the offences been committed either in an undisputed part of Ontario or an undisputed part of Keewatin, might be imposed upon offenders convicted under the Act. The Act also pro- vided for the withdrawal of prisoners from the jails of the Province of Manitoba to the jails of Ontario or vice versa for trial, and for commitments to the jails at Winnipeg or Prince Arthur's Landing in the event of there being no proper place of confinement for or within the locality in which the conviction was had or the offence wus committed. No provision was made for carrying out civil law within the territory, and the dis- pute as to title paralyzed, to a large extent, the efforts of the Ontario Magistrate for the prevention of disorder and the administration of justice. Nevertheless, he '-/as enabled to render effectual service for some time in checking the liquor traffic, and in breaking up the most notorious of the dens of prostitution which existed in the locality, owing to his having received the cordial co-operation of the railway contractors, 6 who had ceased to have confidence in the Dominion Police OommiHsioner, and who now offered Mr. Lyon the aid of their constables and the use of the lock-up they had erected at Rat Portage for the temporary confinement of prisoners. As evidence of the lawlessness which prevailed in the neighbourliood at this period, it may be stated that bands of whiskey peddlers on McDougall's Island and at Eagle Lake had armed themselves with knives and revolvers and openly set the constables at defiancft. The latter body succeeded in arresting three of the criminals at Eagle Lake. When the fact of the arrests became known, the remainder of the band forcibly rescued tlieir comrades by overpowering the constables, subsequently firing into the telegraph oftlce in which the latter had taken refuge. Early in 1880, the Ontario Stipendiary was granted the assistance of a paid constable, but the usefulness of the Magistrate became speedily circumscribed from the fact that prisoners committed by him to the lock-up heretofore placed at his disposal, were not received, on the ground that that edifice had been proclaimed by the Dominion Govern- ment a Jail for the District of Keewatin. As, from the class of ofTences common at Rat Portage, few persons were disposed to lodge complaints which might involve a journey to Winnipeg or Prince Arthur's Landing to prosecute, Mr. Lyon remained more or less inactive until the first sitting of the Ontario Division Court, on 16th May, 1881. Up to this time, the Manitoba Government had made no movement whatever towards inter- ference in ihe disputed territory, but the Legislature of that Province had passed an Act on the 4th March, 1881, consenting to an increase of boundaries easterly and westerly. This Act, passed on the invitation of the Dominion Government, was confirmed by an Act of the Federal Parliament, on the 2lst March, 1881. The following were the terms and conditions on which such increase was made : — " (a) All the enactments and provisions of all the Acts of Parliament of Canada which have, since the creation of the Province ci Manitoba, been extended into and made to apply to the said Province, shall extend and apply to the territory by this Act added thereto as fully and eSectually as if the same had originally formed part of the Province and the boundaries thereof had in the first instance been fixed and defined as is done by this Act, subject, however, to the provisions of Section three of this Act. " (b) The said increased Umit and the territory hereby added to Lhe Province of Manitoba shall be 3"biect to fJl such provisions as may have been, or shall hereafter be enacted, respecting the Canadian Pacific Railway, and the lands to be granted in aid thereof. " 3, All laws and ordinances in force in the territory hereby added to the Province of Manitoba at the time of the coming into force of this Act, and all Courts of Civil and Criminal Jurisdiction, and all legal commissions, powers and authorities, and all officers, judicial, administrative and ministerial, existing therein at the time of the coming into force of this Act shall continue therein as if such territory had not been added to the said Province ; subject neverthi ' ss, with respect to matters within the legislative authority of the Legislature of the Pro\ e of Manitoba, to be repealed, abolished or altered by the said Legislature." Although this Act was assented to by the Governor-General on the 21st March, 1881, no step had been taken by the Manitoba Government towards the civil, criminal or muni- cipal organization of any portion of the disputed territory up to the time of the sitting of the Ontario Division Court on the 16th May. A Bill was, however, introduced into the Provincial Legislature and assented to on 21st May, 1881, intended to pave the way f ( of Ma Vare: 1 Oover of its the pr tion tliat A shall or is wi way for such action, hy proclaiming a largo portion of that territory as within the limits of Manitoba. This territory was oreotod into a County, and called the Municipality of VarennoH. The followini; are the provisions of the Act to extend the laws of Manitolta to the Oovernniont of thoso parts of the Territory to be added to the Province by the extenaion of its boundaries. (Assented to 25th May, 1881.) "1. When and so soon us the Act of Parliament of Canada, mentioned and reclined in the preaml)le of this Act, shall come into force and operation l)y the terms of a proclama- tion to be issued in pursuance of the said Act by the Governor-General of Canada, as in that Act is provided, the territorial boundaries and limits of the Province of Manitoba shall be extended and increased as in that Act is mentioned and expressed, subject to the terms and conditions therein contained, and the said Act and all the enactments and provisions thereof shall have the force and effect of law in this Province so enlarged and increased as aforesaid, and immediately (hereafter the said additional territory and the inhabitants thereof and all officers therein within the executive authority or legislative Jurisdiction of tlie Province of Manitoba shall, as an integral part or portion of this Province, and as officers of the Government of Manitoba, be respectively subject to all the laws and executive regulations of the Province of Manitoba." "Provided always, and it is hereby declared and enacted, that all laws and ordinances in force in the said Territory so to be added to and to form part of the Province of Manitoba as aforesaid at the time of the coming into force of the said Act of the Parliament of Canada as aforesaid, and all courts of civil and criminal jurisdiction, all registration offices for the registration of titles to lands and all legal commissions, powers and authorities, and all officers, judicial, administrative and ministerial, existing therein at the time of the coming into force of the said Act of the Parliament of Canada shall continue therein until the same and every of them which are or is withi 1 the executive and legislative authority and jurisdiction of the Province of Manitoba, are or is from time to time as may seem expedient, by Order in Council to be published in the Manitoba Gazette, altered or changed and brought undef and subject to the laws of the Province of Manitoba ; and the Lieutenant-Governor in Council is hereby declared to have and possess fyill power and authority to pass all Orders in Council and revoke and substitute others therefor requisite or necessary in the premises." By a subsequent Act of the Province of Manitoba, also assented to on the 2")th May, 1881, it was provided that — "The New Territory lying to the east shall comprise one Electoral Division, to b© known as No. 30 or Rat Portage, and shall consist of all the territory lying to the east o^ Lake Winnipeg and eastward of Range 10, east of the prin- cipal meridian." The same Act provided that — " The Lieutentant-Governor in Council shall, within three months after the date of the proclamation of the Governor-General declaring 44 Vic, cap. 14, , • intituled : ' An Act to provide for the extension of the boundaries of the , , . Province of Manitoba,' to bo in force, issue his proclamation and cause writs to be issued for the holding of elections," etc., " provided, however, that the election of a member for Rat Portage or No. 30, shall not take place until the eastern boundary of the Province of Manitoba shall be fully known and decided," Another Act, assented to on 25th May, 1881, provided for the division of the Prov ince into Counties, and the County of Varennes was made to comprise — " All tlie remaining portion of territory within the Province east of Range 13 East, not included in any other County." » In another Act, assented to on 25th May, 1881, the Eastern Judicial District of Manitoba was made to comprise — ' ' All the remaining portion of the Province not comprised in the Western and Central Districts," the Counties composing which were named. , When it became known that Ontario assumed to have civil jurisdiction, and had given notice of holding a Division Court at Rat Portage, the newspaper conducted in the interest of the Dominion and Manitoba Governments at Winnipeg fiercely assailed the Government of Ontario, and demanded the withdrawal of Ontario from the Rat Portage and Fort Frances districts; and a small sheet published at Rat Portage went so far as to counsel resistance to a jurisdiction which all the leading men of the village and neighbour- hood had so recently invoked. But the feeling of hostility was by no means widespread ; and after the sitting of the Court, which passed off in an orderly manner, it became evident that no serious inteiition existed to question Ontario's right. Among the cases disposed of at the sitting were two garnishee claims against the firm of Manning, McDonald, McLaren & Co., Railway Contractors. Towards the end of May, it was openly stated that this firm would have the Ontario bailiff arrested if he attempted to sei^je their goods under process of Court. On the 13th June, a barrister from Winnipeg named Kennedy, employed by the contractors, appeared at Rat Portage and announced to the Ontario Stipendiary that the bailiff would be obstructed should he attempt to make execution. In pursuance of his threat, Kennedy subsequently li.id hands upon the officer in the contractor's store, and prevented his proceeding. Thereupon th ' bailiff arrested Kennedy, but the latter declined accompanying him unless he procured a warrant. Before that document could be prepared the bailiff was himself arrested by a Dominion constable for assault, and summarily placed in the lock-up, without being brought before the Dominion Police Commissioner. He was subsequently fined by the latter one dollar, or one day's imprisonment, while Kennedy was fined ten dollars and costs by the Ontario Stipendiary, for obstructing the bailiff in the execution of his office. A subsequent attempt of the bailiff to seize was similarly and successfully resisted, he being unaccompu nied by the requisite force. Kennedy announced his intention of testing the question of jurisdiction in the Manitoba Courts ; but as nothing was done in this direction, then or subsequently, he was probably advised to let the case drop,, pending action by the Manitoba Government. It was no secret at this time that had the Ontario Magistrate a strong force at his back the contractors were prepared to organize a still stronger, and that a collision would have been inevitable. On the Ist of July a proclamation was issued, adding to the Province of Manitoba the territory described in the Extension Act passed by the Dominion Parliament. The officials of the Dominion Government received (as they stated) instructions to conifer with the Attorney-General of Manitoba in all matters regarding the administration of justice within the territory, from the date of the proclamation ; but no forward movement was made by that officer or his Government within the territory until the end of September, when notice was given that a County Court for the trial of Civil causes would be held at Rat Portage in the following month under Manitoba jurisdiction. A Clerk was apjointed and gazetted, and writs were issued by the Court of Queen's Bencli at Winnipeg, directed against parties within the disputed territory. Meantime, no suits ; ■were entered in the Ontario Division Court ; the people who had petitioned for that Court, seeing its jurisdiction disputed, had appealed to Ottawa for redress, and been informed that, as Rat Portage would shortly be included within the Province of Manitoba when the Act extending the Boundaries of that Province should be brought into force, (unless it were already within the limits of Ontario), and as the administration of justice and the establishment of Provincial Courts devolved upon the Provincial authorities, it would not be proper for the Dominion Government to take action upon their petition. The first sitting of the " County Court of Varennes" was unmarked by any particular incident, except that the presiding Judge deferred giving judgment on defended cases until the next Court, to be held in June, 1882. In the undefended cases, the Clerk issued judg- ment and execution. The authority of the Court was disputed iu the case of Higgins et al. V, Davidson. The defendant refused to obey an order to appear at the Judge's Chambers at Winnipeg, and no order was issued to arrest him for contempt. The presiding Judge (Mr. Justice Miller) had made no secret of his having demanded and obtainod an instru- ment in the shape of a guarantee or bond of indemnity from the Manitoba Government, holding him harmless in the event of trouble arising through his holding a Court in the disputed territory. About this period extraordinary activity was manifested by declared supporters of the Dominion Government in prospecting for water privileges, timber limits, tie berths, etc., in the territory. Notwithstanding the fact that the Department of the Interior dis- claimed having granted permits to cut ties, posts, and telegraph poles, and notified its intention to refuse applications " until the dispute with Ontario was settled," many gangs of men were employed at various points on the lake in cutting for the Syndicate, wjiich would shortly have possession of the completed portion of the road from Eat x'ortage to Winnipeg, and thus have the means of transporting supplies to the contractors building the western sections of the road. , , . ,,, ., The contractors of Section B. were also credited with having secured a valuable privilege. Instead of procuring (as was contemplated at the time they entered upon their contract) timber from Minner.polis, suitable for bridges and culverts, at a cost of about $60 per thousand laid down, they obtained permission from the Dominion Government to cut logs in the vicinity o'l Eagle Lake, where they erected a saw-mill, and manufac- tured, it was reported, over and above their own requirements, a large quantity of lumber for shipping to the Winnipeg market in the ensuing spring. j A Mr. R. J. Short was also particularly active at this period in sending out parties on the lake to cut i-ailway ties for the Syndicate. He was stated to have a permit from the Dominion Government to cut one million feet. Over one hundred men, directly or indirectly in his employ, were cutting ties at Whitefish Bay in the month of November, 1881. A person named Lewis was also actively employed in lumbering. He had a permit from Ottawa to cut two million feet. The Dominion Regulations regarding Timber Limits and Dues in the North- West Territories, issued about this period, enabled the Syndicate, or its agents, to cut all the timber required in the vicinity of the Lake of the Woods at merely nominal figures. It was stated they had also a lease of twenty miles of country on each side of the railway mmmmm 10 track from Rat Portage to Prince Arthur's Landing, in anticipation of that portion of the road passing into their possession • In October, 1881, a Mr. McCarthy, an engineer in the employ of the contractors, ■who had been appointed Crown Timber Agent at Rat Portage, notified parties cutting ties on the lake to desist. It does not appear that his notice received any attention from the parties employed by Short or Lewis, or that any other parties so engaged ceased cutting for more than a brief period. During the fall and winter of 1881-2 a large quantity of timber was cut at various places on the lake and on the line of railway east of Rat Portage, and there is reason to believe no dues whatever were paid on a considerable portion of this timber, and that some of it was shipped west and disposed of in the Winnipeg market. In December, 1881, a new development of the liquor troubles occurred. A Domin- ion Magistrate named Brereton caused the arrest of a constable named O'Keefe for treating his (O'Keefe's) friends with seized liquor, held in his possession while awaiting an order for its destruction. O'Keefe was convicted, and fined $100 and costs, which he paid. Immediately afterwards he lodged a complaint with McCarthy, the contractor's engi- neer, who, in addition to being Crown Timber Agent and Postmaster, was an acting Stipendiary Magistrate of Manitoba, that Magistrate Brereton had doTie precisely as he (O'Keefe) had done, viz. : treated his friends with seized liquor ; and O'Keefe applied to have the conviction quashed on the ground that he (O'Keefe) held the liquor by virtue of his office, and that the giving away of a portion of it was simply an act of indiscretion, to be dealt with by his employers. Brereton also claimed that, he had lawful possession of the liquor, and stated that he saw no harm in "giving the boys a drop." Both parties went to Winnipeg to seek redress, and the Winnipeg Times, of the 6th January thus alluded to the cause of trouble : — " The arrival of a number of persons from Rat Portage last night enables us to throw some light on the reported maladministration of justice in Keewati.i a short time ago. It would appear that Mr. Rideout, of the Rideout House, Rat Portage, had four barrels of beer en route to his place on Christmas eve, in bottles, which were packed in barrels, in direct violation of the liquor law of the territory. The host, fearing trouble, thought the best plan was to acquaint Chief of Police O'Keefe, and trust to his clemency in the matter. He, however, made a miscalculation, for the moment the officer of the law was made aware oi the fact he had no alternative but to seize the liquor, which he did, and had it removed to his office. He notified Mr. Rideout of the seizure, supposing that person would come to claim it, whereupon he would lay an information against him for importing the liquor. Mr. R, prudently refrained from claiming it. Then Mr. O'Keefe notified the contractors, Manning, Macdonald & Co., and Stipendiary Magistrate McCarthy, of the seizure, and, pending developments, held on to the beer till the follow- ing Thursday, when he received orders to destroy it. In the meantime two or three bottles of beer had been taken from the barrels, and abstracted by two or three visitors in Mr. O'Keefe's office on Christmas day. This having transpired, it was made the ground for an action against O'Keefe for having liquor in his possession, upon which he was arraigned and fined $100 and costs. The officer claims that it was a piece of sharp practice upon the part of the magistrate to gratify the wish of his friend Rideout, and he still holds that he had a right to have the liquor while under seizure in his custody. The chief thought to himself that it was a long lane that had no turn, and he remembered that on the 14th day of December last he had seized a quantity of whiskey that was passing over the C. P. R. east, and it was placed for safety in the express office at Rat JPortage. In the interim Stipendiary Brereton dropped around, mtide free with the liqt offid VIOO repd 11 liquor, and treated his friends to some of the contents of the casks there stored. The officer therefore concluded to have his revenge, and arraigned the magistrate before Act- ing Stipendiary McCarthy, who fined Capt. Brereton $100 and costs for dispensing liquor in violation of the Keewatin liquor law. The money was paid over under protest. All the parties are now in the city, and each seeking redress against the other, the upshot of which will be made known in a very few days." Cases quite as flagrant as that adve ted to have been of common occurrence. The modus operandi by which a prohibitory liquor law is made to serve other purposes is reported to be as follows : — A person in Rat Portage keeps a saloo.:, and on the other side of the street he has a billiard room where liquor is dispensed at a bar. The keeper of the billiard room gets a quantity of whiskey and sells it openly. The constables frequent and drink at both places. When they think the proper time has arrived, they lay an information against the keeper of the billiard room. The offender is brought up and, for the first otfence, is fined $50 and $7 costs. As he pleads guilty there is no trial. Then the owner of the saloon, who is, de/icto, the owner of the billiard room, becomes the keeper of the latter, begins to sell and, when the proper time comes he is, in turn, fined $50 and costs : again no trial. When both the saloon keeper and billiard room keeper have been fined, it becomes necessary to avoid their being again informed against and fined in heavier amounts. A stranger is then employed in each place and he becomes the nominal proprietor, recognized as such by the Dominion con- stables, who decide when another information is to be laid, when, again, the minimum fine under the Keewatin Act is inflicted. It Avould never do, apparently, to go on to second and third convictions ; such a course might have the eflfect of stopping the traffic. Liquor selling is so profitalile that, it is stated, and I believe, with perfect truth, that the proprietor of the saloon and billiard room adverted to, has been by himself and servants — i.e., the temporary nominal proprietors — fined over $1,200 in one year, and, moreover, that he has been quite content to pay it, and also a large weekly allowance to the con- stables, for the impunity he has been permitted to enjoy. The traffic openly flourished and the liquor interest was the most powerful in the com- munity. Informations were nearly always laid verbally by the coiistables, and, not infrequently, convictions were unrecorded. Levying a periodical fine on transient bar- keepers had come to be regarded as another way of exacting a license fee ; the illicit dealers, as a general thing, were satisfied, because the system secured them immunity from imprisonment, and did not stop the traffic. It was quite common to find the informing constables carousing in taverns immediately after the proprietors had been fined for selling liquor. At this time, the Manitoba acting Stipendiary, — McCarthy, the engineer of the con- tractors, — attempted unsuccessfully to put a stop to the whiskey traffic on the line of rail- way. The reason alleged for his failure was, that the constables at Rat Portage were in collusion with whiskey peddlers on the road, who had a monopoly of the business. In- formations were invariably laid against strangers who attempted to sell whiskey in the camps, but recognized offenders enjoyed impunity. Of all the evils that attended the traffic, perhaps the worst was the facility with which the Indians procured liquor. It was quite common to see them excited by drink in the daytime. An Indian pilot of a steam tug carrying passengers, went out in charge of the craft while in a state of intoxication. One of the passengers objected, with the result that the captain threatened to put him off the boat for interfering with his (the captain's) dutj . Complaints were rife among the lumber mill owners, whose operations were suspended sometimes for weeks together, through there being no check on whiskey selling. The mills of the Keewatin Company were shut down from no other cause, and similar trouble occurred at the mills of tue Rainy Lake Lumber Co., at Fort Fiances. At the latter point, an outlaw m.med Connors, had established a -'hiskey shop on the American side of Rainy River, procuring his supplies overland from Hallock in Mi. ) tions were passed condemning the couduct of the Dominion officials, calling upon the Dominion Governm'3nt to order an investigation into the acts of Mr. McCabe, frcm the date of his appointment as Magistrate, and to furnish and publish a statement of all fines collected by him dur'n^ his tenure of office;, and further calling upon the Mayor to swear in such a number of special constables "to protect the rights, liberties and interests of Oie citizens as he might think necessary and proper." Several incendiary speeches wer mail on this occasion, notably one in which the people were incited to revolt if Manitoba's authority were further interfered with by the Dominion officials. The Mayor declined to swear in special constables, knowing that the intention was to call upon them to perform illegal acts. Ihe consequence was the formation of a society called the Protective Association, whose objects were stated to be the forcible prevention of committals to Prince Arthur's Landing jail for infractions of the Dominion liquor laws and the forcible possession of all liquor seized and held by the Police Com- missioner or his constables. This Association held meetings in seci ot, and the fifteen or more members composing it were said to bo bound together by an oath. Rightly or otherwise, some of the members were credited with having burglarized the Police Com- missioner's office during his absence in Winnipeg, and with having abstracted not only all he seized liquor the^ could find, but also the books of record connected with his official position. Since that period, no informations have been laid under the North-West Terri- tories' Act, the Police Commissioner having, as he saii\ received instructions from the Minister of Justice to cease acting — as he had hitherto done — under the Prohibitory Act, on the line of railway or adjacent thereto, and to confine his operations wholly to the Public Works Act, which may remain in force until July, 1883, or later, if the road be not then handed over to the Syndicate. Meantime, the Manitoba Government discovered that it had no power to issue a liquor license in the disputed territory. The Dominion Commissioner has left his post, and the only magistrates now acting under the Manitoba claim of jurisdiction are the Mayor and the Manitoba acting Stipen- diary, who, as before stated, is an engineer in the employ of the railway contractors. The illicit whiskey traffic is increasing in volume ; no attempt has been made for some weeks to convict any of the oflfenders ; lumbermen, railway labourers and Indians are to be seen rolling about the streets even in the daytime, and the nights are made hideous by the demoniacal screeching and yelling of .drunken savages. On the night preceding the departure of the Dominion Police Commissioner, a demon- stration was got up in front of the so-called " licensed " hotel, another bonfire was lighted, and the Commissioner and two of the railway contractors burnt in effigy. The object of this orgie was, mainly, to express satisfaction at the non-conviction of a man who had been on trial before Magistrate Brereton for stealing the seized liquor from Commissioner McCabe's office. It is satisfactory to be able to report that respectable people held aloof, and condemned this exhibition of sympathy with successful crime — the outcome, it was believed, of the society called the Protective Association. There can be no question that a considerable section of the population, however, is largely demoralized by the whiskey traffic, and that many are ready to resort to acts of violence to secure a perpetuation of their alleged " privileges." In a former part of this report I have pointed out how the provisions of the Keewatin Act were systematically evaded by the informing constables. It now becomea my duty to state that serious complaints have been made against the Dominion Police Commissioner McCabo, and that similar complaints were, made against his predecessors who held office in 1879-80. On 18th June, 1882, charges were made to the Minister of Justice at Ottawa against Mr. McCabe by a discharged official, named O'Keefe. O'Keefe had occupied the position of Chief Constable ; was in the confidence of, and was partly paid by, the contractors, but had been dismissed by the Police Commissioner, ostensibly for disobedience of orders. O'Keefe's charges against Mr. McCabe were of a very grave character but, so far as is known, -without any inquiry having been instituted into their truth or otherwise, and without any opportunity having been afforded the accused to rebut them, O'Keefe was, at the end of August ordered, at the instance of the Minister • of Justice, to return to his duty as Chief Constable — a position he has since continued to hold. Some of the accusations against the Commissioner were openly advanced by private citizens and by the local newspaper, and quite recently, at the indignation meet- ing before adverted to, a series of resolutions impugning Mr. McCabe's conduct passed without a dissenting voice. A draft of those resolutions was forwarded to the Minister of Justice with a view to the institution of anenqufry, but nothing appears as yet to have been done to satisfy the alleged grievances ot the complainants. I may add, as some of the results of the recent excitement at Rat Portage, that ihe Messrs. Kideout, the keepers of the licensed hotel, have brought actions against the Police Commissioner for illegal arrest and imprisonment, and claim damages in $10,000 and $5,000 respectively. They also brought an action against Chief Constable O'Keefe at the sitting of the County Court of Varennes in December, for illegally holding a quantity of liquor for which a writ of replevin had issued. The plaintiffs argued that any writ issued from the County Court of Varennes should be respected, that it was the duty of the Constable to give up the goods, and that they (the plaintiflfs) were entitled to damages for the loss they had sustained. It was also contended that O'Keefe had no right to seize the ale, as the Keewatin Act was not in force in Rat Portage. The Judge stated that this was an important case ; he would agree to consider the matter fully, and would reserve judgment. No decision on this case has yet been rendered. The non-ratification of the Boundary Award is not only demoralizing the population and seriously prejudicing law and order in the territory, but settlement is being retarded and legitimate development discouraged. Not a street in the town is yet graded ; huge boulders protrude on the roadways ; there is no pretence at drainage or any other sani- tary improvement, though the natural facilities therefor are excellent. No public build- ings exist unless a log school-house built in 1879 by subscription, can be so called. There has been no attempt at roadmaking in the neighbourhood of the townj the only ameliora- tion in this direction has been the building of a bridge over the railway track connecting the Hudson Bay town lots separated by the cutting. This work, done at the cost of the Hudson Bay Company, has not yet been practically utilised. The corporation organised under a Manitoba charter has been unable to accomplish any town improvements for lack of the necessary funds. Its six months of existence has had no other results than the passing of by-laws which have not been enforced, the making of an assessment which it. 1« has not attempted to levy, and the incurring of expenditures which it has had no means of defraying. The latest p'i.i,se of the liquor question has developed within the last fortnight. The Council and the so-called Protective Association seem to have made common cause, and, finding the Manitoba Government unable or unwilling to take further action, the Mayor has undertaken the responsibility of controlling the liquor traffic, the issue of licenses, and the protection of the licensees from prosecution either under the Keewatin, Public Works, or Ontario Acts. A sum of $250 has been paid by one tavern-keeper into the Municipal Treasury on the express understanding that he will be protected in his •' rights." As evidence of the feeling which now obtains in the village, the following reference to one of the contractors of Section B of the C. P. R. is taken from the local paper of February 3rd. After alluding to the statement that the contractor in question had recently visited Ottawa in connection with the application of the Public Works Act for the purpose of suppressing liquor selling, and assuming that his mission had been a failure, the paper says : — " It is safe to suppose that the Dominion authorities will allow the Manitoba Government undisputed sway. If not, the people have the remedy in their own hands, and if they allow last summer's oppression and interference to be repeated, then they are a diflferent class of people than what we take them for. The next time a bonfire is started let the substance be burned instead of the shadow ! " Mr. Shields, the contractor in question, had, with one of his colleagues and the Dominion Police Commissioner, been burned in effigy in December at the instance of members of the Protective Association. " . The contractors are now reported to have withdrawn their special police force, detailed to maintain order in the territory, and instructed them to devote their time to protecting the contractors' property, " arresting no man except for murder." In October, 18S2, the Manitoba Government appointed a Registrar for the munici- pality of Varennes. This official was provided with the necessary appliances for his office by the Government, which exacts a percentage on all the fees received. It is understood that a large number of deeds, more or less of a provisional or temporary character and arising, mainly, from the transfer of squatters' rights, have been deposited with this func- tionary, at once for safe keeping and to prevent fraudulent duplication. One, and that not the least injurious, of the results attending the non-ratitication of the boundaij' award, is the facility afforded adventurers for pretending to acquire mining locations in the disputed territory. Hitherto it has been no uncommon occurrence for such persons to go out prospecting on the lake, returning in a week or ten aays with the announcement that they have discovered a bonanza. They then proceed to engage a surveyor who, under instructions, maps out a location of twenty-five, fifty or a hundred acres, as the case may be. When this is completed, a notification of the " claim " is sent by the " owners " to Ottawa, where it is duly noted, and registration is had with the Registrar of the " County of Varennes." Under cover of these quasi official sanc- tions, it becomes possible, though the process is not without difficulties, to organize a joint stock company for working the " claim," and to place the shares on the Winnipeg or 19 Toronto Mining BourseB. In this way, doubtleHH, many wildcat Hchenu'H will bo launchod, resulting in the cliscouifiture of all but the proniotcrB. There are now six mining companies, more or less legitimate, either actually organized and working, or in course of organization for working in th(( Lake of the Woods. Of the practical results attained, it is, perhaps, to soon to speak, as stamping mills are not yet in operation. Mining experts claim that free gold exists in quartz and decomposed rock in some localities, that will yield from $30 to ^'250 per ton. In one instance a mixture of quartz and mud, taken at a depth of GO feet, was found to assay at the rate of $1,000 per ton. Should the veins prove half as rich as they are declared to be, the region will prove a veritable Eldorado. Capitalists, however, have hitherto been disposed to he. cautious, and mining stock has been a drug upon the markets. But the dullness which has followed the real estate boom in Winnipeg, is already inducing speculators to turn their attention to this new field of operations, and the daily trains from that city to Rat Portage, are crowded with passengers intent on prospecting or investing. Next spring and summer will probably witness the influx of thousands of miners from all parts of the continent, attracted by the fabulous stories now being sent abroad by the holders of " registered claims." A year of experiment will probably enable all interested parties to judge whether this portion of the disputed territory is likely to become more famous for gold produc- tion than Ballarat or the Sacramento, as is confidently claimed by those wliose operations have not, as yet, extended beyond excavating and assaying. Specimens of coal have been found at the foot of the Rainy River, Buffalo Bay and other places, but no trace of coal formations has yet been discovered. Mining is being extensively prosecuted in the Pigeon River district and at other points on the West shore of Lake Superior. A New York company is operating a gold mine said to yield good returns at the Height of Land, forty-five miles from Prince Arthur's Landing. Three lumber mills and a paper mill are now in course of erection in and near Rat Portage, another lumber mill is shortly to be commenced, and one or two flouring mills are i)rojected. The prospects of the legitimate lumber companies having mills at Keewatin and Port Prances, and those now engaged in building mills at Rat Portage, are encouraging, but it is likely that, in the near future, they may cease to obtain the high pric(>s for sawn lumber that have hitherto ruled in the Winnipeg and other western markets. Large shipments of this commodity destined for those markets will, it is reported, be made from the Georgian Bay next spring at rates of freight through to Winnipeg that will enable the shippers to secure good profits and considerably undersell those who have hitherto controlled the market at rates ranging from $26 to $40 per thousand. A permanent reduction, must, however depend on rates of freight and sufliciency of carrying accommodation. Last year the Kee- watin mill-owners could not supply the demand owing to lack of railway facilities, and they are anticipating a similar and even less satisfactory experience this year. The road from Prince Arthur's Landing to Rat Portage is still in the hands of the contractors, who are themselves, largely interested in lumbering on the line of route, while the product of the additional mills being erected at Rat Portage must add greatly to the strain on the carrying capacity of the road. Those mills are to be furnished with power for turning 20 out 450,000 foot of Hawn lumber evory twonty-four iiours, all of which must find itH way ov«r tlu) road to Winnipeg and further west. TIh) pint! grown in the vicinity of thn Lake of tho Woods is principally of the red Norway species which is etjual if not superior to tli(! Georgian Bay or Ottawa pine for diuuaision luntber, but inferior for finishing purposes. It is besides comparatively of smaller growth and much more knotted. i On the whole, the disputed territory is estimated to contain 20,000 squons miles of limits, equal to 12,800,000 acres, rjunibermen geni^rally calculate that an acre will cut about 2,000 feet, which would give for this territory 2.'), 000,000,000 feet, or say twenty-five billions, worth to this Province, at six dollars ptsr thousand stumpage, one hundred and fifty millions of dollars. Acco;ding to a wcill-known and recognized authority this sum, is rather an under than an over-estimate. In addition to red and white pine, there is found all over the territory, oak, tamarac, birch, spruce, hemlock and poplar, all of exceptional value owing to the proximity of the western prairies in process of settlement, where no timber is grown. Poplar will bo especially valuable for paper-making, and the supply is practically inexhaustible. It will shortly bo utilized for that purpose in a water-power mill now being built near Keowatin. It may be adilcd in this connection that an excellent grass not unlike the esparto grass, largely exported from Spain to England and other parts of Europe for paper making, is found in abundance in the Rainy River region. On the Big and Little Forks Rivers, which flow into the Rainy River near Fort Frances on the American side, some magnificent pine limits have lately been secured by St. Paul and Minneapolis lumberers. The timber on those limits cannot be utilized for the American markets owing to lack of railway communication. It must be rafted on the Rainy River and towed to Rat Portage, where it will probably be converted into sawn lumber and despatched over the Canada Pacific to Western Markets. . The Section B. contractors were granted possession by the Dominion Government of a mill privilege at Eugle River on the 15th May, 1881, " on the understanding that in case of the property remaining in the ownership of the Dominion on the settlement of the Western Boundary of (.)ntario, they would be confirmed in possession of the said privilege, with a reasonable portion of land in connection therewith, on such terms and at such price as might be fixed by the Governor in Council." This firm has not only been furnishing timber for railroad construction, but has been supplying sawn lumber to the Winnipeg market, the proceeds accruing therefrom going into the pockets of Manning, McDonald, McLaren & Co. Last fall they dfiered to sell a lumbering firm in Winnipeg one million feet of logs and one million feet of sawn lumber approximating in value to thirty thousand dollars. The offer was declined but a sale was subsequently effected to other parties. As the firm only had permission to cut for purposes of railroad construction, . it must be assumed that the Crown Timber Agent was not in a position to exact dues on behalf of the Government for timber otherwise appropriated; so that no record is likely to exist by which any portion of those dues can be placed to the credit of Ontario. It is, besides, a well-known fact, that since the award, a well-known lumber firm who had been cutting for yeai's on limits properly assigned to them had procured from the First Minister more productive limits in various parts of the Lake of the Woods other Ihaii thr Muid nsHigiuMl limits on wliich, up to 1880, tlicy had paid no duos to the; (toveninient. I havi! been inforinod that Mr. It. .1. Sliort, who has boon hirgoly ongagod in cutting tioH for tho Syndicato for th« last two .sdaHons, recently socurod from tho Dominion Clovorninont a Hfty-milc tinibor limit at Turtlo Portage in tho Lake of tho Woods, outside the twonty-miln limit claimc^d by the Camida Pacific Railway on each side of th(^ track, and that .sc^vcral parties are now engaged in cutting ticH and saw-logs thereon. I am also credibly informed th it while Hhort's right to cut at Turtlo Portage is recognized l)y the ' vn Timber Agent at Winnipeg, it is denied by the Deputy Minister of the fntnr* 1 >ttawa, who declares that no limit has been granted to any person. Accor ..i information recently furnished by Short to tho Winnipeg Sun newspaper, ho had IfiO men in the woods in January, aiul was constantly adding to the number, fn gangs of forty they operate in much the same* manner as Ontario lumber gangs. Chop- pers get $30 per month and board, and hewers iSSO. Up to tho t'-enty-third December, 12.^),000 ties were taken out, besides a large number of telegruph polos. The ties were principally red and white pine and tamarac, which are much harder than similar woods growing in (Ontario, and are said to be as durable as cedar. Of logs 5,000,000 feet have been dressed already, and Short expects to have 10,000,000 before the season is over. I am also informed that Messrs. Macdonald & Shields, of the Section B contract, have engaged a number of parties to cut timber this season in various directions, chiefly, howevei', on the line of railway and within easy access to their saw mill at Eagle River, and that they calculate on an out-put of about 6,000,000 feet this spring. One of the large lumber companies, having liniita on the lake, found a difficulty in procuring tho requisite number of men to work in their shanties during the present winter, and was approached by a party who holds a permit from the Dominion Govern- ment for cutting two million feet, and asked whether the Company would buy from him several million feet of logs which he expects to have rc.wly for shipment in the spring. I do not know whether the offer was entertained, but there is no doubt about its having been made. This party is now operating on the lake, and while his alleged permit only allows him to cut two million feet, ther ; is reason to believe that he had far exceeded this quantity before he went to the woods in December, though the Crown Timber Agent at Winnipeg professed to think otherwise. Another firm having limits or a permit to cut timber on the lake is that of Bailey, Buhner »fe Co., who have large parties operating this winter, at or near the Big Traverse, some forty miles south of the railway track. Bailey claims to be a relative of the Hon. J. H. Pope, Minister of Agriculture. His partners are sons of Mr. Henry Bulmer, of Montreal, who was a candidate for Montreal West at the last Dominion election. I can- not learn whether this firm has a permit or a limit. Tho general opinion is — and it is borne out by collateral facts — that Bailey, Bulmer ife Co. have a sort of roving commission to cut timber where they can find it, and that this commission is contained in a letter from the Hon. Mr. Pope. But whatever the nature of their authority, it is sufficient to satisfy the Crown Timber Agent at Winnipeg, who recognizes their right to cut. This Company have several parties now on the lake, and it is expected they will float in logs early in the springy calculat^id to produce from nine to twelve uiillion feet of sawn lumber. 22 In accordance with instructions, tenders • j ) invited in the public press last August for tlie construction of a Jail and Court House at Rat Portage according to plans and specifications furnished by the Ontario Public Works Department. Only one tender was recoiv^ed — that of Oliver and Sutherland, for $8,950. Under the circumstances of there being only one tender, and the amount being in excess of the appropriation, it was thought proper to solicit further instructions in the premises. At the Attorney- General's request, Stipendiary Magistrate Lyon prepared a memorandum of the cost of labour and material at Eat Portage, with the result that it was deemed advisable to send up from Toronx-o a foreman of works and the required number of men, together with a supply of dressed lumber for the erection of the building. The party arrived on the 30th November. Fair progress has been made with the work, and the building will be com- pleted and ready for occupation by the middle or towards the end of May. I may add that the Hudsr-n Bay Company claim 640 acres of land at Rat Portage under an Order in Council dat id Windsor, Eng., 24th June, 1870. This Reservation, according to a letter received by theii Agent from the head office in Winnipeg, was the result of a " special arrangement with the Dominion Government." It was staked out by Mr. Gore, P.L.S., under " special instructions " from the Department of the Interior. It is on lots acquired from the Hudson Bay Company that the Jail and Court House are being erected. With regard to the appropriations made by the Ontario Government for roads and schools within che disputed territory, I have to report that a school was organized last fall by Stipendiary Lyon at Keewatin Mills, and it is now in full operation under an experienced teacher holding an Ontario certificate. The people of the village are greatly gratified in that the Government has given so practical a proof of its solicitude for their interests, in granting a sum of $200 to assist in supporting their school. A sum of $300 was granted by the Ontario Government towards aiding in the estab- lishment of a school at Rat Portage. A meeting of the inhabitants was called for the pur- pose of naming trustees and organizing. Trustees were appointed and a sum of $226 was promptly subscribed. But the promoters of the municipal organization under Manitoba also called a meeting for the nomination and election of trustees under the Manitoba Act. They did not succeed, however, in obtaining the required funds wherewith to start a school and, eventually, a school was organized with the assistance of the Ontario grant and it is now in active operation under a teacher who holds a Nova Scotia certificate. It is understood that the additional sum to make up the $350 required has been promised by gentlemen of Winnipeg interested in Rat Portage. Mr. Lyon, who is now at Fort Frances, is employed in establishing a school at . that place, the Ontario Government having, in response to an appeal, granted $200 in aid. Here, as at Keewatin, the people are unanimous in their appreciation of the Govern- ment's liberality. Recently, information was conveyed to the Ontario Government to the effect that small-pox had broken out in some of the lumber camps near Rat Portage, that one case had developed at a hotel in the village; that the Manitoba Government had been appealed to for help, and that an answer had been received stating that, while that Government would defray all necessary expenses incurred in suppressing the disease outside of Rat Portage, the municipality must depend upon i+s own resources. Recognising the tact 23 press last ig to plans one tender istances of jriation, it Attorney- he cost of lie to send tier with a a the 30th ill be com- [ may add • an Order to a letter i "special re, P.L.S., s acquired id. roads and 3d last fall cperienced ratified in interests, the estab- r the pur- n of $226 Miinitoba itoba Act. bo start a ;rant and has been school at d $200 in e Govern- rtect that ) one case appealed vernment ie of Rat the fact that the latter had no corporate fu ids at its disposal, the Ontario Government placed a sum of $300 in the Supplementary Estimates submitted at the close of last Session, for the purpose of aiding the local Board of Health in stamping out the epidemic. This sum has been accepted and appropriated. The Board of Health passed a vote of thanks to and the inhabitants generally acknowledge the generosity evinced by the Government and Legislature of Ontario in making the grant. The road allowance of $400 for improving the streets of Rat Portage has not been appropriated for the reason that the requisite labour has not been, up to the present time, available. With reference to the grant of $6,000 for the construction of a road from Fort Frances to the Long Sault on Rainy River, I am advised that little has yet been done by way of survey, but Stipendiary Lyon has explored a portion of the route during the present winter. The road is much required by settlers anJ lumberers. Owing to the strong current in the river between the two points, the Ice is seldom sufficiently strong to bear up teams — a serious matter particularly for lumbfjrers who have to move their winter supplies after the ice has formed on the lake. Several teams have recently gone through, with the result that horses have been drowned ana supplies damaged or destroyed. The opening o road at an early date will, besides being an advantage to the lumberers and squatters, tend greatly to promote settlement in one of the most fertile and beautiful sections of country to be be found in the whole of the great North- West. In this connection it may be noted that application is to be made to the Par- liament of Canada, and to the Legislatures of Ontario and Manitooa, for an Act to incorporate a Company for the purpose of acquiring, constructing and maintaining booms, dams, slides, piers and other works in the rivers, lakes, streams and creeks, and banks thereof, for the transmissior. of saw-logs and all !ands of timber down the course of the river flowing westward from Hunter's Island, through Rainy Lake, down the course of the Rainy River to the Lake of the Woods, and the streams, rivers and creeks flowing into the said rivers. Rainy Lake and Rainy River, in the Province of Ontario or Province of Manitoba or District of Keewatin, and for the further purpose of, in pny other manner, improving the navigation of the said streams, rivers and lakes for the purposes aforesaid. This company is composed of leading lumbermen operating in the disputed territory. A deput .tion waitc upon the Attorney-General of Manitoba in September with a view to ascertaining whether such a charter would be approved by the Government of that Province, and received an affirmative answer. The boundary dispute greatly retards the improvement and organization of the Rainy River region. Those who squat on agricultural lands are ignorant of the terms on which they may ultimately be allowed to retain possession ; besides which, those who have made a clearing on the margin of the river and cut the timber thereon into cord-wood, have been compelled to pay dues to the Dominion Government at the rate of 25 cents per cord. Even the owners of the steamboats, who were located on lands by the Dominion agent previous to the fli^pute, who have made the required improve- ments thereon, and have held possession for a longer period than necessary under ordinary circumstances to entitle them to their patents, are compelled to p .- dues on cord- wood. Persons who have been settled on the river bank for six and seven years. 24 and who may be supposed to have vested interests, are not allowed to cut telegraph poles, ties or piles, without paying double dues, unless they procure a license from the Crown Timber Office at Winnipeg — a treatment of bona fide settlers in marked contrast to that accorded to the timber marauders before referred to. On the other hand, persons who have surveyed timber limits and gone to consider- able expense in preliminary explorations and surveys, find those limits entered upon and in course of being stripped by adventurers armed with permits from Ottawa, while all the "satisfaction they can obtain in answer to representations made to the Minister of the Interior, is found in the stereotyped reply that their communications will receive attention. For the past three or four seasons settlers have been occupying locations on the Canadi'^n side of the Rainy River. The population of this district is likely to increase with the expansion of the lumbering and mining industries. But hardly any settlement has taken place in other parts of the disputed territory, excepting in and near Rat Portage, Keewatin and Prince Arthur's Landing. One half of the entire district is estimated to have a water surface. Agricultural land exists in patches in nearly every section of the country, but it is not likely ever to be made available, owing to insuperable difficulties in ^he way of opening roads, even supposing — a moat improbable contingency — that it would pay to construct them. In the Rainy River region, and generally where it is found in the neighbourhood of the Lake of the Woods, the land is exceedingly pro- ductive. Cereals — particularly wheat, barley, oats and corn — of excellent quality and colour, yield abundantly; also every kind of garden produce and roots. Melons and tomatoes are always sure crops, and onions raised f; . Mack seed attain great size, even when sown so late as the 1st of June. The yield ol > .toes in 1881, in a clearing where the seed had been lightly covered with broken sod, was 4oO bushels to the acre. A portion of the crop was shipped by steamer from the Rainy River to Rat Portage, where the people were eager to purchase at $1.25 per bushel. The hay crop is also abundant, and oats have been known to thresh out 80 bushels to the acre with, as is the case with all other cereals, very heavy straw. Here, as all over the territory, is a luxuriant growth of wild hops, black and red currants, raspberries, cranberries, grapes, blue berries, plums and cherries. The land is peculiarly well adapted for hops and barley. Communication is had with all points on the Lake of the Woods in summer by steamboats and canoes, in winter by teams and dogtrains. A railway is projected to run between Duluth and Winnipeg, which will pass near the Rainy River and help greatly to open up a large stretch of country now wholly dependent on the water outlet afforded by the Lake of the Woods. A railway is also projected to connect Duluth with Prince Arthur's Landing, striking the Pigeon River mining and lumbering regions. There " . little or no communication with the interior of the territory, except with the Hudson Bay posts, and this is made by means of Indians in the employ of the Com- pany. The Indian population are quiet and docile, but they have a great aversion to all manual labour, save fetching and carrying. They know nothing and do not care to know anything of agriculture ; cannot be persuaded to use a spade or a hoe, and live almost wholly by trapping and fishing. All efforts to Christianise them have hitherto proved futile. The Dominion Government grant, under the treaty, of $5 per head, has had the effect of t telegraph IB from the ed contrast to consider- d upon and I, while all Vlinister of vill receive ons on the crease with ilement has at Portage, itimated to stion of the difficulties ay — that it vhere it is lingly pro- uality and lelons and size, even ring where . portion of the people , and oats all other 1 of wild urns and iinmer by ed to run p greatly t afforded th Prince jept with the Com- ion to all to know i'^e almost ed futile. effect of increasing polygamy, which has always been an institution among the Saulteaux. The ambition of every male Indian now is to multiply his offspring in order to draw the largest possible sum at the Treaty payments. The effect will, ultimately, be a large amount of destitution, for the head man of the family will spend all he can get on whiskey and gambling — a common Saulteaux vice — and leave his squaws and papooses to their own resources. Nearly all the lakes in the territory abound with fish — principally sturgeon, pickerel, and whitefish. The former in some localities — as on Shoal Lake — are of enormous size, so that the Indians fear to hook or' spear thom from their canoes. The smaller sturgeon are in great request and are much more delicate in flesh than those found in the lower lakes or the St. Lawrence. The whitefish are also highly esteemed, and 'arge quantities find tlieir way during the season to the Winnipeg markets. Trout are found in some localities, but a great obstacle to their multiplication is the voracious Jack which abounds in these waters and grows to a large size. As the great West opens up there will be a prospect of indefinite extension for the fisheries within the territory, and, under proper regulations, they will be a productive source of wealth. Everything points to the head waters of the Lake of the Woods as the future water- ing place of the American and Canadian North- West. Already some of the islands in the neighbourhood of Rat Portage have been surveyed by wealthy Winnipegers, anxious to construct summer residences thereon, and a project is now on foot for the building of a large marine hotel, for the accommodation of visitors during the summer season. With pure water, bracing air, gorgeous scenery and unequalled opportunities for bathing, boating, fishing and other amusements, there seems no reason to doubt that the success of Rat Portage as a watering place is assured. The surrounding eminences over-looking the lake form natural amphitheatres, specially adapted for villa residences ; and a carriage drive could be easily made by bridging a narrow strait, across the neighbouring Coney Island, where there is a long stretch of sandy beach unequalled for bathing purposes. At present, the principal drawbacks are the cost ot labour and the high price of all the necessaries of life, which have retarded in a great measure the erection of all but tem- porary buildings. The wt t of recognized municipal and judicial organizations, and the uncertainty of land tenure, have also proved prejudicial ; yet large prices have been and are being paid for lots in and around the village in anticipation of a rise when the boundary question shall have been settled. The illicit liquor traffic, so long as it lasts, must also injuriously affect legitimate building enterprise and permanent settlement. The applica- tion of a stringent liquor license law like that of Ontario, would do much to inspire con- fidence in the minds of investors and to promote the well-being of the whole community The position of Manitoba in the territory is, at once, anomalous and unsatisfactory to all the well disposed inhabitants, inasmuch as it has been marked from the first by the timidity and vacillation always attendant upon insecurity. It has been made clear that the Manitoba Government doubted its authority to act, even after it had obtained a petition from the inhabitants asking for its interposition. It has studiously refrained from attempting to exercise jurisdiction at every point except Rat Portage ; — even at Keewatin, three miles nearer to its own undeveloped territory, east of Selkirk. It has not yet attempted to include the "County of Varennes" as a Manitoba constituency for 26 legislative purposes. Its Courts hold in abeyance all legal decisions on disputed points that have arisen since it assumed to control the liquor traffic. It has not attempted to uphold the Municipal Council of its own creation, in enforcing its assessments or in carrying out its by-laws. It has witnessed, apparently without protest, an arbitrary and quixotic admin- istration of Dominion laws, which has had the effect of exasperating; the people it claimed to protect, and of bringing law and order generally into discredit. N otwithstanding that the territory is represented in the Dominion Parliament an an integral part of Ontario, the Manitoba Government allowed, if it did not incite, the residents of Rat Portage to vote at the general election of 1882 in the Manitoba constituency of Selkirk. It estab- lished a Court of Civil Jurisdiction, but its judges, though armed with its authority, refrained from punishing a recalcitrant defendant for contempt. It established a Registry Office for deeds, well knowing that, pending the settlement of the boundary dispute, there can be no sure titles to land, and that if the dispute were settled in favour of the Dominion, Manitoba would not own a rood of land, a timber limit or a mining location in the territory. A conflict between the Provinces of Ontario and Manitoba has been avoided, but with the result that the confusion of authority is greater than ever. All of which is respectfully submitted. GEORGE BURDEN, Commisaianer. Toronto, 10th February, 1883. . .,.isMaii&»:ilM. 1 points that 3 uphold the ying out its otic admin- e it claimed inding that of Ontario, Portage to It estab- authority, a Registry pute, there our of the ig location i has been laner.