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In several of our late numbers wc have glanced briefly at the vast natural advantages possessed by ('anada, for transporting by water the vast trade between the Eastern and Western United States, and of Eastern and Western Canada. Few need be informed of our great chain of inland waters, stretch- ing, with a few interruptions, from the Atlantic to the Rocky Mountains, which must perform a most important part iu the tmnsmission of the products of the interior, and in facilitating commercial exchanges. It is only by means of the cheap navigation of the great lakes and rivers, that the heavy ftnd bulky products of the western regions, whether in the United States or on the Saskatchewan, can be delivered at our ocean ports, at a cost that will insure a reasonable return to the producer. No subject can be more important than this to the statesmen of Canada, i'nless tram- ^lort can be reduced far below what it is now, all (hose fertile lands so distant as those on the Saskatchewan and Red River, as tcell as the adiacent ti^kes, cannot be made profitable to the farmer nor attractive for settlement. We see a proof of thi.A in the business this season of the Western United States. The abundance of the Indian co>n crop in Iowa, and adjoin- ing States, has so Increased the rate of freight nt Chicago to Buft«lo, that while the price ruled at 65 cts in New York and Boston, the price at Chicago Avent down as low as 31 cts per 5G lbs. When, therv'fore, the farmers of Iowa, Nebraska, &c., have to pay from 16 to 18 cts. for transport by railway to Chicago, he has only from 12 to 14 cts loft for raising a bushel of corn. In other words, he has to sell five bushels, to get the price (.f one bushel in New York. It may be contendad that this is an exceptional year, but on the other hand it must be borne in mind that there is not now over ten per cent, of the area of such States as Illinois, Iowa, Minnesota, Ne1)ras- ka, &c., yet settled, and when it is also con- Bidered that the shipments of grain from Chicago in 1838 only amounted to seventy- eight bushels, and that in 1871, or in 33 years, the shipments were over one hundred mil- lion of bushels, it must be evident to every one, that this matter of cheapening transport and increasing the facilities of commerce, is the great subject of the day. Unless this is done the farmers on the Western prairies cannot make it profitable to purchase lum- ber at high prices for fencing and building, and for the necessaries of life, by raising corn at 14 cents per busb el. We make these remarks to show, how important it Is in the interests of the Dominion to enhance, by every possible means, the great advantages we possess in the route of the St. Lawrence for securing, not only the carrying trade of these Western United States, but also to give H value to that vast area of land in BHtish pointed out the importance of opening up the interior of British America i>y a highway from ocean to ocean. The prosecution of such a gigantic work* and the best means and route for doing so, deserves the most serious and calm consider- ation. A railway such as this between Ca- nada and tlie Pacific, if completed at the earliest possible period will absofb an enor- mous amount of capital, and if completed at the earliest possible period, or within ten years, as provided for, under the agreemeiit between the Government of tlie Dominion, and British Columbia, the line for many years, thereafter cannot possibly be self-sus- taining. Experience has shewn that the " local " or " way traffic " is that upon which the line must mainly depend for a revenue. The local traffic of a new territory, can only be developed by labour, and inhabitants, but until this is done, it is tolly to expect suffi- cient traffic, and without sufficient traffic, the railway cannot maintain itself. The route of the Intercolonial Railway from Quebec to Halifax was decided on, by military considerations. Tho commercial aspect of the question was not considered. Every off'er of aid by the Imperial Govern- ment of England, was made contingent upon its passing " through British territory from Halifax to Quebec, and upon that line re- commended by Major Robinson " (the line now under construction). The late EarJ of Elgin and his Government in 1852 pointed out a diff'erent and shorter route trom Riviere du Loup to St. Johns, but aid was refused for this line, and the despatch from the British Government, in reply, insisted on Major Robinson's line axA it was said in reference thereto, " that both by its distance from the American frontier, and its proximity to the sea, it would be peculiarly available for mili- tary purposes." In 1852, Lord Russell said, " this railway was an object of primary im- portance to the interests, and to the imperial power of this country on the continent of America."' This Intercolonial Railway will probably not be completed during the next three years. The line from Riviere du Loup i^ now being constructed by a private com- pany, and which will be 130 miles shorter to Hai.'fax from Quebec, than by Major Robin- son's, while there is another route from Quebec through Megantic, which will be 200 miles slnrter, and from Montreal to Haliftix, by a route through Maine, the distance will be lessened some 250 miles. Since 1852 the colonial polity of the Em- pire has been greatly changed. The forts of Quebec, Isle aux Noix, and Henry, opposite Kingston, have bton dismantled, the British troops have all becA withdrawn, except one regiment at Halifax, ind the Dominion, with its four million of in!ial»itants, are now re- quired to fight their owi^ battles. We make this remark because the Iritcrcolonial Railwav developed, ind benefits and as from a compk commerce, whi any unnatural there is evideni United States, » course of actio has done away ments between surely it is of tV best interests ol most kindly int in the United !; feeling but thn great highway Minnesota, Wis as well as from Pacific. We all by American vt as we ourselves the same on tl give the same the same over c not we avail o their railways ni port to us. Suppose sHcl with the Unite best means to connection with Columbia, and i port trom the P Saskatchewan, '. &c. The distance Montreal to Nev via Pembroke, o Nippisiug, nortl the southern ei Garry, would in miles. The est estimated at $1 was completed, tinuous railway to the Pacific on have no connec railways on the nor of those to l it to the north pass through a ( line of route the of Duluth. Ta) trcal to Fort Ga 120O miles, the > of grain at the 1 per'mile would y/eifterly point milfes from Moi wO" ttd be , 2 ctt. of freight (and 1 port by railway lesii) there wo farmers to occi sudh a distance, cheaper means from these dista lone rmers praini U„ 1 i 'AmEwim m • A' jn a 01 ANT canadien: ening up the 11 liigliway cfnntic work* or doing so, Im consider- jt'twecn Ca- nted at tlio ifb an cnor- ■ompleted at within ten 3 agreemeiit Dominion, ) for many ' be Relf-sus- n that the upon which : a revenue. ry, can only ibitants, but ixpuct suffi- t traffic, the ial Railway ;ided on, by commercial considered, ial Govern- ingent upon ritory from lat line re- " (the line late EarJ of 152 pointed rom Hiviere ! refused for the British on Major n reference ;e from the nity to the jlefor mili- lussell said, primary im- he imperial ontinent of ftilway will g the next •re du Loup livate com- 8 shorter to ftjor Robin- route from will be 200 to Halifiix, stance will of the Em- rhe forts of y, opposite the British except one linion, with ire now re- We make lial Railway Michigan, developed, independently of the mutual benefits and assistance which would result from a complete system of reciprocity of commerce, which would give neither party any unnatural advalitage. On this point there is evidently a growing opinion in the United States, as to the advantages of such a course of action. The Washintton Treaty has done away with all possible disagree- ments between England and America, and surely it is of the highest importance for the best interests of the Dominion to cherish the most kindly intercourse with our neighbours in the United States, and to lay aside every feeling but that of rendering Canada the great highway from Northern Minnesota, Wisconsin, Iowa, Nebraska, as well as from our own Northwest and the Pacific. We allow our canals to be navigated by American vessels at the same rate of toll as we ourselves pay, and they allow us to do the same on their canals. V/hy then, not give the same freedom and security to do the same over our railways, and why should not we avail oui selves of any ad"antage8 their railways may have in cheapening trans- port to us. Suppose such a result secured by treaty with the United States, then what are the best means to be adopted to secure a connection with the Pf».citlc Ocean in British Columbia, and in reducing the cost of trans- port Iroiii the Pacific, and the valleys of the Saskatchewan, Red River, Lake Winnepeg. &c. The distance by the proposed route from Montreal to New Westminster, on the Pacific, via Pembroke, on the Ottawa, north of Lake Nippisiug, north of Lake Superior, touching the southern end of Loc Seul, and Fort Garry, would in round numbers be about 2600 miles. The estimated cost of this road is estimated at $100,000,000. If such a road was completed, there would then be a con- tinuous railway from Montreal and Quebec to the Pacific on British territory. It would have no connection with the United States railways on the south side of Lake Superior, nor of those to the south-west. In placing it to the north of Lake Superior, it would pass through a country uninhabited, and its line of route there would be 400 miles north of Duluth. Taking the distance from Mon- treal to Fort Garry by this northern route at 1200 miles, the cost of transporting a bushel of grain at the low rates of 1| cents per ton per|]mile would be 55 cents. Or take a more westerly point on the SaaU.'?,tchcwan, 1600 milfes from Montreal, the cost of transport wCttd be ,2 ctb per bush. With such a rate of freight (and those who understand trans- poit by railway will admit it could not be lesii) there would be no inducement for farmers to occupy lands, however rich, at sudh a distance. It is because we believe a cheaper means of transport can be obtained from these distant regions to a market for south side of Superior. Some part of this line of railway on the South is already con- structed and the whole would at once be built by the States named, if such a policy as we now suggest, was adopted. These roads now connect at Duluth, and Duluth is connected witli Pembina, 65 miles from Foit Garry. Look at the result of following this route to connect with Fort Garry. By going north of Lake Superior and Lake Nippising, as ig projosed, the distance from the point where that route would diverge from the line going to Sault St. Mnric, initil you reach Fort Garry— would be 1,0')0 miles, while from the same point to Sault St. Alorie, would be 200 miles. The road from Pembina to Fort Garry of 65 miles should at once be con- structed, wiiicli woulil make in all 265 miles to reach Fort Garry by tlie Sault >!t. Marie /■nite, against 1,000 miles by the north shore, or a saving in construction of $40,000,000— besides the annual expinse of working a road through a country where at present there is scarcely a white man, and in a climate 400 miles north of Dulutli. Under our view of the matter in question, it is evident that the best point to begin thw Pacific Railway is at Pembina. Let this be done at once, and then continue the railway from Fort Garry, in British Territory, to the Pacific, on the route which will best con- serve the interests of the Dominion. We would not of course expect that such a line of propellers as we suggest could be put on the route referred to, without a sub- sidy from governmtnt. The vessels should be first class in every particular, built of iron, of at least 1500 tons, with all modern im- provements, and adapted to carry tourists as well as emigrants. If such a line of vessels was established, they would have freight both up and down, for the lumber around the Ot- tawa region would be carried in them to the prairie regions of the West, and give a far larger return to the owners in Canada than by shipping it to the East. This up freight would also tend to cheapen the down freight, and this subsidy would only be necessary for a few years, as the line would soon be profit- able ; nor would we object that a share of it should be given for similar vessels trading to Collingwood in connection with the Grand Trunk Railway. It might also be well that Government should aid in establishing steamers on the Saskatchewan whenever, re- quired. The expense of such a subsidy would be a mere trifle compared with the interest of $40,000,000 at e per cent, or for ^3, )0,OuO annually. A decision to change the route of the Paci- fic Railway from the north to the south side of Lake Superior would at once secure the construction of tliat part of -t on the Ameri- can side from Siiult Ste. f _:•; and while iU„ J X „i- 1 1 i. rrov-pnimcnf, sliniild Rirl in cKfiihliuliiiicr lie laiinorH on '(•sttTii pniincs cannot make it i)rofita1»lo to purchase lum- ber at liigh prices for fencing and building, and for the necc8saric8 of life, by raiHing corn at 14 cents per bimb ol. Wo make thoHc remarks to show, how imjioftant it Is in the interests of the Dominion to enhance, by every possible means, the great advantages we possess in the route of the St. Lawrence for securing, not only the carrying trade of these Western United States, but also to give H value to that vast area of land in Mrttish territory, situated between the head of Lake Superior and the Kocky Mountains. It is true that;his distjvnt < ^untry has navigable rivers Klieh M the Saskatchewan, and with improve* inent can be male navigable into Lake Su- perior and transport reduced to its lowest possible point. This must however, be a work of time, and in maay places, the rail- way must take the place of the canal to con- nect points of natural navigation. These improvements of the water communications will not interfere with, but will constitute importnnt auxiliaries to the great system of railway intercommunication, which is spread- ing its iron arms over every portion of our fountry. As beneficial and useful however, as is the latter, it cannot supply the place of navigation for long distances, where time is jjot an important element, and where cheap- ness of transit is a ruling consideration. ftuch improvements either by canal or rail- way cannot be accomplished by individual or even mnnicipa'. agency, and as their object Is to promote in the best, the most just, and the most beneficent manner the great general welfare for the best good of all, they should 1-eceive such support and aid of the General (rovernment, as is necessary for their accom- plishment. These remarks lead Us to th(^ consideration of the Act passed during last Session of Par- liament, for the construction of a railway to connect the Paciiic Ocean in British Colum- l)ia with the St. Lawrence at Montreal and Quebec, through British territory. This subject has engaged the attention of men interested in Canada for a great length of time, as far back as 1679, Cavalier de Sale, formed to himself the magnificent project of ; )pening a way to Japan and China through the lake regions of Canada ; and the rapids and village of Lachine took their names from this enterprise, either in ridicule or in deri- sion. The Marquis of BeaUharnois, Governor of New France, made an attempt to commu- nicate with +he Pacific, and Pierre Gauthier de Varennes set out in 1731, and was the first to reach the Rocky Mountiiins. Of late years the proj?ct has been wrought prominently before the public, both in Eng- land and in Canada. Lt.Synge, R.E., in 1848, wrote about it. In 1849, Major Smyth and Mr. Wilson of the Hudson Bay gave it atten- tion, and Allan McDowell, Esq., in 1850 In 1 854 the Honourable John Young brought the subject before Parliament by memorial, point- ing out its advantages and necessity, and Captain Blakiston, R. A, in 1859, again by a route tlirough Muitic, tlie distiini e will be lessened some 250 miles. Since 1852 the colonial policy of the Em- pire has been greatly changed. The forts v^f Quebec, Isle aux Noix, and Henry, opposite Kingston, have been dismantled, the British troops have all been withdrawn, except one regiment at Halifax, and the Dominion, with its four million of inhabitants, are now re- quired to fight their own battles. We make ihis remark because the Intercolonial Railway as surveyed and located for military, and not for commercial reasons, may fail in local or way trattic to give a revenue for its working when completed, for the business of the coun- try, from Montreal and Quebec, will necessa- rilly pass over the shorter route. Part of the interest on its cost and the expense of its working will have to be borne by the people, and will no doubt be a heavy annual tax. We have made these remarks for the purpose of pointing out what we think will be a fatal er- ror to construct the Pacific Railway on the north side of Lake Superior, and that it is a commercial necessity for it to pass and connect in the meantime with the net work of Ameri- can railways on the south side of Lake Superior. We must, however, defer the further consideration of Avhat we deem this important subject, till our next issue. No. 2. In our last issue we gave some reasons why the proposed railway to the Pacific should connect with the American roads on tho south side of Lake Superior, and that ti'e lo- cation of the road should be governed by commercial considerations, and not, as v-m the case of the Intercolonial Railway for no other reason than that its route was the furthest removed from the American frontier. We believe that military men most capable of judging now declare that its location as a military defense is of very little value, nor is the safety of Canada from any attack by the United States dependent either on the Inter- colonial Railway, or on the proposed con- struction of the Pacific Railway on the north side of Lake Superior. We are no longer a set of disconnected Provinces, but have become almost a unit, and with the exception of Newfoundland, and Prince Edward Island, have ires com- mercial intercourse with each other. With one general government, we have added greatly to our financial, military, political and substantial power and prosperity. With our four millions of people we are more numerous now than the United States were after their revolution had terminated. Our territory is capable of supporting in comfort and affluence a population twice as large as now exists in any European nation, but owing to our geographical position, the interests of the people of the United States, like their territory, are inextricably wedded to our own, and the natural advantages of neither country, can be adequately of grain at the U per mile would b westerly point r milles from Men wOrtd be .2 ct^ ] of freight (and tl pont by railway less) there wou far^ners to occu; sudh a distance, cheaper means r from these distai their surplus pre to place our viev McAlpine anc have calculated on lakes, in sai mills per ton pei mills. Suppose proposed Pacific Lake Superior ' doned, and that tion on Lake Suj was utilised, by 1500 tons burth suit? The disti Superior at Dul Georgian Bay, it peller of 1500 to (J0,000 bushels < or Chicago, coul on Georgian Ba outlet of Lake N some other poi; built, and that w Montreal and Qi by be reduced The distance fr 350 miles. At named, a bushel dlt>tance at 12c, to French River Bay, at 4c, and point to Montre miles, the cost the route would Fort Garry to M instead of 55 c( on the north sic It must be bf obstruction whi navigation fror from the head o or from any otl foot of Georgiai of utilising th what then thou from Quebec to is now under company, aidec Lands. Anothi Public Lands t troal to Pembr Pembroke the r th6 SaultSt; 5 most conveniei sttiam propeller St.! Marie there bridge to conne ga 1, Wisconsi ' tiiiii e will »f the Km- 'he fi)rtK of ', opposite the Hiitlsh except one nioii, with re now rc- We make ial Railway ly, and not in local or ts working if the coun- 111 necossa- Part of the ;nse of its the people, al tftx. We purpose of le a fatal er- vay on the that it is a md connect k of Amcri- e of Lake defer the deem this sue. •easons why •ific should ids on tho that ti>e lo- overned by not, as v-m Iway for no ;e was the can frontier. 3t capable of )cation as a ;alue, nor is ttack by the n the Inter- oposed con- )n the north Hsconnecled ttost a unit, wfoundland, e free com- ther. With have added ry, political •rity. With ve are more States were inated. Our g in comfort ice as large can nation, position, the nited States, ibly wedded advantages adequately of grain at the low rates of 1^ cents per ton per mile would be 55 cents. Or take a more westerly point on the Saskatchewan, 1000 milles from Montreal, the cost of transport wOTTtd be .2 ct^ per bush. With such a rate of freight (and those who understand trans- pont by railway will admit it could not be less) there would bo no inducement for far^ners to occupy lands, however rich, at sudh a distance. It is because we believe a chcapiT means of transport can be obtained from these distant regions to a market for their surplus products, that has induced us to place our views before the public, McAlpine and other eminent engineers have calculated that freight can be carried on lakes, in sail vessels of 400 tons, at 2 mills per ton per mile, and by steamers at 3 mills. Suppose thv> idea of constructing the proposed I'acitic Rtilway on the north of Lake Superior was, for the present aban- doned, and that the parallel water naviga- tion on Lake Superior and the Georgian Bay was utilised, by placing (,n it propeliors of 1500 tons burthen, what wnuld be the re- sult? The distance from tho head of Lake Superior at Duluth, to the eastern end of Georgian Bay, is over 650 miles If a pro- peller of 1500 tons, which could carry about (J0,000 bushels of grain, loading al Duluth, or Chicago, could proceed to a good i>arbonr on Georgian Bay, say at French rive.", the outlet of Lake Nipissing, and if at that t;r at some other point sufficient elevators were built, and that was also connected by rail witi: Montreal and Quebec, transport would there- by be reduced to its lowest possible rate. The distance from Fort Garry to Duluth is 350 miles. At the rate of freight above named, a bushel of grain could be carried this dliftance at 12c, by the steamer from Duluth to French River, or at some point on Georgian Bay, at 4c, and, as the distance from this point to Montreal, by rail, would only be 320 miles, the cost of transport on this part of the route would be 120 cents, or in all, from Fort Garry to Montreal, 28 cents per bushel, instead of 55 cents by the proposed railway on the north side of Lake Superior. It must be borne in mind that there is no obstruction whatever at this moment to the navigation from the head af Superior, or from the head ot Lake Michigan at Chicago, or from any other port on these lakes to the foot of Georgian Bay. If, therefore, this idea of utilising the water route was adopted, what then should be the policy? A railway from Quebec to Montreal on the North Shore is now under construction by a private company, aided by a grant of the Public Lands. Another company has a grant of Publin Lands to bnild a roil way from Mon- treal to Pembroke, on the Ottawa. From Pembroke the road should at once be built to th6 Sault St; Marie, with a branch a t^ie most convenient point to connect wi.