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HhrncnttO to totfi }Qou0(0 of tMrUamcnt lip (DommanO of JDtc imaicAs. April 1875. LONDON I PRtNTBD BT HARRISON AND itOHS. U') TABLE OF CONTENTS. No. in Serit*. From or to whom. The Earl of Oufferin . . 9 To the Earl of Dufferin .. a The Earl of Dufferin 4 The Earl of Dufferin A LieuteDant-Goremor Truteh To the Earl of Duiartn . . Lieut.-GoTemor Trutcb . . 8 The Earl of Dufferin The Earl of Dufferin 10 11 12 13 14 IS 16 17 Mr. Walkcm .. To Mr. Welkem . Mr. Walkem .. The Earl of Dufferin The Eat I of Dufferin Lieut.>Governor Truteh To Liputenant - Governor Truteh The Earl of Dufferin Date. SUDJICT. 18 I'he Earl of Dufferin Dec. 36, 1873 (Kee. Jan. 8, 1874) Jan. 15, 1874 May 15, 1874 (Rec. May 38) May 15, 1874 (llee. May 28) Juno 11, 1874 (liec. Jun3 12) (Telegraphic) June 18, 1874 June 11, 1874 (Rec. July 33) July 9, 1874 (Rec. July 32) July 9, 1874 ( Rec. Julv 32) July 28, 1874 July 39, 1874 July 31, 1874 July 18, 1874 (Rec. Aug. 4) July 22, 1874 (Rec. Aug. 4) Aug. 3, 1874 (Rec. Aug. 6) (Telegraphic) Aug. 5. 1874 (Telegraphic) July 31, 1874 (Itcc. Aug. 12) July 31, 1874 fl07| Non-fulfilment un the part of the Dominion Govern- ment of the .Xlth Article of th^ Term* ol the Union with Uritiih Columbia in retpect to the conntnictiun of the Canadian FaciBo Railway . . Acknowledging receipt of doipateh of the 36th ultimo . . . . . . . . . . Tranimilting newipapcr report on Mr. Mackeniie'a iipeccli relating to the aDnttruction of the Pacific Railroad, together with an article from the Toronto *' Globe," explanatory of the Govern- mont project . . . . . . . . Incloiing article from the Toronto " Mail," orlti- riiing the Government railway scheme . . . Appeal liy Dritiih Columbia against the breach by Canada of the terms of union relating to the construction of the Pacific Railway . . Respecting the settlement of the difficulties between Canada and lirilish Columbia by arbitration Recording telegram of 1 1th Juno, elating " Ministry desire tu nnlify you that Drlegale proceeds imme- diately to London tu present appeal of British Columbia against non-fulfilment of term* nf Union".. .. .. .. .. Respecting the dinpiitc between the Dominion (iuvernmcnt and liritish Columbia . , . . Erection of n lino nf telegraph along the general route of the Canadian Pncitic Railway.. .. Requesting that Lord Carnarvon will grant him an interview for the purpose of discussing the affair* of British Columbia Informing him of the da^ on which Lord Carnarvon will be prepared to see him . . . . . . Submitting petition to tlic (juecn from the Com- mittee of tlir Executive Council of the Province of British Columbia . . . . . • Stating th.it Mr. Walkem h.ns been deputed to lay before I. mil C ninarvon the claims of British Columbia luider the Xlth ClnU! tent tke elaimt of the PruTince of Britiili Colum- bia, on account of the delay in the conftruction of the Paeite RiilwaT, and informing him of tl a propotali made by Mr. Edgar on ^half of the Canadian Government to Brilith Columbia . , Acknowledging the receipt of Mr. Sandford Fleming's report, and es pressing Mtisfaction at the results obtained by the surrey . , . , Accepting, on behalf of the Oorernment of British Columbia, Lord Carnarvon's offer to arbitrati) on the subject of the dispute with Canada relating to the Railvray question . , Stating that the Petition of the inhabitanta of Victoria, British Columbia, respecting the non- fulfilment by Canada of the terms of the Union has been laid before Her Majesty, an J that it will be carefully considered . . , , Requesting a decision upon the petition to Her Majeity of the Committee of the Eiecutire Council of British Columbia . . . , . Slating that Lord Camarron is not at present in a position to decide upon the petition of the Eiecu- tire Council of British Columbic . . Transmitting Report of the Committee of Council of Canads, upon Lord Carnarron's despatch relating to the complaints of the British Columbia Goreniment in regard to the Pacific Railway . . Recapitulating the main points at issue between Canada and British Columbia, respecting the breach by the former of the Railway Agreement in the terms of the Union . . . . . . Announcing the conclusions arrived at for the t eitle- ment of the controrersy between Canada and British Columbia, respecting the Pacific Railway . Transmitting copy of despatch to I..ord Dufferin of the 1 7th instant . Stating that Her Majesty will not be adrised to exercise her power of disallowanci! with respect tothc Acts Nos. 2ind 14 .. Settlement of differences between the Dominion Government and British Columbia . . . , Respecting the settlement of the differences between the Dominion Gori-rnment and British Columbia. Page 74 74 77 77 78 79 79 79 8S 99 94 94 95 96 APPENDIX. 1> Terms of Union between Canada and British Columbia 9. The Canada (Public Works) Loan Act, 36 and 37 Vict., c. 45 97 98 Pbg* 74 Correspondence respecting the Canadian Pacific Railway Act so far as regards British Columbia > il No. 1. The Earl of Dufferin to the Earl of Kimberley. — {Received January 8, 1874.) My Lord, Oovervment Home, Ottawa, December 26, 1873. I HAVE the honour to inclose, for your information, a copy of a despatch from the Lieutenant- -/lovernor of British Ck>lumbia to the Secretary of State of Canada, forwardine a copy of a Minute of his Executive Council, referring to the non-fulfil- ment o tne part of the Government of the Dominion of the Xlth Article of the Terms of the Union with that Province in respect to the construction of the Canadian Pacific Railway. I also hew to transmit a copy of a Report of a Committee of the Privy Council of the Dominion on the nbovc-mcntiotied despatch, stating^ that my Government is giving; its most earnest consideration to the project for the construction of a railway to the Pacific. I have, &c. (Signed) DUFFERIN. Indosure 1 in No. I. Sir, Oovernment Home, November 24, 1873. I HAVE the honour to inclose herewith a further Minute of my Executive Council referring to the non-fulfilment by the Dominion Government of the Xlth Article of the Terms of the Union of this Province with Canada. In accordance with the advice of my Ministers, expressed in this Minute, I beg you to be pleased to lay this despatch and its inclosure before his Excellency the Governor-General, and to be goly has been made by the Dominion Government to the desprJch conveying that protest : That the (iovornmciit of British Columbia, looking at the actual position of affairs, felt compelled to wait the action of the Parliament of Canada, expected shortly to meet, and which did meet on the 23rd October last past: That tho Parliament of Canada has been prorogued, not to meet until February next, without making provision for the construction of the Pacific Railway : That the Legislative Assembly of this Province stands called to meet at Victoria on the 18th day of December next ; and that the non-fulfilment by the JC ninicm Government of the Terms of Union has caused a strong feeling of anxiety and (iisoouragcmontto exist throughout the Province. The Committee advise your Honour to ask the Dominion Government, through the proiier channel, for a decided expression of its policv with regard to the fulfilment of the Xlth Article of the Terms of Union, in order that the informaticm may be given to the Legisluturo at the opening of the coming; Session, and to request that the decision arrived at be communicated to ^our flonour by telegram at the earliest moment possible. And the Committee respectfully suggest that if the present report be sanctioned, your Honour will be plensetl to forward the same lo his Kxcellency the Governor-tienoral, and also to draw his attention to the Minutes of Council, each bearing date the 25lh July last on the same subject, one being a protest against the breach of Article XI, and tiie other a denial of the right of the Dominion Government to a conveyance, or reserve, of any of the public lands for railway purposes, until the line of railway should be defined. Certified, (Signed) W. J. ARMSTRONG, Clerk, Executive Council. 8 No. 2. The Earl of Kimberleif to the Earl of Duffrrin. My Lord, Downing Street, January Ij, 1H74. 1 MAVR the honour to acknowledge the ruccint of your drHpatch of the 2rith or December,* inchising a copy or a despatch Troni the Lieutenant-Governor of Hritish Columbia, with a copy tit a Minute or his Executive Council, rcrerring to the noD-fuirdmcnt on the part or the Canadian Ciovcrnment or the Xllli Article (>r the Terms of Union lietwceu that Province and Canada in respect to the construction ol' the Pacific Kailway. I have, &ic. (Signed) KIMBERLKY. No. 3. The Earl of Dufferin to the Earl of Carnarvon.— (Received May 28.) My Lord, Ottawa, May Ut^X^l A. I HAVE the lionour to inclose, for your Li-.-'Iship's information, a newspaper report of the 8i)cech delivered by Mr. Mackenzie, on the I2tli instant, when introducinii; resolu- tions for a Hill to provide fur the construction of the Pacific Railroad, top^ctlier wiih a summary of this speecii, and an article from the " Globe" newspaper of the 12tli instant, explanatory of the Ciovernment project. I have, &c. (Signed) DUFFERIN. Inclosurc 1 in No. 3. Extract from the Toronto " Globe" of May 12, 1874. Tub Canadian Pacific — THREE years ap;o, wluT, by the compact witli British Columbia, the Dominion of Canada engaged witliiu tiMi years to construct a railroad from Lake Nipissing, iu Ontario, to the Pacific Ocean, the Government of tlie day possessed absolutely no information as to th(> nature of the vast undertaking; to wiiich tliey pledged the good faith and resources of the country. The whole of tlie intervening; period siiict! that rash bargain was made has l)een occupied in ascertaiiiin}>', at an eiiornioiis cost, what the commonest prudence should have suggested to be tlie first proceeding. Eteii yet, wo believe, the information obtained is not complete, altliougii, probably, sudieient may be known to justify a fair estimate of the dillieullies to bi" eiuoiinleivd and t!io stupendous character of the task to be performed. In the end we shall prol)al)ly gain by the delay. The question to be scttle80 countries. The botanical and gcogr'.phical characteristics of this region naturally divide it into three great sections. Commencing with tho most westerly, which is partially wooded nn<>d in Vancouver Island, might be cxiMicted to cross, is abou* I6U miles, and, except for some '2!i miles, a route might lie found admitting of the tolerably easy construction of the railroad through a country partly agricultural and rich in coal bed* and other mineral deitosits. On the other hand, the task of connecting Vancouver with the mainland would be very costly, and require engineering works of great magnitude. A Hteani ferry might supply for a time the connecting link. A railroad crossing the strait would uivolve the construction of several bridges, with a clear span varying from 100 to 150 feet each, and the intervening islands would imj)osc a heavy amount of rock nxcavatmn and tunnelling on the constructors. These circumstances will have to be regarded in considering the prcnriety of immediate operations in tho island itself. Public |)olicy might dcmaml that tiicy should bu grappled with, bnt the logal obligations of the country towards British Columbia do not actually comiK'l the Dominion to enter upon this undertaking. The Pacific coast can be rcaclu ^ '••■ the terms of the contract with British Columbia by fixing the terminus on the nminl i. i ; and witliout in the least, therefore, proiMwing to discourage tlie idea that Vancouver island is to enjoy the full benefit ol this great national enterprise, it may Ik; wrli, in tracing prospectively tho route of the main road, to eliminate the Vancouver i land l'>-uich or continuation from our calculations. •^t't ,ig eastward from Waddington FlarVwur, on But* Inlet, the first 44 miles will present, perhaps, the most rciK'llant features of the uii<'''rl;tl.inir, althougii the gravest difficulties of this <">'-tion are to be met with in a disianee of some 15 miles. It is probable the\( the Cascades will be crossed by the <:;reat canon of tlie Iloniatlico River at an altitude of 2,285 feet above the sea lo\el, tlie ascent Ining abrupt, and severely taxing tho skill of the engineers to reduce the gradients to working propnrtions that will be equal to the duty of surmounting them. A glance at tlic map will indicate as tho probable route of the railway, after leaving the canon, a line running by way of Lake Latla across the Chilicotin Plains to the Kraser, near Soda Creek; fhencc; by Lac It is important that the lino shoulO approach as nearly as imssible to the waters of Lake Superior. It is necessary that the readiest possible mciins she Id be found of connecting the oldest portions of Canada with the Red River Settlements. It was originally supposed that tne road should have to run to the northward of Lake Nepigon, a branch line connecting Thunder Bay with the main road. From information that has reached us wo have reason to believe that these several problems may be solved in the following manner : — It is said that a practicable route has been discovered through to the rocky region at the head of Lake Supckior, the road approaching the lake as near as Lake Helen, which is an expansion of the Nepigon River, about ten miles north of Nepigon Bay. By a little dredging this point can be reached by steamers, and a Thunder Bay branch line be avoided. It would be further from Fort Garry than Thunder Bay, but then, on the other hand, it combines the advantage of being at the same time a Lake Superior terminus and a station on the main road when this is finally built. By the cost of locks. Chiefs Bay could be reached and the line located on Lake Nepigon itself. Tlie distance from the south-east of Lake Nipissing — the ultimate eastern terminus of the Pacific — to Lake Helen is .OS? miles. At Nipissing the line would be 730 feet, and at Helen 604 feet above the sea level, the highest intervening summit being 1,420 feet above the sea level ; and between this and the point next in altitude lies a comparatively flat country for 370 miles. The real difScultics of this section are found, as might be anticipated, when Lake Superior is approached within twenty or thirty miles of Lake Helen. The gradients on the whole of the str :i;li from Lake Nipiss'ng to Kclcn are not, in fact, heavier than those on many existing lines in Ontario. From Lake Helen it is probable a north-westerly course would be taken until the neighbouriiood of Ciiief 's Bay, on Lake Nepigon, is reached, whence the road would run due west to Eat Portage at the northern end of the Lake of the Woods. Thence it would still run west, witli a sUght bend to the northward, to Lake Manitoba. The whole distance from Lake Manitoba to Lake Nipissing by the shortest route, including a connection with the Lake Superior navigation, will be 1,03b miles. The country between Lake Helen and Lake Manitoba is reported to present no very serious impediments to tlie construction of sucli a road. We must await tlic publication of the Surveyor's report before entering more niiimtely into the merits of tlie rival routes from Nepigon or Thunder Ba^. In tlie former case Nepigon River and Lake Helen open up a means of access to the railroad, as we have alreaily seen, of some ten miles in length; in the latter a similar duty for ei^ht miles would bo performed by the Kaministiquia River. The relative advantages of the two bays in a climatic sense, are also matters of dispute. But there is one important consideration tliat gives Thunder Bay a preseni advantage. We want, above everything, to establisli early and easy access to our north-west territory. At present tlie contiguity of Thunder Bay to the lake coninumication with tlie nortli-wcst makes it the j)oint of departure. If a railroad were built for tlie forty odd miles now known as tlic Dawson Road, and another line from the Rat Portage to Fort Garry, a distance of about 1 00 miles, the delays of tlie present route would be reduced to a minimum. By tlie aid of tlic steam service already established on the lakes and rivers, and abundant facilities for moving passengers and freight across tlie intervening portages. Fort; Garry would be easily reached in six days from Tiiunder Bay. Ifj ultimately, Lake Helen was made the starting jwint, the railroad to Lake Shebandowau would still be of great loc,-' value, and be available for facilitating that transport wliicli still sought a water route, whilst the line from Rat Portage, at tlie northern end of the Lake of the AVoods to Fort Garry, wovdd then form a portion of tiic main road. The scheme would appear to coniuiencl itself very favourably to consideration. A rough estimate of tlio eomparativ advantages in point of distniico of the proposed American and Canadian lines will be interesting. From Fort Garry lo Sault Ste. Marie rid Duhitii and water navigation, the disluiecs would be 836 miles; from Fort Garry vid Nepigon Bay and Lake Superior to the Sault it would be G(j4 miles ; from Fort Garry to Toronto and Montreal the distances, all railway respectively, would be 1,173 and l,2b8 miles ; from Fort Garry riV/ Pembina and ChicaRo tiie distances to Toronto and Montreal are, Toronto, 1 , 589, Montreal, 1,1)25 miles; from Fort Garry vid Pembina, Duluth.and Saulte Ste. Marie, all rail, tlie distance would be, lo Toronto, 1,290 miles, and Montreal, 1,446, miles. In eitiier case, therefore, the saving by the Canadian line would be very considerable. It remains for us only to speak of the climatic peculiarities, so far as they are known, of the proposed route. From all the information that has reached ns, these do not appear to be so formidable as had been at one time anticipated. On the western slope of the Cascade Mountains the snow-fall is heavy. There probably snow-sheds would be needed to protect the line, but elsewhere the fall is not so great apparently as in some parts of Ontario and Quebec. If this be borne out by experience — and our surveyors who bring home these reports have now spent a large amount of time and labour in their observations — the Canadian Pacific, although running so niucli further north, will have less to fear from the rigours of winter than its competitors for trans- oceanic traffic in the more southern regions. On this and other points, however, we shall wait with interest the publication of tlio official reports of the several parties whose surveys and explorations are needed in order to the finding of a correct judgment. Inclosure 2 in No. 3. Extract from the Toronto "Globe" of May 13, 1874. The Pacific Railway.— On the order for the House to go into Commitle tc consider certain proposed resolutions relative to the Canadian Pacific Railway being called, Mr. Mackenzie said : Mr. Speaker — In moving that you do now leave the chair, I propose to ask the attention of the House for a sliort time to some remarks tliat I propose to make in connection with this measure. I shall endeavour, Sir, to confine myself as closely as possible to a simple business statement of what I conceive to be necessary in submitting the resolutions of which I have had the honour to give notice. The duty is imposed upon the Government of providing some scheme for carrying out tlie obligations imposed by the solemn action of Parliament in this place. The original scheme, Sir, was one that 1 opposed at the time of its passage here, as one that in my mind then seemed impracticable within the time that was proposed, and impracticable, I may say also, witli the means proposed to be used to accomplish it. I liave not changed that opinion, but being placed here in the Government, I am bound to endeavour, to the utmost of my pov;er, to devise such means as may seem within our reach to accomnlisli, in spirit if not in the letter, the obligations imposed upon us by the Treaty of Union, for it was a Treaty, with British Columbia. During the passage of the resolutions tlirough tlic House, or through the late Parliament of this country, I expressed my mind very freely as to the nature and extent of tlic obligations which we were then assuming, and I expressed a very strong conviction that the passage of tliat measure would necessarily almost result in future calamity, certainly in future complications, wliich might seriously aflfect the political position of parties and the political position of the country generally. Sir, unfortunately — 1 say unfortunately, because I could wish it were otlicrwise — unfortu- nately, all that I anticipated has been fully realized. The difficulti(>s have arisen. The late Government were able, although with some difficulty, to carry tlieir resolutions through the House. They were able, though witli difficulty, to got a majority of both Hnn.«es of Parliament to sustain them in the very extraordinary mcasun! that they proposed — extraordinary, Sir, biTauso it was not dtMiianded by tiie Province of British Cohunbia. The Province of British Columbia confined itself to wliat seemed to me at the time a not unreasonable proposition. Tiwy were content with a proposition that this country could very easily have carried out ; but the Government of the day, for sony; inex- plicable reason, went so'for beyond what that Province considered a fair and legitimate demand, as to place the whole country in jeopardy, from having luidertaken a work so prodigiously in advance of what niight be supposed ' to be the fair resources of this country. It is worth while to glance for a while at the extent of these obligations. We know already the difiiculties that have been experienced in constructing the intercolonial road, the construction of that road having been a part of the terms of Union between the Lower Provinces and the old Province of Canada. We know that lliat road wliich we had to construct was only 500 miles long; that there was ready access at every point almost along its whole course to the sea ; that there was the most ample means provided in every way for carrying that road to an early and successful completion ; and I recol- lect very well the ardent expectations entertained by many of the zealous advocates of Union. I am not sure, Sir, but I was myself among'the number as to the early comple- tion of the road, although I did not anticijiatc its completion at so early a day as many other Members of the olu Legislative Assembly of the Province of Canada. I rather went into that work, Sir, as a necessity of the Union. I was not in favour of undertaking it at 1- ill' 8 all as a cotnmcrcial tranaaction, but as a political necesrity I accepted it, and went loyally into every means necessary to secure its completion. But I recollect very well that some prominunt gentlemen in political life anticipated that that road would be constrncted within three years, and anticipations were indulged in on this floor in 1867, when the Act was passed providing for its immediate commencement and construction, that witliin two or three years— tliree years at the outside — we should be able to make the railroad journey from the city of Halifax to connect with the railway system of the old Province of Canada. Well, Sir, the tiiree years have passed and four years more have passed, and it will take at least a year, probably two ^'cars, before it will be possible to realize the accom- plishment of that very desirable wish to have a complete connection between the system of railway cast and west. Yi's, Sir, in 1871, when the difticulties were thoroughly understood, and it was quite apparent that the contracts for the construction of that smaller work could not be completed within two or three years of the time that was anticipated, under these circumstances, and at this time, the late Parliament of Canada, under the guidance of the right honourable gentleman opposite, gravely undertook to construct a road five or six times the length of that to which 1 have alluded, pledged the honour and good faith of this country to its commencement within two years (that is the commencement of the actual work of constructiou), and pledged the honour and good faith of the country to its entire completion within ten years. As I have remarked, 1 thought at the time this was an exceedingly extravagant undertaking, and I appealed to the House, not as a mere party opponent of the right honourable gentleman, but as one who felt a great interest in the accomplishment to the Union which we were th( n discussing — as one who was pledged, if any one in this country was pledged, to adopt every reasonable proposal which could be undertaken to accomplish the complete unifica- tion of British America. The difficulties which had to be encountered in constructing a railway at least 2,500 miles long, through a country almost ciitirely uninhabited, possessing a population of only 15,000 to 20,000 people, and'that in the centre of the continent, with a point at which to lK>gin on this side where no person lived, and a point at the other end where very few people lived, the difficulties, Sir, were enormous. With no settled points for the road except these two, and the point where it might touch Lake Superior, it had to traverse a country east of Fort Garry and west of the Rocky Mountains, remarkable for its rough natural features and the engineering difficulties which were sure to present themselves. However, Sir, the work was undertaken, and we know that precisely what was anticipated has taken jilace. The honourable gentleman opposite, with his Ministerial majority, succeeded in getting this undertaking assumed by Parliament, and of course. Sir, they took .th« most extensive powers (lossible in order to implement their engage- ment. They took powers so extravagant that I was obliged at the time to call tho attention of* Parliament to them ; but with all these powers, with all that authority wjiich they vested in themselves, after sending a delegation, they accomplished, — what ? Why, Sir, they accomplished absolutely nothing. (Hear, hear.) They never rece'.ed one single oiler of any amount from any body of capitalists, or from any company, unless, indeed, we except the famous Sir Hugh Allan Company, which was a mere combinuuon for the pnr|)ose of finding capitalists who would undertake it. They had no capital themselves, and did not pretend to have any. They relied entirely upon the success of their mission to England, which proved an entire failure. We have had no history presented to the country of that mission yet. We do not know what proposals were submitted in London, or to whom they were submitted. All tliat we know is tiiat a d, legation of the directors of that Company went to England, passed some weeks or months there, did nothing, came back, and threw up the charter, thereby acknowledging their utter inability to carry out the undertaking. (Hear, hear.) Sir, the incoming Administration were placed in a jKisition of peculiar difficultv in connection with this matter. We had to undertake to vindicate tho good faith of the country, and do some- thing which would enable this Parliament to carry out, in spirit if not in letter, tho serious imdertaking of building this railway as far as the shore of British Columbia. The legal terms are exact. We are bound within a siiecific time to construct a road to connect with llie railway system of Ontario on tho east to the Pacific coast on the west. (Mr. Bunster — hear, Iicar.) There is a moral obligation boyond the legal obligation. I recollect cpiite well, although I do not intend to base any argument upon the fact, that when the British Columbia Delegation w.is present in this city, and one of its members, Lieutenant-Governor Trutch, was speaking at a public meeting on the subject, and referring to speeches made by myself and other gentlemen on the floor of this House, he declared his impression to be that the exact terms of the resolutions that were passed, 9 ind went ery well irould be in 1867, traction, to make m of the nd it will e acconi- 16 system loroughly n of that that was ' Canada, ertook to , pledged cars (that onour and remarked, appealed an, but as were tlu n , to adopt !te imifica- itructing a possessing incnt, with other end tied points rior, it had irkable for to present r what was Ministerial of course, eir engage- to call the t authority ed, — what ? cr rece'.ed y company, vas a mere They had ily upon the ave liad no at proposals Lnow is that lie weeks or Luowledging ic incoming on with this nd do sonie- n letter, the 1 Columbia, cc a road to on the west, ^ligation. I he fact, that its members, subject, and lis House, he were passed, endornng the Union, could only be adhered to if it were in the power of the country to accomplish what was required. We know that Sir Geoi^e Cartier, the gentleman then leading the House, the leader of the Government being then absent at Washington, was appealed to in order to quieting the apprehensions and make smooth the objections existing amongst his followers, which were known to be s(i great as to make it nearly impossible to carry through the .ueasure. When thus appealed to he came down to Parliament and moved the following resolution, which was adopted : — "That the House will to-morrow resolve itself into a Committee to consider the following proposed resolution : — ' Tliat the railway referred to in the Address to Her Majesty concerning tlie union of British Columbia with Canada, adopted by the House on Saturday, the Ist April instant, should be constructed and worked by private enter- prise, and not by the Dominion Government ; and that the public aid to be given to secure that undertaking should consist of such liberal grants of land and such subsidy in money or other aid, not unduly ]ircssing on the industry and resources of the Dominion, as the Parliament of Canada shall hereafter determine.'" Well, Sir, we now desire the gentlemen who undertook that responsibility to show us how it is possible to construct a railway 2,500 miles long, with a population of 4,000,000, passing during almost its entire length through an uninhabited country of a very rough character. How it is ^xjssible to have the exact terms of the Union observed, and at the same time have no extra taxation pressing unduly upon tlie resources of the Dominion, is a question which presents itself for soUuion. I believe it is utterly impossible to do so. (Hear, hear.) I believe there can be no question that whoever builds the road, and whenever it maybe built, it must be constructed with money furnished by the jieople of this country. It is true. Sir, that we have a vast extent of land, the greater proportion of which is good, that may perhaps be sold and yield a considerable amount of money. We all hope it will do so, but we must not adopt such a measure as will efTectually exclude, as I believe the measure of the late Government would have excluded, settlement, and prevent the growth of the country. (Hear, hear.) We arc reduced then to the necessity of considering whether we will attempt to keep up a lictitious price for land, or make it so cheap as that it merely requires the railway to be built to command immediate settlement by a large population. We know, Sir, that the obligations imposed by the building of the road will not terminate with the conclusion of its construction. Supposing it only takes the minimnm amount estimated by Mr. Sandford Fleming, 100,00(),000 dollars, you have a pretty good appreciation of what it must cost the company in the end. When you double the debt of the country yon will not be able to accomplish the borrowing of the sum of money that would be required to build this road, paying the attendant expenses of management, and the debt and everything else connected with it — you will not be able, I say, to borrow the requisite sum of money below 6 yter cent, on the amount. If you add per cent, uixm the minimum amount to the existing obligations of this country, you will have, in addition to our present annual burdens ; 6,000,000 dollars, which, added togetlier would make a continuous application of 12,000,000 dollars before you have a cent to apply to the ordinary business of the country. Then we come to tlie consideration of what would be the position of the road after it was completed, supposing we were able to fulfil the obligation which gentlemen opposite undertook ; and supposing we finished it in seven years, we have Mr. Fleming's authority — assuming him as an authority, and I think ho is very much within the bounds, that until at least 3,000,000 of people are drawn into that uninhabited territory, it is quite imiwssible to expect the road to pay its running expenses. Mr. Fleming estimates these at not less than 8,000,000 dollars per annum, and they have still further to be supplemented by the proportion of money required each year to renew the road. It is known, however, I believe, to railway authorities, that considering the difficulties of climate and with tlie ordinary traffic, the road will require renewal, that is the renewal of sleepers and rails, every eight or ten years on an average. No doubt with steel rails substituted for iron the time for their renewal would be considerably enlarged, but to what extent I am at present unable to say. However, we may assume tluit it would be very ranch longer than the duration of the ordinary rails. Mr. Tapper. — What do you estimate as the duration of the ordinary rails ? Mr. Mackenzie. — From eight to ten years, that, at least, is the opinion of Mr. Walter Shanly, whom I assume to be a competent authority. Supposing then that the road were completed, we would have, in addition to the burdens imposed upon us by the interest of the money, to provide for the working of the railway a sum at least equal to that amount, or 6,000,000 dollars every year, in order to keep it in repair. I present these statements not as my own, but as those of the engineers in connection with the enterprise, as well as some of the most eminent engineers we have, who have been [1071 C Fr «■?■ Ilil 1« entroBted with the greatest works constmcted on the continent. Before proceeding farther, let me refer to an additional obligation assumed by the right honourable gentl^ men opposite. We were bound by tlie terms of union to reach the sea board of the Pacific wherever we could touch its waters. There our obligations ended ; but the late Government undertook that the terminus should be placed at the further extremity of the Island of Vancouver, thus adding about 240 miles to the obligations already existing. But that is nothing. We happen to know something more, and 1 tliink it was known at the time tliat an Order in Council wixs passed, which I sliall not accept as an obligation entirely binding ujton tliu conntry, but one which we have to regard from the point of view I shall present to the House. At present we know from the surveys of the country by enguieers who have undertaken the work, that, after reaching Bute Inlet, vou have atill to traverse, if you carry tlie railway to Viuicouver, a distance of 50 miles before you reach the narrows between the island and tlic mainland ; and from the iwxat where you leave the mainland till you reach Vancouver there are another 30 miles to be traversed. U|X)n these 30 miles we liave no less than 3,880 feet of bridging, in a distance almost exactly equal to a mile and a half, a work of a much more formidable character than the bridge over the St. Lawrence at Montreal, comix>sed of spans varying from 300 to 1,350 feet. The current at this jwint is reiwrted by the engineers as running from 4 to 9 knots an hour. Besides, in tliis distance of 50 miles from Bute Inlet to the point where you leave the mainland, there is a very large number of tunnels to be constructed, varying from 100 to 3,000 feet in length, and at the islands before {ou reach Vancouver you have the heaviest kind of work known to railway engineers. Jpon legal questions generally — that the work of construction was commenced when the surveys were commenced. Whether he was correct or not I do not think it necessary to say at the present moment. It will be remembered that a surveyor was sent by the Govern- ment of the right honourable gentleman to Esquimalt at a critical moment to drive in some stakes in order to make it appear as if this were a commencemcRt of the work. We thought, in the first place, after having had time to consider what sliould be done, that the best course to pursue in the meantime would be to confer with the local Government of Britisli Columbia, and endeavour to ascertain from them if any means could be arranged whereby an extension of time could be procured for the prosecution of the works which we were bound to take. With that view a gentleman was sent as a representative of this Government to that Province, and, in the course of liis negotiations with the local Government, it became apparent, as it has been apparent in this House from several members from the Island of Vancouver, that it was an exceedingly important matter in their estimation that the road should be commenced at once at Esquimalt, and traverse the Island to tliat point where the crossing of the narrows was ultimately to be. I, for one, was quite willing, if the local Government were disposed to make some terms for the extension of time, to undertake the construction of the island portion as rapidly as [)ossible ; but if it became apparent that the local authorities were determined to adhere rigidly to the terms of Union, and demand the whole terms and nothing less, this House and tiie Dominion of Canada, 1 was and am strongly of opinion would on their part concede to them the terms and nothing more. (Hear, hear.) Procccdino; upon tlie belief that this was a fair representation of the opinions of the country, which had to pay for the construction of this enormous work, wo instructed Mr. Edgar, who was appointed to represent the Cioveriiment in the matter, to say that the Government would be prepared to undertake immediately the commence- ment of the work upon the island, traversing it northwards in tlie direction of the jioint of crossing, prosecute the survey.-! on the mainland, construct a passable road along the ridge, erect a telegraph line along the road, and as soon as tiu; work could bo placed under contract we would expend 1 ,500,000 dollars a year within the Province. I do not know whether the offer will be accepted or not, alid. in ilie meantime, it is 'ocoeding e gentl^ d of the ; the late remity of already ink it was ;epl as an from the urveys of lute Inlet, 50 miles the iraint liles to be ;ing, in a brmidable of spans engineers rom Bute of tunnels ids before engineers. J, there is iltics that tion of the the good leasurcs as : in letter, he present could not ,ed were ot aimed that n opix)sitc upon legal he surveys •y to say at he Govern- to drive in the work. 1 be done, I tlic local any means prosecution IS sent as a legotiations this House ^ important uimalt, and ately to be. some terms 1 as rapidly ermined to ig less, this id on their lie opinions worl4, we the matter, commcnee- )f the i)oiut road along k could be c Province, lutimc, it is U abflolntely necessary that Government should have authority to proceed with the com- mencement of the works in such a way as they think will meet with the acceptation of the country generally, and the reasonable people in British Columbia. There was a very considerable amount of criticism indulged in by the right honourable gentleman opiKJsitc when I avowed my own views on this question in my election address to the people of Lambton in November — when I avowed my impression to be that we could, in the meantime, utilize the inland waters, connecting them by branches of railway, building siicli sections as were absolutely necessary, as vith navigation would probably be 100,000,000 dollars, o' something like that. Tliis portion we propose to proceed with as rapidly as we are able to obtain a completion of surveys. There are now four parties of surveyors in British Columbia, one exploring party proceeding along the Cascade Range, with a view to find some other points where that formidable range could be penetrated from the plateau to the ocean. At present the easiest point appears to be Bute Inlet, especially if we look to tlie connection with tiie Island. The shortest route, however, is that which takes the Frascr River, and terminates at Burned Island ; that is some fifty or sixty miles shorter than the route 18 any one itrarj' are is House, istructioii Manitoba. ates from Garry, a )e able to from the blc. We I liave no sent time, will have y section. ion to the this road useless to (yarded us that any this road jression of le country attcr. In ommercial return for nld not be the Pacific 7ee to this c power to ith Britisli ent of tlie n that the 3 far as we for power c to divide listanec of Icsirablc to n spirit the \nd for tlie it on Lake some con- irough our proceeded ;cs a long )oint. Wc ro wc can , therefore, not tell the measure- owance for liay are not at there is portion in oint which le junction hat. This nplction of iring party wliere that present the n with the River, and 1 the route whose termination is at Bute Inlet, according to the distances already ascertained, but the engineering difficulties are still more formidable. In no portion of the GMcack Range has yet been found a favourable passage ; that on the Fraser river is the most favourable, but it presents engineering difficulties almost insurmountable. To Bute Inlet there is a descent of 3,500 feet in the course of a very few miles, making an average of over 115 feet to the mile, and there arc very formidable obstacles to traffic passing eastward. Still, if no better route presents itself in the course of exploration this summer, it is probable this route will be adopted by the Government. We do not commit ourselves to any portion not thoroughly surveyed. I l)elicvc it is absolutely necessary in constructing a great railway that there should be a thorough exploration and survey before it is commenced. I do not believe that any time is gained by the other course. I know our friends from British Columbia are very impatient for the actual work to be commenced, but it is impossible to commence worlu of Construction until the plans on which they are to be constructed are decided upon. It would be very easy to commence at Bute Inlet to grade the road, and so keep witlun the terms of the Union Act, but I scorn to practise any deception in the matter. (Hear, hear.) I desire to he perfectly frank, and I say it is utterly unsound in practice and principle to commence the work until we know the precise point where the work should be undertaken. It would be a great mistake in the interests of British Columbia itself to commence the construction of the railway, and a year afterwards, after spending perhaps a million or more, to find that we might have obtained a road more favourable in its route and in other respects. We know that though Mr. Fleming had been engaged four years in the survey of the Intercolonial before a single sod was turned upon the line, his surveys were in such a state of incompleteness that it cost the country a great deal more than it need, and would perhaps cost more yet, besides giving rise to difficulties and to heart burnings among the contractors, who alleged they had been deceived with regard to the character of certain sections. I have tliese complaints before me every day. Every gentleman knows, who hears the motions made in tin's House from day to day for papers in connection with these contracts, that a serious blunder was made at the beginning, and that arose from the commencement of the work before a complete survey of the road had been made. We are now pushed by our friends from British Columbia to commit a similar blunder, but in a greatly enlarged and aggravated form. For if it took four years to survey the Intercolonial Railway, passing through a country which was reasonably well known, how much more difficult must it be to survey the country from the Rocky Mountains west, which is characterized as an enormous plateau, with mountain ranges rising to an height greater, in some cases, than the highest passes in tlie Rocky Mountains themselves ? We are told, as a matter of fact, that thirty miles from the Pacific the mountains are higher tlian the most elevated of the Rocky Mountain range. The country is almost entirely unsettled, and is a most difficult road from an engineering point of view. It is intersected at various points by large, rapid, and most dangerous rivers, and presents some of the most formidable engineering obstacles. The Government, therefore, feel tl.nt they would not be justified if they did not prosecute as rapidly as possible a full and complete survey of the country before they commenced the road, if that road is to be anything Uke a success. (Hear, hear.) I have a firm belief in a great future for Canada. (Hear, hear, and cheers.) I liave a firm belief that the vast prairies of the West will, even within my own life time, be filled with millions of a busy population ^cheers) — that the vast mineral resources of British Columbia will be developed, and that its agricultural resources will prove much greater than at present we have reason to think they are. (Hear, hear.) And, Sir, we have also reason to hope for traffic upon this road that will make it a commercial success. Whenever it becomes necessary to use it as a commercial highway, you would find the difficulty which would be created by having it poorly surveyed and badly graded. There are various modes by which this character of railway has at several times, and in several countries, been constructed, and I think it might not be at all unprofitable to glance at some of the modes by which other countries have accomplished the building of some of their roads. Sir J. A. Macdonald suggested that as it was now within a few minutes of 6 o'clock, and the honourable gentleman was entering upon a new portion of his subject, that he should reserve hi^ remarks until after recess. Mr. Mac! nzie agreed to do so, and the House accordingly rose for recess. After recess, Mr. Mackenzie said — Mr. Speaker, before the Houise rose I was about referring to the mode adopted in other cotmtries for constructing works of tliis character iuvolving 14 II the expenditure of large amounts of money. There are several countries in very much the same jmsition as ourselves which have undertaken the construction of railways ujwn a large scale. If we take, for instance, some South American nationalities, wo find in constructing the Plate River Railway, or the Central Railway, as it is otherwise called, whicli is about 247 miles long, adopted the plan of granting money to the extent of 32,000 d(>)lars i)er mile, and a guarantee of per cent, u^xin that amount for forty years. This railway passes through the Plate Valley, which contains about 900,000 8(|uare miles, with a iiopulation of 3,000,000, or three souls to the mile — a country somewhat smaller than Canada, and a climate, in many portions, somewhat similar. VVo find that the Southern Railway in the same Republic is constructed by a guarantee of 7 per cent, by the Government on 700,000/. sterling ; another, by tlio merchants, of iiCy.OOOI. sterling, efjual in all to about 5,000 dollars per mile. The Nortlicrn Railway, also in the Argentine Republic, recciv»'d a guarantee of 7 per cent, upon 750,000 dollars for twenty years. In Chili the only railway of any consequence constructed in the same manner'is that from the seaboard at Valparaiso to Santiago, a distance of 114 miles. It was undertaken at first by a Company, the Government taking two-fifths of the shares and tlic Company tiie rest. The Company worked so badly, liowever, that Congress finally bouglit out tlie shareliolders who had begun building the railway, and borrowed 7,000,000 dollars from the Rarings in order to enable them to complete the road. The road was projected in 1850, and opened fo'' traffic in 1873. Russia is another country possessed of vast resources in land as well as money, or more properly speaking, in credit. In 1857 the first, great railway corporation was organized in Russia under tlie name of the Grand Russian Raihsay Company. It was organized chi(!fly by Frencli gentlemen wiio intended to construct a road from St. Petersburgh to Varsovie, at a cost of 70,000,000 dollars, another branch from St. Petersburgh to tlie Prussian frontier at a cost of 9,000,000 dollars, a tiiird line from Moscow to Ninnaugorod at a cost of 20,400,000 dollars, all of which were completed in 1862. A fourth and fifth line were also undertaken by the Company, tlie one from Moscow to Theodosie, and the other from Orel to Liban. The Company received, in the first place, a guarantee of 6 per cent. up"n a certain amount of capital on the three first sections, the expenditure upon wliich tlie guarantee was payable being 110,500,000 dollars; they afterwards asked an increase upon this guarantee, and also 5 per cent., equal to 114,651 dollars per mile, on the fourth line, instead of 5 per cent, on 75,428 dollars. This was refused by the Russian Government, and they finally undertook to pay interest on 89,887,700 dollars, an actual subsidy of 21,000,000 dollars, and released the Company from its obligations to build railways No. 4 and No. 5. In Portugal, one of the European countries in whicli railways have been built under the immediate supervision of the Government, the mode of procedure has been one of tlie two following. The Government initiates some of the railway projects ; they first decide upon the line to be built, the mode after which it is to be constructed, the principal towns at which it is to touch, and then they invite proposals from capitalists. Tlicsc proposals were based upon a careful consideration of the form of tender given by the Government to the intending contractors, and sometimes they were put up publicly to auction. Generally speaking, however, the tenders were received, and the one that presented the most advantageous terms was accepted, subject to subsequent ratification by Parliament. Sometimes Com- panies organized a scheme themseivcs, and submitted their scheme to Government, with plans and specifications, with all the information necessary to enable competing Com- panies to make a tender. The scheme was then advertised, and if any parties offered more advantageous terms than the original projectors were at liberty to accept thos(( terms for themselves ; if they did not it was put up to auction and sold to the highest bidder. In that case Parliamentary consent was not required. Several railways were built under this system, the first being from Lisbon to Santarem and the interior towns, the Government paying 6 per cent, for fifty years, with one-half for a sinking fund, and a bonus of 2 per cent. The second was from Bariere to St. Ulcs, with a subsidy of 8,500 dollars per kilometre, or 1 3,000 dollars per mile, with a free grant of all the timber and Government lands, the absolute subsidy of the roads becoming the property of the Company. The third was built by a French Company, from Lisbon to Cnitra, the Company receiving a valuable grant of land in the neighbourhood of Lisbon by which means they expected to be able to recoup themseivcs. The fourth, from Lisbon to Oporto, was biiilt by an English Company, with a subsidy of 27,000 dollars per kilometre, or in the neighbourhood of 40,000 dollars per mile, with the timber, mines, and mineral lands within one-half a mile of the road, as they might be able to discover them. The French railways have been constructed on a somewhat mixed plan. The State has surveyed the entire system of the country, over which they retain a corps of engineers. When a jry much ajfl ui)on B find in ic called, extent of rty years. sfjuare ioniewhrtt liiid that per cent. l.'5,000/. y, also in ollars for the same 14 miles. 15 of the ;ver, that Iway, and iplctc the Russia is ! properly in Russia chiefly by Varsovie, e Prussian jorod at a and fifth L>, and the irantee of cpenditure afterwards )5I dollar-s i\3 refused 89,8«7,700 ly from its European ion of the lovemment built, the touch, and n a careful intending y speaking, vantageous times Com- imcnt, witli eting Com- ics offered :cept thos(! the highest Iways were trior towns, f fund, and subsidy of of all the le property to Cnitra, m by which 1 to Oporto, netre, or in neral lands rho French iS surveyed 3. When a '. road ia considered necessary, it it is located in tills way by the Government engineer. Tics, rails, sleepers, and so on were contracted for upon specific terms. Under this mixed system there is no doubt the French railways have been a perfect success. There has been a greater measure of safely and prosperity than on English lines, because they have been built and are worked under direct Government supervision, and are free from tlie competition which has done so much to injure the English and American sptcms of railway ; undue competition has been entirely avoided, each railway having a fair country to draw upon for its traflSc. Up to the latest date I have, I find in certain returns the Government have advanced somewhere alxMit 200,000,000 dollars, wliile private Companies have advanced nearly four times that amount. Since the date of that return some heav;y- outlays have taken place in that country, and I merely refer to the matter in order to instance the mode o* building as one from which we might derive some instruction. One of the most prosperous British Colonics, New Zealand, is doing some work of a similar character to the Pacific Railway. Although in New Zealand they have no federal system of Govern- ment, practically it is, so far as the land is concerned. Each province has a municipsd Government which controls the land, and they have given these lands as security to the contractor. No calculations could be based upon them, however, our circumstances being entirely different from theirs. The Irish railway system has been partly aided by the Government. Government have advanced a very considerable sum. about ] 0,000 dollars per mile, on the Irish railways, giving security for interest upon tiie stock at the rate of from 3^ to 5 per cent., the average being 4 per cent. The system of guaran- teeing the payment of interest on the stock seems to have worked well in British Iniia, where we have uistances of enormous railway works being constructed under the direct supervision of the Government by organized Companies, Government guaranteeing a dividend to the stockholders of from 4^ to 5 jier cent, for a period of ninety-nine years, at the end of whicii time they become possessors of the railways, unless other arrange- ments are made. Under this system the roads arc reported to be very successful, and the vcral thousand dollars. Parts of it will, of course, exceed that very much, though in tiu; whole of the sections east of the Rocky Mountains something in the neighbournoo<' of that figure will cover the outlay. Well, Sir, we propcse to donate 10,000 dollars prr mil" to the Companies, and a gtiarantoc of 4 per cent, on a sum to be named by .hr m in their t«!nders, and whatever sum they may name will be the determining point as to which of the tenders is the lowest ; the grant of land being also absolutely in each case 20,000 acres. But I believe it is an evil system to place any large quantity of our lands in the hands of companies, and the Government therefore propose, wliile giving 20,000 acres per mile, to retain tho entire control of the sale of two-thirds of these lands in their hands, and only to convey absolutely to the companies one-third of the land to be given altogether. I am qtiite aware that this proposition is lii^ely to depreciate the value of the lands to some extent in tlie eyes of companies who enter upon it as a commercial transaction, and we do not expect any companies to enter upon it in any other light. Wherever a company proiioses to do it from mere patriotism we may be sure there may be some mistake. (Hear, hear, and laughter.) Honourable gentlemen opposite may well laugh, because we had an instance of that, and we know how it turned out. (Hear, hear.) But it is much better, even if that should be the case — even if it should in the eyes of the contracting public depreciate the value of the lands to some extent — that the Government should retain in their own hands the entire control of tlie greater proportion of these lands, because I attribute a very great deal of importance indeed to being able to throw in settlers to all parts of the country, and filling it with population, which is the only thing which can give ultimately commercial value to tho road or prosperity to the country. It will be observed. Sir, that in the resolutions, as I have mentioned, the Government provide for the submission of these contracts to Parliament. They provide also that in case we receive no proposals for the building of what arc called the sections in the Bill, that is any of the four great divisions, the Government take jKJwer to issue proposals to build the road by direct Government agency. That, however, will be subject also to the ratification of Parliament. Wt; do not expect that any company will make a proposition to build a less irortion than one of the sections I have indicated, that is from Nipissing to Nepigon, 557 miles ; from Nepigon to Red River, 410 miles ; or if we take aiw point of departure on Lake Superior, from that point wherever it may be, then from Red River westward to Fort Edmonton or the point where we may make a connection with the section west of the Rocky Mountains. These arc the four great sections, and it may be Suite advisable, quite possible, and altogether it may be the best thing that can be done, lat each of these sections should be built by an independent company instead of having one grand company monopolizing the entire system of contracts. That is a matter which is one more of detail, however, than one of principle, and I merely mention ii because we have divided the country into these sections for the convenience of getting tenders from companies whicli might not be powerful enough to undertake the whole, but might be able to undertake a part of it ; and also because in the central region wc do not intend at present to invite any proposal for immediate execution. The British Columbia section will, of course, have to be proceeded with as fast as we can do it, as it is essential to keep faith with the spirit, and as far as possible with the letter, of the agreement. (Hear, hear.) The branch from Pembina to Fort Garry we propose in the I'ill to take absolute authority to build immediately, and as we expect to begin the work of con.stniction some time during the present year]! we will not propose in tlie Bill to rpservc that for the sanction of Parliament. In connection with a through line upon our o^ n territory, it would be observed that wc hwo about before I sit down, more in explanation of what has taken place in British Columbia than either in defence or explanation of the Government iioUcy. It will have been observed, Sir, tliat there was a good deal of excitement, not to say commotion, in that province over some proposed aid to be given for the building of a dockyard for that province. Under the terms of Union it was provided that this Government should guarantee the interest on 100,000/. sterling for ten years at 5 i^er cent., for the completion of that work. A short time after 1 had been in the Government, representations were made to me by members from that Province that the attempt to get the dock built with this guarantee had been an entire failure, and asking the consideration of the Government to a new proposal. That proposal I found had been submitted to our predecessors, the late Government, and it was substantially that the Government should advance to that province a sum of 250,000 dollars, to be paid out as the work progresses, instead of giving a guarantee for a per cent, interest on 100,000/. sterling for ten years. After careful consideration, we felt it was of great importance to British and Canadian commerce — for although Canadian commerce is small as yet on the Pacific, we hope to see it become a very large commerce — we felt, I say, that it was extremely desirable that facilities should be given at that place both for commercial vessels and vessels of Her Majesty's navy. We have found within the last few days, indeed, that a great convenience results from Es(|uimaU being a naval station, as the Government has on several occasions obtained the aid of one of the gun-boats usually stationed there to perform what is really Dominion or Provincial service, and we felt quite justified in accepting the proposal ot the Columbian Govern- ment, through some of its members here, to advance the sum of 250,000 dollars. If Parliament should approve of the measure we have submitted, a resolution which is on the paper, and which I shall move as soon as these resolutions are disposed of, will autliorize the Government to carry this out. It was assumed in the province that we had agfreed to this modification in favour of British Columbia, for the purjXNse of offering some sort of inducement to them to make reasonable terms in reference to the building of the railway. It is, Sir, one of those modifications that one might reasonably expect to have such an inHuence on the provincial mind there, but that there was ever a word passed on the subject between myself and the honourable member for Victoria who sits behind me concerning any bargain of this kind I utterly deny. There was no word, from first to last, about any terms whatever. We merely thought this was one of the modifications of the terms of the Union in favour of the Province that circumstances seem to have called for, and that the Government was ready to concede for the benefit of the Province and the interests of the Dominion . ( Hear, hear.) The Government will feel bound on all occasions to consider anything of that kind in the same spirit, and whether the British Columbian Government and Legislature make any reasonable modi- fications in the terms of Union or not, it will make no difference with this Government in carrying out what is just and right in the public interest. It is just the same with reference to ^e other proposal to advance to the Government of British Columbia for [107] D '1^ I r 18 internal matten a Mun of 000,000 dollan, or thercabonU, hcing the amount upon whkh titey are entitled to receive interest. A meamre will be submitted to Parliament to carry ont both projecta, but they have no connection whatever with the terms connected with the Pacific Railway ftirther than I have indicated. We expect every Province to to Goncnr in any reasonable modification of what may he ri|;idly due to them when the public weal seems to call for it ; and the Dominion, on the other hand, will be open to conrider anything; that is essential for Provincial prosperity, even if the terms of Union should not strictly require it. This is tlin principle iiiwn wliich tlie Govern- ment have considered these two proposals, and this is the spirit in which wo ex|>cct Britbh Columbia to receive them. Wc firankly confess that we are unnblo to carry out the terms of Union. All engineers pronounce it a physical imiMwsibilitv ; and, under these ciraimstances, all that British Columbia could mirly complain of would be an indisposition on our part to carry ont the terms as far as practicable. They have seen no such indisposition on the part of this Government, and they will see none on the part of this Parliament, and it would be mere madness for them to exiicct, or fur us to fretend, that wo wore willing to do what everybody knows is a physical im|)ossibility. have no doubt, Sir, that the Honse will agree to these pn»position8. In the discussion of this qnestion in the newspapers within the last few days, although we might fairly expect newspapers in the interests of gentlemen opiiosite \o discuss tiicse resolutions more flrom a party than from a national point of view, 1 have seen no solid objection taken to any of the propositions submitted by the Government, and I am sure discussion for the last few months have been entirely in favonr of the scheme foreshadowed by myself in January. In any case we have deliberately adopted this policy, which, when fully understood, as I think it is already pretty well understood, will be acceptable to the people generally, and, 1 hope, to a very large proportion of the inhabitants of British Columbia. They are spoken of as the people most deeply interested in this road. No doubt they are. Their country is a large one and the population small, t* -rn being but a few thousands of them. The advantage to them and to their Provir of opening it np by railway communication is great, and I am not surprised that "y should bo extremely sensitive on the subject. But the terms provided for in the Act of Union were very olnectionable to the members of the Parliament which agreed to them, three- fourths of whom, I am safe to say, disapproved of them, but they were forced upon them by party exigencies, and softened down by resolutions which, if they had any meaning at all, meant that they were not intended to be carried out. Wc accept these obligations, however, as binding upon us, so far as it is in our power to carry them ont, and consequently we present this our sclicme. It being impossible to implement our bargain to the full extent, wc propose a means of access to Britisli Columbia by the people east of the Rocky Mountains, and similar advantages to those on the west for reaching the older portion! of the Dominion by connecting our inland waters by means of railways. It is quite jxwsible, Sir, that I may, at a subsequent stage, have to make some further explanatioTfS ir regard to this matter, but in the meantime I leave the resolutions in the hands of the House, confident that they will coincide in the policy wc propose, and confident that the resolutions will also commend themselves to the con- fidence and good judgment of this country, and not only of this country and this Parliament, but of the Imperial Parliament :;iso, and of every reasonable man. (Cheers.) In conclusion, that this Honse will pass these resolutions I have no doubt whatever. (Loud and prolonged cheers, amid which the honourable gentleman took his seat.) Mr. 'I\tpper said that he did not rise to continue the discussion at the present time, but to suggest to the honourable gentleman whether it miglit not shorten the time which would naturally be occupied in the discussion of so lai^ a question if the House were now to pass the resolutions as they were proformd, and discuss them when the motion was made for the second reading of the Bill. (Htar, hear.) If tlie proposal was agreeable, he would not on the present occasion make the remarks which would naturally be expected from some gentleman on that side of the House upon the sjieech whicli had just been delivered. Mr. Maektrusie said that of course it was for honourable gentlemen opposite to decide on any course they pleased under the circumstances. He had taken occasion, in introducing the resolutions, to speak with considerable fulness, with the intention of introducing his Bill after the resolutions had been discussed and then passed. Still, if honourable gentlemen opposite desired to take the discnsaon at a later period it would snit him. Mr.. Tufptr said he was not prepared at this moment to follow the honourable gentleman, and he thought the discussion could be postponed with advantage. ion which iament to connected rovinco to when the be open the temu e Govern* wo CXl)CCt carry out and, under )uld be an have wen )n the part for us to IMMribility. diaciurion lip^ht fairly utions more on taken to lion for the y myself in when fully able to the a of British I road. No ft being but f opening it ^ should be ct of Union ihem, three- forced upon ley had any accept theae ry them out, iplement our mbia by the the west for rs by means lavc to make 1 leave the he policy wc to the con- try and this onable man. kve no doubt man took his present time, ,e time which ; House were :n the motion [)ro|)osal was uld naturally :h which had I opposite to a occasion, in I intention of sed. StiU.if triod it would e honourable Mr. Maekeiuie said that the Honourable Member for Cumberland bad stated that when a measure of this kind was brought down, it was of course understood that the carrying of the resolutions iiteant the carrying of the measure itself. Of course honourable gentlemen neeil not ■< ly any tiling on the resolutions now. They could uait until the third reading if tiicy i^l'^afcd, but the Honourable Member for Cumberland knew that on any resolutions liko those the discussion ordinarily took ]>laceon the motion for going into Committee, and anything that \<.m naid after that was a mere matter of form. Mr. Blake said tliat Ito liad always thought it a most wiiolcsome provision of our legislative syateni that a measure like thiti sliould be first brought up in the form of resolutions, and a Bill then introduced founded upon them. The arrangement was one which afforded opiwrtunity for a complete consideration of any measure, and that oppor- tunity was given before decisive action was taken by means of a discussion at an early period of the progress of the measure through the House, to be renewed, if necessary, at a later {icriod. They wore anxious, of course, to close the discussion on this question as early as they ]K)8sibly could. In view of what he considered a very long debate on this measure, he had ventured to recommend the ixistiwnement of another important Govern- ment measure. He was sure they should all be glad to hear what the honourable gentleman's views were with regard to this scheme now, and if he did this, the House would be better able to form tlieir opinions on these views at a future day, when the honourable gentleman brought before them resolutions embodying tlicbo views. If honourable gentlemen opposite said they wore wilUng to let these resolutions pro formd tlie Government could not object, but of course they could not draw badger. Mr. Tupper said that two sets of resolutions had been submitted to the House, the first contaimng 120,000 dollars, and the second 10,000 dollars, per mUe, as the subsidy to be given. Mr. Mackenzie said that tliis was owing to a clerical error. Mr. Tupper said he would remind the Honourable gentleman that the House liad only had these last resolutions in their hands within a few hours. He had learned this morning for the first time that there had been a change made in them involving the sum of 2. ,(X)0,000 dollars. The opinions Honourable Members had formed with regard to the ticheme must have been changed by this alteration. Mr. Mackenzie said that he received his copy of the resolutions at midday on Satur- day, and the honourable gentleman must have had them since that time in his box. 'ihey had been in the hands of Honourable Members for two days at any rate. He moved that the S|)caker do now leave the chair. Tlie motion was carried, and the House went into Committee, Mr. Forbes in the chair. Tiie resolutions were adopted, and the Committee rose and reported. The resolu- tions were then read a second time, and Mr. Mackenzie btroduced a Bill founded upon them. The Bill was read ti first time, and the second reading fixed for to-morrow. the Inclosurc 3 in No. 3. Extract firom the Toronto " Globe" of May 13, 1874. Summary of Air. Mackenzie's Speech. Thb Canadian Pacific Dbbatb.— The Canadian Pacific Railway scheme yester- day entered upon a fresh era of its history. On the motion to go into Committee on the resolutions on wliich the new measure will be founded, Mr. Mackenzie, in an extremely able speecli, gave the House a full exposition of the policy of the Administra- tion with regard to this great enterprise. He drew attention to the circumstances surrounding the original agreement to build the Pacific Road, and to the fact that be then anticipated and predicted future complications as the necessary result of the reck- lessness of the Government by which the terms of union with British Columbia were negotiated. That recklessness was the less excusable, because the Government had the benefit of the experience gained from the Intercolonial, then, and still in progress. But that road was only 500 miles in length ; it was accessible at all points from the sea ; it possessed, therefore, none of the difficulties besetting tlie Canadian Pacific. Yet, while at one time it was supposed the intercolonial would be completed in three years, seven D 2 ao years had elapsed, and it wonld take another year at least before the work would be finished. All this was known to the late Government, when, in 1871, thev pledged themselves to build a road 2,500 miles in length, through an all but inaccessible country, with only a few thousands of inhabitants, along a lino of route beset with difficulties and obstacles to its construction. And their scheme was so rash and impracticable, that it was not possible to obtain even recognition for it in the money markets of Europe. The legal terms of the contract with British Columbia were exact ; but even when they were being forced through the House in 1871, a resolution was introduced to satisfy the murmurings of Ministerial followers, the terms of which proved that it was not even then intended the compact should be literally complied with. The burdens of such a work would not cease with the building of the road. It was possible to grant land for the construction of the railway, but it might be possible, by fixing a price upon the land, to exclude population, and the first necessity was to make ingress to the country so easy, and land so cheap, as to fill it as early as possible with a population. The lowest estimate of the cost of the road, made by Mr. Sandford Fleming, was 100,000,000 dollars. The charges and interest on that amount could not be less than 6,000,000 dollars per annum. It was estimated, that not until the popiilation of the regions traversed numbered 3,000,000, would the road pay its working expenses. These expenses were calculated at not less than 8,000,000 dollars a-ycar, and that vast sum would not include renewals of rails and sleepers which would have to be made, if iron rails were employed, every eight or nine years. It must be expected, therefore, that they would have to provide 6,000,000 dollars p-year to keep the road in operation. But it was not only the legal contract made between the Dominion Government and British Columbia that had created embarrassment. That bargain declared the terminus of the road should be on tne shores of the Pacific Ocean ; but the late Government had agreed to locate it at Esquimalt in Vancouver Island, 240 miles further than the point on the mainland, which would comply with the original obligation. Nor wan this the only additional responsibility involved in such an agreement, Tlic engineering difficulties to be encountered in constructing the line to Esquimalt would be enormous. After leaving Waddington Harbour, on Bute Inlet, the road to reach Seymour Narrows, would, for 50 miles, be of the most costly constniction, involving a large number of tunnels, varying from 100 to 3,000 feet in length. To cross the Narrows they would require 7,880 feet of bridging, one bridge to b« of 640 feet clear span, three of 1,100 feet each, one of 1,200 feet, and two of 1,350 feet, the water being too deep to admit of piers, and the current running at from 4 to 9 knots an liour. Tlie 30 miles interven- ing between the mainland and Vancouver was studded with islands, whic'i must be crossed, and which would involve works of the most formidable character. These were some of the difficulties which faced the Government on their coming into office. They desired to do their best to fulfil the obligations incurred by their predecessors, without admitting them to be absolutely binding ; and had accordingly directed Mr. Edgar, who had gone to British Columbia as their confidential agent, to offer the Local Administra- tion to commence the road at Esquimalt, and push it forward as rapidly as practicable, if the British Columbians would assent to a relazation of the original terms, and accept an agreement that the Pacific road throughout the Province should be built at the rate of fin expenditure of 1,500,000 dollars a-year. If that was refused, then they liad no resource but to abide the terms, and need go no Tiirther, those terms not comiiclling them to enter Vancouver Island at all. Whether this reasonable proposal would be accepted or not, he could not at present say. The speeches of Sir John A. Macdonald during the elections had been designed to create difficulties as far as possible. The British Columbians were told, a breach of the terms wonld entitle them to secede from the Confederation; but Mr. Mackenzie had a better opinion of his fellow-countrymen than to .supi^ose they would listen to the desperate advice of a desperate party leader. He went on to say, he had proposed to utilize the water communications of the north-west in perfect good faith ; and the more he reflected on that portion of the scheme, the more he was convinced of its policy, and the necessity of adopting it. The road from tlu Rocky Mountains to Bute Inlet would alone cost at least Sij.OOO.OOO dollars. If they took time, the minimum cost of the whole road— 100,000,000 dollars — might suffice ; but, if they were limited to time, Mr. Sandford Fleming 'vas of opinion it might cost double that sum. Between Lake Nipissing and Lake Nepigon no serious obstacles presented them- selves. From Nepigon to Fort Garry the work, although formidable, was not appalling. The road from Pembina to Fort Garry, would have to be constructed at once, both on 91 acconnt of the people of Manitoba, and as an auxiliary to the construction of other portions of the railway. In this connection he took 'Hscasion to scout the charge of collusion between himself and the promoters of the Northern Pacific. The section lying between Nipissing and Nepigon they did not propose to construct at present, nor would the delay of this portion be at all at variance with the bpiiit of the original undertaking with British Columbia. The road from Lake Superior to Fort Garry would have to be built as early as practicable, so as to secure a summer route to Red River. That section would be 416 miles in length. From Fort Garry to Fort Edmonton was 780 miles, but the Saskatchewan could be ascended for several hundred miles further west. From thence to the Pacific Coast a railroad was the only means of access left to them. They would have, as had been teen already, to spend 35,000,000 dollars on the construction of the road through British Columbia, besides building 100 miles of railway on the eastern side of the Rocky Mountains. Survey parties were now seeking an easier route through the Cascade Mountains. The shortest route for the line would locate its terminus at Burrard Inlet, but it was probable that the route terminating at Bute Inlet would prove the most desirable, especially ui view of the railway being carried to Vancouver Island, although there the gradients were for a considerable distance no less than 115 feet to the mile. The surveys were not yet completed, and he would, under no circiimstances, be a party to taking one step until possessed of every needful information for giving the contracts, viith a view to their satisfactory fulfilment' After expressing his confidence in the fbture of Canada, if her affairs were prudently manned, Mr. Mackenzie described in some detail the nature of the arrange- ments made by other Governments for the construction of railroads. He then descried the plans of the Government for building the Pacific Railway, as already explained in "The Globe," including the subsidy of 10,000 dollars per mile, the land grant of 20,000 acres per mile, with the provisions for its salr under Government authority, and the guarantee on terms to be agreed on in the contracts. He could not estimate the cost of the road eastward of the Rocky Mountains at less than 40,000 dollars a mile, and would not say it might not largely exceed that sum. The Government would take powers to construct the work by contract, or otherwise, but in either case they would first come to Parliament for its sanction and authority. Probably they might find it best to allow the road to be constructed by four independent companies instead of one great corporation ; but on this point he did not desire to commit himself. He referred to that portion of the scheme which relates to the line from the Ottawa to the Georgian Bay, and the connection to be established with the Provincial lines, and made some remarks in explanation of the arrangements with British Columbia with regard to the graving dock at ihe Esquimalt, and the capitalization of the annual subsidy. No. 4. The Earl of Dufferin to the Earl of Carnarvon. — {Received May 28.) My Lord, Ottawa, May 15, 1874. IN continuation of my despatch of this day's date* I have the honour to inclose an artich flrom the Toronto " Mail," opposition paper, criticising the scheme of the Government. I h&vc &c» (Signed) ' DUFFERIN. Inclosure in No. 4. Extract from the "Mail" of May 14, 1874. The Pacific Railway. — We have now heard Mr. Mackenzie's explanations of tiie Pacific Railway resolutions. In his speeoh he endeavoured to combat the statements made in these columns that his scheme, if carried out in good faith, was virtually the scheme of his predecessors, which had bet n so unsparingly condemned by him and his party. We apprehend that those who listeuod to the disclaimer failed at the same time • No, 8. ^1 ' ! to And any jnstificiition of it in the Premier's nemaritd. The only point of difference t» which tlie ("irst Minister alluded was the disposition of the land grants ; this, however, is bnt an incident of the scheme, and we shall refer to it farther on. Taking; the Government's propositions as they appear on paper, they contemplate the construction of a line of railway from Lake Nipissing to some point on the Pacific Ocean, with branches from Pembina to Fort Garry, and from Lake Nipissing to the Georgian Bay. (n the latter respect there is a change from the sclieme of the old Government, wliicli proixised to make this branch from Lake Superior, rather than fVom the Georgian Bay. Otherwise, we repeat, it is the old plan in aU its essential features. We are speaking now of the railway, and not of the manner in which it is to be constructed — of what the men in fwcr once so vigorously and, as now appears, to unreasonably opposed. The Premier's speech makes plain what was before only a i.iatter of suspicion. The paper plan is one tiling, the real Government plan another. I'he paper plan was conceived to be necessary to satisfy tlie representatives and the reov^le of British Columbia. The real plan is a tricky and roundabout way of avoiding what Mr. Mackenzie confesses are, in fact, Treaty obligations between the l)ominion and the Pacific Province. Let us look at the scheme. Mr. Mackenzie assured the House and the country that the explorations which have been made show that there are no serious en2;ineering difficulties on tlie section between Nipissing and Nepigon, which was supposed to present the greatest pliysical difficulties on the entire route. At the same time, patting the eastern men on the back, he dwelt upon tlv3 advantages to Montreal and Quebec and the Provinces to the eastward, of the connections to be formed between the Pacific Railway at Lake Nipising, and the lines in course of construction from more easterly points westwardly to the eastern terminus of the Pacific road. In one breath he blows all this away, as though the portions of his resolutions referring to the eastern section had never been written nor printed, into thin air, by emphatically declaring that the Government do not intend to build this section at all. He did not even attempt to make an approximate estimate of the time within which it would be built, and thus form the connections between the east and west of which he spoke. It is, in fact, abandoned as completely as though it were never mentioned, and we are safe in saying that, if this Government were to remain in power for a quarter of a century they would not construct it, imless; indeed, some dire political necessity or the incentive of personal gain urged them to it. The eastern men, who looked for bread from Mr. Mackenzie's hands, may well say he has given them a stone. Well, the eastern section of the railway is to be thrown over. What then? The section between Nepigon or some point on Lake Superior and Fort Grarry, the Premier says, will be first entered upon, but the time when is an important point, on which he gives no information whatever. The Pembina branch, he says, will be proceeded with imme- diately, although it is only a few weeks since the First Minister told a Manitoba delegation that the Government had no intention of going on with this branch until the American Company Iiad extended their road northward to the border line. He (Mr. Mackenzie) is equal to the concocting of the most diverse policies in the briefest possible space of time. It is, at all events, satisfactory to know that something is to be done — that something is the Pembina branch. By way of parenthesis, we would ask here, where now are H. S. Howland and John Turner, and J. D. Edgar, and Messrs. Cook, Cockbum, and the other incorporators wliose suspicious bills Mr. Moss has in charge ? As the first carrion is to be found between Pembina and Fort Garry, thither let the eagles turn their attention. But to " return to our mxittons." Having eot to Fort Garry by rail, we find Mr. Mackenzie still enamoured of his magnificent . nter " courses," though they are not once named in the resolutions. These he intends, he says, to utilize between the Red River and Eumonton, a distance of 600 or 700 miles, but at what period is iis indefinite as everything else in the scheme, except the Pembina branch. From Edmonton westward he estimates that about 100 miles of rail will be required until the British Columbia section is readied, but when the Pacific section is to be commenced we are not informed. That, too, is left in indefiniteness, and may ])e supposed to depend upon the ambassadorial success of the defeated of Monck. We can only say the British Columbians are easily satisfied if any assurance which Mr. Mackenzie has given them in his speech will be regarded by them as satisfactory. The dream of a trans^continental British-American Railway has been effectually destroyed by the present Government. The magnificent scheme of their predecesaon, which was to cost, all told, only 30,000,000 dollars, and 60,000,000 acres of land, is, we fear, dwarfed to the pnny proportions of a road to Fort Oa*Ty» and a branch line which may be characterized as a railway to help the Northern Pacific Company out of its diffi- culties. But supposing that we are wroag in this apprehension, and that it is the iatan- I, which At the tion of the Ck>vemment to make the Canadian Pacific Railway a grand reality, what of its cost ? How does the scheme of the " Great Reform Government " compare with that of their much-denounced predecessors? We were disposed to doubt if the 6oven»- ment really meant to commit the country to the enormous expenditure foreshadowed by their resolutions, and though the junior Ottawa oi^an of the Ministry, wMch is remarka- ble for nothing so much as its evident want of brains, undertook to question our calcula- tions, we have the satisfaction of knowing that the Premier's statement entirely bore them out. The financial part of Mr. Mackenzie's speech, it is true, is open to the strong suspicion that it was made in the interest of the Premier's contractor friends. The lands, he says, cannot be expected to realize more than a dollar an acre. Perhaps not, if they are at once forced upon the market, as this Government, whose members were at one time so strongly opposed to their sale altogether, intend to force them. In the hands of a company they could be made the basis of financial operations, and mostly held until the railway made them valuable. Untold millions will most assuredly be lost to the country by the changed policy of Government with respect to the lands ; but we are now dealing with the Premier's figures. 50,000,000 of acres of land, he says, will realize as many millions of dollars ; add to this 26,000,000 dollars of a direct subsidy, and a simple calculation will give you an absolute cash bonus of 28,000 dollars per mile, for which the Government becomes responsible. But the Premier says in all probability the road will cost 48,000 dollars per mile, the British Columbia section being a particularly costly one. This leaves 19,000 dollars, or, in round numbers, 20,000 dollars per mile, on which the 4 per cent, guarantee for 25 years will require to be paid. The sum total of all this is, that to carry out their paper scheme, the Government propose to give 80,000,000 of dollars in hard cash, and, in addition, the proceeds of 50,000,000 of acres of land so soon as the lands are disposed of, or 50,000,000 dollars more than the sum oflTered by the reckless, extravagant, and corrupt Government which was compelled to go out of omce on issues arising out of this question. Mr. Mackenzie took credit to the Government because they proposed to submit the contracts to Parliament. Verily, these Pharisees strain at a gnat and swallow a camel. This submission of contracts to Parliament is the veriest farce in the world on the part of this Government — a hollow concession designed as a cloak to the retaining of all actual power in their own hands. Everything of real consequence tliese sticklers for Parliamentary responsibility propose to do by Order in Council. They can commence any section or sub-section when they please, and stop it when they please. There is nothing in connection with the road which they cannot do of their own motion, except handing over the contracts without the formality of their submission to Parliament. Aod here, in fact, is to be seen one of the biggest Ethiopians on this particular fence. The whole scheme is so arranged as to enable the Government to take up bit by bit of the railway, and hand it over to their contracting friends. They will let a contract when it pleases them to do so, and no sooner. The whole project as cut and carved out by Mr. Mackenzie and his colleagues savours strongly of jobbery and corruption, and, we venture to predict, will lead to an infinite quantity of both, while at the same time it opens wide the door for that dreaded American influence which was made such a tragaboo of by the Grits when their opponents were in power, and which was so strictly guarded against by the late Administration, whose entire policy, as now most plainly appears, was aUke economical and patriotic, that of the present Government being the very reverse. No.fl. Lieutenant'Oovemor Trutch to the Earl of Carnarvon. — (Received June 12.) (Telegraphic.) June 11, 1874. MINISTRY desire notify you that Delegate proceeds immediately London present appeal British Columbia against breach by Canada railway terms union. No. 6. 77/« Earl of Carnarvon to the Earl of Duferin. My Lord, Downing Street, June 18, 1874. THE intimation which I have received by telegraph of the departure from British Columbia of the President of the Council and Attorney General, sent to this country for 24 the parpose of appealing against the course pronosed by ]^oar Government and sanctioned by the Dominion Parliament, in regard to the Pacific Railway, together with the reports of the proceedings in that Parliament, and other informal commiuications, have led me to apprehend that the difference of opinion which has unfortunately occurred may not only prove difficult to adjust, but may not impossibly, if it remains long unsettled, give rise to feelings of dissatisfaction and to disagreements, the existence of which within the Dominion would be a matter for serious regret. 2. It is not my wish, nor is it a part of my ordinary duty, to interpose in these questions. They appear to me to be such as it should be within the provmcc and the competence of the Dominion Government and Legislature to bring to a satisfactory solu- tion ; and you will readily understand that Her Majesty's Government would be very reluctant to takn any action which might be construed as expressing a doubt of the anxiety of the Dominion Government and Parliament to give the fullest consideration to such representations as may be made on the part of British Columbia, and to deal in the fairest and most liberal spirit with what may be established as being the just claims of that Province. 3. At the same time I am strongly impressed with the importance of neglecting no means that can properly be adopted for effecting the speedy and amicable settlement of a question which cannot, without risk and obvious disadvantage to all parties, remain the subject of prolonged and, it may be, acrimonious discussion ; and it has occurred to me that as in the original terms and conditions of the admission of British Columbia into the Union, certain points (as, for example, the amount of land to be appropriated for the Indians, and the pensions to be assigned to public officers deprived of employment) were reserved for the decision of the Secretary of State ; so, in the present case, it may possibly be acceptable to both parties that I should tender my good offices in determining the new points which have presented themselves for settlement. I accordingly addressed a telegram to you yesterday to the effect that I greatly regretted that a difference should exist between the Dominion and the Province in regard of the rdlway, and that, if both Governments should unite in desiring to refer to my arbitration all matters in contro- versy, binding themselves to accept such decision as I may think fair and just, I would not decline to undertake this service. 4. The duty which, under a sense of the importance of the interests concerned, I have thus offered to discharge is, of course, a responsible and difficult one, which I could not assume unless by the desire of both parties, nor unless it shoiUd be fully agreed that my decision, whatever it may be, shall be accepted without any question or demur. If it is desired that I should act in this matter, it will be convenient for each party to prepare a statement, to be communicated to the other party, and after a reasonable interval a counter-statement ; and that on these written documents I should, reserving of course to myself the power of calling for any other information to guide me in arriving at my conclusion, give my final decision. 5. I request you to transmit a copy of this despatch with the utmost possible speed, to the Lieutenant-Governor of British Columbia. I ha re communicated to Mr. Sproat, the Agent for British Columbia, for transmission by telegraph, to the Government of that Province, the purport of the telegram which I addressed to you yesterday, in order that my offer may come before both parties as soon as possible. I have, &c. (Signed; CARNARVON. No. 7. Lieutenant-Governor Trutch to the Earl of Carnarvon. — (Received July 22.) My Lord, British Columbia, Government House, June 11, 1874. I HAVE the honour to state that I have this day, at the instance of my responsible Advisers, addressed to your Lordship a telegraphic despatch to the following effect : — " Ministry desire notify you that Delegate proceeds immediately London present appeal British Columbia against breach by Canada Railway Terms Union." I h&vc occ (Signed) ' JOSEPH W. TRUTCH. 25 No. 8. The Earl, of Dufcrin to the Earl of Carnarvon. — {Received July 22.) ISIy Lord, ^ Quebec, July 9, 1874. r HAVK the honour to forward, for your Lordship's information, a printed (lircubir from tho DcpartnitMil of Public Works inviting proposals for the erection of a line of telegraph along the general route of the Canadian Pacific Railway. I have, &c. (Signed) DUFFERIN. Inclosure in No. 8. Canadian Pacific Railway. — Telegraph Line. PROPOSALS are invited for the erection of a line of telegraph along the general route of the Canadian Paciiic Railway, as may be defined by the Government. The proposals to embrace the following jjoiuts, vi/,. : — Tlie furnishing of all materials, labour, instruments, and every tiling necessary to put the line in operation. The maintenance of tlie line for a period of live years after its completion. In tlie wooded sections, the land to be cleared to a width of 132 feet, or such greater width as may be necessary to prevent injury to the telegraph from fires or falling trees. Distinct proposals to be made for each of the following sections ; such proposals in each case to state the time when the party tendering will undertake to have *:he telegraph ready for use : — 1. Fort Garry to a point opposite Fort Pclly, about 250 miles. 2. Fort Garry to the bend of the North Saskateliewau, about 500 miles. 3. Fort Garry to a point in the longitude of Edmonton, about 800 miles. 4. Lac La Hache, or other convenieut iioint on the existing telegraph system in British Columbia, to Fort Edmonton, about 550 miles. 5. Fort Garry to Nepigon, Lake Superior, about 420 miles. 6. Ottaw a to Nepigon, Lake Superior, almul 700 miles. Tlie above distances are a[)proxiinato. They are given for the general guidance of parties desiring inlVirmatiou. Any increase or diminution in the ascertained mileage after conslructicm will be i»aid lor or deducted, as 1 lie ease may be, at a rate corresponding with tlie sum total of the lender. Parties tendering must satisfy the Government as to their ability to carry out the worK and maintain it for the siieeiiied time. Proposals addressed to the Minister of Public Works will be received up to the 22ud day of July next. By order, (Signed) F. BRAUN, Secretary. Department of Public Works, June 18, 1874. Memorandum. Information to Parties proposing to Tender. IT is deemed best to make no binding stipulations as to the form of proposal, sO that parties tendering may be at liberty to state tiieir own terms and conditions, leaving the Government to accept the od'er which, in the interest of the public, may be found most advantageous. At the same time it is considered advisable to furnish some data for the guidance of parties tendering, in order that proi)Osals may be made on the same basis and be uniform in essential points. The following is, therefore, witli this object in view, submitted: — 1st. It is intended that the telegraph shall be built along the line to be adopted by the Ciovernment for the railway across the Continent. 2nd. The general character of the country to be traversed V the railway, is described in the Reports relating to the Exploratory Surveys, recently published. L107] fi I ill 1 . 36 3rd. The several routes now under considoratlon and survey, arc also referred to in the above Report. 4th. When the route is adopted by the Govornnient on any particular section, the line to be followed by the telegraph will be defined on the ground by the Government Officei-g. 6th. Through forest tlic timber must be rut down and completely burned (cleared) to a width of 2 cliains (132 feet), to prevent ' .jury to the tclegrapli from falling trees or lire. At the option of tlie contractor valuable timber may be cut in lengths, hewn, piled, and reserved at his risk, 6. Along the cleared ground a pack trail or road to be made for tlie purpose of carrying material for constructing the telegraph, and for elTecting repairs. 7tli. Through forest, tlie poles should be of moderately large dimensions and of the best available timber to be had in each locality. 8th. In prairie sections, when suitable timber for permanent poles cannot be obtained until tlie railway be constructed, and tlie means of conveying tiiem from a distance thus provided, the poles may be of an average liglit description, and of such timber as can most conveniently be procured. 9th. In forest sections the poles may be erected 132 feet apart, and the wire to be used may be that known as No. 1 1 . lOtli. In prairie sections the poles may be erected 176 feet apart, and the wire to be used may be that known as No. 9. 1 Itli. Each tender will specify the kind of insulator, as well as all other apparatus and materials proposed to be used. 12th. Parties tendering may stipulate for maintaining and operating the line for five years, or a longer period. 13th. On account of the difficulties in tlie way of transporting building material, it is not expected that the telegraph will, in the lirst place, be so permanently con- structed as could be desired. The main object, liowever, is to provide a pioneer line throUi.,hout the whole extent of the country, to assist in tlio building of tlie railway and settlement of tlie country. On tlio completion of the railway througli any section, the telegraph may then be reconstructed under new arrangements. 14th. Ill the advertisement the sections are placed in the order in whicli parties tendering may propose to finish tlie erection of tlie telegraph, and they are at liberty to make a distinct proposal for each separate section or for the whole line. 15th. The whole of the section between Lake Nipissing and Fort Garry is wooded, with the exception of about 30 miles of prairie east of the Red River. I6th. Between Fort Garry and Fort Pelly the country is partly wooded and partly prairie, the exact proportions are not yet known. 17th. Between Fort Pelly and Edmonton the country is prairie. 18th. Between Fort Edmonton and the telegraph system in British Columbia tlie country is generally wooded, although some mixed prairie and woodland is met west of Fort Edmonton, as well as unwooded bu'ich grass land in portions of the central plateau of British Columbia. lOtli. In the valley of the River Thompson there is a growth of timber from 6 to 10 feet diameter. It will not be necessary to clear in that locality to the full width of 132 feet, it will be suffic'.ent to clear and burn up the underbrush and lower branches of the trees, so as to render the telegraph secure from danger. 20tli. The advertisement describes the (itli section as extending from Ncpigon (o Ottawa; but the object being to connect tlu; Pacific telegraph line with the Seat of Governmont, it will be suflicient to make a connection with the system of Ontario at the most convenient point. It is reported that a telegraph line will be completed to tlie south-east angle of Lake Nipissing before the close of tliis season. The distance from Lake Nipissing to Nepigon is about 420 miles. 21st. It should be understood that Section No. I is embraced in Section No. 2, and both are covered by Section No. 3. 22nd. Tenders should give a distinct rate per mile for the line through wooded and prairie land respectively for the sections where both exist. Department of Public Works, June 18, 1874. 37 No. 9. The Earl of Dufferin to the Earl of Carnarvon. — {ReceiiJed July 22.) My Lord, Quebec, July 9, 1874. I HAVE tlic lionoiir to acknowledge the receipt of your Lordship's despatch of tlic 18tli June,* in which yon refer to the misunderstanding that lias occurred between tlie Dominion Government and tliat of British Columbia, and in which yon hav(! made so considerate a sn}i;gestion in rcgaiil to the settlement of the dispute. In accordance with your instructions I have forw-vk d a copy of the despatch to the Lieutenant-Governor of British Columbia, and I have also communicated it to my Government. There has not yet been time for them to acquaint me with their view in regard to the friendly suggestions your Lordship is good enough to convey ; but in connection with the subject matter to which tiie despatch under acknowledgment refers, I have the honour to inclose for your Lordsliip's mformation a memorandum of a Committee of Council on the points in dispute between the Dominion Government of British Columbia, together with a report by Mr. Edgar of his mission to that province, accompanied by copies of his corrcsponde.nce with Mr. Walkem, the Attorney- General of British Columbia. I have, &c. (Signed) DUFFERIN. Inclosurc 1 in No. 9. THE Committee of Council after due deliberation consider that the proposed mission of Mr. Walkem, Attorney-General of British Columbia, to England on behalf of the Government of that province, to complain to the Imperial Government of the non-fid(ilment, by the Dominion Government, of the torms of union, and the telegraphic message of the Right Honourable tlie Secretary of State for the Colonies with reference to the said mission, in which his Lordship has most considerately offered his good offices in arriving at some understanding between British Columbia and the Dominion, render it desirable tliat a brief statement sliould be submitted sliowing the position of the question and the action taken by the present Government of Canada in relation thereto. Tlie Order in Council under wliich Britisli Columbia was admitted into the Union, provided in the 1 1 th section that : — "The Government of the Dominiun undertake to secure the commencement simultaneously, within two years from the date of tlic Union, of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected, east of the Rocky Mountains towards the Pacific, to connect the seaboard of British Columbia with the railway system of Canada ; and further to secure the com- pletion of such railway within ten years from the date of the Union." The passage of such a provision was very strongly opposed in Parliament, the Government of tin; day securing only a majority of ten in support of the measure. In order to induce even this majority to sustain them, the following resolution was proposed and carried by the Government. " Tliat the railway referred to in tlie Address to Her Majesty concerning the Union of British Columbia with Canada, adopted by this House on Saturday, the 1st April instant, should be constructed and wcrked by private enterprize, and not by the Dominion Government; and that the pvblic aid to be given to secure that imdertaking, should consist of sucli liberal grants of land, and such subsidy in money, or other aid, not increasing the present rate of taxation, as the Parliament of Canada shall hereafter determine." The late Government were compelled, by their followers in the House, to adopt this Resolution regarding tlie taxation consequent on the obligation to build the railway, as the condition of obtaining their support. Even with this qualifying Resolution pro- mised the section respecting the railway was carried, but by a majority often, the usual majority being from fifty to seventy. It is impossible to conceive how such terms could ever have been proposed, as it was quite clear to every person that they were incapable of fulfilment, especially as the British Columbia Legislature never asked such extravagant terms. The clause of the terms adopted by that body, having reference to the railway, was as follows : — • No. c. E 2 98 ^\\ " Inasmuch as no real union can subsist between tliis Colony and Canada, without the speedy establishment of coniniunication across the Rocky Mountains by coach-road and railway, the Dominion shall, within three years from the date of Union, construct and open for traffic such coacli-road from soiik; point on the line of the Main Trunk Road of this Colony to Fort Garry, of similar character to ti\o said Main Trunk lload ; and shall furtlier enp;ag;e to ust; all means in her power to complete such railway com- mnuication at tlie earliest practicable dale ; and that surveys to determine the proper line for such railway shall be at once commenced, and that a sum of not less than 1,000,000 dollars shall be expended in every year from and after three years from the date of Union, in actually constrncfin»- tlie initial sections of such railway from the seaboard of British Columbia, to connect witl) t]\e railway system of Canada." Mr. Trutch, the Delejjate of tlie British Columbia Government, present in Ottawa during the discussions on the terms of lJni(ni, expressed himself as follows, at a public meeting, in order to reassure those who were apprehensive of the consetpiences of so rash an assumption of such serions obligations : — "When lie came to Ottawa with iiis co-deloi;ati's last year, tliey entered into a com- putation with the Privy Council as to the cost and time it would take to build the line ; and they came to the conclusion that it could be built on the terms proposed in ten years. If they had said twelve ir lightecn years, that tinu would have been accepted with equal readiness, as all that was undci-stood was, that tliu line should be built as soon as possible, British Columbia had entered into a partnership with Canada, and they were invited to construct certain public works ; but he, for one, would protest against anything by which it should be understood that the Government were to borrow 100,000,000 dollars, or to tax the pt-()i)li' of Canada and British Columbia to carry out those works within a certain time (loud elK-crs.) He had been accused of having made a very Jewish bargain ; but not even Shylock would have demanded his pound of flesh, if it had to be cut from his own body (laughter and cheers)." These expressions show very clearly that the terms agreed to were directory rather than mandatory, and were to be interpreted by circumstances, the essence of the engagement being such diligence as was consistent with moderate expenditure, and no increase in the then rate of taxation. When the present Government assumed office in November 1873, the condition of affairs regarding the railway was as follows : — A sum of over a million of monciv had been expended in prosecuting the surveys, over one-half of which was spent in IJritish Columbia, but the engineers had not Ix-en able to locat(> any portion of tlui line. A Company, under the Presidency of Sir Hugh Allan, had been formed by the late Government to construct the line. Tlial Company had undertaken to comploti! the railway for a grant of 30,000,000 of money, and a grant of 20,000 acres of land per mile, retaining possession of the railway when built as their own property. The President and a delegation of the DireotOrs of this Company had visited England to make financial arrangements to enable them to commence the work of coi Jiruction. Their mission proved a total failure ; so much so that soon after the return of Sir Hugh Allan and his co-delegates from England they reliiirpiished their charter, and the Government repaid them the sum of 1 ,0tl0,00O"dollars, which had been deposited with the Receiver-General under the terms of the agreement. The British Columbia Government had also complained that the commencement of the works of construction had not Ijccn made within the time provided ; Sir John Macdonald, however, giving an informal opinion that the terms as to commencement were sufficiently and substantially kept l)y the active prosecution of the surveys. This Government had, therefon>, to provide some other metliod for the carrying out of the work, to endeavour to keep sui)stantially good faith with British Columbia, to avoid further taxation, and, if possible, secure tlie consent and co-operation of the Government and people of Britisli Cohunbia. The new Bill, which has sinci; become law, was prepared, which enables the Government (with the approval of Parliament) to get the work executed in one or several contracts, by a Company or Companies, which may or may not become proprietors of the line after it is constructed. Mr. James E. Edgar was dispatched on a special mission to the Province of British Columbia, charged to confer witii the Ciovernment, and also to visit all classes or parties, and ascertain their views, and to submit any proposal he might be directed to make to the local authorities, or to receive any la-opositiou from them, and forward the same to Ottawa for consideration. A cojiy oi" tlie instruction sent to Mr. Edgar, and copies of certain telegrams already forwarded, and Mr. Edgar's Report, accompanying this Minute, explain sufficiently the nature ami result of Mr. Edgar's mission. It was at 29 first expected that a s!;oo(l niulorstanding would bo arrived at, and, judging; from circum- stances, local political comjilicatinns alone prevented some arranp^ement being; come to. Tlie reason alli'-^ed foi refnsinpf to consider tlio projiosition Mr. PIdgar was finally directed to make, thai Mr. Fldgar was not accredited by this Governin(>nt, was evidently a mere technical preK nee. All that Mr. Kdgar had to do was simply to present the proposals and ascertain on the spot whether they would be (Mitertained by the Ciovernmenl. If sntist'aclory lo them the noniinion Government would, as a matter of course, liave liad them sanctioned in due form, or, if any counter propositions had been made, instructions would Iiave been given to Mr. Kdgar concerning them. The )iropositi()ns made by Mr. Edgar involved an immediate heavy expenditure in Britisli C'oliunbia not cont(;mplated by tlie t«!rms of the Union, namely, the construc- tion of a railway on Vancouver Island from the Port of Estpiimault to Nanaimo, as compensalion to the most jmpulous part of the Province for tlie requirement of a longer time for compl(>ling the line on the mainland. The proposals also embraced an obliga- tion to coiistiiict a road or trail and telegraph line across the continent at once, and an (!X]ienditure of not less than l,.500/)00 dollars within the Province annually on the railway works on tlie mainland, irrespective of the amounts which, might be spent east of the Rocky mountains, b(>ing 5t)0,000 dollars more tlian the entire sum British Columbia demanded in the lirst instance as the annual expenditure on the whole road. In order to enable tlie Government to carry out the proposfds which it was hoped tlie British Columbia (iovernmeiU would have accepted, the average rate of taxation was raised at tiu; late session about 1 5 per cent., the Customs duties being raised from 1.") per cent, to !7 V per cent., and tlie excise duties on spirits and tobacco a corresponding rate, both involving additional taxation exceeding 3,000,000 dollars on the transactions of the year. The public feeling of the whole Dominion has been expressed so strongly against the fatal extrax agance involved in the terms agreed to by the late Government, that no GovernnK^ut could live tliat would attempt, or rather pretend to attempt, their litei-al fiiliilment. Public opinion would not go beyond the proposal made through 3Ir. Edgar to tlie Government. Tlier<> is also reason to believe that local political exigencies alone induced the Government of Britisli Columbia not to entertain these proposals. Sinci.' tlii>se propositions have been before the people, meetings have been held on Vancouver Island, and on tlie mainland, when the action of the Local Government was condemned, and a call made to accept the proposals olTcred. A very influential portion of the local press lias also declared in favour of the course pursued by the Dominion Goveiiiment. It niav not lie out of place to mention that the action of the Dominion Government, regardiiii; the graving dock, shows a desire on their part to do everything that can fairly be asked, whether tliere be an obligation or not under the terms of Union. The Dominion was only bound to guarantee the interest on 100,000/. sterling at 5 per cent, for ten vears aftei- the dock should be constructed. The Local Government found it iii,])ossil)le to obtain any contractor to undertake the work on the terms they were able to oder, based on the Dominion guarantee, and they solicited this Government to assist ollierwise. This was agreed to and Parliamentary authority was obtained at the late session to enabli! the Governor-General in Council to advance 250,000 dollars in cash as the work progressed. The report of IMr. Edgar will fully explain the object and elfect of his mission as the agent of tlie Government. The Committee advise, therefore, that a copy of the said lleporl and Ajipeiidices be transmitted to the Right Honourable Lord Carnarvon, Seeretarv of State lor tiie Colonies, with this Minute. (Signed) A. MACKENZIE. Inclosure 2 in No. 9. Toronto, June 17, 1874. To the Honourable the Secretary of State for Canada : Sir, T HAVE the honour to report that in the month of February last I was rerpiested by lh(! Canadian Government to proceed to the Province of British Columbia on their behalf. My mission was for the purpose of ascertaining the true state; of feeling in the Provinc<> ujion llie subject of certain changes which were deemed necessary in the mode anil the limit of lime for the construction of the Canadian Pacific " ulway, as well as to attend to any other business retjuired, and to act as Canadian Agent in bringing about f 30 some such feasible arranpcniont ns might meet the general approval of the I^cal Govern- ment and the iicople of British Columbia, in place of the original conditions respecting the commencement and completion of the railway tliat arc contained in ihe Xlth Article of the terms of tlie Union. In that clause the language referring to railway constriiction is as follows: — "The Government of the Dominion iindertal time and labour required to construct a line five times that length through a country all but totally unsettled. " You will point out that it is because! we desire to act in good fe.ith towards Columbia that wc at once avow our inability to carry out the exact conditions of the terms of Union that it would have been an easy matter for us to say nothing about, or carelessly to have assumed, the task of finishing the road before the month of July, 1881. " Acting, however, from a desire to deal frankly and honestly with British Columbia, we considered what we could do to afford at the earliest possible date some means of travel across the continent preliminary to, and in advance of, a complete line of railway. " You will point out that, as part of the Dominion, it is as much in their interests as in ours to pursue a careful judicious policy, also that in assuming a disposition, in spite of all reason, to insist on impossibilities, they are only setting at defiance all the rest of the Dominion and the laws of nature. That by insisting on ' the pound of flesh ' they will only stimidate a feeling on the part of people generally to avoid in future giving anything but ' the pound of flesh.' " You will remember that the Dominion is bound to reach the ' seabord of the Pacific ' only, not Victoria or Esquimault, and you will convey an intimation to them that any further extension beyond the head waters of Bute Inlet, or whatever other portion of the sea waters may be reached, may depend entirely on the spirit shown by themselves in assenting to a reasonable extension of time, or a modification of the terms originally agreed to. " You will also pnt them in remembrance of the terms they themselves proposed, which terms were assented to by their local Legislature, and point out that it was only by the insane act of the Administration here, which gave such conditions of Union to Columbia ; tliat it could only have been because that Administration sought additional means of procuring extension of patronage immediately before the general (>lections, and saw in coming contracts the means of carrying the elections, that tlic Province obtained, on paper terms, which at the time were known to be impossible of fulfilment. " If yon find any favourable disposition among the leading men of the Province towards affording a generous consideration to the obvious necessity of giving a sufficient time for the pushing the road tlirough Columbia, you will endeavour to ascertain what value they attach to such consid'' "ition. You will point out that the action of this l-ji^i'^.sn'-rT-ii-iK''^ ■ ^3mmmMm tmtmm Govcrn- ^1pccting 1 Article itniction luuciice- ion of a may bo )<)arcl of •lire the 31 Government ill (Iio mailer of (lie firaving Dock, and the agreement to advance in cnsli Hie halanci- of the amount of debt, with whicli Cohniibia waH allowed to enter the Con- federation, Hhewcd that it was not considering itself bound to exact terms of Union, but was willinj; to go beyond them, when the necessities of i.io Province seemed to demand such action, and that wo not ininaturally expect similar action on tlie part of the Province. " In tlio event of your fnulinji- that llun-e is a willinjrness to accept a proposition to extend the tim(< for the buiidiuH; of the road, you will endeavour to obtain some i)roposi- tion from lliem directly or indirectly, and communicate this to us by cypher telegraph at once. *' If on the oilier hand they make or indicate no projwsitiou, you will telegraph to us what you tliiiik would be accei)lable, but wait a reply before making a proposition. " In the event ol" the leading imin evincing a disposition to negotiate, you will endeavour to secun; somelhing like a coiiibiuation of parties to sanction any proposition likely to be generally aeceplabh;. " It will be well that you should take some means of ascertaining the popular view of the railway (piestion. 'J'his may be done by mingling among the people and allowing them to speak freely while you listen ; remembering in taking impressions that your audience may be impressed by special local considerations rather than general questions. " It will be well not to confine yourself to the vicinity of the Government Offices, or Victoria, but to cross to the mainland, and visit the people at Westminster, and other towns or villages on the lower I'eaches of the Fraser. It may be that you will find that there is a disposition manifested to negociate at Ottawa, in which case you will advise us of the existence of such a desire. You will take care not to admit in any way that wo an; bound to build the railway to Ksquiniault, or to any other place on the Island, and wiiile u)u do not at all threaten not to build there, to let them understand that this is wholly and purely a concession, ami that its construction must be contuigent on a reasonable course being pursued regarding other parts of the scheme. '' It may be that tlic Local (lovernment may desire to constitute the members for the Commons a delegation to iliseuss matters here ; if this be the case you will still remain until we sliall communicate with you. '• Voti will take every o[)jiortunity of noting the various matters connected with Dominion business in accordance with instructions that will be sent. " I am, &c. (Signed) " A. MACKENZIE. "J. D. Edgar, Kscp, Toronto." When i received the alcove letter, I lost no time in starting upon my jonriiey, and leaving Toronto, February 23rd, I arrived upon March 9th at Victoria, the capital of British Columbia. On the day that 1 landed in Victoria, the Honourable Mr. Walkcm, leader of the Local Government, called upon me, and 1 made him aware of the object of my mission. Upon the same day 1 handed iiini I lononrahle Mr. Mackenzie's letter of IGth February (Appendix A), also informing him tiiat I had letters from his Kxcelleney, the Governor- General, to his honour the Lieutenant-Governor, which were next day delivered. Very soon afterwards Mr. Walkem introduced me to his colleagues as the representative of the Canadian Government. Upon my arrival in the Province, 1 found tiiat an intense interest was manifested by all the jjopulation in whatever related to the question of railway ccmstruction. It is didicult at a distance to conceive the imiiortauee that is altaciied to tiie railway by the Dritisli Columbians. On account of tlie vast construction expenditure and the sparse- ncijs of tile population, who would particijiati' in the immediate benefits derivable fi'om it, an interest of a direct and personal character is felt ujion the subject. The entire white population of the Province, according to the census of 1670, was 8,576 souls. Of this number there were upon the mainland 3,-401, and upon Vancouver Island 5,175. The white pojnilation to-day has jn-obably increased to 10,000. With the exception, perhaps, of the gold miners, who jin; confined to the mainland, there is no class in the province that would not derive immediate personal advantages from the railway construction expenditure. Those in business, in trade, and in agriculture would feel the stimulus instantly, while those of means and leisure would bo enriched by the increase in the value of then: property. The circumstances of the early settlement of the province gave it a population of peculiar intelligence ; and the fact that most of the rougher kind of labour is performed Ml 32 ! by Chinamen and Indians, has afforded in an especial way to (he people of Victoria, the provincial metropolis, leisure and opportunity for tlu) fullest discussion of tliis j;rcat question of tiic dav. 'i'lieir keen nitcllijijenco and zeal in public affairs suf?H;csls a parallel in the history of some of (he minor States of anci(>nt Clrcece or Italy. Allhoujjh a strong' feelin;; of jealousy of (he greatness of Victoria undoul)tedly exists in parts of (he mainland, yet thai town is tlic eiiief centre ot public opinion. Its population is almost e(|ual (o the whole of the rest of the Province, and in its midst are the head- tpuirdTs of Govermncnt, of (he Cour(s, of the Churches, and of trade. Within three miles (here is (he fme harbour of Es(|uimaul(, with its arsenal and British ships ot \\;\v. To Victoria the tpiestion of the location of the railway terminus is all important, because there is notliins; in (he terms of Union which settles tliat tliere sliall be any portion of the line ui)on Vanccniver Island; a revocable Order in Council, and the intrinsic merits {•laii\i(r(l for tl\e Island location, are the grounds ni)ou wliicli they hoped to secure the terniinus at Ks(piimault. Wlien it beeauK; well understood that the surveys were not yet so far advanced as to warrant tiie Canadian Ciovenunent in lixinj' the permanent route aul western terminus of tlie railway, it was slronf;ly urf^ed ii[)on me by many ju-rsons in Victoria that the construction of a line of railway should be at once undertaken hy tiie Domini ju from the liariiour of Esquimault to I lie port of Nanainio, on the east coast of Vaucimver Island, a distance of alnrnt seventy miles. It was arf;;ued that at whatever point upon the mainland the Pacitie Railway niii;h( be brought K) the coast, a steam ferry thence to Nana'i'nio mii^iit lie established, and would render this portion of railway a means of connection with Kscpiimanlt, which is said to be till! finest harbour upon the shores of the Northern Pacific. It was also insisted that from its opening; there would I)e a considerable and profitable Iraflic over tliis line in the carriag^c of coal to Kstbn! my arrival ; and tlie lion- had unanimously af-recd to a Rfsohition upon the subject of the Kleventh or Hallway Clause, in the terms of Union with the Dominion, wliieii was calculated lo have an important beariu}? upon all ne^^otiations with the local (loverumeul for a ciian|;e in that clause. The lan<;uaj?oof the Resolution is as follows :— " 'I'iiat iu view of liie importance of the H.iiJwa) Clause of the terms of Union b(!tween Canada and British Columbia bein^; faithtnlly carried out by Canada, this House is of opinion that no alteration iu the said Clause should be permitted by the GoveriunenI of this Province, tuitil tlie same has been submitted to the people for their endorsation." When I ascertained that this Resolution had been passed, that the Pro- vincial Parliament had yet more than a year to run, and that the Ministry had in it a sidlicicnt worUiuR' majority, it at once became apparent that any proposals to alter the itailway (JIauso could possess few attractions in tiie eyes of the party in iwwor. While prc[>arcd to admit that tlie Province would be most reasonable, ami would not be disposed lo insist at all upim (he oi'ii>inal time limit t()r completion, yet Members of the Adiv.inisl ration, looking;' at il fumi Ihcir own point of view, naturally "urged tliat this was a peculiarly unfbrlunale thne lo seek any alteradons, 1 also discovered that llic first Act of the Provincial Slalutc-Hook of lS7;j-7'l, conlainecl elements ot danger to the continued iiarmony between the Cieneral and Local Covernmenls. Tills Act becauic necessary lo aulhori/e the Provincial to receive from the Dominion (iovernmeiil the lai;,(: sums of money, botli for the Ks(|uiniaull (Iraviuf? Dock, and for other public works wliicii the Local Ciovernnienl petilloned I he Dominion Government to advance, and which rcrpicsts the lalter compiled with as concessions to the Province in excess of what could be claimed under Articles 2 and I'J of the Terms of Union. A saving; clause or proviso was inserted in tills Act, cdnlaiiiin;^^ V(;ry strong" language con- cerning the rights and wrongs of IJritish Columbia as regards the railways, adding, " This Act shall not hav(; any force or clfect unless the above proviso be inserted, in the same words, in any Act of Parliament of Canada, which may be passed for the purposes of this Act." A proiijund anxiety was at once manifesled by Mr. Walkem and his colleagues to aseerlain, tlirough me, if tlie Canadian Ministry would propose lo Parliament to adopt the words of this proviso. When 1 sought lo get from them some proposals or sugges- tions a-< to their opinion of tlie concessions that should be made lo British Columbia, in considcraliou of a cliange in the Railway Terms, I was continually met by an urgent inquiry as lo what was to be done about that clause. As early as the I6th of March, I was informed by telegram, that the Dominion Government would not adopt the language of llie proviso iu their Bill, but would make the concessions as originally agreed, and without eondilions aireeling the Railway Terms. The announcement of this was received by tiie Local Ministers with alarm and disappointment; and it afterwards became still more diflicult to get a satisfactory discussion of an altcraliou of Railway Terms with any of them. Onlcrs in Council wore passed by the Local Government upon the subject, and t was continually urg( d to press upon the Doniinior. Government the anxiety of Ihe Provincial Ministry for llic adoption of the saving clause; and I took many opportunities of doing so. This pressun; continued, without intermission, until the 2otli" of April, when, at the re(|uest of Mr. Walkem, I sent a di'spatch to Mr. Mackenzie on behalf of the former, and iu his own language, urging the ailoption of the saving clause. When, according to instructions, I endeavoured to ascertain from Local Ministers if llieir unwillingness to submit proposals as to the railway to the people arose entirely from our refusal to adopt the saving clause, I found that even such a concession would not induce them to bring about an appeal to the people. Aecoi-ding to instructions reeeivedj it was my aim, from the very first, to take ovciy means of ascertaining the popular view of (he railway ([uestion. Indeed, when it was understood that the Canadian Government had delegated me upon this and general matters, the politeness and hospitable attention of all classes soon rendered it an easy matter to form some estimate of public opinion. All were as willing to communicate, as I was anxious to receive, their various views and information. I paid two brief visits lo the Mainland, meeting with people of New Westminster, Hope, Yale, and some few other places ; ami I was so fortunate as to meet, at ouc lime or another, nearly [107J F 34 all the members of the Local Legislature, and many other persons of local prominence from the Mainland. The Lientenant-Governor and the Honourable Captain Hare, Senior Naval Officer at Esquimault, kmdly afforded me an opportunity of visiting the cast coast of the Island in gompany with them on board Her Majesty's ship " Myrmidon." In discussing the question of the time for the completion of the railway, I elicited a very general expression of opinion tliat there was no great importance attached to any particular period for completion, but that serious disappointment had been felt at the failure to commence the work of actual construction by July of last year. Much anxiety was felt for an announcement of the policy of Canada upon tlic subject of tlie railway, and an extreme desire prevailed to have a definite understanding arrived at, as to what the Province could expect in place of the original railway terms which were all but universally admitted to be incapable of literal fulfilment. The public agitation in Victoria of February last might have been mistaken for a movement to insist upon " the terms, the whole terms, and nothing but the terms," or to seek some disloyal alternative. Indeed, a portion of the community who did not sympathise with the excitement so interpreted it. Yet I was assured by the leaders of that agitation that no such motives or intentions influenced them. The people had been aroused by what were deemed suspicious circumstances to fear that efforts would be made, or were being made, to secure from the Local Government an agreement to change the railway terms without a submission to the people who had directly sanctioned the original terms. Tlie local contradictions had scarcely beim accepted as satisfactory upon this point, but my denial of it on the part of tlic Ottawa Government, coupled with the announcement that the latter would not seek to secure any alteration without the sanction of the people of the Province, set that difficulty very m'uch at rest. ^ Notwithstanding the attitude tliat was assumed by the Provincial Government against the submission of a proposal, or the opening of negotiations to alter the railway terms, it was quite apparent tliat popular feeling all over tlje Province was strongly in favour of some definite settlement being arrived at u^jon tlie f|uestion. The notorious and admitted failure of the original scheme of railway construction liad uisettled tlie busmess of the country, and the whole community, including even those who would have been the most exacting in bargaining with Canada for new terms, were anxious to have a proposal made, and to have a full opportunity for discussing and accepting or rejecting it. I felt, therefore, that 1 sliould take an early opportunity of arriving at the views of the Local Government upon the subject. I was given un appointment by Mr. Walkcm in the first week of April, and then confidentially discussed with his Ministry the whole question of alteration in tlie railway terms. I may mention that, upon this occasion, no difficulty was raised as to my authority to represent the General Government. At this time there was considerable irritation displayed by Ministers upon the subject of the saving clause liefore alluded to ; they would not admit any necessity for a present settlement of the railway fpicstion, but slill persisted that next year, or some future time, shoiild be awaited for the making of any such propositions ; ;-iul the}' w(.'re particuiarijr v aicrui lu avuia oujing what concessions, in their opinion, would be acceptable to the Province, in lieu of the original terms. The attitude of the Local Ministry rendered it more important than ever tliat the popular feeling should be accu"ately ascertained, and it was my aim to discover it by unreserved discussion with a', many men as possible of the dill'ennit parties and localities. It was now quite apparent that the Local Ministers were dotermlned 'o be obstructive, and it became all the more necessary to satisfy the people in so f\xr as i)ieir views were found to be reasonable. After receiving from nie the best informal \m I could supply, Honourable Mr. Mackenzie directed me to make the Provincial (Jovern- ment certain proposals which were so arranged as to give large and certain advantages to the ]\lalnland .equally with the Island, aiid on tlie Gth of May 1 was instructed to put them formally in writing and give them to the Local Premier, and a copy to the Lleuienant-d'overnor. Upon the 8th May I had pn^pared, and 1 read ovJr (o Mr. Walkem, the letter of that date, contaiiilng the proposals (Appendix H), and upon the following day 1 handed ic tn him, and furnished a cojiy to his Honour the Lieutenant-tiovernor as directed, accompanied by a short not(> (Appendix C). I had made arrangements for another visit to tli' Mainland to ascertain something more of the feehng there while tin; Provincial Government were having the proposid under consideration. Before sailing for New Westminster, however, I received the letter from Mr. Walkem j.jmm»-^-i»mim'S*i»>t<»imm¥fammii':mi''i 35 (Appendix D), in which he raised objections to recognize me as the Agent of the General Government. It struck me as so peculiar a communication on Mr. Walkem's part, after he and his colleagues had recognized me as such Agent almost every day for two months, that I felt it would be better not to bo too hasty in accepting that as a serious and final reply to tlic proposals, but to avoid tlie lapse of a few days to be occupied by me in visiting New Westminster, Burrard's Inlet, Yale, and some other places on the Mainland. Upon returning to Victoria, on Saturday, I6tli May, I was waited upon by a deputation of leading gentlemen, connected with both sides of local politics, who informed me that it had been announced in the House of Commons at Ottawa by the Honourable Mr. I.laclieiizie, that proposals liad been made on belialf of his Ministry, through myself, to the Provincial Government, as to tlie alteration of the railway terms, and yet that it was denied by members of the Local Ministry, and by their newspaper organ, that any proposals whatever liad been made. They represented that the popular feeling was very much excited upon the subject, and that the people \vei*e anxious to have the earliest opportunity of considering and deciding upon the question, and I was asked to inform tliem whether such proposals had been made. Upon receiving an affirmative reply, they took their leave, and shortly afterwards, as tlie inteUigence spread, considerable excitement was manifested at the treatment the proposals were receiving at the hands of the Local Ministers. In order to aflbrd Mr. Walkcm another opportunity to reply to the proposals, or to consider them, if he were at all desirous of doing so, I again addressed him, and in a letter of 18th May (Appendix E), endeavoured to point out that he could not ignore the communication of the 8th May, and reiterated the request, on behalf of the Govern- ment of Canada, that the proposals should receive the consideration to whicli they were entitled. In reply to this, I received tlie letter (Appendix F) ; and upon the 19th May, undor directions from the Honourable Mr. Mackenzie, I Icfl Victoria upon my return journey, witliout any further official conmiunication with the Local Ministry. I may be permitted to mention that his Honour the Lieutenant-Governor, through- out the whole of my visit, was alwa}s most obliging in giving me, upon all public questions, very full information, wliich his large experience in the Province rendered of the highest value. He also manifested an earnest wish to see a definite and amicable settlement of the Railway Question speedily arrived at between the General and the Provincial Governments. In accordance with tlie direction contained in the last paragraph of the Honourable Mr. Mackenzie's letter to me of the 19th February, 1 took every opportimity during my stay in British Columbia of noting various matters connected with Dominion business and interests in several despatches to Heads of Departments, as well as in verbal communications with Ministers, I liavc already called attention to some important subjects of that kind ; and I propose to liave the honour of communicating in separate reports or despatches upon several otlicr points of interest and importance connected with Dominion affairs in the Pacific Provmce. I have, &c. (Signed) J. D. EDGAR. Appendix (A). Ottawa, February 19, 1874. Dear Sir. AIjLOW me to introduce ]Mr. James D. Edgar, of Toronto, who visits jour Province on public business for the Government. Mr. Edgar will confer with yourself and other Members of the Government of Coliunliia on the questions lately agitating the public mind in Columbia, and will be glad to receive your views regarding the policy of the Government on tlie construction of the railway. But for tlie meeting of Parliament in four weeks, s-imo Members of the Government would have visited your province, but Mr. Edgar, as a public man, s well known here, and. fully understands the rpiestions he will discuss witli you. I need not, I am sure, assure you of my sincere desire to do all I can to not only act justly but generously to Cohunbia. It is in your interest and in the interest of tliO Dominion that we should both act with a reasonable appreciation of difHculties whicli are unavoidable, and devise means to remove them or overcome them. F 2 '?!■:! I 36 We have induced Mr. Edgar to go to Columbia, as wo thought you would prefer a full Conference with an agent to a tedious and possibly unsatisfactory correspondence. 1 „_ O.- Hon. G, A. Walkem, Attorney-General, Victoria, British CoKimliia. 1 am, &c. (Signed) A. MACKENZIE. Appendix (B). Victoria, British Columbia, May S, 1874. Honourable Geo. A. Walltem, M.P.P., Attorney-General, &c., &c. : Sir, I HAVE the honour to inform you that T have been instructed by the Premier of Canada (o make you aware of the views of his Administration upon (lie subject of the construction of the Canadian Pacific Railway, in order that Britisli Cohmibia may have full opportunity of considering and deciding upon a question so closely affecting lier material interests. The scheme originally adopted for tlie carrying out of tliis work has, for a variety of reasons, proved unsuccessful, and to devise a ]ilau for its more certain accomplishment, has been the aim of the Dominion Cabinet. The chief difficulty to be encountered in attempting to carry out the existing system of c of Union, to connect the sea-board of British Columbia with the railway system of Canada. Feeling the impossibility of complying with this time limit for completion, the Government is prepared to make new stipulations, and to enter into additional obligations of a definite character for the benefit of the Province. They propose to commence construction from Esquimault to Nanai'mo immediately, and to push that portion of railway on to completion with the utmost vigour and in the shortest nracticable time. The engineering difficulties on the mainland have unfortunately turned out to be so p." ' • .3 that further surveys must necessarily be made before the best route can be dei'^rmined upon. The Government have already asked Parliament tor a large sum for ..e purpose of carrying o)i these surveys, and no expenditiu'e will be spared to achieve the most speedy and reliable selection of a permanent location of the line upon the mainland. It is useless to propose an actiml construction being undertaken before the location has been determined upon ; but, in order to afford as much benefit from the works of construction from the very first as can possibly be derived by the people of the interior, the Government would immediately open up a road, and build a telegraph line along the whole length of the railway in the Province, and carry telegraph wire across the Continent. It is believed that the mere connuencement to Imild a railway at the sea-board, as stipulated for in the existing terms, would give but little satisfaction to the producers living on the cast side of tlie Cascade Mountains, who would be iniable, without a road being first constructed, to find a market all along the whole extent of the railway wherever construction was progressing. It woidd then be the aim of the Government to str.ain every nerve to push forward the construction of the railway ; and they would endeavour at (he same time so to arrange the exjicnditure, (hat tlie legitimnte advantages derivable from it would, as much as possible, fall into the harls of o'iv cwu producers. In addition to constructing the road to facilitate transport a!.! r (lie Iciju-fj line, they are anxious to avail them.selves of (he large supplies of all kiiivis of orr. r \^\: now existing, or capable of being produced, in the interior; and wouM proeo i! froni the very first with all the works of construction in that portion of the eou'.trv (liat their engineers could sanction. rziE. i8r4. 37 It is to be observed that, while the terms of Union contemplated the completion of the whole railway within a certain number of years, tliey made no provision for any certainty of expenditure in any particular time, or in any particular portion of the line. To predicate the highest expenditure, which in any one year might be warranted in any particular portion of a great worit lii No. 11. Colonial Office to Mr. Walkem. Sir, Downing Street, July 29, 1874. IN reply to your letter of the 28th instant,* I am directed by the Earl of Carnarvon to inform you that he will be happy to see you at this office at 3-20 p.m. on Friday next, the Slst instant. I am, &c. (Signed) R. H. MEADE. No. 12. Petition to the Queen from the Committee of the Executive Council of the Province of British Columbia, — {Received July 31.) (Delivered to the Earl of Carnarvon by Mr. Walkem.) To the Queen's Most Excellent Majesty. Most Gracious Sovereign, WE, your Majesty's most dutiful and loyal subjects, the Committee of the Executive Council of tlic Province of Britisli Columbia, in Council assembled, humbly approach your Majesty, for the purpose of representing : — 1. 'riiat, prior to the 20tli day of July, 1871, Britisli Columbia was a Crown Colony, having a Legislative Council, partly nominated by the Crown, and partly chosen by the people : 2. That, by section 146 of the " British Nortli American Act, 1867," provisio was made for the Union of British Columbia with the Dominion of Canada : 3. That, during the years 1868 and 1869, the subject of Union was much discussed in British Columbia, both in the Legislature and throughout the Colony ; and a consi- derable conflict of opinion existed in relation to tlic question : 4. That, in obedience to your Majesty's commands, contained in a despatch (Appendix A) of the 14th day of August, 1869, from your Majesty's Principal Secretary of State for tlie Colonics to the Governor of Britisli Columbia, the Governor in Council framed the " Proposed Terms of Confederation " (Appendix B), and in the month of February, 1870, submitted them to the Legislative Council, by whom they were approved : .5. That these Terms had not been directly submitted to the people for their sanction ; and the Council that approved of tliem was at the time composed of thirteen members appointed by the Crown, and nine chosen by the people. 6. That tlie " Proposed Terms " were presented for consideration, through Delegates, to the Honourable the Privy Council of C'anada, as the basis of an agreement for Union : 7. That, aflcr full discussion between the Delegates of British Columbia anu *^he • No. 10. '•A 40 Committee of the Privy Council, it was mutually agreed that the said terms should be materially modified; and other Terms, hereinafter called the "Accepted Terms," (Appendix C), were substituted for those proposed; and such "Accepted Terms" commonly known as the "Terms of Union," now form the basis of Union between British Columbia and the Dominion : 8. That the main difference between the " Proposed Terms " and the " Accepted Terms" consists in the substitution and insertion of Article 11 in the "Accepted Terms " for Article 8 of the " Proposed Terms," which Articles arc herewith submitted : — Article 8 of " Proposed Terms." "8. Inasmuch as no real union can subsist between this Colony and Canada without the speedy establishment of com- munication across the Rocky Mountains by coach road and railway, the Dominion shall, within three years from (ho date of Union, construct and open for traffic such coach road from some point on the line of the main trunk road of this Colony to Fort Garry, of similar character to the said main trunk road, and shall further engage to use all means in her power to complete such railway communication at the earliest practicable date ; and that surveys to deter- mine the proper line of such railway shall be at once commenced ; and that a simi of not less than 1,000,000 dollars shall be ex- pended in every year, from and after three years from the date of Union, in actually constructing the initial sections of sucli rail- way from the seaboard of Britisli Columbia, to connect with the railway system of Canada." Article 11 of" Accepted Terms." "11. The Government of the Dominion undertake to secure the commencement simultaneously, within two years Irom the date of Union, of the construction ot" a rail- way from the Pacific towards the Rocky Mountains, and from sucli point as may be selected, east of the Rocky Mountains, towards the Pacific, to connect the seaboard of British Columbia with the railway system of Canada ; and further, to secure the completion of such railway within ten years from tlie date of the Union. " And the Government of British Colum- bia agree to convey to the Dominion Government in trust, to be appropriated in such a manner as the Dominion Govern- ment may deem advisable in furtherance of the construction of the said railway, a similar extent of public lauds along the line of railway throughoiit its entire length in British Columbia, not to exceed, however, twenty miles on cacli side of said line, as may be appropriated for the same purpose by the Dominion Government from tlic public lands in the North- West Territories and the Province of Manitoba. Provided, that the quantity of land wliich may be held under pre-emption right or by Crown grant within the limits of the tract of land in British Columbia to be so conveyed to llie Dominion Government shall be made good to the Dominion from contiguous public lands ; and provided, further, that until the commencement, within two years, af aforesaid, from the date of the ITnion of tiic construction of the said railway, the Government cf British Columbia shall not sell or alienate any further portions of the public lands of British Columbia in any other way than luider right of pre-emption requiring actual residence of the prc-emptor on the land claimed by him. In considera- tion of the land to be so conveyed in aid of the construction of the said railway the Dominion Government agree to pay to British Columbia, from the date of the Union, the sum of 100,000 dollars per annum, in half-yeaily payments in advance." 9. That this substitution, affording assurance oi speedii railwai/ communication with the Eastern Provinces, was niade to secure the acceptance of Confederation by the people of British Columbia : c i ■n 41 10. That, it liaving been decided that the people of British Columbia should be directly consulted before the " Accepted Terms " became law, Your Majesty, in pursuance of the provisions of the "British Columbia Government Act, 1870," was graciously pleased, by an Order in Council of the 9th day of August, 1870, to so reconstitute the Legislative Council as to allow tiie electoral districts throughout the country to return a majority of members thereto : 11. That, under the new constitution of the Council, writs were issued for the election • of members to serve therein, and the said " Accepted Terms " were duly submitted to the people for their consideration ; and at the subsequent elections held to decide the question of Union, the provisions of Article 11 of the Terms of Union formed the main inducement to Britisli Columbia to agree to enter into Confederation, and members wore returned to support the adoption thereof: 12. That such "Accepted Terms" were, on the 23rd day of January, 1871, unanimously agreed to by the Legislative Council ; and an humble Address to Your Majesty was at tlie same time passed, praying that Your Majesty in Council would be graciously pleased " to admit British Columbia into the Union or Dominion of C'anada, on the basis of the terms and conditions ottered to tliis Colony by the Government of the Dominion of Canada, which terms and conditions are those herein referred to as the "Accepted Terms :" 13. That similar Addresses to your Majesty on the same subject were passed by the Parliament of Canada, under the provisions of tlie 1 46th section of tlie " British North America Act, 1867 :" 14. That, on the 16th d the increase of impulation, when sucli may be shown, until the population amounts to 400,000, at which rate such grant shall thercatler remain. 4. Tlic Dominion shall guarantee interest at the rate of 5 per cent, per annum on such sum, not. exceeding 100,000/., as may be required for the construction of a first class graving dock at Esquinialt. 5. In addition to tlio otlicr provisions of this resolution, Canada shall assume and defray the charges of the following serTicps : — a. Salary and allowances of the Lieu- tenant-Governor ; h. Salaries and allowances of the .Judges and Officers of the Supreme Court and of County Courts ; c. The charges in respect of the Depart- ment of Cnstoms ; d. The Postal Department ; e. Lightliouses, buoys, beacons, and liglitsliip, and such further cliarges as may be incident to and connected with tlie services which, by the "BritLsli North American Act, 1807," appertain to tlie General Government, and as fi.'r' or may be allowed to the other Pro\inces. 6. Suitable pensions, such as shall be approved of by Her Majesty's Government, shall be provided by tlic Government of the Dominion for those of Her Majesty's servants in the Colony, whose position and emoluments derived tlierefrom would be affected by political clianges on the admis- sion of tliis Colony into the Dominion of Canada. 7. The Dominion Government shall supply an efficient and regular fortnightly steam communication between Victoria and San Francisco by steamers adapted and yearly in advance, such grants of 80 c. per head to be augmentiul in proportion to the increase of population, as may be siiown by each subsequent decennial census, until the i)opulation amounis to 100,000, at which rate such grant shall thereafter remain, it being understood that the first census be taken in tlie year 18H1. 4. The Dominion will provide an effi- cient mail service, fortniglitly, by steam communication bet^voen Victoria and San Francisco, and twic(; a \veek between Victoria and Olympia ; the v(;ssels to be adapted tor the conveyance of freight and passengers. 5. Canada will assume and defray the charges for the following services : — It, Salary of the Lieutenant-Governor , b. Salaries and allowances of the Judges of the Superior Courts and the County or District Courts ; ('. Tlie charges in respect to the Depart- ment of Customs ; d. The postal and telegraphic services ■ e. Protection and encouragement fisheries ; /. Provision for the Militia ij. Lightliouses, buoys, and beacons, shipwrecked crew.'?, cpiarantine and marine hospitals, including a marine hospital at Victoria ; /r. Tiic geological survey ; i. The Penitentiary ; And such further charges as may be inci- dent to and connected with the services wliich, by the "Hritish Nortlx America Act of 18(57," appertain to the General Government, and as are or may be allowed to the other Provinces. (i. Suitable pensions, such as shall be approved of by Her Majesty's Government, shall be provided by the Government of tile Dominion for those of Her Majesty's servants in the Colony whose position and emoluments derived therefrom would be affected by political changes on the admis- sion of British Columbia in the Dominion of Canada. 7. It is agreed tliat the existing Customs Tariff and Excise Duties shall continue in force in British Columbia until the railway from the Pacific Coast and the system of mjgm^m m a m t m i mmmmwm 47 'Proposed Tervis," givin;>; facilities tor the pas'M.'ngcrs and cargo. cunvcvance of 8. Inasmuch as no real Union can sub- sist between this Colony and Canada without the speedy establishment of com- munication across the Rocky Mountains by coach road and railway, the Dominion shall, within three years from the date of Union, construct and open for traffic such coacli road from some point on the line of the Main Trunk Road of this Colony to Fort Garry, of similar character to fhe said Main Trunk Road ; and shall further engagfe to use all means in her power to complete such railway conununication at thcearlicst practicable date, and thatsurveys to determine the proper line for sucli rail- way shall be at once commenced ; and that a sum of not less than 1,000,000 dollars shall be expended in every year, from and after three years from the date of the Union, in actually constructinj^- the initial sections of such railway from the seaboard of British Columbia, to connect with the railway system of Canada. 9. The Dominion shall erect and main- tain at Victoria, a marine hospital, and a lunatic asylum, cither attached to the hospital or separate as may be considered most convenient. The Dominion shall also erect and main- tain a Penitentiary, or other principal prison, at such place in the Colony as she may consider most suitable for that purpose. 10. Efficient coast mail steam service in connection with the Post Office, shall be established and maintained by the Govern- ment of the Dominion, between Victoria " Accepted Terms" railways in Canada are connected, unless tlie Legislature of British Cohimbia should sooner decide to accept tiie Tariff and Excise laws of Canada. When Customs and Excise duties arc, at the time of the Union of Britisii Columbia with Canada, leviable on any {;()0(ls, wares, or merchan- dizes in Britisii Cohunbia, or in the other Provinces of the Dominion, those goods, wares, or merciiandi/.es may, Irom and after tlie Union, be imported into Britisii Columbia from the Provinces now com- posing tlie Dominion, or from either of those Provinces into British Columbia, on l)roof of payment of the Customs or Excise duties leviable thereon in the Province of exportation, and on i)aymeut of such further amoimt (if any) of Customs or Excise duties as are leviable thereon in the Province of importation. This arrange- ment to have no force or eflect afler the assimilation of the Tariff and Excise duties of Lritish Columbia with those of the Dominion. 8. Hriiish Columbia shall be entitled to be n |iiTsented in the Senate by three memljurs, and by six members in the House of Commons. The representation to be increased under tlie provisions of the " Britisii North America Act, 1867." 9. The influence of the Dominion Govern- ment will be used to secure the continued maintenance of the naval station at Esqui- mau. 10. The provisions of the "British North America Act, 1867," shall (except those parts thereof which arc in terms made, or by reasonable intendment may be held to 48 "Proposed Terms' and New Westminster, Nauaimo, and such other places as may require such services. 1 1 . Whatever encouragement, advan- tages, and protection arc adbrded by tlie Dominion Government to the fisheries of any of its Provinces, sliall be extended in similar proportion to British Cohimbia, according to its requirements for tlie time being. Accepted Terms." 12. Brilisii Columbia shall participate, ill fair i)roportion, in any measures which be specially applicable to and only affect one, and not the whole, of the Provinces now comprising the Dominion, and except so far as may be varied by this Minute) be applicable to British Columbia, in the same way and to the like extent as they apply to the other provinces of the Dominion, and as if the Colony of British Colunib a had been one of the Provinces originally united by the said Act. 11. The Government of the Dominion undertake to secure tlic commencement simultaneously, within two years from the date of Union, of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected, east of the Rocky Mountains, towards the Pacific, to connect the sea- board of British Columbia with the railway system of Canada ; and further to secure the completion of such railway within ten years from the date of the Union. And the Government of British Columbia agree to convey to the Dominion Govern- ment, in trust, to be appropriated in sucli manner as the Dominion Government may deem advisable in furtherance of the con- struction of the said railway, a similar extent of public lands along the line of railway throughout its entire length in British Columbia, not to exceed, however, twenty miles on each side of the said line, as may be appropriated for the same purpose by the Dominion Government from the public lands in the north-west territories and the Province of Manitoba. Provided, that tlie quantity of land whicii may be held under the pre-emption right or by Crown grant within the limits of the tract of land in British Columbia to be so conveyed to the Dominion Government shall be made good to the Dominion from contiguous public lands; and provided further, tliat until tlie conunenccment, within two years, as aforesaid, from tlie date of the Union, of the construction of the Slid railway, the Government of British Columbia shall not sell or alienate any further portions of the public lands of British Columbia in any other way tliau under right of pre - emptlon, requiruig actual residence of the pre-emptor on the land claimed by him. In consideration of the land to be so conveyed in aid of the construction of tlie said railway, tho Dominion Government agree to pay to British Columbia from tlie date of the Union, the sum of 10(),0(J0 dollars per annum, in half-yearly payments in advance. 12. The Dominion Government shall guarantee interest for ten years from the "■"""■IPPMiMlli 49 " Proposed Terms." may be adopted, and funds which may be appropriated by the Dominion for the encouragement of imigration. 13. British Columbia shall be entitled to be represented in the Senate by four Mem- bers, and by eight Members in the House of Commons, until the year 18 , and thereafter the Representations in the Sen.^te and the House ot Commons shall be in- creased, subject to tl»e provisions of the " British North America Act, 1867." 14. The Union shall take effect on such day as Her Majestj by Order in Council (on an Address to that effect, in terms of the 146th Section of the "British North America Act, 1867,") may direct; and British Columbia may, in such Address, specify the districts, counties, or divisions, if any, for which any of the four Senators to whom the Colony shall be entitled shall be named— the electoral dislricls for wliich — and the time within which the first election of Members to serve in the House of Commons shall take place. 15. The Constitution of the Executive authority and of the Legislatui-e of British Columbia shall, subject to the provisions of the"BruiBh North American Act, 1867," [107] "Accepted Terms." date of the completion of the works, at the rate of 5 per cent, per anniun, on such sum, not exceeding 100,000/. sterling as may be required for the construction of a first-class graving dock at Esquimalt. 13. The cliarge of the Indians, and the trusteeship and management of tlie lands reserved for their use and benefit, shall be assumed by the Dominion Government, and a policy as liberal as that hitherto pursued by the Britisli Columbia Govern- ment sliall be continued by the Dominion Government after the Union. To carry out such policy, tracts of land of such extent as it has iiitherto been the practice of the British Columbia Govern- ment to appropriate for that purpose, sliall from time to time be conveyed by the Local Government to the Dominion Government, in trust, for the use and l)cnefit of the Indians on application of the Dominion Government ; and in case of disagreement between tlic two Governments • r specting the quantity of such tracts of land to be so granted, tlic matter sliall be referred for the decision of the Secretary of State for the Colonies. 14. The constitution of the Executive authority and of the Legislature of British Columbia shall, subject to tliepro\iaions of the "Britisli North America Act, l-^G?," continue as existing at the time of the Union until altered under the authority of the said Act, it bein"- at the same time understood that the Government of the Dominion will readily consent to the intro- duction of responsible (lovernment when desired by the inhabitants of British Columbia, and it ])mvj; likewise; under- stood that it is the intention of the Governor of British Columbia, under the authority of the Secretary of State for the Colonies, to amend the existing constitution of the. Legislature by providin;;' that ii majority of its members shall be elective. The Unioi' r hall t;ike ellect aecordin;^- to the tbregoin'v terms and conditions on such day m Him jMajesty liy and with the advice of" Her Most ilonourabie l'ri\y (Council may appoint (on addresses from tlic L('i;is- lature of the Colony of ih-ilish Columbia and of the 1 loupes of Parliament of Canada, in the terms of tiie Nfith section of llu; "British North America Act, 18(17"), and Britisli Columhia may in its address specify the electoral districts for which the iirst election of nuMnhers to serve in the I louse of Commons shall rake place. iM H 60 " Proposed Terms' continue as existing nX the time of Union until altered under the authority of the said Act. 16. The provisions in the '• British North American Act, 1867," shall (except those parts thereof which are in terms made, or by reasonable intendment may be held to be specially applicable to and only effect one and not tlie whole of the Provinces now comprising the Dominion, ami except so tar as the same may be varied by this resolution) be applicable to British Columbia in the same way and to the lii[' tli'c Legish\lurc of the Colony of British Columbia, to arimit tliat Colony into llie said Union on such terms and conditions as sliouUl bt in the Addresses expressed, and as the Qnceu sliould tliiniv lit lo approve, subject to the provisions of the said Act: and it was furtlier enacted that tlie iirovisions of any Order in Council in iliat belialf should have f'irL'(,1 as if they liad been enacted by the Parliament of the United Kingdom of Great Britain and Ireland : And whereas by Addrcsesfrom the Houses of the Parliament of Canada and from the Le^ishuive Council of British Columbia respectively, of whicli Addnsses copies are contained in the Schedule to tins Order annixcd. Her Majesty was prayed, bv and witii the advice of llcr Most Honouraldc Privy Council, under tl;o one hundred and forty- six srclioii of ihc hi'n'inl)cfi)re recited Act, to admit Britisl\ Colnmbia into tiie Dominion of Canada, on tiu; terms and cc^ndilions set tbrth in the said Addresses : And wliereas Her Majesty has tiinught lit to approve of the said terms and con- ditions; if. is hereby onlercd and decliired by Her Majesty, by and witli the advice of Her Privy Council, in pursuance and exercise of the powers vostci' in Her Majesty by tlie said Act of Pariianuiit, that from and after the twentieth duy ot' July, one thousand eight hundred and seventy-one, llie said Colony of British Columbia shall be admitted 51 into and become part of the Dominion of Canada, upon the terms and conditions set forth in tlie hereinbefore recited Addresses: And, in accordance witli tlie terms of tlio said Addresses relating to the Electoral Districts in British Columbia, for which the first election of members to serve in the House of Commons of the said Dominion sliall take place, it is hereby further ordered and declared that such electorial districts shall be as follows : — ' • • • • « And the Right Honorable Earl of Kimberley, one of Her Majesty's Principal Secre- taries of State, ir to give the necessary directions herein accordingly. (Signed) ARTHUR HELPS (E.) The Secretary of State to the Lieutennpt-Govenwr. Sir, Ottawa, June 10, 1873, I HAVE the honour to inclose, for the information of your Government, a copy of an Order of his Excellency the Governor-General in Council, fixing Esquimalt, in Vancouver Island, as the terminus of the Canadian Pacific Railway, and further decidinj^ that a line of railway be located between tlie Harbour of EbquiniaU and Snvmour Narrows on the said Island. I have further the honour to apply to you to bring the subject under the notice of your Government, witii a view to the conveyance, in tlie manner and for llic luirposes stated in the said Order, of a strip of land twenty miles in width, alon^ the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt. I have, &c. (Signed) E. A. MEREDITH, Under- Secretanj of Stair. (F.) Copy of a Report of a Committee of the Honourable the Prii-y Council, approved by hit Excellency the Governor-General in Council, nn the 1th June, 187(5. THE Committee of Council having had before i iin llie Memorandum of tlic 29tli May last, from the Chief Engineer of the Canadian Padtic Riiihvay, ^md tlio Minnie of Council thereupon of the 30th May, beg leave to recoihuiciid to \our Excelioncy lliat Esquimalt, in Vancouver Island, bo fixed as the terminus of the ^ aiiadiau l^icilic l^.ail- way ; and that a lino of railway bo located between the Uarljour < l" Esciulmait lul Seymour Narrows, on the said Island. The Committee further recommend tliat application immediafely be uuide liy despatch to the Lieutenant-Governor of British Columbia for (lie convoyancc to the Dominion Government in trust, according to the 1 1th paragrapli of tlie Terms m Akito- ment of Union, of a strip of land twenty miles in width, along (he eastern coa - of Van- couver Island, between Seymoiu- Narrows and (he Harbour of Esquimalt. An order of the Lieutenant-Governor of British Columbia in Council appi'opriating this tract of land in furtherance of the construction of i\w said railway will be necessai v, in order to operate as a sufficient conveyance and reservation of the said land (o an 1 tor the Dominica Government. Certified, (Signed) W. A. HIMSWORTH, Clerk, Privy Council. (G.) Copy of a Report approved by hix Excellency the Lieutenant-Governor in Council, on the 2!jth July, 1873. THE Committee of Council have had under consideration a Memorandum of the 23rd July, 1873, from the Honourable the Attomev-General, reporting upon a despatch H 2 58 dated the 10th June last, from the Honourable the Secretary of State for the Provinces to your Excellency, covering an Order of the Honourable the Privy Council of Canada, of the 7th of the same month, which states that the Privy Council had decided as follows : — " That Esquimau in Vancouver Island be fixed as the terminus of the Canadian Pacific Railway, and that a line of railway bo located between the Harbour of Gsquimalt and Seymour Narrows on the said Island." In pursuance of this decision your Excellency is reqiiested to convey by Order in Council "to the Dominion Government in trust, according to the 11th paragraph of the Terms of the Agreement of Union, a strip of land twenty miles in width along the eastern coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimau." Upon the despatcli and Order in Council the Honourable the Attorney-General reports as follows : — " The Agreement of Union is embodied in a Statute. Its language must, therefore, be measured by the ordinary and well-known rules of interpretation as applied to Statutes. The language must not be construed too narrowly, but a faur and liberal construction, and one in accordance with the spirit and true meaning of the Agreement, should be placed upon the wording of the ' Terms.' Allowing, however, the greatest latitude of interpretation, and applying the broadest and most liberal construction to the 1 1 til section of tlie Agreement, nothing appears which would seem to warrant the Domi- nion Government in claiming, or justify your Excellency in granting, a conveyance of tlie twenty-mile belt of land mentioned, until the line of railway be defined. "It is admitted that the Dominion Government is entitled to the greatest considera- tion for the energy it has liitlierto displayed in its desire to faithfully carry out the railway provisions contained in tlic Agreement. " Hence the Government of this Province, holding these views and anxious to render all th.T assistance in its power to the Dominion Government, assumed the respon- sibility of reserving the belt of land mentioned almost immediately after the receipt of the despatch whicli is the subject of this Report. It was, however, expressly understood that the Order in Council creating the reserve should not operate as a conveyance of the latids within its limits, and tliat the reserve itself should not be of a permanent character. " The 1 1th section of tlie Terms of Union reads as follows : — " ' The Government of the Dominion undertake to secure the commencement . , . within two years from the date of the Union, of the construction of a railway from the Pacific towards the Rocky Mountains,' thence eastward, &c. " ' The Government of British Columbia agree to convey to the Dominion Govern- ment in trust, to ho appropriated in such manner as the Dominion Government may deem advisable, in furtherance of the construction of the said railway, an extent of public lands alontj the line of railway throughout its entire length in British Columbia, not to exceed, however, twenty miles on each side of said line .... and provided further that until the commencement, witliin two years as aforesaid from the date of the Union, of the construction of the said railway, the Government of British Columbia shall not sell or alienate any farther portion of tlie public lands of British Columbia in any other way than under right of pre-emption requiring actual residence of the pre-emptor on the land claimed by him.' " lJii(l(>r this agreement the Dominion Government undertook to secure the com- mencement of 'the construction of a railway from the Pacific' eastward on the 20th July, 1873, and the Province in c^n^i'ieration thereof agreed to convey to the Dominion Government ' in furtherance '"•t the consimction of the said railway,^ certain ' public lands along the line of railway, not exceeding in extent twenty miles 'on each side of said line.' " As far as the Government of this Province has been informed, no line of railway has been surveyed between Esquimalt and Seymour Narrows. A conveyance cannot, therefore, be made of public lands * along a line of railway ' and ' on each side of said line,' where no such ' line of railway ' exists. The demand made is for a conveyance of ' a strip of land ' twenty miles in width along the ' eastern coast of Vancouver Island,' or, in otiier words, in the absence of a survey, for a strip of the public lands along the sea coasf, but not along any defined line of railwav. " It is respectfully submitted that had a ' line of railway ' been defined by a location survey, the (lovcrnment of this Province would have been notified thereof, and the languasre of the despatch and of tlie Order of the Privy Council would have been materially different from that used in the present instance. Instead of asking for a conveyance of land along a sea coast, a demand would have been made for a conveyance of . certain lands 'along a line of railway' adopted and laid oqt aonx^rdipg to au acgooi- 58 panying plan ; such a demand, it is humbly conceived, would have been in accordance with the spirit and language of the 11th section. "The term of two years mentioned in the first and second paragraphs of the section was inserted by the franiers of the terms as a period ami)ly sufficient to enable the Dominion Government to complete the preliminary surveys necessary to determine the * line of railway,* and the Provincial Government agreed to withdraw all its public lands from sale for the like period in order that the first opportunity should be afforded to the Dominion Government of acquiring within the two years and before the work of construction should commence, the land contiguous to its line of railway, as defined from time to time. •• The two years have expired, and as the claim for the reserve mentioned is not established, it becomes the duty of the Government of British Columbia, in the interests of the Province, to respectfully press upon the Dominion Government the necessity of some immediate action being taken to render the valuable belt of land containing an area of some 3,500 square miles of service to the Province. " The iindersigned therefore suggests that, as no line of railway has been defined, your Excellency be respectfully recommended, for the above reasons, to withhold the conveyance to the Dominion Government of the land mentioned in the despatch ; and that the reserve of the said land be continued until a fair opportunity shall have been afforded to the Dominion Government to consider the subject and inform the Govern- ment of this Province of its views thereon." The Committee concur in the above Report of the Attorney-General, and submit the same for your Excellency's approval, and if sanctioned, they suggest that a copy of this Order in Council be transmitted to his Excellency the Governor-General. Certified, (Signed) W. J. ARMSTRONG, Clerk, Executive Council, of (H.) The Lieutenant-Oovemor to the Secretary of State for Canada. Sir, Oovemment House, July 26, 1873. I HAVE the honour to state that the Under Secretary of State for the Provinces' despatch of the 10th ultimo, and the cojiy therewith inclosed of an Order of his Excellency the Governor-General in Council, fixing Esquimalt, on Vancouver Island, as the terminus for the Canadian Pacific Railway, and furtlier deciding that a line of railway be located between Esquimalt Harbour and Seymour Narrows, was duly received and submitted by me for consideration in my Executive Council, and that the strip of land twenty miles in width, along the eastern coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt, specified in the said Order in Council, was accordingly reserved on the 1 st July instant, under the powers and provisions of the 42nd section of the Land Ordinance of 1870 of British Columbia, and notice of such reservation duly pubhshed in thi " Government Gazette," as appears in the copy thereof herewith inclosed. With further reference to the Under Secretary of the Provinces' despatch, I have also the honour to inclose herewith, and to request that you will lay before his Excellency the Governor-General, a Minute of my Executive Council conveying the conclusion of this Government that it is not advisable to make, at present, the conveyance applied for in the said despatch and accompanying Order in Council of the land therein specified, and now held under reservation, and setting forth the grounds upon which that con- clusion is based. I have, &c. (Signed) JOSEPH W. TRUTCH. (J.) Secretary of Slate to the Lieutenant-Governor. Sir, Ottawa, August 26, ]873. I HAVE the honour to h^!:nowlcdge the receipt of your despatch of the 20tb ultimo, reforring to the Order of his Excellency the Governor-General in Council, S4 communicated to yon on the 10th of Jane last, applying for the conveyance to the Dominion Government of a strip of land twenty miles in width along the eastern coast of Vanconver Island, between Seymour Narrows and the Harbour of Esquimalt, and inclosing a copy of a Minute of jrour Executive Council on the subject of the said application. Your despatch and its incit'^ures will be laid before his Exeellency the Governor General in Council. I n&vc &LC (Signed) ' E. J. LANGEVIN, Under-Secretary of State. (K.) Copy of a Report of a Committee of the Honourable the Executive Council, approved by Aw Excellency the Lieutenant-Governor, on the SOth day of June, 1873. ON a Memorandum dated SOth June, 1873, from the Honourable the Attorney- General, recommending that, for the present, a bare reservation of the twenty-mile belt, lying between Esquimalt Harbour and Seymour Narrows, b<; made, to protect the Government of the Dominion, until the question raised by the Order in Council of the Privy Council of Canada, dated the 7th instant, with its covering despatch on the subject, of the 10th instant, be more fully discussed and determined ; and that the conveyance, in trust, of the said land asked for by the Ottawa Government bo for the present deferred, and that the inclosed notice of reservation be adopted, and published in a Gazette Extraordinary. Certified, (Signed) W. J. ARMSTRONG, Clerk of the Executive Council. (L.) Notice. WHEREAS by an Order in Council dated the 7th day of June, 1873, of the Honourable the Privy Council of Canada, it has been decided " that Esquimalt, in Vancouver Island, be fixed as the terminus of the Canadian Pacific Railway, and that a line of railway be located between the harbour of Esquimalt and Seymour Narrows, on the said island;" and whereas, in accordance with the terms of the said Order in Council, application lias been made to his Excellency " the Lieutenant-Governor of British Columbia for a reservation, and for the conveyance to the Dominion Government, in trnst, according to the llth paragraph of the terms of the Agreement of Union, of a strip of laud twenty miles in width, along the eastern coast of Vancouver Island, between Se/mour Narrows and the Harbour of Esquimalt, in furtherance of the construction of the said railway : " And whereas it has been deemed advisable that the land, within the limits aforesaid, should be reserved, prior to any conveyance aforesaid being made thereof: Public notice is therefore hereby given, that from and after this date, a strip of land twenty miles in width, along the eastern coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt, is hereby reserved. By command, (Signed) JOHN ASH, Provincial Secretary. Provincial Secretary's Office, July 1, 1873. (M.) The Secretary of State to the Lieutenant-Governor. Department of the Secretary of State for Canada, Ottawa, Sir, ^ September W, 1873 . I HAVE the honour to transmit to you herewith, for the information of your Govomment, a copy of an Order of his Excbliency tho Govomor-General in C«luncil> State. 55 on yonr despatch of the 26th July last, inclosing a Minute of your Executive Council, conveying their conclusion that it is not advisable to make at present the conveyance applied for in the letter to yon of the 10th of June last. I have, &c. (Signed) J. C. AlKINS, Secretary of State for Canada. (N.) Copy of a Report of the Committee of the Honourable the Privy Council, approved by his Excellency the Governor-General in Council, on the 3rd September, 1873. THE Committee of the Privy Council have had under consideration a despatch from the Lieutenant-Governor of British Columbia, of the 26th July, 1873, inclosing a Minute of his Executive Council, conveying the conclusion of the Government of British . Columbia, that it is not advisable to make at present the conveyance applied for in a despatch of the Under-Secretary of State for the Provinces of the 10th of June. The Committee of the Privy Council have read witli great attention the Report of the Executive Council of British Columbia, inclosed in tlie Lieutenant-Governor's despatch, and beg to submit tliat, so long as the land wliicli is referred to is not alienated from the Crown, but held under reservation, as stated in tlie Lieutenant-Governor's despatch, the object of the Government of the Dominion will be obtained, that object being simply that wlien the railway shall come to be constructed, the land in question shall be at the disposition of the Government of the Dominion, for the purposes laid down in the 11th section of the Terms of Union with British Columbia. Certified, ^Signed) W. A. HIMSWORTH, Clerk, Executive Council, (O.) The Lieutenant-Governor to the Secretary of Slate. Sir, Government House, Sevtember 22, 1873. WITH reference to my despatcli of the 2Gth July last, I live the honour to inclose, for the information of his Excellency tlio Governor-Gencr.i. a Minute of my Executive Council, urging that the boundaries of tlio land on Vancouver Island, proposed to be claimed by tlie Government of the Dominion in trust, to aid the construction of tlic railroad, under 'the Terms of Union of British Columbia with Canada, may be at once defined, and that a competent person in this Province may bo appointed to dispose of said lands, on such terms as will admit of settlement, and authorizing tlie Honourable A. De-Cosmos, President of the Executive Council and Premier of my IMinistry, to confer with the Government of Canada on this subject. A duplicate of this despatch and inclosure will bo handed to you by Mr. De-Cosmos, who starts to-morrow for Ottawa. I have, &c. (Signed) JOSEPH W. TRUTCH. (P) Copy of a Report of a Committee of the Honourable (he Excculivo Council, approved by his Excellency the Lieutenant-Governor on the 20th day of September, 1873. ON a Memorandum, dated 18th September, 187.3, from the Honour;ibl(> Chief Commissioner of Lauds and Works, reporting that the Order in Council of the 30th June, 1873, reserving Crown lands of the east coast, of Vancouver Islaml, is sorioiislv rotarding the settlement of that portion of the Province ; and recommending,- that, in view of the fact that the despatch from his Excellencv the Lieutenant-Governor to the Secretary of State, transmitting the Minute of this Executive Council. da*:('d 25lli Jidy, 1873, upon the subject of this reservation, has not as yet been replied to, and as the matter re(juires immediate settlement, that the Dominion Government be respectfully urged to at once 56 define, by survey, the land they propose claiming on the east coast of Vancouver Island ; and that they appoint also a competent person in this province to dispose of said lands on such terms as will admit of settlement ; and that the Honourable Amor De-Cosmos, as Special Delegate, about to proceed to Ottawa, be authorized to confer with the Dominion Government upon the subject. Certified, (Signed) W. J. ARMSTRONG, Clerk, Executive Council. (Q.) The Secretary of Stale to the Lieutenant-Governor. Sir, Ottawa, October 8, 1873. I HAVE the honour to acknowledge the receipt of your despatch of the 22nd ultimo, on the subject of tlie occupation of lands reserved by the Dominion Gov9rnment, and to state that the same will receive due consideration. I have, &c. (Signed) EDWARD J. LANGEVIN, Under- Secretary of State. (R.) Copy of an Order in Council of this Province, dated July 25, 1873. THE Committee of Council have had under consideration the non-fulfilment by the Dominion Government of the 1 1th section of the Terms of Union, The Committee regret that the construction of the railway has not been commenced, and therefore strongly protest against the breach by the Dominion Government of a condition of the terms so liighly important to the Province. The Committee recommend the above for the approval of your Excellency, and, if sanctioned, respectfully request that a copy thereof be at once forwarded to the Dominion Government. Certified, (Signed) W. J. ARMSTRONG, Clerk, Executive Council, (S.) The Lieutenant-Governor to the Secretary of State, Sir, Government House, July 26, 1873. I HAVE the honour to inclose, at the request of my Ministers, for submission to His Excellency tlie Governor-General, a Minute of my Executive Council, representing the non-fulfilment by the Dominion of the lith Section of the terms of Union of tiritish Columbia with Canada, expressing regret that the railway has not been commenced, and strongly protesting against the breach of a condition of the terms soj highly important to this Province. I have, &c. (Signed) JOSEPH W. TRUTCH. (T.) Secretary of State to the Lieutenant-Governor. Sir, Ottawa, August 23, 1873. I HAVE the honour to aclcnowledgo tlie receipt of your despatch 26t!i ultimo, covering a copy of a Minute of your Executive Council, complaining of the non-fulfilment by the Dominion Government, of the 11th Section of the terms of Union British Columbia with Canada. 57 Your despatch and its iuclosurcs will be at once laid before His Flxcullency the Governor-General in Council. I have, &c. (Signed) E. J. LANGEVIN, Under-Secretary of State, - ■ (U.) The Lieutenant-Governor to the Secretary of State. Sir. Government House, November 24, 1873. I HAVE the honour to inclose a further Minute of my Executive Council, referring to the non-fulfilment by the Dominion Government of the 11th Article of the terms of Union of this Province with Canada. In accordance with the advice of my Ministers, expressed in this Minute, I beg you to be pleased to lay before his Excellency the Governor-General, and to be good enough to bring to his Excellency's attention the previous Minutes of my Executive Council on the same subject, which were forwarded for his consideration in my despatches of the 26th July last, the latter of which conveying a protest from this Government on the failure of the Dominion Government to secure the commencement, within two years from the date of Union, of the construction of a railroad from the Pacific towards the Rocky Mountains, as provided in the 11th Ai-ticle of tlic terms of Union, is yet unanswered ; and to move his Excellency to comnuuiicate to tliis Government, in what- ever manner he may deem sidvisable, in time to meet the requirement of the desire indicated by my Ministers, the course intended to be taken by the Dominion in fulfilment of the 11th Article of the terms of Union of this Province with Canada. I have, &c. (Signed) JOSEPH W. TRUTCH. (V.) Copy of a Report of a Committee of the Honourable the Executive Council, approved by His Excellency the Lieutenant-Governor, on 22nd day of November, 1873. THE Committee of Council having had under consideration a Memorandum from the Honourable the Provincial Secretary, dated 19th November, 1873, setting f'ortii tlie acts — That the Government of British Columbia has protested against the non-fulfilment by the Dominion Government of the 11th Article of the Terms of Union : That beyond the acknowledgment of the receipt, no reply has been made In tlio Dominion Government to the dispatch conveying the protest : That the Government of British Columbia looking at the actual condition of affairs felt compelled to await the action of the Parliament of Canada, expected sliortly to meet, and which did meet at Ottawa on the 23rd of October last past : That the Parliament of Canada has been prorogued not to meet until Fcbinnrv next, without making provision for the construction of the Pacilic Railway : That the Legislative Assembly of the Province stands called to meet at Nirldi-iii on the 18th day of December next : and That the non-fulfilment by the Dominion Government of the Terms of Union has caused a strong feeling of anxiety and discouragement to exist tlirougliont the Province. The Committee advise your honour to ask the Dominion Government throiigii the proper channel, for a decided expression of its policy with regard to the fullilment of the 11th Article of the terms of Union, in order that the infin-niation may he given to tiie Legislature at the opening of the coming Session. And they request that the decision arrived at be communicated to yoiu* hcmonr by telegram at the earliest moment possible ; and the Committee respectifuUy suggest, that if the present Report bo sanctioned, your honour will be pleased to forward the same to His Excellency thq Governor-General ; and also to draw his attention to the Minutes of Council, each bearing date the 25th day of July last, on the same subject, one being a protest against the breach of Article 11, and the other a denial of the right of the [107J I 88 Dominion Government to a conveyance or reserve of any of the pablic lands for railway purposes until the line of railway should be defined. (Certified) W. J. ARMSTRONG, Clerk, Executive Council, fi (W.) Telegram. The lion. G. A. Walkem, Ottawa, December 22, 1873. (.1. • Tlic Uoniinion Government scheme for the construction of Pacific Railway was outlined in my speech at Saruia, Ontario, on the 2oth November, whicli you have no doubt seen. W'c arc giving earnest consideration to the details of the scheme, which we belive will be acceptable to the whole of the Dominion including British Columbia. We hope to communicate witli you shortly, probably, by special agent. I will telegraph you again in a week or so. (Signed) A. MACKENZIE. (X.) Extract from Journals of Legislative Assembly. Monday, February 9, 1874. ON the motion of the Honourable Mr. Beaven, seconded by Mr. Duck, it was resolvi d : — Tliat wlioreas, on the 20(li July, 1871, the Colony of British Columbia was united to and became part of the Dominion of Canada, in accordance with certain terms ; and wliercas:, by Section 11 of the s:iid terms, tlic Government of the Dominion imder- took to secure the eonuneucement, simultaneously, within two years from the date of Union, of the construction of a railway from the Pacilic towards the Rocky Mountains, and from sucli point as may be selected east of tlie Rocky Mountains towards tlie Pacilic : and wlieveas, tlie two years therein referred to expired on the 20t]i .Inly last, and the construction of tlic said railway was not then, and has not since, been commenced, cau;:;ing' tliereby serious loss and injury to the people of this Province : lie it, therefore. Resolved:— That an humble address be presented to his honour the Lieutenant-Governor, respectfully requesting him to protest, on behalf of the Legislature and people of this Province, against the infraction of this most important clause of the terms of Union, and to impress upon tiie present Administration in Canada the absolute necessity of com- mencing the actual construction of the railway from the seaboard of British Columbia early in the present year. (Y.) The Lieutenant-Governor to the Secretary of State. Sir, Victoria, February 25, 1874. I HAVH the honour to inclose hercwitli, a copy of an address to me from the Legislative Assembly of this Province, requesting me to protest on behalf of the Legis- lature and people of British Columbia, against the infraction of the 1 1th Article of the 'J'eniis of Union of Britisli Columbia with Canada, by which the Dominion undertook to secure the commencement, simultaneously, within two yeE^r."* from the date of Union of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may be selected east of the Rocky Mountains towards the Pacific to con- iKct tlie seaboard of Britisli Columbia with the railway system of Canada, and to urge tlie absolute necessity for the commencement of the actual construction of such railwav I'lom the seaboard of British Columbia, early in the pn.'sent year. 1 also inclose a Minute of my Executive Council concurring in tlic prayer of tliis Address to me, and recommending that a copy be forwarded by me to his Kxcellencv the Ciov -rnor-General, with a request that he will be pleased to order immediate actioii to be taken thereon, -• - ,... ^. , . ., .. ands for railway RONG, ^utive Council. tber 22, 1&73. c Railway \Nas Ii yoii have no liich \vc bclive bia. We hope telegraph you CKENZIE. ary 9, 1874. Duck, it was I was united to II terms; and niiiion iinder- II the date of ky Mountains, Is (lie Pacific: last, and the I commenced, a it, therefore, int-Governor, )eo))le of this of Union, and essity of com- ish Columbia 25, 1874. le from iho jf the Le<,ns- rticle of the uiderfook (o of Union of IS. anfl from tilic to con- and to urge iich railway lyer of this Kxcelleiicy liate action 59 In accordance, therefore, with the ndvicp of my Ministers, I bcff that you will be ROod enough to lay this despatcii and its inclosuro before his Kxcellency the Governor- General, and to commend to his Kxcellency'a favourable consiileration thon^prcscntiitions and urgent ret' Senate and House of Commons of Canada, and embodied in addresses to tlie said Houses to Her Majesty under tlio said section of the " British North America Act, 1867," and approved by Her Majesty and embodied in tlio Order of Her Majesty in Council of the 16th of May, 1871, admitting- British Columbia into the Union under the said Act as part of the Dominion of Canada, from the 20th day of July, 1871, it is among other things provided : That the Government of the Dominion shall construct a railway from the Pacific towards the Rocky Mountains, and from sucli point as may be selected for the pHri)Ose east of the Rocky Mountains towards the Pacific, to connect the seaboard of British Columbia witli the railway system of Canada : and further, that the Government of the Dominion shall secure the commencement of such railway witliin two years and its completion within ten years from the dale of tlvj Union; the Government of British Columbia agreeing to convey to the Dominion Government, in trust, to be appropriated in sucli manner as the Dominion Government may deem advisable in furtherance of the construction of the said railway-, a similarextont of public lands along the line of railway, through its entire length in British Columbia (not to exceed, however, twenty miles on each side of tlie said line), as may be appropriated for the same purpose by tlie Dominion Government from the public lands in tlie norih-west territories and the Province of Manitoba, subject to certain conditions for making good to the Dominion Government from contiguous lands the quantity of land which may be held under pre-emption right or by Crown grants within the said limits, and for restraining the sale or alienation by the Government of British Columbia during the said two years, of lauds with the said limits : And whereas, tlie House of Commons of Canada resolved in the Session of the year 1871, that the said railway should be constructed and work(!d by private enterprise and not by the Dominion Govtirnment, and that the public aid to be given to secure its accom- plishment, should consist of such liberal grants of land and such subsidy in money or other aid, not increasing the then existing rate of taxation, as the Parliament of Canada should thereafter determine: And whereas the Statute 35 Victoria, chapter 71, was enacted in order to carry out the said agreement and resolution ; but the enactments therein contained liave not been eflectual for that purpose : And whereas, by the legislation of this present session, in order to provide means for meeting the obligations of the Dominion the rate of taxation has been raised mucli beyond that existing at the date of the said resolution : And whereas, it is proper to make provision for tlie construction of the said work as rapidly as the same can be accomplished without further raising the rate of taxation : Therefore Her Majesty, by and witli the advice and consent of the Senate and House of Commons of Canada, enacts as follows . — 1. A railway to be called the "Canadian Pacific Railway" shall be made from some point near to and south of Lake Nipiss^iiig to some point in British C'olumbia on the Pacific Ocean, both the said points to be determined and tlie course and line of the said railway to be approved of by the Governor in Council. 2. The whole line of the said railway, for the purpose of its construction, shall be divided into four sections: the first section to begin at a point near to and soutli of Lake Nipissiiig, and to extend towards the upper or western end of Lake Superior, to a jioint where it shall inters(Ct the second section hereinafter mentioned; llie second section to begin at some point on Lake Su])erior, to he determined by the Governor in Council, and connecting with the first section, and to extend to Red River, in the Province ot Manitoba ; the third section to extend from R(>d River, in the Province of Manitoba, to gome point between Fort Kdmontou and the foot of the Rocky Mountains, to be determined by the Governor in Council ; the fourth section to extend from Ihe westcn terminus of the third section to some point in British Columhia on the Pacific Ocean. li. Branches of the s;iid railway shall also be construc^;ct as follows, that is to say : — (1.) A branch from the point indicalerl as tlie eastern terminus of the said railway to some point on the (ieorgian ' ly. both the said jioints to be determined by the .Governor in Council. (2.) A branch from the main line near Fort Garry, in the Province of Manitoba, to some point near Pemliiiia on the southern boundary thereof. 4. The branch railways above mentioned sliall, for all intents and purposes, be considered as foi ming parf of the Canadian Pacific Railway, and as so many distinct sections of the said railway, and shall be sid)jecl to all the provisions hcreinatler mudo 65 " and laid 1871, and iibodicd ill c "British tlio Order umbia into 20th day of tlie Pacific he purpose of British lent of the ais and its of British iproin-iiited •ancr of the of railway, ty miles on " Dominion 'rovince of ovcrnment iplion rigfht ienation by ith tile said of the year rise and not 3 its accom- money or ot Canada ter 71, was enactments vide means 'aised much 3 proper to ime can be Majesty, by lada, enacts made from iiibia on tin; of the said in. sliall be illi of Lake , to a ])()int I section to in Coiiucil, 'rovince of lanitoba, to ains, to bo lie \veste»"T Ocean, vs, that is lid railway led by the anitoba, to rposos, be ny distinct atler made with respect to the said Canadian Pacific railway, except in so far as it may be otherwise provided for by tiiis Act. .'). A line of electric teley;raph shall be constructed in advance of the said railway and branches, along: their wliolo extent respectively, as soon as practicable after the location of the line shall have been determined upon.' 6. The gauge of the said railway sliall be 4 feet 8^ inches, and the grades thereof, and the materials and manner of and in which the several works forming part thereof shall be constructed, and tiie mode of working the railway, including the description and the capacity of llie locomotive (ingines and other rolling stock, shall be such as may be determined by the Governor in Council. 7. The said Canadian Pacific Railway and the branches or sections hereinbefore mentioned, and the stations, bridges, and other works connected therewith, and all engines, freight and passenger cars, and rolling stock shall be constructed under the general superintendence of the Department of Public Works. 8. The Governor in Council may divide the several sections of the said railway into sub-sections, and may contract with any person, co-partnership or company incorporated or to be hereafter incorporated (hereinafter referred to as the " Contractors," which expression shall be understood to include a single "Contractor" for any such work) for the construc'.ion of any section or sub-section of tlie said Railway, including all works connected therewith, and all rolling stock required to work the same, and for the working of the same as hereinafter provided, on such terms and conditions as by the Governor in Council may be deemed just and reasonable, subject to tlie following provisions : — (1.) That the works on any section or sub-section of the said railway shall not be given out to any contractor or contractors except after tenders shall have been obtained for thte same. (2.) That the contract for any portion of tlic said works shall not be given to anv contractors unless such coulraclora- give satisfactory evidence tliat they possess a caiiital of at least 4,000 dollars pe" mile of their contract, and of which 2.5 per cent, in money, Government or otlier sufficient securities, approved by the Governor in Council, sliall have been deposited to the credit of the Receiver-General in one or more of the chartered Banks of the Dominion to be designated for tliat purpose by the Governor in Council, us security for the completion of the contract, and the Governor in Council may make sucii further conditions as he may deem expedient for securing the performance of the contract, as well with respect to tiie construction as to tl\e working of the railway after completion, and any sucli condition shall be valid, and may be enforced as provided by the contract. (3.) Tiiat the total sum to bo paid to the contractors sliall be stipulated in the contract, and shall be 10,000 dollars for each mile of the section or sub-section contracted for, and that sucli sum sliall be })aid to the I'oiitractors as the work progresses by monthly payments in proportion to the value of the work tlicii actually performed (according to the estimates of the engineers designated for the purpose by tlie .Minister of Public Works) as compared witii the value of the whole work coiitnicted for, includiiiL;' I'olliiig stock and all things to be done or furnished by the coutraelors ; and exceiit money arising from the sale of lands as hereinafter ]n-uvided, no furtiicr sum of money shall be payable to the contractors as principal, but interest at the rati; of 4 per cent, per aniuim fb;- twenty-five years from tlu; comiiletion of tlie work, on a sum (to b(! stated in th(; contract) for eacii mile of the section or sub-section coiitraclcd i'or, sliall be payable to the contractors, and guarantees for the payment thereof shall lie given from time to time to the contractors in like manner and proportion and on like conditions as payments are to be made on the principal sum above nn'iilioned ; and the teiideis for tlie work s!iall be required to state the lowest sum per mile on wliicli swh interest and guaraiilecs will be rccpiired. (4.) Tliat a quantity of land, not exceeding 20,000 acres for each mile of liie section or sub-section contracted for shall bi; aiipropriated in alternate sections of twenty square miles each along tlie line of the said railway, or at a convenient distance there- from, each section having a frontage of not less than tlu'ee miles nor more than six miles on the line of the said railway, and that two-thirds of the i|uantity of land so appropriated shall be sold by the (Jovernmeiit at such prices as may be from time to lime agreeil uiion between the Governor in Council and the contractors, and the proceeds thereof accounted for and paid half yeaidy to the contractors, free from any charge of administration or management ; the remaining third to be conveyed to the contractors. The said lands to be of fair average quality and not to include any land already granted or occiqiied under any patent, licence of occupation, or pre-emption right ; and wiien a sulHcieiit (luuntity [107] K U»W«— i^-oin^lMni 51 ■Sii 6« cannot be found in the immediate vicinity of the railway, then the same quantity, or as much as may be required to complete sucli quantity, shall be appropriated at such other places as may be determined by the Governor in Council. (5.) Tiiat the said blocks of land to be appropriated as aforesaid shall be designated by tlto Governor in Council as soon as the line of railway, or of any section or sub-section thereof, is finally located. Provided that all such payments of the proceeds of lands sold, and conveyances of lands to be granted shall be so made and granted from time to time as (lie work of construction is proceeded with, in like manner and proportion and on lik(> conditions as the money and guarantees above mentioned, and subject to any conditions of tiie contract as respects tlie construction of the working of the railway after completion. (6.) That (he fiovernor in Council may further, grant to the contractors the right of way through Government lands, as also any sucli lands required for stations or work- sliops, and generally all such lands as may be necessarily required for the purpose of constructing or working the said railway. (7.) Tliat the cost of surveys and of locating the line of the several sections and sub-sections of the said railway shall be part of the subsidy or consideration allowed to the contractors or not, as may be determined by the Governor in Coimcil, and agreed upon in the contract entered into with the contractors. (8.) t'.ach section or sub-section of the said railway, as it is in wliolo or in part completed, sliall be the property of the contractors for the same, and shall be worked by and tor tJie advantage and benefit of such contractors, under such regidations as may from time to time be made by ilie Governor in Council, as regards the rales chargeable for passengers and freight, the number and description of trains to be run, and the accommodation to be afforded for freight and passengers. (9.) All and every the provisions of "The Railway Act, ISOS," in so far as the proviF-ious therein contained are apf)licable to the said Canadian Pacific Railway, or any section or sub-section thereof, and an; not inconsistent with or repugnant to the provi- ^Jions of this Act, sliall he considered as forming part of this Act, and ar(> hereby incorpo- rated tlicrewith. flO.) In applying the said Railway Act to tlie Canadian Pacific Railway, or any portion thereof, the expression " the Railway "shall be construed as meaning any section or sub-section of tiie said railway, tlio construction of which has been undertaken by any coiitractois ; and tlie expression " the Company " shall mean the contractors lor the same. And sucii contractors shall have all the rights and [lowers vested in Companies by the said Act. (11.) As respects the said railway, the 8th section of "The Railway Act, 18G8," relating to ])lans and surveys, sliall be subject to the follow ing provisions: — It sliall be suflicient that the map or jilan and book of reference for any portion of the line of tiie railway, not being within any district or county for which there is a Clerk of the Peace, be depouiled in the otfiee of the Minister of Public Works of Canada, and any omission, misstatement, or erroneous description of any lands therein may be corrected hy the contractor, with the consent of the Minister, and certified by him ; and the railway may then he made in accordance with such certified correcdon. The 11th sul)-sec(iou of the said 8(h section of the Railway Act shall not apply to any portion of t!ie railway passing over ungranted lands of the Crown, or lands not within any surveyed townshii) in any province ; and in such jilaers deviaiions not exceedjii<; 5 mile^' from the line sliown on the map or plan, approvefl by the Minister of I'uliiie Works, shall he allowed, on tlie a])proval of the engineer emjiloyed by tlu; said Minister, without any formal correction or eertiliciile ; and any further deviation that may he funnd expedient mav hi; authorized by llir Governor in Council, and the railway made in accordance with such aiuhorized di-viation. The map or iilan and liook of reference made and deposited in accordance with this s('eli(iii, after approval by tiie (uneniMicnt, s!iail avail as if made antl deposited as rei|uir(il by th(! said "The Railway Act, ISfiy," for all the purposis of th(> said Act, and of this Ael : and any cojiy of the same or extract tli(T(;t'roni, ccrlilicil by liu; said Miiii-iter or his dejiiitv, sli;ili be received as evidi'uce in any Court of Law in Canada. It shall be sullieient that a map or prolilo of au) part of the coniph'ted railway, which sli;iil not li(> uilliin aii} comuy or district having a registry ollice, be filed in the oflicc of the Minister (jf Piihlie WOrks. (12.) The jirovisioii made in sub-sections .30, HI, and .32, of seelion i) of "The Railway Act, 18GH," as (o incumbrances on lands aciiuired for the said railway, shall apjily to lands .so acfiuired in the Provinces of Manitoba ami Britisli Columbia, and ie ♦he North-West Territories ; and as respects lands in the North.W(.st Territories, tlu I ntity, or as ; such other designated sub-section Js of lands rom time to >ortioii and ject to any aihvay after the right of [IS or work- purpose of loctions and iillowed to and agreed or in part : worked b}- ions as may chargeable m, and the far as the ivay, or any file provi- 'by incorpo- ivay, or any uiy section liken ijy any 'ors for the I Companies Act, I8G8," r portion of is a Clerk of Janada, and •in may be y liim ; and t sliall not \ 11, or lands kiaiions not Minister of l)y tlie saiil liation dial the railway rdance with cposited as e saiil Act, by I lie said Ci.inmla. i'(! nil way, iled in the ihvay, shall bia, and ii; ritorics, tin 67 Court of Queen's Bench for the Province of Manitoba shall be held to be the Court intended by the said sub-sections. (13.) In tlu) Provinces of British Columbia and Manitoba, any Judge of a Superior or County Court shall have all the powers given by the said A. t to a County Judge, and in the North-West Territories sucli jiowers shall bt; exerciaed by a Judge ol' tlic Court of Queen's Bench of the Province of Manitoba. (14.) It shall be lawful for the contractors to take from any public lands adjacent to or near the line of the said railway, all stone, timber, gravel and other materials which may be necessary or useful for the construction of tlio railway ; and also lo lay out and appropriate to the use of the contractor a greater extent of lands, whctlior ]iublic or private, for stations, depAts, workshops, buildings, side-trackc, »vhnrvcs, harbonis and roadway, and for establisliing screens against snow, than tlie breadth and (|uinitily mentioned in the "Railway Act, 18()8," such greater extent taken, in any case, being allowed by the Government, and sliowu on the maps or plans deposited with the .Minister of Public Works. (15.) As respects places not within any Province, any notice rc(piii'ed in the "Railway Act, KSG8," to be given in the "Official Gazette" of a Province, may be given in the " Canada Gazette." (IG.) Deeds and conveyances of lands lo the contractors (not being letters patent from the Crown) may, in so far as circumstances will admit, be in the form following, that is to say : — " Know all men by these presents, that I, A.B., in consideration of paid to me by the contractors for section {or as the case mai/ he.) of the Canadian Pacific Railway, the receipt whereof is hereby acknowledged, grant, bargain, sell and convey unto the said contractors for section siiccessovs and assign?, all that tract or parcel of land {describe the land) to have and to hold the said land a;id premises unto the said contractors, their successors and assigns for ever. " Witness my hand and seal, this day of one thousand eight huhdred and «A.B. [L.S.] " Signed, sealed, and delivered in presence of "CD. " E. F." or in any other form to the like effect. (17.) Her Majesty's naval > . 70 No. 17. The Earl of Dufferin to the Earl of Carnarvon. — (Received August 12.) My Lord, . Ottawa, July 3\, ]874. I HAVE the honour to transmit a copy of a despatch and inclosure from the Lieutenant-Governor of British Columbia, together with a Petition to Her Majesty therein referred from the inhabitants of Victoria, respecting the non-fuliilmcnt by Canada of the terms of Union. I have, &ic. (Signed) DUFFERIN. , Inclosure 1 in No. 17. Sir, Government House, British Columbia, July 2, 1874. I HAVE the honour to inclose a Petition to Her Majesty the Queen, upon the subject of the railway clause of the Terms of Union of British Columbia with Canada, together with a Resolution adoptina; the same, which is stated to have been passed at a public meeting recently held in Victoria. These Documents have been placed in my hands under cover of a letter, a copy of which I also inclose, from Mr. M. W. T. Drake, subscribing himself as Chairman of the said meeting, ami at his request, are transmitted to be forwarded for presentation to Her Most Gracious Majesty, through such channel as his Excellency the Governor-General may think proper. I have, &c. (Signed) JOSEPH W. TRUTCH. The Hon. the Secretary of State, Ottawa. Inclosure 2 in No. 17. Sir, Victoria, British Columbia, June .30, 1874. 1 HAVE the honour to inclose to yoiu* Excellency, a copy of a Resolution which was passed at a large public meeting held at Victoria, together with the Petition therein referred to, and J have to request your Excellency to forward the Petition to its destination. I have, &c. (Signed) M. W. T. DRAKE. The Lieutenant-Governor, &c. &c. &c. Inclosure 3 in No. 17. Resolutio7i. Moved by C. Morton, Esq., and seconded by .J. F. McCreight, Esq., Q.C. Resolved — That th(! Petition as read be adopted by the Meeting, signed by the Chairman on their behalf, and forwarded through his honour the Lieutenant-Governor to Her Majesty the Queen with a copy of this Resolution. (Signed) M. W. TYRWHITT DRAKE, Chairman. Inclosure 4 in No. 17. Petition. To Her Most Gracious Majest) Queen Victoria, in Council assembled. The humble Petition of your Majesty's most dutiful and loyal subjects, the inhabitants of Victoria, Slieweth, 'I'HAT since the year 1867 the subject of Contederatiou of the Colony of British Columbia with the Donnnion of Canada was frequently discussed in the LcgiHlative «■ bRI^ 71 Conncil of the Colony, and in tlie years 1868 and 1869 resolntions condemnatory of it were passed. In 1870 a scheme was hiid before tlie Legislative Conncil by tlio Governor, which ultimately resulted in the Colony being adniilled into I lie Duminion upon the terms and conditions whicli received the approval of your Most Gracious Majesty and your Most Honourable Privy Council on the IGth of May, 1871. The chief condition of those terms was, " That tlie Government of the Dominion undertake to secure the coniniencement sinudtaneously within two years from the date ot Union of the construction of a railway from tiie Pacific towards the Rocky Mountains, and from such a point as may be selected east of the Rocky Mountains towards the Pacific, to connect tiie seaboard of British Columbia with the railway system of Canada; and furtlierj to secure the completion of such railway within ten years from the date of Union. And the Government of British Columbia agree to convey to the Dominion Govern ment in trust to be appropriated in such a manner as the Dominion Government may deem advisable in furtherance of the construction of the said railway, a similar extent of public lands along the line of railway throughout its entire length in British Columbia, not to exceed, however, twenty miles on each side of said line, as may be appropriated for the same purpose by the Dominion Government from the public lands in the north- west Territories and the Province of Manitoba. Provided lliat the (pianiity of land wliich may be held under pre-emption right or by Crown Grant.witliin the limits of tlie tract of land in British Columbia to be so conveyed to the Dominion Government shall be made good to the Dominion from contiguous public lands ; and provided further that until the commencement within two years as aforesaid from the date of the Union of the construction of the said railway, the Government of Britisli Columbia shall not sell or alienate any further portions of the public lands of Britisli Columbia ii. any other way than under the right of pre-emption, requiring actual residence of the pre-emptor on the land claimed by him. In consideration of the land to be so conveyed in aid of the construction of the said railway the Dominion Government agree to pay to British Columbia from the date of the Union the sum of 100,000 dollars per annum, in half- yearly payments in advance. The Unicm took place on the 20th July, 1871. On the 7tli June, 1873, the Privy Council of Canada decided " that Esquimalt, in Vancouver Island, be fixed as the Terminus of the Canadian Pacific Railway, and tliat a line of railway be located between the Harbour of Estpiimalt and Seymour Narrows, on the said island." By the same Order in Council application was directed to be made to liis Excellency tlie Lieutenant- Governor of British Columbia for a reservation, and for the conveyance " to the Dominion Government in trust according to theeleveutli paragraph of the Terms of tlie Agreement of Union of a strip of land twenty miles in width along (lie eastern coast of Vancouver Island between Seymour Narrows and the Harbour of Es(|uimalt, in furtherance of the construction of the said railway," which reservation was made accordingly on tlie 1st of July, 1873, by the Government of British Columbia. In this and all other resj)ects the Government of British Columbia has fulfilled every condition recpiired of them by the Terms of Union. The Dominion Government have already broken their agreement by not commencing the railway within the time specified, that is, July 1873, and they now seek to vary the Terms of Union in such a manner as practically to leave it in their hands to say whether, and when the railway shall be commenced or completed as appears by Section 17 of the Canadian Pacific Railway Act, 1874, and l>y reference to the Preamble of tiie same Act, it is evident that the Dominion Government are unwilling to carry out the original compact, and the declared policy with regard to the railway is totally at variance with the Terms of Union of British Columbia. British Columbia has persistently protested against the action of the Dominion Government on tlii; (piestion. The only means of communication this Province now has with f)tlawa is by the United States at a distance of more than 2,000 miles through foreign Territory, in addition to a sea voyage of 800 miles. And it is felt that the Dominion Govi-niment in delaying the commencement and speedy completion of the railway, are defeating the cliief object of Confederation, i.e., the immediate Union of the British North American Provinces. The Dominion Government in tailing to fulfil the Terms of Union have already seriously afiected the welfare and prosperity of this Province, and caused great discontent, and created a want of confidence in thi; Canadian (lovernment. and dissatis- fi\ction with Confederation. 72 The desire of Her Majestv'a Government that the British North American Provinces should be united, and the proposed construction of tlic railway under the sand ion and desire of the Imperial authority, were the chief inducements to Britisli Columbia to join the Confederation, relying on the certainty that she should have the protection of your Most Gracious Majesty in seeing that the Terms of Union should bo faithfully carried out. Your Petitioners therefore humbly pra^' your Most Gracious Majesty to lake this, our Petition into your gracious consideration, and to act as Arbitrator, and see that justice be done to British Columbia. And your Petitioners, as in dutv bound, will ever pray, &c. (Signed) M.' W. TVRWHITT OR AKK, Chairman, On behalf of a Public Meetinij held at Victoria, British Columbia, June 18, 1874. No. 18. The Earl of Duferin to the Earl of Carnarvon, My Lord, Sault St. Marie, July 31, 1874. IN further reference to your public despatch of the 18th of June,* which I communicated to my Ministers, I have the honour to inclose an approved Order in Council in winch my Government sets forth more at large its views with respect to its pending dispute witli British Columbia, and expresses a desire that your Lordship would use your good offices in promoting a settlement of tlie misunderstanding in accordance with the suggestion you have been good enougli to make. I have, &c. (Signed) DUFFERIN. Inclosure 1 in No. 18. Copy of a Report of a Committee of the Honourable the Privy Council, approved by his Excellency the Governor-General on the 23rd July, 1874. THE Committee of Council have had under consideration the despatch from the Right Hono\irable the Secretary of State for the Colonies,* relating to tlie proposed mission of a Member of the British Columbia Government to England, for tlie purpose of complaining of the alleged non-fulfdment of the terms of Union between lliat Province and the Dominion as to the construction of the Pacific Railway, and containing an offer on tlie part of Lord Carnarvon in the following terms : — " If both Governments should unite in desiring to refer to my Arbitration all matters in controversy, binding themselves to accept sucli decision as I may think fair and just, 1 would not decline to imdertake tliis service," and furtlicr stating that he could not assume such duty, " unless by the desire of botli parties, and unless it should be fully agreed liiat my decision, wiiatever it may be, siiall be accejitcd witiiout any fpiestion or demur ;' concluding with a request that in the event of this offer being accepted a statement of the case should be prepared by eacli Government to be submitted for consideration. Tlie Committee advise that Lord Carnarvon be informed tliat the papers already transmitted to the Colonial Office, witli tiie Minute of Council of July 8th, having special reference to Mr. "Walkem's communication in Ottawa of the 15th July, convey sub- stantially all tliat this Government have to say upon the subject, and that the Govern- ment would gladly accept his Lordsliip's offer if it were possible to define with any degree of exactitude the matter in dispute. When the present Government assumed office, they found that the British Columbia Government had protested against the non-commencement of works of construction on the railway on or before tlie 20th day of July, 1873, as agreed to in the eleventh section of tht; Order in Council relating to the Union. They also found that the means taken by the late Dominion Government for proceeding with the works of construction had totally failed, although tlie works, preliminary to an actual commence- ment, had been prosecuted with all possible despatch. There can be no question of the extreme difficulty involved in the survey of a line • No. 0. 7(i of railway across an uninliabilc'd continent, a distance of 2,i50O niiics. To properly complete tliis survey and ascertain the best route for tlio railway uouUl require, not two years simply, but at least five or six years, as all experience of works of tliis mngnitudo and cliaracter both in tiie Dominion and elsewhere has sufficiently dcmonstrnted. The expenditure which had taken jtluce up to that time was very large, exceeding 1,000,000 dollars, and yet the engineers Iiad been (piite unable to locate any portion of the line in the more difficult parts of the country to be traveined. Under these circumstances the Government conceive that then; was no reasonable or just cause of complaint on the part of the British Columbia Government. No other steps could have been taken further than prosecuting the surv( ys until the assembling of Parliament towards the close of the month of Marcli of this y( ir. The Govc nment were then prepared with a new Bill, taking ample powers for proceeding wi' .i the work?; as expeditiously as the circumstances of the country would permit. No complaint, official or otherwise, has been made as to the sufficiency of this measure to accomplish the object in vievT. It was distinctly understood by the British Columbia Delegation at the tim(* the terms of Union were agreed upon, that the taxation of tlu' country was not to be increased on account of this work beyond the rate then existing'. So anxious, however, were the present Government to remove any possible cwuse of complaint, that they dia Uike means to increase llie taxation very materially in order to place themselves in a position to make arrangements for Ihi; prosecution of tlu> initial and difficult portions of the line as soon as it was possible to do so, and at thu bamc tin\e a special confidential agent was deputed to llritish Columbia for the express purpose of conferring with the Government of that Province, and to endeavour to arrive at some understanding as to a course to be pursued which would be satisfactory to British Columbia and meet the circumstances of the Dominion. It should be mentioned that before the late Government left office it had been distinctly understood, as 'nw of tlio results of the visit to Flngland by the Directors of the Allan Company, that an extension of time of at least four years wo\dd be absolutely necessary. Mr. Walkem, of British Columbia, (piite imderstood this; and there is reason to believe that it would have been assented to by all parties. The proposal made through JNIr. Edgar to the B-itish Columbia Government is one which the Dominion Government think should have been ac( ,ited as reasonable and just, and as one quite in accordance with the moral obligations imposed on tliis Govern- ment, if not with the actual letter of the agreement. It must be remembered that British Columbia earnestly petitioned the Dominion Government to modify the terms of Union in its own favour in relation to the i justruc- tion of the Graving Dock. The Dominion Government cordially assented to provide the money for the construction of the work instead of abiding by the agreement to guarantee merely the Provincial Bonds for ten years, as provided by the terms of Union. This at once shows the liberality of the Dominion Government, and their willingness to consider and meet exceptional eircunislances wherever they existed. And this manifest ition of liberality on the part ol' this Government they conceive should have been reciprocated in other matters by the Provincial Government. The l)t)niinion Government were also willing to exceed the terms of Union by constructing a railway on the Island of Vancouver, although they were bound only to reach the " sea-board" of the Pacific. At the present time the only violation of the terms of the compact which can be alleged is that the works of construction were not actually commenced on the '20th of July, 1873. But it is doubtful if even that allegation can be uphekU It was all but impossible to proceed more rapidly with the work of survey, and a very extravagant expenditure was the result of the "haste already shown in endeavouring to loeate the line. This may bo understood from the fact' that tht> surveys of tlu; Inter-eolonial Railway, 500 miles long, occupied not less than four years, though the route was through a settled country ; and they were then very incomi)letc, causing subsequent serious embarrassments to the contractors, and the presentation by them of endless claims for compensation. Mr. Walkem in his conversations admits frankly that the literal fulfilment of the terms for the completion of the line on a certain day in 1881 cannot be expected. The only questions therefore that can now arise are (1), whether due diligence and expedition have been exerted by the Dominion Government in the prosecution of the work ; and (2) whether the offers of compensation for the alleged non-fulfilment of the terms were just and fair. ri07l L 74 While exprcuing a very strong conviction that ovorytliinK has been done that could possibly bo dont; under the circuujBtances, and that the Dominion Government have slumn a disposition to ^o far lK!yond the spirit of the eng:ngcmcnt entered into with Britisii Columbia, considering tiio expressions of opinion by Mr. Trutch as the delegate of Britisii Columbia at the time of tlio Union, and the facts set forth in the several documcnis already forwarded to the Colonial Office, the Committee advise that Lord Carnarvon be informed tiioy would gladly submit the (piestion to him for his decision as to whether the exertions of the Government, the diligence shown, and liie offers made, have or have not been fair and just, and in accordance witii the spirit of the agreement. Tlie Committee advise that a copy of this Minute be forwarded to tlic Right Honourable the Secretary of State for the Colonies. Certified, (Signed) W. A. HIMSWORTH, Clerk, Privy Council, Canada, No. 19. Colonial Office to Mr. Walkeni. Sir, Downing Street, August 15, 1874. I AM directed by the Earl of Carnarvon to acknowledge the receipt of the Petition to the Queen, signed by yourself on behalf of the P^xecutive Council of British Columbia, whicli you left with his Lordship on the occiision of your recent interview with iiim at tliis Ofiice.* After careful perusal of this clearly drawn and temperately expressed statement, and after liearing tiie further representations wliich you liave since made orally, his Lordship feels that he has before him a full exposition of the views of the Provincial Governments, and he desires me to thanli you for the judicious manner in wiiicii you have disciiaiged tiie duty entrusted to you. Lord Carnarvon will be much pleased if he can be the means of adjusting the diiienMici's which liave arisen, but tiic subject abounds in details which require close examiniition, and his Lordship tliinks it ma\' be convenient to you to know that lie does not anlicipate that he will be able until after two or three weeks to come to a decision as to tlie course which he should take. I am, &c. (Signed) ROBERT G. W. HERBERT. No. 20. The Earl of Carnarvon to the Earl of Dufferin, My Lord, Downing Street, August 16, 1874. WITH reference to my despatch of tlie 18t]i Juno.t I have now to acipiaint you tliat I have seen Mr. Walkeni, the Premier of Britisii Columbia, deputed by his Government to represent to me tiie claims of tlie Province relative to tlie delays wiiich have occurred in the construction of the Pacific Railway, the completion of wliich work within a certain understood time was one of the principal considerations that infUieuced the Union of British Columiiia with tlie Dominion of Canada in 1S71. I will only add on this head that Mr. Walkcm laid his case before me iu temperate and reasonable terms. 2. I have also received a t(;legram from the Lieutenant-Go icrnor of British Columbia statinj; that upon the advice of liis Responsible Ministers 'ae accepts, on behalf of IJi-itish Columbia, the arbitration which I tliou,i;ht it my duty '.o offer, and the con- ditions of which I explained to your Lordship in my despatch of the IStli of June. 3. 1 have further received vour desjiatch of the 31st July J inclosing a copy of the report of the Canadian Privy Council of tlie 2:}rd of July, in which your Alinisters express tlieir readiness to submit for my decision the question whether tlie exertions of the Dominion Government in the prosecution of the work, tlie diligence sliown, and the • No. 12. t Ko 6. X No. 18. 7ft Right ofTers made by tliem to British Columbia Imve, or Imvc not, bocn fair and just and in accordance with the spirit of the agreement ontered into bL'tween (-anada and iJritish Columbia at the date of Union. 4. I appreciate the confidence which lias been thus placed in mo by both parties (o this controversy, and, so far as lies in my power, I am mo3t desirous of contributing to the settlement of a difference which, althouRh liitherto con fully set forth in the Petition to the Queen, of which, as it has been published in the " Colonial Press," you no doubt have a copy. Taking each point seriatim, as numbered in the last preceding paragr.ipli but one, I understand it to be urged : — (1.) That nothing is being done by the Dominion Government towards commencing and pushing on a railway from Esquimalt to Nanaimo. (2.) That the surve\ing parties on the mainland are numerically very weak, and that there is no expectation in British Columbia, or guarantee given, on the part of the Dominion, tiiat the surveys will be proceeded with as speedily as possible. (3.) That tlic people of Britisli Columbia do not desire tlie waggon- road olTcrcd by the Dominion Government, as it would be useless to them; ami that even the teiegrai.ih proposed to be made along tlie line of the radwiiy cannot of course be made until tlie route to be taken by the railway is settled. (4.) That " the moment tlic surveys are completed," is not only an altogether uncer- tain, b'.it, at the present rate of proceeding, a very remote period of time ; and tliat an expenditure of 1,500,000 dollars a-year on the railway within the Province, will not carry the line to the boundary of British Columbia, before a very distant date. 8. Mr. Walkem further urges that, by section 11 of" The Canadian Pacific Railway Act of 1874," it is competent to the Dominion House of Commons to reject at any time the contract for a section of the railway, and thus to prevent the continuous construction of the work. 9. Referring first to this latter point, I do not understand that it is alleged by Mr. Walkem, nor do I for a moment apprehend that this proviso was introduced with any belief that it would delay the construction of the railway, I conceive that all tiiat was intended by it was to retain the power of exercising an adequate supervision over the financial details of the scheme. Nevertheh^ss, the objection stated by Mr. Walkem appears to me one which the Dominion Government should seriously consider, as their policy in so important a matter ought not to be left oiien to criticism, and British Columbia may fairly ask, according to the letter and the spirit of past engagements, lor every reasonable security that the railway will be completed as speedily as possible. 10. Strong as are doubtless the objections urged by Mr. Walkem to the proposals which I understand Mr. Edgar lo have made on behalf of your Ministers, and important as is the subject-matter of controversy, I, as at present advis^, can see no reason why L 2 76 the views of both parties should not be recouciled to their satisfaction, and withjustico to all interests concerned. 11. On the one liand, I cannot entertain tlic least doubt of the sincere intention of the Canadian Government and Parliament to adhere as closely as possible to the pledges given to Britisli Columbia at the time of the Union, to do that which is just and liberal towards the I'rovince, and, in fact, to maintatn the good faith of tlie Dominion in the spirit, if not in the letter, of the original agrt'iment, under circumstances which 1 admit to be of no ordinary dilhculty. 12. On the other hand, however, it would be unfair to deny that the objections stated by Mr. Walkem have a certain foundation and force, and I have every confidence that, in order to obtain the settlement of a question of such vital importance to the interests of the whole Dominion, the Canadian Government will be willing to make some reasonable concessions such as may satisfy the local requirements of British Columbia, and yet in no way detract from the high position which the Dominion Parliament and Government ought, in my judgment, to occupy. 13. I am of opinion, therefore, on a general review of all the considerations of the case, and as an impartial but most friendly adviser, who, if I may be allowed to say so, has the interests of both parties and the prosperity of the whole Dominion deeply at heart, that the following proposals would not be other than a fixir basis of adjustment. 14. (1.) That the section of the railway from Esquiraalt to Nanaimo should be begun at once. (2.) That the Dominion Government should greatly increase the strength of the surveying parties on the mainland, and that they sliould undertake to expend on the surveys, if necessary for tlie speedy completion of the work, if not an equal sum to that which they would expend on the railway itself, if it were in actual course of construction, at all events some considerable definite minimum amount. (3.) Inasmuch as tlie proposed waggon road does not seem to be desired by British Columbia, tlie Canadian Government and Parliament may be fairly relieved of the expense and labour involved in their offer ; and desirable as, in my opinion, the construction of tlie telegraph across the Continent will be, it perhaps is a question wlietlier it may not be postponed till the line to be taken by the railway is defmiti\ely settled. (4.) Tlie oiler made by tlie Dominion Government to spend a minimum amount of 1,,")00,00() dollars annually on tlie railway within British Columbia as soon as the surveys and waggon-road are completed, appears to me to be hardly as definite as the large interests involved on both sides seem to require. I think that some short and fixed time sliould be assigned within which the surveys shall be completed, failing which some compensation should become due to British Columbia for the delay. 15. Looking, further, to all the delays which have taken place, and which may yet perhaps occur, looking also to the public expectations that have been held out of the completion of the railway, if not within the original period of ten years fixed by the Terms of Union, at all events witliin fourteen years from 1871, I cannot but think tha the annual minimum expenditure of 1,300,000 dollars offered by the Dominion Govern- ment for the construction of the railway in the Province is hardly adequate. In order to make the proposal not only f\\ir, hut as I know is the wish of your Ministers, liberal, I would suggest for tlieir consideration whether the amount should not be fixed at a higher rate, say, for instance, at '2,000,000 dollars a-year. 16. The really important point, however, not only in the interests of the Province, but for the credit of the Dc minion and the advantage of the F^mpire at large, is to assure the conii)letion of llie railway at some definite period, which, from causes over wiiich your Ministers have had no control, must now, I admit, be much more distant than had originally been contemplati'd ; and I am disposed to suggest as a reasonable arrangement, and one neither unfair to the Dominion nor to British Columbia, that the year 1890 sliould be agreed upon for tiiis purpose. In making this suggestion I, of course, conclude that the Dominion Government will readily use all reasonable efforts to complete the line before any extreme limit of time that may be fixed. A postpone- ment to the very distant period which I have mentioned could not fail to be a serious {lisaiii)ointnicnt to the pcojile of ihe Province and to all interested in its welfare; and I should not have suggested jt wen? it not for the full confidence which I feel in the determination of your Ministers to do not merely the least that they may bo obliged, but the utmost that they may be able in redemption of the obligations which they have inlieri.ed. 17. 1 have now only to repeat the strong desire which I feel to be of service in a matter, tliu settlement of which may be either simple or difficult according to the spirit > >7 in which it is approached, a question directly bearing upon the Terms of Union may, if both parlies to it will waive some portion of their own views and opinions, be well intrnsted to the Imperial authority which presided over that Union, and not improperly, perhaps, to the individual Minister whoso fortune it was to consider, and in some degree to shape, the details of the original settlement under which the Provinces of British North America were confederated, and British Columbia ultimately brought '•■ connection with them. If, indeed, the expression of a personal tecling may, in £,-v.n a case as this, be indulged, I may perliaps bo allowed to say liow sincerely I prize the recollection of the share which I was then permitted to have in that great work, how deeply I siiould grieve to see any disagreement or difference impair tlie harmony which has been so conspicuously maintained by the wisdom and good feeling of all parties, and how entirely your Lordship and your Ministers may count upon my best efforts in furtherance of every measure that can contribute to the strength and honour of the Dominion of Canada. 18. It will be very convenient if your Government should feci able to reply by telegraph, stating generally whether the modifications which I have proposed, and which seem to me consistent with the present conditions of the question and with the true construction of tlie policy adopted by them, are in tlie main acceptable to them, in order tliat no unnecessary delay may take rlacc in bringing this matter to a conclusion. I have, &.C. (Signed) CARNARVON. No. 21. The Earl of Carnarvon to the Earl of Dufferin. My Lord, Downing Street, August 29, 1874. I HAVK received and have read with much interest the report by Mr. Sandford Fleming, Engineer-in-chief, of the progress up to January 1874 of the; explorations and surveys which iiave been made under his direction in connection with the Canadian Pacific Railway, which your Lordship has forwarded for mv information. I notice with satisfaction the generally fi».vourablo results obtained by the survey, and I congratulate the Dominion on (he conolusicns arrived at by the Engineer-in-chief as to the practicability of establishing railway communication across the Continent wholly within the limits of the Dominion, and the generally favourable engineering features of the country through which the railway will pass. 1 havr, &c. (Signed) CARNARVON. No. 22. Lieutenant-Governor Trutch to the Earl of Carnarvon. — {Received September 1.) My Lord, Government House, British Columbia, August 3, 1874. 1 HAVE the honour to state that on the; 28lh ultimo I received and laid before my Responsible Advisers a copy of your Lordship's despatch of Juno 18th* to Governor- General the Earl of Dufferin upon tlie pending difference between this Province and the Government of Canada, in relation to the Railway Article of the Terms of Union, which despatch was traiismitted to me by Lord Dufferin on the 3rd ultimo in accordance with yotir Lordsinp's instructions. I now inclose a Minute of the Executive Council of tjiis Province on yonr said despatch, and upon the advice of my Ministers therein expressed, 1 beg to signif)' my cordial acceptance on behalf of the Government of British Columbia of your Lord.^^hip's proflered arbitration in accordance in all respects witii the conditions laid down b\ you > I your said despatch, and to state that 1 liavi; to day dispatched a telegraphic message • > you to this effect, of which a copy is appended. i No, 6. t Ko. 10, 78 i copy of this despatcli and the inclosures therewith will be sent by this mail to the Secretary of State for Canada for the information of the Governor-General of Canada. I have, &c, (Signed) JOSEPH W. TRUTCH. Inclosure in No. 22. Report of a Committee of the Honourable the Executive Council, approved by his Excellency the Lieutenant-Governor, on the 3rd day of August, 1873. THE Committee of Council have had nnder consideration the proposal for a reference to arbitration of the qnestion between the Province and the Dominion Govern- ment respecting the fulfilment of the Terms of Union contained in the rlespatcli of 18th Juno, 1874, from the Right Honourable the Earl of Carnarvon, Her Majesty's Principal Secretary of State for the Colonies, to his Excellency the Governor-General, a copy of which lias been transmitted for the information of your Excellency, and referred to them for report. In this despatch the Secretary of State observes that he is strongly impressed with the importance of neglecting no means that can properly be adopted for elTecting the speedy and amicable settlement of a ijuestion which cannot without risk and obvious disadvantage to all parties remain the subject of prolonged, and it may be, acrimonious, discussion. That it has occurred to him that, as in the original terms and conditions of the admission of British Columbia into the Union, certain points were reserved for the decision of the Secretary of State, so in the present '"use it may be possibly acceptable to both parties ihat he should tender his good offices in determining the new points which have presented themselves for settlement. That, if both Governments sliould unite in desiring to refer to his arbitration all matters in controversy, binding themselves to accept such decision as he may thinlc fair and just he would not decline to undertake this service. That the duty whicii, under a sense of the importance of tlio interests concerned, he has thus offered tn discliarge, is of course a responsible and diflicult one, wliicli ho could not assume unk>s by tiie desire of both parties, nor unless it slioidd be fully agreed that his decision, whatever it may be, shall be accepted witliout any ipicstion or demur. The Committee concur with the Secretary of State in regretting that a ditfercnce exists between tlie Dominion and this Province in regard to the railway, and that it is most desirable for all parties tliat all the queslions in controversy sliould receive a speedy and amicable settlement, and they are of opinion tliat a reference to arbitration is the course of all others ih'/k' likely to lead to so desiralde a result. Tliey tlierefoie adv<#/' (hi; cordial acceptance by your Excelloncy of tlie arbitration of the Secretary of State in accordance witii tlie coiu'lilions laid down in liis I^jrdsliip's despatch of tlie IHtli June, 1874, and .sliould (liis report be ap[)r(!V('d tlH."}- recommend that tlie acceptance by tliis Govornment on beiialf of Uritish Columbia of the arbitra- tion of the Right Honourable the Secretary of State for the Colonies be immediately communicated by your Excellency to that Minister by telegraph and by mail, and that copies of such communications be transmitted simultaneously to the Secretary of State for Canada for the information of his Excellency the Governor-General. Certified, (Signed) W. J. ARMSTRONG, Minister of I'^inance, and Clerk tc the Executive Council. ) No. 23. The Earl of Carnarvnn to the Earl of Duffcrin. Aly Lord, Douning Street. September 4, 1874. I HAVE received your despatch of the Ulst of July,* forwarding a Pelitioa a; the receipt of the petition to Her Majesty of the Committee of the Executive Council of British Columbia, your Lordship was pleased to inform nic that you did not anticipate that you " would be able, until after two or tlu'ce weeks, to come to a decision as to the coursi wliich you should take " upon the subject matter of the Petition. As the time mentioned has now expired, may I request your Lordship to be good enough to inform me of tlie conclusion, if any, which you may have arrived at. 1 have, &c. (Signed) GEO. A. W \LKEM. No. 25. Colonial Office to Mr. Walkem. Sir, Downing Street, September 14, 1874. S I AM directed by the Earl of Carnarvon to acknowledi;c the receipt of your letter of the lOtli instant,-|- and to express to you his rci^rct that he is not at present in a position to communicate t you any decision in regard to the petition of tlie Executive Council of Britisli Columbia. I am, &c. (Signed) W. R. MALCOLM. No. 26. The Earl of Duffer in to the Earl of Carnarvon.— {Received September 30.) My Lord, Canada, September 18, 1874. IN acknowludgino; the receipt of your Lordship's dcspatcli of tlie IGth of August,! in whicli you iiave been good cnougli to convey to me your opinion as to the modi- fications wliich niiglit be introduced witli advantage into the t(>rnis uh-cady jjroposed by my Ministers, for the sottlemonl of the dispute now pending bctw(;en tills Govenmient and tliat of Britisli Columbia, 1 have the satisfaction of informing you that after a good deal of anxious deliberation Mr. Mackenzie and his colleagues liave consented to adopt the s('V( ral suj,gcstions reconuiiended to them by your Lordship, sliouhl it be found absoUitelv impossible to terminate the controversy in any otlier niaiincr. 2. Tlie general view of my Ministers on the various points referred to are srt forth at large in tiie inel(Aseil Order in Council, from which ymv Lordsliiii will gather that it is with very considerable reluctance they liave been induced to make these furtlicr eon- cessions, feeling so strongly as they do that tlu-ir original proposals fairly satisfied the reiiuireiiu'iits (if tlie ease. 3. 1 have no dmilil. lidwever, it will he felt throiu-Junit the eouulrv thai tlie only mode by which the Uomiiiioii could be ivalistactorily extricated from the false position iii vhieh "she was placed by her Treaty obligations to iultil engagements which were physically impo.^sible of execution, was by a large and generous uiterpretation of the conseijuent claims against her. • No, IS. t No- 24. t '^"- ^0. 80 d. I have further the honour to transmit a sketcli map* of the area now under exploration in Britisli Columbia, accompanied by a Memorandum by Mr. KhMuing, tl>e Enginecr-in-chief, by wliich it will be perceived that every effort is beinti; made to hurry forward the surveys witli all possible despatch, and that th.c employment of any additional staff would uselessly increase the expense without forwarding the work. I am, &c. (Signed) DUFFERIN. Inclosure 1 in No. 26. Copy of a Report of a Committee of the Honourable the Privy Council, approved by his 'Excellency the Governor-General on the 17 th day of September, 1874. TIIE Committee of Coiuicil have had under consideration the despatch of the Right Honourable Lord Carnarvon., relating to the complaints of the Brilisli Columbian Government with respect to the Pacific Railway, and suggesting certain modifications of the proposals made by the Dominion Government, through Mr. Edgar, on the 8th of Ma}' last. These proposals were prompted by a desire to provide against future difficulty in view of the then well ascertained fact that the terms of union had become impossible of literal fulfilment on tlie one hand, and, on the other hand, giving due weiglit to the very strong feeling entertained against the fatal extravagance which these terms involved to the country. The proposals may be thus summarized : — 1st. To build a railway from Esquimalt to Nanaimo, on Vancouver Island, in excess of the terms of union, and to begin the work immediatelv. 2nd. To commence the construction of tlie railsvay on the Mainland as soon as tlie surveys could be completed, and to expend on the work not less 1,500,000 dollars annually. 3rd. To take the necessary steps meanwhile to se<-urc the construction of a telegraph line across tlic continent on the located line for the railway, at the same time cutting out the railway track and building thereon a trail or road, which would subsc(picntly becomi^ available as part of the permanent works. The arrangements proposed by Lord Carnarvon embody some amendments. His Lordship suggests : — 1st. The immediate construction, as jjroposed, of the short line on Vancouver Island. 2nd. After the location of tlie line, the expenditure of 2,000,000 dollars on the Mainland, instead of l,o00,000 dollars. 3rd. The increase of the engineering force to double the number now employed ; the expenditure on the survey, if not of an amount erjual to the proposed ann;::il expenditure on construction, of some other specific sum; the prescribing of a limited time for the completion of the survey ; and the payment of a suui of money as com- pensation in the event of its not being so completed. 4. The guarantee of the completion of the entire railway in 1890. It is also suggested that the construction of the telegraph line and road need not be proceeded with, as Mr. Walkem does not consider cither as of any use to the Province. The Committee recommend that the first condition, which is precisely what was previously offered, be again concurred in. In regard to the second proposal, the Committee recommend that Lord Carnarvon be informed (if it be found impossible to obtain a settlement of the (juestion by the acceptance of the former offer) that the Government will <:onsoiit that, after the com- plctiou of the survey, the average annual minimum expenditure on the mainland shall be 2,000,000 dollars." There is every reason to believe now that a majority of the people of Columbia would accept the propositions previously niidc. Judging from a jjctilion sent from the Mainland, signed by 644 names (a copy of which petition is inclosed), there is almost an entire unanimity there in favour of these proposals ; and assurances were given very lately by gentlemen of the highest position on the island that the course of the Local "Government would not meet general approval there. An application was made by one prominent gentleman, au ex-member of Parliament, • Not printed. 81 was to the Government hero, to know if the proposals made would still be adhered to, he pledging himself to secure their acceptance by tlic bulk of the people. It is, therefore, earnestly hoped that no change will be considered necessary, as it will be difficult to induce the country to accept any further concessions. Tlie third condition requires an increase of the engineer force employed on the surveying surface ; the completion of tlie survey witliin a specific time ; and, in case that time sliould be exceeded, the payment to tlic Province of a money compensation. The Committee respectfully submit that the result aimed at by the foregoiig suggestion is already being accomplished witli the utmost dispatch admitted by the circumstances of the case. The Cliief Engineer was instructed to provide all the assistance he jjequired, in order to complete tlie surveys within the sliortcsl possible period, and he engaged a large force — a force larger, indeed, than can with profit be employed until the route is definitely determined. Whatever may be the route finally chosen, the line will of necessity traverse a country with exceedingly rough topograpliical features for a distance of 500 or 600 miles, from the eastern slope of tlic Rocky Mountains to the extreme limit of the province on the Pacific. The country is an immense plato .u, which maintains its general elevation to within a few miles of tlie soa, but often rises into unshapely mountain ranges ; some of these ranges tower to a height of over 9,000 feet. '" Tlio boundary of tlie plateau on the west is the Cascade Range ; this forms a huge sea wall along the coast, and has interposed a niucli more formidable obstacle to the surveyors than the Rocky Mountains. Attempts have been made at five or six points to pierce the barrier, but, except at the Fraser River, and at Bute Inlet, without success. From the results of last year's explorations, the Bute Inlet route seemed on the whole to be the best ; but it is not disassociated with serious difficulties. For a distance of 20 miles the ascent or grade is about 150 feet to the mile. The straits wliicli form tlie approach to tiie harljour from seaward are encumbered by islands, and, when readied, theliarbour is found to be destitute of ancliorage. The dangers of navigation are increased not alone by tlie precipitous and rocky shores, but by the rapidity of the tide, which rushes througli the narrow channels with a velocity of from seven to nine miles an hour. It was supjiosed, when work was resumed last spring, that a practicable route woul.. be found from the point where Fleming's line touches the north branch of the Tlunnpson River westward towards wliat is known as Big Bend, on the Fraser River, from which no serious impediment exists until tiie comineiicement of the rapid descent to the sea at Bute Inlet is reached. Had this supposition proved correct, it is probable the Govern- ment might have l)een prepared ul tiie end of 1 Ills year to proceed with the exact location of tlie hue ; but the explorations carried on to tlie close of July last resulted in the discovery of a high range of mountains svhieli fill tiie country from near the junction of the Clearwater with the Thompson northward to the great bend of the Fraser, and, without a very long detour south or north, they bar tlie wa}" to the west. The chief engineer, therefore, advised a re-examination of the Fraser valley, or, more correctly speaking, ravine, inasmuch as no liroad valley anywhere exists, the rivers in their courses having cleft ways for (henisehes through the rocks, which in some cases they have pierced to a dejjth of 1 ,500 feet, by a widtli of not more than a single mile, tiius giving as the normal coiulition exceedingly precipitous banks. Tliis new exammalion of the Fraser River route will occupy at least the whole season. A memorandum from the Chief Engineer will give the strength of the force, and show its distribution. Nearly two seasons were passed in examining the Rocky Mountain range and the valley of th" Columbia, in thr endeavour to olitain a favourable pass. The r<:.^ult was that the i..,);:,rei's were drivfii north to whai is kiiuwii as .la.sper House I'ass. Those facts are mentiDiieil to give some irably complete before the exact location of any jjortion of the line can be eoiitcinplated or possible, iiid before plans can be made of bridges and other works uf constriiclioii re(|uire(i, and nothing but the urgency of the contract so imprutlenily entered into with Urilisli Columbia wouUl otherwise have induced the Governnieut to employ more (haa half the force now engaged. [107] M 82 As pointed out in previous mcmoriimlum, tlio expenditure to the end of last year in Britisli Columbia alone was considerably over half a million of money, more than the whole expenditure upon tlic 2,000 miles eastward of that Province. Tlie Cliief Engineer was informed last winter that it was the desire of the Govern- ment to have tlie utmost expedition used in prosccutinj? and completin;;- the surveys, and in tl'.e engagements whicli he lias entered into these directions have been fully considered. The fourth condition involves another precise engagement to have the wliole of tlie railway communication finished in 1890. Tliero are tiie strongest possible objections to again adopting a pr(!cise time for the completion of the line. The eastern portion of the line, except so far as tlie mere letter of tlie conditions is concerned, affects only the Provinces oast of Manitoba, and the Government have n\)t been persuaded either of tlie wisdom or the necessity of immediattjly constructing tliat portion of the railway \vhich traverses the country from ihe west end of Lake Sujicrior to tlie proposed eastern terminus on Lake Nipissing, near Georgian Bay. Nor is it conceived that the people of British Columbia could with any show of reason wliatever insist that this portion of the work should be completed within any definite time, inasmuch as if the people who arc chiefly, if not wholly, atfected by tliis branch of the undertaking are satisfied, it is main- tained that the people of British Columbia would practically have no right of speecii in the matter. It is intended by the Government tliat the utmost diligence shall be manifested in obtaining a speedy line of communication by rail and water from Lake Superior west- ward, completing the various links of railway as fast as possijjlc, consistent witli that prudent course wliich a comparatively poor and sparsely settled country should adopt. There can be no doubt tliat it would be an extremely difficult task to obtain the sanction of the Canadian Parliament to any specific bargain as to time, considering the consequences wliich have already resulted from the unwise adoption of a limited period in tlie terms of union for tlie completion of so vast an undertaking, the extent of which must necessarily be very imperfectly understood by people at a distance. The Committee adv!S(> tliat Lord C/arnarvon be informed that, while in no case could the Government undertake the completion of the wliole line in the time mentioned, an extreme unwillingness exists to another limitation of time ; but if it be found absolutely necessary to secure a present settlement of the controversy by further concessions, a pledge may be given that the portion west of Lake Superior will be completed so as to afford connection by rail with existing lines of railway, through a portion of the United States and by Canadian waters, during the season of navigation by the year 1890, as suggested. With regard to the ameliorating proposal to dispense with the formation of a road or trail across the country, and the construction of a telegraph line, on the representa- tion of the British Columbia delegate that neither is considered necessary, it is proper to remark that it is impossible to dispense with the clearing out of a track and the forma- tion of a road of some sort in order to get in the supplies for the railway ; and the pro- posal was that so soon as the general route of the railway could be determined and the location ascertained, a width of two chains should lie cleared out in the wooded districts, a telegraph line erected, and that a sort of road passable fur horses and rough vehicles should be formed and brought into existence, not as a road independent of the railway, but as an auxiliary to, and necessary preliminary to railway construction,thc cost incurred forming part, indeed, of the construction of the railway itself In so vast a country, where there are no postal facilities, and where there can be no rapid postal cominnnication for many years hence, it is absolutely essential that a tele- graph line should be erected along the jjroposed route, as the only means by which the Government and contractors could maintain any communication. The oder, therefore, to dispense with a telegraph line is one which cannot be considered as in any way what- ever affording relief to the Dominion ; the undertaking to construct the telegraph line must rather bi; looked ni)oii as an earnest of the di^sire of the Government to do every- thing in reason in ordi'r to keep within th(> spirit of its engagement. The intention of the Governmeat will be seen from the following (piotation from the Act of last Session . — "A hue of electric telegraph shall be constructed in advance of the said railway and branches along their whole extent respectively, as soon as practicable after the location of the line shall have been determined upon." Having dealt -vith the modifications suggested by Lord Carnarvon, it is proper to notice seriatim the several grounds of complaint as stated in the despatch. 83 Govorn- cys, and fully ;eii 1st. " That nothing is being done by the Dominion Government towards com- mencing and pushing on a railway from Esqnimault to Nanaimo." The Dominion has no engagement to build such a railway, and, therefore, there can bo no just complaint that it is not commenced. The construction of such a railway was oflcred only as compensation for delay in fulfilling the engagement to build a railway to the " Pacific Seaboard." 2nd. " That the surveying parties on the Mainland are numerically weak, and that thei'c is no expectation in Riitish Columbia, or guarantee given, that the surveys will be proceeded witli as speedily as possible." On this point it is sufficient to state that, as remarked elsewhere, the utmost expedition possible has been used, and that the allegations in the Petition are incorrect." 3rd. " That the people of British Columbia do not desire the waggon road oflfered by the Dominion Government, as it would be useless to them ; and that even the telegraph proposed to be made along the line of the railway cannot, of course, be made until the route to bo taken by the railway is settled." It may be noticed in connection with this extraordinary statement that the con- struction of such a road was one of the conditions imposed by the Local Legislature in their resolutions adopted as the basis whereon to negotiate the terms of Union. It would, therefore, seem that such "a declaration now is intended more to lessen the value of the proposals made to British Columbia tlian to indicate public sentiment in the Province. As pointed out elsewhere, the work is practically a part of railway construction, and it is also confidently believed will be of very great advantage to the people generally. 4th. Mr. Walkem further urges, "That by section II of the Canadian Pacific Railway Act of 1874, it is competent to tlie Dominion House of Commons to reject at any time the contract for a section of the railway, and thus to prevent the continuous construction of the work." This is simply a complaint tliat the present Government provided for parliamentary supervision over the letting of such vast contracts. It was contended by the opposition in 1872 that, in thi; matter of a contract for so large a work, for which the Dominion was to pay 30,000,000 dollars and allot nearly (50,000,000 acres of land, the formal sanci'ou of Parliament should be obtained. Accordingly, wlien it became their duty, under altered political circumstances, to sxibmit a new measure to Parhament in lieu of the 0710 which had failed of success, they were bound to secure by statutory enactments full control to Parliament over th' 'c'ting of the contract or contracts. In all extraordinary contrnc ■ ntered into by the Government of England or Canada, this course has been followed, as, for instance, in contracts for the conveyance of mails by ocean steamers. It will also be apparent that no Government decision could prevent future parlia- mentary action. The insertion of this section, therefore, is in pur.saance of a well settled public policy not to permit the Executive too extensive powers without specific parliamentary sanction ; and even the present opposition demanded that the restriction should apply to the minor works on the branches provided for in the Act. Neither tlie Canadian Government nor Parliament can be suspected of having inserted such a clause for the improper p'arpose of using it to retard progress otherwise possible. Nothing has occurred which could justify such a suspicion. Since the passage of the Act the Government have placed tlie grading of the Pembina branch under contract, and hope soon to place tlie Nipissing In'anch under contract. The contracts for the telegraph line from Fort William to the exi'iung telegraphic stations in British Columbia will be closed in a tew days. It only remains to say that the Government, in making the new proposals to British Columbia, were actuated by an anxious desire to put an end to all controversy, and to do what is fair and just under very extr.iordinary circumstances ; and that these proposals embraced the niost liberal terms that public opinion would justify them in oll'eriiig. It is proper furtlier to remark that there has been no just cause of complaint at all, inasmuch as tin; report of the chief engineer shows that nothing more could have been done to forward the work. Tlie Act passed last session is a very complete one and amply provides for the construction of the railway, subject to the parliamentary supervision referred to. The lot of British Columbia is cast in with the other North American Provinces, and it becomes tiio duty of all the Confederated Provinces lo consider to some extent tlio M 2 84 general welfare. It is especially the duty of the smaller provinces to defer somewhat to the opinions of the old and populous Provinces fVom wliicli the revenue for the building of all such works is derived. Certified, (Signed) W. A. IIIMSWORTH, Clerk Privy Council. Copy of Petition. That in view of the action taken by an Association calling itself " The Terms of Union Preservation League," meeting: in tlio City of Victoria, on Vancouver Island, in Petitioning Her Most Gracious Majesty the Queen, relative to tlic non-fulfdment of one of the conditions of the Terms of Union, and affirming; in said Petition tliat Esquimau, on Vancouver Island, had been decided to be the Terminus of the Canadian Pacific Railway, and that a portion of the line had been located between the Harbour of Esquimau and Seymour Narrows, and praying that Her Majesty act as Arbitrator, and see that justice be done to British Columbia ; we, tlie Undersigned, respectfully submit as follows : — That, in our opinion, the Order of the Privy Council of Canada, of 7th June, 1873, is in no way binding upon your Excellency's present Government, and that a hne of railway along the seaboard of Vancouver Island to Esqnimalt is no part of the Terms of Union : That in any arrangement which may be entered into for an extension of time for the commencement or completion of tlie railway, any consideration granted by the Dominion of Canada to the Province of Uritisli Columbia should be such as would be generally advantageous to the whole Province, and not of a merely local nature, benefitting only a section thereof : That the League referred to, acting under the impression that further surveys may detract from the favourable opinion now entertained by the Engineers of the Bute Inlet route, are desirous of forcing your Excellency's Government into an immediate selection : That wo consider it would bo unwise, impolitic, and unjust to select any line for the railway until time be given for a thorough survey of the difforent routes on the mainland, believing, as we do, that such survey must result in the selection of the Eraser Valley route, which is the only one that connects the fertile districts of the interior with the seabord : That, as it is evident that the surveys arc not yet sufficiently advanced to allow of an intelligent decision on the question of route being arrived at, we consider that a vigorous and immediate prosecution of tlio surveys by your Excellency's Government, to be followed in 1875 by the commencement ot construction on the mainland, will be a faithful carrying out of tlio spirit of the Terms of Union : Your Petitioners, therefore, humbly pray lliat your Excellency take the views expressed in this our Petition into your most favourable consideration. Inclosure 2 in No. 26. Memorandum for his Excellency the Governor-General. Surveys in British Columbia. THE following is a list of the engineering parties at present engaged in British Columbia in connection witli the survey of the Canadian Pacific Railway : — (A.) Erom Tete Jaune Cache, down the valley of the North Eraser towards Eort St. (jcorge. Engineer in charge, E. W. Jarvis. (B.) From Fort George np tlie North Eraser to meet party (A). Engineer in charge, H. P. Bell. (C.) From Fort George across to Tatla Lake. Engineer in cliargc, C. H. Ganisbv. (D.) From Yale along the Canons of the Lower Eraser. Engineer in charge, II. J. Cambie. (E.) From Yale to Burrard Inlet. Engineer in charge, John Trutch. (F.) From Dean Inlet across tlio Ciiscadc Chain. Explorer, C. Horetsky. (G.) From Fort George westorly through unexplored region to Gardener and Dean Inlets. Marcus Smith iu charge of expedition. 85 On the accompanying map I have indicated by a green tint the position of the several partios, as well as the work under examination this year. It is expected tliat about 450 miles of line will have been instrnmentally surveyed in British Cchmibia during; the present year, and probably not less than 700 miles in addition explored. The number of jicrsomsof all grades engaged in the work of survey during tlu^ present season in the province of British Columbia is, as far as can bo ascer- tained, about 300. A large staff has been engaged on the work of exploration and surveying ever since July 1871. The Commissariat Branch has required and employed each year about 400 mules and horses. At tlie date of last advices 350 of tliesc animals were then actually at work in forwarding suppliers to the surveying parties in different remote sections of the province. Every effort lias been made to obtain information respecting the engineering features of the country and enable the Government to come lu a decision respecting the most eligible route for the railway. Tlie work of survey has, in fact, been unduly forced in order to get the desired information with tiio least possible delay. (Signed) SANDFORD FLEMING, Engineer-in-Chief. Canadian Pacific Railway, Office of the Engineer-in-Chief , September 15, 1874. No. 27. Mr, Walkem to the Earl of Carnarvon. My Lord, London, October ^\, 1874. 1 NOW beg leave respectfully to offer, for your Lordship's consideration, a recapitulation and review of the main points of the question at issue between Canada and British Columbia, respecting the breach by the former of the Railway Agreement in the Terms of Union. Although I have been favoured by your Lordsliip with many and lengthened interviews on tiiis subject, I hope that the grave nature of the interests committed to my care, as well as tlie important influence which your Lordship's action at the present time is sure to exercise upon the political and industrial growth of the Province, will be of sufficient excuse for again troubling you. A written communication of the kind proposed may also usefully serve to define more clearly some of the views, which I have advocated on behalf of the Province. Before proceeding further, I trust that I may b'j permitted to tender the expression of my grateful sense of the attention with which your Lordship has been pleased to receive, not only the statement of the case of British Columbia set forth in the Petition of its Government, but also the comments upon it which I have from time to time made. The Provincial Government will be glad to learn — what your Lordship has been good enough to state — that you have been gratified with the temperate spirit in which their case has been presented for the consideration of Her Majesty's Government. It was, as I had the honour to mention at my first interview, with a strong feeling of regret, tiiat tlie Government of the Province felt themselves under tlie necessity of seeking the advice and intervention of Her Majesty's Government in this matter. The Provincial Government desired to work in harmony with tlie Dominion Government, and I may safely say that such inter- vention would not have been sought, had a sufficient effort been made by the Dominion to comply with the spirit of the Railway Agreement. The key to the general policy of Her Majesty's Government, in relation to Britisli North America, is, so far as I understand, to be found in tiie proiimblo of the Act of Confederation, which briefly declares tliat " Union would conduce to tlie welfare of the Provinces federally united and promote the interests of the British Emjiire." The Imperial policy thus declared has also been the policy of Canada. British Coluniliia liltewise has endeavoured on iier part loyally to follow it. It is from a due regard for the principles laid down in the Confederation Act, ami iVom a natural, and I Uope, proper desire to protect her 86 own special interests as a Province, that British Columbia has protested against the non-fulfilment by Canada of the Railway Agreement of the Terms of Union. This Railway Agreement, while purposely and in part framed, as 1 shall here. after show, to promote the interests of British Cohnnbia, is not an agreement for the construction of a railway within merely provim.' d limits for sim|)ly provincial purposes. It is an agreement of a much more comprehensive character designed, in fact, mainly to advance, and indeed to eirect, a real Union and consolidation of the British Possessions on the Continent of North America. In the attainment of this great end, British Columbia is, owing to her present isolation, especially interested. A short reference to a few facts which led to the Union of the Province with Canada will best explain her true position. In pursuance of the general Confederation policy declared in 1867, Her Majesty's Government in 18G9 addressed a despatch to the Governor of British Columbia, expressing a desire that British Columbia should be incorporated with Canada. This despatch not only restates the princijjlcs set forth in the Conftnlera- Act, but also shows in what respect they are jjcculiarly applicable to British Columbia. The following is a quotation from the despatch : — " Her Majesty's Government," writes the Secretary of State, " anticipate that the interests of every Province of British Nortli America will be more advanced by enabling the wealth, credit, and intelligence of the whole to be brought to bear on every part, than by encouraging each in the contracted policy of taking care of itself, possibly at the expense of its neighbour. "Most especially is this true in the case of internal transit. It is evident that the establishment of a British line of communication between the Atlantic and Pacific Oceans is far more feasible by the operations of a single (Jovernnicnt responsible for the progress of both shores of the Continent, than by a bargain negotiated between separate, perhaps in some respects rival, Governments and Legislatures. The San Francisco of British North America would under these circumstances hold a greater commercial and political position than would be attainable by the capital of the isolated Colony of British Columbia. " Her Majesty's Government are aware that the distance between Ottawa and Victoria presents a real difficulty in the way of immediate Union. But tiiat very difficulty will not be without its advantages, if it renders easy communication indispensable, and forces onwards the operations which are to complete it. In any case it is an understood inconvenience, and a diminishing one, and it appears far better to accept it as a temporary drawback on the advantages of Union, than to wait for those obstacles, often more intractable, which arc sure to spring up after a neglected opportunity." Here four propositir.is are laid down : — 1st. That the Canadian Federal system is based upon a union of the " wealth, credit, and intelligence" of the several Provinces, which will, when properly applied, promote the welfare of each. 2nd. That to secure this result, "easy * « * internal * « * com- munication " through British territory " is indispensable." 3rd. That the absence of this " easy • » * internal * • * communi- cation," and "the distance between Ottawa and Victoria" constitute "a real difficulty in the way of immediate union." 4th. That this " real difficulty " will operate as a mere " temporary drawback on the advantages of union," as it will be sure to " force onwards " those " operations " necessary to remove it. It is to hasten the removal of this "temporary drawback," .and to "force onwards," in the sense of the above despatch, these necessary operations, which have been long deferred, that the Government of British Columbia have sought the intervention of Her Majesty's Government. The strengtii of the above propositions, viewed in connection witli the general confederation policy, was fully recognized by the then Government of the Dominion. They agreed with Her Majesty's Government, that without " easy communication" and " internal transit" between Ottawa and Victoria, the union of British Columbia and Canada could not be effective. Afterwards, when the whole matter was practically studied by the Government of the Dominion, it seems to have been their decided opinion that "easy communication" across the Continent could mean nothing less than a railway; and that, with respect to British Columbia, the com- 87 " temporary drawback on the advantages " of confederation, mentioned by Her Majesty's Government, should not be allowed to last for more than ten years from the date of Union. Ilcneo tlu! Dominion undertook "to secure the commencement simultaneously," on the 'JOth .Fuly, 1873, "of the construction of a railway from the Pacific towards the Rocky Mountains, and from such point as may he selected, t^asl of the Rocky Mountains, towards the Pacific, to coiuiect the seaboard of Uritisii Columbia with the railsvay system of Canada; and further, to secure the completion of such railway within ten years from" Jidy, 1871, And British Columbia, on her part, entered into certain obligations in favour of the Dominion, with regard to the public lands of the Province. The word "simultaneously," which appears in this agreement, was designedly inserted with two objects: — 1st. That Canada should commence construction works at the two most available points, and thus ensure the early and ra|)id ])r()gress of the railway; and 2ndly. That the admitted disadvantages under which British Columbia would labour until the completion of the main line shouUl to some extent bo counter- balanced by the bcnelits of early expenditure! iipon railway works in the Province. The agreement thus entered into was inserted in, and formed the most essential part of, the Terms of Union mutually accepted, in 1871, by British Columbia and Canada. These terms \*ere placed before the ])eople of the Province at a general election. They were shortly afterwards considered and formerly ajjproved by the Provincial Legislature. 'J'hey were subsequently fully debated and aecej)tc(l by ijotli Houses of the Parliament of Canada; and they were finally sanctioned and ratilied by Her IMajesty in Council. No question, therefore, could have been more thoroughly ventilated ; no conclusion more deliberately arrived at. As a strong jjractical proof of the continued interest felt by Her JNIajesty's Govern- ment in the success of the Confederation tluis esjtablishcd, the Imperial Parlia- ment, in .Inly, 1873, guaranteed a loan of 3,(i(JO,000/., to be raised by Canada mainly lor the construction, among other j)ublic works, of the Canadian Pacific Railway. It may now be useful to present to your Lordshij) a brief statement of the manner in wliich the conditions of tiie Railway Agreement have been observed. The Petition of the Government of British Columbia shows the following facts : — That the Province has fulfilled her part of the agreement; and has endea- voured to aid the Dominion Government to carry out their part; That the Dnminion (Jovcrnment have not, during the three years succeeding Union, made due ellort to complete the railway surveys in British Columbia; That the Dominion Government did not, on the liOth July, 1873, commence the "simultaneous" railway construction provided for in the agreement; That they also have hitherto failed to commence any railway construction whatsoever in the Province, though they might have commenced such construction, as they admitted in May last that they were then in a position to begin the railway. Some further circumstances connected with these matters are detailed in the Petition. It is therein shown that in June 1873 the Dominion Government selected the harbour of Esquimalt, on the Pacific, as the western terminus of the Canadian Pacific Railway ; that they at the same time decided that a portion of the main line should be " located " between this terminus and Seymour Narrows; that some weeks prior to the day named in the Agreement for the commencement of the construction of the main line, they secured from the Provincial Government "in furtherance of sueli construction "' a reserve of a valuable tract of land lying along this projected line and some 3,000 square miles in area ; that, as already stated, no construction whatsoever was or has been commenced within the Province ; tliat, the land so reserved has been thus rendered comparatively valueless to the Province, aa it has ever since been closed to settlement and to the investment of capital. Against the continuance of the above state of things, the Province, through its Legislature and its Government, from time to time entered protest after protest, but without effect, and without even eliciting any reply from the Dominion Government beyond a formal acknowledgment of the receipt of the despatch inclosing each protest. The last protest was forwarded in February of the present IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I " us no iiiiyi 1^ U4 p% 7 Fhotographk: Sciences Corporation 4^t ? i iMtST MAIN STRUT WtMTW.N.V. I4SM (7l*)l7a-4S03 Af<^ .^ ^ 8» vi. year. Subsequently the correspondence took place which is appended to the Petition. From the questions raised by this correspondence, all those which are unimportant may be uscrully eliminated. I propose, therefore (subject, perhaps, to a ttlight digression, where necessary), to connne my observations to the principal points in a letter from Mr. Edgar to myself, which contains certain proposals as repuds railway matters. The Provincial Government did not at the time understand that these proposals were officially made. They were subsequently withdrawn by the Dominion Government, and only at the moment of such withdrawal declared by them to have been made with their authority and on thnir behalf. The above letter, which thus became invested, thoueh but for a brief time, with an authoritative character, is valuable h^ the only official intimation to the Provincial Government of the policy of the present Dominion Government on the subject of the Pacific Railway. In addition to certain proposals or offers to British Cx>1umbia, the letter contains important statements, and some s^iecific admissions which favour the Provincial case. I shall discuss these offers leriatim, and endeavour to ascertain their value taken in connection with the conditions attached to them, which conditions, as I shall afterwards show, virtually amount to a surrender by Hritish Columbia of her existing railway agreement. I shall then offer some comments upon the above statements and admissions, using generally, as far as mny be, the language in which they are expressed in the letter, in order to lessen the danger on my part of any inadvertent misconstruction of their meaning. The offers made arc as follows :— No. I. The Dominion will " commence construction from Esquimalt toNanaimo immediately, and push that portion of railway on to completion within the shortest practicable time." The offer to commence work immediately at Esquimalt (which, as already stated, was selected as the western terminus of the main line by an Order of the Privy Council of Canada as far back as June 1873) is simply an offer to do what the Dominion was bound to have done in July 1873, and what they might have done at any time since, and which they admit in this letter was quite nructicablo in Ma> last The offer, your Lordship will notice, is a very liniite(l one. No definite provision is made for the extension of the main line beyond Nniiaimu (about 60 miles from Esquimalt) ; nor, indeed, is any definite period fixed for the com* pletion of even this short portion of the railway, which would take neither much time nor money to construct. The promise to complete it " in the shortest practicable time," — a promise in cflect attached to all the offers in the letter, — IS one which, slightly qualified, is implied in the present and in every other agreement of a similar character, in which no stipulation is inserted for the performance of work within a given time. The phrase is much too clastic in its meaning to admit of any definite interpretation. It may, for the present, therefore, be fairly omitted from special consideration, except as some cvider.cc of a (>:enernl intention on the part of the IXiminion Government. I must assume, what the language conveys, that the words " that portion of railway," means the Esquimalt and Nanaimo |)ortlon or part of the main railway, which is the only railway referred to in the letter. Tnis would tend to show that the position of the terminus is not questioned. No other allusion to the terminus is ma(lc in the letter. No. 2. The Dominion will prosecute and complete the surveys, and then deter- mine " the location of the line u|X)n the mainland.' This promise is reasonable on the face of it, but it is very vague. In May last th Government of the Dominion informed the Provincial Government '-Hat "there was no reason to believe that it would be possible to complete the surveys before the close of the year" 1874. The reasonable inference deduciblc from this state- ment is, obviously, that the surveys would be fiiiisiiod at the cihI u{ 1874. If a longer pcri(Kl had been deemed necessary for the purpose, the fact would have been stated. Considering the intimation thus given, and looking to the long intcrval,of time that has elapsed without any decision as to the route having been urriveorary substitute for the railway, be wholly unacceptable to the Province at large, including the farmers and producers of the " interior," in whose interests, and for whose benefit, it is alleged that the offer is especially made. For the transport of supplies, and to meet engineering necessities along the line, as railway works progress, a merely passable road is necessary, and must be con- structed ; this, in fact, is all that is rei]uired. The telegraph line (when finished) would, doubtless, be useful, but its construction is a question which should be treated inde|)cndently of the Railway Agreement. The railway is what is required, and the people of the Province would prefer seeing the time and money, which are proposed to bo ex|)cnded on the above works, appropriated to the larger and infinitely more beneficial enterprise. No. 4. When " the surveys and rood on the mainland can be completed, there shall be in each aud every year . . . during the construction of the railway, a minimum expenditure upon the works of construction within the Province of at least l,,')00,UOU dollars;" and the Dominion "will proceed from the very first with all the works of construction," on the mainland, " that their engineers could sanction." The expenditure above proposed may be considereti, first, in relation to its amount; and next, with reference to the (fate of its commencement. The amount falls far short of what British Columbia has been led to c\|>cct. The cost of the line in Britisii Columbia has been roughly estimated at 35,000,000 dollars (7,000,000/.). Assuming this estimate to be correct, and that ten years would see the completion of the railway, the Province, in accepting the Terms of Union, had a fair expectation of an average yearly expenditure within her limits of, say, 3,500,000 dollars (700,000/.). After a delay of over three years with its consequent loss to the Province, it is now pro|)osecctus of the successful Company nor in the voluminous corres[)ondencc which took place previously between the two unsuccessful Companies on the subject of their respective claims to the charter, and of their 9P ■pent— 91 propoaed amalfi^amatioii, wai any doubt expressed as to the possibility of falfilling this time obligation. Had such a doubt existed, it is fair to infer that the Dominion Oovernmont would havo requested the assistance of the Province to remove it. No such re(]uest was, however, made. With respect to the statement before your Lordship that the chartered Com- pany onsldered an extension of four years necessary to place the financial success of the enterprise beyond doubt, the Provincial Government are without any informa- tion save what is contained in, or may be inferred from, the last paragraph of section 8 of the Charter grantetl to the Compamy, which reads as follows : — ^The Company " shall complete the whole railway within ton years from the said 20th of July, 1871, unless the last-mentioned period shall bo enlarged by Act of Parliament, in which case the Company shall complete the whole railway within such extended period." Admitting, for th*) sake or argument, however, that such extension of four years was deemed necessary, the completion of the line would not have been deferred beyond 1885. The extract already quoted from the Engineer's Report, dated, as it is, about twelve months after the date of the Charter, and made after a further knowledge of the country had been acquired, tends strongly to confirm the views of the respective Companies that the completion of the railway was prac- ticable 1881 or at the furthest in 1885. The value of the above facts and correspondence is material as showing, in the first place, that it was considered all important that a definite period should be assigned for the execution of a work upon which Confcc definitely assured or, in thi; language of the letter, "be guaranteed." The Provincial Government, therefore, strongly, but respectfully, resist the contention of the Dominion Government that the commencement, prose- cution, and completion of the lino shall be left open to a doubtful and indefinite period. The further opening statement in the letter that the Dominion Government are willing " to enter into additional obligations of a definite character for the benefit of the Province " may be said to have been ilisposed of, as the nature and character of these "obligations" have, in the analysis made of the offers, been already examined. I shall, therefore, pass on to what I have termed the admissions in the letter. The most important of these is at: admission which may be inferred from the offer made by the Dominion Government to " commence railway construction immediately from Esquimalt to Nanaimo." Here it is admitted that the Dominion Government were in a position, at least in May last (the date of the letter), if not before, to have begun the railway in tiie Province. There is, and has been, there- fore, no excuse for delay in pushing forward the work. or scarcely less importance is u second admission, which reads as follows : " to a country like British Columbia it is conceded, however, to bo an important point titat not only the prom|>t and vigorous commencement, but also tito continuous prosecution of the work of construction within the limits of the Province should be guaranteed." To these two admissions may be added a third and last : the Dominion Govern- ment, while conceding that railway construction should be commenced at the seaboard of the Province, consider it most important that every effort should be made by them to push forward the construction of the railway on the mainland, in order that tlie legitimate advantages of expenditure should as far as |)Ossible faU into the hands of the farmers and producers of the interior. This is an object which the Provincial Government havo much at heart, and strongly desire to sec realized. With the clear and just sense which the Dominion Government thus appear to have of what is due to the Province; with their full appreciation, on the one hand, of the wants of the interior, and, on the other, of the requirements of the Island, it might have been expected that they would, as "a Government responsil)le for the progress of both shores of the Continent," at least have given some more dcrmito as well as some practical meaning to their expressions of solicitude for the welfare of the people of the Province. 1 have thus dwelt upon the letter at considerable length, as your Lordship's attention has been specially directed to it in connection with the present case. I N 2 » ■" ;,' A ■ * '. ■ft conceive the following to be a lynopsis of its offers and conditions : Canada will commence, on fhe Island, immediate constraction of the Railway at Esquimalt, and finish about 60 miles of it (time of completion indefinite). On the mainland, she will prosecute the surveys for the remainaer of the line, and finish these survevs (time also indefinite). She will thereafter "locate" the line falling within the Province (time also indefinite). When this can be achieved, she will make, along this "located" line, a waggon road (which the Province docs not want), and a tele- graph line (which the Province has not asked for), and will carry the latter across tne Continent (time of completion of both road and telegraph liiic indefinite). Ultimately, after the completion of the surveys and of the road, but not before, Canada will begin, and will continue railway work in the Province, and spend thereon, year by year, not less than 300,000/. (Whether this sum will include the Esquimalt lino or not is doubtful. It is the only expenditure offered. As I have shown your Lordship, Canada thus proposes to cuHurc to the Province tl^e com- pletion of the line within her limits in twenty-three and a-ha'f years, or less, dating from the unknown period at which the onered expenditure can be commenced.) Canada will do all this work "in the shortest time practicable," a phrase a shade stronger than the words " with due diligence," three words, the construction of which has given rise to much doubt, and to much painful litip^ation. In considera- tion of these ofibrs (if accepted), British Columbia slinll — 1st. abandon all claim to the completion of the Canadian Pacific Railway witliin a dcHnitc time ; and, 2ndly, shall (virtually, though not quite so expressed) surrender her right to, and interest in, the completion of about 2,000 miles of the line necessary to connect the eastern frontier with eastern Canada. Apart from the very objectionable features of the last two conditions, the indefinite character of the above proposals rriade to the Province is in marked contrast to the statement of the Dominion Government that, "to a country like British Columbia," it is important that the early completion of the railway within her limits should be ensunxl ; and, therefore, that a guarantee should be given by the Dominion Government for " its prompt commencement " (which depends on the prompt completion of the surveys), and also for '* its con- tinuous construction " (which depends on yearly specific expenditure). This concludes my remarks upon the letter. I have endeavoured to place liefore your Lordsiiip a full history of the position of British Columbia with respect to Confe be augmented i>i proiwrtion to the incksaso of population, uit may Im shown by ooch f>iiliMM|ii(tut decennial census, until the population i.mounts to 400,000, at which rate such giiiiit sliall tlu'iviiftfr remain, it lieing understood tluit the tint ccnHUs be tiiken in tiiu ycur 1K8I. 4. The Dominion will provide an efficient mail service, fortnightly, by nteani coninninicAtioii, between Victoria and 8an Francisco, and twice a week between Victoria and Oljrmpiii ; the vessels to be adapted for tlie conveyance of froiglit and passengers. 5. Canada will assume and deftny the charges fur the following serviciw : — A. Salaiy of the Lieutenant-Governor ; B. Salaries and allowances of the Judges of the Huperior Courts and the County or District Courts; 0. The charges in respect to the Department of Customs ; D. The postal and telegrapliic services ; E. Protection and encouragement of tisheries ; F. IVovisions for the militia ; G. Lighthouses, buoys, and beacons, shipwrecked crews, ((uarautiue and marine hospitals, including a murine hospital at Victoria ; H. The geological survey ; 1. The Tenitentiary ; And such further charges as may bo incident to and Lonnecl«id with the services which, \ provided by the (iovenimunt of the Dominion for tliose of Her Majesty's wirvants in the Colony whose- ]i(isitioii and emoluments derived therefrom would Ih^ afl'ccted by ]iolitical changes on the admission < if HHti.sh Cohwibia into the Dominion of Canada. 7. It is agreed that the existing ('ustoni.s tarifl' and excise duties sliall continue iii I'oiro in Itritisli Columbia until the railway from the Pacific Coast niul the system of railways in Canada aif coiuu-eted, unless the Lcgislaturo of British Coluiiiliia should Hoiuier duciilu to aeeept the Tarilt' ami l-Acise Liwh of Canada. Wlien Customs and Kxcisc duties are, at the time of the union of HritiHh (,'oluinliia witli Canada, leviable on any goods, wares, or merchandizes in Briti.sli Columbia, or in the other i'l'civinces of the Dominion, those gotxls, wares, and merchandizes iiiiiy, from and after the Union, In* ini|>orted into British Columbia from the Provinces now roni|N)siiig the Dominion, or fitiiii either of iliose Provinces into British Columbia, on proof of payment of the Customs or Kxcisc duties levial)le tliei-eon in the Province of exportation, and on payment of such further amount (if any) of Cuptoni.s or lixci.so duties as are leviable thereon in tlio Province of importation. This arrangement to have no force or effect after the assimilation of the Tariif and Excise duties of British Columbia with those of ihe Pominion. 8. British Columbia shall be entitled to be represented in the Senate by three mem'oers, and by ■iz memben in. the House of Commons The representati'~n to be increased under the provision.s of the " British Nordi America Act, 1867." 9. The influence of the Dominion Government will be used to secure the continued maintenance of the naval irtatiQa at Esquimalt ^0. %i» provistona nivinit Union. And the Uovemraent of liritiiih Columbia agree to convey to the THiminion Oovemment, in tniat, to bo appropriated in auch manner iw the Dominion (Soveniment may deem adviaahlo in furtheranoe of the construction of tho aaid milway, n Himilar extent of public lands along tliu line of railway throughout ita entire length in Uritish Columbia, not to exceed, however, twenty milea on each aide of said hue, u» may be apprupriattnl fur tiiu same }>ur|HiiH) by the l>ominion Oovemment from the public lands in tlio north-west territorivs and the l*rovmce of Manitohn. Provided that the quantity oi land which may Iw held under pre-emption right, or by Crown right within the Umita of the tract of huid in British Columbia to be so conveyed to the Dominion (iovcmment, shall be made good to the Dominion from contiguous public lands ; and provided further, that until the commenoement, within two yean, oa Hloa-said, from the date of the Union, of tlie constniction of the said railway, tiw Oovemment of British Columbia sliall not sell or alienate any further (ortions of the public lands of British Columbia in any other way than under right uf pre-emption, renveyed in aid of the constraction of the said milway, the Dominion Ouvcnmionl agree to pay to British ('olumbia, from the date of the Union, the sunk uf*l()0,000 dollars |ier annum, in hnlf-ycariy puymenta in advance. 12. Tlic Dominion novcniiuent hIiiiU guarantee the interest for ten years from the date of the completion of the works, at the mle of fi per cent, {ler annum, on such sum, not exceeding 100,000/. sterling, us mav be reciuired for tliu ctmstniction uf a tirst-class graving dock at Ksquimalt 13. The cluirge of the Indians, and the trusteeship and management of the lands reserved for their use and benctit, sliall U< niwuiiiud by t1ii> Doniiiiioii (ioverniiieiit, imd a policy as lilieral as that hitherto pursued by tiiu liritisli Columbia Uovenunent shall be continued by the Dominion Oovera- ment after the Union. To carry out such policy, tracts of land of such extttnt aa it has hitherto been the practice of the British Columbia Uovernment to appropriate for that piir{Kwe, shall from time to time be convoyed by the Lt in trust for the use and lienetit of the Iiiihans on application of tiie Dominion Oovumineut ; and in ciise cf disiigreement between the two Qoveranients re8|iecting tiiu i|uaiitity of hucIi tracts of 'and to Im; »o granted, thu matter shall be referred for tlie decision of tlio Secretary of State for th'.- ('olonies. 14. The Constitution of the Kxecutive Autliority and of tho liCgisUiture of British Columbia sluiU, subject to the provisions of "The British Nortli America Ai-t, 1867,'' continue as existing at the time of tlie Union until ultered under tiie authority of the said Act, it being at the some time undentood that the (iovunimcnt of tlie Dominion will rciulily consent to the introduction of restKinsible Oovem- ment wiien desired by tlic iiilmbitants of British (.'olum'.iiii, and it lieing likewise understood that it is thu intention of the Oovunior of Britisli Coliinibin, under tiie autliority of the Secretary of State fur the Colonies, t4) amend tlie existing Constitution of tlie Legislature by providing that a m^ority of ita mcuiljen) Hliall Im^ elective. The I'liion xiiall take effect according to tlu! fore^^roiiig terms and conditions on such day as Her MBJosty, by and witli tlic advice of Her Mrist Honourable I'rivy Council may appoint (on addresses from the liUgisiature of tlie Colony of Britisli Coliiiiiliia, and of tlie Houses of Parliament of Canada, in the tenn.s of lliu 14(>th Hcction of "Thu British North America Act, 1867"), and British Columbia may in its address sp'cify tlie electoral districts for wliicli the first election of members to '^rve in the Houae of Commons sIioU take place. I (ion of poondaj the pa>| eent. Aij beengil a{ roiUion| thousai IV of the I KUthor IJ 21 tho anyv< amoul No. 2. [36 and 37 Vict., cap. 45.] An Act to authoritt the Commi$iiotur» of Htr Majaty'x Trtatury to ffuarantee tht Payment of a Loan to be raited hi/ the Oovernment nf Canada for the Cuntlrvctum of Puliie Work* in that Country, and to Repeal the Canada Defences Loan Act, 1870. [2liU July, 1873.] WHEREAS one of the terms and conditions on which the Colony of British Columbia was admitted into union with the Dominion of Canada, by an Order in Council of the 16th day of May, one thousand eight hundred and seventy-one, was that the Government of the Dominion should secure the construction of a railway (in this Act referred to as the Pacific Railway) to connect the seaboard of British Columbia with the railway system of Canada, in manner more particularly mentioned in the Schedules to such Order : And whereas tho Government of the Dominion of Canada propoae to raise by way of loan for the purpose of the construction of the Pacific Railway, and also for the improvement and enlargement of the Canadian canals, a sum of money not exceeding eight million pounds : And whereas by an Act of the Parliament of Canada of the yoar 1868, chapter forty-one, the Governor in Council was authorized to raise by way of loon upon the guanotee of the Commiaaionew of Her Mqeaty's Tieasuiy (in this Act refened to as " the Treasuiy "). nr the pnipoM of tin oonBtttie- mmmmmum 1*0 far u tOtbfl Rritiah IneoiMlr, |towanJi >i«; and I tnut, .JIM of IraUway ^•idflof > public 'Janil lin lion ■Jent of pliinibia Ton the J of the I l^nion, I of the 1>.000/. 90 I kioB of the foitiffeatioBa thcrain meBtionad, aunu not eioMding one million on« bandied thevaaad pounda: And vhenMM by the Oanadn DofencM Loan Act, 1870, the Trauury were authorixed to guarantee the payment of the principal of mich loan and of intoreiit thereon at a rate not exceeding four per eent. And whereaH no portion of the laat-inentioned loan ha« beeri ralaod, and no auoh guarantee haa been given : And whereaa it in oxpedient to authorize tlie Tn^asurv to guaranteu a portion, not exceeding two million* flvu hundred thouwind pounight million poundii for the above-mentioned purpoaca, and to Ktwranlmt a further |iortion of the aaid loan not excttediug one mi ion one hundred thoumnd pound* in Ruljetitutiiui for a ^mniiit4>u of a loan under the C^anoda l)effinces . lan Act, 1870 : lie it therefortt enat!t4Ni by thu (jucunV Mrinuii)al and interest (ut a rate not exceeding four per cent per annum^ on all or any part of any loan misetl by the Oovemuieut of Canada fur the purpose of the construction of the Pacific Itoilwuy, and the impn>venieiil and enlargement of the Canadian canals, so tliet the total amount so guaranteed fn>ni time Ui time do not exceed three million six hundred thousand pounds. :i. The Treasury sludl not give any guiiniiit<-e under this Act unless and until provision is mode by an Act of Uie Parliament of (!aua*)Bed loan of eight million pounds: (2.) Fur charging the consiilidatud revenue fund of Canadii with the payment of the principal and interest of unv loon guaranteed by the Treusuiy under this Act, immediately after the charge of the loan f u> lime direui, and for the investment and accumiUutiun thereof, under tlieir direction, in tlic names of four trustees, numinated frum time to time, two by the Trcosury and two by tlie (iovi>minent of Canada. The Treasury may guarantee the loan in sueli |)ortions us they think tit, und befurc guaranteeing any portion of the loan after the tint, hIiuU satisfy themselvuH that *he {mrtiun of the loan previously guaranteed (or an e4|ual nmuuut of any other h)un of tliu (Suveninieiit of Canada), togetirv u itii an etiuol amount of that portion of the said loan of eight iiiillion |)4>uiul8 which is not guaranteed by the Treasury, has been or in in tlie course of Iteing 8|M!iit for the ]iur|Mi8e8 muntionntl in this Art. 4. The siiid sinking fiiiul may U; inveMtud only in sucii securities us the (!ovcrniiicnt of Canuda and the Trea-siiry from time to time iigree upon, und shall, whether invested or nut be applied from time to time, under the directiun of the Tntasiiry, in discharging tiie principal of the loan guaranteed by the Treasury under tins Act, and the interest ari.sing from such securities (including the interest accruing in res|)ect of any ]>urt of any luun discharged by means of the sinking fund), and the resulting income thereof .shall lie iiivestetl and applied as part of such sinking fund. 5. Every Act |ias.<«eil by the I'urlianient of Cuniula which in any way impairs the ]>riority of the charge upon the consolidated revenue fund of Canada created by that Parliament of the loon guaranteed under tliis Act, and the interest and sinking fund thereof, and the sums paid out of the Consolidated Fund of the United Kingdom and the interest thereon, shall, so far only as it impairs such priority, bo void, unless such Act has licen reserved for the signification of Her Alajesty's pleasure. 6. The Treasury are hcniby authorized to cause to ha issued from time to time, out of the growing produce of the Consolidated Fund of the United Kingdom, such sums of money as may at any time be required to be paid to fulfil the guarantee under this Act in respect cither of principal or interest. 7. The Treasury may from time to time certify to one of Her Majesty's Principal Secretaries cf State the amount which has been paid out of the Consolidated Fund of the United Kingdom to fulfil the guarantee under this Act, and the date of such payment ; such certificate shall be communicated to the Governor of Canada, and shall be conclusive evidence of the amount having been so paid and of the time when the same was so paid. 8. The Treasury shall cause to be prepared and laid before both Houses of Parliament a statement of any guarantee given under this Act, una an account of all sums issued out of the Consolidatecf Fund o'