I 
 
 
 i 
 
 -I 
 
 BUDGET SPEECH 
 
 DELIVERED BY 
 
 5.. l,~^ ;.■): 
 
 :?■■ 
 
 HONORABLE L. 0. TAILLON, 
 
 Premier and Treasurer of the P 
 
 IN THE 
 
 IIG[SLAT1\'E ASSEMBLY OF QUEBEC. 
 
 ON TUESDAY, 26th NOVEMBER, 1895. 
 
 QUEBEC: 
 
 PRINTED AT THE "MORNING CHRONICLE" OFFICE. 
 
 1895. 
 
 K. V -t 
 
 -■ .* - - <., 
 
BUDGET SPEECH 
 
 DELIVERED BY 
 
 HONORABLE L. 0. TAILLON, 
 
 Premier and Treasurer of the Province, 
 
 IN THE 
 
 LEGISLATIVE ASSEMBLY OF QUEBEC, 
 
 ON TUESDAY, 26th NOVEMBER, 1895. 
 
 QUEBEC: 
 
 PRINTED AT THE " MORNING CHRONICLE " OFFICE. 
 
 1895, 
 
BUDGET SPEECH 
 
 DELIVERED ITX" 
 
 HONORABLE L. 0. TAILLON, 
 
 Premier and Treasurer of the Province, 
 
 In the 
 
 LEGISLiTIVE ASSEMBLY OF QUEBEC, 
 
 ON TUESDAY, 26th NOVEMBER, 1895. 
 
 Mr. Speaker, 
 
 On the Sth December, 1893, my predecessor in office made his Budget 
 Speech. He submitted to this House his estimates for the fiscal year 1894-95. 
 We have now the Public Accounts and are able to make a comparison 
 between the estimated and the actual revenue and expenditure. There 
 j^re several differences between them in certain branches of the Public 
 Service. This is inevitable. I will mention those that are large enough 
 to merit special notice, 
 
Excess of Eeceipts over Estimates, 1894-05. 
 
 Tho revenue from law stamps, which had been estimated at $175,000, 
 amounted to s;l 2,314.(30 more than anticipated. This revenue necessarily 
 follows the movi'meiit of judicial business. 
 
 In 1880-90 it was $174,603 10 
 
 1893-04 " 184/245 00 
 
 1804-05 " , 187,314 60 . 
 
 The receipts from the Building and Jury Fund had been estimated at 
 $10,000. They amounted to $10,477.90 more than expected. This excess 
 over the estimate of a revenue which is not very variable, is due to (he col- 
 lection of arrears, notably from the city of Quebec, which paid $15,303. 
 
 From the tax on commercial corporations a revenue of $140,000 was 
 expected. It yielded $20,750.16 more than the estimated figure. The reve- 
 nue from this source should increase in the future in proportion to the 
 development of wealth in our Province. 
 
 In 1880-90 it was $130,212 7*4 
 
 1890-01 " 130,436 30 
 
 1801-02 " 137,037 88 
 
 1802-03 " 138,025 71 .. 
 
 1803-04 " 142,854 50 
 
 1804-95 " 160,756 16 
 
 The tax on successions 
 
 r 
 
 In 1892-93 produced $ 40,313 59 
 
 1803-04 " 140,823 46 
 
 1804-95 " 162,535 50 
 
 My predecessor had fixed at $40,000 the revenue that he sxpected from 
 this source for the fiscal year i894-95. His estimate was exceeded by $122,- 
 535.50. 
 
 The law which created this tax was sanctioned on the 24th June, 1892, 
 and came into force on the day of its sanction, so that the successions which 
 opened during the fiscal year 1892-93 were liable for the duties imposed. 
 
 Judging from the above figures there is then reason to believe that th? 
 revenue from this impost will be still larger in the current fiscal year than 
 in that of 1804-95, and the more so that a good number of successions, opened 
 during the latter mentioned period, have not yet, for various reasons, paid 
 
c= 
 
 the percentage imposed by law. The revenue irom this tax will increase 
 from year to year. 
 
 The remaining receipts in exce.js of estimated revenue are so small that 
 no useful purpose would be served by speaking of them. 
 
 Receipts under the Estimates. 
 
 The receipts falling short of the estimates, that deserve notice are : 
 
 Estimated Actual -r.-o' 
 
 D - , T> A Difference. 
 
 Receipts. Keceipts. 
 
 Department of Crown Lands $901,800 00 $866,032 10 $35,767 90 
 
 Quebec License Law, (net) 600,000 00 564,003 31 35,996 69 
 
 Manufacturing and Trading Li- 
 censes 250,000 00 121,932 96 128,067 04 
 
 Tax on Transfers of Real Estate ... 260,000 00 185,870 70 74,129 30 
 
 Maintenance of the Insane 40,000 00 21,848 28 18,15172 
 
 Tax on the Subsidies granted to 
 
 Railway Companies 40,000 00 6,344 68 33,655 32 
 
 When the session of our Legislature is held in Autumn, it is dilficult to 
 estimate exactly the receipts and expenses of the following fiscal year, because 
 the date is too near the end of the last one. Take for example the depart- 
 ment of Crown Lands. It is known that the receipts of this Department 
 come to a large extent from lumbering operations. The revenue of timber 
 dues for the fiscal year 1896-97, will be governed by the quantity of lumber 
 that will be cut during the winter which is about to commence. This 
 industry is very variable, and consequently all estimates upon the subject 
 are exposed to be misleading. 
 
 All that I can say of the difference between the estimates and the real 
 receipts from the Department of Crown Lands for the fiscal year 1894-95 is 
 that there is nothing special or unusual about it. 
 
 The diminution of revenue from the Quebec License Law may be 
 easily explained. The Estimates in the Budget for the fiscal year 1894-95 
 were prepared ci the end of November or commencement of December 
 
 1893, and it was subsequent to that period that a bill was submitted to the 
 Legislature, providing that for the year which commenced on the 1st May, 
 
 1894, the number of hotel and restaurant licenses in the city of Montreal 
 should be limited to four hundred and forty, and for the following year to 
 four hundred. This bill was adopted, and the revenue has suffered a 
 diminution of about $20,000 a year. 
 
f 
 
 6 
 
 Moreover, in many other localities, the municipal authorities strive to 
 diminish the number of licenses and they succeed to a great extent. 
 
 So far as manufacturing and trading: licenses are concerned, I would 
 remind you that they produced Sl-45,608.87 in 1892-93. and that dunng the 
 session of November-December, 1893, when the Legislature changed the 
 basis of the impost for the cities of Montreal and Quebec, and made other 
 amendments to the law of 1892, it was very difficult to foresee the effect 
 that this legislation would have upon the revenue. Instead of $145,608.87, 
 these licenses produced only $106,428.45 in 1893-94, and .|121,932.96 in 
 1894-95. This source of revenue offers now but little interest, since it is to 
 be suppressed. 
 
 It has been seen that the tax upon transfers of real estate has given 
 only $185,870.70, although it had been estimated by my predecessor to 
 vield !|260.000. 
 
 In 1892-93 it gave $292,001 6 
 
 o 
 
 1893-94 do 246,860 50 
 
 1894-95 do 185,870 70 
 
 In 1892-98 the tax was one and a half per cent, but by a law sanctioned 
 and put in force on the 8tb January, 1834, it was reduced to one per cent. 
 This reduction of one third, which was in operation for six months of the 
 year 1893-94 and for the whole of the year 1894-95, explains the descend- 
 ing gradation of the revenue from this source. 
 
 The business timidity which has made itself more or less felt everywhere, 
 has also had its effect upon the real estate movement. It is claimed, moreover, 
 that certain laws of this Legislature have contributed to this result. To 
 these causes I may add another. It has been reported in the newspapers and 
 elsewhere that the tax on transfers of real estate will be suppressed or re- 
 duced, and this has led to the postponement of many transactions to a later 
 date, or, at all events, of their appearance in the books of the Registry Offices. 
 
 The receipts under the estimates, amounting to $18,151.72 in the revenue 
 from payments for the maintenance of the insane, is partly explained by the 
 fact that a sum of $7,000, which was due by the city of Quebec on the 30th 
 June last, has not yet been paid, because there are unsettled accounts 
 between this city and the G-overnment. 
 
 Moreover, the difficulty here presents itself again of preparing the esti- 
 mates in October or November for a year which only commences on the 1st 
 July follovring. 
 
The revenue from the reimbursement of a percentage upon the railway 
 subsidies, provided by the law of 1890 (54 Vict , ch. 88, arts. 11, 12, 13, 14), 
 had been estimated by my predeeessor at ^40,000. 00. It has only yielded 
 $6,344.68. Actions have been instituted against several companies. In 
 defence, it was pretended that the law could not be executed because it 
 did not fix the quota of the tax. It limited itself to say that a sum not 
 exceeding the half of one per cent upon the amount of the subsidy would be 
 levied. It is true that the actions claimed only one half of one per cent. 
 However, the pretensions of the defence were maintained by the Superior 
 Court, in October, 1894. I will add that the law did not give the Execu- 
 tive the power to fix the quota to be levied. 
 
 During these proceedings in Court, most of the companies abstained 
 from paying. The sums that are included in the receipts are principally 
 composed of amounts retained by the Treasurer when paying the subsidies. 
 
 A law of last session does away with this cause of difficulty, and I hope 
 that the railway companies will now comply with the law. 
 
 Expenditure, 1894-95. 
 
 The following are the branches of the administration in which, between 
 the estimated and real expenditure, there has been a difference important 
 enough to warrant your attention : , . 
 
 The expenditure for the public debt was estimated by my 
 
 predecessor at $1,527,296 86 
 
 It V. IS only 1,486,660 62 
 
 Difference below estimate I 40,635 74 
 
 This difference is due for the greater part to the fact that in the esti- 
 mates for December, 1893, the interest on temporary loans then coctracted 
 and on those which the Province would have to contract was calculated at 
 five per cent. This was the rate which was paid at that time. But the 
 money market having become more favorable, and our credit having been 
 sufficiently improved to enable us to profit thereby, we were enabled to 
 borrow temporarily at less than five per cent. 
 
 The following are the headings under which the actual expenditure 
 has materially exceeded the estimates ; 
 
8 
 
 Estimated Actual ^^.^ 
 
 Expenditure. Expenditure, ^^n^i^e^ce. 
 
 Administration of Justice $565,940 00 $608,327 29 $ 42,387 29 
 
 Af?riculture, Colonization, etc 236,900 00 290,636 62 53,736 62 
 
 riiblic Works, extraordinary 16,300 00 152,499 01 136,199 01 
 
 Miscellaneous Services 315,700 00 336,756 01 21,056 01 
 
 The increase in the expenditure under the heading of Administration 
 of Justice is not at all surprising when the epidemic of crime which broke 
 out in 1894 and 1895 is considered. The Criminal Court terms were longer 
 and more frequent than usual, the number of prisoners increased, and in a 
 word the costs were in almost every particular heavier than in the past, in 
 this important branch of the Public Service. Let us hope that this increase 
 in crime will not be of a permanent character. 
 
 The efforts of the Government to develope the Agricultural Industry 
 are well enough known, and they are too well appreciated to leave any need 
 for me to justify the increase of expenditure which I have just mentioned 
 in connection with this department. * 
 
 The amount voted during the session of 1893-94 for extraordinary public 
 works was $16,300.00. By the Supplementary Estimates vot«d during the 
 session of 1894-95 the sum of $130,879.50 was added thereto, of which 
 $123,340.65 was for the Montreal Court House. The work of enlarging 
 this building is at an end. All the works carried out since the DeBoucher- 
 ville Government was formed have been paid for. On the previous w^orks 
 the sum of $167,234.13 is claimed by the contractor. A judgment, rendered 
 on this claim by the Superior Court, on the 6th November, instant, granted 
 him $92,296.21. We do not know whether the claimant will acquiesce in 
 the judgment, and the Government has not yet come to a decision on the 
 subject. 
 
 The difference of $21,056.01 in Miscellaneous Services is explained by the 
 fact that, after the preparation of the estimates, the Legislature passed a law 
 granting a fixed salary to registrars, and obliging them to account to the 
 Provincial Treasurer for all fees and emoluments of office received by them. 
 This law went into force on the day of its sanction, (January Sth, 1894) and 
 it was applied to the registrars of Montreal, Hochelaga and Jacques Cartier, 
 and Quebec. 
 
 I have spoken at considerable length about the difference between the 
 estimates prepared in December 1893 for the financial year 1894-95, and the 
 actual receipts and expenditure of that year. This has given me occasion 
 for certain remarks which will have their use hereafter. 
 
9 
 
 STATEMENT C. 
 
 RECEIPTS. 
 
 1890-91. 
 
 Domiaioa of Canada 
 
 Crown Lands 
 
 Law Stamps 
 
 Registration Stamps 
 
 Building and Jury Fund..., 
 
 Law Pees 
 
 Municipalities for maintenance of prisoners 
 
 Montreal Court House 
 
 Montreal Gaol 
 
 Gaol Guards, Alontreal and Quebec 
 
 Prisoners' earnings, Quebec Gaol 
 
 do do Bedford do 
 
 do do Terrebonne do 
 
 Gaol Farm, Quebec 
 
 Fines, Justice 
 
 High Constable's fees, Quebec 
 
 Licenses 
 
 Direct Taxes on Commercial Corporations 
 
 Tax on transfers of property 
 
 direct Taxes oa certain persons 
 
 Manufacturing and Trading Licenses 
 
 Duties on Successions 
 
 Percentage on fees of Public OflScers 
 
 Percentage on renewals of Mortgages... 
 
 Legislation 
 
 Lunatic Asyluo-s, Municipal Contributions 
 
 do Paying Patients 
 
 Reformatory and Industrial Schools 
 
 gitehec Olficial Gazette 
 asual Revenue 
 
 Civil Service Contributions for Pensions 
 Provincial Insurance Companies, towards 
 
 expenses of inspection 
 
 Public Works and Buildings, Rents 
 
 Railway Inspection Fees 
 
 Interest on Loans and Deposits 
 
 Premium, Discount and Exchange 
 
 Interest on price of sale, Q. M. (J. & 0. Ry 
 
 Registration Fees '. 
 
 Refunds 
 
 Quebec Fire Loan.. 
 
 Dominion of Canada, General Account... 
 
 Sales of properties in Montreal and Quebec 
 
 TRUST FUNDS, REPAYMEXTS, &c. :— 
 
 Repavraents of Advances 
 
 Teachers' Pension Fund 
 
 City of Hull Sinking Fund 
 
 Pointe h, Gatincau Sinking Fund 
 
 Council of Agriculture 
 
 Heirs and Estate F. E. Roy 
 
 Marriage License Fund 
 
 Security Deposits, Public OflScers 
 
 Aylmer Court Housr Fund 
 
 Deposit in re Julie Labbc 
 
 Reimbursement Railway Subsidies Fund... 
 
 Railway Guarantee Deposit 
 
 Arts and Manufactures Building 
 
 Municipal Loan Fund 
 
 Refunds, Special Expenditure 
 
 do Q. M. 0. & 0. Railway, &c 
 
 M, 278,952 811 
 
 742,544 62 
 
 175,972 20 
 
 17,650 90 
 
 16,598 75 
 
 4,610 82 
 
 12,214 31 
 
 1,569 19 
 
 5,115 80 
 
 1,600 00 
 
 95 25 
 
 158 05 
 
 509 21 
 
 586,206 14 
 
 139,436 39 
 
 9,983 27 
 
 490 35 
 
 5,440 08 
 
 8,033 21 
 
 105 39 
 
 11 40 
 
 24,351 26 
 
 1,991 
 
 8,309 21 
 
 440 86 
 762 17 
 
 32,.357 11 
 
 2,884 44 
 
 367,908 07 
 
 10,841 91 
 
 1891-92. 
 
 1892-93. 
 
 §1,278,952 80 
 
 684,006 98 
 
 169,128 20 
 
 17,928 90 
 
 23,638 32 
 
 10,267 92 
 
 9,499 10 
 
 3,752 71 
 
 9,492 72 
 
 1,600 00 
 
 594 93 
 
 54 00 
 
 149 02 
 
 449 27 
 
 607,989 33 
 
 137,937 88 
 
 8,017 29 
 
 122 67 
 
 10,755 27 
 
 1,104 38 
 
 75 68 
 
 24,263 43 
 3,870 26 
 7,357 53 
 
 530 55 
 924 16 
 
 §1,278,952 80 
 
 990.937 67 
 
 174,940 10 
 
 18,044 65 
 
 21,772 48 
 
 10,383 .34 
 
 8,175 15 
 
 2,037 06 
 
 1,949 88 
 
 1,600 00 
 
 173 97 
 
 44,538 81 
 
 674 02 
 
 370,140 58 
 
 30,587 14 
 
 Temporary Loans 
 
 Proceeds Loan of 1891 , 
 
 do 1893 
 
 do 1894, (London) 
 
 do do (Paris) 
 
 Cash on hand at Ist July of each year. 
 
 $3,457,144 32 
 
 2,500 00 
 
 4,758 66 
 
 140 36 
 
 6,750 00 
 1,000 00 
 
 278,620 00 
 
 $3,750,813 34 
 2,223,333 33 
 
 525,344 43 
 
 $6,499,491 10 
 
 3,458,403 85 
 
 11,321 29 
 
 1,061 51 
 
 145 07 
 
 6,696 00 
 500 00 
 
 5,675 50 
 
 1,288 90 
 3,000 00 
 4,581 48 
 1,444 00 
 
 3,494,117 60 
 1,400,000 00 
 3,707,530 00 
 
 471,852 59 
 
 $9,073,500 19 
 
 250 70 
 
 433 85 
 
 672,757 90 
 
 138,925 71 
 
 292,001 65 
 
 15,667 64 
 
 145,608 87 
 
 40,313 59 
 
 9,865 57 
 
 357 60 
 
 10,287 72 
 
 24,758 96 
 
 1,778 91 
 
 77 64 
 
 25,813 60 
 
 9,059 93 
 
 7,348 26 
 
 430 00 
 . 1,743 17 
 
 43,673 18 
 
 1,168 52 
 
 368,130 05 
 
 46,720 96 
 
 100 00 
 
 18,407 40 
 
 4,384,654 48 
 7,116 00 
 
 50.000 00 
 
 4,691 91 
 
 149 46 
 
 1893-94. 
 
 51,278,376 11 
 
 905,163 96 
 
 184,245 00 
 
 18,006 05 
 
 24,596 46 
 
 11,495 70 
 
 8,122 71 
 
 2,372 28 
 
 4,376 99 
 
 10,200 00 
 
 186 60 
 
 16 25 
 
 340 40 
 
 456 03 
 
 636' 052 34 
 
 142'854 50 
 
 246'S60 50 
 
 15'293 
 
 106)428 45 
 
 149.823 46 
 
 14.765 37 
 
 180 96 
 
 8,236 27 
 
 18,955 66 
 
 407 49 
 
 2,289 06 
 
 20,774 41 
 
 5,870 13 
 
 7,125 49 
 
 520 84 
 
 1,878 63 
 
 516 00 
 
 26,438 87 
 
 7,046 19 
 
 369,622 , 
 
 11,539 90 
 
 16,223 82 
 
 580 00 
 
 489 40 
 
 7.476 00 
 3,453 00 
 
 9,737 36 
 
 4,467,278 21 
 1,150,000 00 
 
 1,. 331,855 29 
 
 $6,940,133 50 
 
 4,258,728 56 
 1,805 05 
 
 153 99 
 
 7,470 00 
 
 1,994 38 
 
 42 76 
 
 500 00 
 
 49,732 48 
 
 4,320,427 22 
 870,000 00 
 
 3,860,073 34 
 2,742,076 73 
 
 365,355 91 
 
 $12,157,933 20 
 
 1894-95. 
 
 $1,277,799 42 
 866.032 10 
 187;314 60 
 _58^37160 
 
 12,166 84 
 9,322 05 
 3,353 28 
 4,550 47 
 2,400 00 
 192 15 
 
 20 00 
 
 130 40 
 
 ^^ 541 22 
 
 6051915 Tfir* 
 
 160,756 16 
 185,870 70 
 
 17,059 29- 
 121.932 96 
 
 ' T,34r^r9s 
 
 307 79 
 
 6,068 59 
 
 21,697 13 
 
 151 15 
 
 5,688 51 
 
 21,835 47 
 
 6,114 02 
 
 6,677 95 
 
 429 16 
 
 1,062 60 
 
 516 00 
 
 23,095 38 
 
 368,32796" 
 
 5,682 42 
 
 24,180 38 
 
 220 00 
 
 489 40 
 
 4,221.687 84 
 100,340 28 
 
 5,550 00 
 202 22 
 158 63 
 100 00 
 286 00 
 1,584 00 
 7,218 00 
 500 00 
 
 6,344 68 
 
 4.343,971 65 
 2,460.000 00 
 
 2,723 27 
 
 4,106,391 62 
 
 546,732 00 
 
 $11,459,818 44 
 
10 
 STATEMENT D. 
 
 EXPENDITURE. 
 
 1890-91. 
 
 1891-92. 
 
 1892-93. 
 
 Public Debt , .... 
 
 Legislation 
 
 Civil Government 
 
 Administratiou of Justice... 
 Public Instruction 
 
 Agriculture, Colonization 
 and Immigration 
 
 PublicWorks andBuildings 
 
 Ordinary 
 
 Extraordinary 
 
 Asylums and Charities 
 
 Miscellaneous (iiiyluding 
 pavments by Revenue Of- 
 BcerstHU of CoUectio^).. 
 
 Special Expenditure 
 
 Repayment Railway Guar- 
 antee Deposits 
 
 Advances 
 
 Trust Funds 
 
 Reimbursement Railway 
 Subsidies Fund. Costs of 
 Collection 
 
 $1,271,506 33 
 
 281,078 74 
 269,660 07 
 679,006 18 
 402,106 34 
 
 24i»,628 89 
 
 139,612 83 
 
 316,872 66 
 
 490,048 41 
 820,254 15 
 
 $1,438,443 62 
 282,264 64 
 266,324 19 
 691,788 18 
 415,4?" 11 
 
 305,102 71 
 152,903 17 
 
 422,681 59 
 
 $1,445,031 34 
 199,769 8: 
 251,908 20 
 583,409 56 
 384,960 00 
 
 201,328 17 
 
 104,528 88 
 238,264 10 
 355,725 00 
 
 1893-91. 
 
 471,649 39 425,597 76 
 551,041 88 
 
 $4,915,774 60 
 
 222,097 41 
 
 43,760 00 
 
 13,417 42 
 
 4,997,681 48 
 231,070 14 
 
 8,017 00 
 
 4,190,522 85 
 240,405 39 
 
 48,0.30 89 
 
 13,147 08 
 
 $1,437,932 67 
 207,676 77 
 256,725 24 
 548,0,38 05 
 380,760 00 
 
 1894-95 
 
 242,864 01 
 
 101,037 86 
 
 390,955 24 
 
 325,082 0« 
 
 376,874 23 
 
 $1,486,660 62 
 198,543 50 
 
 251.256 54 
 608,327 29 
 383,726 45 
 
 290,6.36 62 
 
 110.257 32 
 152,499 01 
 323,047 25 
 
 390,772 84 
 
 Railway Subsidies and Q. 
 M. 0. & 0. Railway 
 
 $5,195,049 43 
 955,620 26 
 
 Temporary Loans repaid. 
 Redemption of debt : 
 
 Loan of 1891 
 
 do 1893. 
 
 16,150,669 69 
 
 5,23G,768 62 
 
 75'',968 42 
 
 5,987,737 04 
 
 2,073,333 33 
 
 4,492,106 21 
 850,455 09 
 
 4,267,946 07 
 
 250,117 25 
 
 19,395 60 
 
 13,081 78 
 
 88 80 
 
 4,195,727 44 
 
 260,223 01 
 30,550 00 
 17,390 2« 
 
 4,550,629 50 
 975,426 69 
 
 A.dd : Payment of Warrants 
 outstanding at 30th June, 
 1890,1891,1892,1893,1894, 
 
 Deduct : Unpaid Warrants 
 outstanding a; 30th June, 
 1891, 1892, 1893, 1894,1895 
 
 $6,150,669 69 
 
 112,571 45 
 1$ 6,263,241 14 
 
 235,602 63 
 
 $6,027,638 51 
 
 8,061,070 37 
 235,602 63 
 
 8,296,673 00 
 555,028 10 
 
 5,342,561 30 
 1,000,000 00 
 
 6,342,661 .30 
 555.028 10 
 
 5,526,056 19 
 2,070,000 00 
 
 3,860,000 00 
 
 2,742 W** 
 
 4,506,633 31 
 854,519 92 
 
 11,456,056 19 
 31.3,811 81 
 
 7,741,644 90 
 
 6,897,589 40 
 313,811 81 
 
 11,769,868 00 
 158,666 80 
 
 6,583,777 59 
 
 11,611,201 20 
 
 =1 
 
 5,361,153 23 
 1,500,000 00 
 
 4,106,461 00 
 
 10,967,614 23 
 
 158,666 80 
 11,126,281 03 
 
 209,495 96 
 
 10,916,785 07 
 
n 
 
 General Statement, 1894-95. 
 
 The statement for the financial year 1894-95 may be summarized as 
 follows : 
 
 Ordinary receipts, including tne amount received from the 
 
 taxes imposed in 1892 (#487,398.45) !|4,22l,687 84 
 
 Ordinary expenses (including $77,866.66 for redemption of 
 
 the obligations of the loan of 1880) H043,228 43 
 
 I 178,459 41 
 
 "With regard to the total expenditure, leaving aside what was paid for 
 railways, namely : 
 
 Subsidies to different companies $ 848,910 95 
 
 . Q. M. O. &0., construction 5,608 97 
 
 and including 12,742.60 which were spent for the collection of the tax upon 
 railway subsidies, (by the law of 1890), they amount to 14,506,633.31. 
 
 The total receipts, including $6,344.68, levied on railway subsidies and 
 $100,340.28 resulting from the sale of the property known under the name 
 of Chateau Ramesay, or old Normal School, amounted to.... $4,343,971 65 
 
 Total Expenditure. $4,506,633 31 
 
 Total Receipts $4,343,971 65 
 
 $ 162,661 66 
 
 I may remark, en pissanf., that in the sum for total expenditure, there is 
 included the sum of $25,000.00 loaned to the nuns who have taken charge 
 of Beaupart Asylum. This is not, properly speaking, an item of expendi- 
 ture, and it would be only right and proper to strike out this amount from 
 the $162,661,66, which would reduce the difference between the receipts 
 and the total expenditure for the financial year 1894-95 to $137,661,66. 
 
 These figures are an unanswerable reply to those who accuse us of for- 
 saking that prudence which characterized our administration in 1892-93. 
 
12 
 
 Consider the appended Statement D ; compare the expenditure of 
 1894-9") with that of 1892-93 ; leave out of the question the railway guaran- 
 tee deposits, the advances, the trust funds, the railway subsidies and the 
 loans, matters which have no connection with the comparison which I pro- 
 pose, and what do you find ? 
 
 1894-95 Expenditure |4,19.>,727 44 
 
 1892-93 Expenditure 4,190,522 85 
 
 / 
 
 5,204 59 
 
 And remember that in 1894-95 we had to pay more than in 1892-93, 
 for the folio winj? : . 
 
 •o 
 
 Public Debt $41,629 28 
 
 Agriculture " 89,308 45 
 
 Salaries and contingent expenses of registrars in virtue 
 
 of law sanctioned January 8th, 1894 25,630 67 
 
 It is true that this law brings in more than enough to enable the 
 Government to meet this expenditure ; it is also true that everthing con- 
 sidered, it gives a profit of from ten to twelve thousand dollars a year, but 
 it is eciually true that there is a new expenditure of #25,030.67 under the 
 head of " Miscellaneous Services." 
 
 Notw^ithstanding this fact, however, Miscellaneous Services cost |34,- 
 824.92 less in 1894-95 than in 1892-93. 
 
 What is there left in this comparison to support the accusations of 
 extravagance or - ren of mere carelessness? Is it the increase of $24,017.73 
 in the expenditure under " Administration of Justice" ? In order to arrive 
 at this conclusion it would be necessary to ignore what has occurred in 
 the Courts of Justice during the i^ast two years. 
 
 Take now Statement C, and compare the receipts of 1894-95 with those 
 of 1892-93. Examining this statement in the light of the explanations which 
 I gave in the first part of my speech, where I compared the estimates with 
 the actual receipts and expenditure for 1894-95, what cause of reproach can 
 be found against us ? I defy anybody to lind a solitary one We have given 
 the same attention to the collection of revenue as to the guarding of expen- 
 diture. 
 
13 
 
 1895-96. 
 
 In my fniancial expose of the 21st December last, the receipts were esti- 
 mated at ;§4,255,490.42, for the fiscal year 189o-9G. 
 
 Subsequently, the Government made arran2:ements with the ('anadian 
 Pacific Railway Company, which reduced to $333,004.00 (instead of 
 $370,000.00) the interest that we shall receive this year on the price of sale 
 of the Q. M. 0. .Sc C). Railway. 
 
 On the other hand, I expect : 
 
 From the Department of Crown Lands.. $1,000,000.00 instead of $936,050.00. 
 From the Tax on Commercial Corpora- 
 tions : 160,000.00 instead of 140,000.00. 
 
 From the Tax on Successions 165,000.00 instead of 150,000.00. 
 
 In a word, I count, for the current fiscal year upon a revenue of 
 $4,317,513.42. 
 
 The ordinary expenditure of the current fiscal year will be $4,013,008 58 
 
 If to the above be added the Extraordinary Expenses, namely : 
 
 For Public Works $ 58,486 34 
 
 , Railway Guarantee Deposits 268,235 62 
 
 326,721 96 
 
 "We have a total expense of $4,339,730 54 
 
 There are also $800,000 that we may be called to pay for Railway 
 Subsidies. But this is, so to say, a separate account. This sum will in- 
 crease the expenditure to $5,139,730.54. 
 
 If then my conjectures are realized the financial year 1895-96 will 
 result as follows : — 
 
 Ordinary receipts $4,317,513 42 
 
 Ordinary expenditure 4,013,008 58 
 
 Surplus $ 304,504 84 
 
 Total expenditure (less railway subsidies and the 
 Berger claim for works to Montreal Court 
 House under Mercier administration, now in 
 dispute) $4,339,730 54 
 
 Receipts 4,317,513 42 
 
 Difference $ 22,217 12 
 
14 
 
 STATEMEl^ E. 
 
 ESTIMATED RECEIPTS 1896-97. 
 
 DoMiNiox OF Caxada : 
 
 Subsidy under B. N. A. Act 8959,252 80 
 
 Interest on Trust Funds 71 ,385 94 
 
 Special Subsidy, 47 Vict., chap. 4 127,460 68 
 
 Interest on Railway Subsidies under 47 Vict., chap. 8 119,700 00 '^ 
 
 1,277,799 42 
 
 Interest : 
 
 Interest on price of sjile Q. M. O. & O. Railway 308,000 00 
 
 Interest on Loans and Deposits 20,000 00 
 
 328,000 00 
 
 Crown Lands 954,000 00 
 
 Administration ok Justice : 
 
 Law Stamps 185,000 00 
 
 Law Fees 12,000 00 
 
 Building and Jury Fund. (Net revenue) 12,000 00 
 
 Maintenance of Prisoners 9,000 00 
 
 Gaol Guards, Montreal and Quebec 4,000 00 
 
 Fines 500 00 
 
 Montreal Gaol '. 4,000 00 
 
 Other Gaols — Prisoners' earnings 200 00 
 
 Montreal Court House 3,000 00 
 
 High Constable's Fees, Quebec 500 00 
 
 230,200 00 
 
 Registration Stamps (including fees of Registrars, Montreal and 
 
 Quebec 60,000 00 
 
 Licenses. (Net Revenue) 575,000 00 
 
 Direct Taxes on Commercial Corporations 160,000 00 
 
 Taxes on Transfers of Property 200,000 00 
 
 Duties on Successi<ms 170,000 00 
 
 Percentage on Fees of Pubiic Officers 8,000 00 
 
 Percentage on renewals of Mortgages 200 00 
 
 Maintenance of Insane 52,500 00 
 
 Maintenance of Inmates of Industrial and Reformatory Schools 17,500 00 
 
 Legislation 8,000 00 
 
 Official Gazette ' 21,500 00 
 
 Rents of Public Buildmgs, &c 1,000 00 
 
 Casual Revenue 6,000 00 
 
 Provincial Insurance Companies — Contributions 600 00 
 
 Contributions to Pensions, Civil Service 6,500 00 
 
 Premium Discount and Exchange 1,000 00 
 
 * . 
 
 •' 4,077,699 42 
 
 Reimbursement Railway Subsidies 30,000 00 
 
 $4,107,699 42 
 
15 
 
 STATEMENT F. 
 
 ESTIMATED EXPENDITURE 1896-97. 
 
 t eta. 
 
 Public Debt 1,523,202 56 
 
 Legislation 194,688 95 
 
 Civil Government , ..... " 251,244 22 
 
 Administration of Justice, &c 504,540 00 
 
 Publiclnstruction, &c 379,260 00 
 
 Agriculture, Immigration and Colonization 251,800 00 
 
 Public Works and Buildings : 
 
 Ordinary $109,860 76 
 
 Extraordinary 19,228 00 
 
 120,088 76 ■ 
 
 Charities, including Lunatic Asylums 330,438 25 
 
 Miscellaneous Service 341,809 00 
 
 Repayment of Railway Guarantee Deposits 276,522 46 
 
 Aylmer Court House Fund 1,574 00 
 
 4,235,159 20 
 
 RaUway Subsidies and Q. M. O. & ©.Railway. . . = 700,290 25 
 
 $4,935,449 45 
 
16 
 
 1896-97. 
 
 Revenue. — I put the revenue for next year at $4,107,699.42. 
 
 "We will not receive more than $308,000.00 interest upon the price of 
 sale of the Q. M. O. & O., owing to the arrangements which we had to make 
 last winter with the Canadian Pacific Railway Company. 
 
 It is probable that the Crown Lands Department may not contriHute 
 as much to the Treasury as this year. I estimate it at $954,000.00 instead 
 of $1,000,000.00. ...... 
 
 The manufacturers' and business licenses, which brought $121,932.96 
 in 1894-95, will not be levied in 1896-97. 
 
 The same is the case with the direct taxes on certain persons which in 
 1894-95 brought in $17,059 29. 
 
 As partial compensation for this diminution we will have a slight in- 
 crease of revenue in some branches of the Public Service, and hardly any 
 extraordinary expenditure in the Public Works Department ($10,228.00.) 
 
 The ordinary expenditure, which was only $4,043,228.43 in 1894-95, 
 and which is estimated at $4,013,008.58 for the current year, is only put 
 at $3,946:834.74 for the year 1896-97, 
 
 The extraordinary expenditure, exclusive of Railway Subsidies, which 
 w^as $412,722.02 in 1894-95, and which is calculated at $320,721.96 for the 
 current year, will only be $288,324.46 for 1896-97. • - 
 
 Summing up, my forecast for 1396-97 is as follows : 
 
 Ordinary Receipts $4,107,699 42 
 
 Ordinary Expenditure 8,946,834 74 
 
 Surplus $ 160,864 68 
 
 Total Expenditure, (less Railway Subsidies).. $4,235,159 20 
 Receipts 4,107,699 42 
 
 Difference I..... $ 127,459 78 
 
n 
 
 It will be seen that apart from the sums which must be paid annually 
 for railway g:uarantee deposits. (|276,522.40 for the year 1896-97), we still 
 have equilibrium in the finances, even without levying either the taxes on 
 manufactures and business or the direct taxes on certain persons. 
 
 I will tell you, in a moment, how what remains due upon cne guar- 
 antee deposits made by certain railways will have to be reimbursed. 
 
 Judging by the estimates for 189G-97, there is reason to believe that the 
 Government will be able again, at the end of that fiscal year, to invite its 
 judges to glance over the accounts of preceding years, and to say whether 
 it has been faithful to its programme, or if it has digressed from it, as some 
 have been pleased to say, with a persistence that has nothing in common 
 ■with the spirit of justice and good faith. 
 
18 
 
 APPROXIMATE STATEMENT of Liabilities and 
 
 LIABILITIES. 
 
 Funded Debt outstanding. 
 
 Temporary Loans , 
 
 Trust Deposits 
 
 $ 
 
 cts 
 
 Railway Company Deposits to meet guaran- 
 teed interest on bonds 
 
 Outstanding AVarrants. 
 
 Railway money subsidies authorized but not 
 yet earned 
 
 Railway land subsidies converted into 
 money subsidies, authorized but not yet 
 earned. — Balance on iirst 35 cts. per acre... 
 
 Railway land subsidies which may be con- 
 verted into money subsidies. — 165,000 acres 
 at 70 cts. per acre = $115,500.00. First 35 
 cts. per acre payable as work is done 
 
 703,430 39 
 
 291,745 SQ 
 
 57,750 00 
 
 Loss on Exchange Bank deposit. 
 Quebec Court House bonds 
 
 $ cts. 
 
 29,345,402 67 
 
 1,460,000 00 
 
 260,858 52 
 
 901,292 78 
 209,495 96 
 
 1,052,926 25 
 
 25,218 75 
 
 200,000 00 
 
 $33,545,194 93 
 
la 
 
 Assets of the Province of Quebec at ?.Oth June, 1895. 
 
 ASSETS. 
 
 Part of price Q. M. O.&O Ry. deposited in 
 
 Banks 
 
 do 
 
 do 
 
 invested in 
 $29,000 Prov- 
 ince of Quebec 
 Bonds, Loan of 
 1878, bought 
 at 109 p. c... 
 
 do 
 
 do 
 
 do 
 
 do 
 
 invested in 
 Quebec Court 
 House Bonds 
 
 invested in 
 City of Quebec 
 Bonds , 
 
 I cts. 
 353,390 00 
 
 81,610 00 
 
 200,000 00 
 
 15,000 00 
 Balance of price Q. M. O. cSc O. Railway unpaid. 7,000,000 00 
 
 Railway grant under Dominion Act 47 Vic- 
 toria, chapter 8 
 
 Cash in Banks., 
 
 Claim against Hon. Thomas McGreevey. 
 
 Cost of Jacques Cartier School, Montreal, to 
 be repaid from sale of property 
 
 Advances to various parties. 
 
 Quebec Court House tax, under 45 Victoria, 
 chapter 26, and 48 Victoria, chapter 16 
 
 Excess of Liabilities over Assets at 30th June, 
 1895 
 
 cts. 
 
 7,600,000 00 
 
 2,394,000 00 
 
 548,033 37 
 
 100,000 00 
 
 6,153 60 
 176,457 89 
 
 200,000 00 
 
 11,019,644 86 
 22,525,550 07 
 
 $33,545,194 93 
 
20 
 
 Liabilities and Assets, 30th JuNt, 180.5. 
 
 The principal chanf^es that have takeu place in this statement since 
 
 the 30th June, 1894, are the following : 
 
 » 
 
 The funded debt has been increased during the year by the difference 
 between the face value of the debentures of the Paris loan of 1894 and 
 those of the loan of 1893, which the former were issued to redeem, amount- 
 ing to $1,226,015.00, and reduced by $77,860.66 the amount of the de- 
 bentures of the loan of 1880 redeemed, making the net increase $1,148,- 
 648.34. 
 
 AVith respect to the increase of the nominal capital of the debt caused 
 by the issue of a three per cent loan to pay off the loan made in Paris in 
 1891 and renewed in 1893, it is but right to notice the difference between 
 the interest that wc are now paying and that whi^h we should have paid 
 if we had issued four per cent securities. This difference would have been 
 in proportion to the price that we should have obtained for the four per 
 cent debentures. It is very doubtful whether at the time that the Province 
 contracted to accept 77 net for its three per ce.its, it could huv^e obtained 
 99 net for its four per cents. I therefore believe that I am within the 
 mark in estimating the annual saving in interest at $7,000. 
 
 The temporary loans have been increased |960,000, borrowed for the 
 payment of Eailway Subsidies and the extraordinary expenditure on public 
 buildings. • 
 
 The liability for Railway Subsidies has been diminished by an amount 
 of $815,308.57, and there are now supposed to be no more claims against 
 the Q. M. O. & O. Railway of any importance. 
 
 The Railway Guarantee Deposits have been reduced by the sum of 
 $260,223.01 paid during the year. 
 
 The outstanding "Warrants are $50,829.16 more than they were at the 
 same date in 1894, and the Cash in Banks $3,698.63 less. 
 
 The Chateau Ramesay property has been sold, and $100,340.28 of the 
 price received, and there remains $6,153.60 still to be collected. According 
 to the Act 35 Vict., Cap. 14 (1871), and to a resolution adopted by this 
 House on the 21st December 1875, the price of this property was appro- 
 priated to reimburse the Treasury, as far as it would go, for the amount ex- 
 pended for the purchase of a lot of land and the erection of a building for the 
 Jacques-Cartier Normal School at Montreal. 
 
» 
 
 With regard to this Statement, I can only repeat what has been said 
 before, viz : that it is only an approximate one and cannot be made com- 
 plete until matters are settled with thy Dominion and Ontario, 
 
 Dominion AND Provincial Arbitration. 
 
 In my Budget Spei'ch of last year I said that the expenses incurred in 
 this Arbitration have been large and will continue to be so until its comple- 
 tion, but that it should be borne in mind how numerous and important 
 the matters are that are under discussion, and I called attention to the large 
 amount of work and research that must attach to .he examination and 
 settlement of claims and accounts which have remained unsettled since 
 Confederation. 
 
 I have thought it desirable to have a memorandum of the circumstan- 
 ces which have necessitated this Arbitration, of the questions that have to 
 be decided by it, and of the progress of the work to the present time, to be 
 prepared by Mr. Machin, the Assistant Provincial Treasurer, who has taken 
 a part in all the Conferences that have been held since 1882, whose memo- 
 randa, made from time to time, on the different matters irvolvtd, and 
 w^hoso assistance during the Arbitration have, I am assured bv the Counsel 
 for the Province, been of the greatest possible service to them in their 
 difficult task in which they have been engaged. 
 
 We have, I regret to say, lost the services of Mr. Grirouard, by his well 
 merited promotion to the Bench of the Supreme Court, but some of the 
 most difficult cases have had the benefit of his talent and labour, and have 
 been argued by him, and Mr. Hall, our present Counsel, has made these 
 matters a study for the past three years. 
 
 This memorandum I will communicate to the House within two or 
 three days, and it will be attached to my Speech. It will be seen from 
 it that the results, so far, have been extremely satisfactory as regards the 
 interest of our Province. 
 
 The House may be assured that every effort will be made on our part 
 to bring this Arbitra'ion to a speedy termination, and that no exertion will 
 be wanting to protect the rights and interests of Quebec. - 
 
22 
 
 THE PAST-THE!' FUTURE. 
 
 When the Hon. Mr. de Boucherville took over the administration]|[of 
 the affairs of the Province in December, 1891, the consolidated debt 
 amounted to over twenty-five millions of dollars, including the loan of 
 $4,000,000.00 negotiated in France, in 1891, by our predecessors, for a term 
 of two years ; the floating debt, apart from certain Petitions of Right and 
 other claims,'aggregated|^over eight millions of dollars. 
 
 The expenses had increased in an alarming manner from year to year 
 since 1887-88. I may add, en passant, that nothing gave any promise that 
 those who had so imprudently entered upon this course would turn away 
 from it. On the contrary everything pointed towards their continuance in 
 the direction of the abyss. Against this floating debt our predecessors had 
 only left a law authorizing a loan of 110,000,000.00 ; (this was not sufficient, 
 for they had already, in virtue of this law, borrowed four millions, so that 
 there only remained six millions to borrow, and the liabilities exceeded 
 eight millions,) and to meet the annual deficit which exceeded §1,700,000.00 
 they left nothing. 
 
 The reputation of the Province, which had suffered, principally in 
 England, from the law concerning the conversion of the Public Debt, which 
 the Mercier Government caused this Legislature to pass in 1888, was still 
 more gravely compromised by revelations which were rightly termed 
 scandalous. 
 
 OUR TASK. 
 
 To redeem the credit of the Province, to diminish expenses, to'create 
 new taxes, to borrow, with an impaired exchequer, in order to carry out the 
 engagements bequeathed to us by our predecessors, this alone was a very 
 heavy task. 
 
 Yet it was not all. 
 
 The arrangements to be made for the care of ^the insane in Beauport 
 Asylum, the carrying out of the contracts, as well as the laws passed in 
 1882 on the subject of the sale of the^North Shore Railway, were to add still 
 more to the difficulties of our position. 
 
 The settling ol the accounts between the Governments of the Dominion, 
 of Ontario and of our Province, could be no longer delayed and was a work, 
 of the difficulty of which no conception could be formed before it was under- 
 taken. 
 
 I must not omit to mention in this enumeration, the large number of 
 claims resulting from contracts, which to us ^appeared illegal, and which 
 
23 
 
 were certainly contrary to the public interest. There were even some 
 which seemed made expressly for purposes of corruption. Should we settle 
 amicably, or permit suit by petition of right, or should wp rather per- 
 emptorily reject the claims? We are of opinion that we exercised our dis- 
 cretion wisely in the manner in which we treated each case. 
 
 HAVE WE ACCOMPLISHED OUR TASK ? 
 
 TO REDUCE THE EXPENSES 
 
 after five years of prodigality was not an easy matter. We however 
 succeeded to a great extent. By means of retrenchment we succeeded in. 
 spending about $700,000.00 a yeo,r less than our predecessors. 
 
 How often have we been reproached with not being men of progress, 
 with neglecting our friends, and with amassing the means for our adver- 
 saries to spend freely, if later on they should be called to succeed us. I am 
 astonished that there should be such a lack of public spirit. 
 
 The G-overument is asked for all manner of things without a thought 
 being given to the state of the finances, without a thought as to what is 
 in the general interest and what is not, and without any distinction be- 
 tween worKs which should be left to the initiative of individuals or muni- 
 cipalities, and those which should receive Grovernment aid. 
 
 TAXES 
 
 are never popular. We knew that they would be brought up against us 
 and that the first to bring them up would be those who made them neces- 
 sary. But must we not honor the engagements of the Province ? In order 
 to re-establish our credit must we not bring about an equilibrium in our 
 finances ? Had we not also to provide for the interest on the public debt 
 which our adversaries had so gaily increased, and for a host of exigencies, 
 the creation of which they might have avoided in their administration of 
 public aifairs, and which it is now so difficult to suppress ? 
 
 Our opponents say that the taxes were unnecessary. 
 
 There was only one other resort, namely, to reduce the expenses to the 
 figure ot the then existing revenue. 
 
 This was impossible. How could they have done it who had deficits 
 in round figures, as follows : 
 
 1889-90 $1,380,569 18 
 
 1890-91 1,722,756 09 
 
 1891-92 1,742,65103 
 
It is true that they governed during only the half of the latter fiscal 
 year, but the Estimates which they had prepared, the difficulty of reducing 
 the expenses after they had been so large, their antecedents, everything 
 tells us that if they had remained in power up to the end of that year, and 
 if they had not been, so to say, interdicted by the Lieutenant-Governor in 
 the last months of their administration, the deficit would have been even 
 more considerable. 
 
 What then would they have done in our position ? 
 
 The Opposition is not obliged to advise the Crown, but there is one 
 fact which imposes this duty upon our adversaries, although not required 
 by the constitution. It is the fact that the situation which I have just 
 pictured was created by them. Since they did not tell the people how they 
 intended to re-establish equilibrium in the finances when they were in 
 power, and when it was their duty to have done so, let them tell us now, 
 otherwise they have no chance of being considered serious men. 
 
 I repeat the question, what would our opponents have done ? 
 
 They would no doubt have increased the expenses. 
 
 They certainly would not have reduced them. 
 
 They would then have had to impose $700,000.00 more taxes than we 
 had to. 
 
 In any case those who are not blinded by party spirit admit that new 
 revenues were required. 
 
 That is what we have been told by all the business men who have 
 made representations to us concerning our system of taxation. 
 
 They did not pretend that we could dispense with taxes. On the 
 contrary they admitted that we had to augment the revenue and they 
 orsly discussed the mode to be adopted for doing so. 
 
 What taxes then were we to choose ? 
 
 We have not to examine the relative merits and demerits of direct and 
 indii ot taxes, because the Constitution permits us to impose direct taxes 
 only. 
 
 Sir Cornewall Lewis has said : — " The art of a Chancellor of the 
 " Exchequer consists in raising a maximum of money and a minimum of 
 " discontent." 
 
 If Sir Cornewall Lewis had known the Province of Quebec, he would 
 have been speedily convinced of the difficulty of this art. 
 
 In 1892, we decided to impose 
 
 A license on manufactures and commerce ; 
 
 A direct tax on certain persons ; * * 
 
 A tax on transfers of property ; 
 
 A tax upon successions. 
 
 .•i*«,iSfe. 
 
m 
 
 The Opposition has criticized these taxes. To hare suggested others 
 would have been too much loyalty for them. They preferred to say that 
 none at all were needed. 
 
 But since, in the face of annual deficits, no one can seriously deny the 
 necessity of new sources of revenue, I have the right to ask our opponents 
 what taxes they would have imposed and which they would have main- 
 tained to-day. "Would they have imposed a tax upon landed property all 
 over the Province ? Perhaps so, for on November 13th, 1890, when the 
 Mercier Government was preparing to ask the Legislature for the power ot 
 making a new loan of ten millions of dollars, one of its friends, Mr. Le- 
 mieux, put the following question : — 
 
 " What "was the total value in 1880 of taxable property in the Province 
 of Quebec, according to the valuation rolls transmitted, according to law, to 
 the Provincial Secretary ?" 
 
 Reply by Hon. Mr. Langelier : — " The reports of my department show : 
 
 $180,197,001.00 for rural municipalities over and above thirteen 
 municipalities which have not reported. 
 
 83,014,99,5.00 for the cities of Qnebec, Montreal and Three Rivers. 
 
 $263,2 11,996.00 Total for the Province. 
 
 "Was it mere curiosity that actuated Mr. Lemieux in putting this 
 question ? "Was it simply to satisfy the curiosity of a private member that 
 Mr. Langelier, a Cabinet Minister, took the trouble of preparing a reply ? 
 
 There is only one interpretation to be put upon all this. It was that 
 the Mercier Government and the party which supported it were thinking 
 of imposmg a general tax upon landed property. 
 
 The Province does not want this tax. That was proved in 1893 by a 
 vote in this House. The Hon. Mr. Morris had made the following motion : 
 
 "That in the opinion of this House the taxes imposed on the mercantile 
 community in this Province should be immediately abolished, and replaced 
 by a tax of one mill on the dollar of all taxable real estate in the Province ; 
 the valuation to be based on the assessment rolls of cities and munici- 
 palities, and that the said tax be collected by the proper municipal oificers 
 thereof" 
 
 On the sixth of December, the House rejected this proposal, which was 
 supported by the votes of Messrs. Auge, Carbray, Kennedy, Martiueau, 
 Morris, Parizeau and Villeneuve, all of whom represented commercial centres. 
 
 LICENSES ON MANUFACTURES AND COMMERCE. 
 
 DIRECT TAXES ON CERTAIN PERSONS. 
 
 I will not stop to justify the tax on manufactures and commerce or 
 the direct tax on certain persons. Every one knows that we only imposed 
 
26 
 
 them with the greatest repugnance and with a promise to abolish them at 
 the earliest opportunity. This pledge we have redeemed this year. A law 
 withdrawing these licences and taxes has just been voted by both Houses. 
 I hope that this good work will encourage the interested parties to pay 
 w^hat they owe lor the current and past years. It will be readily under- 
 stood that the Government must insist upon this, for the double reason that 
 it needs this revenue and that it is only just tow^ards those who have paid 
 up. 
 
 TAX ON TRANSFERS OF PROPERTY. 
 
 • 
 
 Coming to the tax upon transfers of property, I quote the words of Paul 
 Leroy-Beaulieu. In his remarkable work, entitled : The Science of Fi- 
 nances," he says that this tax is one of the earliest recognized by the civiliz- 
 ed world, justifying it as follows : "Another motive still better justifies in 
 principle the registration and stamp duties. It is the State which is the 
 guarantee of all social transactions. It is thanks to its support, its police, its 
 courts, that property can be safely transferred from the dying father to the 
 surviving son, from the selling proprietor to the acquiring capitalist. It 
 is thanks to it also that contracts are respected, and it is therefore natural 
 and just that the State collect on the amount an equivalent to an insurance 
 premium. This fee is the price of a service rendered, of a service of the 
 highest order which the State alone can render. The contracting parties in 
 the case of a transaction, the heirs in the case of a succession, pay it for its 
 guarantee, and the eventual aid which it renders them in the execution of 
 a contract or in the enjoyment of an inheritance." 
 
 To illustrate the author's idea, I may mention that the Province spent 
 over a million dollars upon the completion of the cadastre which regulates 
 the division of landed property. Why should not all this wealth be called 
 upon to contribute towards the public revenue and to indemnify the State 
 for all that she spends upon its protection ? ,-» 
 
 Leroy-Beaulieu says that in order to be acceptable this tax must be 
 light, as well as the duty upon successions, but he wrote in a country where 
 the powers of the Government are not limited in the choice of a system of 
 taxation. When the State has the right to supplement its revenue by in- 
 direct taxes, such as those upon articles of consumption, it can follow the 
 advice of economists. I have just said that the case is otherwise in our Pro- 
 vince. 
 
 At all events, we have proved that we are not altogether in disaccord 
 with Leroy-Beaulieu, for it was with this tax that we began the reduction. 
 As you know, we reduced it by a third, by a law sanctioned on January 
 8th, 1894. 
 
 It is to be hoped i\i:*i with wise administration, it will be possible to 
 still further lighten it in the reasonably early future. 
 
it 
 
 Although, for the reasons already given, we have been unable to con- 
 form as much as we would have liked to, to the opinion of Leroy-Beau- 
 lieu, I will continue to quote him : 
 
 " Thus, in principle, the duties on registration and stamps justify them- 
 selves, when they are light, in a most indisputable manner. They are also 
 recommended by practical considerations. They afford a means of collect- 
 ing large sums of money at little cost and often without irritating the tax- 
 payer. In all civilized countries, the product of registration and stamp 
 dues forms one of the principal resources of the Budget. 
 
 " But in the registration and stamp duties there is more service ren- 
 dered in exchange tor the tax is in this case more real and more evident. 
 These duties, in fact, have a character of social interest. The State, by re- 
 gistering acts and keeping the registers in which they are inscribed, pre- 
 serves a record of the tenor of the transactions, and assures their easy proof, 
 if the original acts should be lost. These transactions thus have a certain 
 date, a character of incontestable authenticity, and that publicity which is in 
 many cases necessary and almost always useful. It is a fart beyond denial 
 that transactions are infinitely easier and more secure in a country which has 
 a registration service than in those which have none. The registers make 
 searches for property more quickly satisfied, and contestations less numer- 
 ous. They serve literally towards contracting parties and their representa- 
 tives as an insurance. In these cases the sum paid to the State is not only a 
 tax, it is a remuneration regularly due. Still it would be only right that 
 this remuneration be not exaggerated, and no ona can deny that generally 
 in France it is not." 
 
 THE SUCCESSION TAX. 
 
 t 
 
 As to the duties on successions they are found in nearly all countries. 
 Our neighbors of Ontario had recourse to them before us, although their 
 finances were less burdened than our's. Of all the taxes levied this one has 
 been the least criticised. Here is what the author, already cited, says of it : 
 
 " Let us examine one by one some of the principal registration taxes. 
 One of the most important and most legitimate, if kept within proper limits, 
 is that concerning donations between living persons, or successions. This 
 tax has existed for all time and in all countries, although sometimes suc- 
 cessions in a direct line have been exempted." 
 
 REDUCTION. 
 
 After having reduced by one-third the duties upon transfers of property 
 in 180-1, vre hastened to suppress the licenses on manufactures and com- 
 merce and the direct taxes upon certain persons. Our adversaries, let me 
 say, did not receive this law as they should. Thfy took advantage of it to 
 attempt to make those who were not affected by these licences and taxes 
 
28 " . ■■■ - '^ 
 
 ■». 
 
 believe that their suppression was an injustice to them. There would 
 be some reason in their language if other classes of persons remained tax- 
 ed but this is not the case. Manufactures, commerce, the liberal professions 
 and the other occupations mentioned in the law of 1892 alone were taxed. 
 They might have complained that all individuals and branches of business 
 were not equally subject to the tax. In freeing them from it we have only 
 out them on the same footing as the others. 
 
 Will any one pretend that the tax upon transfers of property and upon 
 successions does not equally touch all classes of society ? This manifestly 
 would be an error. 
 
 Telling the rural population that it is ill-treatod by the Government 
 while that of the cities is sparod is an old trick of the Liberals. The ofhcial 
 statistics however show the contrary to be the case. * 
 
 If our oppoTiCnts were willing to take the responsibility of expressing 
 an opinion they would say perhaps that we should make a slight reduction 
 on all the taxes and suppress none completely. 
 
 The policy which we have adopted is in keeping with the principle 
 preached by celebrated economists. The one already quoted says : 
 
 " When a State has an excess of receipts over expenditure and wishes 
 to remit a part of the tax-payers' public charges it may be asked whether 
 it is better to completely suppress one tax than to reduce a great number. 
 Governments and Parliaments generallv incline towards the latter solution 
 of the difficulty, becaiise, being solicited by so many and such diverse in- 
 terests, they \vish to content the greatest possible number. That might be 
 a good piece of parliamentary policy, but financially and economically it is 
 unwise. Experience proves that slight reductions of taxes only very 
 moderately beneiit the tax-payer." 
 
 It will be seen that we are in good company. 
 
 ARRANGEMENTS WITH THE CANADIAN PACIFIC RAILWAY. 
 
 When the Government sold the Q. M. 0. & O. Railway, commonly called 
 the North Shore, it w^as agreed that the purchasers should have at any time 
 the right of paying the price of sale. iJuring the same session a law was 
 passed specially devoting the price of sale to the payment of the loans of 
 1874, 1876 and 1878. The purchasers w^ere to pay live per cent interest. 
 Since then the rate of interest has gradually lowered on the money market. 
 At diii'erent times the Canadian Pacific Railway intimated its inten tion 
 of paying to the Government the $7,000,000 which it owed. It was to its 
 interest to do so the moment it could get interest at less than five per cent. 
 On .Tune 19th, 1894. the company gave notice that it would pay up in six 
 months. We found ourselves in a position involving no little anxiety, 
 being exposed to receive so large a sum without having the right to era- 
 ploy "it except to meet loans falling due only in 1904, 1900 and 1908. We 
 
 8 
 
 , , X •i*^tK^mmi\t\. 
 
29 
 
 could not think of redeeming these obligations before they fall duo. They 
 were quoted at a premium, and those who held them would not have failed 
 to be exacting- when they found themselves masters of the situation. 
 
 I knew that North American railway shares were i^enerally low and 
 that the Canadian Pacific was not without suffering therefrom. But this 
 might be only a passing depression. Moreover the C. P. II. Company, if it 
 wished to borrow ^7,000,000. 00 to pay us, could do so more easily than if it 
 was a question of increasing the debt, the more so that it would give those 
 who lent the money first class security, that is to say, the vendor's privilege 
 upon the North Shore Railway. Under the circumstances we thought that it 
 would be quite justifiable on our part to consent to a reduction of the rate of 
 interest on the price of sale, on condition that the company should make 
 its payments correspond with the maturing of the loans. The company 
 first offered four per cent, but I did not see fit to accept. It then again gave 
 noticf of payment. We afterwards agreed that the interest should remain 
 at Hve per cent for one year, being afterwards reduced to four per cent, the 
 difference between the two rates being spread over all the time from the 
 date of agreement till the payments should be due. In view of the ex- 
 penses which we were forced to undergo, under the head of extraordinary 
 public works, I asked that the payment of the month of August, 189."), be 
 made at the rate of five per cent, and that the $35,000.00 difference of in- 
 terest for six other months be spread over the rest of the time. This pro- 
 position was accepted and this is why the company pays us interest at the 
 rate of four and one-twentieth per cent. The annual interest is reduced 
 then by $t)6,")00.00. This is a disadvantage for us, but in return we 
 are no longer exposed to receiving $7,000,000.00 at a time when wo could 
 not advantageously employ it. The comiiany is to pay us according as we 
 need the money to meet our loans. 
 
 HOW TO ESTABLISH AN EQUILIBRIUM. 
 
 In future our annual receipts will be diminished by the loss of 
 $66,.")00.0C on the interest which the Canadian Pacil.'c pays us. In 1804-95 
 the licenses on manufactures and commerce brougi "^ us -^121, 932.9(3, and 
 the direct taxes on certain persons $17,059.29. Her3 . \on is $205,492.25 in 
 all which we received last year but will not receive after the current fiscal 
 year. 
 
 How shall we meet the difficulty ? 
 
 Out of the 110,000,000.00 loan voted in 1890, three millions yet remain 
 to be borrowed. We w^ill reimburse by means of this loan what romain.s 
 due on the capitals of railway guarantee deposits. This is only reasonable. 
 When the Mercier Q-overnment used these deposits they were borrowing. 
 Why should we reimburse this loan out of the annual revenue if we can 
 avoid doing so ? Why should we place upon the present generation all 
 the burden of a debt contracted for enterprises which will benefit future 
 generations ? By the plan proposed, this debt will be added to the funded 
 debt, and w^e will only pay the interest instead of paying the principal such 
 as $276,522.46, $287,700.98, etc. 
 
m 
 
 These sums only represent the capital. The interest is included in the 
 amount paid as interest on the public debt. For the current year 
 the amount is $36,971.04. It forms part of the ordinary expenditure. 
 
 I may add that these guarantee deposits are included in the floating debt* 
 which according to the law of 1890, should be wiped out by the loan. 
 
 Here is what we will have to pay after the current year : 
 
 1896-97 1276,522 46 
 
 1897-98 287,700 98 
 
 1898-99 124,807 51 
 
 1899-1900 33,07122 
 
 1722,102 17 
 Remaining in Bank 124,626 47 
 
 $597,475 70 • 
 
 If any one asks why the present G-overnment did not propose earlier 
 to take from the loan voted in 1890 the sums required to pay for the cost of 
 the extraordinary and public works and to reimburse the guarantee deposits, 
 I reply that the ten millions would not have been sufficient, and that we 
 must not think of voting a new loan. "We could not do otherwise than 
 take out of the ordinary revenue the means to meet the extraordinary ex- 
 penditure. 
 
 To-day, our position is different. The railway subsidies have been re- 
 duced and will probably be even further reduced. Only a comparatively 
 moderate sum remains to be paid for extraordinary public works, and the 
 debt on guarantee deposits has been diminished. 
 
 "What more is necessary to have equilibrium in the finances ? 
 
 In the first place, we must not undertake extraordinary public works 
 whose cost cannot be paid out of the ordinary revenue, without urgent 
 necessity. 
 
 We must not grant new subsidies for railway enterprises. 
 
 "We must not revive subsidies which are defunct, and we must refuse, 
 as far as the public interest will permit, be it well understood, to transfer 
 subsidies already voted, from one enterprise to another. 
 
 The policy which the Government finds itself compelled to follow 
 does not only mean that W3 must not increase the public debt, and reduce it 
 each time the occasion presents itself, but it also means that it will be 
 necessary to practice the most rigid economy. 
 
 In 1892 and following years we economized according to certain 
 rules which we made to govern ourselves by. Shortly afterwards we were 
 asked to replace in the estimates grants which had been suppressed. "We 
 could not do so. "We could not moreover place in them similar grants to 
 those which had been suppressed, and we only fill vacancies in the Civil 
 Service when necessary. 
 
m 
 
 In order to condemn this policy you would have to be in a position to 
 say that the people would consent to be taxed to aid enterprises, or to 
 keep up expenses which are not absolutely necessary. Who would dare to 
 make such a statement ? 
 
 Happily we have the means of developing the resources with which 
 Providence has favored cur country. Agriculture, colonization, mining, 
 manufactures, commerce can prosper if we only add a little of the energy 
 which characterized our predecessors to the experience which we have, to 
 facilitv of communication, and to all those other advantajres which we have 
 procured during the last few years. 
 
 LOANS. 
 
 It is known that in 1890 the Mercier Government obtained the neces- 
 sary authority to borrow $10,000,000.00, in order to meet the floating debt, 
 and the existing claims as well as the railway subsidies and the additional 
 debt likely to result from different projects. In 1891 it negotiated a loan of 
 $4,000,000.00 on the Parisian money market. The circumstances were not 
 favorable and the Government had to confine itself to temporary arrange- 
 ments. The loan was therefore made for two years. In 1893 we had to meet 
 the loan but our credit had been impaired, principally since 1891. A most 
 serious crisis had just declared itself in the Australasian Colonies. To state 
 that we were again obliged to return to the Paris money market only a few 
 days before the 1891 loan fell due is to say that we were at the mercy of 
 our creditors. In oar difficulty we also confined ourselves to temporary 
 arrangements for a new term of two years. The conditions imposed upon 
 us were onerous, but it would be unjust to hold us responsible for them. 
 
 In the early part of March, 1894, we negotiated a loan of $3,000,000.00, 
 in virtue of the law of 1891, upon the English money market, but could only 
 get 94 for four per cent debentures. Again we suffered from difficulties 
 left us by our predecessors. 
 
 Is it to be wondered at that we could only get 94 in London wh.iu the 
 Bank of Montreal was not even disposed to give us 93. 
 
 The agreement which we made with the capitalists of Paris, obliged 
 us to prepare for the end of December, 1894, the means of meeting this loan. 
 Remembering our anxiety in 1893 we decided to enter upon the negotiations 
 for this end as soon as the loan of $3,000,000.00 made in the winter of 
 1894 should be completed. 
 
 Our credit gradually improved, but there was still too much prejudice 
 against the Province, and there was moreover a combination of circumstances 
 which were altogether unfavourable to us. The arrangements which I made 
 
32 
 
 were as favourable as could be desired in the months of July and August, 
 when the conditions of the loan were agreed upon. 
 
 Since that time our position has very much improved ; to such an ex" 
 tent indeed that in the month of May last we were able to float a temporary 
 ' an of a million and a half of dollars, for one year, at a little under three and 
 three-quarters per cent. 
 
 BEAUPORT ASYLUM. 
 
 More than half a century ago, citizens who may well claim the title ol 
 philanthropist.s, established at Beauport an asylum consecrated to the care of 
 the insane. The Goverment, which was not itself ready to found such an 
 establishment, encouraged the promoters in their enterprise. It made cer- 
 tain arrangements with them which have been periodically renewed. For 
 a long time past, the contracts between the Government and the proprietors 
 of Beauport Asylum have provoked violent criticism, both within and with- 
 out the Legislature. It was known that if the Government confided the care 
 of this clsss of unfortunates to a religious community, it would improve 
 their condition, while making a considerable economy. But the ditiiculty 
 came from the moral obligations, so to say, that the Government had con- 
 tracted towards those who had founded and maintained this establishment. 
 They had invested in it all their fortune. From the moment that it ceased 
 to be employed lor its original purpose, it would become valueless. It was 
 incumbent then upon the Government, in making arrangements with a re- 
 ligious community, to protect the proprietors from ruin. The task was a 
 delicate one, and it was easy to foresee that the adversaries of the Adminis- 
 tration would seize the opportunity to attack it. The former proprietors 
 sold their establishment to the Grey Nuns of Quebec. The Government 
 intervened in the c^.>^';ract and assumed certain responsibilities toward 
 both vendors and purihasers. Certainly, however, these responsibilities 
 involve no danger for the Government. Thanks to these arrangements, the 
 reduction in the cost of this service may be estimated at ^30,000 a year, for 
 the Government paid to the old proprietors |132 per head for the care of the 
 insane, while to the new ones it pays but $100. The average number of 
 patients is a thousand. 
 
 The asylum is maintained in a manner thoroughly satisfactory. I may 
 even say that its management is admirable. So that, while spending 
 much less upon this service, than formerly, the Government has improved, 
 in a rao.st marked manner, the condition of those whom duty requires 
 them to protect. . . * 
 
 CONCLUSION. 
 
 I have directed the attention of the House to the task which we had to 
 accomplish when we assumed the administration of public affairs. I have 
 indicated several of the matters that we have had to settle, and I have recalled 
 
88 
 
 the manner in which we have settled them. There remains only the ques- 
 tion of the Arbitration, to which I have already made a reference. It will 
 be admitted that we have not remained idle and that we have arrived at 
 the b>?st possible results from a situation so encompassed with difficulties. 
 If we had placed our personal interest, the success of our party, a regard for 
 our popularity, above the public interest, we would in more than one in- 
 stance have followed a different line of conduct from that whith we have 
 adopted. The same principle will guide us in the future. "VYe have care- 
 fully studied the situation and the wants of our Province. We know them 
 and will fulfill our duty as we understand it ; and if the people, when they 
 will be called upon to judge us, declare themselves satisfied with our work, 
 we shall take advantage of it to still further develop our policy. If, on the 
 contrary, the people condemn us, I am convinced that they will suffer by it 
 more than we shall ; for there are but two political parties in this Province, 
 that which has created disorder in our finances and that which has restored 
 them. For our part, sustained by the testimony of a good conscience, we 
 could easily support ourselves even under so unjust and so uncalled for a 
 condemnation. 
 
14 
 
 STATEMENT A 
 
 Year. Payments. Eeceipts, Deficit. 
 
 1889-90 $4,969,489.68 $3,588,920.50 $1380,569.18 
 
 1890-91.... 5,li)5,049.43 3,750,813.34 1,444,236.09 
 
 1891-95; .5,236,768.62 3,494,117.60 1,742,651.02 
 
 1892-93..:...... 4,492, .'.06.21 4,467,278.f;l * 24,828.00 
 
 1893-94 4,550,625 50 4,320,427.1^2 230,202.28 
 
 1894-96 4,506,633.31 4,343,971.35 162,661.66 
 
 la this table the receipts of 1890-01 include the sum of $278,520.00 of 
 railway guarantee deposits. Without that, the deficit would have been 
 $1,722,756.09. 
 
 The amounts included in receipts, coming from new sources of revenue 
 created in 1892, are as follows : 
 
 1892-93 $493,591 75 
 
 1893-94 518,406 11 
 
 1894-96 487,398 45 
 
PAYMENTS: 
 
 35 
 
 STATEMENT B 
 
 1889-90. 
 
 Ordinary Expenditure, (including 
 
 $62,133.95 for Bonds of Loan, 1880, 
 
 redeemed) $3,881,672 95 
 
 Special Expenditure 818,583 51 
 
 Advances and Payments of Trust 
 
 Funds 14,163 98 
 
 Kepayment — Railway Guarantee De- 
 posits 255,069 24 
 
 RECEIPTS : 
 
 Ordinary Revenue $3,540,607 07 
 
 Receipts from sale of pro- 
 perty $30,000 00 
 
 Trust Funds, Deposits and 
 Receipts on advances... 18,313 43 
 
 48,313 43 
 
 $4,969,489 68 
 
 3,588,920 50 
 
 PAYMENTS : 
 
 Deficit $1,380,569 18 
 
 1890-91 
 
 Ordinarv Expenditure (including 
 $64',970 for Bonds of Loan of 1880, 
 redeemed) $4,095,520 45 
 
 Special Expenditure 820,254 15 
 
 Repayment — Railway Guarantee De- 
 posits 222,097 41 
 
 Advances and Payments of Trust 
 
 Funds 57,177 42 
 
 RECEIPTS : 
 
 Ordinary Revenue $3,457,144 32 
 
 Trust Funds, Deposits and 
 
 Receipts on advances... 15,149 02 
 Railway Guarantee De- 
 posits 278,520 00 
 
 — = 293,669 02 
 
 6,195,049 43 
 
 3,750,813 34 
 
 Deficit. $1,444,236 09 
 
36 
 
 1891-9^. 
 
 PAYMENTS: ' - • 
 
 Ordinary Expenditure (includinc: $68,- 
 12 1.IG for Bonds of Loan of 1880, 
 redeemed) 14,446,639 60 
 
 Specitil Expenditure 551,04188 
 
 Payments of Trust Funds 8,017 00 
 
 Repayment —Railway Guarantee De- 
 posits '. 231,070 14 
 
 RECEIPTS : 
 
 Ordinary Revenue $3,458,403 85 
 
 Trust Funds, Deposits and Receipts on 
 
 Advances 19,723 87 
 
 Refunds on Special Expenditure . 8,870 38 
 
 Tax on Railway Subsidies 7,119 50 
 
 $5,236,768 62 
 
 3,494,117 60 
 
 PAYMENTS 
 
 Deficit $1,742,651 02 
 
 1892-93. 
 
 Ordinary Expenditure (including $71,053.33 for Bonds 
 
 of Loan of 1880. redeemed) $3,952,258 75 
 
 Extraordinary Expenditure (Public Buildings) 238,264 10 
 
 Payments on Trust Deposits 13,147 08 
 
 Loans to Sulferers by Windstorms 48,030 89 
 
 Repayment — Railway Guarantee Deposits ..,. 240,405 39 
 
 $4,492,106 21 
 
 RECEIPTS: ; 
 
 Ordinary Revenue $3,891,062 73 
 
 do ' New Taxes... 493,591 75 
 
 Receipts from Sales of 
 
 Property 7,116 00 
 
 Trust Fund Deposits... 15,770 37 
 
 Receipts on Advances.. 50,000 00 
 
 Tax on Railway Sub- 
 sidies 9,737 36 
 
 $4,384,654 48 
 
 82,623 73 
 
 4,467,278 21 
 
 Deficit $24,828 00 
 
37 
 
 1893-94. 
 
 PAYMENTS : 
 
 Ordinary Expenditure (including $73,973. 33 for Bonds 
 
 of Loan of 1880, redee^ied) $3,876,990 83 
 
 Extraordinary Expenditure (Public Buildings) 390,955 24 
 
 Payments on Trust Deposits 13,081 78 
 
 Loan — Sisters of Charity, Beauport Asylum 19,395 60 
 
 Repayment— Railway Guarantee Deposits 250,117 25 
 
 Costs of Collection Tax on Railway Subsidies 88 80 
 
 RECEIPTS: $4,550,629 50 
 
 Ordinary Revenue 13,740,322 45 
 
 do New Taxes 518,406 11 
 
 $4,258,728 50 
 
 Receipts from Sales of Pro- 
 
 perty 1,805 05 
 
 Trust Fund Deposits 10,161 13 
 
 Tax on Railway Subsidies .. 49,732 48 
 
 61,698 66 
 4,320,427 22 
 
 ■ y • . Deficit :.... $280,202 28 
 
 1894-95. 
 
 PAYMENTS: 
 
 Ordinary Expenditure (including $77,866.66 for Bonds 
 
 of Loan of 1880, redeemed) $4,043,228 43 
 
 Extraordinary Expenditure (Public Buildings) 146,756 60 
 
 Expenses in re sale of Chateau Ramezay Property ...... 5.742 41 
 
 Payments on Trust Deposits ' 17,390 26 
 
 Special Deposit iu re Confirmation of Title to Property 
 
 Q. M. O. & O. Railway 5,550 00 
 
 Loan — Sisters of Charity, Beauport Asylum 25,000 GO 
 
 Repayment — Railway Guarantee Deposits 260,223 01 
 
 Costs of Collection Tax on Railway Subsidies 2,742 60 
 
 RECEIPTS: $4,506,633 31 
 
 Ordinary Revenue. $3,734,289 39 
 
 do New Taxes 487,398 45 
 
 4,221,687 84 
 
 Receipts from Sales of Pro- 
 perty ChAteau Ramezay 100,340 28 
 
 Trust Fund Deposits 10,048 85 ' . 
 
 Return of Deposit in re Con- 
 firmation of Title to Pro- 
 perty Q. M. O. & O. Ry. 5,550 00 
 Tax on Railway Subsidies... 6,344 68 
 
 122,283 81 
 
 4.343,971 65 
 
 Deficit $162,661 66 
 
MEMORANDUM 
 
 By the Assistant-Provincial Treasurer, Quebec, respecting the Arbitration 
 for the settlement of accounts between the Dominion of Canada and the 
 late Province of Canada, now represented by Ontario and Quebec, and 
 between the said two Provinces, prepared at the request of the Honor- 
 able the Provincial Treasurer. 
 
^ 
 
 MEMORANDUM by the Assistant-Provincial Treasurer, Quebec, res- 
 pecting the Arbitration lor the sottloraont of accounts between the 
 Dominion of Canada and the late Province of Canada, now represented 
 by Ontario and Quebec, and between the said two Provinces. 
 
 At Confederation, under the provisions of the British North America 
 Act, p,ll stocks, cash, bankers' balances and securities belonging to each of 
 the existing Provinces became the property of the Dominion of Canada, and 
 the Dominion became liable for the debts and liabilities of each Province ; 
 but Ontario and Quebec conjointly were made liable to the Dominion for 
 the amount by which the debt of the late Pronnce of Canada exceeded at 
 the Union, SG2,oOO,000.00, and were to ho charged interest at the rate of five 
 per cent thereon, which interest the Dominion was to deduct each six 
 months from the subsidies payable to the l*rovinces under the Act 
 
 Certain assets enumerated in the fourth schedule of the Act, were de- 
 clared to be the property of Ontario and Quebec conjointly. The division 
 of the debts, credits, liabilities, properties and assets of Upper and Lower 
 Canada was to be referred to three Arbitrators, one chosen by Ontario, one 
 by Quebec, and one by the Dominion, the last not to be a resident either in 
 Ontario or Quebec. 
 
 Statements of the liabilities and assets of the late Province of Canada, 
 as at that time ascertained, prepared in conformity with certain principles 
 established and with the conclusions arrived at in a Conference of members 
 of the three Governments, held at Montreal in July, 1.S()9, and approved 
 by an Order of the Privy Council of Canada of the 17th August, 1S09, were 
 submitted to the three Arbitrators appointed in accordance with the provi- 
 sions of the said Act. , 
 
 These Arbitrators met first in August, 1S69, and after numerous sessions 
 and hearings of Counsel, a judgment was rendered by the Arbitrators 
 appointed by the Dominion and Ontario, on the 2Sth May, 1S70, establish- 
 ing the principles on which the surplus debt and the joint assets should bo 
 divided. The Arbitrator appointed by Quebec dissented from the judgment, 
 and on the 9th July, 1S70, withdrew from the Arbitration and resigned his 
 position as Arbitrator, his reason being that he considered this judgment 
 erroneous and unjust. The remaining two Arbitrators made their final 
 award on the 3rd September, 1S70, notwithstanding a protest against their 
 proceeding by the Government of Quebec, and adjudged that of the excess 
 of debt of the Province of Canada, over .>$62,:'.OO.o6o.OO, Ontario should 
 assume and pay such a proportion as |1>,80S,728.02 bears to $18,')87,.")20.o7 
 and Quebec should assume and pay such a proportion as §8,778,792.")o 
 
])oars to S1<'^to87,o20.57. This is approximately five-ninths for Ontario and 
 lour-niuths lor Quebec. They also divided and apportioned the assets and 
 special and tr i.-t fnnds which were the property of Ontario and Quebec con- 
 jointly. The v.'uebec Government protested against the award, and nothing 
 was done respt<- ting a settlement for some years. Later on correspondence 
 was exchanged between the Governments of Ontario and Quebec, and a 
 special case was prepared and submitted in 1878 to the Law Lords of the 
 Privy Council in England, who decided that the Arbitrator appointed by 
 Quebec had not the right to resign nor the Quebec Government the right to 
 revoke his appointment, that the remaining two Arbitrators could legally 
 proceed, hear the case and make a final award, and that the award of the 
 3rd September, 1870, is valid as regards any objection in the special case, 
 save as ailected by the Dominion Act therein setforth. 
 
 All the books and papers of the late Province of Canada remained in 
 the possession of the Dominion Government, which, after Confederation, 
 made payments and collected moneys in connection with the affairs of the 
 late Province, and charged or credited these and other items to the account 
 of the .same, without the concurrence of the two Provinces to such charges 
 or credits. Consequently, at the beginning of the year 1873, the excess of 
 debt of the late Province of Canada, for which Ontario and Quebec were 
 jointly liable, amounted, according to the account of the Dominion, to 
 $10,.10G,088.84. 
 
 In 1873 an Act was passed by the Dominion to readjust the amounts 
 payable to and chargeable against the several Provinces of Canada by the 
 Dominion Government so far as they depend upon the debt with which 
 they respectively entered the Union. 
 
 By this Act, the $62,500,000.00 of the debt of the late Province of Canada, 
 which under the British North America Act was assumed by the Dominion 
 at Confederation, was increased to $73,006,088.84, and the amount of the 
 debts of the other Provinces assumed by the Dominion were correspondingly 
 increased. 
 
 Besides the account of the late Province of Canada, there were the in- 
 dividual accounts of each of the Provinces of Ontario and Quebec with the 
 Dominion, comprising the subsidies payable half-yearly under the B. N. A. 
 Act, the Trust and Special Funds and the -'nterest thereon, also the pay- 
 ments by the Dominion on account of the same and the proportion of in- 
 terest on the excess of debt chargeable to each Province. Moreover, as the 
 Provinces had not at Confederation fully organized their Departments, the 
 Dominion acted for them during the first year, making payments on account 
 of the various services and collections on account of their revenues, and 
 charging or crediting such payments and receipts. 
 
 The first statemeuls of accounts were sent by the Dominion to the Pro- 
 vinces in September, 1877. These were incomplete. The Province of 
 Quebec account shewed an apparent credit balance of |l,347,91.j.00, but the 
 account was misleading, as it did not include the interest on the excess of 
 
$ 
 
 debt. It was on account of this apparent balanct; that Quebec obtaint^d pay- 
 ments of $000,000.00 and 8125,000.00 in 1878 and 1879 respectively, althoug-h 
 the Dominion caUed attention to the fact that the balance was subject te 
 revision. 
 
 After the decision of the Privy Council, in 1878, respecting- the award of 
 1870, correspondence was carried on from time to time with a view to net- 
 ting a meeting for the adjustment of the accounts, but nothing wa.s done 
 until November 1882, when the Treasurers of Ontario and Quebec met at 
 Ottawa, and submitted a Memorandum to the Minister of Finance, request- 
 ing that a statement of accounts between the Dominion and the Provinces 
 should be prepared, and indicating the form in which they were of opinion 
 that the accounts should be stated, with the balances struck yearly and in- 
 terest allowed or chc rged half-yearly. 
 
 The Dominion Government in consequence had the accounts of the 
 Dominion with the late Province of Canada, and with each of the Provinces 
 to the 30th June, 1882, prepared, and they were submitted to Parliament at 
 its next session. By these accounts, which were brought down to 1st July, 
 1882, the Province of Quebec appeared as owing an amount of 88S'.i,.')U.21 
 after crediting the account with over 1600,000.00 of Funds hold by the 
 Dominion, which had not been included in the accounts of 1877. 
 
 The Provinces refused to accept these accounts as correct, and contended 
 that proper effect had not been given to the operation of the Act of 1873, 
 under which they claimed that the $10,506,088.84 additional debt assumed 
 by the Dominion should have been credited at Confederation instead of at 
 the date of the Act of 1873, and that the amounts charged for interest on the 
 excess of debt and retained from the subsidies between 1867 and 1873 should 
 be reduced accordingly. They also objected to some important charges in 
 the accounts, notably the arrears and capitalization of increased annuities to 
 the Indians from whose tribes large territories had been obtained under 
 treaties. 
 
 In April, 1884, an Act was passed by the Dominion to readjust the 
 yearly subsidies allowed to the several Provinces of the Dominion. 
 
 By the terms of this Act. the total amount of the half-yearly payments 
 which would have been made on account of the subsidies of Ontario and 
 Quebec jointly, if the $10,506,088 84 above mentioned had been assumed as 
 at 1st July 1867, together with interest thereon, were capitalized at an 
 amount of .15,397,503.13, and the yearly subsidies of Ontario and Quebec 
 jointly were increased by a sum equal to five per cent on such capitalized 
 amount. The subsidies of all the other Provinces were increased in like 
 proportion by this Act. 
 
 In October, 1884, meetings were held in Ottawa, at which the forms of 
 the accounts, the question of interest on the excess of debt of the late 
 Province of Canada, the claim against the Provinces for the increased 
 
Indian annuitios and various other items were discussed, and as a result a 
 recast was made of the accounts, and delivered in January, 1SS6. In these 
 accounts the principal of the Special and Trust Funds and the capital of the 
 amount mentioned in the Act of 1SS4, on which the increased subsidy was 
 based, were credited, and as Quebec's proportion of.th(^latter wassi2,540,2l3.61, 
 the credit l)alance in the Quebec account was .sl.S6t,504.44, but. as the Indian 
 claims had been transferred to a Suspense account, Quebec stood debited in 
 that account with !|409,<t01.12. 
 
 In June. 1888, in consequence of representations by the Treasurers, 
 another recast of the accounts was made, in which the |;10,")0(>,088.84, as- 
 sumed by the Dominion in 18T-), was credited as at the date of 1st July, 
 18t!7, thus doinu: away with any interest on the i^xcess of debt, and also in 
 ellect anniillinfr the provisions of the Act of 1884 as ret^arded the increase 
 of the yearly subsidies. In this recast the Province of Quebec account 
 showed a credit balance at June 30th, 1888, of i& 1.074,400. 35, which 
 included the principal of all the Special and Trust Funds amounting to 
 §013,1>07.00. 
 
 In October, 1888, the representatives of the Dominion and the Prov- 
 inces met at Ottawa, and agreed u\)on the principles on which the accounts 
 were to be finally prepared, with the exception of the c^uestion of interest on 
 the individual i.ccounts of the Provi)ices, the latter claiming compound 
 interest. A large number of the items of the accounts were gone over and 
 admitted or reserved for proof, and it looked as if a settlement might be 
 arrived at, but, on the third day, the Dominion Government refiised to allow 
 compound interest on the Province accounts, and the representatives of the 
 Provinces decided to go no further in the settlement. 
 
 C3^ 
 
 A lengthy correspondence resulted and, in December, 1889, the Prov- 
 inces offered as a reasonable comj^romise, that instead of compound interest 
 on the yearly debit and credit balances of the Province accounts, the half- 
 yearly interest on the Trust Funds belonging to the Provinces, held by the 
 JDominion, should be placed to the c^-edit of the accounts at the end of each 
 half-year, and simple interest at five per cent be then computed on all the 
 items debit and credit, and that if the Dominion would not accept this 
 proposal, that the question of interest on these accounts should be loft to 
 Arbitration. 
 
 In June, 1890, the Dominion Government refused to accept these pro- 
 posals, and stated that it seemed preferable that the questions should be 
 submitted to the adjudication of the ordinary tribunals. 
 
 It will be seen from the foregoing that these accounts had been stated 
 in four diti'erent forms, based upon different applications of the three Acts, 
 that items both credit and debit were not ranged under the same accounts 
 or were excluded from one ^.>t of accounts and included in another set. In 
 two of these interest was compounded, in one simple interest was calculated, 
 and in one there were no interest computations. There were differences of 
 
opinion respecting the items making up the debt of the late Province of 
 Canada as presented in the Dominion accounts, respecting the rate of in- 
 terest and the method of computing it both on the accounts and the Special 
 and Trust Funds held by the Dominion, and respecting the effect of the 
 British North America Act and the Acts of 1873 and 1884. There were 
 also serious differences of opinion respecting certain charges entered»against 
 the respective Provinces and also respecting the proportional obligations 
 or rights of Ontario and Quebec in regard of claims against or properties 
 belonging to the old Province. 
 
 In November, 1800, at a Conference of representatives of the Govern- 
 ments of the Dominion, of Ontario and of Quebec, held at Toronto, it was 
 proposed that all questions arising out of, or incident to the accounts, should 
 be referred to Arbitrators. A Memorandum was then prepared and signed, 
 containing the terms and conditions of the proposed Arbitration, which 
 was subsequently approved of by Orders in Council of each Government, 
 and at the succeeding sessions of each of the three Legislatures, an Act, 
 identical in terms, was passed, providing for the appointment of Arbitrators 
 and the reference to them of such questions as the three Governments 
 should mutuallv agree to submit ; but from various causes the nominations 
 were not finally confirmed until December, 1892. The Arbitrators ap- 
 pointed and who are now acting are, for the Dominion, the Honorable G. 
 W. Burbidge, Judge of the Exchequer Court of the Dominion ; for Ontario, 
 the Honorable John A. Boyd, Chancellor of the Chancery Division of the 
 High Court of Justice for Ontario, and for Quebec, the Honorable Sir 
 Louis Napoleon Casault, Chief Justice of the Superior Court, Quebec. 
 
 The first meeting of the Arbitrators was held in Ottawa, on the 17th 
 March, 1893, for organization and for determining the course of procedure 
 to be adopted, Mr. D. Girouard, Q.C., and the Hon. J. S. Hall, Q.C., then 
 Provincial Treasurer, appeared as Counsel for Quebec. 
 
 The first Agreement of Submission was made on the 10th April, 1893, 
 recommended by Messrs. W. D. Hogg, Q.C., Counsel for the Dominion ; 
 Aemilius Irving, Q.C, Counsel for Ontario, and D. Girouard, Q. C, Counsel 
 for Quebec, and was approved by Orders in Council of the three Govern- 
 ments. By it the following questions were referred to the Arbitrators for 
 determination and award : 
 
 1. All questions relating to or incident to the accounts between the Do- 
 minion and the Provinces of Ontario and Quebec, and to accounts between 
 the two Provinces of Ontario and Quebec. 
 
 2. The accounts are understood to include the following particulars : 
 (a) The accounts as rendered by the Dominion to the Provinces up to 
 
 January, 1889 ; 
 
 (6) in the unsettled accounts between the Dominion and the two 
 Provinces, the rate of interest and the mode of computation of interest to 
 be determined I 
 
8 
 
 {(•) The accounts, as rendered by the Dominion to the two Provinces 
 up to January, 1889, to be determined upon ; 
 
 (d) The claims made by the Dominion Government on behalf of In- 
 dians, and payments made by that Grovernment to Indians to form part of 
 the reference ; 
 
 (e) *rhe Arbitrators to apportion the liability of Ontario and Quebec, as 
 to any claim allowed the Dominion Government, and to apportion between 
 Ontario and Quebec any amount found to be payable by the said Govern- 
 mout ; 
 
 (/) All other matters of account (1) between the Dominion and the 
 two Provinces, (2) between the Dominion and either of the two Provinces, 
 and (3) between the two Provinces ; 
 
 3. It is further agreed that the following matters shall be referred to the 
 said Arbitrators for their determination and award, in accordance with the 
 provisions of the said statutes, namely : 
 
 ig') The rate of iuterejit, it any, to be allowed in the accounts between 
 the two Provinces, and also whether such interest shall be compounded, and 
 in what manner ; 
 
 (A) The ascertainment and determination of the amount of the principal 
 of the Common School Fund, the rate of iaterest which should be 
 allowed on such Fund, and the method of computation of such interest ; 
 
 {i) In the ascertainment of the amount of the principal of the said 
 Common School Fund, the Arbitrators are to take into consideration, not 
 only the sum now held by the Government of the Dominion of Canada, but 
 also the amount for which Ontario is liable, and also the value of the school 
 lands which have not yet been sold. 
 
 4. All the accounts referred to in this agreement shall be brought down 
 and extended to the thirty-first day of December, eighteen hundred and 
 ninety-two, inclusive ; 
 
 .5. It is further agreed by and between the parties hereto, that the ques- 
 tions respecting the Upper Canada Building Fund, and the Upper Canada 
 Improvement Fund, are not at present to form any part of this reference ; 
 but this agi-eementis subject to the reservation by Ontario of any of its rights 
 to maintain and recover its claims, if any, in respect of the said Funds, as it 
 may be advised ; 
 
 6. It is further agreed between the parties hereto, that this agreement 
 shall only have force and effect when and as soon as the same is adopted by 
 Order in Council of the Dominion Government, and of the Governments of 
 the respective Provinces ; 
 
 7. It is further agreed that nothing herein contained is to limit or pre- 
 clrde the parties to this reference submitting such further and other ques- 
 tions or matters to the said Arbitrators as may be mutually agreed upou 
 betweei) the parties hereto. 
 

 
 THE INTEREST QUESTION. 
 
 Tho first question tliat was brought before the Arbitrators in connec- 
 tion with the accounts was the Interest question. This involved the mat- 
 ters ol"the excess of debt and the interest thereon as affected by the British 
 North America Act, and the Acts of 1873 and 1884, the rate of interest to 
 be allowed on the unsettled accounts and the mode of computation, the 
 treatment of the " trust " and " special " funds and the interest on them. 
 
 As the accounts of 1882, 188") and 1888 were all made up with interest, 
 either simple or compound, it was decided at the first meeting that the 
 Dominion should recast the accounts without interest, that they should in- 
 clude the half-yearly subsidies and interest on the excess of debt, but should 
 not include the principal of the " trust '" funds. The Indian claims not to 
 be included in the accounts. 
 
 Thus a fifth set of statements of accounts were made, and according to 
 these the ])alance against the Province of Quebec, on the 1st January, i893, 
 was ^1,198,841.04, without interest. 
 
 The claims of the Provinces were that the accounts should be made up 
 with half-yearly balances, the interest to be calculated half-yearly on the 
 rests of the previous half-year ; that the interest on the Trust Funds should 
 be credited half-yearly in the accounts ; that interest should be charged 
 against the Dominion for any delay in paying the subsidies on the day 
 when due ; that interest should be credited to the Provinces on the deduc- 
 tions from their subsidies between 1867 and 1873, for the periods when the 
 payments on account of subsidies were less than the amounts then due, 
 which had not been allowed for in the Act of 1884 ; that when sums were 
 paid the Provinces, the amount should be applied primarily in reduction of 
 curren* interest, and Quebec claimed that no interest should be charged by 
 the Dominion on the payments of $oOO,000.00 and $125,000. 00 in 1878 aud 
 1870, respectively. \ 
 
 It is not possible, in a reasonable space, to give any synopsis of the 
 arguments. They and the evidence occupy more than one thousand pages 
 of the record of proceedings. 
 
 The first award of the Arbstrators on this question was made on the 
 2nd November, 1893, and is as fsllows : 
 
 AWARD. 
 
 1. That from the 1st of July, 1867, to the passing of the Act of the 
 Parliament of Canada, 36 Yictoria, chapter 80, the Provinces of Ontario and 
 Quebec shall be credited with subsidy half-yearly in advance, deducting 
 therefrom at the end of each half year their respective shares of interest, as 
 determined by the aw ard of September 3rd, 1870, at the rate of five per 
 centum per annum, on the excess of debt of the Province of Canada, over 
 
10 
 
 $62,-")00.000.00, as actually ascertained in amount at each period, the first 
 of such deductions to be made on the first day of January, 1^68, and the 
 others on the first day of July and. January thereafter, down to and including 
 the first day of .lanuary, 1873 
 
 2. That in the Province of Canada account, there shall be credited 
 on the -iSrd day of May, 1S73, the sura of $10,r)0().08,S.84. remitted by the 
 said Act, and thereafter the subsidy shall be credited in the separate 
 accounts of Ontario and (Quebec without any such deduction. 
 
 3. That on and from the 1st of July. 1884, the Provinces of Ontario 
 and Quebec shall be credited with th(» additional subsidy «^ranted by the 
 Act 47 Victoria, chapter 4, in the proportion determined for the excess of 
 debt by the award hereinbefore mentioned. • • 
 
 4. That each Province shall be credited as of the 1st of July. 1867, 
 with its share of 8200,000.00 representing the purchase money of the 
 library and other personal property mentioned in the fourteenth paragraph 
 of the said award. 
 
 5. That the '"trust funds" shall be treated as intact and unimpaired, 
 and interest thereon at the rate of five per centum per annum, carried half- 
 yearly into the separate accounts of Ontario and Quebec. 
 
 0. That the Province of Canada account shall be made up at simple 
 interest at the rate of five per centum per annum, as has been agreed upon 
 between the parties. 
 
 7. That in the separate accounts of Ontario and Quebec, the said 
 Provinces shall respectively be allowed simple interest on any balance from 
 time to time existing in their favor, at the rate of five per centum per annum, 
 except where some other rate has been expressly agreed to. 
 
 8. That the question as to whether or not the Dominion shall be 
 allowed simple interest at the rate of five per centum per annum on any 
 balance that may from time to time be found to exist in its favor, in the 
 separate accounts of Ontario and Quebec be reserved for further argument. 
 
 In respect of the matters mentioned in paragraphs 1, 2 and 3, we have 
 proceeded upon our view of a disputed question of law. 
 
 It will be noticed that under this award the principal of the Trust 
 Funds, amounting to $412,314.25, exclusive of the Common School Fund, is 
 not to be credited to the Province in the statement of the accounts ; but 
 this will not prevent the same being paid to the Province after these' 
 accounts are determined. 
 
11 
 
 The question reserved in the foregoing award was argued before 
 the Arbitrators at Ottawa on the 11th January, 1804, and Iheir award was 
 made on the 31st August, 1894, and is as follows : 
 
 AWARD. 
 
 1. Thnt in respect of the separate accounts of both Provinces, the 
 Dominion be allowed interest at live per centum per annum on all sums in- 
 cluded in any balances in its favour that represent transfers from the Pro- 
 vince of Canada account, or payments made by the Dominion under any 
 liability of the Province of Canada to which it succeeded. 
 
 2. That in respect to the Quebec accouut, the Dominion be allowed in- 
 terest at the rate of five per centum per annum on the two advances of 
 |.")00,000.00 and .f 125,000.00, w^henever it happens that there is a l)iilance in 
 favour of the Dominion of 1620,000.00 or more, and whenever such balance is 
 less than $025,000.00, then on such balance. 
 
 3. That in respect of the Ontario account, the Dominion be allowed in- 
 terest at the rate of five per centum par annum on the i|f»3t),729.33 trans- 
 ferred to the Common School Fund, and at the rate of four per centum on 
 the 1500,000.00 advanced at four per cent, Dominion stock, whenever it hap- 
 pens that there is a balance in favour of the Dominion of $l,430,72lt.33 or 
 more, and w^henever such balance is less than 11,430,729.33, then interest 
 shall be allowed to the Dominion at the rate of four per centum per annum 
 on such balance to the amount of $500,000.90, and at the rate of five per 
 centum per annum on any sum in excess of the amount of #500,000.00. 
 
 The Dominion appealed to the Supreme Court against the first aw^ard ; 
 but, after hearing argument on both sides, the matter was taken under 
 advisement, and subsequently judgment was rendered confirming the 
 award, one of the judges dissenting. 
 
 The principles on which the accounts are to be stated having thus 
 been determined, the Arbitrators, on the 20th May, 1895, appointed the 
 Hon. Mr. Ross, formerly Treasurer of Ontario, Mr. Machin, Assistant-Treas- 
 urer of Quebec, and Mr. Dickieson, the Chief Accountant of the Dominion, 
 to examine and investigate the items comprised in the accounts rendered by 
 the Dominion, to refer through Counsel to them such as they could not agree 
 upon, and to state the accounts in accordance with these principles. 
 
 ' Almost at the outset of the work, Mr. Dickieson, on behalf of the Dom- 
 inion, having contended that by the Act of 1878, the Provinces were 
 debarred from examining the items of the Province of Canada account 
 prior to the 1st January, 1873, the matter was referred to the Ar- 
 bitrators, and argued by the Counsel on the 5th September, 1895, and the 
 Arbitrators at the same session made their aw^ard maintaining the conten- 
 tion of the representatives of the Provinces. jf 
 
12 
 
 Owing to the pressure of work in the Finance Department, considerable 
 delay has occurred in this examination ; but, at the last meeting, in the ' 
 beginning of this month, which lasted a week, and was adjourned owing to 
 the meeting of the Arbitration in Quebec on the 12th instant, considerable 
 progress was made This work will, however, take some time, as the in- 
 telligent examination of the accounts, vouchers, Orders in Council and re- 
 cords of entries, for so large a number of transactions, extending over a 
 period of twenty-eight years, is necessarily a considerable labour, and these 
 records being filed away in different Departments of the Dominion, renders 
 the production of them in many cases a difficult matter. It has also to be 
 taken into consideration that these representatives cannot neglect the official 
 duties of their own Departments, which, owing to the existing session at 
 Quebec, and the approaching sessions at Ottawa and Toronto, have demand- 
 ed constant attention for the last two months. It is expected, however, 
 that the work will be resumed shortly and pushed to a completion. 
 
 THE MONTREAL TURNPIKE TRUST. 
 
 Included in the account of the Province of Quebec were certain 
 charges for the principal of, and interest on debentures of the Montreal 
 Turnpike Trust, issued under Ordinances and Statutes of 1839, 1840 and 
 1845, amounting in all to .^324,668 00, after deduction of amounts re- 
 ceived by the Dominion from the Trust. 
 
 At Confederation it w^as taken for granted that these debentures were 
 guaranteed by the late Province of Canada and the Arbitrators of 1870, on 
 that ground, made Quebec liable, in case of default by the Trust, for any 
 payment of principal or interest the Dominion might be called on to make 
 by reason of the supposed guarantee. 
 
 $67,200.00 of the debentures were held by the Dominion as an invest- 
 ment for the Indian Fund, and $120,000.00 were held by the Quebec Sav- 
 ings Bank, afterwards the Union Bank. , 
 
 The Trust had failed to pay its interest on the $67,200.00, since 1872 and 
 on the $120,000.00 since 1882. " 
 
 The Dominion paid the interest on the $120,000.00 half-yearly, and in 
 June, 18S0, paid the Union Bank the $120,000.00, charging the payments 
 to Quebec at the dates they were made. In June, 1889, the Quebec ac- 
 count was charged with $67,200.00, and interest from 1872. 
 
 Quebec claimed that there was no guarantee by the late Province of 
 Canada, that the aw^ard of 1870, in respect of these debentures, was ultra 
 vires, and that all the items should be eliminated from the account. 
 
 The case was argued on the 12th January, 1894, and on the 31st Au- 
 gust, 1894, the award of the Arbitrators w^as :' 
 
13 
 
 " That all charges made in the accounts of the Dominion against the 
 •' Province of Quebec, for principal or interest, on the Montreal Turnpike 
 " Trust Debentures, be eliminated from the same." 
 
 As in the final settlement of the account, these items would have borne 
 five per cent, interest, the relief to the Province is equal to fully $400,000.00. 
 
 THE INDIAN CLAIMS OF THE DOMINION AGAINST THE 
 
 PROVINCES. 
 
 The most important of these claims is that on behalf of the Ojibeway 
 Indians, who, in the year 1850, ceded very large territories on the Eastern 
 and Northern shores of Lake Huron and on the Northern shore of Lake 
 Superior, under what are known as the Robinson Treaties. 
 
 The cessions of territories were made in each case for a sum of money 
 paid down, a fixed annuity to be paid in perpetuity, and a further condijon 
 that, " should the territory ceded at any future period produce such an 
 amount as will enable the Grovernment of this Province, without incurring 
 loss, to increase the annuity hereby secured to them, then and in that 
 case the same shall be augmented from time to time ; provided that the 
 amount paid to each individual shall not exceed the sum of one pound 
 Provincial currency, or such further sum as Her Majesty may be graciously 
 pleased to order." There is also a provision for reducing the annuities if 
 the number of the Indians is diminished to less than two-thirds of their 
 number at the time of the Treaties. 
 
 The claim of the Dominion is that the revenues obtained from the ceded 
 territories, have entitled the tribes to the increased annuities since the date 
 of the treaties ; 
 
 That, up to Confederation, these tribes received $1.00 per head yearly 
 instead of the $4.00 to which they were entitled, and that there is due by 
 the late Province of Canada to these Indians the sum of 132.5,000.00 for 
 principal money and interest ; 
 
 That, as these territories at Confederation passed into the hands of 
 Ontario, subject to the trusts of the treaties and the interests of the Indians 
 under section 109 of the British North America Act, and as the Dominion, 
 administering under the said Act the Indian affairs, has paid betvi'een 1867 
 and 1875 $1.60 per head yearly, ana since 1875 the full sum of $4.00 per 
 head, there is due by the Province of Ontario $95,200.00 to the Indians and 
 $389,100.00 to the Dominion at 31st December, 1892 ; 
 
 The Province of Quebec contended that the questions of fact respecting 
 the amounts produced by the territories and the expenditures in respect of 
 the same, the amount paid each year to each Indian, and the number oi 
 Indians each year entitled to the annuities, should be fully investigated 
 before tho Board could decide whether the increased annuities are war- 
 
14 
 
 raiito.l, but urged that before adducing evidence certain questions of law 
 should be determined. Among these questions are the following, viz. : 
 
 What is the definition of the word " Indian " within the meaning of 
 these treaties, and what Indians are entitled to annuities and increase of 
 annuities under these treaties ? 
 
 Whether all expenditures in connection with the territories (esi^ecially 
 certain ones mentioned) can be charged against receipts. 
 
 Whether, as the administration of Indian affairs remained in the hands 
 of the Imperial G-overnment till 1860, the Province was bound to render 
 account without demand; 
 
 Whether interest could be charged on arrears of annuitities so long as 
 no demand or protest was made. 
 
 Whether the Dominion could increase the annuities without the con- 
 sent of the Province or Provinces interested ; 
 
 Whether the capitalization of annuities at Confederation was not a 
 finality as far as the Provinces were concerned, 
 
 Quebec also contended that in any case the increased annuities, if any 
 should be allowed, are a trust on the lands, under the terms of section 109 
 of the B. N. A. Act, and that Ontario alone is responsible for them. 
 
 Ontario's contentions were similar to those of Quebec, except on the 
 point of the mcreased annuities, if any, being a trust on the lands, and 
 claimed (although the whole proceeds of sales and revenues of these terri- 
 tories since Confederation have gone into the hands of Ontario), that Que- 
 bec is liable for its share of any increased annuities, either before or subse- 
 quent to Confederation, which may be awarded to the Indians. 
 
 The award of the Arbitrators of the 13th February, 1895, is as follows : 
 
 AWARD. 
 
 In respect of the claim made by the Dominion of Canada against the 
 Provinces of Ontario and Quebec in reference to the Indian claims arising 
 under the Kobinson Treaties : 
 
 1. That if in any year since the Treaties in question were entered into 
 the territory thereby cede(^ produced an amount which would have enabled 
 the Government, withou ncurring loss, to pay the increased annuities 
 thereby secured to the Lidian tribes mentioned therein, then such tribes 
 were entitled to such increase not exceeding $4 for each individual. 
 
 2. That the total amount of annuities to be paid under each Treaty is, 
 in such case, to be ascertained by reference to the number of Indians from 
 
15 
 
 time to time belonging to the tribes entitled to the benefit of the Treaties. 
 That is, that in case of an increase in the number of Indians beyond the 
 numbers named iu such Treaties, the annuities, if the revenues derived 
 from the ceded territory permitted, without incurring loss, were to be equal 
 to a sum that would provide $4 for each Indian of the tribes entitled. 
 
 3. That any excess of revenue in any given year may not be used to 
 give the increased annuity in a former year in which an increased annuity 
 could not have been paid without loss, btit that any such excess or balance 
 of revenue over expenditure in hand at the commencement of any given 
 year should be carried forward into the account of that year. 
 
 4. That any liability to pay the increased annuity in any year before 
 the Union was a debt or liability which devolved upon Canada under the 
 111th section of the British North America Act, 1807, and that this is one of 
 the matters to be taken inLo account in ascertaining the excess of debt for 
 which Ontario and Quebec are conjointly liable to Canada under the 112th 
 section of the Act ; and that Ontario and Quebec have not, in respect of any 
 such liability, been discharged by reason of the capitalization of the fixed 
 annuities, or because of anything in the Act of 1873, 36 Victoria, chapter 30. 
 
 5. That interest is not recoverable upon any arrears of such annuities, 
 
 6. That the ceded territory mentioned became the property of Ontario, 
 under 109th section of the British North America Act, 1867, subject to a 
 trust to pay the increased annuities on the happening, after the tJuion, of 
 the event on which such payment depended, and to the interest of the In- 
 dians therein to be so paid. That the ultimate burden of making provision 
 for the payment of the increased annuities in question in such an event falls 
 upon the Province of Ontario ; and that this burden has not been in any 
 way affected or discharged. * 
 
 Y. That interest is not recoverable on the arrears of such annuities 
 accruing after the union, and not paid by the Dominion to the tribes or In- 
 dians entitled, 
 
 8. That in respect to the matters her Mnbefore dealt with the Arbitrators 
 have proceeded upon their view of disputed questions of law. 
 
 9. That, as respects the increased annuities which have been paid by 
 the Dominion to the Indians since the union, any payments properly made 
 are to be charged against the Province of Ontario in the Province of Ontario 
 account as of the date of payment by the Dominion to the Indians, and so 
 fall within and be att'ected by our previous ruling as to interest on that 
 account. 
 
 Against this award Ontario has appealed to the Supreme Court. The 
 case was argued in the Supreme Court, on the 15th May, 1895, but judg- 
 ment has not yet been rendered. 
 
16 
 
 Should tho award he confirmed, this Province, although not relieved 
 from its share otany liability which may be proved to have existed before 
 Confederation, \xi\\ probably not have to meet a heavy claim, as the reve- 
 nui's from the territories were not large during- that period. 
 
 THE CI. AIM ON r,EHALF OF THE MISSISSAGUA INDIANS OF 
 POUT CREDIT AND THE CLAIM ON BEHALF OF THE 
 
 DELAWARE INDIANS. 
 
 The first was a claim for the proceeds of lands which were sold on their 
 account between the year.s 182S and iHoS and interest, and amounted to 
 about ^78,000.00. 
 
 The time and work entailed in the defence against this claim were 
 very great. Sessional and other papers and books of account of sixty years 
 back bad to be examined, and reports of Commissioners of Indian Affairs 
 carefully read. The result w^as that it was conclusively proved that the 
 proceeds had been accounted for to the Indians. 
 
 The claim of the Delaware Indians was for the value of lands sub- 
 merged in the construction of the Welland Canal in 1830, and lunounted 
 with interest to $19,000.00. 
 
 This claim was dis}>roved. 
 
 The award of the Arbitrators of the 13th November, 1895, relieved the 
 Provinces from all liability in both cases. 
 
 UPPER CANADA MUNICIPALITIES FUND. 
 
 This was a claim of Ontario against the Dominion of Canada and the 
 Province of Quebec for the recovery of a balance on the Upper Canada 
 MunicipaHties Fund, amounting to .§21, 488. 74. 
 
 The case was argued and an award made in February, 1895, by which 
 the Dominion w^as made liable for $15,732.76, and the Province of Quebec 
 was discharged in respect of the whole claim. 
 
 COMMON SCHOOL FUND. 
 
 The Act 12 Victoria, Chapter 200 (1849), provided that all moneys ac- 
 cruing from the sales of Public Lands should be set apart as a capital to 
 form a Common School Fund to produce a yearly income of (.€100,000) 
 $400,000.00, and also authorized the appropriation of 1,000,000 acres of 
 lands, the proceeds of the sales of which were to go towards making the 
 Fund,— the interest arising from the Fund to go towards the payment of 
 the 1200,000.00 granted yearly for Common Schools, and apportioned ac- 
 coiding to popufation between Upper and Lower Canada. The 1,000,000 
 acres were appropriated from the lands in Upper Canada, in November, 1850. 
 
 
17 
 
 Under authority of Act 16 Victoria, Chapter lo9, an Order in Council 
 was passed on the 7th December, 1855, reserving one-fourth of the proceeds 
 of the sales of School Lands in any County for public improvements, and 
 this one-fourth of the moneys received after the 7th December, 1855, was 
 paid over to the Municipal Councils until the Gth March, 1861, when the 
 Order in Council was rescinded. 
 
 Only the proceeds of the sales of the 1,000,000 acres were credited to 
 the Fund, nothinjr from any other public lands. $58,000.00 of the moneys 
 were invested in Quebec Turnpike Trust Bonds ; the balance of the collec- 
 tions remained in the hands of the Province, and amounted, with the inter- 
 est allowed yearly, to Si, 645,644. 47 at Confederation, at which time all the 
 lands had been sold except 8,959 acres, and, according to a return of the 
 Crown Land& Department, the outstanding instalments on lands sold 
 amounted at the 30th June, 1867, to $1,704,738.00. 
 
 In the award of 1870, the Arbitrators appointed under the British North 
 America Act deducted from the Fund, as held on the 30th June, 1867, 
 $124,686,18, and transferred that ainount to the Upper Canada Improvement 
 Fund, being one-fourth part ofmoneys received between 6th March, 1861, and 
 Ist July, 1867, on account of lands which had been sold between i4th June, 
 1853, and 6th March, 1861. They directed that the Dominion should continue 
 to hold the Fund and pay the income to Ontario and Quebec respectively 
 as is directed by the 5th Section of Chapter 26 of the Consolidated 
 Statutes of Canada, and that Ontario should have the sale and man- 
 agement of the lands and be allowed six per cent on the collections for so 
 doing. That from the collections on account of sales that were made be- 
 tween 14th June, 1853, and 6th March, 1861, one-fourth should be retained 
 by Ontario for the Upper Canada Improveraend Fund. The balance of the 
 collections were to be paid over by Ontario to the Dominion, to be added to 
 the Fund. 
 
 Instead of paying over the collections year by year, Ontario retained 
 all the moneys received until January, 1889, when the sum of $925,625.68 
 was paid to the Dominion, and a further sura of $11,103.70 was paid in 
 April, 1890. 
 
 Had the moneys collected been paid year by year, Quebec would have 
 received its share of the interest on them half-yearly. And on the strong 
 representations of the Treasurers of Quebec, Ontario has, at different times, 
 paid to Quebec sums on account of Quebec's share of interest on the moneys 
 retained, amounting in all to $250,000.00 ; but this sum is far from what 
 Quebec claims it is entitled to receive. 
 
 Quebec has claimed that the Order in Council of Gth December, 1861, 
 put an end to the Upper Canada Improvement Fund, as regarded the one- 
 fourth of proceeds of sales of these lands, and that the Arbitrators of 1870 
 exceeded their powers in deducting the $124,685.18 and in authorizing ihe 
 2 
 
18 
 
 retention by Ontario of one-fouth of all proceeds received by it from sales 
 made between 14th June, 1853, and Gth March, 1861. 
 
 There was correspondence from time to time between the Governments 
 of Ontario and Quebec with regard to a settlement and final disposition of 
 the Fund and the uncollected balances, but nothing was effected, as the 
 views of the two G-overnments were so widely different. 
 
 As the ascertainment of the amount of the principal of the Common 
 School Fund, the rate of interest to be allowed in the accounts between the 
 Provinces, the amount for which Ontario is liable, and the value of the 
 unsold lands, were matters to be determined by the recently appointed 
 Arbitrators, the Treasurer of this Province asked, in March, 1893, for 
 detailed and specific statements of amounts collected since 1867, of amounts 
 out.standing on sales, and of the number and value of acres of land unsold. 
 
 The accounts not having been furnished in the form desired, and the 
 estimate of the amount remaining outstanding and uncollected on lands 
 sold being, in view of the stateuient of the Crown Lands Department made 
 at Confederation, so different from what was expected, Mr. John Hyde, a char- 
 tered accountant, and Mr. Kemp, an official of the Crown Lands Depart- 
 ment, Quebec, were, with the consent of the Grovernment of Ontario, sent 
 to Toronto, to make up complete and detailed accounts of all the lands, the 
 sales, the interest accrued thereon, the collections on account of the same, 
 and to establish the balances outstanding both at the date of Confederation 
 and at the 31st December, 1892, that being the end of the last fiscal year of 
 Ontario prior to the examination. This could only be done by full access 
 being given to the books and records of the Crown Lands Department of 
 Ontario, and it is gratifying to state that every facility in this respect 
 was afforded by the Honorable Commissioner. 
 
 When it is considered that this work involved a complete audit of 
 every account of the individual sales since 18.50 of the 1,000,000 acres, most 
 of which were in lots of 100 or 200 acres, with instalment payments on 
 account of principal and interest, it will be realized how great was the 
 amount of labor and time required, and as no individual sales ledger ac- 
 counts had been kept; the accountants found it absolutely necessary to 
 have a set of ledgers made and open an individual account for every sale, 
 into which they posted every debit and credit entry both of principal and 
 interest. 
 
 As it appeared that in settling with the puchasers of these lands, re- 
 missions had been made by Ontario, in a large number of cases, of part of 
 the price or of the interest, and as Quebec questioned the right of Ontario 
 to make these remissions, as far as Quebec's share was concerned, without 
 having obtained its consent, a note had to be taken of erery such remission 
 and of the record in connection with the same. In view also of the claim 
 of Ontario under the award to deduct one-fourth of the proceeds of lands 
 
19 
 
 sold between. 14th June, 18o3, and 16th March, 1861, the records of these 
 sales and the collections on account of the same had to be distinguished 
 from the sales made at other periods. 
 
 The result of this work showed that at 31st December, 1892, there was 
 outstanding and uncollected on sales, including principal and interest, an. 
 amount of §480,800 00. and that remissions and reductions had been made 
 on amounts due in capital and interest to an amount approximating 
 #300,000.00, and that 3,383 acres remained unsold. 
 
 The Province of Quebec claims that these sums are to be taken into 
 consideration in determ^.iing the amount of the principal of the Fund, 
 though the amounts outstanding can only become available for income as 
 they are collected. 
 
 The above amounts, as well as the amount in the hands of the Domin- 
 ion belonging to Ontario and Quebec jointly, can only be divided by mu- 
 tual agreement or by arbitration. And although the Lieutenant-Governor 
 of this Province in Council is authorized by the Act 57 Victoria, chapter 3, 
 (1894) to agree with the Government of Ontario upon an amount to be paid 
 by Ontario for the unsold lands and uncollected balances, and also to agree 
 with the Governments of the Dominion and of Ontario for the final payment 
 to the Fund and for the division and distribution of the Fund to the Pro- 
 vinces, and failing to agree on such division and distribution, to refer the 
 question to arbitration, no such agreement has yet been made ; the ques- 
 tions submitted to the present Arbitrators being the ascertainment and 
 determination of the amount of the capital of the Fund, the rate of interest 
 on such Fund, and the rate of interest on the accounts between Ontario and 
 Quebec. 
 
 The Dominion pays interest at the rate of five per cent per annum half- 
 yearly on the amount of the Fund in its possession, which at the present time 
 is $2,4.57,688.62, Quebec having received as its share of such interest about 
 130,000.00 a year for the years from 1867 to 1889, and about $.50,000.00 a year 
 since 1889. Quebec has also received from Ontario 1250,000.00 on account 
 of its share of interest, as before stated, on collections for the period that such 
 collections were retained by Ontario. ' 
 
 From the foregoing it will be gathered that the principal grounds 
 taken by Quebec are that the deductions from the collections for th^ ^Jpper 
 Canada Improvement Fund, though authorized by the Arbitration of 187(r, 
 are contrary to law, that Ontario is responsible for the remissions and de- 
 ductions allowed the parties indebted to the Fund, and that Ontario is 
 bound to place Quebec in the same position, as regards the interest on the 
 collections retained, as it would have been if the same had been paid over 
 to the Dominion from yea? to year. 
 
 The case was argued at Toronto in July last, hut no award has yet been 
 made. 
 
20 
 
 During the sessions of the Arbitration, claims have been argued and 
 adjudicated upon in which Quebec had no interest, viz : 
 
 Claim of Dominion against Ontario in respect of the interest coupons 
 on certain Bonds of the City of Hamilton amounting to $16,781.35 and 
 interest. 
 
 Claim of the Dominion against Ontario in respect of certain Immigra- 
 tion Expenditure amounting to $20,000.00. 
 
 As regards the Robinson Treaties' Indian Case and the Common School 
 Fund case, there will, after judgment has been given by the Supreme Court 
 in the first, and an award by the Arbitrators been made in the second, if 
 accepted as final, still be a considerabl*^ amount to be done to determine the 
 facts and state the accounts in these particular matters. 
 
 But the hearing and adjudication of these cases, as well as of those 
 claims whicL have not yet been brought before the Arbitrators, will not 
 delay the final determination and settlement of those accounts of the Do- 
 minion with the late Province of Canada and with each of the Provinces, 
 which have been for so many years the subject of contention and discussion. 
 The uncertainty with reference to them, which has been a continual em- 
 barrassment in dealing with the financial position of this Province, will, it 
 is hoped, be ended before the present fiscal year closes. 
 
 The claims in which Quebec is interested, which have not yet been 
 argued, are as follows : 
 
 A claim of the'^ Dominion in behalf of the Chippewas of the Thames 
 and the Wyandotte Indians, for proceeds of their lands sold between the 
 years 1845 and 1854, and received by Crown Lands Agents, but never 
 accounted for, amounting to $30,000.00 and interest to the present time. 
 
 A claim of the Dominion in behalf of the Mississaguas of Kice and 
 Mud aud Scugog Lakes against the late Province of Canada, for proceeds of 
 their lands sold between 1844 and 1864, which, it is stated, went into the 
 Consolidated Revenue Fund of the Province of Canada, instead of being 
 accounted for to them. The amount is $5,926.00 and interest. 
 
 A claim of the Chippew^is of Lake Huron, and of the Mississaguas of 
 Rice and Mud Lakes and Alnwick and Scugog, in respect of a territory of 
 about 10,000 square miles, which, it is stated, was never surrended by 
 them, but that prior to Confederation, the lands were dealt with, and parts 
 sold by the late Province of Canada, and that the territory has been occupied 
 and enjoyed oince Confederation by Ontario, portions having been sold from 
 time to time by that Province. This claim is partly against the late Pro- 
 vince of Canada and partly against Ontario. 
 
 There are other Indian claims in which Quebec is not interested. 
 
TEMPERANCE, LONGEVITY, INSURANCE. 
 
 A TRACT FOR THE TIMES. 
 
 Beprintedfrom the Canada Citizeiu 
 
 " Smote by truth fall ancient errors, 
 
 Reared by power and propt by wrong 5 
 And Earth wonders when they perish, 
 How they held their sway so long." 
 
 There are few phases of the wonderful history of the great Tem- 
 perance Reformation that so well illustrate the unsound basis and 
 unjust operations of unreasoning prejudice, and also the astonishing 
 progress in enlightenment that has recently been made, as does the 
 remarkable change in the attitude, towards total bstainers, of Life 
 Insurance Companie>. Ihe hard-headed business sagacity that 
 directs these institutions is not very likely to be influenced by any 
 merely sentimental considerations, and yet the companies, that some 
 time ago looked with suspicion upon teetotallers, now seek after 
 them as insurers with the utmost ea2:erness, and even offer them 
 special inducements. Why do they do this ? Simply because 
 IT PAYS, Total abstaine; s, as a class, have longer lives and better 
 health than moderate drinkers, and insurance companies can do 
 with them a safer and more profitable business oven at reduced 
 rates. Not onh' is the physical health of the abstainer superior to 
 that of his less careful neighbor, but he is much less liable to injury ^ 
 from thos > climal|ic and ot'ier accidents of common life that so fre- 
 quently lay the foundation for disease and death. All his faculties 
 and ner\ ous safeguards against these causes of injury are also more 
 on the alert, iind the prudence that impels him to avoid or counter, 
 act tlicm is UKjre keenl}'^ active. 
 
 We might fill a volume with p' ysiological evidence and expert 
 mtdical opinion upon this matter, but we are Confining ourselves 
 now wholly to insurance facts, and even hei'e the field is so exten- 
 give tliat we can only sample and condense the material that is at 
 our disposal. We must again, however, call attention to the charac- 
 ter of our v\ itnesses. The managers of Life Insurance Companies are 
 among our most reliable and experienced business men, and the in- 
 surance .system has the endorsation of the b «t morality and the 
 highest intelligence of our conuiiunities. 
 
2 
 
 THE HISTORY 
 
 of temperance insurance though brief, is instructive. The Detroit 
 
 Indicator, a leading insurance journal, epitomizes the early part of 
 
 ii as follows : — 
 
 " There was a time, not very long ago, when totai abstainers 
 from intoxicating drinks were looked upon by Life Insurance Com- 
 panies in Great Britain as a class that ought to pay an additional 
 rate for insurance on their lives. The Chairman of the United 
 Kingdom Temperance Society in moving the adoption of the 40th 
 annual report of the Society referred to the fact that he applied to 
 three Life offices for insurance, two of which accepted him at the 
 regular rates through the influence of friends, while the third 
 charged him a considerable amount extra. When he asked for tho 
 reason, the reply was, "You are a teetotaller ; and the directors con- 
 sider teetotal Jives are worse than ordinary lives." Ihis was the view 
 hfld by the majority of men in Britain in those days, the moderate 
 use of stimulants being considered beneficial to health and longevity. 
 The British Government, however, soon after commenced experi- 
 menting in this line, in the army, in the navy, in public institutions, 
 etc., etc., and were not long in discovering the reverse to be true. In 
 1838, statistics were kept of the numb er of men belonging to tem- 
 perance societies in the European armies, serving in India, admitted 
 to the hospitals, and the number of those not temperance men ad- 
 mitted during the same time. The record was for the first six 
 months of the yea^ ind was decidedly in favor of the temperance 
 section. The strength of the temperance societies was 9,340, and of 
 the remainder of the regiments 17,354. The relative proportions 
 ♦admitted to strength was in the former 1 in 16.47, and in the latter 
 1 in 7.28 ; the average daily percentage of men in the hospital being 
 among the temperance 3.65 and among the others 10.20, or nearly 
 tiiree times as great. This and other experiments set the English 
 people to thinking on the temperance question, and revealed to them 
 the Tact that they had been entertaining fallacious views on this 
 subject. The results of total abstinence vere so favorable in other 
 directions that a life insurance company called The United King- 
 dom Temperance and General Provident Institution was organized 
 with the object in view of providing insurance for teetotallers in a 
 class by themselves." 
 
 Since the formation of the above-named company many others 
 
 have been instituted upon the same geneial lines, both in Great 
 
 Britain and other countries. Among these may be specially named 
 
 the Whittington Life Assurance Co., the Emperor Life Assurance 
 
 Ca, the Scottish Temperance Life Assurance Co., the Blue Ribbon 
 
 Life Assurance Co., the Australasian Temperance and General Life 
 
 Assurance Co. of Australia, tho Sceptre Life Assurance Co. ♦ ♦ ♦ 
 
3 
 
 The special advantages that abstainers enjoy in this matter were 
 soon noticed and made use of by that class of insurers who prefer 
 the system of mutual insurance on the death assessment plan. A 
 number of these societies sprang up, admitting only total abstain- 
 ers, it being clearly evident that the assessment calls upon members 
 of such societ es would be lighter than in similar associations ad- 
 mitting moderate drinkers. 
 
 Further light and knowledge still more thoroughly con- 
 vinced temperance men that, in justice to themselves and their 
 families, they ought to secure in their insurance investments, the 
 full benefit of their safer habits and superior life probabilities, and 
 temperance insurance at once passed from the region of theory and 
 experiment to that of fact and biisiness. We are much pleased to 
 notice that a movement has been lately set on foot in Canada for the 
 formation of a home company, that will give to our cit zens the full 
 advantages of this system, by affording them an opportunity of hold- 
 ing stock as well as policies in a temperance company. At the last ses- 
 sion of the Dominion Parliament, a special Act was passed chartering 
 The Temperance and General Life Assurance Company of North 
 America. We publish to-day in the advertising columns of The Can- 
 ada Citizen the prospectus of this new company. The names therein 
 given of the principal promoters of the enterprise guarantee ita 
 success. Mr. O'Hara, who is working out the details of this scheme 
 is a well-known temperance worker, and P. G. W. P. of the Sons of. 
 Temperance, and he has had extensive experience in life insurance 
 business. We heartily commend this institution to both investors 
 and insurers. 
 
 We believe the experiment of an insurance company doing busi- 
 ness with abstainers alone has not yet been made. 
 
 THE FACTS 
 
 in relation to temperance insurance and longevity, the records of 
 the working companies already referred to, and the mortuary sta- 
 tistics of total abstinence societies, constitute an overwhelming mass 
 of evidence in favor of total abstinence, as by far the safest prac- 
 tice in relation to all forms of intoxicating liquors. We have only 
 space for a few summarized items, and in considering them, our 
 readers will kindly bear in mind that no insurance company will 
 take risks on the lives of men of the class usually called intemper- 
 ate, and. the comparisons made in their tables are all between 
 nioderate drinkers and teetotallers 
 
The obituary record of the National Division of the Sons of 
 Temperance makes the following extraordinary showing : — 
 
 Of the male members in the year 1880-81, there were 8 deaths, 
 and the average age of the deceased was 64 years and 4 months ; 
 in 1881-82 there were 12 deaths, at the average age of 71 years and 
 2 months ; and in the year 1882-83 there were 10 deaths, at the 
 average age of 71 years and 6 months. The three years' record 
 
 fives 30 deaths, at the average age of 69 years and nearly 6 months, 
 he showing for 1883-84 is even more favorable still, the average 
 age of the members who died during that year being 72 years. The 
 age of the oldest member who passed away was 92. 
 
 A circular recently issued by the "Sceptre Life Assurance Com- 
 pany, of Great Britain," shows that for the past ten years the 
 deaths in the total abstinence branch of the company amounted to 
 only forty-five per cent, of the number anticipated. 
 
 At the annual meeting of the Whittington Life Assurance Com- 
 pany, on the 21st of August of the present year, the following 
 statement was made by the manager, Mr. Alfred T. Bovr ser : — 
 
 " One feature of interest I must not omit to mention — I refer to 
 the temperance section. The report hat* told you that the mortality 
 in ihat section continues to be favorable; I will tell jou a little 
 more exactly. Three years ago I stated that the death rate in the 
 temperance section had, in the three years, been 23 per 1,000, against 
 60 per 1,000 in the general section. I have now the satisfaction of 
 stating that the comparison is even a little more favorable for the 
 temperance section during the past three years ; it has been at the 
 rate of 22 per 1,000, while in the general section it has been at the 
 rate of 51 per 1,000." 
 
 The results obtained by the Temperance and General Provident 
 Institution are stated as follows by the Indicator, the journal 
 already quoted: — 
 
 " The results after, a few years trial, were surprising and con- 
 vincing. During the first live years of its existence the Temperance 
 and General Provident Institution issued l,59t) policies, and the 
 average death rate was but 7^ per 1,000, while it ranged from 13 
 to 26 in four other offices. There were, of course, other causes at 
 work which helped to keep down the mortality, but these were not 
 sufficienttooccasionthewholeditterences. But this difference was made 
 more apparent in the results in the two sections of this company it- 
 Belf, viz.: the Temperance Section and the General Section. The 
 records for seventeen yeara shows that in the former section the 
 expected claims were 2,644, and the actual 1,861, a per cent, of 70, 
 while in the latter the expected claims were 4,408^ and the actual 
 
4,339, a per cent, of 99, or neaily the full amount. This is an ex- 
 cess of 29 per cent, in favor of the Temperance Section." 
 
 THE OPINIONS 
 
 of experts in the business of insurance go to emphasize all that has 
 been said in reference to even the moderate consumption of the 
 milder alcjholic beverages. Some time ago we published in The 
 Canada Citizen the foliov^inor statement of 
 
 Colonel Green, President of the Connecticut Mutual 
 Life Insurance Comj/any : — 
 
 " I protest against the notion so prevale.it and so industriously 
 urged that beer is harmless and a desiiable substitute for the more 
 concentrated liquors. What beer may be, and what it may tio in 
 other countries and climates, I do not know from observation. That 
 in this country and climate its use is an evil only less than the use 
 of whiskey, if less on the whole, a-ud that its effect is only longer de- 
 layed, not so immediately and obviously bad, its incidi nts not so 
 repulsive, but destructive in the end. I have seen abundant proof. 
 In one of our largest cities, containmg a great popuiation of beer- 
 drinkers, I liad occasion to note the deaths among a large group of 
 persons whose hab ts, in their own eyes and in those of tneir friends 
 and physicians, were temperate; but they weie habitual users of 
 beer. When' the observation began, they were, upon the average, 
 something under middle age, and they were, of course, selected lues. 
 For two or three years there was nothing very remarkable to be 
 noted among this group. Presently death began to .strike it ; and, 
 imtil it had dwindled to a fraction of its original proportions, the 
 mortality in it was astounding in extent, and .still moie lemarkable 
 in the manifest identity of caute and Tnode. There was no mistak- 
 ing it ; the history was a most invariable : robust, ap^^arent health, 
 full mu.scles, a fair outside, increasing weight, tioria faces ; then a 
 touch of cold, or a snitt* of malaria, and instantly some acute disease, 
 with almost invariably typhoid symptoms, was in vioieni action, and 
 ten days or less ended it. It ivas as if the system had been kept fair 
 outside, while wdhin it was eaten to a shell ; and at the fusi touch 
 of disease there was utter collapse ; every fibre was [loidoned and 
 weak. And'this, in its main features, varying of course in dt gree, 
 has been my observation of beer-drink irig every wiicre. It is 
 peculiarly deceptive at first ; it is thoroughly desti uctne at the last.'* 
 
 This statement was recently published by 'fhe Voice, an Ameri- 
 paper, issued by Messrs. Funk & Wagnall, of JSuw York. The 
 editors of The Voice have received and printedmany lett rs coifirm- 
 ing Colonel Green's opinions, and from thecoluuius of that paper 
 we take the following : — 
 
6 
 
 • 
 
 From Thomas W, Russell, President Connecticut 
 
 General lAfe Insurance Co,: 
 
 " I have no doubt the results are correctly stated by Col. Greene. 
 Pneumonia, typhoid fever, inflamation of the brain, of the bowels, 
 etc., are not unfrequently given as the cause of death, when it 
 should be truthfully added— -Kiirectly induced by the use of such 
 beverages." 
 
 From George C. Ripley, President Some Life In^ 
 
 surance Co.: 
 
 " Our experience, as a rule, confirms that of Col. Greene. It in- 
 dicates that malt liquor used habitually, even though moderately, 
 causes an increase of mortality." 
 
 From T. S, Brosnan, President United States Life 
 
 Insurance Co,: 
 
 " Our experience has been very much more limited than the ex- 
 perience of the Connecticut Mutual Life Insurance Co., but, as far 
 as it has gone, and to the extent of our own powers of observa- 
 tion, whether speaking officially or personally, we believe that Col. 
 Greene's views represent the facts." 
 
 Similar statements were received from the following well-known 
 gentlemen : — 
 
 «7. B, Temple, President Southern Mutual Life Insur^ 
 ance Co,, Kentucky, 
 
 A, G, Bullock, President State Mutual Life Assur- 
 ance Co. 
 
 Stephen Ball, Secretary of the PLartford Life and 
 Annuity Insurance Co, 
 
 Samuel C Suey, President of the Pennsylvania^ 
 Mutual Life Insurance Co. 
 
 tf, B[, N^itchin, Secretary N'ational Life Insurance 
 Co., U, S. A, 
 
 Charles Dewey, President N'ational Life Insurance 
 Company, • 
 
 r II - II *- — I 
 
 THE CONCLUSIONS 
 
 to be drawn from the above cited facts and opinions are too mani' 
 fest to need anything more than mere mention. The duty of in* 
 surance has often been urged with earnestness and force. The 
 Canadian JRoi^al Templar in a recent issue makes the following 
 interesting statements : — 
 
" Not long since the Rev. C.*^. Spurgeon, taking for his text J 
 * Take no thought for the morrow, what ye shall eat, or what ye 
 shall drink, or wherewithal ye shall be clothed,' commenced his ser- 
 mon by announcing the fact, ' I insured my life last week for £1,000 
 and have thus been able to carry out the induction of the text, and 
 not to be over anxious for the morrow, for much undue care and 
 anxiety that I had is now laid aside, secure in the knowledge that 
 my forethought has provided for my loved ones.' As a further 
 practical proof of his opinion of the value of Life Insurance, Mr, 
 Spurgeon induced all the young men of the Metropolitan Tabernacle 
 to assure their lives, he paying half the premium for them for the 
 lirst two years." 
 
 If provision for our families by insurance is a social and Chris- 
 tian duty, it must also be a duty to make that provision as complete 
 and as secure as possible. When epidemics ravage a country they 
 invariably make most havoc in the drinking ranks, and this fact- 
 makes the discrepancy between the respective positions of the in- 
 sured abstainei* and liquor-consumer even greater than what the 
 quoted statistics indicate. It is the abstaining insurer's duty to 
 make his provision as cheap and as positive as he can, and he cannot 
 do this in a company that makes him pay for the extra risk it carries 
 in the moderate drinker's insurance. There is also manifest the 
 duty of temperance capitalists to support an enterprise that gives- 
 even-handed justice to its patrons. In addition to these considera- 
 tions the success of such institutions furnishes a powerful argument 
 in favor of the great total abstinence and prohibition reform. 
 
 Our principal interest in this matter, however, lies in the estab- 
 lished relationship of temperance to health and longevity. Here we 
 have an unanswerable argument in favor of the cause we are labor' 
 ing to promote; and in the interests of the public weal, we appeal to^ 
 all true philanthropists to aid us in our crusade against the unholy 
 traffic in the dath- dealing drink. 
 
 Published at the office of 
 
 THE CITI2EN PUBLISHING COMPANY. 
 
 King Street Knst, Toronto^ * 
 
THi: TEHtPJEBAlVCi: AMD 
 
 General Life Assurance Co'y 
 
 o 
 
 HEAD OFFICE, TORONTO. 
 
 o 
 
 Incorporated by Special Act <^ ike Parliament (^ Canada, April JOthy 1884. 
 
 A Charter has been obtained by the following prominent business men who, by 
 the Act, are appointed th6 Provisional Directors : 
 
 Hon. G. W. Ross, Minister of Education ; Hon. Alex. Vidal ; Hon. R. W, 
 Scott ; Hon. T. R. Mclnnis ; Hon. S. H. Blake, Q.C.; Hon. J.»W. Sifton ; G. E. 
 Foster, M.P. ; John Maughan, Esq.; Henry O'Hara, Esq.; David Millar, Esq.; D. 
 D. Hay, Esq.; Robert McLean, Esq. ; Thomas Caswel!, Esq.; T. W. Casey, Esq. j 
 J, W. Manning Esq.; E. M. Morphy, Esq.; R. McPhail, Esq.; Robert Houghan, 
 Iflsq.; Thos. W. Campbell, E.-q.; J. H, Flagg, Esq. 
 
 A large majoriiy af the Provisional Directors are total abstainers from the use 
 of intoxicating liquors, holding prominent positions in connection with Dominion 
 Alliance and other Temperance organizations. 
 
 They propose forming a company similar to the " United Kingdom Temper* 
 «nce and (ieneral Provident Institution,"* of Great Britain, established in 1840, 
 which is one of the most prosperous British Life Companies. The mortality of 
 total abstainers in this Company, for the last seventen years, was thirty 
 per cent, less than that of the " general'* class inEured by the Company, 
 notwithstanding the great care exercised in the selection of risks in 
 this class. These facts sh«iw beyond doubt that there is an opening in this coun- 
 try for a company that will do justice to total abstainers. 
 
 " The stock books for the new company which has its head office in Torbnto, 
 ere now open and a considerable amount of stock has been subscribed. Persons 
 seeking a protitable and safe investment would do well to apply at once. " — Daily 
 Mail. 
 
 " A stock book having been opened, a considerable amount of the stock has 
 been subscribed and the balance will no doubt be quickly taken up, aa there is no 
 stock that is safer and pays better dividends than that of Life Assurance Compaa* 
 ies." — Daily Globe. 
 
 Persons wishing stock or Agency of the Company should apply at once to 
 /?IIm '^^^^^'J[f}^&^^'ll^,gV^*^* ^ Adelaide Street East, Toronto 
 
 9 
 
 «'n ^so» -.