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The following diagrams illustrate the method: L'exemplaire filmd fut reproduit grdce 6 la g6n6rosit6 de I'dtablissement prdteur suivant : La bibliothdque des Archives publiques du Canada Les cartes ou les planches trop grandes pour dtre reproduites en un seul clich6 sont film6es 6 partir de Tangle sup6rieure gauche, de gauche 6 droite et de haut en bas, en prenant le nombre d'images ndcessaire. Le diagramme suivant illustre la mdthode : 1 2 3 r lu ^ SOME CANADIAN RAILWAY AND COMMERCIAL STATISTICS. BY JOSEPH G. COLMER, Esq. 9, ADELPHI TERRACE, STRAND, LONDON, W.O. READ BEFORE THE ROYAL STATISTICAL SOCIETY FEBRUARY 21, 1888. ^ 1888 •»^> ^i: HAKHISON AND lOHS. PBINTKK8 IN OKDINABT TO BES UAJEaTT, 8T MABTIN'B LANS AN OUTLINE OF THE OBJECTS OF THB ROYAL STATISTICAL SOCIETY. The Royal Statistical Society was founded, in pursuance of a recommendation of the British Association for the Advancement of Science, on the Itith of March, 1834 ; its object being, the careful collection, arrangement, discussion and publication, of facts bearing on and illustrating the complex relations of modern society in its social, economical, and political aspects, — especially facts which can be stated numerically and arranged in tables ; — and also, to form a Statistical Library as rapidly as its funds would permit. The Society from its inception has stead 'ly progressed. It now possesses a valuable Library of more tuan 20,000 volumes and a Reading Room ; Ordinary Meetings are held monthly from November to June, which are well attended, and cultivate among its Fellows an active spirit of investigation: the Papers read before the Society are, with an abstract of the discussions thereon, published in its Jmirnal^ which now consists of fifty annual volumes, and forms of itself a valuable library of reference. The Society has originated and statistically conducted many special inquiries on subjects of economic or social interest, of which the results have been published in the Journal, or issued separately. To enable the Society to extend its sphere of useful activity, and accomplish in a yet greater degree the various ends indicated, an increase in its numbers and revenue is desirable. With the desired increase in the number of Fellows, the Society will be enabled to publish standard works on Economic Science and Statistics, espe- cially such as are out of print or scarce, and also greatly extend its collection of Foreign works. Such a well-arranged Library for reference, as would result, does not at present exist in England, and is obviously a great desideratum. The Society is cosmopolitan, and consists of Fellows and Hono- rary Fellows, forming together a body, at the present time, of over one thousand Members. The Annual Subscription to the Society is Two Guineas, and at present there is no entrance fee. Fellows may, on joining the Society, or afterwards, compound for all future Annual Subscrip- tions by a payment of Twenty Guineas. The Fellows of the Society receivi3 gratuitously a copy of each part of the Journal as published quarterly, and have the privilege of purchasing back numbers at a reduced rate. The Library (reference and circulating), and the Reading Room, are open daily for the convenience of Members. Nomination Forms and any further information will be fur- nished, on application to the Assistant Secretary, 9, Addphi Terrace, Stramdy W.C., London. - C 'Acv'e .It SOME CANADIAN RAILWAY AKD COMMERCIAL STATISTICS. 'AcV'fe" a^ II to (31) Fi'om the JouiiNAi. of thb Royal Statistical Society. Maech, 1888. Some Canadian Railway and Commercial Statistics. By Joseph G. Colmer, Esq. [Rend before the Royal Stntiatical Society, 21st February, 1888. Feedeeick Hendeiks, Esq., F.I.A., a Vice-President, in the Chair.] So many papers have been read during the past few years with reference to the Dominion of Canada, and so little ground has been left uncovered, that I must own to feeling some diffi- culty in choosing a subject, when honoured with an invitation to read a paper before this Society. However, after consideration, I have decided to place before you some observations on the develop- ment of railways and the growth of trade and commerce in Canada since the Confederation of the various provinces, and on some of the results expected to follow the completion of the Canadian Pacific Railway, a work which has justly attracted attention in most parts of the world. It is necessary to point out in the first place, that the rapid extension of railways in Canada (see Appendix A) has been mainly owing to the manner in which such enterprises have been assisted by the Dominion and Provincial Governments and by municipalities. This encouragement has assumed a much more tangible form than mere benevolent approval, for it has taken the shape of large subsidies of money, and in many cases, in recent years, of extensive grants of fertile land. There is a special department of the Dominion Government to deal with matters relating to the railways and canals of the country, with a cabinet minister at its head ; and it may be stated in passing that out of an amount of about 135 million £ sterling expended on railways, the Canadian people have in one way and another contributed 32 million £. The result of this policy is that new districts have been opened up, and older settlements developed, with a rapidity which would probably have been impossible in any other circum- stances. In most of the colonies the railways belong to and are worked by the Governments, but this principle does not obtain in Canada, with the two exceptions of the Intercolonial and Prince Edward Island Railways, which were entirely constructed with public luonev. The other lines are in the hands of companies, which hav^e vaised and spent the money required for construction and other purposes, and any subsidies of money or of land given by Governments or municipalities have as a rule been handed over absolutely, and, excepting in the case of land, forms an annual /j/f'^^ CoLMER — Canadian liaUway and Cummercial Statistics. 3 charge upon tho people. The land soon becomes of considerable value to the railway companies, as its price is naturally largely increased by the opening up of means of communication, and immediately represents a valuable asset. In addition, its settle- ment causes money to flow into the railway exchequer in the shape of earnings for the can-iage of increased traffic. The policy which has governed railway construction in Canada is very different to that prevailing in England. In the former, lines have frequently been made into the wilderness, as tho advance guards of civilisation, opening up fertile lands for the use of man which would otherwise have remained inaccessible. They have not always returned dividends immediately, but the capital has generally been issued at a discount, and taken up with a full knowledge of the circumstances, and in the hope of future incre- ment in value. Great Britain, on the other hand, has had to deal with a limited extent of country and a greater density of popula- tion — advantages from a railway, if not from a national point of view, and favourable for the raising of capital without tho aid of the State. Railway construction in Canada did not proceed at a very rapid rate prior to 1867. The first railway opened was in 1837, and to the province of Quebec belongs this honour. It ran from La Prairie — a small town 7 miles from Montreal — to St. Johns, a distance of i6 miles. The line was first worked by horses, and then by steam, but its use was discontinued some years after, and the rails removed on the construction of the Champlain Railway, now a portion of the Grand Trunk system. No further rail- ways were built till 1845, and even in 1850 only 71 miles were in operation. In the latter year, however, considerable activity appears to have been awakened, several new and important undertakings were commenced, notably the Grand Trunk, Great Western, and Northern Railways, and in 1860 some 2,087 miles had been completed. This was increased to 2.380 in 1867, and in Appendix B will be found a statement giving the names of the lines then in operation, and the cost of their construction. Railway statistics for that period are not easily obtainable, but it is interesting to know that in 1866 the earnings of 2,150 miles of line were 1 1^ million of dollars, and the expenses 6| millions, leaving a surplus of ^ .illions, sufficient to pcy nearly five per cent, upon the capital contributed by the public. About this time several new companies were incorporated, and the mileage increased gradually until in 1874 it is recorded as 2,642. In 1875 it had advanced to 4,826, owing to the completion of works in progress on the Great Western, Intercolonial, Prince Edward Island, and other railways. The rapid increase a2 i COLMER — Some Canadian Railway continued, until in 188G thoro were 10,697 miles in operation, while 1 1,523 miles were actually completed, and a further 751 miles under construction (see table in Appendix). Of this mileage the Govern- ment have constructed and work 1,190 miles. Included in the figures are of course the 4,319 miles owned and controlled by the Canadian Pacific Railway Company, whose lino from ocean to ocean was completed in 1885. To summarise, the miles of railway in operation increased ti ^m 2,258 in 18G7 to 10,697 in 1886. In the same period the population advanced from 3,400,000 to nearly 5,000,000, the annual revenue from $13,687,928 to $33,177,040, and the annual trade — not including the inter-provincial trade — from $131,027,532 to $189,675,875. This forms a very satisfactory and striking record of the progress made in recent years, and consider- ing the immense area of country still to be opened up for settlement, and the varied nature of its resources, it is certain beyond a doubt that great development will be apparent in the future. Canada now comes after Great Britain and India (even if not entitled to precede India) in the British Empire in the extent of railways, and in the 1885 returns of the railways of the world she held the eighth place on the list, a position most creditable to a community containing but 5 millions of people. As the result it is now possible to travel from any Canadian Atlantic port to the Pacific ocean entirely through British territory, and there are no places on the way of any importance which do not possess the advantages of railway communication. It is the custom of many persons to shrug their shoulders eloquently when mention is made of railways in Canada as an investment. I wish to claim your attention for a few minutes on this matter, as it is one of great importance. I will take as the basis of my remarks the list of railways, in whose bonds and stocks transactions take place in London, quoted each week in the " Canadian Gazette." The nominal capital included in this statement amounts to about 104 million £ sterling. An analysis shows that 34,481,908/. of this (including over 8 million £ of Grand Trunk capital) is quoted at par and above, and regularly pays dividends varying from 4 per cent, upwards. Then there is 58,017,461/. quoted under par, of which however 18,969,995/. (including about 2 million £ of Grand Trunk capital) regularly pays dividends ; of the balance of 39,047,466/., 38,091,466/. repre- sents Grand Trunk Railway capital, 17,933,791/. of which has paid dividends frequently, while on the remainder, that is the ordinary stock, no dividends have ever been paid. The remaining 11^ mil- lions is not quoted on the market, but it is not by any means worthless. Seven and a half millions of the stock is not known on the London market, is held by contractors or other companies, ; and Commercial Slalialics. or at any rate is not in tho posscHsion of the public. I have the authority of the editor of tho " Stock Exchange Year Book " for this statement. Of tlie remaining 4 millions more than 3 millions is dividend paying, and is not quoted because there is no demand for it. Deducting the Grand Trunk capital not earning dividend in 188G, and tho stock mentioned as not known hero, the amount invested in Canadian railways is reduced to about 58^ million £, over 56^- millions of which is dividend earning, and cannot bo purchased below its par value except in a very few cases. It is right I should explain that my calculations of the dividends earned by Canadian railways were taken from financial publications issued early in 1887, which of course dealt with the first half of the previous year only. Since however my paper has been printed, the 1888 editions of the works referred to have been published, and they strengthen my case considerably. For I find that the 4 per cent, guaranteed stock of the Grand Trunk Railway, amounting to 5,219,194/., paid dividends in May and October last year, and also the arrears of the first six months of 1886. In addition, the first preference stock, 3,218,149/., paid 2 per cent, in October last. Then again for the half year ended 31st December last, dividends are to bo paid on tho 4 per cent, guaranteed stock (5,219,794/.). The full dividend of 5 per cent, is also to bo paid on the first preference stock (3,218,149/.) for the whole year, and a dividend at the rate of 13.S. ^d. per annum on the second preference stock (2,327,795/.). Therefore this leaves about 7,168,055/. of Grand Trunk third preference stock (which has paid dividends in the last few years, though not recently), and the ordinary stock as not at present earning any dividend. To the extent by which the amount of Grand Trunk capital not earning dividend is reduced, so is the proportion of capital invested in the Canadian railways which is dividend-earning increased, and by so much is my contention strengthened, that the general unfavourable reputation which has been given to Canadian railways as investments is not deserved. As to the Grand Trunk Railway, let me say that it has been an immense boon to the country, and an impoi-tant factor in its development. It is a matter for regret not only to the share- holders, but in many other ways, that its success as a financial enterprise has, owing to exceptional circumstances, been somewhat delayed, but for this Canada is not to blame. Indeed the country has suffered from it, as it is indirectly responsible for the diver- sion of a good deal of capital and labour which might otherwise have been used to open up its varied resources. The future of the district served by the railway has no doubt been somewhat discounted, but I look upon that future hopefully, and there are many who believe, both in Canada and in. Great Britain, that there 6 COLMER — Sumr Canadian Railway is an ora of prosperity bcforo tho company. It owns and controls about 2,600 railes of lino in tho Dominion, and liesidivs has most valuable connections vvitli the United States' railway system ; tho country throu^'h which it runs is very fertile and by no means so woll populated as it is bound to bo at no very distant date ; and tho general development of agriculture, manufactures, and trade and commerce which is taking place must beneficially nffect all railways. There can be no doubt Avhatever that in tho future as in the past, the Grand Ti-unk Railway is bound to be inseparably associated with the progress of tlu; Dominion, and to share in connection with other Canadian railways the prosperity that is believed to be before the country, A few words as to the railways worked by tho Government will no doubt be int( siting. The main line of tho Intercolonial Railway runs from Halifax to Quebec, a distance of 688 miles, and forms a part of the through mail line from the Atlantic to tho Pacific Ocean. The construction of the railway was one of the conditions upon which the maritime provinces joined the Confed- eration, and it was also desired for military purposes by the Imperial Government, who guaranteed the interest on a loan not exceeding 15 million $ towards its cost. It is largely owing to official representations that, for military reasons, the line takes an apparently circuitous route. The total mileage, including branches, is 886 miles, and the amount expended upon the railway up to the 30th June, 1886, was about 9 million £ sterling. It is hardly neces- sai'y to say that the guarantee referred to was purely a formal matter, as Canada has regularly paid the interest upon the money borrowed for the purpose, and the Imperial Government has never therefore been required to contribute a penny towards the expenditure. The following figures will give an idea of the progress made by the railway in recent years : — Earnings Freight carried tons Passengers carried No. 1886. $2,383,201 1,008.545 889,864 The expenses however have more than kept pace with the increase in the earnings, and there is usually a small deficit, which has to be made up out of the Canadian revenue. Some- times it is very small, and in 1886 it was about 20,000^. This is largely owing to the route taken by the railway, and to the fact that low rates are charged by the Government primarily to encourage trade and commerce, and to develop the country through which it passes. It has been an important factor in the and Commercial Statistics. pommoroial and political dovolopmont of tho maritlmo provinces, and indeed of tho whole of Canada, for without it confederation would have been more or less impossible, and tho Dominion would have been barred from access to the Atlantic Ocean in tho winter excepting through tho United States. Tho Windsor branch, which runs from Halifax to Windsor (32 miles), is maintained by tho Government, but worked by tho Windsor and Annapolis Railway Company. The Government's share of the earnings is generally sufficient to cover tho expenses of maintenance. In 188G there was a profit shown of 1^4,429. What is known as the Eastern Extension Railway extends from New Glasgow to Port Mulgrave on the Straits of Canso, and connects with Capo Breton by means of a ferry. It is 80 miles long, and was purchased from tho Nova Scotian Government in 1884 by the Dominion Government for $1,200,000. The total capital expenditure to June, I88G, was $1,284,496. In 1885-8G tho earnings were $66,893, and tlie expenses $94,756. The repairs and renewals were exceptionally heavy, and there was a decrease in the earnings due to a falling off in the fish traffic. The Prince Edward Island Railway, with a mileage of 211^ miles, was opened for traffic in April, 1875. It was built as a condition of the Island joining the Confederation. Its cost up to the 30th June, 1886, was $3,735,981. The traffic of the road is comparatively light, and it is likely to be some time before the receipts cover the expenditure. In 1885-86 the earnings were $155,584, and the expenses $216,744. As a net result the Government railways in 1885-86 were worked at a loss of $190,637, which was larger by $65,170 than in the preceding year, but it is stated in the Official Statistical Abstract in explanation, that on the Intercolonial Railway $1 15,000 were spent for improvements generally charged to capital, and that the repairs necessary on the Eastern Extension Railway were unusually heavy. Taking the financial position of the Canadian railways how- ever as a whole, the result is very satisfactory. The total capital from all sources so invested is $653,376,144, but from this must bo deducted Government and municipal aid amounting in all to $156,904,449, leaving a balance of $496,471,704 as representing the capital subscribed by the public. For this sum, which is about equal to the capital of the London and North Western Railway Company with its 1,800 miles of line, Canada has a mileage of close upon 12,000. I append a statement showing the traffic and working expenses for the last ten years, for the last few years of which it must be remembered that Canada has felt, to a certain extent, that wave of depression which has been passing over the world. 8 CoLMER — Some Canadian Railway Number Tons of EHrniiigs, in Working Year Miles. of Passengers Expenses, in Curried. Freiglit Curried. Dollars. Dollars. 1877 ... 5.574 6,073,233 6,859,796 18,742,053 15,290,091 '78 .... 6,143 6,443,924 7,88.^,472 20,520,078 16,100,102 '79 .... 6,484 0,523,816 8,348,810 19,925,066 16,188,282 '80 .... 6,891 6,462,948 9,938,858 23,561,447 16,840,705 '81 .... 7,260 6,943,671 12,065,323 27,985,509 20,121,418 '82 .... 7,530 9,352,325 13,575,787 29,027,789 22,390,709 '83 .... 8,726 9,579,948 13,266,255 33,244,580 24,691,667 '84 ... 9,658 9,981,358 13,712,269 33,481,705 25.595,342 '85 .... 10,149 9.672,599 14,659,271 32,227,409 24,015,351 '8G .... 10,697 9,861,024 15,670,460 33,389,382 24,177,582 It must be borne in mind that many hundreds of miles of the railways constructed since 1880 run through districts very thinly- inhabited at present, and have not yet made any appreciable effect upon the above returns. The passenger traffic has however increased by more than 50 per cent, since 1877, freight traffic by 130 per cent., earnings W 83 per cent., while the working expenses are only 60 per cent higher than they were. Tlie proportion of working expenses to receipts in 1877 was 81 per cent., in 1886 it was 72 per cent. Things therefore seem to be moving in the right direction. I can remember the time when some of our great English lines were not as prosperous as they are now, and I think that an examination of the Board of Trade returns would reveal the fact that there is still a very large amount of capital locked up in British railways which does not yield any return. But as I have shown the financial position of Canadian railways is on the whole very satisfactory, and the country is only on the threshold of the progress that is before it. Canada has 12,000 miles of railways, representing a capital of about 8,500^. per mile. The Atlantic and Pacific provinces are now connected, and with an outlet on the Pacific as well as on the Atlantic, the opportunities and facilities for development are greater than at any previous time. These new facilities have not yet been availed of to any great extent, but it will be generally admitted that in consequence of their existence and the rapid increase in trade and commerce which is expected to follow, the railway outlook, in connection with future traffic, earnings, and profits, is very hopeful. The national credit of Canada has much advanced in the last twenty years, even in the last ten years (not long ago 5 per cent, had to be paid for Government loans, while two years ago money was borrowed at 3I per cent., and this stock issued at 91 has now risen to 104), and the credit of the railways has also improved in sympathy, although not to so large an extent, but progress and development, which benefits the community as ! and Commercial Statistics. 9 IJL'iises, ill ,)olliira. ,290,091 ,100,102 ,188,282 ,840,705 ,121,418 ,390.709 ,691,667 .595.34* .,015.351 .,177.582 es of the ry tliinly ble effect however ht traffic working re. The is 81 per em to be me when 3 as they of Trade ery large does not position and the is before a capital dnces are reW as on jment are 1 have not generally the rapid ollow, the lings, and has much y^ears (not >ans, while this stock e railways an extent, imunity as a whole, mast also operate favourably upon railway receipts. As to the general effect of the railway enterprise to which I have been referring, it is sufficier+ to say that without it Canada could not possibly have prospered as she has done, although as already stated the country cannot yet be said to have felt anything like the full influence of the construction of the great works which the last few years have witne.'.sed. Manitoba and the North- West, and British Columbia, ten years ago had no railway communication, and it is only as yesterday that this necessity of modern times was extended to them. On the other hand, the western portions of the United States have been traversed by railways for forty years, and the result is that their population is numbered by millions, while owing to the inaccessibility of the Canadian prairies until recently, their inhabitants are still computed by thousands. As a rule it is only possible to get accurate statistics of the progress of Canada in the census years. A special census of Manitoba was however taken in 1886, which gives a record of the progress made since 1881. As the province only received railway communication in 1878, and as there were no extensions of importance until after 1881, a comparison of the figures enables a very good idea to be formed of the development which has taken place. The following figures will be interesting on this point : — Population School attendance Owners o£ land Area of land occupied acres ,, cultivated , Oxen, &c No. Slieep „ Swine „ Butter made lbs. Cheese ,, „ Capital invested in manufactures ... Hands employed Value of raw material used „ products 1881. 1886. 62,260 108,640 6,979 17,579 8,742 16,351 2.384,337 4,171,224 250,416 752,571 60,000 144,600 6,000 16,000 I7,28z 101,490 1,000,000 3,500,000 iy,68i 74,825 £276,666 £682,226 344 545 £384.964 £562,967 £682,605 £1,079,893 These figures are all the more remarkable owing to the fact that a considerable depression and stagnation took place for a time after the inflated speculation which raged in Winnipeg in 1881-82. But for the energy which has been displayed, these provinces must have remained isolated not only from each other and from the eastern provinces, but from Great Britain; the development of the Dominion would have been retarded ; emigrants would have been obliged as they were in the past to settle under another flag ; B I 10 CoLMER — Some Canadian Railway the new markets for British products, and the new source of food supplies to Great Britain, which the western provinces are likely to prove as they become filled up with people, would have remained closed ; and the alternative route to the East, the " Queen's High- " way," as it has been appropriately called, would not have become an accomplished fact. It cannot be too strongly emphasised that the Canadians have done much in a national sense towards building up the railway system by their contributions in aid of the various lines, and in the building of such railways as the Intercolonial and Canaaian Pacific. Without them the country would in all pro- bability have remained scattered and divided, as was the case before Confederation, instead of being politically and commercially united as at present. Since confederation commerce has also progressed very rapidly, and in order to illustrate this in a general way I have prepared a statement (Appendix C) showing the total aggregate of the import^ and exports from 1868 to 1886. This return, although satisfactory in itself, does not by any means give an adequate and comprehensive idea of the commercial progress of Canada in recent years. It merely shows the outside trade of the Dominion, and does not take into account either the immense strides made by the country in developing its resources, and the consequent increase of the inter-provincial trade, rendered possible by tlio construction of connecting railways, or the increase that it. apparent in the wealth of the inhabitants. The increase of the trade from $i£ 1,027,532 to 3189,675,875 in the period mentioned indicates progret;3, but a glance down the list shows how the figures have varied. In 1873 they were as high as 3217,801,203, in 1879 as low as 3153,455,682, and in 1882 reached the total of 3230,339,826, Canadian trade moves in cycles as in other countries, and I have therefore divided the nineteen years into four periods, the first of four and the rest of five years, in order to arrive at a comparative yearly average for the following periods : — 1868-71 145,142,974 '72-76 200,914,189 1877-81 175,817,472 '82-86 209,511,158 It is only fair to say that in the third period Canada was sufPering from extreme depression. Besides the country has, it is truly said, been undergoing a transition within the last nine years. Although agriculture is the premier industry, and must remain so for a long time, owing to the immense areas of fertile land awaiting cultivation, it is apparent even to the superficial observer that the manufacturing industries are developing in a very marked manner. . , , . • • and Commercial Statistics. ' 11 The imports for 1885 are below divided into classes, to give an idea of the nature of the trade. Similar figures are given for i the year 1875, for purposes of comparison : — i Imports hy Classes {Home Consumption). 1875. 1885. i Manufactures of iron and steel ., $ 19,095,716 1,491,384 2,219,160 9,830,836 12,767,575 21,339,991 29,042,973 10,652,870 2,210,085 10,968,067 $ i 11,657,189 1 2,309,771 2,305,168 6,241,283 j 9,05^,626 17,258,514 ' 18,089,941 20,035,767 2,954,244 1 12,571,009 : i „ metals other than iron „ silk it Dlill jj cottons ,. woollens All otlier manufactures Food, and drink Raw material Coin and bullion Miscellaneous It will be seen that the imports of all kinds of manufactures have decreased, but it is equally a fact that the corresponding industries of the Dominion have increased in a still larger ratio. In support of this statement the importation of raw materials may be quoted. The cotton imported from 1874 to 1878, five years, aggregated 25,641,000 lbs. From 1881 to 1885 it had increased to 104,528,000 lbs., or more than quadruple that of the first period. In the same time the importation of wool increased by 15,439,124 ' lbs., and the exports decreased 6,627,563 11 , or a difference com. 1 paring the two periods of 22,066,783 lbs. available for manufac- It is difficult to get reliable statistics relating to the manufacturing industries, excepting at the time the census is taken every decade, was made between 1871 and 1881 : — | 1871. 1881. Canital invested $77,694,020 187,942 $40,851,069 $221,617,773 $165,302,623 254,935 $59,429,002 $309,676,068 Hands employed Amount of yearly wages Total value articles nroduced A list of the principal industries established in Canada at the last census of 1881, with the amount of capital so invested, and the estimated yearly product, is given in Appendix D, It has been stated by successive Ministers of Finance, in making their annual statements, that the industrial development has been more marked since 1881 tha,n in any previous period in the industrial history of b2 1m CoLMER — Some Canadian Uailway Canada. A partial investigation made in 1884 and 1885 indicated that in the older provinces there had been in 1884 over 1878 an estimated increase of 75 per cent, in the number of hands employed, in the amount of wages paid, and in the capital invested, while in the value of goods produced the increase had been 93 per cent. As also bearing upon this point I may say that in 1871 there were twenty cities and towns of 5,000 inhabitants and over with a total population of 430,043, and tliat in 1881 the number had advanced to 37, with a total population of 660,040, an increase of 85 per cent, and 53 per cent, respectively. The smaller towns and villages would probably show a greater comparative increase were statistics available, and I believe that the next census in 1891 will indicate a remarkable advance bci^h in the growth of the urban and rural population. Those who saw the machinery, general hardware, wooden ware, silks, cottons, woollens, leather goods, stationery, books, boots and shoes, pianos, and articles of food and domestic use in the Canadian court at the Colonial and Indian Exhibition in 1886, will be able to form some opinion upon the industrial development of the country, although the display was not by any means so complete as it might have been made. The development of local industries no doubt accounts for the slow, though satisfactory, progress in the outside trade, compared with the rapid increase in the population and having regard to the extent of territory available for settlement. The extension of railways, and the fact that free trade prevails amongst the various provinces of the Dominion, has no doubt caused a large increase in the interprovincial trade, which does not appear in the trade and navigation returns. Take as an instance Nova Scotia coal. In 1865, that is before the reciprocity treaty with the United States was abrogated, the total coal sold amounted to 635,586 tons, of which 465,194 were exported to the States, leaving 170,392 as consumed in the maritime provinces. In 1886 the total coal sales were 1,373,666 tons, of which 60,646 tons only went to the United States, the balance being largely consumed in Nova Scotia, New Brunswick, Quebec, Prince Edward Island, and Newfoundland. Yet in the trade returns of 1886 Nova Scotia is only shown as export- ing 233,000 tons. No doubt other instances could be given with regard to many commodities of which Canada imports less than formerly. But that the Canadians as a people are increasing in wealth and have more money at their command, will be apparent from the following table ; and it is stated on good authority that the imports of Canada now include more articles of a valuable nature than formerly, the cheaper lines of goods at present made in the country superseding those of a similar kind previously pur- chased in Great Britain and in the United States : — I and Commercial Statistics. 13 Deposits in tlie chartered banks of Canada .... ,, savings banks Discounts ven by cliartered banks of Canada Imports Exports Shipping employed (not including) . coasting vessels) / Shipping employed (coasting trade) .... „ Life insurances effected in Canada Fire , Business failures Total consumption of coal tons „ production of coal (including! British Columbia, Nova Scotia, and > „ the North West Territory) J Banking capital Notes in circulation Liabilities of banks Assets of banks , 1868. 32,808,104 4,360,692 50,500,316 73,459,644 57,567,888 12,982,825 10,300,939* 35,680,082 188,357,809 i2,334,ooot 7H>893 623,392 30,289,048 8,307,079 43,722,647 77,872,257 1886. $ 103,58b,05O 45,072,880 165,044,608 104,424,561 85,251,314 13,969.232 16,368,274 171,309,688 011,794,479 10,387,000 3,515,769 2,104,179 61,841,395 29,200,627 147,547,082 228,422,353 * Figures only available since 1876. t „ 1874. The public revenue in the same time has advanced from 16s. Sd. to 28s. 6c?. per head; and the net public debt from $75,728,641 to $223,174,107. The net interest payable per head has however only- increased from 5s. 4 sterling, equal to an annual burden of I million £, and about 18 million acres of land. But the Canadians have not grumbled at accepting this responsibility. As a result of these works, Canada has been consolidated and welded together, and I have no hesitation in saying that it is the most important event which has yet happened to British North America, and one whose influence upon the future of the country it is still premature to estimate. Each province has communication with the sea board, and in consequence a great impetus must be given to the trade and commerce of the Dominion. Eastern Canada has I ! artd Cuvimercial Statidica. 19 0(1 witlii'n ' liowovcr ion of tlio ,(lian con- 1 Govcrn- ;(iii^ that/ oar.s from )iirpose of 1871, and It was tlio line aii^'omciit [larativc'ly k'tTiiments ai^feed to rific coast t tlio lino ) Savona's build the Ferry to Winnipeg", ilways, to need not elating to jlvvay was ict by the ise of the six years ace as one times. It iways, the less than om Liver- ,ailway, is .utc. The ail way has lal burden But the jility. As nd welded the most 1 America, ' it is still a with the 3 given to auada has long had railway faoilitioH, but Manitoba, the North West, and particularly British (Columbia, have until recently remained more or less isolated, and therct'oro practically undeveloped. This how- ever is now a thing of the past, the railway has opened up largo tracts of fertile land in Manitoba and the North West, unencum- bered with timber, ready for the plough, and considered to be the largest wheat field in the world, containing over 200 millions of acres all more or less suitable for agrionltural purposes, for the growing of wheat and other crops, and for the raising of cattle. This part of Canada is therefore now in a position to olfer, as well as the other provinces, bright and happy homes to a large number of people, and new markets for local and British products. Rail- way construction is not likely to stop with the completion of the Canadian Pacific Railway, branch lines are being rapidly made in Manitoba and the North West, and others are sui'e to follow. But it is rather with the future results of the line from imperial and commercial points of view that I propose briefly to deal ; and in this connection 1 may say that its ternjinus has already been virtually extended from Vancouver to Hong Kong. The completion of the railway has in a measure altered the natural position of Canada, because it provides her with access to the Pacific Ocean, and consequently a position in the markets of China and Japan and Australasia, in the East generally, and in South America, which she has never previously enjoyed, and which promises a new era of commercial prosperity to the Dominion. The eastern provinces ore rapidly becoming manufacturing centres, and it is believed that an immense field also exists for development in this direction in British Columbia, as it possesses coal and iron close to each other, abundant stores of timber, excellent water power, and plenty of good harbours, and is nearer to the Asiatic continent than any European cou; *^ry or the United States. Vessels are at the present time running at regular intervals between Vancouver and Hong Kong via Yokohama, but a new, regular, and fast service will probably be established in 1889, as Her Majesty's Government have recently announced their decision to provide, in conjunction with the Canadian Government, an annual subsidy to enable a line of steamers with an average speed of 14 knots, constructed to meet Admiralty requirements, to be organised for the purpose. With- out distinction of party this decision has been warmly welcomed throughout Great Britain. It is not unlikely also that before very long there will be a direct line of steamers established between British Columbia and Australasia. A portion of Her Majesty's mails for Australasia are now conveyed via New York and San Francisco, bu i as this contract will shortly expire, there is a veiy general feelinj both in this country, in the Dominion, and in Australasia, that the opportunity should be taken of arranging for 20 CoLMKii — Sonir Canadian liailway !l I i tlio ronvoyanco of this postal matter entirely thronpli Bntish tei-ritory, and this would certainly requii-e another lino of fast Hteatners on the Pacific Ocean. TImh is the one link now wanted to place all the parts of the l^]nipire in coininunication one with the other by means of steamers flying the Union Jack. The effect on Imperial interests in the Pacific Ocean, apart from the commorcial results, of these lines of steamers, is sure to be of great importance. There has also been much discussion lately as to the laying of a telegraph line across the Pacific, and the inauguration of closer commercial relations between Canada and Australasia which the steamshij) communication will bring about, will probably hasten the completion of this work. It was discussed at the Colonial Conference, and most of the delegates expressed themselves in favour of it. Indeed, there is such a general consensus of opinion in support of the proposal, that its completion must be simply a question of time. There are many other imperial considerations connected with the Canadian Pacific route which deserve mention. It has generally been felt, and the opinion has received forcible expression during the last few months, that in time of war it would be imposfevble to rely upon the Suez Canal route as a regular means of communica- tion with the East. The Capo route is no doubt a valuable one ; but the difficulties of coaling on the way would, it is said, seriously impair its value not oaly for commercial purposes, but especially for the conveyance of troops and warlike material in time of war. None of these disadvantages can be said to apply to the Canadian Pacific route. The North Atlantic could certainly be pretty well patrolled and controlled by Great Britain, and the line from Halifax or Quebec is entirely through British territory. Then again there are abundant supplies of coal at Halifax and also at Vancouver ; therefore with steamers crossing to China and Japan and to Austral- asia, with ' speed hitherto unknown on the Pacific Ocean, we have a route as safe and secure as it is possible for any route to be, and upon which the speed can be guaranteed. Therefore the statement is justified, I think, that troops and munitions of war could be sent via Canada to China and Japan, and Australasia, more safely and probably quicker than by any other way. Besides, if Halifax and. Vancouver, in anticipation of any difficulty, were made into places d^armes, as in the case of Malta and Cyprus in recent years, bodies of troops could be conveyed from those places to India in a com- paratively short time. It is to be hoped that such contingencies may never occur, but it is very necessary in these times to bear them in mind. There has been some discussion recently and some differences of opinion upon the distances via Canada to Australasia and the East, and I have therefore prepared a table (see Appendix F) which 1 trust may be of some value in this con- and Commercial Stafuft'rg, 21 L^h British I no of fiiHt o\v wjintiid no with tho 10 offoct on commorcial Tiij)()riiinoo. 10 Inyiii^' of >n t)f closer \vhi(!h tho ibly linsten lie Colonial )mselvo8 in i of opinion e simply a ,ed with tho s generally ■lion during iposfciblo to jomniunica- [uable one ; 3, seriously especially me of war. e Canadian pretty well om Halifax again there V^aucouver ; to Austral - j,n, we have to be, and 3 statement uld be sent safely and lalifax and into places ears, bodies a in a com- ntingencios les to bear cently and Canada to ?ed a table in this con- noftion. Tho distances across the Atlantic and tlic Pacific Oceans, as well as by the otlujr routes, have been placed at my disposal by tlio Admiralty; and the distance by the Canndian Pncitic llailway has been added iu order to enable n thorough comparison to be made. I might refer, did space permit, to several other matters bearing uj)on the past and future of Canada, and among others tho canals of Canaila ami the shipping interests, each of which deserves a special chapter. I can only mention them very briefly, but I nuiy say that it is now possible for lai'go vessels to i)ass from the head of Lake Superior to Montreal through Jhitish waters — excej)ting at the Sault St. Mario lock connecting Lakes Superior and Huron — without change of cargo. Tho Dominion Government last year voted a million dollars toward < tho cost of constructing a new lock between tho Lakes iu question. The present lock belongs to the United States, who have always allowed Canada tho use of it, but it is not large enough for the trade, and besides it is desirable that there should be a British lock connecting these two great iidand seas. A very largo traffic is carried on by means of the lakes in tho summer season, in 188G the tonnage of freight passing tln*ough the present canal at Sault St. Marie was 4,527,759 tons. This is almost entirely the growth of the past few years, as five years ago the total traffic amounted to only 1,500,000 tons. Of course all this traffic does not go to Canada (tho tonnage of freight carried over tho Canadian canals in 1886 was nearly 2,600,000 tons), but it serves to show the impo lance of the great lakes and canals, and the use that is made of them. The money expended on the waterways of Canada amounts altogether to nearly 10 million £ sterling. Tho shipping interests of Canada are also very important. 1 he country owns a tonnage of 1,217,766, and occupies the fifth position on the list of the world's shipping. Steamers to the extent of 257,818 tons are included in the above figures. The shipping trading to and from Canada in 1886 amounte'^ to 21,371 vessels, of 8,044,571 tons register. In conclui. .n, I have only to sry that the interest which is being taken in Canadian progress in Gi'eat Britain is observed with much gratification in the Dominion Too much importance cannot be attached to the dissemination of information as to the position and resources of the colonies, and the various societies are doing so much good work in this direction, that it must be regarded as an evidence of their desire to bring about that closer union which is now so often discussed. The increase in population in Canada and the other colonies, and the consequent growth of commerce and mutual interests, must benefit both the colonies and the mother country, and add to the wealth, strength, and power of the whole Empire. 22 CoLMER — Some Canadian Railway APPENDIX. A. — Progress of Railway Construction in Canada.* Year Miles in Operc.iion. Year. Miles in Operation. Year. Miles in Operation. 1837 '38 '39 '40 '41 '42 '43 '44 '47 '48 '49 '50 '51 '52 '53 '54 i6 i6 i6 l6 i6 i6 i6 i6 59 59 59 71 93 212 423 657 1855 '56 '57 '58 '59 '60 '61 '62 '63 '64 '65 '66 '67 '68 '69 '70 855 1,296 1,428 1,654 1.997 2,087 2,087 2,110 2,110 2,145 2, '45 2,150 2,258 2,269 2,497 2,497 1871 '72 '73 '74 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 2.497 2,638 2,642 4,826 5.157 5.574 6,143 6,484 6,891 7,260 7.530 8,726 9.658 10,149 10,697 ^ " Eailway Statistics of Uanada," issued by the Minister of Railways and Canals, 1887. Y B. — Railways in Canada in 1867.t Namd. Grand Trunk Montreal and Champlain ... Buffalo and Lake Huron ... Great Western Northern London and Port Stanley ... Cobourw and Peterboro' Erie and Ontario Ottawa and Prescott Carillon and Granville St. Lawrence and Industry.., Port Hope and Beaverton ... Welland Brockville and Ottawa Swanstead, Shefford, audi Chambly J St. John and Shediac St. Andrew's and Quebec ... St. Stephen's Branch Nova Scotia , Total for all Canada Miles Con- structed. 905 83 160 363 95 24 32 17 54 13 12 56 25 87 43 148 99 19 145 2,380 Expenditure Government. 15,142,633 2,810,500 2,311,667 4,073,385 1 10,000 190,000 6,781,254 31,419.439 Expenditure from Otlier Sources. % 69,092,765 2,417,680 8,000,780 21,966,930 3,146,122 1,032,850 900,000 300,000 2,008,994 98,761 54,100 1,993,580 1,622,843 2,647,004 1,216,000 2,000,000 110,000 118,608,417 Total Cost. 84,235.398 2,417,680 8,000,780 24.7:/; f30 5,457,789 1,0^,850 ■; 0,00O _• , 000 . /61 54,100 ^993,580 <, 622, 843 2,647,007 1,216,000 4,073,385 2,1 10,000 300,000 6,781,254 150,027,856 + " Statistical Abstract and E cord of Canada," issued by the Minister of Agriculture, 1887. \ and Comme)'cial Statistics. C. — Total Exports and Imports of Canada, 1808-86.* 23 Year. Tot 111 Kxports, Totiil Imports. Giiiml Total, Imports luul Exports. 1868 % 57,567,888 60,474,781 73,573,490 74,173,618 82,639,663 89,789,922 89,351,928 77,886,979 80,966,435 75,875 V>' 79,323,6c 71,491,255 87,911,458 98,290,823 102,137,203 98,085,804 91,406,496 89,238,361 85,251.314 73,459,644 70,415,165 74,814,339 96,092,971 111,430,527 128,011,281 128,213,582 123,070,283 93,210.316 99,327,962 49,081,787 81,964,427 86,4S9,747 155,330,810 119,419,500 132,251,022 116,397,043 108,941,486 104,424,561 $ 131,027,532 130,889,946 148,387,829 170,266,589 194,070,190 21},801,203 217,565,510 200,957,262 174,176,781 175,203,355 172,405,454 153,455,682 174,401,205 203,621,663 221,556,703 230,339,826 207,803,539 198,179,847 189,675,875 '69 '70 '71 '72 '73 '74 75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 Total 1.565.436,478. 1,946,349,513 3.511,785,991 * Tlie percentage of duty on the total value of goods imported dutiable and free in 1868 was 12 per cent.; in 1878 it was i3"74. In 1879 the national policy was inaugurated, and a general increase in tlie tariff was sanctioned by Parliament. The percentage in consequence increased in 1880 to 16*34, and in 1886 it was i8'6o. Too much significance must not however be attached tc tliese latter figures, as although some of the duties have been increased, many reductions have also been made, and many articles have been added to the free list. For instance, in 1880 the percentage of goods imported duty free waa 20 per cent., while in 1886 it was 28 per cent. The amount of customs duties paid per head of population was 15s. <)d. and 18s. erf. in the respective years. D. — Principal Manufactures in Canada in 1881. t gvicultural imple- "I ments } oots and shoes abinet and fui-niture . ocomotive works heese factories otton istilleriea ngine building ittings and foundry "I work J lour mills urriers and hatters .... osiery •on smelting furnaces cat curing Invested Capital. 3,995,782 6,491,042 3,943,419 1,630,598 1,021,435 3,476,500 1,303,010 990,300 9,473,808 13,857,923 1,934,862 630,821 2,172,100 1,450,000 Yearly ProQuct. 4,405,397 17,895,903 5.471,742 3,956,361 5,464,454 3,760,000 1,790,800 1,338,000 11,548,088 41.772,372 3,352,961 1,385,730 '.197.514 4,084,133 Musical instruments .... Oil refineries Nail and tack factories .. Paper factories Preserving food Rolling mills Saddle and harness Sash, door, and blind 1 factories J Saw mills Shipyards Sugar refineries Tanneries Tin and sheet iron works Tobacco factories Wool cloth Invested Capital. 670,000 1,812,700 1,245,500 2,237,950 1,222,558 697,500 1,323,845 1,996,858 25,487,233 1,570,916 2,150,000 6,386,222 1,993,054 1,829,420 5,272,376 Yearly Product. 1,221,000 4,050,000 1,689,450 2,446,700 2,685,861 1,026,900 3.233.973 4.872,362 38,541,75a 3.557,258 9,627,000 »5. 144,535 3,738,246 3,060,300 8,113.055 t " Census Records, 1881." 24 CoLMER — Some Canadian Railioay E.— Exports of Canada, 1868-86 * Produce Produce of Produce Animals and Agricultural Year. the of their of the Mine. Fisheries. the Forest. Products. Products. $ $ $ $ $ 1868 .... 1,446,857 3,357,510 18,262,170 6,893,167 12,871,055 '69 .... 2.093,502 3,242,710 19,838,963 8,769,407 12,182,702 '70 .... 2,487,038 3,608,549 20,940,434 12,138,161 13,676,619 '71 .... 3,221,461 3,994,275 22,352,286 12,008,506 9,853,924 '72 .... 5,326,218 4,386,214 23,899,759 12,706,967 13,378,891 '73 .... 6,471,162 4,779,277 28,586,816 14,243,017 14,995,340 •74 .... 3,977,216 5,292,368 26,817,715 14,679,169 i9,5go,i42 '75 ... 3,878,050 5,380,527 24,781,780 12,700,507 17,258,358 '76 .... 3,731,827 5,500,989 20,128,064 13,517,654 21,139,665 '77 .... 3,644,040 5,874,360 23,010,249 14,220,617 14,689,374 '78 .... 2,816,347 6,853,975 I9,5'i,575 14,019,857 18,008,754 '79 .... 3,082,900 6,928,871 13,261,459 14,100,604 19,628,464 '80 .... 2,877,351 6,579,656 16,854,507 17,607,577 22,294,328 '81 .... 2,767,829 6,867,715 24,960,012 21,360,219 21,268,327 '82 .... 3,013,573 7,682,079 23,991,055 20,454,750 31,035,712 '83 .... 2,970,886 8,809,118 25,370,726 20,284,343 22,818,519 '84 .... 3,247,092 8,591,654 25,811,157 22,946,108 12,397,843 '85 .... 3,639,537 7,960,001 20,989,708 25,337,104 14,518,293 '86 .... 3,951,147 6,843,388 21,034,611 22,065,433 17,652,779 Coin and Bullion Miscellaneous and Year. Manufactures. Articles. Estimated Amount Short Returned at Inland Ports. Foreign. Total. $ $ $ $ $ 1868 .... 1,572,546 1,139,872 7,827,890 4,196,821 57,567,888 '69 .... 1,765,461 1,430,559 7,295,676 3,855,801 60,474,781 '70 .... 2,133,659 1,096,732 10,964,676 6,527,622 73,573,490 '71 .... 2,201,814 949,090 9,139,018 9,853,244 74,173,618 '72 .... 2,397,731 848,247 6,897,454 12,798,182 82,639,663 '73 .... 2,921,802 1,248,192 7,138,406 9,405,919 89,789,922 '74 .... 2,353,663 1,216,475 4,811,084 10,014,096 89,351,928 '75 .... 2,293,040 1,198,631 3,258,767 7,137,319 77,886,979 '76 .... 5,353,367 490,283 3,869,625 7,234,961 80,966,435 '77 .... 4,105,422 320,816 2,899,405 7,111,108 75,075,393 '78 .... 4,127,755 401,871 2,418,655 11,164,878 79,323,667 '79 .... 2,700,281 386,999 3,046,033 8,355,644 71,491,255 '80 .... 3,242,617 640,155 4,575,261 13,240,006 87,911,458 '81 ... 3,075,095 622,182 3,994,327 13,375,117 98,290,823 '82 .... 3,329,598 535,935 4,466,039 7,628.453 102,137,203 '83 .... 3,503,220 528,895 4,048,324 9,751,773 98,085,804 '84 .... 3,577,536 560,690 4,885,311 9,389,106 91,406,496 '85 .... 3,181,501 557,374 4,975,197 8,079,646 89,238,361 '86 .... 2,824,137 604,011 2,837,729 7,438,079 85,251,314 ^v> and Cummevcial Statistics. 25 F. — Distances to Australia and the East. I From London to Calcutta Bombay Fremantle, W.A. Adelaide Melboui'ne Sydney Brisbane Auckland Hong Kong Yokohama Vifl, Suez. Histance. Miles. 7,95° 6,310 9,510 10,760 1 1,060 11,530 1 1,980 i2,49ot 9,760 11,320 Via Cape. Distance. Miles. 11,780* 10,730* 11,100 11,950 12,200 12,750 13,230 12,670t 13,240 14,800 Via Queliec and C.P.R. and Pacific. Total Distance. Miles. 14,726* 15,566* 14,916 13,606 13,126 12,576 12,326 11,876 11,656 10,096 Proportion by Sea. Miles. 11,671 12,511 11,861 10,551 10,071 9,521 9,271 8,821 8,601 7,041 * Distance from Vancouver to Calcutta, 9,010 miles. ^ „ Bombay, 9,850 „ t Distance to Wellington, New Zealand. Note. — Distance England to Quebec, 2,661 miles. * 25 miles per hour on land equal to 600 miles per day. 12 knots ,, at sea „ 331 „ ^4 )> >, » » 3°7 ,» Proportion by Railway. Miles. -3,055 26 COLMER — Some Canadian Eaihvay G. — Raihmys in Canada, Name of Railway. Albert Bay of Quintd and Navigation Company Canada Atlantic „ Soutliern Canadian Pacific $3,3 1 1 ' Montreal to Ottawa (Section Q. M.O. and O. Eailway) Atlantic and North-West Manitoba South-Western Col 1 65 North Shore 208 St. Lawrence and Ottawa 61 Toronto, Grey, and Bruce 188 Ontario and Quebec 211 Credit Valley 175 Caraquet Carillon and Grenville Central Ontario Chatham Branoli Cobourg, Peterboro', and Marmora Cumberland Railway and Coal Company Eastern Extension Y Elgin, Petitcodiac, and Havelock Erie and Huron Esquimalt and Nanaimo Grand Southern Grand Trunk 894' Buffalo and Lake Huron 162 Georgian Bay and Lake Erie 172 Montreal and Champlain Junction 62 Great Western 540 London and Port Stanley 24 Wellington, Grey, and Bruce 168 London, Huron, and Bruce 69 Brantford, Norfolk, and Port Burwell 35 Midland 166 Toronto and Nipissing 112 Grand Junction 88 Whitby, Port Perry, and Lindsay 47 Victoria (Lindsay to Haliburt(m) 53 Madoc Junction to Bridgewater 9 Great Northern Hamilton and North Western Lengtli of Line. Completed. (Units Laid). Under Const luc- tioii. MilcB. 51 3 Miles. 128 — 362 — 4,319 207 — 7 45 — 13 104 9 35 32 — 80 — 27 — 72 40 83 2,598 30 8 176 — Total Subscribed. 1,184,500 105,000 3,424,400 34,493,936 183,606,793 5,802,956 180,000 700,000 6,044,867 2,153,243 5,678,938 11,590,000 1,616,000 1,374,000 100,000 3,170,000 176,000 1,158,240 894,230 1,928,041 584,150 833,000 2,531,717 873,000 233,436,969 7,237,639 3 258,250 r,089,987 18,280,660 1,121,861 2,081.309 1,424,986 30,000 12,874,880 £,047,339 445,500 317,053 498,000 191,088 5,357,963 * " Railway Statistics," issued by the and Commercial Statistics. 27 30th Jttne, 1886 * Total Capital. Paid Up. 1,184,500 80,000 3.318,480 34>493.936 173,146,705 4,140,601 176,000 700,000 5,544.867 2,153,243 2,132,989 1 1,590,000 1,616,000 7J8,46z 100,000 970,000 176,000 1,158,240 894,230 1,928,041 584,150 828,500 1,809,217 844,000 233,406,899 7,237,639 3,258,250 1,089,987 18,280,660 1,121,861 2,081,309 1,424,986 30,000 12,874,880 2,035,541 445,500 317,053 498,000 30,070 191,088 5,255,363 Government Aid. Name of Government. New Brunswick /Dominion $134,400"! \ Ontario 270,000/ ,, / Dominion L Ontario (Dominion 1,440,000"] Quebec 727,000 > » 1,176,956] /Dominion 954,000 1 \ Quebec 2,546,000 J {Dominion 2,656"! Ontario 375,282/ Ontario /Dominion 224,000"! \ New Brunswick.... 180,00c/ Ontario New Brunswick Ontario Nova Scotia /Dominion 1,284,496] \ Nova Scotia 643,545/ /Dominion 38,400"! \New Brimswick .... 107,500/ Ontario Dominion New Brunswick Dominion Ontario Ontario ,, Ontario >, ,, J, ,, Dominion Ontario Municipiil Aid. Paid Up. 455,000 318,480 147,830 57,213,519 3,313,956 3,500,000 377,938 531,000 126,500 32,000 41,740 141,230 1,928,041 145,900 83,000 410,000 15,142,033 336,000 241,270 178,630 168,350 308,212 182,500 94,958 312,000 25.088 565,020 Paid Up, $ 70,000 5,000 322,500 412,500 796,645 390,000 969,561 1,085,000 93,500 113,500 13,000 225,000 3,000 966,000 929,000 682,000 311,500 144,871 476,703 263,000 222,095 186,000 6,000 775,596 Total Cost of Railway and Rolling Stock. 1,783,356 75,439 27,387,717 173,146,705 7,500,000 5,599,651 1,003,489 5,547,338 11,590,000 1,480,781 170,000 1,400,042 702,331 1,928,041 581,150 83S,923 1,809,217 245,383,344 6,271,039 1,089,987 1,121,861 2,081,309 1,424.986 16,017,973 • ♦ Minister of Railways and Canals. 1887. Cl2 in 28 i I ' I CoLMER — Some Canadian Railway G. — Railway It in Canada, Name of Railway. Intercolonial International Irondale, Bancroft, and Ottawa Jacques Cartier Union Kent Northern J Kingston and Pembroke Manitoba and North-WeBtern Massawippi Valley Montreal and European Short L. (Oxford to N. Glasgow) „ Sorel , „ Vermont Junction Nepanee, Tamworth, and Quebec New Brunswick 1 74 New Brunswick and Canada 127 St. John and Maine 92 Fredericton 23 New Brunswick and Prince Edward Island Northern Railway of Canada 210"! Northern and Pacific Junction 71 J Northern and Western Eailway of New Brunswick North-Western Coal and Navigation Company Nova Scotia Central Nosbonsing and Nipissing Pontiac and Pacific Junction Prince Edward Island Qu'Appelle, Long Lake, and Saskatchewan Quebec and Lake St. John Central Stanstead, Shefford, and Chambly South-Eastern 152 Montreal, Portland, and Boston 45 Lake Chaniplain and St. Lawrence Junction 63 St. John Bridge and Eailway Extension St. Martin's and Upham Thousand Islands Waterloo and Mngog 39 Missisquoi Valley Western Counties 39 I 10 J Windsor and Annapolis 84 1 Windsor Branch 32 j LengtU of Line. Completed. (Rails Laid). Miles. 866 82 27 112 130 34, 45 24 29 416 32 281 67 110 6 41 211 23 82 154 43 260 2 29 3 49 67 116 11,526 Under CoiiBtruc- tiou. Miles. 50 «;o 76 40 40 73 45 88 40 75' Total Subscribed. 44,172,743 2,507,234 215,000 20,000 215,000 4,413,063 15,201,250 800,000 629,657 1,566,100 430,011 6,012,684 2,580,500 4,110,817 1,010,000 437,400 8,136,834 1,343,000 619,000 1,293,085 1,605,000 250,000 1,182,000 3,735,981 201,000 3,598,295 6,737,540 4,984.500 2,110,182 1,409,000 633,900 170,665 70,000 707,000 953,000 2,454,694 3,809,715 690,211,345 and Commercial Statinlics, 29 20th Jiine, lSS6—Contd. Capital. Paid Up. 44.172.743 2.494434 zo,ooo 135,000 4.4 '3. 063 6,451,250 800,000 375.000 1,544.972 439,011 6,012,684 2,580,500 4,iiO;8i7 728,200 211,000 8,136,834 1,229,030 401,000 1,224,173 124,476 205,000 120,090 3.735.981 201,000 1,950,360 6,586,682 4,856.392 2,110,182 1,264,280 10,827 160,665 70,000 207,000 146,343 2,454,694 3,809,715 Government Aid. Name of Government. Dominion {Dominion 156,800"! Quebec 391,122/ Dominion New Brunswick .., {Dominion Ontario 456,493 Manitoba Paid Up. 48,000! /Dominion 224,000"! 1 Annuity 155.657 J Dominion Dominion New Brunswick .1 {Dominion 118,4001 New Brunswick .... 108,000 / Ontario Dominion „ 128,000 1 { New Brunswick , 321,000 Nova Scotia {Dominion 272,000 Quebec " 5 10,000 Dominion } /Dominion 746,2951 [Quebec 1,445,000/ /Dominion 211,200"! \ Quebec 681,250/ 653,376,145 Quebec Dominion New Brunswick Quebec Nova Scotia 44,172,743 535,122 135,000 504,493 386,250 125,000 64,972 89,fi00 76,000 575,000 1,180,000 230,000 196,188 1,206,030 251,000 111,726 90,090 3,735,981 791,518 741,592 315,892 197,582 250,280 145,665 92,000 43,842 729,100 1,089,674 144,305,147 Municipal Aid, Paid Up. 225,000 49 1 ,000 215,000 65,000 82,500 23,000 47,500 60,000 80,000 631,980 210,842 103,000 528,000 25,000 36,000 10,000 15,000 38,500 250,000 Total Cost of Railway and Rolling Stock. 44,172,743 1,313,443 241,000 3,974,109 1,932,833 800,000 1,320,000 436,202 3,677,480 3,546,000 2,698,589 728,200 676,953 585,646 3,735,981 151,000 2,334,160 6,526,340 574,853 194,800 72,412 3,902,280 12.599.293 n 30 Discussion on Mr. J. G. Colmeh's Paper. Mr. W. Leigh Bernard thought that Mr. Colmer deserved the best thanks of the Society for his very able and instructive paper on Canada, which had come at a very opportune time, when the affairs of that country were being taken up and discussed with a degree of interest unknown for some time past. Many pei'sons were engaged in colonising different districts of Canada, he himself being associated with some gentlemen in colonising a portion of Alberta Province in the North- West Territory. The information to be derived from a study of Mr. Colmer's paper would be of great assistance to every one interested in the Dominion and its develop- ment. It was impossible for the public of this country to under- stand the merits of the different countries that were open for colonisation, unless the particulars of each country were placed before them by gentlemen like Mr. Colmer who could speak witii authority on the subject. It was interesting to observe the small cost of construction of railways in Canada as compai-ed with other countries ; it seemed almost past belief that such a huge system of railways as there was in Canada could have ever been constructed for such small sums of money. When they considered that the capital sunk in the railways of Great Britain exceeded even the money invested in the national debt of the United Kingdom, it Avas very remarkable that a young country like Canada, with only 5 millions of population, should have such a vast railway system, and he thought it presaged very great results for the futui^e of that country. The fact that Canada was in the eighth position of countries with regard to railways was also very important to note, and the construction of the Canadian Pacific Bail way six years before the time contemplated by the contract was a fact, he thought, unknown in the history of the construction of railways. One point in connection with Canada which had not been touched upon by the author of the paper, but which appeared to him very important, was the naturalisation laws. If any one emigrated to the United States, for example, they had to wait a considerable time before they could exercise all the rights of citizens, whereas in Canada they at once enjoyed all the privileges of citizenship as much as if they had lived there all their lives. He thought that was an important fact to be known by those wishing to settle in a new country, who do not wish to leave all the land-marks of their old country behind them. It had been pointed out how in the Colonial Exhibition they had seen so many of the products of Canada, and he was sure too much had not been said of the colonial products in that exhibition. It also seemed very remark- able that a country with a small population like Canada could actually be exporting food to the United States, a country with more than ten times the population, and he was particularly struck Discussion on Mr. Coliticr's Paper. 81 ■with the figures with regard to the cheese productions ; with regard to the shipping industry ho was agreeably surprised to learn that Canada came iit'th in the workl as a maritime nation. He would have been very glad to have seen at the end of the paper some statistics comparing Canada with other countries, as reganis railways in particular, and he lioped that the author would be able to add a tabular statement showing the comparison between Canada, the mother country, and other countries in that respect, though he was bound to admit that there was considerable difficulty in obtaining the information for such a table. Sir George Baden-Powell, M.P., said he entirely re-echoed the remarks of the previous speaker. That the author had a complete and thorough knowledge of the subject was evident in every line of the paper. Mr. Colmer had shown them with regard to railway statistics what great advances Canada had made in giving to its national body politic the main arteries of communica- tion. He had travelled over the continent of North America and over several other continents, and had carefully watched their railway communications, and he maintained that for the conve- nience of travelling, especially in winter time, there was no railway in the whole world that even approached the Canadian Pacific Railway. When travelling in various parts of the world he was in the habit of putting a thermometer on his pillow and taking a record at 11 o'clock every night. It was a very severe winter when he was last travelling in Canada, and his thermometer always registered from 50° to 55" Fahr., which was a very pleasant tem- perature in which to go to bed. That was an indication of the way in which they made railway travelling comfortable in winter. It was one of the great causes of Canadian growth that the popula- tion could travel during the whole of the severest winter with such great comfort. In Parliament last year a great effort was made to secure a subsidy for the trans- Pacific steamers of the Canadian route to the far East. The railway communications in Canada were of enormous importance to this empire, not only from a military but from the trade and postal puiuts of view. Nobody expected or wished for war to break out, but if it did, there was now a sure, safe, and reliable means of communication, via Canada, with the far East, not only for mails but also for goods. Men of- war could not go long distances without coaling, and coal was a contraband of war. In order to intercept British commerce in the North Pacific, a war vessel leaving a European country would have to travel round South America, and there was no port where a man-of-war could coal. Wherefore at Vancouver both from Canada and England there was a, base of operations which should keep the North Pacific clear of all hostile aggressors. That great advantage to English commerce would not have been within their grasp had it not been for the enterprise and loyalty of the Canadians in pushing through that great railway. He need hardly say how that railway was developing Canada, because the north-west districts, and especially British Columbia, would hardly be accessible to European trade were it not for the water 82 Discussion and railway routes which had hotjn opened up. The Austi-ah'anB too by means of that route hoped to connect tlieir in(histiies dircctl}' with Canada. There was a lar^o trade in canned fish, both hihHlcr and sahnon, which was ahiiost entirely of Jb-itish Columbian origin, and it was hoped by many Australians that by the opening up of the Pacific ports, the Canndians would be ablo to carry on that trade direct instead of it coniirig through San Francisco or some other American port. He thought the Soi-iety was greatly indebted to the author for supplying so much informa- tion. Table F, in the paper, showing the distances to Australia and the East was of special interest, because it shoAved the actual facts on which they could base any policy, especially any financial policy, they might choose to start with regard to lines for steamers and telegraphic cables. The saving in mileage via Suez in the total distance from Great Britain to the various j)laces was enormous. But it was often forgotten that whereas the average rate of the speed of ocean mail steamers was about 1 5 miles an hour, the speed already attained in the trip across Canada by railway was, he believed, something like 27 or 28 miles an hour, and when the through tiaffic was in active operation the speed would reach an average of 30 miles. In other words, for one-third of the distance via Canada the speed was twice that possible by other routes. He maintained that whichever route they took, they would have in time by the Canadian and Pacific route the shortest distance to go, and there would be an enormous saving in time to such places as Japan and China. A previous speaker had stated that he wished there had been added to the paper Australian and other colonial statistics. He (Sir G. Baden-Powell) confessed he saw a great difficulty in making out such comparative accounts, because the conditions existing in Australia, South Africa, and South America were so different, not only one from one another, but from those existing in Canada. If such comparative tables were compiled, it would be invaluable to have details with regard to the cost of the construction of railways. As far as he knew, Canada differed from the United States in the fact that her railways bad not been so liable to the peculiar financial transaction which it was said was not unknown in America. The railways had been built fairly, cleanly, and honestly, and they knew very well where the money had gone, especially in regard to the recent railway undertakings. He thought a cordial vote of thanks should be passed to the author for having given such a valuable paper to the Society ; a paper which described that great imperial undertaking which had been prophetically described so long ago as 1846 as " That gi'cat link which is required to unite into one powerful country the whole English race." Mr. F. Sharp Powell, M.P., said that if he was not out of order, he should be glad to second the vote of thanks to the author pro- posed by his name-sake. They must all have been impressed a few months since in London by what was then seen of the actual results of Canadian industry, and of the bounty of nature in that gi'eat Dominion, and he thought it was extremely interesting that in so I! on Mr. Culmcrs Vaj^cr. sliort a time after sooiiip^ tliat cxliibidon tlioy sliould liavo Huch a valuable pupcr fi^'in^ tJio full facts ami concunt rated essence of tliat which had so recently delii^htcd tlio eye. What iiad struck liim HO much in connection with Canada was the mixture o£ couray;e, entei-prise, and f()reKivr. 35 the railH wore laid at iho rate of from 2\ to 4 mili>s per day diirinj^ tlio working HCHHoiis. 'JMio v.oni of tho liitcM'-Cyolonial liailway \vnn 8,600/. per niilo, wliiuli bo thouf^lit vvaH about tlit' avera^'e cost of Canadian railways. Tbo cost of course was very niucb lews tban tbat in En^d.uid, ihou^di it was dearer tban in tbo United StatoH, bo(;auH(! tlic railway.s were bi'tttsr built. Tbo Inter-Colonial Railway was as substantial a railway as any in Kn<^laii(l, witb tbo exception tbat it was a single line. JliVerytbing was built in tbb most solid and best manner. It was not liowever of muob use to talk about tbo cost of railways, because vvbat was iibcap in ono country was tbo reverse in anotber. Mr. Robert Stepbenson Bpeaking in 185G at tbo Institution of Civil JOngineers, stated tbat tbo cost of making tbo Trent Valley Railway very little exceeded tbo parliamentary expensiis ineurrcid in ol)taining tbo Act, but of course in tlie colonies sucb expenses were not incurred. In ' iw countries government Ian;' was gianted free of cost, and all land was cbeai), tbo accommodaulon bridges were few, and tbe railways could be made at a comparatively less sum. It depended upon tbo class of railway wbetber it was cbeaj) or denr. Probably one of tbe most expensive colonial lines tbat was ever built was in Ceylon, wbere a railway was taken for 129 miles at an elevation of 5,280 feet above tbe sea, at a cost of 20,cjo/. to 24,000/. per mile. At tbo present moment tbe Government of Ceylon owned 122 miles of i-ailway, for wbicb tbey did not owe a sii>glo penny, wbilst tbo railway from Colombo to Kandy bad paid 8, 10, and 12 per cent. Mr. T. H. Ei-LIOTT said tbat like most of tbo previous speakers lie bad been mucb impressed by tbe paper, wbicb was an admirable summary of tbe commercial statistics of Canada. He had noticed witb esp -'cial interest tbe remarkable extent to wbicb Government inter I'erentc appeared to be carried in Canada; in almost every direction Government aid was indicated. Mr. Colmer bad I'oferred to Government experimental farms. Government commissions of in([uiry as to minerals, and especially to the very extensive Govern- ment assistance in railway matters. It would be very interesting to know to what extent tbey might attribute the Canadian success to this active co-operation and assistance on tbe part of the Government. It was to be remembered that in Canada in addition to the Government measures referred to, there was a highly pro- tective system. If Canada had been fostered by tbat protective system, and if Government enterprise in diiTerent directions had really bci n the means of developing the country, tbe fact might possibly constitute a useful lesson in other directions. The report of the recent commission of inquiry as to the public works of Ireland bad just been pi'esented, and possibly a little of the same enterprise and practical Government assistance might result in the same development of that country as had been achieved in Canada. Ho should be glad to have some information from the author as to the relative position of Canada to the United States. At tbe pi'esent moment in England there was a notion that a movement was proceeding in favour of activ^e commercial union witb the United States, a movement which some feared might develop into 36 Discussion proposals for political union with that country. He should be g-lad to learn Mr. Colmer's views as to the extent to which Canadian enterprise and prosperity had been affected by the relations of Canada with the United States, and especially whether those relations ^ ad in any way fettered Canadian proj^i'ess. The facts contained in the paper seemed to him to sup])ly answers to various points of inquiry, and enabled them to test the practice and actual working of economical theories. Tliere had been ji^reat enterprise on tlio part of the Canadian Government, and he thou<2^ht that similar enterprise in other directions might possibly lead to a similar happy result. The CiiAiiuiAN (Mr. F. Hendriks) said that before calling upon the author of the paper to reply, he should like to ask a few questions with respect to railway statistics in which he did not find himself quite in accord with some of the previous speakers. Ho noticed that Mr. Colmer had said that the cost of i2,oco miles of Canadian railways had been about 8,500/. per mile. On looking at the figures however he thought they aid find that the cost down to 188(3 had been 12,216/. per mile. Of course statistically that was a very startling amount of dilTerence ; he tiiought however he saw how it was accounted for : in his estimate of the lower averagre of 8,500/. per mile the author had omitted to include Government and municipal aid. He submitted that that was not quite right from a statistical point of view. If the Government and the munici- palities of Canada had come forward, as shown by the statistics, with S5 1 56,904,000 in aid of the railways, this had entailed so much ;]ebt and burden upon the Dominion of Canada, and consequently the outlay upon railways must be reckoned inclusive and not as exclusive of this large investment in aid of a special enterprise. The investment, it might be said, was to some extent recuperative, for it had the chance of producing in the end some interest or dividend. But this did not differ at all from the position of the expenditure of other and private shareholders, and he could not distinguish the one from the other. It had been suggested by one or two speakers that it would be useful to make comparisons with other countries. Of course in those mattei'S they must be careful not to put together in parallels things comparatis non coviparandis, the circumstances being so very different ; at the same time he thought the author had a little challenged such a proceeding where he spoke of the capital expenditure of our London and North Western Railway, with its 1,800 miles of line having been as great as the cost of 12,000 miles in Cmada. But such a comparison must be qualified by looking into facts. It was quite true that the railways in the United Kingdom had cost 43,365/. on an average per mile, calculated to the year 1886, as contrasted with 12,216/. per mile in Canada. But look at the enormous ditferonce in the traffic and the earnings in the two countries respectivi^ly, and observe that tlie earnings of the railways of the United Kingdom in 1886 were in proportion to those of Canada as five to one, in other words they were nearly five times as productive in gross revenue. He would not make a comparison as to the effect upon the revenue returns on Mr. Cohnfr\s Tapor. 37 arising from the number of passengers carried, although in the United Kingdom it was eiglity times as great as in Canada, seeing that the British railways included so many short lines, where the frequency of short journeys told upon the comparative number of travellers. There was another point which required explanation, namely, why the working expenses continued to be so enormous in Canada. In England they were only 52 per cent., while in Canada they remained at 72 1 per cent. He must confess that ho did not take quite the same view as the author with reference to the history of railways in Canada, for the early chapters in that history, and particularly as regards the " Grand Trunk Railway," were certainly very distressing to the people of this country. Nor did he agree with what Mr. Elliott had said with regard to the lielp which Canada had received from its Government, for the real helpers of Canada at the outset of her railway enterprise wei'e the citizens of London, And in this matter of early railway construc- tion the capital for it would never have been forthcoming but for the faith which was too implicitly reposed at the time in some ill-constructed statistical data as to the net return to be expected from Canadian railways, and which were put forward for the information of London shareholders under the authority of Canadian representatives, and with the names on the prospectuses of eminent London .financiers more or less connected with the Government agency and other interests of Canada. He did not make any imputation upon those gentlemen, for they no doubt believed at the time when the Grand Trunk Railway was started that those statistics were accurate, but they were far too sanguine in anticipating a gi-eater increase in the value of land and extent of railway-using population than had yet taken place. If its own Government help instead of that of the public of the city of London had been waited for, the progress of Canada would never have been so great. At the same time there was some "balm in Gilead," for the trade of Canada wa.5 rapidly developed through the early construction of the Grand Trunk Railroad, and there had been some indirect return no doubt to the London commercial public from the profits of trade between the two countries. At the same time he thought it was a most flagrant illustration of the error of supposing that it ever would be good policy for colonials to be waiting upon Government to help them forward in enterprises which could best be conducted by private energy and capital. Colonials who did not help themselves, but waited for Government initiative would be nowhere in the modern race of competition. In all other results the progress of the Dominion as exemplified in the paper was most gratifying. It was one good proof of Canadian prudence that they were not overcharged with debt ; because, according to the figures given by the author, the present interest per head amounted to no more than 6s. 8c?., whereas in the United Kingdom it was nearly 16s. Therefore, considering that the population of Canada wae, on the avcage, a very well-conditioned one, the burden of 6s. 8(/. per head was very slight. Now that the ''• Central Pacific Railway " was formed, and more money was wanted for it, the Canadian Government could very well afford to take their chance in that entei-prise, although they were but feeble 98 Discussion helpers indeed when the Grand Trunk Railway was bein^ first instituted. It was gratifying too, as the sign of a well-to-do community, to see the large amount of deposits, amounting to nearly 1 50 million dollars, in the hands of Canadian chartered banks and savings banks. That amount however was not so large in proportion to the population of Canada as in the case of the English banks. The population of Canada might be taken as five millions — about one-seventh of the population of the United Kingdom — bnt the deposits in the Canadian chartered banks were not more than one twenty-seventh part of those in the United Kingdom. At the same tunc a fact of some importance in making such a comparison ought to be kept in view, and that was, and par- ticularly in old countries, tliat a large proportion of those deposits represented idle capital. The imports and exports of Canada were very considerable for a compfiratively modern community. They did not however amount in proportion to those of England to more than one-seventeenth in value for imports, and one-thirteenth for exports. With regard to life assurance, it was gratifying to see such an amount of thrift in a comparatively i w colony, for the amount was about one-fifteenth of that effec^ .. in this country. He was sure the meeting would accord a hearty vote of thanks to the author for his most valuable contribution to the Journal, Mr. Stephen Bourne said he should be loth as an old member of the Society, and having experienced Canadian hospitality, to remain silent in not thanking the reader of the paper for the information he had put before them, and likewise in not expressing the greatest desire for the prosperity of the Canadian empire. The subject of imports and exports was rather a soi'e point between Mr. Colmer and himself, and they had had many passages of arms with regard to the tariff system. The small quantity of imports and exports arose from the fact that Canada instead of consuming the manufactured produce of England, as all the other colonies did to a great extent, and sending us food and raw material, exercised her capability of producing manufactured goods for herself, and therefore the intercolonial trade was larger in propoi'tion than the foreign trade. How far the prosperity of Canada might be due to the protective system he could not say. He thought that Canada would have advanced with much more rapid strides had she not fallen into that error, and when once she aAVoke to the perception of the importance of free trade, especially with the mother country, she would advance with still greater rapidity. He had been asked before he came to the meeting how it came about that Canada could bo so prosperous under the protective system. The explanation of that was twofold. In the first pl.ace she was constantly receiving from England a large amount of living machines, instruments for work born and raised and trained at the expense of the mother country, therefore she ought to be prosperous beyond the country which sustained the drain of producing tliat machinery. Again, the construction of her rail- ways and the development of her internal resources had been, as the Chairman properly remarked, fostered in the city of London, from whence there had been sent a large amount of capital to be on Mr. Culnier^s Paper, 39 expended in that conntrj, vvLich necessarily had been productive of great prosperity for the time. The same thing had happened in New ZeaLand, which country was now in a considerable state of depression, almost in danger of bankruptcy, because she had obtained labour and capital beyond her means of profitably employing. They had been told that the amount of money on deposi^ in savings banks and life assurance offices was small, but he was not disposed to look upon that as an unfavourable symptom. He did not think they could measure the prosperity of a ccmntry by the amount of idle capital invested in savings banks and life assurance offices. He for one was not disposed to look with very great favour upon large investments in life assur- ance. In the long run it stood to reason that the expenditure of tht- individuals who insured their lives must be more than the sums they received in the end, because there was a vast amount of labour employed in the transaction and profit to those who carried it on. With regard to the railway system of Canada, of course no comparison could possibly be of any value between the cost of railways in different countries. The beauty of her railway system was that it connected the distant portions of the empire. He could not quite coincide with the encomiums passed upon the security with which Canadian railways were built : in a fifteen days' journey up to the Rocky Mountains, two days were occupied in being detained by accidents happening from insufficient con- struction. He did not blame the Canadians at all for that, because the railways were necessarily hastily and cheaply constructed for immediate purposes, but as they were used and became of more value, they would be strengthened and increased, and then the expense of their construction would appear very much greater than it had been hitherto. Still it was a grand enterprise, and a wonderful proof of industry, courage, during, and foresight, which had thus bridged the continent from one ocean to the other. Mr. J. G. CoLMER, in reply, begged to thank the Chairman for the kind and flattering way in which he had referred to his paper, and the meeting for the generous reception they had accorded to it. He was also particularly grateful to those gentlemen who had taken part in the discussion for the valuable information with which they had supplemented his paper. Mr. Elliott had spoken upon the subject of the relations between Canada and the United States. With regard to that he could say that Canada was one of the most loyal portions of the British Empire. Canadians vene- rated the British connection, and he did not think they would do anything to bring about a separation. In a very strong opposition paper in Canada the other day, he read a remark to the effect that if a man wanted to address a meeting upon the subject of annexa- tion to the United States, he would probably have to address empty houses ; and Sir Charles Tupper had also said he was sure no man would have the least chance of being elected to the Dominion House of Commons who advocated such a policy. Here therefore was the feeling of both political parties on the matter. Canada's commercial relations with the United States had alw.ays been most / 40 Discussion on Mr. Cohncr*s Paper. friendly. They had always done their utmost to promote and foster those feelings, and he believed some good results in this direction would probably be the outcome sooner or later o£ the negociations which had recently been going on. Besides, in the interesting message which the President of the United States recently pre- sented to the Congress, a disposition was shown to relax the high duties upon trade generally, and he thought that would be advan- tageous to the Dominion. With regard to the cost of railways, of course he did not mean in any way to make comparisons. He was only dealing with the subject from a public investment point of view ; he merely said that railways in Canada cost 8,500/. of public money. He thought it necessary to mention that, because it was only upon that portion of money that dividends had to be paid. The Government contributions had as a I'ule been given absolutely, and no return was expected except in the development which must take place in the country owing to the construction of tlie railways. As a matter of fact he pointed out that, speaking generally, investors had only paid 8,500/. per mile for their railways, although they had really cost about 12,000/. In the case of working expenses it was difficult to make any comparison between the working expenses of colonial railways and the working expenses of British railways. Labour had to be paid at a much higher rate in the colonies than the mother country ; the railways were made much more cheaply than in England, consequently a larger amount was required to bo spent in maintenance, and it was also neceasary to bear in mind that probably the current rate of expenses would enable a much larger traffic to be carried than was done at the present time. He mentioned in one part of his paper that the working expenses in 1877 were 81 per cent., and in 1886 they had fallen down to 72 per cent., showing that although the traffic had developed in a very marked degree during that period, the expenses instead of increas- ing had decrensed very I'apidly. With regard to the remarks of Mr. Stephen Bourne upon the tariif, he might mention that in Canada there was a practical unanimity of opinion with regard to the fiscal policy. At the recent general election both parties were united in regard to it, and both supported it. Mr. Stephen Bourne would admit that the country had made very rapid progress, not- withstanding the disadvantages under which he considered it had laboured, and that its condition was not unsatisfactory. It must be remembered that a policy which might be good for one country might not be good for another, and that local circumstances require consideration in every case of the kind. They might be certain that the interest of Canadians was not in any way to restrict trade, but rather to increase it with the mother country and other nations, and they were not likely to take any steps that would in any way diminish their present trade returns. They were very glad to get all the emigrants they could of the right classes, for they not only benefited the colonies, but also the mother country, where there were at present too many people. There could be no doubt that the development of the colonies within the past twenty years had had a wonderful effect on British trade returns, and this was largely owing to the construction o£ railvN ^ys and to increased immigration. BASRISON AND SONS, PRINTEBS IN ORDINARY TO UER MAJliSTY, ST. MARTINS LANE. A-- \