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Les cartes, planches, tableaux, etc., peuvent dtre film6s d des taux de reduction diff^rents. Lorsque la document est trop grand pour Stre reproduit en un seul clich6, il est film^ d partir de Tangle sup^rieur gauche, de gauche & droits, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 \AiLup Cj> .i- ADDRESS OF HIS EXCELLENCY THE GOVERNOR-GENERAL OF CANADA, ON THE SUBJECT OF ITHE RELATIONS BETWEEN THE DOMINION GOVERN- MENT AND BRITISH COLUMBIA, IN RESPECT TO THE CANADIAN PACIFIC RAILWAY. iDblivbrhd at Government House, Victoria, Sept. 20th, 18T6, TO A Deputation op the Reception Committee. VICTORIA : PBIKTED BV RICHARD WOLFENDEN, GOVERNMENT 1>RINT£R. 1876. D V r ^ ADDEESS 07 HIS EXCELLENCY THE GOVERNOR-GENERAL OF CANADA, ON THE SUBJECT OF THE RELATIONS BETWEEN THE DOMINION GOVERN- MENT AND BRITISH COLUMBIA, IN RESPECT TO THE CAV^ADIAN PACIFIC RAILWAY. DKUVaEBD AT GOVERNMENT HOUSB, VICTORIA, SbPT. 20TH, 1876, TO A Deputation of the Reception Oommittbb. VIOTOBIA : PBINTEB BT RIOHABD WOLVKIDlir, OOVXRIIIIlire PSINflBS 1876. PROVINCIAL UBRAm,- ^'fCTORlA. B. C. A.DDTIESS, Gentlemen : — I am indeed very glad to have an oppor- tunity before quitting British Columbia of thanking you, and through you the citizens of Victoria, not only for the general kindness and courtesy 1 have met with during my residence amongst you ; but especially for the invitation to the banquet with which you have honoured me. I regret extremely that my engage- ments did not permit me to accept this additional proof of your hospitality ; but my desire to see as much as possible of the country, and my other engagements, forced me most reluctantly to decline it. I shall, how- ever, have a final opportunity of mingling with your citizens at the entertainment arranged for me at Beacon Hill this afternoon, to which I am looking forward with the greatest ^ leasure. Perhaps, gentlemen, I may be also permitted tc take advantage of this occasion to express to you the oatisfaction and enjoyment 1 have derived from my recent progress through such portions of the Province as I have been able to reach within the short period left at my disposal. I am well aware I have visited but a small proportion of your domains, and that there are important centres of population from which I have been kept aloof. More especially have 1 to regret my inability to reach Cariboo, the chief theatre of your mining industry and the home of a community with whose feelings, wishes, and senti- ments it would have been very advantageous for me to have become personally acquainted. Still by dint of considerable exertion I have traversed the entire coast of British Columbia from its southern extremity to Alaska. 1 have penetrated to the head of Bute Inlet. 1 have examined Seymour Narrows, and the other channels which intervene between the head of Bute Inlet and Vancouver Island. I have looked into the mouth of Dean's Canal, and passed along the en- trance of Gardner's Channel. I have visited Mr. Dun- can's wonderful settlement at Metlakatlah, and the interesting Methodist mission at Fort Simpson ; and have thus been epabled to realize what scenes of prim- itive peace and innocence, of idylic beauty, and mate- rial comfort can be presented by the stalwart men and comely maidens of an Indian community under the wise administration of a judicious and devoted Chris- tian missionary. I have passed across the intervening Sound of Queen Charlotte Island to Skidegate, and studied with wonder the strange characteristics of a Hydah village with its forest of heraldic pillars. I have been presented with the sinister opportunity of a descent upon a tribe of our Pagan savages in the very midst of their drunken orgies and barbarous rites, and after various other explorations I have had the privil- ege of visiting, under very gratifying circumstances, the Royal City of New W4^minster. Taking from that spot a new departure, we proceeded up the valley of the Praser where the river has cloven its way through the granite ridges and bulwarks of the Cas- cade range, and along a road of such admirable con- struction, considering the engineering difficulties of the line and the modest resources of the colony when it was built, as does the greatest credit to the able ad- ministrator who directed its execution. Passing thence into the open valleys and rounded eminences beyond, we had an opportunity of appreciating the pastoral resources and agricultural capabilities of what is known as the bunch grass country. It is needless to say that wherever we went we found the same kindness, the same loyalty, the same honest pride in their country and its institutions which characterize the English race throughout the world, while Her Majesty's In- dian subjects on their spirited horses, which the ladies of their families seemed to bestride with as much ease and grace as their husbands and brothers, notwith- standing the embarrassment of one baby on the pom- mel and another on the crupper, met us everywhere in large numbers and testified in their untutored fashion their genuine loyalty and devotion to tiieir White Mother. Having journeyed Eastward as far as Kamloops and admired from a lofty erainonce in its neighbourhood what seemed an almost intermina})le prospect of grazing lands and valleys susceptible of cultivation, we were forced with much reluctance to turn our faces homewards to Victoria. And now that I am back it may, perhaps, interest you to learn what arc the impressions I have derived during my journoj''. Well, I may frankly tell yo\i that I think British Columbia a glorious Province) — a Province which Canada should be proud to possess, and whose asso- ciation with the Dominion she ought to regard as the crowning triumph of Federation. Such a spectacle as its coast line presents is not to be paralleled by any country in the world. Day after day for a whole week, in a vessel of nearly 2000 tons, we threaded an interminable labyrinth of watery lan(?s and reaches that wound endlessly in and out of a network of islands, promontories, and peninsulas for thousands of miles, unruffled by the slightest swell from the adjoin- ing ocean, and presenting at every turn an ever shift- ing combination of rock, verdure, forest, glacier, and snow capped mountain of unrivalled grandeur and beauty. When it is remembered that this wonderful system of navigation, equally well adapted to the largest line of battle-ship and the frailest canoe, fringes the entire seaboard of your Province and communicates at points sometimes more than a hundred miles from the coast, with a multitude of valleys stretching eastward into the interior, while at the same time it is furnished with innumerable harbours on either hand, one is lost in admiration at the facilities for inter-communication which are thus provided for the future inhabitants of this wonderful region. It is true at the present mo- ment they lie unused except by the Indian fisherman and villager, but the day will surely come when the rapidly diminishing stores of pine upon this continent will be still further exhausted, and when the nations of Europe as well as of America will undoubtedly be obliged to recur to British Columbia for a material of which you will by that time be the principal depos- itory. Already from an adjoining port a large trade is being done in lumber with Great Britain, Europe, \ Australia, and South America, and I venture to think that ere long the ports of the United States will per- force be thrown open to your traffic. 1 had the plea- sure of witnessing the overthrow by the axes of your woodmen of one of your forest giants, that towered to the height of 250 feet above our heads, and whose rings bore witness that it dated its birth from the reign of the Fourth Edward; and where it grew, and for thousands of miles along the coast beyond it, mil- lions of its contemporaries are awaiting the same fate. With such facilities of access as I have described to the heart and centre of your various forest lands, where almost every tree can be rolled Irom the spot upon which it grew to the ship which is to transfer it to its destination, it would be difficult to over-estimate the opportunities of industrial development thus indi- cated ; and to prove that I am not over-sanguine in my congectures I will read you a letter recently received from the British Admiralty by Mr. Innes, the Superin- tendent of the Dockyard at Esquimalt : — " From various causes spars from Canada, the former main source of supply, have not of late years been obtainable, and the trade in New Zealand spars for top-masts has also completely died away. Of late years the sole source of supply has been the casual cargoes of Oregon spars, imported from time to time, and from these the wants of the service have been met. But my Lords feel that this is not a mode to be depended upon, more especially for the larger sized spars." Their Lordships then proceed to order Mr. Innes to make arrangements for the transhipment for the dockyards of Great Britain of the specified number of Douglas jDine which will be required by the Service during the ensuing year, — and what England does in this direction other nations will feel themselves com- pelled to do as well. But I have learnt a further lesson j I have had opportunities of inspecting some of the spots where your mineral wealth is stored, and here again the ocean stands your friend, the mouths of the coal- pits I have visited almost opening into the hulls of the vessels which are to convey their contents across the ocean. When it is further remembered that inexhaust- ible supplies of iron ore are found in juxtaposition with think II per- plea- your ed to vvhose n the , and mi], fate, d to ands, spot 'it to mate indi- ) my ived oi'in- 7 your coal, no one can blame you for regarding the beautiful Island on which you live us having boon espeeiuliy favoured by Providence in the distribution of its natural gifts. But still more precious minerals than either coal or iron enhance the value of your pos- sessions. As we skirted the banks of the Fraser wo were met at every turn by the evider ^ of its extra- ordinary supplies of fish ; but scarcer less frequent were the signs afforded us of the froMon treasures it rolls down, nor need any traveller I'link 't strange to sen tlo Indian fisherman hauling out a sal uon on to the sands, fiom whence the miiior besid* him is sifting the sparkling ore. But the signs of miuoral wealth which may happen to have attracted my personal attention i\rp> as nothing, I understand, to what is exhibited in Car- iboo, Cassiar, and along the valley of the Stickeen, and most grieved am I to think that I have not had time to testify by my presence amongst them the sympathy I feel with the adventurous prospector and the miner in their arduous enterprises. I had also the satisfaction of having pointed out to me where various lodes of silver only await greater facilities of access to be work- ed with profit and advantage. But perhaps the greatest surprise in store for us was the discovery, on our exit from the pass through the Cascade range, of the noble expanse of pastoral lands and the long vistas of fertile valleys which opened up on every side as we advanced through the country ; and which, as I could see with my own eyes from various heights we traversed, ex- tended in rounded upland slopes or in gentle depres- sions for hundreds of miles to the foot of the Eocky Mountains, proving, after all, that the mountain ranges which frown along your c^ast no more accurately in- dicate the nature of the territory they guard than is the wall of breaking surf that roars along a tropic beach identical with the softly undulating sea that glitters in the sun beyond. But you will very likely say to me, of what service to us are these resources which yon describe, if they and we are to remain locked up in a distant and at present inaccessible corner of the Dominion, cut off by a trackless waste of intervening territory from all intercourse, whether of a social or of a commercial character, with those with whom we are politically united ? Well, gentlemen, 1 can only an- swer : Of comparatively little use, or at all events of far less profit than they would immediately become, were the Eailway upon whose construction you natu- rally counted when you entered into Confederation once completed. But here 1 feel I am touching upon dangerous ground. You are well aware from the first moment I set foot in the Province I was careful to in- form everyone who approached me that 1 came here as the Governor-General of the Dominion, the Eepresen- tative of Her Majesty, exactly in the same way as I had passed through other Provinces of the Dominion, in order to make acquaintance with the people, their wants, wishes, and aspirations, and to learn as much as I could in regard to the physical features, capabilities, and resources of the Province; that I had not come on a diplomatic mission, or as a messenger, or charged with any announcement, either from the Imperial or from the Dominion Government. This statement I beg now most distinctly to repeat. Nor should it be imag- ined I have come either to persuade or coax you into any line of action which you may not consider condu- cive to your own interests, or to make any new pro- mises on behalf of my Government, or renew any old ones ; least of all have I a design to force upon you any further modification of those arrangements which were arrived a in 1874 between the Provincial and the Dominion Governments under the auspices of Lord Carnarvon. Should any business of this kind ever have to be perfected, it will have to be done in the usual con- stitutional manner through the Secretary of State. But though I have thought it well thus unmistakably* and effectually to guard against my journey to the Province being misinterpreted, there is I admit one mission with which I am charged — a mission that is strictly within my f ULCtions to fulfil — ^namely — the mission of testify- ing by my presence amongst you and by my patient and respectful attention to everything which may be said to me, that the Government and the entire people of Canada, without distinction of party, are most sincei-ely desirous of cultivating with you those friendly 9 and affectionate relations, upon the existence of which must depend the future harmony and solidity of our common Domir^on. Gentlemen, this mission I think you will admit I have done my best to fulfil. I think you will bear me witness that I have been inaccessible to no one, that I have shown neither impatience nor in- difference during the conversations I have had with you, and that it would have been impossible for any one to have exhibited more anxiety thoroughly to un- derstand your views. I think it will be further admit- ted that I have done this, without in the slightest de- gree seeking to disturb or embarrass the march of your domestic politics. I have treated the exit:ting Ministers as it became me to treat the responsible advisers of the Crown in this locality, and I have shown that deference to their opponents which is always due to Her Majesty's loyal opposition. Nay, further, I think it must have , been observed that I have betrayed no disposition either to create or foment in what might be termed, though most incorrectly, the interest of Canada, any discord or contrariety of interest between the Mainland and * the Island. Such a mode of procedure would have been most unworthy ; for no true friend of the Domin- ion should be capable of any other object or desire than to give universal satisfaction to the Province as a whole. A settlement of the pending controversy would indeed be most lamely concluded if it left either of the sections into which your community is geographically divided, unsatisfied. Let me then assure you on the part of the Canadian Government, and on the part of the Canadian peoplo at large, that there is nothing they desire more earnestly or more fervently than to know and feel that you arc one with them in heart, thought, and feeling, Canada would indeed be dead to the most self-evident considerations of self-interest and to the first instincts of national pride if she did not regard with satisfaction her connection with a Province so richly endowed by Nature, inhabited by a community so replete with British loyalty and pluck, while it afforded hev the means of expending her confines and the outlets of her commerce to the wide Pacific and the countries beyond. It is true circumstances have arisen to create an un- -> 10 friendly and hostile feeling in your minds against Canada. You consider yourselves injured, and you cer- tainly have been disappointed. Far be it from me to belittle your grievancea, or to speak slightingly of your complaints. Happily my independent position relieves me from the necessity of engaging with you in any ir- ritating discussion upon the various points which are in controversy between this Colony and the Dominion Government. On the contrary, I am ready to make several admissions. I don't suppose that in any part of > Canada will it be denied that you have been subjected both to anxiety and uncertainty on points which were of vital importance to you. From first to last since the idea of a Pacific Railway was originated, things, to use a homely phrase, have gone "contrairy" with it, and with everybody connected with it, and you in common with many other persons have suftered in many ways. But though happily it is no part of my duty to pronounce judgment in these matters, or to approve, or blame, or criticise the conduct of anyone concerned, I think that I can render both Canada and British Columbia some service by speaking to certain matters of fact which have taken place within my own immediate cognizance, and by thus removing from your minds certain wrong impressions in regard to the matters of fact, which have X undoubtedly taken deep root there. Now, gentlemen, in discharging this task — I may almost call it this duty — I am sure my observations will be received by those I see around me in a candid and loyal spirit, and that the heats and passions which have been engendered by these unhappy dijfferences will not prove an impediment to a calm consideration of what I am about to say, more especially as it will be my endeavour to avoid wounding any susceptibilities, or forcing upon your attention views or opinions which may be ungrateful to you. ^ Of course I well understand that the gravamen of the charge against the Canadian Government, is that it has failed to fulfil its treaty engagements. Those engage- ments were embodied in a solemn agreement which was ratified by the respective Legislatures of the contract- ing parties, who were at the time perfectly independent of each other, and I admit they thus acquired all the 11 characteristics of an international treaty. The terms of that treaty were (to omit the minor items) that Canada undertook to secure, within two years from the date of the union, the simultaneous commencement at cither end of a railway which was to connect the seaboard of British Columbia with the railway system of the Do- minion, and that such railway should be completed within ten years from the date of union in 1871. We are now in 1876. Five years have elapsed, and the work of construction even at one end can be said to have only just begun. Undoubtedly under these cir- cumstances everyone must allow that Canada has failed to fulfil her treaty obligations towards this Province, but unfortunately Canada has been accused not only of failing to accomplish her undertakings, but of what is a very different thing, — a wilful breach of faith in having neglected to do so. "Well, let us consider for a moment whether this very serious assertion is true. What was the state of things when the bargain was made ? At that time everything in Canada was pros- perous : her finances were flourishing, the discovery of the Great North West, so to speak, had inflamed her imagination; above all things railway enterprise in the United States and genorally on this continent was being developed to an astounding extent. One trans-conti- nental railway had been successfully executed, and several others on the same gigantic scale were being projected; in fact it had come to be considered that a railway could be flung across the Eocky Mountains as readily as across a hay field, and the observations of those who passed from New York and San Francisco did not suggest any extraordinary obstacles to undeitakings of this description. Unfortu- nately one element in the calculation was left entirely out of account, and that was the comparative ignorance which prevailed in regard to the mountain ranges and the mountain passes which intervened between the Hudson Bay Company's possessions and our Western Coast. In the United States, for years and years, troops of emigrants had passed Westward to Salt Lake City, to Sacramento, and to the Golden Gate; every track *'nd trail through the mountains was wayworn ■^ 12 and well known: the location of a line in that neigh- bourhood was pre-determined by the experience of persons already well acquainted with the locality. Eut in our case the trans-continental passes were sparse and unfrequented, and from an engineering point of view may be said to have been absolutely un- known. It was under these circumstances that Canada undertook to commence her Pacific Kailway in two years, and to finish it in ten. In doing this she un- doubtedly pledged herself to that which was a physical impossibility, for the moment the engineers peered over the Rocky Mountains into your Province they saw at on'^o that before any one passage through the devious range before them could be pronounced the best, an amount of preliminary surveying would have to be undertaken which it would require several years to complete. Now thero is a legal motto which says nemo teneatur ad impossible, and I would submit to you that under the circumstances I have mentioned, how- ever great the default of Canada, she need not necessarily have been guilty of any wilful breach of faith. I myself am quite convmced that when Canada ratified this bargain with you she acted in perfect good faith and fully believed that she would accomplish her promise, if not within ten years, at all events within such a sufficiently reasonable period as would satisfy your requirements. The mistake she made was in being too sanguine in her calculations, but remember, a portion of the blame for concluding a bargain im- possible of accomplishment cannot be confined to one only of the parties to it. The mountains which have proved our stumbling block were your own mountains, and within your own territory, and however deeply an impartial observer might sympathize with you in the miscarriage of the two time terms of the compact, one of which, — namely as to the commencement of the line in two years from 1871 — has failed, and the other of which, namely, its completion in ten, must fail, it is im- possible to forget that yourselves are by no means without responsibility for such a result. It is quite true — in what I must admit to be a most generous spirit — ^you intimated in various ways that you did not 18 desire to hold Canada too strictly to the letter of her engagements as to time. Your expectations in this respect were stated by your late Lieutenant-Governor, Mr. Trutch, very fairly and explicitly, although a very unfair use has been made of his words, and 1 have no doubt that if unforeseen circumstances had not inter- vened, you would have exhibited as much patience as . could have been expected of you. But a serious crisis supervened in the political career of Canada. Sir John Macdonald resigned office, and Mr. Mackenzie acceded to power, and to all the responsibilities incurred by Canada in respect to you and your Province. Now it is asserted, and I imagine with truth, that Mr. Mackenzie and his political friends had always been , opposed to many portions of Canada's bargain with / British Columbia. It therefore came to be considered in this Province that the new Government was an enemy to the Pacific Eailway. But I believe this to have been and to be a complete misapprehension. I believe the Pacific Railway has no better friend in Canada than Mr. Mackenzie, and that he was only opposed to the time terms in the bargain because he believed them impossible of accomplishment, and that a conscientious endeavour to fulfil them would un- necessarily and ruinously increase the financial expendi- ture of the country, and in both these opinions Mr. Mac- kenzie was undoubtedly right. With the experience we now possess, and of course it is easy to be wise after t'^' event, no one would dream of saying that the liailway could have been surveyed, located, and built within the period named, or that any Company who might undertake to build the line within that period would not have required double or treble the bonus that would have been sufficient had construction been arranged for at a more leisurely rate, but surely it would be both ungenerous and unreasonable for British Columbia to entertain any hostile feelings towards Mr. Mackenzie on this account, nor is he to bo blamed in my opinion if on entering office in so unex- pected a manner he took time to consider the course which he would pursue in regard to his mode of dealing with a question of such enormous importance. His i u position was undoubtedly a very embarrassing one; his Government had inherited responsibilities which he knew, and which the country had cause to know, could not be discharged. Already British Columbia had begun to cry out for the fulfilment of the bargain, and that at the very time that Canada had come to the conclusion that the relaxation of some of its conditions was necessary. Out of such a condition of affairs it was almost impossible but that there should arise in the first place delay — for all changes of Government necessarily check the progress of public business, — and in the next, friction, controversy, and collision between the Province and the Dominion. Happily it is not necessary that I should follow the course of that quarrel or discuss the various points which were then contested. You cannot expect me to make any ad- missions in respect to the course my Ministers may have thought it right to pursue, nor would it be gracious upon my part to criticise the action of your Province during this painful period. Out of the alter- cation which then ensued there issued under the auspices of Lord Carnarvon, a settlement; and when an agreement has been arrived at, the sooner the inci- dents connected with the conflict which preceded it are forgotten, the better. Here then we have arrived at a new era; the former laches of Canada, if any such there bad been, are condoned, and the two time terms of the treaty are relaxed on the one part, while on the other certain specific obligations were superadded to the main article in the original bargain : that is to say — again omitting minor items — ^the Province agreed to the Pacific Eailway being completed in 16 years from 1874, and to its being begun " as soon as the surveys shall have been completed,", instead of at a fixed date, while the Dominion Government undertook to construct at once a Eailway from Esquimalt to Nanai- mo, to hurry forward the surveys with the utmost Eossible dispatch, and as .:oon as construction should ave begun, to spend two millions a year in the prose- cution of the work. I find that in this part of the world these arrangements have come to be known as the "Car- narvon Terms." It is a very convenient designation, and IS I am quite content to adopt it on one condition, namely, that Lord Carnarvon is not to be saddled with any of the original responsibility with regard to any of these terms but one. The main body of the terms are Mr. Mackenzie's; that is to say, Mr. Mackenzie proffered; the Nanaimo and Esquimalt Eailway, the telegraph line, the waggon road and the annual expenditure. AH that Lord Carnarvon did was to suggest that the proposed expenditure should be two millions instead of one and a half millions, and that a time limit should be added. But, as you are well a:vare, this last condition was necessarily implied in the preceding one relating to the annual expenditure, for once committed to that expenditure Canada would in self defence be obliged to hasten the completion of the line in ordi^ to render reproductive the capital she sunk as quickly as possible. It is therefore but just to Lord Carnarvon that he should be relieved from the responsibility of having been in any way the inventor of what are known as the " Carnarvon Terms." Lord Carnarvon merely did what every arbitrator would do under the circumstances ; he found the parties already agreed in respect to the principal items of the bargain and was consequently relieved from pronouncing on their intrin- sic merits, and proceeded at once to suggest to Canada the further concession which would be necessary to bring her into final accord with her opponent. In pur- suance of this agreement the Canadian Government or- ganized a series of surveying parties upon a most exten- sive and costly scale. In fact, during the last two years two millions of money alone have been expended upon these operations. The Chief Engineer himself has told me that Mr. Mackenzie had given.him carte blanche in the matter, so anxious was he to have the route determined without delay; and that the mountains were already as full of as many theodolites and surveyors as they could hold. I am aware it is said — indeed as much has been hinted to me since 1 came here — that these surveys were merely multiplied in order to furnish an excuse for further delays. Well, that is rather a hard saying. But upon this point 1 can speak from my own personal know- ledge, and I am sure that what I say on this head will ■f#^ to li be accepted as the absolute truth. During the whole of the period under review I was in constant personal com- munication with Mr. Fleming, and was kept acquainted by that gentleman with everything that was being done. 1 knew the position of every surveying party in the area under examination. Now Mr. Fleming is a gentleman in whose personal integrity, and in whose professional ability every one I address has the most perfect confidence. Mr. Fleming, of course, was the responsible engineer who planned those surveys and determined the lines along which they were to be carried, and over and over again Mr. Fleming has ex- plained to me how unexpected were the difficuties he had to encounter, how repeatedly after following hope- fully a particular route his engineers found themselves stopped by an impassable wall of mountain which blocked the way, and how trail after trail had to be examined and abandoned before he had hit on anything like a practicable route. Even now, after all that has been done, a glance at the map will show you how devious and erratic is the line which appears to afford the only tolerable exit from the labyriathine ranges of the Cascades. Notwithstanding, therefore, whatever may have been bruited abroad in the sense to which I have alluded, I am sure it will be admitted, nay, I know it is admitted, that so far as the pro- secution of the surveys is concerned, Canada has used due diligence, yes, more than due diligence in her desire to comply with that section of the "Carnar- von Terms " relating to this particular. You must remember that it is a matter of the greatest moment, affecting the success of the entii*e scheme, and calcu- lated permanently to affect the future destiny of the people of Canada, that a right decision should be arriv- ed at in regard to the location of the western portion of the line, and a Minister would be a traitor to a most sacred trust if he allowed himself to be teased, intimi- dated or cajoled into any percipitate decision on such a momentous point until every possible route had been duly examined. When I left Ottawa the engineers seemed disposed to report that our ultimate choice would lie between two routes, both starting from Fort 17 [ole of corn- George, namely, that which leads to the head of Dean's Canal, and that which terminates in Bute Inlet. Of these two the line to Dean's Canal was the shortest by some 40 miles, and was considerably the cheaper by reason of its easier grades. The ultimate exit of this channel to the sea was also more direct than the tortuous navigation out of Bute Inlet ^ but Mr. Mac- kenzie added — though you must not take what I am now going to say as a definite conclusion on his part, or an authoritative communication upon mine — that provided the difference in expense was not so great as to forbid it, he would desire to adopt what might be the less advantageous route from the Dominion point of view in order to follow that line which would most aptly meet the requirements of the Province. Without pronouncing an opinion on the merits of either of the routes, which it is no part of my business to do, 1 may venture to say that in this principle I think Mr, Macken- zie is right, and that it would be wise and generous of Canada to consult the local interests of British Colum- bia by bringing the line and its terminus within reach of existing settlement, if it can be done without any undue sacrifice of public money. From a recent article in the Globe it would seem as though the Bute Inlet line had finally found favour with the Government, though I myself have no information on the point, and I am happy to see from the statistics furnished by that journal that not only has the entire line to the Pacific been at last surveyed, located, graded, and its profile taken out, but that the calculated expenses of construc- tion though very great, and to be incurred only after careful consideration, are far less than were anticipated. Well, gentlemen, should the indications we have received of the intentions of the Government prove correct, you are very much to be congratulated, for 1 am well aware that the line to Bute Inlet is the one which you have always favoured, and I should hope that now at last you will be satisfied that the Canadian Government has used, as it undertook to do, all {)ossible expedition in prosecuting the surveys of the ine to the Pacific Coast. I only wish that Wadding- ton Harbour, at the head of the Inlet, was a better la port. I confess to having hut a very poor opinion of it, and certainly the acquaintance I have made with Seymour Nari'ows and the intervening channels which will have to be bridged or ferried, did not seem to mo to be very favourable to either operation. Well, then, we now come to the Esquimalt and Nanaimo Eailway. I am well aware of the extraordinary importance j^ou attach to this work, and of course I am perfectly ready to admit that its immediate execution was promised to you in the most definite and absolute manner under Lord Carnarvon's arbitration. I am not, therefore, suprisod at the irritation and dxcitcmcnt occasioned in this city by the non-fulfilment of this item in the agreement — nay, 1 will go further, 1 think it extremely natural that the miscarriage of this part of the bargain should have been provocative of very strenuous lan- guage and deeply embittered feelings, nor am 1 surpris- ed that as is almost certain to follow on such occasions, you should in your vexation put a very injurious con- struction on the conduct of those who had undertaken to realize your hopes; but still 1 know that I am address- ing high-minded and reasonable men, and moreover that you are perfectly convinced that I would sooner cut my right hand off than utter a single word that I do not know to be an absolute truth. Two years have passed since the Canadian Government undertook to commence the construction of the Esquimalt and Nanaimo Eailway, and the Nanaimo and Esquimalt Eailway is not even commenced, and what is more thci'c does not at present seem a prospect of its being commenced. What then is the history of the case, and who is answerable for your disappointment? I know you consider Mr. Mackenzie. 1 am not here to defend Mr. Mackenzie, his policy, his proceedings, or his utterances. 1 hope this will be clearly understood. In anything I have hitherto said 1 have done nothing of this sort, nor do I intend to do so. I have merely stated to you certain matters with which I thought it well for you to be acquainted, because they have been misapprehended, and what I now tell you are also matters of fact, within my own cognizance and which have no relation to Mr. Mackenzie as the head of a 19 ofit, nour lave very now am ;ach to to political party, and 1 tell them to you not only in your own interest, but in the interest of public morality and English honour. In accordance with his engagements to you in relation to the Nanaimo and Esquimalt Rail- way Mr. Mackenzie introduced as soon as it was possible a Bill into the Canadian House of Commons, the clauses of which were admitted by your Representatives in Parliament fully to discharge his obligations to your- selves and to Lord Carnarvon in respect to that under- taking, and carried it through the lower House by a large majority. 1 have reason to think that nuiny of his supporters voted for the Bill with very great misgivings both as to the policy of the measure, and the intrinsic merits of the Railway, but their leader had pledged himself to exercise his Parliamentary influence to pass it, and they very properly carried it through for him. It went up to the Senate and it was thrown out by that body by a majority of two. Well, I have learnt with regret that there is a very wi