^, IMAGE EVALUATION TEST TARGET (MT-3) ^^^<^4i^ 1.0 I.I 11.25 1^ m us lAO 1.4 |||M !.6 )m(j Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 J^ v^^ . \V^ CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microraproductions / Institut Canadian de microreproductions historiques \ 'A Tschnical and Bibliographic Notas/Notas tachniquaa at bibliographiquaa Tha Instituta haa attamptad to obtain tha baat original copy availabia for filming. Faaturaa of thia copy which may ba bibliographically uniqua, which may altar any of tha imagaa in tha raproduction, or which may significantly changa tha u»u9l mathod of filming, ara chackad balow. D n n n D Coloured covars/ Couvartura da coulaur r~1 Covars damagad/ Couvartura andommagte Covars rastorad and/or laminatad/ Couvartura restaur^ at/ou pallicuKa I I Covar titia missing/ La titra da couvartura manqua I I Coloured maps/ Cartes g^ographiques an coulaur Coloured ink (i.e. other than blue or black)/ Encre da couleur (i.e. autre que bleue ou noire) I I Coloured plates and/or illustrations/ Planches et/ou illustrations an couleur Bound with other material/ Reli* avac d'autres documents Tight binding may cause shadows or distortion along interior margin/ La re liure serr6e peut causer de I'ombre ou de la distorsion io long de la marge IntArieure Blank leaves added during restoration may appear within the text. Whenever possible, these have been omitted from filming/ II se peut que certainaa pages blanches ajoutiea lors d'une restauration apparaiasant dana la texte. male, lorsque cela Atait possible, ces pages n'ont pas At* filmtes. I Additional comments:/ Commentaires supplAmentairas; L'Institut a microfilm* la meillour exemplaire qu'il lui a *t* possible da se procurer. Les ddtails de cet exemplaire qui sont peut-Atre uniques du point de vue bibliographique. qui peuvent modifier une image reproduite. ou qui peuvent exiger une modification dans la mithoda normale de fHmaga sont indiquto cj-dessous. I I Coloured pages/ Pagee de couleur Pages damaged/ Pages endommeg*es Pages restored and/oi Pages restaurias et/ou pelliculies I I Pages damaged/ I I Pages restored and/or laminated/ v/ Pages discoloured, stained or foxed/ Pages d*color*es, tacheties ou piquies r^ Pages detached/ D Pages ditachies Showthrough/ Transparence Quality of prir Qualit* intgala de I'impression Includes supplementary materii Comprend du metiriel supplimentaire Only edition available/ Seule Edition disponible rri Showthrough/ I I Quality of print varies/ I I Includes supplementary material/ rn Only edition available/ Pages wholly or partially obscured by errata slips, tissues, etc., have been refilmed to ensure the best possible image/ Les pages totalement ou partiailement obscurcaes par un feuillet d'errata, une pelure. etc., ont 6ti filmies d nouveau de fapon d obtenir le meilleure image possible. This item is filmed at tha reduction ratio checked helow/ Ce document est film* au taux da reduction indiqu* ci-dessous. 10X 14X 18X 22X 26X 30X y 12X 1«X 20X 24X 2f!X 32X Th« copy filmed h«r« Hm b—n r«produe«d thanks to th« g«n«rosity of: L^iilatur* du QuMmc QuMmc L'oxomplaire filmA fut roproduit grico i la g4n4roait« da: L«giilature du QuAmc QuMmc <'^ Tha imagaa appearing hara ara tha boat quality posaibia eonaidaring tha condition and lagibliity of tha original copy and In kaaping with tha filming contract tpacificationa. Original copiaa in printad papar eovara ara {llmad beginning with tha front eovar and ending on the laat page with a printed or illuatratad Imprea- •lon, or the back cover when appropriate. All other originei coplea are filmed beginning on the first page with a printed or illuatratad imprae- sion, and ending on the laat page with a printed or illuatratad impression. Lee imegea suh/antea ont 4ti reproduitea avec ie plua grand soin, compta tenu da la condition at da la nattet* da raxemplaire film*, et en conformiti avec lea condltiona du contrat de filmafe. Lea axemplalrea originaux dont la couverture en papier eat imprimAe sent fiimia en commenqant par la premier plat et en terminent aoit par la darniire pege qui comporte une empreinte d'imprMaion ou d'illuatratlon, soit par la second plat, salon la caa. Toua lee autres exempiaires originaux tont filmte an commenpant par la premiere page qui uomporte une empreinte dimpreaaion ou d'iilustration et en terminent par la demiire pege qui comporte une telle empreinte. The laat recorded frame on each microfiche shall contain the symbol '••^' (meening "CON- TINUED"), or the symbol V (meening "END"), whichever applies. Un dee o^smboiee suhrents spparattra sur la dernlAra image de cheque microfiche, seton Ie caa: la symbols -^ signifie "A SUIVRE", Ie symbols ▼ signifie "FIN". Meps, piatea. charta, etc., mey be filmed et different reduction ratioa. Thoae too large to be entirely included in one expoaure are fllmec* beginning in the upper left hand corner, left to right and top to bottom, aa many framea aa niquired. The following diagrama illuatrate the method: Lea cartee, pianchea, tabieeux, etc., peuvent Atrs filmAa A dee taux de rMuction diffArents. Lorsque Ie document est trcp grand pour Atre reproduit en un seul ciiehA, il est fllmi A partir de Tangle supArieur gauche, de gauche k droite, et de haut en bee, en prenent Is nombre d'Imeges nAcessaire. Lao diagrammea suivanta llluatront la mSthoda. 32X 1 2 3 1 2 3 4 5 6 ■ .»«"■« ,i ARBITRATION BETWEEN •^ OI^TATllO AI^D QUEBEC, llNDETl THE imiTISTT NOUTH AMERICA ACT, IRC.T \ / \ A^llBTVllAJriO N DliTVVEEN ONTARIO AND QUEBEC, UNUEll THE imiTlSlI NORTH AMERICA ACT, 18(17. J— < ■■■ » >i The Hon. Edmund Buvko Wood, Treasurer of llic rroviucc of Oiilaru), ai)i>ears for the Trovinco of Ontario. The Hon. Christopher Dunkin, the Treasurer of the rrovincc of Que- bec, appears for the rrovinco of Que})ec. Mr. Ritchie, of Montreal, and Mr. Casault, of Quebec, appear as Coun- si'l for the Trovince of Quebec. The lion. John Rose, the Minister of Finance, being- present, produco.s and files copies of certain Minutes of Council in refcn-ence to the suiter .natters to bo submitted to the Arbitrators, marked severally A and L, and dated respectively the 29th July and 17th August, 180'J. The Treasurers of Ontario and Quebec file a memo, relative thereto, which is as follows : " The Treasurers of Ontario and Quel)ec state that the above Orders in Council have not yet been formally acted on by their respective Govern- ments ; but assent to their sooner being received, iyled and considered ad inlnim, under reserve of their right hereafter to communicate to the Arbi- trators such action of their Governments as shall bo taken in the premises. (Signed.) E. B. WOOP, CHRIST. DUNKIN. During the proceedings, Mr. Langton, the Auditor General, is sent for and (iiu'stioned as to the matters under consideration. After discussion, the Arbitrators adjourned until Thursday, the 2nd of Si'i)tember, at 10 A.M. TIIUPvSDAY, SKrTEMBER 2ni), 1870. The Arbitrators met i-Preaent as l)eroro, with the exception of MeHsis. liitcliic ami Caaault. After diseussioii, the loUowino. sUvtemeuts were directed to be prepared by the Auditor (Jeiieral, and submitted and sent, as iollovvs ; The Arbitrators direct that the IbUowing statements be prepared ; 1./ AstUementin detail by the Auditor General of the assets .'uu- meraledhxthXscLedulo of k Union Act. with such observations m explanation thereof, as ho may think necessary. ond That this statement he communicated to the Treasurers of the Jwo Provinces and that they bo called upon either to admit li^ correctness, vrenurerathi'Ae total assets to be divided under the Act, or to lay be ore So Abators, inwrituij,, such statements as may enable the Arbitrators to judge of its accuracy and to add to or amend it. if necessary. Zrd That a further statement bo prepared by the Auditor of the sums vvKioh ho Municipal Fund of Upper Canada and ot Lower Canada r(>- .ectVely.rd another accoimts hi the statements to be so P/epaiied have vScIl yearly, from the 1st January, 1863, up to the 1st July, 18(,7 re- snectiveiraml shewing tho annual percentage on the capital which has Ken mil'on each, with any other statement of facts bearing on the vahie otirseveral items in the said statements which he may think necessary aiid tLt Ihis bo commuiiicated to tJie Treasurers of the two Provmces and to the Arbitrators soon as possible. The Arbitrators adjourned to Wednesday tho 22nd day of September, at noon. ^ By mutual concurrence, tho meetmg lor the 22nd Sept., was further postponed to Thursday tho 7th October. And agahi further postponed to the 23rd October. SATUPvDAY, OCTOBEPv 23ki), 1800. The Arbitrators met :— Present, Hon. J. H. GnAY, Hon. Judge Day, Hon.D.L. Macpheuson, Mr. Dunldii, for Quebec. Mr. Wood, for Ontario, ^1 \\' .1 I Li T ^ . Tho lloii. .1. llilyiird Ciuucioii iiplH'iirH an Coiuusol for OnUiiio. /VrU'i- tlisicussioii.— Adjouruetl to Mouiluy 2r>lh, at 11 a.m. MONDAY, OCTOIJEIt 25tii, 1801). Tho Arl)itialors nu't. rroscnt:— Tlio Arbitnildrs, all. Messrs, Wood and Caiuoroii, lor OuUirio, Mossrw. JJunkiu aud Uilchio, lor Quebec, Aftor discussion, adjourned uuUl to-niorrovv,at 10 A. M. TUESDAY, OCTOBER 20Tii, 18(liV The Arbitrators mot. Present as before. Alter discussion, adjourned until 11 A. M., lo-niorrow. WEDNESDAY, OCTOBElt, '27tii, 1S(;;» Tho Arbitrators mot. Present as be lore. The Hon. Mr, Dunkin annoiinced Hint ht^ had resisj^ned the olliee ()i' Treasurer of Quebec, in accordance with the stali^nent made by him informally, on Monday last, and, this day Mr. Casault appeared with Mr. Ititchic, on behalf of Quebec. Mr. Casault stated that tho Hon. Mr. Irvine, a member of the Quebec (lovernment, was to have been pres(>ni, but was prevented by unforscon circumstances from atteudini?; but that the lion. Mr. Chaiiveau, tho Premier, intended to bo in Ottawa, to-day, and that until receiving instruc- tions from him Mr. llitchio and hiinstdf declined to assume any deiinito responsibility in tho matter, resulting from tho change hi Mr. Dunkm's position. Mr. Wood, tho Treasurer of Ontario, and Mr. Cameron with him, stated that they were prepared to proceed on b.'lialf of Ontario with lull respon- tiibility for the Governnu'ut of Ontario. Adjourned until 5. P. M. Mot at 5. P. M. All present, (and Mr, Chauveau.) The Arl)itiivi.ors miule the following order .•— H Tl»<' Counsel Ibi- the I'rovimrs ..r (iiichfc uikI Onlario tsli;ill iMvpiiiv uiul print, their respei^live cawH, anitraln. Also, lion. Mr. Chauveau, and Messrs Casauli, IMl.hie .iiid Mr Diolet on behalf of (Quebec. Hem. Messrs. Wood and Cameron not havin-' :ipp>';nv order o the 27th Oct. last, but that no .statement had ))een iurnish-Ml <• any s.>llleiuei. by the Trovinces with the Domhiion Goverment, as to lb- de.nnile aniounl of the debt, as required by that order. V / I. (^ounwl Ihcn «u ovt'i' tlu^ tU'l)lM ami iuswotw in llu' llli HtluHluh'j 'I'lu' ArbitratorH rose . > I'd judgmoul until to-morrow. AdjoiirnuK'nl, until to-morrow, at 11 A.M. FltlDAY, FEliUUARV IOth, 1S7(). TIk' Arbitrators mot, pursuant to adjournment, rrcscnt : — All parties, samo as yesterday. The Arbitrators delivered their judgment upon th(» point ar<,'ued yes- terday, and made tlio lollowing order. [S(H» judgment in tho appendix marked A.) •' The Arbitrators having heard Counsel upon tho ol»jectiou raised on " behalf of tho (.Government of Quebec, to their jurisdiction over tho sub- " ject matter of tho assets enumerated in Scjhedulo 4 of tho B. N. A. Act, "1 SOT, and duly considered tho qiiestion, are of opinion and do adiudgo " that tiie as.s(«ts so enumerated mako part of tho property and asse.^, thi^ " division and adjustment whereof has been referred to them under iih(^ " provisions of the section 142 of tho said Act, and that they have, by virtue " of the said Act, authority to divide and adjust tho same." Mr. Cameron, on behalf of Ontario, then proposed to go into tho argu- ment upon tho proposition as to tho mode for tho ili vision pointed out in tho case stated by Quebec, sub-division 3, page 6. Messrs. Casault and Ritchie, on behalf of Quebec, objected, contending that such would bo an exceptional course. After h»>aring the Counsel on both sides, as to whether the hearing the- .•ir.mment on that point and a decision thereon at this stage of tho arbitra- li(m, would or Avould not expedito the business, tho Ar])itrators reserved judgment until their next meethig. The Arl)itrators then adjourned until Monday, the 20th, at 11 A.M. MONDAY, FEBRUARY 20tii, 1870. The Arbitrators met. Present all parties as before. T'u^ Arbitrators declared their opinion that it was not desirable to interfere with the ordinary mode of proceedings in such ctuses, and that llu'vefore they would n(»i at present hear the argument upon the point i;Ms<'d bv Mr. Camrron mid objected to by Quebec. Bv aoreomeiit the coivasel then proceeded to the argument on the claim ^ofcSc to charo-o a^^ainst Ontario its capitahsed portion of the " Indian Anmnties," page 8 of the Quebec statements. Mr. Ritchie and Mi. Casanlt having been heard for Quebec ; Mr. Cameron I'or Ontario. Argument closed; and Arbitrators adjourned until to-morrow, at 11 A.M. TUESDAY, FEBRUAUY 21st, 1870. The Arbitrators met. Present as before, with Mr. Chauveau and Mr. Beaubien. Counsel selected and proceeded with argument as to the mode of dis- tribution. Mr Cameron commenced urging the modes pointed out in Nos. 1 and 2, oi" thi Ontario statements. Local debts and population. Mr. Casault, of Quebec, to be heard in reply to-morrow. Arbitrators adjourned until to-morrow, at 11 A. M. WEDNESDAY, 22nd FEBllVAllY, 1870. The Arbitrators i.iet. Tresent as l>erore, Mr. (.'asaull hoard in reply to Mr. Cameron on the pohit. Arbitrators adjourned to Friday, 2r4h. FRIDAY, 25th FEIUIUAUY, lH7t). The Arbitrators met. Tresent as before. Mr Ritchie in support of Mr. Casault ; Mr. Cameron and Mr, Wood in eplv. Mr. Casault again, explanatory and supplementary. The \rbitro.tors adjourned to to-morrow at noon. V th SATURDAY, 20tii FEBRUARY, 1870. The Aibitrators met and considered the questions submitted, and agreed ' atTt ^^^Kt^'ssary to take time to look into the points and arguments [% raised ; l<> declaiv such ihc'i.r decision u> ilic C!y. TUEA«URV i>i:i'AKTMKNT Quebec, November 11, 18(^8. Mi; Will vou i)e so Lvooc Lands Deparlment nlieii the systt-nu laslo Forward me, as soon as possible, a statement ds tram Indinn Annuities was adopted, thi h.'win^- t'h(^ (|uantily otMndian Jieseryed Lands trans (in 1807. uvtity sold, and the price, with the avrcni m due onsuch sales, the, Ist.IiUy, his ini'ormation is rcipun Or use before the Arbitrators, and an ea rly re]>ly will much oblige Your verv obedit'ut Servan (f^^igued,) a. liOlJEK.THON. Treasurer. lion. S. Ku'UAi;i)> Crown Lauds Commissioner, ccc Toronto. Audit Oi-kick, Ottawa. ^ November 2), 18i)!>. 1 am instrucU-a l»v the Minister of Finance lo inform you that ho has re- .rived a statement of ■.iu'Trovince debt fnmi the Treasurer ol Ontario, m- cludiiu? all the items which, aceordin'.- to his view, should be included m il (,r deducted fnmi it : and shewin- the amount at which he «*;*«/l«]yn hydraulic rents and road securili.'s, the. detail of which was not, settled at t i^^ ...Miferenec av Montreal ; th- Minister ot 1-inance wishes that^_ you Avould rause a similar stab^ment to be pivpaivd, shewm- your view oi the debt or vour reasons for claimins.- any chan-e in points not already settled, lie "lliinkslh-vt it would comluce" to a speedy settlement ol this long pending- 2 10 (luestioii, Avhicli ho is anxious to take up and deoido, li you wore O comiuu- nicato ATith Iho TvoasuiiM- of Ontario, so thai tho, wlxole ol tlio coiitoutious ol cacli Govonimout, should l)o boforo tho Dominion Govornmont, ^\ ith tlie reasons whic^li each may give lor assonlhig to, or dissenim-' Irom, ihe views of the others. I have the honor to l)o, ivc, (Sio-uod,) JOHN LANGTON, ^ "^ ' Auditor Hon. .1. G. K(^i;E]iTsoN, i Treasurer, > Quebec. ) Quo])eo, 2oth November, 18(5!). Sir, Will you be so u'ood as to Forward me as soon as possible, a statement showinu; the quantity of Indian Reserved Lands transferred to the Crown Lands Department, when the system of Lidian Annuities was adopted ; tho Quautity sold and the price with the arrears due on such sales the 1st JiUy,1867.' This information is reciuired for use .before the arbitrators, and an early reply will much oljligo Your very obedient Servant, (Signed,) J. G. KODEKTSON, Treasurer. Uon.S. KiriiARD.s, ) Asst.-Commmissioner, Crown Lands, [■ Toronto. ) TrtEAsuKY D]':rA iiT:\ii': .\ t, ( ) n t aim( », Toronto. 2C,{h Nov., 180!>. SlE, Yarn letter of the the 11th instant, to the Conimissioner of Crown Lands was by him, this morning, handed to me to answt'r. You ask the Commissioner to forward to you " a siatomont showing the " quantity of Indian lieservo J^^ands transferre'd to th(^ Crown Lands Depart- " ment when the system of Anuidties was adopted, the quantity sold and the " prices, with the arrears due on such sales, the 1st July, 18(17." In reply, I have to say Ihnt the managtnnent of any "Indian Reserve " Lands transferred to the Crown Lands Departmeni," was, i)riorto Confed- eration, under the control of the Indian Ali'airsllrancli of that Department, and since Confederation has been under that of the Department of th(^ Secre- tary of Stat(i for CVuiada, with whom are all the l)()oks. documents and papers relating to ludiaii aftlurSt 11 -arly Tho pvocoods ol' the sale of any such " Indian Roservo Lands ti-ansiin- rod," s'o, as I am ini'onnod, to tho evodit oftho Indians inakino- tho translor ; tlioroiovo tho information yon ask I'or cannot ])o ol>tainod IVoiu llio Crown Ijand l)o]>artmont, Ontario. I have tho honor lo l)o, etc., (Sig-nod,) i^.. 15. WOOD, 'I'roasnror. Th»> TTou. J, (5. RoiJEiiTSoN, Ike, \ (^ndx^c. jj, Depahtment ok Cuf)\vx Lands. Toronto, aotlr November, 18(59. 111 reply to your hotter oFSoth instant, I InxA'e to state ihal yonr lott(M" ol' lliollth instant was handed to tht^ lion. Mr. AVood, Tn^asuror oV Ontario, and 1 am informcul "was answered by hhn on Sotli instant, Avliich inisweryon havo no doiiht received before this dale. Your olxnlioni S<>rvant, (Sig-nod.) S. lIlCirAlMJS. (\nnmissioner IfoN, .1 . (} . IvOHKUTSON, ) Trensurer ofQuel)ec, ^ Quebec. ) Sir, QiTobec, r,Oth TSovombiM-, 18G9. Your favor of the 2Uth instant, respecting- tin* Indian lieserve Lands duly received. Tho inicn-mation I wished for, was howiner not those Indian Keservo Lands, which the Federal Crovernm(Mit took to manage, and dispose of for the, Indians, Imt tliose Indian Lands trausrerred to tln^ Crown Lands Department, and wliich wen> treated as Crown and Clergy Lmids, in I'act sold as any Common Crown Lands, in compensation for Avhich llio Oovern- ment agr(>ed to pay an annuity to the Indians, and to ])rovide Jbr which it is ]iow proposed to establish a capitalised fund Irom which such annuity shall l)(^ ]>aid. The in formal ion sought for in mine of tho 10th instant, respecting these, will much oblige me. (Si'vned,) .1. (-!. ROr.EliTSON, Tr(>osurer, W Q. Hon. E.B.Wood, Treasurer, Ontario, 12 Quebec, 30tli November, 18G9. Sir, Might I ^^"^^-xi^^^^aiJZ i:^^:',^^::^ mont, and treated as Crown Lands : 1 . The quantity of lands thns transferred ; ■' The value of such Unids ; ■). The quantity sold, or vahie then'ol ; 4. The lu-rears due on any such huuls on the 1st July, 1807. It is of inip.)rtancelhatT should obtain this inibrmation in the mterests of Quehe.-, and yo..r infornKdion on th-s. points wdl niuch obhg.^ me. (Si.n.ed.) .!.(!. ifOllERTSON, Treasiirer Hon. II. Lanokvix, ^ Ottawa. ) TlMvV^'UKY i)El'.\TMENT, ONTARIO, Toronto, -h-d December, 18G9. I have the honor to ncknowledo-e the receipt of your l^^tter of the 30th Vovember in respect to Indian Lanmitted wilh Die least possible delay. (Hii^ned,) .loilN l.WfiTO.V, Esq., ^ Auditor, / Dominion of (*;in:ida. ) .;()SEriT ELLIOT. Asst.-Treasurer. i l)i',ivM;T:\rENT(>K thk Skcuetary of State, Indian Branch, Ottawa, 8th of Dec, 18G!t. Sttj, I hav(^ the honor to inform you in reply to your letter of the 30th ultimo that, since the [Jiiion of the Provinces of Upper and Lewder Canada took clfect, no Indian Lands in Western Canada were conveyed to the Crown with a view to their i>eins- dealt with as Crown Lands, excepting those (nnbraced by the tr(\aties with the Lake Superior and Lalce Huron Indians, effected by the lion. W. B. llobinson, in September, 1850, and on account of which an annuity of !i;;-2,000 is paid to the Lake Superior Indians, and one of !!?-2.400, to the Lake Huron Indians. The quantity of la,nd actually covered by these treaties has not been determined, nor could very readily be computed with accuracy, as the ronr l){)undarie,^ of the territory covered by them have never been laid off by survey. The quantity sold can only be ascertained ])y reference to the Crown Lands DepartmiMii at Toronto, as also th(i value of the sold and unsold sur- iviulered lands, and the amount of arrears due them, on the 1st July, 18(57. You will receive herewith a schedvile of the various annuities paid over IM-riodieally to rho Indian Oliice from the Public Funds, with a view to their Ir.'inu- (lislribii.ed for the l)enolit of the various lands. I liave the honor to be, Sir, Yoiir obedi(^nt Servant, (SiiTued,) HECTOR L. LANGEVIN, Secretary of Slate. The Ilun .1(1 RoiJEiiTsoN. | Treasn. .. l^ ''roviuee of Qneber, ( s with the Indians, and in respect to which the annuities vi'ferred to have been, and continne to be, paid ^^"^^^^^j^- ^^ ^^^^^^ (Siy the Mississagiias of Skigog- Iviee and Mud Lak(^s, situ- ate in Newcastle districJ, contg. 1,951,000 acres, in 1818'; These lands formerly compos- ed the tribe known as the (-hippewas of Lak3 Huron and Simcoe, and surveyed in 1818, 1,542,000 acres. Surrender of the southerly portion of the Saugven tract in 1830. In 1819 surrendered 552,190 acres on the north side of Itiver Thames. In 18J8 surrendered 048,000 acres, Mississag'uas Tract, Home Dist. In 1820 surrendered 33,280 acres, Mohawk Township, Midland Dist. In 1827 surrendered 2,182,- 049 acres situate in the London and AVestern dist. In 1830 surrendered 25,000 acres situate in the town- ship of Zone. In 1822 surrendered Block of Lands situate in Johnston, Midland and Newcastle Dis- rict, composing 2,748,000 acres. 16 NKW ANNUITIES UNDEli THE U(»m.\.-s(>.N TREATY. Tnl,e..>u Lake Huron ^^J-^OO oo - .. '• Superior -'"^^' "" $4,400 00 'riu' ces.sions to the Crown in considenition of vvhii-h ihc witliiii iiauird itnnuilu's are paid, coinprohond chi.'liy Ihoold sotUrd Districts of I j.pcM Oiuada whinTon the greater ]>art of the hmds have, n.iin y years snice either p W hrpltents, or"the huuls have been sold. 1 n (he, e.mnt.es ol I luron. brace and Simcoe there are hmds upon which some ins nlnients remain m. doubt to be paid, and in the rear of the cmiiities o \ lelorui, rvcn-tbmnber- land Hastings, Lennox and Addington, there are hinds ol mlerior (iuuiiiy still unsold, and considerable quantities arc of unsaleable quality. With reo-ard to the lands on Lakes Hiiron and Superior, in considera- tion of cessions of which the new annuities arc paid under the Ivobmsoii treaty, they are cliiefly valuable for minerals. As respects the general question of the ann\nii<>s, it shouUl be borne m mind that the Government of Canada entered into eiuragcments with tiie Imperial Government under which it assumed and guaranteed, the pay- ments. The lands referred to in this memorandum which remain unsold are th(> property of the Province of Ontario, and ar.^ at the disposal of the Gowrn- ment of that Trovince, and the lands which have been sold or granted, hav been so sold or granted as Public Lands. (Signed,) W. June 3, 1800. Toronto, I8tli Dcccmlier. l^iij!* Sir, I have the honor to enclose herewith a revised sla!cm.>nl of th>< debt of the Provmce of Canada. It is a copy, with amounis .'Xi-iuled, ol that o-ivon by me to your Auditor hi October last. I have the honor to l)e. Sir, Your obedient S<'rva;ii. (Signed,) K. \>. wool'. Tn a -UiVi Hon. .1 0. Robertson, ^ Treasurer of Quebec, . Quebec. ) Q o '^ o w ^. I— t o :^ H W H O H Q >— I a H :^ 1^ H <^ H r/j Q I— I P4 liuut'd l'l»inM cillu'i 1 Luvoii. n' am III) 1 uulii y \' ■iidt'i;!- l)iiisoii «? )Vii(' ill . f c pay- I lire the jVi OVt'Vll- 1. liavf ^. i< lU'hl (led, (.!' UH O O W u I— I o e-i H W H O H pq Q H >— I a H :^ )^ H H WH 1:4 H O 17 2 tf! 0000 0000 CO o» i-l 3 «» 3 M M H i-i >^ m to 22| Ph.- 00 . a . a ki - o a ° 9 6m •S 'g M a(§.2 » 13 a a 3 J5Q 0-0 55 o to 3 o w 2 O '§ t. eS t«^ h4-< H oa p« H £5 (I) w N -«5 i-t o CO CO r- CO r) 00 Oi OC4 i':^ ^^ &»^ ■S3 |1 ®^ ^.2 ■5° ^■* 2 « s| 3 t>> eg i4 1-S u a W 3 ^ ^ a 3 2 H a> ,10 9 3 -I a ' O 00 to o o M< o s 3 a o XI o a £»- 3 3 eS 00 ro CO 3 ^ ft.3 o 3 a "^ 3 3 5>vt J rfl 09 d i tH in (U ^ eSM •rl lA 3 eS OhI CO" 1 o _ a'S aH • a 2 : S 3 : o a ■ *-' J5 ", O W ^«i §§a ■■SS"3 "T! •-* •^ ET; y,^ S3 ►^ 3 a o "3 CO > ^ 3 ^ I o a ■3 .•a a "3 o ,n •J w "a a {i5 !> .) IH is »» w CO M W « CI M _ J-O o e ^ 1— 1 1 o lO lO •■o »l^ o C/J cc CI o » '■O to !■ fO ^ri C) fiN M t— •f CI « ■o «o 1— ' © ^ ►- '» to' c- •f ^ Cj CI oT l-t ^ ^■^ "^ c» r? «?i -fi •* r« «^ I- '•/: »^ «(^ *0 *f -f -C «D «A> M n ^ n .2- --C « a a-^ B _>» n CO a „ 6.S k g to T3* n H H i> OS* .2 2 a o -." tJ 2 g S >. WS5 .& s<- a =3 . i! „ "■ rt ■ £.OhJ O J M Vaj 5 e 3 S ?- .^>. a-s fri c o ■■' «! "^ 5 -C s-5 tc.^ W e a ,s " H? ° 9 t: i ^ .2 o 2 J= 5 ■Jl Cog fc-2 1=1 £- to « t". c C' 5 a< = g a -^ a ; '" ji - a - a ^ i3 5 =* '-' 2 *-• O o Oh O H IV 10 •(^ ff-l O u> •-* — -yj ^> o^ "f w •« «» ! t !^ n 0-3 o f^ S fj - O . .5'-^ M lO o O O O >/> ^ fl< K J: f S ^ 2 -2^- > -a .2 o 5) „ a I- fs o c '!-=: •S a •f to O I- C/3 C<3 t- CO ^1 'O 1^ CO c o> lo I- c^' «*; c^ c^ •."l-Sp^OtO — ffl 7- I- "^ r-l o> 0» o M i-( M ^ « '^ = 3 a « y o -c a SI-" « O o c4 a ^ 3 0- — _ a c3 g 3 a s O c t.'^^t, o l«^ = t^!S:S2^« S oPh ^ p 3 ^ 9 S S 5 a a •Sfi ? rt' 'HO . . - o o ° cs j*> o .a 18 m ■< w 80 Quobcc, 20th Dooomber, 1869. Sir, Enclosed, ploaso recoivo statempnts of the debt of the late rroymcc of Canada, prepared in accordance with the terms agreed upon at the Montreal conference. (Si^nied,) J. ». ROBERTSON, ^ ° Treasurer. Hon. E. B. Wood, ) Treasurer, ;- r. o. ) It U I ' V 21 ^ 5^ PiH « w pt( W P a H >70 .72 7i O w <» «» w e o a ! • o O ! o o^ o o < «" .O «" ( n 31 M 3 " rf *? •< >o CO <» o •- — e • to V» O tt s [^ § C7> O 1 « O 1 s e-i o : o '"l M s? fl 8 S "> a a o o .2 ^-2 O CO 'O c/j ^ p --I 3 S s « 5 -3 ^ teO ;nS^h — j5 . ■ i: I Itir^ r30 f»< 42 O i-l ^0 o 2 a'S » A ^ fM, W £o5 (11 ?? -a ;! g -a a f^ g 53 tc g fM S- d. "A Em bp "3 . O . W P«U)-«5 55 rs J3 1 ^S3 a 9 ii IMS ,^^ •a .9 2? ca 2 a a S3 oa £? b3^ 2 o a g H : < "2 5 3 n H ?. rs ^ S a» S2t2 -p ■a ■« « S W q ** O '- 5 CI ^s« g S, do a iJTir * • ■'■ ■•■^■-■'- »»^it«"a.» 22 J T3 a el ciJ c s •- o! •= Sol •c; 3 ^. c t. -- It; fe i)'» ►■ . C^T o o o \n C"! o\ to fr.* '•/> eg o «9 »— ' CI O O "^ -^ fiC CI o — * O l^ O 1- »0 ■<* CO CC CI «o a o M T CO ® (3 o 3 a w a a a) cii g s c s. _^ •- »! -S-3 3 CJ « a « -t; 3 _^ C — (» C Im -J w n J; — •- ' ■So"*-' ^ c r "i « e- '/J '2 "i; ^i „ 3 • ■ 4) .i "S S H I* » «cs e<5coc^co-*-tt^MC^<2 O O -^ CO O ••- C/D c/2 I--, cc C-l irs coo l--cosoa^*(^l^c?ecdc-l iCcT t-TrCcTo'co't— "cf ^"i- »-r iH C5CVOCO COCCOCO •^ 0> lO I-( C^ CO C-J -t" a .5 C3 n a o O - 0) §s * t. c rt c "^ O a 3 9 i: t c 3 *^ * C -O ^ fc. 3 c .s 3 k a CI "^ C CI r\ C "? ; a o — ^ C3 = u J. O tC 5 < 3 M „ M ^j T* rt (,_, -*j t; 03 C h-l rt •c s a M o - o 5 n >>\ ti Lj*^ — CJ *:; c* H I- i: .-^ rt »<;:- 3 C ' 3 « 3 C3 )r, P -' F* -f-> .S _rt c3 ° n^^ .^ '^^ § o o +-> r-l C5 o 'd .2 "5 -S o . S CO (^ ;i5 o o 0) p! w t; fc- cu Ph O ^ r^ O O > ^ -S vs t» f-< rH '3 " _, O 2 o f, i'^''-' P 2 +- c3 e4-( O m «: IZ; g « rt 'd o' H 2 - x; -T, "o _, a r/:; o H M W « O 6 El) 1- 00 r-( H > U >'- rt W pi ^•4 rH H t-5 ^ -l-> (/.' CI p 6 1^ M o kJ t3 •/.' rv w 24 QUEIJEC, 20th Dec, 1869. Sir, Enclosed please receive «lafc(nneut of the debt of the late Province of Canada, prepared according to your request. ') John Lanuton, Esq., Auditor, . Ottawa. ) (Signed,) ) J. (>. ROBERTSON, Treasurer, 3. 4 I I 'Zo Sir, Quebec, 31st Dec, 18G0. I have the honor on behalf of the Ilonorabhi the Treasurer of the Pro- vmce, to request that you will ]>i^ pLvased to procuri? him, as soon as con- venient, a copy of the document, known \uuler the name of the liobinson Treaty (connected with the Indian Annuities) as well as that of any one of the contracts or deeds with the Indians in October, 1818, (Signed,) Hon. H. L. Lanoevin, ^ Minister of Public Works, &C., [ Ottawa. ) GASPAUD DllOLET, Auditor. '» SiK, Department of the Secretary of State for the Provknces, Indian Branch, Ottawa, 5th January, 1870. Your letter of the -'5<)th ult., addressed to the Hon. H. L. Langevin, C. B., having been transferred to this Department, I beg to enclose hereui, as re- quested : t. Copies of the Robinson Treaty with the Ojibcwas of Lake Huron, dated {>th October, 1850 ; and 2. of the Treaty with the Ojibewas of Lake Superior, dated 7th of that month and year ; — as well as of the surrender, dated 17th 3. ()etol)er, 1818, made by the Chippewa Indians, of 1,592,000 acres of land, within what was known as the "Home District"; and 4 of 1 he surrender by the Mississagua Indians, of the tract known as the "Mississagua Tract," in the said " Home District." GasPARD DllOhET, Esq., \ Provincial Auditor, ' Quebec. ) I am. Sir, Your obed't. Servant, (Signed,) JOSEPH HOW]*; Secretary of Stal<'. SlH, Treasury Department, Oxtakio, Toronto, 7th Jauuarj-, 1870. I have the honor to acknowledge the receipt of your commiinication of the 28th ult., enclosing "Statement of th<> Debt of Uio late Province of 26 Cauadii," which you say is " prepannl in aceordauco with the tonus agvci-d upon at the Moiitveal Coiilert'iice." It dillbrs I'rom the statt'inont I .sent you only in two items, viz: Canada Land and luuiuvation Company, about which tht>re can he no douht, ars you ^vlll see by releronce to the terms of purchase as soi I'orth in the " lleturn of the Correspondence and Ai>reement made by tlie hite rrovince of Canada with the Canada Land and l^hnij^ration Company," which I sendy^-u by this day's mail; and asHtth^ doubt, I think, exists as to the item of U. C. Improvement Fund, as you will, I think, be compelled to admit when yon examine the Statute K! Vic, cap. I.IO, and the Orders in Council passed respectint.v tlie same, recorded in the Sessional I'apcrs of the late Province of Canada, 18G3, Vol. 2-2, No. 10, and the IJeport of the Special Committee of the Assembly of Ontario, now in the printer's hands, and a copy of which I Avill forward as soon as obtained. I have the honor to be, &c., The Hon. J. G. Koeekts(in, ike. (Sig-ned,) E. B.AVOOl). M TUEASUUY DKrAUTMENT, ONTARIO, Toronto, January 1 2th, loTO. " (/. C. Iviprovcmcnl FundP Sir, I have the honor to forward foryour consideration a copy of a letier writ- ten to the Minister of Finance on the 2nd of November last, and also the printed Report of the Select Committee referred to in my letter to you of the 7th. instant, on the subject of the " TJ. C. Improvement Fund." I have the honor to be, Your obcdt. Servant, F. r.. WOOD. Hon. J. G. llo]5ERT.^;oN, ) Treasurer, > Quebec. ) Siu, Quebec, 22nd January, 1870. I have the honor to aeknowledg'o the receipt of y'our letter of the 7th and 12th January histant, referring to the araoiTuts which you pretend should be added to the statement of the del)t of the Province of Canada as due, oiu> to the Canada Land and Emigration Company, and \\w other to the Upper Canada Improvem*>nt Fund, and also the Kepovt of tlic Select Committee on the Land Improvement Fund, and the lietnrn to an Address of the Legisla- tive Assembly of Ontario, n specting the purchase of the Townships en blue by the Canada Land and Emigration. Company. 27 ' r t A careful and attentive perusal of these documents, as well as of Chap. 2o of the Consolidated Statutes of Canada, leaves no douht in my mind thai the pretensions of Ontario are unfomided and in admissable. The claim of the Canada Land and Navigation Company is at best hut a contingent one, the existence of which depends upon the construction of the roads, and which moreover may he compensated by the forfeiture oi' extra price; of 2s. (Jd. per acre which the Company is bound to pay as a jMMialty for non-performance of settlement duties during the time specified. If, owing to recent action of the Government of Ontario, it is found proper to discharge the Canada Land and Emigration Company, as it demands by its Petition of the 22nd August, 1868, from its obligation, the Province of (Quebec cannot l)e called upon to contribute, which it would, if that sum was added to the del)t of the Province of Canada. The whole, under the British North America Act, 18G7, passed with the lands to Ontario, which is bound to meet the claim if any is hereafter mad(f good, and to enforce the execution of the contract, or get the extra price stipulated as a penalty for its non-fuUilment. As to the sum which you propose to add to the amount set down in the statement of affairs as due to the Upper Canada Improvement Fund. Tht^ Fund under the Law and the Order in Council was to be composed, not of the amounts due by the purchasers of the Lands, but of those received by the Crown Lands Department during its existence. The lieceiver-General, un- der the Order in Council, could set apart, as therein directed, only the amounts which he had actually received. Lidependently of these considerations the introduction of such preten- tions, not alluded to in the Conference at Montreal, would involve the reopen- ing of the whole question as respects the surplus debt, which if once done, it is impossible to say where it might end. As 1 have before said, if such cpiestion is reopened the whole ground may have to be gone ovi'r, Avhen Quebec will claim the privilege^ of putting in claims for con.sideration in the discussion of the same. (Signed,) } [lox. E. r>.W()()D, Treasurer of Ontario To; on to.) SlK, .1. a. liOBEPtTSON, Treasurer, P. q. (^UEBKC, 22nd January, 1870. I have tlie lienor to enclose, for your information, my reply to the Hon. I']. 1). AYood, Treasurer of Ontario, respecting his statement of the surplus d(>l)t of Canada, d;tted Novenil)er 20tli, ISGH, which. T hope, will l)e found satisfactory, as showing that the statemi'ut heretofore sent by me of such surplus debt wiis ('(irrccl. 28 ^' 4 It may bo propor to remark lioro, that tho pretensions now put forth by Mr. 'Wood, not being nrp:ed at the conlerenco of the representatives of the lliree Governments in Montreal, arc inadmissible. Otherwise the whole (question may have to be reopened, as between the Dominion Government and the two "Provinces respecting- surplus debt; a proceeding which w^ould necessarily involve thii discussion of all claims which might be put forth by either Province, of any d(>scription, thus rendering the proceedings au'reed on at Montreal useless. (Signed,) To the Hon. Hm Francis IIincks, ) Minister of Fhiance, iSre., . J. (;. ROBERTSON, Treasurer, P. Q. TuEASUKY Department, Toronto, 2Gth January, 1870. Sill, Your letter of tho 10th instant, duly received. In reply I beg to say that a copy of the print(^d lieport therein referred to, was sent to your address and must, I presume, have miscarried, as you say you have not received it. I send by this day's mail a copy of tho Keport, Your obedient Servant, (Signed.) Itl. B. WOOD, TreasTirer. The Hon. J. G. Robertson, ) Treasurer, [ Quebec. ) ' W I » ') I Sir, Audit Office, Ottawa, February 4th, 1870. I am instructed by the IMinister of Finance to furnish you with a state- ment of the debt of the Province as it now stands in our books, in which no deduction has as y<'t been made lor arrears of Hydraulic lients and lioad Securities. Taking th(^ balance as in your statement without these deductions or that claimed by you on account of gratuities in the Senate, all which are reserved for future consideration, it would stand at $10,754,835 04 Deduct accounts erroneonsly charged against the Provinct; in 18G7-8 on account payments against old appropriations which h;id already been chargcMl against the debt, and cre- dited to Oiiiario tinu ectivcly, viic : » . < 2U t I ) , ., ^ Coloniscatioii roads, Quebec S 3,127 00 Ai?ricultnral Instruction. Ontario 100 00 3,227 04 810,748,008 04 Add— G iyn, Mills & Co, suspense account 17,498 28 JUrin- IJros. i^ Co 32,788 34 Expenditure 1808-9, as per statement §23,379 90 Less— Koeeipts 1,237 37 22,142 63 Expenditure to Dee. 31st, 18()9 ^>^,^U 02 I.ess-lteceipts 972 90 7,971 72 $10,829,008 88 The suspense accounts consist of certain old questions in the Agents accounts as to the correctness of which doubt had arisen. They have been brouiyht under th(^ notice of the A^-ents l)y successive Ministers of Finance, and they ar(> now admitted by us. The whole amount has already been deductinl from the de})t in the banking- accounts and is now written ofi". I have the honor to l^e your, &c., (Signed,) ■ JOHN LANGTON, Auditor. J. (I. R()r>ET!Tf^()>r, Esq., ) Treasurer, '. Quebec. ) Ottawa, 10th Feb., 1870. SiK, As it is necessary to proceed with the arbitration between the Pro- vinces of Ontario and Quebec, that the amount of surplus debt of the former Province of (.'anada, over the §02,r)00.00 assumed ))y the Dominion, should be ascertained and ap-reod upon, at as early a period as possible, I have to «u. ^YooT), ) Trer.surer, ]'. o! O. \ 80 '^1' , Audit Office, Ultawa, Feb. 1870. My Deai: Sir, llelVn-rinj^- to our couvoLsatiou yoslorday, as to the $47,li81).04 iucliidod in the history of the Si'igniorial Jjt'j^-islatioii, and Avhich you said had not l)('on appariMitly crediU'd to the Supericr ]']ducati()n Incomo Fund, 1 bog to state the Tacts. TJio interest on the cai)ital of the Seigniories of th'e Jesuits' ]i:statos is properly crt^dited to the Income l^'und in the Public. Accounts. This sum oJ' $47,G8S).04, howincr, ought never to have beeu in- cluded by me in the statement of the origin of the debt. It was taken from the report of the Commissioners ; but it is not arrears of interest due at the time of the passing of tlie Act, in which case it might have been included in the capital for which they were compensated, but it is the interest accrued ai)on that capital after the passing of thi^ Act, as calculated by the Commis- sioners, and which is diily credited to the Income ))y us hi a modified form. My statement of this origin of the debt only dealt with the capital, and this amount shoidd c(>rtainiy not have been included any more than I included the interest on the $000,000 and the second uidcmnity to U. C. G-. Drolet, Esq. (Signed,) JOHN LANGTON* March 1st, 1870. My Dear Sir, The amount of coniingent expenses of the Arbitration up to this time, w^hich it was agreed yesterday should be paid by the Provinces of Ontario and Quebec in equal parts, is i>'ji). If therefore you wa.l give the bearer $25 for Quebec, it covers, as far as I at present know ,the charges for messengers, clerk, paper, iVe. Yours, ikv. (Signed,) J. II. GRAY, For the Arbitrators. The Hoii. the TreasunM' of Quebec. Ottawa, 3rd March, 1870. Sir, I have the honor to request that all such information as may be required by any Member of the Ontario Government, or other person on behalf thereof, on matters relating to, or bearhig upon, the arbitration now ])endhig between that I'rovince and the Province of Quebec, for any department or olhcer of the Dominion Government, may also be furnished and sent to the Que])ec Government. Of course the same rule to b(^ followed as to communicating to the Ontario Goverumont any information w^hieh the (Jnebec Crovernmentmay a ri vcquiro. The iiili'utiou Ix'iii!^' Unit all inlorinitliou which fillicr <>l' llir siiid I'roviucos may ri'qiiiri^ IVom uiiy Dc^parinnuii or Olluu'i" ol' your (lov'(U'n- incnt Nliould !)(> (,'<)iniimiiictilt>d to iju^ othor I'roviut'o, in order tlinl bojh may havo the rullcst opporluiiity oi makin<^ pn'purutiuiis i'or (.'oiiliiiuiiig' theso casps belbro tho Arbitrators. Your attontiou to this will much o])ligi', (Sig-nod,) The Hon. Sir Kk.vncis JIincks, ) Finance Minister, &c., &e., / Ottawa. ) .1. Ci. KOHKIiTSON, Treasurer, I'. Q. Ottawa, ;;rd Mareh, 1S70. tSiu, Allow U.S to call your attention to ihe fact that since llie iTtli AuiiUsi last, when an api)roximate statemt^nt of the debt of th(^ late Province of Canada was adopted by tho lIonoral)lo ihe Privy Council of the Dominion, and partially concurred in })y the respective CJovernments of Quel)ec aiul Ontario, many claims so called against the late Province have b(>en sub- mitted to, and paid by the Dominion Government, without the assent or concurrence of the Local Government iirst had and obtaiiu-d. "VVo wish it to be luiderstood for the future, that any mr.h claims, before, being- ontertahied by the Dominion Govenunent, should iirst be submitted to the Local Governments of Ontario and Qu(!l)ec, and approved of by them respectively, before l)ein2: charg-ed to the late Province of Canada, or to Ontario and Quebec, or either of them. The reasonableness of this course wnll 1)o apparent when you con- •■^^r+hat the Provinces of Quebec and Ontario are expected to i>ay such .nd the least that we demand is that our resjiective Governments rs vc an opportunity of deciding- Avhether the claims i)resented are .1. and just before being held responsible for them. Yk (Signed,) (Signed,) E. 13. WOOD, Treas., Ont. J. G. llOr^ERTSON, Treas. Quebec. ) Hon. Siu Francis Hincks, Finance Minister, Ottawa. ) •>. '■ ^ Ottawa, 2'M-d March, 1S70. 811;, With iv"-av Muiucipal l.oan Iniiul books, in (hi-, lloiion.hlc iivcrivin-^; eiu'rul s JK'piu'tuu'iit lor Uu'tiirio and Quebec respi'ctively, allow luo to say : That I see no impropriety in vour ohtaiiiing th(^ books containing' the. •iccounts oonn(«(;tecl with the Upper Canada Mnnieipal ].oan l^'und. and in mv obtainino' those hooks Avhieh contain the accoxuits oi the Lower Laiuula Municipal Loan Fund, in order that the respective CJovernnients|^ol Ontario and QuclxM- may l)e l)elter able to ascertain the true stau jng ot tho accouuts against the respective Miuiicipalities in each rrovhice respectively. It is to bo clearly understood, however, that the possession of tho books in question by either Province is not to be considered as thereby oivhio- any exclusive claim to the Fund or accounts due thereon to the par- ticiilal- I'rovince, which may obtain those books or as esta blishnis any claim or distinction of property, but that th.^ Funds shall be dealt AVith by the Arbitrators appointed to de(,-ide as to the decision ol del)ts and assets between Ontario and (Quebec, as if the srJd books had been kept m the possession of the IJominion (Jovernment, and that each I'rovmce ap-ei-s to and^vith the other that such distribution, as maybe madi^ by the Arbi- trators, shall, as respects such Municipal J.oan Funds, })e carried out lu ly and to all interests and purposes, and that the possession ot the said books, shall in no wise be construed by either Province as ftivmo. to them respec- tivelv any special claim to the amount due by Muiucipahties \yhich sau l)ooks may respectivelv contain. In case the Arbitrators should request these books to be laid'before them and sul)iect to lhi>ir control, il is under- stood that they shall be produced in the same condition as they now are. On your acceptance of thes,' propositions, and your concurrence in my view^s, expressed hi Avritini.' to me, 1 will join you in a letter to the Domi- nion Government, requesting the delivery of said books. (Signed,) Hon. E. 13. ^yooD, ) Treasurer, / Ontario. ) J. 0. liOHEKTSOX, Treasurer, T. q. Ottawa, -i-llh March l«70. Sir, I have the honor to acknowledge the recei]>t of your note oi the '2-\id instant respecting the MuuiciiKil Loan Fund ))ooks, Ipper C^uiada and Lower Canada, and in reply I have to say that 1 assent to th(> ionxia and con- ditions contained in your note with respect to the books, as they are sub- stantially the same as proposed in my letter to ex-Treasurer Dunkm. <>1 the 19th of January, IHG'J. '^ r,.'j I shall 1)0 ready at any linio to join with you m a lettor to the IJomiiiioii (Jovonimoiit reqiioistinj^ the delivery oi" the books. Permit mo to call your aitentiou to tho fact that you have not referred Jo the neeurities I niciitioued to you as })eini;' held by the lieceiver-Cleiu'ral ou aceount of eerhuu Trust Fuiuls. 1 Ihink it would he lor the interest of both I'rovinces that lhes(i should, subjeet to sinular terms as those stipulated in respect of the M. L. F.books, be placed in the hands of the respective Treasurers of the Trovinces. I have the honor lo be, iSce. (fcli-ned,) ]'] 15. WOOD. UoM. .1. (J. liolIKUTSoN, i Treasurer ol' (iuiibv'c. '. Ottawa. ) i Ottawa, March 25th, 1870. ►Sill, Tho undersij.«ned, aetino- for the Governments of Ontario and Quebec respeeiively, have to re(piest that you will deliver tons, tho Municipal Loan Fund bookw, in Ihe hands of the Dominion (Jovernmcnt, viz : tho Upper Canada books to Mr. Wood, and the Lower Canada books to Mr. Robertson, an arrancfement havinii," been made })etween tlio undersij>iicd to tho effect that this will not interfere with the arbitration penduijif botween said Pro- vinces, or the deci.sion which may l)e come to by the Arbitrators. We are, your most obedient Servant?, (Signed,) (Signed,) Jlon.Sir I'ltANCis lIiNCK.s, ) Minister of Finance, ^:e., / Ottawa. ) E. E. WOOD, Treasurer, Onl. J. 0. PvOBEUTSON, Treasurer, Quebec > ii:]rd a iind d cou- ' sub- dn. of Glenukook, 13th April, 1870. Mv Dkau SiK, 1 have received iVom Mr. Wood a pamphlet containinf^ an elaborate argument upon the (juestion submitted to the Arbitrators at their last ses- sion. 1 suppose copies have been sent either to you or to tho Counsel for (Quebec, but this might ju>t yet have been done. I have thought it right to inlorm you that I, and as 1 presume, tho other Arbitrators have received copies. I remain, my dear Sir, &c., (Signed,) ens. D. DAY .0 Hon. TrtsKi'ii (! 1{..!;ki;t.son. ni Ottawa, liucl May, 1870. Mv J)KAll SlK, Tlu« llouorablo TrciiauiTr ol'Oiiliirio huNisisiu-d ii iminphloL puiporliiiu' l()bi'"lii.snT..uuu-nl. hi'loiv (lie Vroviiu-iul Avhilriilors, on lh<^ mode i"''" nosed lor lh,r:ii.i.oili<>nin.'iil <»rilu^ ox(vss ol'dcM mid diyiMon ol n.ssois 1..- Uvc.'ii Onlaiio uiid (^U'ln-c," which I havo reason to believe luv8 been lor- \vard(>d to vou. I have <>nlv ^een a copy wilhni a \c\v dayn past, aiul have hadnooppoHimilvorconsu'llhm-Nviih the Counsel lor (iuel.ee upon the slaleinents put lorlh by Mr. Wood. 1 also lai to perceive how the pam- phlet iiKiuestiou i'aii bo viewed as u report of the ^peecn acluully made by Mr. Wood before the Arbitrators. 1 hove therefore to request that time bo jrivcn me to confer witlitm Conn.«^el for ()uebee and to prepare an answer to the i.araphlet relerred C, should ii }>(> thouuht necessarv, l)cforo consideration is -iven o exjnire state- ments of Mr Wood, or any decision cbt, with their respective dates, and the sources from which the moneys so paicl were derived whether from the ordinary revenue fund or from some special lund, or from the proceeds of debentures, consols, loan, overdrawn accounts or negociation of any security whatever. 8rd The date, amount, rate of interest and maturity of the debentures issued, if any to rcjdeem, and pay oft' any debentures of the late 1 rovme(, ol Upper Canada or any part of her floating debt. 4th The amonnt of ordinary revenue of each year during Avhich part of said debt of Upper Canada was paid, exclusive of negotiation ol loans, or debentures of consols negociated, if any, during each ot the said year, as well ordinary as extraordinary, including moneys expended lor public or local works, and moneys expended on account of capital as well as oi reve- nue account. (Signed,) Hon, Sill Francis JIinoks, ) Mhiister of Finance, .■ Ottawa.^ J. G. Tior.KKTSOM, Treasurer, V. Q. •" •« i< ^i \ FlNANCK DkI'AUT.MKNT, Ottawa, 10th May, 1870. Sir, Itoli'iriiii^' If) your communication, (liih'tl \ho. r»tli instant, F find on rd'cr- cnoiUo th(! IjooIvs ol' tliis Oiiicc, that the I'uhlic. iJchI, of (li)i)cr and Lower ('anadaat tlu* pt'i-iod olllu! Union iu IHtl, tlocs not correspond with llic .statements wliich iipix'ar in tlio ap[)('ndix. to i\u\ .louraais ol' (Ik! lloiiMt* ol" Assembly lor IS t7, and hea,- to submit a iiiemoran(him ol' llie apparent l\'r appendix roforrcd to, tho Doht of tTppov Canada is .shown to he us under, viz : / i I, Mi N.). I " 2 '• 6 '• (i iStnrlinu Dobonlurcs Dobonturo8 imyiililo in CnnaJa Diui to BauItH I)i> to liiiriiloM A|^('nt:t (osliiniiti'il). AVollanil Oaiiiil Insurrection losses Tiitiil ilcbt Up|ior Ciinaila Miiual to Sturllng. HOy.CiSO .'il,5',).'i H. (I 10 Currency @ la. fid. j: V(;(;,277 15 21 ;!,(;- 1 II I'l.OOO 1) :ij,io(; ;! 117,S0O ■lo,o;i() i;i,l!'J,S,Hi5 » >l. (j ,' i; iti; :J,';,.'i<,),-|,l21.!)U Per tho l.*al)Hc Accounts, thii Doht of Upper Canada is thus pivon sterling Uoljontiiroa Dclionturcs payaMu in Canada. Diiu to Bankg , [)ii t(i London A;;onta Total Or Sturlinji. B-iM.Hil) Currency @ Ih. M. '.»:;l',o:.,i 20,noo ;!y,yB.i £1,287,564 II I I 'J 11 f„'),I50,2.'i8.y7i II n 10} 36 ''' i,». Item No. 1.— The diUbrciicc of .£30,800 nig. is llms explained, tluit amount of Debentures having- l)cen issued prior to the Union, but not ne- o-otiated until 18-13, as appears by a letter from Messrs. Baring & Co., dat<'l 00,880,784 00,501,014 02,734,797 78,714,735 II 47 SO 03 00 874,280 857,SC0 848,450 ■X348,4£0 04 04 64 64 02,903,257 01,744,051 01,409,471 03,583,254 78,714,735 75 1865 11 180(1 44 1867 27 laftQ „ 00 $150,400 O9.S,050 00 01 ?818J..^(i 1 114 ) A INTO, «■> UliCAriTOLATION ol" the Tublic Debt at the close of each Financial year from the Union, 1841 to 18G8 inclusive. 1' .". d. X, 8. I(! 1 17 3 1 6 7 9 17 11 8 5 14 1 Irt d. 8 t> 10 4 2 & 7 7 2 9 11 fl 5 11 4 $ 1811. 1,(I20,()0(I 41. -'.,2 ID 1 1 W,'.lo'J :?7,473 5'j:i,S8 .05,173 I',) 10 8 (1 11 11 .1 U 1 7 11 11 u 'J 1) 11 ir,,vii ."(IS.Hil-t 12,1'50 1845. On acnount Olyn .t Co., Vrdland Co 3,035,sn;i 397, ICS 12.H.!,2(> ])(> I'liljlio WoiKs iJo li. C. Dobeiitiires 1847. On aecount I'uliliv; AVoik?, V , e. Ifi Hfi.OKrt vo,.';oo 14,748,014 Carried furwiird 3,Si3,fii4 I5.371,4r,9 ct.?. 90 23 4". 48 .1. V 1 '' If \ 'Ji f' St;,' ctH. tfO 23 •f! 48 t I A ^ , No. 2. — Continued . llrouj.ht I'urwiinl IS IS. On account Provincial DubunturuB, U. C. Do do L. C. l\iljli'j WorliS, Vict 1819. .St.c. Duljcntiii'cs on account I'ublio Works.. Do various Acts Do 11 Vict. cap. y. — Small DoLonturos.. Loss — Rodcomod.. DoiUict this amount being derived from I'reniiunis on aocountof Ij millions Loan, say Sterling £l38,t5U6 11 11 Currency £l(i8,fi;i8 6 Less— Balance on account of Kogotiation, Kxt'hungo, &o See Public Accounts, .Slst January, 1850. Imperial Guaranteed Loan Dolionturcs Principal and Interest, payable in England Du do Canada Do do Small Debentures.. 1850. Issue Sterling Debentures Less — Currency Debentures redeemed X:ir,922 My 11 Do 11 Vict., cap. y 65,(IU2 10 Issue Special Funds. 1S51. Hcdeemed 11 Vict., cap. '.) Do Sterling Debentures.. Loss — Frovinoial Debentures issued. Less Issue Special Fund.s. 185a. Issue sterling Debentures.. Do Currency do Loss — 11 Vic, cap. i>, roJcomed. ('.iriicj lAcr 7a ir.,2:;i i(ij,i8y 127,111 i;i5,ri',7 47,285 31(1,101 2 1, Geo .Ifi? 1,S25,000 ],3f,fi,1f,5 75',t,2,'J8 135,210 'i,085,r);3i 5iy,70o n2,02.'i ir.!,200 5,718 S,",,7'.I0 23,283 13 y 1 19 10 10 10 10 4 II U 3 0«8,10G CO.OSO 1 ii'.i,syi 3,jJ3,0l Ij l!i 121, 1U5 ,',)0.-,110 288,501 J,?5:i,70l 108,070 ■1,085,031 18 11 II IS •1,0S5,(',:M 12(!,«3I M 1 ■1,512,108 M y IUI,.".Ol) •1,151,061 2l5,y71 l,7lil o _^. 7 4 u ' 17 I •l,r,oo,r.i:: ■i,'jOi'',i',>i .. ; u i 15,'i7 I, I5U l.>,'-00,Mr cts. 27 US I0,:;i'.','<3(i 18,010,874 13 yj 1 7, Mi;,'- (7 ^,iiO!,7.-; U5 No. 2, — Continued. I5ro;i;^lit ever b-.MUo Sj"-"-'"'' i'liiiilH ReJoornt'iI ('uiTcii'.-y l)i'l)c:iturrs l)u 1 I Vi'.'i., oiip. y lii'ris — lasiu'il t'torlin:; iJcboiituros Oonsnlulatcd Municipal Loan Fund. Issues, Siiociiil Do Grand Trunk IS 54. Uudcnmcd Sterling Dcbenturoii. do. liy do do. 11 Vic, cap. 9 Loss Special Intarcolonial Raihvjiy Muuioipal Loan Fund, it) Vio , c;ip.. 1835. Kodeeraod 11 A'ic, cap. il do. Current Uebanlures. Issued sterling Debenture!!. Less Mutual Loan Fund Uuilway and Speoials. 1856. I.ssuod iStorling Dcbcnturea. Ucduomud Curront do Municipal Loan Fund. Railway and t^i'ociala , lj.i7. l.'suud Sierlin;' Deltentun Redeemed Current do Muiiiuiijal Lwui Fund Railways, itc Ciuriod i'lrv.aril, d. 'j.:2,i:(;u o •1fl2,''r)rt 1,20 1,4',) 1 1,1U2,U06 2i)0,'.t7.-> 0,:3d;i 12 10 4,17l'>,0'.)2 1,172,\UC .'■),:!o9,009 12n,7(il 120,811 77,!'..8 1,05 1,1 on 6,502,001 7,153,107 4:12,710 40,013 i,ys5,yi5 f),!iU0,lt>5 1.! 2 16 10 12 r, 10 10 (I to 4 Il,()li2 ■1,021, 'JOo 207,:i 1 1 4,a,w,yr.) 4;h,;{I2 4,U0,0:!0 7,1S0,101 0VI,.S21 ui,.iij;i ;!y2,fioi 4,70;!,30.'J ij 10 d. 2,211,32;', 6,;)ii-i,5io 7,710,103 0(il,2fi0| li 10 11 t> I Ct.-'. ,00l,773| U.') 1,Sl8;i,l()2 17,115,797 12 13 17,2I2,,')10 18,-ii:i.21l 02 f.,307,:irtl| 2 j 7 i 2l,170,2;.OI .52 :;or.'.-iiim1 Sterling J)ebenturi!H 3,281,826 331,108 65 00 00 01 07 77 84 51 01 03 91 KodcoiiioU Currency do 8,067,792 32,393,637 00 98 98 65 1,519,140 415.084 Municipal Loan Fund 21,430.975 1.104,065 ir P.ailwnys, ifec , 30,461,429 1859. TsBUod Storlini; Dohcnturos.. 7,440,565 21,166,447 32 98 90 2,,326,154 20,181,231 35.535,031 33.155,401 16 nn Loan 18G0. 28,607,013 SO I<»;ued iStuitini' Dubonturcs l»ol)cnturt!S Rodoomod Currency , 22,507,385 351.984 2,936,536 14,965,501 01 31 33 33 3,130,300 534,778 96.463 lMutiiiMt>iil IiOfiii l'^un«.l...T 47.690,432 2,751,541 49 KailwavH. »to 17,902,037 Sti'rlinir Debenturei Canada (Jurront'V Dcbenturus -. 85 Ucdcouicd ••.»••••. 60,441,974 Hi \fiinioinaI Tjoan T^und.. <• ... 1395,730 67 6,899,061 2,275,815 5,910,566 33 00 67 tlo 3,300 00 ,. 14,785,473 31 $15,184,503 98 Uailwayp, A:c 60.441,974 M 6 42 No. 2. — Continued. Brought uvor. 18A». f^torlin;; Dubenlurcs Inscription do (iiinada, Currency Dobenturoe. Canada b p.c, new Special accounts Urand Trunk Kailway (ireat Wcsturn do Northern do Consolidated Muni'.iipal Loan Fund, U. C. Do. do. do. L. C. ct«. 15,ni9,,').'}7 181,555 121.6fl0 1SG3. lledeoiiicd Imiicrial fiuaranteod Loan, do Sterling Uubontures Issued Inscription, do Currency.. Loss , Indirect Debt., 18G4— Ilalf-Vcar. Kcdcemcd Imperial Loan do. Etcrling Ucbcnturos., l.''sued Inscription. do. Currency .... Less Indirect Debt., 1865. Ecdceniod Imperial Loan. Uo. SterliBg do. Currency Carried Forward, 428,8.^9 15,142,e33 2,810,600 2,311,666 7,294,800 2,279,115 78,353 290,990 874,266 227,348 447,183 874,266 64 cts. 67 C6 00 2,920,000 223,528 3,143,528 369,343 fO 44 44 33 76 34 2,726,333 2:4,690 2,069,923 674,5.32 64 !)7.S,,133 .S3 33r,,789 37 8';,833 33 1,39:V'56 03 50,111,974 1 6,696,593 67,138,567 2,774,185 64,364,382 2,275,391 62,088,891 62,088,99! cts. U 34 6S 11 57 46 11 nM 4S cts. u .•?4 68 11 57 46 11 { No. 2. — Continued. Brought forward. Issued Inscriptions. Lcsa Indirect Debt. 16C0. Rodeomod Sterling Dobonturei, do. Canada Currency..... iHSUod Inscriptions. Leas Indirect Debt,, 1807. Isfluod Inscription, do. Rodoomod . Indirect Debt. 1868. IsiRuod Inscription do. Canada Currency. Iledcomod Sterling STKRLINU MiSCgl.LANKOU.S. Sterling N.S.. do. N.B. ClinBKNCV DKnllNTUltKS. Nov: Brunswick Dominion Stocli I'rovinoial Notes, N.S. ■Savings lianlcs Insurance Deposits Add— Special Funds, (Indirect Debt) Total per I'ublia Accounts, 30tU Juno,l86S. 857,866 cts. 64 $ _ l,.'i9S,9i6 I '.11,749 848.456 848,456 5,942,200 4,S86,ti20 64 64 216,900 1,993,S72 562,326 1,680,126 ;«,066 00 00 79 31 66 255,000 214,;i;;6 469,336 143,566 96,647 2,166,616 2,353,163 179,380 702,2fi0 670,660 1,372,920 704,ti>j:i eti. U3 39 CO 33 33 66 13 15 28 45 6(;8,22(i 10,828,820 00 00 00 33 67 00 6,2088,991 1,202.206 60,886,784 325,769 60,561,014 2,173.782 62,734,797 4,482,890 II 64. ■17 67 80 83 63 15,979,937j 4:$ 78,714,735 160,400 or. 00 •73,805,135 06 44 IVo. 3. First Session, Ist Parliament, 5 Victoria, 1841. Abstract Statement of the Public Debt of Upper Canada, 10th Fel)y., 1841. Currency. sterling @ 4i, 6d. T)ebenturefl Dftvablo in tlDDor Canada..... .»■.• ■ £ 213,071 I. 11 d. 2i £ 192,304 838,850 31,595 23,400 8. a 10 d. 1 DOt London Due to Meiirs. Qlvn A Barin:;! lU 26,000 117,800 40,000 u Additional Debkntubks 1841. Walland Canal Iniurroction liOSflfifl .>■••••■••••.....•••* 142,020 * Total Sterling 1,228,109 1,364,033 18 I #Total Currenev ...>>• • • #•■•• 5 fi'l (Signed,) JNO. MoAULAY. Inspector General's Office, I Kingston, 20th July, 1841, J Abstract Statement of the Public Debt of Lower Canada, to the 9th ^day ol' February, 1841. ^ k Harbour, Montreal Do. Dredging Machine. Cbambly Canal Totals Curreney Amount Authorisod. Amount Received. Currency. Currency. £ 80,575 H. a. £ 77,475 8. a. 5,000 1,500 35,000 ° 15,000 120,575 93,975 Kingston, 20th July, 1841. (Signed,) JOS. CAllY, Inspector-Gtmeral of Accounts. * Sea Qnebso Faatum for explanation of Lower Canada Del>t. ^ 45 -^ !l ,' fi.l My Dear Mil. Dunkin. Ottawa, 11th May, 1870. I hog .0 call your attention to pago sevon, under heading' " Capitali- zation of Assets," of a pamphlet purportini^ to be Mr. "Wood's argument Ix'lbre the Provincial arbitrators appointed to decide upon certain matters riflatiiii,'- to Ontario and Quebec, and to say whether the stat(^ments in said paragraph respecting an agreement to the valuation of assets belonging to said Province are correct. That is, vrhether you, or any one on l)ehalf of the Province of Quebec assented to such valuation. In other words, whether you the then Treasu- rer of the Province of Quebec assented to the auditor of the Dominion (rovernment or any other person up to this time valuing or pretending to value the assets reterred to. As you were present at all the meetings of the Arbitrators while you held the said office, you will ))e a})le to give me all information relative to the paragraph in question. (Sisnied,) .1. (J. KOBERTSON, Treasurer. lion. C Dunkin, | Ottawa. \ M' My Dear IIobertson, Ottawa, 19th May, 1870. I am vexed beyond measure^ to have had to let a week pass before answering your note. Even now I have not time to read any more of Mr. "Wood's pamphlet than the passage you refer to. If the rest is like that, it will ill repay study. I can hardly imaghie a more ridiculous pr(>tension than the one there K(»t up. The official entry of the arbitrators, (of which I have procured and (>nclose a copy,) must be conclusive as to it. The auditor was ordered to mak(^ two statements ; the one of the 4th schedule assets, as understood by him, the other, of the Municipal Loan Fiinds"and all other amounts." The former was ordered as the basis of discussion as to what was or was not the meaning of the 4th schedule ; and it was orde dealt with, as thi-y understood Iheui, and of the vahie of each. This course T was willinu^ to liave followed; but not anxious for. Mr. Wood objected., and the Judge did not press his view. After some desultory conversation, all our communications were (by aijreement) inlbrmal, th(>. order as adopti'd Avas put into words by Mr. Kose ; accepted by Jiulgo Day as a fair equivalent for his lirst idea, and adopted by tho Commissioners ; Mr. Wood alone expressing- some dissatis- faction. I have no hesitation in saying that no one at tho time so much as suggested the idea that Mr. Langton's second statement was to have any chanictcr of a\ithority whatever, nor do I believe that any one then thought of it in that light, or could have done so. Mr. Wood himselfevidently hasovcnnowno idea of treating it as an- lhoritative,'save only in so far as itmay suit his book to do so, and the arbi- trators can only smile at tho pretension. Yours very faithfully, (Signed,) CIIlUSTOniER DUNKTN. The Arbitrators met. Montreal, 2(Uh Mav, 1 870. A letter from M(;ssrs. Casault and Ritchie, Counsel for Quebec, address- ed to tho Arbitrators was received; en(|uiring whether the two ]M-inted pamphlets, one pur])orting to ]w : " Mr. Wood's argument before the. Arbi- trators," the other styled: " rroceedings of the Provincial Arbitrators, Ontario and Quebec," are to be received by the Arbitrators V Seconflli/. — Whether the inil)licaii()n of the latter had been authorized by them, and whether such Report is correct ? Whereupon — The following minute was agreed upon : Firrd, — That the said ]->nm]^hlets had been received, but had not l)een accepted by the Arbitrators as part of the proceedings bi^fore them. Second! I/. — That the pxTl)lication of the pnniphlet styled : " Proceedings of Provincial Arbitrators, Ontario and t^ueliec,"' was not authorized by them, and that they are not prepared to enter into a comparison of the alleged Report with their Record of Proceedhigs, TliD-JI//. — That a copy ot this minute be forwarded to the (Counsel ])oth for Ontario and Quebec. ■ 47 i) l\ My Dkau 8ii?, QuKUKC, Otli .lams 1870. Thcu'o is ratln'mii irnpovtaut(iU('sli()n avisoii in my mind vcliilivc to the Arbitration now pcndinjjf botwcun Ontario and (iudx'c, which I lakt>. Ww lihorty ol'hrinufin'j: Ix'i'on^ you at this time, as a (Iccision upon it shoiUd h(^ arrived at bcl'orc. th(! ])romul,rovo a nullity, I am of opinion that tho act requires the decision of the three Arbitraiors, that is that it should ])0 concurred in l)y Ihem all, otherwise it would be use- less, and if any doubt exists as to the correct ness ol" myjudirment on this point, would not tho Arbitrators prefor to have the {|uesiion argut^d before them by counsel. PendinjT any decision upon tho points now under consideration })y the Arbitrators, it appears to mo that the point referred to, should lirst be de- cided iipou before any conclusion is arrivi'd at or comnumicated io tho I'rovhices, on the preliminary pohits submitted. Iloldini? tho views I do upon tho necessity of a unanimous decision bcinj;; arrived at by the Board of Arbitrators, I sliould feel it my duty in case of an adverso decision upon this point, or a d(>cision given l)y only two of tlie, Arbitrators on any point submitted, to advise the Oovernment of Quelxu^ to decline continuiu!:^ l)efore the Arbitrators, or to concur in any such decision feeling that it would be liable to attack and miglit be set aside. Tho serious evils and complications whie' would arise from a decision jiiven not in accordance with th(^ law, howevei favoural)l(i tc Queb(>c such decision might be, are so manifest that I dare n( risk such resaltif po.«-il)le. I trust yoii Avill not consider this an improper time, before any decision has been come to by tho Arbitrators on the questions l^efore them, to urge upon them the projiritity of their coming to a full luiderslanding, upon the question whether the act does or does not make a luianimous decision imperative, and also to urge that counsel l)e henrd on the subject, if the Arbitrators hold views adverse to minis or think that gocKl results would follow a full discussion by counsel before foregoing to your colleagues and shall be them. 1 have comnninicated the '•lad to hear the result. (Signed,) G. liOBEIlTSON, Treasurer. Hon. D. L. McTiiERsoN, ) Toronto. \ [A cojiy of the same lett.T was sent to Col, .1. II. Cray, Ottawa, aud Judge Day. 4K J UD( 1 M EN T. The ArhitriilorH under tlic nritish Norlli AiiU'vit'ii Ad, 1S(h, Imvinn' can'fuUy coiiMidercd tlio Kliiiciiu'iilH imidc, and the ])r()p()sili()nK (suljiniKcd \>y and on bi'liidl' ol" tho I'rovincoH of ( )nliiri(>and (^ut'l)oc, and havinj^- ln'iird CounKol at li'n«,''tli Ihoroupou, do award and adjudg'o as rollows: Ibt. Thai th(^ hni)(Mial Ad. ol" Union, JJrd and 4th Victoria, C'haptur JJ.'), did not create in factor in law any parlner.s'iiii) between Upper and Lower Canada, nor any such rehitions as arise from a statu of co-partnership be- tween individuals. 2nd. That tho Arbitrators have no power or authority to enter upon any ijiquiry into i\\o rehitive state of the de))ts aner iind Lower Canada respectively, at the time of tlioir Union in IS41 into the Pro- vince of Canada. 3rd. That the division and adjustment between Ontario and Quebec, of the surplus debt beyond ^(j2,.'io6,()0() for which, under the 112th Section of the " British North America Act, ISlH," Ontario and Quebec are con- jointly liable to Caiuida, shall l)e based iijion the orifj^in of the several items of the debt inciirred by tlie creation of the assets mentioned in the 4th schedule to that Act, and shall be ai)portioned and borne separately by Ontario or Quebec as the same may be adjudged to have originated for the local benefit of either ; and \vh(>re the debt has been incurred in the creation of an asset for the common benefit of both Provinces, and shidi be so adjudged, such debt shall be divided and borne equally by both. 4th. That when the debt under consideration shall not com«^ within the provisions of the 4th schedule, whether the same shall, or shall not have lel't an asset — reference shall bo had to its origin, under the same r\de as in last preceding section laid down. 5th. That the assets enumerated in the 4th schedule of thci British North America Act, 18G7, and declared by the 113th section to be the i)r()- perty of Ontario and Quebec conjointly, shall be divided and adjusted and apportioned or allow^ed for, upon the same basis. 6th. That the expenditure made by the creation of each ol llie snid assets shall be taken as the value th ;reof ; and where no assets have been lel't, the amount paid shall be taken as the debt incurri'd, the Arliitrators having no right to enter into or adjudicate upon the policy or advantages of ex- penditures or debts incurred by aiithority of, and passed upon by rarliament. 7th. It is therefore ordered, that in accordance with the above decision, the Counsel for tlie said Provinces of Ojitario and Quel)ec, do proceed with their respective cases. (Signed.) J. a. GEAY, D. L. MACrilEKSON, Montreal, May 28th, 18T0. Note. — The above jiidgment, although daied 28th May, 1870, was not rendered until the 9th .Tilly, 1870, after Judge Day had resigned as one ot the Arbitrators. Am res| All of t to a I fa. in ( unt Arli ( J ni u '10 A-IIHITUATION UKTWKKN ONTARIO AM) QtlKllKC^ UNDKU THIJ JJUITIHII NoriTU Amisuica Act, 18(17. Montreal, Olh July, 1870. Tho nn(Io,r,si(l, of (jouuscI for tho rrovincc ol' Qiiclx^o, horoliy n'spccH'iilly n'lu'cst'iits lluit Ihc- llononibh* .Tojiii ilaiuiUon (J my, ihf Arl)ilriil(»r iippoinlcd l»y lilt) (JovoriniKMii ol" Cniiiidii, iiiidcr llu^ piovisidiis oi' Ihc Uiilisli Noill) AiiU'rica Act, 1807, has become, and now is di.stjuaiilicd lo act as Arbitrator in this matter, inaHmueh as he the said Jlonorable .Fohn Hamilton (Iray, is )iovv^ and lor a (unisiderabh' time past has been, a resident in Ontario, and prays tliat all proceedings uj)ou this Arbitration bo stayed, until tho Clovornmcnt of CanaiUi tihall havt^ a])pointed n duly <{ualilied Arbitrator, in the place and stt>ad, of the said lionorablo .Tohn Hamilton (J ray, so H ^ REPORT IN THE MATTER OF THK DIVISION ATO ADJUSTMENT OF THE DKBTS ^TS^r> A^SSKTS OK lIlMMUl ('AXAl)A AND LoVVER CANADA, UN I) Eli THE i2.Ni. SECTION OF THE BRITISH NORTH AMERICA ACT, 1867. > '.^ ^ \/ { t IN TIIJ;; MATTKU OF Tllli DIVISION AND ADJUSTMENT OF THE DKBTB A-ND A.SSETS OF Upper Canada and Loavek Canada, UNDER THE 112N1) .SECTION OF THE BRITISH NOIITII AMERICA ACT, LsiiT. OL'INION OF THE ARBITRATOR APPOINTED BY THE (iO- VERNMENT OF QUEBEC. The elii])oratc av2-iiment with which fho Ar])itrators havoJ)0(>u lavorod, ri'spectiiif^ tho prhiciple and mode of the division and adjustment of debts and assets to be made by them, under tlie provisions of the !>. N. A. Act, 18(57, has l)een carefully considered, and I think it riifht in statinu,- the con- clusions at which I have arrived, to explain at some length the j^rounds and process of reasoning, upon w^hich these conclusions seem to me to be justilied. In the discussion of the subject we nnist of course start with the 142n(l Section of the Act, from which all the powers of the Arbitrators are derived. It is enacted in that section "that the division and adjustment of the del)ts, criKlits, liabilities, properties and assets of Upper Canada and Low«m' CJanada shall be referred to the arbitrament of three arbitrators." The Act lays down no rule or mode for the division and a Counsel for the Provinces of Ontario and Quebec, n^spectively, have sulnnilied several suggestions as to (he principle under which the division should be carried out, and have in their printed cases presented these suiiu'estions in the lorni of lourtlislinct propositions; of these, three are presented on the part of the Province of Ontario, and one on the part of the i'roviuce of Quebec. ■)-t Tlu* lirsj |m>])().sili()ii, !'ouii(| on ptin'c two, ol" (he priiilcd case ol' ()iiljiri(\ is tlmi the (livisioii .shall Ik' niaclc ;u'i'oi(lijii>' lo Ihc " riopoilioji.s <>!' Itxiil (U'bts." The second, that it. ;shall ht^ made accordiii!;^- to the 'vl'io])orti()ii ol p'l pulation in the two I'roviuees," and, ilie third, thai it. shall he made iiecoid ing to the " rroportion ol' capitalized aH.sets" ol'cu .1 Province. The last proposition, No. S, may he at once disposed of in order to avoid luither reference to it. It is admitted by both parties that it can only ])e adopted as auiodc of division by mutual consent, and as no rsuch consent has l)een u'iveii. ii cannot of course be entertained. The only o))servation I have to make n[)()ii it is, that the valuation of the assets presented in the proposition is utterly unsound and delusive, and if in a later sta^e of the proceedintis it should be found expedient in carrying- out ^vhatever principle of division may be adopted, to follow m some deo^ree the idea which underlies the statement ol figures there given, an entirely dilferent standard of value must be adopted. The fourth proposition, the only one submitted on the part of the (io- vernment of Quebec, is to be found on the 3rd page of the printed case undo' No. 111. It is " to treat the case as one of ordinary partnership, and aj>j)ly "the rules which govern the partition of partnership estates." It is the busi- ness of the arbitrators, either to adopt one or other of these proi)osiii()ns. with such modiiications as may seem to them just ; or if in the co\use ol' their investigations a better rule of division should be found, to sid)stilutc such rule, although it may dill'er materially from them all. Before entering upon this difficult l)ranch of the duties of the arbitra- tors, it is proper to declare my opinion that their ollice is not representati\ c or diplomatic. They are not di'legates or commissioners to settle the (pu-s- tion of division by negotiation and compromise, each acting lor his owji Government and bound to obtain for it all the advantages he can ; but as arbitrators, their character and duties are judicial, and this character im]^lies that the governing rule of division, -.vhatever it may be, must secure a tiiu' and just equality, so that one Province may obtain no advantage at the ex- pense of the other. It follows then that the duty of the ArlMtrators is to make the division and adjustment confided to them, not according to any fanciful or arbitrary notion of expediency or convenience, but in con lor mil \ with some lixed and recognized principhv And this jninciph^ ol division. be it observed, must not be confounded with the mode ol division, 'fhey are very different tlungs. The principle must be uniform, conti'olliiu:- the whole subject, while the mode may be varied to suit the dill'erence t)l cir- cumstances. In other words, havino- settled the princi])le ui)on \\hicli the whole division and adjustment shall be based, it may then bi> allowable to apply different modes of dealing with jiarticular debts, or assets, aecordiiiL: to origin or locality, or other consiroi)osition, and io adopt another rule, na.meiy, one of eqvializalion, and Ihis of itself shows that it is unsoiuul !iu(l iiisulficient. Hut llie trulh is that the locality of the debts or assets has really nothing Io (1(» wilh the prhu'iple of division. Every asset situated hi, or originated for, one Province, hut created ])y the joint funds of the two, belongs tolvm in litlo vl (alum in (/iialibcf parte to both in equal undivided portions. " The U])])er Canada Imilding fund " is as much the property of Quel)oc :is oil )ntario ; each has contributed e(|ually to its creation, and as the money •i> contributed belonged as much to Ihe one ProA'ince as to the other, so does Ihe fund iiself. If it wi're a convenient arrangement hi the distribution of the assets to assign the Upper Canada Ijiiilding h\ind to Qiiebec, or the Muni- cipal Fund of Lower Canada Io Ontiirio, tlu're is no reason of exclusive right \\ hy il should not ]n'. done, Ihe sole; consideraiion being one of convenience iiml not of legal right. All, iluMi, thai can truly ))e said in liu'our of this pro- posil ion is, that it may be convenient in some instances to assign a certain ficbt or asset Io the one Province, or Ihe other, on a(!C0Tint of its locality and lliogveiilcr lacility of 15. N. A. Act, it cannot be accepted. 2nd Proposition. — The second proposition, that of basing the division npon the " Proportion of population." is not less liable to objection than the ])receding one. In itself it is not sustained more than the other ])y any recognized law or usage, nor does it rest upon any fixed foiuidation. The latter defect is ob^'ious. The relative i>roportion of the population in the two Provinces is continually shifting. It was one thing in 1841, and is entirely another thing now. If the division had been made within a year from the former date nearly two-thirds of the debts and assets would have fallen to Lower Canada, although that Province owed nothing and the assets ol' Upper Canada were then of no available value ; if a few years later, one- half; if in 18G1, four-ninths : and if it were to bo jiostponed for ten years longer, perhaps one-third. In short, it varies from year to year, and unless it be assumed that the rights of the parties are shilling with every death and birth, it is difficult to understand how they can be dealt with upon so unstable a basis. This mode of division is not d(>fensible upon the ground of equity, for it might happen that the local debt of the smaller population would be much greater than that of the more numerous, or that the di^bt of the larger population would liir exceed in amount the proportionate dillerimce of num- bers between the two. In either of these casi^s thci division, if by i>opulation, would work a manil'est injustice, If, for example, the smaller population were in number 1,000,000," with a local debt of i5;2,O0O,OOO, and the larger population were 3,000,000, with a local debt of iiii2,000,000 also, the division by population would impose upon tlu^ latter three-fourths of th(» whole dcbi, that is to say, its own local debt and $1,000,000 of the local del)t of ihe tVn'mer. Nor can the eqirity of such a rule be vindicated upon an assunipiion I hat the ability of a country to pay depends ni^cessarily ui><)n tlie numlxM- of ils population, for such an assumption cannot ])e sustained. It woxild not be dilliciilt to cite niimerous ctises to show that it is not juslilied by experience or history. liut Ihe conclusive objection to the proposition, as aflbrding a ruli^ of division in ihe ^ircsent case, is that it is inconsistent willi, .. ul indeed coii- Iradiclory to, the in-inciph; upon which Ihe Union of 1S41 was bast'd. It is obvious Ihiii iht' lw<> Provinces w<'i'e Irenled iu the Ke-Ullion Aet ttl' 1S|(», If di '/;♦ 57 7 iis (scparalo (iovcriimonts, with fixocl rij,^hts In'twi'i'ii Ihoiii ns tiiiiis, niid without ro<^-iird to tho ditroreiice of poi)ulation. Not only was tho poxnihi- (iou ol" Lowor Canada, then nearly one-half more than that of UpjHT ('anada, (the former beuig* in round numbers OGS.OOO, and the latter 405,000), but its revenues and its assets were also very mueh greater ; yet the representation was equal for l)oth I'rovinces, and an al)solut(' tf({ua]ity of debts and assets created durhig- the Union was established ln'tvveen them. This rule of Union settles by lu'cessary imi)lication the rule of division. The law which in case of dissolution was to g-overn the distri- bution of the debts and assets created during the subsistence of the Union, was then iixed upon an unequivocal basis of eqiiality, and cannot now be set Mside for any other — much less for that other (namely comi)arative popula- tion), which was then pointedly rejected. The chief argument in support of this second proposition, (proportion of ])t>])uiation) rests upon the fact that in several instances population or something nearly approaching it has been made a basis for the Legislative distribution of i)ublic moneys. Thus, the appropriation for common schools is made dependant upon I he number of inhabitants. The distribution of the Municipal fund in Upper Canada was accor- ding to the number of ratepayers. And })y the B. N. A. Act, 18G7, the subsidy to the several Provinces was based in part, but not wholly, upon capitation. Of all these, as well as of the sum granted to tho Eastern Townships of Lower Canada, by way of indemnity under the Law for abolishing the, feudal tenure, it may justly be said that they were particular rules created l)y the Legislature for special cases, each having some peculiarity not be- longuig to the other. The lirst, population absolutely, as the more people there are of course I he more children are to be educated; the second, ratepayers, a limited class of persons very different from general population; the third a com. l)ination of capitation with other circumstances. Tlie rule in each case was adapted to the si)ecial circumstances of that case, and to extend these riiles or either of them, from the particular case to a general application for the regulation of rights of an entirely different luitiire, would be to violate palpably the plainest laws of reason and of logical inference. A dinsion according to population might be a convenient and speedy mode of ])ringing the present controversy to a conclusion, if such division were to be effected })y negotiation and compromise ; but as it neither rests upon any legal principle, nor is sanctioned by any agreement of the parties, tlie arl)itrators, e\'en if the objections to it were less conclusive, cannot en- tertain it in face of the rule clearly established by the Act of 1840, that Hie 8 r.8 (•.juivlily (luriiii^- i!it> Union niu.sl he hI^noIuI ' Ix'twcrn ihe I'lovincrs :!,s unii.s witlioiU n'lon'iioo lo Iho (l.illt'nMK'C olilu-ir p()i)ul;ili()n. Tlio loron-oinu' i)r()]H.sili(.iis then suiV'iv;4 no principle under wliieli lln- division iuul adjust iiienivee no indienlion of tlieir inlen- I ion, then it must he lo(»kedtorin tlio system ol'hvw an(le(,uity commi)!! !(• both countries. With respect lo the inlentions of tli'j parlies, it has l«reii a'readv shewn. on a former pao-,., (hat tlu^y an' indicated by the lenns of (he iie-Hnioii Act of 1840. Jiisecti(m1iiorthat Act, itAvas provided that tlie rei)voseutation sliould be equal, in s(>ction 50, that all diities and revi^nues of the two Fro- viuces should form one consolidated fund for the piddic service of the Vm- vmco of Canada ; and hi section aC), that the interest upon the debt of each Vrovince should Ibrm the second charo-e \ipon this Consolidated ]{evenue. JUit the popidation of the two Trovinces at tiiat ptniod wasiun\rly as three (o two in iavor of J^ower CanacUv, and its revenue wasnuich in excess of all its liabilitie.'*, ^vhile that of i:i)per Canada, burdened ^vith a de])t of over live and a-hall' million of doUars, shewed an annual delicioncy of over !iii200,000. Theprovisionsof the Act of 1R40, in connection witli tli.'S(> facts, shew that durhii>- the continuance of the Union there was to l)i' an eijuality of ad- vantages, Avitlumt rej^-ard to the hu:>(|uality of circumstances. All the liabili- ties of each Province were to b(> paid out of the Consolidated Revenue. There was, indeed, no other source from which they could ])e ])aid after the imrtienlar revenue or each Province had been merged in that <;eneral one. As the Union was expected to be perpetual, no provision ^vas niad(> for its dissolution ; but there can be no doubt that the equality conti'inplated i)i its Ibrmation carries with it necessarily upon severance a liivee(juality, witli- out reieicnce to jiopulation or other advantages, in (he division of all debts and assets created durnig its subsistence ; and this rule of division resulting from the only source vdiich can be regarded as airdiovilntive and ai)plica- ble to the precise question, is cohicident wi(h that which the law of both countries would afford in the absence of other guide. InA'iew of that lawaudofthe Act of 1840, witlj tlie resolutions of the Legislatu7"es of the respective Provinces which precedeii it, the I'nion ellect- ed by the latter was certahily in the nature of a contract, and there is but one recognized denomination of contracts to which this relation of (ho I*ro- vhices towards each other can be assimilated ; that is tlie contract of part- nership — not a parhiership in the more technical meaning which the convenience of commerce, acting iipon the doctrine of the courts, has attach- ed to the term, but in its older and broadc'r signillcation, — the Sorir/ufi of the lioman Law^ which is the source of the whole law of l'aiiner.shi[) in Europe and America. The adoption of the rules which govern tlie ia;-;])o:-iiioa of the property \ 1 '^ ■ / L-jJOife^-j-v- -!jttai^'4*4-v^" 5!) ^ , 1 V ■ / ol'such associiitions iiivoh'os the ficceptanoo, in iiqualillod dcn-roo, ol'thii pvo- po.sitioii suhiuittcd Oil th(^ part orQni'l)ec; Iml it. is not, to l/c iul'crred that lilt' arlntnviors iioccssiirily accept llio Ibrm and details Avhic]i arc i)-.-csoiitcd ill c()iinccti()ii with that proposition. Indeed itnmst l)e understood that in (h^aiiny with tlie questions now Ijclbro them, it is intended only to settle tht; |)rinci])le ot'division and adjustment, andnol to pronounce any oi)inion ui)on 1 he correctness oi' the lij^'ures or other statements to whicli such i)rinci|)le niMy apply. The Union thtMi of Upper and Lower Canada in 1S41 mus„ !);> reo-.u-ded .sul)stantially as an association in the naturt^ of a partn(>rshiir It miuht hi- itssiniilated to a variety of associations and forms of comnuriily oi'])roi)!'rty falling- under this general name, such as the community between hus))and and wile, and certain relations of joint ownership, which are known in the older law, and arc all inclutled under the generic term fiocietas. A definition of that contract which has been accepted by the highest authorities as at once concise and complete is furnished ))y a distinguished ( 'ivilian after a rtn'ieAV of all those which had been given by his predecessor. Under this delinition, partnership (^'^'or/x'/^w) is a contract by which parties consent to place somethhigin common, with a view of sharing- in llu^ gain or boneiit which mny arise therefrom. The relation of the ProYinces to each other Avns more strictly analoQ-ous to the universal piirtnership — the S()t:irlas//niiK:rs()rum hoiior/nii— ihan to anv otliei- kind of associati(^n. Jt answers every condition of that division of luil- versal ]>artnership in which the revenues and sources of income of tlie parties are united into a common fund for the ben(»Ut of both. In I'act languag-e, simi- lar to that of tli(^ oOth section of the Union Act of 1S40 might have ))een used in a private agreement for the Ibrmaliou of such a co-partnership. The revenues of thi' respective Provinces, it says, shall Ibrm a consolidated fund for the service of the Provinces of Canada. In such associations the particijxUion in what is acquired dming the partnership, in Die absence of agreement on the subject, is equal under the ]iom;ui as it would be under the I'Li'jilish law; aliiiouuh ;i didenMit rule o!)tained in I'bance, and is :i(l<)[)i('d by tht^ modern code in that country. This kind of connuunity is as old as society itself, and instances of uni- versal partnersliip constantly oc<.'ur, not only in times of u'reat anti(juity, and under the civilization of Greece and liome, but also in l']uro[)e during the earlier and middle, ages. They have become of rare occurence in the present day in which partnerships are mostly conunercial ; but a true and just sjiirit giv(>s vilalify to the principles which lie at thi^ bottom of this relation, and these ]>rinciples, carefully and fairly ap]ilied, will carry out; with absolute comjileteness a division of all the interests ])eibrrsons, but upon that larger and llrmer l)asis of abstract I'iu'lii wliich is uiiclianuiiig and ff mii\ ci'sul a|)pl!ca(ioii. 60 Tho dignity of tho parties, or tho charactor oftho instruiniMit— a pu1)lic statute — l)y which they wero miitod, must not bo roy-ardccl as pri'si-nlinu' any dillicnlty or in any manner afiecting this view oi' their relutiouH. There were, of course, broad political considerations involved in Ihc Union, but in so far as the financial position is concerned, the Provinces of ITpper and Lower Canada were neither more nor l(\ss than ^rcnit (■ori)t)ra- lions, and the pruiciples which apply to their joint contribution of capiiul in the formation of tne Union, and to the partition upon its ilissolution, differ hi no wise from those applica1)le to any other corpcn-ations, which <'ombine and use their common property for their common conveiii(>nci' and profit. I think, then, it cannot reasonably be doubt(^d that the only course which is soiind in principle, and will be fomid sai»^ and cfl'eetual lor earry- iiio- out a true division and adjustment of the debts and assets to be disposed olfisto regard the relation of tne late Provinces, suhstuntially, as a, univer- sal partnership, without necessarily applying to it tlie merely tei^hnical rules which have been created by the peculiarities and requirements of commercial partnerships. The treatment of tho Union as an association of the description indi- cated above, involves an examination of the rights and liabilities of eacli ol the Provmces under the general rules of law sippiM-taining to thai khid of relation, and the consideration, among other (piestions, of one which is deemed to be of so much importance that it lias Ihmmi submitted in an isolated and promuient form, and the arlntrators have bi>en urged by both ]nvrties to give a distinct i)reliminary opinion upon it. It is the question oi' t he disposal of the debts and assets of the Provhic(>s which existed at the time of the Union in 1841. It has been presented and argued chielly with reference to the debt then due by Upper Canada. The amount of th;il debt was between live and six millions of dollars. It had be(!n contracted eiiiefly in the constriiction of piiblic works which wn-re then unlinished ami lUiproductive, and there were no available assets for meeting the dehl <>r ihe annual uiterest upon it. The pretension of Quebec respecthig this debt is, that it midces pnrt of the debts and assets which are to be dealt with, and that the arbitrators cannot disregard it in distributing the liabilities which each J'rovince is to assume. On the other hand it is contended in behalf of Ontario, that the arbitra- tors cannot deal wdth this debt because it (>xisted prior to 1841, witliin which date, it is said, their investigation must be coniined, and beyoiid which they cannot go without exceeding thc^ autliorily conlerrt>d upon th<'m l)y the B, N. A. Act. Moreover that the debt, to<>-ether with all the asscits, were merged hito the common fund and liabilities of the new Province of Canada created in 1841, and that it can no lonuvr he dis- tinguish' 1 from the general debt, and has, hi I'act, hovn \y.\u\ and discharged. From 'in of debt or comparative population could hav(^ be(>u made tho basis of the division. 1st. — Tho first question then is whether tho Arbitrators aro restricted, by the terms of tho J'>. N. A. Act, irom p'oinj^ at all into an examination of any particulars of debt or asset of either Province which existed before 1841 . It is uri^ed by +ho counsel for Ontario that the terms of tho Act preclude an en(juiry into any matters anterior to 1841, in the same way that Arbitra- tors would be conlined within the limits of time* specified in a submission of conflicting- accoiints between private parties. It cannot bo pretended, how^ever, that there are in the Act any words of direct and express limitation of the investigation to debts and assets which hiu'e originated shico 1841. The argument on the subject rests upon inferences deduced from the chnracter and gtnu>ral puri)ort of the whole Act, and the comparison and cons) ruction of different portions of it. In sui^port of tho view taken on l)ehalf of Ontario, the ]'>reamblo and lh(> (Itli section of the Act seem to be chieffy relied upon ; but aft(>r a careful considtn'ation of both these I am unable to discover in either or in both lou'ether, whether taken in connection with section 142 or alone, any words or form of exinession from which tlie conclusion contended for could, by I lie most liberal imi)lication, be derived. The inducements in the jireara- l)ie, and th(^ provision in the (ith section appear to me to relate to subjects entirely unconnected with that under consideration and not in any deg-reo to elle(!t it, except i)erhaps that the names Upper CJanada and Lower Canada, contained in that section, may help to explain the meaning- of the .same names in section 142. The fact is that the question miist be decidinl upon the terms of this section (142.) If Ww aiithority given by it does not include a right to ex- amine and decider all th<^ debts and assets, wln^thev they orig-inattid before 1S41 or since, it cannot be supplied by implication from other portions of 02 \* Iho law. Thi'so ollu>r ]>ortii)iis may l)n used 1<> cxpluiii and iiilt'rp'-"^ the true moaiiiiii? of that. Ncctioii, but llu'v cannot be used citlii-r to i>xU'ud or to roHlrict tlu* authority which is i>ivcn hy it. Beariuif in mind, then, thai the section 14- is the only sourci^ and ni«\,suro of the authority ol'tlic arbitrators, h't usciKiuirc wliat it says: "Tho division and adjustment ol'the (h'bts, credits, liabilities, i)roi)erties and assets ol" Upper Canada and J^ower Caiuula shall be referred to the arbitrament of tliree arl)itrator8." These terms it must })e admitted are of tlie. broadest and most <'ompre- he7isiv(f character — del)ts aiul liabilities, (rredits, property and assei.; — no (jualilicatiou as to character or oiiyin <>l'any of them, no mention or indica- tion of any limited time. J)o not these terms necessavdy convey an autho- rity, and hnpos<^ a duty of dividing- and adjustiny' all \\w debts and assets, not a partofthinn only V Can the arbitrators, in the face of words of such large import, refuse to consider any particular of these debts and assets, or place upon themselves a restriction as to time which the law has not plac- ed '{ But not only has the law not idaced such a restriction, its lam^uai^'e is positiA'e in the oi)positt^ sense. Observe thid the debts and assets to be divided are not those of Canada but are those of I'jipcr Cdiuvta and Loiriw Canada. The use of these names is an mu^cjuivocal exj^ression of the intention of the law. Had the term, debts and asscits of Ca/itif/a, b(»en used, tjiere nui>ht possildy have been a cohtrable uroiuid for aruument — thnt those (lel)ts and assets which ori<>-inated in that Province duviuL-- the 1 nion weic alone in- tended ; but the iTse of the terms '• de))ts and assets of Upper Canada and Lower Canada," puts the matter beyond controvi-rsy. This form of desii>natini.>- the debts is the same as that Ibund in th(> Union Act, 1840, particularly in the ")(ith section, by Avhich the int(M'est of the public debt of the ]'rovinces of lj[)i)er Ciinada and Lower Canadn," or either of them," is mad(^ a charge upon the Consolidattnl lievenue of Canada, and unless the d(>l)ts and assets of tliose Provinces, anterior to the Union of 1841, as well as since, wereintiMuled by the 15. N. A. .Act, Ihe form ol' <'xj)ression adopted hi it is grossly inaccurate. But that these names, Upper Canada and Lower Can;ula, were not \ised unadvisedly in this connexion will be manifest from a referiMu e to other por- tions of the Act, In section G, we have the first deluiition in the Act of the names Upper Canada and Lower Canada. Tlu'y were, respectively ])arls of Cunada, and are now Ontario and (Quebec. This S(M-tion as well ;is the Innguage of the act, and indeed the whoh; courst; of legislation from 1S41 to I St;7, establish beyond the possibility of reasonable controversy tin' identity of U])pev Canadawitli < )nlnrio, mih] of Lo\v:'v CnnMibi with (Quebec !n section lOl I. u Hi . \. es 'il Wf Iiiivr !i ri'lriviicc lu llu' piihlicdfid (pT llif liii,. l'i(.viiic»' ..r Ciinit/d. In m; tioii I0!» llio siiiiM' H.nn ol rxpivssion is ii.scd, " Liiiidn, «S:c.. ol' tlii- I'n*- y'mviMti' (^(i,uif/,i." ill M'clioii i IL' Oiiliirio iuid (^Ui'l.cc :ii»' iiiiid,'. (•(.iijc.iMtly Ii:d)lc lo I'.ic J)oiiiiiii()ii IWi- ih,. '• d(.l)t ol* the Tios iiici^ (.1' Cmndii;' "iiud in si'clion 11."., 111.' ns,s;>l.s tin* (U'scribcd us " asscls ol' llic I'roviiico ol" Canada" This I'onii oC t'xinvwsion is ci-ilicidly corivct in all (he places wht-roit is used. The words, o/' (.V//^/^A/. am carcrullv chosen to indicalc Ihc prccisti Ihiiii,'- intended ; hut, on coming to the ItJiid soclioii, in which the Act was dcaliiii.- with tli(> ri^l.ls ol" ihn two rrovniccs inter se, there is a nuirkcd dil- lereiice of expression. It is no lonn-er th(> dehls and i\ssv\s of Can mio, Init Ihcdchls and assets of each section which conii)rised Ihai Province. f'/i/irr Canada and Lomr Canada, tlins i)lainly taking- away any and)iu-uity which i\w use of the luune Caiuida niiyht possihly have caused as to the coni)rehcnKivcness, hoth with ri'j^ard to "matter and to timo of tho authority and duty of iho arl.itrators. Indeed, if in i)ultin^Mimeanini>' iipon the words (."f the 1 ti'nd section, it were lu'ces- sary to exc^lude an examination, either of the dcMsand assets existinj? prior to the Union of ISH, or of those created during' its s\d)sistence, the"'exclu- sion under a strict readin,i>' would he rather of llu' latter than of the fornn'r ; for in this section alone are they desi<.nate»' as del)ts and assets of llpi)er Canada and Lower Canada, whih* throui-hout all the other i)ortions of the H. N. A. Act they are called dehts ami assets of Camida. The soimd and complete interpretaticn, liowever, unral circumstance's which miuht l)e stated to sliow that not only is tlu^ pretension that the arbitrators cannot deal with any matter which origimited anterior to 1841 negatived hy th(> terms of th(^ ]). N. A. Act, hut that on h'ss technical utoiurIs that pr(>iension is inadmissahle. These considerations, however, may mor(> properly ))i> taken up under the second question which must now be considered. 2nd. Whether by any particidar circumslances, or hy any ncneral rule of law, the arbitrators are debarred from dealin<>- with this debt in the divi- sion and adjustment of the debts and assets under th<' i)rovisions of section 142. It is uru-ed in l)ehalf of Ontario that 1)y the law of Tartnership, in the al)sence of any aiireement or declaration to" the contrary, the contributions of the two I'rovinces, parties to tlie Union, are pri'sumedto have been equal, whatever may have been Ww actual iiUMjUiiiil y oi' iheir assets at the time ;' that these assets and the debts were joined and nu'riicd in oiu> connnon stock, and the equality so establislu'd by presumplion of law caimot now be examhieil or disturbed. In support of such conclusive jncsumption, and recognition of the fU '^^ *-~,^ dr I o several sec lion S () r the Act f edualitv ol' (•<>utvilmticii,n't'orciUH> IS uiiKlr . .. ,- , . , , , . IH40 and inure particuhirly Ic section ati, by which both nitercsl and prni ch)al' of the public debt of .>ach oi' ih(. ]'rovinc(>s of I pper and Lower ciuada are made a charge upon tlu> Consolidated Keveniie ol the rrovn.c. oi' Canada. Ill this view ol" the subject it is evident IVom what has already l»e.M. said that I cannot concur, li; s<.eins to in(> that a sulhcieut ^^^;;' ''f^)^'' to it by th(^ exposition on the pr(>cedin- pages ol the c ear nnpmi ol t he Un- o^agc^used in\lie 14-id section ol the 15. N A. Act ; that .//the nt tacts. The true meamno- then of the rule invoked is not that the contributions shall be presumcnf to be equal when the inequality is certahi and the d('gree of it manifest and precise, but that, in the al^sence of spocial agrceinent, the shares in the benelits of the partnership shall, by presumption ol hiw, be equal notwithstanding the inequality of contributions.^ For instance i h(^ contribution ot one partner were formally declared to i)e!5;10,000 and ul the other %b 000 but without any stipulation as to the pro])ortion ol their rt>spec- tive shares in the proiits, the rule of equality of shares might perhaps be applied ; ))ut it will not be conteiuh^d that in such case there would \m> a presumption of equality in ihe contributions which would override liie positive declared fact of their inequali+y. Now what are the facts before us? Documents of the gravest aulh«).- ity— the public accounts— shew what the de})ts and what the assi-ts oi the Provinces of Upper C/aiiada and Lower Canada respectively were at the time ofthe Union in 1841. These accounts were made up ollicially by the two Governments, and are, therefore, lobe received as lormal declarations by the parties of the precise condition ofthe aliairs ol each at that time. They shewed a u-reat inequalitv, mid notwithstanding thai ine(iiiality it was settled by a IV oqual durnig. its contmuanco, wliicli Avas thou oxpoctod to be poriiotual P.ut this agrcvmont did not chann-e tho patent and declared iact of the inefinalitv o contributions, and ranch less did it constitute an undertaking on the part ot J.ower Canada to pay out of its separate revenue, after the dissolution of the partnership, the half or any other portion of this d(^l)t of Upp(n- Canada It may bo added, that, even if the amount of this d(>l)t had ])een rcallv ]^aid durm..- the Union, which it was not, it Avould make no just dilference m the present position of the parties toward eacli other, for the r(>sult of such ixiv- nient would be that so much was taken out of the common iiind for th(> p^v- UKMit oi the particular debt of Upper Canada, which would otherwise hafo been applied to the discharo-o of the common del)ts, and thus the prcvsent amount to be divided has bcn^n increased to the sum. in round numbers oi" J?10,500 000 mstead of the .$5,000,000, wliich it would have been, supiWn- thedebtoi Upper Canada to have been $5,500,000. ° But to pursue this branch of the question a little further. Ly the terms of theUmon Act, 1840, see. 5(5, the ' debts of Upper Canada knd Lower Canada are spoken of, and certain provision is made for them, under the description of the "pul)lic debt of the Province's of Upper and Lower Canada or either ol them, ' out of the Consolidated ]Jvvenue of Canada They are kept apart, two debts, one of each I'roviiice— hie precise amount of each was iaiown, and there is no declaration in the Act by which they are fused to- ovther, or their id(Mitity as separate and distinct habilities is lost. Th(>y were kopt distinct m thepul)lic accounts of 1S41, made up after the Union and Avere brouu-ht belore the Leo-islature in the same distinct form, upon a mo- tion to that edect m 1847, and (his distinction is- recoo-nized and preserved in statutes posterior to that ]ieriod. 15^ one of these Slatutes (12 Vict C 5) au- t liority IS o-iv,>n to issue dc^hentures, to redeem the debt of Upper Canada and by another (22 \ ict., C. 84, 1858) provision is made for issuiim- Provincial stock lor redeemmjj such debentures. The chano-e of form of this de])t, by puttiniv it in the sliape of del)entures or S(Mnivities lor public loans, which may have been used to pay off its pre- cise fi-ures, makes no dilference. It is still the del)t which Upper Canada added to the joint in(h>bt,'diiess of Upper and Lower Canada, and the ques- tion now IS, not wh(>th(>r Upper Canada shall pay it to Lower Canada, but substantially Avhether Lower Canada shall ]):iv the debt of Upper Canada to n, Ihird party. It is true thatl)y the section 50 of the Union Act of 1840 the payment of the interest of the de])ts of Upper and Lower Canada was made a second charuv.onthe Consolidated lii'venue; and the principals of these debts were includ»>d in the s^vneral terms of the sixth chnru',. upon it. lliis was amatter of course, for, as th(^ revenues of each Province made up the revenue cl' United Canada, there was no other source from which the inter(\st could l)e paid or the in-incipal l)e ^'naranteml ; l)ut this necessary arrann-i>. UKMit was mi>d(> for th(> ]>rotec(i(,n of ih(^ pu])lic creditor, and has n'oinlluenc^ or beanno- upon the ri^-hts of th(^ Provinces inter se. Of course the cnnlitor wastobc paid, and hewas pnid Die iutcMvst out of the Consolidated lie- vciuiiMluimi;- the Union; Init the principal was never ])aid out of the con- snli,];v!...d revenue or really dischar-ed, it was only carried on by new loans, 66 and, when, on the separation of the Consolidaiod ]ievenuo into tho t\yo^ par- ticnlav revonues, the question avisos' out of which of thi'so this dt^ht of ITpi);'V Canada is to be paid, the answcn- siirely caimot admit of hesitation as l)e-_ tAveen the two Trovinces that the debtof Uiiper Canada is to bo paid out of the revenue of Upper Canada. Before conchuling tho investigation of the subject of the habihty of oiio. rrovincofor the debts of tho other, after the dissolution of the Union, more particular reference should l)e made to the specific provisions of several st^c- tions of the Act of 1840. These are sections 50, 55, and oG. In the iirst of these, section 50, it is provided that all the duties and revenues of the said Provinces shall form one consolidated fund to be appropriated for the public service of the Trovince of Canada and subject to the charges mentioned in the following sections. These charges are spccilied in the sections number- ed from 61 to5(;, and are all made charges spccihcally upon the " Conxoli- dnted Revenue Fioid." They embrace of course all the liabilities which at that time and before were charges on the separate revenue of each Province, and some others created by the'Act itself. Among them, in section 5(5, was tho interest on the pubhc debt of each of the Provinces of Upper and Lov.'or Canada^ which was the second charge ; and at the ond of the clause i.s a gen- eral declaration that all other charges, which may be construed to iiu-hide the principals of these debts, should form the sixth charge v/ioii (he rates and duties levied ill the Province of Canada. Now the result oi this phraseology is not that the Province of Upper and Lower Canada uulividually were m.ade jointly liable for each other's debts then existing, })ut tlie liability Avas charged upon a special fund, that is, upon " the rates and d/tties levied in the Province of Canada and making up its Consolidated Revenue Fundy l>ut by the dissolution of the Union this special Irind ceased to exist before any pay- ment had been made out of it, of the principals of tho de])ts, and with its extinction, the charge u]ion it necessarily tenninated. The extinction of this fund is so absolute that not only has the consolidation ceased, but th(i rates and dixties from which the commoii revenue was derived have C(\\sed to appertain to either province. The separate rev(Min(^ of each being now derived from newly created sources of an entirely dillerent character. I do not believe that any law can be found, or any legal inference be sug^•ested under which after "this exthiction (and in the absence of ex])ress stijiulalion) one Province can be held to i^ay the debt of the other IVom its particular roA'-enue derived from sources which did not, and could not exist at the date • of the union of 1841, or at any time during its continuance. On the con- trary, it seems to me clear that the etlect of the dissolution was not to leave either Province liable for the debt of the other, but to replace k\\c\\ in so far as its particular lia])ilities were concerned, in the same position in which it was prior to the formation of the Union. The silence of Lower Canada during the Union, with respect to thi.s debt has been urged as amountinu'to a kind of \vai\er hy that I'rovince, or rather as an acknowledgment and admission of its joint linl)ility ; but the fact, if fact it be. that no claim was made, can hirve no such signilication; no claim Avas possible, it would have been a simple abMirdity. The l)asis of r t)7 Ihc ITuioii, as has been shewn, was an absolnto equality in the benefits to be derived from the coinnion revenue during- its eontinuance. Upon that basis Lowm- Canada had no right to demand anything from Upper Canada, on the score oi'iis de1)t. Thc^ latter Province was not then and is not now tlie debtor of th(^ Ibrmer. Indeed, there could bo durhig the Union no creditor and no debtor as between the two sections ol'the I'rovince of Canada, for that Province alone represented the whole debt. The common revenue was applied to the common lial)ilities, and the question of the separate lial)ilities of the one Provhico or the other to outside creditors, could only come up after they were severed and each had resumed its original individual condition. To sum up the statement in a few words: the debt of Upper Canada was charg-(>al>le to tlie Consolidated Eevenue while the Consolidaipd lievenue subsisted, but when it became extinct and ihe revenue of each I'rovince became sei)arate and returned to it, the debt of each Province also returned, and is ehari,'eable upon its particular revenue. I have thus explained my view of the legal aspects of the questions su])mitted ; and upon a careful consideration of the relation of the parties and of all the circumstances, it seems to me that the equity of the case is also in favor of admitting an examination of the debts and assets existing a*- tke tiine of the Union in IS-H. Asa test of the reasonableness of this, let us , suppose that the Union, instead of enduring for 2G ears, had been severed within a few months after its formation, would not the pretension in such case that Lower Canada was ))ound in the division to assume half ()l'th(>, great del)t of Upper Canada have been manifestly and startlingly iin- jast '{ l)ut the injustice is in reality the same now as it would have been th(>n. It is matter of history that Upper Canada, whatin'or her undeveloped resources may have Ixhmi, was in a condition of great iinancial emlxirrass- luent, in LS41, and it is not too much to say that she was rescued from a calamitous crisis by the union with Lower Canada. It is stated in the life of Lord Sydi^iham, pp. 13o-i, upon the authority of the I'arliamentary papers of IS-R), that: _ " In the sumunn- of LS-"]',!, Upper Canada was on the eve of bankruptcy, " y.'ilh an annual revenue of not more than .€7S,0U0. The cliarge for the '•interest of its d('l)twas €0.'), 000, and the penmuient expense of its Gov- '•(>i'nmeut .€05,000 more, leaving an annual deiiciency of .€42,000 while the '•want of a seaport deprived it of (lu> power of inere:\sing its reveniie in the. " usual and least onerous way by tluwmposition of duties * -"^ ^= and '■ the ruinous expi'dient which had ])een adopuxl of late of paying the in- '• I -rest of the public del)t out of fresh loans could no longer })e repeated.' The Im]>erial Government to help Upper Canada out of the " condition in v.'liieliit \-*as inipossil)le to coutiniu'," brought a])0ut the union of Upper Canada and Lower Canada. And again Lord Hyd(>nham in his lett( Decern'oer, iy:Ji>, pp. 144, 150, says : of 20lh November and 8th 68 f '• Til., finincos arc more dorangod than w b.-lioTod evou ill Knglalld- .. TlK, V:ii^^Wm a yoar i«ore=Uia„ ominl ^"^l^'^,^^ ^^ u Avnrl'^ siisiiond'Hl I'^iimva lou uom^- ou last irmu tlic i lOMUct i^\ ^ ' v ^. :;:^^^' tvth only half what it was Jl. T^jk. o U.od a...>.a "moans of romiitiii- its linancos ]>y persuadnig Cxuvvt hulam lo m ip " Upp^'i" Canada Exchequer." The loro,oing extracts, to which otl-rs equal lv^|^Jg.ruj^^^^^^^^ nrlrlPrl shcw how ur<>ent the necessity was, from which the Lnion i^^^^^^^ Jh^Twirrm^^^ then can it be preteiuh^d that Lower Canada ^i^:^z t - SXm 'in^^^ ^;S5 of the other Province. It is true that while the Union lasted this debt remained a common lio- bihtv-vnd would always have so remained, if the union had been, as w as nte KbH^^ • ^■^^t now that Ihe severance has come and the ce„t has tobe^'^o^h'ut^ide creditor represented by ^1-1^---:^^^--- seem i-econcilable with any standard of reason or justice that it should l)aid by Lower Canada. The debt was the debt of Upper Canada, and it^ '^^'^.;^;\}^;'?''^^ that it has chaiKved its form once or twice or oft.M.er durm- ihe ^ '^i<;" - ^^ ^ thfh^mi^s'>e correctly stated at live and a half nn lums, the act .t.m ;iu"h!d "\hi. day it more than doubles the amount ol the surplus ol debt to be divided. I am of opinion, then., upon tli(> wholi^ case — 1st. Thai the proposilions Nos. 1, 2, 3, submitted in behalf of Ontario, arc inadmissible. ond That the rules of division and adjustment^ should be tho;<«> ^ ^nc-li o-over certain partiierships or associations, to which the Union ol the 1 - Vinces musi be\issimilated, in solar as those rules can l)e made applicable to the circumstances of the case. 3rd. That the arblu-ators have authority, under tlie ll^^^j^;:^^|;;^^.;; N A Act, to examine hito tin- state of ind(d>l_eduess o each ol the 1 > " '^ ol'Upper Canada and Lower Canadaas it existed at the tmie ol the L.non oflS41. 41h That thev are not leu-:.llv debr-rred by any pavti<-ulav < •ivcum- standi of\hecase-or any general rule of law from enienmr u,n.n such examinations. C. ]). DAY. \ 09 Dissent and .Tudg:\ient isy the Akbitratoii appointed jjy goveiinment of queijec. THE Tlic vindcrsigiuHl Arl)itviitor disseiils irom tlio judgiiK^iit ol' the Hon. ]). L. Mac[)li('rs()ii and Iho Hon. J. 11. Clray, two oi" tho Arbitrators apx)oint- cd under the 15. N. A. Act ol" 1SG7. 1. Because the said judgment purports to bo founded on propositions wliich in the opinion of the undersii>-ned art; erroneous in faet and in law and inconsistent with the just rights of the Troyince of Que]>ec. 2. Because the relation of the Provijices of Upper and Lower Canada, cr(>ated by tho Union of 1841, ought to he regarded as an association in the nature of a universal partnership, and the rules Jbr the division and adjust- ment of the debts and assets of Upper and Lower Canada under the au- thority of the said Act, ought to be those which govern such associations in so far as they can be made to apply in the present case. B. Because tho state of indebtedness of each of the Provinces of Upper and Lowm- Canada at the tinle of the Union of 1841 ought to be taken into consideration by the Arbitrators, with a view to charge the Provinces of Ontario and Quebec respectively, with the debt due by each of the Pro- vinces of Upper and Lower Canada at that time ; and the remainder of the surplus debt of the late Province of Canada ought to be equally divided be- tween the said Provinces of Ontario and Quebec. 4. Because the assets specilied in schedule 4, and all othes assets to bo divided under the authority of the said Act, ought to l)e divided equally according to their value. 5. And thereupon, the undersigned presents an award and judgment bnsed on his f(n-egoing propositions, and upon the reasons assigned in his l>i'inted ophiion in the terms following, which, in accordance with his view of the case, ought to be rendered. The arbitrators under the B. N. A. Act, 1807, having seen and examined the ])ropositions sul)niitted on the i)art of of the Provinces of Ontario, and QiK'bee respectively, for the division and adjustment of the debts and assets of i;]>p(M- and Lower Cunada, luider the authority of said Act ; and having hi'ard Counsid for the said Provinces respectively upon each of the said pro- positions ; aftin- due. consideration thereof, are of opinion that the propositions submitted on behalf of the Pro vhice of Ontario do not, nor does either of them, furnish any ](\gal or suilicient rule or just basis for such division and adjustnu^nt, and' they do award and adjudge that the said division and adjustmcMit ouuht to be made according to the rules which govern the par- lilion of the debts and property of associations known as universal pnrtiun-- ships, in so iar as such ruK' can bo made to apply. And the Arbitrators liaviug also heard counsel for the Provinces of Ontario and Quebec respec- tively^upou theolij(^etion made onbehalf of the former Province to the "j'uris- dieiion and axiihority" of (lie Ar})itrators to " enquire into the state of the debts 70 i » or credits of tlio I'roviuccs of Upper and Lower Cauadti, prior to tlu; Union o!'1841, or to deal in nny way with eithiu' tho del)ts or credits with which either rrovince cami; into the Union at that time" and duly consideri'd the sani'% are oi' opinion that the said objection is nntbvinded, and thai, they have authority and are l)ound by the provisions of the said Act to enquire into the state oi' tln^ del)ts nnd credits of the Provinces of Upper Canada and Lower Canada, existin<>' at the time of the Union of 1841, and so to deal with them as may be, necessary for a just, lawful and complete division and ad- jiistmentof the debts and assets of the said Province. And. thereiipon, it is ordered that tlie counsel for the Province of Ontario and Qin>bec do proceed, in accordance with the foregoing* judi^ment, to submit such state- ments in support of their respective claims as they may deem expedient. (Signed,) C. D. DAY, Arbitrator. 8um:\iauy of reasons assigned ])y the Arbitrator appointed by the CrOA'crn- mi>nt of Quebec, lor his resignation and withdrawal from the Arbi tration. • IMy reason for withdrawing from the Arbitration is that I regard the decision adopted on the 28th TlTay last by the Honorable Messrs. Macpher- son and Gray, Arbitrators, as erroneoiis and unjust in its character and tendency. The decision as shown by the reasoning in my printed opinion, is not based on any known or recognized principle, and caimot lie sustaiiunl by any legal precedent or argument. It is an invention i'or the particular c;!,st', suiting well the interests of one of the Provinces but irreconciliable v^ith the rights of the other. In carrying out such a decision I could, of course, take no part. Put until the decision was officially pronounced it had not the irrevoc- able binding force of a judgment. The opinion was known, but it did not become the property of the parties until its formal promulgation. This ii. was the duty of the Arbitrators in the discharge of a great pul)lic trust to withold, for so long as it was not given, they might in their endi^avor to arrive at a just conclusion upon the whole case, control the decision and admit other rules and modes which would aid in that endeavour. In the form which the investigation was likely to assume upsm a known difference of ophiion, lil)erty. for taking a wide range \vas indispensably necessary for arriving at a harmonious result, and when this objec'l of para- mount importance was sacriiiced by narrowing down the examination and conlinincr it to the inllexiblo rule of this erroneous .Tudu-ment, I l)ecanie satisfied that no ilnal result could be arrived at which would satisl'y the. honest claims of QueV>ec or the general sense of justice in the .l)(nninion, and that it was my oT)vious duty to withdraw from the Arbitration and tender a resignation of my app jiiitmcnt. C. D. DAY. Montreal, 9th July, 1870. OPINIONS OF THE AUBITliATOllS APPOINTED JJY THE llOVmCE OF ONTARIO AND BY THE DOMINION GOVERNMENT. OPINION OF TlIK AUJHTUATOli AlMM)I.\Ti:i) 1!V THE PROVINOE OF OTSTTA-RTO. \ . Tlui Hi'iul Srelioii ol" llic "Ih'ilish North Aiunic-n. Ad, lS(i7," ivlcrs tho seetimi (juoted, were adopted for tho i)urpose ol" slatiiii^, in short Torni, that the, limits and l»oiindaries of the rrovinccs which I'ormerly constitnted IJ]>per Canada and Lower Canada, Avero as- signed respectively to the n(nv Provinces ol' Ontario and Qr '>uc. IJy the Union of 1841, the Provinces of Uppcn- and Lowci v'anada were formed into and became one I'ruvince by the nann^ of tho Province of Can- ada, and so contiiuKnl until tliat Province was, together with tho Provinces of Nova Scotia and New Urnnswick, formed into th(» Dominion of Canada. T\w Dominion, so formed, ^vas divided into four I'rovinces, two of which \V(>re named respectively, Ontario and Quebec ; and that part of the Pro- vince of Canada whicliy(;/v»e/Vy/ constituted tho Province of Ui)per Canada, was then constituted the Province of Ontario ; and the part which /orwe/7// constituted the Province of Lower Canada, was constituted tho I'rovince of Quebec. It is contended, tlierefore, that the 14-2nd Section slxould bo read as if Ihe words Ontario and (Juel)ec, were respectively substituted for "Upper Caiuula"' and "]-iOWor Canada," because (1.) By tho Union Act of 1810, those two provinces were consolidated into one; and whil(^ that Act was in force, they conthmed to 1)0 one Pro- vince, i.e. the Province of Canada. — Preamble and Sec. 3, Sec. 5, Sec. (3. (2.) The Dominion is formed oxii of fhrre ProA-incos, Canada, Nova Scotia and New I5runswiek ; and the Dominion is divided into four Pro- vinces; so that Upper and Lower Canada were absorbed into the Province of Canada, and ceasinl 4o have a separate existence. The Province of Canada is al)sorbod into the Donrinion, and two now Provinces, Ontario and (Quebec, are created l)y a division of certain dolined parts of the Dominion, which parts are referred to as having- respectively ^' for mcrli/ constituted'^ tho Provinces of Upjx'r and Jjowor Canada. 10 74 (•1 ) Uiulcv the lOlHh Socliou ol llu' \\r\i\A\ North Anu'vicii Acl,iill lands, miuoH, mimTiilstuMl UN.Vi.lti.-s l)rlonuini.' t,. ili.' lluvc unihul I'lovim-cs at thr union, and all sums tlirn (hu« an»l iKiyuhh' in ivspcctol .sucli lam s, \'c„ avv dcclarc.l to iM'lon- s.'VovmHv t«> Hu^ l<>ur I'vovinc^.H, into ^yhu•h th.- Do- minion is dividc'd. If lui.U-r this scdiou any siuns arc du.' u lU'li as cmlits iv(iuir.' division and adjUHtnuoit, they .vill not come willun tin- lant,nui(. of the 14±id Section, u i.s. '• Onlari*. Mid " (iuebcc urc ivad ill phico oT " Uppcv C'anada " an 1 '. .«)\\ r Canada." (4) Unh'ssthis ooustrurtion he adoi)l;«d, no provision lias Ix'cn inach" for tho division and adjusluiont of any dchts, credits, Hal)ilities, properties aiul assets whicli may have accrued sin.e 1S41, and Avliich arc un(h>r the ]hilish North America Act, vested in cither of tho i'roviuces ol Ontario or Quebec. (;■).) The 110th Section, hy the Avords "Each rroviiico," refers to oach of the four rrovinces into which the Domhiiou is divided. (()) Should any local leuislatiou he necessary to iaeilitate tht^ complete e.KCcution of any svward under the 14-2nd Section, it mustJ.e enacted hy thci respective Leuislatiu'es of Ontario and Qiu'hec, Avhieh Tro- vhices and not the former Trovinces of Tpper Canada and l.ower Canada, will take +he beuolits and be charged with the lial)ilities yiveii or imposed l)y such award. Such then, it is submitted, is the true reading of the 142ud Section; and if the true readinec, upon one of t'.ie following bases— B, N. A, Act, 18G7, Sa 110, 111, >Sa'. 11-2 o • 76 (^ ^' /i 'i A i \>^ 1. Tn tho ratio of the debt coiitriictcd for tho lociil purposes of ouch Vroviuce to thooxce.shj, 2. Ill the ratio o.'" ,ho rospoctivc popiihitions of thi; t\vo rrovincos. 3. Ill tho ratio of tho valn(\s of the assets of (Jne})ec and Oiilario, (•!i])ilalizcd oil tho averayo of interest tliey produced for the hist lour years and a liiilf. l']aeh of these proposals was resist (hI on the part of the provinct '>f <2ael)ec, a, d ufti'r diseussini>- each, tho follo^^iiit^ [)r<)])osition was advanced l>y Quebec : — " The plainest, easit>st, and it may be said, the only just and " ]»ractical)l(( way of settlini? the ()vern lh(! i)artition " of i>artuership estates — rules whi<'h are th(^ same in the old Ivoman and " the modern j!]ni>'lish and French law." — Quebec case, imge '). This proposition does not in terms assert that tho relation of partner- ship ever did exist between the I'rovinces of Ui)per and Lowi'r Canada, either wider the luiioii of 1841, or at any other time. It certainly did not exist bcdbro that union, and it as certainly was not created by tho " Act to re-tmito tho I'rovinces of Upper and Lower Canada, and Ibr tho Govern- nu^nt of Canada." And yet, haviiii? launched it, its authors proceed as if tho relation was conceded or miyht be assumed, in their assertion that it, the proi)osition, "has the advantage over all of other modes; that being the oiK^ \vhieh governs th(» relations of man vvilh man in similar posilions, it cannot give rise to gro iidsof complaint, nor to suspicions of favour, unfairness or injustice." The sentence is a little obscure, but its meaning iil)pareiitly is, that if the former conm^ction between Upper and Lower Canada is dealt with as having been on the fooling of an ordinary partner- ship, it would bo gov(>rned by the same rule whit-h. governs the relations ol' man with man in simiL-r jxtsilious. lUit withoirt th<> admission or assump- tion that the two I'rt vinces were in a position similar to that of two men who had become partners, upon terms agreed on by them, there is no Ibundation in existing- facts for thisproijosilion. It stands thus : — It is asserted for Quebec that in cases of ordinar partniirship there are well known rules which govern th(! partition of ])artnersliip estates. This is of courst' a(liaitt(>d. 1^'or Quebec it is urged that those rules should be applied, and sliouUl guide the arbitrators in the division and adjustment to be made ])y ihem. For Ontario, it is asked why ? And I he answer is, because of the ad- vantage of having as a guide for decision, '" the rules whieli govern the relations of man with man in "similar positions." J'or Ontario it is im- mediately said, our position is not similar to that of man with man in an ordinary pavtiier.ship, to which relation tho rules invoke*! apply ; for in our case no partnership existed, nor was any agreement ever made that there should be, one You are se(>kiiig to try the questions submitted to tho arbitrators — l)y iki>plying legal rules, which were framed to govern a state 76 of I'liets, \vlii(;h, in (uir cnsiv novcr luis i-xistod. Tt> wliicli i».r (iiU'boc il, is only rcplii'd, that it would ht? a i^-reat advantai,^' lo l>i' yuidcd by tlicsc vmWh. ir in such a state ol' (hinus llu' arbiiriilors :in' nskcd " to tivat Ihc oaso "as Olio of ordinary parlncrsliip," it is askinu,- thciii (o iissunic and ('XtTcisc a y-rcatiT authority than is conimillt'd to Ihrni, lor their autliorily is to doal with thing's as tht'y exist, l)y sU(di rules as arc appliniMe tolliem. H it is l)ut upon the I'ootin'jf of analogy between Ww ease submitted under the Statute, and that of an ordinary co-partnership, llm answer is that there is no analo'4'y between the union of the two Provinces of l:ppcr and Lower ('ana(hi in onU-r t(j i)r()vide one CJovernnient lor both, and an ordinary partnership, Ihe basis ot whi<'h is an at-rceuieiit to :share llie prolitH to arise from some business or luidertakini;'. No doul)t (xn^at advanlaa-es were expected to arise from llial union, but not /'uineiits on which this projxisilion is souiilii to he maintained, seem rather to resolve themselves into objections to the propositions ad- vanced on th(^ part of Ontario, coupled with tlie asscrliou that it is the ])lainest, easiest, and indeed the only Just and i»ra«'licable mode of setllinu' the question. Doubts may arise whelher it is just to npi>ly a rule, however plain and easy, when in order to such application it is Ibiind ne- cessary to assume a foiiiidation which is ima'j.inary, and to iii'uore the scope andelVectof an Act of rarliameiit by whi"h alone this partnership could have })oeu created, if niieh a measure were dcsiuiied. But Rupposino,' the ])roi'>osition as to lIu' rule for decision is conceded, it becomes necessary in order to suslaiii tlie conclusions desired by the Counsel for Qiieliec to make a furtlier assumption of fact — namely, that il was tlKMiitention on which the parlneiship w.is fornied dial t'.i<'!! I'roviiice (or partner) should brinij" into lln> c(nnmon slock an v([nii\ ainoiuii of Capi- tal, and that the oiiiMvhich was delicicnl in this res{)ect should be chanicd with the amount of the deliciency, Avith interest thereon, as a, dei)l due to the lirm, and then at the elos(> of tlu^ co-i)ariiicrship, on tlie division of the assets, that debt should be deducted from the share and interest m tlu^ ass.^ts of the partner so indebted ; Imt it must be remembered that in the absences of a^'reenient or proof of int<'ntion to the contrary, the laws of part- nership provide that co-partners shall participate e(|ually, at the dissolution of their partnership, in the results of the same, whether these be iissets or liabilities, without reu,'ard to any iii<'((uality, no matter how ^-reat, in tin; amount originally contributed by each to the Capital Stock. The Iini)erial Act of ]SlO, which niiitcd rp])er and Lowi-r Canada, adbrds the best evicbnice of the terms and conditions of tlu^ riiion. .'! and f Vict., cap. ')'). It cannot be contended that this Act was ])assed to create a union for a limited ])eriod or for lemiiorary ])uri)oses. The dissolution of the Union was not contemplated, far less ])rovitled for. Its leadinu" provi- sions wore meant to bo permanent, (thouuh li;ibie lo be chani'-ed), as to m 77 ■hoc it is sc nilt's, till' CilSl' «>x«'vcis»' K to (ll'ill ir il is idcr tilt' llicrt' is I Liiwcr ordiuurv i)r(iiitH t(» lion, l)ul paiiiicr- ii!ii;iiii('(l, tiolis :i(l- ii is the r si; tiling' a rule, )UU(1 lU'- IllC SCDpt' i|) ('((ulil ■oiK'i'dcd, (I l.v Iht' y. that il I'ritviiK't' ol' Ciipi- ' cliaiiit'd 1)1 due to idll ol' tlir st m the id in the s of part- is.solution iisscts or iit, in th«3 ■ Canada, . o and l o t'voatt' a ^olulion of inu' provi- ded), as to m^ i^K? financial mailcrH especially, by tniusli'rriii'j: all Uk^ revenues ol'Upper and Lower Canada into a consolidated revnnt' I'tiinl for the l'rovinci> ol'C'anada; l)y cliar'^inn- the annual iiili'rest ol'lhc debts ol both olihese l'roviu(M's upon tins consolidated Fund ; and by i)rovidini;' that tln^ oreation orthiseons()li(hit- ed fund shoiUd not ali'eel tile payment th'-reout of any sums thoretolbni char!refrpper and Lower Canada, then due or to becomi^ due, and the redemplion (»1 any such debentures. If any remain mipaid, it can arise only from the onussion of the holders to present theui. I'dliiical considerations alone brou^lit about this union. It certainly was not one of lliem to create a. co-parlnershii) in an adventur<' orpecuniarv prolit and loss, nor yet was it intended to cIol-' the new political l)ody with reservations founded ujion the financial ])osition of its component parts. It did not recouuize any dili'ereiu'e betw«>en tlieni, out of which any I'uturo claim could be raised by one au'ainst tlie other. The Ih'itish North America Act is an advance ni)on the former Union, not a retroiyressivo proceeding?. It lU'ither 'evives the old Trovinces of ri)p<'r <»r Lower Caiuida, politically o)' linancially, nor professes, ncn- was intended to clothe Ontario or Quebec with anv riu'hts, interests, claims or liabilities, which respectively belonged to the two former Trovinees as such. As a mode of descril)inii- the boimd- aries of ( ach of the new Trovinces, it refers to those of the old, but the edVct is the same as if the various lines, courses and other descriptive limits, which had been pre\ iously assii>-ned to Tpper and Lower Canada rt'spec- tivelv, had becii repealed ;is Ibrminu' the respective boundaries of Ontario and Quel)i'c. They ar«' simply territoi-ial descriptions. The claims now advanced (. ■'<■].) With the knowh'du'e of both, the Act was passed in a form which, so lonii' as it renuuned unchanged, not (Mdy rendered it impo.ssiblo to advance such a claim auainst any one, but rendered it imi)ossiblo to treat it as havinu' an existence; and die Provincial I'arliameut of Canada must have also known the financial ])osition of the two Provinces at the time of their I nion, yet they make no reference to it when authorizing the iiayment of their several de)>entures. iMirther, accordinu- to the ari;nment advanced on behalf of the Province of Quebec, I'pper Canada came into that Union in actual debt to the extent of nearly !«;(i,<)(H),<)0(). while (^lebec had a balance of nearly $190,000 at her ( redil ; \nu\ il is jminted out for ol)ser\ation that the former Province, 78 which, at the formation of the Union, had a population onlv aT)Out onp-h;ilt ot that of Quebec, left it with a much larger number of inhal)itant,s than Quebec then had, as well as with an annual sul)sidy from the Domini- -n exceeding that given to Quebec by the sum of $2:]0,(J2(J. It should have been addea that the subsidy was governed ])y the populatio]! (which the Imi^er- lal Parliament adopted as the proper method of seltliuo- the ratio ) the increase of which, though undeniably aided by the Union, is even more attributable to the advantages of climate and soil which Ui>per Canada possesses. It may have escaped the obs(n-vation of those who ad\-anced that argument, that the increase of an industrious and thriving population increases commerce and public revenue, and it is at l(>ast nrobahle that this consideration had been present to the minds of the stat<>siien luider whose auspices the Union of 1841 was brought about, and that they, neither over- looking not disregardmg any inequality which might have existed at that period in the situation of the tw^o rros'inces, anticipated the then not verv distant time, when the natural advantages of Upper CVuiada, utilized bv the_ energy of its inhabitants, whose number was being steadily increased by immigrjdion, would afford an ample compensation for any present deli- ciency. In fact, some of the o])servations of the advocat(>s for Qu<>bec have conhrmed this foresight, rather' than sustained the insimiation of injustice wnicn their language conveys. These observations, which, though lengthv, are far from beino- exhaus- tive, are ottered as leading to the following con'clusions : (1). That the proposition of the Counsel for Quebec involves the as- sumption that the British North America Act has the elll-et of conferrino- upon the^ Provinces of Ontario and Quel)e(> the respective claims, and su)?- jectiiig them to the respective liabilili(..s ol ihe fonu, r Provincs of Upper and Lower Canada, an assumption which is manil-',st!y Jallacious, since ii IS founded upon the erroneous idea that the crcMtion of a new Province' out of the territory which at some former period liad b(>en a Province 1,ut had long ceased to be so, operat(>s as the resuscitation of the old Province' together with all its rights and clanns-ali hough t]i,> pojilienl constituiioii former"''^^ rovinco differs in many very material re.sp(>cls from that of th(^ (2). That the claim of the Province of Quebec on the Province of On- tario never could have arisen or exisied while th<' union of I'ljper and Lower Canada continued ; that, strictly speakin- that union I ai never been dissolved ; for the Province of Canada, whi.h .onlMined Ui>per an.l Lower Canada, ^v^s constituted integrally a ],art of ihe iJoniinion and ilw subsequent division of the Dominion cannot legally be held to be a re- construction of the two old Provinces, ^^ithout soine clearly expre e n- tention of the Legislature to that effect, and there is no such expression (3) That besides setting U]. this claim, untenal,].> on lh(> -rounds above stated, the Counsel demand Ihe decision of it upon cvrlam rules o 1 w which govern in a litigation b.-tween pri^ ate inloet the niosi fittinu' mod(> of ai)iiortioniny (lie surplus debt betwoon Ontario and (^fuobee, it seems desiml)le lo iind"s()iu(. basis for resting- on which would combine some of, if not all, tho follo\vin<'- conuitions : — '^ facts, 1. That it either exists in point of lad, or is at least the result of existing 2. That it is capable of being- ascertained with reasonable certainty. 3. That from its nature it is api^licable to the solution of tho question i diirerence. ni 4. That it cannot easily l)e constructed to suit a parlic-ular puri)o, iirst tliree, and possibly Ihe'fourlh also, thou-h this con- dition rather apphes to matter of detail than to .such as l)elon"- to "-onorMl principles. ^ "^ On the oth(n- hand, the answer i)ut in on behalf of Quebec to the cas<> of Ontario, together with 'the case itselt; shows a wide dilference of opinion as to what ought to be considered debts incurred lor local jmrposes • and that answer suggests that under that dosciiption would fall th.> o\neii(iiture made during tho union for tho local advunta<>'e of the rosi)ectivo I'rovinces' and\vhich has left no assets to rej.resent .such outlay, and this contenlioli' would bring uj) tho question already adverted to, w"helher the U-^nd .see tion of the "Ijnti.sh North America Act," contemplates an investi-.jillon into expenditure made betwoon 1S41 andlSilT. Certainly durin- that period any more than now, there were no j'.oyinces of Upper and Lower Cairul . ' the enquiry is betwoon Ontario and (, ' ' ' Mlt MO.'. Moreov-er, ontho part ofQuelx'c, it is contended, while ojipasino this mode, thatii it be adoi)tod, it would be noco.s.sary to o<) back U> the nnum of the two Canadas, and take into account their re,s[)ectiye d,.l,j,s and credits -d that time; examine in detail all tho ox])(>iiditure iiinirrod since- not,- (.spV cially the rrovmco for which, or in Vvhose hilerest it \vas incurred -ind determine thereby the share of each. ' The object of this contention is to make a chai-n-o of some C 000 000 of dollars aganist Ontario. This topi<- has aln-ady lioeii partially refen-ed to but it is necessary to subject it to further examination. .( '1 1^ I .', V', I ■f 81 It is submitted on the part of Ontario, that the Imperial Statute of 1 840 deals with the two Provinces which it re-unites, upon an assumption of their equality. The time is long passed for considerhig whether that assumption would have been made but for the j^eculiar circumstances of the time ; but eoneediug that the statute was passed under the pressure of what was then lelt to be a political necessity, — conceding?, also, (for the purj)Oses of this discussion, — that the assumption was ill-founded in lact— it is none the less obviously the fundamental prhiciple of the Act., that though the Legisla- ture abstained from entering into a particular recital of those matters which gave rise to the necessity, " that provision should l)e made for the good gov- ernment of the Provinces of Upper and Lower Canada," they declared that the provisions should be such as might "secure the rights and liber- ties, and promote the interests of all classes of Her Majesty's subjects within th(^ same," and that the formation of the two Provinces into one was the provision they considered expedient, The evidence that the equality of the two Provinces was assumed is both negative and positive. Negativi^ in this — that the Act does not contain one word which is in- consistent with it. Positive in this : — (I.) The equality of representation. 8ec. 12. (2.) From the forming of all duties and revenues over which the respec- tive Legislatures of Ui>per and Lower Canada had a power of appropria- tion, into one consolidated revenue fund, to be appropriated for the public service of the Province of Canada. Sec. 5. (3.) From the charge of one general sum of ,£45,000 on this consoli- datiul re^-eiuK^ to Ix* specially appropriated according to a schedule, from which it is plain that inequality in amount as between Upper and Lower Canada was disregarded. Equality in sufficiently providing for the admi- nistration ot'justice in each, according to their respective systems of juris- prudence and the exigencies of each, was maintained Sec. 52, (4.) I'rom the recognition and maintenance of existing charges on the duties collected, or to be collected, for the use of Upper or Low^n* Canada, without any rei'er'mce to the equality in. amount of those charges. Sec. 55 ; and, (5.) From the change of the annual interest of the public de])t of both Pro\'inces on the consolidated revenue, without reference to the amount of the debt due by each. It is true, as was ])ointi!d out in the arguments of the learned advocates for Quel>ec that this Act only provides in terms for the payment of the in- terest — not the principal of the debt of the two Provinces ; but the distinc- tion is only one of words — and if it had any substance, the Provincial Sta- tute 4 and' 5 Vict., ch. So meets it, alter a recital that the I^egislature had H 82 .t whkh tW ,1 :! ;""" '"' ™"^"■"'- nv^Y lial.ililv. TJi,. onlv lu nv Xl .r.Ho, ,h ,', that so lo„s as thc'uninu olM^^two r wi, ,.s" "jsl'T'lh'.'' !"• '"""'"""f Domi,ru. ^ '"' "'"• °' ^"""'l'' '«'«" »>'s«»'-'J 'vbsolntoly ),y the rights or each as asai ,st c ™h olh ° nl iL ',1 1 , ''' '"",''"■ '■'""■'■ ""' (kn-olvc on the new Pro -hlcel .1 , * i ''''''""''''''■''''' *'"'' "'I'"- twecn the rn>a,rc 1 ™sit?o,rotirse;lr ';:"■" "',"?,""''*>' "^'''''•'1 ^"-'■ blended info one ln°rmwtw;™ 1 ^- !',"■''''' "' ""' """' ""■»' »•'>•<> aS-ai„si the other, \^k Tj?Zt^: nnd" r'^" ? ii'i l' v'T,'' /'^ °"" Act, 1867," can enteriain and decide !,p™ I'"l'■l'^">■lll A.nenca righ/^o t,s:'s;;! rl^::j;;!;'e'S™;r""'f ^'^"r;-- <''•"'- «'-- » Canada at the date oCtb ir , 2„ o |" T "',"," ," ,' ''',"''■ '""I l'"»">- at that time, owed a lar..-- ™S "^^f"^ to eslaWr-li ll.al LI ppci- Canada, credit on this bit^, n^t 'o t rio ont.^wf *" .'"''Y ''''* ''-''', "" *'"'" "i' observations on this head w ich ore ! " "''"1""" ,'» "'" l""'"«s asstimption ofpartnerSd >;,?.! ™,/ I "l"?,™'''r"'''' '""' *!>»*' »" "le this c/nertion wit out a^ i" ' " r, '^•\^^^';^""''r'' eannot ,.nt..rlain Statutes, and to conva or Z v «^,. "'' '" '"''",''"' ""'' l''-"vin..ial the injustice or the delcfsTil'l^l.t^'oih ol'tli;,;;;.''"'"- """""''' "->' '"' would render it objceti, n b even i i Jh 1 , °'/"'"'"™'""t !>.• adoj, , (as^the advocates id ,uebeJ:.;r'ir ;:;^;7t;;t'^£1r^^^^^ the ^^r :;:;:fi^ri;i;4liS z^ ::;:;;;;t;s::r" "-•■»' ^^"^«" ^i 8S The Capitalizatton of the Assets of Ontario and Quohoc rospoc- tively, (loos not soem to present a, principle on which the "division and ad- justment" of the important matters sulnnitt(^(l to the Arbitrators coiild }w satisfactorily based. It is not necessary, therefore, to discuss it at any h'uj^th, and it may be as well to proceed to consider the third mode sug- gested by Ontario, that oi populaliu?i. The Population resident within the limits which are now assigned to the Provinces of Ontario and Quebec, which limits are resi)ectively identical with those of the former Provinces of Upper and Lower Canada, was ascertained by the census of 18G1 ; and that census hiis been recognized and acted upon by the British North America Act. sec. 118. No suspicion can be attached to that census as having been inlluenced by the prospect of Confederation, or ot the questions now to be disposed of ; and iv is beyond the roach of change or moditication. No greater certainty as to the actual population at that date is attainable, and though an attempt might be made to arrive at ttie pojjulation in 18GT, or at the present time, by approximation, the ret ult would be more or loss uncertain, and the next succeeding census might shew it to be far from the truth. It would, therefore, be safer to adopt the census of 1861. Adopthig that census, the number of the population in the Provinces of Ontario and Quebec (referring to their limits as above stated), is a lixed hict. Any ratio derived from it rests, therefore, on a well established foimdation. It is worthy of notice that the British North America Act adopls popu- lation according to the census of 18G1, as the basis of a re-adjustment of the representation in the House of Commons of Canada. The karned advo- cates for Quebec have not opposed the .'oloption of po])ulation, as tlie ground work of a ratio, on any intrinsic grounds. Their oi)ji>elion is extrinsic, and reduced to its simplest terms, is that the adoption of this ratio would not give to Quel)ec the advanliiges they are instructed to contend for ; or to change the form of expression, would give to Ojitario rights which they arc instructed to endeavor to withhold from her. No attempt has been made to shew on general '^rowKh that a ratio based on population is inapplicable or uiijust. The argument is ])ased ex- clusively on a reference to the liuanciiii position of llpp(>v and Ijower Canada prior to, and at the union of 1841. If that argument is ill-founded the prox)Osition as to i^opidation is wholly unanswered. Now, in propounding this arguraeiit, tlie advocates for Quebec irre- hn'antly recur to ti,ei': partnershii) theory, which has already been examined and remarked up* m. U is not ])roi)osed here to travel again over that ground, it is enouu''!. -v) repeat in su])stan(;e : (1) That Ontario denies that the Union of 1841 was a ixirtnershi]) or intended to bo one, or to be regulat- ed by lluvpi'inc iples api>licable to that legnl r;'l!itioii ; and challenges the productio)! oi:i, single, claiise in the Act of 1840 which will support that 84 un'o7nf /wn^^^'* ^"^''^^ ""''''■' *¥* *^"^^^ ^f l'^40 was IVamo.l upon the IwTrnX-^ l'*' of a supreme authorityAu tho ibotin.. and torms oi p - •l^Sth^.r^^ '•^'^'^ that the Act ils.lf eont tins imuulant internal evidence ol that intent. (J5) That llu^ IJritish North /nlH Ml-T 'n^'^T^^^ Was in ibrce • a id that il Lovver Canada couJd have advanced no such chum a-ninst Ihn -i- ( anada hoJore the British North America Act was passed tlu A ies o Mich claim to the Province of Quebec a-ahist Ontario. ^ to..suIm>lT.?frwf ^"'^'''' ^JV^^^^t^'^'^t"^^ «^^^i^- argument, almost seem • the T owo^Vi^ ' '""r-\ ^^ ^^'^''' '"^"^ ^^^^^^*'^ ^''^»^^^^^^' it was the riaht Ol the l.ow "r rrovmce, and if so the duty of the Leo-islature to h-ive pvopnations out of the Public Fuiic^ to her inln^^oilion t Ver^lhen 'erseiy. as it were, to rach other, and base a peeuniarv (hanand u.mn iru> ^ddierence in population between the tj .eetion^ .ll tile rnl^d ^V hilc the^Lnion Act was in force such a claim was imnossib](> -uul it IS submitted that not a clause, not a word of the British N Xa ric I '•< unt,Miances such a pretension now. It i,s not ovei^ool cxl tin \vhei • s "; i^ii^sr^/the V'^ ''^ ^"^-^"^'^ '^ -tin,uishin/ii!;:i.;^!:^;;,.^ uit in one section oi the ProA-mce, a sura was o-rauted bv wav of .wniiv.l ont or indemnity to the other section where thS tenure d d ft exi ^ Bui H.rs]ui.-an attempt to ^et behind the Imp.^hdlb^X of IS^^ ^'"''■ <|uesl,..i,s ^vhlc.Il tliatStatule wis intended t > e h/s " d Ints ;,d / ' -'"I-'' population nuc^atory as a basis of settluueiit ' "-' '" and l^^:^oii:^^-l^;^::^^ -f^« p-i-^ition, ()i.(..vio .1.-. ., ' "'■ « ''* t-t ( A ciuino- tile jn-opowitioiis rmu e on In'h'ilf of "iilaiio, I iu' same object presents itsef Thi^ i^ iU i "^^^ '"'iau oi X' i 85 dobt ; to insist that (SO lono' as that wniou coutiiuiod, the d('])t would con- tinue ; and that because, tlie British North America Act created a confedera- tion of three Provinces into a Dominion, which J)ominion was divided into four Provinces, two of which had severally th(^ limits l)eh)ng'in«T to Upper and Lower Canada Ix'forc^ tlie Union ; l)ecaus(^ those two ProA'inces, though under dilferent nam(>s, and with dilferent lei>is]ative powers, and, with re- p-ard to one, with a diirerentconstituticm, had the limits of the Provinces wliich were united in iH-il, s(>verally assigned to them; therefore the debt wliich Upper Canada owes has become a del)t of Ontario, and in dividing and adjustinu' tlie de))ts, credits, liabilities and assets of the Province of Cnnmlu, \\u^ Trovinct^ oi' Quebec may lake tlie same beneiit Irom that indebt- edness of Ontario as if it had l)een a d(d)t originally due to Quebec. I'or Ontario, the conclusion is in every form entirely denied. < )n the whol(\ it is with the utmost conlidence submitted that the ratio deduced from pojmlation, as ascerlained by the census of 1861, is, of all the modes suggested, the most Jiial ; for when lial)ilities have to be laid upon a whole peoi)le, who possess so equally th(^ means of i)aying as the people of Ontario and (^Jui^lxM' do, what can be more equital)le than to distribute them per capi/u ? It would carry with it all the conditions set forth above, as d(^sirable to bi» kept in vie^v in deciding U])on a basis for the division of the surplus debt. It is submitted also that it commends itself as the most simple mode — the most certain — ^the least open to suspicion, or possibility of partial or luifair dinding, and the most frec^ from reasonable objection ; that if adoi^ted as the })asis, it must be adopted />?/r el simple, for to connect it with consid(>rations which have no Ix'aring upon it, or which have not arisen from it, is in fact to merge it, instead of to act upon it ; to set it up nomhially, but utterly to destroy its practical eliect. My opinion, iherefore, is that th(^ Arbitrators must proceed with the division, on the basis of the ])oi>uI;itio]i of (.)ntiirio and Quebec, as shewn by the census of ISOI. ]» L. MACPHEESON, Arbitralor. MONTRKVTi, Mav, ISYO >v*. ^ I (i [1 ! OPINION OF TIIK AKBITJUTOR APl'OINTKl) 15V Till': D O MINIOTS G o V KliNM KISTT. It is claimctl on hchiiirol' (^lu-lx'o, and resisted on hohnW of Ontario, that tlie Arbitrators should cnqiiire into the; state ol'the debts and credits ol'the. I'rovinces of Upi^M* und J.ovvor Canada— prior to the Uuiou of 1841 — treat that Union as a partni^rship and eharg'c* each rrovince with the amount of debt with which it entered the Union, dividini^ the balance only. And it is further demanded by the Counsel of both I'rovincos that the Ar- bitrators should determine as a i)reliminary to further proceedings, not only that point, but also the mode by Aviiich the division and adjustment should be maele. The powers of the Arbitrators are to l)o found in the 142nd section of the British North America Act, 1807. They are limited to the division and adjustment of the del)ts, lialiiliiies, credits, properties and assets of " Upper Canada and Lower Canada" by th(> Imperial Act of Union of 1840 united, and called "CUinada;" by the ]}ritish North America Act, 1807, as-aiu sepa- rated, and called " Ontario and Quebec." The lOnth, 112th, 118th, IS^th, 1801 ii, 188th, 140th, 142nd sections of the British North America Act, particularly, and the d(^bts and these assets ar« by the 142iid section, to be settled by the Arbitrators, 8H But iho injiiii (ni(.,s(if)ii („ J».. vuMi j- , . thm.. doht. a„,la.sl(s I . A M I ; ! ''^^ ^ upon ro8toml-_Uu.„ that (h- . , v . ■ ^f.""!'''"'^ ','' 'J^"'Ii-olu',io, '/^ i' ]«t. Whoth.n.theUni(mon,S4I,,„,l,r. ,•...< . o„a If. '"'''•'^' ^''^ '^ Purtu,.r.ship at uJJ '^ 1st. The Uuiou or 1841 ^n-.i..,.. c. -r" T^'^^'-^^>'' -<^ ">-'<"'• .'-1^^^^^^ vr'^"'"'''"- n-o j;^^^ r Mid to have as.s(>ntrd to it— li.>v ,. i ', '\"'^ • ' "'^ laltcr could h-inJIu i wa. tlu-n in Qu.,,.e nLi h.r As ! all t^^^ 'V^ ^'^^^1" "^ "^ ^-^i<' -^Ln; ^'loments, th. pn-liniinary tvrnt n .on 'v ^^'■^'■^^''^'''^ ^ Jucks al } Visions, which an- iudi.^ativ if" ,, '^'^'''••"•^' <^»'' '•-''n-ations an p o c^mmencomont, it was ind -lin c " , -"■^>' '."rations. A)„up, a Its own M.ll or its own prc.u'rol.VifV I ?';''''' '^"i^""'!'^"^ not upon «am. paramount authority ^^■hil^ ■ !, | ?' 'l;;/-nnuu.,ion, hul upo ' • Impona authoritv ina.h: the u.uon I , • "' J''"""" <""•■' ^^ "iu' JJ.iiish ancow.th th,. then policy ol t ,,'''''';"'' 1^^^''1''^'^<'N '"^ iu am d miposod them upon Nhc u 1' vi '"■"' " -'^'^"^^ '''^ "^vn (cvn'sa [ unite the Proyinces or Fd n r ,!, 1 I "'" ■^■/'"•' 'n its charter (" Act to nolon^ro-toexist-thedislinction (.r !■ . „, '^»'""- .separate id,.ntity was 41) and It IS diUicult to c-on^-.'i ^ \ .o^'^"-*-^ 7='« *1"»'' away with (s". merger than was carried oi h Ir I A ^?'"P'^'V; *,Horou,h Le^.i, , ■ J fore, m the face or this Act, toia w .; T^'^l^ ''*' inip„.sil,];, tlorV. iuture diyision or elll>ets w s to }\l i l'^^'"^"<'r.shi]) did exist or (h^f . mperial Act or 1840 aluui ^ V"^:;;,P'j-- 7^- ^^^"•''•""- '-«-'< 'h fore^omq. conclusion irresistal e In t ' •'^'^. f •''\'"^-. tliat it render . 'I'^'T? ^"^'^-"^ the other, ti^ dis ;^ r 'tr^ ^« I'--'-v.'.l tlu'oul . -the other IS Federal. That in TwovV '''•''*'"''"'**>" is Le..i.s|,,up destroys indiyiduality-the^h;";.:;:;.^;::^^^^-^ *'- -i-le grouniTon:: ^f^^^n^ZZ^!};;::^^ as a partnership- ... Prehminary conditions was mi ''^^inVlV^;; ^h ^I'll^^t^^^^^^^ li' / 80 to, buf thill Mil lui! f!())itrury . was a iinioii.a pnrniovi-hipiiiuluiilly ciiicvt'd iito with cvtn'y caro aii of the public debt oi" Upper Canada, and the objects lor \\'h'\i-\i /irinn'jxt it was contracted, viz,, //ic iin/irorfinnil of inlvninl com- i/i/inirafion^ dlike useful (indbpncjivial tn both Prorinrcs, it would 1)*^ just nnd reasonable that su(:li part of the said debt as had })een contracted ibr this object should be chiivnd- ilures for which that debt was incurred were of a nature so benelicial to itself that the debt should be charged on tho revenue of both, — wliich (h'claration was accepted and acted upon by the other Province. Can it then, after the union was entered into, based upon that declaration — after ithasl)een acted upon for six and twenty years, with that declaration stand- ing on record, unrepeahnl bet w^een the two — turn round and say, at the rovision for ascertaining or adjusting them in any way, no reference, to what cither Province brought in, or to what liabilities either might 1)0 su])ject, no indication that such a point was ever thereafter to bo raised or considered ; but on the contrary, by the 49th section we iind that the provisions which were then existinii: under the Imperial Act, 8rd Geo, 4th, c. 11!», intituled " An Act to regulate the trade of the Provinces of " Lower and Upper Canada,, and for other piirposes relating to the said "Provinces," for th(^ appointment of Arbitrators " to hear and determine eer- tain claims of the Proinure of Upper Canada vpon the Province of Loirer Cunnrla — and to hear any claim which mi^ v. r /^ 'c^l ^M^J^ >> ^ ^ Photographic Sciences Corooration 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 iii'iiwt.>rnn'''r'ii"n"'^^'^"T-T-~'— m 90 ,£■^Jl Province of Upper Canada lo a jiroporlion of ccrlain diHics Uiercin mcn/ioncd, and I'or prescribiufj the course oi" iiroceeding- to be porsued by " such Arbitrators," arc repealed, with all matters in the same Act contained, dependant \\])on the said provisions. AVe lind that the said Imperial Act iurther provides that all dvities and reveimes over which the respective Legislatures of Upper or Lower Canada at that time had power of appropria- tion, were thenceforth to form " one Consolidated lievenue Fund," and that thenceforth all sums theretofore charged upon the rates and dvities levied and collected for the use of either Upper or Lovv^er Canada were to ])e paid out of the said " Consolidated Revenue Fund," for such time as had Ixnm appointed by the se ,eral Acts of the Legislivture of the rrovince, l)y which such charges were severally authorised {iiiih sec.) These provisions in the Act itself would shew that the " slatun (/no " was not at that time, and was not thereafter, to be a matter of consider- ation. But if we look to the acts of the parties themselves, we iind that during the whole period of the Union, from 1841 to 18G7, no construction tending to that view was put upon the ImiKnial Act : no separate accounts, for i)urposes of apportionment, w^ero kept of how much each Province yielded to a particular source of Hevenue — of the Customs or l^xcise com- ing from each separately — of the funds out of which pre-existing claims on either Upper or Lower Canada were paid. New liabilities were sub- stituted for the old without distinction of Province, and a process of oblite- ration, with the Legislative sanction of all parties, may be said to havi> gone on from the time of the Union of 1841, wdth reference to the old debts of Upper and Low^er Canada previous to that Union. In the Act of 1859, introduced by Mr. Gait, 22 Vic, c. 14, respecting the " Puldic Moneys, Debts and Accounts," and which changed the i)re-existing state of the old debts, no distinction is made — new securities A*arying in amount, rate of interest, and time of payment are authorized. The debentures con- stituting the public debt of the Province of Canada, or of either of the then late Provinces of Upper or Lower Canada, were to be redeemed or pur- chased on account of the Province (of Canada), from time to time, as the interests of the public service required. Throughout that Act there is nothing to show that at any time thereafter a distinct account of, or a s(^pa- ration, or division, of the debts or assets of Upper or Lower Canada, either before the Union, or at the time of the Union, or during the Union, could be required or contemplated. A thorough merger was realized — as indivi- sible as a perfect fusion of two articles of the same character could possibly be made. It is true that frequently, as a debt or asset was created for local expenditure or benefit in one of the old Provinces, a corresponding debt or asset was created for local expenditure or benefit in one of the old Provin- ces, a corresponding debt or asset was created for the other ; but that was a matter of political expediency. In reality, at this day, thero is not a debt of any consequence of Upper or Lower Canada, as such, in exisieu' e. Had the idea of separate pecuniary interests ever been conlemplated, itmust be presumed it would have taken some definite shape, or in some way been acted ujion. Whenever the interests or wishes of the country demanded, the Imperial Act of 1840 w^as amended or altered l)y furthei Imperial /y 91 !^ lef^islation, or subsidiary local legislation, as rcquirod ; as in the instance of the restoration of the French languai^e — the disposition of the clergfy reserves — the alteration of the Constitution of the House by a two-thirds vote ; but in no case, either of Imperial lej^islation, or of legislation by the local Parliament, do we find that the pecuniary state of the two Provinces at the time of the Union in 1841, or the amounts they relatively brought into the Union, were considered as the basis on which legislation, or a divi- sion or ai)portionmcnt of the public revenue or debts or assets, was to be founded, — and the only tribunal then existing to determine the claims of Upi)er Canada upon Lower Canada w^as abolished with all matters depen- dent upon the Act which constituted it; thus destroying the very means by which a part of such apportionment or diA'ision could be arrived at, if ever it l:)ocame necessary. Hurely nothing could be stronger to shew that a fusion, and not a partnership, was to exist. Thus, if it were possible to try out the Union of two groat Provinces, springing out of and based upon political considerations, by the rules of a trading corporation, we cannot find in the articles of Union, or in the construction put upon those articles by the parties themselves, anything that would indicate a distinction or division of interests at any time, or aught but the most perfect community of goods, extending equally throughout the whole — as was wont to be said in the old Norman French, in the case of joint tenants, "/?er my el per tout." For these reasons, therefore, I uo not see how the Arbitrators can take, as a starting point, the "status qud^ of Upper and Lower Canada at th(^ time of the Union in 1841, as to their pecuniary jiosition, even if that could be agreed upon, (which is far from being the case) ; or as it is put in the Quebec factum, viz : "That each Province ought first to assume, from the " excess of debt, a sum equal to its own debt when it entered the Union " in 1841, and the balance ought to be equally divided." To do so would be ignoring the legislation of the Lnperial Parliament, and of the part'^s themselves by the legislation of their own Canadian Parliament. It must be presumed that the Im^ierial Parliament first, and secondly the Canadian Piirliament, which subsequently had in charge the interests of both Upper and Lower Canada, took into consideration all the points which would be fair l)etween the two Provinces, balanced the equivalents, and did what AVas b(^st for the common interests of both ; ar.d that both parties, by their con- tinued acquiescence in, and their silence as to this point, during the twenty-six years of their Union, assented to that action. For the Arbitra- tors, then, to enter into a discussion of the debts and assets prior to 1841, in order to determine how the Provinces stood with reference to each other (and that would clearly have to l)e done), would be supersedhig all this action. To take th(i debts and assets, even when a settlement had b(H>n a.irived at, as they relatively stood between the two Provinces, and proceed to adjudicate iipon the dill'erence only, treating that difference as an asset or a debit on one side or the oth(>r, would be doing what the Pro- vinces, in their United Legislature, h:id not, during the whole time of their Union, deemed proper to do for th<'mselves. To enter into a discus- siou of what wore tho relative merits of each party at that time— whai were the equivalents which formed tho consideration of tho Union (assum- iiiuf, for the sake of argument, that it had been hrought about l)y the voluntary action of the parties, and not by Imperial authority)— what in- ducement Quebec had to take Ontario, with its great del)t, as" is all(>o-(.d— would be calling- upon the Arbitrators to determijie whether the Union was judicious or not. Those points are not submitted to us. We must deal with ihe ques- tion as it stands— take ihe assets mentioned in the 4th Schedule, the debts arising out of them, and any other d(»})ts that may ho. lairly shown to corner within the purview of our powers, and divide and adjust them upon prin- ciples that would be liiir both to Ontario and Quebec. I Oo not hold that \\e are to be tied down to the strictest letter of the Luv, as if adjudicating upon matters Ijetween private individuals, who in courts miu-lit demand that rigid rule. The very fact of being named as arbitrators implies a latitude, and w^o are to apportion and adjust these matters so as to nuike a, lair division. As we cannot take the proposition of a partnership, submitted by Que- bec, \vc must examine the modes of divison and adjustnumt submitted by Ontario. The first proposition, the suggested capitalization of assets, is aban- doned by all parties. Indeed, to take as the true criterion of the value oi" assets, a valuation based upon the average returns of four and a half years, some of which returns were dependent not upon tho ability of tho munici- palities to pay, but the political inexpediency ol' enforcing "payment, seems too absurd tp require consideration. A division according to population certainlv seems the simplest, and is undoubtedly the most expeditious mode ; but i'rom the arguments ad- vanced up to this time, I do not see my wav clear— in the absence of any agreement between the Representatives of "Ontario and Quebec— to adopt it. It has been argued it would not be just or ihir— it miiy ]je added, per- haps it might be practically impossible. It w^ould ])e hard to apportion an asset purely local in its character, and available only as belouiiing to the locality. Again, the contribution towards the burden of a debt inust d(>- pend upon local legislation, and there is no controlling power to inak<' one Trovmce so shape its legislation as to raise contributions For the other The powers of the arbitrators wall close with their award, and that award must b(^ so made that it can stand ent. rely per se, and not l)e depcMident in any w^ay upon ulterior action by either of the parties to tho arbitration. It must give the asset, it must assign the burden— clear and uneqnivocal whatever it may be, tho asset must become the undoubted property and the debt the undoubted burden of one Trovince or the oth •;, as the case may be. The only remaining mode which has been suc-avsted, is (o look at llio origin of the debt and asset and decide individually upon (>ach accordin-- /! 1)8 to its morits. The timo or the didiciilty that may bo occupiotl or arise in this mode docs not touch tlie quostioi>,"nor do I think that in so decidini;- ^ wo are to he tied down to the strictest rules oi" law. I do not thi)ik we can i>-o behind the law whicli oriu'inated the debt or asset ; with the policy of its origin we have nothing to do. The legislature for the time being had the authority, and had Ix'lbre it the circnmstanct^s which induced th(^ enactment. No ex post facio opinion can iuA'alidate tliat legislation; wJkmh^ the law is positive as to how the debt or asset shall be taken or regardcul, we must 1)0 governiHl by it ; whtn-e it is not, we may, alter hearing the arguments, estimates the dt'bt or asset and balance between tin; parties. In the al)sence ol' any agreement betv^een the re])resentat-ives ol' Ontario or Que]>ec, my decision, as at present advised, is in livvor ol' this mode. J. It. aUAY. Montreal, Mav, 1870. Sm, Government House, Quebec, Gth Juno, IbTO. I have the honor to enclose for the information of His Excellency th(^ Oovcrnor G-eneral, a copy of an Order in Council of the Executive Council oF the Province of Qu« i oc, in relation to the Arbitrators selected for the division and adJTistment of the debts, credits, liabilities, ]>ro])erties and assels of lTpp(n' and Lower Canada. I haA'e the honor to be, Sir, Yoiu" obedient Servivnt, N. I^\ BELLEAU, liieutenant-Crovernor ol" lilt' I'l-oyince ol" (iuebec. Tiie Hon. JosKPil IIowE, ) Secretary of Stale, \ for the rrovinees. ) Copy of iIlEPOUTof aCommiiieeofthe Honoraine ihe EKoculive Council, approved l)y llis lilxcellency tlie LieuteuauMJovc; .'or in Council, on the Gih June, 1870. No. 130. On the disqualirtcation of the Honorable J. IT. Cra^^ ) ■ ' ide." the British North > io act as Arbitrator, uudc America Act of 18G7. S The Honorable the Troasiiror ot the Province reports, that it is the opinion of Napoleon Casault, Esq., Q.C. (which said legal opinion was ap- fl 04 -sots of TFppor Canaia n W.^ ' l^X^^ i^I 'l''^';. "^' /T'^^^r^^^^' ^'^^ ment of three av],itrnt<)vs one XoUV. K Ji /' ^'^'^'""•'"'l to the avfntra- f>y the Government ot Qi'e ec n o e r.^^jr''^'-^^''^^^ -t" Ontario, one iiiuHhatthearl>itratorehoU ),V ; Po^.^^ of Canada, n-sident either in Ontario o i 7o 1> h /]'". ''^ l^'^'^^^ '^'^^''1 »ot be a, •f. II. Gray has r<-,sided IVn more th n^\ ''^''t ^yher(^•,» tlie Jlonorahle sident in the Province o^Sn^^^^^^^^^ '^''^ l^ '^"^^^ '><>eome a re- -t as such arbitrator, ii^n^t w^ he dutv Tl^ i '^'^''^ ^'^^^^^^^^ to tho s.d Honorable John IIamilt<^ cSaj^tlJno^a^^uc^^^^^^^^^ ^^^i-^ ^<> to Hi^ Ex!^z:^^s.o G::^;ors:s;r'^ ^'^^ r^^^^^^^^^^^^ ^- *— ^^ted the views of this Gov™mt 'nur^^^^^^^^^^^^^ ^^'' ^'^^-^^^-ncy,y,iik arbitrator in the place of S"l!;idS>hn^l^n;iLlfa^"'''""^^ ^^■^^•'''^^''^• Certified, FELIX FoRTlfiR, Clerk Ex. V. Sir, CJ ovK RNAfENT ITousn, Que))(>e, ulh June, ISTO. Excen'"" V^::^:J^^:^y''!: ^— ilh, ,. the inlornu,iion of His Council of the Provil^^of Qu l] ;! ' • ,'Xion? u'^'"" "' I'" ^^^^''^^''-^ <>d by tl,e Arbitrators selected brt;; ;!-^ V ' v" '''"''*^ *'^ '"^ ^•'■"ts, to request His l^xcellency t^e S ^ o^^f < ''^ '-^^'V ^^=^'>-la, and upon the representations of the ivport '' "'^""■<''^''<' atlenfion ■ I have the honor to be 8ir, \"our olxMlient ScrvanI, N. K liELLEATF, Lieutciiant-tJovcnior of lion. Jos. Howe, ) *'i'' I>ovinc.> of Qu,. ),,.;._ Secretary of Slate, ( for the Provinces, Olhtwa, \ < :^> I ' i .^MiM 'mmm 1)6 i %l\ CoVY (»K A. IvEl'oiiT ol" ii CoiniiiiiU'O ol" llio nonorahU^ the Ext'ciilivo CVmncil, approved by His ExcMk'iicy llu' Lu'ul('Uuul-Cloveruor in Council, Oil the Gth June, 1«7U. No. lol. On the reciuiremenls of Ihe Lrilisli Norlh America) Act ol" l.SOT, respectin--' the Jntlgnient of the Ar-. bitnitors. S The ITononihle Iho Treasurer ol' the ]^-o\ince rci)orls, liial it is Ihc (»pinion oi' the Law Olhcers of the Crown, tliat whereas the one iiun(1red to His ]<]x- cellency the Governor-General, with the views of this Government, and requestiu:^ that no judo-ment of the said arbitrators, which is not so unani- mously concurred in, be received. The Committee concur in the Ibllowiii'i' Tiepor!, and submit the same for the Lieutenant-Governor's approval. Certilied, FELIX FOUTIF.U, Clerk, E. C. Glkmujooke, 14th June, "• "'O. Siu, I have the lionor of acknowled!^in,r>- your letter of ihe Gth inslant, re- ceived this day, accompanied by a copy of an Order in Council of ihe same date: " On thij requirements of the British North America Act, of IHGT," re- specting- the judgment of Arbitrators. I have the honor to be Sir, Yoiir obedient Servant, CHS. D.DAY. To R. J. JourtKTTK, Esq., ) Asst. Trov. Secy. \ m Ottawa, 20th June, 1870. SiK, I have the honor to acknowh>dge the rect'ipt, this day, of your hotter of the (ith June instant, iorwarding a copy of an Order in Council of the 06 Jilxcciiiivci (Council o[' []u\ I^om'iicc oj' (^uch-H', in rchiiion io llu^ uvvard lo l)(' ri'iulcrcd l)y llu' ArLitrniors c-hoscu ibr ihc division iuul tulj'uslincnl, dl' iho dt'bls, cn^dilw, liahililics, ])roporiii's, and assolis ol' l'})p('r and Lower Canada. I havo the honor (o ]n\ tSir, Your oln'dicni Srvvaiil, .K).^i':riiii()\YJ<:, tSi' vciary ol' Slaic I'ur llic I'roviiHi's. lluii. Sir N. I'\ lii;i;i,iCAi', Lie u(('nanl-(i over nor, (.>U', \H-r. ) Sii;, tSKCUKTAltV'.S OfMCK, (iiu-bof, lltliJiiIy, hs70. J have llie lii')ii)r io enclose, Ibr ilie inlbrnnvlion ol' His Excellency the (lovernor CJeiieral, a copy ol'an Order jnvsNed by llie ]<]xecutive Council ol' ihe Trovince oi' Quebec, bearino- date the 7th day ol'.Iuly inshint, respect- inu; the Arbitrators chosen Ibr the division and ndjustnient ol" the debts, (•redits, lia))ilities, pro])erties and assets, ol I'pper and J^ovver Canada, and to reqiu'st His Excellency to b(> pleased to qive his attention t(. the rei)rc- sontations contained in thi; said order. I luive the honor to be, 8ir, Your obedient Servant, N. K J5!<:LLi<:AlI, Eieuteiuuil-(,lo\ ernor. The lion. .loSKlMI IIoWK, ) Secretary of Slate '■ ibr tlio l*rovinccs, Othiwa. ) Coi'Y of a Report of a Committee ol'lho Honorable the I'^xecutive Council, approved by His Excellencv, the Lit'utenant-t^overnor in Conu-n' on the 7th July, 1870. On tho disqualification of the Honora])lo J. H. Crray, to act as Arbitrator under the British North America Act of 1807. The nonoral)le tho Treasurer of the Province, repoits that it is the opinion of Napoleon Casault, Jvsq., C^. C, (which said h jial opinion was approved and conlirmed by the Law Ollicers of the Crown) that, whereas, the 142nd Section of the British Nortli America A.ct, of 1807, enacts that i ( Council, 11 Conu'il, r 07 llitMlivision and iidiu; Jmonl; of ilii> /i,.i>(v , .. ij t i li- iou,L'XiS;™:tSov:3;L"i;.S'"™'«''^^^^^^ appro vi Certified, (Same .Sir, f£lix fortiek, Clk, E. C. Montreal, 0th July, 1870. 1 have Ihe. lionor of transmittiniv herewith mv re^io-nniinn ,.r i) .viiKiic.i Act, ot i«()7. 1 do so with leoTpf hut T nm a.^y,^.l: ^ i v ji broad and irreconcilaWo ditlerences of ^^J^^ wli^^^tt^^ ^^ oolieagues and my.solf on points of essential importance that I cmnof hmZ which'th ''^ ^''''^'^' n'^T?/" *^° ^'''^''' ^i'«' ^^' arbitration Thfcoms which they propose olollow. appears to me necessarily to lead to oto^^ 1.1 ustice, and IS so entirely contrary to my conviction of Uat tt nublt interests reqmre. that I cannot concur or consent to take par in it I have the honor to be, Sir, To the Honorable r. J, (). Chauveaf, > Trovincial Secretarv. ) ) Your most obedient .Servaiil, cm'. D. DAY. il it is the pillion was t, wbereas, I'liacls that Sli{, MoiNTREAL, !ith July, 1870. I have the honor to declare mv resi<>nilinu nr th ^ ., • x Arbitrator hy ,ho G„voru»e«t, o! qL^^^^X nL'^,:T^C7iC 08 niilisli North Amorlfi A^.f rtfivjcr i I havo the honor to be Sir, Your obedicut Sorvanf, To the irononible P. J. (). CluuVEAU } ^^^^' ^- ^^Y. Proviiieiul Secretcary. ' j ~_ / X- 8 III, Secret ahy'h Office, Quebec, lith July, 1870. i;:nc/li|;:'j>r;::;:^^^^ of h. i^ee,. hi.s position as Arbitrator selected bv thn Pn ^^'''•^^o^'''^J^^^'^''^^'<'«i«'H«'a Qnobee. under the 142nd socto i/ tt ferS "J ^^^ ^^-•'"»- o .^nd to request His Excellency to bo p W^^^^^^ Arbitrators suspend their labors imhl lo rl ''''^''' ^'^* *^^ *^« ^^^hei^ fome to a decision respecting such rcsi^nnS"'"'"'\\* ^^ ^"^^^'^^ ^^'^ve under consideration. "^ resignation, a matter which is now I havo the honor to be Sir, Your obedient servant N. F. BELLEAU, The Hon. Joseph Howe, ^ Lieutenant-aovernor. Secretary of State lor the Provinces, Ottawa. Sir, Secretary's Office, Quebec, 11 ill Juiy^ |S7„. •esignation as Arbitrator of the Tro.i^ce of Ouoho; ^^^^{ ^^^;? ^^^^^ered his tion of tho British North America Act of 18.^7 '?' w'^"' *^^' ^^-"^^ '^^'^'- AViIl be ploased to stay proceedings ii^, til .Li 1 ' ^"'^ *« request that you Quehoc, who have the%aid rcSSioi 1^^^^ ^^' Cfovernm.n} c> a decision upon the subject. ^ ^'' consideration, have com., (o I havo tho honor to be Sir, ' Your most obedient Servant riJi;iiiiE J. o. (.mAVYKAv, The Honorable D. L. MAcrHERsoiv. Seci-etai-N . \ '^i / \ %: I \,' 99 Si2f.'iip:TAiiY's Office, 1/ Sir, Quebec, 11th July, 1870. I hnvo llio honor })y commaiul of His Excolloucy tho LieutcMimit- .ov,>rnor, to inlbriu you, thaUhc Jlonomhlo C has. U Day has Iciulcn-d Ins iv.M^-uatioii iis Arbitrator of tho rrovinco of Quoboc, under the l-t-'nd scc'tioii of tho British North Amorica Act, of 1807, and to rcf|U(>st thul youwdilx^ ploasod to Htay procooduii?s until such timo as tho Govorn- nicnt ol Quohoc, who havo tho said resignation uiulor consideration, have e(nno to a decision upon tho suhjoct. T havo tho honor to bo, Sir, Your obedient Servant, riEUUE J. O. CIIAUVEAU, Secretary. Tlio IIonoral)Io T. II. ChiAY SlT^, Secretary's Office, Quebec, 13th July, 1870. I havo tho honor to acknowlcdyo receipt of your letter of tho 0th in- stant, tendering your resignation as Arbitrator named for tho I'rovinee of (iu(^bec, under tho 142nd Section of tho British North Amorica Act, of 1807. Ilis Excellency the Lieutenant-Governor, whilst desiring mo to (Ex- press his high appreciation of tho important and valuable services so ably rendered by you, on tho Commission of tho Arbitration, and to oiler you his most sincere thanks for tho same, directs me to say that he has taken the matt(>rinto his most serious consideration, and that as soon as ho comes to a decision upon it, ho will immediately cause you to bo made acsnuaint- ed with its purport. I havo the honor to be, Sir, Your obedient Servant, riERRE J. O. CHAUVEAU, nv TT n /^ ■.. 1 Secretary. Tnc Honorable Ciis. 1). D.vv, ) Toronto. \ „ Ottawa, 13th July, 1870. feiR, I have th(^ honor to acknowledge the receipt of your despatch, dated tho 11th July instant, acciiiainting me for the inforraatiou of His Excellency 4>;i m m KM) I ho Govonior rrononil, thni Iho Hon. ChR.T), Day has roHij^nod his poHitioii «>r Arbitrator, choHi-u by tlio Govi'rumentor the Troviiico ol QuoIhh-, uiukr I ho 142n(l Hoctiou of tho British North America Act, 18G7, and roquostinijr His Kxcolloncy lo ho ])h>a,st'd to or(l(>r that tho othor Arhitra(orM suspend thoir iahor.s, luitii the; Ciovoriiinontof (Juoboc shall havo conio t«» a decision on Mich resiitiiiilion. 1 have tho honor to he. {Sir, Your ob(>dient servant, K. A. MHRIilDITII, Th<- II. Ml. Sir N. K. llKi.MCAU, Lieu(eniint-Ci()v<'rnor, (Quebec. ) / Uiuler Secretary oi' Slate lor the I'rovinec.'-, . • Ottawa. 18th Jul v. 1 870. SiiJ, f have Ihe honor to acknowleduo the r(icoii)t ol" your desp-tcrh dated the I nil July instant, trauNniittini^' lor tho inibrmation ol" His rkeelloiicy tlie iJovernor (lencral, a copy of an order passed by the Kxeculive (Council oMho Province <)i(^iu'boe. respoclino- tho arbitrators chosen lor the divi- sion ol" the (Irl)ts, \-,.. „r llppiu- iind Lower Canada. 1 have tho honor lo bo, «ir. Your ot)edieiit Servant, E. A. MKllEDITir I'nder Secretary ol' Slate The II. ,u. Sir N, F. Hkllkau. i ibr the I'rovinc.s. Lieiitenant-(jovernor. [ (Quebec. ) Copy ok tiii;: TIfj'out of a Conimitteo ol' tho Honorable the Kxeeulive Council, approved by the Lieulenanl-(Jovernor in C.mneil the I'.UJi July, J 870. No. 1G8. t )n tho rosiii-nalion oIUk^ Hon. C. ( J). Day, Arbitrator t'orQueboc. \ The nonora1)Io tho Secretary, ])y a memoraiiduni th Aw<>ii,sl, 1870. Ill the mailer of the arbitration between ih.- Provinces of Quebec and ( )iitario. The undrrsionod Arbitrators have adjourned the proceeding's of the arbitration to Wednesday, th(^ ]7(li Aui>ust, at 2 P.M. at Osyoode Hall, 1 oronto, and the Oovernments of the Provinces ot Quebec and Ontario are notihed that notwithstandini-- lh(^ writ of prohibition served on the arbitra- tm-fi, the undersig-ned will proceed with the consideration of the matt(>rs of the arbitration on the day and a( the place above named peremptorily. Toronto, ath Aiii;u.-^°'^^' ^^^" *^^« information of His Excdloncv iho Gov n-nor Uenora], a copy of a document si-ned bv tho 1 W S Tho Ilonorahlc, tho Secretary of «tate, for the Provinces, Ottawa. N. F. BELLEAU, Lieutenant-Governor. Department oe the Secretary of State for the .Province. No. 390. Ottawa. 11th August, 1870. ►jliC, of ^^^m ^iS'l^lrjjJS^f «^-7**^- ^-y of your despatch. (Governments of Canada and Onto ?nt. ? ™^-ators chosen by tho conduct of these ^^SZT^^^ly^^^^^^^ protesting again.i the CJorornnieiit. "" ' ^ 'l^^^-'^^^^S the mterventiou of the Federal J iiave the honor to be Sir, Your o])edient Servant, E. A. MEREDITH, To tho Ilonorable Sir N. F. Relleatt, ^ ^^"'^'^'' ^"^^'^'"'"•'^'""y "f State. Lieiitenant-Go\ eruor, Quebec. A 'i SiK, Toronto, September 5th, 1870. As Arbitrators under the PviiiMi ■^rr^«+u a • . tho honor herewith to .nc o?e ib • . CclLt'^T\i'^' l^^^' ^^« ^'^^'« made bv us ''' ^"•'^"•nment ot Quebec, the award ^ 103 Thoawiml has boon made in triplicat,? ami siMit also to tho Ooyprn- ments oi the Donuniou and Ontario. Wo have the honor to remain, Sir, Your obedient Servants, n. n ir 1,, -T- H. GRAY, lo the Honorable, ^ D. L. MACPi[KKSUx\. i he Secretary of the [■ Province of Quebec. ) To all lo rvhom these Presents sliatl come : The IIonoral)lo John Hamilton Gkay, of the Citv of St. Jolui, in (ho I'ro- vnice ol New Brnnswick, and the Honorable David Lewis M vc- niEiisoN, of the City of Toronto, in the Province of Ontario ; Send GrtEET]i\(i : AVhovoas, 1)y the British North Anioviea vVct, 18()7, it is enacted thui the division and adjustment of the dol)ts, credits, liabilities, propertioy and assets oi Upper Canada and Lower Canada shall be rel'erred to the arbitra- ment of three Arbitrators, one chosen by the Governnnnit of Ontario one by the Government of Quebec, and one by the Government of Canada. . And whereas, the said John Hamilton Gray wa^ duly chosen undor and in accordance with the provisions of the said Act as Arbitrator, by the Government of Canada, the said David Lewis Macpherson, by the Govern- ment of Ontario, and the Honoral^le Charles Dewey Dav, of Glcnbrooko 111 the said Province of Quebec, by the Government of Quebec. Now therefore, the said Arbitrators having taken upon themselves ihe burthen of the said Arbitration, the said John Hamilton Gray and David Lewis Macpherson, bring a majority of the said Arbitrators, Do Heiieby award, order and adjudge of and upon the premises, as ibll'owf-^ that is to say: ' 1. That the amount ])y which tlie debt of the late Province of Canada exceeded, on the 30th day of June, one thousand eight hundred and sixtv- .sovon, sixty-two millions five hundred thousand dollars, shall be and "is horoby divided between and tipporlionod to, and shall be borne by tho said Provinces of Ontario and Quebee rospoctivolj^ in the followino- pro- portions, that is to say : th. said Provincts of Ontario shall assume and pay >uoh a proportion of the said amount as the sum of nine millions ei<>]it liundred and eight thousand seven hundred and twenty-(>ight dollars luid Uvo cents b(>ars lo the sum of eio-htoeii millions five hundred and eio-hty- Nov«Mi thousand live hundred and twenty dollars and fifty-seven ciMiis And the said l^-ovineo of Quel)ee shall assumti and pay sucli a proportion <^l tho sai * -^,2.30 70 vmce oi Canada for six per cent Pmt^,,?; i\ ' "^ '"■ issued on account of thrsSd Hon ' i^'''""^^"*''^ the Dominion of Cflnni? i f°^^«^ '"^^ assumed }»v tho late plZ^l o?S;r' ''"'"^ "^ ^^^^ ^^^'>^ <>'• !'."»,(J00 00 For advances liuide to the said Court TTm, i , • '"^ -'S'S'^S^ 70 late Province of Can.uhi lIou,>e by ,he s;u,l i8,orit; 21 105 \h 3. Debt from the Kamouraska Court House to the late Pro- vince of Canada for })alanc(\ of certain charges in res- pect of the said Court House, paid by the late Province ol Canada 201 ''T 4. Debt from the Royal Institution, other wisr^'cGill Col- lege, to the late Province of Canada of the balance of a loan made by the .^aid late Province to that institution.. 7,790 00 6. Deot under the Consolidated Municipal Loan Fund of Lower Canada to the late Province of Canada '^ 939 429 97 6. Advances made in excess of the Legislative School G-rant '' * (described m the fourth schedule to the said British North America Act, 1867, as "Lower Canada Legisla, tive Grrant") ° 28 494 78 7. Debt to the late Province of Canada under the Quebec Fire Loan 264 ''54 65 8. Debt to the late Province of Canada for advances made " '" io or on account of certain municipalities in the county of Temiscouata, (described in the said fourth schedule as "Temiscouata Advance Account.") 3 000 00 r>. Debt from the Education Office in Lower Canada to the late Province ol Canada, for the balance unpaid of a defalcation in the said office to the said late Province (described in the said fourth section as "Education' ^'''^^^- ) 200 10 10. Debt from the Building and Jurv Fund, Lower Can- ada, to the late Province of Canada, lor loans and ad- . , .T'\".^']^ ^^^? *^ J* ^y *^^^ ^="'1 ^'^^'' Province of Canada.. 116,475 51 n. Debt from the Municipalities Fund of Lower Canada to the late Province of Canada, for advances made to, or cm credit of that Fund, (described in the said fourth schedule as "Municipalities Fiind.") 484 '^44 33 12. Debt from the Lower Canada Superior Education Iii^ come Fund to the late Province of Canada, for advances made from time to time by the said late Province '^34 osi ar 13. Montreal Turnpike Trust.. ;. i'8|;Joo OO 4. And as to the said Montreal Turnpike Trust the said Arbitrators iurther ind,a\vardand adjudge as follows: Whereas the said sum of one hundred and eighty-eight thousand dollars is secured by Debentures issued upon the credit ol the said Trust and guaranteed by the late Province of Canada, and the said Trust has hitherto met the payments upon such De- bentures and the payment thereof has therefore not been assumed bv the JJominion oi Canada nor has the said sum of one hundred and eicrhtv- eight thousaiid dollars been charged by the said Dominion in the debt of the late I rovmce of Canada, which charge if made would increase bv one hundred and eighty-eight thousand dollars the excess of the said debt on < he thirtieth day of .Time, one thousand eight hundred and sixtv-seven above sixty-two millum.s live hundred thousand dollars. 1-1 106 that the said Province of Soboo s all I,,tn ')"'*y °"Jj»dge and award, them. are. shall be, and thllloa^^tlTv T.^'f. 1 'K'^"^' «^ ^^^ of and belong to the Provhice of Oniarfo,^^f J^^^ ^' *^« P^^X^^^J 1. Upper Canada Grammar School. 2. Upper Canada Building Fund. 3. Upper Canada Municipalities Fund. 4. Widows' Tensions and uncommuted SUno.ui • it ject to the payment of all legTchL^eriher^on!'^'' •"'"^'' '^^'^■ 5 Upper Canada Grammar School Income Fund. 6, Upper Canada Improvement Fund 7, Balance:of Special Appropriations in Upper Canad-, 8, Surveys ordered in Upper Canada before 30th June! 1807 0. Amount paid and payable by Upper C.»,nr1. f. ^u ^ and Emigration Company. ^^ ''■'^'' ^^ ^^« <^'"i'^fly Land 6. That the followino- Snoeinl r.v is.,-,. ^ i- i payable including the s^TvS divestment tn^^ the money.s thereby of them, are, shall be, and the sam< /^ w^^^^^ r^'^pect of the same or .uv of and belong to the ProvinceToiebec '^ |f.'^'"-^*^ ^^ '"^ the proper v were established namely : ^"<^^^c, loi the purpos,.s for Avhieii tht.y - 1. Lower Canada Superior Education Fun- 5. Balance of Special Appropriation in Lower Canada 6. Surveys ordered in Lower Canada before 30th June, 18G7. 7. That from the Common Seliool Fniifl o ^ i 1 1 of June, one thousand eight hundred -^u\ ti *^ \^ ^^^'' thinieih day ■ - ■'«.i.;-.'^evt'n, l>y the DoMjinion ni 101 Canada, amouniing to one million, seven hundred and thirty-three thou- sand, two hundr(>d and twenty-ibur dollars and forty-seven cents, of which mty-eijrht thousand dollars is invested in the Eonds or Debentures of the (Quebec Turnpike Trust, the said sum of lifty-eight thousand dollars beinff an asset mentioned m (the said Iburth schedule of the British North Ame- rica Act 18G7, as the Quebec Turnpike Trust) the sum of one Inmdred and twenty-ioiir thousand six hundred and cij>;hty-five dollars and eio-hteen cents shall be and the same is hereby taken and deducted and placed to the credit of the Upper Canada Improvement Fund, the said sum of one hundred and twenty-four thousand six hundred and oii^hty-five dollars and eighteen cents, being one-fourth part of moneys received by the late 1 rovmce of Canada between the sixth day of March one thousand eio-ht hundred and sixty-one, and the first day of July one thousand eio-ht hun- dred and sixty-seven on account of Common School lands sold between the lourteenth day of June one thousand eight hundred and iifty-three, and the said sixth day of March one thousand eight hundred and sixty-one. 8. That the residue of the said Common School Fund, with the invest- ments belonging thereto as aforesaid, shall continue to be held by the Dominion of Canada, and the income realised therefrom from th6 thirtieth day of June, one thousand eight hundred and sixty-seven, and which shall be hereaiter reahzed therefrom shall be apportioned between and paid over to the respective Provinces of Ontario and Quebec as is directed by the fifth section of Chapter twenty-six of the Consolidated Statutes of Canada with regard to the sum of two' hundred thousand dollars in the said Section mentioned. _ 9. That the moneys received by the said Frovince of Ontario since the thirtieth day of June, one thousand eight hundred and sixty-seven, or, which shall hereafter be received by tht; said Province from or on account ol the Common School Lands set apart in aid of the Common Schools of the late Province of Canada shall be paid to the Dominion of Canada, to be invested as provided by section three of said Chapter twenty-six of the Consolidated Statutes of Canada. And the income derived therefrom shall bo divided, apportioned and paid between and to the said Provinces of Ontario and Quebec respectively, as provided in the said fifth section of Chapter twentjr-six of the Consolidated Statutes of Canada, with regard to the sum of two hundred thousand dollars in the said section mentioned. 10. That the Province of Ontario shall be entitled to retain out of such moneys six per cent., for tlie sale and management of the said lands, and that one-fourth of the proceeds of the said lands sold between the four- teenth day of June, one thousand eight hundred and fifty-three, and the said sixth day of March, one thousaiid eight hundred and sixty-one, receiv- ed since the thirtieth day of June, one thousand eight hundred and sixty - seven, o: ' hich may hereafter bo received, after deducting the expenses of such mai.agement as aforesaid, shall bo talcen and retained by the said Province of Ontario for the Upper Canada Improvement Fund. It. The Crown Lai)dSns}>ensr Account, amounting in ono'hundrod and 1.08 twelve thousand seven hundred and forKr r>i„T,+ T n i ■ and the Crown Lands Department aro^^^^^^^^ '^°H^'' ""^ sixty-throe cents, three thousand and ei^htH^^^^^^ *« ^''^ hundred and items so described in tliepXlLAce^^^^^ '■'''''' ^^"^ *^« having been omitted respectively if om the tf fo^" iTT °/ ,<=^^»^^da, said Province in such aceount^L.1^ .1? J^tatement of the debt of the to the British North AScalcriVorih^ assets in the fourth schedule Qdj^idgethatthesaidrroWncrofSI;io J ?f^^\ Arbitrators award and ceive dl moneys, in respec of th^^ satis y all claims, and re- and the said Crow Sf Departm^ , t oT'"'' .^^"^' Suspense Account, lands situated in theS Pro^' e^^^ ^^i^ ,i' ^^^^ from of Quebec shall satisty all claiins ami Vo. T ' 1. "'^ *^''^ *^^- said Province said Crown Lands s/sp n X coimt and Jhe ^n p'^'' '''r^^'''^ ^^e ment, connected with ov arisin- ?. om ^,^,l^^ w '^'"^^.Crown Lands Depart- Quebec. ^ ^'''"' ^'"^'^'' ^^^"'^^.^ in the said Province of 12. As to the Montreal Harbour tbo v-M ^,^■^ 1 o , , debt due on account of four Wred and o' 1 , 11!^'''' ^TK ^^'''^' ^^^^ dred and twenty.five dollars and wentviv^^^^^^ '^''''T:^ IT ^'''" issued by the Montreal Harbour Corn m?L- i ' ''^'^'"':'^ ^^ debentures the statinent of the d^TZl^vZ^':^^^^^ '^"^ ^''"'^^^ "^ here;^l!::7^?j^,ri;^S^tl;t?^ «^ ^--^^^ account of the said deb^iXr 4 X A. d two 'p '^ '^^^^ f^^^ ^^°"^""°^^ «» said Dominion any sums so paid i^^^ ^^^'^^^ ^^P'-^y *« the the said Provinces are hereinSorr directed t^wN '''^''l^^^'^Y' ^''^ on the thirtieth day of June on,' thoi/.In 1 1?. !. /"'i^ ^'^^ ^^^ ♦-'xct^ss, above sixty-two mUlion fi^'huudtT^t^^^^^^^ ^^^ / Vll'^'^^^ '^"^l sixty-seven late Province of Canada ^ thousand dolhirs of the debt of the! 13. That all the lands in either of flm t..,,M -n • Quebec, respectively, surreiiderod bl l. t Provinces of Ontario and nuities to them gi J efXh satl nn.S Z""^'""' "\''"'^,"^^^^^^^^^i°" ^^ «'^»- the late Province of C rSrsha 1 be tho > « f ? "''^''^^"^ ^^ *^« ^^^t of vince in which the said kS at ttt*^^^^^^^^^^^^ of the Pro- or charge to the said Provinces in wbir-h l^^r '"^y. /"rther claim upon of the sSid Provinces. ^ ^^'^ ''*^ ''' «^tuate, by the other siadlwnc^slfS^tSr^Sec'L^^^^^ ^^P-^y ^^ the ed or dealt with, and not appropr^^^^^^^^ othereinbelore specially mention- Act onmi, includin.v the EfbrTv of P.frV ''f\ Sl*^'^ ^^^^^ ^"^^^rica lind tlxat it s not exp^Sit to dh^Ho Ih^f ^'^^ '-"^ H^-*'^^^^^' ^'^^« Arbitrators from the public purpots L wh ch tS^v ",'? ^''"'^''^''^^^ to divert them Dominion of Canada^ Thev thSrSd wl T'^ ^ J!ll^''''^ ^y t^o said properties is and sha 1 i- (i,n to w^ 1. ? ^\^ the value of the and that^the Dominion of Cat df „^.^e L 7^^^^^^^ dollars, perties on payment to the said Provinces otlKs.-d, /^' ''T'' P"^" thousand dohars in the same Proportion ^l^'i;.:;;!:;;;;^:^ Ik^iU^:^ I J l()l> S«Th iu ^ lu f -^P'^^.^of the excrss of debt of the late Province of Canada on the thirtieth day of June, one thousand ei-ht hundred and sixty^^^u above sixty-two imlhons Jive hundred thousand dollars "that is t^ say "To Ontario the sum ol one hundred and Jive thousand live hundred ardfortv- one dollars, and to Quebec the sum of ninety-Jbur thousand four Wred Wid hfty-mne do lars, and upon such payment the Dominion of CanXshall become the absolute owner of the said properties. But should the Domingo of Canada not so acquire the said properties within two years from reTte of this award the Province of Quebec may acquire the saiS properties bv the payment to the Province of Ontario within t^^^ months from the eSt on Sred' n^n r. ^^'"'' "f 't '''\''^' ^"« ^^""^^-^^d «"d ^i^'« thousand fi?eW dred and lorty-one dollars. And should the Province of Quebec not so acquire the said properties within the time aforesaid, the Province oJm^ario shall withm three months next thereafter pay to the Province of QuebecThe sum oi ninety-iour housand Jour hundred and Jifty-nine dollars, and sh^ thereupon become the absolute owner of the said properties. 15. That the several sums awarded to be paid and the several mattew and things awarded and directed to be done by or with regard to the mS to this relerence respectively as albresaid shall respectively be paid recdved done, accepted and taken as and ibr full satisfaction and discharg^ and Is a Imal end and determination of the several matters aforesaid. In witness whereof th(. said'Tohn Hamilton Gray and David Lewis MacPher.on, two ol the said Arbitrator., have hereunto set their hands tWs Kani:4enir ■' " '"'" '' ''"' '""'' "^ ^^^^ <1 -g^t W .T. H. CrKAY, D. L. MACPHERSON. Signed and published the third day of Septem- ) ber, 1870. in presence of Christopher i^)bins()n of' the City of Toronto, Barrister at Law. \ \ ViiTM. Finch, of the city of Toronto, Law->Stationer. ) ; Copy of a Report of a Committee; of the Honorable the Executive sSrriberf 1870 ^^^ Lieutenant-Governor in Council on the twelfth iNi^On the^preteiided juJoment or award rendered and made by the Honorable J. H. (Jray and the Honoral)le D. L. MacPherson, two of the Arbitrators apponit(-d to decide as to the division and adjustment of the debts, credits, habihties. etc., of Upper and Lower Canada. • ,7^? Honorable the Treasurer of the Province in his report dated the nmthol tSeptembeiMHstanl, (1870), sets forth that a copy of a pretended f' 110 judffmont or award rendered and made by tho Honorable J H Clrav and the HonorabeD. L. MacPhorson, two of the Arbitrators apponk^^^ as to the division and ad iistment of the debts cvodii^ linh/m V. ?• juul a.^s of Upper cJadaand Lower SXj:!:^ii^S^t'S^^ the thrrd day of September, instant, and si-ned by the sakl par ies hi bi n qS^ltS^J^r'^^ ^'^^™^^ '--'-y^^ theiirillatic^^^^X Hn^I^fi'TT'^f *^' ^"'^^"" Gorernment have already, by mtima- tion to the federal Government and by legal procoodino-s l)Ji'o S^tlie W tribunals of t^c country protested against the!said two Arbitmtc^s proc^^^ Z^Lhlo^r^if 'n "^ "^'"^'^ '"">^ ^"^^^^" ^^^^^'^ on the part of the sdd v^r nr n ; ^^' ^'^^y^^'', ^^^^o^^'^t »iHl because of his residino- in the I?o that all the Acts and proceedings of any kind wh-itsoev(>r Ji -.v T ' l The Honorable Treasurer therefore recommends that on bohnlP.ffl.. Quebec Government, a despatch be forwarded to ' it^ul^) n . protesting against any forc'e or validity be nggv.^ to th^ slid Tef^^^^^^^^^ judgment or aw^ard, of the said two arbitr-itors W A . w' f^V i"''^''^ and advising of the' intention of the Qx 'bee GoVc .Ln^^^^ "i'*^""^>'' dress and justice, in every constitutiona mod.s Xh is theTiv I "' "r Entish subjects, under the British Crowni to exerc se vh,^?/j? V injustice or wrong from the hands of any AhensuJermg under pvetSdj^^!^^:;S^£{^:~;;^^ T''l ^^ t '-'' at the same tinfe protesting arr linS if of, f i '\rbitnitors be acknowledged good faith, or in Lcord'ice ?^^^ and lu^';:?^"?^- "^^^ ^"^^'^^' ^'^ rendered and made in the interests of oLir^i f l""' ^''"•- manifestly bee, and that the said arbiiat'tL^^^^^^ FS'^^^^^^V?' Q^ ment of the objections taken and held prev Ls to h- Quebec Govern- arbitrator from Quebec, that thei? jidl^'JnnV?,^^^^ s '? jr"' ""l '^'"/ *^? not recognised as valid bv the Govermn . oT Q™ • "''" '"^^ '^""^ "'''^ ^ 7 111 The CoiumiUco coiKuriu the lor-oiin.- n'lx.ri.juid nubmii iho sam L.U'ulouaiit-t,se. lor the. inforraaliou of His Ikcollency the (^overnor-Ueneral, a (.•oi>y ol' an ordc.r passed by the Honorable the Execu- tive CouncU o the Province otQue})ec, dated the 12th September instant, in relation to the pretendcnl award rendered by the Hon. J. H. Gray and tne lion D. L. Macpherson, two of the Arbitrators appointed forthe divi- sion and adjustments of the debts, credits, liabilities and properties of Upper and Lower Canada. ^ ' I avail myself of this oi)portunity to inform His Excellency that I en- tirely concur in the views expressed by my Ministers, in the said order in Louncil and thai with tliem, I protest against an award which I hold to b(> imiust, illei'-al and inoperative. I have the honor to bo, Sir, Your olxnlient Serviini. N. F. BICLLKAC, Lieutenaut-( lovernor, of the Province of Qnehec ) rroviiice.-, !' The Jloii. .losKi'ii How !■:, f>ecivtary of Stale for th< Ottawa, Sir, Skcketaky\s Offk'k. Quebec, Mtii Sepl,eml)er, ISTU. r 1 have the honor to transmit you for the information of His lilxcellcLcy \ i]y. Lieutenaiit-dovornor of Ontario, a copy of an order approved by His lixcellency the Lieutenant-Governor of Quebec, in Council, on the twelfth or S(>ptember instant, on the pretended judgment or award rendered and made by the Honorable J. H. Gray and the Honorable D. L. MacPherson, two of the arbitrators appointed to decide as to the division and adjustment of the d(>hts, credits, and liabiHties of Upper and Lower Canada. I have the honor to ]h\ Sir, Your most obedient Servant, Ph. J. .TOLICCEUR, .„, ,^ ., ,, Assistaut-Secretarv. The Honoral)le M. C. Cameuo.\, ) Provincial Secretary, Toronto. \ Sin, 112 fc»EC'J{ETAHY"s OffICI:, made by you and the Honorublo F H r" r." a v ^'^ V''''''^ rendered and cide as iltho d?v sion and ac ultim:, t o^ Arhitratons appointed to d.- Upper and Lower CanadT "•^'''*"""* ^^ ^*^ a^^»>t«, cmlits, Jiuhiliti.s of I have the honor to bo Sir, Your moNt obcdicnl, Servant The Honorable ]). L. Mac phkuson ) ^'"^ ^f i VS^^^^^'. Toronto. Sir, SF.CRKTAiiv'is Offici:, Quebec, 14th Septenibi-r, 1870. of September instanro he p et " d.d i K^^^^^ '\' ''^^'^'''^ made by you and the Hoiiorablo 1 T M . i k '^ "7'V'^ rendered and ed to die/de as to the SviS L ^cHuS^ ;^s Arbitrator, appoint- of Upper and LoM^r Canada! ^'^-^'''^'''''''^ ^^ tluMle)>t.. credits, ]ia),ilities I have the honor to be. Sir, Your most ohndiontSiTvuiil The Honorable J. H. CIk w / ^'"- •'• •'^!V<^^(^'^I'Ji. Toronto. ) A«si,sta)it-^ecr..tary. Sir, PllOVlx\("IAh SHCJfETAllv's OfFICK, Toronto, Sept. iVth, l.STO. I have the honor to acknowlcdco the roooint nP n k*^ r Secy.JoliccBur, dated the Uth U^%t,^l \^ii ^^ ^ "^^^^^^^ Order in Council approved by His Sl^^ transmitting theeopyofan Quebec, on the 12tS^instant.'i;idha^^^^ SrtfhV^'^i; 7^ ^■''''l'' MaePherson, unc er tl ^ U^nrChnso ot\^' iiritish North America Act, and to inform von tliof \i,^ l- .1'^^, °^ *^*- nutted for the co„.ider.tio, o,H^zi:;'t]Z::;^:^j::,r'- 1 have the honor to be Sir, Your most obedient Servant THS. C. PATTERSON, The Honorable the Provincial Secretary, ) As^istant-Secretary. Quebec. * ' i I ii ? it^- •Vi V , 'h 118 »Sii{, Ottawa, 2lNt SVp(oml)(«r. I,s70. B IJ 1 1.1. Si '*' • '"1" " '^' '.^"Vwlocl-o. (lu. roceipt oiyour dospat.-h (h.t.-d ■« • un. Mu.,r-(,,.u(>ral a rcpy „| a„ onl.M- j.as.scd l)y th,. Ikocutivo Council ol" a V. <1 ivml.Mod .y the lo,u,ral,lo .1. H. Gray and irii«)r, (^)iu'1m'< I have llio honor to he, »Sir, Your most obediont .servant, JOSJiPJI UOVVK, tSeer.'t y of , Slate, for .' Trovincos. \ 71 :m I ■"f INIJIDX. DIVISION OF SUBJECTS. I- INTI{()DK('Tl()N. ikr II.— SIJJM'UI.S DJiBT Ill—ASNOTS INT 8TA,TliMKNT OK MAlllMTirx See l\ - INDIAN I.AND.S • V. -ASSKT>S IN .SCIIEDIILK 4 I fh ARBITRATION i!i:twi:e\ ONTAlllO AA'J) QUEJtEC. MK-MOIJANDl'M SUnMITTEI) ON JJEilAM' oK TIIM I'KO- VL\(JE OK QUEliEC. 'I i in NCTIOA'S OF THE AliBTTliATOliS— NAT EXTENT OF TJTEJJi J'OWlil^S. \ll] AND J.yiho I42iirovi(l<'d that " tho division and adjustment oft ho do])ts, credits ]ia))mties '• properties and assets of Upper Canada and Lower sliall be referred lo ' 1 n^ arbitrament of three arbitrators, one chosen ))y the (Ioa eminent of - I ntano oiie ],y the Government of Qnel)ee, nnd one by the CJovernment • olUinada. Ihis bnel enactment contains the only references made in lie Act to the arbitration between the Provinc^^.; of Quebec and Ontario, lor the settlement ot the important matters pendinq- ])et\veen them It l)laces m terms, within the jurisdiction of the Arbitrators the division'and adjustment ot tlie- debts, credits, liabilities, properties and assets" of lij)per and J.ower Canada, but the section is limited bv otliers in the sam.- Act. bection 107 provides that all " stocks, cash, baiikers' balances and .securities ior money belonp^inq- to each Province at the time of the Union except as otherwise provided by the Act, shall ]je ihe property of Canada' and snail be taken m reduction of the amount of the respective debts of the 1 rovmces at the Union. The pu])lic works and property of eaeb rovmce, enumerated in ihe third schedule of fhe Act, are also declared by section ] OK, to be the proj^erty of Canada. It is submhted for ilu' decision oi the Arbitrators whether they havi« jurisdiction over the asseis enumerated in tlie fourth scheduk^ of the Act. l^hese assets are declared I)V ilui T13th section of the Act to have belonged at the Union to the " Pro- vince oi Canada, ' and are not, it would seem, included in the assets tVe «)l " Upper and Lower Canada,"' mentioned in the 142nd section ' Tlic asse s, cVc., relerred to ni the last mentioned .s.'ction, were not, indecul assets ol the 1 rovince of Canada, Imt were, on the contrary, principally' li not wholly, liabihti.vs of ihe h,(e Province. The Act has assi.vned ilw asselsen,im.>rai...l m s.hednle -Mo Uniavio and (^ie]>ee, and deC.rmined that Ihey shall be Ih.'irs (■(.njoinlly. The asseis, ,V..., inl.'nd.'d to be 118 iict nas iMi .^pecihvHl inn- specially ussin-nod ^t .speedy settlement. T1k> c.uol ion is to'l?! -^T Z*'"^^'^^ ''^^ '"•^'"'■^•1^^ ^'> over the assets set down ir;]tXi^ i^ n!^'?f ^f^ '^ !!'' ^^^>^^-ior>^ oausiuo- embarassmcnt but to dm V 1 on i ;m"^ '>^f ^^'' ^^'" imrpo.se el- and to ensure the rendering oi''n i ' ^h l^^'r^1,1ff^-^^t^^"Po^-tan,:., bmdino- upon both Trovince;.. ^''^ •' ^a.u a. hid, ......11 be nidi res]H.cfs . I^'i'oni the year iTHMo the v.vii- ^^'-i . .■ vices of Lowei Canada and U. ^S ct^ .iS' ?V"/^ yoav.,-the Pro- "lontioned year formed on,' Pm L \J nd m V ' i^^^^\, l>nor to the iir.sl \tf^y W a separate existence ^d^^^J',^^^^^"^^^ ^'^''^^ " ^'^«vin,u. oi' «40 the Imperial Act (3 & 4 vS c 4 I h i'?'^'"V^^"^^ ^^^ ^^^« y^^'" 'he Provinces of Upper and Tnt'^'f '^ "liiuiled ; -An Act to reunify. (^o^aaa^ was ^^J! ^''J^Z^^'\^ '''\ '''^l <---rnment of ro erii^'^f : ';'' ''^7 ^^'^''' ='^^^' ='" 'h. assHs, ir-iJIVISiO:^ O]^ TILE ;SUIiPLUS ])EBT, This debt isiobe ;ipi),,riio;ie<| J.,- .;, . a .,- w , niid Quebec. ' " ''•' '•'' A,;,iiiv.(„rs b,.!\v,-...i> ( >i,ia,ia It has bi'cii ,su"-'.-e.-li>(l /]i.,/ 'i.; . !■ ■ • i"M.nhii..,M,f,.,H,;;^i,.tr:i,;:x;'7i.:cH'i''-'^.'-'''''"^ ■■ Makiii"- ton-ether j)ol)t of Lower Canada, lOlli In-] 1^ ]>''bpnlny(',s(samo a])iHnulix)...,t'!)u.7lS !s. 7<1. )r!uti" n li<'8,s— Montreal lILarbour (tli, 2r),77!> r,i is. (1 t;ir)'j:!;i os. od, t'.'jual io. ..()\\ < lil, (1 ada lijul at it,* K'ln ( ' r. I • oi re ei^ipls (.\ rr exi)i>ndi(u!vs Innn iTi'l io 1,S4],) (Appendix KKK, on847) •ill \vliieli dednclin:'- n r.o', lel)t. ;i>.'i!t:; Of) M>.:;fr' ! (;ii.!';i(; (!') is iound Ihai inslear h mill!'' any debt, it iiad then at ii,- command. SlnkiiiG' out. liiis tuiKnuil uldifion to Ml e (ic.il (ij s^ii!Sl!,:;n(i -i I is e(juivalent j.» its '- i>l>ei- Canada LS!I,:U»(; -il Which \V"u!d i] len sin ta'ul rif ■•fill ir).os:> 'I.-) 1-!0 i)i».' Tiikiiiu' ill.' |)0|)ulati(.ii ()l(';!.Ii at that i]at<', , C'iiiiiidii, (SCO coiLsus ISf)!, vol. ], ]>. xvii)'\vii,s 4(;r),:}77, mid Lower Canada (makiiio- it as near lis anterior and subsequent census perinii io wit : census of 1881 and 1844, there hviwr none lor that province in 1841) was 6().'},2r)S, It establishes that, to b(; on an equal foo'tin- Mccordinn^ to i>opuIation, Lower Canada should have entered the Union with a debtor ^8,71-"), (Ml) r>o Must nut such disproportion be taken into account in .i.iven an immense augmentation of population, resources and ^A^alth^ n. The other mode suo-jrested, if its adoption was possible would b> ilulst Cn^Hh^^hn'' -auirements of jitice. But\o be so'ea ,' uist be had to ihe hue and real ori-m of the debt, not to that which is Iwo Z:^ct ui^: S/' -oidcl r^uire io .o back to the illn of tl two l^aiuws ake their respective deb .3 and credits at that lime ex-uni.i,' m derail all the expenses incurred since, note .spcciall7i^he provin ' r which or m wlmse interest it was incurred, and detennine Zmv v 1 1- share o (>ach. .Such a work would not only entail an nmoZ of b. k • ' Sve^-;^ s o^ tl^ di n^.^^ "^ '""^"f^ oxamination of ail iln. a.lmin- government, nevertheless felt if if« i»i.v^cf , " " '^y,^'^'^'^^ ^''^^veaKJi . , -1 i- "- » '^ ' i^ii^n- »&, itii ic its interest to surrender riv ■! nmn;!...! ;rSy h :^ '^f:jz^':i-::::t\rr t^^^y^^^^^ •ontestedns between Ontario and ciueber To icDoZ'''"';."^'-^ ''' ^'''^I hoir present value ; but in deter£^o: A^/ti^boihVTr. ''''"' heir present value but their on,inal co f w eh s^M I "^ttltd "" III, Thi tical)le Wiiy ( partnei'shi!), ' plaiuosi easiest. r.n1 setlln.ic the qm-slion, i. to ireat tlie .as,, as o-u ^ Uld ai)ply the rules which <.>• Me o!' <»rdiuary oveni tiie ])aitition of partuev^hii. f.t^ 121 I 1 ^ Adopting this principle, ilio Arbitrators would treat the niiio.i of Ih- M,*;r'?^„'t&J'f '° ',?«'• r h.u.in.,,eeu equalty IdvSgeo'u ' to Co ^iZ'JLiS^^t^^y ^%f ■', """h h»'i draived the same benefit from it. . a iZe « ™ ill^ ^™'" •^"'"fl''. '•hich came into the Union in Irtl with a 1.1 ge 6um at its credit, and a popniation ahout one half larger than that oi Upper Canada, left it in 1867 with comp.ar.atively limited rSsonrces a,uT m lllSionTi ir'::!;; """""i' ,™* ™ -'i-usted tr/aZr^'^Ld ■ftqofiftQ^QQi +1 7'"^"..'-^^(^*^S' f>y !s>^-J7,bJ0, representiiiGr a capital oi" admitted rW f^? 1. '^ T '•''"' ^?'"^'"^^'^' '^^^^ S'roat wealth, it will Ik ^?f with t^^^^^^^ iT^ ''" k' ^'"^ T*^"^ to Quebec. It will however do away wiin what has been shown above to be imnractioible thp miii,-,i . inspection and appreciation of all the accounts oTthTS'^e of S^^^ durniff the twenty-six years of its existence, and will lea?e only the con bS:;?^;'^^'^^^^^^^^^^ cradrwhe'n thT; "V- 1 • """^,"' '^^ift ^^^^'^ debts, credits, properties or assets the Ti-irtit--mi ,.c which IS rendered necessary by the dissolution of thSrpa^toersC According to this method of division each Trovince on-ht first to assume from the excess of debt a sum equal to its own dlbt when i^ entered the Union in 1841, and the balance ought to bo eiLllf div^ed Whatever may bo urged against this mode, it is nevertheless the onlvr jnst and reliable one It has this advantage over all otlei modes th i being the rule which governs the relations of man wi«rmairhr2m^^^^^^^ .latS^S^il^i^^^ were taken as a basis for the division of the surnlii^ rllllt +iv? n ^ -^^^ concise statements will prove that the adop^n oafeS^l^^)? population, would free Quebec from a lai^er amountof the debt ^^^ Debt of Upper Canada in 1841 (as above staled, p. 4) : 1. Debentures * ^".--n-*-,-. .... 2. Foatin.vdebt itpo,ijdii,4'2r !)< uaun, utDi 330,;i57 lil Del>L of Lower Canada in 1841 : §o,925,779 54 1- Credit is-^-.n-^o-^ ii J.oss debentures Qo,[m 00 ^ 181),30(> 4i striking it off makes, as aireadv stnted, debt of Ippor Canada, equivalent to *,, .-,.^.,. . IG l± )■) Surplus debt payable by Ontario and Quebec on terms ai?reed upon at the Montreal Con- ference." $lO,424,Hr)a 87 Deduct for tipper Canada its debt in 1841 0,115,085 J)5 Balance H300,767 02 ivided equally, it gives viidi Trovince $2,154,883 DO A-ceording to population in 1801. 1807, It "ives Ontario... $2,il!t!V58-2 48 !5i2,r, 1 2,050 Mt Quebec... 1,910,385 44 1,707,117 O:) $4,300,707 02 $4,300,707 02 8o that, 1)y the mode suggested, Ontario would on the surplus of debt be charged with $244,408 52,less than according to its popidation m 1801, and with $357,700 03 less than its share by its population in 1807. IIl.-ASSETS AITEAUING IN STATEMENT OE LIABILITIES, &c. The Statement of liabilities contains several items which must be specially considered. They are heads of indebtedness on the part of the Dominion, and are said in the statement of allairs to be either payal)le in cash or subject to be retained in the hands of the Domhiion at interest. All those which are payable directly either to individuals or to corporations, whether public or private, need not be considered. The Eederal Govern- ment will have to pay them to the creditors Avherever tliey are and irres- pective of their domicile or of the Province where they reside. They have a private and direct claim against the Dominion Avhich eould not IVtH' itself by handing over the amount to the I'rovince to which such credit(»r« are presumed to belong. But others are due and ])ayu')]e by the Dominion to the Ooyenuneuts of Ontario and Quebec, to be" made part of their own general funds and either employed as iirst contemplated or otherwise', as their respective Legislatures shall think lit. They are balances ol" sources of publie revenue, or the proceeds of pul)lic properties (whicli is t]i(> same thing) of the lale Province of Canada, set apart for sjit'cial services of a general nature and which would have been defrayed out of the common treasury, had Jiol GovernnKmt made, for purposes of its own, special provisions for them and atfected for their requirements certain .special heads of ]>ublic n' venue. So much so, that in some instances (and amomrst others llie common school fund), the sums required for this sjiecial servi<'e w/re, upon a \n|.,' .ti'ilic Legislature, taken irom the consolidated I'und, whilst the si^'cjul fund afiected to the same service was allowed lo accumulate. Tlu'v isre lo l)c viewed in the same light as sums of money voted lor a special ser\ i-e and which, lioi being required or empU>y(;d, fail into the imblic common ciiesi. ivi 1:2:3 No mdivKluals or ("or])omtions oould lo!?a]]y roeoivoihoiu from IhoClovcrn- m.'ut ol tlu> Dominion, wliich must pay tliem to the Clovornmont ol' either Province to boemployed ibr g-eueral or Kpecial pinposcs as their Le-ishitures may decide a he V arc not mentioned in the ]5ritish North America Act, 1^07 excepL that they constitute the only rm///.s- which Upper or Lower l^anada oyer had or coukl have had since 1841, distinct from those of tlie ± roymcc ot Canada Tliey therefore fall under section 142 of the Act and ar.Uo he divided and adjusted as all otliei- crHih, />roj>niirs. m;sc/s, ,M,h and iKioi/tfics. The Com.mox School Fi;xi) : It is admitted that this Fund has U^ ])e dividtnl. It consists of : 1. Amount in liabilities iii(!,7;>;3.224 47 2. Outstanding' instalments on lands sold l'~04',7^!S 00 ''!. 8,!ir>l) acres of land unsold. (The two last items taken from jYir. Lanji'ton's J{.<'port, p. s). The other items are : Mu.VICIl'ALITIES VVNT) UVY'TM C.VNAI-A : V 1 7y^1 ^^"^^^ ^^ ^'^*' proceeds of the sale of clern-v roserv(^ lands. Conso- Jidated Statutes of Canada, chapter 25. AVhen the cleray resiu-yes were abolished, it was enacted that the proceeds ol the lands which 'had been set ajxirt for the maintenance of a protestaiit cJero-y, deductino- the charge on the same, namely, the sti]«>nds and pensions, should bo apportioned amongst the ditierent municipalities m proportion to the rate-payers, ])y the Government of the late Province* ol Canada, \\hich, on the iirst of July, 18G7, appears to have had tlu; amount m its treasury. Thou- proceeds were therefore^ public property of the Pro- vmce ot C anada, and the balance now in the hands of the Uomuiion M'hen divided and apportioned, ^vill be j)art ot th(^ Conrsolidated Fund of the Pro- vince receiving it. Eut there is a special reason, ^^he m-iiicipal and int(>rest ol the Municipal Loan Fund are assets in schedule 4, which the act mad(; th(^ conjoint property of Ontario and Quebec, and ])y law the share of the i\lunicipal ]nmd which might otherwise be payable to a municipality, in arrears to the Munu-ipal Loan l^^uid, is to be an olfset against said arrears, so long as the A^alole indebtediu^ss of said municipality to the Municipal Loan I und shall not have been paid. It would seem to have been treated so, and that part of the balance now due' to the Municipalities Fund by the l)ommion is composed of amounts retained for arrears ; and in it, therefore (^lebec independently of any other reason has an niterest. IT. C. Improveme.nt Fund : By the school lands Act C. S. C, c. 20, s 7, the Governor in Council may reserve one-fourth of the proceeds of the school lands in any county and one-liith of unappropriated Crown lands in the same for public imprb^ vu vemonts ^vitlHU ilio coiiui y. The luncls so icnliziHl uvo t<» )»(> (^xpondcd uiulor the divcctioii oi' llio'CJoveruor in Council, and an lu'couul, oi" Uifin hud holbvo railiamont every year. This fund ^vas Ihererori! under the immediate control ol" the l^keitutivo and was to be s'.ppropriatcd by it lor works wliich it apin-oved. il.'s destination is a i)uh!ie one; no onocan receive it but the Crovennnenl, oi' either I'roviuce, and it will then lorni part of its general or consolidated iund. IT. C. (iKAMMAii School Fu.M), and L. C. Siu'Kuioii I'.duhatiox Fund : These iunds are ideiitieal, and must both )»' tiv-ded as the other I'unds above enumerated. IT. C. Gram:\iau School Income Fund : This Income iund needs no special uoiiee as it nnl^L in' n'overntnl by the same rules as the iund Vvhich produced it. U. C. EuiLDiNtt Fund. (Consolidated Statutes I'. C., ch. 7<>) : This is also an amount remaining' beyond ^vhat was required lor a !,4b-> 20 l.css, — Services anterior to o0th.I\ine,18GT, paid bv Quebec since (5,724 l»4 Expenditures on appropriations for local pur])oses sihoidd, and must liave been stopp^'d art(n' the -JOth.huie, 1807. Tlieir remaining unexpended, shows that they w^ere not required ibr the special oljject for Avhich they were voted. I'ar from there being any o1)ligation on the i)art of the (jovern- ment of either Ontario or Quebec to employ them for tin; sj^ecial services ibr which they were originally intended, they could not do so Avithout authority from their respective "legislatures. The amount will, of necessity, iall into and form part of their respective consolidated funds. Having ])ei'n included hi the statement of debt, they Ix-conu^ joint rreditu ol" Upper and Lower Canada, and must under seetioii 142, Yi. N. A. Act, 1«07. be " l>-^ ^<> 'l- Court Houses, L. C, and Montreal District Council : Must Ibllow the mle iulopled lor tlio otlicr.s A\luil.'V('r it is. CuowN Lands Suspense Account : Tlio amount of this account is staled in tho slatemcnl ol liabilities, at «iii.)'7ic ,'•> Vi'-jl'to uo Money has hoon, from time to time, paid to the Vunvn Lands ]),.nov< mcMit on accotmt of sales whicli, Ibr some reason, could no be an- eU, xlb T' ,!^'''\m^^^ni. ^vout to Suspense Account, and when a Ir v^ tfo tbl '^^'?-;^'^-r' '^^"^"^'^^^' °^ ^"^""^ u».surmounlable, the aymen ^-0,000 00 which are really in suspense; and that the residue reprc-s.^nts stt/e r ^rnl- r ^^'^r^: \^ J^'^« ^>«^^" I'^ft out of the ac-count^ in 1 ' statement ol liabilities and is to be divided between lh(. two l>rovii.ces. Crown Lands Department: T The iimoiint of this account is stated in the statement ol liabilities, at $25;3,08l) 7(J I«'lt to be divided between Ontario and Que])e('. Trust Advance Account: Tlie amount of this accoimt is stated in th;> sta<<'menl 01 liabilities, at ,s 1,408 GO The Trust funds have been credited with the amount received hv the ag-ents previous o said agents accounting- for the same. The above item appears to be balances due by ag-onts and should, as siated by th.. Board d' Audit, be treated as Crown Lands Department. These three last amounts are to be divided according ty the ]n-incinlo adopted (or the division of the other assets. "ncipi. " Montreal Hakhour $i81426 67" tho nwVr°'"i'^ ^'' ^''- 1' ?'""? ""^ ^^ ^^« statement of liabiliiies, because the luvst has always paid its interest. The contingency of the Dominion l:iu p<'r]',.iiir..«.n]I..,lu|K,n lo nuik-. any pMymonUmd.M- (h.. o.u,„,uUe(' ..l' 11... li.l.' I'n.vmco lausl, how.v.M-, l,o pn-vidrd Ibr l>y Ih.. Arlurrulors Thos,vurili,.sorinv(-,stiu<-nts(mu.-rouiit, «.r Tms! nmdM, ),oin..- mrl ' I. ii '^''7''; =•''>■ <''V''""''I'l'*'''"'^''*'"''^l*'^>^iu'MMl ivs..r\' (i... viu.|,( '"■'""'•""' "'"'" 'oIli'Monsul.'nili.u. onhoAvl.ilnvtors. " IV.— INDTAX AXNUITIES. r.iv. Thi f;^^ ''"•'' '^'^' '^uiK-nut,.j.diMU-o ol'idi Jndii.i, riu *v ,1- h™7 .,, ' ' '■""'"" ^'I'P"' <^"""'t"- 1'ilun.uilioii as lo 11,.. hmds bd^ i^ wHhj t^v- .ror(h?r''"'; ''^'^""" -dividuds. Th. lh(- administra i'' sold, is .sul>ject to uH Icvval 'nd"m ta^^^^^^^^^^ < he arrears clue lor thos. n should tLrelbro be cd^arg^:! ^^Slt^.^^^.^^^^^^^^ ^^ ^^^-'■ romniniiitliestalem^.ntorii In ies i^L '"^''^-'^ ''""^^ ^^"°^^'*'^ ^^> the lands .nd -'-ars ..nlJ^S;;^!;;^:!!:;^;^^^^^ iVom \-21 '^. V.-AS;;^ETS IN SCHEDULE 4. i.> Ih.th .srHi.mol tho "I'.nlish North Amorioa A.-i, 1S(;7," i.iovi(l..s that lows : i;])ji<'r Canatla lUiildin.v j-'iuul. liUnalic Asylums. >lonnal .School. Court IIousos in Ayhunr, Montreal, "[ainourask;!. fiowci- Canadi ( ina(l;i a. Iaiw 8oci('iy, Uppor Canada. IMontrcal Turnpiko Trusl. Tnivcrsity Vorrnanont Fund. lioyal Institution. Consolidated ]\runi(;i])al J.oan ImuuI, IpiM-,- Consolidated Miuiieipal ].o;in Fund, Lower Caniui Agricultural So(;i(>ly, Upjx'r Cnnad Lower Canada Leyislutive Gran I. (^uebi'c Fire Loan. Tennscouata Advarce Accounl. <^U'bec Turninke Trust. I'Mucation. — liiast. IWiildinu- and Jury F'und, Lower C Municipalities 1^'und. Lower Canada Supei-ior Education I :ina(!ii. nronie I" UIH lese iissei,^ has l/f(>n I'ators, the undersi<>'ned - . the nienioranduni respeetiny tlrein, should jl respecting;- tliese assets. Tliev x ors is to lii(iu(l,> ih,. di\i,si,,}, The question of jurisdiction in relerence lo il already reierred io. T'ntil it isd(>cided bv the Arbit will abstain from :iny remark riu'ht, however, to su'bmit a short be deb'rmined that the award oj" tlm Arldtrat . and ad.juslment oi'ihe assets in the fourth schedul Inconeliision, the undersi-ned desire to state t1i:u ihe rorewoi,,... [^ htth" more (,i;in a synopsis ot ihe proposilicms of the Province oj' Quebcr Ihey will be i)repared tosiipi)ort the i)retensi()ns advanced in this nicnio- randum by oral anvumeiits upon the whole oi"lh<' subjects involved in this arbitration, or upon such iv,)iiits as il shall }>I(>;!se ihe Arbitrators to heir them. .o3, amount therein stated, to $26,95(J,552.52. ^•'.^•'•',- Assuraino- for a moment the ilirmv^s of Oni-u-'m Jo l.r. ,.^v,.. . •< i -HllhatorQuebee,mthoexee.«o'?clel>t,;voS "' •^''"■" ^"•^'^^^ 2,3H8;!.02 58 lala.n as a^Sie 'S^se Is?^^^^^^^^^^^^^ ^^ -. 447 4 2 - chap. 50 b Cv JiMCdoi*' /• /. !V .iiM 133 (a) ci;28,000 for works on the Otlawii, iiiiu Cl.GOO iO> ;t lua-l Jfuiii L'Origiial lu thu Hi. Lawrence Jiave bocu oniiiied. (b) X1,GGG 13.S. 4(1. lor Cleolo^ifal Survey are oiiiiM^J. Making for Upper Canada ■:■' 70 !,!r.7 1:-^ for Lower Canada "! i ''.'■' '^^ >^>' But as the popuhition oi" Jjower Canada was ihvn ow- half larger than that of Upper Canada, ih;' share of aj'j>rn- priations of tlie former, if popuhition had Jjoimi iaken as ;i guide, shoukl liave been 1' >ii;j,iN,'> f)S Less — Appropriated as ul)ovi' '("(•jAjC'S 88 Difference :^S,s3i»,21G 70 adding to this disproportion that of Ihe dci)!: as aoo\e :-,;' ir>,<;:'0 CO and the simph; inierest (though Quebec might charge coin- pound interest, and reserves its riglit to do so, if the origin of the debt is goiu^ into), irom ](U,h rel)raary, j:-'-}-.!, to ;'.U'ii) June, 18tj7, on the debt which Upper Canada ])rongnl ',n... 7,-")78,7l-l: Can this immense disproportion in the Ilnancia] ]>!>siti' n of th*: two Canadas be ignored, in the coiisidcration of this question, wi. out glaring injustice'^ Yet if the second mode suggested ]jy C);iiario for .In", division of the excess of debt is adopted, this will be its result. Common School Grants and Municipalities k'ruiu i(,r I'pp.M' Canada, the two examples quoted from the previous legislation, I'.r/ Jiwt iu \)ohii. The Municipalities Fund, Upper Canada, is not divided ;;v\:or(iiiig l<;^K)pii- lation, but, })etween the dilferent muniei]>alities, accoruin'.': to iJic. uuiuIks- of rate-payers, whose names appear on the a.ssessmeni voll ; n \ evy diUerenl thing. As to Common School Grants, lh(>y could only l>e im-'b' a( vording to population; the edixeational wanis of a (■(»univ\ '.".'in;i;, m' U'/ees-^aty, governed by the num1)er ol' its inhabitairis. 3. rii(JPORTION OK CAPITALIZED A^JSK'i S. The A.sscts which are capitalized, b('in<.'; ih'' same :'s (hose hs.n1 by On- tario to arrive at what it calls the i^roportion ol' Iceai dei)ts, and thereby to the first mode of division it suggests, the same o])jections ap]>ly io 'xttli ; but this third mode is less admissible siill, and is based on ]i'.!,(Hl fi)r iho lU (, o-ood opinion therein expressed in its favor, ulien rated as al)le Jo i>-,v §1,410,920.38 out of the $2,939,429.07 it owed that lund ul the sam3 date.^ ^ ^ Tlie Treasurer of Ontario is not so despondent. In his kst Budcrel. fepeeeh, (pamphlet pa-e 1 a) while ])earino- (Ins arl>itration in mind, iio sa^s speakmgot the Municipal L an Fund of Upper Canada, "//«•. F,>^d il a permanent source of Eevenne and mi--hl. he hm nrUt lo yield $200 000 i)d nrr annum, which at 6 per cent makes a capital of ^3,.r>33',333,33. Moreover, in this capitaHzation of Ass.Ms, iJie value of those wliich seem to have arisen m Lower Canada is set down, in the case submitted for Ontario, at one half oi what IS f^iven ]>y Mr. Lan,o-ton as theirlace value • though, taking them to be what Mr. Langton stales, one million of them arc nidebtedness of that part of the late Trovinee and therefore /.« real assets; and others, such as the Quebec Fire Loan, are known to ],e for the most part worthless. On the other hand, those in Up,x>r Canada, which according to he same, are almost all v.lid Assets, are capitalized at le^ than one-third the same Hice value. Nothing further need be said to show the unsoundn-.ss of tl mode of dealing with the debt. lis Ihii-d THE SCHOOL LANDS. n, . ^U^''"'!'' ^/""T/^^ i);t^wn the unsold school lands and the balances due upon the lamls sold. 1 his claim cannot be allowed. Reference to the law (Consolidated Statutes of Canada, ch. 2(5) cannot eave a doubt as tx) its creating a trust. 1,000,000 .cres of bu d were, un ler the law se apart and appropriated by the Govc-rnor in Council foCom mon Schools; t^aey were to ])e sold by the Commissioner of Crown Land and the proceeds, whether invested or not, were to form the Common School lund, which was to yield at six per centum !r;400,000,00. The capital of the fund to yied that amount yearly would require to be ^G,G(JO,GGG (56 IS also enacted that the Fund or Licome thereof shall not be a ienat ed fo • any purpose whatever, biit shall remain a per].etual fund for the sap,>m o Common Schools and the establishment of to^vnship or parish libm lies Lnti the fund produced $200,000,00, that amount was to ]>e completec 1 m he Consolidated Revenue Fund and divided (according to population v he anter or census,) between Upper and Lower Canada. It is ev le t hat untd the amount above mentioncMl ii^G,GGi\mc>M is cr(niied from t le lands in queMion the unsold lands and the arrears due on those s^ kl a . iSr:eSi:i?^^r^tSrSit!!::i^^^^^ ^^^r'r^^^ rf'^ Canada as direct an interest in both (liSs t^ thf LoS;L to. ^X purchasers of the same as Upper Canada ? Such is, at all even 7 he opinion ot the Treasurer of Ontario. In his ikidget Sjieech, (pamp k>t p lb, speaking ot the Common Schoo Lands he savs ■ " O/V/./Jj / , ^' due fortkese lands, there regains nneolleeted:,:i:Zi a.^il^r^^ 00. Of tins amount, I assume that Ontario is entitled to /ivc-ninth^' (LhlTihl proportion of Its population m IHGl to that of Quebec). The Assembly o^^ < I' r H 135 Ontario may movoovcv Ix^ Haul to liavo assonted to this statemdit by itis sik'nce : iioiio of its members having oxpressed a contrary opinion. CLAIMS AlilSINa OUT OF TlIE SEIGNIORIAL TENURE ARRANGEMENT. Under this li(>ad, tho Province of Ontario has assumed to g-o into an investigation of the origin of a ])art of the debt of the late Province of Canada, for the purpose of urging a large claim against Quebec, composed of the dillerent items set doAvn. If this is intended as a separate and dis- tinct demand on the part of Ontario, the Arbitrators have no jurisdiction to deal with it, as it is not a " debt' nor an " asset" of Upper or Lower Canada, within the meanhig of the 142nd section of the British North America Act, 1867. If intended to be used in the division of the excess of debt by its origin, this mod(? involves not only the consideration of these isolated items but a thorough investigation and analysis of the Public Accounts during tlie Union, and of the iinancial position of each Province when they joined. Quebec might, witli equal justice, allege that, supposing Lower Canada to have benelitt'd by that Legisiatiou to a larger amount than Upper Canada, it was biit a small compensation for $7,578,744 65 interest paid by United Canada on the del)t of Upper C^mada since 1841, for the $3,11)2,767 SB excess received by Upper Canada from its Miuiicipalities Fund, for the $425, 527 62 which Upper Canada drew, under the name of " Upper (Janada Improvement Fund,'' from what should have been common Those three sums amounting together to ii?ll,lf>7,030 65 and for which, as well as lor many similar ones. Lower Canada received no compensation whatever, can fairly bo opposed to that claim. It is moreovcn" contended that, the Legislature of Canada having made \vhat it then considered a lair compensation to U])per Canada for the burden which the abolition of this Tenure threw upon the Canadian Treasury (Consolidated Statutes Lower Canada, ch. 41, sec. .'57 and 87,) and that part of the Province having, })y its members in both Houses and in the Execu- tive, agreed io and acceptinl the bargain, it cannot, under a new state of Ihiiigs, set (Hit other claims for pretended inequality in the then Legisla- tion which was final. Quebec reserves Io itself ihe right to enter into a s]iecial examination of tlu^ different items of this claim, if the origin of the debt is inquired hito, l)ut cannot dismiss its present consideration without noting. 1. The enormity of a pretension, which would give Upper Canada (or Ontario) over $6,600,000 00 of indemnity for a legislation which appears, by the statement or]i;tl)ilities. to have been altogether, including the in- r Canada and ihs' to\vnshi])s, a charu'e of little more than $5,000,000 00 on Ihe Consolidated Vnnd. 2. Upper Canada was credited for the lull amount «d' its seigniorial in- ocmnily, wliich, in sclu'dub' A. and 15 in the case of Ontario, is not only crcditcd Io );m1ui'(> i(s shar > <*!' local debls, and therebv, bvthe mode it sue- 1-'])! 'Si.'-, li.s isiiavv' (s ofLowov Can-uir A V h vii ^ enumoration of th. ^o diminish ils own ^Imro d" tWxoo^ i^S'^^C^^^^^ f "^ ^^h?^^^'^ ^ amount against Quel)ec as a d '.'^W -^ ' • ' • T ''^''""'' *^^^^^ ^"11 And tlio«c?two amonnt« In^in ^ inri;' /''"i'^'^'f "^^ compensation, conjoint property of Oi ia • o a^u' -hn. ^ 1 ' t T^"' ^^ *^« ^^'t' th(, a« «uch. Tie. We o^X. .^^.^[rceS;^ ^t^f^^ ^' ^^^^^"^ l>ut L am^.d ^:tK ™.e l^it!;' -f "V^ ^^?[ ^^^^^ ^^ C.orenneni, abolition of their viffhts "^^^^'nmity duo the seigniors for the 5. The receipt.s from the »Sei'vniorv ntT .,„v. . i p - other licensee AveVe, as l)yIaAvdh^Xl^n;i'^^ '"n ^"^"^ *^^'^^'^^ '"'^^ durintr the previous iive^ I To^;:,^; ^^^^^^^^^^^ ^^^^i"" y^^^^'^y ^n^era.^.e ]>roceeds 'ell afi-n^vard.,; compens.S^^ m 1 T^^ *^'^ """^''''''^ «t' "i" maintaini.^ that legislation Ibmi^^tri^r^^^ E /' ""'"'T^ '^ ho. changed everv y(>ar as those som-ro^ .^f ' J- ^ nevertheless monted.^ ^^oxdd (Ontario c!!;:t:..dZQueL^e^^;n"ho*lm""^" ^^ ^"^■ have been entitled to a compensation ? ^''^^'''" '^^'''^^'' ^^""^'^ • the l^^in^e^FS:^:^;:?!;^;:^^^^ ^ "f ^^--^ ^f debt of mado out },y Ontario in its case " ^^ '^ '''"^''^ ^« ^»"»'1« ^^ ai, the mode, mt sted bv O f! "" n^ '■''''''^ '''^''^■ ^vllh the I'rovineo in ^v hich i arose IvoulJ if' ""^ l'''\"'« ''''^' ^«'^<"« (li.^ L--islator, and to the la v If ^nl ''^-''^'^ ^'^ *^^*^ infontion of :^&iS^;:o;;&^ .udt:^y;rz^;:;;s?;;."s-ii. t^Srt;^^^^ ^^ ^-^^ -^ ^^-^^<•'• <-ase ol Oul.rio or to any oilier claim w d *^V 'f^''' "^ ^J^^^^'*^^' <^ ^'i" advance here.fier, .u.l also to ^ulm i< o i ^i^?' '"''^y ^''' ''^^^^^^'d i.. vviiich lh,> cireumslanc^s ol e^ f, , '^;.;::" 'r^^^'^ ='>!yt"'-therdeman.l counsel miy statements or aro-mmm h : i<.hf ' '"'^ "^'° *'^ •^"'"^- '>V il> ^'^^- -^«^^> ov .nv point of it^rd!;;;,':; ■t;^^;^;;;;:y,^;'" "^'----t to eiucfdaie N. CA^AILT, r ARBITRATION BETWEEN THE PROVINCES OF ONTARIO AND QUEBEC. STATEMENT OF CASE OF THE PROVINCE OF ONTARIO. 18 AKBITRATION BETWEEN THE PROVINCES OF ONTARIO AND QUEBEC. U STATEMENT OF CASE OE THE PlIOVINCE OF ONTARTO. +1, J^^^,^^'^^'"^^'^'^^<^^"''"'i*'«ii'>ini*«tli(vlol]owino- Stotomont of caso to the Jjoard ot Ar])itrators in accordance with tho resolution adopted at their last me e tin or. The Province of Ontario has in preparation of the case, arrano-ed the subji'ols lor consideration xmder the Ibllowing- heads ; 1. The whole debt of Canada, at the time of the Confederation, and the exc(\s.s ol that debt, beyond the sum of %;G2,r)00,000, allowed by the 112th section of theact of the Imperial Parliament 30 and 31 Vict., ch. 3 calJed the British North America Act, 1807. ■n •.•^; T)^^^ ainount and specification of assets under Schedule 4 of the British North America Act, 1867. 3. The proportion of the whole debt of Canada created for the local purposes of the present Provhice of Ontario. 4. The proportion of the whole debt of Canada created for the local pur]ioses of the present Province of Quebec. 5. The proportion of the assets belonging to the Provinces of Ontario and Qnel)ec respectively, 0. The division of the excess of debt bevond ^02,500,000, between the Provinces of Ontario and Quebec. 7. The division of the assets between the ProAnnces of Ontario and Quebec. 8. The ciuestioii of the School lands. 0. Cltiinjs arisinor out of tli(^ HcM'g-niorial tenure arrang-ement. 'l lllillllll 140 No.l. Xo. L'. xovth A"n™;™'l;:;:'i:;;r'''"'''"" -'■"'^'■'■^ •■■' ■ ■^- ""■■ ■^ ol'lljo r.riti.sh The amounts and snocifirat marked A. loiKs arc shown on Hio Schodnlo Ijoreto Nos. 3 and 4. The proportion on}if> whole dphf nr *'. i . , purposes ot- Ontario and (^aob;:;?tspecm'V'"''' ''"'^'^^ ^'"'' '^'' »e local ;;n Jg: jT^jzSi- 1:^x„,i; >;;';,?t?'t {= No. 5 , The ])roportion of the assets under Sfluvlnl . i i i vmces of Ontario and Quebec, rc^speSivd^^^^^ " '''''^'"^'"'^ ^^> '!»•' Pro- No. 0. The divisio}is of the excess nP »lt>i.f k^ i , ui«^ ^' ^ ' W. I Ji HW ..^- i^-y ?- M«r«n. = .. 141 of the rroviitrc ol' (,)ii..])Op. jukI Hk^ Ti-on iiici' orOiilurio is williii-'- thiit lh< proportion, lh:il it shiill hear ol' ih,. ,.x 06 deter iniiMHl M\' ii, fluir«>(> ii'riiin.st ii in u ratio oroill • M'ss ol'tlobL uhovc !ii!(J-J,.')UO,000 tihall SI'S, loll local puri)o fespectiM'lv, nccordiny to |{m> J;isl cci II' I'XTi'SS, n lev its (l('l)t, froatodlbr 1- ol' Ihi' ])o|)ul!itioii of Onhivio niul Qu('l)ee iMis, oriipporlioiK'd lo llic viiluo of the aswots of ro(liir.'d for lln.. Jusj | interest u<>i lo hi. iillov.i'd hi'vr.nd be w averajfc onr viw^i mid u luiU ; Init .suoli IMK ix ])i'r (.'ont wlim' the :ivov;i"-o 1 enmoiv ilmn six per n'lii. The ivsuii ofi-M-li of llies,. hhmIck upon tli rtifi<^i~l'. .ii...ll..,i1.ll..* I'll 1 ' .111 * basis oti cri'il I) V Ihc J ro\ iiK'i' life Milario iis l'o||o\\s Ex ^■<). 1. J'liOroiiTIOXS O'o LOCAL DJ^J'.TS. )ls ol' Uiitavio and Quebec for local purposes i'ifl7,T;1.'')>7!) ',2 ' ' s:J0,7ya IMi !'01,04fi lit Del Local Debt of Ontario ^....^ {) Local Debt of (Quebec 7 ei. 'ss of Did.)t of Canada ]n.o;{0 Ot)-j > <»■) •l' Ak ili(^ toial local (lebl, !f;lT,T.'u"),rj'7!>,')2, 639,55;{,!i2, so is the local debt of Onl; is to iht! excess of the del)t $10, debt of Canada lo be h bee prod vrio, !«'9,s:j:!,7:i;V!-^ io I ho amount of producinu' I be J'nllowin''- resnl ereafler bovne by Oniario, and the same as to Quo- Total local deb '^iilario '^17,700,570 .',:.' Local de1)t, Ci Q'l'J 7'?'> '>•' '^ i',00-->, * O'J -J-) Qn ehi-e Total local debi .^17,7;^{.. Mil :>:i Local dol)t. ■ ^ 1 !>01,04t; l^xcess of debt, !5in,o:!!),5o:; 02 iv suit. :•< .'),84:).4it; u\ ICxcess of debt, !rSlO. '.oO.').^;; !>2 and thus makini"- the Province ol' Ontario lial ProA-inee ol'<^hli'bee liiibli' for :< 1.(1!) 1.1-17.1*1. tie liesult, ^ 4.<;!t4,i:!7 01 for s.-,.sbj.41(l.0l, and tho No. 2, The population of the Proyiiifi^s of Oniario and Quel the last (.'ensus in ISlil, showed the loll >ee. according to owni'^- numbers: Oniario, 1,JJ!)G,0,5 oU 92 ^'~~W!iil 142 ^" ' __ <>»^"'"J'» -',-.07,G:,7 Local ropulalioii. l,.'5!M;,<>t»l ,, , '^''^^'iiropuliilioii. V'"''"''' 2.o07,(i-)7 I^ocalpopuijiii,,,, i,in,.5i;(; It l'A('('8s ol" Del,! iS .•>.^)''■ ?„ ■7;"", '^'•''"''"1- I' ;u„l "'■ " '"'"' "' ^^•^''^.^'-^•i ^. Takii,, ;^:i;:;;^';; CL'";;,!':;;^::';; Ij;;;;;;;;" " ^^ Total Capita]i::o(l Assets (Capitalized Assets, Ontario * ^,'-'04,:!im !:> (Capitalized Assets, (Juobec' lM17..'li'0 'tii Kxcess of Debt - OST.Ool i;; , ,, ]'»,-,31),.-,.3;j .(.. ana the proportion will be as fl.n fn+,1 •. ,■ o.l assets of eaeh ProvinJ" ^^ 1^?^^^^ o m"? Z;"';!^ '"''' ''' ^'^ -'>''^''-- l>y each Province, as foJloWs : '^ ''•''^* '*• <'"' ^l"'>t lu In' home. . Total Capitalized Assets Untano li; 4.204 :'r22 l-> Excess of Del )t, Total Capitalized As{0,;5-i;) U2 Quebec . '/•?^;^'/"=ipiln]ize,lAss<.(s ^'-Ml(.;!2() (ID i Result, ^'>,-mdS4 41 T^ocal Capiia]ize<] ,\^,,.j. licsiili. 4 •; ■:* m s oCl,. l>t, NO fill' CXci 'SS ul" Ill* ■\:) ^'l''>\ ilK'Cs "T,t;04.:].-,, J'i Jk'ivIo. '<'>^ n iiiid •^",""1.1:!. ituul : '1 1.-: •J ■'■ [i-j '''•|>i';iliz- S('(s, ■'■('ia. $ 143 ilms iiuikiiii^- III'' ri«'\ iiicc ol' Oiidiriu li;il»lf lor ,s:,.:^()4js4.4|, mid jj,,, i'ri)\iiu't' oliJui'lnT !iii|)l(' lur !iii,"i,L'-")"),.'Jti!».,")|. Tin' rro\ ijic rOiiturio is iniiiljh^ (o ,sll^•^^(•^| (or the couhidiTution ol' ilii' Arhilmtors uny other basis upon wliicli adivisioii of ilic (lcl)t oouKl JiiKlly lie iiiaiK', aiKJ the reasons lor ouch iikhIc oriipporliomiu'iii as ioi- lows: No. V ll is clear ihal <>{ llu- whole dcbi ol' ih*' hiU' Pro\ iiici' olCaiiacla, ."slT,- lHo/)V.Kf)'2 lias hcfii incurred lor Iho local purposes of Ontario luui (^ehc-c. Of this suui, ill the eharud ai-aiiisl tin? JJomiuion tlovernmcnt of !ii!02,r)00r 000, !ii>T.llM;,02r).t»0 has been absorbed, loavini-- only s10,"j;iO,.")r).'].!l2 to be ])r«"i- vidod for, iiiid it seems a fair distribution of this sum that it should be borne by the icsijeelive J*ro\-inci's in the proportion in Avhich thev recoivcd the monies raised for local piirimses, and of which it Ibrnu'd a part. No. 2. The rarlianieiit of Canada itself adopied this aj)porti()nment accordin"' to iwimlaiioii. Nvhe.i deaiini-- with tlie Municipalities Fund for Upper Canada, and that fund is still so divided ; also as to the Common School (Irants. This basis of division would se^'ni to carry out the principle of No. ], and would have the concurrence of two things: the lary-er popula- tion, and Die receipt of the greater amonnt of money for local purpo.ses. No. .'5. This'ba.sis of apporiionnieut of the assets was ouifyesled siiu'e the com- mencement of the Ar])iirati(»n, and can only l)e used as bv agreement, but it was considered a just proposal, as these assets arose from ami formed i)art of tho debt of the rrovince of Canada, and were not for General l)ut for local purposes, tliat their value should be ascertained throuLththe ainiualavera<»-e income for four years and a half prior to -'{Oth June, IMOT, deri\ed from the institutions owinu' the several dehls which lornu'd the asset.-;, and thus be made tho basis for ai)portioninq' the debt itself. No. 7. The division of ihe assets between ilu' Trovinces of ( )ntario and Quebec. By kSchi'dules A, ]). and 1'], the Province olOiitario has submitted to tho Arbitrators siaienieiits of the assets to be divided, and the manner of division. In proposiiiL'; this division, the Province of Ontario has loft each asset with the Province iu Avhii-h if, arose and to which it seems naturallv to be- long, and it is beliexed tiial no mor<' fair or just division can be arrived at. The actual vaiue of Ihe assets, if taken according to the proposal of capi- tn]3>:atioi! on ihr- avcrau-c ineoiue of four years and a half, as shown bv fl'- 1!4 hchoclu OS IJ. a.ul ... is ....,.. or.lUs division -v ulthouo-h the noimiuil par vuliU' orUu. a.s.sn.s a;s a(-iled in il.v. i ^;'''' '•/'-• shows an excess ibr Ontario of $2, S2(J,r.71 40 t e Sn 1 -•, ^'■^^^^* " ^"•"'' ed. gives only $30,51118.! more I Ontario than tl. '^Ildlee. ' ""^''^'^'" Xo. 8. THE SCHOOL J.AiNJJS Those lands are derived altoo-ether from the I'rovi...... <.r«)n, • , that Province claims the uliole l)alanee, ^vhet^^Ler o 1 , V. n ^ ''^^ remain at the time of the Coniederation. ' "'^"'>'' ^^'^^ come of|4.0,000 pe; annnm! VSi^'^^oJ/d^^i^ n^ th^^^:^!^^ ^i^!^-:^- ^^.^^- ^^:i^ inalr Avith the.e funds ro,!^^a J^I^fl o the manner in are allowed to form a part of the ovne nl 1 4 f ' [{'''^'^'^^^^^^^ whir], tario contetxd.s that since ConiWIeration u^ e Liu^o/.^ rrovmce of On- derived therefrom, helong- AvJioliy to h.. ■ anc'th- ''^"r T^ ^'''''^' ment appropriating the'^ands Lul p. n' L tv t 'r' '^ •^''' ^^"'''•^- the land., snch as tli. Mpporticmmeiit of tl fn-rnit in • ^.n;«^-'\f.>""K.nt of the grant from the Consolidaie.l l^evenne oP r , . " ,';' ,^^^, "^'r'' ^'/^ ciencv in anvvear. an, inr.msi.i.o.i „.;n . '''^'^ ^J' ^""'^'^ iM> I n s; 14; 3. Jesuit Esti.it*' oiirriiMl to crodit oi Siiperior Education in Lowoi- Canada, M'itli iiitorcst from -itli May, 18;31^at(j percent " '.. 02,58ii bS 4. Quint and arrears of Quint with interest from 4th May 1850, at 6 per cent 103,544 00 '). Part of Capital of Hi. Sulpice, with interest as above... 1{)6,'719 GO d. Indemnity to the Eastern Townships, wilh interest as above ^oOjlO 00 7, Income Fund, Superior Ediication, L. C 47,68S> 04 8. Diflferenco between capitalization of estimated re- ceipts from fSeigniory of Lauzon and Tavern Licenses, and of actual receipts 7a,258 00 0. Five-ninths of the actual capital from item 8, the re- venues from Lauzoii, and the Tavern Liccjises remaining now with Lower Canada .^422,880 80 The Proi-ince of Ontario contends that its claim to these several items is sustained on the following a-rounds : As to item 1. The Indemnity capital for Upper Canada for thu Seignio- rial Fund was !;?2,Lns,o,3r> 30 The interest thereon 1,350,617 1)1 68,500,173 30 The interest on the L. C. -Municipal Loan Fund was 3,517,084 20 Difl^rence $ 52,080 04 For which Ontario has received no compensation. On the item 2. The arrears of ini erest on the Municipal Loan Fund of T'pper Canada having been charged as airainst her, the arrears of Lower Canada on the similar account, amounting to i:i;782.742.83, should be charged against JLower Canada. On the item 3. The lund from f.ij .lesuits Jistatt-s anus curried to the ereditof Superior Education in Lower Canada, to the ainoimt of $02,583.83, lor which Upper Canada has had no ec^uivalenl, As to Item 4. The capital and arrears of Quint, mtjo iueliuled in (he general capital of the Seicniorial arraiiiicment, but were not ascertained, and the amount has now to be accounted for to Ontario to the extent of $103,544.00. As to Item 5. Part of tlie cai^Jtiil of ihe Seigniories of St. Sulpice, ^100,710. 06, was, by the Act of 1850, made a charge against the Lower Canada ^Municipalities ly 14ti thereon. it should bo p^ilS^rr^nho C:r:!lid ^l''^ lir^^ ^^^^^ this Fund IS not now, nor is over likely to be ablo to nVv f n,T • '^ ""' titled to compensation for it. ^ ^ ^ ^ '^' ^''**"*^ ^^ ^'^^ As to Item 0. «T.,-r,J^'I-t'* *^'^ ^fi 8'iif i-i-^l Aoi, ih,u-e was ^.,t upun for the Eastern Town ships of Lower Canada, as not beiii-v ini.Mv^l.Hl i, +hn <; -f^^'^il^ru lov^n- tion, and as their eriuivalent iC^^vt^^ ^ ^it^V^Z't T'T^^' Townships are a part ol" Quebec ()ntirirrhn/ rf^ i \* f *^^''^' sum. it now claims compensation iS it. ^ "° equivalent lor that As to Item 7. pe J&rtS?™ ""' ^"'"" '»"«"? - I'"" - ="'d On'-ic, claim, com- As to Item 8. •« u iv^r'V;; ;•: !?12,9/il n/i iioni lavern Licenses... ^7,115 oi The actual receipts a\ ere : ^^^'^^ |50,0GG Gd J^auzon v the form.'r is. co., , , , . " 1)ylhHa(l.r •V^iif'li:* ^'> 'i'o '>^' nmipensaied to Oniario l^i^^J^^i^, As to Item !». The capital produced iVohi jhc m,.'!, i Quebec, o.ta.io i. e„m,.d <« i-^mit'J";;;:^.;:;*,;':,/^^^'' "'' The rrovineo of Ontario cl'iim^ M... ,.; i ; i upon the consideration oi^lhot^'^Z^ V'^'^ 7^ l"''^'-^- "'='^"- Its claim now set forth, uv in answer /o -niu' i '""•', ".' '^<^^''^"<' "'ih.T oj, make by its Counsel any ^ini::::Zl:Z;^:i^^^^^^^^ -.1,. ftirther to elucidate the cas,. h..n.]>v i.rcv i 7. ""' '"''>' '*•' necessary Province of Quebec. ^ I'Hs.ntcd. or lo a..s^v,.l• llic rase <,r t|,-;. ) >, ?«^ ^m 147 was pro- ! interest 3, and as rio is cii- l To\Ml- onunuta- as these, ior that ims com- 65 01 1;; 40 >ll iUul , wJiicli ssioii oi" inntitTs I her oil and fi> I'cssary ■ "ftlic Statement mikwlnci the dk A- A.« BT OF THE LATE I'llOVINCE OF CANADA. „;.„f debt a?ilo do T'ublic AocHiunts IH'u. pug . Indirect dobt assuiu.'.l by Doinimon R. fo Montreal rourtHuusu J.iiw fs.-bool, Tan.lj sold during tho existcnoo ot tho Lands, sold during . ,, , , ,. , Upper Canada Imiirovcniont !• und, from the' day of the abolition of that lu July, 1867.. 1 .7:i;i,21!-l ;;(i,Hi)ri '.);"., tilll) 47 and to Itft; Lena— Investments (Quebec Turni)ikc Trust ■ Arrears of Interest !,S!0,1H) J2.4,6.S5i .13 iS.OOO 00 fil fi2,734,7'J7 lf>0,400 cts. 03 00 Upper Conada Grammar School Fund T^=._Tnvfi.atments (City of Hamilton Iton Debentures) Upper Canada Building Fund ••••••••• "••; Less— Investments (City of Hamilton Deben- tures.) Arrears of Interest Amount charged in Error to ConaolidiitedFund ex pended on Account of Lunatic Asylum Uuil dings, Toronto, in tho year ended .fOtli June, 186«and 1807 1,573,808 90 1 ,r,08,5."0 S7,0S0 Lotrer Canada Superior Education Fund Leg! Investments Huron and Bruce Debentures.) Lcsi— Inrostmcnts (City of Hamilton do ) oO.OOO IO,:-00 f)6,fil7 iy,400 (;0 00 00 ID.OOOl 00 Normal School Building Fund... Superannuated Teachers' Fund. Compensation to Seigniors, (Capital) j^eiirniorial Indemnity to the X.jwiishiis, (( apitol)... Seigniorial Indemnity Widows' Do f pensions and uncomniuled Stipends, U. C. ,lo Lower Cnnudii. MlSCILLiXKUlS LlAHlI.lTIUS, I'iVAlU.i: IN Ca.SH. Court Houses, Lower Canada. Montreal District Council Publio Worlis (special) Carried over,, 3(!2,76'J 60,000 2a I 1,520,959 312,769 29 04 li)t5,417l •'Jjl 3T7,25l| ooi i!',),400 (il.7C,1 2,700 00 1,472,391 347,851, 61,462 :i,ll:!,100 756,710 J9,3i)8,:i54 50,1 4.S 4,120 * 54,270 41 53 72 02 00 62 H4 31 1.. 4,061 ;:,ol2 12,711 I $72,337,822' 40 aaasam ( - lit 14H Brought forward Municipal! ties Fun.I, rpporCanada I pper Cniiiula <.iiaiiimar Solmol income Fuiiil J,i.,, \ „.,,,, r, „,. i„t„r,.^i ..,1 luvcstui,.iii!..'(Cit'y of Hamilton Beljontiirc?) TTppcr Canada IniprovoniPiit Fund prior to abolition oi drdcr in Cminfiil r.pss— Re.'fijit in foriiirr voars rovcr«t'd' i l{cc«cips of Coiiimnn .School Lain! sold dilri'n'"tho .■X1.401100 oftlif I piicr ('aiiada IniproviMnent l.im, Irom the .lay of tlic abolition of thali Pnnd, to 1st Julv IhCT | 1-oth Kccipts on Crown Lands sg soVd ■«ud"mo:| m.'y su rooeired i T2„'?3r,822l 40 is'.iimii oil .'..ISO; 04 f.Ol 08 .:24,6S5I IS lOl.Tri: t'8 Cinip nsation to Prigniors (arroar'^).. i Balan«> of spetiial appropriations, Untiirio;;".;;!;.";;;;j Amount p«id by Ontario for ?urv.--S'or''lorod 'prior! ♦ojst.Tnly, ]m;7 ' Ton per oent on piin^haso niolloy ■■($i,sr,oV;ij",^0)".",f t.ia Canada Land and Kmi-riition Co„i„„„vi U:?..i5:!l 6«i: i! I 1 I I'-'.lCrj 65 '< .■'.HO' OS, L'6,4oC 86 :l" ~H ssi.oro 8-1 72 a.j 21M.47:{ .^7 93.682 20 7,074 01 7,r.jl| 5,", f') be reiiaid to the ompany iis per agrociiieni fur fho ooiisiruotion of ro,'iil<. . . Less-1'aid thoroou by the Provinoo of'canada; Seigniorial Indemnity to the Townships Banking Account,, ,'iOth Juno, Isr,;, „„un„j J Iloiniiiioii ^ -^ I i;ui)iiow,^k,, sp;;.'ir;i;'d;Mieat7pubiiework- « apitalizatlon of Annuities T.-oont «t whicij £7;i,iin(i ;to;i„;;;"iWi;;:u;;nM t.iken from the B,n,k of Montreal at ,,ar .ht agreement, were jda.-ed i„ ,|,o .Sinki ,r F, „,i! Less-Pn.mnim at whic, j:il',.„)1 j;^- ad d i.'l ''"■MnkiiigFiind, :ii.th .Juiu-, 1m;7. niL^htl iiav" bceon iiiv(.«,('d " ■ ;',177| H8 ,; ;3!1 12,92Si 371 ]:!ii..'!i7| Jy 1,1149,011 57 ;i,0'Jfi,415 22 7,28S Oi '.t'.>y,H;;j f>» i".i8.i; m SO.SO" 42: IS,.-!??! 24 i:ip.ndii«,„ on .\,.,.,„„„ „,■ ,;„, ,„„p,„^.i„ • .'UKula to ,l>o ;;orh.rMn.., Jm;s, |.ui,|i, a.-.i'I "oimfs, J8ii>!,.. ' Le9s-Miii,iaciothin;;";;;;iK;;;;i;,;;;;;;;;--;i"v;;:! proved I'lreaniis ' ' ' " ; rneip.nd-d Warrant .-anLMii,.'!'. |i fhis Mini iwico inciiukd... |i uratui.ies u, iMiM and o;i;,;-K;;;,;i;;;;:;;-;;^Vhe J".'n«te eharitrd m -^aid .■.xiwuditiirc I ! ?77,jn,-,,rso 03 I I 2r-,(i'.i 2,041 2'.'.S)^ 1867. ^— -Continued. ' 'i \J oo(( i 91 'pts. !i;..«0 00 Brought fonrard ji^ Intorost Account llS.O.-ir 83 }r.c.oiJ, «( I > I Advance ig 7 Advance nv,u>,su ,sv .u:uy P,x„.-r.o„KH rAXxnA. r i Advan-^o A'-«;ouiit Muv,ebehture.<< Issued Book Account Adv«uce. Irt-.VICIPAI. |,,ux FrSD. Capital Account . LM»-At Credit of Siuking Fund I^M-Capital of Indemnity Account, liuterest Account f^hort charged I^B«— Interest en Indemnity Ac '•ount. IM<>.M.\I15 AlCH^t, In judg. 0. Loc«!dci,f. to y. 18,^*0(1 1 p().. I '\\. .MOjOOO 429,548 rt;j 00 ■i,J17,UJS «5 *'<,j]:.06.t| 2rt i,' I 94 $«.870,451 .^; _2,218,555 Si) I ;' -Mfe,-.)!!!) .-i. S«,SOl) 00 J.i'sOlo, 61 ARDICCLTtKAl. SOCIJtIT. Amtant Adraueod '' ('.s]»,363 .S3 •t.UOOi f« lender geiguiorial Act, isj] Under Seigniorial A.t. \h:>.>. I 9,*08,7i'8. (5;' i| l'«i,j&r,o2o| or " ■' p t ■ • ! I I j| 9.S33^I S3 ".l»0(,f48 IP ■V i Iji 158 C et8. oti». S«,800 00 (i )0,j III ].i'',Oio, 61 D''UofCauaducroatourposi!.s. •'.^18,362 S3 4,U00| CO Amoont ArJran Amount Adenn-ed ■4 A'iTaDfe Advaue6 Ad^a/ife Capital to Stiguiof, i Adratife. Advance. ( I »,S33,r;J3 S3 Advan''o. BITLDl.Nr; XM. .„ ,..,. „, ,„ LrciSLiTIVr (.BANT f^KI ( illiix. ^'Mrjj 51 28,49-1 _ 390 j 10 I'.'JOl.OifiMy' 20 LU 13. " »f T A U 1 o ASSETS. Avorn;fn ,ato Viiliiodipitali/.ra |"'r c'lit fur I at 6 jior ocm,. V. C. Liiildiiij; i,'„n,j Lttw fciufiiJiy, I,'. C ,"."., t'«..NSOMUATM. AU *„„.,, i.....vn,v„, I,,, I'linuipai... . ^ 11 lutorcit $(.r..-,I.S!i:, (,,, 1 iM(i((,4i;(; ;);V! AKriciiIturnlSu.';i.tv. |: C Ctl,i, ; . . i " into yot it isa «; ,1 a, 't 1 1 " ' " ''""'", "^ >'''"''- being I.I.I,, ,„ ,„fv ;' •'^'" '"' ^''^ """""'t. ll.» sodoiy Keveuuu liiq,tH;tyi^, I'Vc. '.'.". '.",'.'■ ■.'.■.'.'.■ Asgetg of Qiipboo A.SSL'TS. Aylmor Court .ir„„so I)ol,o„t,,r(, \,.,.,„;,,, ^ ,„„ , Ay mer Curt ll„„,se A.coum Cnr, a ' ' "-'"" Debeuturo Account •. Aocount Current r^n-i.tiiH) en l.S'.ii»i; ;m Kamourn.ika Point Trnnc* a „ ^ — — ' Thero aro ftV' I) "T^ ± '"!" "l'""'^' =?-"' ^'-I first .■hnr^',M,n ti,.- „.?'!' r.''''"'"'"''^-^ '^^"■"'i''- .'i' i..tcro.t on ,ho D..1,J, „ I" ; „, '1,^!- •;';'>' ^'f^ I.ay, out tho Account furrciu. liinpie tu h;|,(,' 01 ;i| 2.1100 0(1 ■'s yt'ura. 5> I ets. I i ii CON-.SOLll)ATi:i> .M i^'fll! yi lMfl:'AI- I.I) '>•■ I'W.'i, r., C, rrincipal. Interest... f'^'^i^haivc ^riir.t JJalanee of (i..tieit in KauuHUuuVilliM'i; """'.i;'! ' ' i 1 1 ''..iyfi, 2) ""I if I ■i",;i:;iv o^ ':hi .1,: Quoboo Firp I.(i:i:i, — i Uuililinjc anil ,)iirv l'!iV.'i,"(,"'(''' ■ MunieiiuilFuniJ, [,. c Regi.xtnition .l.-.',-, (i 'I., I It;. 17,,. .-,1 2..->-s\ :;s ■■:,Mt;(! iiij II' „.s I 11 ; '.Mil' ,;i) Aisets of Ont'rio ,j ^^M'.'I.O.;:'! ii", • ;' ".'iir.ijui ;;.-, '' >'l'.'>l|i._,.;.-| .,p " ■'I'.Olllil .i^> :'. •-'I, ;;.-< i.'.'s;-.'iPj.; ):i ■'. 'lr,."2ir {III r ^ I » ■ 1 if ■ n fi Viiliiooii|!itali.'.ri| at 6 jior coiit. $ IcN. ■'ii'.siin (10 l.>il,01.'- 81 L',ii>,,(iii| Sl.'-'dl, ;i8 Ull i:; ■nluoe8i)italizt"l at, t! jior ccui. h-h. n!,.)U()i 21 '-(II y( ri i » I' R- 1 AK-s vv K.r-^ op I I'KOVINOE (M.' OWT.IKIO '''" ''■'"' -^TATE.MKXT ( 'I' ''ASE (.],• f^'^"^^^^-^ OF QrjEBEC, '.'Ji',,;;,;' :;, ^"11! (i;; ir CXHTi OF IMJOVrP^CE OF QIJEIVEC. No. 2. DIVISION OF THE SURPLUS DEBT. Tho Froviuoe of Ontario objects to tlie statomont matlo by the Province f)f' Quo bee luulor this head, on the crround that the Arbitrators have no jurisI)or Ciinad.-i Crmmmnv Srhool Vna,', I I>1><-1' ' .'Uiiula l.'iii.Min- lu;„| hi :,ii t!i,vM. iini.ls. Oiiliiri.) h:}< ijir M, i' nih'f,'>i. Canada. ^ *' "" "J''''''''^ '•I'|>roi,riaiion. i„v Tpp,., WIDOWS' PENSTox, l. r. -""^ '" '''y ""'' ^^''•^'•'^' - ''- n>]vr ( vn..!a :Uuni..ip.iin.. K^^^^^^ (•i-ownLand.s.Sasi„M.s(> .\(.,.M,iiii trown Lands l),.pnv(i,Hii! inist AdvaiK'c ;\c,>ouiii ^ Hav.. all ho,.„sim<-koni,ai)a mv ;i„. .•..;>,■ . IX]HA\ .WXl ITIKS. Tho Ja-i'MV)- j)or|i,,ii o|' ill, 1'''I|1m\-,-av. a.sii,.,.,.,! ,. , , i' , ' ," ' >' ^^''J'" Jund.' l>v !f'^'-l Kevouuo. .ncl tl.Uan ;!,;^;^': 1^ " ^'' |'1'">. .h. Co,. tivaiyi.lsurm.doria:.,!,. !,v ,!,,. i;', ' '■ ,rV ": '-'"I'-tival,!,. undr, "• ^'- '■• ''•'•'iii-^o,i. ..,,m! In,- th.M, 1.-,!) )iU('r.\'- Thel ppcr Jointly does .^^^.Cih^f ^£^7 ^'-v"-- of;';;;;; ^'.^^^-^^^h.' ';«"» -.d i''^ ]-'u)i(i ll I !ii' CI"!!]..!'. ''^•♦. t'\:,-|r(! iiii.'. by 1!m' ■Jii iiiio 111,- i' I'jiioii. lo \'<> ])ai(l h'li t(l»> hy Die I' Cojisoli- I'! rciiiniii- imdcr ihc '!■ tl)"iii ail