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Maps, plates, charts, etc., may be filmed et different reduction retios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to ight and top to bottom, as many frames as I squired. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre filmis 6 des taux de reduction diffdrents, Lorsque le document est trop grand pour dtre reproduit en un seul ciichi, il est film6 6 partir de I'angle sup6rieur gauche, de gauche d droite, et de haut en bas. en prenant le nombre d'imagas nicessaira. Las diagrammes suivants illustrent la mithode. 1 2 3 1 2 3 4 5 6 32X jl^V-tbnv. Co\otNia\ 0?^ihc t., to Itight Hon. .i>ir K B.Lytloii, Btrt., n.p. 4 March i8jj. Enclosure in No. 1 . To the Qnecn'g Most Excellent Majcsff. Most GmciouB Sovereign, We, your Majesty's dutitul and loyal subjects, the Legislative Council and Commons of Canada, in Provincial Parliament assemblea, humbly approach your Majesty for tho pur- |)ose of representing — That the eflbrts and resources of Canada have be<'n, for many years, studiously directed to developing the trade of the St. Ijawrqncc, which is the natural outlet not only of the Province, but aho of the American States bordering on the great lakos. _ That almost the whole direct public debt, nmnuiitiDg to 7,000,000 /., Iia.* been created in view of this object, and the people of this Province huve confidently looked forward to the completion of our canal and railway system for obtaining su<'li a share of that commerce as might render our provincial works productive, and relieve our revenue of the very heavy charges upon it for interest on this expenditure. That by the outlaj referred to, the charge for inland freight from the great kkea to Montreal and Quebec has been reduced to ncarlv one-half less than to New York, but the occK!] freight from these respective porta to Livcr]H)ol is in a still greater proportion in favour of New York, and conaequently the trade continues to seek that channel. That consequently the nini ot tho Canadian Government has beea directed to the best mode of reducing the ocean freight to a par with that from New York, and it has been con- clusively shown, by the evidence taken before a Committee of the Legislative Assembly, that the large subsidies paid by the Hiitish Government to the Cunard Tine of steam shipa have operated as a direct bounty to the ports of New York and Boston, reducing frcighta to and from these cities, and so fiur defeatinpr tlic objects and interests of Canada, and drawing provincial trade lai^eiy into American innels. 1 1 2— Sess. 2. A That End. in Nu. », II ^P! PAPERS RELATIVE TO POSTAL SUBSIDIES AND 1^ ti.. That on the initiation or Um aCeam niail t w f i ea to Aiinrioa, tlMrc were no doubt cogent reaaoDK why the Ignited State* ports vhould be the ultimate destination of the Britiih ateam- •hips, and Canada never c-oni|ilained of her interests beiii)^ ovcrloolced in them orij^inal arrangementx ; hut of late years it hni* become painfully manifest to the whole public of the Provinec, that the oontinued micration of the lai;Ke sulMtidy to ve««els piyioff to New York and ItoHtoii was exceedinfrly (Iftrinicntal to Canada, and far overbsilanircd the coavcnicnc« of the mail iiervice ; and so Rtron^^ lUd the feeling become, that the Provincial Oov.irnment felt eomi)cllcd to undertake a direct mnil scrviee with Liverpool from the St. Ltwrence, fortni<;litly in summer, and monthly to Portland (United States), the terminus of the Grand Trnnk lUilway, in winter. That this line of steamers has l>een in successful operation for three ^ears, an<1 has S roved so satisfactory that the Cann'iian Ciovernment has contracted for a weekly service uring tlie entire year, at the hen • »• eost of .jSjCMX) /. currency annually. That the o|)erati<)n of the Canadmn line has conclusively xhovvn that the St. Lawrence is the shortest and most direct route to Canada and tlie Western States ; and it was the confident cxpcrtation of Canada that, when the {leriod arrived for considering the con- tinuance of the contract for the mail service performed by the Canard line, oonunuuicakion would have been had with this Colony ou the subject, es|)ecially as it had been shown by our actit that the existing nrmngements were not satisfactory cither for the mail service or commerce of this important Dependency of the Knipire ; and that, in view of Canada's having established a direct line at a heavy expense (although only about one-fourth of the amount paid for a similar service to the Cunard line by the British Government), and in view of the fiict that the British Gov<'>rnment has, in regard to all other Colonial Depen- dencies of the Empire, evidenced a desire to foster and i)rotcct their interest by granting large subsidies to hues of steamers established partly with a view to the extension of their commerce, and partly for the purfioso of facilitating postal communication, no renewal of the contract would have taken place without negodations to which Canada might b« a party. , That we learn, with much regret, that it has pleased your Majesty's Government to « renew the contract with thcCunard Company till 1867, without .iny opportunity having been ',' afforded to the Government of Canada to urge such arrangements as wouU have been conducive to the prosperity of the Colony. That the British Govemipeut has granted sabsidies to the following lines, vk. :— The line to the West Indies .-...£. 270,000 The line to the Mediterranean .... 244,000 ^ The line to the Australian 185,000 The line to the South American 25,000 -**fe / That tiie Canard line now subsidised by the British Government, althoush touching /fortnightly at Hali&x, is essentially a line to the United States, and prejudicial to Canada, the overland route vid Quebec and Halifax having, for a length of time, been partially and being now entirely abandoned as a channel of communication between Great Britain and Canada. That the said line is, in fact, « holly devoted to the trade between the United Kingdom and the United States ports of New York and Boston, in opposition to the British Colonial ports of the St. Lawrence ; thus placing the mother country in the invidious position of tostering foreign interests in preference to those of her own Colonies ; and that even if the grant were mwle distinctly for the. conveyance of the United States' corresuondence, Canada 18 prepared to show that the St. Lawrence forms the best and most rapid means of trans- mitting these mails in summer, and that the most expeditious route in winter is bv Pordand, and will be so until the intercolonial railway between Halifax and Quebec is constructed. That we cannot conceive it p«>ssible that the British Government desires to oreato any invidious distinction between this country and the other Coloni<>s of the Empire; and as there appear no other means by which impartial justice can be afforded to Canada than bv extending assistance to the line of steamers plving to the St. Lawrence ports, to which line the Province has already contributed as liberally as its revenues warrant, and tfaera exist very grave doubts wheuier the St. Lawrence steamers will be able to oontinne tMr sen'ices agwnst the advantages obtained through the subsidy to the Cunard line of steamers, we humbfy pray that no renewal of the Cunard contract be made ; that no subsidy be granted to any other transatlantic line, until Canada shall have had an opportunity of urging such arrangements as will conduce to its prosperity ; and that your Majesty will be gm- ciouslv pleased to extend to the Canadian steamers such assistance, by wav of subsidy, as will plaoe them upon an equal footing with other lines of steamers plying between British and Colonial ports. (signed) N. Y. BeOeau, Legislative Council Chamber, Canada, Speaker, L. C. Toronto, Wednesday, 2 March 1869. (ngued) Hienrif Smith, Jum., LegisUtive Assembly Hall, Canada, Bfoker. Toronto, Friday, 25 February 1859. ■t i. lubt cogeat itish Bteam- >sb orijjinkl iiblic of tho N«w York ;onvcnienc« }ov create any ^pire; and as '(than bv _, to which ^t, and tiiflra ^ntinne thar J of Btcamera, Id aubaidy be lity of urging Iwiil be gfft- If Sttb^y, M Iween Bntiah t, !<• C* I Jun., Speaker. P»: :_ I { %1» f THE INTERCOLONIAL HAILWAY (CANADA, ftc). — No. a. — No. a. Copt of a LETTER addreawd by the Delegates from Canada, New Bniiwwick, t^xw rr«« I>*<^ and Nora Scotia to the Secretary of State. 3, Charlea-Btreet, St James'a-squaK, Loadon, Sir. 'M October 1868. Tb« subject of an intercolonial railway from Halifax to Quebec has been so frequently and iu> fully diacusHed, both us between the Colonies interested, and between thoi>e Colunie8 and the Hume Govenmient) that the undersigned do not now propose to reproduce at leitgth the arguments which have been from time to time urged in favour of its construction. The late Earl of Durham, in his Report upon the affairs of British North America, suggested the impurtnnce of this lailway. The tint practicid sttp, however, was taken in the o^i^anitation of a surrey by Mr. (iladstone, when Secretary of State for the Cdoniea in 184A, which survey occupied a vunsiderai'le period of time, involving a large amoimt of expens-e, and to which ex|)ent>e Cauudu, Mew lirunawick, and Nuva Scotia contributed. Farl (irey, when Secretar)' of State for the Cole iies in 1851, distinetly {iledged the Irapcritd (juvernment to iiid in making the line by affording the mperial guarantee to the payment of the interest on the capital required for the work, and this pledge would doubUess have been carried out at the time, had not a difficulty arisen as to a branch line from the main line into the State of Maine, for the cost of which Mr. Howe, of Nova Scotia, also claimed the lowerial guarantee. Subsequently in 1852, Mr. Hinekt:, on behalf of Canada, and IVfr. Chandler, acting for New Brunswick, brought the matter under the notice of Sir John Pakiiigton, then Secretary of State for the Colonies, who in effect repeated the pledge of Earl Grey, but a difficulty arose as to the route. His Grace the Duke of Newcastle, as Secretary of State for the Colonies in the enstiing year, had the project und«r oonsidemtiun with a view to carrying it out ; the Russian war, however, 0fortuiuuely intervened, and prevented any progress being made until last year (1857), when Messrs. Macdonald fc Rose from Canada, and Messrs. Johnson and Archibald from Nova Scotia, again made application to the Home Government, and submitted to Mr. Labouchere propositions for the completion of tlii-s Railway. The undersigned have thus, but briefly, referred to the action in relation to this question as between the Imperial and Colonial Governments, knowing, sir, as they do, that you are fully ac<|uainted with its history in all its bearings, and that a reference tt> the Parliamentary Blue Books for the documents and despatches alluded to will be more couvinient and satisfactory to you than a repetition of their contents. It must be borne in mind, however, tliat the state of the question in the Colonies interested has been mareriiilly changed since the correspondence with Earl Grey and Sir John Pakingtou. At that time Canada, New Hrunswick, and Nova Scotia had not in fact taken any step incurring debt or Uability for the purpose of aiding the pro- ject; and it is propo&ed here to state liricfly what hais been done, and what liabilities incurred in the respective Provinces, towards carrying out this great Imperial and Provincial work. Canada has not only provided for the construction of a line of railway from Quebec to Montreal, and thence westward, passing through Kingston and Toronto to the western boundary of that Province at Samia, the foot of Lake Huron, but 40 miles below Quebec have been made, and are now worked for traffic ; and during next year a further distance of "0 miles to Riviere du Loup, uow being made, comprising in the aggregate 1 10 miles below Quebec, or 864 miles in^l, from Riviere du Loup to Sturoia, will be completed, at a cost to the Province of 3,1 1 1,500/. sterling, raised and paid out since 1852, to aid in the construction d this railway, and involving an annual charge upon the revennea of the Province to the extent of 186,000/. sterling. From Riviere du Loup to the New Bnuiswick frontier the distance to be yet made dependa apoa the route selected, the shortest distance being about 50 mild ; and there will then Ii2--Ses8. 2. AS be ■■let fraoi Caaada, N«w Braaswick, Slid NoTa Scoua to ibt 8«cr«tarjr al •6 Ociobsr list. t-\' i 4 PAPERS RELATIVE TO POSTAL SUBSIDIES AND be n continuous line of railway throughout the entire length of Canada, from its extreme eastern boundanr on the New Brunswick border to its western boundary at Samia, on Lake Huron. In addition to this large outlay, Canada will contribute the sum of 20,000 /. sterling annually, to aid in raising the capital for the completion of this important work. New Brunswick has incurred a heavy debt in the construction of railways. Upon the completion of the unfinished portion of the road between Shediac and the city of St. John, a distance of 110 miles, which are now under con- tract, her total expenditure for the construction of railways will exceed B00,000 /. sterling, tor which she will be subject to the payment of an annual interest of 48,000/. sterling. She has already giren lOO.OOO acres of land to the St. Andrew's and Quebec Railway and Land Company, and has pledged a further large grant of land, and agreed to pay an annual sum of 5,000 1, sterling to the same company on certain conditions, to assist in the construction of a railway from St. Andrew's to Woodstock, a distance of 85 miles, 60 miles of which will be finished this autumn. Notwithstanding these large expenditures. New Brunswick will now provide a free right of way, and contribute 20,000 /. sterling annually to aid in raising the necessary capital for the completion of the Intercolonial Railway. Nova Scotia, before the close of this year, will have opened for traffic Gi miles of the trunk line fircm Halifax to I'ruro, and a branch line '>f 3 1 miles, connecting the main line with Windsor and the fertile counties of the western portion of the Province on the basin of mines, has been in operation since June last. This portion of the trunk line has cost about 500,000 /. sterling, and the Windsor branch 300,000 1. sterling, the interest of which is chargeable upon the revenues of the Province, the capital having been raised upon provincial debentures bearing six per cent, interest. To complete the trunk line from Truro to the borders of New Brunswick there remain about 69 miles. Unless it be in connexion with the Intercolonial Railway, it forms no part of the policy of Nova Scotia to carry the line from Truro to the New Brunswick frontier, as^ unaided, it is entirely beyond her resources ; and a line is now being located from Truro to Pictoj], by which communication will be opened with the Gulf of St. Lawrence, Prince Edward's Island and the eastern counties, including Cape Breton. ^ In the event, therefore, of the present effort failing to enlist the sympathy and co-operation of the Imperial Government in completing the Intercolonial Railway, in which the general interests of the empire are so largely involved, Nova Scotia must turn her resources to the construction of the line to Picton ; and no hope can be entertained that she will afterwards be able to contribute to the Quebec and Halifax line, as all her means will have been expended upon the local lines already indicated. So deeply impressed is she, however, with the immense importance of this great Imperial and Colonial Railway under- taking, that, although nearly one-half of the line through Nova Scotia has been made and completed since the action of her Legislature in 1849, she is now willing to renew the pledges then given, to grant a free right of way, and provide and pay 20,000 L sterling annually, so long as it may be required, to aid in meeting the interest of the additional capital to be expended in making the line from Truro to Riviere du Loup. Referring; then, to the action of tlie Home Government ; to the pledges of Earl Grey in 1851 ; to the adoption of those pledges in effect by Sir John Pakington in 1852 ; and to the repeated admissions on the part of the Imperial authorities that the interests and integrity of the empire are involved in the speedy construction of this railway, the undersigned respectfully submit, that the period has arrived when it is essential that the Imperial assistance necessary be granted. It is estimated that the different sections required to complete the line from Halifax to Quebec may now be made at a cost of three millions and a hilf of pounds sterling. If the million and a half of pounds which Canada owes to, and proposes to raise and pay off at once to the Imperial Government, be appropriated, there remain but two millions more to be provided ; and to meet the interest on this gum, each province here Proposes to contribute to ,the extent of 20,000 /. sterling, in each year. The in' ) ia, from ita its western )f 30,000/. ion of this >f railways, (en Shediac under con- vill exceed f an annual of land to s pledged a 10 /. sterling uction of a 00 miles of cpenditures, ite 20,000 /. completion r traffic 61 '«r 31 miles, the western k since June ig, and the ^able upon n provincial ik line from es. ts no part of r Brunswick now being led with the !S, including sympathy ntercolonial y involved, to Picton ; • contribute lended upoa iwever, with way under- ia has been she is now f way, and Hired, to aid making the pledges of Sir John he Imperial lived in the ubmit, that e necessary le line from d a hilf of Ja owes t'l, rnment, be nd ti) meet »ute to ,the The THE INTERCOLONIAL RAILWAY (CANADA, Jcc.). 5 The British North Amerii'iin IVovinreii would thuM »)«• brought together and consolidated ; the |Kifttal eiinnnunieation betwrrn England and nil North America wouUl b«> conducted through Halifax, and tliat for the United 8Ute« would thus iwss timt tlm)iiKh British territory, inasmuch ns letter* for Bonton, New York, and othrr American cities would reach their destination sooner through Halifax and over tin- mi! than in any other wnv. When the Intercolonial RaiUay is compht'rd. there will be tin unbroken com- munication by railway from HaJifux, in Nova Scotia, to the wc-.tcrn part of Canada, at Saniiu, extending over a ilistancc of about 1,MM) miles in the direc- tion of British Columbia and Vancouver s Island, the whole being in the dominions of the Uuecn ; and from Sarniu there is now an unl)roken water iHimmnnication for steamers and vessels of the largest < lass to the head tif Lake Superior, at Fort yVilliam, a further distance of nearly 1,000 miles. Tlie militar}- objects arc now so thoroughly luiderstood, and have been m* fully dwelt upon in former communications on the subject of this railway that they are not here repeated. Trusting that this impoitant matUr may nceive the early and favourable consideration of Her Majesty's (iovcrnment,* We have, &c. , (signetl) a. E.CartierA Jno. Rom, Canada. ' ;'• ^ ^ A.T. Gait, J Charles /^*A«r,\., „ . . A. P. Smith, 1^^ Brunswick. Charles Tjuppcr,} W. A. Henry, [Nova Scotia. R.B.Dickey, j — No. 3. — Copy of a LETTER firom the Canadian Delegates to the Secretar)- of State. Sir, London, I(i November 1858. We have the honour to enclose a copy of the joint letter from the Delegates from the British North American Colonies to the Chancellor of the Exchequer, on the subject of the Intercolonial Railway ; and we venture to express the hope that Her Majesty's Government may be able to give an early and favour- able consideration to the question. We have, &c. '• ■' (signed) John Rots. ' ' A.T. Gait. Enclosure in No. 3. No. 3- Letter from Cana- dian Delegate* to the S«>crctiry of Sate. l6Nuveinl)«rl&5S. lOc/, "•<"*. '.'if To the Right Hon. B. Ditraeli, Chancellor of the Exchequer, &c. &c. &c. Sir, London, 13 November 1858. In the interview with which wc were honoured by the Secretary of .State for the Colonies, on the subject of the Railway from Halifax to Quebec, Sir^. B. Ly tton stated that while the construction of this work unquestionably entered into Imperial policy, it involved questions more peculiarly fiuniicial, and that he therefore wished us to address you, and in . oubmitting our united Application, to add our views of the manner in which the British Exchequer would be affected by your assent to our proposal. A reference to die enclosed copy of our joint letter to Sir E. B. Lytton will nhow you, that estimating the capital required to be .3 ,500,000/., tiie hiii>erinl Government arc askcil to apply 1,600,000/., now payable by Canada, and to guarantee, if necessary, the proposed grant by the three Colonies of 60,000/. per annimi. Assumins;, which we trust will not be questioned, that the obligations of the several Provinces will be honourably met, as has suways hitherto been tlie case, the amount of aid asked from the British Government, to secure an object adn;ittedly of vast Imperial interests, is limited to the grant of 1,500,000/., representing, at 4 per cent., an annual charge on the British Ezcliequcr of 60,000 /. End. in No. 3. 113— Sess. 2. A3 Against '6T PAPERS RELATIVE TO POSTAL SUBSIDIES AND Bt tar tkc tnuMni** AgaiMt tkia MB it ii cUoMd tiMI tlM Briliin of eertain kaowa ctwrgM: Pk^flMtit to United SutM Guv< MO at mail* to aad ftrom Caaada .... Raduetion in ooaan Mrrioai, aa now perforoMd bjr tlte Cunard line, Hmlifaa baiag 547 mile* naarar Liver|iuul than New York, in proportion to tlie whole euUidjr, atleart Saring in traaandMion of troopa and munition of war, atkart --------- of tha Bailway would nbava Otaat 16,000 33,000 10,000 To wUeh may ba added tha tum which would ha paid by the Unitad Stataa OorammeDt for tha tranMnii«ion of their midla br tha Railway, at leaat ai much as it now paid by tha British Qovemment .... <. 70,000 - - 23,000 - f. 93,000 - S 1 On financial grounds we thcrcfurc do not hesitate to state our conviction that a large reduction may bie effected in exisiting ofaargee upon the British revenue ; while, at the lame time, the other and more important Imperial politioal objects will be attained. We have now folly stated our viewa on this important subject, and it only remaina for us to express our ho|ie that if Iler Majeaty's Government nrc desirous of extending their aid they may be pleased to advise us of tlieir views, and should they not be prepared to adopt the precise scneme submittad by us, that they will be pleased to inform ua of the mode by which they consider the objaot'can bo attained more consistently with the interesta of tM Imperial Government. We mar add, that if it ahould be more oonsiatent with your views to grant aSd to this proposed lUdlway by way of subsidy, for the services hereinbefore enumerated, instead of an absolute grant of money, it would equally meet the expectations and desires of the ■everal Coloniaa. We have, &c. ■* "*' (ugned) (i. E. Curlier, per A. T. Gait. ■ i-it ''■< .i',/. ,n:t.';.- John Rou. A. T. Gait. Charlei Fisher, A.J. SmUk, CharU* Tapper. «'. A. Henry. A. B. Dickey. No. 4. Sir E. B. Lytton, Bart., M.r., to Governor General •f Canada, and ihe Lieut. Governors «f New Brunswick and Nova Scotia. «4 December 1858. — No. 4. - Copy of a DESPATCH addressed by Sir E. B. Lytton to the Governor General of Ciinada, and the Lieutenant Governors of Nevir Brunswick and Nova Scotia. Sir, Downing-strret, 24 December 1858. You are doubtless aware that frequent coouunnications have passed between me and the delegates who visited this country from the British Provinces in North America, relative to the propoaal that some Jiuperial aid should be granted towards the completran ol' an Intercolonial Railway from Halifax to Quebec. The pubject has not failed to receive the anxious consideration of myself and my colleagues. I need scarcely say that the project is one which Her Majesty's Govemmeiit cannot regard otherwise than with the best wishes. Even were no natitnul object concerned, it would be highly gratifying to them that the British Pro- vinces in North America should reap the lood advantages which would be derived from the completion of this great line of railway. Those advantages, it is true, would not justify an outlay of British funds, inasmuch as it is evident that fcMT an Imperial expenditure there must be an Imperial object ; but I read% admit that the plan does likewise embrace interests of a general and nationiil character. Independently of any military advantages which migirt attend the exMtence of an uninterrupted oomnranication by rail over British territonr in the event of any disturbance of the existing friendly rdations of Great Britain irith Ml in THE INTERCOLONIAL RAILWAY (CANADA, ke.). y with all other rtnintrirs, Home benefitu of an Imperial kind would at onre accnie from the completion of the Intercolonial Railway ; the letter* from Knpcland would pass over a shorter and chea|ier route ; and the movement of troopa would gain in point of convenience and economy. As to the probable amount of «uch financial benefit* to the mother country, there would probably Ik" some difference between the calctilationn sug^totctl by the delegates and thow formed by the oflicinl dcpartmentM in the Imperial senice to which the con»idenition of matters uffiM*tinK the convcyam-e of troops or the carriage of letters would siu'ciully belong. It is unnectiwary, however, at present t«) raise that question, and I readily grant that it involve* others, both of kindly feeling towanis Provinces so loyal and so important, and of general policy in the int'reased strength and compactness prgret that, while doing full justice to the ability of the arguments advanced by the gentlemen who visited this country as delegates upon the subject, and while far fn)m undervaluing the benefits of an intercolonial communication by railway, Her Majesty's Govern- ment have not found themselves at liberty to accede to the proposal of granting Imparial aid towanis the completion of the line lietween Halifax and Quebec. I have, &c. (signed) E. B. Lyttoii. A- ■rith 1 1 2— Sess. 2. N I