BRITISH COLUMBIA. PAPERS CONNECTION WITH THE CONSTRUCTION Canadian Pacific Railway, BETWEEN THE DOMINION, IMPERIAL, AND PROVINCIAL (tOVERNXIENTS. ^u{)li0i)p^ fee crlicr of tf)f Urgislattbc K^^tmbij). VICTORIA : Printed by Kiciiakd Woi.fkndrn, Ooveniiiient Printer, at the Oovemnient Printing Officts, James' Boy. 1«80. BRITISH COLUMBIA. PAPERS IN CONNECTION WITH THE CONSTRUCTION OF THE Canadian Pacific Railway, BETWEEN THE DOMINION, IMPEEIAL, AND PEOYINCIAL GOYEENMENTS. ^ufilisf)rt bg axtitx of tf)e ILfflislatibe ^ssmtlB. 11 VICTORIA : Printed by Richard Wolfknbis, Government Printer, at the Govcmmont Prinliinf Office, JamcB' Bay. laso. > URL '■ 44 Vic. Railway Papers. 189 PAPERS IN CONNECTIOl^ WITH THE CONSTRUCTION OP THE Canadian Pacific Railway. Extract from Journals of the Legislative Assembly ofhtli May, 1880. "On the motion of Mr. Galbraith, seconded by Mr. Smithe, it was Resolved, — "That all the papers in connection with the construction of the Canadian Pacific Railway, between the Dominion, Imperial, and Provincial Governments, be printed in pamphlet form for circulation." No. 1. Despatch from Earl Granville to the Governor of British Columbia on Confederation. British Columbia. Downing Street, Ko. 84. 14f/i August, 1869. Duplicate. Sib, In my Despatch of 17th of June, in which I communicated to you your appoint- ment to the Government of British Columbia, I informed you that I should probably have occasion to address you on the question then in agitation of the incorporation of that Colony with the Dominion of Canada. You arc aware that Her Majesty's Government have hitherto declined to entertain this question, mainly because it could not arise practically till the Territory of the Hudson's Bay Company was annexed to the Dominion, but also, perhaps, in the expectation that the public opinion of British Columbia might have opportunity to form and declare itself. I have now to inform you that the terms on which Eupert's Land and the North "West Territory are to be united to Canada have been agreed to by the parties concerned and that the Queen will probably be advised before long to issue an Order in Council which will incorporate in the Dominion of Canada the whole of the British Possessions on the North American Continent, except the then conterminous Colony of British Columbia. The question therefore presents itself, whether this single Colony should be excluded from the groat body politic which is thus forming itself? On this question the Colony itself docs not ajipear to be unanimous. But as far as I can judge horn the Despatches which have reached me, I should conjecture that the prevailing opinion was in favour of union. I have no hesitation in stating that such is also the o])iMion of Iler Majesty's Government. They believe that a Legislature selected irom an extended area, and representing a diversity ot interests, is lii'rence Ijciween (ho actUMl Rnaouiit of il^ iodebte'lness at llie dale of Unioti and the pro^ortiou of tLe Publii; Debt of Cauada for 120,000 9f the population of Canada at the lime of Union. 3. The following suma shall be annually paid by Canada to British Columbia for the support of ^b^a Local Gorernment &nd Legislature, to wit: — No. 3. " ACCEPTED TERMS. 1. Canada shall be liable for the debts and Ua-. bilities of British Columbia existing at the time of Union. 2. British Columbia not having incurred debts equal to those of the other Provincea now constitu- ting the Dominion, shall be entitled to receive, by half-yearly payments in advance from the General Government intere-it at the rate of five per cent, per anriinn on the ditf/reuco helwe.ii the actual amount ol its int'cbieiint'ss at ihu date of ilie Union, and the indebtedness per head of the population of Noviv iSfOtia and New Brunswick (^.77 dollars), the [lop-- ululion of British CJolumbia being taken at CO,uOO. 3. The following sums shall be jiaid by Canada to British Columbia for the support of \U Government and Legislature, to wit: an annual subsidy of 35,000 dollars, and an annual grant equi^l to 80 gents pe^ head of the said population of §,QjO.O.O,^ Uo^li b.ftVC*' 44 Yic. Railway Papers. Ml No. 2. "PROPOSED TERMS.''— Continued. No. 3. " ACCEPTED T:ER},1S."— Continued. An Annual Grant of $35,000, and ^ further sum equal to 80 cents a bead per annum of the popula- tion, both pnyable half-yearly in advance, the popu- (ron of Hritish Columbia beino; estimated as alore- said at 120,000. Such grant, equal to 80 cents a head, to be augmented in proportion to the increase of popnlation. when such may be showu, until the population amounts to 400,000, at -svuich rate such grant shall thereafter remain. 4. The Dominion shall guarantee interest at the rate of five per centum per annum on such sum, not exceeding £100,000, as may be required for the con- struction of a first-class Graving Dock at Esquimalt. 5. In addition to tlie other provisions of this Resolution, Canada shall assume and defray the charges of the following Services: — a. Salary and allowances of the Lieutenant-Gov- ernor; b. Salaries and allowances of the Judges and Officers of the Supreme Court and of County Courts; c. The charges in respect of the Department of Customs: d. The Postal Department; e. Lighthouses, Buoys, Beacons, and Lightship, and such further charges as may be incident to and connected with the Services which by the " British North America Act, 1867,'' appertain to the General Government, and as are or may be allowed to the other Provinces. G. Suitable pensions, such as shall be approved of by Her Majesty's Government, shall be provided by the Government of the Dominion for those of Her Majesty's servants in the Colony whoso position and emoluments derivet^ therefrom would be affected by political changes on the admission of this Colony into the Dominion of Canada. 7. The Dominion Government shall supply an 6flicientand regular fortnightly steamcommunication between Victoria and San Francisco by steamers adapted and giving facilities for the conveyance of passengers and cargo. 8. Inasmuch as no real union can subsist between this Colony and Canada without the speedy estab- lishment of communication'across the Rocky Moun- tains by Coach Road and Railway, the Dominion shall, within three years from the date of union, construct and open lor traffic such Coach Road from some point on the line of the .Main Trunk Road of this Colony to Fort Garry, of similar character to the said .Main Trunk Road; and shall further engage to use all means in her power to complete such Railway communication at the earliest practicable date, and that Surveys to determine the proper line for such Railway shall be at once commenced; and that a sum of not less than One Million Dollars shall be fxpend'Ml in every year, from and after three years Irom the dale of union, ,in actually construct- ing the initial sections of such Railway Irom the Seaboard of British (Columbia, to connect with the Riiilway system of Canada. 9. The L)omini()n shall erect and maintain, at Victoria, a Marine Hospital and a Lunatic .Asylum, either attached lo the Hospital or separate, as may be cotsideied most convenient. The Dominion shall also erect and maintain a Penitentiary, or other Principal Prison, at such place in the Colony as she may consider most suit- able for tbttt purpose. yearly in advance, such grant of 80 cents per head to be augmented in proportion lo the increase of population as may be shown by each subsequent decennial census, until the population amounts to 400,000, at which rate such grant shall thereafter remain, it being understood that the first census be taken in the year 1831. 4. The Dominion will provide an efficient mail service, fortnightly, by steam communication be- tween Victoria and San Francisco, and twice a week between Victoria and Olympia; the vessels to be adapted for the conveyance of freight and passengers. 5. Canada will assume and defray the charges for the following Services: — A. Salary of the Lieutenant-Governor; B. Salaries and allowances of the Judges of the Superior Courts and the County or District Courts; C. The charges in respect to the Department of Customs; D. The Postal and Telegraphic Services; E. Protection and Encouragement of Fisheries; F. Provision for the Militia; G. Lighthouses, Buoys and Beacons, Shipwrecked crews, Quarantine and Marine Hospitals, in- cluding a Marine Hospital at Victoria; H. The Geological Survey; I. The Penitentiary; And such further charges as may be incident to and connected with the services which by the " British North America Act, 1867,'' appertain to the General Government, and as are or may be allowed to the other Provinces. 6. Suitable pensions, such as shall be approved of by Her Majesty's Government, shall be provided by the Government of the Dominion for those of Her Majesty's servants in the Colony whose position and emoluments derived therefrom would be affected by political changes on the admission of British Colum- bia into the Dominion of Canada. 7. It is agreed that the existing Customs tariff and excise duties shall continue in force in British Co- lumbia until the railway from the Pacific coast and the system of railways in Canada are connected, unless the Legislature of British Columbia should sooner decide to accept the tariff and excise laws of Canada. When customs and excise duties are, at the time of the union of British Columbia with Canada, leviable on any goods, wares, or merchan- dizes in British Columbia, or in the other Provinces of the Dominion, those goods, wares, and merchandizes may, from and after the Union, be imported into British Columbia from the Provinces now composing the Dominion, or from either of those Provinces into British Columbia, on proof of payment of the cus- toms or excise duties leviable thereon in the Province cf exportation, and on payment of such further amount (if any) of customs or excise duties as are leviable thereon in the Province of importa- tion. This arrangement to have no force or effect after the assimilation of the tariff and excise duties of British Coluinl/ia with tho-e of the Dominion. 8. British Columbia shall be entitled to be repre- sented in the Senate by three members, and by six members in the House of Commons. The represen- tation to be increased under the provisions of the •' British North America Act, 18G7." 9. The influence of the Dominiou.Government will 142 Railway Papers. 1880 No. 2. «' PROPOSED TERWS .'^ —Condnufd. 10. Efficit-nt Coast Mail Steam Service, in connec- tion with Jho Post Office, shall he establislieii and aiaiutained bv the Goveinnient of the Dominion, between Victori.-i and New Westminster, Nanaimo, und such other places as may require such Services. 11. Whatever encouragement, ndvantaircs, and protection are aftorded by the Dourinion Govern- ment to the Fisheries of any of its Provinces shall be extended iu similftr proportion to British t^olum- biA. according to its renuirements for the time beinj?. 12. British Columbia shall jiarticipate, in fair proportion in any measures which may be adopted and Funds which may be appropriated by the Dominion lor the encouragement oi Inimigrntion. 13. British Columbia shall be entitled to be rep- resented in the Seniite by Four Members, and by Eight Members iu il.c IKni^c of Commons, until the year 18 , and thereafter the Representation in the Senate and the House of Commons shall be increased, subject to the provisions of the «' British North America Act. 1S67." U. The Union shall take effect on such day as Her Majesty by Order in Council (on an Address to that etJect', iii terms of the UGth Section of the "British North America Act, ]iGl,'') may direct; and British Columbia may, in such Address, specify the Districts, Counties, or Divisions, if any, for -which any of the Four Senators to whom the Colony shall be entitled shall be named— the Electoral Dis- tricts for which — and the time within which the first Election of Members to serve in the House of Com- mons shall take place. 15. The Constitution of the E.\-ecutive authority and of the Legislature of British Columbia shall, subject to the provisions of the " British North America Act, 18(37,'' continue as existing at the time of Union, until altered under the authority of the said Act. 1(3. The provisions in the " British North America Act, 1867," shall (except those parts thereof which are in terms made, or by reasonable intendment may be held to be specially applicable to and only affect one and not the whole of the Provinces now com- prising the Dominion, and except so far as the same may be varied by this Resolution) be applicable to British Columbia in the same way and to the like extent as they apply to the other Provinces of the Dominion, and as if the Colony of British Columbia had been one of the Provinces originally united by the said Act. With reference to Defences: — a. That it shall be an understanding with the Dominion that their influence will be us, d to the fullest extent to procure the continued maintenance of the Naval Station at Esquimalt. b. Encouragement to be given to develop the effi- ciency and organization of the Volunteer Force in British Columbia. No. 3. " ACCEPTED TERMS."— Con^tnucc?. be used to secure the continued maintenance of the naval station at Esiiuimalt. 10. The provisions of the " British North America Act, 1807," shall (except those jiarts thereof which are in terms made, or by reasonable intendment may be held to be specially applicable to and only affect one and not the whole of the Provinces now com- prising the Dominion, and except so far as the same may be varied by this Minute) be applicable to British Columbia, in the same way and to the like extent as they ajiply to the other Provinces of the Dominion, and as if the Colony of British Columbia had been one of the Provinces originally united by the said Act. 11. The Government of the Dominion undertake to secure the commencement simultaneously, within two years from the date of Union, of the construction of a railway from the Pacific towards the Rocky Jlounlains, and from such point as '.nay be selected, east of the Rocky Mountains, towards the Pacific, to connect the seaboard of British Columbia with the railway system of Canada; and further to secure the completion of such railway wilhiu ten years from the date of the Union. And the Government of British Columbia agree to convey to the Dominion Government, in trust, to be appropriated in such manner as the Dominion Government may deem advisable in furtherance cf the construction of the said railway, a similar extent of public lands along the line of railway throughout its entire length in British Columbia, not lo exceed, however, twenty (20) miles on each side of the said line, as may be appropriated for the same purpose by the Dominion Government from the public Jands in the North West Territories and the l^rovince of Manitoba. Provided, that the quantity of land which may be held under pre-emption right or by Crown Grant within the limits of the tract of land in British Columbia to be so conveyed to the Dominion Gov- ernmenl shall be made good to the Dominion from contiguous public lands; and provided further, that until the commencement, within two years as afore- said, from the date of the Union, of the construction of the said railvvay, the Government of British Co- lumbia shall not sell or alienate any further portions of the public lands of British Columbia in any other way than under right of pre-emption, requiring ac- tual residence of the pre-emptor on the land claimed by him. In consideration of the land to be so con- veyed in aid of the construction of the said railway, the Dominion Government agree to pay to British Columbia from the dale of the Union the sum of one hundred thousand dollars per annum, in half-yearly payments in advance. 12. The Dominion Government shall guarantee the interest for ten years from the date of the com- jjleting of the works at the rate of five per centum per annum on such sum, not exceeding £100,000 sterling, as may be required for the construction of a first-class Graving Dock at Esquimalt. 13. The charge of the Indians, and the trusteeship and management of the Jands reserved for their use and benefit, shall be assumed by the Dominion Gov- ernment, and a policy as liberal as ^that hitherto pursued by the British Columbia Government shall be continued by the Dominion Government after the Union. To carry out such policy, tracts of land of such 44 Vio. Eailway Papers. 143 No. 3. "ACCEPTED T'ER^S."— Concluded. extent as it has hitherto been the practice of the British Columbia Government to appropriate for that purpose shall from time to time be conveyed by the Local Government to the Dominion Government in trust for the use and benefit of the Indians on ap- plication of the Dominion Government; and in case of disagreement between the two Governments re- specting the quantity of such tracts of land to be so granted, the matter shall be referred for the decision of the Secretary of State for the Colonies. 14. The constitution of the Executive Authority and of the Legislature of British Columbia shall, subject to the provisions of the " British North America Act, 1867," continue as existing at the time of the Union until altered under the authority ot the said Act, it being at the same time understood that the Government of the Dominion will readily consent to the introduction of Responsible Govern- ment when desired by the inhabitants of British Columbia, and it being likewise understood that it is the inttniion of the Governor of British Columbia, under the authority of the Secretary of State for the Colonies, to amend the existing Constitution of the Legislature by providing that a majority of its mem- bers shall be elective. The Union shall take effect according to the fore- going terms and conditions on such day as Her Majesty by and with the advice of Her Most Honour- able Privy Council may appoint (on Addresses from the Legislature of the Colony of British Columbia and of the Houses of Parliament of Canada, in the terms of the 146th section of the " British North America Act, 1867,") and British Columbia may in its address specify the electoral districts for which the first election of members to serve in the House of Commons shall take place. No. 4. At the Court at Windsor, the 16th day of May, 1871. PRESENT, The QUEEN'S Most Excellent Majesty. His Royal Highness Prince Arthur. Lord Privy Seal. Lord Chamberlain. Earl Cowper. Mr. Secretary Cardwell. Earl of Kimberlcy. Mr. Ayrton. WiiEHEAS by the '^British North America Act, 1867," provision was made for the Union of the Provinces ot Canada, Nova Scotia, and New Brunswick into the Dominion of Canada and it was (amongst other things) enacted that it should be lawful lor the Oueen bv'and with the advice of Her Majesty's Most Honorable Privy Council, on AddrcUc'H from the Houses of the Parliament of Canada, and of the Legislature of the Colony of Britif-h Columbia, to admit that Colony into the said Union on such terms and conditions as should be in the Addresses expressed, and as the Queen should think fit to anm-ovc subject to the provisions ol the said Act. And it was further enacted th'it the provisions of any Order in Council on tbat behalf should have cfl'cct.as if they had been enacted by tlie Parliament of the United Kingdom of Great Britain and v\nd whereas by Addresses from the Houses of the Parliament of Canada and from the LcKislative Council of British Columbia rcs])ectively, of which Addresses copies are contained in the Schedule to this Order annexed, Her Majesty was prayed, by and with 144 Railavay Papers. 1880 the advieo of Ilor Most Ilonourablo Privy Council, iimlor the One huiulrcd and forty- sixth SocUon ot the Uofoiubet'oro rocitod Act, to admit BriLish Columbia into tho Dominion of Canada, on tlio terms and conditions set forth in tho said Addresses. Aud \\UovoiV* Uer Majesty has thought fit to approve of tho said terms and con- dlliooi;*: I( 14 IxoroUv ordered and deidarod by Her Majest}', by and with tho advice of Hcvr i'lHvy Council, in purnuance and exei-eise of the powers vested in Her Majesty by Ihe said Aci of INudiament, that from and after the Twentieth day of July, One thousand Qhjht hundvcd and seventy one, the said Colony of British Columbia shall bo admitted \mo jj^ud boconio part of tho I)omiMion of Canada, upon tho terms and conditions set kw4h in lUo hevoinbcforo rccitetl Addresses. And, in accordance with the terms of tho SAiJ Addrosso^ relating to tho Electoral districts in British Columbia, for which the first elt^clion of members to serve in tho House of Commons of the said Dominion shall tako plaQO, i,t is hereby fuvther ordered and declared that such Electoral Districts shall bo ^ ^9ll(?w*:.-^. Id ********* And the Right Honourable Earl of Kimberloy, one of Her Majesty's Principal 3^? to give tih.0 ueccssar}' directions herein accordingly. (Signed) Arthur Helps. No. 5. The Secretary of State to the Lieutenant-Governor. Copy. yo.. 53, Ottawa, 10th June, 1873. Sir, — I have the honour to enclose, for the information of your Government, a Qopy of an Order of His Excellency the Governor-General in Council, fixing Esquimalt, La Vancouver Island, as the Terminus of the Canadian Pacific Railway, and further dseciding that a line of Railway be located between the Harbour of Esquimalt and Seymour Narrows on the said Island. I have further the honour to apply to you to bring the subject under the notice of your Government, with a view to the conveyance, in the manner and for the purposes stated in the said Order; of a strip of land Twenty Miles in Avidth, along the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt. I have, &c., (Signed) E. A. Meredith, Under Secretary of State. No. 6'. Report of the Privy Council, approved: hy the Governor-General on the 7th June, 1873. The Committee of'Conncil having had before them the memorandum of the 29th May last, from the Chief Engineer of th,o Canadian Pacific Railway, and tho Minute of Council thereupon of the oOth May, beg leave to recommend' to Your Excellency that Esquimalt, in Vancouver Island, be fixed as the Terminus of the Canadian Pacific Railway; and that a line of Railway be located between tho Harbour of Esquimalt and' Seymour Narrows on the said Island. The Committee further recommend that application immediately be made, by diespatch to the Lieutenant-Governor of British Columbia, for the conveyance to the fVominion Government, in trust, according to the llth paragraph of the 'J'erms of Agree- ineni of Union, of a strip of land. Twenty Miles in Avidth, along the Eastern Coast of "Vancouver Island, between Seymour Narrows and tho Harbour of Esquimalt. An Order of the Lieutenant-Governor of British Columbia in Council appropriating this tract of land, in furtherance of the construction uf the said Railway, will be neces- sary, in order to operate as a sufficient conveyance and reservation of the said land to and for the Dominion Government. (Certified) W. A. Himsworth, Clerk, Frivy Council, 44 Vic. Railway Papebs. 145 No. 7. The Lieutenant-Governor to the Secretary of State for Canada. Copy. Government House, No. 67. 2GLh July, 187S. Sir,— I have the honour to state that the Undci- Secretary of State for the ProvinccB' Despaioh No. 58, of the 1 0th ultimo, and the copy therewith enclosed of an Order of His Excellency tbe Governor-General in Council, fixing Esquimalt, on Vancouver Island, as the Terminus of the Canadian Pacific Eaihvay, and further deciding that a line of Eaihvay he located between Esquimalt Harbour and Seymour Narrows, was duly received and submitted hy me for consideration in my Executive Council, and that the strip of land Twenty Miles in width along the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt. specified in the said Order in Council, was accordingly reserved on the 1st July instant, under the powers and provisions of the 42nd Section of the Jjand Ordinance of 1870 of British Columbia, and notice of such reservation dul}' published in the Government Gazette, as appears in the copy thereof herewith enclosed. With further reference to the Under Secretary of the Provinces' Despatch, I bav© also the honour to enclose herewith, and to request that you will lay before Hia Excellency the Governor-General, a Minute of my Executive Council conveying the conclusion of this Government that it is not advisable to make, at present, the convey- ance applied for in the said Despatch and accompanying Order in Council of the la,nd therein specified and now held under reservation, and setting forth the grounds upon which that conclusion is based, I have, &e., (Signed) Joseph "W. Trutch. No. 8. Beport of the Executive Council, approved by the Lieutenant-Governor on the • 30f/i day of June, 187.3. On a Memorandum dated 30th June, 1873, from the Honourable the Attorney- General, recommending that, for the present, a bare reservation of the Twenty Mile belt lying between Esquimalt llarbour and Sej'mour Narrows be made, to ])rotect the Government of the Dominion, until the question raised by the Order in Council of the Privy Council of Canada, dated the 7th instant, with its covering Despatch on the subject of the 10th instant, be more fully discussed and determined, and that the con- veyance, in trust, of the said land asked for by the Ottawa Government be for the present deferred, and that the enclosed notice of reservation be adopted and published in a Gazette Extraordinary. (Certified) W. J. Armstrong, Clerk of the Executive Council. No. 9. Notice. "Whereas by an Order in Council dated the 7th day of Juno, 1873, of the Honourable the Privy Council of (yunada, it has been decided "that Esquimalt, in Vancouver Island, " be fixed as the Terminus of the Cmadian Pacific J^iilway, and that a line of J\ailway "be located between the Harbour of Esquimalt and Seymour Narrows, on the the said " fsland ;" and whereas, m accordance with tlio terms of the said Order in Council, application has boon made lo ilis Excellency "the ijieutenant-Governor of British "Columbia, for a reservation and for the conveyance to the Dominion Government, in "trust, according to the lUh Paragrajih of the Terms of the Agreement of Union, of a "strip of land Twenty Miles in width along the Eastern Coast of Vancouver Island, "between Seymour Nud-ows and the Harbour of Esquimalt, in furtherance of the cou- " struction of the said Bailway." 146 ■Railway Papers. 1880 And whereas it has been deemed advisable tliat the land within the limits aforesaid should be Keserved, prior to any eonveyance aforesaid being made thereof, riiblic notice is therefore hereby i;iven that from and after this date a strip of Land Twenty Miles in width aloni; the' Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour ot^Ksquimall, is hereby Reserved. By Command. rroiincial Secretary's Office, John Ash, Ut July, 1873. rrovincial Secretary. No. 10. The Lieutenant-Governor to the Secretary of State. CoTY. Government House, No. <)"8. 26th July, 1873. Sir. — I have the honour to enclose at the request of my Ministers, for submission to His Exeellency the Governor-General, a Minute of my Executive Council, rcpre- sentinic the nou -fulfilment b}' the Dominion of the Uth Section of the Terms of Union of Briti.sh Columbia with Canada, expressing regret that the Railway has not been commenced, and strongly protesting against the breach of a condition of the Terms so highly important to this Province. I have, &c., (Signed) Joseph W. Trutch. No. 11. Order in Council of this Froviiice, dated July 2bth, 1873. The Committee of Council have had under consideration the non-fulfilment by the Dominion Government of the 11th Section of the Terms of Union. The Committee regret that the construction of the Railway has not been com- menced, and therefore strongly protest against the breach by the Dominion Government of a condition of the Terms so highly important to the Province. The Committee recommend the above for the approval of Your Excellency, and, if sanctioned, respectfully request that a copy thereof be at once forwarded to the Dominion Government. (Certified) W. J. Armstrong, Clerk, Executive Council No. 12. Beport approved by the Lieutenant-Governor on the 2bth July, 1873. The Committee of Council have had under consideration a memorandum of the 23rd July, 1873. from the Honourable the Attornej-'General, reporting upon a Despatch, dated the 10th June last, from the Honourable the Secretary of State for the Provinces to Your Excellency, covering an Order of the Honourable the Privy Council of Canada, of the 7th of the same month, which states that the Privy Council had decided as follows: — "That Esquimalt, in Vancouver Island, be fixed as the Terminus of the " Canadian Pacific Railway, and that a line of Railway be located between the Harbour "of Esquimalt and Seymour Narrows on the said Island." In pursuance of this decision. Your Excellency is requested to convey by Order in "Council '• to the Dominion Government, in trust, ; ccording to the Uth paragraph of " the Terms of the Agreement of Union , a strip of md Tweut}' Miles in width along "the Eastern Coast of Vancouver Island, between !^ ymour Narrows and the Harbour "of Esquimalt." L'pon the Despatch and Order in Council the Honourable the Attorney-General reports as foilow-e :— 44 Vic. Railway Papers. 147 " The agreement of Union is embodied in a Statute. Its language must therefore be measured by the ordinary and well known rules of interpretation as applied to Statutes. The language must not be construed too narrowly, but a fair and liberal con- struction—and one in acconianeo with the spirit and true meaning of the agreement- should be placed upon the wording of the ' Terms.' Allowing, however, the greatest latitude of interpretation, and applying the broadest and most liberal construction to the eleventh Section of the Agreement, nothing appears which would seem to warrant the Dominion Government in^claiming, or justify Your Excellency in granting, a convey- ance of the Twenty Mile belt of land mentioned, until the line of Railway be defined. " It is admitted that the Dominion Government is entitled to the greatest consider- ation lor the energy it has hitherto displayed in its desire to faithfully carry out the Railway provisions contained in the Agreement. " Hence the Government of this Province, holding these views and anxious to render all the assistance in its power to the Dominion Government, assumed the respon- sibility of reserving the belt of land mentioned almost immediately after the receipt of the Despatch, which is the subject of this report. It was, howevcf, expressely under- stood that the Order in Council creating the reserve should not operate as a conveyance 0/ Me /antZs within its limits, and that the reserve itself should not bo of a permanent character. "The 11th Section of the Terms of Union reads as follows : ' The Government of the Dominion undertake to secure the commencement, * * 'within two years from the date of the Union, of the construction of a Railway from 'the Pacific towards the Rocky Mountains,' thence Eastward, t*cc. 'The Government of British Columbia agree to convey to the Dominion Govern- 'ment in trust, to be appropriated in such manner as the Dominion Government may 'deem advisable, in furtherance of the construction of the said Raihcay, an extent of 'public lands along the line of Railway throughout its entire length in British Columbia, 'not to exceed, however. Twenty Miles on eac/i s;V/e o/ 5rt«V/ ;i?ie * * * and 'provided further that until the commencement, within two years, as aforesaid, from 'the date of the Union, of the construction of the said Railway, the Government of 'British Columbia shall not sell or alienate any further portion of the public lands of 'British Columbia in any other way than under right of pre-emption requiring actual 'residence of the pre-emptor on the land claimed by him.' " Under this agreement the Dominion Government undertook 'to secure the com- mencement of the construction ot a Railway from the Pacific' eastward on the 20th July, 1873, and the Province in consideration thereof agreed to convey to the Dominion Government ' in furtherance of the construction of the said Raihcay,' certain 'public lands along the line of Railway ' not exceeding in extent Twenty Miles 'on each side of said line.' "As far as the Government of this Province has been informed, no line of Railway has been surveyed between Esquimalt and Seymour Narrows. A conveyance cannot therefore be made of ])ublic lands 'along a line of Railway ' and 'on each side of said line ' where no such • line of Railway ' exists. The demand made is for a conveyance of 'a strip of land ' Twenty Miles in width along the 'Eastern Coast of Vancouver Island,' or in other words in tlie absence of a survey lor a strip ot the public lands along the sea coast, but not along any defined line of Railway. " It is respectfully submitted that had a ' line of Railway ' been defined by a location survey, the Government of this Province would have been notified thereof, and the language of the Despatch and of the Order of the Privy Council would have been marerially different Irom that used in the ])rescnt instance. Instead of asking for a convevancc of land along a sea coast, a demand would have been made for a convey- ance of certain lands 'along a line of i^ailway' adopted and containing an area of pomjo 3,000 square miles ot service to tho Pi'ovince. '•The umlersiijnod thorcforo su_ici,'csts that, as no line of Railway has been deiined, Yonr Excellency bo respecttolly I'ocommended, for tho above reasons,, to withhold the conveyance to tho dominion (lovornment of the land mentioned in the Despatch; and lli.it the Reserve of the said bind be continued until a fair opportunity shall have been aifurdo*! to the Dominion (Jovernment to consider tho subject, and inform the Govern- luenk of this Province of its views thereon. (Signed) " Geo. A. Walkbm, " Attorney -General.'' Tho Committee concur in the above Kcport of the Attorney-General, and subtnit the same tor Your Kxcellency's approval, and if sanctioned, they sui^gcst that a copy ot this Order in Council be transmitted to His Excellency the Goveruor-GeueraL- (Certified) W. J. Armstrong, Clerky Executive Council.- No. 13. Secretary of State to the Lieutenant-Governor. Copy. Ottawa, No. 72. 23rd August, 1873. Sir, — I hare the honour to acknowledge the receipt of your Despatch, No. 68, 26th ultimo, covering a copy of a Minute of your Executive Council, complaining of the non- fulfilment b}' the Dominion Government of the 11th Section of the Terms of Union of British Columbia with Canada. Your iJespatch and its enclosures will be at once laid before His Excellency the Governor-General in Council. I have, &e., (Signed) E. J. Langevi.v, Under Secretary of State. No. 14. Secretary of State to the Lieutenant-Governor. C'oPY. Ottawa, No. 7-i. 26th August, 1873. Sir, — I have the honour to acknowledge the receipt of your Despatch, No. 67, of the 2fith ultimo, referring to the Order of Ilis Excellency the Governor-General in Council, communicated to j'ou on the lUth June last, applying for the conveyance to tho Dominion Government of a strip of land Twentj' Miles in width along the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt, and enclosing a copy of a Minute of your Executive Council on the subject of the said appliciition. Your Despatch and its enclosures will be laid before His Excellency the Governor- General in Council. I have, (tc, (Signed) E. J. liANGEViN, Under Secretary of State, 44 Vio. Railway Papem. 149 ]^o. 15. The Secretary of State to the Lieutenant-Governor. Department of the Secretary of State for Canada, Ottawa, 11th September, 1873. SlE, — 1 have the honour to transmit to you herewith, for the information of your Government, a copy of an Order of His Excellency the Governor-General in Council, on your Despatch, 2\o. 07, ot tlie 26Lh July last, euclosino; a Minute of your Executive Council, conveying their conclusion that it is not advisable to make, at present, the conveyanco applied for in the letter to you of the 10th of June last. I have, (fee, (Signed) J. C. Aikins, Secretary of Slate for Canada, No. 16. Report of the Frivy Council approved by the Governor-General on the 3rd September, 1873. The Committee of the Privy Council have had under consideration a Despatch from the Lieutenant-Governor of British Columbia, of the 2C)th July. 187;-!, enclosinijj a Minute of his Executive Council, conveying the conclusion of the Government of British Columbia, that it is not advisable to make at present the conveyanciaekcnzio lo il>o Lioutonant-Oovcrnoi', a copy of wiiich is printoii .nmoiii^sc tlio papers laid before llie Dominion Parliament I'ospecting tbc non- fulrtlmont of the Terms of Union, has never reached His Honour, nor was he aware until ho roail the printoil coi)y above roion-od to, that any such letter had been ndiirossed to him. I have, itc., (Signed) Arthur G. J. Pinder, The Honourable the FrocinciaJ iSecniary. Private Secretary. No. 39. Ottawa, March 24th, 1875. Sir, — I have ji:st received your telegram, informing me that you had not received the letter I iiddrcss>.'>l 3'ou, by Mr. Edgar, of February 21st, 1874. I was not aware, until I received your telegram, that the letter had not been delivered to 3"ou. Mr. Kdgar has, to-day, informed me that he did not hand you the letter, as your Ministers objected to any connnunieation being made except through them. Mr. Edgar did not previously make me awure of this objection. Had I been informed of it at the time, 1 would have directed him to deliver the letter, notwith- standing the objection. I can onlj' now express my regret that the letter was not delivered; and, that seeing it was not delivered, that it was published with the correspondence. I observe however, that there is nothing in the letter which could, apparently, affect the question to be discussed by Mr. Edgar, as similar assurances were conveyed in my letter by Mr. Edgar to Mr. "Walkem. I am, &c., His Honour (Signed) A. Mackenzie. Lieutenant-Governor Trutch, Victoria, B. C. No. 40. Report of the Executive Council^ approved hy the Lieutenant-Governor on the 7th May, 1874. On a memorandum dated 7th May, 1874, from the Honourable the Attorney-General, recommending that his Excellency' the Lieutenant-Governor be requested to telegraph to His Excellency the Governor- General for a reply by telegram, containing full infor- mation of the Eailway policy of the Dominion Government, especially as it affects British Columbia, and whether it is true that the Premier has publicly stated in the Commons that the Dominion Government do not intend to commence railway construction this year, in this Province. The Committee advise that the recommendation be approved. (Certified) W. J. Armstrong, Minister of Finance and Agriculture, and Clerl; of the Executive Council. No. 41. Tdcgrain. To the Secretary of State for Canada, Victoria, May 7tl!, 1874. Ottawa, Canada. It being leported here to-day that the J'rcmier stated in the House of Commons, on the 4th inst., that construction of P:iilw:iy in British Columbia would not be commenced this year, this Government urgently requests lo l;e fully infurmed immediately, by tele- graph, ot particulars of policy adopted by Dominion Government respecting Eailway Clause of Terms of Union. (Signed) .Joseph W. Trutch. Lieutenant- Governor. 44 Vic. Railway Papers. 159 No. 42. Telegram. Ottawa, Ontario, May 8th, 1874. Lieutenant- Governor Trutch. Mr. Mackenzie simply said, that until the location of the road was ascertained it was impossible to commence construction ; that a large surveying force was now at work, and there was no reason to believe that it would be possible to complete the survey before the close of the year. (Signed) E. W. Scott, Secretary of State. No. 43. The Governor-General to the Earl of Carnarvon. Government House, Ottawa, May 15th, 1874. My Lord, — I have the honour to enclose for Yo;;:- Lordship's information a news- /•j; >. -ion . Kfi piiper report of the speech delivered by Mr. Mackenzie on the 121 h instant, «-ii • • r. , ■ ? May. when introducing licsolutions lor a Lnl to provide for the constriiction of clofte," 18th May." the Pacifio llailroad, together with a summary of this speech, and an article from the Globe newspaper of the 12th instant, explanatory of the GovernmeDt project. I have, Ac, (Signed) Dufperin. No. 44. The Governor-General to the Earl of Carnarvon. Government House, Ottawa, May 15th, 1874. My Lord, — In continuation of my despatch No. 130, of this day's date, I have the May 14th. Korarticicscu ^°'^°"^' ^*^ cnclosc au cxtract from the Toronto JU«i7, un opposition Scrap Book, page 40. paper, critici.sing the scheme of the Government. I have, &e., (Signed) Dupferin. No. 45. Mr. ./. J). Edgar's Letter to the Hon. G. A. Walkem. Victoria, B.C., May 8th, 1874. Sir. — I have (he honour to inform you that I have been instructed, by the Promior of (.'anadu, to make you aware of tlic views of his Administration upon the subject of the construction of the Canadian I'acitic J^ailwa}', in oi'dor that British Columbia may have full ojipoi'tunity of considering and deciding u]jon a question so closely afleciing her material interests. The scheme originally a(lo])ted lor the carrj'ing outof this work has, for a vai-iety of rcusons, jjroved unsuccessful, and to devise a plan for its more certain accomplishment has been the aim ol the Dominion Cabinet. Tlic chief difficulty to be encountt red in attempting to cany out the existing system of construction, is to be found in the stipulation as to the completion ol the J^iilway by the month of July, 1881. Ill j)ro])osing to take a longer time Inr constructing the llailway, the Canadian Government are actuated soldy by an urgent neccsbity. They are advised by their Engineers that the phy.sical difficulties arc so much greater than was expected, that it is an impossibility to construct the Kailway within the time limited by the Terms of 160 Railway Papers. 1B80 Union luul that anv ntloinpt to tlo so can only rosulL in wasteful oxpenditiiro and financial ombarrassmont. It is beeaiiso tlu>y closire to act in -Aood faith towards British Cohnnbia that t ho Canadian .\[inistry at once avow the ditliciilty ot carrying out tho exact Tonus of Union, whilst thoy have no desire to avoid the full re8i)onHibilily of Canada to oomploto tho Railway by all means in her power, and at tho earliest prac- ticable date. The eleventh article of tlie 'J'erins of Union embodies the bald proposition that tho Railway should be conunenced in two, and completed in ton years, from tho dtito of Union, to connect the seaboard of British Columbia with tho Ihvilway system of Canada. Feelinlr the impossibility of complyini;- with this time limit for comi)letion, tho Govern- nvMil is prepared to make new siipulalions, and to enter into additional obligations of a definite character, for the benefit of the Province. They propose to commence con- struction trom Esquimau to Nanaimo immediately, and to push tiuit portion of railway on to completion, with the utmost vigour, and in the shortest practicable time. The engineering difficulties on the Mainland have unfortunately turned out to bo 80 serious that further surveys must neccssarilj- be made before the best route can be determined upon. The (lovernment have already asked Parliament for a large sum for the purpose ot car; ving on these survej'S, and no expenditure will be spared to achieve the most spcedj and reliable selection of a permanent location of the lino upon tho Mainland. It is useless to propose an actual construction being undertaken before tho location has been determined upon; but in order to afford as much benefit from tho works of construction from the very first as can possibly be derived by the people of the interior, the Government would immediately open up a road, and build a telegraph line along the whole length of 1:he railway in the Province, and carry the telegraph wire across the continent. It is believed that the mere commencement to build a railway at the seaboard, as stipulated for in the existing terms, would give but little satisfaction to the producers living upon the east side of the Cascade Mountains, who would be unable, without a road being first constructed, to find a market all along the whole cxlent'of the railway wherever construction was progressing. It would then bo the aim of the Government to strain every nerve to push forward the construction of tho railway; and they would endeavour at the same time so to arrange the expenditure that the le-ritimate advantages derivable from it would as much as possible fall into the hands of our producers. In addition to constructing the road to facilitate transport along the located line, they are anxious to avail of the large supplies of all kinds of pro- visions now existing, or capable of being produced in the interior, and would proceed from the very first with all the works of construction in that portion of the country that their engineers could sanction. It is to be observed that while the Terms of Union contemplated the completion of the whole railway within a certain number of years, they made no provision for any certainty of expenditure in any particular time, or on any particular portion of the liJie. To predicate the highest expenditure which in any one year might be warranted in a f)articular portion of a great work like this is certainly difficult; and it is still more diflRcult to arrive at the lowest fixed annual sum which, in every yeav, and under all circumstances, might be judiciously expended as a minimum in local construction. To a country like British Columbia, it is conceded, however, to be an important point that not only the prompt and vigorous commencement, but also the continuous prosecution, of the work of construction within the limits of the Province should be guaranteed. In order, therefore, to secure an absolute certainty in this direction, and although the length of the line falling within the Province is estimated at only about one-fifth of the whole length, the Dominion Government are disposed to concede to British Columbia that the moment the surveys and road on the Mainland can be completed there shall be in each and every year, and even under the most unfavourable circumstances, during the con- struction of the railway, a minimum expenditure upon works of construction within the Province of at least one million five hundred thousand dollars. That this will secure the continuous progress of the works in the Province, without any intermission, is quite apparent, and it must also be perfectly clear that so large an annual sum could not be expended by any Pominion Administration in a remote district without holding out to the country sonio caidy prospect of a return for it, and at the same time showing that they were proceeding with the works with sufficient rapidity to bring the investment into an early condition toearn something. In reference to this point, I may bo permitted 44 Vic. Railway Papers. • 161 to refer to the fact that the Delegates from British Columbia, who negotiated the Terms of Union were instructed by the'Provincial Legislature to accept an undertaking from Canada to build the railway, with a guaranteed annual expenditure in the Province upon construction of one million dollars, to begin at the end or three years after Union. We must assume that this guarantee of continuous construction was only abandoned by the Delegates upon a conviction of both the sincerit}' and feasibility of the offer of early completion that was made to them. I trust that the proposals of the Dominion Cabinet, which 1 have sketched above, will be considered and accepted by British Columbia, as an earnest effort on the part of the former to carry out the spirit of the obligations to the Province. The leader of the Canadian Government has instructed me to place these matters before you, as leader of the Provincial Administration, and at the same time to furnish a copy to His Excellency the Lieutenant-Governor. The substance of these proposals has been sent to me by telegraphic cipher, and based upon that, I have the honour of communicating them to 3'ou. The Dominion Government would be glad to have the consideration of this proposal entertained by your Administration, and to learn the con- clusion of the Government of British Columbia upon the subject. 1 have, &c., (Signed) J. D. Edgar. No. 46. Mr. Edgar lo the Lieutenant-Governor. Victoria, B. C, May 9th, 1874. Sir, — 1 have the honour to inform Your Excellency that in accordance with in- structions from Ilonouraijle Alexander Mackenzie, leader of the Canadian Government, I have submitted to the Honourable G. A. Walkem, leader of your Ministry, the views of the former upon the question of the Canada Pacific Eailway, with a view to the relaxation of the Terms of Union so far as regards the time limited for the completion of the railway. I was at the same time insiructed to furnish, for Your Excellency's information, a copy, which 1 now have the honour to enclose, of the communication addressed by me to your Minister upon that subject. I have, &c., (Signed) J. D. Edqar. No. 47. Uon. G. A. Walkem to Mr. J. D. Edgar. Attorney-General's Depaut^ient, VicTOKiA, May 11th, 1874. Sir, — 1 have the honour to acknowledge the receipt, on Saturday, the 0th instant, of your letter of the previous day's date. In re|)ly to your request, thai 1 should submit, your proposals I'or a change in tho Kailvvay Clause of tho Terms of Union to the Local Administration, for their consider- ation and acceptance, I have the honour to inform j'ou that 1 am not in a position to advise His Excellency tho Licutenant-(Jovcrnor in Council to treat such proposals olli(;ially ; nor can I tender such a Ivico until 1 shall have been informed that you have boon specially accredited to act in this matter as tho Agent of tho General Government, and that they will consider your acts or negotiations in tho matter lunding upon them. I have, i\:e., (Signed) G. A. Walkkm, Attorney-ireneral, ;|52 Kaii.way I'apers. 1880 No. 48. Jitport of the Rvecutivc Cbuncil approve! hy the Lieutcna nf -Governor on fhr ISfh May, 1874. On i\ momoraiulum, datod UUh :Ma3', 1874, from the Honourablo the Attorney- furihor, whothor he has any power to ciiler into any nei;otiations with this Govei-nmcnt. The ConmuLtee advise that the recommendation be approved. (Certified) W. J. Armstrong, Minister of Finance and Agriculture, and Clerk of the Executive Council. No. 4.9. .Mr. J. D. Edgar to the Honourable G. A. Walhem. Victoria, May 18th, 1874. Siu,_l hjive the honour to ackuowledge having received your letter of the 11th instant, just letore leaving for the Mainland. I am sure vou cannot have forgotten that letters from the highest dignitaries at Ottawa which have been long ago delivered by rtie, both to His Excellency the Lieuten- ant-Governor and to yourself, have informed you that I came to this Province on behalf of the Dominion Government, and possessing'their entire confidence. In my communi- cation of the Sth instant, I stated most distinctly that I was making the proposals contained in it by the instructions and on behalf of the Canadian Ministry. You have, however, done me the honour of assuming that my statement was incorrect, and that I am acting without authority' and withoutlnstructions. I can afford to pass over without notice th'e personal insinuations, but I must most strongly protest against such ex- traordinary treatment of a document which emanates from the Government of Canada, upon a subject of such deep and pressing moment to British Columbia. 1 have, therefore, the honour to request that the proposals of the Dominion Govern- ment may receive the consideration at, the hands of the Provincial Administration to which such communications are entitled, and which the extreme importance of the subject demands. I have, &c., (Signed) J. D. Edgar. NO..50. Hon. G. A. Walkem to Mr. J. D. Edgar. Victoria, May 18th, 1874. SiR._In reply to your letter of this date, I must express my suprise and regret that vou should have taken umbrage at the contents of my letter of the 11th instant. 5lr. Mackenzie in an unofficial— and in his only— letter to me, respecting your visit, lias expressly narrowed and confined the object of your mission to the holding of a personal interview with my colleagues and myself, in order that our " views regarding "the policy of the Government on ihe construction of the Pailway" should be ascer- tained without "tedious and possibly unsatisfactory correspondence "—I quote his wf.rds. These things having been done, the special aim desired, 1 may be permitted to think, has been attained by .Mr. 31ackenzie. When, however, you proceed further, and propose changes to this Government of the gravest importance to the Province, 1. must be pardoned for considering it my duty, in my public capacity, to ask for your official authority for appearing in the role of an agent contracting for the Dominion of Canada. This information I have not yet received. I have, tvc, (Signed) Geo. A. Walkem. 44 Vic. Railway Papers. m No. 51. Telegram. Victoria. 18th May, 1874. The Hon. Ji. W. Scott, Secretary of State, Ottaira. Canada. My Ministers request to be informed wboLlicr Mr. Edi^^ar is empowered to negotiate with this (Tovernmcnt, iind whether propositions purporting to be made by bim on behalf of the Dominion Government, will be considered binding b}^ that Government. (Signed) Joseph W. Trutch, Lieutenant-Governor. No. 52. The Lieutenant-Governor to the Secretary of State for Canada. British Columbia, Government House, 18th May, 1874. Minute of Execu- gm — J havc the honour to enclose herewith a Minute of the Executive tive Council. y". . , , . ^-. . » . i • i j i i • r Council ot this ±*rovince to state that, in accordance with the advice ot vnj tei. Mess., May Ministers therein exprcssctl, I havc this day addressed to you a messago 18th, 1874. ijy telegraph, of which a copy is appended hereto. I have. c^:c., (Sigueu) Joseph W. Trutch. No. 53. Telegram. Ottawa, May 20th, 1874. To Lieutenant-Governor Trutch: — I refer Ministry to my letter by Mr. Edgar, which sufhcicntly indicated his mission, and which they recognized. He is now recalled, and 1 await his return and reports. (Signed) A. Mackenzie. No. 54. Telegram. Victoria, Maj' 2l8t, 1874. J foil. A. Mackenzie, Ottawa. "Will you kindly answer Governor's telegram fully. Do 31 r. Edgar's propositions (Signed) (J eg. A. Walkem. to change railway terms bind your Government. No. 55. Ju'piiii iif the. liicnilirc Oniidil, iijij/rorcd hy the [jieittenant-Gor'crnnr on the 2\.st daij of May, 1874. The Committee of Council havc ha'l under cont-i leration the subject of the non- fulfihncnt, by the Dominion (Government, o( the 11th or Railway Clause of the Terms of Union; and in view of the importanci; of the quesiion as aflecting the whole Province, they recommend that a letter of Mr. J. D. I'Mgar, dated Slh May, bS74, addressed to the Honourable Attorney-General, and the Orders in Council, the Telegrams, and the cor- respondence relating thereto, be published for general information. 1^5i Railway Papers. 1880 The Committee remark that the letter alhuled to by Mr. E(l,-;ar as havint; been delivoreJ bv him to your Kxeelleiiey, is the only document beariu^-ou the subject which will not be 'published. This letter they have never seen, nor have they any further ki At (Certified) W. J. Armstrong, Minister of Finance and Agriculture, and Clerk of the Executive Council. will not be published. Th\s letter lUey nave never seen, nor iiavo tiiey any lurtner knowledije of it bevond the reference made to it by your Excellency as a letter received bv 3-ou from IIis Kxeellency the (iovei-nor-tJeiieral marked "private and oontideiitial," ftnd therefore not coinuuinicated to the Council. No. 56. Telegram. Ottawa, Ontario, June 8th, 1874. To Lieutenant-Governor Truteh. Received at Victoria June 8th. On May Sth Mr. Edgar, on behalf of the Dominion Government, made certain pro- posals to vour Government respecting the construction of the Pacific Railway, which involved immediately heavy expenditure for purchases (purposes) not contemplated by the Terms of Union— in consideration of foregoing the limit of the time for the comple- tion of the Eaihvay. I exceedingly regret that your Government have not replied to the proposals, or apparently considered them. 1 beg, therefore, that you will now inform your Ministers that the proposals are withdrawn. (Signed) A. Mackenzie. No. 57. Order in Council, ajyproved by the Lieutenant-Governor 9th June, 1874. On a memorandum of the 9th day of June, 1874, reporting on a Telegram, laid before this Council by His Excellency the Lieutenant-Governor, yesterday received by him, from the Honourable Alexander Mackenzie, Premier of the Dominion of Canada, copy of which is enclosed, respecting certain proposals in writing made on the Sth of May last by Mr, Edgar to Mr. Walkem, and recommending that His Excellency be respectfully requested to send the enclosed telegraphic message in reply thereto. The Committee advise that the recommendation be approved. (Signed) Geo. A. Walkem, President Executive Council. No. 58. The Lieutenant-Governor to the Secretary of State for Canada. British CoLUMBtA, Government House, 9th June, 1874. Sir. — With reference to my telegraphic despatch to you of to-day's date, i have the honour to cnclo.sc a minute of my Executive Council, in accordance with which that telegram was addressed to you, together with copies (A the documents rcibrred to in the said minute, being cojiy of a telegram to me from the Honourable A. Mackenzie, which, at his request, I communicated to my Ministers, and a draft oi the telegraphic message to yoa in reference thereto sent by me at the instance of my Ministry. I have, &c., (Signed) Joseph W. Trutch, 44 Vic. Railway Papers. 166 No. 59. Telegram. The Honourable R. W. Scott, Secretary of State, Victoria, June 9th, 1874. O'ttaifa, Canada. My Ministers request me to state, in reference to a Telegram to me from Mr. Mackenzie, dated yesterday, that it couvej's the first direct information to this Govern- ment, (although such information was foi-mally applied for by Telegram to you of 18th May,) that the views on the Eailway question, contained in a letter from Mr. Edgar to Mr. Walkem, were proposals to this Government from the Dominion Government, and that they consider it remarkable that the only communication to this Government which acknowledges such proposals authoritative should at the same time withdraw them. (Signed) JosEPU W. Trutch. Lieutenant-Gover7ior. No. 00. Extract from the Montreal Weekly Gazette, May 15th, 1874. '• They were quite aware that the difficulties to be surmounted were extensive, and they were quite aware that the terms of the agreement with ]5ritish Columbia had been violated. Under these circumstances they thought that in the meantime the first step to be taken, was to confer with the Local Government of the Province of British Columbia, and endeavour to ascertain from them if any means could be arranged by which an extension of time could be procured for the prosecution of the work we were bound to undertake. With that view an agent was sent as a representative of this Government to visit that Province, and in the course of his communications with the Local Government, it became verj- apparent, as it had been made apparent in the House by several membei-s from the Island of Vancouver, that it was an exceedingly important matter with tlicm to have the road commenced at once. He, for one, was quite willing, if the Local Government were disposed to make some terms for the extension of time, that the Government should undertake the construction of the land portion as rapidly as possible, but if it became apparent that the Local Government were determined to adhere to the whole terms, then the Dominion of Canada could accede to the terms, and nothing more. Thc}^ instructed Mr. Edgar to say that the Government would be pre- pared immediately to undertake the commencement of the work on the Island, traversing northwards towards the point of crossing; prosecuting the surveys on the mainland, getting a passable route along the ridge, and erecting telegraph lines. Ho was also in- structed to state that as soon as the work could be placed under contract, they would spend no less than 81,500,000 within the Province on the railway. He did not know whether this had been accepted or not, but under any circumstances they should have authority to proceed with the work, as they thought would meet the just expectations of the country and the reasonable expectations of the people in British Columbia. The policy he had announced in his election address in November last had been closely ci'iticised by the honourable gentlemen opposite. He had his own impression as to the course to be jnirsued, and he thought, if lie recollected rightly, that the right konoui-able gentleman opposite had said that it his views were adopted, British Columbia would bo justified in seceding from the Union." No. 61. The Under Secretary of State for Canada to the Lieutenant-Governor. Department Secretary of State, lOth June, 1874. Sir, — I have the honour to aclcnowledgc the receipt of .your despatch, No. 28, of the 18th ult., jjurportiiig to enclose a minute ot your Executive Council, and also co])y of a te'cgrtim iouiidcl thereon, :ind sent by you to the Secretary of State on the 18th ult., on the subject ot the mission of Mr J. 1). Edgar to the (iovernment of British Columbia. The minute of Council referred to did not accompan}* your despatch. (Signed) Edguard J. Lanoevin, Ujider Secretary of State* 1^ RiLii^WAY Papers. J880 No. 02. The Secretary of State fur CaiuaUi to the Lieutenant-Governor. Pepautmknt Secretary of State, 25Lh J imc, 1874. Sm, I Ikivo tho honour to ackiiowlediijo tho receipt of your Despatch, No. 39, of tbo 9ib histaiit, traiisiniltiiiiji; ii copy of a minute of your Executive Council, together with a copy of a tolograni atldrossed to you by the Honourable tho Minister of Public Works, and also of a tolegnun adilrosscd Ijy you to the Secretary of Slate, in reply tborolo, on the subject "of the mission of Mr. J. D. Edgar to British Columbia, in couucclion wiih the I'acitk- Railway. I have, c\:c., (Signed) Edouard J. Lanoevin, Under Secretary of State. 63. 77i(' Lieutenant-Governor to the Secretary of State for Canada. (Copy of No. 40.) British Columbia. Government House, 26th June, 1874. Minut* of fx. t?iR, — I havc the honour to acknowledge the receipt of your Despatch of •cuuvo coumii. ^1,^3 lo^h i,^^,.j,jt^ i.^.iVi.,.i,^„. to my Despatch, No. 28, of the 18th May, and Copy of informing me that the Minute of Executive Council, which my said Despatch Telegram. purported to cnclosc, had not reached you. I Leg to enclose herewith a duplicate copy of the said Minute of Council, and of the telegram to you based thereon. I have, &c., (Signed) Joseph W. Trutch. No. G4. Mr. Edgar to the Secretary of State for Canada. Toronto, June, 17th, 1874. Sin, — I have the honour to report that in the month of February last I was requested by the Canadian Government to proceed to the Province of British Columbia on their behalf. .My mission was for the purpose of ascertaining the true state of feeling in the Province upon the subject of certain changes which wei'e deemed necessary, in the mode and in the iiuiit of time for the construction of the Canadian Pacific Pailway, as well as to atteufl to any other business required, and to act as Canadian agent in bringing about some such f'jasible arrangement as might meet tho general approval of the Local Gov- ernmcnl ami the pco])leof British Columbia, in place of the original conditions respecting the commencement ami completion of the railway that are contained in the Eleventh Article of the Terms of Union. In that clause the language referring to railway con- s:ruction is as follows: — "The (aovernment of the Dominion undertake to secure the commencement simul- " taneously, within two j'cars from tlie date of Union, of the construction of a railway •' from ihe Pacific towards the Piocky Mountains, and from such point as may be selected " ca.st of the liocky Mountains towards the Pacific, to connect the seaboard of British •' Columbia with the railway system of (."anada; and further to secure the completion '■ of such i-ailway within ten years from the date of the Union." The views ami policy of his Government up(;n the question of the Canadian Pacific Pailway were communicated to me in several interviews i.>y ihe Hon. Mr. Mackenzie, and I also bad the benefit of cfinver.salions upon the same subject with many members of ll)e Administration before I left Ottawa. On ihe eve of my departure I received from Hon. Mr. .Mackenzie certain further instructions and directions for my tjuidance, which were contained in the following loiter: — (preciation of the agreement that a vigorous expenditure of itself involves au aceom|ilishment ot the work within a reasonable period. In the Provincial Constitution of British Columbia the working of representative institutions and responsible parliamentary government may be studied in a simple form. The system is elaborated out of perhaps slender materials, but has been courageously fashio'ned after the model of the British Constitution. The people are represented by a House of twenty-five members, of whom thirteen arc elected from the Mainland and twelve Irom the Island. In this House sit the Ministers of the Crown, four in number, two being Island members and two from the Mainland. The deliberations are presided over by a Speaker, and due respect for the dignity of the Assembly is maintained by a Sergeant-at-Arms. Although I had not the fortune to be in the country when the House was in session, I was able to discover among the gentlemen who hold seats a considerable nuniber of much experience and somewhat above the average intelligence of Provincial legislators. To those accustomed to older Canadian constituencies, each with populations varying usually from fifteen to thirty thousand sou-Is, it is somewhat novel to see the smallness ot electoral districts in British Columbia. Yet it would be quite unfair to fix the number of electors as the standard of the intelligence of the representative, for one of the ablest of the Provincial Ministers, after an exciting contest at the last election, succeeded in ])olling but sixteen votes in his constituency, whilst his opponent suffered a decisive defeat, having polled exactly half that number. The Session of the Provincial Legislature had terminate*.! on the 2nd March, a week before my arrival, and the House had unanimously agreed to a resolution upon the subject or railway clause, in the Terms ot Union with the Dominion, which w^as calculated to have an important bearing upon all negotiations with the local Government for a change in that clause. The language of the resolution is as follows : — "That in view "of the importance of the Pailway Clause of the Terms of Union between Canada and '■ British Columbia being faithfully carried out by Canada, this House is of opinion that " no alteration in the said clause should be permitted by the Government of this Province '• until the samt has been submitted to the people for endorsatioti." When I ascertained that this resolution had been passed, that the Provincial Parliament had yet more than a 3'ear to run and that the Ministry had in it a sufficient working majority, it at once became apparent that any proposals to alter the railway clause could possess few attractions in the eyes ot the party in power. While prepared to admit that the Province would be most reasonable, and would not be disposed to insist at all upon the original time limit for completion, yet members of the Administration, looking at it Irom their own point of view, very naturally urge that this was a peculiarly unfortunate tiiLC to seek any alterations. I also discovered that the first Act of the Provincial Statute Book of 187.3-4 contained elements of danger to the continued harmony between the General and Local Governments. This Act became necessary to authorize the Provincial to receive from the I'ominion Government the large suras of money, both for the Esquimalt Graving L'ock, and for other public works, which the Local Govern- ment petitioned the Dominion Government to advance, and which requests the latter complied witli as concessiojis to the Province in excess of what could be claimed under Articles two and twelve ol'the Terms of Union. A saving clause or proviso was inserted in this Act containing very strong language concerning the rights and wrongs of British Columbia as regards the railway, and adding: — "This Act shall not have any force or "effect unless the above proviso be inserted, in the same words, in any Act of Parlia- "ment of Canada which may be passed for the purposes of this Act." A profound anxiety at once manifested by Mr. Walkem and his colleagues to 44 Vic. Railway Papbrs. 169 ascertain through me if the Canadian Ministry would propose to Parliament to adopt the words of this proviso. When I sought to get from them some proposals or sugges- tions as to their terms of the concessions that should be made to British Columbia, in consideration of a change in the railway terms, I was continually met by an urgent enquiry as to what was to be done about that clause. As early as the 16th of March, I was informed by telegram that the Dominion Government would not adopt the language of the proviso in their bill, but would make the concessions as originally agreed, and without conditions affecting the railway terms. The announcement of this was received by the Local Ministers with alarm and disappointment, and it afterwards became still more difficult to get a satisfactory discussion of an alteration of railway terms with any of them. Orders in Council were passed b}' the Local Government upon the subject, and I was continually urged to press upon the Dominion Government the anxiety of the Provincial Ministry for the adoption of the saving clause, and I took many opportunities of doing so. This pressure continued without intermission until the 25th April, when at the request of Mr. Walkcm, I sent a despatch to Mr. Mackenzie on behalf of the former, and in his own language urging the adoption of the saving clause. "When, according to instructions, 1 endeavoured to ascertain from Local Ministers if their unwillingness to submit proposals as to railway to the people arose entirely from our refusal to adopt the saving clause. I found that even such a concession would not induce them to bring about an appeal to the people. According to instructions received, it was my aim from the very first to take every means of ascertaining the popular view of the railway question. Indeed when it was understood that the Canadian Government had delegated me upon this and general matters, the politeness and hospitable attentions of all classes soon rendered it an easy matter to form some estimate of public opinion. All were as willing to communicate as I was anxious to receive their various views and information. I paid two brief visits to the Mainland, meeting with people of New Westminster, Hope, Yale, and some few other places, and I was so fortunate as to meet, at one time or another, nearly all the members of the Local Legislature, and many other persons of local prominence frooi the Mainland. The Lieutenant-Governor and the Hon. Captain Hare, Senior Naval Officer at Esquimalt, kindly afforded me an opportunity of visiting the East Coast of the Island, in company with them, on board of H. M. S. Mxjrmidon. In discussing the question of the time tor the completion of the railway, I elicited a very general expression of opinion that there was no great importance attached to any particular period for completion, but that serious disappointment had been felt at the failure to commence the work of actual construction by July of last year. Much anxiety was felt for an announcement of the policy of Canada upon the subject of the railway, and an extreme desire prevailed to have definite understanding arrived at as to what the Province could expect in place of the original railway terms, which were all but universally admitted to be incapable of literal fulfilment. The public agitation in Victoria, of February last, might have been mistaken for a movement to insist upon " The terms, the whole terms, and nothing but the terms," or to seek some disloyal alternative. Indeed a portion of the community, who did not sympathize with the excitement, so interpreted it. Yet I was assured by the leaders of that agitation that no such motives or intentions influenced them. The people had been aroused, by what were deemed suspicious circumstances, to fear that efforts would be made, or were being made, to secure from the Local Government an agreement to change the railway terms without a submission to the people who had directly sanctioned the original terms. The local contradictions had scarcely been accepted as satisfactory upon this point, but my denial of it on the part of the Ottawa Government, coupled with the announcement that the lalter would not seek to secure any alteration without the sanction of the people of the Province, set that difficulty very much at rest. Notwithstiiiiding the attitude that was as.sumed by the Provincial Government against the suljinission of a pi'oposal, or the o])eiiing of negotiations to alter the railway terms, it was quite apparent that jiopular feeling, all over the Province, was strongly in favour ofsonie definilc setilement heing arrived at upon the question. The notorious and admitted failure of the original scheme of railway construction had unsettled the business of the country, and the whole community, including even those who would have been the most exacting in bargaining with Canada for new terms, wore anxious to have apro- posal made and to have a full opportunity for discussing and accepting or rejecting it. 13 170 Railway Papers. 1880 1 folt therefore, that I shoxild tnko ivn ojirly opportuiuly of arriving- ut tho views of the LoouUJovornmont upon tho subjoct. I was o-ivon an appointment l)y Mr. Walkem in the tirst week of April, and then (.'ontiaenlialiy discussed with his iMinistvy tho whole question of alteration in tho radway tonus. I may mention that upon this occasion no difficult V was raised as to my authority to represent the General Government. \i this lime there was considerable irritation dis])layed by Ministers upon the sub- ject at the saving clause before alluded to; they would not admit any necessity for a present settlement^ of the railway question, but still persisted that next year, or some luiure time, should be awaited for the makinoj of any such propositions; and they were particularlv careful to avoid saying what concessions in their opinion would bo accept- able to the Province in lieu of tho'original terms. The attitude of the Local Ministry rendered it more important than ever that tho popular feeling should be accurately ascertained, and it was my aim to discover it by unreserved discussion with as many men as possible of tho ditVerent parties and localities. It was now quite apparent that tho Local Ministers were detormined to bo obstruc- tive, and it became all tho more necessary to satisfy tho people in so far as their views were found to bo reasonable. After receiving from me the best information I couUl supply, Hon. Mr. Mackenzie directed me to make the Provincial Government certain proposals which wore so arranged as to give hxrge and certain advantages to the Main- huul equally with the Island; and on the 6th May, I was instructed to put them formally in writing and give them to the Local Premier and a copy to the Lieutenant-Governor. Tpon tho Stfi May I had prepared, and I road over to Mr. Walkem, tho letter of that date containing the proposals {See No. 45, p. 159), and upon the following day I handed it to him, and furnished a copy to His Honour the Lieutenant-Governor as directed, accompanied with a short note (S:: ^oA6, p. 161). I had made arrangements for another visit to tho Mainland to ascertain something more of the feeling there, while the Provincial Government were having tho proposals under consideration. Before sailing lor :New Westminster, however, I received the letter from Mr. Walkem {See No. 47, p. 161), in which he raised objections to recognizing me as the agent of the General Government. It struck me as so peculiar a communication on Mr. Walkem's part, after he and his colleagues had recognized me as such agent almost every day for two month.s, that I felt it'xvould be better not to be too hasty in accepting that as a serious and final reply to the proposals, but to await tho lapse of a few days to be occupied by mo in visiting New Westminster, Burrard Inlet, Yale, and some other places on the Mainland. Upon returning to Victoria on Saturday, 16th May, I was waited upon by a deputation of leading gentlemen, connected with both sides of local politics, who informed me that it had been announced in the House of Commons at Ottawa, by Hon. Mr. Mackenzie, that proposals had been made on behalf of his Ministry, through myself, to the Provincial Government as to the alteration of the railway terms; and yet that it was denied by members of the Local Ministry, and by their newspaper organ, that any proposals what- ever had been made. They represented that the popular feeling was very much excited upon the subject, and that the people were anxious to have the earliest opportunity of considering and deciding upon tho question, and I was asked to inform them Avhother such proposals had been made. Upon receiving an affirmative reply they took their leave, and shortly afterwards, as the intelligence spread, considerable excitement was manifested at the treatment tho proposals were receiving at the hands of Local Ministers. In order to afford Mr. Walkem another opportunity to reply to the proposals, or to consider them, if he were at all desirous of doing so, I again addressed him, and in a letter of 18th May {see No. 49, p. 162) endeavoured to point out that he could not ignore the communication of 8th May, and reiterated the requestor! behaUof the Government of Canada that the proposals shoubi receive the consideration to wliich they were entitled. In reply to this I received tho letter (No. 50, p. 162), and upon the IDth May, under directions from Hon. Mr. Mackenzie, 1 left Victoria upon my return journey without any further official communication with the Local Ministry. I may be permitted to mention that his Honour the Lieutenant-Governor, through- out the whole of my visit, was always most obliging in giving mo upon all public questions very full information, which his large experience in the Province rendered of the highest value. He also manifested an earnest wish to see a definite and amicable Bcttlement of the railway question speedily arrived at between the General and Pro- vincial Governments. 44 Vio. Railway Papeas. 171 In accordance -with the direction contained in the last paragraph of Hon. Mr. Mackenzie's letter to raeof the 19th February, I took every opportunity during my stay in British Columbia of rioting various matters connected with Dominion business and interests. In several despatches to Heads of Departments, as well as in verbal commu- nications with Ministers, 1 have already called attention to some important subjects of that kind, and I propose to have the honour of communicating in separate reports or despatches upon several other points of interest and importance connected with Dominion affairs in the Pacific Province. I have, &c., (Signed) J. D. Edgar. No. 65. The Lieutenant-Governor to the Secretary of State for Canada. (No. 40.) Government House, 11th, June, 1874. Sir, — I have the honour to enclose for the consideration of His Excellency the Governor-General a Minute of the Executive Council of this Province, representing that British Columbia is suftering great injury from the failure by Canada to carry out the obligations of the 11th Clause of the Terras of Union, and that it is advisable, in the interests of this Province, that the case be laid before the Imperial Government, by means of a Memorial to be presented to the Secretary of State for the Colonies by the Attornej^-General of British Columbia, as Special Agent and Delegate of this Govern- ment. In accordance Avith the advice of my Ministers, I have appointed the Honourable George Anthony Walkem, Attorney-General of this Province, to be such Special Agent and Delegate; and at their request I beg you to inform His Excellency the Governor- General that Mr Walkem has been duly appointed as such Special Agent and Delegate, and to move His Excellency to acquaint the Eight Honourable Her Majesty's Principal Secretary of State for the Colonies that Mr. Walkem has been authorized and instructed to place in his hands the Memorial of this Government appealing to Her Majesty, and to support the j^rayer thereof. Mr. Walkem will proceed to Ottawa by the next mail, and will take with him a duplicate of this Despatch. I have, &c., (Signed) Joseph W. Trutoh. No. 66. Report approved by the Lieutenant-Governor on the llth June, 1874. The Committee of Council have had under consideration the Memorandum of the Honourable Provincial Secretary, dated llth June, 1874, representing that the essential clause of the Terms of Union provided that the Government of the Dominion should secure "the commencement simultaneously of the construction of a Pailway from the " Pacific towards tiie Pocky ]\I()Uiitains, and from such point as may be selected East of " the Pocky Mountains towards the Pacific, to connect the seaboard of British Columbia •' with the Jiailway system of Canada; and, further, to secure the completion of such " Pail way within ten years from the date of Union." That the set time for commencement of the work passed nearly a year ago, and that no commencement of construction has yet been made. That the Secretary of State of the Dominion has informed this Government that no commencement can be made this year, in consequence of the surveys being incomplete. That, by order of the Privy Council of Caiuula, it was decided last year that a portion of the line be located between the harbour of Esquimalt and Seymour Narrows; and that, in consequence of that order, and at the request of the Dominion (iovcrnment, the lands for a width of twenty miles along that line have been reserved by the Pro- vincial (jovernment. That the Premier of the Dominion Government has, in an informal manner, but nevertheless in a manner acknowledged to be at the instance of the Dominion Govern- ment, offered immediately to undertake the commencement of the work, provided that British Cc^liuiibia would agree to certain terms of relaxation. JY2 Railway Papers. 1880 That the relaxation proposed was, that liritish Coluinbia sliouUl at?rco to cancel tho Railway Clause ot" the Terms, as regards the inaiiiluiul part ot the Province, and accept in lieu thereof a promise to build a waggon road after tiio lino of railway had been per- manent Iv located, on tho completion of "which, at an undefined time, railway construction ■would bo comineueed. That such proposal has, however, boon withdrawn. That, according to the preamble of tho «' Canadian Pacific Railway Act, 1874," the railwav is to be constructed as rapidly as tho same can be accomplished without raising the rate of taxation. That the bearing of tho Dominion Ciovornmcnt towards British Columbia is equiva- lent to the repudiation of tho liability of the Dominion to fulfil as far as possible the eu'^igement made respecting the construction ot tho Pacific Railway. * That, by the course of action taken by the Dominion Government, British Columbia has sustained and is suftering great injury and loss. That with a view to obtain redress, it is advisable that tho case of British Columbia be submitted for the consideration of the Imperial Government. The Committee concur with tho recommendation, and advise that your Excellency do charge the Honourable tho Attornej'-General and tho Provincial Secretary with the preparation of a memorial and remonstrance on behalf of the Province regarding tho non-fulfilment of the Terms of Union by tho Dominion Government, to bo submitted to Her Most Excellent .Majesty the Queen in Council. Tho Committee further advise, should this Report be approved, that tho Flonourablo George Anthony WalUem bo appointed a Special Agent and J)elog:ite, instructed to proceed at once to London, for the purpose of placing tho Memorial in the hands of the Right Honourable the Secretary of State for the Colonies, and of supporting the prayer thereof; and request Your Excellency to inform the Governor-General of Mr. Walkem's appointment, and ask that he be provided with a suitable introduction to Her Majesty's Principal Secretary of State for the Colonies. (Certified) W. J. Armstrong, Clerk, Executive Council. No. 67. Report of the Executive Council, approved by the Lieutenant-Governor on the llfA June, 1874. On a Memorandum dated 11th June, 1874, from the Honourable the Provincial Sec- retary, reporting with reference to the breach of tho Terms of Union by the Dominion Government, and the Appeal to the Imperial Government thereon arising, that it is advif^able that a telegram be sent to the Imperial Government, informing them that British Columbia is about to appeal against the breach, by tho Dominion Government, of the Terms of Union, and that a Delegate froni this Government is about to leave for London, to lay such Appeal before the Imperial Government. The Committee concur, and advise that Your Excellency do telegraph to that effect to the Right Honourable tho Secretary of State for the Colonies, and also through the proper channel to His Excellency the Governor-General, for the information of the l>on?inion Government. (Certified) W. J. Armstrong, Clerk of the Executive Council. No. G8. The Under Secretary of State for Canada to the Lieutenant-Governor. Department Secretary of State, 11th July, 1874. Sir, — I have the honour to acknowledge the receipt of your despatch, No. 40, of the lltb ult., concerning a copy of a Minute of your Executive Council, in reference to the alleged failure ot the Dominion Government to carry out the obligations of the llth clause of the terms of Union, and recommending that the case be laid before the Imperial 44 Vic. Eailway Papers. 173 Government by means of a memorial, to be presented to Secretary of State for the Colonies, by the Attorne^'-General of British Columbia as special agent and delegate of the Government of that Province. I am, (tc, (Signed) Edouard J. Langevin, Under Secretary of State. No. 69. Lieutenant-Governor Trutch to the Earl of Carnarvon, Government House, Yictoria, 11th June, 1874. My Lord, — I have the honour to state that I have, at the instance of my responsible advisers, addressed to your Lordship a telegraphic despatch to the following effect: — <* Colonial Secretary, London, 11th June, — " Ministry desire to notify you that Delegate proceeds immediately London, pre- " sent appeal British Columbia against breach by Canada Eailway Terms Union." I have, &c., (Signed) Joseph W. Trutoh. No. 70. The Lieutenant-Governor to the Secretary of State, Ottawa^ Canada. Yictoria, B. C, June 11th, 1874. My Ministers desire me to acquaint Dominion Government that tbey have resolved to appeal to Imperial Government upon J^aihvay question, and that I have to-day, upon their advice, addressed the Secretary of State for Colonies following Telegram: — " Colonial Secretary, London, — •' Mini.stry desire notify 3'ou that Delegate proceeds immediately London, present " Appeal British Columbia against breach by Canada Eailway Terms Union." I have, &c., (Signed) Joseph \Y. Trutch. No. 71. The Lieutenant-Governor to the Secretary of State for Canada. Government House, Yictoria, 11th Juno, 1874. Sir,— I have the honour to enclose with reference to my telgraphic despatch to you of this .4. Yqx^y Lonlship that ^Ir. WalUem, the Attornoy-CTcneral of the Province of Columbia, has boon tloputcd by that (lovernnient as a Special Agent to lay before Your Lordship the claims ot l^ritish Columbia, under the 11th Clause of the Tei'ms of Union with the Dominion ot Canada. I have, ritish Columbia, together with the petition to 2na Julv, 1S<4. ,, ,, . , . , 1 r- ,1 • 1 1 • , 1. tr- ■ Her Majesty therein retcrred to iroia the inhabitants ot Victoria, respecting the non-fulfilment by Canada of the Terms of Union I have, (fcc, (Signed) Dufperin. No. 103. The Governor-General to the Earl of Carnarvon. Sault Ste. Marie, July 31st, 1874. Mr LoiiD, — In further reference to your public despatch. No. 110, of 18th June, which 1 communicated to my Ministers, I have the honour lo enclose an approved Order 23tdjoiv '" Council, in which my (jovcrnment sets forth more at large its views with res- pect to its pending dispute with British Columbia, and expresses a desire that Your Lordship would use your good offices in promoting a settlement of the misunder- standing, in accordance with the suggestion you have been good enough to make. I have, &c., (Signed) Dupperin. 44 Vic. Railway Papers. 191 No. 104. Report of the Privr/ Council, approved by the Governor-General on the 23rd July, ]874. The Committee of Council have had under consideration the despatch from the Right Honourable the Secretary of State for the Colonies No. 110, relative to the pro- posed mission of a member of the British Columbia Government to England, for the purpose of complaining of the alleged non-fulfilment of the Terms of Union between that Pi'ovince and the Dominion, as to the construction of the Pacific Eailway, and containing an oftor on the part of Lord Carnarvon in the following terms: "If both Governments ''should unite in desiring to refer to my arbitration all matters in controversy, binding '•themselves to accept such decision as I may think fair and just, I would not decline to "undertake this service;" and further stating that he could not assume such duty ** unless b}- the desire of both parties, and unless it should be fully agreed that my decision, '• whatever it may be, shall be accepted without any question or demur;" concluding with a request that, in the event of this offer being accepted, a statement of the case should be prepared by each Government, to be submitted for consideration. The Committee advise that Lord Carnarvon be informed that the papers already transmitted to the Colonial Office, with the Minute of Couucil of July 8Lh, having special reference to Mr. Walkem's communication in Otl;;wa of the 15th July, convey sub- stantially all that this Government have to say upon the subject; and that the Govern- ment would gladly accept his Lordship's offer, if it were possible to define, with any degree of exactitude, the matter in dispute. When the present Government assumed office, they found that the British Columbia Government had protested against the non-commencement of works of construction on the railway on or before the 20th da}^ of July, 1873, as agreed to in the eleventh section of the Order in Council relating to the Union. They also found that the means taken by the late Dominion Government for proceeding with the works of construction had totally failed, although the works preliminary to an actual commencement had been l^rosecuted with all possible dispatch. There can be no question of the extreme difficulty involved in the survey of a line of railway across an uninhabited continent, a distance of twenty-five hundred miles. To properly comi:)letc this survey and ascertain the best route for the railway, would require not two years simply, but at least five or six years, as all experience of works of this magnitude and character both in the Dominion and elsewhere has sufficiently demonstrated. The expenditure which had taken place up to that time was very large, exceeding one million of dollars, and yet the engineers had been quite unable to locate any portion of the line in the more difficult parts of the countrj' to be traversed. Under these circumstances th(! Govcrimient conceive that there was no reasonable or just cause of complaint on the part of the British Columbia Government. No other steps could have been taken further than prosecuting the surveys until the assembling of Parliament towards the close of the month of March of this year. The (tovernment were then j)rcpared with a new bill, taking ample powers for pro- ceeding with the works as expeditiously as the circumstances of the countr}' would permit. iNo complaint, official or otherwise, has been made as to the sufficiency o( this measure to accom])lish the object in view. It was distinctly understood by the Jiritish Columbia delegation at the time the 'J'erms of Union were agreed upon, that the taxation of tiie countiy was not to be increased on account of this work beyond the rate then existing. So anxious, however, were the present Government to remove an}' possible cause of complaint, that ihey did take means to increase the taxation ver}' materially in order to place themselves in a jiosiiion to make arrangements for the prosecution of the initial and difficult ))ortionH of the line as soon as it was jiossiblc to do so, — and, at the same time, a 8j)ecial confidential agent was deputed to Hritish Columbia for the express pur- pose of conferring with the Government of that Province, and to ondeavour to arrive at some understanding as to a course to be pursued which could bo satisfactory to British Columliia and meet the circumstances of the Dominion. It should be mentioned that before the late (Tovernment I ,ft office it had been dis- tinctly understood, as ouc of the results of the visit to Englaud by the Directors of tho 192 Railway Papers. 1880 Allan Compauy, that an extension ot time of at least four years would be absolutely necessary. Mr. Walkeni, of r>ritish Columbia, quite understood this, and there is reason to bolicve that it -would have been assented lo by all parties. The proposal niaile througli Mv. Edijjar to the British Columbia Government is one which tho Dominion (Jovernment think sliould iiave been accepted as reasonable and just, «nd as one quite in accordance Mith the moral obligations imposed on this Govern- inont. if not with the actual letter of the agreement. It must be remembered that British Columbia earnestly petitioned the Dominion Government to modity the Terms of Union in its own favour, in relation to the con- etruction of the Graving Dock. The Dominion Government cordially assented to provide the money for the construction of the work, instead of abiding by the agreement to gimranteo merely the Provincial bonds for ten j'cars, as provided by the Terms of Union. This at once shows the liberality of the Dominion Government, and their willingness to consider and meet exceptional circumstances wherever they existed. And this mani- festHtion of liberality on the part oi this Government they conceive should have been rociprooated in other matters by tho Provincial Government. The Dominion ^squimalt to Nanaimo. (2.; That the surveying parties on the mainland are numerically very weak; and that there is no expectation in British Columbia or guarantee given on the part of the Dominion, that the surveys will be proceeded with as speedily as possible. (3.) That the people of British Columbia do not desire the waggon road offered by the Dominion Government, as it would be useless to them; and that even the telegra])h proposed to be made along the line of the railway cannot, of course, be made until the route to be taken by the railway is settled. (4.; That "The moment the surveys are compKted," is not only an altogether uncertain, but, at the present rate of proceeding, a vei-y remote period of time, and that an expenditure of 81,500,000 a year on the railway within the Province will not carry the line to the boundary of British Columbia before a very distant date. 8. Mr. Walkem further urges that l.'y section 11 of the Canadian Pacific Pailway Act of 1874, it is competent to the Dominion House of Commons to reject at any time the contract for a section of the railway, and thus to prevent the continuous construction of the work. 9. JJeferring first to this latter point, I do not understand that it is alleged by Mr. ^\ alkem, nor do I tor a moment apprehend that the proviso was introduced with any belief that it Avould delay the construction of the railway. I conceive that all that was intended b}- it was to retain the ])ower of exercising an adequate supervision over the financial details of the scheme; nevertheless, the objection stated by Mr. Walkem appears to IOC one which the Dominion Government should seriously consider, as their ]3olicy in 80 important a matter ought not to be left open to criticism, and British Columbia may fairly ask, according to the letter and the spirit of past, engagements, for every reason- able security that the railway will be completed as speedily as possible. 44 Vic. Railway Papers. 1^5 10. Strong as are, doubtless, the objections urged b}- Mr. Walkem to the pro- posals which I understand Mr. Edgar to have made on behalf of your Ministers, and important as is the subject-matter of controversy, I, as at present advised, can see no reason why the views of both parties should not be reconciled to their satisfaction and with justice to all interests concerned. 11. On the one hand I cannot entertain the ler;st doubt of the sincere intention of the Canadian Government and Parliament to adhere as closely as possible to the pledges given to British Columbia at the time of the Union; to do that which is just and liberal towards the Province, and in fact to maintain the good faith of the Dominion in the spirit if not in the letter of the original agreement under circumstances which I admit to be of no ordinary difficulty. 12. On the other hand, however, it would be unfair to deny that the objections stated by Mr. Walkem have a certain foundation and force, and I have every confidence in order to obtain the settlement of a question of such vital importance to the interests of the whole Dominion, the Canadian Government will be willing to make some reason- able concessions such as may satisfy the local requirements of British Columbia, and yet in no way detract from the high po.sition Avhich the Dominion Parliament and Govern- ment ought in my judgment to occupy. 13. I am of opinion, therefore, on a general review of all the considerations of the case, and as an impartial but most friendly adviser, who, if I may be allo^yed to say so, has the interests of both parties and the '^prosperity of the whole Dominion deeply at heart, that the following proposals would not be other than a fair basis of adjustment. 14. (1.) That the section of the railway from Esquimalt to Nanaimo should be begun at once. (2.) That the Dominion Government should greatly increase the strength of the surveying parties on the mainland, and that they should undertake to expend on the surveys, if necessary, for the speedy completion of the Avork, if not an equal share to that which they would expend on the railway itself if it were in actual course of con- struction, at all events some considerable definite minimum amount. (3.) Inasmuch as the proposed waggon road does not seem to be desired by British Columbia, the Canadian Government and Parliament may be fairly relieved of the expense and labour involved in their offer; and desirable as, in my opinion, the con- struction of the telegraph across the continent will be, it perhaps is a question whether it may not be postponed till the line to be taken by the railway is definitely settled. (4.) The offer made by the Dominion Government to spend a minimum amount of 81,50(1,000 annually on the railway within British Columbia, as soon as the surveys and waggon road are completed, appears to me to be hardly as definite as the large interests involved on both sides seem to require. I think that some short and fixed time should be assigned within which the surveys should be completed; failing which, some compen- sation should become due to British Columbia for the delay. 15. Looking, further, to all the delays which have taken iDlace, and which may yet perhaps occur; "looking also to the public expectations that have been held out of the completion of the railwa}-, if not within the original period of ten years fixed by the Terms of Union, at all events within fourteen years from 1871, I cannot but think that the annual minimum expenditure ot .$1,500,000 offered by the Dominion Government for the construction of the railway in the Province, is hardly adequate. In order to make the proposal not only i'air but, as I know is the wish of your Ministers, liberal, I would suggest for their consideration whether the amount should not Ijc fixed at a higher rate, say, for instance, at §2,000,000 a year. 16. The really important point, however, not only in the interests of the Province, but for the credit of the Dominion and the advantage ot the Em])ireat large, is to assume the completion of the railwa}' at some definite ]-)eriotl, which, from causes over which your Ministers have hail no control, must now, I admit, bo much more distant than had been originally- contemplated, and I am disposed to suggest as a reasonable arrangement, and one neither unri;ir to the Dominion nor to British Columbia, that the year 18U0 sliould be agreed upon lor this purpose. in making this suggestion, I, of course, con- clude that the Dominion Govcrnintiit will I'cadily use all reasonable eilbrts to complete (he line bel'ore any extreme limit of time that may bo fixed. A postj)onement to the very distant period which 1 have mentioned could not lail to be a serious disappoint- ment to the people of the Province, and to all interested in its welfare, and I should not 196 lUiLWAY pArERS. 1880 have suffirostod it woro it not for the full coiilideiioo which I folt in the determination of your .Ministers to do not merely the least that they may be oblijuod, but the utmost that they may be able, in redemption of the obligations whielii the^- have inherited. 17. 1 have now only to repeat the strong desire whieh I lecl to be of service in a matter, the settlement of which ma}- be either simple or difScult according to the spirit in whieh it is approached, a question directly bearing upon the Terms of Union may, if both parties to it will waive some portion of their own views and opinions, be well en- trusted to the Imperial authority which presided over that Union, and not improperly, perhaps to the individual Minister whose fortune it was to consider and in some degree to shape the details of the original settlement under which the Provinces of British 2s\M-th America were confederated, and British Columbia ultimately brought into con- nection with them. If indeed the expression of a personal feeling may, in such a case as this, be indulged, I may perhaps be allowed to say how sincerely I prize the recollec- tion ot the share which I was then permitted to have in that great work, how deeply I should grcive to see any disagreement or dilfercnce impair the harmony which has been so conspicuously maintained by the wisdom and good feeling of all parties, and how entirel}- your Lordship and 3-our Ministers may count upon my best efforts in furtherance of every measure that can contribute to the strength and honour of the Dominion of Canada. IS. It will be very convenient if your Government should feel able to reply by tele- graph, stating generally whether the modifications which I have proposed, and which seem to me consistent, with the present conditions of the question and with the true construction ot the policy adopted by them, arc in the main acceptable to them, in order that no unnecessary delay may take place in bringing this matter to a conclusion. I have, (fee, (Signed) Carnakvon. No. 109. The Governor-General to the Earl of Carnarvon. Ottawa, 21st August, 1874. My Lobd, — In continuation of u\y despatches, noted in the margin, on the subject Ko. 1&2, 9th July, 207, of the suggcstions made by your Lordship for the settlement of the 31st July. differences between the Government of British Columbia and that of No. 3,677, 29th July, ^'^^ Dominion, I have the honour to enclose a copy of a despatch from 1874. Lieutenant-Governor Trutch, acknowledging the receipt of the copy 1 sent him of your Despatch No. 110, of the 18th June. (>%e No. 87, p. U)3.). I have, &c., (Signed) Dupferin. No. 110. The Governor -General to the Earl of Carnarvon. (Canada) September 18th, 1874. My Lord, — In acknowledging the receipt of your Lordship's despatch, secret, of the 16th of August, in which yow have been good enough to convey to me your opinion as to the modifications which might be introduced with advantage into the terms already proffered by my Ministers for the settlement of the dispute now pending between this Government and that of British Columbia, I have the satisfaction of informing you that after a good deal of anxious deliberation Mr. Mackenzie and his colleagues have con- sented to adopt several suggestions recommended to them by your Lordship, should it be found absolutely impossible to terminate the controvei-sy in any other manner. 2. The general view of my Jilinisters on the various points referred to are set forth at large in the enclosed Order in Council from which your Lordship will gather that it is with very con.sideral-le reluctance they have been in.luced to make those further con- cessions, feeling so strongly as they do that their original proposals fairly satisfied the requirements of the case. 44 V*ic. Railway Papers. l^T 3. I have no doubt, however, it \y\\\ he felt throughout the country that the only mode by which the Dominion could be satisfactorily extricated from the false position in which she was placed by her treaty obligations to fulfil engagements which were physically impossible of execution, was by a large and generous interpretation of the consequent claims against her, 4. I have lurther the honour to transmit a sketch map of the area now under ex- ploration in British Columbia, accompanied by a memorandum by Ur. Fleming, the cngineer-in-chief, by which it will be perceived that every effort is being made to hurry forward the surveys with all possible dispatch, and that the employment of any additional staff would uselessly increase the expense without forwarding the work. I have, &c., (Signed) • Dufferin. No. 111. Jieport of the Privy Council approved by the Governor-General on the 11th September, 1874. The Committee of Council have had under con.^idcration the despatch of the Eight Honourable Lord Carnarvon relating to the complaints of the British Columbia Govern- ment with respect to the Pacific KaHway. and suggesting certain modifications ot the proposals made by the Dominion Government through Mr. Edgar, on the 8th May last. These proposals were prompted by a desire to provide against future difficulty, in view of the then well asceriained fact that the terms of Union had become impossible of literal fulfilment, on the one hand, and on the other hand giving due weight to the very strong iecling entertained against the fatal extravagance which these terms involved to the country. The proposals may thus be summarized: — 1. To build a railway from Esquimalt to Nanaimo, on Vancouver Island, in excess of the terms of Union, and to begin the work immediately. L\ To commence the construction of the railway on the mainland as soon as the surveys could be completed, and to expend on the work not less than one and a half millions annuall}'. 3. To take the neces.sary steps, meanwhile, to secure the construction of a telegraph line across the continent on the located lino for the railway, at the same time cutting out the railway track and building thereon a trail or road, which would become available as part of the permanent works. The arrangement proposed by Lord Carnarvon embodies some amendments. His Lordship suggests: — 1st. The immediate construction, as proposed, of the short line on Vancouver Island. •Jnd. After the location of the line the expenditure of two millions on the mainland, instead of one and a half millions. 3rd. The increase of the engineering force to double the number now employed; the expenditure on the survey, if not of an amount equal to the proposed annual expendi- ture on construction, of some other specific sum; the prescribing of a limited time for the completion of the survey; and the payment of a sum of money as compensation in the event of its not being so completed. 4th. The guarantee of the completion of the entire railway in 1890. It is also suggested that the construction ot the telegraph line and road need not be ])roceoded with, jis Mr. Walkem does not consider cither as of any use to the Provinco. The Committee recommend that the first consideration, which is precisely what was previously ollered. In; again concurred in. In regaril to the second proposal, the Committee recommend that Lord Carnarvon be informed (if it bo found impossible to obtain u settlement of the question by the acceptance of the former offer) that the (iovernment will consent that after the comple- tion of the survey, the average annual minimum expenditure on the mainland shall be two millions. There is every reason to believe now that a majority of the people of Columbia would accept the propositions previously mndo. Judging from a jjotition sent from the mainland, signed by G44 names (a copy of which petition is enclosed), there is almost an entire unanimity there in favour of these pro])08als, and assurancf-s were given very lately by a gentleniun of the highest position on the Island that tho course 198 Railway Papers. 1880 of the Local Govermuont would not moot lionoral appvovnl Ihore. An application was made bv one pronunoiit nontlonian. an ox-nu'iubor ot rarliumont, to tlio Government hero to'know if tho proposals ni:uIo AvonUl still be adhered to, he pledging himself to secure their acceptance by tho bulk of the people here. It is. therefore, earnestly hopetl that no change Avill be considered necessary, as it will lie ilitHcult to induce the countrj- to accept any further concessions. The third condition requires an increase of the engineer force employed on tho sur- veying service: the completion of the survey within a specilic time; and, in case that time should be exceeded, the pnyment to the Province ot a money compensation. Tho Committee respectfully submit that the result arrived at by tho foregoing sug- 'i-ostion is alreatly being accomplished with the utmost dispatch admitted by the circum- stauees of the case. The Chief Engineer was instructed to provide all tho assistance he required in order to complete the survej's within the shortest possible period, and he engaged a largo force, — a larger force, indeed, than can with profit be employed until the route is definitely determined. Whatever may be the route finally chosen, tho line will of necessity traverse a country with exceedingly rough topographical features for a distance of over five or six hundred miles trom the eastern slope of the Eocky Mountains to the extreme limit of the J'rovince on the Pacific. The country is an immense plateau, which maintains its general elevation to within a few miles of the sea, but often rises into unshapely mountain ranges. Some of these ranges tower to a height of over 9,000 feet. "The bouudar}' of the plateau on the west is the Cascade Eange. This forms a huge sea-wall along the coast, and has interposed a much more formidable obstacle to the purveyors than the Rocky Mountains. Attempts have been made at five or six points lo pierce tho barrier, but, except at the Fraser Eiver and at Bute Inlet, without success. From the results of last year's explorations, the Bute Inlet route seemed on the whole to be the best, but it is not unassociatcd with serious difficulties. For a distance of twenty miles the ascent or grade is abotit 150 feet to the mile. The straits which form the approach to the harbour from seaward are encumbered by islands, and, when reached, the harbour is found to be destitute of anchorage. The dangers of navigation are increased not alone by the precipitous and rocky shores, but by the rapidity of the tide, which rushes through the narrow channels with a velocity of from seven to nine miles an hour. It was supposed when work was resumed last Spring that a practicable route would be found from the point where Fleming's line touches the north branch of the Thompson Eiver westward towards what is known as Big Bend, on the Fraser Eiver, from which no serious impediment exists until the commencement of the rapid descent to the sea at Bute Inlet is reached. Had this supposition proved correct, it is probable the Government might have been prepared at the end of this year to proceed with the exact location of the line. But the explorations carried on to the close of July last, resulted in the discovery of a high range of mountains, w^hieh fill the country from near the junction of the Clearwater with the Thompson northward to the great Bend of the Fraser; and, without a very long detour south or north, they bar the way to the west. The Chief Engineer, therefore, advised a re-examination of the Fraser Valley, or, more correctly speaking, ravine, inasmuch as no broad valley anywhere exists, the rivers in iheir courses having cleft Avays for themselves through the rocks, which in some cases they have pierced to a depth of 1500 feet by a width of not more than a single mile, thus giving as the normal condition exceedingly precipitous banks. This new examin- ation of the Fraser River route will occupy at least the whole season. A memorandum from the Chief Engineer will give the strength of the force and show its distribution. Nearly two seasons were passed in examining the Rocky Moun- tain Range and the Valley of the Columbia, in the endeavour to obtain a favourable pass. The result was that the explorers were driven north to what is known as Jasper House Pass. These facts are mentioned to give some idea of the enormous labour involved, and the impossibility of placing a large force in the field to do engineering work, when it is not yet known where the engineering work is to be done. The exploratory survey must be tolerably complete before the exact location of any portion of the line can be 44 Vic. Railway Papers. 199 contemplated or possible, and before i^lans can be made of bridges and other works of construction required; and nothing but the urgency of the contract so impi'udently entered into with British Columbia would otherwise have induced the Government to employ more than half the force now engaged. As pointed out in previous memorandum, the expenditure to the end of last year in British Columbia alone was considerabl}' over half a million of monc}' more than the whole expenditure uj^on the two thousand miles eastward of that Province. 'J'he Chief Engineer was informed last winter that it was the desire of the Govern- ment to have the utmost expedition used in prosecuting and completing the surveys; and in the engagements which he has entered into these directions have been fully considered. The fourth engagement involves another precise engagement to have the whole of the railwa}' communication finished in 1890. There are the strongest possible objections to again adopting a precise time for the completion of the lines. The eastern portion of the line, except so far as the mere letter of the conditions is concerned, att'ects onlj' the Provinces east of Manitoba; and the Government have not been persuaded either of the wisdom or the necessity of immediately constructing that portion of the railwa}' which traverses the country from the west end ot Lake Superior to the proposed eastern ter- minus on Luke Nipissing, near Georgian Bay, nor is it conceived that the people of British Columbia could, with any show of reason whatever, insist that this portion of the work should be completed within any definite time, inasmuch as if the people who are chieflj" if not wholly affected b}' this liranch of the undertaking are satisfied, it is maintained that the people of British Columbia would practically have no right of speech in the matter. It is intended by the Government that the utmost diligence shall be manifested in obtaining a speedy line of communication by rail and water from Lake Superior west- ward, completing the various links of railway as fast as jjossible, consistent with that prudent course which a comparatively poor and sparsely settled country should adopt. There can be no duubt that it would be an extremel}' difficult task to obtain the sanction of the Canadian Parliament to any specific bargain as to time, considering the consequences which have alread}' resulted from the unwise adoption of a limited period in the Terms of L'nion for the completion of so vast an undertaking, the extent of which must necessarily be very imperfectly understood by people at a distance. The Committee advise that Lord Carnarvon be informed that, while in no case could the Government undertake the completion of the whole line in the time mentioned, an extreme unwil- lingness exists to another limitation of time; but if it is found absolutely necessary to secure a present settlement of the controversy by further concessions, a pledge may bo given that the portion west of Lake Superior will be completed so as to afford connection by rail with existing lines of railway through a portion of the United States, and by (/'anadian waters during the season of navigation, by the year 1890, as suggested. With regard to the ameliorating proposal to dispense with the formation of a road or trail across the country, and the construction of a telegraphic line, on the rci)re.n the whole matter was practically studied by the (iovernment of the Dominion, it seems to have been their decided opinion that "easy communication" across thu ConiiiK'iit could mean nothing less than a rail- way; and that, with respect to British Columbia, the "temporary drawback on the advantages" of Confederation, mentioned by Her ^fajesty^s (Jovernmont, should not bo allowed to last for more than ten years from klie date of Union. 204 Railway PAPTins. 1880 ITonoo tho Dominion undortook " to secure the commcnecmont sinniltanoously," on the 20th July, ISTo, "ol the oonstruetiou of a railway from tho Pacide towards the '• Koekv Mountains, and iVom such point as may bo soloctod, east of tho Eocky Moun- " tains,' towards tho Pacilic, to connect tho seaboard ot British Clolumbia with tho "railway syslem of Canada; and. further, to secure tho completion of such railway " within ten years Irom" July, 1871. And British Columbia, on her part, entered into certain obliijations in favour 'of tho Dominion, Avith regard to tho public lands of tho Province. The word -'simultaneously," which appears in this ag-reemont, was designedly inserted with two objects:— . •, i, Ist. That Canada should commence construction works at tho two most available points, and thus ensure tho early and rapid progress ot tho railway; and •Judly. That tho admitted disadvantages under Avhich British Coiumbia would hiboiir until the completion of the main lino should to some extent bo counterbalanced bv the beuetits ol early expenditure upon railway works in tho Province. ' The agroomcnt thus entered into was inserted in, and formed tho most essential part of, the Terms of Union mutually accepted, in 1871, by British Columbia and Canada. These terms were placed before tho people of tho Province at a general election. They were shortly afterwards considered and formally approved by tho Provincial Legislature. They were 'subsequently fully debated and accepted by both Houses of tho ParHament of Canada; and they w'ore finally sanctioned and ratitied by Her Majesty in Council. No question, therefore, could have boon more thoroughly ventilated— no conclusion more deliberately arrived at. As a strong practical proof of the continued interest felt by Her Majesty's Government in the success of tho Confederation thus established, the Imperial Parliament, in July, 1873, guaranteed a loan of £3,000,000, to be raised by Canada mainly for tho construction, among other public works, of tho Canadian Pacific Hallway. It may now bo useful to present to your Lordship a brief statement of .the manner in which the conditions of the Pailwaj' Agreement have been observed. The Petition of the Government of British Columbia shows the following facts: — That the Province has fulfilled her part of the agreement, and has endeavoured to aid the Dominion Government to carrj^ out their part; That the Dominion Government have not, during the three years succeeding union, made due effort to complete the railway surveys in British Columbia; That the Dominion Government did not, on the 20th July, 1873, commence tho "simultaneous" railway construction provided for in the agreement; That they also have hitherto failed to commence any railway construction whatso- ever in the Province, though they might have commenced such construction, as they admitted in May last that they were then in a position to begin the railway. Some further circumstances connected with those matters are detailed in the Petition. It is therein shown that in June, 1873, the Dominion Government selected the harbour of Esquimau, on the Pacific, as the western terminus of the Canadian Pacific Eailway ; that they at the same time decided that a portion of the main line should be " located " between this terminus and Seymour Narrows; that some weeks prior to the day named in the Agreement for the commencement of the construction of the main line, they secured from the Provincial Government " in furtherance of such construction" a reserve of a valuable tract of land lying along this projected line, and some 3000 square miles in area; that, as already stated, no construction whatsoever was or has been commenced within the Province; that the land so reserved has been thus rendered comparatively valueless to the Province, as it has ever since been closed to settlement and to tho investment of capital. Against the continuance of the above state of things, the Province, through its Legislature and its Government, from time to time entered protest after protest, but without effect, and without even eliciting any reply from the Dominion Government beyond a formal acknowledgment of the receipt of the despatch enclosing each protest. The last protest was forwarded in February of the present year; subsequently the correspondence took place which is appended to the Petition. Prom tho questions raised t)y this correspon lenoe, all those which aro unimportant may bo usefully elimin- ated. I propose, therefore (subject, perhaps, to a slight digression, where necessary), to confine my observations to the principal points in a letter from Mr. Edgar to yiysoit, which contains certain proposals as regards railway matters. 44fVic. Railway Papers. 206 The Provincial Government did not at the time understand that these proposals were officially made. They were subsequently withdrawn by the Dominion Govern- ment, and only at the moment of such withdrawal declared by them to have been made Avith their authority and on their behalf. The above letter, which thus became invested, though but for a brief time, with an authoritative character, is valuable as the only official intimation to the Provincial Governiuent of the polic}' of the present Dominion Government on the subject of the Pacific Eailwa}'. In addition to certain proposals or offers to British Columbia, the letter contains important statements and some specific admissions which favour the Provincial case. i shall discuss these offers seriatim, and endeavour to ascertain their value taken in connection with the conditions attached to thom, which conditions, as I shall afterwards show, virtually amount to a surrender by British Columbia of her existing railway agreement. 1 shall then offer some comments upon the above stateiuents and admissions, using gcuorall}', as far as may be, the language in which they are expressed in the letter, in order to lessen the danger on my part of any inadvertent misconstruction of their meaning. The offers made are as follows: — 'No. 1. The Dominion will " commence construction from Esquimaltto Nanaimo immediately, and push that portion of r;;il\vay on to com^ilction within the shortest practicable time." The offer to commence work immcdiatel}^ at Esquimalt (which, as already stated, was selected as the Western Terminus of the main line by an Order of tho Privy Council of Canada as far back as June 1878) is simply an offer to do what the Dominion was bound to have done in July l>7o, and what they might have done at any time since, and which they admit in this letter was quite practicable in May last. The offer, your Lordship will notice, is a very limited one. No definite provision is made for the extension of the main line beyond Nanaimo (about 00 miles from Esquimalt); nor, indeed, is any definite period fixed for the completion of even this short portion of the railway, which Avould take neither much time or money to construct. The promise to complete it '-in the shortest practicable time," — a promise in efl'ect attached to all the offers in the letter, — is one which, slightly qualified, is implied in tho present and in every other agreement of a similar character, in which no stipulation is inserted for the performance of work within a given time. The phrase is much too elastic in its meaning to admit of any definite interpretation. It may, for the present, therefore, be fairly omitted from special consideration, except as some evidence of a general intention on the part of tlie Dominion Government. I must assume, what the language conveys, that that the words '• that portion of railway," mean the Esquimalt or Nanaimo portion or part of tho main railway', which is the only railway rcterred to in the letter. This would tend to show that the position of the terminus is not questioned. No other allusion to the terminus is made in the letter. No. 2. The Dominion will prosecute and complete the surveys, and then deter- mine "the location of the line upon the mainland." This promise is reasonable on the face of it, but it is very vague. In May last the Government of tiie Dominion informed tho Provincial CJovernment that "there was no reason to believe that it would be possible to complete the surveys before tho close of the year" 1,d^OO required lor its construction would bo money simply thrown awav. I can also unhesitatingly state that the road would, even as a temporary substitute for the railway, be wholly unacceptable to the Province at large, including the farmers and producers of the " interior," in whose interests, and for whoso benefit, it is alleged that the offer is specially made. For the transport of supplies, and to meet eDgineei-ing necessities along the line, as railway works progress, a merely passable road is necessary, and must be constructed; this, in fact, is all that is required. The telegraph line (when^finished) would, doubtless, be useful, but its construction is a question which should be treated independently of the Pailway Agreement. The railway is what is required, and the people of the Province would prefer seeing the time and money, which are proposed to be expended on the above works, appropriated to the larger and infinitely more beneficial enterprise. No. 4. When " the surveys and road on the mainland can be completed, there shall be in each and every year . . . during the construction of the railway, a minimum expenditure upon the works of construction within tho Province of at least l,50Lt,000 dollars," and the Dominion " will proceed from the very first with all the works of construction," on the mainland, '* that their engineers could sanction." The expenditure above proposed may bo considered, first, in relation to its amount; and next, with reference to the date of its commencement. The amount falls tar short of what British Columbia has been led to expect. The cost of the line in British Colum- bia has been roughly estimated at 35,000,000 dollars (£7,000,000). Assuming this estimate to be correct, and that ton years Avould see the completion of the railway, tho Province, in accepting the Terms of Union, had a lair expectation of an average yearly expenditure within her limits of, say, 3,500,000 dollars (£< 00,000). After a delay of over three years with its consequent loss to the Province, it is now proposed by the letter that this amount shall be reduced to the sum of 1,500,000 dollars (£300,000). Again, dividing the whole cost 35,000,000 dollars (£7,000,000) by this sum, a period of twenty- three and a half years would be obtained as tho time required for the completion of the Provincial section of the line alone, and this period would be only cotnputcd from the date when expenditure would be commenced, and not from the date of the letter. It is true that the expenditure proposed is to represent a minimum outlay, which, after several years, might for obvious reasons increase with the progress of the work, but I submit that, in estimating the value of this, or of any similar proposal, the actual figures given — and not contingent amounts which might never be spent — must be the basis of calculation. Moreover, not only is the proposed expenditure inadequate, but the period when it is to be begun is left largely open to doubt. The letter states that the expenditure will follow the completion, '-along the whole length of the railway in the Province," of the waggon road mentioned in offer No. 3. The completion of this road, in turn, has to depend upon the completion of all the surveys, and upon the location of the whole line on the 44 Vic. Railway Papers. 207 mainland (see offer No. 2); and the completion of these surveys and the location of this line are, in point of time, wholly left open to uncertainty. It is stated, that from the "very first" construction work ou the mainland will be done at such places as the sanction of the Engineers will warrant; but this sanction will naturall}* be deferred until the expenditure which has been proposed to cover construction work generally should be commenced. Taken throughout no offer could well be more indefinite than the above. Adding all tiie uncertainties mentioned Lo the fixed period of twenty-three and a- half years (or even to a reduced period), it would appear that the above offer may be described as one for the postponefnent of the completion of the line within the Province for a lengthened period, jDOSsibly until some time in the next century. Your Lordship will observe — what I must consider an important matter — that all the preceding offers refer and arc strictly confined to the British Columbian portion of the railway. The letter is wholly silent as to tiic extension of the line beyond the eastern frontier of the Province. British Columbia is thus by implication virtually requested to surrender one of the elements most important to her in the contract, namely, the right to insist ui)on all rail communication with the Eastern Provinces. I shall now, as proposed, make a lew comments upon certain statements and admissions contained in the letter. Probably the most important of the former is the statement, that the Dominion Government "are advised b}- their engineers that the physical difficulties are so much greater than was expected, that it is animpossibility to construct a railway within the time limited by thi.- Terms of Union, and that any attempt to do so can only result in wasteful expenditure and financial embarrassment." Upon this point the Provincial Government are without an}^ information save what is afforded by the last Peport, as published, of the Chief Engineer of the Dominion Gov- ernment. A reference to this Eeport would lead the reader to a rather contrary- con- clusion to that above expressed. On page 34, section 5, the Chief Engineer makes the following statement: — "It may indeed be now accepted as a certainty that a route has been found generall}' possessing favoui-able engineering features, with the exception of a short section approaching the Pacific Coast; which route, taking its entire length, including the exceptional section alluded to, will on the average show lighter work, and will require less costly structures than have been necessary on man}' of the railways now in operation in the Dominion." It is worthy of notice that this Peport, so favour- able to the enterprise, is dated only some four months ]")riorto the date of the letter now under discussion. During the interval between these dates, all surveys in the Province had been suspended. I may further remind your Lordship that the Charter for the construction and com- pletion ot the railway in ten years frum 1871, according to the Terms of Union, was keenly competed for by two separate combinations, including men of great railway experience, large ca])ital, and high position in the Dominion. These Companies, a])pai"entl3', did not consider the undertaking to make the railway with-in the stipulated time impracticable. On the contraiy, up to February, 187o, so eager was the competition, and so jjowerful were the oi-ganization.s in ])oint of wealth, influence, and ability, that the Dominion Crovernmcnt decided to give the charter to neither; and, ujion the two Com])anies failing to amalgamate, as suggested by the Government, the Government, under certain powers conferred by Parliament, formed a new Compan}', based upon the principle that each Province should be represented in the undertaking. To this new Compan}- a charter was granted on the ijth of February, ls73. With the political or other causes wbich subsequently led to the sui'render of this charter it is not my duty to deal. The strong fact remains that two resjionsible and rival companies were willing, and a third undertook, to construct a througli-line of railway to connect the east and west of the Dominion in eight years from February 1873. lN\'ithcr in the Prospectus of the successfiil Company nor in the voluminous correspondence which took ])lace ]iro- viously between the two unsuccessltil Companies on thosuliject of their resi)ective claims to the chartc)-, and of theii- projxjscd amalgamufion, was any doubt expressed as to the ]»ossil)ility of fulfilling this time ohligiilion. Jlad such a doubt cxislcd, it is fair to infer lliat the JDomiiiioii Government would have i-eqiicsted the assistance of the Province to remove it. No such request was, however, made. With resp(;t to the statement before your Lordshi]) that the chartered Company considered an extension of four years necessary to place the finati'-ial success of the enterprise beyond doubt, the Pj-ovincial Government are without any information save 208 Railavay Papers. 1880 what i-^ contained in, or may bo inferred from, tho last paragraph of section 8 of the Ch-u-tor -M-aiitod to the Comininy, which reads as follows:— The Company " shall com- ple'to tho'^whole railwav within ton years from the said 20lh of July, 1871, unless the last mentioned period shall be enlarged by Act of Parliament, in which case the Com- panv shall comjilete the whole railway within such extended period." Admitting, for the 'sake ot argument, however, that such extension of four years was dccmc(l necessary, the eompletio?> of the line would not have been deferred beyond 1885. The extract already quoted from the Enoineer's lleport, dated, as it is, about twelve months after the date of the Charter, and made alter a turthcr knowletlge of tho country had boon acquired, tends strongly to contirm the views of the respective Companies that tho com- pletion of the railwav was practicable in 18S1, or at tho furthest in 1»85. The value of the above facts and correspondonco is material as showing, in the first place, that it was considered all important that a dotinitc period should bo assigned for the execution of a work upon which Confederation hinges; and in tho next place, that 1881, or at most 1885, was a reasonable definition of that period. The Province, after all her disappointments, above all things desires that tho "prompt commenecinvut, continuous prosecution," and early completion of the railway shall be definitely assured or, in tho language of the letter, be "guaranteed." The Provincial Government, therefore, strongly, but rcspectlully, resist tho contention of the Dominion Government that the commen'ccmont, prosecution, and completion of the line shall be left open to a doubtful and indefinite period. The further opening statement in the letter, that the Dominion Government are willino- "to enter into additional obligations of a definite character for the benefit of the Province " may bo said to have boon disposed of, as tho nature and character of these " obligations " have, in tho analysis made of tho offers, boon already examined. I shall, theret'brc, pass on to what I have termed the admissions in the letter. The most im- portant of those is an admission which may bo inferred from tho ofter made by tho Dominion Government to " commence railway construction immediately from Esquimalt to Xanaimo." Here it is admitted that the Dominion Government wore in a position, at least in May last (the date of the letter), if not before, to have begun the railway in the Province. There is, and has been, therefore, no excuse for delay in pushing forward the Of scarcely less importance is a second admission, which roads as follows: " to a country like British Columbia it is conceded, however, to be an important point that not only the prompt and vigorous commencement, but also the continuous prosecution of the work of construction within the limits of the Province should be guaranteed." To these two admissions may be added a third and last: the Dominion Government, while conceding that railway construction si)Ould be commenced at the seaboard of tho Province, consider it most important that every ett'ort should be made by them to push forward the construction of the railway on tho mainland, in order that the legitimate advantages of expenditure should, as far as possible, full into the hands of the farmers and producers of the interior. This is an object which the Provincial Government have much at heart, and strongly desire to see realized. AVith the clear and just sense wdiich the Dominion Government thus appear to have of what is due to tho Province; with their full appreciation, on the one hand, of the wants of the interior, and, on the other, of the requirements of the Island, it might have been expected that they w^ould, as " a Government responsible for tho progress of both shores of the Continent," at least have given some more definite as well as some practi- cal meaning to their expressions of solicitude for the welfare of the people of the Province. I have thus dwelt upon the letter at considerable length, as your Lordship's atten- tion has been specially directed to it in connection with the present case. I conceive the following to bo a synopsis of its offers and conditions: Canada will commence, on the Island, immediate construction of the railway at Esquimalt, and finish about GO miles of it (time of completion indefinite). On the mainland, she will prosecute the surveys for the remainder of the line, and finish these surveys (time also indefinite). She will thereafter " locate " the line falling within the Province (time also indefinite). When this can be achieved, she will make, along this " located " line, a waggon road 44 Vic. Railway Papers. 209 (which the Province does not want), and a telegraph line (which the Province has not asked for), and will cany the latter across the Continent (time of completion of hoth road and telegrapli line indefinite). Ultimately, after the completion of the surveys and of the road, but not before, Canada will begin, and will continue railway work in the Province, and spend thereon, year by year, not less than £3l'0,000. OVhcther this sum will include the Esquimalt 'line or not is donblful. It is the only expenditure offered. As I have shown your Lordship, Canada thus proposes to ensure lo the Pro- vince the completion of the line witliin her limits in twenty-three and a half years, or less, dating irom the unknown period at which the offered expenditure can be com- menced). "Canada will do all this work "in the shortest time practicable," a phrase a shade stronger than the words '• with due diligence," three words, the construction of which has given rise to much doubt, and to much painful litigation. In consideration of these offers (if accepted), British Columbia shall— 1st, abandon all claim to the com- pletion of the Canadian Pacific Pailway within a definite time; and, 2ndl,y, shall (virtually, though not quite so expressed) surrender her right to, and interest in, the completion of about 2,U00 miles of the line necessary to connect the eastern frontier with eastern Canada. Apart from the very objectionable features of the last tAVO con- ditions, the indefinite character of the above proposals made to the Province is in marked contrast to the statement of the Dominion Government that, " to a country like British Columbia," it is important that the early completion of the railway within her limits should be insured; and, therefore, that a guarantee should be given by the Dominion Government for its "prompt commencement" (which depends on the prompt completion of the surveys), and also for " its continuous construction " (which depends on yearly specific expenditure^ This concludes my remarks upon the letter. I have endeavoured to place before your Lordship a full history of the position of British Columbia with respect to Confederation. A vciy unsatisfactory state of affairs has been disclosed, if the question be regarded simply as a question between the Domin- ion and one of her Provinces. On the "part of the Dominion there have been delays, default, and avowal of default, followed by offers and conditions such as I have described. The peculiar situation of British Columbia— her remoteness— her weak political position— her dependence on the good f\iith of the Dominion— the hopes that have been held out and deferred— the grievous loss that has ensued— the consequent utter pros- tration of her interests, all these give her claims upon Canada, Avhich the present Dominion Government have, as already shown, to a certain extent acknowledged— in words. These claims the Provincial Government hope, will not be overlooked by yoitr Lordship in considering the reasonable measure of justice to which the Province is entitled under the Terms of Union. The Province has not expected anything that is unreasonable, and does not do so now. It is her urgent desire that matters should bo forthwith placed on a fair business-like footing, and aliove all, on a footing of certainty, with proper safeguards to ensure that certainty, so that a good and cordial understanding ma}' be restored and not again be disturbed. I have, &c., (Signed) Geo. A. Walkem, President of the Executive Council of British Columbia. No. IIG. Mr. l/rrhrrt to Mr. \V]H'nded hereto, have heen sent and received u]>on tlic snhject of the non- arrival ot these tlesj>atclies. The telei;i-am from Loi-d Carnarvon is especially valuable as eontaininij the only ofhcial intimation yet received that tiie Dominion Government has consented to adopt and follow the recommendations offered by his Lordship in his despatch of the 27th of last November. Before closinji; this Eeport it will, no doubt, bo as gratifyinp^ to Your Excellency to learn, as it ispleasino- to mo to state, that I received from Lord Carnai'von and from tho Vnder Secretary of State for tho Colonies a full and patient hearing; and every oppor- tunity of placinc: the case of British Columbia in its true light and in all its bearings belore his Lordslii]-) was cordially afforded me. I must also acknowledge, which I do with much pleasure, the able services rendered by Mr. Sproat, the Agent-General of the Province; who upon the railway and all other questions evinced untiring zeal in advancing the interests of British Columbia. It is worthy of record, that apart from the immediate result of the appeal to England, the Province attracted much attention from the prominence given to the object of nn' mission. Applications, greatly outnumbering those of any former year, or even number of years, were made at the office of the Agent-General during my stay in London, lor full information respecting British Columbia, and its suitability as a homo for intending settlers. The interest thus awakened in England has also been extended, in a considerable degree, to the Eastern Provinces; and I can state, from a reference to Mr. Sproat's books, thai a number of immigrants, many of w^hom are in easy circum- stances, will arrive here within the next few months. I may be pardoned for adding that my mission differed but little — if at all — from missions of a similar character. It was not unattended with difficulties, as your Excel- lency can imagine; nor was my position one of freedom from labour and anxiety in the effort to dischaj'ge my dut}'- towards the Province. Questions of a complex and intricate nature were, upon the relerence to England of the issues between the two Governments, directly involved in the appeal itself Further complications on my part would not onl}- have been dangerous but mischievous. I therefore, during ni}' several interviews in England and at Ottawa, not only re- frained from causing irritation between the Dominion and its Province, but endeavore"d on all occasions to nUay it wherever circumstances pointed to its existence. As your Excel- lency will observe from my last letter to Lord Carnarvon, I laboured — I hope not in vain — to convince Eastern Canada that British Columbia, in the advocacy of her rights, only sought to obtain a reasonable measure of justice Avitliout unduly pressing upon the resources of the Dominion, of which she forms a part. Happily, the grave differences Avhich at one time threatened to create a serious breach between the Dominion and her Western Province are now matters of the past. For my own part, I trust that I may hereafter have cause to look back with satis- faction upon the settlement which has just been effected, and to reflect with sincere pleasure that under your Excellency's directions it fell to my lot in 1874 to be instru- mental in promoting the well'are and advancement of the people of British Columbia. I have the honour to be. Your Excellency's most obedient servant. Attorney- General's Office, Geo. A. Walkem. 8th March, 1875, No. 129. T he Under Secretary of State to the Lieutenant-Governor. Ottawa, 25th March, 1875. SiB, — 1 am directed to ti-ansmit to you herewith, for the information of your Gov- ernment, a copy of an Order of His Excellency the Governor-General in Council respecting the conveyance by the Government of British Columbia to the Government of the Dominion of certain land in connection with the construction of the proposed railway from Esquimalt to Xanaimo in that Province. I have, (tc, (Signed; Edouard J. Langevin, Under Secretary of State. 44 Vic. Railway Papers. 517 No. 130. Report of the Privy Council, approved by the Governor-General on the 25th March, 1875. On a memorandum, dated 25th March, 1S75, from the Honourable the Minister of Public "Works, reporting for the consideration of Council, tliat prior to the commence- ment of any works of construction on the proposed Eailway from Esquimalt to Nanaimo, which the Dominion Government have agreed to build under the arrangement made through Lord Carnarvon, at the instance of British Columbia, it is essential that the Province of British Columbia should convey by legislation to the Dominion Government in trust, to be ap])ropriated in such manner as the Dominion Government may deem advisable, a similar extent of public lands along the line of railway before mentioned (not to exceed twenty miles on each side of the said line) as may be appropriated for the same purpose by the Dominion from the public lands of the Northwest Territories and the Province of Manitoba, as provided in the Order in Council, Section 11, admitting the Province of British Columbia into Confederation; and that it is desirable that the British Columbia Government should be at once notified that it will be necessary during the present Session of the Legislature of that Province to pass an Act so to appropriate and set apart lands to this extent and for this purpose, the grant to be subject otherwise to all the conditions contained in the said 11th Section of the Terms of Union. The Committee concur in the above Eeport of the 31inistcr of Public Works, and recommend that the British Columbia Government be notified accordingly. Certified, (Signed) W. A. Himsworth, Clerk Privy Council. A.D. 1875. No. 131. M. 13, Statutes of British Columhia, 1875. An Act to authorize the grant of certain Public Lands to the Government of the Dominion of Canada, for Railway purposes. [Assented to 22nd April, 1875.] WHEEEAS it is expedient to provide for the grant of public lands to Preamble, the Dominion Government, required for a Eailway between the Town of Nanaimo and Esquimalt Harbour: Therefore Her .Majesty, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows: — 1. From and after the passing of this Act there shall be an.l there isCranto, p^^^^^^^ hereby granted to the Dominion Government, for tlie ])Ur])ose oi con- Detwion iCHquimaitand structing, and to aid in the construction of a Pailway between the Town ^''"""■"°- of Nanaimo and Esquimalt Harbour, in trust to be approjjrialed iii such manner as the Dominion Government may deem advisable, a similar extent of puMic lands along the line of Eailway before mentioned (not to exceed 20 miles on each side of the said line) as may be appropriated for the same purpose by the Dominion from the public lands of the Northwest Territories anritish Columbia any Judge of a Superior or County Court shall have all the powers given by the said Act to a County Judge. 7. This Act may bo cited as the Act, 1875." Esquimalt and Nanaimo Eailway 44 Vio. Railway Papers. 219 No. 132. The Under Secretary of State to the Lieutenant-Governor. Ottawa, 10th November, 1875. Sir, — 1 am directed to transmit to you, for the information of your Government, a copy of an Order of His Excellency the Administrator of the Government in Council, on the subject of the difficulties existing between the Government of the Dominion and that of British Columbia, arising out of the agreement, made in 1871, for the construction of the Canadian Pacific Eailway. I beg to express my regret at the delay which has occurred in forwarding this document. It arose from the fact of the officer, whose duty it was to furnish a copy of the Order in Council to this Department, for transmission to your Government, having inadvertently omitted to do so. I have, &C., (Signed) Edguard J. Lanqevin, Under Secretary of State. No. 133. Beport of the Privy Council, aj)proved by the Administrator of the Government, on the 20th September, ]875. The Committee of Council have had under consideration the difficulties arising out of the agreement made in 1871, for the construction of the Canadian Pacific Pailway. Mr. Edgar's mission to British Columbia last year was based upon the view that the conditions of that agreement were quite impracticable of fulfilment. The proposals sub- mitted by him to the British Columbia Government M'ere briefly that, the limitation of time being given up, Canada should undertake that one million and a half of dollars should be expended upon construction within that Province in each year after location, and that the building of a waggon road along the line of the proposed railway construc- tion should precede actual railway construction. It was further proposed to build a Eailway on Vancouver Island, from Esquimalt to Nanaimo. The propositions wore cither not considered by the Government of British Columbia, or, if considered, they were rejected by them, and they subsequently appealed to the Imperial Government, invoking their intervention. The result of this appeal was an oft'er from the Plight Honourable Lord Carnarvon, Secretary of State for the Colonies, of his good offices to promote a settlement. Tiic Privy Council in their Minute of the 28rd July, 1874, advised " that Lord Car- " narvon be informed they would gladly submit the question to him for his decision as "to whether the exertions of the Government, the diligence shown, and the offers made, " have or have not been fair and just, and in accordance with the spirit of the agreo- "ment." Lord Carnarvon in his jA-sj.alcIi of August Kith, acting upon this Minute, and upon agreement on the part of IJritish Columhia to abide by his decision, made certain suggestions, of which the most important were— that the amount ol yearly expenditure within the Province, after location, should be not less than two millions of dollars; that the period of completion should be the year 1890, and that the IJailway from Esquimalt to Nanaimo should bo at once commenced. The Canadian Government in their Minute of Council of September 17th, stated "that while in no case could the Government undertake the completion of the whole " line in the time menlioneil, and extreme unwillingness exists to another limitation of " time, yet, if it be founrajesiy's Principal Secretary of State for the Colonies, forwarding to that Minister a copy of the Minute of my Execu- tive Council, herewith transmitted. I have, iVc, (Signed) .ios'i'.rii W. TiiuTcn. No. 13G. Ilcpoii of the Executive Council, \ approved hy (lie. Lieutenant-Governor on the Cith December, 1875. The Commilteoof Council have carefully considored a Minute of the Honourable the Privy Council of Canada, dated September 2 uh. 187."). proi)0.sing to this Govei-nment, for their assent, certain alterations in the existing Railway Agrocmont belwoou the Dominion and this Province. ^o.'> Railway Papers. 1880 81' The Committoe dissont from many of the views oxprossod in the Jibovo Minute, and c.o no reason for eonsontiuij; to any variation of or departure from tlie Terms of the Jiaiiway Ai,Mvomoiit tliorcin'roterrod to. They tlieretoro advise that the proposals con- tained in tile N[inute be unhositatiiigly but resp^'ctluliy declined by Your Excellency, and that the Dominion Government he so informed; and further, that that Government be 8tron-,'ly impressed with the absolute necessity of the Railway Agreement being carried out, according to the terms tlieroof. The Committee further advise that a co])y of this Minute (if approved) ho trans- mitted to the Eight Honourable the Secretary of State for the Colonies. Certified, (Signed) W. J. Armstiionq. tlerk .Executive Council. No. 137. The Lieutenant-Governor to the Secretary of State for the Colonies. Government House, 6th December, 1875. My Lord, I have the honour to transmit to Your Lordship, in accordance with the advice of my' Ministers, a copy of a Minute of my Executive Council, expressing the views of this Government on the proposals conveyed in the Order of His Excellency the Administrator of the Government of the Dominion in Council, on the subject of the difficulties existing between the Government of the Dominion and that of British Columbia, arising out of the agreement made in 1871 lor the construction of the Canadian Pacific llailway, a copy of which Order in Council has already been trans- mitted to Your Lordship, as this Government understands from the concluding paragraph thereof. I have, &c., (Signed) Joseph W. Trutch. No. 138. The Lieutenant-Governor to the Secretary of State. (•jq-Q 2") Government House, ^ ' "^ 8th January, 1876. Sm,— With reference to my despatch to you, of the 6th ultimo, covering a copy of a Minute of my Executive Council, expressing the views of this Government upon the proposals conveyed in the Order of His Excellency the Administrator of the Government in Council, transmitted in your despatch of the 10th November last, respecting the existing difficulties between the Government of the Dominion and that of this Province, arising out of the agreement for the construction of the Canadian Pacific Eailway specified in the Terms of Union of British Columbia with Canada, I have the honour to enclose, for submission to His Excellency the Governor-General, a Minute of my Executive Council, conveying certain further comments on this subject, which my Ministers consider advisable to be urged in replication to the said Order in Council. 1 have also to state that I have this day, upon the advice of my Ministers, forwarded to Her Majesty's Principal Secretary of State for the Colonies, a copy of the said Minute of Council, herewith transmitted in a covering despatch, of which a copy is appended hereto. I have, &c., (Signed) Joseph W. Trutch. No. 139. Report of the Executive Council, approved by the Lieutenant-Governor on the 4:th January, 1876. The Committee of Council have had before them the Minute of the Honourable the Privy Council of Canada, of the 20th September, 1875, with its covering Despatch of the 10th November last, relative to the construction of the Canadian Pacific Railway. 44 Vic. Railway Papeks. 223 The general features of the above Minute are such, that this Government found no diflSculty in coming to a decision upon it. To avoid possibly prejudicial delays a reply was promptly sent " unhesitatingly but respectfully declining" the proposals, and dis- senting generally from the views contained in the Minute, it being considered preferable, in a matter of such importance, to leave for a further communication such comments as the details ot the Minute might seem to fairly challenge. The Committee have now to remark that the Minute, at the outset, refers to Mr. Edgar's letter, and gives a brief, but inaccurate statement of its proposals. It omits to mention tlie offer of the Dominion Government to immediatel}' construct the Telegraph line in and beyond the Province; and in the next place it incorrectly states that that Government proposed to build "a Railway" from Esquimalt to Nanaimo. Mr. Edgar's letter, it will be found, expresses the inabilitj' of the Dominion to con- struct the Pacific Railway within the period stipulated. It therefore proposes that if this time limit for the completion o/'f/te; ?/,7io/e line be surrendered, the Dominion will, immediately commence '^that portion" which lies between Esquimalt and Nanaimo. The language ot the letter is that "they" (the Dominion Government) "propose to " commence construction from Esquimalt to Nanaimo immediately, and to push that ''portion of Eailway on to eom])lction with the utmost vigour, and in the shortest "practicable time." This extract conveys but one meaning, viz.: — tha': the line between Esquimalt and Nanaimo was regarded b}- the present, as it was by the past, Canadian Ministry, as a ^^ portion of" the main line. It now appears from the published correspondence forwarded by the Dominion Government to England, that in their Minute of the 18th August, 1874, they disavowed Mr. Edgar's offer, inasmuch as they alleged (what is repeated in their present Minute) that the Esquimalt line " docs not form a portion of the " main line; that "it was in- " tended to benefit local interests, and teas proposed as compensation for the disappointment " experienced by the unavoidable dcla}' in constructing the J^ailway across the Continent." Of these changed views, and certainly unexj^ected statements, this Government had no intimation until some time after the publication of the correspondence by the Canadian Parliament. During the negotiations this correspondence was not communicated to this Government, otherwise exception would have been taken at the time to several portions of it, which are very objectionable. The statement that the work in question was proposed as "compensation"' is a manifest error, for no such jn'oposal was ever made or hinted at, as will appear by reference to Mr. Edgar's letter. It is also, to a certain extent, inconsistent Avith the subsequent request made by the Dominion Government to this Province on the 2r)th March, 1815, lor a conveyance (which was granted) of a belt of land along the line between Esquimalt and Nanaimo, similar in extent to that prescribed b}- the Terms of Union for the Pacific Jiailway, " and sul»ject otherwise to all the conditions contained "in the 11th Section of the said Terms." The Dominion Government were not entitled to the land, except under the "Terms of Union." Their agreement with Lord Cai-narvon gave them no new claim to it, if the line was not to form part of the Pacific Pailway. It is further alleged in the Minute under consideration, that "the sanction of Parlia- "ment to the construction of the proposed railwa}' between Esquimalt and Nanaimo "u-as" (that is, when Lord Carnarvon's settlement of 187-i was made,) "necessarily a "condition ]>recedent to its comniencement; " while, on the other hand, the Premier, in his jdace in the Commons, said, on the oth March, 1870, after reading this Settlement to the House : — " "JTie Terms I'ceomnnnfK'd by Loi'd Carnarvon, ((nil vliieli icr hare aceepted, are " simply these : ^J'hat, insteati of one and a half millions, ire propose to expend tiro millions " a year vithin. the Provinee of British Columbia, and we propose to finish the railiray eon- " nection through the. Provinreniu\ downward to the point indicated by the yeai* IMtO, licing "an extension of time of nine 3*('ai'.s. AViih n-spcct to the question raised by my Ilon- " ourabic friend from S(nith Bruce, f may say that f have nothimj to ash from Parliament. " We hare no authority to obtain, but merely to communicate to I'arliamc nt this decision, " and rely upon ilie House suj)porling us in accej^ting the Terms." — (Hansard, p. 511.) The next point in the Minute is that the agreement for an annual railway expen- diture of §2,(IOU,000 in the Proviuce, and tor the completion of the line from the PucifiG 224 Railway Papers. 1880 ... . -.jipoctivoly. _ , , • f 1 II 1 t/ivon to soouro tho ivrfoinplishmoiit of tlio undortuking should consist of such liboi'ul " *r:ints of hind, and sucdi subsitly in money, or oilier aid, not increasing- tho then existing •'rate of tnxHlio'n, as ihe Parliament of Canuda should thereatter determine." It is to bo remarked that the following imporlant part of ihe .Resolution has not been given iu this quotation, viz.: — ^' That t lie. ffdiliniij -sAoi/A/ he ron--s -most embarrassing question.'* They therefore " respecttuUy request that your Excellency will be pleased ***** ^o assure his "Jjordship that every effort will be made to secure the realization of what is expected." Thus apparently ended a most unpleasant as well as unprofitable and irritating dis- pute, which had lasted for about eighteen months, and which resulted in a most carefully considered Settlement — a Settlement that, in the opinion of the Dominion Government, upheld their own railway policy and violated neither the spirit nor the letter of any par- liamentary provision. Notwithstanding these facts, and the strong assurance given that "every etibrt" would be made to redeem their pledges, the Dominion Government only, nine months afterwards, (as appears by their Minute of the 20th September last) virtu- ally decided to ignore these engagements. The construction of the Island section ot the railway is to be abandoned. The agreements to iinmediatel y consivncl the waggon road and telegraph line have already- been violated, and no assurance whatever remains that they will ever be constructed. The stipulations— most important of all — for an annual railway expenditure in the Province, and for completion of the railway within a fixed time, are now held by the Dominion Government to be contingent upon conditions which, though incidentally referred to in their first and last despatches to Lord Carnar- von, were never ottered for his Lordship's consideration; nor was it contended that they should control any settlement that might be made. In justice to all parties, the Domin- ion Government should have placed their whole case before Lord Carnarvon, and not have reserved this point for contention and for sudden announcement nearly twelve months after the date of what was supposed and intended to be a final settlement of all diff'erence.s upon railway matters. It the contention referred to were conceded, the Settlement would virtually be reduced to a nullity, as the Ministry of the da)' would be free to use the bulk, and indeed all,- of their available revenue for general public purposes, and thus leave little or nothing for the railway project. The delay in the transmission of the Minute of Council ?iow under consideration deserves notice. It was passed on the 2Uth September last, and was detained at Ottawa until the 10th of November— some seven weeks— " owing," as alleged by the Under Secretary of State, " to the fact of the officer whose duty it was to furnish a copy of the Order in Council to this Department for transmission ***** having inadvertently omitted to do so." To the iJominion Government this detention proved most opportune. By a singular coincidence they were during this period engaged in negotiating a heavy loan in England, 87,250.000 of which, it is publicly rojtorted, they succeeded last October in borrowing on the Imperial guarantee, in which the Province is specially interested, as it was mainly given to aid in the construction of the Pacific Railway. Owing to the detention alluded to, the Provincial Government were not attbrded an opportunity of protesting in the i)roper quarter, against the guarantee being used under existing circumstances. " With respect to that guarantee, the importance and value of a good understanding with British Columbia upon Railway matters has been and is well understood by the Dominion (government. On the IGth of l<\>bruary, 1875, the Cana- dian Minister of Finance .stated in his speech upon the liudgct: — "I think it would have " placed us at a certain disadvantage with the Imperial Government and British Colum- " bia, if we asked for the Imperial guarantee while their was any dispute between our- " selves and that Province as to the construction of the Pacitic Railway,"— (Hansard, 1875, page 1G:{.) This statement, it will be observed, was made about two months alter the Setlfement of 1874 had been ellucted. iiefore u.sing the guarantee, it might have been expected that the J)ominion Governnie'nt would have taken every precaution to have infoinied this Government of their determination to reopen the Setilemcnt, and not fulfil its terms. , It is also worthy of observation that, diii-ing (he same period and about tlie 20th of September last, the survey parties on the Island were materially strengthened; and the line of i-ailway between Esquimalt and Nanaimo has, since then, been practically locat- ed for its whole length. Steel ruila wcro alao lundod at thcac two places, so that tho 226 Railavay Papeus. 1880 people of the Province had every confidence in the early commencement of the work, and had no reason for suspectini;- that, at this very time, the Dominion Government had resolveil to abandon ami ignore the terms ot tlieir settlement with Lord Carnarvon. The Jjistor}' of the railway a,i>;rcement would be a recital of unnecessary (.lelaya by the Dominion, and ol consequent disappointments to British Columbia of a most dis- courai;inir and ilamaij;ing character. J)irect pecuniary loss to a large proportion of her iieoplo and an utter prostration of most important interests have been the result oi" the nonfultilment ot promises made with every semblance of deliberation and good faith. Distrust has unforiunately been created where trust and contidcnee should have been inspired. It would be mischievous to conceal this state of alfairs. It has fallen to the lot of British Columbia, though politically weak, to defend and preserve the agreement for the construction of the Pacilic Railway upon which Confed- eration depends. The Committee of Council urge that the terms of Lord Carnarvon's Settlement bo strictly carried out, and thcj^ strongly protest against their violation by the Dominion CJovernment. The Committee respectfully request that Your Excellency will be pleased, if this >Iinute be approved, to cause copies thereof to be severally forwarded to the Dominion Government and to the Eight Honourable the Secretary of State for the Colonics. Certified, (Signed) W. J. Armstrong, Clerk, Executive Council. No. 140. The Lieutenant-Governor to the Secretary of State for the Colonies. Government House, 8th January, 1876. My Lord,— ^yith reference to my despatch to your Lordship, dated the 6th ultimo, transmitting a copy of a Minute of my Executive Council, expressing the view's of this Government on certain proposals conveyed in the Order of His Excellency the Admin- istrator of the Government of the Dominion in Council, in relation to the existing diffi- culties between the Government of the Dominion and that of this Province, arising out of the agreement lor the construction of the Canadian Pacific Eailwaj', 1 have the honour to enclose for Your Lordship's consideration, at the request of my Ministers, a Minute of my Executive Council, conveying certain further comments on this subject, which my Ministers consider advisable to be urged in replication to the said Order in Council. I have, c\:c., (Signed) JosErii W. Trutch. No. 141. Extract from Journals, Legislative Assemhhj, British Columbia. Report of the Commiitee of the Whole, tcith respect to the Canadian Pacific Raihcay. 21st January, 1876. Your Committee appointed by this Honourable House to consider and report upon the correspondence betwetiu the Governments of the Dominion and of the Province with regard to the Canadian Pacific Railway, respectfully report as follows: — 1. That it appears that the Dominion Government have almost wholly disregarded the terms of the Settlement ertccted tlri'ough the mediation of the Eight Honourable the Secretary of State for the Colonics, for the purpose of carrying out the JJailway Agree- ment in our Terms of Union. 2. The Dominion Government have not commenced Eailway construction, cither on the Island or on the Mainland, or the waggon road or engineering trail intended to 44 Vic. Railway Papers. 227 facilitate railway work on the Mainland; though as part of the Settlement the " immedi- ate construction"" of a portion of these works was promised b}' the Dominion Govern- ment in Ueccmber, 1874. The agreement, in the Settlement, for the _ immediate construction of the Provincial section of the Trans-Continental 'J'elegraph Line has also been violated. 3. That with respect to the promised active prosecution of the surveys, 3'our Committee have no authoritative information upon which a correct opinion can be based. 4. That the I'ominion Government have, by Minute of tlie Privy Council of the 20th of September, 1875, intimated their intention to virtually ignore the Settlement effected by them with Lord Carnarvon, and have stated that they will submit their views, as expressed in the Minute, to Parliament at its ensuing Session, as the policy which should be adopted with respect to their railway engagements with the Province. 5. That the Dominion Government have affirmed, in their Minute of September, that the section of Pailway on Vancouver hkuid is not part of the Pacific Railway, but that it was offered to this Province as compensation for local losses caused by delays in the construction of the Pacific Eailway; but your Committee do not find that such an offer of compensation was ever made or even suggested to the Province. 6. That the Dominion Government state in their Minute of the 20th of September last, that '• it cannot bo too clearly understood " that they will not abide by, or observe the agreements in the Settlement for an annual railway expenditure of §2,000,000 in the Province, and for the completion of the railway from the Pacific to Lake Superior, by the year 1890, if the performance of such agreements should interfere with the conditions of a Eesolution passed by the House of Commons in 1871, after our Terms of Union had been assented to by that body. The terms of this Resolution were, in effect, that the Eailway should be constructed and Avorkcd by private enterprise, and not by the Dominion Government; and that subsidies in land and nione.y, to an extent that would not increase the then rate of taxation, should be given in aid of the work by the Gov- ernment. 7. Your Committee find that the terms of the Eesolution were abandoned in 1874, the rate of taxation having been increased, and the construction of the Railway having been undertaken by the Government, instead of being confided to private enterprise. 8. Your Committee would observe that the Resolution was at best merelj' an indi- cation of the scheme matured by the Government to provide means to fulfil their Eailway engagements with the Province; that it never was submitted to the people or Government of British Columbia; nor was it, so far as known, submitted in 1871 to the Imperial Government for consideration, when the Terms of Union were passed; or in 1874, to Lord Carnarvon, during the negotiations which preceded the Settlement. The Resolution therefore cannot, for phiin constitutional, as well as legal reasons, control either the Terms of Union, or the Settlement made to carry them out. 9. That no compinsation has been ottered by the Dominion Government for the proposed abandonment of the section of railway on Vancouver Island, or for the broken engagemenls to build the waggon road and telegraph hne, or for any of tiie past disastrous and ruinous delays in the construction of the Pacific J^ailway on the .Mainland or Island. 10. That an indemnity, however, to the amount of S7.jO,(IOO— the cost of about twenty miles of railway— has been ofiercd toEritish Columbia, for any /(//)//•(• dehiys which may occur in the construction of the Railway, and that this sum will, subject to the assent of Parliament, be paid as a cash bonus to the Province, ii" the agreements for yearly Eailway expenditure, and for completion of the Eailway to La/;c Superior bj li<"J(), bo surrendered by the Province. 11. That the Provincial Government have declined to accept the offer of 8750,000, and have recorded their dissent from the views exjjresscd by the Dominion Government in their Minute in Council of September last. 12. That your Committee arc of ojiinion that the Provincial (Jovcmment havi, by declining such offer, acted in the interests of this Province. i:i. That the Province entered Confederation ujjon a distinct and specific agreement tliat, as " no real union could exist" without "spccily communication " between /)V///.s7i Colnmhio and EaHtern Canada through British territory, the Canadian J'acilic Eailway should bo constructed by the Dominion as a Federal work ol political and commercial uecesttity, 228 Railway Tapers. 1880 14. Thftt the aim of the Provineo is to socuro praelicnl Confederation and its anticipated advantages, in lieu of theoretical union with its losses and many disappoint- ments. 15. That as the Dominion Govcnimcnt have failed to ohscrve their Kailway on^'ajic- nients with the Province, and have intimated, as statcil, their intention not to carry them out, vour Committee advise that your Honourable House do appoint a Committee to dra'tt and submit to tha House an humble Address to Her Majesty, settin571, was the Agreement by the latter to commence in two and complete in ten years from that date the construction of the Canadian Pacific Eailway; and that this Agreement had been violated by Canada. The Petitioners, therefore, prayed that Your Majesty Avould, under the circumstances set forth in the Petition, be graciously pleased to cause justice to be done to British Columbia. To this Petition your present Petitioners (the Legislative Assembly) beg leave to refer Your Majesty. 2. That after protracted negotiations on the subject between Your Majesty's Pight Honourable Secretary of State for the Colonics (the Earl of Carnarvon) and the Dominion Government, His Lordship was pleased to signify his conclusions upon the question in dispute, in the following language: — 44 Vic. Railway Papers. 229 " (1.) That the railway from Esquimalt to Xanaimo shall be commenced as soon as •'* possible, and completed with all practicable dispatch. " (2.) That the surveys on the mainland shall be pushed on with the utmost vigour, '< It would be distasteful to me, if, indeed, it were not impossible, to prescribe strictly " anj'' minimum of time or expenditure with regard to work of so uncertain a nature; " but, happily, it is equally imjjossiblc for me to doubt that j'our Government will loy- " ally do its best in every way to accelerate the completion of a duty left freely to its " sense of honour and justice. •' ^3. ) That the waggon road and telegraph line shall be immediately constructed. " There seems here to be some diflFerence of opinion as to the special value to the " Province of the undertaking to complete these two works; but after considering what " has been said, I am of opinion that they should both be proceeded with at once, as, " indeed, is suggested by your Ministers. " (4.) That 2,000.000 dollars a year, and not 1,500,000 dollars shall be the minimum •^ expenditure on railway M'orks within the Province from the date at which the surveys " are sufficiently completed to enable that amount to be expended on construction. In " naming this amount, I understand that, it being alike the interest and the wish of the " Dominion Government to urge on with all speed the completion of the works now to " be undertaken, the annual expenditure will be as much in excess of the minimum of " 2,000,000 dollars as in any year may be found practicable. " (5.) Lastly, that on or before the 31st December, 1890, the railway J^hall be com^ " pleted and ope'n for traffic from the Pacific seaboard to a point at the western end of " Lake Superior, at which it will fall into connection with the existing lines of railway " through a portion of the United States, and also with the navigation on Canadian " waters. To proceed, at present, with the remainder of the railway extending, by the " country northward of Lake Superior, to the existing Canadian lines, ought not, in my " opinion, to be required, and the time for undertaking that work must be determined " by the development of settlement and the changing circumstances of the country. " The day is, however, I hope not very distant w^hen a continuous line of railway " through Canadian territory will be practicable, and I therefore look upon this portion " of thescheme as postponed rather than abandoned." [ Vide despatch. Lord Carnarvon to Lord Dufferin, 17th November, 1874, No. 117, p. 210.] 3. That the iJominion Government, one month later, assented to these conclusions or proposals, and stated, in effect, that the proposals would be carried out as they u])held in the main their own policy on the question and violated neither the letter nor the spirit of any parliamentary provision. The Settlement thus effected was intended and supposed to be final and conclusive. \^Vide despatch, Lord Dufferin to Lord Carnarvon, Ibth December, 1874, No. 118, p. 211.] 4. Your Petitioners, the Legislative Assembly, with great regret, feel compelled to state that the Dominion Government have almost wholly disrcgardetl the terms of the above Settlement, as tlu-y have not commenced the promised railway construction, either on the Island or on ihe Slainlaii'l, or the waggon road or engineering trail intended to facilitate railway work on tlie Mainland; nor lias the agreement, in the .Settlement, for the immediate construction of tiie Provincial section of the Trar.s-Continrjital Tulegrap!) Lino been carried out. 5. That with respect to the promised active prosecution of the surveys, your Petitioners have no authoritative iniormution upon which a correct opinion can bo based. r^; » MO C VS !M I O i-H rHt (N l2 (M I CO O "T ( ■ (M 00 INrJM^OOOOO >-_ 0_ ■«■_ O l~-^ I0_ fN_ o p-T ^" ic* -^ o' f-T o" CO* XJOr-l-lr-l (N : ! O O 1-1 IJ c t t^ c: o ■.CS-g «2 ot^-^'Mc;vr;ot-ot^ — 1 ;(MOi^ot-oc-ioi^csi 'C:'3't^c;oc5t'ir;oo ■ CO » o X o c-i I- oc i~ o ' '^C^^^i.^CO -^0.50.05 IN O r-1 rH .fcj ■a "-o S « § 0-5 = =: 5 O 3J: iD$i O S o ^ .:2 •= .= » S = 5 2 '^ .S 00 I- c c S ■O 3 B-g< X o.> ». . O go o g> „ r-_ S ? P O CO O) uO 1~ •^ O O iC O C Oir. ^ C-. CO o o; X -M o CO -T o tn UO rH r-l O) aj X O rH — rH r^ rH •«■ 1.0 C5 CO X CO i^ CZ) CO r-«.C^J.Ci T r^ iH iTi c: -» CM r^ S u- u. t"t ^ t- -»■ I- C! irt ..0 CO IN CO i~. CO tn It — CM cs r "^ «» g,- -r. S CS M Q -M 00 01 C-l ? S J5 ?? ^ 2.' 2 ^ 2 cii ^J it fl r: IH n •M C CO X « in x- -»« ■^ -M p^ CE Ift «f -».rH- s §3?5 i s g 'r i'^i^ : g 1 l- Vt ^ : s • c : 1 •0 c 1 '. •3 : ■ s ■ y inc on the I7th A])ril, transmitting!; six copies of an Orclor of His Excellency the (iovernor-Cieneral in Council on the Address to Her ilajesty the Queen from the Legislative Assembly of this Province, in relation to the questions at issue between the Government of the Dominion and that of this Province resi)ccting the agreement in the Terms of Union for the construction of the Canadian l^icific llailway, I have the honour to enclose, herewith, for the information of His Excellency the Governor-General, in accordance with the advice ot my Ministers, a copy of a Minute of my Executive Council submitting certain remarks upon that Order in Council. I also enclose tor His Excellency's inlormation a copy of a Despatch Avhich, in further accord- ance with the advice of my Ministers expressed in this Minute, I have this day address- ed to the Right Honourable Her Majesty's Principal Secretary of State for the Colonies, coveriug a copy of the said Minute of my Council. I have, &c., (Signed) Joseph W. Trutch. No. 159. Report of the Executive Covjicil, approved by the Lieutenant- G over nor on the Srd day of June, 1876. The Committee of Council having had before them the Minute of the Privy Council of Canada, of March 13th last, commenting upon the Address and Petition to Her Majesty by the Legislative Assembly of British Columbia, desire to submit the follow- remarks in relation thereto: — That that Minute in no way disproves or even disputes the material facts stated in the said Address, but rather seeks to account for them; nor does it in their opinion weaken the force of the representations based on those facts; and that they would be well satisfied that the argument in this case should be submitted to any impartial tribunal, just as it is left by the reply in the Minute ot the Government of Canada upon that Address. That they desire, however, to deny distinctly that British Columbia has at any time, through any delegate or agent, either directly or indirectly, consented or agreed that the Eailway obligations of Canada towards British Columbia, under the Terms of Union, should be subject to the limitation specified in the Pcsolution adopted by the House of Commons of Canada on the J 1th day ot April, 1871. That such a limitation virtually nullifies those obligations altogether, as, indeed, is now in fact claimed by the Government of the Dominicn. That they protest against the unwarranted assum]ition in that Minute that British Columbia has in any way assented or become bound, either legally or in honour, to such an abrogation of the Eailway Article of the Terms of Union. That they equally repel the charge that this Province, from sordid and selfish crav- ing " for the gains and profits to be expected from the expenditure of millions in their " midst, on the construction of the l^acific Eailway," has ever sought to exact the literal fulfilment of the Eailway Agreement, regardless of the general welfare of Canada, even to the involvment of the Dominion, of which she is a Province in financial ruin, as is asserted in that Minute. That, on the contrary, British Columbia has always been ready to adopt a reasonable view of that agreement, as is fully shown by the cordial concur- rence of her Government and people in the modification of that agreement effected in 1874, through the Eight Honourable the Secrctar}- of State for the Colonies. That the Government of T'anada, however, now evade compliance with the require-" ments of that modified agreement, or seek to qualify or virtually nullify it by a condition certainly not clcarl}- oi" openlj' stated (if stated at all) when t'jat modification was decided upon b}' the Secretary of State for the Colonics and accepted unreservedly by that Government. 44 Vic. Railway Papers. 243 That British Columhia nevei- urged, nor desired, nor -would she have concurred in any such expenditure of the public funds of Canada, in the construction of the Pacific Eailway, as could be shown to be beyond the financial ability of the Dominion, but that she has claimed and does claim a right to form and express an independent opinion as to the extent to which that financial abiiit}' should be exerted on this great national enterprise; and she holds that, though iu other respects an integral part of Canada as a Province of the Dominion, she is entitled, in respect of this question of the non-fulfilment of the Terms upon which she entered the Dominion, to a position as independent as she occupied in negotiating those Terms, a position of entire equality with that which attached to the Dominion itself, the other party to those negotiations. That as regards the suggestion by the Government of Canada in the Minute of Privy Council of 20th September last, that British Columbia should receive a bonus of 8750^000 " as compensation lor any delays which may take place in the construction of '^ the Pacific Eailway," it seems to be intimated in the subsequent Minute of March 13th, although it is yet far from being distinctly stated, that such bonus was oftercd in lieu of the proposed section of railroad between Esquimalt and Nanaimo only, and that it was never intended that the acceptance of that bonus by British Columbia should relieve Canada from any of the conditions of the settlement of the Eailway agreement eftectcd in 1874, other than that providing for the construction of that particular section of rail- road. If such was the intention of that ofter, it is much to be regretted that it was expressed in the Minute of 20th of September in language which certainly conveys a very different meaning, and fully warrants the conclusion, and none other, Avhich the Government and people of British Columbia derived from it, viz: that the acceptance of the proffered bonus would be held to preclude British Columbia from any lurther asser- tion of her rights under the Eailway Article of the Terms of Union. It is yet more to be regretted that the Government of Canada, on learning that the true intent of their suggestion had been, as they allege, misapprehended, have not, in plain language, renewed that suggestion in the spirit of the desire expressed in their last Minute, to propose " a liberal compensation for delays, iu substitution of that provided by the " arrangement recently entered into in 1874, but to which Parliament declined to " assent." That as to thp, contention in the Minute of the Privy Council of Canada of 20th of September last, that the "proposed railway from Esquimalt to Nanaimo does not form a portion of the Canadian Pacific Eailway, as defined by tiic Act; it was proposed as compensation for the disappointnu'nt experienced by the unavoidable delay in construct- ing the Eailwaj' across the contincmt," which contention is renewed in their subsequouL Minute, the Committee observe that the Order in Council ot 7th June, 1JS73, by Avhieh it is decided that "Esquimalt be fixed as the terminus of the Canadian Pacific Jxailroad," has never been repealed or reversed, as far as the Committee are aware, by any subse- quent Order of Council or other instrument of equal validity. Certainly no such subse- quent Order of Council has been communicated to the Government of British Columbia. That, whatever may have been the intention ot the Government of Canada in oficr- ing to coiistruct immediately the portion of road between Esquimalt and Nanaimo, that offer was never accepted by the Government of British Columbia. That the Government of British Columbia, did, however, accept t4io settlement effected in 1874 through the Secretary of Slate lor the Colonies, and that the Govern- ment and people ol British Columbia arc loyally ready to abide in all respects by tiiat Hctllcmcnt, and to be bound by all its conditions a.-i they may be defined by the Secre- tary of State for the Colonics. That the Government and Legislature ol liritish Columl)ia, desirous then, as they still are to do all in their power to give cflect to that settlement, without hesitation complied last year with the request of the (Government of Canada for the conveyance to that Government, by Act of this Legislature, of certain lands along the lino of the pro- posed Kailroad betwrcn Esquimalt and Nunaimo, in aid of the construction of that ]joriion of road, of the extent and on the ccidilions stipulated in the 11th ArLiclo of tho Terms of Union. That the Government of Cana'la, in their application for the conveyance of thoso lands by Actol thi.. Lcgitl.iture, ga\c no intimation that such conveyaiiec by legislation was specially roquipitr '.n account of the proposed road from Esc^uimalt to Nanaimo 344 Railway Papers. 1880 not boini; part of the Catrndinn Pacific Railroad; nor was such a consideration presented in any way to the Govornmont or Logislaturo of British Columbia. That "the Comniittoe hold, on the contrary, th;\t such legislation would have boon equally required tor the full k\i:;al conyoyance of the lands n]i])lietl ibr, whether the portion of road towards the construction ot which they were a])propriatcd were part of the Canadian Pacific Jvailroad or not, and that similar lei^islatioii would be requisite for the conyeyanco to the Dominion of any lamls in respect of the construction of any portion of the Canailian Pacific Railroad, under the 11th Article of the Terms of Union, by which the Goyernment of British Columbia "agree to conycy " certains lands on the coiuiitions therein stated, this Goyernmcnt being incompetent to duly carry that agree- ment into effect without being further specially empowered so to do by the Legislature ol the Proyince. That the contention that the portion of road between Esquiraalt and Nanaimo is not part of the Pacific Uailway is wholly immaterial if — as seems to be indicated in the last Minute of Priyy Council — that i)ortion of road was untlertaken in 1874 as compensation for delay which had then already occurred in the commencement of the Pacific Eailroad, and for such further delay only in its construction and completion as is stipulated in the settlement effected b}' the Secretary of State for the Colonies. That, with regard to the comparative statement of the Revenue and Expenditure of the Dominion in British Columbia since union, which is a])pen(led to and commented upon in the Minute ot Privy Council of 13th March, it would not bo difficult to show that that statenientis not altogether a fair exhibit of the account. That a large part of the expenditure charged against British Columbia is incidental to the extension of the system of Confederation over a now Province. That the revenue derived by the Dominion from British Columbia is shown by that statement to have steadily and largely increased, viz.: as S363,2D8 08 for the year 1S71-2 is to 8275,333 01 for the first half of the year 187o-(), the expenditure increasing also in about the same proportion; that whilst it may confidently be anticipated that at least that ratio of increase of revenue will be maintained, the increase of expenditures, on the other hand, may be expected to be proportionately reduced after the completion of those public buildings and other public works, the construction of which was provided for in the Terms of Union, and to which a considerable part of the expenditure of the past three years is chargeable. That even if it could be shown from a comparison of the expenditure and receipts of the Dominion in British Columbia since Union, that enormous pecuniary advantages have, as is asserted in that Minute, resulted to this Province, such a financial balance against British Columbia would be but insignificant in comparison with the infinitely more important and lasting benefits which she justly anticipates from the construction of the Pacific Railroad in accordance with the Terms of Union, not indeed so much from the expenditure of money in its construction as from the results to the Province and to the Dominion of its com])letion and the establishment thereby of a great highway for trade and travel within British territory from the Atlantic to the Pacific, and the immi- gration consequent therefrom into this Province. That the introduction, by the Government of the Doiiiinion of such a discussion as to the financial results to Canada and British Columbia respectively, from the introduc- tion ot that Province into the Dominon, appears to the Committee most unfortunate, and is certainly not pertinent to the question at issue. British Columbia has never complained of having been unfairly dealt with in the apportionment of General Expenditure by the Dominion, nor would the Committee desire to assume that such expenditure, either in British Columbia or elsewhere, has been directed by any other motive than that of promoting the general welfare of the Dominion as a whole, without seeking to purchase, by undue apportionment of the public funds, the consent of this or any other Province to an abandonment ot just claims under the Terms of Union. That the manifestation by the Government of Canada of their sentiments towards British Columbia, expressed in the concluding paragraphs of their last Minute, followed as it has been by the adoption by a large majority of the House of Commons in the recent Session — all the members of the Goverimient in that House being of that majority — of u Resolution to the elTect that thy Pacific Railroad shall not be built if its construction entail on Canada any increase of taxation, has painfully impressed us, and the community we represent, withthe conviction that the Government of Canada do not intend to press 44 Vio. Railway Papers. 245 the construction of that railroad beyond the convenience of that Government after pro- viding- for all other public works oi apparently more direct and local interest to the majority in Eastern Canada, nor to have any regard to the contract for its completion entered into bv Canada in the Terms of Union, and renewed in modified terms in the Settlement eftected in 1874, by the Kight Honourable the Secretary of State for the Colonies, except subject to that convenience. That the Committee, again, humbly submit that British Columbia is, at least, entitled to have the conditions of that settlement carried out in letter and in spirit; and they humbly and earnestly renew the prayer of the Petition to Her Majesty trom the Legis- lative Assembly of the Province; that the Dominion Government be immediately moved to cariy out the terms of that settlement. That they have the fullest confidence that Her Majesty will not require Her loyal subjects in this Province, however numerically weak, to submit to injustice and injury from the majorit}', however great, to whom they united themselves at Her Majesty's instance, on distinct and carefully considered terms, in claiming the performance of which, even in a modified form, they are met with reproaches and charged with igno- minious motives. That, unless means be speedily taken to remove this sense of slight and injustice, now felt by the people of British Columbia, and lo satisfy them that the substantial rights of the Province will be maintained, this growing alienation of sentiment must result prejudicially to the interests of the Empire. The Committee respectfully request that your Excellency Avill be pleased, if this Pepoit be approved, to cause copies thereof to be severally forwarded to the Right Honourable the Secretary of State for the Colonies and to the Honourable the Secretary of State for Canada. Certified, (Signed) T. Basil Humphreys, Clerk of the Executive Council. No. 160. The Govemor'Generars Secretary to Lieutenant-Governor Trutch. Governor- General's Office, Ottawa, 12th June, 1876. Sir, I am directed by the Govcrnor-Cencral to transmit to you, for the information of yourVjovernment, a copy of a despatch which His Excellency has received Irom the Pight Honourable the Secretary of Slate for the Colonies, having reference to al^lemorial addressed to the Queen from the Legislative Assembly of British Columbia, and to a Report of a Committee of the Privy Council of the Dominion, in regard to the con- struction of the Canadian Pacific Railway. I have, &c., (Signed) E. G. P. Littleton. No. Ibl. The Earl of Carnarvon to the Earl of Dufferin. Downing Street, .Alay 23rd, 1876. My Lord,— I have received j'our Despatch No. 75, of the 17th March, in which you enclose a Rejiort of u Committee of your Privy Council, drawn up in reference to a Petition to the Queen from the Legislative Assemlly of British Columbia, having reference to the cour.'-e jjroposcd to he tnken ly the Canadian (Jovernnicnt with regard to the constiU( tion of the Pacific Jiai'wiiy. 2. The ]^•tition of the Legislative Council of British Columbia was forwarded, as you are uwure, by the Lieuteuant-Govoruor of tho Province, who had also previously ^Q Railway Papers. 1880 conmuinioaiod to me the Mimitos of his Executive Couiieil, dated the 6th of December, 1875. and lili Jamiarv. ISTli, roh.tiiii,' to the sanio subject. $. I havo loarnt with siiu'oro i)lo!isnre that, with the coneiirronce of your lAlinistors, 3'ou contomplato a progress through tiie "Western portion of the J")oininion, as apart from the advantages likely to arise from your becoming personally acquainted Avith British Columbia and its inhabitants, your intercourse Avith the principal persons of the Province, and the information you \vill be able to gather, will bo very valuable in enabling me to appreciate tlie situation. 4. i shouhl have been anxious to take the papers, to which I have referred, at once into consideration, and to oti'er my assistance, so tar as it might have been effective, iu the settlement of the question which has unfortunately been at issue between the two (.lovernments; but it appears to me that the benefits likely to be derived from your visit will be so "-reat, that I jn-efer to postpone my consideration of the papers till after that event. 5. It seems to me quite unnecessary for Her Majesty's Government to review the arguments advanced by the British Columbian Government in their Minute of Council of "the 4lh January, as to whether or no the ISIanaimo I?ailway had ever been spoken of, or regarded, as an integral portion of the main line, or the results suggested as flowing from this proposition, inasmuch as the Dominion Government during the course of their recent negotiations volunteered to build it, as an independent undertaking, and on cir- cumstances rendering the execution of the project impossible, proposed, as I understand, to ask Parliament tovote in substitution a money payment, a modification, the principle of which I think reasonable. G. I am glad to perceive that your Ministers recognise the fact that the resolution of the House of Commons passed a few days after the Terms of Union had been ratified bv the Dominion Legislature, could not be regarded as having the same force or signifi- cance, as if it had formed an integral part of the treaty agreed to by both parties, though even apart from the weight claimed for the resolution itself, the condition asserted in it, namely that the aid to be granted to the construction of the Pacific Railway should not be such as to increase the existing rate of taxation, involves of couise a principle, of which neither British Columbia nor any other part of the Dominion should lose sight. 7. I cannot but suppose that the complaints which have reached me from the Gov- ernment of Britisli Columbia have been founded upon a misapprehension, both with reference to the expression used in the Canadian Minute in Council of the 20th of Sep. tember, in regard to the cash bonus of §750,000, which it was proposed to award to the Province, as well as to the intentions of the Dominion Ministers. From the reports of the engineers Avhich 3'Ou have forwarded to me, I am led to believe that no exertions have been spared in the prosecution of the extremely difficult surveys which must necessarily precede the location of the line, and I cannot help entertaining every confi- dence that the Dominion authorities will continue to exercise effectual diligence in the prosecution of the work. 8. "Whilst I fully sympathize with the anxieties which must be felt by those charged ■with the responsibility'of bringing this very great enterprise to a successful termina- tion, and readily acknowledge the difficulties which attend it, I confidently trust that the inhabitants of British Columbia will not fail to remember that they are not merely inhabitants of a Province, but of a great Dominion, and that they will not be less anxious than any of their fellow subjects in any other part of the country to see the work conducted under such circumstances as will be most conducive to the welfare of the community at large. 9. 1 heartily approve of your journey to British Columbia, and doubt not that the fact of your Ministei'S concurring so cntirel}' in the visit will be recognized by the in- habitants of the Province as a proof of their good will and solicitude, and I wish it to be understood that no course could have been suggested which would have been more in accordance with my own views. It is indeed because I attach so much importance to the project and entertain so confident a hope of the results likely to arise from it, that I propose to postpone my reply to the Minutes in Council which have been communicated to me from British Columbia and from Canada respectively, and to defer laying before Uer Majesty the Petition from the Provincial Assembly, until after I shall have heard from you from Victoria. 10. It only remains for me to notice the complaint of the British Columbian Gov- 44 Vio. Railway Papers. 247 was ernment that the Minute of Council of September 20th, 1875. of your Government, not forwarded to them until after a long delay. After the exphinations which have been given of this occurrence I am certain that the Government of British Columbia -will feel as convinced as I mj-seif am, that it was merelj^ owing to an unfortunate oversight, and I regret that it should have been thought to warrant an imputation which ought never to have been made. You will be so good as to communicate this Despatch to the Lieutenant-Governor of British Columbia. I have, &.C., (Signed) Carnarvon. No. 162. The Jifissing Despatch from the Dominion Government relating to the Reservation of Eailicay Lands, received in July, 1876, not published until 4th February, 1879 No. 47. (Copy.) W. S. Boyle, P. S. The Lieutenant-Governor to the Secretary of State for Canada. Government House, Victoria, B. C, 4th July, 1876. Sir,— I have the honour to state that 1 have this day received and laid before my Executive Council your Despatch of the 13th ultimo, and the copy therewith transmitted, of an Order of llis Excellency the Governor-General in Council, and of the Memorandum of the Honourable the Minister of Public Works therein referred to, in relation to a con- vej-ance from this Govcrnmetit to that of the Dominion of a tract of land twenty miles in width on each side of the portion of the Canadian Pacific Eailway Line surveyed and located in this Province. I have, &c., (Signed) Joseph W. Trutcu. No. 163. The Secretary of State to the Lieutenant-Governor. [Copy sent to Executive Council, 4ih July.— (Signed) J. W. T.] No. 44. (Copy.) W. S. BOVLE, P. S. ,., , T lorrr' Ottawa, IJth June, lh76. [Reccivod Ith July, 1870.1 Sir —I have the honour to transmit to you herewith, for the consideration of your Government a copy of an Order of His Excellency the (Jovernor-(Jeneral in Council, and of the Memorandum of the Honourable the Minister of I'uldie Work.s. therein referred to, representing the exijcdiency of obtainit g from ll>e (lovernment of Hrilish Columbia a convevancc of bind twenty miles in widlli on each si-le of the jjortion of tho Cunadiau Pacific Railway Line surveyed and located in that Province. I am, \c., (Signed) R. W. Scott, Secretary of State. 918 Railway Papbks. 1880 No. 1G4. Report ofthe Privy Council, ,ij>prorcd by the Governor-General on the dth June, 187(j. The Committee ol Couiuil havo had iiiuior eonsidoration the Memorandum from tho Honourable Mr. ^faekenzie, submiltini;- the expediency of obtuininji; from the Ciovcrnment of British Columbia ii conveyance of land twenty (20) miles in width on each side of tho portion of the Canadian Tacitie Jxailway Line surveyed and located in that Province, and they respectfully submit their concurrence therein, and advise that a copy thereof, and of this Mmute, bo irausniitted to tho Government of British Columbia. Certified. (Signed) W. A. Himsworth, Clerk, Privy Council. Ottawa, 7th June, 1876. The undersigned has the honour to report : — That. uuder\he terms by which British Columbia entered the Dominion of Canada, the Government ot that Province agreed to convey to the Dominion Government, in trust, to be appropriated in such manner as the Dominion Government may deem advisable, in furtherance of the construction of what is known as the Canadian Pacific Railway, a similar extent of public lands along the line of Eailway throughout its entire length in British Columbia, (not to exceed, however, twenty miles on each side of said line,, as may be appropriated for the same purpose by the Dominion Government from the public lands ot the North-West Territories and the Province of Manitoba. That the Government of Canada have, already, by Orders in Council, withdrawn from sale or settlement all lands in the Province of Manitoba within twenty miles on each side of the Eailway line surveyed, and also for a district twenty miles to tho westward of Fort Pelly, in the North-West Territories, and further extending from a point twenty miles westerly of Fort Pelly to a point twenty miles westerly ofthe mouth of Battle Kiver, and further lor twenty miles on each side ofthe Railway from a point twenty miles M-esterly of the Battle Kiver to Jasper House, in the Yellow Head Pass, through the Eocky Mountains. That the line of Railway has been defined and located through part of the Province ot British Columbia, and that it is desirable, with a view of enabling the Government of Canada to proceed with the construction ofthe Eailway, that the lands along such line of Eailway, and for twenty miles on euch side of the line, may be conveyed tp the Dominion Government in accordance with the 11th paragraph of the Terms of Union. The description of the line so located, to Avhich reference is above made,_is as follows :— Commencing at a point on the eastern boundary of British Columbia, in the Yellow Head Pass, through the Eocky Mountains, the line follows down the Valley of the Eiver Frascr to Grand Eapids, a distance of about 185 miles; thence westerly, turning the north end of the Cariboo Eange and cutting off the great bend of the Fraser, it crosses the latter near the mouth of Willow Eiver ; thence south-westerly to a point near the confluence of the Eivers Stewart and Chilacoh. The undersigned further recommends that communication be had to this effect with the Lieutenant-Governor of British Columbia, requesting that the lands along the line of Eailway, as herein described, and for twenty miles on each side of the said line, be forthwith conveyed to the Dominion Government, and that it be represented that an Order of the Lieutenant-Governor in Council, appropriating this tract of land, will at present suffice as a sufficient conveyance of the' same, but that it is further suggested that an Act be passed by the Legislature of British Columbia conveying and vesting such appropriation in ller Miijesty, for the purposes of the Government of Canada, and to bo appropriated in such manner as the said J^ominion Government may deem advisable in furtherance of the construction of the said Eailway. He further recommends that in order to give due information to the public, and to prevent squatters or the pre-emption of any portion of the land so conveyed, the Lieutenant-Governor should be invited to give public notice of the passing of such Order in Council, and ol the conveyance of the said lands as herein mentioned and herein comprised. (Signed) A. Mackenzie. 44 Vio. Railway Papers. 249 No. 165. Address of His Excellency the Governor-General of Canada, on tJie subject of the Relations heticeen the Dominion Government and British Columbia, in respect to the Canadian Pacific Eaihcay, delivered at Government House, Victoria, Sept. 20th, 1876, to a Deputation of. the Becejition Committee. Gentlemen, — I am indeed very glad to have an opportunity before quitting Britisli Columbia of thanking j-ou, and through 3'ou the citizens of Victoria, not only for the general kindness and courtesy I have met with during my residence amongst you; but especially for the invitation to the banquet Avith which you have honoured me. 1 regret extremely that my engagements did not permit me to accept this additional proot of your hospitality; but my desire to see as much as possible of the country, and my other engagements, forced me most reluctantly to decline it. I shall, however, have u final opportunity of mingling with your citizens at the entertainment arranged for me at Beacon Hill this afternoon, to which I am looking forward with the greatest pleasure. Perhaps, gentlemen, I may be also permitted to take advantage of this occasion to express to you the satisfaction and enjoyment I have derived from my recent progress through such portions of the Province as I have been able to reach within the short period left at my disposal. I am Avell aware I have visited but a small proportion of your domains, and that there are important centres of population trom which I have been kept aloof More especiall}' have I to regret m}' inabilit}- to reach Cariboo, the chief theatre of your mining industry and the Jiomcofa community M-ith whooe feelings, wishes, and sentiments it would have been very advantageous for me to have become personally acquainted. Still by dint of considerable exertion I have traversed the entire coast of British Columbia from its southern extremity to Alaska. I have penetrated to the head of Bute Inlet. I have examined Seymour JSarrows, and the other clrannels which intervene between the head of Bute Inlet and Vancouver Island, i have looked into the mouth of Dean's Canal, and passed along the entrance of Gardner's Channel. I have visited Mr. Duncan's wonderful settlement at Metlakatlah, and the interesting^ Methodist mission at Fort Simpson; and have thus been able to realize what scenes of primitive peace and innocence, of idylic beauty, and material comfort can be presented by the stalwart men and comely maidens of an Indian community under the wise admin- istration of a judicious and devoted Christian missionary. I have passed across the intervening Sound of Queen Charlotte Inland to Skidegate, and studied with wonder the strange characteristics of a Ilydah village with its forest of heraldic pillars. I have been presented with the sinister opportunity of a descent upon a tribe of our Pagan savages in the very midst of their drunken orgies and barbarous rites; and after various other explorations I have ha' niiv country in the world. l>ay after tlay tor a whole week, in a vessel of nearly •J 000 tons, we threaded an interminable labyrinth of watery lanes and reaches that w'outui endlesslv in and out of a network of islands, promontories, and peninsulas for thousands of miles, unruffled by the slightest swell from the adjoining ocean, and pro- seuting at every turn an ever shifting- combination of rock, verdure, forest, glaciei-, and snow-eappeil mountain of unrivalleil grandeur and beauty. When it is remembered that this wonderful system of navigation, equally well adapted to the largest lino of battle- ship anil the frailest canoe, fringes the entire seaboaril of your Province and communi- cates, at points sometimes more than a hundred n\ilcs from the coast, with a multitude of valleys stretching eastward into the interior, while at tho same timo it is furnished with innumerable harbours on either hand, one is lost in admiration at tho facilities for intercommunication which are thus provided for tho future inhabitants of this wonderful region. It is true at the present moment thcj^ lie unused exce])t by tho Indian tishormau and villager, but the day will surely come when the rapidly diminishing stores of pino upon this continent will be still further exhausted, and when the nations of Europe as well as ot America will untloubtedly be obliged to recur to British Columbia for a material of which you will by that time be the principal de])ository. Already from an adjoining port a large trade is being done in lumber with (Jreat Britain, Europe, Aus- tralia, and South America, and I venture to think that ere long tho ports of tho United States will perforce be thrown open to your trafhc. I had tho pleasure of witnessing the overthrow b}' the axes of your woodmen of one of your forest giants, that towered to the height of 2."t0 feet above our heads, and whose rings bore witness that it dated its birth from tho reign of the Fourth Edward; and where it grew, and for thousands of miles along the coast beyond it, millions of its contemporaries are awaiting the same fate. "With such facilities of access as I have described to tho heart and centre of your various forest lands, where almost everj^ tree can bo rolled from the spot upon which it grew to tho ship which is to transfer it to its destination, it would bo difficult to over- estimate the opportunities of industrial development thus indicated; and to prove that I am not over-sanguine in mj'' conjectures, I will read you a letter recently received from the British Admiralty by Mr. Inues, tho Superintendent of tho Dockyard at Esquimalt: " From various causes, spars from Canada, the former main source of supply, have " not of late years been obtainable, and the trade in JSew Zealand spars for top-masts has " aTso completely died a\\ ay. Of late years tho^ole source of supplj- has been tho casual " cargoes of Oregon spars, imported from time to time, and from these the wants of the "service have been met. But my Lords feel that this is not a mode to be depended "upon, more especially for the larger sized spars." Their Lordships then proceed to order Mr. Innes to make arrangements for the transhipment for the dockyards of Great Britain of tho specified number of Douglas pine which' will be required by the service during the ensuing year, — and what England does in this direction other nations will feel themselves compelled to do as well. But I have learnt a further lesson: I have had ojiportunitios of inspecting some of the spots where your mineral wealth is stored, and here again the ocean stands your friend, tho mouths of the coal pits I have visited almost opening into the hulls of the vessels which are to convey their contents across tho ocean. When it is further remembered that inexhaustible supplies of iron ore are found in juxtaposition with your coal, no one can blame you for regarding tho beautiful Island on which you live as having boon especially favoured by Providence in the distribution of its natural gifts. But still more precious minerals than either coal or iron enhance the value of your possessions. As wo skirted the banks of the Eraser we were met at every turn by the evidences of its extraordinary supplies of fish; but scared}' less frequent were the signs afforded us of tho golden treasures it rolls down, nor need any traveller think it strange to sec the Indian fisher- man hauling out a salmon on to the sands from whence the miner beside him is sifting the sparkling ore. But the signs of mineral wealth which may happen to have attracted my per.senal attention are as nothing, 1 understand, to what is exhiliited in Cariboo, C'assiar, and along the valley of the Stickeen, and most grieved am I to think that I have not had time to testify by my presence amongst them the sympathy I feel with the adventurous prospector and the miner in their arduous enterprises. I had also the satisfaction of having pointed out to me where various lodes of silver only await greater facilities of access to be "worked with profit and advantage. But perhaps the greatest 44 Vic. Railway Papers. 251 surprise in store for us was the discovery, on our exit from the pass through the Cascade range, of the noble expanse of pastoral hinds and ihe long vistas of fertile valleys which opened up on every side as we advanced through the countrj-; and which, as I could see with my own eyes from various heights we traversed, extended in rounded upland slopes or in gentle depressions for hundreds of miles to the foot of the Eocky Mountains, proving, tifier all, that the mountain ranges which frown along j'our coast no more accurately indicate the nature of the territory they guard than is the wall of breaking surf that roars along a tro])ic beach identical with the softly undulating sea that glitters in the sun beyond. But you will very likely sa}' to me, of what service to us are these resources which you describe, if the}^ and we are to remain locked up in a distant and at present inaccessible corner of the Dominion, cut off by a trackless waste of intervening territory from all intercourse, whether of a social or of a commercial character, with those with whom we are politically united? Weil, gentlemen, I can only answer: Of comparatively little use, or at ail events of far less profit than they would immediately become were the railway upon whose construction you naturally counted Avhen you entered into Confederation once completed. But here I feel I am touching upon dan- gerous ground. You are well aware from the first moment I set foot in the Province I was careful to inform ever}- one who approached me that I came here as the Governor- General of the Dominion, the Eopicseutaiive of Her Majesty, exactly in the same way as 1 had passed through other Provinces of the Dominion, in order to make acquaintance with the people, their M'ants, wishes, and aspirations, and to learn as much as I could in regard to the physical Icalures, capabilities, and resources of the Province; that I had not come on a diplomatic mission, or as a messenger, or charged with any announce- ment, either from the Imperial or from the Dominion Government. This statement I beg now most distinctly to repeat. Nor should it be imngined I have come either to persuade or coax you into any line of action which you may not consider conducive to your own interests, or to make any new promises on behalf of ray Government, or renew any old ones; least of all have I a design to lorce upon you any further modifi- cation of those arrangements M'hich were arrived at in 187-i between the Provincial and Dominion Governments under the auspices of Lord Carnarvon. Should any business of this kind ever have to be perfected, it will have to be done in the usual constitutional manner through the Secretary of State. But though I have thought it well thus unmis- takably and effectually to guard against my journey to the Province being misinter- preted, there is, I admit, one mission with which I am charged — a mission that is, strictly within my functions to fulfil — namely, the mission of testifying by my presence amongst you and' by my patient and res])ecttul attention to everything which may bo said to me, that the Government and the entire peo])lc of Canada, without distinction of party, are most sincerely desirous of cultivating with you those friendly and affectionate relations, upon the existence of which n\ust depend the fului-e harmony and solidity of our common Dominion. Gentlemen, this mission 1 think you will admit 1 have done my best to fulfil. I think you will bear me witness that I have been inaccessible to no one, that I have shown neither impatience nor indifference during the conversations I have had with you, and that it would have been impossible for any one to have exhibited more anxiety thoroughly to understand your views. I think it will be further admitted that I have done this, without in the slightest degree seeking to disturb or embarrass the marcli of your domestic politics. 1 have treated the existing Ministers as it became me to treat the responsible advisers of the Crown in this locality, and I have shown that deference to their opponents which is always due to Her Majesty's loyal opposition. Nay, further, I think it must have been observed that I have betrayed no dis]K)sition either to create or foment in what might be termed, though most incorrectly, tho interest of Canada, any discord or contrariety of interest between tl.'C Mainland and the Island. Such a mode of procedure would have been most unworthy; lor no true friend of the Dominion should be capable of any other oi)ject or desire than to give universal satisfaction to the Province as a whole. A settlement of the pending contro- versy would indeed be most lamely concluded if it left cither of the sections into \vliich ycur community is geographically divided unsatisfied. Let me then assure you on the part of the Canadian Government, and on the part of the Canadian jjcople at largo, that there is nothing they desire more earnestly or more fervently than to know and feel that you are one with them in heart, thought, and feeling. Canada would indeed be dead to the most self-evident considerations of self-interest and to the first instincts of national pride if she did not regard with satisfaction her connection with a Province 282 Railway Papebs. 1880 eo ric'hlv endowed by Xature, inhabited b)' a community so replete with British loyalty and j^luiU, Nvliilo it all'ordetl lier the means of cx(endini>; her confines and the outlets of lier eonimeree to the wiile Paeifie and the eountries beyoiui. It is true eii'cumstancos have arisen to create an untriendly and hostile l'oolin>;" in your minds a criticise the action of your Province during this painful period. Out of the allercalion which then ensue.l tln-re issued un.ler the luispieek ol Lord ( ainarvon, ascttlemcut; and when an agreement hutt been arnvcd at, tho sooucr tho lueidcuts 254 Railway Papers. 1880 connected with the conflict which preceded it arc forgotten, tho hotter. Hero then we have arrived at a new era; the former hiohes of Canada, ii'any such thoro had been, arc condoned, and tho two tinie terms of the treaty arc rehixod on the one part, while on the other certain specific obii_i;ation8 were superadded to the main article in tho original barirain: that is to say — again omitting minor items — the Province agreed to tho Pacific JJaiTway being compreted in III years from 1874, and to its being begun "as soon as tho survevs shall have been conipieted," instead of at a fixed ilato, while the J)ominion Government undertook to construct at once a railway from hjsquin\:ilL to Nanaimo, to hurry forward the surveys with the utmost jiossiblo dispatch, and as soon as construction should have begun, to spend two millions a year in tho prosecution of tho work. I find that in this part of the world these arrangements have como to bo known as tho " Carnarvon Terms." It is a very convenient designation, and I am quite content to adopt it on one condition, namely, that Lord Carnarvon is not to be saddled with any of th(f original responsibility Avith regard to any of these terms but ono. Tho main body of tho terms are Mr. Mackenzie's; that is to say, Mr. Mackenzie proffered the Nanaimo and l^squimalt Railway, the telegraph line, tho waggon road and the annual expenditure. All that Lord Carnarvon did wiis to suggest that the proposed cxpoiidituro should bo two millions instead of one and a half millions, and that a time limit should bo added. But, as you are well aware, this last condition was necessarily implied in the preceding one relating to the annual expenditure, for once committed to that expenditure Canada would in self defence be obliged to hasten tho completion of the lino in order to render reproductive the capital she sunk as quickly as possible. It is therefore but just to Lord Carnarvon that he should bo relieved from the responsibility of having been in any way the inventor of what are known as the "Carnarvon Terms." Lord Carnarvon merel}' did what every arbitrator would do under the circumstances; he found the parties already agreed in respect to the principal items of the bargain and was consequently relieved from pronouncing on their intrinsic merits, and proceeded at once to suggest to Canada the further concession which would be necessary to bring her into final accord with her opponent. In pursuance of this agreement the Canadian Government organized a series of surveying parties upon a most extensive and costly scale. In fact, during the last two years two millions of money alone have been expend- ed upon these operations. The Engineer himself has told me that Mr. Mackenzie had given him carte blanche in the matter, so anxious was he to have the route determined without delay; and that the mountains were already as full of as many theodolites and surveyors as they could hold. I am aware it is said— indeed as much has been hinted to me since I came here — that these surveys were merely multiplied in order to furnish an excuse for further delays. Well, that is rather a hard saying. JSut upon this point I can speak from my own personal knowledge, and I am sure that what I say on this head will be accepted as the absolute truth. Luring tho w^hole of the period under review I was in constant personal communication with Mr. Fleming, and was kept acquainted by that gentleman with everything that was being done. I knew the position of every surveying party in the area under examination. Now Mr. Fleming is a gentle- man in whose personal integrity, and in whose personal ability every one I address has the most perfect confidence. Mr. Fleming, of course, w\as the responsible engineer who planned those surveys and determined the lines along which they were to be carried, and over and over again Mr. Fleming has explained to me how unexpected were the difficulties he had to encounter, how repeatedly after following hopefully a particular route his engineers found themselves stopped by an impassable wall of mountain which blocked the wa3^ and how trail after trail had to be examined and abandoned before he had hit on anything like a practicable route. Even now, after all that has been done, a glance at the map will show you how devious and erratic is the line which appears to afford the only tolerable exit from the labyrinthine ranges of the Cascades. Notwith- standing, therefore, whatever may have been bruited abroad in the sense to which I have alluded, I ani sure it will be admitted, nay, I know it is admitted, that so far as the prosecution of the survej's is concerned, Canada has used due diligence, yes, more than due diligence, in her desire to comply with that section of the "Carnarvon Terms" relating to this particular. You must remember that it is a matter of the greatest moment, affecting the success of the entire scheme, and calculated permanently to affect the future destiny of the people of Canada, that a right decision should be arrived at in regard to the location of the western portion of the line, and a Minister wuuld be a traitor to a most sacred trust if he allowed himself to be teased, intimidated or cajoled into any percipitato decision on 44 Vic. Railway Papers. 255 such a momentous point until every possible route had been duly examined. When I left Ottawa the engineers seemed disposed to repoi't that our ultimate choice would lie between two routes, both starting from Fort Georjxe, namely, that which leads to the head of Dean's Canal, and that which terminates in Bute Inlet. Of these two the line to Dean's Canal was the shortest b}' some 40 miles, and was considerably the cheaper by reason of its easier grades. The ultimate exit of this channel to the sea was also more direct than the tortuous navigation out of Bute Inlet; but Mr. Mackenzie added — though you must not take what I am now going to say as a definite conclusion on his part, or an authoritative communication upon mine — that provided the difference in ex- pense was not so great as to forbid it, he would desire to adopt what might be the less advantageous route from the Dominion point of view in order to follow that line which would most aptly meet the requirements of the Province. Without pronouncing an opinion on the merits of either of the routes, which it is no part of my business to do, I may venture to say that in this principle I think Mr. Mackenzie is right, and that it would be wise and generous of Canada to consult the local interests of J3ritish Columbia by bringing the line and its terminus within reach of existing settlement, if it can be done without any undue sacrifice of public money. From a recent article in the Globe it would seem as though the Bute Inlet line had finally found favour with the Government, though I mj'self have no information on the point, and I am happy to see from the statistics furnished b}- that journal that not only has the entire line to the Pacific been at last surveyed, located, graded, and its profile taken out, but that the calculated expenses of construction though ver}' great, and to be incurred only after careful con- sideration, are far less than were anticipated. Well, gentlemen, should t.ho indications we have received of the intentions ot the Government prove correct, you are very much to be congratulated, for I am well aware that the line to Bute Inlet is the one which you have always favoured, and I should hope that now at last you will be satisfied that the Canadian Government has used, as it undertook to do, all possible expedition in prosecuting the surveys of the line to the Pacific Coast. I only wish that Waddington Hurbour, at the head of the Inlet, was a better port. I confess to having but a very poor opinion of it, and certainly the acquaintance i have made with Seymour ]S"arow8 and the intervening channels which will have to be bridged or ferried, did not seem to me to be very favourable to either operation. Well, then, we now come to the p]squimalt and jNanaimo Haihva}'. I am M'ell aware of the extraordinary importance you attach to this work, and of course I am perfectly read}' to admit that its immediate execution was pro- mised to you in the most definite and absolute manner under Lord Carnarvon's arbitra- tion. I am not, tliereibrc, surprised at the irritation and excitement occasioned in this city by the non-fulfilment of this item in the agreement — nay, I will go further, I think it extremely natural that the miscarriage of this ]iart of the bargain should have been provocative of very strenuous language and deeply embittered feelings; nor am I sur- prised that as is almost certain to follow on such occasions, you should in your vexation put a very injurious construction on the conduct of those who had undertaken to realize your hopes; but still I know that I am addressing high-minded and reasonable men. and moreover that you are perfectly convinced that I would sooner cut my right hand off than utter a single word that I do not know to be an absolute truth. Two years have passed since the Canadian Government undertook to commence the construction of the Esquimau and iS'anaimo Kailway, and the Naiialmo and Ksquimalt h'aihvay is not even commenced, and what is more there does not at present seem a prospect of its being commenced. What then is the history of the case, and who is answerable for your dis- appointnient? I know you consider Mr. iMackeiizie. I am not hure to defend iMr. Mac- kenzie, his policy, his jn-oceedings, or his ulleranrcs. J hope this will bo clearly understood. In anything I have hitherto said I have dom- nothing of this sort, nor do I intend to do so. I have merely staled to you certain matters with which I thought it well for you to be acquainted, because they have lieen misapprehended, and what 1 now tell you are also matters of fact, within my own cognizanct! and which have no relation to Mr. Mackenzie as the iiead of a political party, and I Icll them ((> you not only in your own interest, but in the interest of ])ublic morality and Knglish honour. In accordance with his engagements to you in relation to the iSanaimo and Fs(|uimalt Bailway Mr. Mackenzie introduced as soon as it was possillo a Bill into the Canadian House of Commons, the clauses of which were aclniilted by your llepresciitatives in Parliament fully to discharge his obligations to yourselves and to Lord Carnarvon in respect to that undertaking, and carried it through the Lower House by a 4argo 256 Railway Papers. 18S0 raajoritv. I l>s»vc reason to think that many of his supporters votoil for tho Bill with verv "rout njisi^Mvin^s hotli as to tho policy of tho measure, and tho intrinsic merits of the'lvTuhvav, hut their lea.ler had pkHl,-;-e.l himself to exereiso his Parliamentary intlu. oiH'o to pass it, an. I tliey very properly carried it throu^'h for him. It went up to tho Sonaio and it was thrown out hy tluit hody hy a majority of two. Well, I have learnt with roirret that there is a very widespread conviction in this community that iMr. Maekonzio had surreptitiously procure 1 t lie delVat. of his own measure in tho Upper ilouse. Had Mr. Mackenzie dealt so ireai herously by J.ord Carnarvon, by the lleprc- pontativo of his Soverei!;-n in this country, or by you, he would have boon guilty of a most atrocious act, ot which I trust no public man in Canada or in any other British Colony could be capable. I tell you in the most emphatic terms, and I pledge my honour on the" jioint, that Mr. ^Mackenzie was not guilty of any such base and deceitful conduct- had I thouu'ht hin\ guilty of it either ho would have ceased to have been Prime Minister or 1 shoukfhave left the country. But the very contrary was tho fact. While these events were passing I was in constant jiersonal communication with Mr. Mackenzie. I naturally watched" the progress of the Bill with tl»o greatest anxiety, because I was aware of the eagerness with which the act was desired in Victoria, and because I had long telt the deepest sympathy with you in the succession of disappointments to which, by The torce of circumstances you had been exposed. When the Bill passed the House of Commons by a large majority Avith the assent of the leader of the opposition, in com- mon with everyone else, I concluded it was safe, and the adverse vote of the Senate took me as much by surprise as it did you and the rest of the world. I saw Mr. Mackenzie the next day and'l have seldom seen a man more annoyed or disconcerted than he was; indeed lie was driven at that interview to protest with more warmth than he has ever used against the decision of the J'^nglish Government, which had refused, on the opinion of the Taw officers of the Crown, to allows him to add to the members of the Senate, when soon after his accession to office. Prince Edward Island had entered Confederation. " Had he been permitted," he said to me, " to have exercised his rights in that respect, "this would not have happened, but how can these mischances be prevented in a body, «' the majority of which, having been nominated by my political opponent is naturally "hostile to me." Now, gentlemen, j^our acquaintance with Parliamentary Government must tell you that this last observation of Mr. Mackenzie's was a perfectly just one. But my attention has been drawn to the fact that two of Mr. Mackenzie's party supported his Conservative opponents in the rejection of the Bill, but surely you don't imagine that a Prime Minister can deal with his supporters in the Senate as if they were a regiment of soldiers. In the House of Commons he has a better chance of maintaning a paTty discipline, for the constituencies are very apt to i csent any insubordination on the 'jart of their members towards the leader of their choice. But a Senator is equally independent of the Crown, the Minister, or tlie people, and as in the House of Lords at Home, so in the second Chamber in Canada, gentlemen will run from time to time on the wroii,"- side of the post. But it has been observed — granting that the two members in question did not vote as they did at Mr. Mackenzie's instigation — he has exhibited his perfidy in not sending in his resignation as soon as the Senate had pronounced a'^ainst the Bill. Now, gentlemen, you cannot expect me to discuss Mr. Mac- kenzie's conduct in that respect. It would be very improper for mo to do 80, but though I cannot discuss Mr. Mackenzie's condut^t, I am perfectly at liberty to tell you what I myself should have done had Mr. Mackenzie tendered to me his resignation. I should have told him that, in mj^ opinion such a course was quite unjustifiable, that as the House of Commons was then constituted I saw no prospect of the Queen's Government being advantageously carried on except under his leadership, and that were he to resign at that time the greatest inconvenience and detriment would ensue to the public service. That is what I should have said to Mr. Mackenzie, in the event contemplated, and I have no doubt that the Parliament and the people of Canada would havg confirmed my decision. But it has been furthermore urged that Mr. Mac- kenzie ought to hiivc iVintroduced the Bill. Well, that is again a point I cannot discuss, but I may tell you this, that if Mr. Mackenzie had done so, I very much doull whether he would have succeeded in carrying it a second time even in the House of Commons. The fact is'that Canada at large, whether rightly or wrongly I do not say, has unmis- takingly shown its approval of the vote in the Senate. An opinion has come to prevail from one end of the Dominion to the other, an opinion which I find is acquiesced in by a consificrable proportion of the inhabitants of British Columbia, that the Nanaimo and 44 Vic. Railway Papers, 257 Esquimau Eailway cannot stand upon its own merits, and that its construction as a C4overnment enterprise would Ijc, at all events at present, a useless expenditure of the public money. Now again let me assure you that I am not presuming to convey to you any opinion of my own on this much contested point. -Even did I entertain any mis- givings on the subject it would be very ungracious for me to parade them in your presence and on such an occasion. I am merely communicating to you my conjecture why it is that Mr. Mackenzie has shown no signs of his intention to re-introduce the Nanaimo and Esquimalt Eailway Bill into Parliament, viz.: — because he had no chance of getting it passed. "Well, then, gentlemen, of whom and what have j'ou to complain? "Well, you have every right from your point of view to complain of the Canadian Senate. You have a right to say that after the Government of the day had promised that a measure upon which a majority of the inhabitants of an important Province had set their hearts should be passed, it was ill-advised and unhantlsonie of that body not to confirm the natural expectations which had thus been gendered in your breasts, especially when that v.'ork was itself offered as a solution to .you for a previous injury. I fully admit that it is a very grave step for either House of the Legislature, and particularly for that which is not the popular branch, to disavow any agreement into which the Executive may have entered, except under a very absolute sense of public duty. Mind, I am not saying that this is not such a case, but I say that you have got a perfect right from your own point of view, so to regard it. But, gentlemen, that is all. You have got no right to go beyond that. You have got no right to describe yourselves as a second time the victims of a broken agreement. As I havo shown you, the persons Avho had entered into an engagement in regard to this Railway with you and Lord Carnarvon had done their very best to discharge their obligations. But the Senate who counter- acted their intention, had given no preliminary promises whatsoever either to you or to the Secretary of State. They rejected the Bill in the legitimate exercise of their con- stitutional functions, and there is nothing more to be said on this head, so far as that body is concerned, either by you or Lord Carnarvon, for 1 need not assure you that there is not the slightest chance that any Secretary of State in Downing street would attempt anything so unconstitutional, so likely to kindle a flame throughout the whole Domin- ion, as to coerce the free legislative action of her Legislature. But there is one thing I admit the Senate has done, it has revived in their integrity those original treaty obliga- tions on the strength of which you were induced to enter Confederation, and it has re- imposed upon Mr. Mackenzie and his Government the obligation of offering you an equivalent for that stipulation in the " Carnarvon Terms '' which he has not been able to make good. Now, from the very strong language which has been used in regard to the conduct of -Mr. Mackenzie, a bystander would be led to imagine that as soon as his llailway Bill had miscarried, he had cynically refused to take any further action in the matter. Had my Government done this they would have exposed themselves to the severest reprehension, and such conduct would have been both faithless to you and disrespectful to l^ord Carnarvon; but so fur from having acted in this manner, Mr. Mackenzie has offered you a very considerable grant of money in consideration of your disappointment. Now here again I won't touch upon the irritating controversies M'hich have circled round this particular step in these transactions. I am well aware that you consider this offer to have been made under conditions of which you have reason to complain. If this has been the case it is most unfortunuto, but still whatever may havo been the sinister incidents connected with the past, the one solid fact remains that the Canadian Government has ofl'ered you 3750,000 in lieu of the railway. This sum has been represented to me as totally inadequate, and as very far short of an equivalent. It ma}' be so or it may not be so. Neitliei- upon that point will 1 offer an opinion, but still 1 may mention to you the prin(;iple upon which that sum has been arrived at. Under the Nanaimo and Esquimalt llailway liill, whose rejfc'ion by the Senate we havo been considering, Catiaila was to contribute a bonus of §10,000 a mile; the total distance (d'the line is about 70 miles, consfqucnlly the 8750,000 Is nothing more or less than tlds very bonus converted into a lump sum. Now since 1 have come, here it has been repre- sented to me by the friemls of the railway that it is a lino which is capa!>le of standing on its own merits, and that a company had been almost indmed to take it up some time ago as an unsubsiflied enterprise. Nay, only yesterday the local pap .-r which is the most strenuous champion for the line, asserted that it couM be built for S2,00i),000; that the lands — which, with the 87r>0.()00, were to be replaced by ,Mr. Mackenzie at your disposal — were worth several millions more, and that the railway itself would prove a 2S8 Railway Papers. 1880 most navinij concern. If this ivS so, and what better authority can I refer to, is it not obvious'tliat the bonus proposal of the Dominion (loverninent assumes at least the semblance of a fair oftcr. ami even if you did not considtM' it absolutely uj) to the mark, it should not have been denounced in the very stronr quarter. And now, gentlemen, 1 must bid you good-bye; but before doing so there is one other ropic upon which I am desirous of touching. From my first arrival in Canada 1 have been very much preoccupied with the condition of the Indian population in this Province. You must remember that the Indian population are not rc])resented in Parliament, and consequently that the Govcrnor-Gicncral is bound to watch over their welfare with especial solicitude. Now, we must ail admit that the condition of the Indian question in British Columbia is not satislactorj'. Most unfortunately, as.l think, there has been an initial error ever since Sir James Douglas quitted office, in the Government of British Columbia neglecting to recognize what is known as the Indian title. In Canada this has always been done ; no Government, whether provincial or central, has failed to acknowledge that the original title to the land existed in the Indian tribes and communities that liunted or wandered over them. Before wo touch an acre we make a treaty with the chiefs representing the lands we are dealing with, and having agreed upon and paid the stipulated price, oftentimes arrived at after a great deal of haggling and difficulty, wc enter into possession, i)ut not until then do we consider that we are entitled to deal with an acre. The result has been that in Canada our Indians are contented, well affected to the white man, and amenable to the Laws and Govern- ment. At this very moment the Lieutenant-Governor of Manitoba has gone on a distant expedition in order to make a treatj' with the tribes to the northward of the Saskatche- wan. Last year he made two treaties with the Sioux and Crows; next year it has been arianged that he should make a treaty with the Blackfeet, and when this has been done the British Crown will have acquired a title to every acre that lies between Lalco Superior and the top of the Eocky Mountains. But in ]3ritish Columbia, except in a lew cases where, under the jurisdiction of the Hudson Hay Company or under the auspices of Sir James Douglas, a similar practice has been adopted, the British Columbia Govern- ment has always assumed that the fee simple as well as the sovereignt}' resided in the Queen. Acting upon this principle they have granted extensive grazing leases and otherwise so dealt with various sections of the country- as greatly to restrict or interfere with the prescriptive rights of the Queen's Indian subjects. As a consequence there has come to exist a very unsatisfactor}' feeling amongst the Indian population. Intimations cf this reached me at Ottawa two or three years ago, and siiice I have come into the Province my misgivings on the subject have been confirmed. Now, I confess I consider that our Indian fellow-subjects arc entitled to exactly the same civil rights under the law as are possessed by the white ])opulation, and that if an Indian can prove a pre- scriptive right of way to a fishing station, or a right of way of any other kind, that that right should no niore be ignored than if it was the case of a white man. I am well ■aware that among the coast Indians the land question does not present the same characteristics as in other parts of Canada, or as it does in the grass countries of the interioi' of the Province, but I have also been able to understand that in these latter districts it ma}' bo even niore necicssary to deal justly and liberally with the Indian in regard to his land rights evun than on the prairies of the North-West. I am very happy to think that the British Colundjia G'overnment should have recognized the necessity of assisting the J;oininion (iovoriiniont iii amcdiorating the present condition of allairs in this respect, and that it has agreed to the creation of a joint; commissiou for the purpose 44 Vio. Railway Papers. 261 of putting the interests of the Indian population on a more satisfactory footing. Of course in wliat I have said I do not mean that, in our desire to be humane and to act justl\', we should do anything unreasonable or (^lixotic, or that rights already acquired by white men should be inconsiderately invaded or recalled; but 1 would venture to put the Government of British Columbia on its guard against the fatal eventualities which might arise should a sense of injustice provoke the Indian population to violence or into collision with our scattered settlers. Probabl}^ there has gone forth amongst them very incorrect and exaggerated information of the warlike achievements of their brethren in Dakotah, and their uneducated minds are incapable of calculating chances. Of course there is no danger of any serious or permanent revolt, but it must be remem- bered that even an accideiUal collision in which blood was shed might have a inost disastrous effect upon our present satisfactory relations with the warlike tribes in the North-West, whose amity and adhesion to our system of government is so essential to the progress of the Pacific Jlailway; and 1 make this ajjpeal, as I may call it, Avith all the more earnestness since I have convinced myself of the degree to which, if properly dealt with, the Indian population might be made to contribute to the development ot the wealth and resources of the Province. 1 have now seen them in all phases of their existence, from the halt-naked savage, perched like a bird of prey, in a red blanket, upon a rock trying to catch his miserable dinner of fish, to the neat Indian maiden in Mr. Duncan's school at Mctlakatlah, as modest and as well dressed as any clergyman's daughter in an English parish, or to the shrewd horse-riding Siwash of the Thompson Valley, with his racers in training for the Ashcroft stakes and as proud of his stack- yard and turnip field as a British'squire. In his first condition it is evident he is scarcely a producer or consumer; in his second he is eminently both ; and in proportion as he can be raised to the higher level of civilization will be the degree to which he will con- tribute to the vital energies of the Province. What you Avant are not resources, but human beings to develop them and to consume them. Eaise your 60,000 Indians to the level Mr. Duncan has taught us they can be brought and consider what an enormous amount of vital power you will have added to your present strength. But I must not keep you longer. I thank you most heartily for your patience and attention. Most earnestly do I desire the accomplishment of all jour aspirations, and if ever I have the good fortune to come to British Columbia again I hope it may be by — Kail. No. IGG. The Earl of Carnarvon to the Earl of Dufferin. Canad.a. Downing Street, ■^Q^ 3(32. December 18th, 1876. My Lord,— I duly received Your Lordship's Despatch (No. 190 of the 30th Juno last) enclosing a Jic-port of a Committee of the Executive Council of British Columbia, respecting the course taken by the Dominion Ciovernment in reference to the construc- tion of the Canadian Pacific Pailway. This report, together with the previous one of the 4th January, anet been possihlc for you to complete and traiisirit to me your oflicial report of this visit, but as 1 understand that the meeting of the British Columbia Legis- hiture is now near at hand, I think 1 ought not any longer to withhohl from the Covern- mcnts of the Dominion and of the J'rovineo an expression of my opinion, so lar as it has yet been pr>ssible for me to form one, on the principal questions now at issue. 4. Although, in visiting British Columbia, you were not charged to offer any expla- nations or to make any piciposals, either on behalf of Her Majesty's (iovernmcnt or of your Miiiist.rs, to the (iovernment and people ot the I'rovince, I naturally anticipated that the icsult of your communications with them would lie to enlighten them as to tho views and j.olicv ot the I)(.niinion Cr.vernmt'nt, and the diUiculties with which that Government has had to contend iu iulfilling the terms of tho settlement which I proposed 262 Railway Papers. 1880 in 1S74 • and consequently would tend to allay the irritation which had hoon felt in tho Provineo on account of tlio lailure of the Bill providing for tho Nanaimo and I^]8qiiinitilt Eailwav. as well as on other points in regard to which tho people ot British Columbia have been dissatisfied. 5. I have already learnt enough of your proceedings to feci assured that 1 do not niisinteri)ret the result of your visit, in 'believing thut my anticipations, as ubovo cx- presseil. have been to a great extent fulfilled, and that public opinion in British Columbia will at all events be prepared to concur with me in the opinion th:it tho circumstances of the case are such as to render it not unreasonable that tho J)ominion Government should ask for time, and an indulgent consideration of their own difiicultics, in ordoi- that they may fulfil, to the best of their abdity, tho obligations under which they find themselves placed. _ z. , » , , , 6. If I do not at this moment comply with the representations of the Assembly and Council ot the Province, thut I should urge upon the (lovernment ot Canada tho strict and immediate fulfilment of the obligations to which I h;ivc referred in the preceding paraixraph, it is because I appreciate, more distinctly perhaps thun it is possible for tho peopTe of the Province to do, the position in which the Dominion Government has been placed by the failure of the Island I^aihvay Bill. I recognize, moreover, the fact that there are many considerations which require that the whole of this most important question of the Pacific Railway should be treated with tho utmost deliberation consis- tent with the pressing requirements of the Province, and that no hasty action should be pressed upon the Canadian Government, whom, I need hardly say, I believe to be thorouii;hly sincere in their desire to construct the main line of railway with all the expedition of which the resources of the country and the engineering problems remain- ing yet unsolved will admit. 7. After much and anxious consideration, and with every sympathy for the sense of disappointment under which I see that the people of British Columbia are labouring, I cannot avoid the conclusion that the objections which have been made against the course taken by the Dominion Government have been couched in more severe and exaggerated language than a fair estimate of the peculiar embarrassments and the difficulties of tho case would seem to justify. 8. The British Columbian Government must, I feel sure, be convinced (as I am) that the surveys of the line have been prosecuted with the greatest vigour and dispatch possible, that these surveys are now approaching completion, and that every effort has been made by the Government of Canada to hurry forward the antecedent preparations necessary to the construction of the railway. 9. It must, of course, be expected that, even after the completion of tho ^surveys upon the spot, a great amount of work will remain to be done in the Engineer's office, and the Dominion Government will require time to consider fully, after sufficiently accurate data have been collected, not only the exact proportions and details of the undertaking, but also the calls which it will entail upon the resources of the country. Those, auain, who may be disposed to contract lor sections of the line, and some of whom may not'improbably be lesident in England, would presumably require to send their agents to the localities, in order to make such calculations as would enable them to tender for the work. 10. There is a further question of the greatest importance which has weighed much with me. Not only is it evident that the route inland must be laid down with sufficient precision for the purpose, but the question of the terminus is one in which the most serious consequences are obviously involved, and with regard to which, after having recourse to the information now in the possession of the Lords Commissioners of the Admiralty, I see clearly that we have not at present the materials for any definite conclusion. 11. The future success of the railway is, indeed, in so great a degree dependent upon a proper approach to the sea being'selected, that it would be obviously improper for the Canadian Government to be hurried into a premature decision on this point by any untimely pressure. For example, grave objections, I understand, may be urged against the Bute Inlet route, which has been looked upon with much favour, on account ot the inadequacy of its head wafers as a saf^th of December, 1870, and 18lh January, 1877, respectivcl}', the peo])lc of British Columbia now feel that his Lordship will be careful to discountenance any further unnecessary delay in the com- mencement of railwa}^ construction within the Province; and ihc}' confidently expect that on or before the expiration of the year his Lordship will be able to give tiie Gov- ernment an assurance that actual construction wi'l be begun as soon as tenders can be received and contracts awarded; and that woi'k thereon be pi-osecuted thereafter in a manner that will ensure the ultimate completion of the undertaking within such reason- able period as the interests of the Empire, the Dominion and the Province alike demand. The Committee advise that the Report be a))proved, and that copies be forwarded by his Honour the Lieutenant-Governor to the Right Honourable the Secretary of State for the Colonies, and the Secretary of State for the Dominion of Canada. Certified, (Signed) Wm. Smitde, M inister of Finance and Clerk Executive Council. No. 17G. The Secretary of State to the Lieutenant-Governor. Ottawa, 29th December, 1877. SiE,— With reference lo your despatch of the Dih ultimo, and the accompanying Minute of your Executive Council of the ^th of that month, I have the honour to transmit to you herewith, for the information of your d'overnmcnt, a copy of an Order of his Excellency the Governor-Geneial in Council on the subject of the construction of the Canadian Pacific Railway I have, kc, (Signed) R. W. Scott. No. 177. Beport of the Privy Council^ approved by the Governor-General on the '2\th December, 1877. The Committee have had under eonsideraf ion the despatch from the Lieutenant- Governor of British Columbia of the 9th of November, 1S77, encU.sing coi)y of a Minute of his Executive Council of the 8ih of that moiilh, which had been iorwarded to the Secretary of State lor the Colonics, on the subject of the conMiudion of the Canada Pacific Railway. , , , , < i j The Honourable the Minister of Public Work.M, to whom the above despatch and enclosure were referred, observes that the .Minul«' in question calls the altcntion of the Secretary of Slate lor the Colonics to ihr delay tie Earl of Carnarvon thought necessary in commcticing the ( (.nsti ii(li«.n of ibc J'a( ific Railway, in his despatches of December 18th 1876, and January 18th, 1877, and stales that the British Columbia Government Railway Papers. 1880 are anxious to obtain a knowledge of the result of the year's surveys as early as possible, in order lluU they may be in a position to eonvene the I^oeal Legislature at an early date and lay before it "definite information as to the intentions of the Dominion Gov- ernment to earry out its railway obligations." The Minister reports tiuU the delay deemed necessary before advertising for tenders was consequent upon the manifest necessity of making a careful instrumental survey of the Fraser valley route, upon which an exploratory survey only had been made in previous years. That, as early as the season permitted, a large staff of engineers Avas sent to perform this work under the immediate charge of Mr. Cambie. That the tield work was finished about the beginning of November, and in the course of that month the engineei-s returned to Ottawa, where they are now engaged in plotting the results of the season's 0])erations. That it will take some time yet to accomplish this, and to report in such detail as will enable the Govn-nment to come to a decision as to the value of the route. That it is impossible to veniure upon any decided opinion in advance of the complete report, maps, and profiles ct the road, which are now in course of preparation. That the Government also took necessary steps to obtain accurate information regarding the possibility of a route to the ocean at Port Essington, at the mouth ot the Skeena nver; as well as to ascertain the feasibility of a better pass through the Kocky Mountains in the vicinity of Pine river. That the information on both these points will be embraced in the Report of the Engineer, and will include the Reports of the Naval Officers upon the harbour at the mouth of the Skeena. That, so far as can be seen at present, there would appeal* to be no necessity for an}- further explorations in British Columbia with the view of the determination of the best route from the summit of the Kocky Mountains to the sea. That tiie conclusion reached will be duly communicated to the Secretary of State for the Colonies. The Committee concur in the foregoing report, and advise that a copy of this Minute be transmitted to Lord Carnarvon and to the Lieutenant-Governor of British Columbia. Certified. (Signed) W. A. iliMSWORTff, Clerk Privy Council, Canada. No. 178. Report of the Privy Council approved by the Governor-General on the 17th April, 1877. On a Report, dated 16th April, 1877, from the Honourable the Minister of Public "Works, stating that special efforts have been made during the past summer and autumn to procure information through the Officers of the Admiralty and Roj^al Navy, respect- ing the several harbours and roadways on the Coast of British Columbia, but that it would appear no surveys have j'ct been made of the coast adjacent to the mouth -of the River Skeena, and that no decided opinion has been obtained regarding the waters in that quarter; That, as the Dominion Government have no means of conducting an examination in that direction, he recommends that a request be forwarded to the Imperial Government that they will direct a nautical survey- to be made during the coming season of the channels and approaches at the point indicated, and that surveys sliouM be made of Frederick Arm, and the waters leading thereto, as decided information respecting this point should be obtained before a final decision is arrived at, fixing the seaport terminus of the Canada Pacific Railway. The Committee concur in the foregoing recommendation, and submit the aame for Your Excellency's approval. Certified. (Signed) W. A. Himsworth, Clerk, Privy Council. 44 Vio. Railway Papers. 269 No. 179. Admiral DeHorsey to Secretary of the Admiralty. (No. 32G.) c: sn^jj .» ^T EsQuiMALT, 9th October, 1877. Sir, — With reference to the directions of the Lords Commissioncis of the Admiralty, contained in your letter, No. 86, of the 19th May last, (received 14th Auijjust), I have the honour to report that I sent the " Daring," Commander Hanmer, to make a general examination of the channels and approaches of the Eiver Skecna. From Commander Hanmer's report, and Irom such informaiion as I have been able to obtain, I am of opinion that, whether in view of communication with the inhabited parts of British Columbia, or of through traffic across the Pacitic, the vicinit}' of Skeena is totallj* unfit for the ocean terminus ot the ))roposed Canadian Pacific l^ailway. The mere circumstance that the bars of the river are not navigable for ocean steamers, except at high water, is of itself condemnatoiy, in my opinion. Added to this are the difficulties of tortuous approaches on a very foggy and rainy coast, and that the land in the vicinity is reported to consist of mountains and swamps, oftering little inducement to settlers. I beg to transmit herewith a copy of my orders to Commander Kanmer, and of his report, accompanied by plans of the mouth of the Skcena and of Woodcock's Landing. The lateness of the season and the almost constant rain, causeu a service of this kind (necessarily performed in open boats) to be somewhat arduous. I submit Com- mander Hanmer's execution of it for tbeir Lordship's approval. I have forwarded a copy of this report and enclosures for the information of the Governor-General of Canada. I have, &c., (Signed) A. DeHorsey, Rear Admiral and Commander-in-Chief. No. 180. Report of the examination of the River Skeena by Commander Hanmer. H. M. S. " Daring " at Departure Bay, 4th October, 1877. Sir, — I have the honour, in accordance with your directions, dated 22nd August, 1877, to report the result of my examination ot the channels and approaches to the Eiver Skeena, British Columbia. 1. As regards the channels and approaches of the three named respectively, Tele- graph, Middle and North Channels, Telegraph Channel is available at high water for ships drawing 25 feet up to Port Essington, the deepest water being on the mainland side, abreast of Kennedy Island, and on the Island side abreast of DeHorsey Island (as will be seen by the plan annexed), heavy tide rips occur at springs. The passage between Kennedy and DeHorsey Islands I have designated as the " Middle;" it is between Hand banks, which, I should think are liable to shift at different seasons of the year, and is only fit for small steamers. North Channel (or ^'orth Skeena Passage), has a passage for steamers of light draught, and is entered over a flat with about three fathoms low water springs, and has an outlet between DeHorsey Island and the mainland of only half a cable in width, at low water the ebb tide setting strongly through it. I do not recommend it for large vessels. Port Kssington should therefore be reached from the Westward, either by the Browning Entrance, Ogden Channel and Cardeiia Bay, or by Dixon Entrance, Chatham .Sound, Ar.ihur Channel and Cardena Bay. 2. Anr/iornrjefi — Skeena J^iiver has an extensive anchorage ground between Port Essington and the north end of DeHorsey IhUukI; holding ground is good, being soft mud; at springs heavy tide rips occur, making boat or lighlcr work dangerous. Mr. Cunningham (a'^trador of many ycais o.\perience at I'ort Essington,, informed mo that tho river was never frozen at Port Essington, but great quaii(iti«'s of ice come down in the spring, as well as immense trees. During the winter months heavy gales from tho north are fnquent, and I should think, woubl completely suspend eommunication between the shore and vessels in the stream, as there is no shelter from their full force. High water approximate l-U-U, F. & C. rise 24 feet springs. 270 Railway Papers. 1880 Woodcock's Landiiiir atTords a fair anehorago, but is limited in extent (plan annex- ed), it is more sholioivd than Port Kssinulon, and is free Irom tide rips, although the ebb tide runs between four and five knots at spring's; hoKling ground is good, being mud off the village, H. W. F. \- C 12 "15, rise springs 24 Icet approximate, neaps 17 toot (vessels must moor) Cardona Bay is the best anchorage in the vicinil}', being sheltered from N. and S. E.; holding ground is good; tide sets fairly through the anchorage; H. W. F. & C, noon springs rise 24 feet; neaps, IT feet approximate. 'Jlie prevailing winds in the vicinity of the Skeena are said to be westerly during the summer months, and during the remainder of the year S.E. and N. E., with heavy gales occasionally from the north. Fogs are trequcnt in August and September. Kain is prevUent in spring and autumn and daring the stay of the " Daring." from Ist to 27th September, the i)revailiiig winds were easterly and south-easterly, with almost constant rain and frequent squalls; during the same time the barometer's lowest was 1:8° 90'; highest. 80° SO'. The land about the entrance of the Skeena is mountainous and densely wooded (chietiv L'cdar ami hemlock) and shows signs of a remarkably wet climate, and, I should say, is quite untit for settlement. I have, &c., (Signed) John G. Hanmer, J. H. Cleverton, Commander. Secretary. 181. Report of Admiral DeHorsey respecting Canadian Pacific Railway Terminus. " Shah " at Esquimalt, 26th October, 1877. Sir, — I request you will bring under the consideration of the Lords Commissioners of the Admiralty the following observations, submitting my opinion relative to the best site for the ocean terminus of the Canadian Pacific Eailvvay. 2. With a view to forming an opinion on this subject I have carefully perused the reports of exploration of 1874 and J877, made by Mr. Sanlord Fleming, the Engineer-in- Chief, and I have had the advantage of personal interviews with Mr. Marcus Smith, Mr. Cambie, and other Engineers of the Survej'. An ascent of the Eraser Kiver, as far as Yale, and on to Boston Bar by land, has enabled me to form some iiiea of the difficulty of penetrating the Cascade Eange of mountains with a line of railway. 1 have further inspected Burrard Inlet, Haro and Georgia Straits (as well as the inner channels emerg- ing at Active Pass), Discovery Passage and some of the channels in the vicinity of Yaldes Island, including Seymour i^arrows. An examination has also been made by their Lordships' direction of the approaches to the Skeena Jiiver, the result of which has been reported in my letter, No. 326, of the 9th instant. 3. 'I'he question of site of ocean terminus should, it appears to me, be determined by two main considerations (besides feasibilit}' in an engineering point of view): — 1st. Its suitability for the interests and traffic of the populated parts of British Columbia, that Province having joined the Dominion upon the promise of a railway. 2nd. Its being situated at a convenient port for ocean steamers to take up, direct from wharf accommodation, the through traffic for Australia, China, Japan, and other places across the Pacific at all seasons of the year and in all weathers. 4. Bearing in mind these considerations, it appears desirable to reject all idea of a terminus on the coast between Vancouver and Queen Charlotte Islands. The navigation of that part of the coast, judging from the charts and from the reports of Admiral Eichards and other naval officers, is decidedly unfavourable, and I should equally reject the vicinity of the Pvivcr .Skeena owing to the picvalence of fog, ice, and other climatic causes incident to a high latitude, as well as to the diffii:ulties of approach from sea. 5. If the above views arc correct, the question of site for the terminus is narrowed to a choice between Burrard Ink-t and a port in Vancouver Isiai '1. 6. Burrard Inlet does not apjjcar suitable for an ocean terminus on account of diffi- culties of navigation to seaward. The tortuous channel from Burrard Inlet to sea tlirough Haro Strait will frequently be unsafe on account of the strength of the tide, 44 Vic. Railway Papeus. 271 great prevalence of fog and absence of anchoring depth. Burrard Inlet itself also, although possessing a safe port in Coal Harbour, and a good anchorage in English Bay, has these objections, viz.: that the narrow entrance to Coal Harbour through the First Narrows is hardly safe for large steamers in consequence of the rapidity of the tide; and that English Bay, although affording good anchorage, would not, in my opinion, be smooth enough during north-westerly gales for ships to lie at wharves, there being a drift of forty miles to the north-west. 7. Another grave objection to Burrard Inlet as the final terminus, is the possession of San Juan and Stuart Islands by a foreign power. These Islands form the key of the navigation inside Vancouver Island. In case of war with the United States that power might readily stop our trade through Haro Strait. (San Juan was visited last month by General Sherman. I believe with a view to its fortification.) 8. Condemning Burrard Inlet for the above reasons, I conclude that the terminus should be in A^ancouver Island, which may be reached in three ways: — Ist. By steam ferry carrying a train from Burrard Inlet to Z^Janaimo. 2t)d. By bridging Seymour Narrows. 3rd. By steam ferry, carrying a train from Estero Basin (Frederick Arm) to Otter Cove. 9. The train once landed on Vancouver Island, can, I understand, be carried without much difficulty either to Esquimalt or to Quatsino Sound, or perhaps to Barclay Sound, where Uchucklesit Harbour forms an admirable porL. 10. The first method of crossing the Strait, that of a steam ferry from Burrard Inlet to Nunaimo, has three objections, — 1st The drawbacks above mentioned to navi- gating the First Narrows, and lo going alongside a wharl in English Bay ; 2nd. The difficulty and certain frequent detention in mid-channel, owing to fog; 3rd. The heavy sea with north-westerly and south-easterly gales, which would be at least inconvenient for the conveyance of a train across the Strait of Georgia. .\nother, and I think a cardinal objection, to the route by the course of the Fraser Biver and Burrard Inlet, is its passing within six or eight miles of United States territory, and its consequent liabilitj" to destruction when most wanted in time of war. 11. The second method, that of a line of railway across Valdes Island, without water conveyance, would require very expensive bridging. Vnldcs is not one island as shown on the Admiralty Chart, but con.«ists ot*threo or tour Islands. The main difficulty, of course, exists in bridging Seymour Narrows, a distance of 2,575 feet, in two spans of respectively 1,200 and 1,3.00 feet. To execute this work the middle pier has to be erected on a rock, said to be eighteen feet under water at low tide, with a velocity of tide over it from five to eight knots. This would be a work of vast magnitude and expense, even if it be practicable to place a foundation on the rock, which I doubt, as there is hardly any slack tide. Nor must it be lorgotion that bridging Sey- mour Narrows would, as regards large ships, obstruct the only practicable channel between Vancouver Island and the Main. This alone should, in my opinion, preclude its attempt. 12. 'Ihc third method, and the one I recommend, that of ferrying a tram from Estero Basin to Otter Cove, is, in my opinion, not only feasible, but perfectly simple. I have carefully examined this route, and find : — 1st. That Otter Cove is well adapted lor a \u\c dock terminus for the steam ferry. 2nd. That the head of Frederick Arm, at the cnlrauco to Estero Basin, is also woU adapted for a pile dock to-minus. 3rd. That the channel between the two is easy of navigation, being nearly straight, free from dangers, smooth as glass, sheltered from all winds, and having very little tidal stream. . 13. The tide in this, the Nodalcs Channel, is noted on the chart as running from two to three knots, but I think it is much less. I spent five hours in this channel tiuring what should have been the strength of the tide, the day before the full moon, and found the tide scarcely percejitible. The distance for steam ferry between the two ports is thirteen miles of still clear navigation, and 1 consider it may, with proper signals, be salely traversed in a fog. H. In advocating the route hy Frederick Arm, it will be observed that lam assum- ing that the radway can be brought to that point. This assumption is boruo out by Mr. Fleming's report of 1877, in which ho states it ITS Railway Papers. 1880 to be "Rloasibloschomo/' bul one oxactino- :i heavy oxpondituro, which expenditure wouKl I siipposo, be in part co.nponsate.l by the route No. G, from \el owilead Pass to the houd otliiito Inlet, boiiig estimated at two million dollars less than that by the Lower Fraser (No. 2) 10 l^urrard fnlet. ^ ., , . . , «. ^ ., 15 From converfiation with Mr. Marcus Smith (the principal ofticer of the survey, next to the En-nneer-in-CMiief) I am s;iven to understand that the Itocky Mountains can bo crossed at at-omparatively low level, and that the line can be carried through a far less mountainous district by avoidin^^ Yellow llea.l Pass altogether, and selocting a route by Lesser Slave Lake and Pine River Pass, and thence in a more or less direct line to Bute Inlet. Should this prove correct, it will be an additional reason for ending the main line route at Frederick Arm rather than at Burrard Inlet, omitting, as I do, all consideration of taking water conveyance from the head of Bute Inlet on account of its len^nh and tortuous passages, which would bo impracticable in foggy weather *1G Havin"- thus come to the conclusion that the 'line should pass by Frederick Arm and that" the train should be conveyed by steam ferry through Nodales Channel, to Otter Cove, the extension to one of the good ports of Vancouver Island remains to be considered. . , , ,. . xi u * «i 17 In future years, I imagine for the sake of more direct through ocean trafoc, a line will be extended to Quatsino Sound, by bridging Quatsino Narrows, and thence on to a terminus at Winter Harbour. , ,,, ,. .n -^,, 18 But for present wants, it seems that the line should be continued from Otter Cove past Baynes Sound and Nanaimo to Esquimalt, there to make the ocean terminus. This port is easy and safe of approach at all times; its dock (to take the Jargest ships) has been commenced, and there is reason to think that the line coming from the principal collieries and iron districts on Vancouver Island, ought to pay itself in great part by the conveyance of minerals to Esquimalt tor shipment. Not only for trade, but for the supply of coal to Her Majesty's Squadron at Esquimalt, a line of rail from Nanaimo would be advantageous, as the possession of San Juan might enable the United States, in case of war, to cut off our supply from the mines by sea. ^ ^t • -n 19. Assuming, therefore, that a line of rail between Esquimalt and Nanainfio will be constructed, not only for the reasons above detailed, but because its construction ap- pears to have been virtually promised by the Dominion Government in accordance with Lord Carnarvon's suggestion (a large portion of the rails arc actually lying at Esqui- malt), the chief difficulty connected with the Vancouver part of the through line will be overcome, for I understand that the extension of the lino from Nanaimo to Otter Cove presents comparatively few difficulties. _ _ 20. It will be observed that I have omitted consideration of a terminus in Howe Sound. This is because the same objections in respect to difficulties of navigation to sea through Haro Strait, apply to Howe Sound as to Burrard Inlet, and with greater force. The route to Howe Sound is also, I observe, estimated to cost six million dol- lars more than that to Bute Inlet. • u xi, • 21 Finally whilst submitting the foregoing remarks in accordance with their Lordship's instructions to me, of the 23rd August, 1876, I beg to express much diffidence in respect to such as are not strictly within the scope of the Naval Service. Viewing the shortness of my stay in British Columbia waters, this Eeport cannot pretend to deserve much weight; but it has, I submit, one merit, that of coming from an officer who, from his position, must be totally disconnected from all local interests. I have, &c., (Signed) A. DeHorsey, Rear Admiral and Commander4n'Chief. The Secretary to the Admiralty. No. 182. Report of the Executive Council, approved by the Lieutenant-Governor on the 18'h day of 3fareh, 1818. On a memorandum from the Honourable Minister of Finance, dated 16th March, 1878, reporting that it is desirable tbtit it hi represented to the i3ominion Govermuont that definite inlormation relative to the eomnicnecment of Kail way construction in the Province should be communicated immediately to this Government, in order that, before 44 Vic. Railway Papers. 27S the prorogation of the Provincial Legislatui'e, an assurance may be given of the inten- tion of the Dominion Government to carry out in good faith the intimation of Lord Carnarvon that the year vrhich has now p:isscd should terminate the dehiy in beginning actual construction of Railway, and recommending that His Excellency the Lieutentant- Governor be requested to forward, by telegraph, to the Secretary of Slate tor the Dominion, the following despatch : — "Pacific Eailway. Government desire to be definitely informed immediately if construction will be commenced in this Province at an e:irly period of present season." The Committee advise that the recommendation be approved. Certified, (Signed) Wm. Smithe, Minister of Finance and Clerk Executive Council. No. 183. jT^e Secretary of State to the Lieutenant-Governor. Ko. 26. Ottawa. 15th March, 1878. IRcociveil Sth April, 1S7S.] Sir, — I have the honour to acquaint you, for the information of your Government, that a despatch has been received Irom the Pight Honourable the Secretary of Slate for the Colonies, stating that the present position of the Canadian Pacific Eaiiway question is under his consideration. I am, &c., (Signed) P. W. Scott, Secretary of State. No. 184. The Secretary of State to the Lieutenant-Governor. Ottawa, 27th March, 1878. [Itccfivc;, appears in the Daily British Colonist, stating that tenders will be received at the C. P. Railway Office, Victoria, till 4 p. M. on the 8Lh July next, for the removal of 5,266 tons steel rails now lying at Esquimalt, to certain places on Eraser Piver, and rccomniending that his Honour the Lieutenant- Governor be requested to telegraph to the proper authorities at Ottawa, requesting that a contract be not awarded for removal nor the rails removed, and iniorming them that a despatch on the subject to the Dominion Government will follow by mail. 'J'he Committee advise that the recommendation be approved. Certified. (Signed) T. B. Humphreys, Clerk Executive Council. No. 188. [Telegram.] The Lieutenant-Governor to the Secretary of State for Canada. July 3rd, 1878. Local Government request that steel rails at Esquimalt be not moved nor contract awarded for their removal. Despatch on the subject will follow by mail. (Signed) A. N. Eicuards. 44 Vic. Railway Papers. 275 No. 189. Report of the Executive Council, approved by the Lieutenant-Governor on the 13th day of July, 1878. On a Memorandum, dated the 9th day of July, 1878, from the Honourable the Attorney-General, reporting that the Dominion Government have, by current advertise- ments in the local newspapers, invited tenders for the removal ot over 5,000 tons of steel rails from Esquimalt and Nanaimo to Yale and other distant places on the River Fraser. The Committee of Council woiiUl observe that, although no official intimation of the intentions of the Dominion Government with respect to the rails has reached this Government, jet the advertisements so strongly indicate a determination on the part of the Dominion Government to ignore one of their principal Eailwa}' engagements with the Province, that an expression of opinion hy this Government upon the facts before them seems itnperatively necessary. Besides, silence on a matter of such grave importance might hereafter be regarded as acquiescence in the course co?itemplated by the Domin- ion Government, and possibly be injuriously interpreted as a passive surrender by British Columbia of one, at least, of its railway rights. For these reasons the L*rovincial Government sent the following telegram on the ord instant to the Secretary of State at Ottawa: — "Local Government request that the steel rails at Esquimalt be not removed, nor " contract be awarded for their removal. Despatch on the subject will follow by mail." The rails alluded to were landed by the Dominion Government, at Esquimalt and Nanaimo in 1875, ostensibly for the purpose of carr3'ing into ctiect that condition of the Railway Settlement of 1874 which expressly bound the Dominion to establish immediate Railway communication between Esquimalt and Nanaimo — an obligation that still exists and that has not been, even partialU', observed though the necessary surveys of the route have long since been completed. The proposed transport of the rails (if carried out) must be regarded as a deliberate infraction, by the Dominion Government, of the above obligation, as their removal wmII, of necessity, indefinitely postpone the construction of a work which, in 1874, they undertook, after much deliberation, to press to completion "with all practicable " dispatch." The Committee therefore protest against the rails being removed or used except for the purpose for which the}' were manifestly intended, and they would strongly but respectfully urge the Dominion Government to adhere to their Railway engagements with the Province. The Committee also deem it advisable that the Dominion Government should bo respcctlully requested to immeiliatcly inform this Government of their intentions with respect to Railway construction both on the Mainland and Island, in order that the information may be imparted to the House of Assembly early in August next. The Committee advise that, if this Minute be aj^proved, a copy thereol be sent to the Dominion Government with a request that the information asUed for be Ibrwardeil as desired. Certified. (Signed) T. Basil Humphreys, Prorinrial Secretary and Clerk Executive Council. No. 190. The Lieutenant-Governor to the Secretary of State. Govern MKNT House, Victoria. B. C., July Ifith, 1878. Sir,— Referring to my telegram to yoti of tho :5rd iuBlant, requesting that certain steel rails lying at^Esquimalt be not renioved, nor contract awardi-d for their removal, as advertised for in tlu; local newspapers, I.iiavo now the honour to enclose you a copy of a Minute of my Executive Council, giving the vicnvs of my Government on this subject. " -t liave, Ac, . xr t> '' (Signed) A. N. Ricuauds. 276 Railway Papers. 1880 No. 191. Report of the Executive Council, approved by the Lieutenant-Governor on the Srd day of August, 1878. The Commitieo of Council recommend that a Hoscrvation, in accordance with the request of the Dominion Government, as expressed in their despatch of the Blst of May, 187"^, be made of all lands lying within the limits mentioned in the said despatch, save such lands as have been ai)pliecl for under the Gist and G2nd Sections of the Laud Act of 1873. and lands that have been alienated under the provisions of the said Act, or that are held or occupied by settlers on the date hereof. The Committee would remark that the reservation of the land is not required by or in accordance with the Terms of Union, but that they consider it advisable in order to facilitate and. if possible, hasten railway construction on the Mainland. The Committee advise that the recommendation be approved, and that the Domin- ion Government be furnished with a cop}^ hereof, and also be informed that the Eeservation has been made. Certified. (Signed) T. Basil Humphreys, Provincial Secretary and Clerk Executive Council. No. 192. Public Notice. "Whereas by an Order in Council, dated the 23rd day of May, 1878, of the Honour- able the Privy Council of Canada, it has been decided that " Burrard Inlet will, in all probability, be adopted as the Western Terminus of the Canadian Pacific Railway, it is deemed advisable that a strip of land should be reserved, for the conveyance to the Dominion Government, in accordance with the eleventh paragraph of the Terms of Union, along said line of Railway, beginning at English Bay on Burrard Inlet, and following the Eraser Eiver to Lytton; thence by the valley of the Eiver Thompson to Kamloops; thence up the valley of the North Thompson, passing near the Lakes Albreda and Cranberry, to Tete Jaune Cache; thence up the Valley of the Fraser Eiver to the summit of Yellow Head or boundary between British Columbia and the North-West Territories." And whereas it has been deemed advisable that the land within the limits, and in the direction aforesaid, should be reserved prior to a conveyance being made thereof. Public Notice is, therefore, hereby given, that from and after this date the land above- mentioned is reserved accordingly for Eailway purposes. By Command. T. B. Humphreys, Provincial Secretary's Office, 3rd August, 1878. Provincial Secretary, No. 193. The Secretary of State to the Lieutenant-Governor. Ottawa, 5th August, 1878. Received 20th August, 1878. Sir,— Adverting to your telegram of the 3rd ultimo, and to your despatch, No. 71, of the 16th ultimo, and its accompanying copy of a Minute of your Executive Council, requesting that certain steel rails, now lying at Esquimalt and Nanaimo, may not be removed, I have the honour to acquaint you, for the information of your Government, that the rails in question are being removed to the neighbourhood of Yale, where it is the intention of the Government to commence the construction of the Canada Pacific Eailway. under the Act of 1874. I may remark that it will be seen by the advertisement, that this Government advertised for tenders for the removal of these rails with the above object in view. I have, &;c , (Signed) E. W. Scott, Secretary of State. 44 Vio. Railway Papers. JTT Ko. 194. The Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 9th September, 1878. Sir, — Referring to my letter of the 31st May last, enclosing a copy of a letter from the Secretary of the Department ot Public WorUs, in which your Government was requested to reserve for conveyance to the Dominion Government, in accordance with the 1 1th paragraph of the Terms of the Union, lands in certain localities therein set forth, for the purposes of the Canadian Pacific Railway, I have the honour to transmit to you herewith, a copy of an Order of his Excellency the Governor-General in Council in further relation to the subject. I have to request that this Order in Council may be brought under the early notico of your Government, with particular reference to the concluding portion thereof. I have, &c., (Signed) R. W. Scott, Secretary of State. No. 195. Beport of the Privy Conticil, approved by the Governor-General on the 3rd September, 1878. On a Report, dated 31st August, 1878, from the Honourable the Minister of Public "Works, stating that by the eleventh clause of the agreement under the Terms of which the Province of British Columbia entered the Dominion of Canada, the Government of British Columbia engaged to convey to the Dominion Government in trust, to be appro- priated in such manner as the Dominion Government might deem advisable, in furtherance of the construction of the Canadian Pacific Railwa}', an extent of public lands along the line of Railway thioughout its entire length in British Columbia, (not, however, exceeding twenty (20) miles on each side of the said line), equal to the area which might be appropriated tor the same purpose by the Dominion Government from the public lands of the North-Wcst Territories and the Province of Manitoba, the conditions of the agreement further providing that the quantity of land held under pre- emption right or by Crown Grant, within the limits of the tract of land in British Columbia to be so conveyed to the Dominion Government, should be made good to the Dominion from contiguous public lands. That by several Orders in Council in that behalf, the necessary public lands in the North-West Territories and Province of Manitoba, along the line ot the said Railway have been withdrawn trom sale and settlement, pending the appro|)riation thereof for the purposes of the said Railway, and the route ot the lino of Raihvay through Manitoba, the Xorth-West Territories, and British Columbia, having been now defined by Orders in Council, it is advisuble that the necessary approjjriation should be niade and that the Government of British Columbia should be called u|)on to convey to the Dominion Government such extent of public lands in Britirih Columbia us has been above si)ecified. The Minister therefore recommends that all public lands in the Province of Manitoba, and in the North-West Territories, within twenty miles on each side of the said lino of Railway be set apart lor the purposes o( the Canadian Pacific Railway, and be appro- priated in'such manner as the Dominion Government may deem atlvisable in furthoranco of the construction of the snid RailwMV. , . , The Minister further recommends that the Secretary of Stnto bo authorized, on behalf of this (iovenimetit. to inform tin; (Jovernment ot iiritish Columbia as to the route of the line of Railway, notifying them that all public lands in the Province of Manitoba and in the North-West Territories, within twenty miles on each side of the line have been set apart as above-mentioned; and to request that (iovernmcnt, m accordance with their agreement in that behalf, to convey to the Dominion Government in trust to be appropriated in such maimer as the Dominion (Jovernment may decni advisable in furtherance of the constiueiion of the said liailway, a similar extent of public lands along th« lino of Railway, throughout its entire length in British Columbia, ff% Railway Papers. 1880 and to mnkc ijood to the dominion, from cotitij2;uou8 public lands, the quantity of land (if anv) whif'h may I'o lield under iiro-ompiion rioht or by €rown grant within tho limits'oi" the tract ol" haul in J^-itisli Columbia to bo bo conveyed to tho Dominion Government. The Committee submit the lorcgoing: recommendations for Your Excellency's approval. Certified. (Signed) W. A. IIimsworth, Clo'li, Privy Council. No. 19G. The Secretary of State Jor Canada to the Zieutenant-Governor. Ottawa, 2Hrd September, 1878. SiR.—Advorting to my letter of the 9th instant, and its accompanying copy of an Order of His Excellency the Governor-General in Council of the Hrd instant, on the subject of ihu land in the Province of British Columbia to bo reserved for the purposes ot the Canadian Pacific llailway, I have the honour to transmit to you herewith, for the information of your Government, a copy of a letter from the Secretary of the Depart- ment of Public Works, together with plan therein referred to, showing the line of the said Railway through that Province as now defined. I have to request that a conveyance may be obtained from your Government to that of the Dominion, in trust, of the extent of public lands mentioned in the Order in Council of the ord instant. I have, &c., (Signed) E. W. Scott. No. 197. Mr. Braun to the Secretary of State for Canada. Ottawa, September 20th, 1878. Sir, — I have the honour to transmit two copies of the plan showing the line of the Canadian Pacific Eailway through British Columbia, as now defined, together with a copy of the Order in Council of the 3rd instant (cop}' sent with letter of 9th September) setting apart a certain area of land on either side of the line throughout the Province for the purposes of the Eailway; and I am directed to request you to obtain from tho Government of British Columbia a conveyance to the Dominion Government, in trust, of the extent of public lands mentioned in the said Order in Council. I have, &c., (Signed) F. Braun, Secretary. No. 198. Extract from the Journals of the Legislative Assembly, 29th August, 1878. The Honourable Mr. Wa/kem moved, seconded by the Honourable Mr. Beaven, — That in the opinion of this House an humble Address, to the following or to the like effect, respecting the violation by Canada of her Eailway engagements with this Province, be presented to Her Majesty : — To the Queen's Most Excellent Majesty. Most Gracious Sovereign : — We, Your Majesty's most dutiful ard loyal subjects, the Members of the Legislative Assembly of the Province of British Columbia, in the First Session of the Third Parliament assembled, humbly approach Your Majesty for the purpose of representing — 1. That, on the 31st day of July, 1874, the Government of this Province humbly presented a Petition to Your Majchiy, alleging (amongst other matters) that the main inducement which led British Columbia lo enter the Dominion of Canada, on the 20th day of July, 1^71, was the Agreement by the latter to commence in two and complete 44 Vic. Railway Papers. 279 in ten years from that date the construction of the Canadian Pacific Railway; and that this Ao-veement has been violated by Canada. The Petitioners, therefore, prayed that Your Majcst\- would, under the circumstanees set forth in the Petition, be <;raciousIy ])leased to cause justice to be done to British Columbia. To this Petition your present Petitioners (the Legislative Assembly) bpg leave to refer Your Majesty. 2. Tliat after protracted negotiations on the subject between Your Majesty's Right Honourable Secretary of Slate tor the Colonies (the Earl of Carnarvon) and the Dominion Government, his Lord.^iip was pleased to signify his conclusions upon the question in dispute, in the following language, addressed to His Excellency the Governor-General of the Dominion of Canada : — " (1.) That the Railway from Esqulmalt to Nanairao shall be commenced as soon as " possible, and completed with all practicable dispatch. " That the survej's on the Mainland shall be pushed on with the utmost vigour. " It would be distasteful to me, if, indeed, it were not impossible, to prescribe strictly " any minimum of time or expenditure with regard to work of so uncertain a nature; " but, happily, it is equally' impossible for me to doubt that your Government will loyally " do its best in every way to accelerate the completion of a duty left frcel}- to its sense " of honour and justice. " (3.) That the waggon road and telegraph line shall be immediately constructed, " There seems here to be some difference of opinion as to the special value to the " Province of the undertaking to complete these two works; but after considering what '• has been said, I am of opinion that they should both be proceeded with at once, as, '• indeed, is suggested by your Ministers. " (4.) That 2,000,000 dollars a year, and not 1,500,000 dollars, shall be the minimum " expenditure on railwa}' works within the Province from the date at Avhich the surveys " are suflSciently completed to enable that amount to be expended on construction. In " naming this amount, I understand that, it being alike the interest and the wish of the " Dominion Government to ui-ge on with all speed the completion of the works now to " be undertaken, the annual expenditure will be as much in excess of the minimum of " 2,000,000 dollars as in any year may be found practicable. "(5.) Lastly, that on or before the vilst December, 1890, the railway shall be com- " pleted anil 0))en for ti-affic from the Pacific seaboard to a j)oint at the western end of " Lake Superior, at whirh it will fall into connection with the existing lines of railway " through a portion of the United States, and also with the navigation on Canadian " waters. To ])roceed, at })resent, with the remainder of the railway extending, by tho " countr}- northward of Lake Superior, to the existing Canadian lines, ought not, in my '• opinion, to be required, and the time for undertaking that work must be determined " by the development of settlement and the changing circumstances of tho countr3\ " The day is, however, I hope not very distant when a continuous line of railway " through Canadian territory will bo practicable, and I therefore look upon this i)ortion " of the scheme as postponed rather tlian abandoned." [^Vidc despatch. Lord Carnarvon to Lord Dufferin, 17th JS^ovember, 1874.] 3. That the Dominion Government, one month later, assented to these pro]iosal8, and Stated, in effect, that they would be carried out, as they uphold in the main their own ])olicy on the question, and violated neither the letter nor the spirit of an}' ]iarlia- mentary provision. The Settlement thus effected was intended and supjiosed to be final and conclusive. [ Vi'le despatch, Lui'd Uulleriii to Lord (/'ariiarvon, KSlh Decentber, 1874.] 4. That, owing to the almost total disregard of the ahove Settlement by tho Domini* n, and the consequent serious and recurring loss inflicted upon the Province, the Legislative Assenii)ly, early in the Session of I87f>, unanimously passed an humblo Address to Your Majesty, setting lortli the several L'J'ounds upon which their complaint was based, and praying that Your Majesty would bo gi-aciously pleased to cause the JJominion (lovcrnment to bo moved to cai'ry out the terms above mentioned. To this Address, Your I'etitioners humbly beg leave to refer Yo\ir Majesty. 5. That, in iJecember of the same year, Your .Majesty's Secretary of State for the (-olonies (Lord Carnarvon) was j)leasod to inform the Province that it might fairly bo ex])ected that, between the S))rinir of 1877 and that of 1878, many doublliil jxHiits con- nected with the route of tho Railway would be more clearly defined ; and his Lordship 280 Railway Papers. 1880 To repeat the languago of the Minute of the Provincial Government, approved of 20th March, ISTirYour Petitioners exceedinoly regret to state " that the succes- fujt'.or intimated tliat. as it was his belief that " after the delay of a single summer * * "British Columbia" would ex))erience no "cbt^tacle to the active prosecution of tho " undertaking," the Province should not refuse to submit to tho work of construction being deferred for that period. [ F/Wc des))atch, Lord Carnarvon to Lord Dufferin, 18th December, 1876.] C. That the Provincial Government, on the 2(;th March, 1877, without prejudice to any of tlio rights of tho Province, conceded the delay mentioned, in deference to his Lord.'^hip's wishes 7. That, although the time so conceded expired some months ago, the Dominion Government have not carried out their agreement, nor have ihej' fulfilled any of the conditions of the Settlement of 1874 with respect to the active prosecution of railway construction in the Province. 8. on the . . , " sion of failures on the part of the Dominion Government to fulfil the several railway " agreements solemnly entered into with this Province, has produced a feeling of dis- " appointment and distrust so widespread and intense as to severely and injuriously '• ati'oct the commercial and industrial interests" of tho Province, "and seriously retard " its general prosperity." 9. Under these circumstances, and with a view to prevent, if possible, the repetition in the future of the disasters of the past. Your Petitioners, with great regret, feel com- pelled, in defence of the interests of the people of the Province at large, to resort to the unavoidable alternative forced upon them by the conduct of the Dominion Government in this matter, and to therefore humbly pray that, in the event of the Dominion Gov- ernment failing to carry into effect the terms of the Settlement of 1874, on or before the 1st day of May next. Your Majest}^ will be graciously pleased to see fit to order and direct — That British Columbia shall thereafter have the right to exclusively collect and retain her Customs and Excise duties and to withdraw from the Union; and shall also, in anj' event, be entitled to be compensated by the Dominion for losses sustained by reason of past delays and the failure of the Dominion Government to carry out their railway and other obligations to the Province. And Your Petitioners, as in duty bound, will ever pray, &c., &c., &c. FEED'CK. WILLIAMS, Speaker of the Legislative Assembly. Victoria, British Columbia, Sepember, 1878. [The Pesolutiou was carried on division, 14 to 9, on the 30th August, 1878.] No. 199. lieport of the Executive Covnr.il approved by the Lieutenant-Governor on the 2ith Sept., 1878. The Committee of Council recommend that the Petition of the House of Assembly to Her Majesty the Queen, respecting the violation by the Dominion of her Railway engagements with this Piovince, be forwarded to the J\ight Honourable the Secretary of State for the Colonics, through the usual and proper channel; that extra printed copies be also enclosed to the Colonial Office, as well as to the Dumiuion Government. The Committee advise that the recommendation be approved. Certified, (Signed) T. B. Humphreys, Provincial Secretary and Clerk Executive Council. 44 Vio. Railway Papers. 281 200. The Lieutenant-Governor to the Secretary of State for Canada. Government House, Victoria, B.C., 26th September, 1878. Sir, — I have the honour to enclose you, herewith, a Petition from the Legislative Assembly of this Province [see No. 198, p. 278), adopted at the last Session thereof, to Her Majesty the Queen, praying, in a certain event, that the Province may be allowed to collect the Customs and Excise duties, and withdraw from the laiiou with the Dominion ; also twenty-four printed copies of the Petition. I have further the honour to request that the original Petition, with a number of the printed copies, be forwarded, through the proper channel, to the liight Honourable the Secretarj- of State for the Colonics,"and that the remaining copies be retained by you for the consideration of the Dominion Government. I have, i^c, • (Signed) A. N. Eiciiards. No. 201. The Lieutenant-Governor to the Secretary of State for Canada. Government House, Victoria, November 9th, 1878. Sir,— I have the honour to enclose to you, herewith, a copy of a Minute of my 3Utive Council, dated 5th instant, calling the attention of the Dominion Government to despatches of the 31st May, 9l1i und 2;:!rd September, 1878, respectively, having reference to the reservation and conveyance, fur the purpose of tiie Canadian Pacitic Kailwa}', of land on the Mainland of British Columbia, and requesting that the present Dominion Government will be good enough to communicate their views on said despatches to the present Government ot this Province as soon as possible. I have, iVc, (Signed) A. N. Richards. Exec No. 202. Jteport of the Executive Council, approved by the Li cuienant- Governor on the !Sth day of November, 1878. The Committee of Council consider it advisable to respect fully invito the attention of the Dominion Government to their ja-cdecessor's dcspatcheH of the IMst .May, 9th of September, and 2:-.rd of Sij.tember, 187^ resi.eclively referring t(. the reservation and conveyance, lor the purposes of the Car.adian I'aciHe Hallway, ol land on the Mainland of British Columbia, and to request the present Dominion (iovernmentto be good enou.i^h to communicate their views on said despatches to this (iovenunenC as soon us possible. The Committee would observe that the land mentioned has been lully reserved for railway purposes, and that every facility should and will be given to the Dominion Government to enable them to commence railway construction m the 1 rovmco at tho earliest practicable moment. , , ., , .i /» i The Committee advise that this Minute be apju-oved, and that a copy thereof bo forwarded to tho Dominion Government. ( crtilied. (Signed) T. 15. Ih mi-iiueys, Provincial Secretary and Clerk Executive Ojuncil. 20 282 Railway Papers. 1880 No. 203. Report of the Executive Council, approved by the Lieutenant-Governor on the IGth day of January, 1879. Tho Committeo of Council recommend that his Honour the Lioutonant-Governor be respectfully requested to forward tho following telegrams, which explain themselves, to tho ilouourablo tho Secretary ot Slate: — "Victoria, January 15th, 1879. " To the Secretary of State, Ottawa: "Expected reply to my despatch of 9th November not having been received, please " acquaint Ciovernmont by telegram Avith your railway policy, as Legislature meets '• Twenty-ninth Januar}'. Ministry', anticipating a reply, have delcrrod troubling your '* (lovornment until latest moment. Also please forward accompanying telegram to " Imperial Government, if their reply to Province not received." British Columbia, January 15th, 1879, " To the Secretary of State, Colonies, JJondon: " No reply to Petition of Legislative Assembly, which meets twenty-ninth. Has it " been forwarded ? " The Committee recommend that copies of this Minute be sent to the Imperial and Dominion Governments. Certified. (Signed) T. B. Humphreys, Provincial Secretary and Clerk Executive Council, No. 204. Government House Victoria, January 16th, 1879. The above Telegrams were sent this day at 3.80 p. m. (Signed) A. N. Richards. No. 205. Telegram. Ottawa, Ontario, January 24tb, 1879. To the Hon. Geo, A. Walkem, Attorney-General: Eailway matters are now under consideration, and your representations and claims will receive our best attention. (Signed) John A. Macdonald. No. 20G. Extract from the Journals of the Legislative Assembly of British Columbia. Wednesday, 19th March, 1879. Mr. Speaker stated he had received an answer to his Telegram to tho Dominion Government referring to the Eailway Petition; which was read, and Ordered to be placed on the Journals of the House, and is as follows; — 44 Vic. Railway Papers. 283 " Ottawa, Ontario, March 19th, 1879. [Received at Victoria Mareli 19th, 1S79.] " To the Speaker of the Legislative Assembly: " The Petition of Legislative Assembly of British Columbia to the Queen, passed " last Session, was received here on eleventh of October last. At that time Ministry " had resigned, and onl}' held office till successors appointed. The attention of the '* present Ministry on taking office was not called to this Petition, and it remained " unnoticed. On its being discovered it was transmitted to England. This will account " for the Petition not being answered by Colonial Minister, The Government here " greatly regret the oversight. (Signed) " J. C. Aikins." No. 207. Beport of the Executive Council, approved by the Lieutenant-Governor on the 227id March, 1879. The Committee of Council advise that his Honour the Lieutenant-Governor be respectfully requested to cause the following telegram to be forwarded to the Dominion Government: — " Victoria, March 22, 1879. " Son. Secretary of State, Ottawa: " When was Petition to Queen forwarded to London ? Be good enough to answer " Speaker's messages about Eailway despatch of June, seventy-six." Certified. (Signed) T. B. Humphreys, Clerk Executive Council. No. 208. Telegram. To the Lieutenant-Governor of British Columbia: Ottawa, Ont., :March 24th, 1879. [Vrtoria, March 20th, 1.30 p. m.] Petition to the Queen forwarded to London tAventy-fourth (24th) February. Speaker's message about railway despatch of June, seventy-six, answered by telegraph twenty-second inst. (Signed) J. C. Aikins. •No. 209. Report of the Executive Council, approved by the Lieutenant-Governor on the nth April, lh79. The Committee of Council beg leave to recommend that the following telegram bo forwarded to the JJomiuiou Goveinment : — *' Victoria. 1 Ith April, 1879. " The Hon. the Secretary of State, Oftaua: " Assembly adjourned awaiting information as to your Kailway policy. Please " reply immediately." ^ ^ Certified. (Signed) T. B. lIuMriinEYs, tlcrk Executive Council 284 Railway Papers. 1880 No. 210. Extract from Joicrnals, Legislative Assembly, Biitish Columbia. 16th April, 1879. Mr. Speaker stated that ho had rocoivod two despatches from the Secretary of State lor Cauuda, which were read, and are as follows : — "Ottawa, 2l8t March, 1879. «SiR, — Adverting to yoxir telegram of the — instant, addressed to the Eight Honour- ahlo Sir John A. Macdonald, and to ni}' message in reply thereto, of the 19th instant, I have the honour to inform you that the Petition of the Legislative Assembly of British rdumbia to the Queen, to which you refer, passed during the last Session of tho Provincial Legislature, was received here on the 11th October last. "At that time the Ministry had resigned, and only hold office until the appointment of their successors, and the attention of the present Ministry not having been called to tho Petition, it remained unnoticed. Upon its being discovered, however, it was at once transmitted to the Right Honourable the Secretary of State for the Colonies. "This will account for the Petition not having been answered by the Colonial Secretary. "I may add, that this Government greatly regret the oversight. " I have, &c., (Signed) " J. C. Aikins, " The Hon. the Speaker of the Legislative Assembly, " Secretary of State. " Victoria, British Columbia." « Ottawa, 24th March, 1879. "Sir, — With reference to your telegrams of the 19th ultimo and the 18th instant, and to my replies thereto of the 6th and 22nd instant, on the subject of the line of the Canadian Pacific Eailway, I have the honour to inform you that, as regards the Order of His Excellency the Governor-General in Council of the 9th June, 1876, a copy of which was enclosed in the letter from this Department of the 13th of that month, — that Order in Council was superseded by a subsequent Order, in so far as the route to be followed is concerned, defining that route from Tote Jaune Cache to Eurrard Inlet. "I have to add, that by an Order in Council of the 3rd September last, a copy of which was enclosed to the Lieutenant-Governor on the Dth of that month, the British Columbia Government was requested to convey to the Dominion Government certain lands along the line of railwa}^, as shown on a plan, which plan was enclosed to the Lieutenant-Governor on tho 2ord of the same month. " I have, &c., (Signed) "J. C. Aikins, " To the Speaker, Legislative Assembly, " Secretary of State. " Victoria, British Columbia." No. 211. Extract from Journals, Legislative Assembly, British Columbia. Monday, 28th April, 1879. Mr. Speaker stated that, on Thursday, the 24th instant, he dispatched the following Telegrams: " Victoria, 24th April, 1879. " To Sir John A Macdonald, Ottawa. " House regret delay of your Eailway Policy, and unanimously request to be in- formed of policy immediately, and whether construction and vigorous prosecution will take place in Province this year. (Signed) " Speaker," 44 Vio. Railway Papers. 285 " From Speaker to Secretary of State, Ottawa. " Please forward the following Telegram to Colonial Office:"— " British Columbia. "Hon. Secretary of State, Colonies, London. " 2-ith April, 1879. " !N"o action yet taken on Pailway by Dominion Government. This Legislature in Session awaiting answer to Petition, unanimously and respectlully request immediate reply to its prayer. (Signed) " Speaker." And had received from the Secretary of State for Canada, the following reply: — " Ottawa, April 2Gt,h, 1S79. " To Mr. Speaker Williams, Legislative Assembly. " Canadian Government is determined to commence work of construction in British Columbia this season, and to press it vigorously. (Signed) " J. C. Aikins, " Secretary of State." The Honourable Mr. Walkem presented, by command of His Honour the Lieutenant- Governor, a copy of a Despatch from the Kight Honourable Sir M. E. Hicks Beach, respecting the Pailway Petition forwarded last Session by this House. No. 212. The Under Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 4th April, 1879. Sir, — I have the honour to transmit to you herewith, for the information of your Government, a copy of a despatcli from the Eiglit IIor)Ourablc the Secretary of State for the Colonies, in reference to the Canadian Pacific Paihvay and other outstanding matters relating to British Columbia. I have, &c., (Signed) Edouahd J. Lanqevtn, Under Secretary of State. No. 21.3. Sir Michael Hicks Beach to the Marquis of Lome. Downing Strf:kt, 26th February, 1879. My Lord, — I have the honour to acknowledge the receipt of your despatch, No. 22, of the 4th instant, transmitting, with other papers, a Minute nl tlie Kxeeiitivc Council of British Columbia, embodying a telegram addressed to the Secretary of State for Canada, and making an enquiry of myself as t<; whetlier any reply has been forwarded to a petition of the Legislative Assembly of the Province relating to the Canadian Pacific Eailway. 2. The date of the petition is not given in the Minute of Council, and I shall be obliged if you will give by telegraph sucli information as may enable me to ascertain, without doubt, the document referred to. 3. If the enquiry relates to the pt^ition dated in February. 1S7('.. which was for- warded to my predccesiior direct liy the Lieutenant-Governor of the I'rovinee, and subsequently formed the subject of the Governor-General's despatch, No. 7.'), of the 17th March, 187resenl moment in giving a definite reply to the Assembly, as your despatch does not contain any allusion to the action whieh your present Ministers may jiruposc to take on the subjeet of the Canadian Paeilic Railway, or in regard to the tJCttlemcDt of tbo outatundiug qucbtious with British Columbia, 286 Railway Papbrs. 1880 4 I should bo i^'hul, thercforo, to recolvo, as 80on aa ponvonicnt, somo explanation fts to the course whicli vouv Governmont may propose to adopt with reference to the roproscntations made from time to lime by the Provincial Govornnient and Legislature in relation to this matter. . ,. , . , , ., t- i. * 5. You will bo so !:;ood as to communicate a copy ol tins despatch to the lueutenanl- Governor of British Columbia. I have, ivc, (Signed) M. E. IIicks Beach. rosTscuivT 27th February, 1879.— Since the above was written I have received a teloirram trom the Speaker of \he Assembly of British Columbia, asking whether the petition of the Assemblv sent in September last had reached my hands, and requesting a replv thereto. As this petition has not been received at the Colonial Office, I tele- crraphed to you this day requesting you to forward it to me and to inform the Speaker. No. 214. Revort of the Executive Council, approved by the Lieut ena7it- Governor in Council on the Uth ^ May, 1879. The Committee of Council advise that the despatch of the 24th of April, 1879, recently received from th'e Honourable the Secretary of State, relating to the adoption of Esquimalt as the Western terminus of the Canadian Pacific Kailway, be published for the information of the public. Certified. (Signed) T. B. Humphreys, Clerk Executive Council. No. 215. The Secretary of State to Lieutenant- G-ovenior. Ottawa, 24th April, 1879. Sir.— I have the honour to transmit to you herewith for the information of your Government a copy of an Order of His Excellency the Governor-I^eneral in Council on the subject of the terminus of the Canadian Pacific Eailway in the Province of British Columbia. I have, &c., (Signed) J. C. Aikins, Secretary of State. No. 216. Beport of the Privy Council, approved by the Governor-General on the 22nd April, 1879. On a memorandum dated 16th April, 1879, from the Hon. the Minister of Public Works, representing that on a memorandum from the Chief Engineer of the Canadian Pacific Railway, dated 23rd May, 1873, an Order in Council was passed June 7th, 1873, fixing Esquimalt on Vancouver Island as the terminus of that railway in British Columbia. That subsequently— March 25th, 1875— an Order in Council was passed authorizing the Dominion Government to notify the Government of British Columbia that it would be necessary that the Legislature of that Province, then in session, should pass an Act setting apart such extent of public lands along the line of the J^ailway in Vancouver Island in the manner set forth by the llth ])aragraph of the terras of agree- ment of the Union. That on the 23rd May, 1878, the late Government had another Order in Council passed cancelling that ot June, 7th, 1873, which fixed the terminus at Esquimalt; but no reason appears to have been given for their action in the matter, nor is there any mention made of the Order in Council of March, 25th, 1875, which provides for the appropriation of the necessary lands in Vancouver Island. 44 Vic. Railway Papers. 287 The Minister, therefore, recommends that in the absence of satisfactory reasons having been given for cancelling the Order in Council of June 7th, 1873, that the Order in Council (of May 23rd, 187!<,j cancelling it be annulled, and that of June 7th, 1873, be revived. He also recommends that a copy of his report to Council, if approved, be furnished to the Hon. Secretary of State for transmission to the Government of British Columbia for their information. The Committee submit the above recommendations for Your Excellency's approval. Certified. (Signed) W. A. Himsworth, Clerk Privy Council, Canada. No. 217. Report of the Executive Council, approved by the Lieutenant-Goevmor on the \Uh May, 1879. The Committee of Council have had under consideration Despatch No. 29, of the 24th of April, 1879, from the Hon. the Secretary ot State, informing this Government that the Privy Council had, by Minute of the 22nd of April, 1879, cancelled their Order of the 23rd of May, 1878, and revived their Order of the 7tli June, lb7o, which fixed the Western terminus of the Canadian Pacific Pailway at Esquimalt, and they advise that the Dominion Government be at once requested to inform the Provincial Govern- ment whether the following reserve made lor railway purposes at the instance of the Dominion Government, under the said Order of May, IM!^, shall be cancelled or retained, as it is highly undesirable that the land should longer be witlulrawn from settlement, if not to be used, that is to say: — A tract of land, beginning at English 15ay, on Burrard Inlet, and following Eraser Piver to Lytion; thence by the Tlionipson Piver Valley to Kamloops; thence up the Valley of the North Thompson, passing near Lakes Albreda and Cranberry to Tete Jaune Cache; thence up the Fraser Piver Valley to the summit of Tellowhead Pass, or the boundary between British Columbia and the North- West Territories. The Committee further advise that a copy of this Minute be forwarded to the Dominion Covernment. Certified. (Signed) T. Basil Humphreys, Clerk, Executive Council. No. 218. The Secretary of State for Canada to Lieutenant-Governor. Ottawa, 18th Juno, 1879. SiR,_With reference to your Despatch, No. 42 of the 19th ultimo, and its accom- panying Minute of your Executive Council, I have the honour to transmit to you here- with, for the infoni'iation of your Covernment, a copy of an Order o( His E.xeelleiicy the Governor-Cenerul in Council, illative to the nsiivalion of certain land on the main- land of British Columbia, for the purpose of the Canadian J'acilie liailway. 1 have, iVc, (Signed) J. C. Aikins, Secretary of State. No. 219. Heport of the Privy Council approved In/ the (fovernor-ffencral on the 12th June, 1879. On a memorandum d.ilcfl lOth Juno. 1^79, from the Honourable the Minister of Pail ways and Canals, stating that he li!;s had under coiiHiibralion !i cnniniuincalion, dated 11 th May, 1^79, froiii the Lieutenant (Jovenior of Hrilisli Columbia, enclosing a Minute of His Executive Council, of the Mlh May, 1879, in rvfeicnce to tbc rcHervation of laud on the Mainland of Briti-sh Columliia, between Burrard Inlet and Yellow Head Pass. 288 Railway Papers. 1880 The Minister rocommomls that llio Govorinncnt of British (^himbia bo informed that the object of the Order in Conneil of the 22iul April, 1870, was simply to rescind the Order in Council of the 2.-?rd Alny, 1878, so as to leave the (Jeneral Government free to adopt which ever route might appear in the public interest the most eligible. That it is not proposed to release the reservation of land on cither route, and it is felt that this will result in no serious inconvenience for the short period which will now clapso betore the location of the J\'ailway will be iinally estal)li8lie(l. The Committee submit the above recommendation for Your Excellency's approval. Certified. (Signed) W. A. IIimswortii, Clerk Privy Council. No. 220. Telegram. Victoria, B.C., October 2nd, 1879. Sir John A. Macdonald, Otta ica : Delay in commencing Kailway construction causes great dissatisfaction. We strongly urge you not to overlook j'our assurances to our Legislature, prior to its pro- rogation last Spring. (Signed) Geo. A. Walkem. No. 221. Telegram. Ottawa, Oct. 6th, 1879. Son. Ct. a. Walkem, Victoria. One hundred and twenty-seven (127) miles from Yale to Kamloops to be construct- ed forthwith. Tenders to be received till seventeenth (17) November. Work to be vigorously prosecuted. (Signed) John A. Macdonald. No. 222. The Under Secretary of State to the Lieutenant-Governor. Ottawa, 11th October, 1879. Sir, — I am directed to transmit to jovl herewith, copy of an Order in Council, dated 4th instant, confirming the Order in Council of the 1.3th July, 1878, defining the line of route of the Canadian Pacific Hail way through British Columbia to a point on or near Burrard Inlet. I have, &c., (Signed) Edouard J. Langevin, Under Secretary of State. No. 223. Report of the Privy Council, rpproved by the Governor-General on the 4th October, 1879. On the recommendation of the Honourable the Minister of Railways and Canals, the Cummittee advi.se that the Order in Couijcil of the 13th July, 1878, definiu;.!- the line of route of the Canadian Pacific Kailway through British Columbia to a point on or near Burrard Inlet, be confirmed. Certified. (Signed) W. A. Himsworth, Clerk Privy Council, Canada. 44 Vio. Railway Papehs. 289 No. 224. Report of the Executive Council approved by the Lieutenant-Governor on the Wth day of October, 1879. The Committee of Council have had under consideration the possibility that the Dominion Government might omit to provide, in the contracts tor Eaiiway construction in this Province, that the Contractors are not to employ Chinese. The Committee consider that it is ot great importance lo the Dominion and the Province that Eaiiway construction should" be carried on in such a manner as to employ and permanently settle in the Province as many families of our own and kindred races as possible. That the Chinese, in the Australias, New Zealand, California, and British Columbia, are an alien, non-assimilating race, whose presence in large numbers is injurious to settlement as their system of Coolie labour defies competition, and seriously discourages immigrants from coming. That there is no necessity to employ Chinese labour on Railway construction in this Province, and that the employment of sucli labour on works of magnitude simply means a large importation and employment of slave labour, the profits from which wil only enrich Chinese companies resident in a foreign country. The Committee remark that the Legislative Assembly, by Resolution, have pro- hibited the employment of Chinese upon Provincial Public Works, and that, in accord- ance therewith, the Specifications for the Graving Dock at Esquimalt provide that the Contractor shall not directly or indirectly employ Chinese upon, about, or in connec- tion with the works; and that, in the event of his doing so, the Government will not be responsible for payment of the Contract. The Committee therefore recommend that, if this Minute be approved, the following telegram be forwarded to the Secretary of State, Canada : — "Victoria, B. C, 11th October, 1879. " To the Secretary of State for Canada : ,•/-,* " This Government respectfully suggest that a condition be inserted in Contracts prohibiting the employment of Chinese on Railway construction in this Province. Will forward Minute of Council by mail." The Committee further advise that a copy of this Minute he forwarded to ttie Government of Canada through the usual channel. Certified, (Signed) T. B.vsiL Humphreys, Clerk Executive Council. No. 225. Telegram. VioTORiA, 28th October 1879. Sir John A. Macdonald, Ottawa: Council consider disallowance Road Tolls Act will increase contract price for Railway construction, as .\ct exempted Railway material and plant irom toll, whereas Tolls Act, 1870, now revived makes no such exemption. Can you remedy thisi' Govern- ment anxious to facilitate construction, ^ » iir (Signed) Geo. A. Walkem. No. 22G. Report of the Executive Council, approved by the Lieutenant-Governor 3Ut October, 1879. On a memorandum from the Ilouourablo tlio Provincial Secretary, dated imh October, 187'J, recommendirg that the- lollowing telegram bo forwarded to tiic lion. Secretary of State, Canada : — ... • . r i , • " Please forward copy Order in Cuuncil VMh .luly, rieventy-eiglit, inferred to in despatch llLh instant, as delining route Pacific Railway, British Columbia. The Committee advise that the recommendatiou be approved. Ccriifiod, (Signed) T. B. Hlmphheyk, Clerk, Executive Council. 290 Railway Papers. 1880 No. 227. The Secretary o^ State to the Lieutenant-Governor. Ottawa, 13th November, 1879. Sir, — In compliance with the request contained in your telesj;rani of the 31st ultimo, I have tiie honour to transmit to you herewith a copy of an Order of llis Excellency the Ciovernor-tieneral in Council, referrctl to in my letter of the 11th ultimo, ou the subject of the route of the Canadian Pacitic liailvvay. I have, etc., (Signed) J. C. Aikins, Secretary of State. No. 228. Report of the Privy Council approved by the Governor-General on the 13th July, 1878. On a memorandum dated 11th July, 1878, from the Honourable the Minister of Public "Works, reporting that ou the Ist June, 1877, an Order in Council was passed in accordance Avith the provisions of the Canadian Pacific Pailway Act of 1874, defining the route of the Eailway between Fort William on the Kaministiquia and Jasper House and Tete Jaune Cache. That the same Order in Council also defined the route from the last named point to the Pacific Ocean, in the event of the Bute Inlet or Dean Inlet routes being ultimately adopted, these being routes through British Columbia, one of which, at, that time, it seemed probable would be adopted. That later information has shown that it would be in the public interest that the route of the railway, from the neighbourhood of the Tete Jaune Cache, should be towards Burrard Inlet. The Minister therefore recommends that the route of the railroad shall be defined generally, as passing from the neighbourhood of the Tete Jaune Cache, by the Albreda, to the North Thompson Eiver, towards Kamloops Lake, to the Fraser Valley at Lytton, and thence descending the valley of the Fraser, by Yale and New Westminster, to Port Moody, or such other point on or near Burrard Inlet as may be found most convenient lor the purpose of harbour accommodation. The Committee submit the above recommendation for Your Excellency's approval. Certified. (Signed) W. A. Himsworth, Clerk Frivy Council No. 229. The Under Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 27th November, 1879, Sir, — I have the honour to transmit to you herewith, for the information of your Government, a copy of a Despatch from the Eight Honourable the Secretary of State for the Colonies on the subject of the line of route of the Canadian Pacific liailway. I request that a copy of this Despatch may be communicated to the Speaker of the Legislative Assembly in accordance with Sir M. E. Hicks-Beach's request. I have, &c., (Signed) Edouard J. Langevin, Under-Secretary of State. No. 230. The Secretary of State for the Colonies to the Cover nor -General. Downing Street, 29th October, 1879. My Lord, — I have the honour to acknowledge the receipt of your Despatch of the 7th inst., No. 276, transmitting an approved report of a Committee of the Privy Council confirming one of the 13th July, 1878, which defines the line of route of the Canada Pacific liailway through British Columbia, to a point on or near Burrard Inlet. 44: Vic. Kailway Papers. 291 I request that you will now infoi'm the Speaker of the Legislative Assembly of British Columbia with reference to the Address to the Queen enclosed in your Despatch No. 44, of the 24th February, that I deemed it inexpedient to tender any advice to Her Majesty on the subject of this Address until I had received full and authoritative explanations of the policy of the Dominion Government. Your Lordship will be good enough further to inform the Speaker that I am glad to learn that the action of the Dominion Parliament, during its recent session, and the course since taken by the Government, havcgencralh' been considered in British Columbia as a sufficient fulfilment of the obligations of the Dominion towards the Province in respect of the Canadian Pacific I^ailway, and that I do not now propose to tender to Her Majesty any specific advice on the subject of the Address bearing his signature. I have, &c., (Signed) M. E. Hicks-Beach. No. 231. Report of a Committee of the Executive Coxincil, approved by the Lieutenant-Governor on the 27th day of December, 1879. The Committee of Council have had under consideration the recent unexpected and additional conditions attached by the Dominion Government to their agreement to pay §250,000 in aid of the construction of the Esquimalt Graving Dock, and they deem it advisable, in order to expedite the letting of the work and to secure its speedy com- pletion, that the leader of the Provincial Government be authorized to proceed imme- diately to Ottawa to confer with and make such arrangements with the Dominion Government as are within the powers of the Provincial Government. They are also of opinion in view of the approaching Sessions of both the Dominion and Local Legislatures, that some satisfactory understanding between the two Govern- ments should be arrived at with respect to railway matters as aliccting the Island, Indian Affairs, the Administration of Justice, Chinese Immigration, the Cariboo Main Trunk Road, the subsidizing of a line of vessels for the encouragement of Trade between the Eastern Provinces and this Province, and also to minor matters of unsettled accounts between the two Governments. The Committee therefore advise that the loader of the Government (.Mr. Walkem) be authorized to proceed to Ottawa immediately and confer with the Dominion Govern- ment upon the matters above mentioned. Cortifiod. (Signed) T. B. nu>n'nREYS, Clcr/i of Executive Council. No. 2:{2. The Secretary of State for Canada to the Lieutenant-Governor. Ottawa, I'th .lanuary, ISSO. Sm, the Cahad •Rcferrin'^'- to previous correspondence upon the Hubject of the lino of route of ...^ v....,„..a Pacific" Railway through British Columbia, I have the iionour to request thatVtep.s may be taken by your (Jovernmcnt, without unnecessary delay, to convey to the Dominion Government the lands for twenty miles on each side of the Railway lino in the said J'rovince, pursuant to the eleventh section of tht^ Terms ol Union between British Columbia and the Dominion, and i. ' ^vith the location of the Railway a.s described in the Order in Clouncil of tl last a copy of which was trans- mittod to you with Mr. Under Secretary lr.uKv^ ,., > ,. iter of the lllh of that month. I have, &c., (Sigued) .1. C. AiKiNs, Secretary of State, Railway Papers. 1880 No. 233. Extract from Journals^ Legislative Assembly, British Columbia. Tuesday, 6th April, 1880. Mr. Speaker stated that he had received during the recess, several despatches, which wore read aud Ordered to bo placed on the Journals of the House: — " Government House, Victoria, " December 17th, 1879. •' Sir, — I am directed by the Lieutenant-Governor to transmit to you herewith, a copy of a Despatch from the Undo-- Secretary of State for Canada, with its enclosure therein referred to, on the subject o< ihe line of route of the Canadian Pacific Eailway. " I have, &c., (Signed) " W. L. Boyle, " Private Secretary. " Hon. F. Williams, " Speaker of the Legislative Assembly." " Ottawa, 26th April, 1879. " Sir, — I am directed to acknowledge the receipt, on the 25th inst., of your telegram of the 24th inst., on the subject of the Petition to the Queen of the Legislative Assembly of the Province of British Columbia relative to the Canadian Pacific Eailway, which you request may be forwarded to the Eight Honourable the Secretary of State for the Colonies. " Your telegram has been duly submitted to His Excellency the Governor-General. " I have, &c., (Signed) " Edouard J. Langevin, Under-Secretary of State. " The Hon. the Speaker of the Legislative Assembly, " Victoria." No. 234. The Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 3rd March, 1880. Sir, — I have the honour to inform you that so far as this Government is aware no action has been taken by the Government of British Columbia towards conveying to the Dominion the lands for railway purposes agreed to be ti'ansfcrred by that Province to Canada under Section 11 of the "Terms and Conditions of Union," in compliance with the request contained in my letter of the 9th ultimo. I have therefore to request that the early attention of your Government may be called to the subject with a view to a compliance with the terms of my letter, above cited, aud to the necessary legislation to that end being obtained during the ensuing session of the Legislative Assembly. I have further to inform you in connection with this subject that the Honourable J. W. Trutch, C.M.G., has been appointed a Confidential Agent of the Dominion in the Province of British (."olumbia, aud is fully authorized to represent the Dominion Government in all communications, verbal or otherwise, with the Government of that Province on the subject of the adjustment and transfer of the land granted tor Eailway purposes set forth in the " Terms and Conditions of L'nion," and that Mr. Trutch is accordingly duly accredited to the Government of British Columbia with that view. I have, &c., (Signed) J. C. Aikins, Secretary of State, 44 Vic. Railway Papers. 29S Ko. 235. Heport of the Executive Council, approved by the Lieutenant-Governor on the 21th day of March, 1880. The Committee of Council advise that the Dominion Government be informed that the legislation necessary to transfer the railway lands on the Mainland alluded to in the despatch of the Hon. the Secretary of State, 'dated the 3rd day of March, 1880, will be undertaken at the ensuing session of the Legislature. Certified. (Signed) T. Basil Humphreys, Clerk Executive Council. No. 236. The Lieutenant-Governor to the Secretary of State for Canada. Yictoria, B.C., 1st April, 1880 Sir, — I have the honour to enclose a copy of a Minute of my Executive Council, date 27th ultimo, by which you will see that the necessary steps will be taken at the ensuing session of the Legislature to convey to the Dominion Government the Railway lands on the Mainland alluded to in your despatch of the 3rd ultimo. I have, &c., (Signed) A. N. Eichards. No. 237. Extract from the Report, by Hon. Mr. Wolkein, of his mission to Ottawa, with respect to Railxcay, Dry Dock, and other matters. Attorney General's Office, Victoria, March 29th, 1880. May it Please Your Honour: I have the honour to report the result of the negotiations which I was deputed to enter into with the Dominion (iovernment, at Ottawa, upon the subjects mentioned in a Minute of Council approved of by Your Honour on the 27th of December last. Leaving Victoria on the last day of December, I reached Ottawa on the evening of the 15lh of January, and on the following day had preliminary business interviews with the Leader of the Government and some of his colleagues. Learning that arrangements with the (lOvernment were pending for transfers to third parties of the contracts which had been awarded for railway work on the Main- land, I considered it prudent to defer negotiations respecting railway work on tin- Island until the transfers had been settled, lest any action on my jiart with respect to the Island Section should unsettle the plans of the (iovernment, and possibly leatl to the postpone- ment, for the season at least, of construction on the Maiidaiid. It also appeared advisable in presenting the IJailway and Dock (^)ue8tions to completely sever them, and leave tho consideration of one to await the settlement of the other. As Your Honour is aware, the earliest possible settlement of dock matters was very desirable, as the tenders which had been received for its construction could not be safely dealt with until the final intentions of the Dominion Governraont respecting the aid to be given by tln-'Ui to tho work should be ascertained. Canadian Pacific Railway. Esquimau- Nanaimo Section. As the construction of this section of tho Railway was one of tho subjocts referred to in tho Order of Your Honour in Council of the 27th December, it was naturally alluded to from tiM)0 to time by members of the Government when conversing with mo on British Columbia matters. I, however, refrained, for tho reasons already assignod, 294 RahWat Papers. 1880 from ontnnglinfl: or cnibarrassinc^ its considornlion with unsettled questions rogardin^j the Mainland J\ail\vay eontraets or the .Poek Siibsid}-. Immediately, however, after these questions had been tlisposed of, 1 arranged and had a meeting with Senator Mac- donaUi anil Messrs. DeCosmos, Hunster and Thompson, for the purpose of deciding upon the best means to secure the construction of the work. After considerable disciissioji, it was unanimously agreed that all pi-esent should, as a deputation, wait upon the Premier and press the claims of the I'rovinco in this respect upon him. I accordingly wrote the following note to him, and received the following reply: — " Ottaava, Feb. 14th, 1880. " The Right Hon. Sir John A. Macdonald: " Sir, — In conjunction with some of the Members from British Columbia, I am " desirous to have a conference with j'ou respecting Eailway matters affecting tho " Province. Will you be good enough to uamo a time and place which will bo couvonicnt " to you for meeting us. " I have, &c., (Signed) " Geo. A. "Walkem." "Ottawa, Feb. 16th, 1880. " The Eon. G. A. Walhm: " Dear Sir, — I shall be vcrj' glad to sec you and tho other gentlemen at my house " to-morrow, Tuesday, at 11 o'clock, a.m. " Yours, very truly, fSigned) " John A. Macdonald." Accordingly, a meeting was held, which lasted some time. While credit was given to the Government for placing 127 miles of the Mainland portion of the line under contract, and active prosecution of the work advocated, the members of the deputation forcibh' represented the loss and injury which would be inflicted on tho Southern portion of the Province by longer delajnng construction of the Esquimalt-Nanaimo section. I feel that I would be doing injustice to the subject, as well as to the members of the deputation, were 1 to attempt a recital at any length of their various arguments against further delay of the work. In supporting their views, all the main points of the official correspondence were referred to. The offer of the Dominion Government in 1^74 to construct the work as a "portion of the Eailway," and their solemn engagement made with England and the Province in January. 1875, to commence it " as soon as jDossible," and complete it "with all practicable dispatch," were specially dwelt upon. English public opinion, as expressed in leading journals, was quoted; figures showing the advan- tages of the line (if constructed) were produced; much stress was laid on the facts that the surveys had been made, that valuable lands on the Island had, as far back as 1875, been ceded by Statute to the Dominion, at its special request, and solely for Canadian Pacific Eailway purposes; that up to the present moment these lands had been retained, and the policy of retaining them in aid of the same Eailway been re-affirmed by tho present Dominion Government. A well-drawn document on the same subject from the Victoria Chamber of Commerce" was also referred to, and I can safely state that no favourable circumstance or argument which an intimate knowledge of the case could suggest, was omitted on the occasion. The Minister replied, in substance, that he and his colleagues had undertaken as much Railway work in the Province as they felt they could safely carry through, and that he could not, therefore, i)ledge his Government to do more at pjresent. His attention was thereupon called to the fact that the expense of the work would be comparatively trifling, as its actual cost to the Dominion for years to come would merely be interest on the construction outlay, which would necessarily be gradual; that under all the circumstances of the case, the commencement and active prosecution of work were obligations which should have been fulfilled, and should there- fore be carried out now. The Minister tlien remarked that the whole subject bad been well considered before the contracts for the Mainland work had been let, and that the views of the Government were that all had been done that could be done at present. After some further observations of the same character as the above, the deputation withdrew. 44 Vic. Railway Papers. 295 Mainland Sections. As a matter of information obtained from the Department of the Minister of Eail- wajs, I may add that the contracts let for the Alaiulaiul Section are as follows: — Sub-Section A, Emory's Bar to Boston Bar, 29 raiies, to be com- pleted 1st December, 1883 §2,727,300 00 Sub-Section B, Boston Bar to Lytton, 29i miles, to be completed 3(Jth June, 1884 2,573,640 00 Sub-Section C, Lytton to Junction Flat, 29 raiies, to be com- pleted 31st December, 1884 2,05G,950 00 Sub-Section D, Junction Flat to Savona, 40-^ miles, to be com- pleted 30th June, 1885 1,809,150 00 Total 69,167,040 00 A deposit of five per cent, on this amount has been lodged in cash with the Receiver- General, and the conti'acts, excepting an interest in that for Sub-Section B, transferred to A. Onderdonk, Esq., a gentleman who has an excellent reputation in California as an Engineer and Contractor. He represents the following Avcallhy gentlemen who are partners Avith him in the contract, viz.: — D. 0. Mills, Esq., Banker of San Francisco, S. G. Reid, Esq., of Oregon, H. B. Laidlaw, Esq., Banker of Ncav York, and L. P. Morton, Esq., Banker of New York (a member of the banking firms of Morton, Bliss & Co., and Morton, Kose 6c Co., of New York and London respectivoly). The manitest advantages of dealing with one firm of unquestionable means and ability, instead of with three or four firms, in the construction of the work, influenced the Government, as I learned, to consent to the transfer of the contracts mentioned. I should not omit to state that shortly after my arrival in Ottawa I was informed by one of the Ministers that a despatch (9th January, 1880,) had been forwarded to Your Honour requesting that tho Mainland Railway lands should be transferred this Session by an Act of our Legislature. In reply to a question as to whether it would be done, I assured him that tho policy of the Government was to give every assistance to the Railway, and that I had no doubt the legislation referred to would be introduced by the CJovernmont as requested. 1 was also assured by the Engineer-iu-Chief, that engineering parties would at once bo organ- ized and sent to the Province to prepare the work for the contractor. Four parties arc now on their way hither, and I have received a telegram from Mr. Onderdonk that ho will also reach the Province in a few^ days. 5K * * * * ■ * * 1 havcj[tho honour to be. Sir, Your obedient, humble servant, Geo. A. Walkem, Attorncy-General. No. 238. Telegram. Victoria, March 29th, 1880. Sir John A. Macdonahl, Ottawa: Awarding of Mainland conlractfl give satisfaclion, but your rofuHai to give dcfinito assurance of constru'tion on I.sland crcatos diHsatisfaclion. A promise from you to commence and prosofuto active cmistnulinn of Inland Railway next year would salisfy oil. Can you give it? Please reply iinmodiatoly, as House meets in a few days. (Signed) fiKo. A. Walkem. 398 lUnwAY Papehs, 1880 No. 239. Telegram. ViOToniA, April 7th, 1880. Sir John A. Macdonaldy Otiawa: Plcaso reply to my telegram of 29th March respecting construction Island Eailway. Want to use reply at once. Geo. a. Walkem. No. 240. Mr, Triitch to the Attorney-General. Victoria, B. C, April 14th, 1880. Sir, — His Honour the Lieutenant-Governor having referred me to you as author- ized to receive, on behalf of the Government of British Columbia, communications from me, as Agent of the Dominion Government, on the subject of the adjustment and transfer to the Dominion of the lands granted by the Province of British Columbia, under the " Terms and Conditions " of Union, in aid of the construction of 'the Canadian Pacific Eailroad, I beg to lay before you the following statement of the views of the Dominion Government on this matter, and more particularly in regard to the selection of the lands to be transferred, which views I had the opportunity of verbally submitting more fully for your consideration at the interview I had the honour of having with you this morning. There is reason to believe that the character of the land for a very considerable distance along the line of the Canadian Pacific Railway, as located in British Columbia, is such as to be altogether unsuited for agricultural purposes, and, therefore, valueless for the object contemplated at the time the Province was admitted into the Confeder- ation, which was, that the lands proposed to be transferred to the Dominion should be laid out and sold to aid in the construction of the road. The portion of Section 11 of the "Terms and Conditions," on which the Province became a part of the Dominion, which refers to the grant of land to be made by the Province for the purpose of the railway, is as follows: — " And the Government of British Columbia agree to convey to the Dominion " Government, in trust, to be appropriated in such manner as the Dominion Government " may deem advisable, in furtherance of the construction of the said Eailway, a similar " extent of Public Lands along the lineof Eailway throughout its entire length in British '' Columbia, not to exceed, however. Twenty (20) Miles on each side of said line, as may " be appropriated for the same purpose by the Dominion Government from the public " lands in the North-West Territories and the Province of Manitoba. Provided that " the quantity of land which may be held under Pre-emption right or by Crown grant " within the limits of the tract of land in British Columbia to be so conveyed to the " Dominion Government, shall be made good to the Dominion from contiguous Public " Lands; and, provided further, that until the commencement, within two years, as " aforesaid, from the date of the Union, of the construction of the said Eailwaj', the " Government of British Columbia shall not sell or alienate any further portions of the " Public Lands of British Columbia in any other way than under right of Pre-emption, " requiring actual residence of the Pre-emptor on the land claimed by him. In con- "sideration of the land to be so conveyed in aid of the construction of the said Eailway, "the Dominion Government agree to pay to British Columbia, from the date of the "Union, the sum of 100,000 dollars per annum, in half-yearly payments in advance." In view of the statement made in the preceding paragraph, it now becomes necessary that an understanding be arrived at with the Government of the Province by which the Dominion may receive an equal area of lands available for farming or economical purposes in lieu of those which, on investigation, may be found to be unavail- able withiii the forty-mile belt, and the Doniinion Government urgently request the concurrence of the Government of British Columbia in the following arrangements: i. e., That such territory situate within the forty-mile belt referred to in the section of ^ Vic. Railway Papers. 297 the " Terms and Conditions " above quoted as may be found on a thorough examination and investigation useless for farming or other valuable purposes, may not be regarded as properly forming part of the land eonsideration to he received by the Dominion, but that the same be eliminated from the area in the belt described, and that an equal area of land suitable for farming or other valuable purposes be selected elsewhere in the Province in lieu thereof. The area to be selected outside of the belt mentioned should, in addition, include a quantity of land to represent that in the Fraser Eiver Valley and elsewhere along or in the vicinity of the Kailwa}' line which may be found to have been already disposed of by the Province, or with regard to which valid claims may be preferred as also to cover the deficiciwjf caused by the International Boundary on the Mainland and the coast line on Vancouver Island respectively falling within the forty- mile belt. The Dominion Government cannot doubt that the Provincial Government will consider itself pledged in good faith in view of the whole circumstances, and of the actual money consideration stipul:Uevernn;ent of the Province with a view to the requisite legislation being sought fov during the current session, now apparently approaching its close. I also venture to remind you of the fact, mentioned b}' me when I last had an inter- view with you, that business ari'angcmcnts of ijressing importance, which are entrusted to me in connection with the commencement of railway construction in the Province, urgently require my presence in the uj^per country, and that I am jirccluded from attending to this duty until the negotiation with the (Jovernment of the Province in relation to liailway Lands, with which 1 am specially charged by the Dominion Govern- ment, shall have reached some conclusion. 1 have, c\:c., (Signed) JosEru W. Trutch. No. 242. T/if Atlorncy-Gcncnil to Mr. Trutch. Victoria, Ajiril 26th, 1880. Sir, — In acknowlcieutenant-(iovernor from the said Secretary of State, dated the 2:^rd day of September, 1«78. The grant of the said land shall be suliject otherwise to the conditions contained in the said 11th section of the Terms of Union. 2. This Act shall not affect or prejudice the rights of the public Not to affect existing with respect to common and public liighways existing at the date hcreof;;'?^'|^'^.^'"i Public within tlie limits of the lands hereby intended to be conveyed. 3. This Act may bo cited as " An Act lo grant public lands on the short title. Mainland to the Dominion in aid of the Canadian Pacific liailway, 1880." 800 Railway Papers. 1880 No. 247. The Lieutenant-Governor to the Seerclary of State for Cajuula. Victoria, liurnsu Columbia, 17 th May, 1880. Sir, — I havo the lioiionr to enclose a. copy of n Minute of my Exccutivo Council dateii tlio 12th instant, embodying- a resolution unanimously passed by the Legishitive Assembly oi'thls Province on the 7lh inslaiU, respecting tb.c eonsti'uction of the Island section of the Canada Paciric Juvilway. and strongly recommending that the rcciucst therein contained siiould be complied Avith. 1 have, etc., (Signed) A. N. EicBAiiDS. No. 248. Report of the Executive Council approve/I by the Lieutenant-Governor on the 12th day of May, 1880. The Committee of Council advise that the enclosed IxosolutiOh, ilnaiiimously passed by the Ijcgislative Assembly' on the 7th day of May instant, respecting the tonstruclion of the Island section of the Canadian Pacific Eailway, be forwarded to the Dominion Government, with a strong recommendation and respectful request that it be complied "with. Certified, (.Signed) T. B. ITuMPiTREVs, Provincial Secretary and Clerk iLxecutive Council. Resolved — That, whereas this House freely concedes to the Dominion Government due credit for the steps lately taken by them towards commencing construction of the Canadian Pacific Eailway on the Mainland, and is moreover desirous that the work should bo actively prosecuted: It iS, nevertheless, of opinion that the Dominion Government should be respectfullj'- informed that the fulfilment of the obligations assumed by them in 1874 to immediately commence and finish the portion of the main line lying between Esqui/nalt and Nanaimo should not, in justice to the Province, be deferred bej-ond the Spring of 1881 : Be it therefore resolved, That an humble Address bo presented to His Honour the Licutenant-(70vernor, praying that he will be pleased to communicate the views of the House, as above expressed, to the Dominion (iovcrnment, and recommend them for favourable consideration. No. 249. The Under Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 2nd June, 1880. Sir, — I am directed to acknowledge the receipt of your Despatch of the 17th ultimo, enclosing a copy of a Minute of your Executive Council embodying a Resolution passed by the Legislative Assembly of British Colunibia on the 7ih ultimo, on the subject of the construction of the Island section of the Canadian Pacific Eailway I have, &c., (Signed) Edouard J. Lanqevin, Under Secretary of Slate. 44 Vic. Railway Papers. 301 No. 250. Report of the Executive Council, approved by the Lieutenant-Governor on the 4th day of October, 1880. The Committee of Council deem it advisable that the attention of the Dominion Government be earnestly invited to the official representations made by this Government respecting the expediency of the Island section of the Canadian Pacitic Ixaihvay being commenced not later than next spring, and that the Dominion bo respectfully ui'ged to make such arrangements as ma}' be required to commence and vigorously prosecute the work in the early part of the coming year. The Committee advise that the Dominion Government be also respectfully requested to inform this Government ot their arrangements for carrying out the above object, and that a copy of this Order, if approved, bo" lorwarded to the Honourable the Secretary of State. Certified, (Signed) T. Basil Humphreys, Pj'ovincial Secretary and Clerk Executive Council. No. 251. The Lieutenant-Governor to the Secretary of State for Canada. Victoria, British Columbia, nth October, 1880. SiK, — I have the honour to enclose to you, herewith, a copy of a Minute of. my Executive Council, dated 4th da}' of October instant, inviting the attention of the Dominion Government to the representations made by this Government regarding the commencement of the Island seclion of Canada Pacific Eailway not later than next spring, and also respectfully requesting that this Government be informcd.of the arrange- ments made by the Dominion Government for the carrying out of this object. I have, &c., (Signed) A. N. Eichards. No. 252. The Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 2.oth October, 1880. Sir,— I have the honour to acknowledge the receipt of your despatch of the 11th instant, enclosing a copy of a Minute of your Executive Council, dated the 4:th of that month, inviting the attention of the Dominion Government to the representations made by your (iovci'nnient regarding the commencement ol the Island section of the Canada Pacific Eailway not later than next spring, and also requesting that your Government may be informed of the arrangements made by the Dominion Government for carrying out that object. 1 am, dtc, (Signed) J. C. Aikins, Secretary of State. No. 2.'):5. lieporl of the Executive Council, approved hv the Lieutenant -Governor on the Uth day of October, 1880. The Committee of (Vnineil are of opinion that the interesis of the Trovince require that some person resident at Ottawa should l>e aiithoi ized, on bebail ot tbi.s Government, to press upon tlie Dominion (Jovernnient, thi- importance of iheir carrying out their agreement to construct tho Island section of the Canadian I'aeilic Eailway, and at the 302 Railway Papers. 1880 same time to point out the commercial and economic value of the work, as well as the serious injury sustained Iw tlie I'rovinee, hy the withdrawal from sale and settlement tor the ]iast seven years, at the instance olthe Dominion (lovernment, of the extensive area ot valuable lands along the Kast Coast of Vancouver Island, without even the com- pensatini:; advanlai;-es of railway eonstruotion, asitlc from the larger cpiestious of wealth and prosperity involved in its conipleliun. That such authority should be given at once, so as to allbrd ample time and oppor- tunity to the Dominit)n Government to make their arrangements lor proceeding actively with the work and without t'urthor delay. The Committee therefore advise that the Honourable A. DcCosmos, M, P., who is now, it is believed, in Ottawa, receive such autiiority, and that he be requested, upon his accepting the same, to report the result ol his proceedings to this Government from time to time. It is further advised that copies hereof, if approved, be forwarded to the Honourable the Secretary ot State and to the Honourable Mr. JDcCosaios. Certified. (Signed) T, B. Humphreys, Clerk, Executive Council. No. 254. The Lieuienant-Governor to the Secretary of State for Canada. Victoria, B.C., October 16th, 1880. Sir, — I have the honour to enclose to you herewith a copy of a Minute of my Executive Council, dated the 14th day of October inst., authorizing the Hon. A. Do Cosuios, M.P., to press upon the Dominion Government the importance of their carrying out their agreement to construct the Island section of the Canadian Pacific Eailway; to point out the advantages to be gained therefrom, as well as the serious injuries sustained by the Province in consequence of the withdrawal from sale and settlement of the extensive area of valuable lauds along the East Coast of Vancouver Island. I have, (fee, (Signed) A. N. Eichards. No. 255. The Private Secretary to Mr. Be Cosmos. ViCTOiiiA, October 16th, 1880. Sir,— I am directed by His Honour to enclose to you copies of two Minutes of the Executive Council dated the 14th inst., one, authorising you to press upon the Dominion Government the importance of their currying out their agreement to construct the Island section of the Canada Pacific Railway; to point out the advantages to be gained therefrom, as well as the serious injury the Province lias sustained by the with- drawal from sale and settlement for the past seven years of the extensive area of valuable lands along the East Coast of Vancouver Island. The other, authorizing the Provincial Secretary to inform you that any expenses necessarily incurred by you in acting under the foregoing Minute will be reimbursed. I have, &c., (Signed) K. G. Tatlow, Private Secretary. No. 256. TJie Secretary of State for Canada to the Lieutenant-Governor. Ottawa, 4th November, 1880. Sir, — I have the honour to acknowledge the receipt of your despatch of the 16th ult., enclosing copy of a Minute of your Executive Council of the Miii ult., authorizing the Hon. A. DcCosmos. M.P.. to iin'ss uj)on the Domin.on Government the importance of their carrying out their agreement to construct the Island section o^ the Canada Pacific Eailway; to point out the advantages to be gained therefrom, as well as the 44 Vic. Railway Papers, 303 serious injuries sustained by the Province in consequence of the "withdrawal from sale and settlement for the past seven years of the extensive area of valuable lands along the East Coast of Vancouver Island. I have, ike, (Signed) J. C. Aikins, Secretary of State. No. 257. The Missing Railway Despatch {No. 164), 13f/i June, 1876. Beport of Select Committee, with Minute of Evidence, &c. Report of Select Committee to inquire into all the circumstances connected ivith the suppression or non-production of a Despatch from Ottawa, bearing date l^th June, 187G, inferring to Railway matters, icith power to call for j^ersons and papers; said Committee consisting of Messrs. Ash, Wilson, Abrams, Harris, and Bennett. Tour Committee report that they have obtained the evidence of every person resident in the City of Victoria whom they considered likely to be able to aftbrd infor- mation on the subject of the enquiry : That they telegraphed, through Mr. Speaker, to Mr. Trutch, in Europe, and have received a telegraphic reply from him. and also an explanatory letter: That they telegraphed, through Mr. Speaker, to il>e Secretary of .""tate of Canada, and have received a telegraphic reply, which showed that their telegram had been mis- understood. That they have sent a second telegram to the Secretary of State of Canada, to which a reply has not yet been received: That, pending a reply to their second telegram to the Secretary of State, your Committee are unable to make a final Report, but deeming that the evidence now before them should be submitted to the consideration of the House, they submit it herewith in order ihat it may be printed. Your Committee will submit a final Eeport when they shall have received a reply to the telegram last sent to the Secretary of State of Canada. (Signed) John Ash, 2lst March, 1879. Chairman. MINUTES OF EVIDENCE. Capt. G. E. Layton examined. Do you remember anything of a despatch on Eailway matters, received about 13th June, 187G? Ans. — I saw a copy of a despatch in the newspaper this morning. I remember something about it, but I cannot say precisely without seeing the original. The original may bear some mark Avhich might recall the matter to my memory. The Committee, with Capt. Layton, here went to the office of the Private Secretary, and inspected the original document. ]iy Dr. Ash — Have j'ou seen anything recalling this despatch to your mind? Ans.— On looking at Schedule Book 1 lound an entry, made by myself, dated 4th July, stating that a despatch was transmitted informing Secretary of Slate that a copy of iheir despatch of the 13th June was laid bclbre the Executive Council, and copy of an Order of His Excellency the (Jovcrnor-CJeneral in Council and Memorandum of Minister of Public Works, in relation to a conveyance, 2(1 miles in width, from this Government to that of the Dominion, on each side of the line surveyed and located by Canada l^icitic Uailroad in this Province. Did you make a co))y of the despatch ? Ans. I made a copy. It is so long since that I cannot say whether I gave it to the Messenger or to the Lieutenant-Governor. Are you quite sure that you transmitted it in the usual way? ^„,s. — \i is HO long since 1 cannot rcnicniber. By Mr. Harris— Had you any orders to suj>prcss this despatch ? yl,4,s-, — None whatever. Had a?iy such order been received by the Lieutenant-Governor would }ou have known of it.'' Ans. — Yes. 304 Railway Papers. 1880 By Mr. Wilson — Arc copies of dospntchos soiU down iVoin the Lioiitcnant-Govci'nor to the Exoi'Utive nuinboroil (.'onsociilivoiy ': j,(.s-. — Yos, tlioy aro luimbored acfordini;- to tiu> Seliedulc liook, so that if any mis- carriod the Exocutivo would know it. Are yuii aware of the Lioiitoiiant-d'ovornoi- having been in the habit of consulting Avith his Executive on inii)oi'tant railway matters? An^t. — Yes, ho was in the habit ot doinn' so. By Dr. Ash — Can you suppose it i)o.^sible that the Lieulenant-Governor would have received so important n despatch as this, without consulting with his Executive? Alls. — I cannot sup[)ose it possible. (Signed) Georqio Eiciiaud Layton. Copy of Schedule. 187G. " No. n;ito Rcecivoil. . . /-. " 44. 13th June. 4th July. — Trans. co])y of an Order of II. E. Govr. Genl. in Council, and Memorandum of Hon. Minister of Public Works, representing expediency of obtaining I'rom the Govern- ment of B. C. a conveyance ol' land, 20 miles in width, on each side of tiio portion of the Canadian Pacific l\ailw;;y line surveyctl and located in B.C." Schedule or Dlsi'vl' i«e> TKAN»MnTEi) by Lieut. -Governor Trutch to the Secretary of State, 187t!. "\o n.ite. Trail!!. _, "47. 4th July. 6th July. — Stating that despatch of I'Uh ulto. was laid before Execu- tive Council and copy of an Order of H. E. Gov. Genl. in Council and Memo, of Miu. of Public Works, in relation to a convej^ancc, 20 miles in Avidth, from this Government to that of the Dominion, on each side of the line surveyed and located by Canadian Pacific 11. in this Province. J. JuDSON TouNG examined. By Dr. Ash —You were Dcjiuty Clerk of Executive Council in 1876? Ans. — Yes. Do you know anything of these Paihvay documents? jlfis, — JS!"o, I never saw them before; I never heard of them; know nothing whatever about them. What was the practice respecting the transmission of documents from the Licut.- Governor to the Executive Council? ^l/i.y. Such papers were always addressed to the President of the Executive Council. I never opened them; I should not have charge of them until after they had been sub- mitted to the Executive Council. (Signed) Jas. Judson YounO. Mr. Elliott examined. June, refcrr! _ . _ route by Yellow Head Pass and Fort George, and asking for a reservation of a 20 mile belt of land along that route, said — I have no recollection of ever having seen it, nor did I ever hear of it until yesterday evening when informed by Mr. William Wilson. By Mr. Wilson — Did ever 31 r. Trutch speak to you rcsj)ecting this despatch? Ans. He never did. Was Mr. Trutch in the habit of speaking to you on railwa}- matters ? Ans. Yea, he was. Bv Mr. Abrams — What Avas the practice at that time with regard to documents that Avere refsrrsd by the Jjieut. -Governor to the Executive Council? Ans. — Thsy were invariably sent to the Cleikof the Executive Council; I remember no instance io ulq contrary. 44 Vic. Railway Paptos. 3dft By Mr. Harris. — Were documents of that character ever handed to you directly by the Lieutenant-Governor? ^n.s.— No, unless it might be that being at the Government House documents might have been put into my hand to carry down to the Council, but in all cases they Avould be addressed to the Clerk of Executive Council, and would be handed by me to him. By Dr. Ash— Then you were entirely in ignorance, until yesterday, that the Doaiin. ion Government had located the Canadian Pacific Kailroad between Yellow Head Pass and Fort George? Ans. — I never knew. I should have been only too pleased to have known. By Mr. Wilson — Was ever a despatch received, subsequently, calling your attentioa to the fact that no action had been taken by the British Columbia Government upon this despatch of 13th June, calling for a reservation to be made? Ans — There was none. There was never any despatch to me from the Dominion Government unless it came officially through the Governor. (Signed) A. C. Elliott. F. G. Vernon examined. I was a member of the Government in June and July. 1876. By Mr. Wilson — Do you know anything of the Railway despatch calling for a reserve of a belt of land at Fort George? Am. — No; I never heard anything of it until it was read in the House a few days since. Was Governor Trutch in the habit of consulting with his Executive? Ans. — Yes, on all important matters, particularly those connected with the Eailway question; he invariably Avas present at the meetings of the Council. Were you absent from any of the meetings of the Council in June and July? Ans. — No, I believe I was always present. Did the existence of an}- such despatch as this ever come indirectly to your know- ledge? Ans. — No. It could not have come to my knowledge, cither directly or indirectly, without my remembering it. I never heard of it either fi-om Lord Dufferin or Mr. Trutch. Then the statement of Mr. Trutch, in his despatch ot 4th July, 187G, to the Secre- tary of State for Canada, that he had that day laid before his Executive Council, the Despatch of 13th of June, is incorrect? A)is. — Yes, it is incorrect. The minutes of every meeting Avere entered in the minute book, and had there been a meeting it would have been entered. By Mr. Abrams — Did yen notice, yesterday, the entry in the Private Secretary's Schedule book referring to this despatch? Ans. — Yes. Have your ever before looked over that Schedule book? Ans. — No; I never saw the Schedule book before. By Mr. Wilson — What was the usual procedure on the part of the Lieutenant- Governor in transmitting despatches to his Executive Council ? Ans. — Sometimes he would bring them down himself and read them to the Council. In such cases they would bo addressed to no person, or if addressed would not bo delivered to the address ; on other occasions he would liand them to the President of the Council, Mr. Brown, who would open them and hand them back to the Governor who would then read them to the Council ; at other times he would hand them to the messenger, addressed to the President of the Co;;;)cil, or the Clerk ot the Council, I forget which. I wish to state that I never upon any occasion opened any documents transmitted by the Lieutenant-Governor to llu^ Executive Council. Such documents Avere of coui'so never addressed to me. I never saw any such documents until the}' were produced in the Executive (,'ouncd. (Signed) F. Geo. Vernon. Mr. Ebenkzer Brown. I was President of the Council in Jul}-, 1870. Do yon know anything about this desj)atch of 13tii June, 187(5? yl/^s■. — I know nothing about it, dii-cctly or indirectly ; nevt-r saw it, or heard of it, until it was read in the House u few days since. (Signed i l%m;NK/,KR Buown. 806 Railway Papers. 1880 Hon. T. B. Humphreys. I Avns Clerk of the Executive Council in June and early part of July, 1876. Do you know anything of this JJailway Dospatcli of liUh Juno, 187(5 ? j^,is. — I know nollung about it. and never heard ot it until Mr. Beavon showed it to mo in his office, a lew liays betore .Mr. Walkeni produced it in tlie House last Tuesday. I wish to slate that the Minute Book of the Executive Council shows that there was no meeting of the Council between the 2Sth June, 1S7G, anil the 22nd July, 1876. I may, also, state that I never received documents ot this character at first hand. They wore always brought down by Mr. Trutch personally, or addressed, under cover, to the President of the Council. (Signed) Thos. Basil Humphreys. Hon. Egbert Beaven. B}' Dr. Ash — How did this despatch come to be found? Ans. — A reported statement ot Mr. Mackenzie in the House of Commons, and a telegram from ^Ir, Eoscoe, to the effect that Hail way lino had been located to Fort GeoV-ge, called my attention to the subject. No despatch on this subject having been published in British Columbia, when I came into office I sought for it, but could not find it. Mr. DeCosmos subscquentl}' telegraphed to me its date, and I then had cnquiiy made among the papers in the Lieutenaiit-Covcrnor's office, and there the despatch was found. A copy was made and sent down to the House. By Dr. Ash — Did Mr. DeCosmos take action in the matter in consequence of any- thing you had said to him ? Ans. — I cannot say. By Mr. Wilson — What was the course pursued by Governor Trutch, at the time you were a member of the Cabinet, in bringing before his Executive important despatches received by him from the Dominion Government ? Ans. — He frequently came down personally with despatches in his pocket, if the Council were in session, when an entry of the fact would appear in the minute book. At other times he would refer them to the Council, through the Premier or President of the Council. (Signed) Eobert Beaven. Legislative Assembly, Dr. Johji Ash, M. P. P. Victoria, 6th February, 1879. Chairman of Bailway Despatch Committee. Sir, — I desire to state in evidence before your Committee, that, during the time I was a member of the Executive Council under Lieutenant-Governor Trutch, that he •was always singularly particular and careful about all public documents and the order of conducting business ; that he held firmly to the view "that the only proper medium of "communication between the Sovereign and the Administration was the Prime Minister, " not merely on account of his j^osition as head of the Government, but especially because "ho is the Minister who had been personally selected by the Sovereign as the one in "whom the Crown reposes its entire confidence." I desire, also, to state that the discovery of the despatch at the present time is, as far as I am aware, due to the exertions of the Hon A. i)eCosmos. I am, &c , (Signed) Robert Beaven. Telerjram from Mr. Speaker to Hon. J. W. Trutch. Victoria, 7th February, 1879. Your letter to Dominion Government, fourth July, seventy-sJx, states you laid Eailway Despatch received that day before Executive Council. All your Ministers deny all knowledge of despatch until found among your office papers. Telegraph explanation. (Signed) Williams, Speaker. Reply. Ecccived at Victoria, Feb. IGth, 1879. To Speaker, British Columbia. Doubtless usual copy sent Council, original retained office. I write. (Signed) ' Trutch. 44 Vic. Kailway Papers. 307 Victoria, 18th February, 1879. To the Secretary of State, Canada. Please acquaint me by telegraph, for information of Committee Legislative Assembly* if despatch ot Dominion Government, thirteenth June seventy-six, locating Eailwayj ■was rescinded or withdrawn, with date and mode of such withdrawal, by telegraph or letter. (Signed) Frederick Williams, Speaker Legislative Assembly. Folkestone, 12th February, 1879. The Honourable the Speaker of the Legislative Assembly, British Columbia: Sir, — Your telegraphic message, addressed to me in care of the Bank of British Columbia, was forwarded to me here on the 8th instant. The message read as follows: — " Your letter to Dominion Government, fourth July, seventy-six, states you laid Eailway despatch, received that day, before Executive Council; all your ministers deny all knowledge of despatch, until found among your office papers. Telegraph explanation. " Williams, Speaker." I have to-day returned the following reply: — " Speaker, British Columbia: " Doubtless usual copy sent Council. Original retained Office. I write. " Trutcii." I deferred telegraphing in answer to your message until I had obtained from London the Sessional Papers of the Legislative Assembly of British Columbia for the Session of 1877, from which I hoped to obtain some clue to the identification of the despatches referred to. To-day 1 have searched those papers, but without finding any mention of the despatch in question, from me to the Dominion Government, or of that Railway despatch the receipt of which would seem to be acknowledged by it; nor is there any allusion to any such despatches in the House of Commons, Canada, Sessional Papers, 1877. I am thus without information as to the precise subject matter of the despatch you allude to, and I cannot recall to mind any despatch on the Railway question which was received by me at or about the date you name, except that from the Governor-General's Secretary, forwarding a copy of a despatch from the Secretary of State for the Colonies to the Governor-General, in relation to Lord Duffcrin's then approaching visit to British Columbia, which despatch was discussed in Executive Council, and of which a copy is printed in the British Columbia Sessional Papers, 1877. No doubt however, a copy of any such despatch as may, in the despatch which you state I |addresscd to the Dominion Government on the 4th July, 1876, have been acknowledged to have been on that day received and laid before the Executive Council would have been sent by me to the Clerk of the Council in the usual course, whilst the original despatch would have been retained in the Lieutenant-Governor's Office. This would be in accordance with the course pursued invariably (certainly without any exception that I am aware of) up to the expiration of my term of office for the two years, or thereabouts, preceding, with respect to all despatches received by me which were of a character to render advisable their being laid before Executive Council, and which accordingly were so laid before the Council. Previous to the adoption of this course, that is to say, previous to a period extending back two years, or thereabouts, froni the expiration ot my term of office, all such despatches were laid before Council in the original as received, but this practice was discontinued in consideration of the risk of such original documents being mislaid. On relinquishing office I carefully looked through the records of correspondence in the Lieutenant-Governor's Office, and ol)served that all such original despatches were complete in their projicr places and order in the office, and in accordance with the office schedule of desi)atche8 received. 1 should bo glad if I could add any other inlbrniation which might aid in accounting for the ai)parent miscarriage of the despatch you call my attention to, and should any further lacts or obsirvations likely to tend to this result occur tome, after I have ascertained definitely what particular despatch is referred to, 1 shall not fail to commu- nicate them to you. I have, kc, (Signed) Josepu W. Trutch, 308 Railway Tapers. 1880 No. 258. iSecond Iicport of Select Ciunmlttce to enquire into all the rircu.nstances eonneeted irith the suppression or non-produetion of d T>espateh from Ottawa, beariny date Viilh Jane, 1S7G, referring to Kailu-ai/ matters. Mr. Speaker: The Coinmittco nppoiiilod to enquire into the circiiinstances at Icndinii; the non- publication of a (lospateh relating- to the reservation of Railway lands, dated OUawa, loth June, ISTli, have the honour to further report as follows: — 'J hat a despatch tialed Ottawa, l.'ith June, ]S7(!, relaliiii;- to the convcj-anoo of ji tract of huul on each side ot the portion of the Canatlian Pacific .Railway surveyed and locateil in this Province, from Yellow Head Pass, turnini;- the north end of the Cariboo range, to a point near the confluence of the Ixivei's Stewart and Chilacoh, was duly received on the 4th day of July, 1:^70, by >^^r. J. ^\^ Trulch, then Lieutcuant-Govornor of this Province. That Lieulenaut-Governor Trutch informed the Dominion Government, by letter, the 4th of February of the current year. That there is no evidence to show that cither the Dominion (Jovernmcnt or Licu- tcntint (lovernor Trutch made inquiry into the cause of the non-reservation of the hxnds asked for, by the Provincial Government, in the said despatch. That Mr. 'J'rutch, according- to his letter dated Polfj. Mr. TRtJtCtt says that he is happy to have the opportunity of meeting the Committee, and can only regret that he is unable to thrown any light on the subject of the inquiry, other than that contained in his letters to the Speaker, which are printed in the minutes of evidence taken in 1879. The fact is, I do not remember mentioning or speaking about that despatch either to Mr. Elliott or au}' one else. I had no communication with the Dominion Government upon the matter, either by letter or telegram, otherwise than through m}' despatch to the Secretary of State. The expression •' laid before my Executive Council," Avhich occurs in my letter to the Dominion Government in connection with this despatch, is an official jihrase, and does not necessarily imply that I personally placed the document in the hands of my Ministers or any one of them. After 1 had acknowledged the receipt of the despatch, and had placed a copy thereof in an envelope addressed to the Executive Council, I suppose that I threw the matter off" my mind. It was only a fortnight before my term of office expired. I may have regarded it in this way: — that it was not a matter demanding immediate action, and that it would be better that it should be dealt with by my successor in office. I do not affirm that these were my ideas at the time, because I recollect nothing about it; but on thinking the matter over, 1 can suggest no other explanation of my r.ot having spoken with m}' ^Ministers on the subject. 1 had no knowledge at that time, or since, that the copy of the despatch had never reached the hands of ni}^ Council. I was in the habit of talking with Mr. Elliott on railway matters. I am sure now that I never mentioned this desi)alch, because he has stated that I did not; and I have no recolleciion of having done so. 1 know no reason why I should not have done so. (Question by Dr. Ash. — Were you not a strong advocate of the Eraser Itiver route ? Alls. — Not an advocate, but I consistentl}' held a decided professional opinion, wliieh 1 expressed publicly at Ottawa in 187!, that the Eraser iliver route, being the natural outlet from the interior to the sea coast of British Columbia, was the most availaljle lino for the Canadian Pacific llailway. In regard to that opinion, x wish to state that with tl)e exception of two lots at New Westminster which I purchased in lb59 for about §800 and sold in 1877 for about Si,OOU, and two lots at Hope, I have never })ossesscd any pecuniary interest, direct or indirect, in any real estate on the mainland of liritish Columbia. My toll charter right in the Alexandra bridge ceased in 1870. (Signed) Joseph W. Teutcu. 12th April, 1880. 4th May, 1880. Members present: — Messrs. Abraras, Harris, Ash and Bennett. Mr. Alex. Wilso.v soys: — Some time in the month of .luly, 187(5, I saw Mr. Elliott pass down Eort sti'ect. A few minutes allerwards I had occasion to go down town, when I saw Mr. Elliott and Mr. McLeiin iti conversation at one of the counters. U])on n)y return, in less than a quarter of an liour, I met Mr. lOlliolt at the corner of Eort and Government streets. On jjassing Mr. McLean's door, .Mr. McLean iiailed mo and then came out. I cannot give 310 Railway Papers. 1880 the rx:\ct words, but ho used words to this ofloot:— " Th;\t the railway routo was fixed; thsU Mr. Elliott told him that ho had i;ot word that tho routo was fixed by C'liileotin." Upon that information I told someone conneeted with tho Standard newspaper to fool for tho news,— that thoro was somothini; in connection Avith railway in town. I also told tho same thing to Mr. Toarso,— that the routo hud boon defined, and ho told mo afterwards that ho had tho same information, almost word for word, from ono in authority. ,^. ,^ . „ (Signed) Alex. Wilson. Alex. McLean oxaminod: — Question by Dr. Ash.— Do you know anything at all about this missing despatch ? Ans.—l never had any conversation with Mr. Elliott on tho subject of tho contents of this despatch. I have no recollection of over speaking to Mr. Alex. Wilson on tho Having hoard Mr. Alex. AVilson's evidence read by tho Secretary, I bog to state that I have' no rocolloctiou of anything of the kind taking place, and I believe his state- ment to bo untrue. . mr T (Signed) A. McLean. May4tb, 1880. , ICTOKIA : Printed by PwICIIAud Wolfexden, Government Printer, at the Government Printing: Office, Jamss' Bay.