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The origins of the Esquimalt and Nanaimo railway; a problem in British Columbia politics Roberts, Joseph 1937

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THE ESQUIIIA.IT AKD HA1AIM0 RAILWAY: A problem i n B r i t i s h Columbia p o l i t i c s . by Joseph Roberts A Thesis submitted i n p a r t i a l f u l f i l m e n t of the requirements f o r the Degree of Master Of Ar t s i n the Department of H i s t o r y The U n i v e r s i t y of B r i t i s h Columbia - March, 1937. PREFACE This study of the Esquimalt and rTanaimo Railway as a problem i n B r i t i s h Columbia p o l i t i c s , has, as f a r as possible been based upon primary sources. The manuscripts and p r i n t e d materials used are to be found i n the Archives of B r i t i s h Columbia, P u b l i c Archives at Ottawa, the P r o v i n c i a l l i b r a r y , and J the L i b r a r y of the U n i v e r s i t y of B r i t i s h Columbia, The t h e s i s has been prepared under the able guidance of Dr. ¥,!<, Sage. For t h i s super-v i s i o n and f o r h i s time which he so f r e e l y gave I express my sincere thanks. To Miss M. Ormsby the w r i t e r owes a debt of gra t i t u d e f o r copies of l e t t e r s from the Archives of Ottawa, CONTENTS Chapter ; Page 1 The background of the Island Railway - 1. 11 The Terminal of the Canadian P a c i f i c Railway at stake 1 3 . I l l The Carnarvon-Terms of 1874, about which surged the p o l i t i c a l b a t t l e s of the next decade 23, IV B r i t i s h Columbia secures a railway f o r Vancouver Island 45. L i s t of appendices 70. Bibliography 82 * Chapter One. "The "background of the Island Railway." The struggle and the negotiations c a r r i e d out i n an e f f o r t to secure the cons t r u c t i o n of the Esquimalt and Hanaimo Railway added many e x c i t i n g chapters to the h i s t o r y of B r i t i s h Columbian p o l i t i c s . I t i s the purport of t h i s t h e s i s to examine these negotiations which were made between the governments of B r i t i s h Columbia and the Dominion of Canada. However, a c l e a r unci erst and i ng of the Island Railway problem cannot be grasped, unless one takes i n t o consideration the 1 a t t i t u d e which was h e l d by the people of Vancouver Island and the mainland i n regard to the Island Railway. Therefore, a b r i e f sketch of the s o c i a l , economic, and p o l i t i c a l h i s t o r y of Vancouver Island p r i o r to Confederation w i l l be given. Vancouver Island had become a colony with the crown grant to the Hudson's Bay Company on January 15 , 1849, The l a t t e r r e c e i v i n g a charter, "to e s t a b l i s h upon the s a i d i s l a n d a settlement or settlements of resident c o l o n i s t s em-igrants from the United Kingdom of Great B r i t a i n and Ir e l a n d . 2 or from other of our Dominions." The main basis of the grant was an understanding that the Company would encourage s e t t l e -ment,, 1.. This a t t i t u d e was the r e s u l t of s e c t i o n a l jealousy developed between the i s l a n d and the mainland, 2c Crown Grant of 1849 i n Papers R e l a t i v e to the Grant of Van-couver's I s l a n d , pp. 1 3 - 1 6 . 1849. 2. To advance t h i s project land was to "be so l d at a f a i r p r i c e and the money received was to be used ( a f t e r de-ducting ten per cent f o r i t s s e r v i c e s ) f o r the c i v i l and m i l i t a r y expenses (except during war-time) of the government and f o r p u b l i c improvements, A land reserve was also to be provided f o r c i v i l establishments and a naval s t a t i o n ! I f the Hudson's Bay Company had followed these terms c o n s c i e n t i o u s l y and c a r r i e d them out i n t h e i r true s p i r i t , i t i s . a ' f a i r conjecture that there would have been a t h r i v i n g colony i n a few years. However, settlement suffered at the ex-pense of the Company's s e l f - i n t e r e s t ? I t i s not s u r p r i s i n g , 3 therefore, that few immigrated to Vancouver I s l a n d , As a r e -su l t , the colony was l a c k i n g i n the type of c i t i z e n which pro-vides the foundation of any f r o n t i e r settlement - the indepen-dent farmer and secondly, the middle-class merchant or tr a d e r . The Company i t s e l f d i d b r i n g out some s e t t l e r s to work on i t s farms, and i n the coal mines, but they were, i n most cases mere mouthpieces of i t . 1. The Crown reserved the r i g h t to revoke the grant i n f i v e years i f there was. no settlement and at the time of ex-p i r a t i o n of the Company's l i c e n s e of exclusive trade i n 1859, the i s l a n d could be recovered on the payment to the Company of the money a c t u a l l y expended by i t f o r the upkeep of the colony, 2. For a dis c u s s i o n of Company lands s e e , S c h o l e f i e l d , E.O.S., and Gosnell, R,E., S i x t y Years of Progress. B r i t i s h Columbia H i s t o r i c a l A s s o c i a t i o n , 1913,p.175. For a d i s -cussion of the business r e l a t i o n s between the Company and the s e t t l e r see, Sage, W.N,, S i r James Douglas and B r i t i s h Columbia. The U n i v e r s i t y of Toronto Press, Toronto, 1930, p. 170. 3. Captain C. Grant who a r r i v e d on Vancouver Island i n June • 1849, s a i d i n a paper read before the Royal Geographical Society i n 1857, "From that day to t h i s not a s i n g l e i n -dependent c o l o n i s t has come out from the Old Country to s e t t l e i n the i s l a n d . A l l other i n d i v i d u a l s , who have taken up land, having been i n the employ of the Company and brought out to the country at i t s expense," S c h o l e f i e l d , E.O.S., op. c i t . , p, 125, Consequently there grew up on the i s l a n d a s o c i e t y fostered under the wing of a Monopoly which was i n t e r e s t e d A, only i n f u r trade and not at a l l i n independent settlement, ex-cept asa a c o r o l l a r y of the f u r trade. A l l o f f i c i a l s of the colony i n c l u d i n g those of the c o u n c i l and bench were i n some way connected with the Company. This s o c i e t y tore a l l the ear-marks of an oligarchy, "based not on a r i s t o c r a t i c t r a d i t i o n but on Company influence and p o s i t i o n . There was l i t t l e evidence of that a c t i v e c i t i z e n s h i p which should take an i n t e r e s t and have a voice i n the lawmaking of a new country. This period of Van-couver I s l a n d h i s t o r y has been termed as the r u l e of the 1 "Family-Company-Compact"7 : This s i t u a t i o n was not to continue f o r long be-cause w i t h the discovery of gold on the Fraser i n 1858 the t r a n q u i l l i f e of the i s l a n d was d e f i n i t e l y shattered, V i c t o r i a now rose i n t o prominence as the stepping-off place f o r the gold -f i e l d s . Overnight the scene was changed, the halcyon days of '49 appeared to have come again, and f r e s h dreams of wealth f l o a t e d through the minds of a people p e r p e t u a l l y coming and going. I t i s here that s e c t i o n a l jealousy between the mainland and the i s l a n d had i t s roots f o r the former had the mines and the burdens while the l a t t e r , that i s , V i c t o r i a enjoyed the b e n e f i t s . Animosity arose between the two contiguous areas grounded i n petty j e a l o u s i e s and d i f f e r e n c e s , They became mutually d i s t r u s t f u l and h o s t i l e and the mere f a c t that a plan was supported by the i s l a n d was s u f f i c i e n t reason f o r opposition to i t on the part of the mainland, e s p e c i a l l y the Fraser v a l l e y , 1. Sage,W.N., op, e i t , p. 186. 4. and v i c e versa. Places of "business gradually appeared to meet the growing needs of the country which i n e v i t a b l y l e d to a penetration of the monopoly h a r r i e r of the Company. The great-er, part of the merchants 3wa-s Americans, who were to provide the more permanent part of the population. As long as they could carry on and make money i n comparative s e c u r i t y they were not i n t e r e s t e d i n the development of representative government so much as they were i n strong government, '.."Other immigrants included Canadians and Marl-timers, men who had been r a i s e d i n an atmosphere of struggle f o r responsible government, These were the men who were to make possible the e v o l u t i o n of responsible government; men who had pushed t h e i r way across the continent c a r r y i n g with them B r i t i s h t r a d i t i o n of responsible government. Among these was Amor De Cosmos,- who came from Windsor, Nova S c o t i s , E r a t i c but able he ®\ became the champion of reformed government and d i r e c t e d h i s attacks at S i r James Douglas. By h i s t r a i n i n g and background Douglas was not the man to guide the colony through a period of c o n s t i t u t i o n a l reform to the s a t i s f a c t i o n of a l l concerned. He was a f u r t r a d e r who through unfor-seen circumstances became a C o l o n i a l Governor. He d i d not resemble i n h i s t r a i n i n g the great "pro-consuls", the B r i t i s h C o l o n i a l Governors, who l i k e S i r George Gray spent t h e i r l i v e s i n administering the a f f a i r s of one colony a f t e r another. When he became Governor, Douglas knew l i t t l e about C o l o n i a l a d m i n i s t r a t i o n . 1 The Eraser River Gold rush l e d to the e s t a b l i s h -ment on the mainland i n the s p r i n g of 1858 of the new colony ,1,' Sage,W,IT,, S i r James Douglas, Fur-Trader and .Governor, Can-adian H i s t o r i c a l A s s o c i a t i o n , Annual Report'^' May 1925, p.54, O c of British-.Columbia, .Douglas .after dropping a l l connections with the Hudson's Bay and Puget Sound A g r i c u l t u r a l Companies ru l e d the two colonies from 1858 to 1864, On the retirement of 1 Douglas separate-governors were appointed f o r the two co l o n i e s . The colony of Vancouver Is l a n d and that of B r i t i s h Columbia tended to grow apart from each other, t h e i r outlooks r a r e l y transcending t h e i r geographical boundaries. Both colonies ex-perienced adverse f i n a n c i a l conditions and i n 1866 with the t o t a l debt of the two colonies amounting to $1,300,000,00 and a s t e a d i l y d e c l i n i n g population a s o l u t i o n f o r the d i f f i c u l t i e s was sought i n the union of the two colonies under one govern-ment ,. . The two colonies were merged i n the summer of 1866 under Governor Seymour who i t was thought would put the combined colonies on a sound b a s i s . Unhappily Governor Sey-mour was not the man.to cope with the s i t u a t i o n and when i t came to applying the economy k n i f e h i s sympathetic temperament got the b e t t e r of him. As a r e s u l t . t h e colony was forced to 2 support an establishment f a r beyond i t s impoverished means. Se c t i o n a l r i v a l r y was engendered between V i c t o r i a and New Westminster over the choice of the c a p i t a l c i t y f o r the combined co l o n i e s . When i t should have been e s s e n t i a l to d i s p l a y harmonious r e l a t i o n s h i p f o r progressive development between two contiguous communities such as these, 1. Howay, F.W., B r i t i s h Columbia, The Making Of A Province, Toronto, Ryerson Press, 1928. p, 273. 2. Howay, F.W. op, c i t . p. 176. ' 3., I b i d . 6. there always crept i n f e e l i n g s of s e c t i o n a l jealousy which had. i t s roots i n inc i d e n t s such as t h i s . The years 1866-1871 were c r i t i c a l i n the h i s -t o r y of B r i t i s h Columbia. To continue as a colony on the P a c i f i c coast with an i n c r e a s i n g debt seemed i m p r a c t i c a l . To j o i n the Dominion of Canada would mean an inte r v e n i n g mountain and p r a i r i e wilderness of two thousand miles. The only other s o l u t i o n to her d i f f i c u l t i e s appeared i n annexation with the United States, In V i c t o r i a i t was not an uncommon sight to see American f l a g s displayed f r e e l y and many of the business houses closed i n honour of the n a t i o n a l holidays of the'United States. The B r i t i s h C o l o n i s t of V i c t o r i a devoted many of i t s news columns to American a f f a i r s , and the p o l i t i c a l s i t u a t i o n i n the United States was followed c l o s e l y . Washington and Oregon were as much her next door neighbours as was the mainland and there was a reg u l a r steamship communication w i t h C a l i f o r n i a where the l a r g e r part of V i c t o r i a ' s business was transacted. The annexation movement proved i t s e l f popular i n V i c t o r i a w i t h Americans and those B r i t i s h Subjects who could see l i t t l e advantage in- r e t a i n i n g the B r i t i s h connection, A p e t i t i o n was prepared i n V i c t o r i a and addressed to Her Majesty's Government. " A l l our commercial and business r e l a t i o n s are so intimate w i t h the neighboring American population that we can see no other f e a s i b l e help out of our present d i f f i c u l t i e s than by being u n i t e d with them," 1 I t i s rather a wonder that i t was not X, The p e t i t i o n i s given i n the New Westminster B r i t i s h Columbian f o r May 18, 1869, 7. stronger and did not make more progress, ' J Eastern statesmen were aware of t h i s annexation sentiment f o r S i r Charles Tupper w r i t e s i n h i s "Re c o l l e c t i o n s of Six*ty Years i n Canada". Row could i t ( B r i t i s h Columbia) have been expected to remain B r i t i s h when i t had no community of i n t e r e s t w i t h the r e s t of Canada from which i t s people were separated by two ranges of mountains and the vast p r a i r i e ? Under the e x i s t i n g circum-stances i t had no means of advancement except by throwing i n i t s l o t with the great n a t i o n to the south, with which i t had constant communication both by land.and se.a.l About t h i s time however, the Confederationists came to the p u b l i c front to.take the place of the Annexation-i s t s , Prominent among the Confederationists were-Amor De Cos-mos, John Robson, J.E, MeCreight, Robert Beaven, George A. P Walkem, A l f r e d Waddington and J . Spencer Thompson, The f i r s t move towards union with Canada came i n March 1867, when De Cosmos introduced i n t o the l e g i s l a t i v e c o u n c i l a motion favouring confederation, but due to the opposition of Seymour and h i s c o u n c i l the matter remained i n the a i r f o r a con-siderable lenght of time. Governor Seymour f r a n k l y stated; "That he regarded i t as the expression of a disheartened community looking f o r a change."'5 I t was not u n t i l the death of Seymour i n 1869 and the appointment of Anthony Musgrave, whose energetic p e r s o n a l i t y was the exact opposite of that of the willowy Seymour; a.man who had been an ard.ent supporter 1. Tupper,C,, R e c o l l e c t i o n s of S i x t y Years i n Canada, London, C a s s e l l and Company,1914. p.126, 2. Sage,W,H'. , C r i t i c a l P e riod of B r i t i s h Columbia, P a c i f i c H i s t o r i c a l Review, Vol.1.p.32, 3. Howay,E.W., B r i t i s h Columbia's entry i n t o Confederation, Canadian H i s t o r i c a l A s s o c i a t i o n Report, May 1927, p.69, \ 8 , of confederation i n Newfoundland,did B r i t i s h . Columbia's en-" > 1 t r y - i n t o Confederation become a f a i f e r prospect. 2 The debate on the proposed terms of union, with Canada;* commenced on March 9, 1870 , This was followed by the appointment of a delegation to Ottawa composed of J , Trutch, j . S . Helmeken, and W. C a r r a l l , to discuss terms of union w i t h the Dominion Government. B r i t i s h Columbia's proposals were adopted with some a l t e r a t i o n and a d d i t i o n by the Committee of 3 the P r i v y Council of Canada. In view of future developments i t i s i n t e r e s t i n g to note the evidences of s e c t i o n a l f e e l i n g between the i s l a n d and the mainland which entered into the,debate on the subject of Confederation with Canada. In opening the debate no great-er plea f o r the development of a tinited i n t e r e s t to promote the benefit of a l l concerned could have been made than that by Attorney General Crease. And I honestly hope that our minds and best energies may be bent to a task which w i l l tax a l l our p a t r i o t i s m , a l l our forbearance, a l l our abnegation of s e l f , and s e l f i s h aims, to combine a l l our i n d i v i d u a l powers i n t o one great e f f o r t f o r the common good.4 1. Musgrave's appointment was part of S i r John A. Maedonald's process of "putting the screws on Vancouver Island". Cf, Howay, F.W. op. c i t . p.71. 2. These terms were draft e d by Governor Musgrave, who of course knew the mind of the a u t h o r i t i e s at Ottawa. They passed the cou n c i l with a few s l i g h t changes a f t e r a protracted debate. See, Debate .on Subject of Confederation w i t h Canada, Govern-ment Gazette,March 9, 1870, For Iielmeken's appointment see, B.C. Despatches to Downing Street, Musgrave to L i s g a r , A p r i l 5, 1870, 3,Standing Orders of the l e g i s l a t i v e Assembly of B r i t i s h Columbia, 1930, pp,149-154, 4,Government Gazette, 1870, p . l . 9 In the proposed terms by B r i t i s h Columbia clause 8 i n part stated: And s h a l l f u r t h e r engage to use a l l means i n her power to complete such Railway communication &t the e a r l i e s t p r a c t i c a l date, and that surveys "to determine the proper l i n e f o r such railway s h a l l "be at once commenced; and that, a sum of n©t l e s s than one m i l l i o n d o l l a r s s h a l l he expended i n every year, from and a f t e r three years from the date of Union, i n a c t u a l l y constructing the i n -i t i a l sections of such Railway from the Seaboard o f . B r i t i s h Columbia, to.connect with the Railway system of Canada.1. The route of t h i s railway was from a l l appear-ances to be determined by i t s b u i l d e r s . However, l o c a l i n -t e r e s t s desired s a t i s f a c t i o n . E a r l y i n the debate on t h i s clause De Cosmos pinned the f o l l o w i n g query to the word sea-board, "What i s the Seaboard. Does i t mean Barclay Sound?" l a t e r , when speaking of the probable cost of the railway De Cosmos assumes that V i c t o r i a would not only be the terminus of the t r a n s c o n t i n e n t a l l i n e but the a c t u a l point where con-s t r u c t i o n of the B r i t i s h Columbia s e c t i o n would s t a r t , '^It w i l l cost $100,000,000 to, construct i t (the rai l w a y ) to Lake Superior from V i c t o r i a , " Trutch i n t e r r u p t e d to explain (and at the same time to give h i s own idea as to the route which the r a i l w a y would f o l l o w ) the i n t e n t i o n of t h i s . c l a u s e . That (the route of the railway) i s what , we hs.ve purposely l e f t open. We have purposely generalized and l e f t i t ' f o r those who undertake the work to determine f o r themselves...., I t does not attempt to define the l i n e the road should 1. Government Gazette, 1870, p.14, S, I b i d . p.15. 5:, I b i d , 10. take.,.. The l i n e may come down the v a l l e y of the Fraser as i n my opinion w i l l he the "best or i t may come through to Bute I n l e t or Ben-t i c k Arm.l In debating the adoption of the clause p e r t a i n i n g to the'Marine H o s p i t a l and Lunatic Asylum, the question arose as to the s i t u a t i o n of these two p u b l i c b u i l d i n g s , Mr. H. Hol-brook took the opportunity to remind the assembled members that "We have had our complaints on the mainland, and we con-sidered the removal of the C a p i t a l and the c e n t r a l i z a t i o n of business at V i c t o r i a , an i n j u s t i c e to the re s t of the colony,^ Expectations of a s o l u t i o n f o r the economic and p o l i t i c a l troubles of the province from a union with Canada undoubtedly held i n check the d i f f e r e n c e s i n the point of view of mainland and i s l a n d . " I t would assume our p u b l i c debt..«. I t would give us a r a i l r o a d across the continent and a quick and S easy acess to Ottawa, New York and London." With such assur-ances i n sight i t would have been a f o l l y to d i s p l a y any l a c k of u n i t y w i t h i n the ranks. I t might presage events i n the future too much, an i n d i c a t i o n of the way i n which the r e -ceivers of the reward might f a l l to q u a r r e l l i n g amongst them-selves over the d i v i s i o n of the r e c e i p t s . Other provinces had unloaded t h e i r debts upon the Dominion. The l i g h t from the east offered immediate r e -l i e f . De Cosmos a p t l y expressed the p o s s i b i l i t i e s f o r de-T~. Ibid"'. 2c I b i d . p.21. Mr. Holbrook was a member f o r New Westminster, 3. I b i d , p, 2, 11. velopment once-the-province was f r e e from debt when he s a i d , " S i r , I believe i n the o l d adage t h a t , money makes the mare g o 3 V i c t o r i a n s eagerly a n t i c i p a t e d the day when B r i t i s h Columbia would enter Confederation, I t was s t r i c t l y a business p r o p o s i t i o n with them, "With Confederation we expect surplus cash, an overland r a i l w a y , a Graving Bock, and a large a d d i t i o n 2 to our population," The p o s s i b i l i t y of securing r a i l communication was an. appealing i n c e n t i v e and-many opinions were voiced along t h i s l i n e , "This Colony would be j u s t as much i s o l a t e d as ever a f t e r a paper union without a railway as one of the con-5 . d i t i o n s . " Speaking of the railway and S i r John A, Macdonald's part i n confederation, R,E, Gosnell says, He had an i n s i d e knowledge of what might lead to annexation to the United States, and there was more danger .:in*,.the s i t u a t i o n than people imagined then or now. Again, at that very time a group of c a p i t a l i s t s associated with the Northern P a c i f i c had planned to ex-tend that r a i l w a y through Manitoba and through the Middle West and B r i t i s h Columbia to and i n t o Alaska.(purchased by the United States from Russia i n 18670 Sir,John r e a l i z e d the danger of such an enterprise i n view of the long-dreamed-of Canadian t r a n s - c o n t i n e n t a l r a i l w a y , and he l o s t no time i n the 'round-i n g out of Confederation 1 i n order to f o r e -s t a l l any inroads from the United States. ®he best c i r c u m s t a n t i a l proof of that i s that when the delegates from B r i t i s h Columbia a r r i v e d at Ottawa, not withstanding that a railway was considered by them as out of the T~. I b i d , p, 16, 2, Standard, A p r i l 22, 1871. 5, Government Gazette, 1870, p. 15, question,, and had they been authorized to ask simply f o r a wagon-road, much to t h e i r sur-p r i s e they were met by a f u l l y matured pro-posal f o r a r a i l w a y , No wonder the people of B r i t i s h Columbia r e j o i c e d at the unexpected boon to be conferred upon them.l. in We cannot but help admire S i r John A, Kacdonald's scheme of 'rounding out Confederation' but had the f i n a l pro-posal , as embodied i n clause 11 of the Terms of Union, not been so premature i n regard to the time s p e c i f i e d f o r the beginning of railway c o n s t r u c t i o n , there might not have been recorded i n the h i s t o r y of Canada the p o l i t i c a l dodges between Ottawa and V i c t o r i a which had t h e i r repercussions i n regard to 2 railway a f f a i r s up to 1930, Governor Musgrave's Delegates as they v/ere termed by the B r i t i s h Colonist telegraphed the news of settlement of terms,-Great were the r e j o i c i n g s . Those terms were so mag-nanimous that an easterner of that time could only contemplate them with wonder. "We are compelled to say that the terms on which the M i n i s t r y has determined to b r i n g B r i t i s h Columbia i n t o the Union are monstrous and unparalled i n the h i s t o r y of 3 Canadian l e g i s l a t i o n . " The s p i r i t i n which they were offered seems almost as e x o t i c i n Canadian p o l i t i c s as the t a l e s of the gold rushes. 1. Gosnell, E.E., The Story of Confederation, B r i t i s h Columbia Archives, 1918, p. 95, 2. Report of the Royal Commission on Reconveyance of land to B r i t i s h Columbia, Ottawa, King's P r i n t e r , 1928. 3 Chapter Two "The Terminal of the Canadian P a c i f i c Railway at stake." Following the announcement of the agreed terms of union with Canada, De Cosmos pointed out that clause 11 of the terms d i d not define the terminus which he thought should be V i c t o r i a . The Government of the Dominion under-takes to secure the comrnencemnt simultaneously, w i t h i n two years from the date of Union, of the construction of a railway from the P a c i f i c t o -wards the Rocky Mountains, and from such point as may be selected, east of the Rocky Mountains, towards the P a c i f i c , to connect the seaboard of B r i t i s h Columbia with the Railway system of Canada, and, f u r t h e r , to secure the completion of such railway w i t h i n ten years from the date of the Union.1 " S h a l l the terminus of the railway be at V i c t o r i a and Esquimalt? To t h i s we u n h e s i t a t i n g l y answer yes. Ho other place w i l l s u i t V i c t o r i a n s or the people of Van-2 eouver Island." A f t e r c a s t i g a t i n g the B r i t i s h Columbia delegates to Ottawa f o r n e g l e c t i n g t h i s important matter De Cosmos assumed: To get the matter s e t t l e d i n our favor we have to take the question i n hand at the c i t y and d i s t r i c t e l e c t i o n s . . . . I t i s not question with us of engineers or money to construct the railway. Canada has to b u i l d i t , i f she wishes to get t h i s country. So l e t her f i n d the means but l e t us f i n d the terminus.3 From t h i s evolved the e l e c t i o n cry i n V i c t o r i a of "No t e r -1. Standing Orders of the l e g i s l a t i v e Assembly of B r i t i s h Columbia, 1930, p. 152. 2. Standard, October 17, 1870. De Cosmos was the e d i t o r of the Standard at t h i s time, 3. I b i d . 14. minus no Confederation."! As another a l t e r n a t i v e to securing the t e r -minus De Cosmos suggested that a V i c t o r i a to Nanaimo Railway-should be provided f o r i n the terms of union to connect with the t r a n s c o n t i n e n t a l railway. "Vancouver Island represents one-half of the c i v i l i z e d population and two-thirds of the r e a l i z e d wealth of the Colony, She has, therefore, a l e g i t i m a t e a w e l l founded r i g h t to demand that due consideration be 2 given i n the cons t r u c t i o n of the tr a n s - c o n t i n e n t a ! r a i l w a y , " The matter of the railway terminus was of great importance to V i c t o r i a , For V i c t o r i a n s the terminus meant a p o s i t i o n as a f i r s t - c l a s s c i t y , without i t nothing was more obvious than her p o s i t i o n as a second-class c i t y -she would cease to be the ch i e f commercial c i t y of B r i t i s h Columbia. The c i t i z e n s of V i c t o r i a met at the C i t y H a l l on October 25, 1870, with Mayor Trimble occupying the c h a i r . The Mayor t o l d the gathering that " I t ought to be em-bodied i n the r e s o l u t i o n that the railway s h a l l cross John-3 son S t r a i t s , i f found p r a c t i c a b l e , and i t ought to be made a 4 sine qua non i n the terms of Confederation," Other speakers expressed t h e i r favour "of. a r a i l r o a d connecting t h i s c i t y with the t r a n s - c o n t i n e n t a l r a i l w a y , by b u i l d i n g a l i n e from 1. Standard, October 26, 1870. 2. I b i d , 3 . i b i d , 4. I b i d . 15 V i c t o r i a to Nanaimo."1 The e n t i r e audience f e l t that " I f t h i s part of the country i s l e f t out i n the cold, i t ' w i l l be f a t a l 2 t o our i n t e r e s t s . " At a l a t e r meeting on October 29, 1870, the c i t i z e n s of V i c t o r i a endorsed the f o l l o w i n g r e s o l u t i o n : That although we are on the whole, w e l l s a t i s f i e d with the l i b e r a l s p i r i t evinced i n the Terms of Confederation, as proposed by the Dominion Governmentand-while we.highly appreciate the advantages of our forming part of the B r i t i s h N a t i o n . . . . i t i s , i n the opinion of t h i s meeting, most d e s i r a b l e , i n order to permanently s e t t l e so important a question, that the l o c a t i o n of the terminus of the Can-adian t r a n s - c o n t i n e n t a l railway, on the sea-board of B r i t i s h Columbia-to be considered . . i n t h i s connection as the southeastern coast of Vancouver Island-should be soon and " f i n a l l y determined upon. That the w e l l sheltered harbour of Esquimalt, e a s i l y a ccessible as i t i s at a l l seasons by day or nig h t , with i t s unsurpassed anchorage....has pre-eminent and indisputable s u p e r i o r i t y over any other point i n the colony, as the s i t e of the Western Terminus of the B r i t i s h North American Trans-Continental Railway.3 S e c t i o n a l r i v a l r y now sprang up between the mainland and the i s l a n d . The mainlanders denounced the assertions that V i c t o r i a should be the terminus of the Can-adian P a c i f i c Railway. New Westminster had already suffered a l o s s to V i c t o r i a ' s p o l i t i c a l influence and domination i n 4 the removal of the c a p i t a l and now that the terminus was apparently at stake, the mainlanders were determined not to l e t i t s l i p through t h e i r hands. At a p u b l i c meeting held i n 1. Standard, October 26, 1870. 2. I b i d , .3. Standard, October 31, 1870, 4. Supra, p. 5. lew Westminster, November 14, 1870, the f o l l o w i n g r e s o l u t i o n s were passed,: 1, That t h i s meeting of the inhabitants of the C i t y of New Westminster, most strongly j " deprecate the a g i t a t i o n at present c a r r i e d on by the people,and press of V i c t o r i a , regarding the terminus or route of the t r a n s - c o n t i n e n t a l ra i l w a y , b e l i e v i n g that same to be h u r t f u l to - the cause of Confederation, and tending to create s e c t i o n a l f e e l i n g which at t h i s important epoch i n the h i s t o r y of the colony ought to stop. g,. That the a c t i o n of the press and of the people of V i c t o r i a , i n assuming that V i c t o r i a or Esquimalt should be the terminus of the tr a n s - c o n t i n e n t a l r a i l w a y , i s not j u s t i f i e d by e i t h e r her geographical or commercial p o s i t i o n » or sustained by the people of the.colony gen-e r a l l y . '3, That we are p e r f e c t l y s a t i s f i e d w ith the Terms of Confederation as arranged by our dele-gates, f e e l i n g sure that the n a t u r a l advantages of the Eraser as the route of the trans-con-t i n e n t a l r a i lway w i l l not be overlooked. 4-*. That although t h i s meeting would w i l l i n g l y forward the c o n s t r u c t i o n of any railway l i k e -l y to be b e n e f i c i a l to the i n t e r e s t s of any p o r t i o n of the colony, yet they must respect-f u l l y but strongly urge upon His Excellency the Governor not to sanction the a c t i o n of the people of V i c t o r i a , as, i f s u c c e s s f u l l y , i t would, i n the opinion of t h i s meeting, tend to delay Confederation and misrepresent the -fe e l i n g s and opinions of the colony g e n e r a l l y , 5. That t h i s meeting strongly.urges upon the people of the Mainland to a s s i s t , by p u b l i c meetings i n deprecating the a g i t a t i o n at pres-ent c a r r i e d on i n V i c t o r i a regarding the t e r -minus or route of the railway b e l i e v i n g the same to be h u r t f u l to the cause of Confederation and i n j u r i o u s to the i n t e r e s t s of the main-land. 1 Whilst deprecating the moves of the V i c t o r i a n s to secure the terminus,".'the mainlanders undoubtedly made a b i d f o r i t themselves. The vigorousness of t h e i r attack can be a t t r i b u t e d to the f a c t that at that time V i c t o r i a had a 1. Mainland. Guardian, November 15, 1870, 17. l a r g e r number of white i n h a b i t a n t s , together with the dominant wealth and influence of the province. On December 1, 1870, a group of V i c t o r i a ' s c i t i z e n s presented Governor Musgrave with a p e t i t i o n which em-bodied the r e s o l u t i o n s passed at the meeting of October 29, 1 1870. The Governor was asked to transmit t h i s p e t i t i o n with a favourable recommendation to the Dominion Government. To the f i r s t request he consented but as i t was not from the e n t i r e 2 colony he would not endorse i t . Expectations of V i c t o r i a n s to include a r a i l -way from Nanaimo to V i c t o r i a i n the terms of union were some-what dampened when the f o l l o w i n g l e t t e r was received by Mus-grave i n answer to h i s communication concerning the V i c t o r i a p e t i t i o n . Your dispatch of the 5th, i n s t . , cover-ing p e t i t i o n as to the Railway Terminus from c e r t a i n inhabitants of Vancouver Island. The route of the P a c i f i c Railway can only be s e t t l e d a f t e r Confederation, and a f t e r e x p l o r a t i o n and survey by the Dominion Parliament i n which B r i t i s h Columbia w i l l be represented. I have no doubt that the i n t e r e s t of the whole Dominion and of Vancouver Island as a part thereof, w i l l be f u l l y considered i n the d e c i s i o n . The con-s t r u c t i o n of a Branch Railway on Vancouver Island, as asked f o r , can only then be properly con-sidered. (Signed) l i s g a r . 3 I t i s evident from t h i s l e t t e r that L i s g a r d i d not consider a V i c t o r i a to Ifenaimo Railway as part of the proposed t r a n s -1, Standard, November 30,. 1870. The deputation was made up of the f o l l o w i n g men; Dr. Tuzo, Dr. W.F. Tolmie, J.H. Turner, H. Natham, E. E r a n k l i n , E. F e l l , J.D. Pemberton and J.G. N o r r i s , 2. Standard, December 3, 1870. In the meantime the c i t i z e n s of New Westminster had sent a p e t i t i o n to Musgrave point-in g out that the V i c t o r i a p e t i t i o n d i d not represent the viewpoint of the e n t i r e colony. See AppendixA 18. co n t i n e n t a l l i n e , f o r he r e f e r s to the p e t i t i o n e d l i n e as a 'Branch 'Railway 1. This was the stand to be taken l a t e r by the Dominion Government i n the ensuing negotiations w i t h the province. In September of 1871, H. langevin, M i n i s t e r of P u b l i c Works i n the Federal Cabinet, a r r i v e d i n V i c t o r i a on an i n s p e c t i o n tour> I t a banquet given by the c i t i z e n s of V i c -t o r i a i n h i s honour, he dropped the f o l l o w i n g words from h i s speech, " I f the l i n e could be brought to your door, to Esqui-' malt-, to Barclay Sound or Bute I n l e t , be sure we would be most happy to do so." This must have been received with en-thusiasm by the anxious-waiting V i c t o r i a n s whose sentiments, . were no doubt much l i k e the f o l l o w i n g , "By the spring of 1873 we s h a l l see the navies at work,; and before the succeeding f a l l , hear the w h i s t l e of the i r o n horse s t a r t i n g from the • 3 terminus of Esquimalt," At the session of the Dominion Government f o r 4 the year 1872 De Cosmos continued h i s e f f o r t s to locate the 5 P a c i f i c terminus of the railway at Esquimalt, The v i t a l ques-t i o n of the, Canadian P a c i f i c Railway, came up f o r consideration i n May, During the course of the debate De Cosmos asked what the Dominion Government intended to do about the terminus. . Xangevin pointed out that i f the route to Esquimalt was T» Standard, September 2, 1871, 2, Standard, October 4, 1871, • >• 3, Standard, September 8, 1871., 4, De- Cosmos was el e c t e d i n the f i r s t f e d e r a l e l e c t i o n i n B r i t i s h Columbia as a representative from V i c t o r i a . 5, De Cosmos admitted i n 1878 that he owned considerable land sections around Bute I n l e t , Standard, Sept, 16, 1878, 6, Canadian Parliamentary Debates, 1872, p. 162, • 19. p r a c t i c a b l e the Dominion Government intended to use that as a terminus. De Cosmos thought that under any circumstances a railway should be b u i l t from V i c t o r i a to Nanaimo, langevin i n hi s r e p l y stated: "Should the railway be c a r r i e d to Burrard's I n l e t , a f e r r y w i l l be established and a l i n e w i l l be c a r r i e d 1 to Esquimalt as a part of the ra i l w a y , " Langevin's r e p l y i n view of the f a c t that survey p a r t i e s had not up to then ascertained the f i n a l route of the Canadian P a c i f i c was rather premature. His pronouncements only increased the s e c t i o n a l f e e l i n g between the i s l a n d and the mainland. The paper which had v i o u r o u s l y supported Esquimalt as the terminus, came f o r t h with the f o l l o w i n g , "We are aware that our Hew V/estminster neighbors are troubled with a kind of chronic jealousy towards V i c t o r i a , and hence they look with a f e e l i n g of undisguised envy at the c e r t a i n prospect of Esqui-2 malt being made the terminus of the Canadian P a c i f i c l i n e , " To t h i s the Mainland Guardian r e p l i e d : "Why are the Islanders -the V i c t o r i a n s i n p a r t i c u l a r so p e r t i n a c i o u s l y making them-selves disagreeable to Dominion Statesmen by asking an almost i m p o s s i b i l i t y , so f a r as praetieableness i s concerned,^ In October of 1872, De Cosmos accompanied S i r Sanford Fleming on an i n s p e c t i o n tour of Bute I n l e t , Speaking of the f a c t that the San Juan award had been l o s t , De Cosmos thought that both on m i l i t a r y and commercial grounds Esquimalt 4 should be the terminus. I t i s doubtful i f t h i s suggestion 1. I b i d , 2. Standard, June 3, 1872. 3. Mainland Guardian, June 6, 1872 4. Standard, October 17, 1872, so. c a r r i e d any weight with Fleming "because he makes no mention of - 1 i t i n h i s survey re p o r t s . Returning to Ottawa, the i n t r e p i d De Cosmos againipressed the question of the western terminus, to which S i r John A. Macdonald r e p l i e d that the pledge of the Government l a s t session to make Esquimalt the P a c i f i c Terminus, would be r i g i d l y c a r r i e d out? P r i o r to h i s r e t u r n to V i c t o r i a , Be Cosmos telegraphed the Standard that an o r d e r - i n - c o u n c i l had been i i s s u e d , f i x i n g Esquimalt as the terminus of the Canadian P a c i f i c 3 Railway. The o r d e r - i n - c o u n c i l read as f o l l o w s : Report of a Committee of the Honourable the P r i v y Council, approved by His Excellency the Governor-General i n Council on the 7th. June, 1875. The Committee of the Council having had before them the memorandum of the 29th, May l a s t , from the Chief Engineer of the Canadian P a c i f i c Railway,...beg leave to recommend to Your Excellency that Esquimalt, i n Vaneouver Is l a n d , be f i x e d as the Terminus of the Canadian P a c i f i c Railway; and that a l i n e of Railway be located between the Har-bour of Esquimalt and Seymour Harrows, on the sai d Island. The Committee f u r t h e r recommend that a p p l i c a t i o n be made,...for the conveyance to the Dominion Government, i n t r u s t , according to, the 11th. paragraph of the Terms of Agree-ment of Union, of a s t r i p of land, Twenty Mi l e s i n width,... An Order of the Lieutennant-Governor of B r i t i s h Columbia....will be necessary, i n order to^operate as a s u f f i c i e n t conveyance and r e s e r v a t i o n of the sai d land to a n i f M s the Dominion Government, (Signed) W.A. Himsworth, Clerk, P r i v y Council.4 1.Fleming, S., op. c i t . pp.5-44. Appendix A. 2,Standard, A p r i l 5, 1873, The Debates of the Dominion House of Commons are not published f o r the two sessions of 1873 and the one of . J L8 74, 3.Standard, JurielS, 1873 4 . B r i t i s h Columbia Sessional Papers, 1873-74. p . l . . 21 e> The f i g h t f o r the terminus had apparently been achieved. I t was a great triumph f o r V i c t o r i a with such a p r i z e at stake, a p r i z e which to V i c t o r i a n s meant the c i t y ' s undoubted supremacy as the Queen C i t y of Western Canada, In t h i s a t -mosphere of excitement, unbounded enthusiasm, and intense s e c t i o n a l r i v a l r y the thought of b r i d g i n g Seymour Narrows (was) dwindled to i n s i g n i f i c a n t proportions, V i c t o r i a n s were then l i v i n g i n an age when r a i l r o a d engineering i n the United States was performing mechanical f e a t s unheard and untold of f i f t y years before. De Cosmos, who returned to V i c t o r i a with Marcus 1 Smith, was the reeepient of many congratulations. There was much excitement and speculation as to the date and precise spot, when by a formal ceremony Esquimalt would be declared the terminus. On the morning of the long and most anxiously looked f o r day nobody knew, what was what, or, who was who. On the afternoon of J u l y 17, 1875, Marcus Smith accompanied by H.D. Tiedman, C,E. drove the f i r s t stake of the l o c a t i o n survey f o r 2 the I s l a n d s e c t i o n of the Canadian P a c i f i c Railway. The whole thi n g was so unknown to the p u b l i c that many V i c t o r i a n s spent the day climbing over the rocks of Esquimalt Harbour i n search of the o f f i c i a l s who were i n charge of the ceremony. The same secrecy shrouded the day when the f i r s t sod was to be turned, which was on July 19, 1873, the ceremony being performed by 4 the same o f f i c i a l s . The Standard, i n rather a disappointed 1. Marcus Smith was i n charge of the Western D i v i s i o n of the Canadian P a c i f i c Surveys. 2. Standard, Ju l y 18, 1873. 3. I b i d , 4. B r i t i s h C o l o n i s t , J u l y 20, 1873. 22. the same o f f i c i a l s . 1 The Standard i n rather a disappointed tone reported: " I t i s much regretted that no p u b l i c demonstra-2 t i o n was made to celebrate an event of such great magnitude." » Decl a r i n g Esquimalt as the terminus appears ass ras a mere f o r m a l i t y on the part of Macdonald Ts government to meet t e c h n i c a l o b l i g a t i o n s as to the s p e c i f i e d time on which 3 r a i l w a y construction was to s t a r t i n B r i t i s h Columbia. Many people on the i s l a n d at that time did b e l i e v e that the r a i l -4 way could be brought across Seymour Narrows and there i s some p o s s i b i l i t y that Macdonald might l i k e w i s e have shared t h i s con-ception, and i f so h i s a c t i o n was sincere. On the other hand the l i n e from Bute I n l e t to Seymour Narrows had'not been thoroughly surveyed, the f e a s i b i l i t y of bridges across the s t r a i t s had not been ascertained and Bute I n l e t on the main-land was a poor harbour. Taking these important d e t a i l s into consideration Macdonald Ts a c t i o n i s wholly i n d e f e n s i b l e . In p l a c i n g the terminus at Esquimalt he had s a t i s f i e d the people of V i c t o r i a , who at that time c o n t r o l l e d the p o l i t i c a l i n -fluence of the province, and i t i s almost a c e r t a i n t y that he d i d not want the province of B r i t i s h Columbia a c c u s i n g h i s government of a breach of the terms of union, when he was be-coming involved i n the P a c i f i c Scandal, The o r d e r - i n - c o u n c i l of June 7, 1873, was an unwise commitment f o r B r i t i s h Columbia now possessed s u s t a n t i a l ground upon which to base a g i t a t i o n against Ottawa i n the very near f u t u r e . 1. Standard, J u l y 21, 1873. 2. I b i d . 3. J u l y 20, 1873, i s the i n t e r p r e t a t i o n of "two years from'the date of Union," 4. Mr. John Coburn, C h u r c h i l l Street, Vancouver, was l i v i n g on the i s l a n d during the construction period of the E&N. He s a i d that t h i s was a prevalent coneeption of the i s l a n d e r s . Chapter Three "The Carnarvon Terms of 1874, abont which surged the p o l i t i c a l "battles of the next decade" Previous to the passing of the order4in-douncil of June 7, 1,873, the problem of securing a railway on Vancouver Island was taken up by the people of V i c t o r i a , l e d by Amor De Cosmos. The government of B r i t i s h Columbia up to t h i s time, as we have seen, had l i t t l e to do with the I s l a n d Railway question. However, once the above or d e r - i n - c o u n c i l was issued, the. problem, of securing a railway from Esquimalt to Nanaimo moved i n t o the f i e l d of B r i t i s h Columbian p o l i t i c s . • 1 The sequel to the P a c i f i c Scandal was the overthrow of the Macdonald ad m i n i s t r a t i o n , Mackenzie i n h e r i t i n g the rather unenviable and embarassing problem of the P a c i f i c Railway i n which the Esquimalt and Nanaimo Railway featured to a large extent,, Despite the overwhelming v i c t o r y of the L i b e r a l party i n the general e l e c t i o n s the government was handicapped i n many ways. In opposition the L i b e r a l s had not evolved a d e f i n i t e programme upon which a l l members could agree, The only bond which held the party together was a common d i s t r u s t of Mac-donald . Mackenzie who had assumed the duties of head of the de-partment of p u b l i c works soon became so engrossed i n the 1, E a r l y i n the session of 1873, L.S, Huntington, a L i b e r a l member from Shefford, Quebec, rose d r a m a t i c a l l y from h i s seat i n the Commons and announced that he had damaging evidence against the government to the e f f e c t that A l l a n and the United States c a p i t a l i s t s associated with him had con-t r i b u t e d huge sums to the Conservative party coffers i n order to influence the e l e c t i o n of 1872. On November 5, 1873, Macdonald resigned; two days l a t e r the personnel of the Mac-kenzie government was announced. Then followed the elections,, Leggo, W,, H i s t o r y of the Administration of the E a r l of D u f f e r i n i n Canada, Montreal, l o v e l l Co,, 1878. pp. 119-22. 24. i n the attempt to administer the maniflo/d duties of h i s de-partment e f f i c i e n t l y and honestly that he neglected to keep i n touch with the currents of p u b l i c opinion, F i n a l l y , the l i b e r a l s had the misfortune to assume o f f i c e when Canada was s u f f e r i n g from a severe economic depression, beginning i n 1873. We have already seen the circumstances by which Esquimalt was made the terminus of the P a c i f i c Railway by the o r d e r - i n - c o u n c i l of June 7, 1873, which also stated: The Committee f u r t h e r recommend that a p p l i c a t i o n immediately be made, by Despatch to the Lieutenant-Governor of B r i t i s h Columbia, f o r the conveyance to the Dominion Government i n t r u s t , according to the 11th paragraph of the Terms of Agreement of Union, of a s t r i p of land, Twenty M i l e s i n width, along the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt. An Order of the Lieutenant-Governor of B r i t i s h Columbia i n Council appropriating t h i s t r a c t of land, i n furtherance of the con-s t r u c t i o n of the sa i d Railway, w i l l be necessary, i n order to operate as a s u f f i c i e n t conveyance - and:reservation of the said land to and f o r the Dominion Government.1 The government of B r i t i s h Columbia d i d not comply with t h i s part of the o r d e r - i n - c o u n c i l . The Attorney-general f o r the l o c a l government, George A. Walkem, brought h i s f o r e n s i c t r a i n -ing to bear on the wording of the o r d e r - i n - c o u n c i l of June 7, 1873. He pointed out that according to clause 11, of the terms of union, the land to be appropriated by the Dominion Govern-ment f o r railway purposes was to be selected f o r twenty miles on each side of the railway. As no railway l i n e had been surveyed on Vancouver Island, Walkem contended that such a conveyance of land as the Dominion Government asked f o r was impossible. This report was sent ot the Dominion Government. 1. B r i t i s h Columbia Sessional Papers, 1873-74. p . l . -2 5 & The Dominion Government r e p l i e d : The P r i v y Council have read with great a t t e n t i o n , the report of the Executive Council of B r i t i s h Columbia....and beg to submit, that so long as the land which i s r e f e r r e d to i s not » a l i e n a t e d from the Crown, but held under reser-1 vation,...the object of the Dominion Government w i l l be obtained, that object being s i n g l y that when the Railway s h a l l come to be constructed, the land i n question s h a l l be at the d i s p o s i t i o n of the Government of the Dominion, f o r the pur-poses l a i d down i n the 11th. Section of the Terms of Union with B r i t i s h Columbia.1 Apparently B r i t i s h Columbia was t r y i n g to force the Dominion Government i n t o c a r r y i n g out a survey of a l i n e of railway on Vancouver Island, f o r on r e c e i v i n g the above despatch which avoided the necessity of a railway survey, the l o c a l government asked "that the Dominion Government be re-s p e c t f u l l y urged to at once define, by survey, the land they 2 propose claiming on the East Coast of Vancouver i s l a n d " . I f B r i t i s h Columbia could have secured a railway survey on the i s l a n d and conveyed the land i n question o u t r i g h t , that act would have bound the Dominion Government to the construction of t h i s railway as an e s s e n t i a l part of the terms, and from a l e g a l i n t e r p r e t a t i o n , any f a i l u r e i n constructing the l i n e between Esquimalt and Seymour Narrows would have e n t i t l e d the province of B r i t i s h Columbia to a s u b s t a n t i a l compensation 3 f o r damages, -l 7 B r i t i s h Columbia Sessional Papers, 1873-74, p.5 , 2, I b i d , 3, Gosnell, R,E., op. c i t . p.6 5 . states: "Had the government a c t u a l l y conveyed the land i n question to the Dominion, that act would have co n s t i t u t e d a f i r m contract." But a railway survey had not yet been made and such a conveyance as Gosnell describes, would not have been i n accordance wit h clause 11 of the terms of union, from which i t follows 'that a mere conveyance of the land would not have con-s t i t u t e d a'firm contract'» 26, To t h i s e a r l y i n d i c a t i o n of railway trouble 1 was added the "other bugbear of e a r l y p r o v i n c i a l p o l i t i c s " , the Graving Dock, To give e f f e c t to an arrangement whereby De Cosmos had secured f i n a n c i a l arrangements f o r the Graving Dock .which were d i f f e r e n t to those provided f o r i n the terms of union, Walkem gave notice on February 5, 1874, of a b i l l to amend a r t i c l e s two and twelve of the terms of union, Humphreys, seconded by McCreight, moved that " i n the opinion of t h i s House i t i s n e i t h e r expedient or wise to a l t e r the terms of union 2 without a d i r e c t reference to the people," At once p u b l i c opinion was s t i r r e d a so a f r a i d were the people that any l e g i s -l a t i o n i n t h i s d i r e c t i o n might weaken the binding e f f e c t of clause 11, of the terms of union. Even the i n s e r t i o n of a d r a s t i c saving clav.se i n the act, which provided that the act should not have any force unless a saving clause i n the same 3 words were in s e r t e d i n the corresponding Dominion statute, d i d not quiet them, V i c t o r i a n s , ever p o l i t i c a l l y a l e r t , assembled at a p u b l i c meeting. Among those present were such i n f l u e n t i a l men as Dr, J,S. Helracken, Dr, W.F. Tolmie, Senator Macdonald, Mr, T. Drake, and many others. The meeting passed the f o l l o w -ing r e s o l u t i o n . This meeting deems i t unadvisable to-en&er i n t o any negotiations f o r c a p i t a l i z i n g . -the Dry Dock guarantee or to borrow money from the Dominion Government u n t i l the scheme of the Mackenzie M i n i s t r y f o r the r e l a x a t i o n 1. Howay, F.W,, o p . c i t . p,355. 2. Journals, l e g i s l a t i v e Assembly of B r i t i s h Columbia, 1873-74. p,37 9 For 20, Against 3, 3. B r i t i s h Columbia Statutes, 1874. No. 1. 27, of the Terms of Union s h a l l be made known. And f u r t h e r , that i t i s d i s t i n c t l y opposed to the P r o v i n c i a l Government i n t e r f e r i n g i n any manner with the Terms, or agreeing to any new terms offered by the Mackenzie Government u n t i l the same s h a l l have been submitted to the people ;* f o r adoption,! The cause f o r t h i s i n c i d e n t was the knowledge on the part of the people that Mackenzie was seeking a r e l a x a t i o n of the terms of union. This was to them bad enough, but added to t h i s was the f a c t that Mackenzie had as yet not come f o r -ward w i t h any d e f i n i t e statements i n regard to the above, The tension of the Islanders was r a p i d l y assuming an.antagonistic a t t i t u d e to thexmew leader of the Canadian government. What would happen to the Is l a n d Railway? The f i r s t p u b l i c announcement of Mackenzie's P a c i f i c Railway p o l i c y was made i n a speech at Sarnia l a t e i n 2 November, 1873, Although vague, i t made c l e a r what was cer-t a i n l y unavoidable, that he intended to seek a mo d i f i c a t i o n of the terms of union. This was c l e a r l y expressed s h o r t l y a f t e r i n a speech of Mackenzie's to the e l e c t o r s of Lambton. We w i l l endeavour to arrange with B r i t i s h Columbia f o r such a r e l a x a t i o n of the terms as may give time f o r the completion of the surveys and the a c q u i s i t i o n of information necessary to the l o c a t i o n of the l i n e , 3 B r i t i s h Columbia now became suspicious rather than confiding, : Such was the f e e l i n g , a f e e l i n g i n i m i c a l to any 1, B r i t i s h C o l o n i s t , February 7, 1874, 2, Globe, Toronto, November 26, 1873. 3, B r i t i s h C o l o n i s t , January 18, 1874, 28, successful diplomatic undertaking, when Mackenzie d e s i r i n g to avoid tedious and p o s s i b l y u n s a t i s f a c t o r y correspondence appointed on February 19, 1874, Mr. J.D. Edgar of Toronto to act a*s a t r u s t e d agent to the province! Edgar was furnished with l e t t e r s of i n t r o -2 duction, one to the Lieutenant-Governor and the other to 3 Walkem, the leader of the p r o v i n c i a l government, Edgar's i n -s t r u c t i o n s i n regard to the i s l a n d railway were as f o l l o w s : You w i l l remember that the Dominion i s bound to reach the 'seaboard of the P a c i f i c ' only, not V i c t o r i a or Esquimalt.... You w i l l take s p e c i a l care not to admit i t i n any way that we are bound to b u i l d the railway to Esquimalt or any other place on the Island; and while you do not at a l l threaten not to b u i l d i t there, to l e t them understand that t h i s i s wholly and purely a concession and that i t s construction must be contigent on a reasonable course being pursued regarding other parts of the scheme,3 Edgar's contact with Walkem commenced on 4 March 9, 1874, Walkem introducing Edgar to h i s colleagues "as 5 the representative of the Canadian Government," Edgar at once s t a r t e d to f e e l out the opinion of the government i n regard to changes i n the railway clause of the terms , but he soon be-came aware that a profound anxiety was manifested by Walkem I , Mackenzie to Edgar, February 19, 1874, Mackenzie Papers, L e t t e r Book 11, 110, Mackenzie had asked A,Gait to act f o r the government, "But f o r the meeting of Parliament i n four weeks, some member of the Government would have v i s i t e d your Province," B r i t i s h Columbia Sessional Papers, 1875, p.513, 2* This l e t t e r was never d e l i v e r e d . Mackenzie was aware of t h i s on March 24, 1874, as can be seen from h i s statement of t h i s date i n the House of Commons, Cf. Canadian Parliament-ary Debates, 1875, p. 1002. 3, Mackenzie to Edgar, February 19, 1874, Mackenzie Papers, L e t t e r Book 11, 110, 4, On t h i s date Edgar gave Walkem h i s l e t t e r of i n t r o d u c t i o n from Mackenzie. Leggo, V/., op, c i t , p.331, 5, I b i d , 29, and h i s colleagues to a s c e r t a i n i f the Canadian M i n i s t r y would propose to Parliament to adopt the words of the p r o v i s i o passed "by the l o c a l l e g i s l a t u r e i n regard^ to the Dry Dock, > When I sought to get from them some proposals or suggestions as to t h e i r terms of concessions that should be made to B r i t i s h Columbia,, i n consideration of a change i n the railway clause, I was c o n t i n u a l l y met by an urgent i n q u i r y as to what was to be done about the Dry-Dock arrangement,1 The Dominion Government r e p l i e d that they would not adopt the 2 language of the Dry Dock clause, at which the l o c a l m i n i s t e r s appeared more o b s t r u c t i v e . l o c a l exigencies alone were apparent-3 l y determining Walkem's course i n these negotiations. The people were w e l l aware that Edgar was f e e l -i n g the pulse of B r i t i s h Columbia with a view to a s c e r t a i n i n g the precise amount of sseHaisatlon she would stand. A great deal of conjecture was made as to what Edgar was seeking to bring about, consequent on i n q u i r i e s made by him, and remarks dropped. The mystery surrounding the negotiations was not appreciated, "This p o l i c y of reticence and abstention i s r e a l l y 4 becoming i n t o l e r a b l e , " To the people i t seemed impossible to t e l l which thimble the pea was under, T, leggo. W,, op, c i t , p.334, 2".': lb i d , 5, I t should be noted here that although B r i t i s h Columbia had entered Confederation, the l o c a l governments at t h i s time d i d not assume any d e f i n i t e party alignments, There were no c l e a r cut party platforms and members were elected more on a personal p r i n c i p l e b a s i s . The formation of a mi n i s t r y was one of personal l i k i n g rather than a d e f i n i t e programme. I t can be r e a d i l y seen that the s t a b i l i t y of such a government could be e a s i l y shaken by the withdrawal of any member who might form an opposition or oppositions. Hence the short l i f e of the ea r l y B r i t i s h Columbia govern-ments. The formation of party governments i n B r i t i s h Columbia dates from the S i r E, McBride government,:].903. 4. B r i t i s h C o l o n i s t , A p r i l 15, 1874. 30. Further attempts "by Edgar to gain the views of the l o c a l m i n i s t r y on the railway question met with l i t t l e success. The m i n i s t r y p e r s i s t e d that next year, or some future time, - should "be awaited f o r the making of any such pr o p o s i t i o n s , and they were p a r t i c u l a r l y c a r e f u l to avoid saying what eon-cessions i n t h e i r opinion would be acceptable to the Province 1 i n l i e u of the o r i g i n a l terms. A c t i n g on the advice of Mac-2 kenzie, Edgar submitted i n w r i t i n g a long document to the government of B r i t i s h Columbia, o f f e r i n g the immediate con-s t r u c t i o n of the Esquimalt and Kanaimo Railway, the l o c a t i o n , 3 as soon as possible of the l i n e on the mainland. Walkem re-fused to put t h i s proposal before h i s government. I am not i n a p o s i t i o n to advise His Excellency the Lieutenant-Governor i n Council to t r e a t such proposals o f f i c i a l l y , nor can I tender such advice u n t i l I s h a l l have been informed that you have been s p e c i a l l y accredited to act i n t h i s matter as the Agent of the General Government, and that they w i l l con-s i d e r your acts or negotiations i n t h i s matter binding upon them.4 This was a p e c u l i a r communication on WalkemTs part and displayed a complete v o l t e face a f t e r he had recognized Edgar as a Dominion agent f o r two months. Edgar r e p l i e d to t h i s l e t t e r as f o l l o w s : "You have, however, done me the honour of assuming that my statement was i n c o r r e c t and that I am act-5 i n g without a u t h o r i t y and without i n s t r u c t i o n s . " To the Pro-6 v i n c i a l i n q u i r y as to whether Edgar's proposals could be con-1. Leggo. W., op. c i t . p. 336. 2. I b i d . 3. B r i t i s h Columbia Sessional Papers, 1875. p.514. 4. I b i d . 5. I b i d . . . 6. Truteh to Secretary of State, Ottawa, May 18, 1874. B r i t i s h Columbia Sessional Papers, 187 5. p. 513. 31 p sidered as binding on the part.of the Dominion Government, the Lieutenant-Governor was informed by Mackenzie as f o l l o w s : 1 . " I r e f e r M i n i s t r y to my l e t t e r to Mr. Edgar, which s u f f i c i e n t -l y i n d i c a t e d h i s mission, and which they recognized. He i s now 2 • r e c a l l e d , and I await h i s r e t u r n and reports." The Edgar mission had f a i l e d , that i s , i f i t s object was to secure a def-i n i t e r e l a x a t i o n of clause 11 of the terms. Both Mackenzie and Walkem seemed to be s a t i s -f i e d , with the impasse which had been reached. Mackenzie had taken the i n i t i a l step to solve the railway d i f f i c u l t y , but i t had f a i l e d . A f t e r knocking at the door of B r i t i s h Columbia he had been refused. He could now wait, a s i t u a t i o n most advant-ageous to him. Walkem on h i s part had sidetracked an awkward p o s i t i o n , f o r had he accepted or rejected the proposals, he would have i m p e r i l l e d his-government which, though strong i n 3 the house, was not nearly so stron°: i n the country."They (the 4 m i n i s t r y ) are a f r a i d of an appeal to the people." This was the kernel of Walkem1s p o s i t i o n . I t was WalkemTs t u r n to knock at the door of e i t h e r the Dominion or Imperial Government. He chose to approach the l a t t e r . I t i s useless to enquire minutely into the 5 reasons f o r the f i a s c o , but before leaving t h i s incident an 1. B r i t i s h Columbia Sessional Papers, 1875. p. 516. 2. Ib i d . 3. Ho way, E.W., op. eit-V p. 361. 4. B r i t i s h C o l o n i s t , May 12, 1874. On March 2, a r e s o l u t i o n was passed i n the House d e c l a r i n g that any change i n the terms would have to be r a t i f i e d by the people. Walkem knew that the time was not p r o p i t i o u s f o r h i s government to go to the country, 5. "Mr. Edgar showed c o n c l u s i v e l y on t h i s occasion that he was never intended f o r a d i p l o m a t i s t . " Stewart,G., Canada under the A d m i n i s t r a t i o n of the E a r l of D u f f e r i n , Toronto, Rose-B e l f o r d P u b l i s h i n g Company, 1878, p.355, 32 © examination of Mackenzie's i n s t r u c t i o n s to Edgar do not appear very d e f i n i t e i n regard to time limits'!" "To commence con-s t r u c t i o n from Esquimalt to Nanaimo immediately, and to push t h a t , p o r t i o n of Railway on to completion, with the utmost r v i g o r , and i n the shortest time p r a c t i c a b l e . ^ The wording i n one.part almost approaches i n t i m i d a t i o n . You w i l l take s p e c i a l care not to admit that we are bound to b u i l d the r a i l -way to Esquimalt....and while you do not at a l l threaten not to b u i l d i t there, to l e t them understand that t h i s i s wholly and purely a concession and i t s construction must be eontigent on a reasonable course being pur-sued regarding other parts of the scheme,3 What r i g h t had Mackenzie, who had repudiated a l l l i a b i l i t y to 4 construct the Esquimalt and Nanaimo Railway, to o f f e r the people on Vancouver Island a railway? The f o l l o w i n g comment contains the answer. "The o f f e r to construct a l i n e of r a i l -way between Esquimalt and Nanaimo was simply intended as a 5 b a i t to secure the acquiescence of Vancouver Islanders." Mackenzie's p o s i t i o n which had been strengthened by Walkem's conduct was now destroyed i n an un-6 expected manner. Walkem, forced to move, was appointed to make an appeal to the Imperial Government f o r r e c t i f i c a t i o n of the grievances of h i s province. The t r a d i t i o n of ne-17 "However p'remptory 'the shortest time p r a c t i c a b l e ' may sound we confess that we should prefer to have a s p e c i f i e d period f o r completion," C o l o n i s t , M a y l l , 1874, This was an important consideration f o r the Islanders, 2. B r i t i s h Columbia Sessional Papers, 1875, p. 515, 3. Mackenzie to Edgar, February 19, 1874, Mackenzie Papers, l e t t e r Book 11, 110, 4. Cf. Canadian Parliamentary Debates, 1875. p.544. 5. Standard, J u l y 22, 1874, 6. Trutch to Secretary of State, J u n e l l , 1874, B r i t i s h Columbia Sessional Papers, p. 490, 33, g o t i a t i o n with Downing St r e e t , f o r settlement of extra-pro-v i n c i a l questions was s t i l l strong i n a l l the p r o v i n c i a l c a p i t a l s , f o r the Dominion was l e s s than seven years o l d . More-over .lord Carnarvon was not a man to break with t h i s t r a d i t i o n , .for he was a convinced I m p e r i a l i s t , who possessed a large fund 1 of knowledge about the Canadian P a c i f i c Railway. I t was w e l l known that the Islanders favotired the Bute I n l e t route f o r the P a c i f i c Railway, and i f that route had been c e r t a i n of adoption, a g i t a t i o n f o r the Esquimalt and Nanaimo Railway would have been without meaning. But of course 2 there was no c e r t a i n t y , and the Esquimalt and Nanaimo Railway was urged because i t s c o n s t r u c t i o n would, so to' speak, commit the Dominion to the Bute I n l e t route. And even i f i t d i d not -even i f Burrard I n l e t should become the terminus - the Islanders woulg. at l e a s t have had the Esquimalt and Nanaimo l i n e instead of r e c e i v i n g as i t s p o r t i o n only a ferry./servlce between the 3 mainland and V i c t o r i a . In a l l the arguments the order-in-council of June 7, 1873, was assumed to contain a promise as binding as 4 clause 11 of the terms of union i t s e l f . Before Walkem l e f t f o r England the l o c a l government drew up a lengthy memorial to the Queen. I t set f o r t h i n great d e t a i l the h i s t o r y of the d i f f i c u l t y a r i s i n g out of s e c t i o n 11 of the terms of union. The s e l e c t i o n of Esquimalt as 1. Cf. l o r d Carnarvon's address on " C o n s t i t u t i o n a l Relations of the colonies with Great B r i t a i n , " Herbert, R., Speeches on Canadian A f f a i r s , London, J . Murray, 1902. pp. 194-222, 2. Fleming, S., op. c i t , p, 73. 3. I b i d . •. , 4. I t i s evident at t h i s point that the e f f o r t s of the B r i o i s h Columbia government to secure a railway from Esquimalt to Nanaimo were influenced by p o l i t i c a l pressure from the Islanders, The Cariboo members of the government also gave t h e i r support to such a measure, f o r i f the railway was to cross Seymour Harrows, i t would have to pass through t h e i r country. 34, the terminus was mentioned and the r e s e r v a t i o n at the request of the Dominion of a s t r i p of valuable land twenty miles i n width, containing about t h i r t y - t w o hundred square miles. The various protests made and the scant courtesy they had received .were then d e t a i l e d , T h e h i s t o r y of Edgar 1s mission followed. I t was submitted that the province had f u l f i l l e d her part of the agreement, but that the Dominion had not attempted to l i v e up to her part of the bargain! Before t h i s p e t i t i o n had reached Carnarvon and without any preliminary c o n s u l t a t i o n with the Dominion Government, the C o l o n i a l Secretary offered h i s ser-2 v i c e s as an a r b i t r a t o r , on c o n d i t i o n that h i s d e c i s i o n "what-ever i t may be, s h a l l be accepted without any question or 3 • demur," Mackenzie, wired at once i n words which Car-narvon characterized as c u r t , that the revive re "no differences 4 to submit to a r b i t r a t i o n , " Apparently from the outset, Car-narvon's a r b i t r a t i o n was not welcomed by Mackenzie, Acceptance of a r b i t r a t i o n would take c o n t r o l of the negotiations out of the hands of h i s m i n i s t r y . I t d i d not seem proper that a sec-r e t a r y of state should enter into a quarrel between the Federal and P r o v i n c i a l Governments, What about the c o n s t i t u t i o n a l p o s i t i o n of the new Dominion? On h i s way to London, Walkem v i s i t e d Ottawa 1, B r i t i s h Columbia Sessional Papers, 1875, pp. 493-499, 2, B r i t i s h Columbia Sessional Papers, 1875, p. 528, W, Maxwell thi n k s that D u f f e r i n i n s p i r e d t h i s a c t i o n although he could f i n d no d i r e c t evidence to prove i t . However G.M. Sproat, the agent f o r B r i t i s h Columbia i n London, wrote able l e t t e r s on June 16, 1874, to Carnarvon suggesting h i s i n t e r v e n t i o n . 3. Carnarvon to D u f f e r i n , June 18, 1874. Message 12. 4. Maxwell, V/., op, c i t . p. 369, 35, i n order to receive c r e d e n t i a l s to take to England, While wait-in g f o r these c r e d e n t i a l s , Walkem made c e r t a i n overtures to Mackenzie, of which the f o l l o w i n g i s an account of what trans-pired,,. You c a l l e d on me on Monday morning, 13th. i n s t a n t ( J u l y ) , and informed me that you proposed leaving that day f o r England,. ..you t o l d me you would "be very glad not to —, England at a l l , and i f the Government would only consent to commence the construction of the railway on Vancouver Island you would at once retu r n to B r i t i s h Columbia,., I remarked to you that I had already proposed to do what you suggested through Edgar, and i t had been declined, whereupon y o u said that there were evident reasons f o r that which I could e a s i l y understand, I then asked you i f you had any representations to make, to submit them i n the shape of a formal p r o p o s i t i o n i n w r i t i n g , ! You stated that you would make a w r i t t e n p r o p o s i t i o n , to the e f f e c t that i f the road on the Island were commenced and prosecuted immediately you had no doubt that the people of B r i t i s h Columbia would be s a t i s f i e d , and you would not go on your mission to England,,.,I then said that you had better send me the formal p r o p o s i t i o n at once, and I would consult my colleagues and communicate with you immediately. You with-drew at once, f o r the purpose of preparing your p r o p o s i t i o n , which p r o p o s i t i o n you have not yet submitted.2 Apparently Walkem was not so b e l l i g e r e n t now and h i s conduct i n t h i s instance probably strengthened Mackenzie's b e l i e f that the Edgar mission had f a i l e d because of p o l i t i c a l exigencies i n B r i t i s h Columbia. The overtures l e d nowhere and Walkem l e f t f o r England, In a memorial:.to Carnarvon,which d i d not ex-press a maximum of thought i n a minum of words, Walkem pre-1. Always cautious, Mackenzie had probably been made doubly so by his' d i s t r u s t of Walkem, 2, Mackenzie Papers, l e t t e r Book 1, 524, 36. sented the case f o r h i s province and while he could c l e a r l y 1 demonstrate that the Dominion had f a l l e n short of i t s promises, 2 yet, being held down by the r e s o l u t i o n of h i s government, he could.not state what terms would be acceptable to B r i t i s h .Columbia. The Dominion Government r e p l i e d to the ac-cusations of B r i t i s h Columbia "that nothing i s being done by the Dominion -Government towards commencing and pushing on a 3 railway from Esquimalt to Nanaimo" by s t a t i n g that "the Dominic has no engagement to b u i l d such a railway, and therefore there can be no just complaint that i t i s not commenced, The con-4 s t r u c t i o n of such a railway was offered only as compensation," I t i s rather d i f f i c u l t to understand on what basis Mackenzie could o f f e r the Islanders a railway as compensation f o r delay of the l i n e on the mainland. I f as he asserted there was no o b l i g a t i o n to b u i l d a l i n e on the i s l a n d then why d i d he o f f e r .5 t h e - l o c a l government t h i s l i n e as compensation? Lord Carnarvon, a f t e r devoting a great deal of time and c a r e f u l i n v e s t i g a t i o n to the questions at issue be-tween B r i t i s h Columbia and the Dominion, a r r i v e d at the fol l o w -ing conclusion i n regard to the Esquimalt and Nanaimo Railway, "That the s e c t i o n of the railway from Esquimalt to Nanaimo 5 should.be begun at once." B r i t i s h Columbia objected that no 1. B r i t i s h Columbia Sessional Papers, 1875, pp.529-537, 2.Supra p, 26, 3. B r i t i s h Columbia Sessional Papers, 1875, p.530. 4. B r i t i s h Columbia Sessional Papers, 1875. p, 628, 5. While Mackenzie i s u s u a l l y regarded as a man of downright honesty-,' h i s p o l i c y i n t h i s instance was much l i k e that of Macdonald-l!s,, .who played p o l i t i c s c o n s i s t e n t l y . The o f f e r of the Esquimalt and Nanaimo Railway was made to the Islanders i n an e f f o r t to secure t h e i r acquiescence. 37. d e f i n i t e p r o v i s i o n was made f o r the extension of the railway beyond Esquimalt to Nanaimo, and there was no time l i m i t f i x e d f o r i t s construction. On November 17, 1874, Carnarvon wrote D u f f e r i n the f o l l o w i n g settlement. "That the railway from 1 .Esquimalt to Nanaimo s h a l l be commenced as soon as p o s s i b l e , " The Dominion G-oveminent had been assembled f o r a month when Mackenzie gave a statement about the P a c i f i c Railway, touching b r i e f l y on the Carnarvon negotiations? The only p o r t i o n of the Carnarvon terms which Mackenzie proposed to submit to parliament f o r s p e c i f i c a c t i o n had to do with the 3 Esquimalt and Nanaimo Railway. On March 19, 1875, Mackenzie asked leave to introduce a b i l l e n t i t l e d : "An Act to provide f o r the construction of a l i n e of railway from Esquimalt to 4 Nanaimo, i n B r i t i s h Columbia," He explained that the necessity of i n t r o d u c i n g t h i s b i l l arose from the f a c t that parliament had no a u t h o r i t y to construct t h i s l i n e as part of the Can-5 adian P a c i f i c Railway, On March 29, Mackenzie moved "that the 6 B i l l be now read a second time," whereupon Mr, Wallace moved i n amendment "that the word 'now' be l e f t out, and the words T. B r i t i s h Columbia Sessional Papers, 1875, p. 538, 2, Debates, House of Commons, 1875, p. 513, 3, Yet on March 5, 1875, Mackenzie had said: " I have nothing to ask from Parliament," I b i d , p, 511, I t may be that the de-c i s i o n to submit the Esquimalt and Nanaimo b i l l was an a f t e r thought. 4, The b i l l proposed a governmental a i d of $10,000.00 and of 20,000 acres of land per mile, as w e l l as a guarantee of i n -t e r e s t at 4fo f o r 25 years upon the a d d i t i o n a l expenses of const r u c t i o n . Estimates ran about $20-40,000 per mile. Debates, House of Commons, 1875, p. 793, 5, Yet Mr, J , Hunter and Mr. J. Truteh had been ordered to s t a r t a survey from Esquimalt northward to locate a l i n e of r a i lway on Vancouver Island. Standard, March 6, 1875. 6, Journals, House of Commons, 1875. p. 296. 38, ' ' t h i s day three months 1 added at the end thereof."1 Mackenzie pointed ont that i t would not "be necessary to submit the con-2 t r a c t s f o r t h i s work to parliament. This met with a great deal of opposition from the Conservatives who pointed out that t h i s 3 • was a d i g r e s s i o n from the accepted L i b e r a l p o l i c y but when t h i s 4 was put to the house i n the form of an amendment i t was defeated Nobody thought that the b i l l would f a l l i n the Senate. Although that body was Conservative, the Con-servatives were as much committed to the Esquimalt and Nanaimo Railway as was the government. I t came, therefore, as a sur-p r i s e when, on the eve of prorogation the Senate defeated the 5 b i l l by a vote of 24 to 21. One might expect that Mackenzie's government would not have been embarrassed. The Senate was Conservative, the great bulk of the votes cast against the defeated b i l l was Conservative, and the blame would seem then to rest unequivocally upon the Conservative party. Nothing l i k e t h i s happened. The Senate's a s s e r t i o n of i t s independence i n j u r e d Mackenzie rather than Maedonald. I t was declared that Mackenzie had con-nived at the defeat of the b i l l i n the Senate. This seems 6 doubtful from Mackenzie's character, but that t h i s notion was cr e d i t e d on Vancouver Island cannot be doubted. 1 1. Journals, House of Commons, 1875. p. 296, 2. Debates, House of Commons. 1875, p, 949. 3 0 I b i d , Most of the protest came from Tupper, 4. Journals, House of Commons, 1875. p. 298. The b i l l passed the t h i r d reading on a d i v i s i o n of 91 to 64, Cunnigham and Dewdney, L i b e r a l members f o r the mainland, voted against the b i l l . I b i d , 5. Journals, Senate, 1875, t>. 293. 6. " I (Lord Dufferin) saw Mr, Mackenzie the next day ( a f t e r the defeat of the b i l l ) and I have seldom seen a man more annoyed." Leggo.W., op. c i t . p. 539. 39, The telegram published i n yesterday's Standard to the e f f e c t that the Canadian Senate has r e j e c t e d the Esquimalt and Nanaimo Railway b i l l has caused very considerable sensation throughout the c i t y and d i s t r i c t s where read and very n a t u r a l l y , 1 There was s t i l l a more serious charge against the Mackenzie a d m i n i s t r a t i o n , A year and a h a l f l a t e r l o r d D u f f e r i n declared that the handling of the Esquimalt and Nanaimo Railway b i l l i n the Senate was d i s g r a c e f u l . The measure had, so he charged, been introduced i n a languid and perfunctory way by J/, Scott, the leader of the government i n the Senate, who a c t u a l l y s a i d that the b i l l was being conceded "through the interference of the Imperial Government,^ Mismanagement and ' 4 carelessness on the part of Scott there c e r t a i n l y was, and t h i s was a r e f l e c t i o n of the p o s i t i v e d i s t a s t e with which many 5 l i b e r a l s viewed the b i l l . The defeat of the Esquimalt and Nanaimo R a i l -way b i l l marks a d e f i n i t e stage i n the p o s i t i o n of Mackenzie as leader of h i s party, " I very much douSt whether he (Mac-kenzie) could have succeeded i n c a r r y i n g i t ( the Esquimalt and Nanaimo Railway b i l l ) a second time even i n the House of Com-6 mons." Mackenzie's hold oh h i s party had been weakened by h i s B r i t i s h Columbia p o l i c y and the defeat of the above b i l l was 7 i n e f f e c t , a v i c t o r y f o r the Blake wing. 1. Standard, A p r i l 10, 1875. 2 0 Mackenzie l e t t e r Book, 1, 788, 3, Debates of the Senate, 1875, p, 738, 4, I b i d , 5, "The improvident and reckless promise made on behalf of t h i s country of b u i l d i n g a l i n e on Vancouver Island." I b i d , 6, Ieggo,W,, op, c i t . p, 453. 7, The d i f f i c u l t y b l o c k i n g Blake's entry i n t o the cabinet was the p o l i c y of the government towards B r i t i s h Columbia. 40. Blake knew that l i t e r a l opinionAagainst the Esquimalt and Nanaimo Railway and, indeed, the Carnarvon terms had c r y s t a l l i z e d , and that Mackenzie's plan of going on would meet ."with sharp opposition. He therefore asked Mackenzie to •consult the most i n f l u e n t i a l l i b e r a l s , who had supported the government on the Island Railway b i l l , as to what the future p o l i c y toward B r i t i s h Columbia should be. Mackenzie consented. Apparently h i s eyes were opened i n the interview and as a p r a c t i c a l p o l i t i c i a n he bowed to the i n e v i t a b l e . On May 19, 1875, Blake entered the cabinet as M i n i s t e r of J u s t i c e and he d i d so on terms which were to br i n g the m i n i s t r y into sharp dispute with the Governor-General. The l e t t e r explaining t h i s agreement deserves quotation. The r e s u l t of our d i s c u s s i o n of t h i s morning i s that I agree to j o i n your Government on the understanding as to the general p o l i c y a r r i v e d at when I was l a s t i n Ottawa, and on the understanding as to the Columbia terms reached t h i s morning - namely that the Govern-ment should negotiate with Columbia f o r the payment of a- cash subsidy i n l i e u of the agree-ment to construct the Vancouver Island railway.... It i s understood that i n case B r i t i s h Columbia or England should r a i s e any d i f f i c u l t y as to these p r o v i s i o n s , the Government w i l l not-withstanding proceed to carry them out i n good f a i t h . 2 The new p o l i c y of the Dominion Government t o -ward B r i t i s h Columbia was formulated by an order-in-council of September 20, 1875. A f t e r t r a c i n g the railway d i f f i c u l t y a r i s i n g from the Terms of Union, the document came to the 1. The Islanders looked askance at Blake's appointment. "So f a r as we are concerned Mr. Blake's acceptance of o f f i c e w i l l be anything but a matter f o r r e j o i c i n g , As to what we may expect as the r e s u l t of h i s being one of the m i n i s t r y i t i s d i f f i c u l t to say." Nanaimo Free Press, June 26, 1875. 2. Blake to Mackenzie, May 18, 1875. Copy i n Mackenzie Papers, 1. 314. . 1 41. f o l l o w i n g conclusion i n regard to the Esquimalt and Nanaimo Railway. The proposed railway from Esquimalt to Nanaimo does not form a p o r t i o n of the Canadian - P a c i f i c Railway as defined by the Act; i t was intended to b e n e f i t l o c a l i n t e r e s t s and was pro-posed as compensation f o r disappointment ex-perienced by the unavoidable delay i n constructing the railway across the continent. The work i s e s s e n t i a l l y a l o c a l one, and there are obvious reasons against the Canadian Government under ordinary circumstances undertaking the con-s t r u c t i o n of such works and i n favour of there being i f at a l l , by v i r t u e of P r o v i n c i a l a c t i o n . . , . The E i l l which the Government i n -troduced i n t o the House of Commons to provide f o r b u i l d i n g t h i s railway,, evoked a considerable degree of opposition i n that House and i n the country, and, although passed by the House of Commons, i t was afterwards rejected i n the Senate, and thus there i s imposed upon the Government the duty of considering some other method of meeting a l l j u s t expectations of the people of B r i t i s h Columbia, whose Government has not suggested to t h i s G-overnment any s o l u t i o n . I t would seem reasonable that the people of B r i t i s h Columbia should construct t h i s work themselves, or i f they think other public works more advantageous, should i n l i e u of t h i s themselves undertake such other l o c a l works and that the compensation to be given them by Canada f o r any delays which may take place i n the con-s t r u c t i o n of the P a c i f i c Railway should be i n the form of a cash bonus to be applied towards the l o c a l railway or such other l o c a l works as the l e g i s l a t u r e of B r i t i s h Columbia may under-take, Canada also surrendering any claim to lands which may have been reserved i n Vancouver Island f o r rail-way purposes. The sum of 750,000 would appear to the committee to be a l i b e r a l compensation, and the committee advise that the Government of B r i t i s h Columbia be informed that t h i s Government i s prepared to propose to Parliament at i t s next session the l e g i s l a t i o n necessary to carry out the views contained i n t h i s minute....1 Walkem1s government received t h i s order-1, B r i t i s h Columbia Sessional Papers, 1876, p. 567. 42. i n - c o u n c i l on November 29, 1875.1 On December 6, 1875, a re-port from the Executive Council advised "that the proposals contained i n the Minute be u n h e s i t a t i n g l y but r e s p e c t f u l l y 2 declined." A f u r t h e r report of the Executive Council f o r January 4, 1876, commented at some length on the proposals of the Dominion Government, The Edgar proposals, i t was pointed out d i d not mention the Esquimalt and Nanaimo Railway as a 3 "compensation f o r the disappointment experienced," The other feature was the cash bonus of $750,000 to be given to B r i t i s h Columbia, At the outset i t may be asked f o r what was t h i s bonus a compensation. Many people i n t e r p r e t e d i t to be i n l i e u of the promise to b u i l d the TSsquimalt and Nanaimo Railway, "and to give us $750,000 as compensation f o r surrendering the Island 4 Railway," and the reasons f o r t h i s are c l e a r enough. But the order-in-counei1 was d e f i n i t e l y ambiguous. The sentence, which introduced the idea of a cash bonus, began by expressing the opinion that the Esquimalt and Nanaimo Railway should be b u i l t by B r i t i s h Columbia, and then mid-way passed to the question of compensation. But the compensation was not, as one might expect, f o r the Esquimalt and Nanaimo Railway; i t was " f o r any delays which may take place i n the construction of the P a c i f i c Railway,^ The a l t e r n a t i v e i n t e r p r e t a t i o n assumed by Walkem was that the $750,000 was to be compensation f o r future 1. Standard, December 2, 1875. 2. B r i t i s h Columbia Sessional Papers, 1876, p. 56 8. 3. B r i t i s h Columbia Sessional Papers, 1875, p. 514. 4. Standard, December 3, 1875. 5. B r i t i s h Columbia Sessional Papers, 1876, p. 567. 43. and i n d e f i n i t e delays i n the construction of the Canadian 1 P a c i f i c Railway. Which i n t e r p r e t a t i o n i s correct no one can 2 say. * The or d e r - i n - c o u n c i l of September 20, 1875, 'was wholly unfortunate, l o r d D u f f e r i n l a t e r declared that i t : 3 was a de l i b e r a t e t r a p , set to catch the people of B r i t i s h Columbia, At any event, r e c r i m i n a t i o n about that had no point because, i f there was at rap, B r i t i s h Columbia never came close 4 to f a l l i n g i n t o i t . The controversy which Carnarvon had hoped to quiet,, now f l a r e d up once more, B r i t i s h Columbia appealed to 5 • Carnarvon to hold the Dominion to, i t s promises and Carnarvon again proved w i l l i n g to act as an a r b i t r a t o r . He was no doubt displeased with the course of events, I s h a l l have course great d i f f i c u l t y i n b e l i e v i n g 'that a Government which only a year ago had undertaken s p e c i f i c o b l i g a t i o n s , could contemplate.any departure from, much l e s s amendment of them....The .undertaking was of a t r i - p a r i f e character, and I cannot of course suppose that the Canadian Government could con-s i d e r i t s e l f absolved from any engagement into which i t . had entered with B r i t i s h Columbia except i n so f a r as that engagement might be modified a f t e r reference to and communication with me,.,.6 But consider the p o s i t i o n of Mackenzie. I f Carnarvon's act i o n had been unwelcome i n 1874, i t was doubly so i n 1876 a f t e r h i s 1, B r i t i s h Columbia Sessional Papers, 1876, p. 570, 2, In conversation with D u f f e r i n , Mackenzie seemed to accept the second i n t e r p r e t a t i o n . Mackenzie l e t t e r Book, 1, 790. An order- i n - e o u n c i l of March 13, 1876, leans to the f i r s t "as a su b s t i t u t e d compensation," B,C» Sessional Papers, 1876, p.643. In the Senate, Scott s a i d that "the $750,000 was compensation f o r the defeat of the E & H b i l l , " Debates of the Senate, 1876, p. 232, 3, Memorandum, Mackenzie Papers, 11, 786-787. 4, B r i t i s h Columbia Sessional Papers, 1876, p, 568, 5, I b i d , p„ 637, 6, Mackenzie Papers, March 17, 1876, 11, 454, 44. promise to Blake. Further i n t e r v e n t i o n of Carnarvon at t h i s time was d e f i n i t e l y r e j e c t e d by Mackenzie Instead i t was de-cided that Lord D u f f e r i n , Governor General of Canada, should v i s i t " B r i t i s h Columbia f o r the purpose of gathering information Which might lead to an amicable settlement of the whole con-1 tr o v e r s y . " 1„ Mackenzie to D u f f e r i n , May 29, 1876, Mackenzie Papers, 11, 461, Apparently D u f f e r i n suggested to the government that he should go to B r i t i s h Columbia,, " I (Carnarvon) have learnt with sincere pleasure that you have proposed and that your M i n i s t e r s have concurred i n the proposal that you should y o u r s e l f v i s i t B r i t i s h Columbia," Carnarvon to D u f f e r i n , May 4, 1876 , Blake Papers,. Chapter Four , " B r i t i s h Columbia secures a railway f o r Vancouver I s l a n d " l Lord D u f f e r i n a r r i v e d i n B r i t i s h Columbia on I August 16, 1876, and during the month which followed he d i d h i s best to secure an accurate opinion about the Esquimalt and Nanaimo Railway s i t u a t i o n . I t i s needless to resusciate the d e t a i l s of h i s v i s i t which has been the theme of numerous 2 h i s t o r i e s . The speech he made at V i c t o r i a on September 14, 1876, has been cr e d i t e d with checking a dangerous a g i t a t i o n f o r 3 secession on Vancouver Island, There i s l i t t l e doubt that the speech was predicated upon the b e l i e f that the Carnarvon Terms 4 had to be implemented or a s a t i s f a c t o r y equivalent offered, a b e l i e f which showed e i t h e r that D u f f e r i n had not understood, or that he was prepared to oppose, the change of front which Mackenzie had announced. Lord D u f f e r i n had very d e f i n i t e opinions of h i s own as-to how a settlement of the dispute ought to be reached. Before l e a v i n g f o r B r i t i s h Columbia he had asked Mac-kenzie that he might be allowed to announce the foundation of a s a t i s f a c t o r y arrangement i n regard to the Esquimalt and 5 Nanaimo Railway controversy. I V Leggo, W., op. c i t . p. 443. The reception was probably the most unusual ever tendered to a Governor General of Canada. The people thought that D u f f e r i n was appearing i n the role of a p o l i t i c a l agent. 2. I b i d . pp.. 455-73. 3. Gosnell, R.E., op. c i t . p. 89, 4. This seems to have been the p r e v a i l i n g idea of the Islanders a l s o , Carnarvon's proposals by t h i s time were a dead issue, 5. Mackenzie L e t t e r Book, 1, 718, 4 6 , From Nanaimo D u f f e r i n sent the f o l l o w i n g telegram to Mackenzie, The case as i t stands w i l l present i t s e l f to E n g l i s h opinion thus. At the i n -s t i g a t i o n of the Imperial Government, and under pressure which as a Crown Colony i t would not pretend to r e s i s t , B r i t i s h Columbia entered- i n t o a t r e a t y with a powerful neigh-hour, under which she surrendered her autonomy i n consideration of obtaining c e r t a i n s t r i c t l y s p e c i f i e d advantages,,,. Of course Canada says, and perhaps with j u s t i c e that what she has proffered i n l i e u of the un-f i l l e d s t i p u l a t i o n , ought to have given s a t i s f a c t i o n , but i n common j u s t i c e i t would be admitted that i f two independent p a r t i e s enter into a contract which one of them i s unable to f u l f i l , the d e f a u l t e r cannot claim the r i g h t of determining h i s own mere 'ipse d i x i t . ' The n a t u r a l and obvious course would be f o r the l i t i g a n t s again to r e s o r t to the assistance of the a r b i t r a t o r who had already intervened i n the dispute; and i f one of them be stronger than the other, and at the same time the d e f a u l t e r i n question, i t i s obvious that h i s r e f u s a l to have the matter decided ex-cept i n accordance with h i s own personal arbitrament, would expose him to the reproach of a c t i n g i n a high-handed and imperious manner, and that the general sympathies of the p u b l i c w i l l lean toward the weaker l i t i g a n t who has been disappointed i n h i s l e g i t i m a t e expectation,1 This telegram c l e a r l y shows the e f f o r t which D u f f e r i n was making to have Carnarvon a c t i n g again as an a r b i t r a t o r i n the dispute between the Federal and P r o v i n c i a l Governments over the Esqhimalt and Nanaimo Railway, Undoubtedly D u f f e r i n f e l t that Mackenzie had not dealt f a i r l y with the railway s i t u a t i o n on Vancouver I s l a n d , Dufferin,on h i s r e t u r n to Ottawa, drafted 1, D u f f e r i n to Mackenzie, October 9, 1876, Mackenzie Better Book, 11, 715, 47, a long despatch, on B r i t i s h Columbia a f f a i r s , which he proposed to send to Carnarvon, In t h i s despatch D u f f e r i n argued that the Dominion Government ought to state e x p l i c i t l y that the $750, 600 cash bonus was offered i n l i e u of the Esquimalt and Nanaimo 1 2 Railway, and f o r nothing e l s e . He sent t h i s d r a f t to Mackenzie and Blake f o r examination, and on November 18, 1876, an i n -terview was held, attended by the above gentlemen, During the interview D u f f e r i n characterized the o r d e r - i n - c o u n c i l of September 20, 1875, and the one of March 16, 1876, as d e c e i t f u l and most d i s g r a c e f u l . He said that i f he had understood the o r d e r s - i n - c o u n c i l as they had been c a r r i e d out, he' would not have given h i s assent to them. " I (Dufferin) c a l l you to t e l l me d i s t i n c t l y what you meant by compensation 3 f o r delays i n your minutes r e f e r r i n g to the Island Railway," D u f f e r i n then declared that Mackenzie had t r i e d to carry the • 4 Senate. Mackenzie denied t h i s statement, but to the other 5 questions and charges he remained s i l e n t , The interview ended with D u f f e r i n l e a v i n g i n rather an unpleasant mood, "Well a f t e r t h a t , there i s no use having any f u r t h e r discussion, I 6 f e e l ashamed of i t , " Dufferin! 1 s best e f f o r t s to secure support f o r B r i t i s h Columbia i n London were l o s t when Carnarvon wrote D u f f e r i n , that the objections of the province against the course taken by the Dominion were "couched i n more severe and ex-17 Memorandum., Mackenzie Papers, 11, 781-86, 2 ? I b i d , 3 ? Appendix B, 4, I b i d , 5' I b i d e ! I b i d ! In d r a f t i n g the report, which l e d to the above i n t e r -view, i t would appear from the contents of the report that D u f f e r i n went beyond the l i m i t s of h i s o f f i c e . 48. agger-ate a language than a f a i r estimate of the p e c u l i a r em-harrassements and d i f f i c u l t i e s of the ease would seem to 1 j u s t i f y . " This, a f t e r a s i l e n c e of seven months was Carnarvon's answer to the appeal of B r i t i s h Columbia, D u f f e r i n had t r i e d > to make a very good job of a d i f f i c u l t job, but a l l h i s p l a u s i b l e eloquence f a i l e d to convince the people of Vancouver Island that they were being treated f a i r l y . A f f a i r s on Vancouver Island are any-t h i n g but serene. The inhabitants of the Island are d i s s a t i s f i e d w i t h the treatment they have received at the hands of the Dominion Government, and not even l o r d D u f f e r i n 7 s cheery presence and g e n i a l speeches have been able to remove the unfavourable impression.2 At t h i s time the Carnarvon Club, which was growing more i n f l u e n t i a l , began to make things uncomfortable f o r the E l l i o t a d m i n i s t r a t i o n . The club which had been formed i n V i c t o r i a to see that the Carnarvon Terms were c a r r i e d out by the Dominion Government, forced Mr, J.C. Brown, President 3 of the Council, to r e s i g n on September 10, 1876. lieutenant -Governor Richards had s a i d on the mainland that h i s ministers "did not sympathize with the view that separation must f o l l o w 4 as a r e s u l t of the non-commencement of the Island Railway," 5 The Carnarvon Club demanded a statement from Mr, A.C. E l l i o t to the e f f e c t that Richard's statement was not the p o l i c y of the e x i s t i n g government. E l l i o t ' s p o s i t i o n became more pre-1. Carnarvon to D u f f e r i n , December 18, 1876. B r i t i s h Columbia Sessional Papers, 1876. p. 381. 2. Toronto Globe. Quoted i n Standard, December 20, 1876. 3. Brown had s a i d to the people of the mainland."We are unan-imous i n the f e e l i n g of pleasure w i t h which we regard the s e t t i n g aside of the Carnarvon Terms." Standard, Sept. 14. 4. Howay, F.W., op. c i t . v o l . 2, p. 387, 5. Walkem's government had been defeated on a motion of T.B, Humphreys respecting the f i n a n c i a l p o l i c y of the government. The E l l i o t a d m i n i s t r a t i o n commenced on February 1, 1876. 49 . on March 3, 1877, when the Carnarvon Club demandea h i s r e s i g n a t i o n "as a member f o r the C i t y of V i c t o r i a . ^ However, the E l l i o t government paved the way f o r i t s defeat when i t introduced a loan b i l l designed to "borrow $150,000. S t r u g g l i n g through the session, a f t e r r e c e i v i n g an adverse vote i n the House, an unsuccessful appeal was made to the e l e c t o r a t e . Walkem was returned and with the formation of h i s government, a f i g h t Canada p o l i c y was adopted. By now the question of the terminus had been reduced to a choice of e i t h e r Burrard or Bute I n l e t f o r the Canadian P a c i f i c "Railway, and s h o r t l y a f t e r Fleming t o l d parliament that "the l i n e to Vancouver Island f o r the present be r e j e c t e d and that the Government s e l e c t the route by the 2 Rivers Thompson and Eraser to Burrard I n l e t , " Fleming's suggestion was c a r r i e d out by an o r d e r - i n - c o u n c i l of the 3 Dominion Government on May S3, 1878. The order-in-counci1 also cancelled the one of June 7, 1873, which had designated 4 Esquimalt as the terminus of the. Canadian P a c i f i c Railway. The i s l a n d e r s were stronger than ever i n t h e i r denunciations of Mackenzie's railway p o l i c y . Walkem1s government was urged to take a c t i o n to j u s t i f y the grievances of the people on Vancouver Island. I t was pointed out that the r e s e r v a t i o n of railway lands on the i s l a n d had proved a serious hindrance to settlement, Our r i g h t s must be respected, or means must be taken to enforce them. I f the re-pudiating p o l i c y i s to continue and become con-1, Standard, March 13, 1877, 2. Standard, May 14, 1878. 3 , B r i t i s h Columbia Sessional Papers, 1878. p. 704. 4 . Supra p. 20 „ 50 firmed, we s h a l l be be t t e r without the • . connection and the sooner i t i s severed the better.1 However, the f l o o d - t i d e of discontent, which was marked by the passage of a secession memorial to the Queen on August 22, 18-78, soon receded. Macdonald, who had been defeated i n h i s own constituency of Kingston, Ontario, i n the general e l e c t i o n of 1878, had accepted V i c t o r i a ' s o f f e r to be her representative i n the Dominion Ps appeared b r i g h t e r , 2 i n the Dominion Parliament. The future on Vancouver Island For the future Premier of Canada to be a representative of t h i s constituency, whose long struggle f o r the re c o g n i t i o n of the r i g h t s of the Province by the Government of the Dominion i s a matter of h i s t o r y , w i l l ensure as a necessary consequence that every o b l i g a t i o n entered into by the Government tov/ards t h i s Province w i l l be f u l l y and squarely met. The immediate commencement and energetic prosecution of the railway from i t s terminus at Esquimalt, the b u i l d i n g of the Dry Dock, the outlay on p u b l i c works wherever needed, are a l l of them events that may be ca l c u l a t e d on with the most absolute c e r t a i n t y . 3 The f i r s t i n d i c a t i o n of railway a c t i o n by Macdonald Ts government i n B r i t i s h Columbia was made known i n V i c t o r i a on May 3, 1879, when an announcement came from Ottawa to the e f f e c t that one hundred miles of railway would be b u i l t 4 that year i n B r i t i s h Columbia. Coming from the Macdonald ad-l'. Standard, June 17, 1878. 2, Marquette, Manitoba, also offered Macdonald a seat, but he accepted V i c t o r i a ' s o f f e r . His choice of V i c t o r i a was made, no doubt, on the grounds of p o l i t i c a l expediency aimed at b r i n g i n g about an amicable settlement of the r e l a t i o n s between B r i t i s h Columbia and the Dominion. His elected colleague f o r the c i t y of V i c t o r i a was Amor De Cosmos. Standard, October 22, 1878, 3, Standard, September 21, 1878, 4, Standard May 3, 1879. 51 o m i n i s t r a t i o n , V i c t o r i a n s r e a d i l y assumed that "the "building of one hundred miles of the l i n e w i l l create an amount of business that w i l l produce b r i s k times on Vancouver Island.. . i t i s highly-probable that the railway w i l l be completed as f a r as Comox 1 by t h i s time next year." Shortly a f t e r Macdonald announced that Esquimalt was again f i x e d as the terminus of the Canadian P a c i f i c Railway. The order-in-counci1 confirming t h i s s t a t e -ment was issued on A p r i l 22, 1879, and read as f o l l o w s : On a memorandum dated 16th. A p r i l , 1879, from the Honourable the M i n i s t e r of P u b l i c Works representing that on a memoran-dum from the Chief Engineer of the Canadian P a c i f i c Railway, dated May 23rd, 1873, an Order-in-Council was passed June 7th, 1875, f i x i n g Esquimalt on Vancouver Island as the terminus of the Railway i n B r i t i s h Columbia. That subsequently, March 25th, 1875, an Order-in - C o u n c i l was passed au t h o r i x i n g the Dominion Government to n o t i f y the Government of B r i t i s h Columbia that I t would be necessary that the L e g i s l a t u r e of thatnProvince,.then i n session, should pass an act s e t t i n g apart such extent of P u b l i c Lands along the l i n e of Railway i n Vancouver Island i n the manner set f o r t h by the 11th. paragraph of the terms of agreement of the Union. That on May 23rd, 1878, the l a t e Government had another arder passed c a n c e l l i n g that of June 7th, 1873, but no reason appears to have been given f o r t h e i r a c t i o n i n the matter, nor i s there any memtion made of the Order-in-Council of March 25th, 1875, which provides f o r the a p p r o p r i a t i o n of the necessary land i n Vancouver Island. The M i n i s t e r there-fore recommends that ! ;i.n : the absence of s a t i s -f a c t o r y reasons having been given f o r can-c e l l i n g the Order-in-Council of June 7th, 1873, that, the Order-inCouncil of May 23rd, 1878, c a n c e l l i n g i t be .annuled and that of June 7th, 1873, be revived,2 ' V i c t o r i a n s f e l t sure that Macdonald was a c t i n g as t h e i r proven 1. Standard, May 3, 1879. 2. B r i t i s h Columbia Sessional Papers, 1880, p. 336. 52. f r i e n d . The above order-in-eounci1 by no means made Esquimalt the western terminus of the Canadian P a c i f i c R a i l -way^ Eiien though the people of Vancouver Island chose to re-gard i t as such. On June 7, 1879, Macdonald pointed out that The Dominion Government recommends that the Government of B r i t i s h Columbia be i n -formed that the object of the Order-in-Council of the 22nd, A p r i l , 1879, was simply to rescind the Order-in-Council of the 23rd, May, 1878, so as to leave the General Government free to adopt whichever route might appear in.the p u b l i c i n -t e r e s t the most e l i g i b l e , ! In doing t h i s Macdonald was attempting to s a t i s f y the inhabitants of the mainland and Vancouver Island, As long as these two sections of B r i t i s h Columbia had a claim on the terminus things would appear more s e t t l e d i n B r i t i s h Columbia, However, the i s l a n d e r s d i d not remain quiet f o r long. On October 6, 1879, Macdonald telegraphed Walkem that the Dominion Government was c a l l i n g f o r tenders to 2 construct the s e c t i o n between Yale and Kamioops, V i c t o r i a n s were sorely disappointed, " I t would be useless to deny that the advertisement c a l l i n g f o r tenders f o r the construction of a l i n e of railway from Yale to Kamioops has created a wide-3 spread f e e l i n g of disappointment throughout the c i t y , " The i n -e v i t a b l e d e c l a r a t i o n of Burrard I n l e t as the terminus of the Canadian P a c i f i c Railway followed. From now on the railway question as f a r as the mainland was concerned passed o f f the 1, B r i t i s h Columbia Sessional Papers, 1880, p. 337, 2o I b i d , p, 338, 3, Standard, October 9, 1879, p o l i t i c a l stage. But the island, railway question s t i l l , re-mained a subject of dispute between the two governments. V i c -t o r i a n s f e l t that " the d e c l a r a t i o n of the Fraser route does not o b l i t e r a t e but rather increases the o b l i g a t i o n of the Dominion Governement to b u i l d the l i n e on the i s l a n d from '2 Esquimalt to Nanaimo." The l o c a l government st a r t e d to press vigorously f o r the construction of the Island Railway, On December 27, 1879, Walkem was appointed as a s p e c i a l delegate from B r i t i s h Columbia to Ottawa, to press the construction of the "Esquimalt and Nanaimo se c t i o n of the Canadian P a c i f i c 3 . Railway," He a r r i v e d at Ottawa on January 15, 1880, and im-mediately went into conference with Senator Macdonald, De Cos-mos, Bunster,and Thompson, " f o r the purpose of deciding upon the best means to secure the construction of the Island R a i l -4 way," These gentlemen interviewed Macdonald on February 17, 5 1880, and while they gave c r e d i t to the Dominion Government f o r p l a c i n g 127 miles of the mainland p o r t i o n of the l i n e under contract, and a c t i v e prosecution of the work advocated, the members of the delegation f o r c i b l y represented the l o s s which would be i n f l i c t e d on the i s l a n d e r s by longer delaying construction of the Esquimalt and Nanaimo Railway s e c t i o n of the Canadian P a c i f i c Railway, Macdonald r e p l i e d that he 1', As f a r as construction was concerned and the d e c l a r a t i o n of the western terminus, 2, ' Standard, October 21, 1879, 3, B r i t i s h Columbia Sessional Papers, 1880, p, 343, 4, B r i t i s h Columbia Sessional Papers, 1880, p, 343, 5, I b i d , The delegation pointed out the serious l o s s which had been i n f l i c t e d on Vancouver Island because of the l o c k i n g up of the railway lands. This was a more f o r c i b l e argument than a long r e c i t a l of previous railway negotiations. 54. and h i s colleagues had undertaken as much railway work i n B r i t i s h Columbia as they could s a f e l y carry through, and that he could not, therefore, pledge h i s government to do more at 1 the pre*sent. The mission was unsuccessful because once Mac-donald had undertaken r a i l r o a d construction, which was to end at Burrard I n l e t , the western terminus of the railway, anything beyond that was not a s e c t i o n of the Canadian P a c i f i c Railway. Back i n V i c t o r i a again, Walkem telegraphed Macdonald. as follows*. Awarding of Mainland contracts give s a t i s f a c t i o n , but your r e f u s a l to give d e f i n i t e assurance of construction on Vancouver Island creates d i s s a t i s f a c t i o n . A promiseffrom you to commence and prosecute a c t i v e construction of Island Railway next year would s a t i s f y a l l . Can you give i t ? Please r e p l y immediately, as House meets i n a few days.2 This telegram received no r e p l y , due no doubt to the f a c t that Macdonald was w a i t i n g f o r an agreement on the part of B r i t i s h Columbia to a memorandum prepared, by the Department of the I n t e r i o r , which i n part stated: There i s reason to believe that the character of the land f o r a very considerable distance along the l i n e of the Canadian P a c i f i c Railway as located i n B r i t i s h Columbia i s such as to be altogether unsuited f o r a g r i c u l t u r a l purposes, and, therefore, v a l u e l e s s ; f o r the objects contemplated at the time the province was admitted i n t o Confederatinn, which was that the lands proposed to be t r a n s f e r r e d to the Dominion be l a i d out and s o l d to a i d i n the construction of the road... to cover the d e f i c i e n c y lands outside the f o r t y mile b e l t should be selected and t r a n s f e r r e d by':the P r o v i n c i a l Government to the Dominion, to be dealt w i t h i n a l l respects as i f the same 1, B r i t i s h Columbia Sessional Papers, 1880, p. 548. 2, I b i d , p, 551, 55, formed part of the f o r t y mile b e l t . 1 To carry out the above negotiations, Trutch had been appointed "Agent of the Dominion Government, on the subject of the adjustment and t r a n s f e r to the Dominion of the 2 lands granted by the Province of B r i t i s h Columbia." He sent a 3 l e t t e r to Walkem, asking that p r o v i s i o n f o r the s e l e c t i o n by the Dominion agent of lands outside the f o r t y mile b e l t be i n -serted i n the Railway lands Reservation B i l l , then before the 4 • • 5 l e g i s l a t i v e Assembly, Walkem, a c t i n g on p o l i t i c a l expediency and seeing a chance to drive a bargain refused to introduce the question into the House, but at the same time assured Trutch that i f there was some s t i p u l a t i o n f o r the commencement of r a i l -way work on Vancouver Island, the L e g i s l a t u r e would consent un-6 c o n d i t i o n a l l y to the proposal. His treatment of Trutch c a l l s to mind the reception he gave Edgar, Macdonald commented that "Walkem i s eviden t l y i n c l i n e d to sharp p r a c t i c e and h i s course 7 i s equally f o o l i s h and dishonest." Meanwhile at Ottawa, Macdonald was having a d i f f i c u l t time w i t h Blake's motion that a l l railway eon-8 s t r u c t i o n i n B r i t i s h Columbia be postponed. In a l e t t e r to Trutch, Macdonald t e l l s of the annoying s i t u a t i o n and i t i s c e r t a i n that he d i d not want to be bothered with the pleas of B r i t i s h Columbia f o r the construction of the Esquimalt and 1. Dominion Sessional Papers, 1880, Ho. 6. The memorandum was based on a r e s o l u t i o n of the Dominion Government passed i n 1879. Debates, House of Commons, 1879, p. 1616. 2. Dominion Sessional Papers, 1880, Ho, 21. 3. B r i t i s h Columbia Sessional Papers, 1880, p. 296. 4. Journals, L e g i s l a t i v e Assembly of B r i t i s h Columbia,1880,p.8. 5. See Appendix C. 6. Trutch to Macdonald, A p r i l 29, 1880. Trutch L e t t e r s , 11, 29. 7. Macdonald to Trutch, May 17, 1880. I b i d . 8. Debates, House* of Commons, 1880, p. 2002, Nanaimo Railway, The l e t t e r f o l l o w s : . We were obliged to s i t f o r the best part of two days i n canens i n order to get them to vote down Blake's motion...We cannot allow the Question of the construction of the Esquimalt and Nanaimo Railway to be mixed up i n t h i s " matter. The engagement of Canada i s to b u i l d a railway connecting the P a c i f i c w ith the A t l a n t i c and that unless B r i t i s h Columbia prevents i t by her own act w i l l be f a i t h f u l l y c a r r i e d out. My own opinion as expressed to you was that the b u i l d i n g of the Island Railway i s only a matter of time and that there must be a steam connection across to Nanaimo and a r a i l connection with Esquimalt. That however i s a matter of expediency and not a matter of contract. The previous arrangements and the Carnarvon terms have be-come things of- the past, and we are thrown upon the o r i g i n a l agreement at the time of the Union,.. I t seems to me Mr. Walkem i f he represents B r i t i s h Columbia does not know who the f r i e n d s of h i s Province are or appreciate what they have done,1 The newspaper, which had declared that Mac-donald 1s e l e c t i o n i n V i c t o r i a gave prospects of s u b s t a n t i a l 2 b e n e f i t s to be derived i n the f u t u r e , now came f o r t h with the f o l l o w i n g statement. " I t was f e l t that the era of deceit and t r i c k e r y was now past, and that a l o y a l and ungrudging f u l -f i l m e n t of e x i s t i n g o b l i g a t i o n s might with confidence be ex-3 pected." Protest meetings on Vancouver Island became the order of the day with V i c t o r i a , as usual, i n the vanguard. V i c t o r i a n s h e l d a public meeting on November 8, 1880. Speeches were given by P r o v i n c i a l and Federal members i n favour of securing the construction of the Island Railway by the Dominion Government. Dr. W.F. Tolmie moved "that S i r John A. Macdonald, M.P., and Honourable A. De Cosmos, M.P,, are hereby r e s p e c t f u l l y and urgently requested to impress on theDominion Government the 1. Macdonald to Trutch, May 17, 1880, Macdonald Papers, 11, 104. 2. Standard, May 3, 1879, 3. Standard, October 13, 1880. 57. d e s i r a b i l i t y of the immediate commencement of the Island R a i l -1 • • way." The meeting endorsed the f o l l o w i n g r e s o l u t i o n s . 1. That the f i r s t c o n d i tion of the Carnarvon Terms, made i n 1874, was the - construction of the railway from Esquimalt to Nanaimo.... 3. That although the people of the Island were j u s t i f i e d i n expecting the commencement of the Esquimalt and Nanaimo Railway i n 1875, t h e i r generous re c o g n i t i o n of the embarrassed condition of the Dominion induced them f o r years to r e f r a i n from emphatically i n s i s t i n g upon immediate con-s t r u c t i o n of t h i s railway.... 10.. Confederation has i n f l i c t e d responsible i n j u r y upon Vancouver Island, most important p o r t i o n of B r i t i s h Columbia, so f a r from i n -ducing settlement, i t has prevented i t . From the 7th. June, 1873 u n t i l now a b e l t ofland. . .has been kept locked up by the Dominion so that thousands who intended to s e t t l e i n t h i s valuable p o r t i o n of the province have been forced across the border.... 15. That the only compensation f o r the many drawbacks of Confederation i s r a i l -way construction under the conditions of the Carnarvon settlement, and unless the Dominion of Canada i s prepared to carry out i t s railway o b l i g a t i o n s with B r i t i s h Columbia, Vancouver Island would ben e f i t l a r g e l y by being placed i n the same p o s i t i o n to the B r i t i s h Crown as Newfoundland now occupies, having f u l l c o n t r o l of her own resources and developments.2 Other areas on Vancouver Island f e l l i n l i n e , meetings being '3 4 5 5. held at Saanich, Esquimalt, Cowichan, and Nanaimo, On October 14, 1880, De Cosmos had been 6 appointed by B r i t i s h Columbia to "act on behalf of the Govern-ment, to press upon the Dominion Government the importance of t h e i r c a r r y i n g out t h e i r agreement to constmet the Island 1. Standard, November 9, 1880. 2. I b i d . 3. Standard, November 23, 1880. 4. I b i d . 5. I b i d . 6. B r i t i s h Columbia Sessional Papers, 1881, p. 301. 58, s e c t i o n of the Canadian P a c i f i c Railway."1 The mission was un-successful e De Cosmos was informed that the tr a n s c o n t i n e n t a l l i n e would he completed i n ten years, the B r i t i s h Coluiabia s e c t i e n i n f i v e , hut the contract with the syndicate d i d not •include any railway construction on the i s l a n d . "Any condition of that kind would have caused the u t t e r f a i l u r e of the ne-2 g o t i a t i o n s of the whole P a c i f i c Railway." 3 Walkem again threatened secession. By t h i s time he was overdrawing the how for Macdonald wished he had a battery of a r t i l l e r y organized at V i c t o r i a to t u r n on the 4 "bumptious Islanders." Macdonald took a f i r m stand i n w r i t i n g to Walkem. As to the Island Railway, there i s not the s l i g h t e s t use i n speaking of i t j u s t now. We have ascertained that the pr o p o s i t i o n would be voted down i n both Houses. The en-gagements to b u i l d the Railway across the con-t i n e n t on the mainland are so heavy that the opposition, headed by Mr. Blake, are f i g h t i n g us to death. We s h a l l be able to beat them, but would c e r t a i n l y be beaten were we to propose to b u i l d the Island Railway. You must continue to make your f r i e n d s on the Island submit to the i n e v i t a b l e f o r the present at l e a s t . . . . 5 Hot s a t i s f i e d with the treatment received from Ottawa, B r i t i s h Columbia once more turned to the Imperial Government f o r help over the dispute of the Island Railway. On March 23, 1881, a p e t i t i o n to the Imperial Government was passed by the l o c a l House. The p e t i t i o n read as follows: 1. B r i t i s h Columbia Sessional Papers, 1880, p. 301. 2. Macdonald to Walkem, October 25, 1880. Macdonald Papers,142. 3. Walkem to Macdonald, November 12, 1880. Macdonald Papers 157. 4. Macdonald to Campbell, November 15, 1880. Macdonald Papers, 259. S i r A. Campbell M i n i s t e r of J u s t i c e i n the Macdonald ad m i n i s t r a t i o n , 5. Macdonald to Walkem, Pecember 27, 1880. Macdonald Papers,385 59, 1, That your Majesty w i l l he graciously pleased to cause the Dominion Government to . oe moved to carry out t h e i r "Railway o b l i g a t i o n s to the Province, by providing f o r the im-mediate commencement and a c t i v e prosecution of Railway work on the s e c t i o n of the Can-"* adian P a c i f i c Railway l y i n g between Esquimalt and Nanaimo,... . 2. That the Province be permitted to regulate and c o l l e c t i t s own T a r i f f and Customs and Excise u n t i l through communication by railway be e s t a b l i s h e d , . , , 3. That i n any event compensation be awarded by the Dominion to the Province f o r the losses i n f l i c t e d upon the l a t e r by reason of the breaches and delays herein r e f e r r e d to.1 De Cosmos, who was at t h i s time i n Ottawa, was "appointed S p e c i a l Agent and Delegate to proceed to London f o r the purpose of supporting the prayer of the p e t i t i o n to 2 Her Majesty," On A p r i l 13, 1881, De Cosmos addressed a l e t t e r to Macdonald asking f o r c r e d e n t i a l s . The l e t t e r also stated: As a matter of sound p o l i c y , any important matter i n dispute between a Province of Canada and the Dominion Govern-ment ought to be exhaustively considered by the representatives of the respective Governments at Ottawa before presenting an appeal f o r the consideration and d e c i s i o n of Her Majesty's Government,3 This was s i m i l a r to the course pursued by Walkem. when he was A . at Ottawa,before l e a v i n g f o r London i n 1874-^1-''course designed i n an e f f o r t to make the Dominion Government commit i t s e l f to the b u i l d i n g of the Island Railway, f o r the B r i t i s h Columbian p o l i t i c i a n s knew very w e l l that the administrations at Ottawa di d not favour Imperial i n t e r v e n t i o n . This l a t t e r notion, while not expressed d i r e c t l y i s conveyed i n a l e t t e r from T i l l e y to 1. Journals, L e g i s l a t i v e Assembly of B r i t i s h Columbia, p. 56. For - 19, Against - 4," 2. B r i t i s h Columbia Sessional Papers, 1882, p. 329. 3. Ibid,' 60, De Cosmos of May 16, 1881. S i r : S i r John A, Macdonald has desired that your l e t t e r to him of A p r i l , 13th. on the sub j e ct of the construction of * a railway between Esquimalt and Nanaimo, should be submitted to the Committee of the P r i v y Council, and I have today taken the opportunity of complying with t h i s request. You are aware that every e f f o r t i s now being put forward by the Government to construct the P a c i f i c Railway.,., With t h i s evidence of good f a i t h , . , we t r u s t that the people of B r i t i s h Columbia w i l l be s a t i s f i e d , and t h a t - i t w i l l be recognized that the Esquimalt and Nanaimo Railway should be l e f t over f o r the present, as a work which i s not e s s e n t i a l , In the meantime the Government of the Dominion w i l l a v a i l themselves of every opportunity of pressing the question of the construction of t h i s railway, as a p r i v a t e e n t e r p r i s e . , , . I t r u s t that the explanations which I have given you w i l l prove s u f f i c i e n t l y s a t i s f a c t o r y to you to render unnecessary your proposed mission to London.1 De Cosmos wrote to Walkem that t h i s l e t t e r was very u n s a t i s -f a c t o r y and " l e f t me no other course open but to proceed to 2 London at once," De Cosmos presented the p e t i t i o n of B r i t i s i 3 4 Columbia to Lord Kimberley i n London on June 13, 1881, De Cos-mos pointed out t h a t ; Ho settlement can be f i n a l and s a t i s f a c t o r y to the Province unless i t s h a l l include p r o v i s i o n s f o r the immediate com-mencement and a c t i v e prosecution of railway work on the sec t i o n of the Canadian P a c i f i c 1. B r i t i s h Columbia Sessional Papers, 1882, p. 333, 2, I b i d , 5, Supra, p. 59. 4. B r i t i s h Columbia Sessioanl Papers, 1882, p. 338, 61. Railway "between Esquimalt and Nanaimo,1 A f t e r considering the appeal of B r i t i s h Columbia and an order-in-counci1 of the Dominion Government f o r May 19, 1881, Kimberley a r r i v e d at the f o l l o w i n g con-c l u s i o n i n regard to the Island Railway, "The construction by the Dominion Government of a l i g h t l i n e of railway from Nanaimo 3 to Esquimalt," Kimberley Ts suggestion i n view of the f a c t that t r a f f i c on the mainland would i n time be c a r r i e d on the i s l a n d l i n e was rather weak. E i t h e r he lacked an i n s i g h t into the future development of Canadian P a c i f i c Railway transport i n B r i t i s h Columbia, or else he might have knowingly made the suggestion, b e l i e v i n g that B r i t i s h Columbia would t u r n i t down. B r i t i s h Columbia's appeal f o r the construction of the Island Railway was very weak and hence i t looks i n t h i s instance as i f the Imperial Government favoured the stand taken by the Dominion Government, On h i s return to Ottawa, De Cosmos i n -terviewed Macdonald and Tupper to see i f they would approach Stephen and Ross of the Canadian P a c i f i c Railway syndicate, with the view of drawing up a contract f o r the construction of 4 the Esquimalt and Nanaimo Railway, A f t e r some consideration the syndicate f i n a l l y announced that i t would not undertake 5 the work. Having f a i l e d again to secure the construction of 1, B r i t i s h Columbia Sessional Papers, 1882, p. 333. 2, I b i d . p. 340. This document pointed out the large f i n a n c i a l expenditure made by the Dominion Government i n B r i t i s h Columbia since the l a t t e r ' s entrance i n t o Confederation, Ex-penditures - $5,995,289. Receipts - $4,175, 238. This was exclusive of railway disbursements. 3, B r i t i s h Columbia Sessional Papers, 1882, p. 344. 4, I b i d . 5, Standard, February 9, 1882, 62 the Island Railway as a Dominion undertaking, B r i t i s h Columbia was ready to e n t e r t a i n proposals from pri v a t e companies to un-dertake the work. To enable the l o c a l government to make a con-t r a c t - w i t h a p r i v a t e company, Walkem repealed the Nanaimo R a i l -way Act of 1875, which had reserved a s t r i p of land, twenty miles i n width, along the eastern coast of Vancouver Island, 1 between Seymour Narrows and Esquimalt. In the session of the l o c a l government f o r 1882, a p e t i t i o n was presented i n favour of l.M. Clement, D. Jordan, San Francisco, A.J. Rhodes, Nevada, J.H. Turner and T. E a r l e , V i c t o r i a , to be incorporated as the "Vancouver Land 2 and Railway Company," with power to b u i l d a railway from Esquimalt to Seymour Narrows. At the same time a p e t i t i o n was presented i n favour of R<. Dunsmuir, J , Dunsmuir, J„ Bryden, Nanaimo, L. Stanford, C,E. Crocker, C a l i f o r n i a , C. P. Hunting-ton, New York, to be incorporated as the " V i c t o r i a , Esquimalt 3 and Nanaimo Railway Company'.' The f i r s t p e t i t i o n became enacted on A p r i l 21, 1882, while the l a t t e r one d i d not receive the 4 assent of the L e g i s l a t i v e Assembly. 17.' Journals, L e g i s l a t i v e Assembly of B r i t i s h Columbia, 1882, jp e 53 o 2. I b i d . p. 26. 3. I b i d . p. 29. 4. Why Dunsmuir f a i l e d to get the charter at t h i s time i s not quite c l e a r , Truteh stated that the defeat of the Dunsmuir b i l l r e s u l t e d from the p u b l i c a t i o n of a telegram from De Cosmos, s t a t i n g that the Dominion Government had arranged c o n d i t i o n a l l y with Dunsmuir f o r the construction of the Island Railway with a grant of money to him i n a i d of t h i s work, which grant however would be held to be compensation i n f u l l f o r a l l claims of the province on account of delay i n the f u l f i l m e n t of the terms of union. I t was thought that the Clement Company would b u i l d the railway f o r the consideration of the lands only. This would s t i l l enable B r i t i s h Columbia to make i t s claims f o r compensation against the Dominion Government f o r railway delays, Macdonald Papers, 268, 63. The apparent s o l u t i o n to the Esquimalt and Nanaimo ra i l w a y problem was a momentary one, f o r the Clement Company could not r a i s e the necessary finances". To f u r t h e r weaken the p o s i t i o n of B r i t i s h .Columbia,the repealing of the , Esquimalt and Nanaimo Railway Act of 1875, appeared to have r e l i e v e d the Dominion of whatever measure of a c t u a l o b l i g a t i o n i t had i n regard to the construction of the Island Railway. This l a t t e r n o tion was conveyed i n a l e t t e r from Macdonald to Trutch. The insane a c t i o n of the B r i t i s h Columbia l e g i s l a t u r e i n repealing the Land Act w i l l be held as you suggest to be a d i s -charge of any o b l i g a t i o n r e a l or supposed r e s t i n g on the Dominion to b u i l d the Island Railway,,,. Personally I am i n favour of a i d -i n g the construction of the Island Railway and I w i l l go any reasonable length to i n -duce my colleagues to a s s i s t i t s construction.. . .2 Conditions appeared more favourable f o r a settlement of the Esquimalt and Nanaimo Railway dispute when 3 Smithe Ts government assumed o f f i c e on January 30, 1883. The 4 administration's task was to end the "Fight Canada P o l i c y " and 5 . to secure, as John Rob son termed i t , " an Honourable Peace'/ As the p o s i t i o n of the l o c a l government had been weakened by the actions of the previous administratIon over Island Railway matters, Trutch thought that the time was p r o p i t i o u s to make a f i n a l settlement of railway a f f a i r s . On May 4th. he presented the f o l l o w i n g proposals to Smithe Ts government. 1. Walkem to Macdonald, J u l y 9, 1882. Macdonald Papers, 268, 2. Macdonald to Trutch, December 28, 1882, I b i d , 3. C o l o n i s t , February 2, 1883. 4. I b i d , February 9, 1883 5. I b i d , 64. Pro-Yince s h a l l grant Pom i n ion Govern-• ment lands on Vancouver Island s p e c i f i e d i n Dunsmuir ?s proposal f o r construction of Island Railway.... Province, s h a l l t r a n s f e r to Dominion Government 3,500,000 acres of land i n the.Peace * River d i s t r i c t . . . , P r o v i n c i a l Government s h a l l procure Incorporation Act f o r p a r t i e s designated "by Dominion Government f o r construction of r a i l -way on Vancouver Island.... $750,000 w i l l be paid by the Dominion Government as work proceeds to the company incorporated by l o c a l L e g i s l a t u r e , company giv e i n g s a t i s f a c t o r y s e c u r i t y f o r completion of railway from Esquimalt to Nanaimo, w i t h i n three years from date of i n c o r p o r a t i o n , ! Smithe embodied these propositions, with c e r t a i n changes, i n "An Act r e l a t i n g to the Island Railway, the. 2 Graving Dock and the Railway Lands of the Province," The trans-f e r of the 3,500,000 acres of land i n the Peace River d i s t r i c t was made on condition that the Dominion Government would secure construction of a railway from Esquimalt to Nanaimo Within three years a f t e r date of inco r p o r a t i o n of the company. This change v i r t u a l l y made the Dominion Government responsible f o r the b u i l d i n g of the road. Another change also stated that the lands of Vancouver Island w i t h i n the railway b e l t , should be open f o r four years a f t e r passing of the Act to s e t t l e r s at 3 the rate of $1,00 an acre. Macdonald d i d not approve of these a l t e r a t i o n s to h i s o r i g i n a l proposals and apparently another deadlock had been reached between the two governments, Macdonald's disapproval of Smithe»s pro-cedure i s conveyed i n a l e t t e r w r i t t e n to LieutenanttGovernor 1. Macdonald to Trutch, May 3, 1883. Macdonald Papers, 111, 6! 2. ' Statutes of B r i t i s h Columbia, 1883, Ch. 14. 3. I b i d . See appendix D. C.F. Cornwall. The l e t t e r f o l l o w s . I t i s exceedingly -unfortunate that B r i t i s h Columbia d i d not conform to the terms of the agreement. They were as you know.,.. A l l -this, was done f o r the purpose of making a - : f i n a l close of the matters i n dispute between the two governments, so as to make a new s t a r t . The B r i t i s h Columbia Act instead of carr y i n g out t h i s agreement makes our govern-ment responsible f o r the b u i l d i n g of the road. True, i n order to enable us to do so i t gives us the machinery of a Railway Company, but we are made the contractorg with the B r i t i s h Columbia Government to construct the railway. This of course leaves the whole question open and no f i n a l settlement made. I t would be use-l e s s f o r us to apply to our Parliament to con-f i r m such an agreement, Another clause was put i n the Act which we had not assented t o , namely, that f o r four years the lands on each side of the Railway should be s o l d at one d o l l a r an acre. Whether t h i s i s a f a i r p r i c e or not we don't know, but i t i s obvious that t h i s l i m i t a t i o n would hamper u s - i n any arrangements we might make with the c a p i t a l i s t s who might undertake to b u i l d the ~X- 0<3iCi. You must remember that your l e g i s l a t u r e , by r e p e a l i n g the Act assigning lands on Vancouver Island i n a i d of the railway, freed us from a l l l e g a l or equitable r e s p o n s i b i l i t y to b u i l d the Island Railway. I have no doubt that the agree-ment as we understand i t w i l l meet with f i e r c e opposition from Blake and company, but I have also no doubt that the opposition w i l l be f r u i t -l e s s so long as the Canadian Government are not d i r e c t l y responsible f o r the construction of the r o a d l . At the same time Macdonald sent Trutch the f o l l o w i n g telegram. When P r o v i n c i a l l e g i s l a t u r e amends Island Railway Act and confines Dominion l i a b i l i t y to money subsidy and repeals p r o v i s i o n f i x i n g p r i c e at one d o l l a r f o r four years, Government w i l l make immediate arrangements f o r organization of Company,,, .2 To make s a t i s f a c t o r y arrangements f o r a 1. Macdonald to Cornwall, June 11, 1883, Macdonald Papers, l e t t e r Book 22, 150. 2. Macdonald to Trutch, June 11, 1883, Macdonald Papers, l e t t e r Book 22, 156. 66. settlement of the d i f f e r e n c e s "between B r i t i s h Columbia and Canada, S i r Alexander Campbell, M i n i s t e r of J u s t i c e i n the Macdonald ad m i n i s t r a t i o n , came to B r i t i s h Columbia on Ju l y 27, 1. 1883. .On August 20, 1883, he drew up a p r o v i s i o n a l contract f o r the construction of the Esquimalt and Nanaimo Railway with Robert Dunsmuir, James Dunsmuir, John Pryden, a l l of B r i t i s h Columbia and Charles Crocker, Charles E. Crocker, Leland Stan-f o r d , C a l i f o r n i a , and C o l l i s P. Huntington of New York? By t h i s time i t had become apparent that i f a f i n a l settlement was to be reached between the two governments, the Dominion Government would d i c t a t e the terms of the s e t t l e -ment. This was what a c t u a l l y happened when the l o c a l government amended "An Act r e l a t i n g to the Island Railway/, the Graving Dock, and Railway Lands of the Province," on December 19, 1883, Section k of the above act stated:' This agreement i s to be taken by the Province i n f u l l of a l l claims up to t h i s date by the Province against the Dominion, i n respect of delays i n the commencement and construction of the Canadian P a c i f i c Railway, and i n respect of the non-commencement of the Esquimalt and Nanaimo Railway, and s h a l l be taken by the Dominion Government i n s a t i s f a c t i o n of a l l claims f o r a d d i t i o n a l lands under the Terms of Union, but s h a l l not be binding unless and u n t i l the same s h a l l have been r a t i f i e d by the Parliament of Canada and the 'Legislature of B r i t i s h Columbia,3 The passing of An Act r e l a t i n g to the Island Railway, the Graving Dock, and the Railway Lands of the Province 1, Dominion Sessional Papers, 1884, Sessional Paper # 15. 2, I b i d , See appendix E f o r the contract f o r the construction of the Esquimalt and Nanaimo'Railway, 3, Statutes of B r i t i s h Columbia, 1884, Ch. 14. See appendix E f o r the f u l l content of the clauses p e r t a i n i n g to thd Island Railway, The Dominion Government gave i t s assent to the Act of Settlement, as i t was l a t e r c a l l e d , on A p r i l , 19, 1884. Statutes of Canada, 1884, pp. 55-70. 67. was by no means popular.on Vancouver Island at that time and t h i s view increased as the years went by. To secure the con-s t r u c t i o n of a railway 75 miles long, B r i t i s h Columbia gave 1 away £,700,000 acres of land,or p r e c i s e l y 62,66 6 acres per 'mile. At a v a l u a t i o n of $10.00 per acre t h i s amounted to $626, 6 60.00 per mile, an arrangement f a r beyond a l l sense of pro-p o r t i o n . The arrangements made, leave l i t t l e doubt that the Act of Settlement was accepted as a matter of necessity by the. weaker of the two contestants. " S i r John A. Macdonald has made hi s own terms instead of the P r o v i n c i a l Government making bette 2 terms," Various opinions have been expressed as to the wisdom of the Act of Settlement so f a r as B r i t i s h Columbia 3 was concerned. Judged by l a t e r events, i t was a serious mis-take on the part of B r i t i s h Columbia, but i n a l l f a i r n e s s several s p e c i a l circumstances must be taken i n t o consideration. F i r s t , there i s l i t t l e doubt, that the anxiety both i n V i c t o r i a and on Vancouver Island to have the Esquimalt and Nanaimo R a i l -way b u i l t helped to put the Dominion Government i n a p o s i t i o n to d i c t a t e whatever terms .they chose to pick i n r e l a t i o n to the Island Railway. Secondly, the c a n c e l l a t i o n of the Esquimalt I T 'This included 2,000,000 acres on Vancouver Island and 2,700, 000 acres i n the Peace River d i s t r i c t . About 800,000 acres i n the same area were given to the Dominion Government to -make up f o r deficiences i n the railway b e l t on the mainland. Macdonald personally, was quite w i l l i n g to recommend a sub-sidy of $750,000 to the Esquimalt and Nanaimo Railway, with-out the c o u n t e r v a i l i n g bonus of 2,700,000 acres i n the Peace River d i s t r i c t . But upon submitting the proposal to caucus i t was stubbornly opposed, and he was obliged to supplement i t with the extra land i n order to,,make the proposal acceptable to h i s government. Goshall, R,E., op, c i t . p. 129 2. ' Standard, May 28, 1884. 3, Supra, p. 12.' 68, and Nanaimo Railway Act of 1875, which haa reserved c e r t a i n railway lands on Vancouver Island i n accordance with the order-i n - c o u n c i l of June 7, 1873, l i f t e d any l e g a l o b l i g a t i o n on the part Of the Dominion Government to b u i l d the Island Railway. Moral l y , there was a case f o r the Island Railway being b u i l t by the Dominion Government, -but the strength of a moral obligation i n a dispute of t h i s nature generally has l i t t l e e f f e c t on the f i n a l settlement. The negotiations which were carried, out i n an e f f o r t to s e t t l e the Esquimalt and Nanaimo Railway d i s -pute covered a period of ten years. During t h i s time p o l i t i c i a n s both B r i t i s h Columbian and Dominion, sought by one means or another to b r i n g about a f i n a l settlement between the two governments. Mackenzie i s u s u a l l y conclemed f o r the manner i n which he handled the problem of the Island Railway, but h i s attempts to b r i n g about.an agreement with B r i t i s h Columbia were cut o f f by the unstatesmanlike conduct of Walkem. Also, i t must be remembered that Mackenzie never made the i n i t i a l promise of a railway to the people of Vancouver Island. As the negotiations between the two governments have been presented, one i s con-vinced that Macdonald, the past master i n the a r t of pl a y i n g p o l i t i c s , i s deserving of condemnation. Had Macdonald never l e d the people of Vancouver Island i n t o the b e l i e f that Esquimalt was to be the terminus of the Canadian P a c i f i c Railway, B r i t i s h Columbia could never have presented a ease f o r the construction of the- Island Railway by the Dominion Government, B r i t i s h Columbia e f f o r t s to secure the construction of the Esquimalt and Nanaimo Railway by the 69, Dominion Government were i n a large measure due to the p o l i t i c a l influence of Vancouver Island, p a r t i c u l a r l y V i c t o r i a , The only ground on which B r i t i s h Columbia could advance any f o r c i b l e argument f o r the construction of the Island Railway as a sec-* t i o n of the Canadian P a c i f i c Railway, was the order-in-coiuic.11 of June 7, 1873, and the Carnarvon terms of 1874, However, both of these arrangements f e l l through and B r i t i s h Columbia's con-s i s t e n t arguments f o r the Island Railway secured the worst part of the f i n a l settlement f o r B r i t i s h Columbia, as embodied i n the Act of Settlement, i n r e l a t i o n to the Island Railway, Although the e f f o r t s to secure a railway on Vancouver Island were r e a l i z e d , at a cost to B r i t i s h Columbia beyond a l l sense of proportion, the Esquimalt and Nanaimo Railway was never b u i l t as the Vancouver Island s e c t i o n of the Canadian P a c i f i c Railway, 70 Appendices A. P e t i t i o n of., the residents of New Westminster to Governor Musgrave, December 8, 1870, i n regard to the choice of a terminus f o r the Canadian P a c i f i c Railway. 71. B» Memorandum of an interview held on November 18, 1876, with Lord D u f f e r i n , Mr, A. Mac-kenzie and Mr. E. Blake i n attendance, 72. C, WalkemTs r e s o l u t i o n which was introduced i n -to the L e g i s l a t i v e Assembly of B r i t i s h Columbia on May 7, 1880, 73. D, Section 23 of An Act r e l a t i n g to the Island Railway, the Graving Dock, and Railway Lands of the Province. May 12, 1883. 74. S. Contract f o r the construction of the Esq.uim.alt and Nanaimo Railway, 75, E, Sections 23, 24, 25 and 26 of An Act r e l a t i n g to the Island Railway, the Graving Dock, and Railway Lands of the Province, §i, 71. Appendix A, P e t i t i o n of the residents of lew Westminster to Governor Musgrave, December 8, 1870, i n regard to the choice of a terminus f o r the Canadian P a c i f i c Railway. That a c e r t a i n p e t i t i o n of a p o r t i o n of the inhabitants of the C i t y of V i c t o r i a asking your Excellency to place your-s e l f i n communication w i t h the Government of the Dominion of Canada i n regard to making the terminus of the t r a n s - c o n t i n e n t a l r a i l r o a d at V i c t o r i a or Esquimalt, or i n the event of that being found impracticable, the construction of a r a i l r o a d from V i c t o r i a to Nanaimo. The p e t i t i o n representing said p o r t i o n i s t o t a l l y at variance with the ideas and wishes of the Colony generally, and i s s e l f i s h , s e c t i o n a l , and u n f a i r . That other portions of the Colony might with equal j u s t i c e p e t i t i o n f o r l i k e s p e c i a l b e n e f i t s to be granted them, and that a l l and. such p e t i t i o n s i f forwarded to the Canadian Government might endanger the carrying out of the favourable terms negotiated by our delegates, e s p e c i a l l y the clause r e f e r r i n g to the commencement of the r a i l r o a d w i t h i n two years from the date of union. That your p e t i t i o n e r s pray, the prayers of af o r e s a i d p e t i t i o n of a p o r t i o n of the inhabitants may be refused, and that no communication on behalf of any section of the Colony, i n regard to a l t e r i n g or i n t e r f e r i n g with the terms of Con-fede r a t i o n be forwarded to the Government of Canada, u n t i l such p e t i t i o n f i r s t obtain the consent of the whole Colony through t h e i r rep-resentative i n the l e g i s l a t i v e Council. 1 Mainland Guardian, December 10, 1870, Appendix B. Memorandum of an interview held on November IS, . 1876, with l o r d Dufferin,Mr. A. Mackenzie and Mr. E. Blake i n attendance. A long and p a i n f u l d i s c u s s i o n ensued on the con-s t r u c t i o n and meaning of the Minutes of Council regarding Columbian Railway disputes. His Ex-cel l e n c y was pleased to characterize the passages regarding or r e l a t i n g to the compensation to be covered by the construction of the Island R a i l -way i n very strong terms. He s a i d they were de-c e i t f u l and most d i s g r a c e f u l and that i f he had understood them he would have refused h i s assent and protected Lord Carnarvon from occupying f a l s e ground. I again t o l d him that i n my judgement the Minutes of Council, would only bear one mean-ing , that we surely d i d not propose to b u i l d the railway f o r nothing, the something required there-fore such time as was required and that there was no dispute i n 1874 as to what that was, I t o l d him we had so f a r observed the Carnarvon terms a l l except the b u i l d i n g of the railway from Esquimalt to Nanaimo. That every person must have known that p a r t i c u l a r item required the assent of Parliament, That t h i s assent could not be forced from the Senate and having f a i l e d we had at once proposed as a s u b s t i t u t e a money payment which we agreed to propose to Parliament. His Lordship then said that we had t r i e d to carry the Senate, that the mamagement of i t by members of the Government i n the Senate was miserable and d i s g r a c e f u l and, that we had not organized a proper whip, and that a member r e c e n t l y named by us had voted against the b i l l . . , . I c a l l upon you as Prime M i n i s t e r to answer me now and I i n s i s t upon an answer. I c a l l upon you to t e l l me d i s t i n c t l y what you meant by compensation f o r delays i n your Minute r e f e r r i n g to the Island Railway. I t o l d him that I thought the Minute and context was quite c l e a r as to compensation. In a few minutes he asked me i f we took the ground that the construction of the Island Railway wasra general compensation . I sa i d i t was. He at once sprang to h i s feet and i n a very v i o l e n t tone s a i d "Well a f t e r t hat, there i s no use having any f u r t h e r d i s c u s s i o n . I f e e l ashamed Memorandum, Mackenzie Papers, 11, 781. 73, Append! On May 7, 1880, Walkem introduced the f o l l o w -i n g r e s o l u t i o n into the l e g i s l a t i v e Assembly of B r i t i s h Columbia, Whereas t h i s House f r e e l y concedes to the Dominion Government, due c r e d i t f o r the steps taken by them towards commencing const r u c t i o n of the Canadian P a c i f i c R a i l -way on the Mainland, and i s moreover de-sirous that the work should be a c t i v e l y prosecuted. I t i s , nevertheless, of opinion that the Dominion Government should be re-s p e c t f u l l y informed that the f u l f i l m e n t of the o b l i g a t i o n s assumed by them i n 1874 to immediately commence and f i n i s h the p o r t i o n of the main l i n e l y i n g between Esquimalt and Nanaimo should not, i n j u s t i c e to the Province be deferred beyond the spring of 1881.1 Trutch has l e f t us an account-of Walkem's behaviour on t h i s occassion. I t was c l e a r l y not intended that any opportunity should be afforded me of p l a c i n g before the Government and Leg-i s l a t u r e any remarks tending to remove the erroneous impression'which the language of the Order-in-Council conveyed, and which was more c l e a r l y and d e f i n i t e l y expressed by Mr, Walkem i n the House of Assembly, v i z . , that the request of the Dominion Government went to the e f f e c t of r e q u i r i n g that a l l public 1 lands of the Province should be held under re s e r v a t i o n - locked up as he sai d - f o r years, w h i l s t the Dominion Government was making i t s s e l e c t i o n of the lands i t . would r e j e c t , and those i t would take i n exchange. At the l a s t i nterview I had with Mr. Walkem he assumed that t h i s was the i n t e n t i o n of the Dominion.2 Journals, L e g i s l a t i v e Assembly of B.C., 1880, p. 43, 2. Trutch Papers, 11, 60. 74 Appendix D, Section 23 of An Act r e l a t i n g to the Island Railway, the Graying Rock, and Railway Lands of the Province, passed by the L e g i s l a t i v e Assembly of B r i t i s h Columbia on May 12, 1883, 23, The lands on Vancouver Island to be so conveyed s h a l l , except as to coal and other minerals, and also except as to timber lands as h e r e i n a f t e r mentioned, be open f o r four years from the passing of t h i s Act to a c t u a l s e t t l e r s , f o r a g r i c u l t u r a l purposes, at the rate of one d o l l a r an acre, to the extent of 160 acres to each ac t u a l s e t t l e r ; and i n any grants to s e t t l e r s the r i g h t to cut timber f o r railway purposes and r i g h t s of way f o r the railway, and s t a t i o n s , and workshops, s h a l l be reserved,! 1. Statutes of B r i t i s h Columbia, 1883, Chap, 14, 7 5 . Appendix E. Contract f o r the construction of the Esquimalt and lianaimo Railway, A r t i c l e s of Agreement made and entered into t h i s twentieth day of August, i n the year of our l o r d , One thousand eight hundred and eighty-three. Between Robert Bunsmuir, James Dunsmuir and John Bryden, a l l of Nanaimo, i n the Province of B r i t i s h Columbia; Charles Crocker, Charles E. Crocker, and l e l a n d Stanford, a l l of the C i t y of San Francisco, C a l i f o r n i a , United Staes of America, of the f i r s t p a r t , and Her Majesty Queen V i c t o r i a , represented herein by the M i n i s t e r of Railways and Canals, of the second part.. Whereas, i t has been agreed by and between the Governments of Canada and B r i t i s h Columbia.,.. And whereas, the p a r t i e s hereto of the f i r s t part are associated together f o r the purpose of con-s t r u c t i n g or c o n t r a c t i n g f o r the construction of a railway and telegraph l i n e from Esquimalt to Nanaimo, and are hereafter r e f e r r e d to as the s a i d contractors: Now These Present Witness, that i n consideration of the covenants and agreements on the part of Her Majesty h e r e i n a f t e r contained, the said con-t r a c t o r s covenant and agree with Her Majesty as f o l l o w s : -1. In t h i s contract the word "work" or "works" s h a l l , unless the context requires a d i f f e r e n t meaning, mean the whole of the works, m a t e r i a l , matter and things to be done, furnished and performed by the s a i d contractors under t h i s contract. 2. A l l covenants and agreements herein contained s h a l l be binding on and extend to the executors, ad-m i n i s t r a t o r s and assignees of the s a i d contractors, and s h a l l extend and be binding upon the successors of Her Majesty; and wherever i n t h i s contract Her Majesty i s r e f e r r e d t o , such reference s h a l l i n -clude t h e i r executors and administrators, 3. That the s a i d contractors s h a l l and w i l l w e l l , t r u l y and f a i t h f u l l y l a y out, make, b u i l d , con-s t r u c t , complete, equip, maintain and work con-t i n o u s l y a l i n e of railway of a uniform guage of .4 feet 8 i inches, from Esquimalt to Nanaimo i n Vancouver Island, B r i t i s h Columbia, the points and approximate route and course being shown on the map heremito annexed, and also construct, maintain and work continously a l i n e of telegraph throughout and along tha s a i d l i n e of railway, and supply a l l such telegraphic apparatus as may he required f o r the proper equipment of such telegraph l i n e , , and perform a l l engineering s e r v i c e s , whether i n the f i e l d or i n .preparing plans or doing other o f f i c e work, t o the en t i r e s a t i s f a c t i o n of the Governor i n Council, 4, That the s a i d contractors s h a l l and w i l l locate and construct the said l i n e of railway i n as s t r a i g h t a course as p r a c t i c a b l e "between Esquimalt and Nanaimo, wi t h only such deviations as may seem absolutely indispensable to avoid serious engineering obstacles, and as s h a l l be allowed by the Governor i n Council, 5, That the gradients and alignments s h a l l be the best that the p h y s i c a l features of the country w i l l admit of without, i n v o l v i n g unusually or unnecessary heavy works of construction, with respect to which the Governor i n Council s h a l l decide, 6, That the s a i d contractors s h a l l and w i l l f u r n i s h p r o f i l e s , plans and b i l l s of quantites of the whole l i n e of railway i n ten mile sections, and that before the work i s commenced on any ten mile section, such p r o f i l e s , plans and b i l l s of q u a n t i t i e s s h a l l be approved by the Governor i n Council, and before any payments are made the said contractors w i l l f u r n i s h such f u r t h e r re-turns as may be required to s a t i s f y the M i n i s t e r of Railways and Canals as to the r e l a t i v e value of the works executed with that remaining to be done, 7, That the M i n i s t e r of Railways and Canals may keep and r e t a i n f i v e per cent of the subsidy, or of such part thereof as the said contractors may b e ' e n t i t l e d t o , f o r three months a f t e r the completion of the said, railway and telegraph l i n e and the works appertaing thereto, and f o r a, fu r t h e r period, u n t i l the said M i n i s t e r of Railways and Canals i s s a t i s f i e d that a l l f a i l -ures or defects i n said l i n e of railway and telegraph l i n e , r e s p e c t i v e l y , and the works appertaing thereto that-may have been discovered during the s a i d period of three months, or such f u r t h e r period, have been permanently made good, and that no lands s h a l l be conveyed to the s a i d contractors u n t i l the road i s f u l l y c?, completed and equipped, 8, That the s a i d contractors s h a l l commence the works embraced i n t h i s contract f o r w i t h , and s h a l l complete and equip the same by the 10th, day of June 1887, time being declared material and of the essence of the contract, and i n de-f a u l t of such completion and equipment, as af o r e s a i d , on or before the l a s t mentioned date, the said contractors s h a l l f o r f e i t a l l r i g h t , claim or demand to the sum of money and per cehtage hereinbefore agreed to be retained by the M i n i s t e r of Railways and Canals, and any and every part thereof, and also to any moneys whatever which may be at the time of the f a i l u r e of the com-p l e t i o n as aforesaid due or owing to the said contractors, and also to the land grant and also to the moneys to be deposited as he r e i n a f t e r mentioned.. 9. That the said contractors w i l l upon, and a f t e r the completion and equipment of the said • Tine of railway and works appertaing thereto t r u l y , and i n good f a i t h , kepp and maintain the same, and the r o l l i n g stock required there-fore i n good and e f f i c i e n t working and run-ning order, and s h a l l continuously and i n good f a i t h operate the same, and also the sai d telegraph l i n e and appertainances i n good running order. 10. That the s a i d contractors w i l l b u i l d , con-s t r u c t , complete and equip the said l i n e of railway and works appertaining thereto i n a l l respects and i n accordance with the s p e c i f i c a t i o n hereunto marked"A7« 11. That the character of the railway and i t s equipments s h a l l be i n a l l respects equal to the general character of the Canadian P a c i f i c Railway, how under construction i n B r i t i s h Columbia, and the equipments thereof, 12, And that the s a i d l i n e of railway and telegraph l i n e , and a l l work appertaing thereto r e s p e c t i v e l y , together with a l l franchise r i g h t s , p r i v i l e g e s , property, personal and r e a l estate of every character appertaing thereto, s h a l l upon the completion and equipment of the s a i d l i n e of railway and works appertaing thereto, i n so f a r as Her Majesty s h a l l have power to grant the same r e s p e c t i v e l y , but no f u r t h e r , or otherwise, be the property of the s a i d contractors. 13, And Her Majesty in. consideration of the prem^s i s e s , hereby covenants and agrees to permit the admission free of duty a l l s t e e l r a i l s , f i s h - p l a t e s and fastenings, spikes, b o l t s and nuts, wire, timber and a l l material f o r bridges to be used i n the o r i g i n a l con-s t r u c t i o n of the r a i l w a i y , and telegraphic apparatus required f o r the f i r s t equipment of the telegraph l i n e ; and to grant to the said contractors a subsidy i n money of $750,000 (seven hundred and f i f t y thousand d o l l a r s ) , and i n land, a l l of the land 78, s i t u a t e d on Vancouver Island (except such parts thereof as may have at any time here-tofore teen reserved f o r naval or m i l i t a r y purposes, i t having "been intended that a l l of the lands so reserved should "be excluded from the operation of the-Act passed by the l e g i s l a t u r e of the Province of B r i t i s h Columbia, i n the year 1883, e n t i t l e d "An Act r e l a t i n g to the Island Railway, the Graving. Dock and Railway lands of the Province", i n l i k e manner as Indian reserves are ex-cluded therefrom), which has been granted to Her Majesty by the Government of B r i t i s h Columbia by the aforesaid Act i n consideration of the construction of the s a i d l i n e of r a i l -way, i n so f a r as such land s h a l l be vested i n Her Majesty, and held by Her, f o r the purposes of the sa i d railway, or f o r the purpose of constructing or to a i d i n the construction of the same, and also a l l c o a l , coal o i l , ores, stones, c l a y , marble, s l a t e , mines, minerals and substances whatsoever i n on or under the lands so agreed to be granted to the sa i d eon-t r a c t o r s as a f o r e s a i d , and border on the sea, together with the p r i v i l e g e s of mining and keeping f o r t h e i r own use a l l coal and minerals (here-i n mentioned) under the foreshore or sea opposite any such lands, i n so f a r as such co a l , coal o i l , ores, stones, clay, marble, s l a t e , mines, minerals, and substances what-soever, and foreshore r i g h t s are owned by the Dominion Government, f o r which stibsidies the construction of the railway and telegraph l i n e from Esquimalt to Nanaimo s h a l l be com-pleted, and the same s h a l l be equipped, main-tained, and operated, 14. The s a i d money subsidy w i l l be paid to the s a i d contractors, by instalments, on the completion of each ten miles of railway and telegraph l i n e , such instalments to be pro-portionate to the value of the part of the l i n e completed and equipped i n comparison with the whole of the works undertaken, the proportion to be established by the report of the M i n i s t e r of Railways and Canals, 15, The land grant s h a l l be made, and the land, ; i n so f a r .as the same s h a l l be vested i n Her Majesty and held by"Her Majesty f o r the purposes of the said r ailway, or f o r the purposes of constructing, or to a i d i n the construction of the same, s h a l l be conveyed to the sa i d contractors upon the completion of the whole work to the e n t i r e s a t i s f a c t i o n of the Governor i n Council, but so, neverthe-l e s s , that the said lands, and the coal o i l , . c o a l , and other minerals and timber theremitter, t h e r e i n or thereon, s h a l l be subject i n every respect to the several clauses, provisions and s t i p u l a t i o n s r e f e r r i n g to or a f f e c t i n g the same, r e s p e c t i v e l y , contained i n the aforesaid Act passed by the l e g i s l a t u r e of B r i t i s h Columbia, entitled,„.as the same may be amended by the L e g i s l a t u r e of the s a i d Province, i n accordance with a Draft B i l l now prepared, which has been i d e n t i f i e d by S i r Alexander Campbell and the Hon, Mr, Smithe, and signed by them and placed i n the hands of the Hon. Joseph William Trutch, and p a r t i c u l a r l y to sections 23, 24, 25 and 26 of the s a i d Act, .And i t i s hereby f u r t h e r agreed by and between Her Majesty, represented as aforesaid, and the s a i d contractors that the said contractors s h a l l , w i t h i n ten days a f t e r the execution hereof by Her Majesty, represented as afore-s a i d , or by the said M i n i s t e r on behalf of Her Majesty, apply to the Governemnt of Canada to be named by the Governor i n Council as the persons to be incorporated under the name of the Esquimalt and Nanaimo Railway Company, and that' immediately a f t e r the s a i d contractors s h a l l have been incorporated, t h i s contract s h a l l be assigned, and t r a n s f e r r e d by them to the s a i d company, and such company s h a l l f o r -w i t h , by deed entered i n t o by and between Her Majesty, represented as a f o r e s a i d , and the s a i d company, assume a l l the o b l i g a t i o n s and l i a b i l i t i e s incurred by the s a i d contractors hereunder or i n any way i n r e l a t i o n to the premises, The s a i d contractors s h a l l 1 , on the execution hereof, deposit with the receiver General of Canada the sum of $250,000 (two hundred and E i f t y thousand d o l l a r s ) i n cash as a s e c u r i t y fo r the construction of the railway and the telegfaph l i n e hereby contracted f o r . The Government s h a l l pay to the contractors i n t e r e s t on the cash deposited at the rate of 4 per cent per annum, h a l f y e a r l y , u n t i l de-f a u l t i n the performance of the conditions hereof or u n t i l the return of the deposit, and s h a l l return the deposit to the s a i d contractors on the completion of the said railway and telegraph l i n e according to the terms hereof with any i n t e r e s t accrued thereon, but i f the s a i d railway and telegraph l i n e s h a l l not be so completed, such deposit and a l l i n t e r e s t thereon which s h a l l not have been paid to the contractors s h a l l be f o r f e i t e d to Her Majesty f o r the use of the Government of the Dominion of Canada, In witness, where- • 80, of of the parties hereto have executed, these presents, the clay and year f i r s t above written. For the Minister of Railways and Canals, (Signed) A. Campbell Minister of Justice, " Robert Dunsmuir, ,T James Dunsmuir, " John-Dryden, " Charles Crocker, " Charles F. Crocker, » Leland Stanford, T_ " Col l i s ?. Huntington, 1 . Dominion Government Sessional Papers, 1884, Ho, 1 5 . 81. Appendix F, Sections 23, 24, 25 and 26 of An Act r e l a t i n g to the Island Railway, the Graving Hock, and Railway lands of the Province, passed by the l e g i s l a t i v e Assembly of B r i t i s h Columbia on December 19, 1883, 23, In the meantime, and u n t i l the Railway from Esquimalt to Nanaimo s h a l l have been completed, the Government of B r i t i s h Columbia s h a l l be the agents of the Government of Canada f o r administering, f o r the purposes of settlement, the railway lands on Vancouver Island; and f o r such purposes the Government of B r i t i s h Columbia may make and issue,pre-empt ion records to actual s e t t l e r s , of the said lands. A l l moneys received by the Government of B r i t i s h Columbia i n respect of such ad m i n i s t r a t i o n s h a l l be paid, as received, into•+he Bank of B r i t i s h Columbia, to the Receiver General of Canada, and such moneys, l e s s expenses incurred ( i f any), s h a l l , upon the completion of the railway to the s a t i s f a c t i o n of the Dominion Government, be paid over to the railway contractors, 24, The company s h a l l at a l l times s e l l coals gotten from the lands that may be acquired by them from the Dominion Government to any Canadian Railway Company having the terminus of I t s Railway on the seaboard of B r i t i s h Columbia, and to the Imperial and Dominion, and P r o v i n c i a l a u t h o r i t i e s , at the same rates as may be charged to any Railway Company owning or operating any Railway i n the United States, or to any f o r e i g n customer whatsoever. 25, A l l l a n i s a c quired by the company from the Dominion Government - under t h i s act, con-t a i n i n g b e l t s of timber f i t f o r m i l l i n g pur-poses s h a l l -be ..sold at a p r i c e to be here-a f t e r f i x e d by the Government of the Dominion or by the company hereby incorporated. 26, The e x i s t i n g r i g h t s of any persons or corporations i n any of the lands so to be acquired by the compny s h a l l not be affected by t h i s Act, nor s h a l l i t a f f e c t M i l i t a r y or Naval Reserves.1 1. 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I n it I I I I H II It I I I I I I I I Mainland Guardian I I n I I n it it Papers 1 8 7 3 - 1 8 8 4 , Assembly of B r i t i s h Columbia I T I I II It II II I I I I II It IT II II II I I II II II II II I I It II IT , It II Statutes of B r i t i s h Columbia 1 8 7 4 , n n it n 1 8 7 5 , n n I I n 1 8 8 3 , I I n tt it I I n I I I I I I I T I I I I 1 8 7 3 , 1 8 7 4 . 1 8 7 8 ' . 1 8 8 0 . 1 8 8 1 , 1 8 8 2 , 1 8 8 4 , O f f i c i a l P u b l i c a t i o n s , Dominion Government Debates of the House of Commons 1 8 7 1 . 1 8 7 2 . n n it it I I Tt II It II IT II II II 1 8 7 5 1 8 7 9 1 8 8 0 1 8 8 4 , Journals of the House of Commons 1 8 7 5 , Debates of the Senate 1 8 7 5 - 8 , Journals of the Senate 1 8 7 5 - 7 6 . 83, Dominion Government Sessional Papers 1880. "' " 11 " 1884. Statutes of Canada 1884, Master of Arts theses, U n i v e r s i t y of B r i t i s h Columbia. (Not published.) Johns, H,, B r i t i s h Columbia's Campaign f o r Better Terms. 1935, Ross, M.j Amor De Cosmos, a B r i t i s h Columbia Reformer, 1931. Phamphlets De Cosmos, Amor, Island Railway Papers, V i c t o r i a , 1880, Gosnell,R.E„, Memorandum f o r the Hon, Mr, Ju s t i c e Martin, Commissioner on reconveyance of land to B r i t i s h Columbia, Ottawa, 1927, Report of the Royal Commission on Reconveyance of land to B r i t i s h Columbia, Ottawa, King's P r i n t e r , 1928, P e r i o d i c a l s Howay, F.W., B r i t i s h Columbia's entry into Confederation. Canadian H i s t o r i c a l A s s o c i a t i o n , Annual Report, May 1927. Maxwell, J . , Lord D u f f e r i n and B r i t i s h Columbia. Canadian H i s t o r i c a l Review, December 1931, This a r t i c l e was w r i t t e n a f t e r a period of r e -search i n the Dominion Government Archives at Ottawa, Maxwell thinks that Lord D u f f e r i n i n h i s v i s i t to B r i t i s h Columbia went beyond the bounds of a c o n s t i t u t i o n a l Governor General. C r i t i c a l Period of B r i t i s h Columbia. P a c i f i c . H i s t o r i c a l Review, v o l , 1. S i r James Douglas, Fur-Trader and Governor. Canadian H i s t o r i c a l A s s o c i a t i o n , Annual Report, May 1925, The w r i t e r leaves the impression that S i r James Douglas, by h i s t r a i n i n g and nature, was not the man who could f i l l the r o l e of a c o n s t i t u t i o n a l Governor. P r i n t e d Sources Buckingham, W,, and Ross, G.W., The Hon, Alexander Mackenzie: His L i f e and Times, Toronto, 1892, An i n t e r e s t i n g biography of Mackenzie. His t h r i f t y nature i s revealed i n the manner i n which he handled the L i b e r a l administration while he was the leader of the party, Fleming, S., Reports on surveys and preliminary operations of the Canadian P a c i f i c Railway up to January 1877. Ottawa, King's P r i n t e r , 1877, From the time that Esquimalt was declared the terminus of the Canadian P a c i f i c Railway, Fleming was never i n favour of b r i d g i n g Seymour Harrows Sage, W.H., Sage, W.H., 84. to connect the Island Railway with the Canadian P a c i f i c Railway, Gosnell, R.E., The Story of Confederation, B r i t i s h Columbia Archives, 1918, The w r i t e r gives a good i n s i g h t into the part played by S i r John A. Macdonald i n b r i n g i n g B r i t i s h Columbia into Confederation, Herbert, R,, Speeches on Canadian A f f a i r s . London, John Murray, 190£. Lord Carnarvon's knowledge of Canadian a f f a i r s i s c l e a r l y shown, e s p e c i a l l y i n regard to the Canadian P a c i f i c Railway, Howay, E.W,, B r i t i s h Columbia: The Making Of A Province. Toronto, Ryerson Press, 1928, Howay, E.W,, and S c h o l e f i e l d , E.O.S., B r i t i s h Columbia. Van-couver, S.J, Clarice P u b l i s h i n g Company, A good source book f o r students of B r i t i s h Columbia h i s t o r y . The work i s f a i r l y d e t a i l e d . K e i t h , V i ' , , Responsible Government i n the Dominions, Oxford, U n i v e r s i t y Press, 1928. Edward Blake's b e l i e f i n Dominion autonomy i s c l e a r l y portrayed inrothis excellent study. Kennedy, W,, The C o n s t i t u t i o n of Canada, Oxford U n i v e r s i t y Langevin, W,, Report of B r i t i s h Columbia. Ottawa, 1872, Leggo, W., History of the Administration of the E a r l of D u f f e r i n i n Canada, Montreal, L o v e l l P r i n t i n g and P u b l i s h i n g Company, 1878, A very d e t a i l e d account of Dufferin's movements when he was i n B r i t i s h Columbia i s given. Ho attempt i s made to place the blame on Walkem f o r the f a i l u r e of the Edgar mission. However, that Walkem i n the above instance acted on p o l i t i c a l expediency i s very evident from the account given. Pope, J . , Memoirs of S i r John A. Macdonald, Londonm 1894 Macdonald i s portrayed i n the manner i n which we l i k e to think of him. S c h o l e f i e l d , E,0,S., and Gosnell, R.E,, S i x t y Years of Progress B r i t i s h Columbia H i s t o r i c a l A ssociation, 1915, This i s another good book f o r the student of B r i t i s h Columbia H i s t o r y , Gosnell who writes the l a t t e r h a l f of the book, i s i n c l i n e d to think that -after a l l the circumstances were taken into consideration, the Dominion Government should have b u i l t the Island Railway. An analysis of 85, the negotiations between the two governments shows that British Columbia's case for the construction of the Esquimalt and Nanaimo Rail-way was chiefly based on moral obligations, G-osnell apparently overestimates the strength of this type of obligation in a dispute be-tween two governments, Stewart, G-,, Canada under the Administration of the Earl of Dufferin. Toronto, Rose-Selford Publishing Company, 1878, This book places the blame for the failure of the Edgar negotiations on Edgar, not Walkem. The author draws this conclusion from the fact that Edgar by his nature was never intended for a diplomat. Had the author .studied Walkem more closely he would have undoubtedly reversed the above conclusion. Tup-per, Sir C., Recollections of Sixty Tears in Canada. London, 1914. . The account of Sir John A, Macdonald and his connection with the Canadian Pacific Railway is very good, Wittlce. C., A History of Canada, Hew York, A.A, Knoff, 19S8, An excellent treatment of Canadian History, particularly the presentations of the economic interpretation. 

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