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PAPERS IN CONNECTION WITH THE CONSTRUCTION OF THE CANADIAN PACIFIC RAILWAY, BETWEEN THE DOMINION, IMPERIAL,… British Columbia. Legislative Assembly 1881

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 BRITISH  COLUMBIA.
PAPERS
IN
CONNECTION  WITH   THE  CONSTRUCTION
OF THE
Canadian Pacific Railway,
BETWEEN THE
DOMINION, IMPERIAL, AND PROYINCIAL GOVERNMENTS.
$uMtgf)rtr ig ortHt of tfie fUgtelattb* assemfelg.
VICTORIA: Printed by Richard Wolpendeh, Government Printer,
at the Government Printing Office, James' Bay.
1880,
11  44 Vic. Railway Papers. 139
PAPERS
IN
CONNECTION   WITH   THE   CONSTRUCTION
OP  THE
Canadian Pacific Railway.
Extract from Journals of the Legislative Assembly of 5th May, 1880.
"On the motion of Mr.  Galbraith, seconded by Mr. Smithe, it was Resolved,—
" That all the papers in connection with the construction  of the  Canadian Pacific
Railway, between the Dominion, Imperial, and Provincial Governments,  be printed in
pamphlet form for circulation."
No. 1.
Despatch from Earl Granville to the Governor of British Columbia on Confederation. ,
British Columbia. Downing Street,
No. 84. Uth August, 1869.
Duplicate.
Sir,
In my Despatch of 17th of June, in which I communicated to you your appointment to the Government of British Columbia, I informed you that I should probably
have occasion to address you on the question then in agitation of the incorporation of
that Colony with the Dominion of Canada.
You are aware that Her Majesty's Government have hitherto declined to entertain
this question, mainly because it could not arise practically till the Territory of the
Hudson's Bay Company was annexed to the Dominion, but also, perhaps, in the
expectation that the public opinion of British Columbia might have opportunity to form
and declare itself.
I have now to inform you that the terms on which Rupert's Land and the North
West Territory are to be united to Canada have been agreed to by the parties concerned
and that the Queen will probably be advised before long to issue an Order in Council
which will incorporate in the Dominion of Canada the whole of the British Possessions
on the North American Continent, except the then conterminous Colony of British
Columbia.
The question therefore presents itself, whether this single Colony should be excluded
from the great body politic which is thus forming itself?
On this question the Colony itself does not appear to be unanimous. But as far as
I can judge from the Despatches which have reached mo, I should conjecture that the
prevailing opinion was in favour of union. I have no hesitation in stating that such is
also the opinion of Her Majesty's Government.
They believe that a Legislature selected from an extended area, and representing a
diversity of interests, is likely to deal more comprehensively with large questions, more
impartially with small questions, and more conclusively with both than is possible when
controversies are carried on and decided upon in the comparatively narrow circle in
which they arise. Questions of purely local interest will be more carefully and dispassionately considered when disengaged from the larger politics of the country, and at the
same time will be more sagaciously considered by persons who have had this larger
political education. 140 Railway Papers. 1880
Pinally, they anticipate that the interests of every Province of British North
America will be more advanced by enabling the wealth, credit, and intelligence of the
whole to be brought to bear on every part, than by encouraging each in the contracted
policy of taking care of itself, possibly at the expense of its neighbour.
Most especially is this true in the case of internal transit. It is evident that the
establishment of a British line of communication between the Atlantic and Pacific oceans
is far more feasible by the operations of a single Government responsible for the progress
of both shores of the Continent than by a bargain negotiated between separate, perhaps
in some respects rival, Governments- and Legislatures. The San Francisco of British
North America would under those circumstances hold a greater commercial and political
position than would be attainable by the capital of the isolated Colony of British
Columbia.
Her Majesty's Government are aware that the distance between Ottawa and Victoria
presents a real difficulty in the way of immediate union. But that very difficulty will
not be without its advantages if it renders easy communication indispensable and forces
onwards the operations which are to complete it. In any case it is an understood inconvenience and a diminishing one, -and it appears far better to accept it as a temporary
drawback on the advantages of union than to wait for those obstacles, often more
intractable, which are sure to spring up after a neglected opportunity.
The constitutional connection of Her Majesty's Government with the Colony of
British Columbia is as yet closer than with any other part of North America, and they
are bound on an occasion like the present to give, for the consideration of the community
and the guidance of Her Majesty's servants, a more unreserved expression of their
wishes and judgment than might be elsewhere fitting.
You will, therefore] give publicity to this dispalcb, a copy of which I have communicated to the Governor-General of Canada, and you will hold yourself authorized,
either in communication with Sir John Young or otherwise, to take such steps as you
properly and constitutionally can for promoting the favourable consideration of this
question.
It will not escape you that in acquainting you with the general views of the Government I have avoided all matters of detail on which the wishes of the people and the
Legislature wilt of course be declared in due time. I think it necessary, however, to
observe that the constitution of British Columbia will oblige the Governor to enter
personally upon many questions, as the condition of Indian tribes and the future position
of Government servants, with which, in the case of negotiation between two Responsible
Governments, he would not be bound to concern himself.
I have, &c,
Governor Musgrave, (Signed) Granville.
&c., &c, &c.
No. 2. No. 3.
" PKOPOSED TERMS." " ACCEPTED TERMS.
1. Canada shall be liable for the Debts and Lia- 1. Canada shall be liable for the debts and liabilities of British Columbia existing at the time of bilities of British Columbia existing at the time of
Union. Union.
2. The population of British Columbia shall, for 2. British Columbia not having incurred debts
the purpose of financial arrangements, be estimated equal to those of the other Provinces now constitu-
at 120,000. British Columbia not having incurred ting the Dominion, shall be entitled to receive, by
debts equal to those of other Provinces now consti- half-yearly payments in advance from the General
tuting the Dominion, shall be entitled to rejeive, Government interest at the rate of five per cent, per
by half-yearly payments in advance from the General annum on the difference between the actual amount
Government, interest at the rate of five per centum of its indebtedness at the date of the Union, and the
per annum on the difference between the actual indebtedness per head of the population of Nova
amount of its indebtedness at the date of Union and Scotia and New Brunswick (11.11 dollars), the pop-
the proportion of the Public Debt of Cannda for ulalion of British Columbia being taken at 60,000.
120 000 of the population of Canada at the time of 3. The following sums shall be paid by Canada to
XJnion. British Columbia for the support of its Government
3. The following sums shall be annually paid by and Legislature, to wit: an annual subsidy of 35,000
Canada to British Columbia for the support of the dollars, and an annual grant equal to 80 cents per
Local Government and Legislature, to wit:— head of the said population of 60,000, both half- 44 Vic.
Railway Papers.
141
No. 2.
" PROPOSED TERMS.
-Continued.
No. 3.
"ACCEPTED TERMS."—Continued.
An Annual Grant of $35,000, and a further sum
equal to 80 cents a head per annum of the population, both payable half-yearly in advance, the popu-
tion of British Columbia being estimated as aforesaid at 120,000. Such grant, equal to 80 cents a
head, to be augmented in proportion to the increase
of population, when such may be showu, until the
population amounts to 400,000, at which rate such
grant shall thereafter remain.
4. The Dominion shall guarantee interest at the
rate of five per centum per annum on such sum, not
exceeding £100,000, as may be required for the construction of a first-class Graving Dock at Esquimalt.
5. In addition to the other provisions of this
Resolution, Canada shall assume and defray the
charges of the following Services:—
a. Salary and allowances of the Lieutenant-Governor;
b. Salaries and allowances of the Judges and
Officers of the Supreme Court and of County Courts;
c. The charges in respect of the Department of
Customs;
d. The Postal Department;
e. Lighthouses, Buoys, Beacons, and Lightship,
and such further charges as may be incident to and
connected with the Services which by the "British
North America Act, 1867,'' appertain to the General
Government, and as are. or may be allowed to the
other Provinces.
6. Suitable pensions, such as shall be approved of
by Her Majesty's Government, shall be provided by
the Government of the Dominion for those of Her
Majesty's servants in the Colony whose position ~
and emoluments derived therefrom would be affected
by political changes on the admission of this Colony
into the Dominion of Canada.
1. The Dominion Government shall supply an
efficientand regular fortnightly steam communication
between Victoria and San Francisco by steamers
adapted and giving facilities for the conveyance of
passengers and cargo.
8. Inasmuch as no real union can subsist between
this Colony and Canada without the speedy establishment of communication across the Rocky Mountains by Coach Road and Railway, the Dominion
shall, within three years from the date of union,
construct and open for traffic such Coach Road from
some point on the line of the Main Trunk Road of
this Colony to Fort Garry, of similar character to
the said Main Trunk Road; and shall further engage
to use all means in her power to complete such
Railway communication at the earliest practicable
date, and that Surveys to determine the proper line
for such Railway shall be at once commenced; and
that a sum of not less than One Million Dollars shall
be.expended in every year, from and after three
years from the date of union, in actually constructing the initial sections of such Railway from the
Seaboard of British Columbia, to connect with the
Railway system of Canada.
0. The Dominion shall erect and maintain, at
Victoria, a Marine Hospital and a Lunatic Asylum,
either attached to the Hospital or separate, as may
be considered most convenient.
The Dominion shall also erect and maintain a
Penitentiary, or other Principal Prison, at such
place in the Colony as she may consider most suitable for that purpose.
yearly in advance, such grant of 80 cents per head
to be augmented in proportion 1o the increase of
population as may be shown by each subsequent
decennial census, until the population amounts to
400,000, at which rate such grant shall thereafter
remain, it being understood that the first census be
taken in the year 1881.
4. The Dominion will provide an efficient mail
service, fortnightly, by steam communication between Victoria and San Francisco, and twice a week
between Victoria and Olympia; the vessels to be
adapted for the conveyance of freight and passengers.
5. Canada will assume and defray the charges for
the following Services:—
A. Salary of the Lieutenant-Governor;
B. Salaries and allowances of the Judges of the
Superior Courts and the County or District
Courts;
C. The charges in respect to the Department of
Customs;
D. The Postal and Telegraphic Services;
E. Protection and Encouragement of Fisheries;
F. Provision for the Militia;
G. Lighthouses, Buoys and Beacons, Shipwrecked
crews, Quarantine and Marine Hospitals, including a Marine Hospital at Victoria;
H. The Geological Survey;
I. The Penitentiary;
And such further charges as may be incident to and
connected with the services which by the " British
North America Act, 1867,'' appertain to the General
Government, and as are or may be allowed to the
-OiJier Provinces,
6. Suitable pensions, such as shall be approved of
by Her Majesty's Government, shall be provided by
the Government of the Dominion for those of Her
Majesty's servants in the Colony whose position and
emoluments derived therefrom would be affected by
political changes on the admission of British Columbia into the Dominion of Canada.
7. It is agreed that the existing Customs tariff and
excise duties shall continue in force in British Columbia until the railway from the Pacific coast and
the system of railways in Canada are connected,
unless the Legislature of British Columbia should
sooner decide to accept the tariff and excise laws of
Canada. When customs and excise duties are, at
the time of the union of British Columbia with
Canada, leviable on any goods, wares, or merchandizes in British Columbia, or in the other Provinces of
the Dominion, those goods, wares, and merchandizes
may, from and after the Union, be imported into
British Columbia from the Provinces now composing
the Dominion, or from either of those Provinces into
British Columbia, on proof of payment of the customs or excise duties leviable thereon in the
Province of exportation, and on payment of such
further amount (if any) of customs or excise duties
as are leviable thereon in the Province of importation. This arrangement to have no force or effect
after the assimilation of the tariff and excise duties
of British Columbia with tho9e of the Dominion.
8. British Columbia shall be entitled to be represented in the Senate by three members, and by six
members in the House of Commons. The representation to be increased under the provisions of the
" British North America Act, 1867."
9. The influence of the Dominion^Government will 142
Railway Papers.
1880
No. 2.
" PROPOSED TERMS.?.'—Continued.
No. 3.
"ACCEPTED TERMS.'
- Continued.
10. Efficient Coast Mail Steam Service, in connection with the Post Office, shall be established and
maintained by the Government of the Dominion,
between Victoria and New Westminster, Nanaimo,
and such other places as may require such Services.
11. Whatever encouragement, advantages, and
protection are afforded by the Dominion Government to the Fisheries of any of its Provinces shall
be extended in similar proportion to British Columbia, according to its requirements for the time being.
12. British Columbia shall participate, in fair
proportion in any measures which may be adopted
and Funds which may be appropriated by the
Dominion for the encouragement of Immigration.
13. British Columbia shall be entitled to be represented in the Senate by Four Members, and by
Eight Members in the House of Commons, until the
year 18 , and thereafter the Representation in the
Senate and the House of Commons shall be increased,
subject to the provisions of the " British North
America Act, 1867."
14. The Union shall take effect on such day as
Her Majesty by Order in Council (on an Address to
that effect, in terms of the 146th Section of the
"British North America Act, 1367,'') may direct;
and British Columbia may, in such Address, specify
the Districts, Counties, or Divisions, if any, for
which any of the Four Senators to whom the Colony
shall be entitled shall-be named—the Electoral Districts for which—and the time within which the first
Election of Members to serve in the House of Commons shall take place.
15. The Constitution of the Executive authority
and of the Legislature of British Columbia shall,
subject to the provisions of the " British North
America Act, 1867," continue as existing at the
time of Union, until altered under the authority of
the said Act.
16. The provisions in the " British North America
Act, 1867," shall (except those parts thereof which
are in terms made, or by reasonable intendment may
be held to be specially applicable to and only affect
one and not the whole of the Provinces now comprising the Dominion, and except so far as the same
may be varied by this Resolution) be applicable to
British Columbia in the same way and to the like
extent as they apply to the other Provinces of the
Dominion, and as if the Colony of British Columbia
had been one of the Provinces originally united by
the said Act.
With reference to Defences:—
a. That it shall be an understanding with the
Dominion that their influence will be us?d to the
fullest extent to procure the continued maintenance
of the Naval Station at Esquimalt.
b. Encouragement to be given to develop the efficiency and organization of the Volunteer Force in
British Columbia.
be used to secure the continued maintenance of the
naval station at Esquimalt.
10. The provisions of the " British North America
Act, 1867," shall (except those parts thereof which
are in terms made, or by reasonable intendment may
be held to be specially applicable to and only affect
one and not the whole of the Provinces now comprising the Dominion, and except so far as the same
may be varied by this Minute) be applicable to
British Columbia, in the same way and to the like
extent as they apply to the other Provinces of the
Dominion, and as if the Colony of British Columbia
had been one of the Provinces originally united by
the said Act.
11. The Government of the Dominion undertake
to secure the commencement simultaneously, within
two years from the date of Union, of the construction
of a railway from the Pacific towards the Rocky
Mountains, and from such point as may be selected,
east of the Rocky Mountains, towards the Pacific, to
connect the seaboard of British Columbia with the
railway system of Canada; and further to secure the
completion of such railway within ten years from
the date of the Union.
And the Government of British Columbia agree
to convey to the Dominion Government, in trust, to
be appropriated in such manner as the Dominion
Government may deem advisable in furtherance of
the construction of the said railway, a similar extent
of public lands along the line of railway throughout
its entire length in British Columbia, not to exceed,
however, twenty (20) miles on each side of the said
line, as may be appropriated for the same purpose
by the Dominion Government from the public lands
in the North-West Territories and the Province of
Manitoba. Provided, that the quantity of land which
may be held under pre-emption right or by Crown
Grant within the limits of the tract of land in British
Columbia to be so conveyed to the Dominion Government shall be made good to the Dominion from
contiguous public lands; and provided further, that
until the commencement, within two years as aforesaid, from the date of the Union, of the construction
of the said railway, the Government of British Columbia shall not sell or alienate any further portions
of the public lands of British Columbia in any other
way than under right of pre-emption, requiring actual residence of the pre-emptor on the land claimed
by him. In consideration of the land to be so conveyed in aid of the construction of the said railway,
the Dominion Government agree to pay to British
Columbia from the daie of the Union the sum of one
hundred thousand dollars per annum, in half-yearly
payments in advance,
12. The Dominion Government shall guarantee
the interest for ten years from the date of the completing of the works at the rate of five per centum
per annum on such sum, not exceeding £100,000
sterling, as may be required for the construction of
a first-class Graving Dock at Esquimalt.
13. The charge of the Indians, and the trusteeship
and management of the lands reserved for their use
and benefit, shall be assumed by the Dominion Government, and a policy as liberal as .that hitherto
pursued by the British Columbia Government shall
be continued by the Dominion Government after the
Union.
To carry out such policy, tracts of land of such 44 Vic. Railway Papers. 143
No. 3.
"ACCEPTED TERMS."—Concluded.
extent as it has hitherto been the practice of the
British Columbia Government to appropriate for
that purpose shall from time to time be conveyed by
the Local Government to the Dominion Government
in trust for the use and benefit of the Indians on application of the Dominion Government; and in case
of disagreement between the two Governments respecting the quantity of such tracts of land to be so
granted, the matter shall be referred for the decision
of the Secretary of State for the Colonies.
14. The constitution of the Executive Authority
• and of the Legislature of British Columbia shall,
subject to the provisions of the " British North
America Act, 1867," contiuue as existing at the
time of the Union until altered under the authority
ot the said Act, it being at the same time understood
that the Government of the Dominion will readily
consent to the introduction of Responsible Government when desired by the inhabitants of British
Columbia, and it being likewise understood that it
is the intention of the Governor of British Columbia,
under the authority of the Secretary of State for the
Colonies, to amend the existing Constitution of the
Legislature by providing that a majority of its members shall be elective.
The Union shall take effect according to the foregoing terms and conditions on such day as Her
Majesty by and with the advice of Her Most Honourable Privy Council may appoint (on Addresses from
the Legislature of the Colony of British Columbia
and of the Houses of Parliament of Canada, in the
terms of the 146th section of the " British North
America Act, 1867,") and British Columbia may in
its address specify the electoral districts for which
the first election of members to serve in the House
of Commons shall take place.
No. 4.
At the Court at Windsor, the \6th day of May, 1871.
PRESENT,
The QUEEN'S Most Excellent Majesty.
His Boyal Highness Prince Arthur.
Lord Privy Seal. Lord Chamberlain.
Earl Cowper. Mr. Secretary Cardwell.
Earl of Kimberley. Mr. Ayrton.
Whereas by the " British North America Act, 1867," provision was made for the
Union of the Provinces of Canada, Nova Scotia, and New Brunswick into the Dominion
of Canada, and jt was (amongst other things) enacted that it should be lawful for the
Queen, by and with the advice of Her Majesty's Most Honorable Privy Council, on
Addresses from the Houses of the Parliament of Canada, and of the Legislature of the
Colony of British Columbia, to admit that Colony into the said Union on such terms
and conditions as should be in the Addresses expressed, and as the Queen should think
fit to approve, subject to the provisions of the said Act. And it was further enacted
that the provisions of any Order in Council on that behalf should have effect, as if they
had been enacted by the Parliament of the United Kingdom of Great Britain and
Ireland.
And whereas by Addresses from the Houses of the Parliament of Canada and from
the Legislative Council of British Columbia respectively, of which Addresses copies are
contained in the Schedule to this Order annexed, Her Majesty was prayed, by and with 144 Railway Papers. 1880
the advice of Her Most Honourable Privy Council, under the One hundred and forty-
sixth Section of the hereinbefore recited Act, to admit British Columbia into the
Dominion of Canada, on the terms and conditions set forth in the said Addresses.
And whereas Her Majesty has thought fit to approve of the said terms and conditions: It is hereby ordered and declared by Her Majesty, by and with the advice of
Her Privy Council, in pursuance and exercise of the powers vested in Her Majesty by
the said Act of Parliament, that from and after the Twentieth day of July, One thousand
eight hundred and seventy one, the said Colony of British Columbia shall be admitted
into and become part of the Dominion of Canada, upon the terms and conditions set
forth in the hereinbefore recited Addresses. And, in accordance with the terms of the
said Addresses relating to the Electoral Districts in British Columbia, for which the first
election of members to serve in the House of Commons of the said Dominion shall take
place, it is hereby further ordered and declared that such Electoral Districts shall be
as follows:—
And the Eight Honourable Earl of Kimberley, one of Her Majesty's Principal
Secretaries of State, is to give the necessary directions herein accordingly.
(Signed)       Arthur Helps.
No. 5.
The Secretary of State to the Lieutenant-Governor.
Copy.
No. 58 Ottawa, 10th June, 1873.
Sir,—I have the honour to enclose, for the information of your Government, a
copy of an Order of His Excellency the Governor-General in Council, fixiDg Esquimalt,
in Vancouver Island, as the Terminus of the Canadian Pacific Eailway, and further
deciding that a line of Eailway be located between the Harbour of Esquimalt and
Seymour Narrows on the said Island.
I have further the honour to apply to you to bring the subject under the notice of
your Government, with a view to the conveyance, in the manner and for the purposes
stated in the said Order, of a strip of land Twenty Miles in width, along the Eastern
Coast of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt.
I have, &c,
(Signed)        E. A. Meredith,
Under Secretary of State.
No. 6.
Report of the Privy Council, approved by the Governor-General on the 7th June, 1873.
The Committee of Council having had before them the memorandum of the 29th
May last, from the Chief Engineer of the Canadian Pacific Railway, and the Minute of
Council thereupon of the 30th May, beg leave to recommend to Your Excellency that
Esquimalt, in Vancouver Island, be fixed as the Terminus of the Canadian Pacific
Eailway; and that a line of Eailway be located between the Harbour of Esquimalt
and Seymour Narrows on the said Island.
The Committee further recommend that application immediately be made, by
despatch to the Lieutenant-Governor of British Columbia, for the conveyance to the
Dominion Government, in trust, according to the 11th paragraph of the Terms of Agreement, of Union, of a strip of land, Twenty Miles in width, along the Eastern Coast of
Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt.
An Order of the Lieutenant-Governor of British Columbia in Council appropriating
this tract of land, in furtherance of the construction of the said Eailway, will be necessary, in order to operate as a sufficient conveyance and reservation of the said land to
and for the Dominion Government.
(Certified)       W. A. Himsworth,
Clerk, Privy Council. 44 Vic. Railway Papers. 145
No. 7.
The Lieutenant-Governor to the Secretary of State for Canada.
Copy, Government House,
No. 67. 26th July, 1873.
Sir,— I have the honour to state that the Under Secretary of State for the Provinces'
Despatch No. 58, of the 10th ultimo, and the copy therewith enclosed of an Order of
His Excellency the Governor-General in Council, fixing Esquimalt, on Vancouver Island,
as the Terminus of the Canadian Pacific Eailway, and further deciding that a line of
Eailway be located between Esquimalt Harbour and Seymour Narrows, was duly
received and submitted by me for consideration in my Executive Council, and that the
strip of land Twenty Miles in width along the Eastern Coast of Vancouver Island,
between Seymour Narrows and the Harbour of Esquimalt, specified in the said Order
in Council, was accordingly reserved on the 1st July instant, under the powers and
provisions of the 42nd Section of the Land Ordinance of 1870 of British Columbia, and
notice of such reservation duly published in the Government Gazette, as appears in the
copy thereof herewith enclosed.
With further reference to the Under Secretary of the Provinces' Despatch, I have
also the honour to enclose herewith, and to request that you will lay before His
Excellency the Governor-General, a Minute of my Executive Council conveying the
conclusion of this Government that it is not advisable to make, at present, the conveyance applied for in the said Despatch and accompanying Order in Council of the land
therein specified and now held under reservation, and setting forth the grounds upon
which that conclusion is based.
I have, &c,
(Signed)       Joseph W. Trutoh.
No. S.
Report of the Executive Council, approved by the Lieutenant-Governor on the
'ZQth day of June, 1873.
On a Memorandum dated 30th June, 1873, from the Honourable the Attorney-
General, recommending that, for the present, a bare reservation of the Twenty Mile belt
lying between Esquimalt Harbour and Seymour Narrows bo made, to protect the
Government of the Dominion, until the question raised by the Order in Council of the
Privy Council of Canada, dated the 7th instant, with its covering Despatch on the
subject of the 10th instant, be more fully discussed and determined, and that the conveyance, in trust, of the said land asked for by the Ottawa Government be for the
present deferred, and that the enclosed notice of reservation be adopted and published
in a Gazette Extraordinary.
(Certified)       W. J. Armstrong,
Clerk of the Executive Council.
No. 9.
Notice.
Whereas by an Order in Council dated the 7th day of June, 1873, of the Honourable
the Privy Council of Canada, it has been decided "that Esquimalt, in Vancouver Island,
" be fixed as the Terminus of the Canadian Pacific Eailway, and that a line of Eailway
"be located between the Harbour of Esquimalt and Seymour Narrows, on the the said
"Island;" and whereas, in accordance with the terms of the said Order in Council,
application has been made to His Excellency "the Lieutenant-Governor of British
" Columbia, for a reservation and for the conveyance to the Dominion Government, in
"trust, according to the 11th Paragraph of the Terms of the Agreement of Union, of a
" strip of land Twenty Miles in width along the Eastern Coast of Vancouver Island,
" between Seymour Narrows and the Harbour of Esquimalt, in furtherance of the con-
" gtruction of the said Eailway." 146 .   Railway Papers. 1880
And whereas it has been deemed advisable that the land within the limits aforesaid
should be Eeserved, prior to any conveyance aforesaid being made thereof. Public
notice is therefore hereby given that from and after this date a strip of Land Twenty
Miles in width along the Eastern Coast of Vancouver Island, between Seymour Narrows
and the Harbour of Esquimalt, is hereby Eeserved.
By Command.
Provincial Secretary's Office, John Ash,
1st July, 1873. , Provincial Secretary.
No. 10.
The Lieutenant-Governor to the Secretary of State.
Copy. Government House,
No. 68. 26th July, 1873.
Sir,—I have the honour to enclose at the request of my Ministers, for submission
to His Excellency the Governor-General, a Minute of my Executive Council, representing the non-fulfilment by the Dominion of the 11th Section of the Terms of Union
of British Columbia with Canada, expressing regret that the Railway has not been
commenced, and strongly protesting against the breach of a condition of the Terms so
highly important to this Province.
I have, &c,
(Signed)       Joseph W. Trutoh.
No. 11.
Order in Council of this Province, dated July 25th, 1873.
The Committee of Council have had under consideration the non-fulfilment by the
Dominion Government of the 11th Section of the Terms of Union.
The Committee regret that the construction of the Eailway has not been commenced, and therefore strongly protest against the breach by the Dominion Government
of a condition of the Terms so highly important to the Province.
The Committee recommend the above for the approyal of Your Excellency, and,
if sanctioned, respectfully request that a copy thereof be at once forwarded to the
Dominion Government.
(Certified)        W. J. Armstrong,
Clerk, Executive Council.
No. 12.
Report approved by the Lieutenant-Governor on the 25th July, 1873.
The Committee of Council have had under consideration a memorandum of the
23rd July, 1873, from the Honourable the Attorney-General, reporting upon a Despatch,
dated the 10th June last, from the Honourable the Secretary of State for the Provinces
to Your Excellency, covering an Order of the Honourable the Privy Council of Canada,
of the 7th of the same month, which states that the Privy Council had decided as
follows:—" That Esquimalt, in Vancouver Island, be fixed as the Terminus of the
" Canadian Pacific Eailway, and that a line of Eailway be located between the Harbour
"of Esquimalt and Seymour Narrows on the said Island."
In pursuance of this decision, Your Excellency is requested to convey by Order in
" Council " to the Dominion Government, in trust, according to the 11th paragraph of
"the Terms of the Agreement of Union , a strip of land Twenty Miles in width along
"the Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour
" of Esquimalt."
Upon the Despatch and Order in Council the. Honourable the Attorney-General
reports as follows :— 44 Vic. Railway Papers. 147
" The agreement of Union is embodied in a Statute. Its language must therefore
be measured by the ordinary and well known rules of interpretation as applied to
Statutes. The language must not be construed too narrowly, but a fair and liberal construction—and one in accordance with the spirit and true meaning of the agreement—
should be placed upon the wording of the ' Terms.' Allowing, however, the greatest
latitude of interpretation, and applying the broadest and most liberal construction to the
eleventh Section of the Agreement, nothing appears which would seem to warrant the
Dominion Government in claiming, or justify Your Excellency in granting, a conveyance of the Twenty Mile belt of land mentioned, until the line of Eailway be defined.
"It is admitted that the Dominion Government is entitled to the greatest consideration for the energy it has hitherto displayed in its desire to faithfully carry out the
Eailway provisions contained in the Agreement.
" Hence the Government of this Province, holding these views and anxious to
render all the assistance in its power to the Dominion Government, assumed the responsibility of reserving the belt of land mentioned almost immediately after the receipt of
the Despatch, which is the subject of this report. It was, however, expressely understood that the Order in Council creating the reserve should not operate as a conveyance
of the lands within its limits, and that the reserve itself should not bo of a permanent
character.
"The 11th Section of the Terms of Union reads as follows :
' The Government of the Dominion undertake to secure the commencement, * *
' within two years from the date of the Union, of the construction of a Eailway from
'thePacific towards the Rocky Mountains,' thence Eastward, &c.
' The Government of British Columbia agree to convey to the Dominion Govern-
'ment in trust, to be appropriated in such manner as the Dominion Government may
' deem advisable, in furtherance of the construction of the said Railway, an extent of
'public lands along the line of Railway throughout its entire length in British Columbia,
'not to exceed, however, Twenty Miles on each side of said line * * * and
'provided further that until the commencement, within two years, as aforesaid, from
'the date of the Union, of the construction of the said Railway, the Government of
' British Columbia shall not sell or alienate any further portion of the public lands of
'British Columbia in any other way than under right of pre-emption requiring actual
'residence of the pre-emptor on the land claimed by him.'
"Under this agreement the Dominion Government undertook 'to secure the commencement of the construction of a Railway from the Pacific' eastward on the 20th
July, 1873, and the Province in consideration thereof agreed to convey to the Dominion
Government ' in furtherance of the construction of the said Railway,' certain ' public
lands along the line of Railway ' not exceeding in extent Twenty Miles 'on each side of
said line.'
"As far as the Government of this Province has been informed, no line of Railway
has been surveyed between Esquimalt and Seymour Nai'rows. A conveyance cannot
therefore be made of public lands'along a line of Railway ' and 'on each side of said
line' where no such ' line of Railway' exists. The demand made is for a conveyance of
'a strip of land ' Twenty Miles in width along the 'Eastern Coast of Vancouver Island,'
or in other words in the absence of a survey for a strip of the public lands along the
sea coast, but not along any defined line of Railway.
" It is respectfully submitted that had a ' lino of Railway ' been defined by a location
survey, the Government of this Province would have been notified thereof, and the
language of the Despatch and of the Order of the Privy Council would have been
materially different from that used in the present instance. Instead of asking for a
conveyance of land along a sea coast, a demand would have been made for a conveyance of certain lands 'along a line of Railway' adopted and laid out according to an
accompanying plan, such a demand, it is humbly conceived, would have been in accordance with the spirit and language of the 11th Section.
" The term of two years mentioned in the first and second paragraphs of the section
was inserted by the trainers of the terms as a period amply sufficient to enable the
Dominion Government to complete the preliminary surveys necessary to determine 'the
line of Railway,' and the Provincial Government agreed to withdraw all its public lands
from sale for the like period in order that the first opportunity should be afforded to
the Dominion Government of acquiring within the two years and before the work of con- 148 Railway Papers. 1880
struction should commence, the land contiguous to its line of Eailway, as defined from
time to time. .
" The two years have expired, and as the claim for the reserve mentioned is not
established, it becomes the duty of the Government of British Columbia in the interests
of the Province, to respectfully press upon the Dominion Government, the necessity of
some immediate action being taken to render the valuable belt of land containing an
area of some 3,500 square miles of service to the Province.
" The undersigned therefore suggests that, as no line of Railway has been defined,
Your Excellency be respectfully recommended, for the above reasons, to withhold the
conveyance to the Dominion Government of the land mentioned in the Despatch; and
that the Reserve of the said land be continued until a fair opportunity shall have been
afforded to the Dominion Government to consider the subject, and inform the Government of this Province of its views thereon.
(Signed)       " Geo. A. Walkem,
" Attorney-General."
The Committee concur in the above Report of the Attorney-General, and submit
the same for Your Excellency's approval, and if sanctioned, they suggest that a copy
of this Order in Council be transmitted to His Excellency the Governor-General.
(Certified)       W. J. Armstrong,
Clerk, Executive Council.
No. 13.
Secretary of State to the Lieutenant-Governor.
Copy. Ottawa,
No. 72. 23rd August, 1873.
Sir,—I have the honour to acknowledge the receipt of your Despatch, No. 68, 26th
ultimo, covering a copy of a Minute of your Executive Council, complaining of the non-
fulfilment by the Dominion Government of the 11th Section of the Terms of Union of
British Columbia with Canada.
Your Despatch and its enclosures will be at once laid before His Excellency the
Governor-General in Council.
I have, &c,
(Signed)       E. J. Langevin,
Under Secretary of State.
No. 14.
Secretary of State to the Lieutenant-Governor.
Copy. Ottawa, *
No. 74. 26th August, 1873.
Sir,—I have the honour to acknowledge the receipt of your Despatch, No. 67, of
the 26th ultimo, referring to the Order of His Excellency the Governor-General in
Council, communicated to you on the 10th June last, applying for the conveyance to the
Dominion Government of a strip of land Twenty Miles in width along the Eastern Coast
of Vancouver Island, between Seymour Narrows and the Harbour of Esquimalt, and
enclosing a copy of a Minute of your Executive Council on the subject of the said
application.
Your Despatch and its enclosures will be laid before His Excellency the Governor-
General in Council.
I have, &c,
(Signed)       E. J. Langevin,
Under Secretary of State. 44 Vic. Railway Papebs. 149
No. 15.
The Secretary of State to the Lieutenant-Governor.
Department op the Secretary op State for Canada,
Ottawa, llth September, 1873.
Sir,—I have the honour to transmit to you herewith, for the information of your
Government, a copy of an Order of His Excellency the Governor-General in Council,
on your Despatch, No. 67, Of the 26th July last, enclosing.a Minute of your Executive
Council, conveying their conclusion that it is not advisable to make, at present, the
conveyance applied for in the letter to you of the 10th of June last.
I have, &c,
(Signed)       J. C. Aikins,
Secretary of State for Canada.
No. 16.
Report of the Privy Council approved by the Governor-General on the 3rd September, 1873.
The Committee of the Privy Council have had under consideration a Despatch
from the Lieutenant-Governor of British Columbia, of the 26th July, 1873, enclosino- a
Minute of his Executive Council, conveying the conclusion of the Government of British
Columbia, that it is not advisable to make at present the conveyance applied for in a
Despatch of the Under Secretary of State for the Provinces, of the 10th of June.
The Committee of the Privy Council have read with great attention, the report of
the Executive Council of British Columbia, enclosed in the Lieutenant-Governor's
Despatch, and beg to submit, that so long as the land which is referred to is not alienated from the Crown, but held under reservation, as stated in the Lieutenant-Governor's
Despatch, the object of the Government of the Dominion will be obtained, that object
being simply that when the Railway shall come to be constructed, the land in question
shall be at the disposition of the Government, of the Dominion, for the purposes laid
down in the llth Section of the Terms of Union with British Columbia.
(Certified)       W. A. Himsworth,
Clerk Executive Council.
No. 17.
The Lieutenant-Governor to the Secretary of State.
Copy. Government House,
^o. 86. 22nd September, 1873.
Sir,—With reference to my Despatch, No. 67, of the 26th July last, I have the
honour to enclose for the information of His Excellency the Governor-General, a Minute
of my Executive Council, urging that the boundaries of the land on Vancouver Island
proposed to be claimed by the Government of the Dominion in trust, to aid the construction of the Railroad, under the Terms of Union of British Columbia with Canada
may be at once defined, and that a competent person in this Province may be appointed
to dispose of said lands, on such terms as will admit of settlement, and authorizing the
Honourable A. DeCosmos, President of the Executive Council and Premier of my
Ministry, to confer with, the Government of Canada on this subject.
A duplicate of this Despatch and enclosure will be handed to you by Mr. DeCosmos
who starts to-morrow for Ottawa. '
I have, &c,
(Signed) Joseph W. Trutch. 150 Railway Papers. 1880
No. 18.
Report of the Honorable the Executive Council, approved by the Lieutenant-Governor
on the 20th day of September, 1873.
On a Memorandum, dated 18th September, 1873, from the Honorable Chief Commissioner of Lands and Works, reporting that the Order in Council of the 30th June,
1873, reserving Crown Lands of the East Coast of Vancouver Island, is seriously
retarding the settlement of that portion of the Province; and recommending that, in
view of the fact that the Despatch from His Excellency the Lieutenant-Governor to the
Secretary of State, transmitting the Minute of this Executive Council, dated 25th July,
1873, upon the subject of this reservation, has not as yet been replied to, and as the
matter requires immediate settlement, that the Dominion Government be respectfully
urged to at once define, by survey, the land they propose claiming on the East Coast of
Vancouver Island; and that they appoint, also, a competent person in this Province to
dispose of said lands on such terms as will admit of settlement; and that the Honourable
Amor DeCosmos, as Special Delegate, about to proceed to Ottawa, be authorized to
confer with the Dominion Government upon the subject.
(Certified) W. J. Armstrong,
Clerk, Executive Council.
No. 19.
The Secretary of State to the Lieutenant-Governor. '
Copy. Ottawa, 8th October, 1873.
Sir,—I have the honour to acknowledge the receipt of your Despatch of the 22nd
ultimo, on the subject of the occupation of lands reserved by the Dominion Government,
and to state that the same will receive due consideration.
I have, &c,
(Signed) Edouard J. Langevin,
Under Secretary of State.
No. 20.
The Lieutenant-Governor to the Secretary of State.
Copy. Government House,
No. 96. 24th November, 1873.
Sir,—I have the honour to enclose a further -Minute of my Executive Council,
referring to the non-fulfilment by the Dominion Government of the llth Article of the
Terms of Union of this Province with Canada.
In accordance with the advice of my Ministers, expressed in this Minute, I beg you
to be pleased to lay before His Excellency the Governor-General, and to be good
enough to bring to His Excellency's attention the previous Minutes of my Executive
Council on the same subject, which were forwarded for his consideration in my Despatches, Nos. 67 and 68, 26th July last, the latter of which conveying a protest from
this Government on the failure of the Dominion Government to secure the commencement, within two years from the date of Union, of the construction of a Railroad from
the Pacific towards the Rocky Mountains, as provided in the llth Article of the Terms
of Union, is yet unanswered; and to move His Excellency to communicate to this
Government, in whatever manner he may deem advisable, in time to meet the requirement of the desire indicated by my Ministers, the course intended lo be taken by the..
Dominion in fulfilment of the llth Article of the Terms of Union of this Province with
Canada.
I have, &c,
(Signed) Joseph W. Trutch. 44 Vic. Railway Papers. 151
No. 21.
Report of the Executive Council, approved by the Lieutenant-Governor on the 22nd
day of November, 1873.
The Committee of Council having had under consideration a memorandum from the
Honourable the Provincial Secretary, dated 19th November, 1873, setting forth the
facts—
That the Government of British Columbia has protested against the non-fulfilment
by the Dominion Government of the llth Article of the Terms of Union.
That beyond the acknowledgment of the receipt, no reply has been made by the
Dominion Government to the Despatch conveying the protest.
That the Government of British Columbia looking at the actual condition of affairs
felt compelled to await the action of the Parliament of Canada, expected shortly to
meet, and which did meet at Ottawa on the 23rd of October last past..
That the Parliament of Canada has been prorogued not to meet until Eebruary
next, without making provision for the construction of the Pacific Railway.
That the Legislative Assembly of the Province stands called to meet at Victoria on
the 18th day of December next, and
That the non-fulfilment by the Dominion Government of the Terms of Union has
caused a strong feeling of anxiety and discouragement to exist throughout the Province.
The Committee advise your Honour to ask the Dominion Government through the
proper channel, for a decided expression of its policy with regard to the fulfilment of
the llth Article of the Terms of Union, in order that the information may be given to
the Legislature at the opening of the coming Session.
And they request that the decision arrived at be communicated to Your Honour by
telegram at the earliest moment possible; and the Committee respectfully suggest that,
if the present report be sanctioned, Your Honour will be pleased to forward the same
to His Excellency the Governor-General; and also to draw his attention to the Minutes
of Council, each bearing date the 25th day of July last, on the same subject, one being a
protest against the breach of Article 11, and the other a denial of the right of the
Dominion Government to a conveyance or reserve of any of the public lands for
Eailway purposes until the line of Eailway should be defined.
(Certified) W. J. Armstrong,
Clerk, Executive Council.
No. 22.
The Secretary of State for Canada to Lieutenant-Governor.
Sir,—I have the honour to acknowledge the receipt of your despatch, No. 96, of the
24th ultimo, enclosing, with reference to your previous despatches on the subject, a
farther minute of your Executive Council respecting the non-fulfilment by the Dominion
Government of the llth Article of the "Terms" of the Union of British Columbia with
Canada.
In reply, I have to inform you that the subject will receive the consideration of the
Government.
I have, &c,
No.  23.
Telegram.
Ottawa, December 22nd, 1873.
The Hon. G. A. Walkem.
The Dominion Government scheme for the construction of Pacific Eailway was
outlined in my speech at Sarnia, Ontario, on the 25th November, which you have no
doubt seen.
We are giving earnest consideration to the details of the scheme, which we believe
will be acceptable to the whole of the Dominion including British Columbia. We hope
to communicate with you shortly, probably, by special agent. I will telegraph you
again in a week or so.
(Signed) A. Mackenzie. 152 Railway Papers. 1880
No. 24.
The Secretary of State for Canada to the Lieutenant-Governor.
(590-246.) Department, Secretary op State,
20th December, 1873.
Sir,—Adverting to your Despatches, Nos.  68 and 96, of the 26th July and 24th
November last, respectively, I have the honour to transmit to you
23rd December,      herewith, for the information of your Government, a copy of an Order
of His Excellency the Governor-General in Council, on the subject of
the alleged non-fulfilment by the Dominion Government of the llth Article of the Terms
of Union of the Province of British Columbia with Canada.
I have, &c,
No. 25.
Report of the Privy Council, approved by the Governor-General in Council on the
23rd December, 1873.
The Committee have had under consideration the despatch dated 24th November,
1873, from the Lieutenant-Governor of British Columbia, enclosing a further minute of
his Executive Council, referring to the non-fulfilment by the Dominion Government of
the llth Article of the Terms of Union of this Province with Canada, and stating that
in accordance with the advice of his Ministers expressed in this Minute, he requests
that this despatch, and its enclosure, be laid before Your Excellency, together with the
previous minutes of his Executive Council on the same subject, which were forwarded
for consideration in his despatches, No. 67 and No. 68, of the 26th of July last, the latter
of which, conveying a protest from that Government on the failure of the Dominion
Government to secure the commencement within two years from the date of Union, of
the construction of a railroad from the Pacific towards theEocky Mountains, as provided
in the llth Article of the Terms of Union, he states is yet unanswered, and requesting
Your Excellency to communicate to that Government, in whatever manner may be
deemed advisable, in time to meet the requirement of the desire indicated by his
Ministers, the course intended to be taken by the Dominion Government in fulfilment of
the llth Article of the Terms of Union of that Province with Canada.
The Committee of Council respectfully recommend that the Lieutenant-Governor of
British Columbia be informed that this Government is giving its most earnest consideration to the project for the construction of the Pacific Railway, an outline of which was
given in the speech delivered by Mr. Mackenzie at Sarnia, on the 25th November, a
scheme which they believe will be acceptable to the whole Dominion, including British
Columbia, and that they hope to be able, within a short time, to communicate more
definitely with that Province on the subject.
Certified, ■
(Signed) W. A. Himsworth,
Clerk Privy Council.
No. 26.
The Lieutenant- Governor to the Secretary of State for Canada.
(No. 4.) British Columbia,
Government House, 21st January, 1874.
Sir,—1 have the honour to acquaint you that I have duly received and laid before
my Executive Council your despatch of the BOth ultimo, and the copy therewith enclosed of an Order of His Excellency the Governor-General in Council, on the subject of the
non-fulfilment by the Dominion Government of the llth Article of the Terms of Union
of this Province with Canada.
I have, &c,
(Signed) Joseph W. Trutch. 44 Vio. Railway Papers. 153
No. 27.
The Governor-General to the Earl of Kimberley.
(No. 301.) Ottawa, December 26th, 1873.
My Lord,—I have the honour to enclose, for your information a copy of a despatch
from the Lieutenant-Governor of British  Columbia to the Secretary of
24th March.     State of Canada, forwarding a minute of his Executive Council referring to
' the non-fulfilment on the part of the Government of the Dominion, of the
llth Article of the Terms of Union with that Province, in respect to the construction of
the Canada Pacific Eailway.
I also beg to transmit copy of a report of a Committee of the Privy Council of the
Dominion, on the above mentioned despatch, stating that my Government
23rd December,   is giving its most earnest consideration to the project for the construction
of a Railway to the Pacific.
I have, &c,
(Signed) Dupferin.
No.   28.
The Earl of Kimberley to the Earl of Dufferin.
Downing Street,
15th January, 1874.
My Lord,—I have the honour to acknowledge the receipt of your despatch No. 301,
of the 26th December, enclosing a copy of a despatch from the Lieutenant-Governor of
British Columbia, with a copy of a minute of his Executive Council, referring to the
non-fulfilment, on the part of the Canadian Government, of the llth Article of the
Terms of Union between that Province and Canada in respect to the construction of the
Pacific Eailway.
I have, &c,
(Signed) Kimberley.
No. 29.
Extract from Journals of Legislative Assembly.
Monday, 9th February, 1874.
On the motion of the Honourable Mr. Beaven, seconded by Mr. Duck, it was
Resolved,—
That whereas, on the 20th July, 1871, the Colony of British Columbia was united to
and became part of the Dominion of Canada, in accordance with certain Terms; and
whereas by Section Eleven of the said Terms, the Government of the Dominion undertook to secure the commencement, simultaneously, within two years from the date of
Union, of the construction of a Eailway from the Pacific towards the Rocky Mountains,
and from such point as may be selected East of the Rocky Mountains towards the Pacific;
and whereas, the two years therein referred to expired on the 20th July last, and the
construction of the said Eailway was not then, and has not since been, commenced,
causing thereby serious loss and injury to the people of this Province, be it, therefore,
Eesolved,—
That an humble Address be presented to His Honour the Lieutenant-Governor,
respectfully requesting him to protest, on behalf of the Legislature and people of this
Province, against the infraction of this most important clause of the Terms of Union,
and to impress upon the present Administration in Canada the absolute necessity of
commencing the actual construction of the Eailway from the seaboard of British Columbia, early in the present year.
12 154 Railway Papers. 1880
No. 30.
The Lieutenant-Governor to the Secretary of State.
Victoria, 25th February, 1874.
Sir,—I have the honour to enclose herewith, a copy of an Address to me from the
Legislative Assembly of this Province, requesting me to protest on behalf of the Legislature and people of British Columbia, against the infraction of the llth Article of the
Terms of Union of British Columbia with Canada, by which the Dominion undertook to
secure the commencement simultaneously within two years from the date of Union of
the construction of a Railway from the Pacific towards the Rocky Mountains, and from
such point as may be selected East of the Rocky Mountains towards the Pacific, to connect the seaboard of British Columbia with the Railway system of Canada, and to urge
the absolute necessity for the commencement of the actual construction of such Railway,
from the seaboard of British Columbia, early in the present year.
I also enclose a Minute of my Executive Council concurring in the prayer of this
Address to me, and recommending that a copy be forwarded by mo to His Excellency
the Governor-General, with a request that he will be pleased to order immediate action
to be taken thereon.
In accordance, therefore, with the advice of my Ministers, I beg that you will be
good enough to lay this Despatch and its Enclosure before His Excellency the Governor-
General, and to recommend to His Excellency's favourable consideration, the representations and urgent requests of the Government and Legislature of British Columbia herein
set forth.
I have, &c,
(Signed) Joseph W. Trutch.
No. 31.
Report of the Executive Council, approved by the Lieutenant-Governor on the
23rd February, 1874.
The Committee of Council have had under consideration an Address of the Legislative Assembly of the 9th instant, respecting the breach of the railway clause contained
in the Terms of Union.
On the 25th of July last, and again on the 24th November last, strong protests and
representations on the subject of the Address were forwarded to the Dominion Government, but no reply of an assuring character has yet been received by the Province.
The result of this silence has been one of painful and growing dissatisfaction.
The Committee feel that a strong but respectful protest against the course pursued
by the Dominion Government should be once more forwarded to His Excellency the
Governor-General.
The Committee recommend that should this their report be approved of His Honour
the Lieutenant-Governor be respectfully requested to cause a copy of the Address to be
forwarded to His Excellency the Governor-General, with a request that he will be
pleased to order immediate action to be taken thereon.
The Committee advise that their recommendation be approved of.
Certified.
(Signed) W. J Armstrong.
Clerk Executive Council.
No. 32.
Address of the Legislative Assembly of British Columbia to the Lieutenant-Governor.
To His Honour the Honourable Joseph William Trutch, Lieutenant-Governor of the
Province of British Columbia.
" May it please Your Honour:—We, Her Majesty's dutiful and loyal subjects, the
"Legislative Assembly of the Province of British Columbia, in Parliament assembled,
"beg leave to approach Your Honour with our respectful request that Your Honour
"will be pleased to take into consideration the following Resolution of the House:— 44 Vic. Railway Papers. 165
"Whereas, on the 20th July 1871, the Colony of British Columbia was united to
"and became part of the Dominion of Canada, in accordance with certain terms; and
" whereas by Section 11 of the said Terms, the Government of the Dominion undertook
" to secure the commencement, simultaneously within two years from the date of
"Union, of the construction of a railway from the Pacific towards the Rocky Mountains,
" and from such point as may be selected east of the Rocky Mountains towards the
"Pacific; and whereas the two years therein referred to expired on the 20th July last,
" and the construction of the said railway was not then, and has not since been, com-
"menced, causing thereby serious loss and injury to the people of this Province, be it
" therefore Resolved. That an humble Address be presented to His Excellency the
" Lieutenant-Governor, respectfully requesting him to protest on behalf of the Legisla-
" ture and people of this Province against the infraction of this most important clause
" of the Terms of Union, and to impress upon the present administration the absolute
" necessity of commencing the actual construction of the railway from the seaboard of
" British Columbia early in the present year."
(Signed) J. Roland Hett,
9th February, 1874. .   Clerk of the Assembly.
No. 33.
The Secretary of State to the Lieutenant-Governor.
Ottawa, 12th March, 1874.
Sir,—I have the honour to acknowledge the receipt of your Despatch No. 9 of the
25th ultimo, covering a copy of an Address of the Legislative Assembly of the Province
of British Columbia, and of a Minute of your Executive Council founded thereon, on the
subject of the non-fulfilment of the llth Section of the Terms of Union of the Province
to the Dominion.
Your Despatch, and its enclosures, will be submitted for the consideration of His
Excellency the Governor-General.
I have, &c,
(Signed) E. J. Langevin,
Under Secretary of State.
No. 34.
Mr. Mackenzie to Mr. Edgar (Confidential.)
Ottawa, February 19th, 1874.
My Dear Sir,—In your conversations with leading men in and out of the Government in Columbia, it will be well to let them understand that in proposing to take longer
time than is provided in constructing the railway, we are actuated solely by an urgent
necessity. That we are as anxious as possible to reach the object sought by all—the
early construction of the road.
We are, however, advised by our Engineers, that it is a physical impossibility to
construct the road in that time—that is within the time provided in the Terms of the
Union—and that any attempt to do so can only result in very great useless expense and
financial disorder. You can point out that the surveys for the Intercolonial Railway
were begun in 1864, and the work carried on uninterruptedly ever since, and although
the utmost expedition was used, it will require still eighteen months to complete it. If
it requires so much time in a settled country to build 500 miles of railway, with facilities
everywhere for procuring all supplies, one may conceive the time and labour required
to construct a lino five times the length through a country all but totally unsettled.
You will point out that it is because we desire to act in good faith towards Columbia, that we at once avow our inability to carry out the exact conditions of the Terms
of Union. That it would have been an easy matter for us to have said nothing about it,
or carelessly to have assumed the task of finishing the road before the month of July!
1881. Acting from a desire to deal frankly and honestly with Columbia, we considered
what we could do to afford, at the earliest possible date, some means of travel across the
continent, preliminary to and in advance of a complete line of railway. 156 Railway Papers. 1880
You will point out that, as part of the Dominion, it is as much in their interest as
in ours to pursue a careful, judicious policy; also, that in assuming a disposition in spite
of all reason to insist on impossibilities, they are only setting at defiance all the rest of
the Dominion and the laws of nature.
That by insisting on the " pound of flesh," they will only stimulate a feeling on the
part of people generally to avoid in the future giving anything but the "pound of flesh."
You will remember that the Dominion is bound to reach the seaboard of the Pacific
only, not Victoria or Esquimalt, and you will convey an intimation to them that any
further extension beyond the head waters of the Bute Inlet, or whatever other portion
of the sea-waters may be reached, may depend entirely on the spirit shown by themselves in assenting to a reasonable extension of time or a modification of the terms
originally agreed to.
You will also put them in remembrance of the terms they themselves proposed,
which terms were assented to by their Local Legislature, and point out that it was only
the insane act of the Administration here which gave such conditions of Union to
Columbia; that it could only have been because that Administration sought additional
means of procuring extensive patronage immediately before the general election, and
saw in coming contests the means of carrying the elections, that the Province obtained
on paper terms which at the time were known to be impossible of fulfilment.
If you find any favourable disposition among the leading men of the Province
towards affording a generous consideration to the obvious necessity of giving a sufficient
time for pushing the road through Columbia, you will endeavour to ascertain what value
they attach to such consideration.
You will point out that the action of this Government in the matter of the Graving
Dock, and the agreement to advance in cash the balance of the amount of debt with
which Columbia was allowed to enter the Confederation, showed that it was not considering itself bound to the exact Terms of Union, but was willing to go beyond them
when the necessities of the Province seemed to demand such action, and that we not
unnaturally expect similar action on the part of the Province.
In the event of your finding that there is a willingness to accept a proposition to
extend the time for building the road, you will endeavour to obtain some proposition
from them, directly or indirectly, and communicate this to us by cipher telegraph at once.
If, on the other hand, they make or indicate no proposition, you will telegraph to us
what you think would be acceptable, but wait a reply before making any proposition.
In the event of the leading men evincing a disposition to negotiate, you will
endeavour to secure something like a combination of parties to sanction any proposition
likely to be generally accepted.
It will be well that you should take some means of ascertaining the popular view of
the Railway question. This may be done by mingling among the jjeople and allowing
them to speak freely while you listen, remembering, in taking impressions, that your
audience may be impressed by special local considerations rather than the general
question.
It will be well not to confine yourself to the vicinity of the Government offices or
Victoria, but to cross to the mainland and meet with the people at Westminster and
other towns and villages on the lower reaches of the Fraser.
It may be that you will find there is a disposition manifested to negotiate at
Ottawa, in which case you will advise us of the existence of such a desire.
You will take special care not to admit in any way that we are bound to build the
railway to Esquimalt or any other place on the Island; and while you do not at all
threaten not to build there, to let them understand that this is wholly and purely a
concession, and that its construction must be contingent on a reasonable course being-
pursued regarding other parts of the scheme.
It may be that the Local Government will desire to constitute the members for the
Commons a delegation to discuss matters here; if this be the case, you will still remain
until we shall communicate with you.
You will take every opportunity of noting the various matters connected with
Dominion business, in accordance with instructions that will be sent.
I am, &c,
(Signed) A. Mackenzie. 44 Vic Railway Papers. 157
No. 35.
Letter of Introduction from the Hon. A. Mackenzie to the Hon. G. A. Walkem.
Ottawa, February 19th, 1874.
Dear Sir,—Allow me introduce Mr. James D. Edgar, of Toronto, who visits your
Province on public business for the Government. Mr. Edgar will confer with yourself
and other membersof the Government of Columbia on the questions lately agitating the
public mind in Columbia, and will be glad to receive your views regarding the policy of
the Government on the construction of the Railway.
But for the meeting of Parliament in four weeks, some member of the Government
would have visited your Province, but Mr. Edgar, as a public man, is well known here,
and fully understands the question he will discuss with you.
I need not, I am sure, assure you of my own sincere desire to do all I can to not
only act justly but generously to Columbia.
It is in your interest, and in the interest of the Dominion, that we should both act
with a reasonable appreciation of difficulties which are unavoidable, and to devise means
to remove them or overcome them.
Wo have induced Mr. Edgar to go to Columbia, us we thought you would prefer a
full conference with an agent to a tedious, and possibly unsatisfactory, correspondence.
I have, &c.,
(Signed) A. Mackenzie.
No. 36.
Mr. Mackenzie to the Lieutenant- Governor.
February, 21st, 1874.
Sir,—The bearer is James D. Edgar, Esq., Barrister, Toronto, who visits Columbia
as the Agent of the Dominion Government, to consult with your Government with
reference to the late agitation concerning an extension of time for the construction of
the Pacific Railway beyond that promised, in the Terms of Union.
Mr. Edgar will explain to Your Excellency our anxiety to do everything in our
power to meet the views of your people.
He will be glad to receive your suggestions concerning matters which may require
attention.
I am, &c,
(Signed) A. Mackenzie.
No. 37.
Provincial Secretary's Office,
22nd March, 1875.
SrR,—I have the honour to draw Your Excellency's attention to a letter dated the
21st February, 1874, from the Honourable A. Mackenzie to yourself, a copy of which is
printed amongst the papers laid before the Dominion Parliament, respecting the non-
fulfilment of the Terms of Union, and to request you will inform the Committee of
Council if the letter in question ever reached Your Excellency.
This request is made because the Committee has always understood that Mr. Edgar
never presented you with any credentials other than letters from the Governor-General
of Canada, which were marked " private and confidential."
I have, &c,
(Signed) John Ash.
His Excellency Lieutenant-Governor 'Trutch,
&c, &c, dsc. 158 Railway Papers. 1880
No. 38.
Lieutenant-Governor's Office,
22nd March, 1875.
Sir,—The Lieutenant-Governor directs me to state in reply to the letter of this
day's date addressed by you to His Honour, that the letter dated 21st February, 1874,
from the Honourable A. Mackenzie to the Lieutenant-Governor, a copy of which is
printed amongst the papers laid before the Dominion Parliament respecting the non-
fulfilment of the Terms of Union, has never reached His Honour, nor was he aware
until he read the printed copy above referred to, that any such letter had been
addressed to him. I have, &c,
(Signed) Arthur G. J. Pinder, .
The Honourable the Provincial Secretary. Private Secretary.
No. 39.
Ottawa, March 24th, 1875.
Sir,—I have just received your telegram, informing me that you had not received
the letter I addressed you, by Mr. Edgar, of February 21st, 1874.
I was not aware, until I received your telegram, that the letter had not been
delivered to you. Mr. Edgar has, to-day, informed me that he did not hand you the
letter, as your Ministers objected to any communication being made except through
them. Mr. Edgar did not previously make me aware of this objection. Had I been
informed of it at the time, 1 would have directed him to deliver the letter, notwithstanding the objection.
I can only now express my regret that the letter was not delivered; and, that
seeing it was not delivered, that it was published with the correspondence. I observe
however, that there is nothing in the letter which could, apparently, affect the question
to be discussed by Mr. Edgar, as similar assurances were conveyed in my letter by Mr.
Edgar to Mr. Walkem. I am, &c,
His Honour (Signed) A. Mackenzie.
Lieutenant-Governor Trutch,
Victoria, B. C.
No. 40.
Report of the Executive Council, approved by the Lieutenant-Governor on the 1th May, 1874.
On a memorandum dated 7th May, 1874, from the Honourable the Attorney-General,
recommending that his Excellency the Lieutenant-Governor be requested to telegraph
to His Excellency the Governor-General for a reply by telegram, containing full information of the Railway policy of the Dominion Government, especially as it affects
British Columbia, and whether it is true that the Premier has publicly stated in the
Commons that the Dominion Government do not intend to commence railway
construction this year, in this Province.
The Committee advise that the recommendation be approved.
(Certified) W. J. Armstrong,
Minister ofEinance and Agriculture,
and Clerk of the Executive Council.
No. 41.
Telegram.
To the Secretary of State for Canada, Victoria, May 7th, 1874.
Ottawa, Canada.
It being reported here to-day that the Premier stated in the House of Commons, on
the 4th inst., that construction of Railway in Biitish Columbia would not be commenced
this year, this Government urgently requests to bo fully informed immediately, by telegraph, of particulars of policy adopted by Dominion Government respecting Railway
Clause of Terms of Union.
(Signed) Joseph W. Trutch.
Lieutenant- Governor. 44 Vic. Railway Papers. 150
No. 42.
Telegram.
Ottawa, Ontario, May 8th, 1874.
Lieutenant- Governor Trutch.
Mr. Mackenzie simply said, that until the location of the road was ascertained it
was impossible to commence construction ; that a large surveying force was now at
work, and there was no reason to believe that it would be possible to complete the
survey before the close of the year.
(Signed) E. W. Scott,
Secretary of State.
No. 43.
The Governor-General to the Earl of Carnarvon.
Government House, Ottawa,
May 15th, 1874.
My Lord,—I have the honour to enclose for Your Lordshijj's information a news-
Giobe 13th and i«h PaPer report of the speech delivered by Mr. Mackenzie on the 12th instant,
May. when introducing Resolutions for a Bill to provide for the construction of
Hobe, 12th May. . . .
Globe, 13th Mav.
Globe, 12   May.      the Pacific Ilailroad, together with  a summary of this speech, and an
article from the Globe newspaper of the 12th instant, explanatory of the
Government project.
I have, &c,
(Signed) Dufferin.
No. 44.
The Governor-General to the Earl of Carnarvon.
Government House, Ottawa,
May 15th, 1874.
My Lord,—In continuation of my despatch No. 130, of this day's date, I have the
Mayi«h Forarticiesee honour to.en?lose an extract from the Toronto Mail, an opposition
scrap Book, page 40.      paper, criticising the scheme of the Government.
I have, &c.,
(Signed) Dufferin.
No. 45.
Mr. J. D. Edgar's Letter to the Hon. G. A. Walkem.
Victoria, B.C., May 8th, 1874.
Sir,—I have the honour to inform you that I have been instructed, by the Premier
of Canada, to make you aware of the views of his Administration upon the subject of
the construction of the Canadian Pacific Railway, in order that British Columbia may
have full opportunity of considering and deciding upon a question so closely affecting
her material interests. The scheme originally adopted fOr the carrying out of this work
has, for a variety of reasons, proved unsuccessful, and to devise a plan for its more
certain accomplishment has been the aim of the Dominion Cabinet. The chief difficulty
to be encountered in attempting to carry out the existing system of construction, is to
be found in the stipulation as to the completion of the Railway by the month of July,
1881. Id proposing to take a longer time for constructing the' Railway, the Canadian
Government are actuated solely by an urgent necessity.' They are advised by their
Engineers that the physical difficulties are so much greater than was expected, that it
is an impossibility to construct the Eailway within the time limited by the Terms of 160 Railway Papers. 1880
Union, and that any attempt to do so can only result in wasteful expenditure and
financial embarrassment. It is because they desire to act in good faith towards British
Columbia that the Canadian Ministry at once avow the difficulty of carrying out the
exact Terms of Union, whilst they have no desire to avoid the full responsibility of
Canada to complete the Eailway by all means in her power, and at the earliest practicable date.
The eleventh article of the 'Terms of Union embodies the bald proposition that the
Eailway should be commenced in two, and completed in ten years, from the date of
Union, to connect the seaboard of British Columbia with the Eailway system of Canada.
Feeling the impossibility of complying with this time limit for completion, the Government is prepared to make new stipulations, and to enter into additional obligations of a
definite character, for the benefit of the Province. They propose to commence construction from Esquimalt to Nanaimo immediately, and to push that portion of railway
on to completion, with the utmost vigour, and in the shortest practicable time.
The engineering difficulties on the Mainland have unfortunately turned out to be
so serious that further surveys must necessarily be made before the best route can be
determined upon. The Government have already asked Parliament for a large sum for
the purpose of carrying on these surveys, and no expenditure will be spared to achieve
the most speedy and reliable selection of a permanent location of the line upon the
Mainland. It is useless to propose an actual construction being undertaken before the
location has been determined upon; but in order to afford as much benefit from the
works of construction from the very first as can possibly be derived by the people of the
interior, the Government would immediately open up a road, and build a telegraph line
along the whole length of the railway in the Province, and carry the telegraph wire
across the continent. It is believed that the mere commencement to build a railway at
the seaboard, as stipulated for in the existing terms, would give but little satisfaction
to the producers living upon the east side of the Cascade Mountains, who would be
unable, without a road being first constructed, to find a market all along the whole
extent of the railway wherever construction was progressing. It would then be the
aim of the Government to strain every nerve to push forward the construction of the
railway; and they would endeavour at the same time so to arrange the expenditure
that the legitimate advantages derivable from it would as much as possible fall into the
hands of our producers. In addition to constructing the road to facilitate transport
along the located line, they are anxious to avail of the large supplies of all kinds of provisions now existing, or capable of being produced in the interior, and would proceed
from the very first with all the works of construction in that portion of the country that
their engineers could sanction.
It is to be observed that while the Terms of Union contemplated the completion of
the whole railway within a certain number of years, they made no provision for any
certainty of expenditure in any particular time, or on any particular portion of the line.
To predicate the highest expenditure which in any one year might be warranted in a
particular portion of a groat work like this is certainly difficult; and it is still more
difficult to arrive at the lowest fixed annual sum which, in every year, and under all
circumstances, might be judiciously expended as a minimum in local construction. To
a country like British Columbia, it is conceded, however, to be an important point that
not only the prompt and vigorous commencement, but also the continuous prosecution,
of the work of construction within the limits of the Province should be guaranteed. In
order, therefore, to secure an absolute certainty in this direction, and although the length
of the line falling within the Province is estimated at only about one-fifth of the whole
length, the Dominion Government are disposed to concede to British Columbia that the
moment the surveys and road on the Mainland can be completed there shall be in each
and every year, and even under the most unfavourable circumstances, during the construction of the railway, a minimum expenditure upon works of construction within the
Province of at least one million five hundred thousand dollars. That this will secure
the continuous progress of the works in the Province, without any intermission', is quite
apparent, and it must also be perfectly clear that so large an annual sum could not be
expended by any Dominion Administration in a remote'district without holding out to
the country some early prospect of a return for it, and at the same time showing that
they were proceeding with the 'works with sufficient rapidity to bring the investment
into an early condition toearn something.    In reference to this point, I may be permitted 44 Vic Railway Papers. 161
to refer to the fact that the Delegates from British Columbia, who negotiated the Terms
of Union were instructed by the Provincial Legislature to accept an undertaking from
Canada to build the railway, with a guaranteed annual expenditure in the Province
upon construction of one million dollars, to begin at the end ot three years after Union.
We must assume that this guarantee of continuous construction was only abandoned by
the Delegates upon a conviction of both the sincerity and feasibility of the offer of early
completion that was made to them.
I trust that the proposals of the Dominion Cabinet, which 1 have sketched above,
will be considered and accepted by British Columbia, as an earnest effort on the part of
the former to carry out the spirit of the obligations to the Province.
The leader of the Canadian Government has instructed me to place these matters
before you, as leader of the Provincial Administration, and at the same time to furnish
a copy to His Excellency the Lieutenant-Governor. The substance of these proposals
has been sent to me by telegraphic cipher, and based upon that, I have the honour of
communicating them to you. The Dominion Government would be glad to have the
consideration of this proposal entertained by your Administration, and to learn the conclusion of the Government of British Columbia upon the subject.
1 have, &c,
(Signed)       J. D. Edgar.
No. 46.
Mr. Edgar to the Lieutenant- Governor.
Victoria, B. C, May 9th, 1874.
Sir,—I have the honour to inform Your Excellency that in accordance with instructions from Honourable Alexander Mackenzie, leader of the Canadian Government,
I have submitted to the Honourable G A. Walkem, leader of your Ministry, the views
of the former upon the question of the Canada Pacific Eailway, with a view to the
relaxation of the Terms of Union so far as regards the time limited for the completion
of the railway. I was at the same time instructed to furnish, for Your Excellency's
information, a copy, which I now have the honour to enclose, of the communication
addressed by me to your Minister upon that subject.
I have, &c,
(Signed)        J. D. Edgar.
No. 47.
Eon. G. A. Walkem to Mr. J. D. Edgar.
Attorney-General's Department,
Victoria, May llth, 1874.
Sir,—I have the honour to acknowledge the receipt, on Saturday, the 9th instant,
of your letter of the previous day's date.
In reply to your request, that I should submit your proposals for a change in the
Eailway Clause of the Terms of Union to the Local Administration, for their consideration and acceptance, I have the honour to inform you that I am not in a position to
advise His Excellency the Lieutenant-Governor in Council to treat such proposals
officially; nor can I tender such advice until I shall have been informed that you have
been specially accredited to act in this matter as the Agent of the General Government,
and that they will consider your acts or negotiations in the matter binding upon them.
I have, &c,
(Signed)        G. A. Walkem,
Attorney-General. 162 Railway Papers. 1880
No. 48.
Meport of the Executive Council approved by the Lieutenant-Governor on the 18th May, 1874.
On a memorandum, dated 16th May, 1874, from the Honourable the Attorney-
General, recommending that His 'Excellency the Lieutenant-Governor be respectfully
requested to ascertain by telegraph, from the Honourable the Secretary of State, whether
any propositions purporting to be, or to have been, made by James D. Edgar, Esquire,
on behalf of the Dominion Government, will be considered binding by them; and,
further, whether he has any power to enter into any negotiations with this Government.
The Committee advise that the recommendation be approved.
(Certified)       W. J. Armstrong,
Minister of Finance and Agriculture,
and Clerk of the Executive Council.
No. 49.
Mr. J. D. Edgar to the Honourable G. A. Walkem.
Victoria, May 18th, 1874.
Sir,—I have the honour to acknowledge having received your letter of the llth
instant, just before leaving for the Mainland.
I am sure you cannot have forgotten that letters from the highest dignitaries at
Ottawa which have been long ago delivered by me, both to His Excellency the Lieutenant-Governor and to yourself, have informed you that I came to this Province on behalf
of the Dominion Government, and possessing their entire confidence. In my communication of the 8th instant, I stated most distinctly that I was making the proposals
contained in it by the instructions and on behalf of the Canadian Ministry. You have,
however, done me the honour of assuming that 'my statement was incorrect, and that I
am acting without authority and without instructions. I can afford to pass over without
notice the personal insinuations, but I must most strongly protest against such extraordinary treatment of a document which emanates from the Government of Canada,
upon a subject of such deep and pressing moment to British Columbia.
I have, therefore, the honour to request that the proposals of the Dominion Government may receive the consideration at the hands of the Provincial Administration to
which such communications are entitled, and which the extreme importance of the
subject demands.
I have, &c,
(Signed)       J. D. Edgar.
No. 50.
Hon. G. A. Walkem to Mr. J. D. Edgar.
Victoria, May 18th, 1874.
Sir,—In reply to your letter of this date, I must express my suprise and regret
that you should have taken umbrage at the contents of my letter of the llth instant.
Sir. Mackenzie in an unofficial—and in his only—letter to me, respecting your visit,
has expressly narrowed and confined'the object of your mission to the holding of a
personal interview with my colleagues and myself, in order that our " views regarding
"the policy of the Government on the construction of the Railway" should be ascertained without "tedious and possibly unsatisfactory correspondence"—I quote his
words. These things having been done, the special aim desired, I may be permitted to
think, has been attained by Mr. Mackenzie.
When, however, you proceed further, and propose changes to this Government of
the gravest importance to the Province, 1 must be pardoned for considering it my duty,
in my public capacity, to ask for your official authority for appearing in the role of an
agent contracting for the Dominion of Canada.    This information I have not yet received.
I have, &c,
(Signed)       Geo. A. Walkem. 44 Vic. Railway Papers. 163
No. 51.
Telegram.
Victoria, 18th May, 1874.
The Hon. R. W. Scott, Secretary of State, Ottawa, Canada.
My Ministers request to be informed whether Mr. Edgar is empowered to negotiate
with this Government, and whether propositions purporting to be made by him on
behalf of the Dominion Government, will be considered binding by that Government.
(Signed)       Joseph W. Trutch,
Lieutenant- Governor.
No. 52.
The Lieutenant-Governor to the Secretary of State for Canada.
British Columbia, Government House,
18th May, 1874.
Minute of Execu-       gIR—t have tne i10Ilour t0 enclose herewith a Minute of the Executive
tive Council.       ~, .,.,.-.-»• i • i •   i      1 1    •' p
Council of this Province to state that, in accordance with the advice of my
Tel. Mess., May Ministers 'therein expressed, I have this day  addressed to you a message
isth, 1874.      hy telegraph, of which a copy is appended hereto.
I have, &Oi,
(Signed)       Joseph W. Trutch.
No. 53.
Telegram.
To Lieutenant-Governor Trutch:—
Ottawa, May 20th, 1874.
I refer Ministry to my letter by Mr. Edgar, which sufficiently indicated his mission,
and which they recognized.
He is now recalled, and 1 await his return and reports.
(Signed)       A. Mackenzie.
No. 54.
Telegram.
Victoria, May 21st, 1874.
Hon. A. Mackenzie, Ottawa.
3i" Governor's telegram f
nd vour Government.
(Signed)       Geo. A. Walkem
Will you kindly answer Governor's telegram fully.    Do Mr. Edgar's propositions
to change railway terms bind your Government.
No. 55.
Report of the Executive Council, approved by the Lieutenant-Governor on the 21st day of
May, ]874.
The Committee of Council have had under consideration the subject of the non-
fulfilment, by the Dominion Government, of the llth or Railway Clause of the Terms
of Union; and in view of the importance of the question as affecting the whole Province,
they recommend that a letter of Mr. J. D. Edgar, dated 8th May, 1874, addressed to the
Honourable Attorney-General, and the Orders in Council, the Telegrams, and the correspondence relating thereto, be published for general information. 164 Railway Papers. 1880
The Committee remark that the letter alluded to by Mr. Edgar as having been
delivered by him to your Excellency, is the only document bearing on the subject which
will not be published. This letter they have never seen, nor have they any further
knowledge of it beyond the reference made to it by your Excellency as a letter received
by you from His Excellency the Governor-General marked " private and confidential,"
and therefore not communicated to the Council.
(Certified)       W. J. Armstrong,
Minister of Finance and Agriculture,
and Clerk of the Executive Council.
No. 56.
Telegram.
Ottawa, Ontario, June 8th, 1874.
To Lieutenant-Governor Trutch. Received at Victoria June 8th.
On May 8th Mr. Edgar, on behalf of the Dominion Government, made certain proposals to your Government respecting the construction of the Pacific Railway, which
involved immediately heavy expenditure for purchases (purposes) not contemplated by
the Terms of Union—in consideration of foregoing the limit of the time for the completion of the Railway.
I exceedingly regret that your Government have not replied to the proposals, or
apparently considered them. 1 beg, therefore, that you will now inform your Ministers
that the proposals are withdrawn.
(Signed)       A. Mackenzie.
No. 57.
Order in Council, approved by the Lieutenant- Governor 9th June, 1874.
On a memorandum of the 9th day of June, 1874, reporting on a Telegram, laid
before this Council by His Excellency the Lieutenant-Governor, yesterday received by
him, from the Honourable Alexander Mackenzie, Premier of the Dominion of Canada,
copy of which is enclosed, respecting certain proposals in writing made on the 8th of
May last by Mr. Edgar to Mr. Walkem, and recommending that His Excellency be
respectfully requested to send the enclosed telegraphic message in reply thereto.
The Committee advise that the recommendation be approved.
(Signed)       Geo. A. Walkem,
President Executive Council.
No. 58.
The Lieutenant-Governor to the Secretary of State for Canada.
British Columbia,
Government House, 9th June, 1874.
Sir,—With reference to my telegraphic despatch to you of to-day's date, 1 have the
honour to enclose a minute of my Executive Council, in accordance with which that
telegram was addressed to you, together with copies of the documents referred to in the
said minute, being copy of a telegram to me from the Honourable A. Mackenzie, which, at
his request, I communicated to my Ministers, and a draft of the telegraphic message to
you in reference thereto sent by me at the instance of my Ministry.
I have, &c., (Signed)      Joseph W. Trutch. 44 Vic. Railway Papers. 165
No. 59.
Telegram.
The Honourable R. W. Scott, Secretary of State, Victoria, June 9th, 1874.
Ottawa, Canada.
My Ministers request me to state, in reference to a Telegram to me from Mr.
Mackenzie, dated yesterday, that it conveys the first direct information to this Government, (although such information was formally applied for by Telegram to you of 18th
May,) that the views on the Railway question, contained in a letter from Mr. Edgar to
Mr. Walkem, were proposals to this Government from the Dominion Government, and
that they consider it remarkable that the only communication to this Government which
acknowledges such proposals authoritative should at the same time withdraw them.
. (Signed) Joseph W. Trutch.
Lieutenant-Governor.
No. 60.
Extract from the Montreal Weekly Gazette, May 15th, 1874.
" They were quite aware that the difficulties to be surmounted were extensive, and
they were quite aware that the terms of the agreement with British Columbia had been
violated. Under these circumstances they thought that in the meantime the first step
to be taken, was to confer with the Local Government of the Province of British
Columbia, and endeavour to ascertain from them if any means could be arranged by
which an extension of time could be procured for the prosecution of the work we were
bound to undertake. With that view an agent was sent as a representative of this
Government to visit that Province, and in the course of his communications with the
Local Government, it became very apparent, as it had been made apparent in the House
by several members from the Island of Vancouver, that it was an exceedingly important
matter with them to have the road commenced at once. He, for one, was quite willing,
if the Local Government were disposed to make some terms for the extension of time,
that the Government should undertake the construction'of the land portion as rapidly
as possible, but if it became apparent that the Local Government were determined to
adhere to the whole terms, then the Dominion of Canada could accede to the terms, and
nothing more. They instructed Mr. Edgar to say that the Government would be prepared immediately to undertake the commencement of the work on the Island, traversing
northwards towards the point of crossing; prosecuting the surveys on the mainland,
getting a passable route along the ridge, and erecting telegraph lines. He was also instructed to state that as soon as the work could bo placed under contract, they would
spend no less than $1,500,000 within the Province on the railway. He did not know
whether this had been accepted or not, but under any circumstances they should have
authority to proceed with the work, as they thought would meet the just expectations
of the country and the reasonable expectations of the people in British Columbia. The
policy he had announced in his election address in November last had been closely
criticised by the honourable gentlemen opposite. He had his own impression as to the
course to be pursued, and ho thought, if he recollected rightly, that the right honourable
gentleman opposite had said that if his views were adopted, British Columbia would bo
justified in seceding from the Union."
No. 61.
The Under Secretary of State for Canada to the Lieutenant-Governor.
Department Secretary of State,
10th June, 1874.
Sir,—I have the honour to acknowledge the receipt of your despatch, No. 28, of the
18th ult., purporting to enclose a minute of your Executive Council, and also copy of a
telegram founded thereon, and sent by you to the Secretary of State on the 18th ult., on
the subject of the mission of Mr. J. D. Edgar to the Government of British Columbia.
The minute of Council referred to did not accompany your despatch.
(Signed)       Edouard J. Langevin,
Under Secretary of State. 166 Railway Papers. 1880
No. 62.
The Secretary of State for Canada to the Lieutenant-Governor.
Department Secretary of State,
25th June, 1874.
Sir,—I have the honour to acknowledge the receipt of your Despatch, No. 39, of
the 9th instant, transmitting a copy of a minute of your Executive Council, together
with a copy of a telegram addressed to you by the Honourable the Minister of Public
Works, and also of a telegram addressed by you to the Secretary of State, in reply
thereto, on the subject of the mission of Mr. J. D. Edgar to British Columbia, in
connection with the Pacific Railway.
I have, &c,
(Signed) Edouard J. Langevin,
Under Secretary of State.
63.
The Lieutenant-Governor to the Secretary of State for Canada.
(Copy of No. 46.) British Columbia.
Government House, 26th June, 1874.
•J!"111'of E=j-       Sir,—I have the honour to acknowledge the receipt of your Despatch of
the 10th instant, referring to my Despatch, No. 28,  of the  18th May, and
Copy of      informing me that the Minute of Executive Council, which my said Despatch
Telegram.     purported to enclose, had not reached you.
I beg to enclose herewith a duplicate copy of the said Minute of Council, and of
the telegram to you based thereon.
I have, &c,
(Signed)      Joseph W. Trutch.
No. 64.
Mr. Edgar to the Secretary of State for Canada.
Toronto, June, 17th, 1874.
Str,—I have the honour to report that in the month of February last I was requested
by the Canadian Government to proceed to the Province of British Columbia on their
behalf. My mission was for the purpose of ascertaining the true state of feeling in the
Province upon the subject of certain changes which were deemed necessary, in the mode
and in the limit of time for the construction of the Canadian Pacific Railway, as well as
to attend to any other business required, and to act as Canadian agent in bringing about
some such feasible arrangement as might meet the general approval of the Local Government and the people of British Columbia, in place of the original conditions respecting
the commencement and completion of the railway that are contained in the Eleventh
Article of the Terms of Union. In that clause the language referring to railway construction is as follows:—
" The Government of the Dominion undertake to secure the commencement simul-
" taneously, within two years from the date of Union, of the construction of a railway
" from the Pacific towards the Rocky Mountains, and from such point as may be selected
" east of the Rocky Mountains towards the Pacific, to connect the seaboard of British
" Columbia with the railway system of Canada; and further to secure the completion
" of such railway within ten years from the date of the Union."
The views and policy of his Government upon the question of the Canadian Pacific
Railway were communicated to me in several interviews by the Hon. Mr. Mackenzie,
and I also had the benefit of conversations upon the same subject with many members
of the Administration before I left Ottawa. On the eve of my departure I received from
Hon. Mr. Mackenzie certain further instructions and directions for my guidance, which
were contained in the following letter;—{See No. 84, p. 155.) 44 Vio. Railway Papers. 167
When I received the above letter I lost no time, and starting upon my journey and
leaving Toronto February 23rd, I arrived upon March 9th at Victoria, the capital of
British Columbia. On the day that I landed in Victoria, the Hon. Mr. Walkem, leader
of the Local Government, called upon me, and I made him aware of the object of my
mission. On the same day I handed him Hon. Mr. Mackenzie's letter of February 16, (see
No. 35 p. 157), also informing him that I had letters from His Excellencj^ the Governor-
General to his Honour the Lieutenant-Governor, which were next day delivered. Very
soon afterwards Mr. Walkem introduced me to his colleagues as the representative of
the Canadian Government.
Upon my arrival in the Province', I found that an intense interest was manifested
by all the population in whatever related to the question of railway construction. It is
difficult at a distance to conceive the importance that is attached to the railway by
the British Columbians. On account of the vast construction expenditure, and the
sparscness of the population who would participate in the immediate benefits derivable
from it, an interest of a direct and personal character is felt upon this subject. The
entire white population of the Province, according to the census of 1870, was 8,576 souls.
Of this number there were upon the Mainland 3,401, and upon Vancouver Island 5,175.
The white population of to-day has probably increased to 10,000. With the exception,
perhaps, of the gold miners, who are confined to the Mainland, there is no class in the
Province that would not derive immediate personal advantages from the railway construction expenditure. Those in business, in trade, and in agriculture would feet the
stimulus instantly ; while those of means and leisure would be enriched by the increase
in the value of their property. The circumstances of the early settlement of the
Province gave it a population of peculiar intelligence; and the fact that most of the
rougher kind of labour is performed by Chinamen and Indians has afforded in an especial
way to the people of Victoria, the Provincial metropolis, leisure and opportunity for
the fullest discussion of their great question of the day. Their keen intelligence and
zeal in public affairs suggests a parallel in the history of some of the minor States of
ancient Greece and Italy. Although a strong feeling of jealousy of the greatness of
Victoria undoubtedly exists in parts of the Mainland, yet that town is the chief centre
of public opinion. Its population is almost equal to the whole of the rest of the Province,
and in its midst are the head-quarters of Government, of the Courts, of the churches,
and of trade. Within three miles there is the fine harbour of Esquimalt, with its arsenal
and British ships of war.
To Victoria the question of the location of the railway terminus is all important,
because there is nothing in the terms of Union which settles that there shall be any
portion of the line upon Vancouver Island: a revocable Order in Council, and the
intrinsic merits claimed for the Island location, are the grounds upon which they hope
to secure the terminus at Esquimalt. When it became well understood that the surveys
were not yet so far advanced as to warrant the Canadian Government in fixing the permanent route and Western terminus of the railway, it was strongly urged upon me by many
persons in Victoria that the construction of the line of railway should be at once undertaken by the Dominion from the harbour of Esquimalt to the port of Nanaimo, on the
east coast of Vancouver Island, a distance of about seventy miles. It was argued that
at whatever point upon the Mainland the Pacific Railway might be brought to the coast,
a steam ferry thence to Nanaimo might be established, and would render their portion
of railway a means of connection with Esquimalt, which is said to be the finest harbour
upon the shores of the Northern Pacific. It was also insisted that from its opening
there would be a considerable and profitable traffic over this line in the carriage of coal
to Esquimalt from the mines at Nanaimo and Departure Bay.
Moreover, it was contended that in view of the admitted impossibility to complete
the construction of the trans-continental railway within the time originally limited, some
substantial concessions should be made to the people of the Island, as compensation for
their disappointment and prospective losses.
A contention similar to the last mentioned one was also pressed upon me warmly
by leading men of the Mainland, who considered that they were now entitled to have
some definite understanding arrived at, not so much in regard to the ultimate completion
as to the early, vigorous, and continuous construction of the railway upon the Mainland.
It was represented that those engaged in agriculture and stock-raising in the interior
parts of the' country were almost without a market for their produce,partly because the 168 Railway Papers. 1880
gold miners were leaving in considerable numbers, and partly for the reason that in
anticipation of railway construction they had raised more crops than usual. The great
distance to the coast, and the stupendous mountain ranges to be traversed, prevented
them from getting the bulky products of their land to the Island markets of Victoria
or Nanaimo. Being familiar with the difficulties to be met with by engineers in seeking
for a railway route through their country, the Mainland people were not disposed to
blame the Dominion for insisting upon further time and surveys before fixing the
location. Their immediate necessities also induced them to attach more importance to
the securing of an early and steady expenditure amongst themselves than to the maintaining of any arbitrary time limit for completion, while they also expressed their
perfect appreciation of the agreement that a vigorous expenditure of itself involves an
accomplishment of the work within a reasonable period.
In the Provincial Constitution of British Columbia the working of representative
institutions and responsible parliamentary government may be studied in a simple form.
The system is elaborated out of perhaps slender materials, but has been courageously
fashioned after the model of the British Constitution. The people are represented by a
House of twenty-five members, of whom thirteen are elected from the Mainland and
twelve from the Island. In this House sit the Ministers of the Crown, four in number,
two being Island members and two from the Mainland. The deliberations are presided
over by a Speaker, and due respect for the dignity of the Assembly is maintained by a
Sergeant-at-Arms.
Although I had not the fortune to be in the country wh«n the House was in session,
I was able to discover among the gentlemen who hold seats a considerable number of
much experience and somewhat above the average intelligence of Provincial legislators.
To those accustomed to older Canadian constituencies, each with populations varying
usually from fifteen to thirty thousand souls, it is somewhal novel to see the smallness
of electoral districts in British Columbia. Yet it would be quite unfair to fix the number
of electors as the standard of the intelligence of the representative, for one of the ablest
of the Provincial Ministers, after an exciting contest at the last election, succeeded in
polling but sixteen votes in his constituency, whilst his opponent suffered a decisive
defeat, having polled exactly half that number.
The Session of the Provincial Legislature had terminated on the 2nd March, a week
before my arrival, and the House had unanimously agreed to a resolution upon the subject
or railway clause, in the Terms of Union with the Dominion, which was calculated to
have an important bearing upon all negotiations with the local Government for a
change in that clause. The language of the resolution is as follows :—"That in view
"of the importance of the Eailway Clause of the Terms of Union between Canada and
" British Columbia being faithfully carried out by Canada, this House is of opinion that
" no alteration in the said clause should be permitted by the Government of this Province
" until the same has been submitted to the people for end.orsation." When I ascertained that
this resolution had been passed, that the Provincial Parliament had yet more than a
year to run and that the Ministry had in it a sufficient working majority, it at once
became apparent that any proposals to alter the railway clause could possess few
attractions in the eyes of the party in power. While prepared to admit that the
Province would be most reasonable, and would not be disposed to insist at all upon the
original time limit for completion, yet members of the Administration, looking at it
from their own point of view, very naturally urge that this was a peculiarly unfortunate
time to seek any alterations. I also discovered that the first Act of the Provincial
Statute Book of 1873-4 contained elements of danger to the continued harmony between
the General and Local Governments. This Act became necessary to authorize the
Provincial to receive from the Dominion Government the large sums of money, both
for the Esquimalt Graving Dock, and for other public works, which the Local Government petitioned the Dominion Government to advance, and which requests the latter
complied with as concessions to the Province in excess of what could be claimed under
Articles two and twelve of the Terms of Union. A saving clause or proviso was inserted
in this Act,containing very strong language concerning the rights and wrongs of British
Columbia as regards the railway, and adding :—" This Act shall not have any force or
"effect unless the above proviso be inserted, in the samo words, in any Act of Parlia-
"ment of Canada which may be passed for the purposes of this Act."
A profound anxiety at once manifested by Mr. Walkem and his colleagues to 44 Vic. Railway Papers. 169
ascertain through me if the Canadian Ministry would propose to Parliament to adopt
the words of this proviso. When I sought to get from them some proposals or suggestions as to their terms of the concessions that should be made to British Columbia, in
consideration of a change in the railway terms, I was continually met by an urgent
enquiry as to what was to be done about that clause. As early as the 16th of March,
I was informed by telegram that the Dominion Government would not adopt the
language of the proviso in their bill, but would make the concessions as originally
agreed, and without conditions affecting the railway terms. The announcement of this
was received by the Local Ministers with alarm and disappointment, and it afterwards
became still more difficult to get a satisfactory discussion of an alteration of railway
terms with any of them. Orders in Council were passed by the Local Government upon
the subject, and I was continually urged to press upon the Dominion Government the
anxiety of the Provincial Ministry for the adoption of the saving clause, and I took
many opportunities of doing so. This pressure continued without intermission until the
25th April, when at the request of Mr. Walkem, I sent a despatch to Mr. Mackenzie on
behalf of the former, and in his own language urging the adoption of the saving clause.
When, according to instructions, 1 endeavoured to ascertain from Local Ministers
if their unwillingness to submit proposals as to railway to the people arose entirely
from our refusal to adopt the saving clause, I found that even such a concession would
not induce them to bring about an appeal to the people.
According to instructions .received, it was my aim from the very first to take every
means of ascertaining the popular view of the railway question. Indeed when it was
understood that the Canadian Government had delegated me upon this and general
matters, the politeness and hospitable attentions of all classes soon rendered it an easy
matter to form some estimate of public opinion. • All were as willing to communicate as
I was anxious to receive their various views and information. I paid two brief visits to
the Mainland, meeting with people of New Westminster, Hope, Yale, and some few
other places, and I was so fortunate as to meet, at one time or another, nearly all the
members of the Local Legislature, and many other persons of local prominence from
the Mainland.
The Lieutenant-Governor and the Hon. Captain Hare, Senior Naval Officer at
Esquimalt, kindly afforded me an opportunity of visiting the East Coast of the Island,
in company with them, on board of H. M. S. Myrmidon"
In discussing the question of the time for the completion of the railway, I elicited a
very general expression of opinion that there was no great importance attached to any
particular period for completion, but that serious disappointment had been felt at the
failure to commence the work of actual construction by July of last year. Much anxiety
was felt for an announcement of the policy of Canada upon the subject of the railway,
and an extreme desire prevailed to have definite understanding arrived at as to what the
Province could expect in place of the original railway terms, which were all but
universally admitted to be incapable of literal fulfilment.
The public agitation in Victoria, of February last, might have been mistaken for a
movement to insist upon " The terms, the whole terms, and nothing but the terms," or
to seek some disloyal alternative. Indeed a portion of the community, who did not
sympathize with the excitement, so interpreted it. Yet I was assured by the leaders
of that agitation that no such motives or intentions influenced them. The people had
been aroused, by what were deemed suspicious circumstances, to fear that efforts would
be made, or were being made, to secure from the Local Government an agreement to
change the railway terms without a submission to the people who had directly sanctioned
the original terms. The local contradictions had scarcely been accepted as satisfactory
upon this point, but my denial of it on the part of the Ottawa Government, coupled with
the announcement that the latter would not seek to secure any alteration without the
sanction of the people of the Province, set that difficulty very much at rest.
Notwithstanding the attitude that was assumed by the Provincial Government
against the submission of a proposal, or the opening of negotiations to alter the railway
terms, it was quite apparent that popular feeling, all over the Province, was strongly in
favour of some definite settlement being arrived at upon the question. The notorious and
admitted failure of the original scheme of railway construction had unsettled the business
of the country, and the whole community, including even those who would have been
the most exacting in bargaining with Canada for new terms, were anxious to have a proposal made and to have a full opportunity for discussing and accepting or rejecting it. 170 Railway Papers. 1880
I felt, therefore, that I should take an early opportunity of arriving at the views of
the Local Government upon the subject. I was given an appointment by Mr. Walkem
in the first week of April, and then confidentially discussed with his Ministry the whole
question of alteration in the railway terms. I may mention that upon this occasion no
difficulty was raised as to my authority to represent the General Government.
At this time there was considerable irritation displayed by Ministers upon the subject at the saving clause before alluded to; they would not admit any necessity for a
present settlement of the railway question, but still persisted that next year, or some
future time, should be awaited for the making of any such propositions; and they were
particularly careful to avoid saying what concessions in their opinion would be acceptable to the Province in lieu of the original terms. The attitude of the Local Ministry
rendered it more important than ever that the popular feeling should be accurately
ascertained, and it was my aim to discover it by unreserved discussion with as many
men as possible of the different parties and localities.
It was now quite apparent that the Local Ministers were determined to be obstructive, and it became all the more necessary to satisfy the people in so far as their views
were found to be reasonable. After receiving from me the best information I could
supply, Hon. Mr. Mackenzie directed me to make the Provincial Government certain
proposals which were so arranged as to give large and certain advantages to the Mainland equally with the Island; and on the 6th May, I was instructed to put them formally in
writing and give them to the Local Premier and a copy-to the Lieutenant-Governor.
Upon the 8th May I had prepared, and I read over to Mr. Walkem, the letter of that
date containing the proposals (See No. 45, p. 159), and upon the following day I handed
it to him, and furnished a copy to His Honour the Lieutenant-Governor as directed,
accompanied with a short note (See No. 46, p. 161). I had made arrangements for another
visit to the Mainland to ascertain something more of the feeling there, while the Provincial
Government were having the proposals under consideration. Before sailing for New'
Westminster, however, I received the letter from Mr. Walkem (See No. 47, p. 161), in
which he raised objections to recognizing me as the agent of the General Government.
It struck me as so peculiar a communication on Mr. Walkem's part, after he and his
colleagues had recognized me as such agent almost every day for two months, that I
felt it would be bettor not to be too hasty in accepting that as a serious and final reply
to the proposals, but to await the lapse of a few days to be occupied by me in visiting
New Westminster, Burrard Inlet, Yale, and some other places on the Mainland. Upon
returning to Victoria on Saturday, 16th May, I was waited upon by a deputation of
leading gentlemen, connected with both sides of local politics, who informed me that it
had been announced in the House of Commons at Ottawa, by Hon. Mr. Mackenzie, that
proposals had been made on behalf of his Ministry, through myself, to the Provincial
Government as to the alteration of the railway terms; and yet that it was denied by
members of the Local Ministry, and by their newspaper organ, that any proposals whatever had been made. They represented that the popular feeling was very much excited
upon the subject, and that the people were anxious to have the earliest opportunity of
considering and deciding upon the question, and I was asked to inform them whether
such proposals had been made. Upon receiving an affirmative reply they took their
leave, and shortly afterwards, as the intelligence spread, considerable excitement was
manifested at the treatment the proposals were receiving at the hands of Local Ministers.
In order to afford Mr. Walkem another opportunity to reply to the proposals, or to
consider them, if he were at all desirous of doing so, I again addressed him, and in a
letter of 18th May (see No. 49, p. 162) endeavoured to point out that he could not ignore
the communication of 8th May, and reiterated the request on behalf of the Government of
Canada that the proposals should receive the consideration to which they were entitled.
In reply to this I received the letter (No. 50, p. 162), and upon the 19th May, under
directions from Hon. Mr. Mackenzie, 1 left Victoria upon my return journey without any
further official communication with the Local Ministry.
I may be permitted to mention that his Honour the Lieutenant-Governor, throughout the whole of my visit, was always most obliging in giving me upon all public
questions very full information, which his large experience in the Province rendered of
the highest value. He also manifested an earnest wish to see a definite and amicable
settlement of the railway question speedily arrived at between the General and Provincial Governments. 44 Vic. Railway Papers. 171
In accordance with the direction contained in the last paragraph of Hon. Mr.
Mackenzie's letter to me of the 19th February, I took every opportunity during my stay
in British Columbia of noting various matters connected with Dominion business and
interests. In several despatches to Heads of Departments, as well as in verbal communications with Ministers, T have already called attention to some important subjects of
that kind, and I propose to have the honour of communicating in separate reports or
despatches upon several other points of interest and importance connected with
Dominion affairs in the Pacific Province.
I have, &c, (Signed)       J. D. Edgar.
No. 65.
The Lieutenant-Governor to the Secretary of State for Canada.
(No. 40.) Government House,
llth, June, 1874.
Sir,—I have the honour to enclose for the consideration of His Excellency the
Governor-General a Minute of the Executive Council of this Province, representing that
British Columbia is suffering great injury from the failure by Canada to carry out the
obligations of the llth Clause of the Terms of Union, and that it is advisable, in the
interests of this Province, that the case be laid before the Imperial Government, by
means of a Memorial to be presented to the Secretary of State for the Colonies by the
Attorney-General of British Columbia, as Special Agent and Delegate of this Government. In accordance with the advice of my Ministers, I have appointed the Honourable
George Anthony Walkem, Attorney-General of this Province, to be such Special Agent
and Delegate; and at their request I beg you to inform His Excellency the Governor-
General that Mr Walkem has been duly appointed as such Special Agent and Delegate,
and to move His Excellency to acquaint the Eight Honourable Her Majesty's Principal
Secretary of State for the Colonies that Mr. Walkem has been authorized and instructed
to place in his hands the Memorial of this Government appealing to Her Majesty, and
to support the prayer thereof.
Mr. Walkem will proceed to Ottawa by the next mail, and will take with him a
duplicate of this Despatch.
I have, &c,
(Signed) Joseph W. Trutch.
No. 66.
Report approved by the Lieutenant-Governor on the llth June, 1874.
The Committee of Council have had under consideration the Memorandum of the
Honourable Provincial Secretary, dated llth June, 1874, representing that the essential
clause of the Terms of Union provided that the Government of the Dominion should
secure " the commencement simultaneously of the construction of a Eailway from the
" Pacific towards the Eocky Mountains, and from such point as may be selected East of
" the Eocky Mountains towards the Pacific, to connect the seaboard of British Columbia
" with the Eailway system of Canada; and, further, to secure the completion of such
" Eailway within ten years from the date of Union." •
That the set time for commencement of the work passed nearly a year ago, and that
no commencement of construction has yet been made.
That the Secretary of State of the Dominion has informed this Government that
no commencement can be made this year, in consequence of the surveys being incomplete.
That, by order of the Privy Council of Canada, it was decided last year that a
portion of the line be located between the harbour of Esquimalt and Seymour Narrows;
and that, in consequence of that order, and at the request of the Dominion Government,
the lands for a width of twenty miles along that line have been reserved by the Provincial Government.
That the Premier of the Dominion Government has, in an informal manner, but
nevertheless in a manner acknowledged to be at the instance of the Dominion Government, offered immediately to undertake the commencement of the work, provided that
British Columbia would agree to certain terms of relaxation. 172 Railway Papers. 1880
That the relaxation proposed was, that British Columbia should agree to cancel the
Eailway Clause of the Terms, as regards the mainland part of the Province, and accept
in lieu thereof a promise to build a waggon road after the line of railway had been permanently located, on the completion of which, at an undefined time, railway construction
would be commenced.
That such proposal has, however, been withdrawn.
That, according to the preamble of the " Canadian Pacific Eailway Act, 1874," the
railway is to be constructed as rapidly as the same can be accomplished without raising
the rate of taxation.
That the bearing of the Dominion Government towards British Columbia is equivalent to the repudiation of the liability of the Dominion to fulfil as far as possible the
engagement made respecting the construction of the Pacific Eailway.
That, by the course of action taken by the Dominion Government, British Columbia
has sustained and is suffering great injury and loss.
That with a view to obtain redress, it is advisable that the case of British Columbia
be submitted for the consideration of the Imperial Government.
The Committee concur with the recommendation, and advise that your Excellency
do charge the Honourable the Attorney-General and the Provincial Secretary with the
preparation of a memorial and remonstrance on behalf of the Province regarding the
non-fulfilment of the Terms of Union by the Dominion Government, to be submitted to
Her Most Excellent Majesty the Queen in Council.
The Committee further advise, should this Eeport be approved, that the Honourable
George Anthony Walkem be appointed a Special Agent and Delegate, instructed to
proceed at once to London, for the purpose of placing the Memorial in the hands of the
Eight Honourable the Secretary of State for the Colonies, and of supporting the prayer
thereof; and request Your Excellency to inform the Governor-General of Mr. Walkem's
appointment, and ask that he be provided with a suitable introduction to Her Majesty's
Principal Secretary of State for the Colonies.
(Certified) W. J. Armstrong,
Clerk, Executive Council.
No. 67.
Report of the Executive Council, approved by the Lieutenant-Governor on the llth June, 1874.
On a Memorandum dated llth June, 1874, from the Honourable the Provincial Secretary, reporting with reference to the breach of the Terms of Union by the Dominion
Government, and the Appeal to the Imperial Government thereon arising, that it is
advisable that a telegram be sent to the Imperial Government, informing them that
British Columbia is about to appeal against the breach, by the Dominion Government,
of the Terms of Union, and that a Delegate from this Government is about to leave for
London, to lay such Appeal before the Imperial Government.
The Committee concur, and advise that Your Excellency do telegraph to that effect
to the Eight Honourable the Secretary of State for the Colonies, and also through the
proper channel to His Excellency the Governor-General, for the information of the
Dominion Government.
(Certified)       W. J. Armstrong,
Clerk of the Executive Council.
No. 68.
The Under Secretary of State for Canada to the Lieutenant-Governor.
Department Secretary of State,
llth July, 1874.
Sir,—I have the honour to acknowledge the receipt of your despatch, No. 40, of the
llth ult., concerning a copy of a Minute of your Executive Council, in reference to the
alleged failure of the Dominion Government to carry out the obligations of the llth
clause of the terms of Union, and recommending that the case be laid before the Imperial 44 Vic. Railway Papers. 173
Government by means of a memorial, to be presented to Secretary of State for the
Colonies, by the Attorney-General of British Columbia as special agent and delegate of
the Government of that Province.
I am, &c,
(Signed) Edouard J. Langevin,
Under Secretary of State.
No. 69.
Lieutenant-Governor Trutch to the Earl of Carnarvon.
Government House, Victoria,
llth June, 1874.
My Lord,—I have the honour to state that I have, at the instance of my responsible
advisers, addressed to your Lordship a telegraphic despatch to the following effect:—
(' Colonial Secretary, London, llth June,—
" sent
" Ministry desire to notify you that Delegate proceeds immediately London, pre-
it appeal British Columbia against breach by Canada Eailway Terms Union."
I have, &c,
(Signed) Joseph W. Trutch.
No. 70.
The Lieutenant-Governor to the Secretary of State, Ottawa, Canada.
Victoria, B. C,
June llth, 1874.
My Ministers desire me to acquaint Dominion Government that they have resolved
to appeal to Imperial Government upon Railway question, and that I have to-day, upon
their advice, addressed the Secretary of State for Colonies following Telegram:—
" Colonial Secretary, London.—
"Ministry desire notify you that Delegate proceeds immediately London, present
" Appeal British Columbia against breach by Canada Railway Terms Union."
I have, &c,
("Signed) Joseph W. Trutch.
No. 71.
The Lieutenant-Governor to the Secretary of State for Canada.
Government House, Victoria,
llth June, 1874.
Sir,— I have the honour to enclose with reference to my telgraphic despatch to you
of this day's date, the Minute of my Executive Council, in accordance with the advice
contained in which my said despatch, and that to the Bight Honourable the Secretary of
State for the Colonies, a transcript of which was therein reported for the information of
His Excellency the Governor-General, were addressed.
I have, &c,
(Signed)       Joseph W. Trutch. 174 Railway Papers. 1880
No. 72.
The Lieutenant- Governor to the Secretary of State for Canada.
Government House, Victoria,
] 1th June, 1874.
Sir,—I have the honour to enclose, for the information of His Excellency the
Governor-General a copy of a despatch this day addressed by me to the Right Honourable the Secretary of State for the Colonies, with reference to my telegram to His
Lordship of this day's date, a transcript of which has already been telegraphed to you.
I have, &c,
(Signed) Joseph W. Trutch.
No. 73.
Report of the Executive Council, approved by the Lieutenant-Governor on the 15th June, 1874.
On a memorandum dated 15th day of June, 1874, from the Honourable the
Provincial Secretary recommending that the Memorial hereunto appended of the case of
British Columbia be adopted, and presented to the Right Honourable the Secretary of
State for the Colonies by the Honourable Mr. Walkem on behalf of the Committee of
Council of British Columbia.
The Committee advise that the recommendation be approved.
(Certified)       W. J. Armstrong,
Clerk, Executive Council.
No. 74.
Copy of Petition, by Provincial Government, to Her Majesty the Queen, complaining
of non-fulfilment of Terms of Union by the Dominion.
To the Queen's Most Excellent Majesty.
Most Gracious Sovereign :
We, Your Majesty's most dutiful and loyal subjects, the Committee of the Executive
Council of the Province of British Columbia, in Council assembled, humbly approach
Your Majesty, for the purpose of representing :—
1. That, prior to the 20th day of July, 1871, British Columbia was a Crown Colony,
having a Legislative Council, partly nominated by the Crown, and partly chosen by the
people :
2. That, by Section 146 of the " British North America Act, 1867," provision was
made for the Union of British Columbia with the Dominion of Canada:
3. That, during the years 1868 and 1869, the subject of Union was much discussed
in British Columbia, both in the Legislature and throughout the Colony ; and a considerable conflict of opinion existed in relation to the question :
4. That, in obedience to Your Majesty's commands, contained in a Despatch (see
No. 1, page 139) of the 14th August, 1869, from Your Majesty's Principal Secretary of
State for the Colonies to the Governor of British Columbia, the Governor in Council
framed the "Proposed Terms of Confederation" {see No. 2, page 140), and in the
month of February, 1870, submitted them to the Legislative Council, by whom they
were approved:
5. That these Terms had not been directly submitted to the people for their sanction;
and the Council that approved of them was, at the time, composed of Thirteen Members
appointed by the Crown, and Nino chosen by the people:
6. That the "Proposed Terms" were presented for consideration, through Delegates, to the Honourable the Privy Council of Canada, as the basis of an agreement for
Union: 44 Vic
Railway Papers.
175
7. That, after full discussion between the Delegates of British Columbia and the
Committee of the Privy Council, it was mutually agreed that the said Terms should be
materially modified; and other Terms, hereinafter called the "Accepted Terms" (see
No. 3, p. 140), wore substituted for those proposed; and such "Accepted Terms," commonly known as the "Terms of Union," now form the basis of Union between British
Columbia and the Dominion:
8. That the main difference between the " Proposed Terms" and the "Accepted
Terms," consists in the substitution and insertion of Article 11 in the "Accepted Terms"
for Article 8 of the " Proposed Terms," which Articles are herewith submitted:—
ARTICLE 8
OF
"PROPOSED  TERMS."
"8. Inasmuch as no real Union can subsist between this Colony and Canada without the speedy
establishment of communication across the Rocky
Mountains by Coach Road and Railway, the Dominion shall, within three ysars from the date of Union,
construct and open for traffic such Coach Road from
some point on the line of the Main Trunk Road of
this Colony to Fort Garry, of similar character to
the said Main Trunk Road; and shall further engage
to use all means in her power to complete such Railway communication at the earliest practicable date;
and that surveys to determine the proper line of such
Railway shall be at once commenced; and that a sum
of not less than One Million Dollars shall be expended in every year, from and after three years
from the date of Union, in actually constructing the
initial sections of such Railway from the seaboard of
British Columbia to connect with the Railway system of Canada."
ARTICLE 11
OP
'ACCEPTED   TERMS.
" 11. The Government of the Dominion undertake
to secure the commencement simultaneously, within
two years from the date of Union, of the construction
of a railway from the Pacific towards the Rocky
Mountains, and from such point as may be selected,
east of the Rocky Mountains towards the Pacific, to
connect the seaboard of British Columbia with the
railway system of Canada; and further, to secure
the completion of such railway within ten years from
the date of the Union.
" And the Government of British Columbia agree
to convey to the Dominion Government, in trust, to
be appropriated in such manner as the Dominion
Government may deem advisable in furtherance of
the construction of the said Railway, a similar extent of public lands along the line of railway
throughout its entire length in British Columbia,
not to exceed, however, twenty (20) miles on each
side of said line, as may be appropriated for the
same purpose by the Dominion Government from the
public lauds in the Northwest Territories and the
Province of Manitoba. Provided, that the quantity
of land which may be held under pre-emption right
or by Crown grant within the limits of the tracts of
land in British Columbia to be so conveyed to the
Dominion Government shall be made good to the
Dominion from contiguous public lands; and provided further, that until the commencement, within
two years, as aforesaid, from the date of the Union,
of the construction of the said railway, the Government of British Columbia shall not sell or alienate
any further portions of the public lands of British
Columbia in any other way than under right of preemption, requiring actual residence of the pre-
emptor on the land claimed by him. In consideration of the land to be so conveyed in aid of the
construction of the said Railway, the Dominion
Government agree to pay to British Columbia, from
the date, of the Union, the sum of 100,000 dollars
per annum, in half-yearly payments in advance."
9. That this substitution, affording assurance of speedy Railway communication with
the Eastern Provinces, was made to secure the acceptance of Confederation by the
people of British Columbia :
10. That it having been decided that the people of British Columbia should be
directly consulted before the "Accepted Terms" became law, Your Majesty, in pursuance
of the provisions of the " British Columbia Government Act, 1870," was graciously
pleased, by an Order in Council of the 9th day of August, 1870," to so reconstitute the
Legislative Council as to allow the Electoral Districts throughout the country to return
a majority of Members thereto:
11. 'That, under the new Constitution of the Council, Writs were issued for the
Election of Members to servo therein, and the said "Accepted Terms" were duly submitted to the people for their consideration; and at the subsequent Elections held to decide the question of Union, the provisions of Article 11 of the Terms of Union formed
the main inducement to British Columbia to agree to enter into Confederation; and
Members were returned to support the adoption thereof:
12. That such "Accepted Terms" were, on the 23rd day of January, 1871, unanimously agreed to by the Legislative Council; and an humble Address to Your Majesty
was at the same time passed, praying that Your Majesty in Council would be graciously
pleased "to admit British Columbia into the Union or Dominion of Canada, on the basis
" of the Terms and conditions offered to this Colony by the Government of the Dominion
" of Canada," which Terms and conditions are those herein referred to as the " Accepted
Terms:"
13. That similar Addresses to Your Majesty on the same subject were passed by the
Parliament of Canada under the provisions of the 140th Section of the "British North
America Act, 1867:"
14. That on the 16th day of May, 1871, Your Majesty, in answer to the said Addresses, was graciously pleased to order and declare (see No. 4, page 143) that the Union
between British Columbia and the Dominion should take effect on the 20th day of July,
1871—and British Columbia accordingly, became on that day, one of the Provinces of
the Dominion of Canada, upon the basis of the " Accepted Terms," or Treaty of Union:
15. That by Article 11 the Dominion undertook "to secure the commencement simul-
"tancously, within two years from the date of Union, of the construction of a Railway
"from the Pacific towards the Rocky Mountains, and from such point as may be selected
" east of the Rocky Mountains towards the Pacific, to connect the Seaboard of British
" Columbia with the Railway system of Canada; and further to secure the completion of
" such Railway within ten years from the date of the Union," And the Province in consideration thereof, and " in furtherance of the construction of said Railway," agreed first,—to
convey to the Dominion a belt of Public land not exceeding Twenty Miles in width on each side
of the Railway in British Columbia; and secondly—to withdraw all its public lands from sale
or alienation, except under stringent pre-emption laws, for a period of two years ending on the
20th day of July, 1873:
16. That accordingly, immediately upon Union, all lands of the Province were
withdrawn from sale or alienation.
17. That, the Dominion Government informed the Provincial Government, by Despatch dated the 10th June, 1873, and by an enclosed Order of the Privy Council, (see
Nos. 5 and 6, p. 144) based " on a memorandum of the 29th May, 1873, from the Chief
" Engineer of the Canadian Pacific Railway," that " Esquimalt, in Vancouver Island,"
had been "fixed as the Terminus of the Canadian Pacific Railway," and that it had been
decided that "a line of Railway be located between the Harbour of Ksquimalt and
"Seymour Narrows, on the said Island;" and they requested the Provincial Government
to convey to the Dominion Government " in trust, according to the llth paragraph of
"the Terms of Agreement of Union, a strip of Land Twenty Miles in width, along the
"Eastern Coast of Vancouver Island, between Seymour Narrows and the Harbour of
" Esquimalt."
18. That, on the 25th of July, 1873, the Minute of the Executive Council of British
Columbia (see No. 12, p. 146) relating to the conveyance of the land referred to, was
passed and forwarded to Ottawa (see No. 7, p. 145) on the following day; and the
receipt thereof was acknowledged on the 26th August, 1873, (see No. 14, page 148).
19. That, by that Minute, the Provincial Government declined to convey the land
referred to, until Railway construction should be commenced as provided by Article 11
of the Terms of Union; but agreed to reserve the said belt (which is coloured red on
the accompanying chart of Vancouver Island); being a tract of most valuable land—about
3,200 square miles in extent, abounding in vast mineral wealth and easy of access from
the sea,—and this land was accordingly reserved by Order in Council (see Nos. 8 and 9,
p. 145) on the 30th June, 1873, and by Public Notice on the day following; and has
been ever since reserved :
20. That, on the llth of September, 1873, the Dominion Government intimated their
concurrence in the course thus pursued by the Provincial Government, and "submitted
(see Nos. 15 and 16, p. 149) "that so long as the land which is referred to, is not
"alienated from the Crown, but held under Reservation, * * * the object of
"the Government of the Dominion will be attained, that object being, simply, that when
" the Railway shall come to be constructed, the land in question shall be at the  dispo- 44 Vic. Railway Papers. 177
"sition  of the Government of the Dominion, for the purpose laid down in the llth
" Section of the Terms of Union with British Columbia:"
21. That, on the 22nd September, 1873, the Provincial Government respectfully
urged (see Nos. 17 and 18, pp. 149, 150) the Dominion Government to define, by survey,
the belt of land referred to, as its reservation was seriously retarding the settlement of
Vancouver Island; but to this request no other reply than a mere acknowledgment (see
No. 19, p. 150)  was sent:
22. That, on the 25th of July, 187K, the Provincial Government, by Order in Council,
(see No. 11, p. 146) strongly protested against the breach of the llth Article, no attempt
at construction having been made up to that date; and such protest was forwarded, in
Despatch, to the Honourable the Secretary of State, at Ottawa, on the following day
(see No. 10, p. 146):
23. That, in the month of August, 1873, the Dominion Government simply acknowledged (see No. 13, p. 148)  the receipt of the protest of the 25th July, 1873: —
24. That, on the 24th November following, the Government of the Province again
drew the attention of the Dominion, by Despatch and Minute of the Executive Council,
(see Nos. 20 and 21, pp. 150, 151) to the protests which had been forwarded and not
replied to; and the Dominion Government was requested to state its railway policy for
the information of the Provincial Legislature. To this the indefinite reply (see No. 23,
p. 151)   and no other, was received:
25. That, on the 9th of February, 1874, the Legislative Assembly of British Columbia unanimously protested against the breach of Article 11 of the Terms of Union, and
respectfully urged upon Canada "the absolute necessity of commencing the actual con-
" struction of the Railway from the Seaboard of British Columbia early in the present
" year," (see No. 29, p. 153) and this protest was, on the recommendation of the Executive
Council, forwarded to Ottawa in a Despatch of 25th February, 1874, (see No. 30, p. 154)
and the receipt thereof was duly acknowledged, but no response thereto has been
received (see No. 33, p. 155):
26. That, in the month of February, 1874, the Honourable Mr. Mackenzie, the
Premier of Canada, addressed the letter (see No. 35, p. 157) to the Honourable Mr.
Walkem, the Attorney-General of British Columbia, introducing Mr. J. D. Edgar, as a
gentleman who would "confer" with and ascertain the views of the Members of the
Government of British Columbia respecting Railway policy; and this letter was followed
by the Correspondence, Official Telegrams, Despatches, and Orders in Council set forth
in (see Nos. 35, 40, 41, 42, 45, 47, 48, 49, 50, 51, 53, 54, 55, 56, 57, 59, pp. 157 to 165):
27. That the character, and the substance of the Correspondence, Telegrams, and
Despatches may be briefly stated as follows:—
On the 8th day of May, 1874, Mr. Edgar addressed a letter to Mr. Walkem, (see No.
45, p. 159) setting forth the views of Mr. Mackenzie's Administration upon the Railway
Clause (Article 11) of the Terms of Union, and making certain suggestions for a change
thereof, with a request that they should be considered by the Provincial Government.
As these suggestions gravely affected the interests, both of the Dominion and the
Province, and as Mr. Edgar was not accredited by the Dominion Government to make
such proposals, it was necessary to ascertain how far they would be binding upon that
Government. Accordingly, Telegrams were sent, one (see No. 51, p. 163) by the Provincial Government to the Secretary of State, and the other (see No. 54, p. 163) by Mr.
Walkem to Mr. Mackenzie. The only reply was a telegram from Mr. Mackenzie (see
No. 53, p. 163), which stated that his letter to Mr. Walkem sufficiently indicated Mr.
Edgar's mission; and that he had recalled Mr. Edgar, and was awaiting his return and
reports. The inquiry, as to whether Mr. Edgar had power to bind the Dominion
Government, remained wholly unanswered.
28. That, Mr. Edgar's letter to Mr. Walkem is made important, by a telegram of
the 8th June, 1874, from the Premier of Canada (see No. 56, p. 164) which states that the
proposals in Mr Edgar's letter had been made "on behalf of the Dominion Government,"
and that they were now withdrawn. To this Telegram, the Provincial Government in
substance replied—that it was the first direct communication they had received that
those proposals were authoritative, and that it seemed remarkable that by the same
communication they should be withdrawn (ses No. 59, p. 165):
29. That, in that letter, the Dominion Government proposed " to commence the
" consti'uction from Esquimalt to Nanaimo immediately, and push that portion of the 178 Railway Papers. 1880
" Railway on to completion with the utmost vigour, and in the shortest practicable time,"
in consideration of British Columbia consenting to relinquish the definite term fixed in
the Treaty of Union for the completion of the Railway; and when " the Surveys and a
"proposed Waggon Road on the Mainland can be completed," to make "an annual
" minimum expenditure, upon works of construction within the Province, of at least One
" million five hundred thousand dollars;" and it further states, that, " to a country like
" British Columbia, it is conceded, however, to be an important point, that not only the
"prompt and vigorous commencement, but also the vigorous prosecution of the work of
" construction, within the limits of the Province should be guaranteed ":
30. That the Dominion Government have no powers to expend public money in
railway construction in British Columbia, except under authority of the " Canadian
Pacific Railroad Act, 1874," which provides, inter alia, for the construction of a section,
viz.: the fourth section of the said Railway, to extend from the Western Terminus of
the third section, to some point in British Columbia, on the Pacific Ocean:
31. That unless Esquimalt, on Vancouver Island, be the Western Terminal point in
British Columbia, on the Pacific Ocean, of the fourth section of the Canadian Pacific
Railroad, the Dominion Government cannot expend any public money in the construction of a railway from such point, nor can they claim the reservation of the public lands
of the East Coast of Vancouver Island, "for the purposes laid down in the llth Section
of the Terms of Union ":
32. That the following is, as far as can be ascertained, an approximate statement of
the exploratory surveys made:—
In 1871 and 1872, there were seven or eight parties engaged, and work was prosecuted with some vigour on the Mainland of British Columbia.
In 1873 two parties left Victoria, as late as the 1st of July, for the interior, and
returned in November, that is to say, having, exclusive of travelling time, been engaged
in actual work for about three months only. To these parties may be added a third,
which had wintered on the Eastern boundaries of the Province.
In 1874 three parties only, exclusive of an explorer sent up the West Coast, started
from Victoria for the interior about the 19th May, when the Spring was advanced.
33. That no surveys have been made between Esquimalt aDd Seymour Narrows, or
in any other part of Vancouver Island:
34. That, on the 4th of May, 1874, the Premier of the Dominion Government declared, in his place in the Dominion House of Commons, that " there was no reason to
"believe" that it was possible to commence the construction of the Railway in the
Province this year (see No. 42, p. 159):
35. That, on the 8th May, 1874, the Dominion Government made the offer of immediate construction on the Island,  as contained in   ( No. 45, p. 159)   before  referred to:
36.. That, on the 23rd of May, 1874, the Premier of Canada admitted, in his place in
the Dominion House of Commons, that " they were quite aware that the Terms of the
"Agreement with British Columbia had been violated."    (See No. 60, p. 165):
37. That the preamble of the "Canadian Pacific Railway Act, 1874," shows that
provision for the construction of this work is intended to be made by that Act only as
far as can be effected without " further raising the rate of taxation," thus purporting to
modify the obligation of Canada, under the Terms of Union, without the consent of
British Columbia:
Your Petitioners, therefore, humbly submit—
That British Columbia has fulfilled all the conditions of her agreement under the
Terms of Union:
That the Dominion has not completed the necessary Railway Explorations and
Surveys; nor, since 1872, has any effort, at all adequate to the undertaking, been made
up to the present time:
That notwithstanding the fact that on the 7th day of June, 1873, by Order of the
Privy Council, " Esquimalt " was "fixed" as the point of commencement on the Pacific,
and it was decided that a line should " be located between that harbour and Seymour
Narrows;" and notwithstanding, further, that a valuable belt of land, along the line
indicated, has ever since been reserved by British Columbia, at the instance of the
Dominion, and for the purposes, ostensibly, of immediate construction, the Dominion
Government have failed and neglected to commence construction up to the present time:
That although the Government of the Dominion admit that the agreement with 44 Vic. Railway Papers. 179
British Columbia has been violated, and acknowledge that immediate construction might
be commenced at Esquimalt, and active work vigorously prosecuted upon " that portion
of Railway" between Esquimalt and Nanaimo, yet they virtually refuse to commence
such construction unless British Columbia consents to materially change the Railway
Clause of the Treaty:
That, in consequence of the course pursued by the Dominion, British Columbia i s
suffering great Joss; her trade has been damaged and unsettled; her general prosperity
has been seriously affected; her people have become discontented; a feeling of depression
has taken the place of the confident anticipations of commercial and political advantages
to be derived from the speedy construction of a great Railway, uniting the Atlantic and
Pacific shores of your Majesty's Dominion on the Continent of North America.
Your Petitioners, therefore, humbly approach your Majesty, and pray that
your Majesty may be graciously pleased to take this, our Petition, into your
Majesty's favourable consideration, in order that justice may be done to
British Columbia.
And your Petitioners, as in duty bound, will ever pray, &c., &c.
No. 75.
San Francisco,
18th June, 1874.
Lieutenant-Governor Trutch, Province of British Columbia, Victoria.
Dear Sir,—We have just received the following cable message from London :
" London, 18th June.
" Private and confidential. Advise Governor Trutch, Vancouver, by letter, Sproat
"says Carnarvon offers to arbitrate between Dominion and Province, both parties con-
"eurring. Sproat strongly recommends this;" which message you will no doubt
understand. We are, &c,
(Signed)       Faulkner, Bell, & Co.
No.  76.
British Columbia,
Lieutenant-Governor's Office,
June 26th, 1874.
Gentlemen,—I am directed by the Lieutenant-Governor to acknowledge the receipt
of your letter to him, of the 18th instant, and to thank you for the information it conveys, which is fully understood by His Honour.
I have, &c,
(Signed)       Arthur G. J. Pinder,
Private Secretary.
Messrs. Faulkner, Bell & Co., San Francisco, California.
77.
Mr. Walkem to Mr. Mackenzie.
Ottawa, 4th July, 1874.
Sir,—I have been informed that you intend to leave for Quebec to-day. If this be
the case, may I be excused for pressing upon your attention my present very unsatisfactory position in having received no definite information respecting my credentials to
the Right Honourable the Principal Secretary of State.
It is considered of great importance by the Government of British Columbia that I
should use all possible dispatch in executing my mission to England.
May I therefore request you to inform me when I shall be put in possession of the
necessary authority to enable me to accomplish my task?
I have, &c,
(Signed)       Geo. A. Walkem. 180 Railway Papers. 1880
No. 78.
Mr. Buckingham to Mr. Walkem.
Ottawa, July 4th, 1874.
Sir,—In reply to your letter to Mr. Mackenzie, of this morning's date, enquiring
when you can"procure your credentials as Delegate of British Columbia to the Imperial
Government, I have the honour, by request of Mr. Mackenzie, to say that the necessary
Minute of Council has already been forwarded to His Excellency the Governor-General
for His Excellency's signature, and that it will be delivered to you immediately the
special messenger returns with it to the City.
I have, &c,
(Signed)       Wm. Buckingham.
No. 79.
Mr. Walkem to the Secretary of State for Canada.
Ottawa, July llth 1874.
Sir,—As Mr. Himsworth has arrived from Tadousac, I have the honour to request
you to furnish me to-day, if possible, with the documentary authority necessary to
accredit me as Delegate from the Government of British Columbia to Her Majesty's
Government. The object of my mission has already been stated in a despatch of last
June, from the Government of British Columbia to the Dominion Government.
It is of importance that I should leave for England, and bring my work to a close
with all convenient speed, hence my request that you will provide me with my letter
to-day.
I have, &c,
(Signed)       Geo. A. Walkem.
No. 80.
The Secretary of State to Mr.  Walkem.
Department Secretary of State,
Ottawa, llth July, 1874.
Str,—i have the honour to transmit to you [a certified copy of an Order of His
Excellency the Governor-General in Council, on a despatch of His Excellency the
Lieutenant-Governor of British Columbia, under date the llth ultimo, relative to the
alleged failure by the Government of the Dominion to carry out the obligations of the
llth Clause of the Terms of Union. In reference to the request of the Lieutenant-
Governor, that the Right Honourable the Secretary of State be informed that you have
been authorized by the Government of British Columbia, as their Special Agent and
Delegate, to submit their memorial appealing to Her Majesty, and to support the prayer
thereof, I have to state that a despatch to that effect will be addressed by the Governor-
General to the Earl of Carnarvon.
I have, &c,
(Signed) R. W. Scott.
No. 81.
Report of the Privy Council, approved by the Governor-General in Council on the
8th July, 1874.
On a Despatch, dated llth June, 1874, from the Lieutenant-Governor of British
Columbia, enclosing a Minute of the Executive Council of that Province, representing
that British Columbia is suffering great injury from the failure by Canada to carry out
the obligations of the Eleventh Clause of the Terms of Union ; and that it is advisable,
in the interests of that Province, that the case be laid before the Imperial Government,
by means of a Memorial to be presented to the Secretary of State for the Colonies by
the Attorney-General of British Columbia, as Special Agent and Delegate of that
Government. 44 Vic. Railway Papers. 181
The Lieutenant-Governor states that, in accordance with the advice of his Ministers,
he has appointed the Honourable George Anthony Walkem, Attorney-General of that
Province, to be such Special Agent and Delegate, and at their request he begs that
Your Excellency be informed that Mr. Walkem has been duly appointed as such Special
Agent and Delegate, and that Your Excellency be moved to acquaint the Right
Honourable Her Majesty's Principal Secretary of State for the Colonies, that Mr.
Walkem has been authorized and instructed to place in his hands the Memorial of that
Government appealing to Her Majesty, and to support the prayer thereof.
On the recommendation of the Honourable the Secretary of State, the Committee
advise that the above request be acceded to.
(Certified)       W. A. Himsworth,
Clerk, Privy Council.
No. 82.
The Under Secretary of State for Canada to the Lieutenant-Governor.
Department of Secretary of State,
Ottawa, 13th July, 1874.
Sir,—With reference to my letter of the llth instant, I have the honour to transmit
to you, for the information of your Government, a copy of an Order of His Excellency
the Governor-General in Council, and of a letter addressed to Mr. Attorney-General
Walkem on the subject of the alleged failure of the Dominion Government to carry out
the obligations of the llth Clause of the Terms of Union.
I am, &c,
(Signed)       Edouard J. Langevin,
Under Secretary of State.
No. 83.
The Lieutenant-Governor to the Secretary of State for Canada.
Government House,
Victoria, 28th July, 1874.
Sir,—I have the honour to state that I have received and laid before my Executive
Council your despatch of the 13th inst., transmitting a copy of an Order of His Excellency the Governor-General in Council, and of a letter to Mr. Attorney-General Walkem
on the subject of Mr, Walkem's mission to England in support of the Memorial of this
Government to Her Majesty, with reference to the Railway Article of the Terms of
Union of this Province with Canada.
I have, &c,
(Signed)      Joseph W. Trutch.
84.
Mr. Walkem to Mr: Mackenzie.
Ottawa, July 13th, 1874.
Sir,—I have the honour to forward to you, for your perusal and for the information
of your Government, two copies of the Protest of the British Columbia Government
(against the breach or infraction of the " Terms of Union" with Canada by the Dominion
Government), which I have been authorised to present in person to Her Majesty's Government. Two copies of the Charts referred to in the Protest are also herewith forwarded.
May I request you to be good enough to acknowledge their receipt.
I have, &c,
(Signed)       G. A. Walkem,
Attorney-General B. G. 182 Railway Papers. 1880
No. 85.
The Under Secretary of State to Mr. Walkem.
Department Secretary of State,
Ottawa, 13th July, 1874. .
Sir,—I am directed to acknowledge the receipt of your letter of this date, addressed
to the Honourable Mr. Mackenzie, transmitting two copies of the Protest of the British
Columbia Government against the alleged breach or infraction of the Terms of Union
with Canada, by the Dominion Government, which you have been authorised to present
in person to Her Majesty's Government; and also forwarding two copies of the Charts
referred to in the Protest.
I have, &c,
(Signed) E. J. Langevin.
No. 86.
The Governor-General to the Lieutenant-Governor of British Columbia.
Received 27th July, 1874.
July 3rd, 1874.
Sir,—In obedience to the instructions of the Secretary of State, I have the honour
to transmit for your information the enclosed Despatch.
I have, &c,
(Signed)       Dufferin.
The Earl of Carnarvon to the Governor-General.
Downing Street, 18th June, 1874.
My Lord,—The intimation, which I have received by telegraph, of the departure
from British Columbia of the President of the Council and Attorney-General of that
Province, sent to this country for the purpose of appealing against the course proposed
by your Government, and sanctioned by the Dominion Parliament, in regard to the
Pacific Railway, together with the Reports of the Proceedings in that Parliament, and
other informal communications, have led me to apprehend that the difference of opinion
which has unfortunately occurred may not only prove difficult to adjust, but may not
impossibly, if it remains long unsettled, give rise to feelings of dissatisfaction and to disagreements, the existence of which within the Dominion would be a matter of serious
regret.
2. It is not my wish, nor is it a part of my ordinary duty, to interfere in these
questions. They appear to be such as it should be within the province and the competency of the Dominion Government and Legislature to bring to a satisfactory solution;
and you will readily understand that Her Majesty's Government would be very reluctant
to take any action which might be construed as expressing a doubt of the Dominion
Government and Parliament to give the fullest consideration to such representations as
may be made on the part of British Columbia, and to deal in the fairest and most liberal
spirit with what may be established as being the just claims of that Province.
3. At the same time I am strongly impressed with the importance of neglecting no
means that can properly be adopted for effecting the speedy and amicable settlement of
a question which cannot, without risk and obvious disadvantages to all parties, remain
the subject of prolonged, and it may be acrimonious, discussions; and it has occurred to
me that, as in the original terms and conditions of the admission of British Columbia
into the union, certain points (as for example the amount of land to be appropriated for
the Indians, and the pensions to be assigned to public officers deprived of employment)
were reserved for the decision of the Secretary of State; so in the present case it may
possibly be acceptable to both parties that I should tender my good offices in determining
the new points which have presented themselves for settlement. I accordingly addressed
a telegram to you yesterday to the effect that I greatly regretted that a difference
should exist between the Dominion and the Province in regard to the railway, and that
if both Governments should unite in desiring to refer to my arbitration all matters in 44 Vic Railway Papers. 183
controversy, binding themselves to accept such decision as I may think fair and just,
I would not decline to undertake this service.
4. The duty, which under a sense of the importance of interests concerned, I have
thus offered to discharge, is of course a responsible and difficult one, which I could not
assume unless by the desire of both parties, nor unless it should be fully agreed that
my decision, whatever it may be, shall be accepted without any question or demur. If
it is desired that I should act in this matter, it will be convenient for each party to
prepare a statement to be communicated to the other party, and, after a reasonable
interval, a counter statement, and that on these written documents I should, reserving
of course to myself the power of calling for any other information to guide me in arriving
at my conclusion, give my final decision.
5. I request you to transmit a copy of this despatch with the utmost possible speed
to the Lieutenant-Governor of British Columbia. I have communicated to Mr. Sproat,
the Agent for British Columbia, for transmission by telegraph to the Government of
that Province, the purport of the telegram which I addressed to you yesterday, in order
that my offer may come before both parties as soon as possible.
I have, &c.
(Signed)       Carnarvon,
No. 87.
Lieutenant-Governor Trutch to Governor-General.
Government House, Victoria,
29th July, 1874.
My Lord,—I have the honour to acknowledge the receipt, on the day before
yesterday, of Your Lordship's Despatch of the 3rd instant, transmitting, by direction of
the Right Honourable the Secretary of State for the Colonies, for the information of
this Government, a copy of a despatch from that Minister to Your Lordship proposing
himself as arbitrator in the matter under discussion, between the Governments of Canada
and this Province, in relation to the llth Article of the Terms of Union of British
Columbia with Canada.
I have submitted Your Lordship's despatch and that from Lord Carnarvon to Your
Lordship, therein transmitted, for the consideration and advice of my Executive Council.
I have, &c.,
(Signed)       Joseph W. Trutch.
No. 88.
The Lieutenant-Governor to the Secretary of State for Canada.
Government House, Victoria,
3rd August, 1874.
Sir,—I have the honour to transmit to you for the information of His Excellency
the Governor-General, a copy of a despatch addressed by me to Her Majesty's Principal
Secretary of State for the Colonies, expressing the acceptance by this Government of
the offer made by His Lordship in his despatch of 28th June last, to the Governor-
General, to arbitrate in the difference existing between the Government of Canada and
this Province, in relation to the Eailway Article of the Terms of Union, together with a
copy of the Minute of the Executive Council of British Columbia therewith enclosed,
expressing the opinions and advice of my responsible Ministers upon Lord Carnarvon's
proffered arbitration, and in accordance with which my said despatch to His Lordship,
and the telegraphic message therein referred to—and of which a copy is appended—as
well as this communication and the telegram to you of this day's date—a copy of which
is also attached hereto—are at the same time dispatched.
I have, &c,
(Signed) Joseph W. Trutch. 184 Railway Papers. 1880
No. 89.
Lieutenant-Governor Trutch to Earl Carnarvon.
Government House, Victoria,
3rd August, 1874.
My Lord,—I have the honour to state that, on the 28th ultimo, I received and laid
before my responsible advisers a copy of Your Lordship's despatch of June 18th, to
Governor-General the Earl of Dufferin, upon the pending difference between this Province and the Government of Canada, in relation to the Eailway Article of the Terms of
Union, which despatch was transmitted to me by Lord Dufferin, on the 3rd ultimo, in
accordance with Your Lordship's instructions.
I now enclose a Minute of the Executive Council of this Province on your said despatch, and upon the advice of my Ministers therein expressed, I beg to signify my
cordial acceptance, on behalf of the Government of British Columbia, of Your Lordship's
proffered arbitration, in accordance, in all respects, with the conditions laid down in your
said despatch, and to state that I have to-day dispatched a telegraphic message to you
to this effect, of which a copy is appended.
A copy of this despatch and enclosures therewith, will be sent by this mail to the
Secretary of State for Canada, for the information of His Excellency the Governor-
General of Canada.
I have, &c,
(Signed) Joseph W. Trutch.
No. 90.
The Lieutenant-Governor to the Secretary of State for the Colonies.
3rd August, 1874.
Upon advice of Responsible Ministers I acccept on behalf of British Columbia arbitration offered in your Despatch to Lord Dufferin, eighteenth June. Please acknowledge.
(Signed) Joseph W. Trutch.
No. 91.
The Secretary of State for the Colonies to Lieutenant Governor.
Your Telegram of August 3rd, received.
(Signed) Carnarvon.
No. 92.
The Lieutenant-Governor to the Secretary of State for Canada.
Victoria, B. O,
August 3rd, 1874.
My Ministers request me to state for the information of the Governor-General that
the following message has been this day telegraphed to Lord Carnarvon:—
" Colonial Secretary, London,—
" Upon  advice  of Responsible Ministers, I accept on behalf of British Columbia
arbitration offered in your despatch to Lord Dufferin, 18th June. Please acknowledge."
(Signed)       Joseph W. Trutch,
Lieutenant- Governor. 44 Vie. Railway Papers. 185
No. 93.
Report of the Executive Council approved by the Lieutenant-Governor on the 5th August, 1874.
The Committee of Council have had under consideration the proposal for a reference
to arbitration, of the question between the Province and the Dominion Government,
respecting the fulfilment of the Terms of Union, contained in the Despatch dated 18th
June, 1874, from the Right Honourable the Earl of Carnarvon, Her Majesty's Principal
Secretary of State for the Colonies, to His Excellency the Governor-General, a copy of
which has been transmitted for the information of Your Excellency and referred to
them for report:—
In the Despatch the Secretary of State observes that he is "strongly impressed with
" the importance of neglecting no means that can properly be adopted for effecting the
" speedy and amicable settlement of a question, which cannot without risk and obvious
" disadvantage to all parties, remain the subject of prolonged, and it may be acrimonious,
" discussion."
That it has occurred to him, "that as in the original terms and conditions of the
" admission of British Columbia into the Union, certain points were reserved for the
" decision of the Secretary of State, so in the present case it may possibly be acceptable
" to both parties that he should tender his good offices in determining the new points
" which had presented themselves for settlement. That, if both Governments should
" unite in desiring to refer to his arbitration all matters in controversy, binding them-
" selves to accept such decision as he may think fair and just, he would not decline to
" undertake this service."
That the duty, which under a sense of the importance of the interests concerned,
he has thus offered to discharge, is of course a responsible and difficult one, which he
could not assume unless by the desire of both parties, nor unless it should be fully
agreed that his decision, whatever it may be, shall be accepted without any question or
demur.
The Committee concur with the Secretary of State in regretting that a difference
exists between the Dominion and this Province in regard to the Railway, and that it is
most desirable for all parties, that all the questions in controversy should receive a
speedy and amicable settlement, and they are of opinion that a reference to arbitration
is the course of all others most likely to lead to so desirable a result.
They therefore advise the cordial acceptance by your Excellency of the arbitration
of the Secretary of State, in accordance with the conditions laid down in His Lordship's
Despatch of the 18th June, 1874; and should this report be approved, they recommend
that the acceptance by this Government on behalf of British Columbia of the arbitration
of the Right Honourable the Secretary of State for the Colonies, be immediately communicated by Your Excellency to that Minister by telegraph and by mail, that copies of
such communications be transmitted simultaneously to the Secretary of State for
Canada for the information of His Excellency the Governor-General.
(Certified)       W. J. Armstrong,
Clerk Executive Council.
No. 94.
The Under Secretary of State for Canada to the Lieutenant-Governor.
Department of the Secretary of State,
20th September, 1874.
Sir,—I have the honour to acknowledge the receipt of your despatch, No. 53, of
the 3rd instant, and its enclosures, transmitting, for the information of His Excellency
the Governor-General, a copy of a despatch addressed by you to the Right Honourable
the Secretary of State for the Colonies, expressing the acceptance by your Government
of his Lordship's offer, as conveyed in his despatch of the 18th of June last, to arbitrate
in the difference between the Government of British Columbia and the Dominion in
relation to the Railway Article of the Terms of Union.
Your despatch will be submitted for the consideration of the Government.
I have, &c,
(Signed) Edouard J. Langevin,
Under Secretary of State. 186 Railway Papers. ' 1880
No. 95.
The Earl of Carnarvon to the Governor-General.
Received in Ottawa, 18th January, 1874.
I regret extremely the difficulty between Dominion of Canada and British Columbia
as to Terms of Union in connection with Pacific Railway. Her Majesty's Government
are willing to give their good offices in adjusting the matter. If both parties unite in
referring all matters of difference to my arbitration, binding themselves to abide by such
award as I may deem just and fair, I will not refuse to undertake the duty.
No. 96.
The Governor-General to the Earl of Carnarvon.
(No. 182.) Quebec, 9th July, 1874.
My Lord,—I have the honour to acknowledge the receipt of your Lordship's
Despatch, No. 110, of the 18th June, in which you refer to a misunderstanding that has
occurred between the Dominion Government and that of British Columbia, and in which
you have made so considerately a suggestion in regard to the settlement of the dispute.
In accordance with your instructions, I have forwarded a copy of the despatch to
the Lieutenant-Governor of British Columbia, and I have also communicated it to my
Government.
There has not yet been time for them to acquaint me with their view in regard to
the extremely considerate and friendly suggestions your Lordship is good enough to
convey, but in connection with the subject matter to which the despatch under acknowledgment refers, I have the honour to enclose, for your Lordship's information a memorandum of a Committee of Council on the points in dispute between the Dominion
Government and the Government of British Columbia, together with a report by Mr.
Edgar of his mission to that Province, accompanied by copies of his correspondence
with Mr. Walkem, the Attorney-General of British Columbia.
I am, &c,
(Signed)       Dufferin.
No. 97.
Report of the Privy Council, approved by the Governor-General on the 8th July, 1874.
The Committee of Council, after due deliberation, consider that the proposed mission
of Mr. Walkem, Attorney-General of British Columbia, to England on behalf of the
Government of that Province, to complain to the Imperial Government of the non-fulfilment by the Dominion Government of the Terms of Union, and the telegraphic message
of the Right Honourable the Secretary of State for the Colonies with reference to the
said mission, in which he offers his good offices in arriving at some understanding
between British Columbia and the Dominion, render it desirable that a brief statement
should be submitted showing the position of the question, and the action taken by the
present Government of Canada in relation thereto.
The Order in Council under which British Columbia was admitted into the Union
provided in the llth Section that—
" The Government of the Dominion undertake to secure the commencement simul-
" taneously, within two years from the date of the Union, of the construction of a
" railway from the Pacific towards the Rocky Mountains, and from such point as may
" be selected east of the Rocky Mountains towards the Pacific, to connect the seaboard
" of British Columbia with the Railway system of Canada; and further to secure the
" completion of such railway within ten years from the date of the Union."
The passage of such a provision was very strongly opposed in Parliament, the Government of the day securing only a majority of ten in support of the measure. In order
to induce even this majority to sustain them, the following Resolution was proposed
and carried by the Government:— 44 Vic. Railway Papers. 187
" That the railway referred to in the Address to Her Majesty concerning the Union
"of British Columbia with Canada, adopted by this House on Saturday, the 1st of
" April, instant, should be constructed and worked by private enterprise, and not by
" the Dominion Government, and that the public aid to be given to secure that under-
" taking should consist of such liberal grants of land, and such subsidy in money or
" other aid, not increasing the present rate of taxation, as the Parliament of Canada shall
" hereafter determine."
The late Government were compelled by their followers in the House to adopt this
resolution regarding the taxation consequent on the obligation to build the railway as
the condition of obtaining their support. Even with this qualifying resolution promised,
the section respecting the railway was carried but by a majority of ten, the usual
majority being from fifty to seventy.
It is impossible to conceive how such terms could even have been proposed, as it
was quite clear to every person that they were incapable of fulfilment, especially as the
British Columbia Legislature never asked such extravagant terms. The clause of the
terms adopted by that body having reference to the railway was as follows:
" Inasmuch as no real union can subsist between this Colony and Canada without
" the speedy establishment of communication across the Rocky Mountains by coach
" road and railway, the Dominion shall within three years from the date of Union con-
" struct and open for traffic such coach road from some point on the line of the Main
" Trunk Road of this Colony to Fort Garry, of similar character to the said Main Trunk
" Road; and shall further engage to use all means in her power to complete such rail-
" way communication at the earliest practicable date, and that surveys to determine the
" proper line for such railway shall be at once commenced; and that a sum not less than
" one million dollars shall be expended in every year from and after three years from
" the date of Union in actually constructing the initial sections of such railway from the
" seaboard of British Columbia to connect with the railway system of Canada."
Mr. Trutch, the delegate of the British Columbia Government, present in Ottawa
during the discussions on the Terms of Union, expressed himself as follows at a public
meeting, in order to reassure those who were apprehensive of the conveyances of so
rash an assumption of such serious obligations:—
" When he came to Ottawa with his co-delegates last year, they entered into acom-
" putation with the Privy Council as to the cost and time it would take to build the
" line, and they came to the conclusion that it could be built on the terms proposed in
" ten years. If they had said twelve or eighteen years, that time would have been
" accepted with equal readiness, as all that was understood was that the line should be
" built as soon as possible. British Columbia had entered into a partnership with
" Canada, and they were united to construct certain public works, but he for one would
" protest against anything by which it should be understood that the Government were
" to borrow one hundred millions of dollars, or to tax the people of Canada and British
" Columbia to carry out those works within a certain time (loud cheers). He had been
" accused of having made a very Jewish bargain; but not even Shylock would have
" demanded his ' pound of flesh' if it had to be cut from his own body. (Laughter and
" cheers."
These expressions show very clearly that the terms agreed to were directory rather
than mandatory, and were to be interpreted by circumstances, the essence of the engagement being such diligence as was consistent with moderate expenditure, and no increase
in the then rate of taxation.
When the present Government assumed office in November, 1873, the condition of
affairs regarding the railway was as follows:—A sum of over a million of dollars had
been expended in prosecuting the surveys, over one-half of which was spent in British
Columbia, but the engineers had not been able to locate any portion of the line.
A Company under the Presidency of Sir Hugh Allen, had been formed by the late
Government to construct the line. That Company had undertaken to complete the
railway for a grant of thirty millions of money and a grant of twenty thousand acres of
land per mile, retaining possession of the railway when built as their own property.
The President of the delegation of the Directors of this Company visited England to
make financial arrangements to enable them to commence the work of construction.
Their mission proved a total failure. Their failure was so complete that soon after the
return of Sir Hugh Allan and his co-delegates from England, they relinquished their 188 Railway Papers. 1880
charter, and the Government paid them the sum of one million dollars, which had been
deposited with the Receiver-General under the terms of the agreement.
The British Columbia Government had also complained that the commencement of
the works of construction had not been made within the time provided. Sir John A.
Macdonald, however giving an informal opinion that'the terms as to commencement were
sufficiently and substantially kept by the active prosecution of the surveys.
This Government had therefore to provide some other method for the prosecution
of the work, to endeavour to keep substantially good faith with British Columbia, to
avoid further taxation and, if possible, secure the consent and co-operation of the
Government and people of British Columbia.
The new bill, which has since become law, was prepared, which enables the
Government (with the approval of Parliament) to get the work executed in one 01
several contracts, by a company or companies, which may or may not become proprietors of the line after it is constructed.
Mr. James D. Edgar was dispatched on a special mission to the Province of British
Columbia, charged to confer with the Government, and also to visit all classes or parties,
and ascertain their views, and to submit any proposal he might be directed to make to
the local authorities or to receive any proposition from them and forward the same to
Ottawa for consideration. A copy of the instructions sent to Mr. Edgar, and copies of
certain telegrams already forwarded, and Mr. Edgar's report accompanying this minute,
explain sufficiently the nature and result of Mr. Edgar's mission. It was at first expected that a good understanding would be arrived at, and judging from circumstances,
local political complications alone prevented some arrangement being come to.
The reason alleged for refusing to consider the proposition Mr. Edgar was finally
directed to make, that Mr. Edgar was not accredited by this Government, was evidently
a mere technical pretence. All that Mr. Edgar had to do was simply to present the
proposals and ascertain on the spot whether they would be entertained by the Government.
If satisfactory to them, the Dominion Government would, as a matter of course,
have them sanctioned in due form; or if any counter proposition had been made,
instructions would be given Mr. Edgar concerning them.
The propositions made by Mr. Edgar involved an immediate heavy expenditure in
British Columbia not contemplated in the terms of Union, namely the construction of a
railway on Vancouver Island, from the Port of Esquimalt to Nanaimo, as compensation
to the most populous part of the Province for the requirement of a longer time for completing the line on the mainland. The proposals also embraced an obligation to construct
a road or trail and telegraph line across the continent at once, and an expenditure of not
less than a million and a half within the Province annually on the railway works on the
mainland, irrespective of the amounts which might be spent east of the Rocky Mountains, being a half more than the entire sum British Columbia demanded in the first
instance as the annual expenditure on the whole road.
In. order to enable the Government to carry out the proposals, which it was hoped
the British Columbia Government would have accepted, the average rate of taxation
was raised at the late Session about fifteen per cent. The customs duties being raised
from fifteen per cent, to seventeen and a half per cent., and the excise duties on spirits
and tobacco a corresponding rate, both involving additional taxation exceeding three
millions of dollars on the transactions of the year.
The public feeling of the whole Dominion has been expressed so strongly against
the fatal extravagance involved in the terms agreed to by the late Government, that no
Government could live that would attempt or rather pretend to attempt .their literal
fulfilment. Public opinion would not go beyond the proposal made through Mr. Edgar
to the Government.
There is also reason to believe that local political exigencies alone induce the
Government of British Columbia not to entertain these proposals.
Since these propositions have been before the people, meetings have been had on
Vancouver's Island and on the mainland, when the action of the local Government was
condemned, and a call made to accept the proposals offered. A very influential portion
of the local press has also declared in favour of the course pursued by tho Dominion
Government. 44 Vic. Railway Papers. 189
It may not be out of place to mention that the action of the Dominion Government
regarding the Graving Dock, shows a desire to do everything that can fairly be asked,
whether there be an obligation or not under the Terms of the Union. The Dominion was
only bound to guarantee the interest on one hundred thousand pounds at five per cent.,
for ten years after the Dock should be constructed. The local Government found it
impossible to obtain any contractor to undertake the work on the terms they were able
to offer, based on the Dominion guarantee, and they solicited this Government to assist
otherwise. This was agreed to, and Parliamentary authority was obtained at the late
Session to enable the Governor-General in Council to advance $250,000 as the work
progressed.
The Report of Mr. Edgar will fully explain the object and effect of his mission as
the agent of the Government. The Committee advise, therefore, that a copy of the said
Report and appendices be transmitted to the Right Honourable Lord Carnarvon,
Secretary of State for the Colonies, with this Minute.
Certified,
(Signed) W. A. Himsworth,
Clerk Privy Council.
No. 98.
The Governor-General to the Earl of Carnarvon.
Quebec, 9th July, 1874.
My Lord,—I have the honour to forward, for Your Lordship's information, a printed
circular from the Department of Public Works, inviting proposals for the erection of a
line of telegraph along the general route of the Canadian Pacific Railway.
I have, &c,
     (Signed)      Dufferin.
No. 99.
Canada Pacific Railway—Telegraph Line.
Proposals are invited for the erection of a line of telegraph along the general route
of tho Canadian Pacific Railway, as may be defined by the Government. The proposals
to embrace the following points, viz:—
The furnishing of all materials, labour, instruments, and everything necessary to put
the line in operation.
The maintenance of the line for a period of five years after its completion.
In the wooded sections, the land to be cleared to a width of 132 feet, or such greater
width as may be necessary to prevent injury to the telegraph from fires or falling trees.
Distinct proposals to be made for each of the following sections, such proposals to state
the time when the party tendering will undertake to have the telegraph ready for use
in each case:
1. Fort Garry to a point opposite Fort Pelly, about 250 miles.
2. Fort Garry to the bend of the North Saskatchewan, about 500 miles.
3. Fort Garry to a point in the longitude of Edmonton, about 800 miles.
't. Lac La Hache, or other convenient point on the existing telegraph system in
British Columbia, to Fort Edmonton, about 550 miles.
5. Fort Garry to Nepigon, Lake Superior, about 420 miles.
6. Ottawa to Nepigon, Lake Superior, about 760 miles.
The above distances are approximate. They are given for the general guidance of
parties desiring information. Any increase or diminution in tho ascertained mileage
after construction will be paid for or deducted, as the case may be, at a rate corresponding with the sum total of the tender.
Parties tendering must satisfy the Government as to their ability to carry out the
work and maintain it for the specified time.
Proposals addressed to the Minister of Public Works, will be received up to 22nd
day of July next.
By Order.
Department of Public Works, F. Braun,
June, 1874. Secretary. 190 Railway Papers. 1880
No. 100.
The Governor-General to the Earl of Carnarvon.
Ottawa, 18th July, 1874.
My Lord,—I have the honour to enclose a copy of an approved Report of a Committee of the Privy Council, (see No. 81, p.  180) requesting me to inform
uy'      '   Your Lordship that Mr. Walkem, the Attorney-General of the Province of
Columbia, has been deputed by that Government as a Special Agent to lay before Your
Lordship the claims of British Columbia, under the llth Clause of the Terms of Union
with the Dominion of Canada.
I have, &c,
(Signed) Dufferin.
No. 101.
The Governor-General to the Earl of Carnarvon.
Ottawa, 22nd July, 1874.
My Lord,—1 have the honour to forward herewith three copies of the Act of last
Session, " An Act to provide for the construction of the Canadian Pacific Railway."
One copy is attested by the Deputy-Clerk of the Senate.
I have, &c,
(Signed) Dufferin.
No. 102.
The Governor-General to the Earl of Carnarvon.
Ottawa, 31st July, 1874.
My Lord,—I have the honour to transmit a copy of a despatch and enclosure from
the Lieutenant-Governor of British Columbia, together with the petition to
2ndJuiy, 1874.   ^^ Majesty therein referred to from the inhabitants of Victoria, respecting
the non-fulfilment by Canada of the Terms of Union
I have, &c,
(Signed) Dufferin.
No.  103.
The Governor-General to the Earl of Carnarvon.
Sault Ste. Marie,
July 31st, 1874.
My Lord,—In further reference to your public despatch, No. 110, of 18th June,
which I communicated to my Ministers, I have the honour to enclose an approved Order
in Council, in which my Government sets forth more at large its views with res-
23rd July. ^ ^ impending dispute with British Columbia, and expresses a desire that
Your Lordship would use your good offices in promoting a settlement of the misunderstanding, in accordance with the suggestion you have been good enough to make.
I have, &c,
(Signed) Dufferin. 44 Vic. Railway Papers. 191
No. 104.
Report of the Privy Council, approved by the Governor-General on the 23rd July, 1874.
The Committee of Council have had under consideration the despatch from the
Right Honourable the Secretary of State for the Colonies No. 110, relative to the proposed mission of a member of the British Columbia Government to England, for the
purpose of complaining of the alleged non-fulfilment of the Terms of Union between that
Province and the Dominion, as to the construction of the Pacific Railway, and containing
an offer on the part of Lord Carnarvon in the following terms: "If both Governments
" should unite in desiring to refer to my arbitration all matters in controversy, binding
" themselves to accept such decision as I may think fair and just, I would not decline to
"undertake this service;" and further stating that he could not assume such duty
" unless by the desire of both parties, and unless it should be fully agreed that my decision,
" whatever it may be, shall be accepted without any question or demur;" concluding
with a request that, in the event of this offer being accepted, a statement of the case
should be prepared by each Government, to be submitted for consideration.
The Committee advise that Lord Carnarvon be informed that the papers already
transmitted to the Colonial Office, with the Minute of Council of July 8th, having special
reference to Mr. Walkem's communication in Ottawa of the 15th July, convey substantially all that this Government have to say upon the subject; and that the Government would gladly accept his Lordship's offer, if it were possible to define, with any
degree  of exactitude, the matter in dispute.
When the present Government assumed office, they found that the British Columbia
Government had protested against the non-commencement of works of construction on
the railway on or before the 20th day of July, 1873, as agreed to in the eleventh section
of the Order in Council relating to the Union. They also found that the means taken
by the late Dominion Government for proceeding with the works of construction had
totally failed, although the works preliminary to an actual commencement had been
prosecuted with all possible dispatch.
There can be no question of the extreme difficulty involved in the survey of a line
of railway across an uninhabited continent, a distance of twenty-five hundred miles. To
properly complete this survey and ascertain the best route for the railway, would
require not two years simply, but at least five or six years, as all experience of works
of this magnitude and character both in the Dominion and elsewhere has sufficiently
demonstrated.
The expenditure which had taken place up to that time was very large, exceeding
one million of dollars, and yet the engineers had been quite unable to locate any portion
of the line in the more difficult parts of the country to be traversed.
Under these circumstances the Government conceive that there was no reasonable
or just cause of complaint on the part of the British Columbia Government.
No other steps could have been taken further than prosecuting the surveys until
the assembling of Parliament towards the close of the month of March.of this year.
The Government were then prepared with a new bill, taking ample powers for proceeding with the works as expeditiously as the circumstances of the country would
permit. No complaint, official or otherwise, has been made as to the sufficiency of this
measure to accomplish the object in view. It was distinctly understood by the British
Columbia delegation at tho time the Terms of Union were agreed upon, that the taxation
of the country was not to be increased on account of this work beyond the rate then
existing.
So anxious, however, were the present Government to remove any possible cause of
complaint, that they did take moans to increase the taxation very materially in order to
place themselves in a position to make arrangements for the prosecution of the initial
and difficult portions of the lino as soon as it was possible to do so,—and, at the same
time, a special confidential agent was deputed to British Columbia for the express purpose of conferring with the Government of that Province, and to endeavour to arrive at
some understanding as to a course to be pursued which could be satisfactory to British
Columbia and meet the circumstances of the Dominion.
It should be mentioned that beforo the late Government left office it had been distinctly understood, as one of the results of the visit to England by the Directors of the 192 Railway Papers. 1880
Allan Company,  that an  extension of time of at least four years would be absolutely
necessary.
Mr. Walkem, of British Columbia, quite understood this, and there is reason to
believe that it would have been assented to by allparties.
The proposal made through Mr. Edgar to the British Columbia Government is one
which the Dominion Government think should have been accepted as reasonable and
just, and as one quite in accordance with the moral obligations imposed on this Government, if not with the actual letter of the agreement.
It must be remembered that British Columbia earnestly petitioned the Dominion
Government to modify the Terms of Union in its own favour, in relation to the construction of the Graving Dock. The Dominion Government cordially assented to provide
the money for the construction of the work, instead of abiding by the agreement to
guarantee merely the Provincial bonds for ten years, as provided by the Terms of Union.
This at once shows the liberality of the Dominion Government, and their willingness to
consider and meet exceptional circumstances wherever they existed. And this manifestation of liberality on the part of this Government they conceive should have been
reciprocated in other matters by the Provincial Government.
The Dominion Government were also willing to exceed the Terms of Union, by constructing a railway on the Island of Vancouver, although they W6re bound only to
reach the seaboard of the Pacific.
At the present time, the only violation of the terms of the compact which can be
alleged, is that the works of construction were not actually commenced on the 20th
July, 1873.    But it is doubtful if even that allegation can be upheld.
It was all but impossible to proceed more rapidly with the work of survey, and a
very extravagant expenditure was the result of the haste already shown in endeavoring
to locate the line.
This may be understood from the fact that the surveys of the Intercolonial Railway,
500 miles long, occupied not less than four years, though the route was through a settled
country, and they were then very incomplete, causing subsequent serious embarrassments to the contractors, and the presentation by them of endless claims for
compensation.
Mr. Walkem, in his conversations, admits frankly that the literal fulfilment of the
terms for the completion of the line on a certain day in 1881 cannot be expected. The
only questions, therefore, that can now arise are (1) whether due diligence and expedition have been exerted by the Dominion Government in the prosecution of the works;
and (2,) whether the offers of compensation for the alleged non-fulfilment of the terms
were just and fair.
While expressing a very strong conviction that everything has been done that
could possibly be done under the circumstances, and that the Dominion Government
have shown a disposition to go far beyond the spirit of the engagement entered into
with British Columbia, considering the expressions of opinion by Mr. Trutch, as the
delegate of British Columbia at the time of the union, and the facts set forth in the
several documents already forwarded to the Colonial Office, the Committee advise that
Lord Carnarvon be informed they would gladly submit the question to him for his
decision as to whether the exertions of the Government, the diligence shown, and the
offers made, have or have not been fair and just, and in accordance with the spirit of
the agreement.
The Committee advise that a copy of this Minute be forwarded to the Right Hon.
the Secretary of State for the Colonies. Certified,
(Signed)       W. A. Himsworth,
Clerk Privy Council.
No. 105.
Mr. Walkem to the Secretary of State for the Colonies.
London, July 28th, 1874.
My Lord,—I have the honour to inform Your Lordship of my arrival last evening
in London.
The object of my mission, as a Delegate from the Government of the Province of
British Columbia to Her Majesty's Government, has, so I have been informed, already 44 Vic. Railway Papers. 193
been fully explained to Your Lordship. It therefore only remains for me to request
Your Lordship to honour me with a personal interview at the earliest hour which may
prove convenient. I have tho honour, &c,
(Signed) Geo. A. Walkem.
No. 106.
Mr. Meade to Mr. Walkzm.
Downing Street, 29th July, 1874.
Sir,—In reply to your letter of tho 28th instant, I am directed by the Earl of
Carnarvon to inform you that he will be happy to see you at this office at 3.30 p. m., on
Friday next, the 31st instant. I am, &c,
(Signed) R. H. Meade.
No. 107.
Jfr. Herbert to Mr. Walkem.
Downing Street, 15th August, 1874.
Sir,—I am directed by the Earl of Carnarvon to acknowledge the receipt of the
Petition to tho Queen, signed by yourself on behalf of the Executive Council of British
Columbia, which you left with his Lordship, on the occasion of your recent interview
with him at this office.
After careful perusal of this clearly drawn and temperately expressed statement,
and after hearing the further representations which you have since made orally, his
Lordship feels that he has before him a full exposition of the views of the Provincial
Government; and he desires me to thank you for the judicious manner in which you
have discharged the duty entrusted to you.
Lord Carnarvon will be much pleased if he can be the means of adjusting the
differences which have arisen; but the subject abounds in details which require close
examination; and his Lordship thinks it may be convenient to you to know that he
does not anticipate that he will bo able, until after two or three weeks, to come to a
decision as to the course which he should take.
I am, &c,
(Signed) Robert G. W. Herbert.
No. 108.
The Earl of Carnarvon to the Governor-General.
(Canada.)
Downing Street, 16th August, 1874.
My Lord,—With reference to my despatch, No. 110, of the 18th of June, I have now
to acquaint you that I have seen Mr. Walkem, the Premier of British Columbia, deputed
by his Government to represent to me the claims of the Province relative to the delays
which have occurred in the construction of the Pacific Railway; the completion of which
works, within a certain understood time, was one of the principal considerations that
infl uenced the Union of British Columbia with the Dominion of Canada in 1871. I will
only add on this head, that Mr. Walkem laid his case before me in temperate and reasonable terms.
2. I have also received a telegram from the Lieutenant-Governor of British Columbia, stating that upon the advice of his responsible Ministers ho accepts, on behalf of
British Columbia, the arbitration which I thought it my duty to offer, and the conditions of which I explained to your Lordship in my despatch of the 18th of June.
3. I have further received your despatch of tho 31st July, enclosing copy of the
Report of the Canadian Privy Council of tho 23rd of July, in which your Ministers
express their readiness to submit for my decision the question whether the exertions of
the Dominion Government in the prosecution of the work, the diligence shown, and the. 194 Railway Papers. 1880
offers made by them to British Columbia, have or have not been fair and just, and in
accordance with the spirit of the agreement entered into between Canada and British
Columbia at the date of the Union.
4. I appreciate the confidence which has been thus placed in me by both parties to
this controversy, and so far as lies in my power, I am most desirous of contributing to
the settlement of a difference, which although hitherto conducted with great moderation,
and in a conciliatory spirit on both sides, might easily assume more serious dimensions.
5. I feel sure that the Dominion Government will agree with me that the sooner this
controversy can be closed the better, and that to arrange matters amicably, and with as
little resort as possible to formal procedure, will best promote that object, and will be
most congenial to the feelings of all parties.
6. With this view, I will proceed to state the case as I understand it, and the impressions which I have formed as to the course that ought to be taken.
The proposals made by Mr. Edgar, on behalf of the Canadian Government, to the
Provincial Government of British Columbia, may bo stated as follows:—
(1.) To commence at once, and finish as soon as possible, a railway from Esquimalt
to Nanaimo.
(2.) To spare no expense in settling, as speedily as possible, the lino to be taken by
the railway on the mainland.
(3.) To make at once, a waggon road and line of telegraph along the whole length
of the railway in British Columbia, and to continue the telegrajih across the continent.
(4.) The moment the surveys and road on the mainland are completed, to spend a
minimum amount of §1,500,000 annually upon the construction of the railway within the
Province.
7. I am under the impression, after conversing with Mr. Walkem, that he is not
fully empowered on the part of British Columbia to make specific proposals to the Government of Canada, or to me, as to what terms British Columbia would bo willing to
accept, but he has stated very clearly, in conversation at this office, tho objections
entertained by his Government, and in the Province, to the proposals of your Government; and they, or a considerable part of them, are fully set forth in the petition to the
Queen, of which, as it has been published in the Colonial press, you no doubt have a
copy.
8. Taking each point seriatim, as numbered in the last preceding jiaragraph but one,
I understand it to be urged:—
(1.) That nothing is being done by the Dominion Government towrards commencing
and pushing on a railway from Esquimalt to Nanaimo.
(2.) That the surveying parties on the mainland are numerically very weak; and
that there is no expectation in British Columbia or guarantee given on the part of the
Dominion, that the surveys will be proceeded with as speedily as possible.
(3.) That the people of British Columbia do not desire the waggon road offered by
the Dominion Government, as it would be useless to them; and that even tho telegraph
proposed to be made along the line of the railway cannot, of course, be made until the
route to be taken by the railway is settled.
(4.) That " The moment the surveys are completed," is not only an altogether
uncertain, but, at tho present rate of proceeding, a very remote period of time, and that
an expenditure of $1,500,000 a year on the railway within the Province will not carry
the line to the boundary of British Columbia before a very distant date.
8. Mr. Walkem further urges that by section 11 of the Canadian Pacific Railway
Act of 1874, it is competent to the Dominion House of Commons to reject at any time the
contract for a section of the railway, and thus to prevent the continuous construction of
the work.
9. Referring first to this latter point, I do not understand that it is alleged by Mr.
Walkem, nor do I for a moment apprehend that the proviso was introduced with any
belief that it would delay tho construction of the railway. I conceive that all that was
intended by it was to retain tho power of exercising an adequate supervision over the
financial details of the scheme; nevertheless, the objection stated by Mr. Walkem appears
to me one which the Dominion Government should seriously consider, as their policy in
so important a matter ought not to be left open to criticism, and British Columbia may
fairly ask, according to the letter and the spirit of past engagements, for every reason-
ablc'security that the railway will be completed as speedily as possible. 44 Vic. Railway Papers. 195
10. Strong as are, doubtless, the objections urged by Mr. Walkem to the proposals which I understand Mr. Edgar to have made on behalf of your Ministers, and
important as is the subject-matter of controversy, I, as at present advised, can see no
reason why the views of both parties should not be reconciled to their satisfaction and
with justice to all interests concerned.
11. On the one hand I cannot entertain the least doubt of the sincere intention of
tho Canadian Government and Parliament to adhere as closely as possible to the pledges
given to British Columbia at the time of the Union; to do that which is just and liberal
towards the Province, and in fact to maintain the good faith of tho Dominion in the
spirit if not in the letter of the original agreement under circumstances which I admit
to be of no ordinary difficulty.
12. On the other hand, however, it would be unfair to deny that the objections
stated by Mr. Walkem have a certain foundation and force, and I have every confidence
in order to obtain the settlement of a question of such vital importance to the interests
of the whole Dominion, the Canadian Government will be willing to make some reasonable concessions such as may satisfy the local requirements of British Columbia, and yet
in no way detract from the high position which the Dominion Parliament and Government ought in my judgment to occupy.
13. I am of opinion, therefore, on a general review of all the considerations of the
case, and as an impartial but most friendly adviser, who, if I may be allowed to say so,
has the interests of both parties and the prosperity of the whole Dominion deeply at
heart, that the following proposals would not be other than a fair basis of adjustment.
14. (1.) That the section of the railway from Esquimalt to Nanaimo should be begun
at once.
(2.) That the Dominion Government should greatly increase the strength of the
surveying parties on the mainland, and that they should undertake to expend on the
surveys, if necessary, for the speedy completion of the work, if not an equal share to
that which they would expend on the railway itself if it were in actual course of construction, at all events some considerable definite minimum amount.
(3.) Inasmuch as the proposed waggon road does not seem to be desired by British
Columbia, the Canadian Government and Parliament may be fairly relieved of the
expense and labour involved in their offer; and desirable as, in my opinion, the construction of the telegraph across the continent will be, it perhaps is a question whether
it may not be postponed till the lino to be taken by the railway is definitely settled.
(4.) The offer made by the Dominion Government to spend a minimum amount of
$1,500,000 annually on the railway within British Columbia, as soon as the surveys and
waggon road are completed, appears to me to be hardly as definite as the large interests
involved on both sides seem to require. I think that some short and fixed time should
be assigned within which the surveys should bo completed; failing which, some compensation should become due to British Columbia for the delay.
15. Looking, further, to all the delays which have taken place,, and which may yet
perhaps occur; looking also to the public expectations that have been held out of the
completion of the railway, if not within the original period of ten years fixed by the
Terms of Union, at all events within fourteen years from 1871, I cannot but think that
the annual minimum expenditure of $1,500,000 offered by the Dominion Government for
the construction of the railway in the Province, is hardly adequate. In order to make
the proposal not only fair but, as I know is the wish of your Ministers, liberal, I would
suggest for their consideration whether the amount should not be fixed at a higher rate,
say, for instance, at $2,000,000 a year.
16. The really important point, however, not only in the interests of the Province,
but for tho credit of the Dominion and the advantage of the Empire at large, is to assume
the completion of the railway at some definite period, which, from causes over which
your Ministers have had no control, must now, I admit, be much more distant than had
been originally contemplated, and I am disposed to suggest as a reasonable arrangement,
and one neither unfair to the Dominion nor to British Columbia, that the year 1890
should be agreed upon for this purpose. In making this suggestion, I, of course, conclude that the Dominion Government will readily use all reasonable efforts to complete
the line before any extreme limit of time that may be fixed. A postponement to the
very distant period which I have mentioned could not fail to be a serious disappointment to the people of the Province, and to all interested in its welfare, and I should not 196 Railway Papers. 1880
have suggested it were it not for the full confidence which I felt in the determination of
your Ministers to do not merely the least that they may be obliged, but the utmost
that they may be able, in redemption of the obligations which they have inherited.
17. I have now only to repeat the strong desire which I feel to be of service in a
matter, the settlement of which may be either simple or difficult according to the spirit
in which it is approached, a question directly bearing upon the Terms of Union majr, if
both parties to it will waive some portion of their own views and opinions, be well entrusted to the Imperial authority which presided over that Union, and not improperly,
perhaps to the individual Minister whose fortune it was to consider and in some degree
to shape the details of the original settlement under which the Provinces of British
North America were confederated, and British Columbia ultimately brought into connection with them. If indeed the exjjression of a personal feeling may, in such a case
as this, be indulged, I may perhaps be allowed to say how sincerely I prize the recollection of the share which I was then permitted to have in that great work, how
deeply I should greive to see any disagreement or difference impair the harmony which
has been so conspicuously maintained by the wisdom and good feeling of all parties, and
how entirely your Lordship and your Ministers may count upon my best efforts in
furtherance of every measure that can contribute to the strength and honour of the
Dominion of Canada.
18. It will be very convenient if your Government should feel able to reply by telegraph, stating generally whether the modifications which I have proposed, and which
seem to me consistent, with the present conditions of the question and with the true
construction of the policy adopted by them, are in tho main acceptable to them, in order
that no unnecessary delay may take place in bringing this matter to a conclusion.
I have, &c,
(Signed) Carnarvon.
No. 109.
The Governor-General to the Earl of Carnarvon.
Ottawa, 21st August, 1874.
My Lord,—In continuation of my despatches, noted in the margin, on the subject
No. 182,9th July, 207, of the suggestions made by your Lordship for the settlement of the
3ist July. differences  between   the  Government of British  Columbia and that of
No 3 677  29th July   tne Dominion, I have the honour to enclose a coj>y of a despatch from
1874.   ' "" ' Lieutenant-Governor Trutch, acknowledging the receipt of the copy 1
sent him of your Despatch No. 110, of the 18th Juno.    (>S'ee No. 87, p. 193.).
I have, &c,
(Signed)        Dufferin.
No. 110.
The Governor-General to the Earl of Carnarvon.
(Canada) September 18th, 1874.
My Lord,—In acknowledging the receipt of your Lordship's despatch, secret, of
the 16th of August, in which you have been good enough to convey to me your opinion
as to the modifications which might be introduced with advantage into the terms already
proffered by my Ministers for the settlement of the dispute now pending between this
Government and that of British Columbia, I have the satisfaction of informing you that
after a good deal of anxious deliberation Mr. Mackenzie and his colleagues have consented to adopt several suggestions recommended to them by your Lordship, should it
bo found absolutely impossible to terminate the controversy in any other manner.
2. The general view of my Ministers on the various points referred to are set forth
at large in the enclosed Order in Council from which your Lordship will gather that it
is with very considerable reluctance they have been induced to make these further concessions, feeling so strongly as they do that their original proposals fairly satisfied the
requirements of the case. 44 Vic. Railway Papers. 197
3. I have no doubt, however, it will be felt throughout the country that the only
mode by which the Dominion could be satisfactorily extricated from the false position
in which she was placed by her treaty obligations to fulfil engagements which were
physically impossible of execution, was by a large and generous interpretation of the
consequent claims against her,
4. I have further the honour to transmit a sketch map of the area now under exploration in British Columbia, accompanied by a memorandum by Mr. Fleming, the
engineer-in-chief, by which it will be perceived that every effort is being made to hurry
forward the surveys with all possible dispatch, and that the employment of any
additional staff would uselessly increase the expense without forwarding the work,
I have, &c,
(Signed) Dufferin,
No. 111.
Report of the Privy Council approved by the Governor-General on the llth September, 1874.
The Committee of Council have had under consideration the despatch of the Right
Honourable Lord Carnarvon relating to the complaints of the British Columbia Government with respect to the Pacific Railway, and suggesting certain modifications of the
proposals made by the Dominion Government through Mr. Edgar, on the 8th May last.
These proposals were prompted by a desire to provide against future difficulty, in
view of the then well ascertained fact that the terms of Union had become impossible of
literal fulfilment, on the one hand, and on the other hand giving due weight to the very
strong feeling entertained against the fatal extravagance which these terms involved to
the country.    The proposals may thus be summarized:—
1. To build a railway from Esquimalt to Nanaimo, on Vancouver Island, in excess
of the terms of Union, and to begin the work immediately.
2. To commence the construction of the railway on the mainland as soon as the
surveys could be completed, and to expend on the work not less than one and a half
millions annually.
3. To take the necessary steps, meanwhile, to secure the construction of a telegraph
line across the continent on the located line for the railway, at the same time cutting out
the railway track and building thereon a trail or road, which would become available as
part of the permanent works.
The arrangement proposed by Lord Carnarvon embodies some amendments. His
Lordship suggests:—
1st. The immediate construction, as proposed, of the short line on Vancouver Island.
2nd. After the location of the line the expenditure of two millions on the mainland,
instead of one and a half millions.
3rd. The increase of the engineering force to double the number now employed;
the expenditure on the survey, if not of an amount equal to the proposed annual expenditure on construction, of some other specific sum; the prescribing of a limited time for
the completion of the survey; and the payment of a sum of money as compensation in
the event of its not being so completed.
4th. The guarantee of the completion of the entire railway in 1890.
It is also suggested that the construction of the telegraph line and road need not be
proceeded with, as Mr. Walkem does not consider either as of any use to the Province,.
The Committee recommend that the first consideration, which is precisely what
was previously offered, be again concurred in.
In regard to the second proposal, the Committee recommend that Lord Carnarvon
bo informed (if it bo found impossible to obtain a settlement of the question by the
acceptance of the former offer) that the Government will consent that after the completion of the survey, the average annual minimum expenditure on the mainland shall be
two millions. There is every reason to believe now that a majority of tho people of
Columbia would accept the propositions previously made. Judging from a petition sent
from the mainland, signed by 644 names (a copy of which petition is enclosed), there is
almost an entire unanimity there in favour of these proposals, and assurances were
given very lately by a gentleman of the highest position, on the Island that tho course 198 Railway Papers. 1880
of the Local Government would not meet general approval there. An application was
made by one prominent gentleman, an ex-member of Parliament, to the Government
here, to know if the proposals made would still be adhered to, he pledging himself to
secure their acceptance by the bulk of the people here.
It is, therefore, earnestly hoped that no change will be considered necessary, as it
will be difficult to induce the country to accept any further concessions.
The third condition requires an increase of the engineer force employed on the surveying service; the completion of the survey within a specific time; and, in case that
time should be exceeded, the payment to the Province of a money compensation.
The Committee respectfully submit that the result arrived at by the foregoing suggestion is already being accomplished with the utmost dispatch admitted by the circumstances of the case.
The Chief Engineer was instructed to provide all the assistance he required in order
to complete the surveys within the shortest possible period, and he engaged a large
force,—a larger force, indeed, than can with profit be employed until the route is
definitely determined.
Whatever may be the route finally chosen, the line will of necessity traverse a
country with exceedingly rough topographical features for a distance of over five or six
hundred miles from the eastern slope of the Rocky Mountains to the extreme limit of
the Province on the Pacific.
The country is an immense plateau, which maintains its general elevation to within
a few miles of the sea, but often rises into unshapely mountain ranges. Some of these
ranges tower to a height of over 9,000 feet.
The boundary of the plateau on the west is the Cascade Range. This forms a huge
sea-wall along the coast, and has interposed a much more formidable obstacle to the
surveyors than the Rocky Mountains. Attempts have been made at five or six points
to pierce the barrier, but, except at the Fraser River and at Bute Inlet, without success.
From the results of last year's explorations, the Bute Inlet route seemed on the
whole to be the best, but it is not unassociated with serious difficulties. For a distance
of twenty miles the ascent or grade is about 150 feet to the mile.
The straits which form the approach to the harbour from seaward are encumbered
by islands, and, when reached, the harbour is found to be destitute of anchorage. The
dangers of navigation are increased not alone by the precipitous and rocky shores, but
by the rapidity of the tide, which rushes through the narrow channels with a velocity
of from seven to nine miles an hour.
It was supposed when work was resumed last Spring that a practicable route
would be found from the point where Fleming's line touches the north branch of the
Thompson River westward towards what is known as Big Bend, on the Fraser River,
from which no serious impediment exists until the commencement of the rapid descent
to the sea at Bute Inlet is reached. Had this supposition proved correct, it is probable
the Government might have been prepared at the end .of this year to proceed with the
exact location of the line. But the explorations carried on to the close of July last,
resulted in the discovery of a high range of mountains, which fill the country from near
the junction of the Clearwater with the Thompson northward to the great Bend of the
Fraser; and, without a very long detour south or north, they bar the way to the west.
The Chief Engineer, therefore, advised a re-examination of the Fraser Valley, or, more
correctly speaking, ravine, inasmuch as no broad valley anywhere exists, the rivers in
their courses having cleft ways for themselves through the rocks, which in some cases
they have pierced to a depth of 1500 feet by a width of not more than a single mile,
thus giving as the normal condition exceedingly precipitous banks. This new examination of the Fraser River route will occupy at least the whole season.
A memorandum from the Chief Engineer will give the strength of the force and
show its distribution. Nearly two seasons were passed in examining the Rocky Mountain Range and the Valley of the Columbia, in the endeavour to obtain a favourable
pass. The result was that tho explorers were driven north to what is known as Jasper
House Pass.
These.facts are mentioned to give some idea of the enormous labour involved, and
the impossibility of placing a large force in the field to do engineering work, when it is
not yet known where the engineering work is to be done. The exploratory survey
must be tolerably complete before the exact location of any portion of the line can be 44 Vic. Railway Papers. 199
contemplated or possible, and before plans can be made of bridges and other works of
construction required; and nothing but the urgency of the contract so imprudently
entered into with British Columbia would otherwise have induced the Government to
employ more than half the force now engaged.
As pointed out in previous memorandum, the expenditure to the end of last year in
British Columbia alone was considerably over half a million of money more than the
whole expenditure upon the two thousand miles eastward of that Province.
The Chief Engineer was informed last winter that it was the desire of the Government to have the utmost expedition used in prosecuting and completing the surveys;
and in the engagements which he has entered into these directions have been fully
considered.
The fourth engagement involves another precise engagement to have the whole of
the railway communication finished in 1890. There are the strongest possible objections
to again adopting a precise time for the completion of the lines. The eastern portion of
the line, except so far as the mere letter of the conditions is concerned, affects only the
Provinces east of Manitoba; and the Government have not been persuaded either of the
wisdom or the necessity of immediately constructing that portion of the railway which
traverses the country from the west end of Lake Superior to the proposed eastern terminus on Lake Nipissing, near Georgian Bay, nor is it conceived that the people of
British Columbia could, with any show of reason whatever, insist that this portion of
the work should be completed within any definite time, inasmuch as if the people who
are chiefly if not wholly affected by this branch of the undertaking are satisfied, it is
maintained that the people of British Columbia would practically have no right of
speech in the matter.
It is intended by the Government that the utmost diligence shall be manifested in
obtaining a speedy line of communication by rail and water from Lake Superior westward, completing the various links of railway as fast as possible, consistent with that
prudent course which a comparatively poor and sparsely settled country should adopt.
There can be no doubt that it would be an extremely difficult task to obtain the
sanction of the Canadian Parliament to any specific bargain as to time, considering the
consequences which have already resulted from the unwise adoption of a limited period
in the Terms of Union for the completion of so vast an undertaking, the extent of which
must necessarily be very imperfectly understood by people at a distance. The Committee
advise that Lord Carnarvon be informed that, while in no case could the Government
undertake the completion of the whole line in the time mentioned, an extreme unwillingness exists to another limitation of time; but if it is found absolutely necessary to
secure a present settlement of the controversy by further concessions, a pledge may be
giventhat the portion west of Lake Superior will be completed so as to afford connection
by rail with existing lines of railway through a portion of the United States, and by
Canadian waters during tho season of navigation, by the year 1890, as suggested.
With regard to the ameliorating proposal to dispense with the formation of a road
or trail across the country, and the construction of a telegraphic line, on the representation of tho British Columbia delegate that neither is considered necessary, it is proper
to remark that it is impossible to dispense with the clearing out of a track and the
formation of a road of some sort in order to get in the supplies for the railway, and the
proposal was, that as soon as the general route of the railway could be determined and
the location ascertained, a width of two chains should be cleared out in the wooded
districts, a telegraph line erected, and that a sort of road, passable for horses and rough
vehicles, should be formed and brought into existence, not as a road independent of the
railway, but as an auxiliary to and a necessary preliminary to railway construction,
the cost incurred forming part indeed of the construction of the railway itself.
In so vast a country where there are no postal facilities and where there can be no
rapid postal communications for many years hence, it is absolutely essential that a
telegraph line should be erected along the proposed route, as the only means by which
the Government and contractors could maintain any communication. The offer therefore to dispense with a telegraph line is one which cannot be considered as in any way
whatever affording relief to the Dominion, the undertaking to construct the telegraph
line must rather be looked upon as an earnest of the desire of the Government, to do
everything  in reason, in order to keep within the spirit of its engagements. 200 Railway Papers. 1880
The intention of the Government will be seen from the following quotations from
the Act of last Session :—
"A line of electric telegraph shall be constructed in advance of the said railway
" and branches along their whole extent respectively as soon as practicable after the
" location of the line shall have been determined upon."
Having dealt with the modifications suggested by Lord Carnarvon, it is proper to
notice seriatim the several grounds of complaint as stated in the despatch:
1st. " That nothing is being done by the Dominion Government towards com-
" mencing and pushing on a railway from Esquimalt to Nanaimo."
The Dominion has no engagement to build such a railway, and therefore there can
be no just complaint that it is not commenced. The construction of such a railway was
offered only as compensation for delay in fulfilling the engagement to build a railway to
the "Pacific seaboard."
2nd. " That the surveying parties on the mainland are numerically weak, and that
" there is no expectation in British Columbia, or guarantee given, that the surveys will
"be proceeded with as speedily as possible."
On this point it is sufficient to state that, as remarked elsewhere, the utmost expedition possible has been used, and that the allegations in the petition are incorrect.
3rd. " That the people of British Columbia do not desire the waggon road offered
" by the Dominion Government, as it would be useless to them; and that even the tele-
" graph proposed to be made along the line of railway cannot of course be made until
" the route to be taken by the railway is settled."
It may bo noticed in connection with this extraordinary statement that the construction of such a road was one of the conditions imposed by the Local Legislature in
their resolutions adopted as the basis whereon to negotiate the Terms of Union. It
would therefore seem that such a declaration now is intended more to lessen the value
of the proposals made to British Columbia than to indicate public sentiment in the Province. As pointed out elsewhere, the work is practically a part of railway construction,
and it is also confidently believed will be of very great advantage to the people generally.
4th. Mr. Walkem further urges " That by Sec. 11 of the Canadian Pacific Railway
" Act of 1874, it is competent to the Dominion House of Commons to reject at any time
"the contract for a section of the railway, and thus to prevent the continuous construc-
" tion of the work."
This is simply a complaint that the present Government provided for Parliamentary
supervision over tho letting of such vast contracts. It was contended by the opposition
in 1872, that in the matter of a contract for so large a work, for which the Dominion
was to pay thirty millions of dollars, and allot nearly sixty million acres of land, the
formal sanction of Parliament should be obtained. Accordingly, when it became their
duty under altered political circumstances to submit a new measure to Parliament, in
lieu of the one which had failed of success, they were bound to secure by statutory
enactments full control to Parliament over the letting of the contract or contracts.
In all extraordinary contracts entered into by the Government of England or
Canada, this course has been followed; as, for instance, in contracts for the conveyance
of mails by ocean steamers.
It will also be apparent that no Government decision could prevent future Parliamentary action.
Tho insertion of this section therefore, is in pursuance of a well settled public policy,
not to permit the executive too extensive powers without specific Parliamentary sanction;
and even the present opposition demanded that the restriction should apply to minor
works on the branches provided for in the Act.
Neither the Canadian Government nor Parliament can be suspected of having
inserted such a clause for the improper purpose of using it to retard progress otherwise
possible.    Nothing has occurred which could justify such a suspicion.
Since the passage of the Act, the Government have placed the grading of the
Pembina Branch under contract, and hope soon to place the Nipissing Branch under
contract. The contracts for tho telegraph lines from Fort William to the existing telegraphic stations in British Columbia will be closed in a few days.
It only remains to say that the Government, in making the new proposals to British
Columbia, were actuated by an anxious desire to put an end to all controversy, and to
do what is fair and just under very extraordinary circumstances, and that these proposals embraced the most liberal terms that public opinion would justify them in offering. 44 Vic. Railway Papers.
It is proper, further, to remark that there has been no just cause of complaint at
all, inasmuch as the Report of the Chief Engineer shows that nothing more could have
been done to forward the work.
The Act passed last Session is a very complete one, and amply provides for the
construction of the railway, subject to the Parliamentary supervision referred to.
The lot of British Columbia is cast in with the other North American Provinces,
and it becomes the duty of all the Confederated Provinces to consider to some extent
the general welfare. It is especially the duty of the smaller Provinces to defer somewhat to the opinions of the old and populous Provinces from which the revenue for the
building of all such works is derived.
Certified.
(Signed)       W. A. Himsworth,
Clerk, Privy Council.
No. 112.
Copy of Petition.
" That in view of the action taken by an association calling itself ' The Terms of
" Union Preservation League,' meeting in the City of Victoria, on Vancouver Island,
" in petitioning Her Most Gracious Majesty the Queen relative to the non-fulfilment of
" one of the conditions of the Terms of Union, and affirming in said petition that Esqui-
" malt, on Vancouver Island, had been decided to be the terminus of the Canadian
" Pacific Railway, and that a portion of tho line had been located between the harbour
" of Esquimalt and Seymour Narrows, and praying that Her Majesty act as Arbitrator,
" and see that justice be done to British Columbia, we, the undersigned, respectfully
" submit as follows:—
" That in our opinion, the Order of the Privy Council of Canada, of 7th June,
1873, is in no way binding upon Your Excellency's present Government, and that a
line of railway along the seaboard on Vancouver Island to Esquimalt is no part of the
Terms of Union.
" That in any arrangement which may be entered into for an extension of time for
the commencement or completion of the railway, any consideration granted by the
Dominion of Canada to the Province of British Columbia, should be such as would be
generally advantageous to the whole Province, and not of a merely local nature, benefiting only a section thereof.
" That the league referred to, acting under the impression that further surveys
may detract from the favourable opinion now entertained by the Engineers of the Bute
Inlet route, are desirous of forcing Your Excellency's Government into an immediate
selection.
" That we consider it would be unwise, impolitic, and unjust to select any line for
the railway until time be given for a thorough survey of the different routes on the
Mainland, believing as we do, that such survey must result in the selection of Fraser
Valley route, which is the only one that connects the fertile districts of the interior
with the seaboard.
" That as it is evident that the surveys are not yet sufficiently advanced to allow of
an intelligent decision on the question of route being arrived at, we consider that a
vigorous and immediate prosecution of the surveys by Your Excellency's Government,
to be followed in 1875 by the commencement of construction on the Mainland, will be a
faithful carrying out of the spirit of the Terms of Union.
" Your petitioners therefore humbly pray that Your Excellency take the views
expressed in this our petition into your most favourable consideration."
No.  113.
Mr. Walkem to the Secretary of State for the Colonies.
London, 10th September, 1874.
My Lord,—In a letter of the 15th of August last, acknowledging the receipt of the
Petition to Her Majesty of the Committee of the Executive Council of British Columbia,
Your Lordship was pleased to inform me that you did " not anticipate that you would
RARY,
victoria b* a 202 Railway Papers. 1880
" be able, until after two or three weeks, to come to a decision as to the course which
" you should take " upon the subject matter of the Petition.
As the time mentioned has now expired, may I request your Lordship to be good
enough to inform me of the conclusion (if any) which you may have arrived" at.
I have, &c,
(Signed) Geo. A. Walkem.
No. 114.
Mr. Malcolm to Mr. Walkem.
Downing Street, 14th September, 1874.
Sir,—I am directed by tho Earl of Carnarvon to acknowledge*the receipt of your
letter of the 10th instant, and to express to you his regret that he is not at present in a
position to communicate to you any decision, in regard to the Petition of the Executive
Council of British Columbia. I have, &c,
(Signed) W. R. Malcolm.
No. 115.
Mr. Walkem to the Earl of Carnarvon.
London, October 31st, 1874.
My Lord,—I now beg leave respectfully to offer, for your Lordship's consideration,
a recapitulation and review of the main points of the question at issue between Canada
and British Columbia, respecting the breach, by the former, of the Railway Agreement
in the Terms of Union.
Although I have been favoured by your Lordship with many and lengthened interviews on this subject, I hope that the grave nature of the interests committed to my
care, as well as the important influence which your Lordship's action at the present
time is sure to exercise upon the political and industrial growth of the Province, will
be a sufficient excuse for again troubling you.
A written communication of the kind proposed may also usefully serve to define
more clearly some of the views, which I have advocated on behalf of tho Province.
Before proceeding further, I trust that I may be permitted to tender the expression
of my grateful sense of the attention with-which your Lordship has been pleased to
receive, not only the statement of the case of British Columbia as set forth in the
Petition of its Government, but also the comments upon it which I have from time to
time made.
The Provincial Government will be glad to learn—what your Lordship has been
good enough to state—that you have been gratified with the temperate spirit in which
their case has been presented for the consideration of Her Majesty's Government.
It was, as I had the honour to mention at my first interview, with a strong feeling
of regret, that the Government of the Province felt themselves under the necessity of
seeking the advice and intervention of Her Majesty's Government in this matter. The
Provincial Government desired to work in harmony with the Dominion Government,
and I may safely say that such intervention would not have been sought, had a sufficient
effort been made by the Dominion to comply with the spirit of the Eailway Agreement.
The key to the general policy of Her Majesty's Government, in relation to British
North America is, so far as 1 understand, to be found in the preamble of the Act of
Confederation, which briefly declares that " Union would conduce to tho welfare of the
"Provinces * * * * federally united * * * and promote
"the interests of the British Empire." The Imperial policy thus declared has also been
the policy of Canada. British Columbia likewise has endeavoured on her part loyally
to follow it. If is from a due regard for the principles laid down in the Confederation
Act, and from a natural and, I hope, proper desire to protect her own special interests
as a Province, that British Columbia has protested against the non-fulfilment by Canada
of the Railway Agreement of the Terms of Union.
This Railway Agreement, while purposely and in part framed, as I shall hereafter 44 Vic. Railway Papers. 203
show, to promote the interests of British Columbia, is not an agreement for the construction of a railway within merely provincial limits, for simply provincial purposes.
It is an agreement of a much more comprehensive character, designed, in fact, mainly
to advance, and indeed to effect, a real union and consolidation of the British Possessions
on the Continent of North America. In the attainment of this great end, British
Columbia is, owing to her present isolation, especially interested.
A short reference to a few facts which led to the Union of the Province with Canada
will best explain her true position.
In pursuance of the general Confederation policy declared in 1867, Her Majesty's
Government in 1869 addressed a despatch to the Governor of British Columbia, expressing a desire that British Columbia should be incorporated with Canada. This
despatch not only restates the principles set forth in the Confederation Act, but also
shows in what respect they are peculiarly applicable to British Columbia. The following
is a quotation from the despatch :—
"Her Majesty's Government," writes the Secretary of State, "anticipate that tho
interests of every Province of British North America will be more advanced by enabling
the wealth, credit, and intelligence of the whole to be brought to bear on every part,
than by encouraging each in the contracted policy of taking care of itself, possibly at
the expense of its neighbour.
" Most especially is this true in the case of internal transit. It is evident that the
establishment of a British line of communication between the Atlantic and Pacific oceans
is far more feasible by the operations of a single Government responsible for the progress
of both shores of the Continent, than by a bargain negotiated between separate, perhaps
in some respects rival, Governments and Legislatures. The San Francisco of British
North America would, under these circumstances, hold a greater commercial and
political position than would be attainable by the capital of the isolated Colony of
British Columbia.
" Her Majesty's Government are aware that the distance between Ottawa and
Victoria presents a real difficulty in the way of immediate union. But that very difficulty will not be without its advantages, if it renders easy communication indispensable
and forces onwards the operations which are to complete it. In any case it is an understood inconvenience, and a diminishing one, and it appears far better to accept it as a
temporary drawback on the advantages of union, than to wait for those obstacles, often
more intractable, which are sure to spring up after a neglected opportunity."
Here four propositions are laid down:—
1st. That the Canadian Federal system is based upon a union of the " wealth, credit
and intelligence" of the several Provinces, which will, when properly applied, promote
the welfare of each.
2nd. That to secure this result, "easy * * * internal * * * communication"
through British territory " is indispensable."
3rd. That the absence of this "easy * * * internal * * * communication,"
and "the distance between Ottawa and Victoria" constitute a real difficulty in the way
of immediate union."
4th. That this " real difficulty" will operate as a mere " temporary drawback on
the advantages of union," as it will be sure to "force onwards" those "operations"
necessary to remove it.
It is to hasten the removal of this " temporary drawback," and to " force onwards,"
in the sense of the above despatch, these necessary operations, which have been long
deferred, that the Government of British Columbia have sought the intervention of
Her Majesty's Government.
The strength of the above propositions, viewed in connection with the general confederation policy, was fully recognized by the then Government of the Dominion. They
agreed with Her Majesty's Government, that without "easy communication" and
" internal transit" between Ottawa and Victoria, the union of British Columbia and
Canada could not be effective. Afterwards, when the whole matter was practically
studied by the Government of the Dominion, it seems to have been their decided opinion
that "easy communication" across the Continent could mean nothing less than a railway; and that, with respect to British Columbia, the "temporary drawback on the
advantages" of Confederation, mentioned by Her Majesty's Government, should not be
allowed to last for more than ten years from the date of Union. 204 Railway Papers. 1880
Hence the Dominion undertook "to secure the commencement simultaneously," on
the 20th July, 1873, "of the construction of a railway from the Pacific towards the
" Rocky Mountains, and from such point as may be selected, east of the Rocky Moun-
" tains, towards the Pacific, to connect the seaboard of British Columbia with the
"railway system of Canada; and, further, to secure the completion of such railway
" within ten years from" July, 1871. And British Columbia, on her part, entered into
certain obligations in favour of the Dominion, with regard to the public lands of the
Province. The word " simultaneously," which appears in this agreement, was designedly
inserted with two objects:—
1st. That Canada should commence construction works at the two most available
points, and thus ensure the early and rapid progress of the railway; and
2ndly. That the admitted disadvantages under which British Columbia would
labour until the completion of the main line should to some extent be counterbalanced
by the benefits of early expenditure upon railway works in the Province.
The agreement thus entered into was inserted in, and formed the most essential part
of, the Terms of Union mutually accepted, in 1871, by British Columbia and Canada.
These terms were placed before the people of the Province at a general election. They
were shortly afterwards considered and formally approved by the Provincial Legislature.
They were subsequently fully debated and accepted by both Houses of the Parliament
of Canada; and they were finally sanctioned and ratified by Her Majesty in Council.
No question, therefore, could have been more thoroughly ventilated—no conclusion
more deliberately arrived at. As a strong practical proof of the continued interest felt
by Her Majesty's Government in the success of the Confederation thus established, the
Imperial Parliament, in July, 1873, guaranteed a loan of £3,600,000, to be raised by
Canada mainly for the construction, among other public works, of the Canadian Pacific
Railway.
It may now be useful to present to your Lordship a brief statement of the manner
in which the conditions of the Railway Agreement have been observed.
The Petition of the Government of British Columbia shows the following facts:—
That the Province has fulfilled her part of the agreement, and has endeavoured to
aid the Dominion Government to carry out their part;
That the Dominion Government have not, during tho three years succeeding union,
made duo effort to complete the railway surveys in British Columbia;
That the Dominion Government did not, on the 20th July, 1873, commence the
"simultaneous" railway construction provided for in the agreement;
That they also have hitherto failed to commence any railway construction whatsoever in the Province, though they might have commenced such construction, as they
admitted in May last that they were then in a position to begin the railway.
Some further circumstances connected with these matters are detailed in the Petition.
It is therein shown that in June, 1873, the Dominion Government selected the harbour
of Esquimalt, on the Pacific, as the western terminus of the Canadian Pacific Railway;
that they at the same time decided that a portion of the main line should be " located "
between this terminus and Seymour Narrows; that some weeks prior to the day named
iD the Agreement for the commencement of the construction of the main line, they
secured from the Provincial Government " in furtherance of such construction" a reserve
of a valuable tract of land lying along this projected line, and some 3000 square miles
in area; that, as already stated, no construction whatsoever was or has been commenced
within the Province; that the land so reserved has been thus rendered comparatively
valueless to the Province, as it has ever since been closed to settlement and to the
investment of capital.
Against the continuance of the above state of things, the Province, through its
Legislature and its Government, from time to time entered protest after protest, but
without effect, and without even eliciting any reply from the Dominion Government
beyond a formal acknowledgment of the receipt of the despatch enclosing each protest.
The last protest was forwarded in February of the present year; subsequently the
correspondence took place which is appended to the Petition. From the questions
raised by this correspondence, all those which are unimportant may be usefully eliminated. I propose, therefore (subject, perhaps,, to a slight digression, where necessary),
to confine my observations to the principal points in a letter from Mr. Edgar to myself,
which contains certain proposals as regards railway matters. 44 Vic.     , . Railway Papers. 205
The Provincial Government did not at the time understand that these proposals
were officially made. They were subsequently withdrawn by the Dominion Government, and only at the moment of such withdrawal declared by them to have been made
with their authority and on their behalf. The above letter, which thus became invested,
though but for a brief time, with an authoritative character, is valuable as the only
official intimation to the Provincial Government of the policy of the present Dominion
Government on the subject of the Pacific Railway. In addition to certain proposals or
offers to British Columbia, the letter contains important statements and some specific
admissions which favour the Provincial case.
1 shall discuss these offers seriatim, and endeavour to ascertain their value taken in
connection with tho conditions attached to them, which conditions, as I shall afterwards
show, virtually amount to a surrender by British Columbia of her existing railway
agreement. I shall then offer some comments upon the above statements and admissions,
using generally, as far as may be, the language in which they are expressed in the
letter, in order to lessen the danger on my part of any inadvertent misconstruction of
their meaning.
The offers made are as follows:—
No. 1. The Dominion will " commence construction from Esquimalt to Nanaimo
immediately, and push that portion of railway on to completion within the
shortest practicable time."
The offer to commence work immediately at Esquimalt (which, as already
stated, was selected as the Western Terminus of the main line by an Order of the
Privy Council of Canada as far back as June 1873) is simply an offer to do what the
Dominion was bound to have done in July 1873, and what they might have done at any
time since, and which they admit in this letter was quite practicable in May last. The
offer, your Lordship will notice, is a very limited one. No definite provision is made
for the extension of the main line beyond Nanaimo (about 60 miles from Esquimalt);
nor, indeed, is any definite period fixed for the completion of even this short portion of
the railway, which would take neither much time or money to construct. The promise
to complete it "in the shortest practicable time,"—a promise in effect attached to all the
offers in the letter,—is one which, slightly qualified, is implied in the present and in
every other agreement of a similar character, in which no stipulation is inserted for the
performance of work within a given time. The phrase is much too elastic in its meaning
to admit of any definite interpretation. It may, for the present, therefore, be fairly
omitted from special consideration, except as some evidence of a general intention on
the part of the Dominion Government. I must assume, what the language conveys, that
that the words " that portion of railway," mean the Esquimalt or Nanaimo portion or
part of the main railway, which is the only railway referred to in the letter. This would
tend to show that the position of the terminus is not questioned. No other allusion to
the terminus is made in the letter.
No. 2. The Dominion will prosecute and complete the surveys, and then determine " the location of the line upon the mainland."
This promise is reasonable on the face of it, but it is very vague. In May last the
Government of the Dominion informed the Provincial Government that "there was no
reason to believe that it would bo possible to complete the surveys before the close of
tho year " 1874. The reasonable inference deduciblo from this statement is, obviously,
that the surveys would be finished at the end of 1874. If a longer period had been
deemed necessary for the purpose, the fact would have been stated. Considering the
intimation thus given, and looking to the long interval of time that has elapsed without
any decision as to the route having been arrived at, it might have been expected that
the letter would have positively guaranteed the completion, in 1874, of these and all
other indispensable surveys within tho Province at least, and have further placed
beyond conjecture the commencement of construction works early in 1875. I have been
inlormed by a railway engineer here that, as a matter of practice, the exploratory surveys settle the genera! bearing or course of a lino of railway, and that the subsequent
location surveys may be proceeded with at several points along such line simultaneously, and the work of construction be commenced at those points without M'aiting for the
actual location of the whole line.    Such being the case, there is no valid reason, in view 206 Railway Papers. 1880
of all the facts above stated, why this practice should not be followed with respect to
the Pacific Railway. The general course of the railway, within the Province at least,
should be determined this year, and location surveys, immediately followed by actual
construction, should be commenced early in 1875 at various points on the mainland and
on the island. This is what British Columbia, above all things, desires, and any definite
arrangement which will secure her wants in this respect will give the Province much
satisfaction.
No. 3. The Dominion will " open up a road and build a telegraph line along
the whole length of the railway in the Province, and carry the telegraph
wire across the Continent."
The performance of this offer, both as to the road and the telegraph line, would
depend, in point of time, upon the performance of the preceding offer (No. 2), as the
above works would, according to the letter, only be commenced after the completion of
the surveys and the location (within the Province) of the whole line along which they
are proposed to be constructed. The fact is known to Your Lordship, that the road
here meant is a waggon road intended, for a time, at least, to supply the place of the
railway. A personal knowledge of the country justifies me in stating that a very large
portion of the £50,000 or £60,000 required for its construction would be money simply
thrown away. I can also unhesitatingly state that the road would, even as a temporary
substitute for the railway, be wholly unacceptable to the Province at large, including
the farmers and producers of the " interior," in whose interests, and for whose benefit,
it is alleged that the offer is specially made. For the transport of supplies, and-to meet
engineering necessities along the line, as railway works progress, a merely passable road
is necessary, and must be constructed; this, in fact, is all that is required. The telegraph
line (when finished) would, doubtless, be useful, but its construction is a question which
should be treated independently of the Railway Agreement. The railway is what is
required, and the people of the Province would prefer seeing the time and money, which
are proposed to be expended on the above works, appropriated to the larger and
infinitely more beneficial enterprise.
No. 4. When " the surveys and road on the mainland can be completed, there
shall be in each and every year . . . during the construction
of the railway, a minimum expenditure upon the works of construction
within the Province of at least 1,500,000 dollars;" and the Dominion " will
proceed from the very first with all the works of construction," on the
mainland, "that their engineers could sanction."
The expenditure above proposed may be considered, first, in relation to its amount;
and next, with reference to the date of its commencement. The amount falls far short
of what British Columbia has been led to expect. The cost of the line in British Columbia has been roughly estimated at 35,000,000 dollars (£7,000,000). Assuming this
estimate to be correct, and that ten years would see the completion of the railway, the
Province, in accepting the Terms of Union, had a fair expectation of an average yearly
expenditure within her limits of, say, 3,500,000 dollars (£100,000). After a delay of over
three years with its consequent loss to the Province, it is now proposed by the letter
that this amount shall be reduced to the sum of 1,500,000 dollars (£300,000). Again,
dividing the whole cost 35,000,000 dollars (£7,000,000) by this sum, a period of twenty-
three and a half years would be obtained as the time required for the completion of the
Provincial section of tho line alone, and this period would be only computed from the
date when expenditure would be commenced, and not from the date of the letter. It is
true that the expenditure proposed is to represent a minimum outlay, which, after
several years, might for obvious reasons increase with the progress of the work, but I
submit that, in estimating the value of this, or of any similar proposal, the actual figures
given—and not contingent amounts which might never be spent—must be the basis of
calculation.
Moreover, not only is the proposed expenditure inadequate, but the period when it
is to be begun is left largely open to doubt. The letter states that the expenditure will
follow the completion, " along tho whole length of the railway in the Province," of the
waggon road mentioned in offer No. 3. The completion of this road, in turn, has to depend
upon the completion of all the surveys, and upon the location of the whole line on the mainland (see offer No. 2); and the completion of these surveys and the location of this
line are, in point of time, wholly left open to uncertainty. It is stated, that from the
"very first" construction work on the'mainland will be done at such places as the
sanction of the Engineers will warrant; but this sanction will naturally be deferred until
the expenditure which has been proposed to cover construction work generally should be
commenced.    Taken throughout no offer could well be more indefinite than the above.
Adding all the uncertainties mentioned to the fixed period of twenty-three and a-
half years (or even to a reduced period), it would appear that the above offer may be
described as one for the postponement of the completion of the line within the Province
for a lengthened period, possibly until some time in the next century.
Your Lordship will observe—what I must consider an important matter—that all
the preceding offers refer and are strictly confined to the British Columbian portion of
the railway. The letter is wholly silent as to the extension of the line beyond the
eastern frontier of the Province. British Columbia is thus by implication virtually
requested to surrender one of the elements most important to her in the contract,
namely, the right to insist upon all rail communication with the Eastern Provinces.
I shall now, as proposed, make a few comments upon certain statements and
admissions contained in the letter. Probably the most important of the former is the
statement, that the Dominion Government "are advised by their engineers that the
physical difficulties are so much greater than was expected, that it is an impossibility to
construct a railway within the time limited by the Terms of Union, and that any
attempt to do so can only result in wasteful expenditure and financial embarrassment."
Upon this point the Provincial Government are without any information save what is
afforded by the last Report, as published, of the Chief Engineer of the Dominion Government. A reference to this Report would load the reader to a rather contrary conclusion to that above expressed. On page 34, section 5, the Chief Engineer makes the
following statement:—"It may indeed be now accepted as a certainty that a route has
been found generally possessing favourable engineering features, with the exception
of a short section approaching the Pacific Coast; which route, taking its entire length,
including the exceptional section alluded to, will on the average show lighter work, and
will require less costly structures than have been necessary on many of the railways
now in operation in the Dominion." It is worthy of notice that this Report, so favourable to the enterprise, is dated only some four months prior to the date of the letter now
under discussion. During the interval between these dates, all surveys in the Province
had been suspended.
I may further remind your Lordship that the Charter for the construction and completion of the railway in ten years from 1871, according to the Terms of Union, was
keenly competed for by two separate combinations, including men of great railway
experience, large capital, and high position in the Dominion. These Companies,
apparently, did not consider the undertaking to make the railway within the stipulated
time impracticable. On the contrary, up to February, 1873, so eager was the competition,
and. so powerful were the organizations in point of wealth, influence, and ability, that
the Dominion Government decided to give the charter to neither; and, upon the two
Companies failing to amalgamate, as suggested by the Government, the Government,
under certain powers conferred by Parliament, formed a new Company, based upon the
principle that each Province should be represented in the undertaking. To this new
Company a charter was granted on the 5th of February, 1S73. With the political or
other causes which subsequently led to the surrender of this charter it is not my duty
to deal. Tho strong fact remains that two responsible and rival companies were willing,
and a third undertook, to construct a through-line of railway to connect the east and
west of tho Dominion in eight years from February 1873. Neither in the Prospectus of
the successful Company nor in the voluminous correspondence'which took place previously between the two unsuccessful Companies on the subject of their respective claims
to the charter, and of their proposed amalgamation, was any doubt expressed as to the
possibility of fulfilling this time obligation, Had such a doubt existed, it is fair to infer
that the Dominion Government would have requested the assistance of the Province to
remove it.    No such request was, however, made.
With respect to the statement before your Lordship that the chartered Company
considered an extension of four years necessary to place the financial success of the
enterprise beyond doubt, the Provincial Government are without any information save 208 Railway Papers. 1880
what is contained in, or may be inferred from, the last paragraph of section 8 of the
Charter granted to the Company, which reads as follows:—The Company " shall complete the whole railway within ten years from the said 20th of July, 1871, unless the
last mentioned period shall be enlarged by Act of Parliament, in which case the Company shall complete the whole railway within such extended period." Admitting, for
the sake of argument, however, that such extension of four years was deemed necessary,
the completion of the line would not have been deferred beyond 1885. The extract
already quoted from the Engineer's Report, dated, as it is, about twelve months after
the date of the Charter, and made after a further knowledge of the country had been
acquired, tends strongly to confirm the views of the respective Companies that the completion of the railway was practicable in 1881, or at the furthest in 1885.
The value of the above facts and correspondence is material as showing, in the first
place, that it was considered all important that a definite period should be assigned for
the execution of a work upon which Confederation hinges; and in the next place, that
1881, or at most 1885, was a reasonable definition of that period.
The Province, after all her disappointments, above all things desires that the
"prompt commencement, continuous prosecution," and early completion of the railway
shall be definitely assured or, in the language of the letter, be "guaranteed." The
Provincial Government, therefore, strongly, but respectfully, resist the contention of the
Dominion Government that the commencement, prosecution, and completion of the line
shall be left open to a doubtful and indefinite period.
The further opening statement in the letter, that the Dominion Government are
willing "to enter into additional obligations of a definite character for the benefit of the
Province " may be said to have been disposed of, as the nature and character of these
" obligations " have, in the analysis made of the offers, been already examined. I shall,
therefore, pass on to what I have termed the admissions in the letter. The most important of these is an admission which may be inferred from the offer made by the
Dominion Government to " commence railway construction immediately from Esquimalt
to Nanaimo." Hero it is admitted that the Dominion Government were in aposition, at
least in May last (the date of the letter), if not before, to have begun the railway in the
Province. There is, and has been, therefore, no excuse for delay in pushing forward the
work.
Of scarcely less importance is a second admission, which reads as follows: " to a
country like British Columbia it is conceded, however, to be an important point that
not only the prompt and vigorous commencement, but also the continuous prosecution
of the work of construction within the limits of the Province should be guaranteed."
To these two admissions may be added a third and last: the Dominion Government,
while conceding that railway construction should be commenced at the seaboard of the
Province, consider it most important that every effort should be made by them to push
forward the construction of the railway on the mainland, in order that the legitimate
advantages of expenditure should, as far as possible, fall into the hands of the farmers
and producers of the interior.
This is an object which the Provincial Government have much at heart, and
strongly desire to see realized.
With the clear and just sense which the Dominion Government thus appear to have
of what is due to the Province; with their full appreciation, on the one hand, of the
wants of the interior, and, on the other, of the requirements of the Island, it might have
been expected that they would, as " a Government responsible for the progress of both
shores of the Continent," at least have given some more definite as well as some practical meaning to their expressions of solicitude for the welfare of the people of the
Province.
I have thus dwelt upon the letter at considerable length, as your Lordship's attention has been specially directed to it in connection with tho present case. I conceive
the following to be a synopsis of its offers and conditions: Canada will commence, on
the Island, immediate construction of the railway at Esquimalt, and finish about 60
miles of it (time of completion indefinite). On the mainland, she will prosecute the
surveys for the remainder of the line, and finish these surveys (time also indefinite).
She will thereafter " locate " the line falling within the Province (time also indefinite).
When this can be achieved, she will make, along f,his "located" line, a waggon road 44 Vic. Railway Papers. 209
(which the Province does not want), and a telegraph line (which the Province has
not asked for), and will carry the latter across the Continent (time of completion of
both road and telegraph line indefinite). Ultimately, after the completion of the surveys
and of the road, but not before, Canada will begin, and will continue railway work in
the Province, and spend thereon, year by year, not less than £300,000. (Whether this
sum will include the Esquimalt line or not is doubtful. It is the only expenditure
offered. As I have shown your Lordship, Canada thus proposes to ensure to the Province the completion of the line within her limits in twenty-three and a half years, or
less, dating from the unknown period at. which the offered expenditure can be commenced). Canada will do all this work " in the shortest time practicable," a phrase a
shade stronger than the words " with due diligence," three words, the construction of
which has given rise to much doubt, and to much painful litigation. In consideration of
these offers (if accepted), British Columbia shall—1st, abandon all claim to the completion of the Canadian Pacific Railway within a definite time; and, 2ndly, shall
(virtually, though not quite so expressed) surrender her right to, and interest in, tho
completion of about 2,000 miles of the line necessary to connect tho eastern frontier
with eastern Canada. Apart from the very objectionable features of the last two conditions, the indefinite character of the above proposals made to the Province is in marked
contrast to the statement of the Dominion Government that, " to a country like British
Columbia," it is important that the early completion of the railway within her limits
should be insured; and, therefore, that a guarantee should be given by the Dominion
Government for its "prompt commencement" (which depends on the prompt completion
of the surveys), and also for " its continuous construction " (which depends on yearly
specific expenditure).    This concludes my remarks upon the letter.
I have endeavoured to place before your Lordship a full history of the position of
British Columbia with respect to Confederation. A very unsatisfactory state of affairs
has been disclosed, if the question be regarded simply as a question between the Dominion and one of her Provinces. On the part of the Dominion there have been delays,
default, and avowal of default, followed by offers and conditions such as I have described.
The peculiar situation of British Columbia—her remoteness—her weak political
position—her dependence on the good faith of the Dominion—the hopes that have been
held out and deferred—the grievous loss that has ensued—the consequent utter prostration of her interests, all these give her claims upon Canada, which the present
Dominion Government have, as already shown, to a certain extent acknowledged—in
words. These claims the Provincial Government hope, will not be overlooked by your
Lordship in considering the reasonable measure of justice to which the Province is
entitled under the Terms of Union. The Province has not expected anything that is
unreasonable, and does not do so now. It is her urgent desire that matters should be
forthwith placed on a fair business-like footing, and above all, on a footing of certainty,
with proper safeguards to ensure that certainty, so that a good and cordial understanding
may be restored and not again be disturbed.
I have, &c,
/ (Signed)        Geo. A. Walkem,
President of the Executive Council of British Columbia.
No. 116.
Mr. Herbert to Mr. Walkem.
Downing Street,
17th November, 1874.
Sir,—I am directed by the Earl of Carnarvon to transmit to you a copy of a
despatch, which, after fully considering the representations made to him on the part of
the Dominion Government and by yourself, his Lordship has addressed to the Earl of
Dufferin, on the subject of the Canadian Pacific Railway. As this despatch contains a
full explanation of the conclusions at which Lord Carnarvon has arrived, his Lordship
does not feel it necessary to enter, on the present occasion, into any lengthened examination of the various points which you have pressed upon his notice from time to time. 210
Railway Papers.
1880
It will be a source of deep sutisfaction to Lord Carnarvon if the good feeling
between Canada and British Columbia, to the maintenance of which you have contributed by the temperate and reasonable manner in which you have urged the claims
of your Province, is permanently confirmed by the aid of his intervention.
I have, &c,
(Signed)       Robert G. W. Herbert.
No. 117.
The Earl of Carnarvon to the Earl of Dufferin.
I
Downing Street,
November 17th,
1874.
My Lord,—I duly received your despatch of the 18th September, enclosing an
Order in Council, setting forth the views of your Ministers as to the proposals contained
in my despatch of the 16th August for the settlement of the controversy between
Canada and British Columbia, respecting the Pacific Railway. I subsequently again
saw Mr. Walkem, and at his request I have delayed the announcement of the terms
which, in my opinion, may properly be laid down as fair and reasonable, until the
receipt of a further written communication from him, which has now reached me, and
a copy of which I enclose.
The statements thus placed before me are so clear and complete as to assist me
materially in appreciating the position in which the question now stands, and in judging
without hesitation what modification of the original terms should be adopted. And I
would here express my satisfaction at the temperate and forbearing manner in which
points involving most important consequences have been argued on both sides, and the
pleasure which I feel in being able to think that asperity of feeling or language may
have been, in some degree, avoided through the opportunity of submitting the whole
case to the independent judgment of one who may at least claim to have the interests
of both parties equally at heart.
I explained very fully in my despatch of the 16th August the opinion which I
entertained on each of the principal questions at issue, and I need now add but little to
the simple statement of my decision. 'That decision is necessarily, as both parties are
aware, in the nature of a compromise, and as such it may perhaps fall short of giving
complete satisfaction to either. If, on the one hand, your Ministers, as you inform
me, consent with reluctance to the further concessions which, at an earlier stage, I
suggested, they will not, on the other hand, fail to bear in mind that even after those
concessions are made, British Columbia will receive considerably less than was promised
to her as the condition of entering the Dominion. I prefer rather to reflect that, under
the amended terms now to be established, British Columbia will, after all, receive very
great and substantial advantages from its union with Canada, while the lominion will
be relieved of a considerable part of those obligations which were assumed in the first
instance without a sufficient knowledge of the local conditions under which so enormous
and difficult an undertaking was to be carried into effect, and to fulfil which would
seriously embarrass the resources of even so prosperous a country as Canada.
Adhering, then, to the same order in which, on the 16th August, I stated the principal points on which it appeared to me that a better understanding should be defined, 1
now proceed to announce the conclusions at which I have arrived.    They are:—
1. That the railway from Esquimalt to Nanaimo shall be commenced as soon as
possible, and completed with all practicable dispatch.
2. That the surveys on the mainland shall be pushed on with the utmost vigour.
On this point, after considering the representations of your Ministers, I feel that I have
no alternative but to rely, as I do most fully and readily, upon their assurances that no
legitimate effort or expense will be spared, first, to determine the best route for the line,
and, secondly, to proceed with the details of the engineering work. It would bo distasteful to me, if, indeed, it were not impossible, to prescribe strictly any minimum of
time or expenditure with regard to work of so uncertain a nature; but, happily, it is
equally impossible for me to doubt that your Government will loyally do its best in
every way to accelerate the completion of a duty left freely to its sense of honour and
justice. 44 Vic.
Railway Papers.
211
3. That the waggon road and telegraph line shall be immediately constructed.
There seems here to bo some difference of opinion as to tho special value to the Province of the undertaking to complete those two works; but after considering what has
been 'said, I am of opinion that they should both bo proceeded with at once, as indeed is
suggested by your Ministers.
4. That $2,000,000 a-year and not $1,500,000, shall be the minimum expenditure on
railway works within the Province from the date at which the surveys are sufficiently
completed to enable that amount to be expended on construction. In naming this
amount I understand that, it being alike the interest and the wish of the Dominion
Government to urge on with all speed the completion of the works now to be undertaken, the annual expenditure will be as much in exccess of the minimum of $2,000,000 as
in any year may be found practicable.
5. Lastly, that on or before the 31st December, 1890, the railway shall be completed
and open for traffic from the Pacific seaboard to a point at the western end of Lake
Superior, at which it will fall into connection with the existing lines of railway through
a portion of the United States, and also with the navigation on Canadian waters. To
proceed at present with the remainder of the railway extending, by the country northward of Lake Superior, to the existing Canadian lines, ought not, in my opinion, to be
required, and the time for undertaking that work must be determined by the development of settlement and the changing circumstances of the country. The day is, however,
I hope, not very distant when a continuous line of railway through Canadian territory
will be practicable, and I therefore look upon this portion of the scheme as postponed
rather than abandoned. ,	
In order to inform Mr. Walkem of the conclusions at which I have arrived, I have
thought it convenient to give him a copy of this despatch, although I have not communicated to him any other part of the correspondence which has passed between your
Lordship and me.
It will, of course, be obvious that the conclusion which I have now conveyed to you
upholds, in the main, and subject only to some modifications of detail, the policy adopted
by your Government with respect to this most embarrassing question. On acceding to
office your Ministers found it in a condition which precluded a compliance with the
stipulations of Union. It became, therefore, their duty to consider what other arrangements might equitably and in the interests of all concerned be substituted for those
which had failed. And in determining to supplement the construction of some part of
the new railway by that vast chain of water communications which Nature might seem
to have designed for the traffic of a great country, I cannot say that they acted otherwise than wisely. I sincerely trust that the more detailed terms which I have now laid
down as those on which this policy should be carried out will be found substantially in
accordance with the reasonable requirements of the Province, and with that spirit of
generous and honourable adherence to past engagements which ought in an especial degree
to govern the dealings of a strong and populous community with a feebler neighbour,
and which I well know to be the characteristic of all parties and statesmen alike within
the Dominion of Canada.
■    I have, &c,
(Signed)        Carnarvon.
^J
No. 118.
The Governor- General to the Earl of Carnarvon.
(No. 313.) Ottawa, 18th December, 1874.
Mr Lord,—I have the honour to transmit to your Lordship a copy of an Order of
the Privy Council, in which my Ministers convoy to your Lordship their best acknowledgment for the pains and trouble you have been good enough to take in promoting the
settlement of the difference which has arisen between British Columbia and the Government of the Dominion.
I haf'e;&c.,
(Signed)       Dufferin. 212 Railway Papers. 1880
No. 119.
Report of the Privy Council, approved by the Governor-General in Council on the
18th December, 1874.
The Committee of Council have had under consideration the despatch of the Right
Honourable Lord Carnarvon, Secretary of State for the Colonies, of November 17th,
conveying a statement of the new terms with British Columbia, which, in his Lordship's
opinion, may properly be laid down as fair and reasonable concerning the construction
of the Pacific Railway.
In the minute of July 23rd, the Government of the Dominion advised that his Lordship should be informed of their willingness to leave it to him to say whether the
exertions of the Government, the diligence shown, and the offers made, were, or were
not, fair and just, and in accordance with the spirit of the original agreement, seeing it
was impossible to comply with the letter of the Terms of Union in this particular.
The conclusion at which his Lordship has arrived " upholds," as he remarks, in the
main, and subject only to some modifications of detail, the policy adopted by this Government on this most embarrassing question.
The minute of Council of September 17th contained a statement of reasons showing
why some of these modifications should not be pressed; but the Government, actuated
by an anxious desire to remove all difficulties, expressed a willingness to make these
further concessions rather than forego an immediate settlement of so irritating a question,
as the concessions suggested might be made without involving a violation of the spirit
of any Parliamentary resolution, or the letter of any enactment.
The Committee of Council respectfully request that your Excellency will be pleased
to convey to Lord Carnarvon their warm appreciation of the kindness which led his
Lordship to tender his good offices to effect a settlement of the matter in dispute; and
also to assure his Lordship that every effort will be made to secure the realization of
what is expected.
Certified.
(Signed)       W. A. Himsworth,
Clerk, Privy Council.
No. 120.
The Earl of Carnarvon to the Governor- General.
(Canada.—No. 4.) Downing Street,     *
4th January, 1875.
My Lord,—I have the honour to acknowledge the receipt of your despatch of the
18th of December, forwarding to me a copy of an Order of the Dominion Privy Council
expressing the acknowledgments of the Government of Canada for the services which I
have been fortunate enough to render in promoting the settlement of the differences
which had arisen between British Columbia and the Government of the Dominion with
respect to the construction of the Pacific Eailway.
It has been with great pleasure that I have received this expression of their opinion.
I sincerely rejoice to have been the means of bringing io a satisfactory conclusion a
question of so much difficulty; of removing, as 1 trust, all ground of future misunderstanding between the Province of British Columbia and the Dominion, and of thus
contributing towards the ultimate completion of a public work in which they, and indeed
the whole Empire, are interested.
I have, &c,
(Signed)       Carnarvon.
No. 121.
Telegram.
Mr. Walkem to the Provincial Secretary.
Ottawa,
January 13th, 1875.
Premier agrees to commence Island location in March, prosecute work vigorously,
and prosecute Mainland surveys vigorously. In the interim last Summer's work will be
plotted.    Eailway iron has been ordered for Columbia.    Carnarvon's decision adopted. 44 Vic. Railway Papers. 218
Legislation upon decision deemed unnecessary by Premier. He manifested very sincere
good-will towards Columbia, and received mo with generous spirit. Alaska already
attended to.    Have not settled other business with him.    Will telegraph my departure.
(Signed)    - Geo. A. Walkem.
No. 122.
Mr. Walkem to the Secretary of State for Canada.
Ottawa,
January 23rd, 1875.
Sir,—The Provincial Secretary of British Columbia has requested me, by telegram,
to ask you to be good enough to officially communicate, at your earliest convenience,
the decision upon Railway matters given by Lord Carnarvon on the 17th November last.
The Government of the Province would appear to have had no official intimation
upon the subject; I shall therefore feel obliged to you if you will cause the necessary
despatches to be forwarded on Monday next, the 25th instant.
1 have, &c,
(Signed)       Geo. A. Walkem.
No. 123.
Telegram.
Lieutenant-Governor Trutch to the Earl of Carnarvon.
This Government having received no reply to Railway Memorial, and Legislature
being in Session, urgently request to be informed, by telegraph, whether official reply
has yet been sent, or may be expected; and whether Canada accepts decision in your
despatch handed Mr. Walkem.    No communication from Ottawa on subject.
(Signed) Joseph W. Trutch.
No. 124.
Telegram.
Mr. Walkem to the Under Secretary of State for the Colonies.
3rd March, 1875.
Authorize Government to use copy Railway despatch you gave me. You stated,
and your private letter says, communication through Governor-General, and copy handed me for own convenience.
(Signed) Geo. A. Walkem,
No. 125.
Telegram.
The Earl of Carnarvon to the Lieutenant-Governor of British Columbia.
March 4th, 1875.
My despatch to Governor-General, of November 17th, was officially communicated
to Mr. Walkem as answer to Railway Memorial, and all other representations. It may
of course be published.   Dominion Government accepts arrangement.
(Signed)      Carnarvon. 214 Railway Papers. 1880
No. 126.
Telegram.
The Provincial Secretary to Hon. A. DeCosmos.
March 2nd, 1875.
Ask Mackenzie to forward Railway despatches. Walkem told they would be sent
through Dominion Government, and was only informed of the result as matter of
courtesy.   Please send some answer immediately.
(Signed) John Ash,
No. 127.
Telegram.
Hon. Mr. De Cosmos to the Provincial Secretary.
Ottawa,
March 4th, 1875.
Despatches will be sent; printed copies forwarded.
(Signed) A. DeCosmos.
No. 128.
Report on the subject of the Mission of Mr. Walkem, Special Agent and Delegate of the
Province of British Columbia to England, with regard to the non-fulfilment by Canada of
the Railway Agreement of the Terms of Union.
To the Honourable Joseph William Trutch. Lieutenant-Governor of British Columbia, &c,
&c, &c.
May it please Your Honour:—
I have the honour to report that, in pursuance of your instructions to me to proceed
to England as the Delegate of your Government, there to present to Her Majesty's
Government a Petition from your Executive Council complaining of tho breach by the
Dominion of the Railway Clause of the Terms of Union, and to advocate the cause of
the Province, as set forth in such Petition, I left Victoria for Ottawa on the 16th day of
June, 1S74, and arrived at the latter City on the 29th of the same month. ' Upon the
following day, 1 made a personal application to the Secretary of State for the Order in
Council necessary to place me in official communication with Her Majesty's Principal
Secretary of State for the Colonies. I learned that owing to the absence from town of
His Excellency the Governor-General, some delay in providing me with it would unavoidably occur. On the 4th July, I addressed Mr. Mackenzie upon the same subject,
and, in reply, received his assurance that a special messenger had been dispatched to
procure His Excellency's signature to the Order, and that upon his return, it would be
handed to me (see Nos. 77. 78, pp. 178, 179.) In answer to my further letter of the llth,
the Order was sent to me, and after its receipt, I proceeded to England by the first
Steamer which left Quebec,
On the evening of the 27th of July, I arrived in London, and on the 28th reported
the fact to the Colonial Office, and requested the favour of an interview with Lord Carnarvon (see No. 105, p. 192.) In reply I was informed that His Lordship would grant
me an audience on Friday, the 31st July (see No. 106, p. 193), and on that day I accordingly waited upon His Lordship and presented the Petition (see No. 74, p. 174) which
accompanies this Report. At a long interview which immediately followed, a full
statement of the case of the Province was made by me, and His Lordship was good
enough to state that if any further information was required by him, I should be notified
to that effect. 44 Vic Railway Papers. 215
My next interview took place with the Under Secretary of State, on the 6th of
August, in deference to his wishes, and several matters connected with the Petition
were then fully discussed. I may here state that the remarks and arguments offered
by me on both these occasions, as well as at all subsequent interviews upon the same
subject, are so fully given in substance in a letter which I addressed to Lord Carnarvon
on the 31st October (see No. 115, p. 202), that I think it unnecessary here to restate
them; indeed their repetition would only tend without advantage to burden this report.
I may add, however, what has been inadvertently omitted from this letter, that at my
first interview I respectfully urged that compensation should, as a matter of equity, be
given by the Dominion to the Province, for the very serious loss that the latter had
unquestionably sustained by the course which had been pursued by Canada; though, in
a strictly legal point of view, damages in such cases were, as I observed, treated as consequential, or, professionally speaking, as too remote to be computed or allowed.
It may here be convenient to allude to the very friendly offer of Lord Carnarvon to
act, under certain conditions, as arbitrator between the Dominion and Provincial
Governments (see No. 86, p 182). Mr. Sproat first informed me in August of the offer,
and of its acceptance by the Provincial Government. I heard nothing more of the
matter officially, and arbitration was not resorted to.
On the 16th August I received, from the Colonial Office, a written acknowledgment
(see No. 107, p. 193) of the receipt of the Petition, and also an intimation to the effect
that Lord Carnarvon considered that he had the Provincial case fully before him, but
that he did not anticipate that he would be able before the lapse of two or three weeks,
to decide upon the course he should pursue. At the end of that time I called at the
Colonial Office and was told that his Lordship and the Under Secretary of State were
absent from town. By the advice of the Acting Under Secretary, I wrote the annexed
letter of the 10th of September (see No. 113, p. 201), to which I received a reply on the
14th, stating in effect that no conclusion had been arrived at in the matter (see No. 114,
p. 202).
During September and October some further interviews took place, at the last of
which I stated that before the case was closed, I desired, as a matter of record, to put in
a letter expressive of the views and opinions wThich I had held, and of the arguments
which, from time to time, I had advanced at the several hearings which had been granted to me. This letter is that of 31st October {see No. 115, p. 202), to which I have
already invited your Excellency's attention.
. On the 13th of November a final interview was at my instance afforded me. I referred to the various points set forth in my last letter. Lord Carnarvon thereupon informed
me that in a few days he would state his views upon the whole question in writing, and
forward the despatch on the subject to Lord Dufferin for the information of both
Governments. At my special request; he was good enough to say that a copy would be
sent to me. This copy with its covering letter from Mr Herbert, was received by me
on the 18th November. On the following day I saw him at the Colonial Office, and
understood from him that the official despatches would reach your Excellency through
the usual channel.
I delayed my departure from England in the hope of securing further aid from the
Imperial Government for the construction of the Esquimalt Graving Dock. My negotiations in this direction were, I am happy to say, successful and will form tho subject of
a separate report.
On the 17th day of December I sailed from England, and reached Ottawa in the
beginning of January. I had conversations at different times with Mr. Mackenzie upon the
Railway and other Provincial business; and with a view of affording your Government immediate information upon some of these matters, I asked for and obtained Mr. Mackenzie's
authority, to state the substance of one of these conversations respecting the Railway
and the Alaska Boundary. This I have done in my telegram of the 13th of January last,
addressed to the Provincial Secretary (ses No. 121, p. 212). A copy of this message was,
on the same day, handed by me to Mr. Mackenzie for his private information. About a
week afterwards I learned that your Government had not received the official despatches
embodying Lord Carnarvon's conclusions upon the Railway question, and upon enquiry
at the Secretary of State's Office, I found that they had not been sent. I therefore requested Mr. Scott, the Secretary of State, by letter of Saturday the 23rd January, to
forward them by Monday's mail to Victoria (see No. 122, p. 213.)   On Monday 1 failed. 216 Railway Papers. 1880
to see him when I called at his office. The next day I was more fortunate, and he was
good enough to assure me that no further delay would occur in their transmission. I
shortly afterwards left Ottawa, and reached Victoria on the 18fh of last month.
Within the last week the several telegrams (see Nos. 123, 124, 125, 126, 127, pp. 213,
214,) which are appended hereto, have been sent and received upon the subject of the non-
arrival of these despatches. The telegram from Lord Carnarvon is especially valuable
as containing the only official intimation yet received that the Dominion Government has
consented to adopt and follow the recommendations offered by his Lordship in his
despatch of the 27th of last November.
Before closing this Report it will, no doubt, be as gratifying to Your Excellency to
learn, as it is pleasing to me to state, that I received from Lord Carnarvon and from the
Under Secretary of State for the Colonies a full and patient hearing; and every opportunity of placing the case of British Columbia in its true light and in all its bearings
before his Lordship was cordially afforded me.
I must also acknowledge, which I do with much pleasure, the able services rendered
by Mr. Sproat, the Agent-General of the Province; who upon the railway and all other
questions evinced untiring zeal in advancing the interests of British Columbia.
It is worthy of record, that apart from the immediate result of the appeal to
England, the Province attracted much attention from the prominence given to the
object of my mission. Applications, greatly outnumbering those of any former year, or
even number of years, were made at the office of the Agent-General during my stay in
London, for full information respecting British Columbia, and its suitability as a home
for intending settlers. The interest thus awakened in England has also been extended,
in a considerable degree, to the Eastern Provinces; and I can state, from a reference to
Mr. Sproat's books, that a number of immigrants, many of whom are in easy circumstances, will arrive here within the next few months.
I may be pardoned for adding that my mission differed but little—if at all—from
missions of a similar character. It was not unattended with difficulties, as j'our Excellency can imagine; nor was my position one of freedom from labour and anxiety in the
effort to discharge my duty towards the Province. Questions of a complex and intricate
nature were, upon the reference to England of the issues between the two Governments,
directly involved in the appeal itself. Further complications on my part would not
onfy have been dangerous but mischievous.
I therefore, during my several interviews in England and at Ottawa, not only re*
frained from causing irritation between the Dominion and its Province, but endeavored on
all occasions to allay it wherever circumstances pointed to its existence. As your Excellency will observe from my last letter to Lord Carnarvon, I laboured—I hope not in
vain—to convince Eastern Canada that British Columbia, in the advocacy of her rights,
only sought to obtain a reasonable measure of justice without unduly pressing upon the
resources of the Dominion, of which she forms a part.
Happily, the grave differences which at one time threatened to create a serious
breach between tho Dominion and her Western Province are now matters of the past.
For my own part, I trust that I may hereafter have cause to look back with satisfaction upon the settlement which has just been effected, and to reflect with sincere
pleasure that under your Excellency's directions it fell to my lot in 1874 to be instrumental in promoting the welfare and advancement of the people of British Columbia.
I have the honour to be,
Your Excellency's most obedient servant,
Attorney-General's Office, Geo. A. Walkem.
8th March, 1875.
No. 129.
The Under Secretary of State to the Lieutenant-Governor.
Ottawa, 25th March, 1875.
Sir,—1 am directed to transmit to you herewith, for the information of your Government, a copy of an Order of His Excellency the Governor-General in Council
respecting the conveyance by the Government of British Columbia to the Government
of the Dominion of certain land in connection with the construction of the proposed
railway from Esquimalt to Nanaimo in that Province.
I have, &c,    (Signed)   Edouard J. Langevin,  Under Secretary of State. 44 Vic. Railway Papers. 217
No. 130.
Report of the Privy Council, approved by the Governor-General on the 25th March, 1875.
On a memorandum, dated 25th March, 1875, from the Honourable the Minister of
Public Works, reporting for the consideration of Council, that prior to the commence
ment of any works of construction on the proposed Railway from Esquimalt to Nanaimo,
which the Dominion Government have agreed to build under the arrangement made
through Lord Carnarvon, at the instance of British Columbia, it is essential that the
Province of British Columbia should convey by legislation to the Dominion Government
in trust, to be appropriated in such manner as the Dominion Government may deem
advisable, a similar extent of public lands along the line of railway before mentioned
(not to exceed twenty miles on each side of the said line) as may be appropriated for
the same purpose by the Dominion from the public lands of the Northwest Territories
and the Province of Manitoba, as provided in the Order in Council, Section 11, admitting
the Province of British Columbia into Confederation; and that it is desirable that the
British Columbia Government should be at once notified that it will be necessary during
the present Session of the Legislature of that Province to pass an Act so to appropriate
and set apart lands to this extent and for this purpose, the grant to be subject otherwise
to all the conditions contained in the said llth Section of the Terms of Union.
The Committee concur in the above Report of the Minister of Public Works, and
recommend that the British Columbia Government be notified accordingly.
Certified,
(Signed) W. A. Himsworth, Clerk Privy Council.
A.D. 1875.
No. 131.
No. 13, Statutes of British Columbia, 1875.
An Act to authorize the grant of certain Public Lands to the
Government of the Dominion of Canada, for Railway
purposes.
[Assented to 22nd April, 1875.]
WHEREAS it is expedient to provide for the grant of public lands to preamble,
the Dominion Government, required for a Railway between the
Town of Nanaimo and Esquimalt Harbour:
Therefore Her Majesty, by and with the advice and consent of the
Legislative Assembly of the Province of British Columbia, enacts as
follows:—
1. From and after the passing of this Act there shall be and there is Grant of public lands
hi - -a.   j j.    ii.      i-,       •   •        .-, ,     ,,       ,, n to Dominion for Railway
ereby granted to the Dominion Government, for the purpose of  con-between Esquimalt and
structing, and to aid in the construction of a Railway between the Town Nana"n°-
of Nanaimo and Esquimalt Harbour, in trust to be appropriated in such
manner as the Dominion Government may  deem advisable,  a  similar
extent of public lands along the line of Railway before mentioned (not
to exceed 20 miles on each side of the said line) as may be appropriated
for the same purpose by the Dominion from the public lands of the
Northwest Territories and the Province of Manitoba, as provided in
the Order in Council,  Section  11, admitting the Province of British
Columbia into Confederation; such grant to be subject otherwise to all
the conditions contained in the said llth Section of the Terms of Union.
2. All and every the provisions of the "Railway Act, 1868," passed Dominlon.. Railway
by the Parliament of Canada, in the 31st year of the Reign of Her Act, lses," to form part
Majesty, and Chapter 68, including any Acts amending the same, in soo£thlsAct-
far as the provisions therein contained are applicable to the said Railway or any section thereof, and are not inconsistent with or repugnant
to the provisions of this A.ct, shall, mutatis mutandis, be considered as
forming part of this Act, and are hereby incorporated herewith.
3. In applying the said Railway Act to the said Railway or any interpretation clause,
portion thereof—
16 218
Railway Papers.
1880
A.D.  1875.
The expression "tho Railway" shall be construed as meaning the said
Railway, or any section thereof, the construction of which has been
undertaken by any contractors:
The expression " the Company" shall mean the contractors for the
same; and such contractors shall have all the rights and powers
vested in companies by the said Act:
The words " Superior Court" shall be held to mean the Supreme
Court of British Columbia:
" Clerks of the Peace" shall be held to mean Chief Commissioner of
Lands and Works, Commissioner, and Government Agent, respectively:
"Registry Offices" shall mean the Land Registry Office, Victoria, or
any other office named by tho Dominion Government.
" Clerk of the Court" shall be held to mean tho Registrar of the
Supreme Court.
As to maps, plans, etc.
4. As respects the said Railway, the eighth section of the " Railway
Act, 1868," relating to Plans and Surveys, shall be subject to the following provisions:—
(a.) It shall be sufficient that the map or plan and book of reference
for any portion of the line of the Railway, be deposited in the office of
the Minister of Public Works of Canada, and at such other places as the
said Minister of Public Works may order; and any omission, mis-statement, or erroneous description of any lands therein may be corrected
by the contractor with the consent of the Minister, and certified by him;
and the Railway may then be made in accordance with such certified
correction.
(&.) The llth sub-section of the said 8th section of the Railway Act
shall not apply to any portion of the Railway passing over ungranted
lands of the Crown, or lands not within any surveyed township in the
Province; and in such places, deviations not exceeding five miles from
the line shown on the map or plan, approved by the Minister of Public
Works, shall be allowed, on the approval of the engineer employed by
the said Minister, without any formal correction or certificate; and any
further deviation that may be found expedient may be authorized by the
Governor in Council, and the Railway made in accordance with such
deviation.
(c.) The map or plan and book of reference made and deposited in
accordance with this section, after approval by the Dominion Government, shall avail as if made and deposited as required by the said "Railway Act, 1868," for all the purposes of the said Act, and of this Act;
and any copy of or extract therefrom, certified by tho said Minister or
his deputy, shall be received as evidence in any court of law in the
Province of British Columbia.
(d.) It shall be sufficient that a map or profile of any part of the completed Railway be filed in the office of the Minister of Public Works of
Canada, and in the office of the Chief Commissioner of Lands and
Works, Victoria.
As to incumbrances on
lands.
5. The provisions made in sub-sections 30, 31, and 32, of section 9 of
the "Railway Act, 1868," as to incumbrances on lands acquired for the
said Railway, shall apply to lands so acquired in the Province of British
Columbia; the Supi'eme Court of the Province shall, as to such lands,
be held to be the Court intended in the said sub-sections.
Judicial powers. 6.   In the Province of British Columbia any Judge of a Superior or
County Court shall have all the powers given by tho said Act to a
County Judge.
shortTitie 7. This Act may be cited as the "Esquimalt and Nanaimo Railway
Act, 1875." 44 Vio. Railway Papers. 219
No.   132.
The Under Secretary of State to the Lieutenant-Governor.
Ottawa, 10th November, 1875.
Sir,—I am directed to transmit to you, for the information of your Government, a
copy of an Order of His Excellency the Administrator of the Government in Council, on
the subject of the difficulties existing between the Government of the Dominion and that
of British Columbia, arising out of the agreement, made in 1871, for the construction of
the Canadian Pacific Railway.
I beg to express my regret at the delay which has occurred in forwarding this
document. It arose from the fact of the officer, whose duty it was to furnish a copy of
the Order in Council to this Department, for transmission to your Government, having
inadvertently omitted to do so.
I have, &c,
(Signed) Edouard J. Langevin,
Under Secretary of State.
No. 133.
Report of the Privy Council, approved by the Administrator of the Government, on
the 20th September, 1875.
The Committee of Council have had under consideration the difficulties arising out
of the agreement made in 1871, for the construction of the Canadian Pacific Railway.
Mr. Edgar's mission to British Columbia last year was based upon the view that the
conditions of that agreement were quite impracticable of fulfilment. The proposals submitted by him to the British Columbia Government were briefly that, the limitation of
time being given up, Canada should undertake that one million and a half of dollars
should be expended upon construction within that Province in each year after location,
and that the building of a waggon road along the line of the proposed railway construction should precede actual railway construction.
It was further proposed to build a Railway on Vancouver Island, from Esquimalt
to Nanaimo.
The propositions were either not considered by the Government of British Columbia,
or, if considered, they were rejected by them, and they subsequently appealed to the
Imperial Government, invoking their intervention. The result of this appeal was an
offer from the Right Honourable Lord Carnarvon, Secretary of State for the Colonies,
of his good offices to promote a settlement.
The Privy Council in their Minute of the 23rd July, 1874, advised " that Lord Car-
" narvon be informed they would gladly submit the question to him for his decision as
"to whether the exertions of the Government, the diligence shown, and the offers made,
" have or have not been fair and just, and in accordance with the spirit of the agree-
" ment." Lord Carnarvon in his Despatch of August 16th, acting upon this Minute, and
upon agreement on the part of British Columbia to abide by his decision, made certain
suggestions, of which the most important were—that the amount of yearly expenditure
within the Province, after location, should be not less than two millions of dollars; that
the period of completion should be the year 1890, and that the Railway from Esquimalt
to Nanaimo should be at once commenced.
The Canadian Government in their Minute of Council of September 17th, stated
"that while in no case could the Government undertake the completion of the whole
" line in tho time mentioned, and extreme unwillingness exists to another limitation of
" time, yet, if it be found absolutely necessary to secure a present settlement of the con-
"troversy by further concessions, a pledge may be given that the portion West of Lake
" Superior will be completed so as to afford connection by rail with existing lines of
" railway through a portion of the United States, and by Canadian waters during the
" season of navigation, by the year 1890, as suggested."
It was further agreed that after location, two millions should be expended yearly
upon construction in British Columbia, and that a Railway from Esquimalt to Nanaimo
should be built. 220 Railway Papers. 1880
It must be borne in mind that every step in the negotiations was necessarily predicated upon and subject to the conditions of the Resolution of the House of Commons,
passed in 1871, contemporaneously with the adoption of the Terms of Union with British
Columbia, subsequently enacted in the Canadian Pacific Railway Act of 1872, and subsequently re-enacted (after a large addition had been made to the rate of taxation) in the
Canadian Pacific Railway Act of 1874; that the public aid to be given to secure the
accomplishment of the undertaking "should consist of such liberal grants of land and
"such subsidy in money or other aid, not increasing the then existing rate of taxation, as
"the Parliament of Canada should thereafter determine."
This determination not to involve the country in a hopeless burden of debt is sustained by public opinion everywhere throughout the Dominion, and must of necessity
control the action Of the Government, and it cannot be too clearly understood that any
agreements as to yearly expenditure, and as to completion by a fixed time, must be
subject to the condition thrice recorded in the Journals of Parliament, that no further
increase of the rate of taxation shall be required in order to their fulfilment.
The sanction of Parliament to the construction of the proposed Railway from
Esquimalt to Nanaimo was necessarily a condition precedent to the commencement of
the work.
The other important features of the arrangement, namely the limitation of time for
the completion of a certain portion, and the specification of a yearly expenditure, were
deemed to be within the meaning of the Pacific Railway Act, 1874, subject, of course, to
the condition already mentioned, and which was referred to in the Minute of Council of
December 18th, 1874, when the Government " expressed a willingness to make those
' further concessions rather than forego an immediate settlement of so irritating a ques-
' tion, as the Concessions suggested might be made without involving the violation of
"the spirit of any parliamentary resolution or the letter of any enactment."
The proposed Railway from Esquimalt to Nanaimo does not form a portion of the
Canadian Pacific Railway as defined by the Act; it was intended to benefit local interests, and was proposed as compensation for the disappointment experienced by the
unavoidable delay in constructing the Railway across the Continent. The work is
essentially a local one, and there are obvious reasons against the Canadian Government,
under ordinary circumstances, undertaking the construction of such works, and in favour
of their being built, if at all, by virtue of Provincial action.
The Bill which the Government introduced into the House of Commons to provide
for building this Railway, evoked a considerable degree of opposition in that House
and in the country, and, although passed by the House of Commons, it was afterwards
rejected in the Senate, and thus there is imposed upon the Government the duty of considering some other method of meeting all just expectations of the people of British
Columbia, whose Government has not suggested to this Government any solution of tho
difficulty.
It would seem reasonable that the people of British Columbia should construct this
work themselves, or (if they think other local public works more advantageous) should,
in lieu of this, themselves undertake such other local public works, and that the compensation to be given them by Canada for any delays which may take place in the
construction of the Pacific Railway should be in the form of a cash bonus to be applied
towards the local Railway, or such other local works as the Legislature of British Columbia may undertake, Canada also surrendering any claim to lands which may have
been reserved in Vancouver Island for railway purposes.
The sum of $750,000 would appear to tho Committee to be a liberal compensation,
and the Committee advise that the Government of British Columbia be informed that
this Government is prepared to propose to Parliament at its next Session, the legislation
necessary to carry out the views contained in this Minute as to the construction of the
Pacific Railway and the -compensation to be given to British Columbia for delays in
such construction.
The Committee further advise that a copy of this Minute be transmitted to the Right
Honourable the Secretary of State for the Colonies.
Certified,
(Signed)        W. A. Hims.worth,
Clerk Privy Council, Canada, 44 Vic. Railway Papers. 221
Extract from the speech of the Hon. Mr. Blake, "Debates of the House of Commons
of the Dominion of Canada, 1880," vol. II., p. 1429.
".Shortly after the close of the Session (April, 1875) I entered the Administration
" upon a distinct understanding in reference to the Pacific Railway. That understanding
" was. that the Carnarvon terms having failed by reason of the action of Parliament, a
" moderate money compensation should be offered to the Province for past and future
" delays in the construction of the Pacific Railway."
No. 134.
The Lieutenant-Governor to the Secretary of State.
(No. 69.) Government House,
29th November, 1875.
Sir,—I have the honour to state that I received on the day before yesterday, and
have this day laid before my Executive Council, your Despatch of the 10th instant, and
the copy therewith transmitted, of an Order of His Excellency the Administrator of
the Government in Council, on the subject of the difficulties existing between the; Government of the Dominion and that of this Province, arising out of the agreement made
in 1871, for the construction of the Canadian Pacific.Railway.
I have, &c,
(Signed)       Joseph W. TrutOh,
No. 135.
The Lieutenant-Governor to the Secretary of State,
(No. 73.) Government House,
6th December, 1875.
Sir,—With reference to your Despatch of the 10th ultimo and the Order of His
Excellency the Administrator of tho Government in Council, a copy of which was therewith transmitted, on the subject of the existing difficulties between the Government of
the Dominion and that of this Province, arising out of the agreement for the construction of the Canadian Pacific Railway specified in the Terms of Union of British Columbia
with the Dominion, I have the honour to enclose herewith a copy of a Minute of my
Executive Council thereon, and to request you to lay the same before His Excellency
the Governor-General, and in accordance with the advice of my Ministers, expressed in
that Minute, I have to state, for the information of His Excellency, that the proposals
contained in tho above referred to Order of His Excellency the Administrator of the
Government arc respectfully declined by this Government, and to strongly urge that
the Railway agreement be carried out according to the Terms thereof.
I bog also to enclose a copy of a Despatch, which, upon the advice of my Ministers,
I have this day addressed to the Right Honourable Her Majesty's Principal Secretary
of State for the Colonies, forwarding to that Minister a copy of the Minute of my Executive Council, herewith transmitted.
I have, &c,
(Signed)       Joseph W. Trutch.
' No. 136.
Report of the Executive Council,", approved by the Lieutenant-Governor
on the 6th December, 1875.
The Committee of Council have carefully considered a Minute of the Honourable
the Privy Council of Canada, dated September 20th, 1875, proposing to this Government,
for their assent, certain alterations in the existing Railway Agreement between the
Dominion and this Province. 222 Railway Papers. 1880
The Committee dissent from many of the views expressed in the above Minute, and
see no reason for consenting to any variation of or departure from the Terms of the
Railway Agreement therein referred to. They therefore advise that the proposals contained in the Minute be unhesitatingly but respectfully declined by Your Excellency,
and that the Dominion Government be so informed; and further, that that Government
be strongly impressed with the absolute necessity of the Railway Agreement being
carried out, according to the terms thereof.
The Committee further advise that a copy of this Minute (if approved) be transmitted to the Right Honourable the Secretary of State for the Colonies.
Certified,
(Signed)       W. J. Armstrong.
Clerk Executive Council.
No. 137.
The Lieutenant-Governor to the Secretary of State for the Colonies.
Government House,
6th December, 1875.
My Lord,—I have the honour to transmit to Your Lordship, iu accordance with the
advice of my Ministers, a copy of a Minute of my Executive Council, expressing the
views of this Government on the proposals conveyed in the Order of His Excellency
the Administrator of the Government of tho Dominion in Council, on the subject of
the difficulties existing between the Government of the Dominion and that of British
Columbia, arising out of the agreement made in 1871 for the construction of the
Canadian Pacific Railway, a copy of which Order in Council has already been transmitted to Your Lordship, as this Government understands from the concluding paragraph
thereof.
I have, &c,
(Signed)       Joseph W. Trutch.
No. 138.
The Lieutenant-Governor to the Secretary of State.
(No. 2.) Government House,
8th January, 1876.
Sir,—With reference to my despatch to you, of the 6th ultimo, covering a copy of
a Minute of my Executive Council, expressing the views of this Government upon the
proposals conveyed in the Order of His Excellency the Administrator of the Government
in Council, transmitted in your despatch of the 10th November last, respecting the
existing difficulties between the Government of the Dominion and that of this Province,
arising out of the agreement for the construction of the Canadian Pacific Railway
specified in the Terms of Union of British Columbia with Canada, I have the honour to
enclose, for submission to His Excellency the Governor-General, a Minute of my
Executive Council, conveying certain further comments on this subject, which my
Ministers consider advisable to be urged in replication to the said Order in Council.
I have also to state that I have this day, upon the advice of my Ministers, forwarded
to Her Majesty's Principal Secretary of State for the Colonies, a copy of the said Minute
of Council, herewith transmitted in a covering despatch, of which a copy is appended
hereto. I have, &c,
(Signed) Joseph W. Trutch.
No. 139.
Report of the Executive Council, approved by the Lieutenant-Governor on the
4th January, 1876.
The Committee of Council have had before them the Minute of the Honourable the
Privy Council of Canada, of the 20th September, 1875, with its covering Despatch of the
10th November last, relative to the construction of the Canadiau Pacific Railway. 44- Vic. Railway Papers. 223
The general features of the above Minute are such, that this Government found no
difficulty in coming to a decision upon it. To avoid possibly prejudicial delays a reply
was promptly sent "unhesitatingly but respectfully declining" the proposals, and dissenting generally from the views contained in the Minute, it being'considered preferable,
in a matter of such importance, to leave for a further communication such comments as
the details of the Minute might seem to fairly challenge.
The Committee have now to remark that the Minute, at the outset, refers to Mr.
Edgar's letter, and gives a brief, but inaccurate statement of its proposals. It omits to
mention the offer of the Dominion Government to immediately construct the Telegraph
line in and beyond the Province; and in the next place it incorrectly states that that
Government proposed to build " a Railway " from Esquimalt to Nanaimo.
Mr. Edgar's letter, it will be found, expresses the inability of the Dominion to construct the Pacific Railway within the period stipulated. It therefore proposes that if
this time limit for the completion of the whole line be surrendered, the Dominion will,
immediately commence "that portion" which lies between Esquimalt and Nanaimo.
The language of the letter is that "they" (the Dominion Government) "propose to
" commence construction from Esquimalt to Nanaimo immediately, and to push that
"portion of Railway on to completion with the utmost vigour, and in the shortest
" practicable time."
This extract conveys but one meaning, viz.:—that the line between Esquimalt and
Nanaimo was regarded by the present, as it was by the past, Canadian Ministry, as a
"portion of" the main line.
It now appears from the published correspondence forwarded by the Dominion
Government to England, that in their Minute of the 18th August, 1874, they disavowed
Mr. Edgar's offer, inasmuch as they alleged (what is repeated in their present Minute)
that the Esquimalt line " does not form a portion of the " main line; that "it was in-
" tended to benefit local interests, and was proposed as compensation for the disappointment
" experienced by the unavoidable delay in constnicting the Railway across the Continent."
Of these changed views, and certainly unexpected statements, this Government had
no intimation until some time after the publication of the correspondence by the Canadian
Parliament. During the negotiations this correspondence was not communicated to this
Government, otherwise exception would have been taken at the time to several portions
of it, which are very objectionable.
The statement that the work in question was proposed as "compensation" is a
manifest error, for no such proposal was ever made or hinted at, as will appear by
reference to Mr. Edgar's letter. It is also, to a certain extent, inconsistent with the
subsequent request made by the Dominion Government to this Province on the 25th
March, 187 5, tor a conveyance (which was granted) of a belt of land along the line
between Esquimalt and Nanaimo, similar in extent to that prescribed by the Terms of
Union for the Pacific Railway, " and subject otherwise to all the conditions contained
" in the llth Section of the said Terms."
The Dominion Government were not entitled to the land, except under the "Terms
of Union." Their agreement with Lord Carnarvon gave them no new claim to it, if the
line was not to form part of the Pacific Railway.
It is further alleged in the Minute under consideration, that "the sanction of Parliament to the construction of the proposed railway between Esquimalt and Nanaimo
"was" (that is,-when Lord Carnarvon's settlement of 1874 was made,) " necessarily a
" condition precedent to its commencement;" while, on the other hand, the Premier, in
his place in the Commons, said, on the 5th March, 1875, after reading this Settlement to
the House:—
" The Terms recommended by Lord Carnarvon, and which we have accepted, are
" simply these : That, instead of one and a half millions, we propose to expend two millions
" a year within the Province of British Columbia, and wo propose to finish the railway con-
" nection through the Province and downward to the point indicated by the year 1890, being
" an extension of time of nine years. With respect to the question raised by my Hon-
" ourable friend from Souih Bruce, Imay say that I have nothing to ask from Parliament.
" We have no authority to obtain, but merely to communicate to Parliament this decision,
" and rely upon the House supporting us in accepting the Terms."—(Hansard, p. 511.) '
Tho next point in tho Minute is that the agreement for an annual railway expenditure of $2,000,000 in the Province, and for the completion of the line from the Pacific 224 Railway Papers. 1880
to Lake Superior by 1890, "must" bo contingent upon and subject to the conditions of
the Resolution passed by tho Commons in 1871, contemporaneously with tho Terms of
Union, and subsequently enacted and re-enacted in the Pacific Railway Acts of 1872-
1874 respectively. This Resolution, as quoted in the Minute, reads:—"The aid to be
'•' given to secure the accomplishment of the undertaking should consist of such liberal
" grants of land, and such subsidy in money, or other aid, not increasing the then existing
" rate of taxation, as the Parliament of Canada should thereafter determine." It is to
be remarked that the following important part of the Resolution has not been given
in this quotation, viz.:—" That the Railway should, be constructed and worked by private
" enterprise and, not by the Dominion Government." That Government seem to have
overlooked the fact that the above conditions were so materially changed in 1874 that
they were practically abandoned. The rate of taxation was then increased, and, by
the Railway Act of 1874 the construction of the railway was placed in the hands of the
Government instead of being entrusted to private enterprise. Even had the original
Resolution been binding on this Province, no such modifications of it as those above
indicated could have been of any effect as regards this Province, until the consent
of its Legislature had been obtained thereto. But British Columbia, in fact, was never
even consulted as to cither the original Resolution or its modification; nor was any
intimation given to this—or, as far as known, to the Imperial—Government that such a
Resolution had been passed by the Canadian Commons, as an intended qualification of
the Terms of Union. It could not possibly have had any such effect, as the Address
containing the "Terms" was passed by the House of Commons on the 1st of April,
1871, and the Resolution was not submitted to the House until some days afterwards, and
was not carried until the Wth April.
Therefore, the Dominion Government cannot be sustained in their contention that
the " Terms of Union " should be controlled by and be subject to the Resolution and
the Act above mentioned.
Looking at the question practically, the Resolution and Statute were severally submitted to the House as indications of the schemes at different periods matured by the
Government for the purpose of providing means for fulfilling the Railway agreement with
British Columbia; and should the Act, like the Resolution, fail in its object, some other
measure must necessarily be devised for the above purpose.
With respect to the cash bonus of §750,000 to be offered (provided the sanction of
Parliament be obtained) "as compensation for the delays which may take place in the
"construction of the Pacific Railway," it is evident that future delays of a very grave
character are seriously contemplated, otherwise such an offer never would have been made,
before even construction in the Province has been attempted, and before the expiration
of the first year of the fifteen given for the completion of the railway hence to Lake
Superior. Under these circumstances this offer can only be regarded as a proposed indemnity for a contemplated indefinite postponement of the construction of the work.
The agreements for annual railway expenditure and for completion of the lino within
a fixed time arc the only guarantees given that the railway will be constructed this
century. An acceptance of this proposed bonus would be equivalent to a surrender of
those guarantees, and an abandonment by British Columbia for all time to come of her
right to protest against future delays, however protracted. The amount offered represents the average cost of only about 20 miles of railway, and is little more than one-
third of one year's promised expenditure in the Province.
The other portions of Lord Carnarvon's Settlement, which declare that the waggon
road and telegraph line should be constructed immediately, " as suggested by " the Dominion Government, have not been touched upon in tho Minute, 'the waggon road has
not been commenced, though twelve months have elapsed since it was promised, and
though its immediate construction as a forerunner of railway work was strenuously
insisted upon by the Dominion Government. The immediate erection of tho telegraph
line was, for the same reason, also declared to be indispensable; but work on this line
though begun last spring, has been abandoned indefinitely. The proposal to construct
it formed a very material element in the consideration of British Columbia's appeal to
England, as the heavy cost of the undertaking was weighed, against the claims
advanced by the Province.
The facts and incidents which forced the Provincial Government to appeal to the
Imperial Government in 1874 need not be rejieated.     After nearly six months spent in 44 Vic. Railway Papers. 225
negotia