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RETURN To an Address presented to His Honour the Lieutenant-Governor, praying that he will be pleased… British Columbia. Legislative Assembly 1896

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 59 Vict. Railway Lands. 577
RETURN
To an Address piesented to His Honour the Lieutenant-Governor, praying that he
will be pleased to send down a Return showing the terms upon which the settlement of the Railway Lands question between the Provincial and Dominion
Governments was completed.
By Command.
JAMES BAKER,
Provincial Secretary.
Provincial Secretary's Office,
10th February, 1896.
Department of the Secretary op State,
Ottawa, 6th May, 1895.
Sir,—I have the Honour to transmit to you herewith, for the information of your Government, a certified copy of an Order of His Excellency the Governor-General in Council,
providing for the settlement of the questions therein mentioned which are at present in
dispute between the  Province  of  British  Columbia and the Dominion, in regard to lands in
the "Railway Belt" Reserve.
His Honour
The Lieutenant-Governor of British Columbia,
Victoria, B.C.
I have, &c,
(Signed)        L. A. Catellier,
Under Secretary of State.
Extract from a Report of the Committee of the Honourable the Privy Council, approved by His
Excellency on the 29th March, 1895.
On a Report, dated 25th March, 1895, from the Minister of the Interior, submitting that
the second section of the Act of the Legislature of British Columbia, made and passed in the
47th year of Her Majesty's reign, chapter 14, enacts that, from and after the passing of that
Act, there should be and there was thereby granted to the Dominion Government, " for the
"purpose of constructing and to aid in the construction of a portion of the Canadian Pacific
" Railway on the mainland of British Columbia, in trust, to be appropriated as the Dominion
" may deem advisable, the public lands along the line of the railway before mentioned, where-
" ever it may be finally located, to a width of twenty miles on each side of the said line, as
"provided in the Order in Council, section 11, admitting the Province of British Columbia
" into Confederation ; but nothing in this section contained shall prejudice the right of the
" Province to receive and be paid by the Dominion Government the sum of $100,000 per
" annum, in half-yearly payments in advance, in consideration of the lands so conveyed, as
"provided in section 11 of the Terms of Union : Provided, always, that the line of railway
" before referred to shall be one continuous line of railway connecting, &c."
The Minister states that the Terms of Union referred to in the said Statute are the terms
under which British Columbia entered the Confederation, and are to be found in the Acts of
Parliament of Canada for 1872, page lxxxviii., and section 11 thereof is as follows :—
"11. The Government of the Dominion undertake to secure the commencement,
" simultaneously, 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 578 Railway Lands. 1896
" British Columbia with the railway system of Canada; and further, to secure the completion
" of such railway within ten years frorn 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 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 lands of the North-West Territories and the
" Province of Manitoba : Provided that the quantity of laud 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 portion of the
" public lands of British Columbia in any other way than under right of pre-emption requiring
" actual residence by the pre-emptor on the land claimed by him. In consideration of the
" land to be conveyed in aid of the construction of the said railway, the Dominion Govern-
" ment agree to pay to British Columbia, from the date of the Union, the sum of $100,000
" per annum, in half-yearly payments in advance."
The Minister observes that it appears that the Province of British Columbia, on the 16th
January, 1885, after the time when, as established by the litigation hereinafter referred to,
the line of railway had been finally located, issued grants of land within the railway belt to
Arthur Stanhope Farwell, Gustavus Blinn Wright, Simon John Tunstall and James K. Call-
breath ; George Bohurr Martin and James Charles Prevost; Charles Edward Perry and George
Byrnes; David MacEwen Eberts, James Mcintosh and William Bell Wilson ; such lands
being portions of Group One of the Kamloops Division of Yale District, according to the
Provincial Survey, and such grants were duly registered in the Land Registry Office at
Victoria in the names of the several grantees, pursuant to the laws of British Columbia. It
appears, further, that soon after the issue of the said Provincial patents, they were attacked
by Information of Intrusion brought by the Attorney-General for Canada against the several
grantees, the case of Farwell being made a test case, and brought for hearing in the Exchequer
Court before the late Mr. Justice Henry, who gave judgment against the Crown. This judgment was, however, reversed upon appeal to the Supreme Court of Canada, which duly
ordered that the said Arthur Stanhope Farwell should be removed from possession of the land,
on the ground that the grant thereof by the Provincial patent was void. After such
judgment, the Dominion issued patents covering portions of the lands so recovered from
Farwell, and difficulties arose with reference to the registration of their Dominion patents in
the Land Registry Office of British Columbia, and consequently the grantees from the Dominion
Government, and subsequent purchasers from them, were unable to complete title under the
laws of British Columbia. To remove this difficulty, another suit was brought by the
Attorney-General of Canada against Arthur Stanhope Farwell, and on the 13th March, 1893,
judgment was rendered by the Exchequer Court (afterwards affirmed by the Supreme Court)
that the said Arthur Stanhope Farwell should forthwith execute and deliver to Her Majesty
the Queen, in right of Her Dominion of Canada, a good and sufficient deed of surrender of the
lands so granted by the Province of British Columbia to the said Arthur Stanhope Farwell.
The Minister adds that it further appears that the same difficulty with regard to the
registration of Dominion patents exists, not only with regard to the lands litigated upon in
the Farwell proceedings, but applies to all lands of the Dominion within the railway belt,
there being no law of the Province under which the Dominion patents, or titles arising therefrom, can be registered. Much inconvenience and injury to patentees, and those acquiring
titles under them, consequently exists, and the holdings of purchasers are deemed insecure and
subject to be called in question by registered conveyances under the Provincial Laws.
The Minister states that a serious question, moreover, has arisen with regard to the
delimitation of the railway belt, and the laying out of the twenty miles on each side of the
road, the Provincial Government having hitherto refused to accept or be bound by the limitation as laid down under the direction of the Department of the Interior, and having themselves
insisted upon a boundary which would materially limit the quantity of land to which the
Dominion claims to be entitled.
The Minister further states that, in this condition of affairs, efforts have been made by
the two Governments to arrive at a definite settlement of the titles arising under the conflict- 59 Vict. Railway Lands. 579
ing patents and of the boundaries of the railway grant, as well as the question of the registration of Dominion patents ; and negotiations to this end were carried on between the Premier
and Attorney-General from the Province of British Columbia, who twice visited Ottawa for
the purpose, and the late Right Honourable Sir John Thompson and the Minister of the
Interior on behalf of the Dominion. Those negotiations were pending, and had about reached
a culmination, when Sir John Thompson left for England, and being interrupted by his death
have been resumed by the Minister of the Interior, one result arrived at being that an Act
has been passed by the British Columbia Legislature at its last session, which, after reciting
the questions at issue regarding the lands in the railway belt, empowers the Lieutenant-
Governor in Council to adjust and settle the several matters at issue.
The Minister, recognizing the great inconvenience which exists by reason of the present
state of affairs, and the desirability of setting the questions in dispute at rest, and having
ascertained from the late Premier of the Province that all matters upon which any difference
exists carr be settled upon a fair and equitable- basis, recommends that an agreement be
concluded with the Government of the Province of British Columbia to the following effect:—
1. The Provirrce shall accept as the boundary of the railway belt the limits laid down and
marked out by the Dominion Order in Council approved on the 27th May, 1887, and by the
map attached thereto (a copy of which is hereto annexed), or the nearest section line to the
boundary of the belt which would be found by actual admeasurement, as may be found by the
Minister of the Interior most convenient.
2. The Province shall, by Order in Council, make provision, satisfactory to the Government of Canada, under which Dominion titles shall be registered in the Land Registry Office
in the Province.
3. The Provincial Government undertaking to obtain from the said Arthur Stanhope
Farwell, Gustavus Blinn Wright, Simon John Tunstall and James K. Callbreath; George
Bohun Martin and James Charles Prevost; Charles Edward Perry, George Byrnes, David
MacEwen Eberts, James Mcintosh and William Bell Wilson, releases and surrenders of the
lands granted to them by the Provincial Government, as hereinbefore mentioned, which
releases and surrenders shall be accepted by the Dominion in discharge and satisfaction of the
several judgments of the Exchequer Court and of the Supreme Court, hereinbefore referred to,
and of the costs thereof; the Dominion Government shall issue patents to the said Arthur
Stanhope Farwell, Gustavus Blinn Wright, Simon John Tunstall and James K. Callbreath ;
George Bohun Martin and James Charles Prevost; Charles Edward Perry, George Byrnes,
David MacEwen Eberts, James Mcintosh and William Bell Wilson, of the same lands, except
such portions thereof as have heretofore been sold by the Dominion Government, the said
grantees releasing the Dominion Government from any claim or alleged claim in respect of the
said lands, or in relation thereto, the Government of British Columbia paying to the Dominion
Government for such lands as may be granted to the parties as aforesaid at the rate of one
dollar per acre, the same being the consideration already received by the Government of
British Columbia for such lands.
4. This arrangement has not affected the lands known as the Sumas Dyke Lands, referred
to in the Act of the Parliament of Canada made and passed in the 52nd year of Her Majesty's
reign, intituled " An Act to provide for the conveyance of certain lands to British Columbia,"
but such lands shall be conveyed by the Dominion to the Province, as provided by the said
Act.
5. The Minister of the Interior shall give all necessary directions and carry out all details
in connection with the arrangement provided for by the present Order in Council.
The Committee submit the same for Your Excellency's approval.
(Signed) John J. McGee,
Clerk of the Privy Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 6th day of December, 1895.
The Committee of Council have had under consideration a Report of the Honourable the
Privy Council of Canada, approved by His Excellency the Governor-General* on the 29th
March, 1895, which, after reciting the questions at issue between the respective Governments 580 Railway Lands. 1896
of the Dominion of Canada and the Province of British Columbia regarding the delimitation
of the railway belt in British Columbia, and the title to lands within the belt heretofore
granted by the Province to Arthur Stanhope Farwell and others, refers also to the Act of the
Legislature of British Columbia passed at the last session, known as the "Railway Belt Act,
1895," and Up the negotiations which have proceeded thereunder between the two Governments, culminating in an arrangement embodying the terms therein set out, which terms the
Report now under consideration offers as a method of settlement of the questions at issue, and
which, with certain amplifications, are the terms hereinafter set out:
The Committee observes that, by virtue of the Provincial "Railway Belt Act, 1895," and
of an Act of the Federal Government passed during the last session, Chapter 4, and called the
" Railway Belt Lands Act, 1895," any agreement to be entered into between the two Governments is to be as binding as if the same were specified and set forth by Acts of the Parliament
and Legislature respectively.
The Committee of Council, considering that the terms of agreement arrived at, and as
embodied in the said Report of the Privy Council approved on the 29th March, 1895, specify
a fair and equitable basis of settlement, advise that the same be accepted on the part of the
Province of British Columbia, and therefore beg to recommend to Your Honour to order as
follows :—
1. The Province shall accept as the boundary of the railway belt the limits laid down
and marked out by the Dominion Order in Council, approved on the 27th May, 1887, and by
the map attached thereto (a copy of which is annexed to the said Report of the Privy Council,
approved by His Excellency on the 29th March, 1895), or the nearest section line to the
boundary of the belt which would be found by actual measurement, as may be found by the
Minister of the Interior most convenient.
2. The Province shall, by Order in Council, make provision under which Dominion titles
shall be registered in the Land Registry Offices of the Province, and in order to make such
provision it shall be ordered as follows :—
(a.) It shall be the duty of the Registrar-General of Titles, and of each Deputy Registrar
of Titles, to register titles to lands within the railway belt, as defined by the first
section of this Order, arising under any patent or grant issuing or purporting to issue
under authority of the Dominion Government, as fully and effectually to all intents
and purposes as titles arising under Provincial grants to other lands in the Province
are now registered in the said offices :
(b.) The Lieutenant-Governor in Council shall pass such further Orders, and promulgate
such rules and regulations, from time to time (if any), as shall be requisite for
the purpose of giving full effect to the agreement between the two Governments,
that Dominion titles to lands within the railway belt shall be registred under the
Land Registry laws of the Province, and for giving due and full effect to the second
section of the said Federal Statute, the "Railway Belt Lands Act, 1895."
3. The Provincial Government obtaining from Arthur Stanhope Farwell, Gustavus Blinn
Wright, Simon John Tunstall and James K. Callbreath ; George Bohun Martin and James
Charles Prevost; Charles Edward Perry, George Byrnes, David MacEwen Eberts, James
Mcintosh and William Bell Wilson, or tbeir successors in title, releases and surrenders of the
lands within the railway belt severally granted to them by the Provincial Government, as
mentioned in the said Report of the Privy Council, approved on the 29th March, 1895, such
releases and surrenders shall be accepted by the Dominion Government in discharge and
satisfaction of the several judgments of the Exchequer Court of Canada and of the Supreme
Court referred to in the said Report, and of the costs thereof, and the Dominion Government
shall thereupon issue patents in fee simple to the said Arthur Stanhope Farwell, Gustavus
Blinn Wright, Simon John Tunstall and James K. Callbreath; George Bohun Martin and
James Charles Prevost; Charles Edward Perry, George Byrnes, David MacEwen Eberts, James
Mcintosh and William Bell Wilson, or to their successors in title, or to such of them as shall
release and surrender as aforesaid, in cases where there has been a devolution of estate of the
same lands, except such portions thereof as were, previous to the said Report so approved as
aforesaid on the 29th March. 1895, sold by the Dominion Government, the several grantees
releasing the Dominion Government from any claim, or alleged claim, in respect of the said
lands, or in relation thereto:
(a.) The Provincial Government shall pay to the Dominion Government for such lands as
may be granted to the parties aforesaid a consideration of one dollar per acre, the 59 Vict. Railway Lands. 581
purchase money already received by the Province therefor, but the  Dominion shall
be entitled to no payment whatever from the patentees or grantees :
(b.) The   several   patentees   or   grantees   shall,  in  all   cases  where  registration  of   the
Provincial  titles  was  already effected,  be  entitled  to  register  the Dominion title
without fee or charge.
4. This arrangement shall not affect the lands known as the Sumas Dyke Lands, referred
to in the Act of the Parliament of Canada made and passed in the 52nd year of Her Majesty's
reign, intituled "An Act to provide for the conveyance of certain lands to British Columbia,"
but such lands shall be conveyed by the Dominion to the Province, as provided by the said
Act.
5. The Honourable the Chief Commissioner of Lands and Works shall give all necessary
instructions and carry out all details in connection with the arrangement provided for in this
Order.
The Committee submit the same for Your Honour's approval, and recommend that a
copy thereof (if approved) be forthwith transmitted to the Honourable the Secretary of State
for Canada for the information of His Excellency the Governor-General in Council.
Certified.
A. Campbell Reddie,
Deputy Clerk Executive Council.
VICTORIA, B.C.:
Printed by Richard Wolfenden, Printer to the Queen's Most Excellent Majesty.
1896.

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