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ADDITIONAL PAPERS Relative to the carrying out of the object of the "Deep Sea Fisheries Act, 1892," and… British Columbia. Legislative Assembly 1893

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 56 Vict. Development of Deep Sea Fisheries. 649
ADDITIONAL   PAPERS
Relative to the cairying out of the object of the "Deep Sea Fisheries Act, 1892," and
the  scheme  of colonization and settlement  provided for by this Act and the
" Colonization Act, 1892."
By Command.
JAMES BAKER,
Provincial Secretary.
Provincial Secretary's Office,
29th March, 1893.
The Vancouver Island Development Syndicate, Limited,
19 St. Swithin's Lane, E. C,
London,  13th July, 1892.
Dear Sir,—In consequence of the lamented death of the Hon. John Robson, which
prevented his completing the agreement between your Government and the Vancouver Island
Development Syndicate, Limited, my Board have thought it desirable to depute Major Clark
to again visit Victoria to confer with you, and act on behalf of the Syndicate, to bring all
matters connected with the agreement to a satisfactory completion.
Major Clark already possesses full powers to sign any agreement on behalf of the
Syndicate.
My Board hope that the agreement will be signed as early as possible, as until this is
done it is impossible to secure the necessary capital for the scheme.
Major Clark leaves on Thursday, the 14th inst., by the "Parisian" for Montreal.
I am, dear Sir,
Yours faithfully,
The Hon. Theodore Davie, A.  J.  Macphail,
Prime Minister and Provincial Secretary, Secretary.
Victoria, B.C.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by Hit
Honour the Lieutenant-Governor on the 22nd day of August, 1892.
The Committee of Council, having had under consideration the enclosed draft of an
Agreement between the Honourable F. G. Vernon, Chief Commissioner of Lands and Works,
and the Vancouver Island Development Syndicate, Limited, which purposes to arrange the
necessary details in respect to the carrying out of the objects of the "Deep Sea Fisheries Act,
1892," and the "Colonization Act, 1892," section 1 of the former of which Acts being the
authority under which it is proposed to enter into such Agreement, advise that the Honourable
F. G. Vernon, Chief Commissioner of Lands and Works, be authorized to execute the said
Agreement for and on behalf of the Government of British Columbia.
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council. 650 Development of Deep Sea Fisheries. 1893
MEMORANDUM OF AGREEMENT, made and entered into this twenty-fifth day of
August, A. D. one thousand eight hundred and ninety-two,
between
The Honourable Forbes George Vernon, Chief Commissioner of Lands and Works of the
Province of British Columbia, acting herein for and on behalf of the Province of British
Columbia, by virtue of an Order of His Honour the Lieutenant-Governor in Council,
approved on the twenty-second day of August, one thousaad eight hundred and ninety-
two (hereinafter called the " Minister "), of the first part,
and
The Vancouver Island Development Syndicate, Limited, a body corporate and politic under
the laws of England (hereinafter called the " Syndicate "), of the second part.
Whereas by an Act passed at the last Session of the Legislature of the Province of
British Columbia, intituled " An Act to authorize an Agreement with Her Majesty's Government for the settling of Fishermen and others in British Columbia," and being chapter 14 of
the Statutes of 1892, and cited as the " Colonization Act, 1892," the Government of British
Columbia was authorized to conclude an agreement with Her Majesty's Government for the
transfer of not more than 1,250 families of Colonists from the United Kingdom to British
Columbia, and to accept a loan of the sum of £150,000, offered by Her Majesty's Government,
upon the conditions in said Act contained, and upon such further terms as might be concluded
between the two Governments :
And whereas by an Act of Parliament of the United Kingdom passed at the last Session
thereof, and cited as the " British Columbia (Loan) Act, 1892," the said loan was authorized
upon the conditions therein appearing :
And whereas by a further Act passed at the last Session of the Legislature of the
Province of British Columbia, intituled " An Act to encourage the Deep Sea Fisheries of
British Columbia," and being chapter 15 of the Statutes of 1892, and cited as the " Deep Sea
Fisheries Act, 1892," after reciting the intention to pass the said " Colonization Act, 1892,"
and the necessity of the formation of a Commercial Company for carrying out the objects of
the Act, by assisting the settlement of the Colonists in British Columbia, by providing them
with employment by means of the steps therein indicated, and further reciting the formation
of the Syndicate with the object of performing the functions of a promoter of the projected
Commercial Company, the Lieutenant-Governor in Council is authorized to enter into a
provisional agreement with the Syndicate, and to undertake to make certain concessions to
the Company when formed, upon the terms which are broadly stated in the Act, but subject
to such arrangement of details as the Lieutenant-Governor in Council deems expedient :
And whereas the terms of such provisional agreement have been settled, and the same, in
so far at they are not contained, or are insufficiently contained, in the hereinbefore in part
recited Acts, are proposed to be embodied herein, it being understood that the said Acts are
to be read with and form a part and are to be considered as the foundation and ground-work
hereof, and that this agreement is to be taken as subject to and governed by the same :
Now this Indenture witnesseth that the parties hereto, their successors and assigns, in
consideration of the premises and of the reciprocal covenants hereinafter contained, hereby
mutually covenant, promise and agree with each other in manner following, that is to say :—
1. The Syndicate will, not later than the 31st day of December, 1892, or within such
extended time (if any) as the Lieutenant-Governor may hereafter name, not being a later date
than the 31st December, 1893, form a Company under the provisions of the " Companies Act,
1862," and amending Acts, with a nominal authorized capital of not less than one million
pounds (£1,000,000), of which not less than two hundred and fifty thousand pounds
(£250,000) shall be subscribed before the Company shall commence business. 56 Vict. Development of Deep Sea Fisheries. 651
2. The corporate objects of the Company shall include :—
(a.) The carrying into effect the intent and meaning of the " Deep Sea Fisheries Act,
1892," and the complete carrying out and attainment of the purposes and ends of the said
Act.
(b.) Co-operation with the Government in settling Colonists upon the coasts of the
Province.
(c.) Furnishing suitable employment for the Colonists and providing them with boats,
tackle, and appliances for fishing purposes, and enabling them to commence and prosecute
fishing industries in the Province.
(d.) Providing facilities for the marketing of the product of the labours of the Colonists,
and for the adoption of such measures as will further the development of the deep sea
fisheries of British Columbia and the establishment of contingent industries therein.
3. The Government will, forthwith upon the formation of the said Company, and upon
their depositing with the Bank of British Columbia at Victoria, or with some other chartered
bank at Victoria, to be named by the Lieutenant-Governor in Council, the sum of one
hundred thousand dollars ($100,000) to the credit of the Government, as a guarantee for the
performance on the Company's part of the terms of any agreement to be made with the
Government, enter into an agreement with them on the lines following :—
4. Such agreement shall embrace (among others) the following- provisions, namely :—
(a.) A provision for joint selection by representatives  of the  Company and the Government, respectively, of suitable persons as Colonists, the cost of such selection,   other than the
payment of remuneration and allowances to the Company's representatives, to be borne by the
Government :
(b.) The transferring of such Colonists to British Columbia at the expense of the Government, the Company (free of expense to the Government except for actual outlay) acting, if
required by the Government, as agents for the Government in the matter of such transfer, and
the Company also giving such assistance from time to time as may be required :
(c.) The settling of such Colonists on Government lands within the areas reserved in
accordance with section 9 hereof in British Columbia, which settling shall include the clearing
of grounds where necessary for the sites of homes for the Colonists, the erection and furnishing
of suitable dwelling places and the providing of furniture and other things needful in the
opinion of the Government at the expense of the Government; the Company (free of expense
to the Government except for actual outlay) acting, if required by the Government, as their
agents in the matter of such settling, and giving such assistance from time to time as may
be required :
(d.) An undertaking by the Company to furnish, upon the settlement of the Colonists
from time to time, free of cost to the Government, and without charge to the Colonists, suitable
employment for the Colonists to the extent of at least fifty families in the first instance, and
to be ready to provide in like manner for twelve hundred more should the Government so
determine, and to provide the Colonists with fishing boats, tackle, and appliances for fishing
purposes, and all things necessary for enabling them to commence and prosecute fishing
industries in the Province; such boats, tackle and appliances being sold, let, or hired, as the
case may require, to the Colonists upon terms which shall from time to time be, in the opinion
of the Government, fair and reasonable, payments therefor by the Colonists being regulated
according to the moneys earned by them in the employment found for them by the Company;
the undertaking by the Company in the case of each draft of Colonists as to furnishing such
employment and providing fishing appliances for them extending for the period of five years
at least from the date of settlement of each draft of Colonists in British Columbia :
(«.) An undertaking by the Company to provide facilities for marketing the product of
the labours of the Colonists, which is to include an undertaking by the Company to pay
for the product of the labours of the Colonists at a fair and reasonable rate, and in cash if
required by the Colonists, and a further undertaking for the establishment of suitable trading
stations, the operation of steamboats and other craft, the providing and erection of cold-
storage accommodation, refrigerators, and other facilities for handling fresh fish, and the
adoption of other methods satisfactory to the Lieutenant-Governor in Council for utilizing
fish products, and the exercise of all reasonable endeavours to secure and extend markets for
fish and their products. The undertaking under this sub-section shall continue with respect
to each draft of Colonists for five years at least from the date of the settlement of such draft
of Colonists in British Columbia : 652 Development of Deep Sea Fisheries. 1.893
(f) An agreement by the Government to grant five hundred thousand (500,000) acres of
land to the Company out of the areas mentioned in Schedule A to the " Deep Sea Fisheries
Act, 1892," as the same may be extended under the provisions of section 9 hereof, and
subject to the conditions laid down therein, and in sections 6, 7 and 10 hereof :
(g.) An agreement by the Company to furnish security for the carrying out of its agreement and the due fulfilment of its obligations, in lieu of the cash deposit required hereunder
5. So soon as the Company shall satisfy the Lieutenant-Governor in Council that the
Company has expended in the Province a sum of not less than one hundred thousand dollars in
permanent improvements, and in buildings, machinery, and plant, and other things needful
for enabling the Colonists to commence and prosecute fishing industries in the Province, and
upon the Company furnishing to the satisfaction of the Lieutenant-Governor in Council such
other security for the continued performance of its duties under the agreement as may be
provided in the agreement with the Company, then the deposit of one hundred thousand
dollars, with any accrued interest thereon, shall be forthwith refunded to the Company.
6. The Lieutenant-Governor in Council shall grant to the Company such of the unalienated
public lands in the Province as may be allotted to the Company in the manner hereinafter
described out of the areas embraced in Schedule A of the " Deep Sea Fisheries Act, 1892,"
or out of any more extended area created and reserved for this purpose, as contemplated by
section 9 hereof, and shall issue Crown grants therefor from time to time as the Company
may become entitled thereto, under the following arrangement : Upon the Company making
application for the issuance of a Crown grant for any certain number of acres, proof shall be
furnished to the satisfaction of the Lieutenant-Governor in Council that the Company has
theretofore expended in permanent improvements, and in buildings, machinery, and plant and
other things needful for the carrying out of the objects of the Company under the said Acts
and in pursuance of the undertakings of the Company contained in this agreement, an amount
equal to one dollar for every acre requested by the Company to be included from time to time
in each separate grant. Land grants under this agreement shall be according to Form No. 7
of the Schedule to the "Land Act," as amended by section 11 of the " Land Act Amendment
Act, 1891."
7. The lands to be granted to the Company shall be selected in blocks of, as near as
possible, 640 acres each, in accordance with the principle hereafter demonstrated, or in such
blocks of smaller dimensions as may be necessitated by an adherence to the said principle.
The principle determining the said selection shall be that each block chosen by the Company
shall have a'counterpart in a block of similar extent contiguous to such chosen block, which
contiguous block shall remain the property of the Government, and where more than two
blocks are available for selection, the same shall be allotted to the Company and the Government alternately, so that no two blocks to be held by the Company shall laterally adjoin each
other. In order to determine the land which shall be divided between the Government and
the Company as above, the Company and the Government shall take steps to decide what land
within the areas is of sufficient economic value to render its survey desirable, and the Company
shall survey the same, as provided in the " Deep Sea Fisheries Act, 1892," and forthwith after
such survey a division shall be made of such land between the Government and the Company.
In case the interests of the Company in attaining its commercial ends require occasional
smaller selections, the Government will accede to the same if no public or vested interests will
be injured thereby.
8. The areas embraced in Schedule A to the "Deep Sea Fisheries Act, 1892," shall be
reserved by the Lieutenant-Governor in Council until the lands intended to be divided between
the Company and the Government shall have been selected and surveyed by the Company,
and for such further time as the Lieutenant-Governor in Council may deem to be necessary
for carrying out the colonization scheme provided for in said Acts.
9. The Government will—in view of the departure in the present agreement from the
original intention contemplated by the " Deep Sea Fisheries Act, 1892," that the Company
should be at liberty to select all the best and most valuable land within the areas mentioned
in the preceding section, the result of which departure is that the quantity of land available
for the Company is reduced one-half, subject to the assent and ratification of the Legislature
at the next session thereof—reserve a further area of public lands from alienation, which lands
shall be similarly situated to the areas already reserved, as regards utility for carrying out the
objects of the Company and  the ends of the recited Acts,  and shall be sufficient in area to 56 Vict. Development of Deep Sea Fisheries. 653
fairly allow the specified acreage being selected from lands sufficiently valuable  to be worth
surveying.
10. The surveys necessary for defining the lands to be set apart for the Company shall
be made at the expense of the Company in the first instance, the Government reimbursing the
Company one-half of the cost of such survey, such cost not to exceed the average current cost
of surveying Crown lands at the time of such survey; and such surveys shall be conducted in
accordance with the land laws of the Province, and shall be completed to the satisfaction of
the Chief Commissioner of Lands and Works for the time being, and plans thereof from time
to time filed in the Land Office, together with field-notes.
11. The Company shall, during the first year after its formation, survey not less than
one hundred thousand acres, and shall complete one-half of the survevs within three years
from its formation, and the balance within six years after its formation.
12. The lands to be granted to the Company shall not be subject to taxation until the
expiration of ten years from the date of their selection by the Company, or until the same
are used by the Company for other than the purposes of this Agreement, or leased, occupied
by others than the Company, sold, agreed to be sold, or alienated, whichever event may soonest
happen, and the personal property of the Company shall not be subject to taxation for the
period of two years from the date of the formation of the Company.
13. In consideration of the assent of the Company to the departure from the original
agreement which is made in section 7 hereof, the Government agrees, subject to the assent and
ratification of the Legislature at the next session thereof, to relieve the Company of the obligation imposed upon it by the " Deep Sea Fisheries Act, 1892," of making allotments to the
Colonists out of the land granted to the Company, and the Government will itself undertake
the said duty. The location for the Colonists shall be of such size as the Government shall
determine, and shall vary according to circumstances, and shall be subject to such terms and
conditions as the Government may see fit to impose. The number of families to be settled in
each locality, and the situation of the locations, shall be determined by the Government,
having in view the carrying out by the Company of their commercial objects, it being understood and agreed that the interests of the Province, the Colonists, and the Company will be
best secured by the Colonists being placed so as to aid the Company in the development of the
Deep Sea Fisheries, and in the institution and promotion of contingent industries.
14. In case the ratification of the Legislature is not received to the variations from the
original plan, as outlined in the recited Acts, contained in sections 6, 7, 9, 11, and 13 hereof,
or to any one of such variations, then the original plan shall hold, and such variations shall
be abandoned, it being understood that such variations are to be accepted entirely or entirely
rejected, they being considered by the parties hereto as mutually dependent. In case of their
rejection as above, there shall be reserved out of the lands to be granted thereunder to the
Company twenty-five thousand (25,000) acres, which shall be selected by the representatives
of the Government and of the Company, the Government and the Company respectively
appointing duly qualified representatives for the purpose of making such selections. Such
reservation of twenty-five thousand (25,000) acres shall be considered the appropriation
referred to in section 2 of the " Deep Sea Fisheries Act, 1892."
15. This agreement, in so far as it relates to the bringing out of and settlement of families
upon lands contiguous to the lands granted to the Company, is entered into subject to section
1 of the "Colonization Act, 1892."
16. The Company shall co-operate with the Government of British Columbia at all times
to provide for the welfare of the Colonists, and be ready and willing to assist, when so required ;
the Lieutenant-Governor in Council to supply information to the Imperial Government from
time to time of the condition of the Colonists.
17. It is conditioned and agreed to between the contracting parties to this Agreement
that this Agreement is made with the " Vancouver Island Development Syndicate, Limited,'
provisionally to the formation of the Company, and that when the Company is formed and the
deposit of one hundred thousand dollars is made, each and every condition, stipulation, proviso,
promise, agreement, and obligation herein contained shall be deemed to enure to the Company,
to enable the Vancouver Island Development Syndicate, Limited, to secure the formation of
the Company.    Wherever the Vancouver Island Development Syndicate, Limited, is referred 654
Development of Deep Sea Fisheries.
1893
to herein, such reference shall be deemed to mean and include the Vancouver Island Development Syndicate, Limited, their successors and assigns.
18. In the event of any disagreement or question at any time arising between the Company
and the Colonists, or either or any of them, respecting any question arising under the said
"Deep Sea Fisheries Act, 1892," the "Colonization Act, 1892," or under this Agreement or
the Agreement with the Company, or under any agreement between the Company and any
Colonist, the matter as between the Colonist or Colonists and the Company shall be arbitrated
upon and may be so arbitrated upon notwithstanding that such Colonist or Colonists is or are
not a party or parties to this Agreement, and shall be decided by the Lieutenant-Governor in
Council, whose decision shall be final, unless either party—before the Lieutenant-Governor in
Council shall proceed to hear and decide such matter or question—shall request that the same
be referred to a Judge of the Supreme Court, in which case the Lieutenant-Governor in Council,
instead of himself deciding the matter in question, shall refer the matter to one of the Judges
of the Supreme Court of British Columbia for arbitration and decision, and the award of such
Judge shall be final and conclusive.
19. In the event of any disagreement or doubt at any time arising between the
Government and the Syndicate, or between the Government and the Company, respecting
any question arising under the said "Deep Sea Fisheries Act, 1892," the "Colonization Act,
1892," or under this Agreement, or under any agreement or agreements to be made with the
Company, or in the event of the Company being dissatisfied with the interpretation placed by
the Government upon this Agreement, or with the requirements of the Lieutenant-Governor
in Council, or of the Government, in any matter which is by any of such Acts or Agreements,
or by any of the clauses thereof, left to his determination, or required to be done to his satisfaction, or by what other words soever placed in his discretion, then the matter may, provided
the Company shall within thirty days of such determination by the Lieutenant-Governor, but
not otherwise, give written notice to the Government, be left to the decision of a Judge of the
Supreme Court, or, at the option of either party, to a bench consisting of three Judges, and
the decision of such Judge or bench shall be final and conclusive.
In witness whereof the said party of the first part has hereunto set his hand and
seal, and the said party of the second part has hereunto affixed its corporate
seal, under the hands of its President and Secretary.
Signed, sealed, and delivered \
in the presence of J
[seal.]
[seal.]
(Signed)       F. G. Vernon.
W. G. Elder, Chairman.
A. J. Macphail, Secretary.
Ottawa, 13th September, 1892.
Sir, — I have the honour to transmit to you herewith, for communication to your Government, copy of a despatch from the Right Honourable the Secretary of State for the Colonies
to His Excellency the Governor-General, covering copy of a letter from Her Majesty's
Treasury with the Treasui'y Minute therein referred to, relative to the scheme for establishing
Scotch Crofter families in British Columbia and the conditions applicable to the advance of
the Imperial loan under the Act of last session, together with copy of a telegram from the
Marquis of Ripon inviting attention to a request made by the Vancouver Island Development
Syndicate to be furnished with a copy of the said Minute.
I have, <fec,
(Signed)
His Honour the Lieutenant-Governor of British Columbia.
A. Catellier,
Under Secretary of State. 56 Vict. Development of Deep Sea Fisheries. 655
TREASURY  MINUTE relative  to  the   scheme  for   establishing   Scotch  crofter
families in British Columbia, and the conditions applicable to the advance  of
the Imperial loan under the Act of last Session.
Treasury Chambers,
15th August, 1892.
My Lords read the "British Columbia (Loan) Act, 1892," of the Imperial Parliament, the
" Colonization Act, 1892," and the " Deep Sea Fisheries Act, 1892," passed by the Legislature
of British Columbia, and the draft of an Agreement between the Government of British
Columbia and the Vancouver Island Development Syndicate. They read a letter from the
Secretary for Scotland of the 12th ult., stating that the Vancouver Island Development
Company, by whose agency effect is to be given to the Loan Act, should be constituted in the
autumn, and that an agreement should therefore be concluded without delay between the
Treasury and the Government of British Columbia, defining the condition under which the
loan is to be advanced. Lastly, My Lords read a letter from the Colonial Office of the 4th
inst. commenting upon the said draft Agreement between the Government of British Columbia
and the Syndicate, and a Memorandum hy the Marquis of Lothian, dated the 5th instant.
The British Columbia (Loan) Act authorizes the Treasury to advance £150,000, in order to
enable the Government of British Columbia to transfer and settle upon the sea coast and
islands of that Province families from the Crofter Parishes of Scotland. It directs that the
loan shall be advanced in instalments of not more than £50,000 each; that before advancing
the first instalment, the Treasury shall be satisfied by such evidence as it requires that
suitable arrangements are made for the said purpose; and before advancing any instalment
after the first, My Lords shall be satisfied by such evidence as they require that the prior
instalment or instalments have been duly expended, and that suitable arrangements have been
made, or are continued, for the said purpose. The Act further directs that an advance shall
not be made until the Government of British Columbia has deposited, in such manner as the
Treasury requires, such number of debentures as equals the nominal amount of the advance,
inclusive of any interest which is likely to he added in advance. The meaning of these last
words is explained by a provision empowering the Treasury to postpone payment of interest
on each advance for five years, adding to that advance in each year the postponed interest.
In other words, the postponed interest is to accumulate at compound interest, and is to be
added to the advance upon which the interest accrues.
The Deep Sea Fishery Provincial Act empowers the Government of British Columbia to
enter into an agreement with the Vancouver Island Development Syndicate for the formation
of a Company to execute the provisions of the said Act, and the draft of that Agreement is
now before My Lords.
Under it the Syndicate agree to form a Company in England not later than 31st December,
1892, or such other date not later than 31st December, 1893, as the Lieutenant-Governor may
name. The Company is to carry a nominal capital of £1,000,000, of which £250,000 is to
be subscribed before business commences. It will enter into a formal agreement with the
Government, which will embrace the following provisions:—
(I.) Co-operation with the Government of British Columbia in settling Colonists on the
coasts of the Province. For this purpose, representatives of the Company and of
the Government will select suitable persons as Colonists, the cost of such selection
being defrayed by the Government of British Columbia. The Company will, if
desired by the Government, act as Agent of the Government—
(1.) In transporting the selected Colonists to British Columbia.
(2.) In settling the Colonists the term " settlement" includes the clearance of sites
for houses, the erection and furnishing of suitable houses, and the providing of
furniture and other things needful in the opinion of the Government, the actual
outlay in both cases being borne by the Government. 656 Development of Deep Sea Fisheries. 1893
(2.) The furnishing suitable employment for the Colonists to the extent  of at  least fifty
families, and of twelve hundred more, should   the  Government  so determine.    This
stipulation means that the Colonists will, on  arrival, be provided with fishing boats,
tackle and appliances, which are to be sold, let or hired, on terms fair and reasonable
in the opinion of the Government, the Colonists paying according to their earnings,
and the Company undertaking to furnish  employment and fishing appliances for a
period of at least ten years.    And
(3.) The providing facilities for bringing to market the product of the  Colonists'  labour,
and the adoption of measures for developing the Deep Sea Fisheries of the Province.
That is to say, the Company will pay  fair rates for the   product  of   the  Colonists'
labour, will establish suitable trading  stations, will  provide steamboats,   store-houses
and refrigerators, and will use all reasonable endeavours  to  secure markets  for the
fish.    This   undertaking  will also   continue   in force for at least   ten  years.    The
Company  will   deposit  with  the Government of   British  Columbia $100,000 as a
guarantee for the performance of its share of the  Agreement,  the guarantee being-
repaid on proof that $100,000 has  been  spent on permanent  works for developing
the fisheries.
The Government of British Columbia is to grant 500,000 acres to the  Company,  out of
which representatives of the Government and the Company will select sites for  the Colonists,
not exceeding 20 acres for each head of a family.    The lands are to be surveyed at the cost of
the Company, 100,000 acres within one year, and the remainder within three years.
Provision is to be made that in the event of a dispute arising between the Colonists and
the Company on questions under the Deep Sea Fisheries Act, or the Colonization Act, the
dispute shall be settled by arbitration.
Lastly, the Company is to co-operate with the Government of British Columbia in providing
for the welfare of the Colonists, and to supply information to the Imperial Government from
time to time as to their condition.
The Government of British Columbia will doubtless desire to learn as early as possible
the manner and the time in and at which advances will be made under the British Columbia
(Loan) Act of the Imperial Legislature. My Lords will therefore state generally the conditions
subject to which money will be issued from the Imperial Exchequer.
In the first place My Lords and the Secretary for Scotland acknowledge with pleasure the
care shown by the Government of British Columbia in securing the well-being of the Crofters,
and they are quite satisfied to leave with that Government the general conduct of the arrangements for transport and settlement.
The provisions of the draft Agreement appear to be well devised. The objects for which
the Company is to be formed, and the conditions under which the settlement is to be carried
out, have been fully considered and defined, and the Agreement should therefore ensure, as far
as can be foreseen, the success of the scheme. My Lords might perhaps suggest that the
manner in which the Company and the Colonists are to repay advances made by the Government of British Columbia for transport and settlement should be more clearly explained, and
further that the conditions of arbitration or appeal to the Courts in the case of dispute
between the Colonists and the Company should be described in greater detail. They presume
that the land to be set apart for the Colonists will be a free grant to them. The draft
Agreement allows a somewhat large margin of time for the formation of the Company, but
My Lords feel assured that the Government will not sanction any delay which is avoidable.
Finally, My Lords assume that the definite agreement with the Company will be framed
on the lines of the draft Agreement with the Syndicate.
The Government of British Columbia will wish especially to know the points on which
the Imperial Government will ask for information—(1) that of the Secretary for Scotland, who
must assure himself that the arrangements for the transport and settlement of the Crofters
are satisfactory; and (2) the Treasury, which may only make advances under conditions for
which the Imperial Act makes My Lords responsible.
The Secretary for Scotland should approve the selection of Crofters, and he should receive
a despatch from the Government of British Columbia, showing that suitable arrangements are
completed for the transport and settlement of the Crofters before each body of them leaves
these shores. The Secretary for Scotland will further ask the Government of British Columbia,
before commencing operations, to furnish him with a statement shewing the manner in which
the money to be advanced to the Colonists is to be  expended on their behalf, the terms of 56 Vict. Development of Deep Sea Fisheries. 657
re-payment, and the security, by policy or otherwise, which it is proposed shall be taken for the
re-payment of the loans.
The Government of British Columbia will no doubt supply particulars on the first two
heads to each family desiring to emigrate under the scheme, and the Secretary for Scotland will
possibly be able, from experience already gained, to offer some useful suggestions to the
Government of British Columbia. That Government should furnish the Secretary for Scotland
at first with a half-yearly, subsequently with a yearly, report on the condition of the Crofter
families settled in the Province under the scheme, and the report should be accompanied with
a statement of the Company's expenditure in transporting and settling the Colonists. Lastly,
there should be an understanding between the Government of British Columbia and the
Secretary for Scotland as to enquiry into any serious complaints which may be put forward by
the Colonists.
It may be added that these points were discussed at the Scotch Office with the late Mr.
Robson, and that there was no difference of opinion expressed.
My Lords pass next to the duties imposed upon the Treasury by the Imperial Loan Act.
In the first place, My Lords note that the Imperial Act empowers them to postpone
interest on the advance from the Exchequer for a period not exceeding five years, the postponed
interest being added in each year to the amount of the interest bearing advance. My Lords
are prepared to exercise this power should the Government of British Columbia desire it. In
that event the Government of British Columbia must deposit with the Treasury debentures
equal in nominal amount to the sum of the first instalment, together with the accrued interest.
The debentures will be issued under the Provincial Act No. 61 of 1892, they will bear interest
at the rate of three per cent., and will carry with them coupons for interest commencing, if
the above-mentioned postponement is desired, five years after the date of the advance, and
running for a period not exceeding thirty years from the date of the advance.
If £50,000 should be issued as the first instalment, My Lords reckon that the postponed
interest, accruing at three per cent, half-yearly, will accumulate at the close of the five years
to £7,930, and the amount of debentures to be deposited with the Treasury would therefore
amount to £57,930.
On the receipt of debentures to that amount My Lords will be able to make an advance,
on being satisfied that suitable arrangements are made for the transfer and settlement of
Crofter families. The Imperial Parliament in imposing the duty on the Treasury, clearly
desired assurance that the sum advanced will be applied directly for the purposes of the Act,
and that suitable arrangements will be made for the transport and establishment of the Crofters.
This provision follows the lines of various Acts of the Imperial Parliament authorizing
loans, or guarantees of loans, to Colonial Governments. My Lords will therefore ask that the
formation of the proposed Company, and the subscription of the required capital, may be
notified to them; that the agreement between the Government of British Columbia and the
Company may be communicated to them ; that it may be shewn to them that land has been
granted to the Company sufficient for the families to be settled thereon, viz., 25,000 acres, out
of which an allotment suitable to the circumstances of the case, but not, apart from exceptional
circumstances, to exceed 20 acres, may be made for each head of a family; and that such land
has been, or is being, selected and surveyed in the manner for which the agreement provides.
At the same time, My Lords will learn from the Secretary for Scotland that he is satisfied with
the steps taken for the selection of emigrant families, and with the arrangements made or
making for their transport and establishment in the Province.
On these preliminaries being settled, My Lords will direct the issue, in such manner as
may be most convenient to the Government of British Columbia, of an amount not exceeding
£50,000, as the first instalment of the loan.
Before a second advance is made, My Lords will ask evidence that the number of families
for which the first advance should provide are settled or in course of settlement in their new
homes, and for information similar to that afforded in the case of the first advances, as to the
preparation made for the transport and settlement of further bodies of emigrants.
My Lords may summarize the requirements of the Imperial Government as follows:—
(1.) Debentures must be deposited with the Trersury for a sum equal to the amount of
the first advance, with interest accrued during the first five years :
(2.) The formation of the Company and subscription of the capital must be notified,
together with a copy of the agreement, and assurance that land required for the
Colonists has been or is being selected and surveyed : 658 Development of Deep Sea Fisheries. 1893
(3.) The Government of British Columbia will at the same time have satisfied the Secretary for Scotland as to the arrangements for the selection, transport, and settlement
of the  Crofters,  and the Secretary for Scotland will notify to My Lords his concurrence in those arrangements :
(4.) The advance,  as  agreed  upon,   will  then  be  made  to  the  Government  of  British
Columbia.
My Lords cannot conclude without recording the satisfaction with which they and the
Secretary for Scotland learned the arrival in this country of Mr. Robson, Premier of the
Province of British Columbia. They knew the lively interest which he took in the colonization scheme, and they hoped to settle in friendly conference with him the terms of the arrangement which forms the subject of this Minute. They can now only express their great regret at
the loss which the Province of British Columbia and the Empire have sustained in his untimely
death.
Copy of a  Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 27th day of October, 1892.
The Committee of Council have had under consideration an Imperial Treasury Minute,
dated 15th August, 1892, relative to the scheme for establishing Scotch Crofter families in
British Columbia and the conditions applicable to the advance of the Imperial loan under the
Act of the last session of the Imperial Parliament, and remark the Statutes, documents, and
correspondence referred to in such Minute.
The Committee observe that the draft agreement between the Government of British
Columbia and the Vancouver Island Development Syndicate, Limited, considered by the
Lords of the Treasury, is an earlier draft than the agreement since entered into, under date
the 25th day of August, 1892, and such later agreement seems to the Committee to meet some
of the possible objections suggested in the Minute, and justifies the assumption that a definite
agreement with the Company will be framed on the lines of the draft agreement with the
Syndicate.
The Committee, in considering the details of the scheme as they appear in the Minute,
remark that the "British Columbia (Loan) Act, 1892," of the Imperial Parliament, provides
for the advance of £150,000 by the Treasury to the Government of British Columbia, in order
to assist in transferring and settling, upon the sea coast and islands of this Province, families
from only the Crofter parishes of Scotland, being the parishes to which the " Crofters'
Holdings (Scotland) Act, 1886," by virtue of a determination under section 19 of that Act,
applies, whereas the "British Columbia Deep Sea Fisheries Act, 1892," and the "British
Columbia Colonization Act, 1892," authorize an agreement with Her Majesty's Government
relative to the transferring of Colonists from the United Kingdom.
The Committee considered it desirable that the operations under these Acts should not be
limited to the Crofter parishes of Scotland, but that it should be open to the Provincial
Government and the Company to include families from other portions of the United Kingdom
among the Colonists to be transferred to this Province.
With this end in view, the Committee would suggest that the Imperial " British
Columbia (Loan) Act, 1892," should be so amended as to be co-extensive in scope with the Acts
of the Legislature of this Province before referred to.
. The Committee advise that, subject to the afore-mentioned limitation as to the locality
for collection of Colonists being abolished and to the variations hereinafter mentioned, the
terms of the Treasury Minute and the loan of £50,000, being the first advance of a loan of
£150,000, be accepted, this Government to retain the option of receiving the remaining
£100,000, as provided for under the respective Statutes and the Treasury Minute, it being,
however, a condition precedent to the carrying out of the said terms that the company which
is proposed to be formed by the Vancouver Island Development Syndicate, Limited, be
actually formed, and that a satisfactory agreement upon the lines of the said agreement with
the Syndicate of the 25th August, 1892, is concluded with such Company by the Provincial
Government.
The variations in the said Minute which the Committee suggest are as follows :—
In the first place, the Committee do not desire that the power given to the Imperial
Government by the terms of the Imperial Act, to postpone interest on the advance from the 56 Vict.
Development of Deep Sea Fisheries.
659
Exchequer for a period not exceeding five years, the postponed interest being added in each
year to the amount of the interest-bearing advance, should be exercised, it being considered
more advisable that simple interest at three per cent, should be paid half-yearly.
In the second place, any debentures deposited with the Treasury hereunder, or under the
said Acts, may be redeemed by this Government at any time by the payment of the principal
with interest to the date of repayment.
In the third place, the Committee would direct the attention of the Imperial Government
to the contribution of £500 per annum for three years, towards the selection of the Crofters,
promised by Mr. Goschen in his memorandum upon a communication of the 10th July,' 1892,
from H. Babington Smith to Mr. Begg, and communicated to this Government, which
promise, it is presumed, was overlooked in the preparation of the Treasury Minute.
The Committee advise that copies of this Minute, if approved, be transmitted to the
Honourable the Secretary of State for Canada, to be forwarded to the Right Honourable the
Secretary of State for the Colonies, and the Right Honourable the Secretary for Scotland.
Certified,
(Signed)
A. Campbell Reddie,
Deputy Clerk, Executive Council.
Victoria, 12th December, 1892.
Hon. Theodore Davie, Q. C.,
Attorney-General tf British Columbia,
Victoria :
Dear Sir,—I am authorized by the Vancouver Island Development Syndicate, Limited,
to inform you that they have been unable to arrange for the formation of the Commercial
Company this year, for the following reasons, viz. :—
Although much preparatory work was done previous to the completion of the Agreement
no actual steps could lie taken until this document could be exhibited.
As the Agreement only arrived in England in September the time has been found to be
altogether too short for our purpose.
Throughout the Autumn months a series of failures of very large concerns have taken
place which have rendered the work much more difficult.
There is yet no disposition on the part of the investing public to subscribe to anything
which does not offer a guarantee of immediate interest on capital invested.
Going concerns of say ten years' standing have in some instances been successfully floated,
but new and untried industries will not command attention.
The speculative section of the community have been dealing largely of late in South
African business, which offers opportunities for Stock Exchange manipulations.
The British Columbia scheme for the Development of'the Fisheries is pronounced
thoroughly sound, but the probability of no dividends till the end of the second year prevents
it being looked upon with favour at the present time.
The public are as a rule ignorant of the value of the lands included in the concession,
and in any case see that time and money will have to be freely applied'before these can be
rendered valuable.
The Syndicate in the circumstances could not risk to place the scheme before the public
unless the minimum capital of £250,000 were first guaranteed.
For the reasons above stated, the parties able to guarantee this amount demand a
commission to cover interest for at least three years, and as this sum is calculated to load the
enterprise unduly the Syndicate consider it to be in the best interests of the Province that the
time for the formation of the Company should be extended by the Lieutenant-Governor as
provided for in the Act.
Under the circumstances and taking into account the time and funds already expended
by the Syndicate, they are of opinion that the time should be extended till the end of 1893,
and accordingly the Syndicate respectfully ask your Government for this extension of time,
and beg to assure you that they will not relax their efforts in obtaining the formation of the
Company at the earliest possible date. 660 Development of Deep Sea Fisheries. 1893
While asking for the full extension of time limited in the Act, they beg to assure your
Government that they will continue to carry on the present negotiations with capitalists with
the utmost vigour, and will be glad to give your Government any reasonable assurance to this
effect.
As I am asked to cable at the earliest possible moment the result of this request, I shall
be obliged by an early answer.
I have, &c,
(Signed) John B. McKilligan,
On behalf and by authority of the Vancouver Island
Development Syndicate, Limited.
Copy of a Report of a Committee of the   Honourable the Executive Council, approved by His
Honour lite Lieutenant-Governor on the Kith day of December, 1892.
The Committee of Council recommend that the enclosed Order, in respect of the application made by the Vancouver Island Development Syndicate, Limited, that under section 6 of
the "Deep Sea Fisheries Act, 1892," His Honour the Lieutenant-Governor may be pleased to
extend the time allowed for the formation of the Commercial Company to a date not later
than the 31st day of December, 1893, and which authorizes such extension, be approved,
subject to the condition that the lands referred to in the Schedule to the Act be thrown open
to pre-emption.
Certified,
(Signed)        A.  Campbell Reddie,
Deputy Clerk, Executive Council.
E. DEWDNEY.
Government House, Victoria, 16th December, 1892.
Whereas section 11 of the "Deep Sea Fisheries Act, 1892," empowers the Lieutenant-
Governor in Council to pass all such Orders in Council, and enter into all such agreements as
may from time to time be deemed necessary, for the purpose of carrying out the object of the
said Act, and the scheme of colonization and settlement provided for by the said Act and by
the " Colonization Act, 1892 ;"
And whereas the Vancouver Island Development Syndicate, Limited, have notified the
Government that for sundry reasons, as stated in their communication of the 12th day of
December, instant, they have been unable to arrange for the formation of the Commercial
Company this year ;
And whereas the said Syndicate have made application for an extension of time, namely,
to the 31st day of December, 1893, for the formation of the Company ;
And whereas it is expedient to grant the request of the Syndicate, His Honour the
Lieutenant-Governor, under the authority vested in him by section 6 of the " Deep Sea
Fisheries Act, 1892," and.by and with the advice of his Executive Council, is pleased to
declare, and does hereby declare, that the date of the formation of the Commercial Company
shall not be later than the 31st day of December, A. D. 1893.
(Signed)        Theodore Davie,
Clerk, Executive Council. 56 Vict. Development of Deep Sea Fisheries. 661
72 Government Street,
Victoria, 20th December, 1892.
To the Hon. the Provincial Secretary
of British Columbia,  Victoria :
Sir,—I have the honour to acknowledge receipt of your communication of 16th instant,
informing me that the Executive had deemed it expedient to grant the request of the.
Vancouver Island Development Syndicate, Limited, for an extension of time under section 6
of the " Deep Sea Fisheries Act, 1892," and that His Honour the Lieutenant-Governor, by
an Order in Council, had been pleased to declare that the extension of time be conceded to a
date not later than 31st December, 1893, subject, however, and for the reason stated in your
letter, to the condition that the lands referred to in Schedule " A " to the said Act be open to
pre-emption according to the land laws of the Province.
I have the honour further to state that I cabled the substance of your letter to the Head
Office of the Syndicate, and I am now cabled in reply to express their thanks to the Executive
for the privilege accorded to them.
You will in due course receive an official acknowledgment from the Head Office.
I have, &c,
(Signed) John B. McKilligan,
On behalf and by authority of the Vancouver Island
Development Syndicate, Limited.
The Vancouver Island Development Syndicate, Limited,
19 St. Swithin's Lane,
London, E. C, 13th January, 1893.
The Honourable Provincial Secretary
of British Columbia, Victoria :
Sir,—I have the honour to .acknowledge your letter of the 16th December, 1892,
addressed to Mr John B. McKilligan, our local secretary at Victoria, informing him that the
Executive had deemed it expedient to grant the request of this Syndicate for an extension of
time under section 6 of the "Deep Sea Fisheries Act, 1892," and that the Lieutenant-
Governor, by an Order in Council, had been pleased to declare that an extension of time
be conceded to a date not later than the 31st December, 1893, subject, however, to the
condition that the lands referred to in the Schedule in the Act above mentioned be opened to
pre-emption, according to the land laws of the Province.
On the 9th January we cabled to our' agent, Mr. J. B. McKilligan, authorizing him in
our behalf to accept the conditions under which the extension of time had been granted.
In the name of the Syndicate, I beg to thank your Government for this concession, and
for the appreciation it shows of the strenuous efforts we have made, and the considerable
expense we have already incurred in furtherance of the scheme.
I have, <fec,
(Signed)        W.  G. Elder,
Chairman.
VICTORIA, B.C.:
Printed by Richard Wolkesdex, Printer to the Queen's Most Excellent Majesty.

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