Open Collections

The Chung Collection

Chung Logo

The Chung Collection

Message relative to the terms of union with the province of British Columbia Canada. Governor General (1872-1878 : Dufferin) 1875

Item Metadata

Download

Media
chungpub-1.0114629.pdf
Metadata
JSON: chungpub-1.0114629.json
JSON-LD: chungpub-1.0114629-ld.json
RDF/XML (Pretty): chungpub-1.0114629-rdf.xml
RDF/JSON: chungpub-1.0114629-rdf.json
Turtle: chungpub-1.0114629-turtle.txt
N-Triples: chungpub-1.0114629-rdf-ntriples.txt
Original Record: chungpub-1.0114629-source.json
Full Text
chungpub-1.0114629-fulltext.txt
Citation
chungpub-1.0114629.ris

Full Text

 ihM£k'
RELATIVE- TO TES
mn
mMAmJmS, WSfcWMj.
IliiSiE IPERMSHrCQOTM
ilMifMttwi^iPpM
'1875; '    .  *i n
MESSAGE
IIKLATIVB TO THR
n
TERMS OF UNION
WITH THE
PROVINCE OF BRITISH COLUMBIA.
gvintcd toy ©rto of SwU&twnt.
OTTAWA:
PRINTED BY MACLEAN,  ROGER & CO., WELLINGTON STREET.
18*75.
*uTjL&
S*%^4t Wk
T «7S*^f
^5?
*'c* \
h
A
% Vr^
MESSAGE.
Dufferin.
The Governor General transmits, for the information of the Senate and
House of Commons, copies of a Correspondence which, has taken place
on the subject of the non-fulfilment of the terms of Union with the
Province of British Columbia.
Government House,
February, 1875.
TERMS OF UNION—BRITISH COLUMBIA.
o
19—1
SCHEDULE  OF DESPATCHES", &c.
A. Lieut.-Governor, British Colnmbia, 26th July, 1873.
B. Lieut.-Governor, British Columbia, 25th February, 1874.
C. Lieut.-Governor, British Columbia, (Tel.) 8th May, 1874.
1. Governor General, 26th December, 1873.
2. Secretary of State for the Colonies, 15th January, 1874.
~£. Minister Public Works, 19th and 21st February, 1874.
3. Governor General, 15th May, 1874.
4. Governor General, 15th May, 1874.
5. Secretary of State for the Colonies, 18th June, 1874.
6. Secretary of State for the Colonies, (Tel.) 18th June, 1874.
7. Governor General, 9th July, 1874.
8. J. D. Edgar, 17th June, 1874.
8J. Privy Council, 8th July, 1874.
9. Governor General, 9th July, 1874.
10. Governor General, 18th July, 1874.
11. Governor General, 22nd July, 1874.
12. 13. Governor General, 31st July, 1874.
14. Governor General, 31st July, 1874.
15. Secretary of State for the Colonies, 16th August, 1874.
16. Governor General, 21st August, 1874.
17. 18. Governor General, 18th September, 1874.
19. Secretary of State for the Colonies, 17th November, 1874.
20, 21. Governor General, 18th December, 1874.
22s» Secretary of State for the Colonies, 4th January, 1875.
la.. Lieut.-Governor, British Columbia, 31st March, 1874.
2a. Lieut-Governor. British Columbia, 18th May, 1874.
2£a. Minister Public Works, (Tel.) 8th June, 1874.
3a. Lieut.-Governor, British Columbia, 11th June, 1874.
4, 5a. Minister Public Works, (Tel.) 28th May, 1874.
6, 7a. Hon. G. A. Walkem, 13th July, 1874.
8a. Hon. G. A. Walkem, 4th July, 1874.
9a. Mr. W. Buckingham, 4th July, 1874. (A.)
(No. 68.)
British Columbia,
Government House,
26th July, 1873.
Sir,—I have the honor 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 Government of the 11th Section of the Terms
of Union of British Columbia with Canada, expressing- regret that the railway has
not been comment ed, and strongly protesting against the breach of a condition of the
terms so highly important to this Province.
I have the honor to be, Sir,
Your obedient servant,
(Signed,)    Joseph W. Trutch.
The Hon. J. C. Alkins,
Secretary of State for Canada.
Copy of a Report of a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieutenant-Governor on the 25th day of only, 1873.
i
The Committee of Council have had under consideration the non-fulfilment by
the Dominion Government of the 11th Section of the Terms of Union.
The Committee regret that the construction of the railway has not been commenced, and therefore stroDgly protest against the breach by the Dominion Government of a condition of the terms so highly important to the Province.
The Committee recommend the above for the approval of Your Excellency, and,
if sanctioned, respectfully request that a copy thereof be at once forwarded to the
Dominion Government.
Certified.
(Signed,)       W. J. Armstrong,
Clerk, Executive Council.
(No. 96.)
British Columbia,
Government House.
24th November, 1873.
Sir,—I have the honor to enclose
Council referring to the non-fulfilmenl
herewith a further minute of my Executive
by the Dominion Government of the 11th
Article of the Terms of Union of the Province with Canada.
In accordance with the advice of my Ministers, expressed in this minute, I beg
you to be pleased to lay this despatch and its enclosuro before His Excellency the
Governor General, and to be good enough to bring to His Excellency's attention the
previous minutes of Executive Council on the same subject which we're forwarded for
*his consideration in my despatches, No. 67 and No. 68 of the.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 Roc Uy Mountains—as provided in the 11th 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 to be taken by the Dominion Government in fulfilment of tho 11th Article of the Terms of Union of this Province with Canada.
I have the honor to be, Sir,
Your obedient servant,
(Signed,)       Joseph W. Trutch.
The Honorable
the Secretary of State
for Canada.
Copt of a Report of a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieutenant-Governor on the 22?id day of November, 1873.
The Committee of Council having had under consideration a memorandum from
the Honorable the Pr6vincial Secretarv, 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 11th Article of the terms of Union.
That beyond the acknowledgment of receipt no reply has been made by the
Dominion Government to the despatch conveying that protest.
That the Government of British Columbia, looking at the actual position of
affairs, felt compelled to .await the action of the Parliament of Canada, expected
shortly to meet, and which did meet on the 23rd October last past.
That the Parliament of Canada has been prorogued, not to meet until February
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 *he Province. The Committee advise your Honor
to ask the Dominion Government through the proper channel for a decided expression
of its policy with regard to the fulfilment of the 11th 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 to request that the decision arrived, at be communicated to
your Honor by telegram at the earliest moment possible, and the Committee respectfully suggest that if the present report be sanctioned, your Honor 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 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 several of any of the
publio lands for railway purposes until the line of railway should be defined.
Certified.
(Signed,)"       W. J. Armstrong,
Clerk, Executive Council.
To His Honor the Lieutenant-Governor of British Columbia, Victoria:—
Sir,—I have the honor to acknowledge the receipt of your despatch, No. 96, of
the 24th ultimo, enclosing with reference to your previous despatches on the subject/
a further minute of your Executive Council respecting the non-fulfilment by the
Dominion Government of the 11th 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.
Department, Secretary of State, •
13th December, 1873,
m (381 D.)
Copy of a Report of a Committee of the Honorable the Privy Council, approved by His
Excellency 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
cf his Executive Council, referring to the non-fulfilment by the Dominion Government
of the 11th 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 the Rocky
Mountains, as provided in the 11th 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 11th 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
w"hich 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 of Privy Council.
To the Honorable
The Secretary of State,
&c,        &c.       &c.
(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 honor to transmit to you here-
r' with, 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 11th Article of the Terms
of Union of the Province of British Columbia with Canada.
I have, &c.
To His Honour
The Lieutenant-Governor of British Columbia,
Victoria.
23rd Decembe
1873.
(No. 4.) British Columbia,
Government House,
21st January, 1874.
Sir,—I have the honor to acquaint you that I have duly received and laid before
my Executive Council your despatch of the 30th ultimo, and the copy therewith enclosed 5
of an order of His Excellency the Governor General in Council, on the subject of the
non-fulfilment by the Dominion Government of the 11th Article of the Terms of
Union of this Province with Canada.
I have the honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Trutch.
The Honorable D. Christie,
Secretary of State for Canada,
Ottawa.
(B.)
[Copy of No. 8.-633 D.]
British Columbia,
Government House,
251 h February, 1874.
Sir,—T have the honor to enclose herewith a copy of an Address to me from the
Legislative Assembly of this Province, requesting me to protest on be-
copy of Address, half of the Legislature and people of British Columbia, against the
Minute of Exe- infraction of the 11th Article of the Terms of Union of British Colum-
cutive Council, bia 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
•/        eJ * o
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 thereof be forwarded by me to His
Excellency the Governor General, with a request that he will be pleaded to order
immediate action to be taken thereon.
Hi accordance therefore, with the advice of my Ministers, I beg that you will be
good enough to lay this despatch and its enclosures before His Excellency the
Governor General, and to recommend to His Excellency's favorable consideration the
representations and urgent request of the Government and Legislature of British
Columbia herein set forth.
I have the honor to be, Sir,
Your obedient servant,
(Signed,)       Joseph W. Trut#h.
The Hon. D. Christie,
Secretary of State for Canada.
Copy of a Report of. a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieutenant-Governor, on the 23rd day of February, 1874.
The Committee of Council have had under consideration an Address of the Legislative Assembly of the 9 th instant, respecting the breach of the railway clause contained in the terms of Union.
On the 25th July last, and again on the 24th of 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 pur- euied 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
Honor 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.
To His Honor tlie Honorable Joseph'William Trutch, Lieut.-Governor of the Province of
Iritish Columbia. ; .,
" May it please Your Honor,—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 Honor with our respectful request that your
Honor will be pleased to take into consideration the following resolution of the
House.
% 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 commenced, 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 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 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.
Department, Secretary of State,
12th March, 1874.
Sir,—I have the honor to acknowledge the receipt of your despatch, No. 9, of
the 25th ult., 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 11th 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 in Council.
I have, &c,
(Signed,)        ' Edouard J. Langevin,
To His Honor Under Secretary of State.
The Lieutenant-Governor of British Columbia,
Victoria.
(C.)
(Teb gram) Victoria, B. C, 8th May, 1874.
It being reported here to^lay that the Premier stated in House of Commons on
4th inst., that construction of railway in British Columbia would not be commenced this year, this Government urgently requests to be fully informed immediately by
telegraph of particulars of policy adopted by Dominion Government respecting*
railway clause of terms of Union.
(Signed,) Jos. W. Trutch,
Lieutenant-Governor.
To Honorable
The Secretary of State for Canada.
(Telegram) Privy Council, Canada,
Ottawa, 8th May, 1874.
To Lieutenant-Governor Trutch :—
Mr; Mackenzie simply stated 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 could be possible to complete the
survey before close of year.
(1.)
(No. 301.)    -
Ottawa, December 26, 1873.
My Lord,—1 have the honor to enclose for your information a copy of a despatch,
24th March, from the Lieutenant-Governor of British Columbia to the Secretary of
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 11th Article of
the terms of Union with that Province, in respect to the construction of the Canada
Pacific Railway.
I also beg to transmit copy of a report of a Committee of the Privy Council of
23rd December the Dominion, on the above mentioned despatch, stating that my
Government is giving its most earnest consideration to the project for the construction of a railway to the Pacific.
I have the hOnor, &c.
Dufferin.
The Earl of Kimberley.
(381 D.)
Copy of a Report of a Committee of the Honorable the Privy Gomicil, approved by Hi$
Excellency the Governor General in Council, on the 23rd December, 1873.
The Committee have had under consideration the despatch dated 24th !N ovember,
1873, from the Lieutenant-Governor of British Columbia, enclosing a further minute
of his Executive Council referring to the non-fulfilment of the Dominion Government
of the 11th 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, Nos. 67 and 68, of the 26th July last,
the latter of which conveying a protest from that Government on the faiftire 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 11th Article of the Terms of Union, he states is yet unanswered, and requesting Your Excellency to communicate to that Government in
M 8
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 11th Article of the Terms of Union of that Provinte
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.
(Copy No. 96.)
Government House,
24th November, 1873.
Sir,—I have the honor to enclose a further minute of my Executive Council
referring to the non-fulfilment by the Dominion Govern nent of the 11th Article of
the terms of Union of this Province with Canada.
In accordance with the advice of my Ministers, expressed in the 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, No. 67 and 68, 26th July last, the latter of which conveving a protest
from this Government on the failure of the Dominion Government to secure the commencement within two years trom the date of Union, of the construction of a Railroad from the Pacific towards the Rocky Mountains as provided in the 11th 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 to
be taken by the Dominion in fulfilment of the 11th Article of the Terms of Union of
this Province with Canada.
I have, &c,
(Signed,)       Joseph W. Trutch.
Copy of a report of a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieutenant-Governor, on the 22nd day of November, 1873.
The Committee of Council having had under consideration a vinemoranduni trom
the Honorable 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 Goveunment of the 11th 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 acthal 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 February
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-fulfillment by the Dominion Government of the Terms of Union has caused a strong feeling of anxiety and discouragement to exist throughout tho
Province.
The Committee advise Your Honor to ask the Dominion Government, through
the proper channel, for a decided expression of its policy, with regard to the fulfilment of the 11th Article of the Terms of Union, in order that the information may bo
given to the Legislature at the opening of the coming Session.
And they request that the decision arrived at be communicated to Your Honor
same to His Excellency the Governor General; and also draw his attention to the
Minutes of Council, each bearing date the 25th day of July last, on the same subject,
me being a protest against the breach of Article 11, and the other a denial of tho
Min
one being a protest against the breach of Article .1, and the other a denial of tho
right of tho Dominion Government to a conveyance or reserve of any of the public
lands for Railway purposes until the line of Railway should be defined.
Certified.
(Signed,)      W. J. Armstrong,
@lerk of Executive Council.
(2-)
(Canada.—No. 370.) Downing Street,
15th January, 1874.
My Lord,—I have the honor to acknowledge the receipt of your despatch, No.
301, of the 26th of 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
11th Article of the terms of Union between that Province and Canada in respect to
the construction of the Pacific Railway.
I have the honor to be, My Lord,
Your Lordships most obedient humble servant,
(Signed,) Kimberly.
Governor General
The Right Honorable
The Earl of Dufferin, K. P., K. C. B.
&c. &c. &e.
(2*0
(Confidential—Copy 3,494.)
Ottawa, February 19, 1874.
My Dear Sir,—In your conversations with loading men in and out of the
Government in Columbia, it will bo 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 il. If it requires so much time in a settled country to build 500 miles of
railway with iacilities every where for procuring all supplies, one may conceive the
time and labor required to construct a line five times the length through a country
all but totally unsettled.
19—2
m 10
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 tho 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, T881. 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.
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 favorable disposition among the loading men of the Province
towards affording a generous consideration to the obvious necessity of giving a auffi-
cient time for pushing the road through Columbia, you will endeavor 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 endeavor 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
endeavor 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 people
and allowing them to speak freely while you listen, remembering in taking impressions that your audience maybe 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 main land and meet with the people at Westminster
and other towns and villages on the lower reaches of the Frazer.
It maybe 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. 11
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 vnoting the various matters connected with
Dominion business, in accordance with instructions that will be sent.
I am, my dear Sir,
Yours faithfully,
(Signed,)       A. Mackenzie.
(Copy.)
Ottawa, Feb. 19th, 1874.
Dear Sir,—Allow me to introduce Mr. James D. E. Edgar, of Toronto, who
visits your Province on public business for the Government. Mr. Edgar will confer
with yourself and other memborsx of the Government of Columbia on the question
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 tho meeting of Parliament in four weeks, some members of the Government would have visited your Province, but Mr. Edgar, as a public man, is well known
here and fully understands the questions he will discuss with you.
I need not, I am sure, assure you of my own sincere desire to do all I can, not
only to act justly but generously to Columbia.
It is in your interest and is the interest of the Dominion that we should both act
with a reasonable appreciation of difficulties which are unavoidable, and devise means
to remove them or overcome them.
We have induced Mr. Edgar to go to Columbia, as we thought you yould prefer
a full conference with an agent to a tedious and possibly unsatisfactory correspondence.
I have the honor to be,
Yours truly,
Hon. Geo. A. Walkem,
Attorney-General, Victoria.
(Signed,)       A. Mackenzie.
(Copy.)
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 tho 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 }rour suggestions concerning matters which may require attention.
I am, Sir, very respectfully,
Your obedient servant,
(Signed,)       A. Mackenzie.
His Excellency
Lieutenant-Governor T. W. Trutch,
Victoria, British Columbia,
A HUP
12
(No. 130.) Government House,
Ottawa, May 15th, 1874.
My Lord,—I have the honor to enclose for your Lordship's information a news-
Globe, 13th and paper report of the speech delivered by Mrv Mackenzie on the 12th
14 May. instant., when introducing Resolutions for a Bill to provide for the
Globe, 12th May. construction of the Pacific Railroad, together with a summary of this
Globe, 13th May. speech, and an article from the Globe newspaper of the 12th instant,
explanatory of the Government project.
I have, &c.
The Right Honorable (Signed) Dufferin.
rn
The Earl of Carnarvon,
&c, &c. &
c.
(No. 131.) Government House,
Ottawa, May 15th, 1874.
MY Lord,—In continuation of my despatch, No. 130, of this day's date, I have
May 14.   For ar- tne honor to enclose an extract from the Toronto Mail, an opposition
tide see   Scrap paper, criticising the scheme of the Government.
Book. Page 40.
I have, &c.
The Earl of Carnarvon. (Signed) Dufferin.
(Copy—Canada—No. 110.)
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 Paoific 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
for 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 me to be such as it should be within the province and 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
anxiety of the Dominion Government and Parliament to give the fullest consideration
to such representation 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 disadvantage to all parties
remain the subject of prolonged and it may be, acrimonious discussion, 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 would 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, aud that if both Governments should unite in 13
desiring to refer to my arbitration all matters in controversy, biding themselves to
accept such decision as I may think fair and just, I would not decline to undertake
this service.
4. The duty which, uuder a sense of the importance of the 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.
Governor General
The Right Honorable
The Earl of Dufferin, K.P., K.C.B.
•fee,       &c,       &c.
(Signed,)       Carnarvon.
(Copy.)
From Earl of Carnarvon to 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 Pacifie 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. 182.) Quebec, 9th July, 1874.
My Lord,—I have the honor to acknowledge the receipt of your Lordship's despatch, No. 110, of the 18th of 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.
Li 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   subject matter to which the   despatch under
acknowledgment refers, I have the honor to enclose, for your Lordship's information
,       ?     a memorandum of a Committee of Council on the points in dispute
u ^       '   between the Dominion Government and the Government of British 14
Columbia, together with a report by Mi*. Edgar of his mission to that Province, accompanied by copies of his correspondence with Mi*. Walkem, the Attorney-General
of British Columbia.
I have, &c,
The Earl of Carnarvon'. (Signed,)       Dufferin.
To the Honorable the Secretary of State for Canada:
Toronto, June 17th, 1874.
Sir,—I have the honor 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
" 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
eJ *j *
" 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 followingdetter:—
Ottawa, Feb. 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 for 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, viz: the 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 by the terms of
Union, and that my 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 still require eighteen months to complete it.
If it required so much time in a settled country to build 500 miles of railway,
with facilities every where for procuring all supplies, one may conceive the time and
labour required to construct a line five times that 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 say nothing about 15
or carelessly to have assumed the task of finishing the road before the month of July,
1881.
Acting, however, from a desire to deal frankly and honestly with British 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.
You will point out that, as part of the Dominion, it is as much in their interests 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
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 Esquimault, and you will convey an intimation to them
that any further extension beyond the waters of Bute Inlet, or whatever other portion
of the sea waters may be reached, may depend entirely oh 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 condition of Union to
Columbia; that it could only have been because that administration sought additional
means of procuring extension of patronage immediately before the general election, and saw in coming contracts 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 favorable disposition among the leading men of the Province
towards affording a generous consideration to the obvious necessitv of giving a suf-
ficient time for the 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 ad-
vance in cash the balance of the amount of debt, with which Columbia was allowed
to enter the Confederation, shewed that it was not considering itself bound to tho
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 tho part of the Province.
In the event of your finding that there is a willingness to accept a proposition
to extend the time for the building of the road, you will endeavour to obtain some
proposition from them, directly or indirectly, and communicate this to us by cypher
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 acceptable.
It will be well that you should take some means of ascertaining the popular view
of the railway question. This may be doue by mangling among the people, 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
general questions.
It will be well not to confine yourself to the vicinity of the Government offices,
or Victoria, but to cross to the main land, and visit the people at Westminster, and
other towns and villages on the lower reaches of the Frazer. It may be that you will
find there 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 Esquimault, or to any other 16
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 may desire to constitute the members for
the Common! a deputation 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
the Dominion business in accordance with instructions that will be sent.
I am, my dear Sir,
Yours faithfully,
(Signed,) A. Mackenzie.
J. D. Edgar, Esq.,
Toronto.
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. Upon the same day I handed him Hon. Mr. Mackenzie's letter of
16th February (Appendix A), also informing him that I had letters from His Excellency the Governor-General to his Honor 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
sparseness of the population who would participate in the immediaite 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 to-day has probably increased to 10,000.
With the exception, perhaps, of the gold mines, who are confined to the main land,
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 feel 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 labor 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 or Italy. Although a strong
feeling of jealousy of the greatness of Victoria undoubtedly exists in parts of the
main land, 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 harbor of Esquimault, 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
hoped to secure the terminus at Esquimault. 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 harbor of Esquimault to i3
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
Esquimault, which is said to be the finest harbor upon tho shoi es 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 Esquimault for the mines at
Nanaimo and Departure Bay.
Moreover, it was contended that in view of the admitted impossibility to complete the construction of the t vans-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 gold miners were leaving in considerable numbers, and partly for
the reason that in anticipation of railway constru .tion 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 main
land 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 tho 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 when 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 somewhat novel
to see the smalbness of electoral districts in British Golumbia. Yet it would be quite
unfair to fix the number of electors as tho 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 of the eleventh, 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 Railway Clause of the terms
" of Union between Canada and British Columbia being faithfully carried out by
19—3 18
" Canada, this House is of opinion that no alteration in the said clause should be per--
mitted by the Government of this Province until the same has been submitted to the
" people for endorsation."   When I ascertained that this resolution had been passed, that
the Provinvdal 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 urged 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 Esquimault 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 Colum-
bia as regards the railway, and adding:—" This Act shall not have any force or
" effect unless the above proviso be inserted, in the same words, in any Act of Par-
" liament 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
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 pioposals 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 inquiry 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 of'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, I endeavored 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 1 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
Esquimault, kindly afforded me an opportunity of visiting the east coast of the
island, in company with them, on board H.M.S. Myrmidon. 19
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 satisfactorj^ upon this point, but my denial of it on the part
cf 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 difficult 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'favor 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 oven
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.
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. Mi*. 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 (Appendix
B) and upon the following day I handed it to him, and furnished a copy to His
Honor   the  Lieutenant-Governor   as   directed,   accompanied  with   a   short   note (Appendix C). 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 (Appendix D) in which he raised objections to
recognizing me as the agent of the General Government. It struck me as so peculiar
a communication on Mi*. Walkem's part, after he and his colleagues had recognised
me as euch agent almost every day lor two months, that I felt it would be better not
to be too hasty in accepting that as a seriotSs 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's 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 shoitly 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 Mi*. 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, (Appendix E) endeavoured to point out that he could not ignore
the communicaticn 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, (Appendix F) and upon the 19th
May, under [directions from Hon. Mr. Mackenzie, I left Victoria upon my return
journey without any further official communication with the Local Ministry.
I may be permitted to mention that His Honor 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 wi: h to see adefinite and amicable settlem* nt of the railway question speedily arrived at between the General and
Provincial Governments.
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, I have already called attention to some important subjects of that kind, and I propose to have the honor of communicating in
separate reports or despatches upon several other points of interest andjmportance
connected with Dominion affairs in the Pacific Province.
I have tho honor to be, Sir,
Your obedient servant,
(Signed,)       J, D. Edgar.
APPENDIX A.
Ottawa, February 16th, 1874.
Dear Sir,—Allow me to 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 members of the Government of Columbia on the questiong lately
*5B 21
agitating the public mind'in'Columbia, and will be glad to receive your views regarding the policy of the Government en 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 lully understands the questions he will discuss with you.
I need not, I am sure, assure you of my 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
devise means to remove them or overcome them.
We have induced Mr. Edgar to go to Columbia as we thought you would
prefer a full conference with an Agent to a tedious and possibly unsatisfactory
correspondence.
I have the honor to be, yours truly,
(Signed,)       A. Mackenzie,
Hon. G. A. Walkem,
Attorney-General, Victoria,
British Columbia.
APPENDIX B.
Victoria, B.C., May 8, 1874.
Sir,—I have the honor 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
carrymg out of this work, has, for a variety of reasons, proved unsuccessful, and
to devise a plan for a 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 constiuction is to be found* in the stipulation as to
completion of the railway by the month of July, 1881. In 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 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. 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 railway by all means, in her power "and at the
earliest practicable date.
The eleventh Article of the terms of Union, embodies the bold proposition
that the railway should be commenced in two and completed in ten years from
'the date of Union, to connect the seaboard of British Columbia with the railway system
of Canada. Feeling the impossibility of complying with this time limit for com-
pletion, 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 Esquimault to Nanaimo immediately, and to
push that portion of railway on to completion with the utmost vigor and in the shortest
practicj h ip t.i m p
The engineering difficulties on the mainland have unfortunately turned out to be
so serious that further surveys mustdrnecessarily 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 ho expenditure will be spared to
achieve the most speedy and reliable selection of a permanent location of the line upon I
22
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 qpen up a road, and build a telegraph line along the whole length of the railway in the Province, and carry 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 nil along the
whole extent of the railway, wherever construction was progressing. It would then
be the aim of the Government to strain every serve to push forward the construction
of the railway; and they would endeavor 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 own producers. In addition to constructing the road to
facilitate transport along the located line, they are anxious to avail themselves of the
large supplies of all kinds of provisions now existing, $r 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 energy could sanction.
It is to be observed that while the terms of union contemplated the completion
HJ2)ft whf)1f> ""'Vav within a certain number of years, they made no provisions of
any certainty of expenditure in any particular time, or in any particular, portion of
the line.   To predicate the highest expenditure, which in any one year might be war-
ranted in^a particular portion of a great work like this
still moi"
is certainly difficult; and it is
difficult to arrive atl;heTlowest 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 line 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
unfavorable circumstances, during the construction of the ra lway, a minimum expenditure upon works of construction within the Province, of at least one million and
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 withoutjholding 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 to earn something. In reference to this point. I may be permitted 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 con-,
struction, of one million of dollars, to begin at the end of 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 the feasability of the
offer of early completion that was made to them. I trust that the proposals of the
Dominion Cabinet, which I 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
w
le 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 cypher, and based upon that, I have the honor of
communicating them to you.   The Dominion Government would be glad to have the 1
23
consideration this proposal entertained by your Administration and to learn the conclusion of the Government of British Columbia upon the subject.
I have the honor to be, Sir,
Your obedient servant,
(Signed,) J. D. Edgar.
Hon. George A. Walkem, M.P.P.,
Attorney-General.
APPENDIX C.
Victoria, B. C, May 9th 1874.
Sir,—I have the honor to inform Your Excellency that in accordance with instructions from Hon. Alexander Mackenzie, leader of the Canadian Government, I
have submitted to the Hon. G. A. Walkem, leader of your Ministry, the views of the
former upon the question of the Canada Pacific Railway, 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 YourExcellency's information a copy, which I now have the honor to enclose, of tho communication addressed
by me to your Minister upon that subject.
I have the honor to be,
Your Excellency's obedient servant,
(Signed,) J. D. Edgar.
His Excellency
The Hon. Joseph W. Trutch,
Lieutenant-Governor of British Columbia.
APPENDIX D.
Attorney-General's Department,
Victoria, May 11th, 1874.
Sir,—I have the honor to acknowledge the receipt on Saturday, the 9th instant,
of your letter of the previous day's date.
Tn reply to your request that I should submit your proposals for a change in the
railway clause of the terms of Union to the Local Administration for their consideration and acceptance, I have the honor 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 tho matter binding
upon them.
I have the honor to be, &c,
(Signed,)        < G. A. Walkem,
Attorney- General.
James D. Edgar, Esq.,
Victoria.
APPENDIX E.
Victoria, May 18th, 1874.
Sir,—I have the honor to acknowledge having received your letter of the 11th
inst., 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 24
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 inst., I stated most distinctly
that I was making the proposals contained in it bythe instructions and on behalf of the
Canadian Ministry. You have, however, done me the honor of assuming that my statement was incorrect, and that I am acting without authority or 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 honor 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 the honor to be,
Your obedient servant,
(Signed,) J. D. Edgae.
Hon. George A. Walkem,
Attorney-General, &c.
APPENDIX F.
Victoria, May 18th, 1874.
Sir,—In reply to your letter of this date, I must express my surprise and regret
that you should have taken umbrage at the contents of my letter of the 11th inst. Mr.
Mackenzie is an official, and 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
I 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 import mce to the Province,'I must be pardoned for considering it my duty
in my public capacity to ask for your official authority for appearing in the rote of an
agent contracting for the Dominion of Canada. This information I have not yet
received.
I have the honor to be,
Your obedient servant,
(Signed,) Geo. A. Walkem.
J. D. Edgar, Esq.
Copy of a Report of a Committee of the Honorable the Privy Council, approved by His Ex->
cellency the Governor General in Council, on 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 Honorable 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 11th Section that: *
" The  Government of the Dominion undertake to secure the commencement ^
25
" 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 sea-board
" of British Columbia with the railway system of Canada; and further to secure the
" completion of such railway within fen 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:
" 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 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 undertaking
" should consist of such liberal grants of lasnd, and such subsiny 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
*J CD
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
" construct and open for traffic such coach'roadfrom 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 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 a
" computation 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 pro-
" posed in ten years. L° 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 part-
" nership with Canada, and they were united to construct certain public works, but
"before 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 Shy lock would have demanded his f 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 circumstance -, tho essence q£
the engagement being such diligence as was consistent with moderate expenditure,
and no increase in the then rate of taxation.
19—4 26
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 Allan, 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 and a 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 charter, and Ohe 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 endeavor 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 or
several contracts, by a company or companies, which may or may not become proprietors of the line after it is constructed.
Mi*. James D. Edgar was despatched 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 pioposifion 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 to Mi*. Edgar concerning them.
The propositions made by Mr. Edgar involved an immediate heavy expenditure
in British Columbia not contemplated by the terms of Union, namely, the construction
of a railway on Vancouver's Island, from the Port of Esquimault to Nanaimo, as compensation to the most populous part of the Province for the requirement of a longer
time for conrpleting the line on the mainland. The proposals also embraced an obligation to construct a road or frail 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. 27
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 oh
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 favor of the course pursued by the
Dominion Government.
It may not be out of place to mention that the action of t^he Dominion Government regarding the graving dock, shows a desire to do everything that can fairly be
CD CD O CD * \J O «/
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 Govern-
ment to assist otherwise.     This was agreed to, and Parliamentary authority was
CD J «/ «/
obtained at the late Session to enable the Governor General in Council to advance
$250,000 as the work progressed.
The report of Mi*. 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 Honorable Lord Carnarvon
Secretary of State for the Colonies, with this minute.
Certified.
(Signed,) W. A. Himswortb:,
Clerk, Privy Council.
(No. 183.)
Quebec, 9th July, 1874.
My Lord,—-I have the honor 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,
The Right Honorable (Signed,) Dufferin.
The Earl of Carnarvon,
&c, &c, &c.
Canadian Pacific Railway—Telegraph Line.
Proposals are invited for the erection of a line of telegraph along the general
route of the Canadian Pacific Railway, as may be defined by the Government. The
proposals to embrace the following points, viz.:—
The furnishing of all materials, labor, 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 tox a width of 132 feet or such 28
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.
4. 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 the 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 the
22nd day of July next.
By Order.
Department of Public Works, F. Braun,
June, 1874. Secretary.
(No. 192.)
Ottawa, 18th July, 1874
j •
My Lord,—I have the honor to enclose a copy of an approved Report of a
8th J l   1874    Committee of the Privy Council requesting me to inform your Lordship
y> that Mr. Walkem,  the Attorney-General  of the Province of British
Columbia, has been deputed by that Government as a special agent to lay before your
Lordship the claims of British Columbia, under the 11th clause of the terms of the
Union with the Dominion of Canada.
I have, &c,
The Right Honorable (Signed,) Dufferin.
The Earl of Carnarvon.
Copy of a Report of a Committee of the Honorable the Privy Council, approved by IBs
Excellency the Governor General in Council, on the 8th July, 1874.
On a despatch dated 11th June, 1874, from His Honor 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 11th clause of the terms of Union, and
that it is advisable in the interests of that Province that tire case be laid before the
Imperial Government by means of a memorial to be pre: I'iroJ to the Secretary of
State for the Colonies by the Attorney-General of British Columbia as special agent
and delegate of that Government
rp_
The Lieutenant-Governor states that, in accordance with the advice of his
Ministers, he has appointed the Honorable George Antho'ny 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 Honorable Her Majesty's Principal Se'cretarv 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 Honorable the Secretary of State, the Committee
advise that the above request be acceded to.
Certified.
(Signed,)        W. A. Himsworth,
Clerk. Privy Council.
(No. 198.)
Ottawa, 22nd July, 1874.
My Lord,—I have the honor 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,
The Right Honorable (Signed,)       Dufferin.
The Earl of Carnarvon.
(No. 206.)
[Ottawa, 31stJuly, 1874.
My Lord,—I have the honor to transmit a copy of a despatch and enclosure from
_ the Lieut.-Governor of British Columbia, together with the petition to
•"       ' Her Majesty therein referred to from'tho inhabitants of Victoria, respecting the non-fulfilment by Canada of the terms of Union.
I have, &c,
(Signed,).       Dufferin .
The Earl ©f Carnarvon.
-■■■■■■
(Copy.—No. 207.)
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 honor to enclose an approved
Order in Council, in which my Government sets forth more at large its
^' views with respect to its pending dispute with British Columbia, and
expresses a desire that your Lordship would use your good offices in promoting a
settlement of the misunderstanding, in accordance with the suggestion you have been
good enough to make.
I have, &c,
(Signed,) Dufferin.
The Right Honorable
The Earl of Carnarvon.
Copy of a Report of a Committee of the Honorable the Privy Council, approved by His
Excellency the Governor General in Council, on the 23rd July, 1874.
The Committee of Council have had under consideration the despatch from the
Right Honorable 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 onthe part of Lord Carnarvon in the following terms: " If both
" Governments should unite in desiring to refer to my arbitration all matters in contro-
" versy 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
co nsideration.
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
specie 1 reference to Mr. Walkem's communication in Ottawa of the 15th July, convey
subst antially all that this Government have to say upon the subject; and that the
Gove nment 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 despatch.
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 oi"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 Columblia Government.
No other steps could have been taken furtKer 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 the 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 means 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 line 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
endeavor 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 shpuld be mentioned that before 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 Allan Company, that an extension of time of atj 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 all parties.
The proposal ma^e 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 31
the terms of union by
ilthough they were bound only to
willing to exceec
Government to modify the terms of Union in its own favor 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
constructing a railway on the Island of Vancouvei
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.
CD
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 bjr them of endless claims for
compensation.
Mi*. 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 fail'.
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 bey@nd 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 Honorable the Secretary of State for the Colonies.
Certified,
(Signed,)        W. A. Himsworth,
Cl&rk, Privy Council.
(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 influenced the Union of British Columbia with the Dominion of
Canada in 1871: I will only add on this head that Mi*. Walkem laid his case before
me in temperate and reasonable terms.
2. I have also received a telegram from the Lieut.-Governor .of British Columbia,
stating that upon the advice of his responsible Ministers he accepts, on behalf of 33
I
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 the 31st July, enclosing copy of the
Report of the Canadian Privy Council of the 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 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 Mi*. Edgar, on behalf of the Canadian Government, to
XX *S CD 7 7
the Provincial Government of British Columbia, may be stated as follows:—
(1.) To commence at once, and finish as soon as possible, a railway from Esquimault to Nanaimo.
(2.) To spare no expense in settling as speedily|as possible the line 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 telegraph across the continent.
(1.) The moment the surveys and road on the mainland are completed, to spend
a minimum amount of $1,500,00U annually upon it he construction of the Railway
within the Province.
7. I am under the impression, after conversing with Mi*. 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 be willing
to accept, but he has stated very clearly, in conversation at this office, the 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
nas been published in the Colonial press, you no doubt
A- J. '    v
n the last preceding paragraph but
red
the Queen, of which
have a copy.
8. Taking each point seriatim, as numb
one, I understand it to be urged:—
(1.) That nothing is being done by the Dominion Government towards commencing and pushing on a railway from Esquimault to Nanaimo.
(2.) That the surveying parties on the mainland are numerically'very weak;
and that there is no expectation in British Columbia, or guarantee given on the part
of the Dominion, that the surveys will be proceeded with as speedily as possible.
(3) That the people of British Columbia do not desire the waggon road offered
by the Dominion Government, as it would be useless to them; and that even the
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 the 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 33
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 the construction of the railway. I conceive that all
that was intended by it was to retain the 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 reasonable security that the railway will be completed
as speedily as possible.
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 Ministe. s,
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 the Canadian Government and Parliament to adhere as closely as possible to the
pledges given to British Columbia at the time of the Union ; to do that which is
just and liberal towards the Province, and in fact to maintain the good faith of the
Dominion in the spirit if not in the letter of the original agreement under circumstances which I admit to be of no ordinary difficulty.
12. On the other hand, however, it would be unfair to deny that the objections
stated by Mr. Walkem have a certain foundation and force, and I have every confidence in order to obtain the settlement of a question of such vital importance to the
interesfs of the whole Dominion, the Canadian Government will be willing to make
some reasonable concessions such as may satisfy the k cal 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 tho considera ions 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 Esquimault to Nanaimo should be
begun at once.
(2.) That the Dominion Government should greatly increase the strength of the
survey:ng 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 labor 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 line 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 be 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
bv the terms of Union, at all   ovents within fourteen years from 1871. I cannot but
19—5 34
think that the annnal 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 the 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 fixod. 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 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,
may, 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 so me 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 expression of a personal feeling
may, in such a case as this, be indulged, I may perhaps be allowed to say how sincerely I prize the recollection of the share which I was then permitted to have in that
great work, how deeply I -should grieve 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 honor of the Dominion of Canada.
18. It will be very convenient if your Government should fee* 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 the main acceptable to
them, in order that no unnecessary delay inay take place in bringing this matter to
a conclusion.
1 have, &c,
Governor General (Signed,) Carnarvon.
The Right Honorable
The Earl of Dufferin, K. P., K. C. B.
(No. 212.)
Ottawa, 21st August, 1874.
My Lord,—In continuation of my despatches, noted in the margin, on the subject
Xo. 182, 9tb July of the suggestions made by your Lordship for fre settlement of the
Ait, rfist       differences between the Government of British Columbia and teat of
No   3 677   29th ^e Dominion, I have the honor to enclose a copy of a despatch from
July, 1874.      Lieutenant-Governor Trutch acknowledging the receipt of the copy I
sent him of your despatch, No. 110, of the 18th June.
I have, &c,
The Earl of Carnarvon. (Signed) Dufferin. 35
(Copy—813 D) Government House,
Victoria, B. C.
July 29th, 1874.
My Lord,—I have the honor to acknowledge the receipt, on the day before
yesterday, of your Lordship's despatch of the 3rd inst., transmitting by direction of
the Right Honorable 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 matters now under discussion between the Government of Canada and this Province in relation to the 11th 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.
His Excellency
The Right Honorable
The Earl of Dufferin, K. P., K. C. B.
(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 Mi*. Mackenzie and
his colleagues have consented to adopt several suggestions recommended to them by
your Lordship, should it be 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.
3. I have no 4oubt, however, it will be felt throughout the country that the only
mode by which the Dominion could tie 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 honor to transmit a sketch map of the area now under
exploration in British Columbia, accompanied by a memorandum by Mi*. 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 despatch, and that the employment of
any additional staff would uselessly increase the expense without forwarding the
work. I have, &c,
(Signed,)       Dufferin.
The Right Honorable
The Earl of Carnarvon
&c,       &c, .     &c. 	
Copy of a Report of a Committee of the Honorable the Privy Council, approved by
Excellency the Governor General, on the 11th September, 1874.
His
The Committee of Council have had under consideration the despatch of the
Ri<H!& Honorable 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 Esquimault 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
o «/ o
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 main-
land, 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
timj 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
be informed (if it be 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 the
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 favor of these proposals, and
.assurances were given very lately by. gentlemen of the highest position on the Island
that the course 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.
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 despatch 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
— "^
3*
a large force; a force larger 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 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 i-t five or
six poiuta 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 harbor from seaward are encumbered
by islands, and when reached the harbor is found to be destitute of anchorage. The
dangers of navigation are increased not alone by the precipitations 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 €k>vernment 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 1,500 feet by a width
of not more thaa 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
CD CD CD _^_^
show its distribution. Nearly two seasons were passed in examining the Rocky
Mountain Range and the Valley of the Columbia in the endeavor to obtain a
favorable pass. The result was that the explorers were driven north to what is
known as Jasper House Pass.
These facts are mentioned to give some idea of the enormous labor 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 contemplated or possible, and before plans can be made of bridges and
other works ^f 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 2,000 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 condition involves another precise engagement to have the whole of
the railway communication finished in 1890. There arethe 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 be found absolutely necessary to secure a present settlement of the controversy 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.
With regard to the ameliorating proposal to dispense with the formation of a
road or trail across the country, and the construction of a telegraph line, on the representation of the 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 railways
-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 absolutety 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 mu&t rather be looked upon as an earnest of the desire of
the Government to do every thing in reason, in order to keep within the spirit of its
engagements.
The in'ention 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 I
39
" 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 Esquimault 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 has compensation for delay in fulfiling 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, iand 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 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."
It may be noticed in connection with this extraordinary statement that the
construction of such a road was on£ 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
«/ */ •/     o
advantage to the people generally.
4th. Mr. Walkem further urges "That by Sec. 11 of the Canadian Pacific Rail-
" way 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."
This is simply a complaint that the present Government provided for Parliamentary supervision over the 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 «io Government decision could prevent future
Parliamentary action.
The 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 the 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.
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 Parlimentary 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.
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 Esquimault, on Vancouver Island, had been decided to be the terminus
" of the Canadian Pacific Railway, and that a portion of the line had been located
" between the harbor of Esquimault 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 of Vancouver Island to Esquimault 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 favorable opinion now entertained by the Engineers of the
Bute Inlet route, are desirous of forcingjYour 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 t'hat 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 favorable consideration." 41
The Earl of Carnarvon to the Earl of Dufferin.
Downing Street, November 17th, 1874.
My Lord,—I duly received your despatch of the 18th September, inclosing 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
Dominion 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, I now proceed to announce the conclusions at which I have arrived. They
are:—
1. That the railway from Esquimault to Nanaimo shalPJbe commenced as soon as
possible, and completed with all practicable despatch.
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 be distasteful to me, if indeed, it were not impossible to prescribe strictly any
minimum of time or expenditure with regard to work of so uncertain a nature; but
happily, it is equally impossible for me to doubt that your Government will loyally
do its best in every way to accelerate the completion of a duty left freely to its
sense of honor and justice.
3. That the waggon road and telegraph line shall be immediately constructed.
There seems here to be some difference of opinion as to the special value to the
Province of the undertaking to complete these two works; but after considering what
has been said, I am of opinion that they should both be proceeded with at once, as
indeed is suggested by your Ministers.
19—6 42
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 suryeys are
sufficiently completed to enable that amount to be expended on construction. In
naming this amount I understand that, it being alike the interest and the wish of the
Dominion -Government to urge on with all speed the completion of the works now to
be undertaken, the annual expenditure will be as much in excess of the miniTnnm of
$2,000,000 as in any year may be found practicable.
5. Lastly, that on or before the 31st of 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 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 ifeetween
your Lordship and me.
It will, of course, be obvious that the conclusions which I have now conveyed to
you uphholds, 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 rangements might equitably, and in the interests of all concerned, be
substitute »r those which had failed. And in determining to supplement the construction of some part of the new railway by that vast chain of water communica-
tions-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 honorable adherence to
past engagements which ought, in an especial degree, to govern tho
strong and populous community with a feebler neighbor, and which I
be the characteristic of all parties and statesmen alike within the
Canada.
I have, &c,
(Signed,) Casnarvon.
dealings of a
*.vell know to
Domrai<in of
(North America, No. 76.)*
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 railwav
agreement in the terms of Union. ,
Although I have been favored 1 »y your Lordship with many and lengthened
interviews on the 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 of sufficient excuse for again troubling you.
* Printed for the use of the Colonial Office, November 10th, 1874. 43
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 the 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
' O J 1 ,       ,
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 honor 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 railway
agreement.
The key to the general policy of Her Majesty's Government, in relation to
British North America, is, so far as I understand, to be found in the preamble of the
Act of Confederation, which briefly declares that " Union would conduce to the wel-
" fare 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 endeavored on hei\part loyally to follow it.
It 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
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 Sritish Columbia,
expressing a desire that British Columbia should be incorporated with Canada. This
despatch not only re-states the principles set forth in the Confederal on Act, but also
shows in what respect they are peculiarly applicable to British Columbia. The folio .v. i. _• i s a quotation from the despatch:—
'• Her Majesty's Government," writes the Secretary of State, " 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 neighbor.
" Most especially is this true in the case of internal transit. Jit 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.
" Bey Majesty's Government are aware that the distance between Ottawa and u
Yictoria 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 y * * 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, j
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.
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 maybe 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" July, 1871. And British Columbia, on her part, entered into certain
obligations in favor of the Dominion, with regard to the public lands of the Province.
The word "simultaneously," which appears in this argreement, 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
2nd. 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 formerly 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 45
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 Canada 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 the three years  succeeding
Union, made due effort to complete the railway surveys in British Columbia ;
That the Dominion Government did not, on the 20th July, 1873, commence 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 ~^hat in June, 1873, the Dominion Government
selected the Harbour of Esquimault. 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 the terminus and Seymour Narrows ; that
some weeks prior to the day named in the agreement for the commencement of the
construction of the main line, they secured from the Provincial Government " in
furtherance of such construction" a reserve of a valuable tract of land lying along
.-.  t «/       o * o
this projected line and some 3,000 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 eHminated. 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.
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 favor the Provincial case.
I shall discuss these offers seriatim, and endeavor to ascertain their value taken
in connection with the 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 Esquimault to Nanaimo
" immediately, and push that portion of railway on to completion within the shortest
" practicable time." 46
The offer to commence work immediately at Esquimault (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 Loidships 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 Esquimault) ; .nor. indeed, is any definite period fixed for the completion of even this short
portion of the railway, which would take neither much time nor 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 the* words " the portion of railway,"
means the Esquimault and 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 be possible to complete the <iuvfs before the close
of the year," 1874. The reasonable inference deducible 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 elapsepl 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 the Province at least, aaul
have further placed beyond conjecture the commencement of construction works early
in 1875. I have been informed by a railway engineer here that, as a matter of practice, the exploratory surveys settle the general bearing or course of a line of railway,
and that the subseqent location surveys may be proceeded with at several points
along such line simultaneously, and the work of construction be commenced at those
points without waiting for the actual location of the whole line. Such being the
case, there is no vafid reason, in view 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 tho 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 £50,00Q  or £60,000 required for its construction Wtful<|I(%ip. *cem&y 47
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 especially made. For the transport of
supplies and to meet engineering necessities along the line as railway
gress, a merely passable road is necessary and must be constructed; thi
all that is required. The telegraph line, when finished, would doubtles
but its construction is a question which °
way agreement.    The railwav Is what i
works pro-
in fact, is
be useful,
houia oe treated independently of the rail-
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 rail-
«/      v CD
" way, a minimum expenditure upon the works of construction within the Province,
" of at least $1,500,000," 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 (£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 (£700,000).
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,
(£300,000). Again, dividing the whole cost $35,000,000 (£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 the 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 bases 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
mil follow the completion " along the whole length of the railway in the Province,"
of the waggon road mentioned in offer No. 3. The completion of this road, in turn, has to
depend upon the completion of all the surveys, and upon the location of the-whole
line on the 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 con-
gtmetion 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 23J 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
it£e 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
•tfirtually 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. Wj/f
48
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 impossi-
" bility 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 financinl
",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 lead 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 favorable
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 favorable to the enterprise, is dated only
some fouf* 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 wss
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,
1873. With the political or other causes which subsequently led to the surrender of
the charter, it is not my duty to deal. The 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 the 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 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 teen 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, oral the
farthest in 1885. 4»
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 bo 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 conten fcion
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 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 n ade
by the Dominion Government to " commence railway construction immediately from
" Esquimault to Nanaimo." Here it is admitted that the Dominion Government were
in a position, at least in May last (the date of the letter), if not before, to .have begun
the railway in the Province. There is, and has been, therefore no excuse for d« lay
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 pros-
" ecution of the work of construction within the limits of the Province, should be
" guaranteed."
To these two adtnissions 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 appeal 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.
Lhave thus dwelt upon the letter at considerable length, as your Lordship's
attention has been specially directed to it in conneotion with the 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 Esquimault, and
finish about sixty miles of it (time of completion indefinite). On the mainland she
will prosecute the surveys for the remainder of the line, and finish these surveys
(time also indefinite). She will thereafter "locate" the line falling within the
Province (time also indefinite). When this can be achieved, she will make along
this " located " line, a waggon road (which the Province does not want), and a tide-
graph line (which the Province has not asked for), and will carry the latter across
the continent (timeof 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 works in the Province, and spend thereon, year
by year, not less than £300,000 (whether this sum will include the Esquimault line or
not is doubtful. It is the only expenditure offered. As lhave shown your Lordship,
Canada thus proposes to ensure to the Province the completion of the line within Ler V
50
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 (2nd) shall (virtually, though not quite so expressed) surrender her right to, and interest in, the completion of about 2,000 miles
of the line necessary to connect the 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
ensured; 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 endeavored 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. 313.)
Ottawa, 18th December, 1874.
My Lord,—I have the honor to transmit to your Lordship a copy of an Order of
the Privy Council, in which my Ministers convey to your Lordship their best
acknowledgment for the pains and trouble you have been good enough to take in
promoting the settlement of the differ once which had arisen between British
Columbia and the Government of the Dominion.
I have, &c,
(Signed,) Dufferin.
The Earl of Carnarvon,
&c,     &c,     &c. 51
(902 D.)
Copy of a Report of a Committee of the Honorable the Privy Council, approved by His
Excellency the Governor General in Council, on the 18th December, 1874.
The Committee of Council have had under consideration the despatch of the
Right Honorable 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 fail* 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 hy 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.
TMe 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. Htmsworth,
Clerk, Privy Council.
(Canada.—No. 4.)
Earl Carnarvon to Earl Dufferin.
Downing Street, 4th January, 1875.
My Lord,—I have the honor 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 ser-
.vices 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 Railway.
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 to a satisfactory
conclusion a question of.so much difficulty, of removing, as I trust, all ground of future
misunderstanding between the Province of British Columbia* and the Dominion, and
CD '
of thus contributing towards the ultimate completion of a public work in which
they, and indeed the whole Empire, are interested.
I have the honor to be, my Lord,
Your Lordship's most obedient humble servant,
(Signed,) Carnarvon.
Governor General
The Right Honorable
The Earl of Dufferin, K.P., K.C.B.
&c,       &c,      &c. 08
(Copy No. 18.)
British Columbia,
Government House, 31st March, 1874.
Sir,—I have the honor to enclose herewith a minute of the Executive Council of
Min ite of *his Province, together with a copy of the Act respecting Articles 2
Council, 30th and 12 of the terms of Union, passed at the recent Session of this
Mann, 1874. Legislature of British Columbia, and to which this minute refers; and,
in accordance with the advice and desire of my Ministers, I beg you to lay this
despatch and its enclosure before His Excellency the Governor General, and to commend the request of this Government, expressed in the said minute, to His
Excellency's favorable consideration.
Tho Honorable
The Secretary of State
for Canada.
I have the honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Trutch.
Copy of a Report of a Committee of the Honorable the Executive Council, approved by His
Excellency the Lieutenant-Governor, on the 30th day of March, 1874.
The Committee of Council have had under consideration a memorandum dated 16th
March, 1874, from the Honorable the Minister of Finance, submitting that as authority has been given by the Legislature for the expenditure in excess of revenue, of the
sum of $300,000 or thereabouts, it is advisable that immediate steps shpuld be taken
to i nsure that that sum shall be at the call of the Government when required, and
recommending that a copy of the " Act to alter the terms of Union 1874," be sent to
the Dominion Government with the request that the Provincial Government be
informed by telegram if it is the intention of the Dominion Government to introduce
a corresponding measure to the Parliament of Canada, in order that should a negative
answer be returned, no time may be lost in obtaining the funds elsewhere under the
powers conferred by the " British Columbia Loan Act, 1874."
The Committee concur with the recommendation of the Minister, of Fiiianeg, and
advise its approval, and request that Your Excellency will be pleased to forward a
coj/y of this report through the proper channel to the Dominion Government, at the
same time asking that a measure to compliment the Act to alter the terms of Union
1874, be introduced to the Parliament of Canada, and that a telegram anticipating
any written reply may be sent to Your Excellency.
Certified.
(Signed,)
W. J. Armstrong,
Clerk, Executive Council.
37 Vict.]
[No. 1.
TERMS OF UNION AMENDMENT.
An Act respecting Articles 2 and 12 of the Terms of Union,
Preamble.
[Assented to 2nd March, 1874.]
Whereas, by Article 2 of the terms of Union between this Province and the Dominion of Canada, Canada became liable for the actual debt due by the Province
at the date of Union, and agreed to pay to the Province, half-yearly in advance,
int erest at the rate of five per centum per annum on the difference between such
acfual debt, and a certain amount hereinafter called the "allowed debt," which
allowed debt has been fixed and determined by chapter 30 of the Acts of the Parliament of the Dominion of Canada, passed in the 30th year of the present reign. 96
And, whereas, it has been agreed by and between the Dominion Government
and^ the Provincial Government that, notwithstanding the provisions contained in
Article 2, and with a view of enabling the Province to undertake the construction of
important public works, that the Dominion Government shall pay to the Provincial
Government such sums of money together not exceeding the difference between the
actual debt and the said allowed debt, as may from time to time be applied for, and
to be charged against such difference of debt aforesaid.
And, whereas, it has also been agreed by and between the two Governments that
the Dominion Government shall pay to the Provincial Government the sum of
$250,000 to aid in the construction of a graving dock at Esquimault, in lieu of the
guarantee of five per cent, per annum on £100,000 for ten years, as set forth in
Article 12 of the terms of Union.
And, whereas, the sanction of the Parliament of the Dominion of Canada and
of the Legislature of British Columbia is necessary to ratify such agreements.
Therefore Her Majesty, by and with the advice and consent of the Legislative
Assembly of the Province of British Columbia, enacts as follows:
1. Notwithstanding anything contained in Article 2 of the terms of Union
CD •/ CD
Respecting Arti- af°resaid, it shall be lawful for the Government of British Columbia,
cle 2 of terms subject to the above recited conditions, from time to time, to apply for
of Union. and to receive from the Dominion Government such sums of money
as shall together not exceed the difference between the actual debt and the allowed
debt of the Province.
2. In lieu of Article 12 of the terms of Union aforesaid, it shall be lawful for the
Respecting Arti- Government of British Columbia to apply for and to receive from the
cle 13. Dominion Government $250,000 in aid of the construction of a graving
dock at Esquimault; and upon payment of such sum Article 12 shall be void and of
no effect.   •
3. It shall be lawful for the Province of British Columbia to refund, at any time
Refund of money to the Dominion the sums so advanced as aforesaid, to be held upon
advanced.      and subject to the same conditions by the Dominion Government as
the moneys now held by them.
4. Provided that the provisions of this Act, or any negotiations made or entered
into in connection therewith, or the payment by Canada, or the acceptance by
British Columbia of any moneys under or by reason thereof, shall not
Saving clause. -m any. manner affect the railway or other clauses of the terms of
Union, or operate so as to waive or in any way affect any right or rights which
British Columbia may now or may hereafter possess, for or in respect of any existing
breach or breaches, or of any future breach or breaches by Canada of the terms of
Union between Canada and British Columbia, or operate as a waiver of the right of
the Province to insist upon the commencement, and the vigorous prosecution by the
Dominion Government of the construction of a railway simultaneously "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;" or of the right to have secured the
completion of such railway within ten years from the date of the Union, conformably
to section 11 of the terms of Union.
5. This Act shall not have any force or effect unless the above proviso be
Suspending inserted, in the same words, in any Act of the Parliament of Canada which
clause,   may be passed for the purposes of this Act. 54
(Copy No. 28.)
British Columbia,
Government House, 18th May,1874.
Minute of Execu-     Sir,—I have the honor to enclose herewith a minute of the Executive
tive Council.   Council of this Province to state that, in accordance with the advice of
Tel. Mess., May my Ministers therein expressed, I have this day addressed to you a
18th, 1874.      message by telegraph, of which a copy is appended hereto.
I have the honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Trutch.
The Honorable
The Secretary of State,
- • Ottawa.
(Copy.)
Lieutenant-Governor to the Honorable W. Scott.
Victoria, 18th May, 1874.
My Ministers request to be informed by telegraph 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.
(Copy.)
Department Secretary of State,
10th Junev 1874.
Sir,—I have the honor to acknowledge the receipt of your despatch, No. 28, of
the 18th ult„ purporting to enclose a minute of your Executive Council, and also
cbpy 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,
The Honorable Under Secretary of StaU.
The Lieutenant-Governor of British Columbia,
Victoria.
(Copy No. 39.)
British Columbia,
Government House, 9th June, 1874.
Minute of Coun-       Sir,—With reference to my telegraphic despatch to you of to-day's
cil, Sth June,     date, I have the honor to enclose a minute of my Executive Council in
accordance with which that telegram was addressed to you, together with copies of
Telegram   from the documents referred to in the said minute being.a copy of a telegram
Hon. A. Mac- to me from the Honorable A. Mackenzie which, at his request, I com-
kenzie.
Telegram   from
Lt.-Governor.
municated to my Ministers, and a draft of the telegraphic message
to  you in reference thereto sent by me at the instance of my Min-
stry
The Honorable
The Secretary of State,
Ottawa.
my
I have the honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Trutch. 55
Copy of a report of a Committee of the Honorable the Executive Council, approved by His
Excellency the Lieutenant-Governor on the §th day of 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 Hon. Alexander McKenzie, Premier of the Dominion of Canada
(copy of which is enclosed), respecting certain proposals in writing made on the 8th
day 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.
Certified.
(Signed,) W. J. Armstrong,
Clerk, Executive Council.    ,
(Copy.)
The Hon. A. Mackenzie to Lieutenant-Governor Trutch.
s>
Ottawa, 8th June, 1874.
On May 8th Mi*. Edgar, on behalf of the Dominion Government, made certain
proposals to your Government respecting the construction of the Pacific Railway,
which involved immediately heavy expenditures for purchases not contemplated by
the terms of union, in consideration of foregoing the limit of time for the completion
of the Railway.
I exceedingly regret that your Government have not replied to the proposals or
apparently considered them. I beg, therefore, that you will now inform your Ministers that the proposals are withdrawn.
(Signed,) A. Mackenzie.
(Copy.)
Lieutenant-Governor Trutch to the Hon. R. W. Scott, Secretary of State.
Victoria, June 9th, 1874.
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 Mi*. Walkem, were proposals to this Government from the Dominion Government, and that they consider it remarkable that the only co'mmunication to this
Government, which acknowledges such proposals as authorization, should at the
same time withdraw them.
(Signed,)      .Joseph W. Trutch. ;|H
Department Secretary of State,
25th June, 1874.
Sir,—I have the honor to acknowledge the receipt of your Despatch, No. 39, of
the 9th inst., transmitting a copy of a minute of your Executive Council, together
with a copy of a telegram addressed to you by the Honorable 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,
To His Honor (Signed,) Edouard J. Langevin,
The LieutenanfrGovernor Z7wcZer Secretary of State.
of British Columbia,
Victoria. or//
At
(Copy of No. 46.)
British Columbia,
Government House, 26th June, 1874.
Minute of Ex.       Sir,—I have the honor to acknowledge the receipt of your despatch*
Council.       of the 10th inst. referring to my Despatch, No. 28, of the 18th may,
Copy of Tele-  and informing me that the minute of Executive Council, which my said
gram.        despatch 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 tho honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Trutch.
The Honorable
The Secretary of State,
Ottawa.
Copy of a Report of a Committee of the Honorable the Executive Council, approved by His
Excellency the Lieutenaut-Governor on the 18th day of May, 1874.
On a memorandum dated 16th May, 1874, from the Hon. the Attorney-General,
recommending that His Excellency the Lieutenant-Governor be respectfully requested
to ascertain by telegraph from the Hon. Secretary of State whether any propositions,
purporting to be or to have been made by James D. Edgar, Esq., on behalf of the Domin-
K>n 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.
(Signed,)       W. J. Armstrong,
Minister of Finance and Agriculture and
Clerk of the Executive Council.
Certified as true copy of original report.
(Signed,) John Ash,
Provincial Secretary.
(Copy Telegram.) 	
Victoria, 10th May, 1874.
My Ministers request to be informed whether Mr. Edgar is empowered to nego-
.tiate with this Government, and whether propositions purporting to be made by him
on behalf of the Dominion Government will be considered binding by that Govern-
ment.
(Signed,) Joseph W. Trutch,
Lieutenant- Governor.
The Honorable R. W. Scott,
Secretary of State,
Ottawa, Canada. 	
(Copy.)
Department Secretary of State,
11th July, 1874.
Sir,—I have the honor to acknowledge the receipt of your despatch, No. 46, of
the 2fcJth ulto., covering a copy of the minute of your Executive Council, and of the
telegram founded thereon, referred to in your despatch, No. 28, of the 18th May last,
on the subject of the mission of Mr. J. D. Edgar to British Columbia.
I have, &c,
To His Honor (Signed,) Edouard J. Langevin,
The Lieutenant Governor Under Secretary of State.
of British Columbia,
Victoria. 5?
Ottawa, Ontario, June 8th, 1874.
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. I beg, therefore, that you will now inform your
Ministers that the proposals are withdrawn.
To Lieutenant-Governor Trutch.
(Signed,)
A. Mackenzie.
Victoria, June 9th, 1874.
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.
The Honorable R. W. Scott,
Secretary of State,.
Ottawa, Canada.
(No. 40.)
British Columbia,
Government House, 11th June, 1874.
Sir,—I have the honor to enclose for the consideration of Kis Excellency the
Minute of Ex. Govottior General a Minute of the Executive Council of this Province,
Council. representing that British Columbia is suffering great injury from the
failure by Canada to carry out the obligations of the 11th 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 advise of my Ministers, I have appointed the Honorable
George Anthony Walkem, Attorney-General of this Province, to be such special
The Eon. the agent and delegate, and at their request, I beg you to inform His Excel-
Secretary of lency the Governor General, that Mr. Walkem has been duly appointed
State, Otta-wa. &s such special agent and delegate, and to move His Excellency to
acquaint the Right Honorable Her Majesty's Principal Secretary of State for the
Colonies, tihatMr. Walkem has been authorized and instructed to place in his hands
the memorial of this Government, appealing to Her Maiesty 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 the honor to be, Sir,
Your obedient servant,
(Signed,) Joseph W. Tkutoh.
l*-3 58
Copy of a Report of a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieut.-Governor on the 11th day of June, 1874.
The Committee of Council have had under consideration the memorandum of
the Honorable the Provincial Secretary, dated 11th 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 Rail-
" way 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 sea-
" board 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."
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 harbor of Esquimault 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 infomal 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. »
CD
That the relaxation proposed was that British Columbia was that British, Columbia should agree to cancel the railway clause of the terms as regards the mainland
CD v O
part of the Province, and accept in lieu thereof a promise to build a wagon road after
the line of railway had been permanently located, on the completionpf which, at an
undefined time, railway construction would commence.
That such proposal has, however, been withdrawn.
That according to the preamble of the " Canadian Pacific Railway 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 railway.
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 Honorable the Attorney-General and the Provincial Secretary
witil the preparation of a memorial and remonstrance on behalf of the Provinces
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 report be approved, that the Honour
able 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'
it .Honorable t
he
Secretary of State for the Colonies, and of supporting
of the Rigl
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 introduo-
ticm to Her Majesty's Principal Secretary of State for the Colonies.
" Certified.
(Signed,) W. J. Armstrong,
Clerk, ISxecutive Council. 59
(No. 41.) British Columbl\,
Government House. 11th June, 1874.
Sib,—I have the honor to enclose, with reference to my telegraphic despatch to
you of this day's date, a minute of my Executive Counci 1. in accordance with the
Minute of Execu- advice contained, in which my said despatch and that to the Right
tive Council. Honorable, 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 the honor to be, Sir,
Your obedient servant.
(Signed,)       Joseph W. Trutch.
The Honorable,
The Secretary of State,
Ottawa. 	
Copy of a Report of a Committee of the Honorable, the Executive Council, approved by
His Excellency the Lieutenant-Governor, on the 11th day of June. 1874.
On a memorandum dated 11th June, 1874, from the Honorable, 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 Right Honorable, 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.
(Signed,)       W. J. Armstrong.
Clerk, Executive Council.
(No. 42.)
British Columbia, »
Government House. 11th June, 1874.'
Sib,—I have the honor to enclose for the information of His Excellency, the
Copy of Tele.     Governor General, a copy of despatch this day adddressed by me to
gram. the Right Honorable, 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 the honor to be, Sir,
Your obedient servant,
(Signed,)       Joseph W. Trutch.
The Honorable,
The Secretary of State,
Ottawa. 	
(Copy.) Lieutenant-Governor to Earl Carnarvon.
11th June, 1874.
My Lord,—I have the honor to state that I have this day, at the instance of my
responsible advisers, addressed to your Lordship a telegraphic despatch to the following effect:—" Colonial Secretary, London, eleventh June—Ministry desire notify you
"that delegate proceed immediately London, present appeal, British Columbia
"against breach by Canada Railway Terms Union."
I have, etc. *
(Signed,)       Joseph W. Trutqh. •
60
Department of Secretary of State,
Ottawa, 11th July, 1874.
Sir,—I have the honor to acknowledge the receipt of your despatch, No. 40, of
the 11th ult.. concerning a copy of a minute of your Executive Council, in reference
to the alleged failure by the Dominion Government to carry out the obligations of
the 11th clause of the terms of Union, and recommending 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 the Government of that Province.
To His Honor, (Signed,) Edouard J. Langevtn,
The Lieutenant-Governor, Under Secretary of State.
of British Columbia, Victoria.
j«
Copy of a Report of a Committee of the Honorable, the Privy Council, approved by His
Excellency, the Gevernor Genernl in Council, on the 8th Julys 1874.
On a despatch dated 11th June, 1874, from His Honor, 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 11th 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.
The Lieutenant-Governor states that, in accordance with the advice of his
ministers, he has appointed the Hon. Geo. 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 Honorable, 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 Honorable, the Secretary of State, the Committee advise that the above request be acceeded to.
Certified.
To the Honorable
The Secretary of State,
&'c,   &c,    &c. -
(Signed.) W. A. Himsworth,
Clerk, Privy Council.
Department of Secretary of State,
Ottawa, 11th July, 1874.
Sir,—I have the honor to transmit to you a certified copy of an order of His
Excellency the Governor General, in Council on & despatch of His Honor the
Lieutenant-Governor of British Columbia, under date the 11th ult., relative to the
alleged failure of the Government of the Dominion to carry out the obligations of the
HtiY clause of the terms of Union.
In reference to the request of the Lieutenant-Governor that the Right Honorable
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 el
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.
The Honorable G. A. Walkem, (Signed,) R. W. Scott,
Attorney-General, Secretary of State.
British Columbia,
Ottawa.
Ottawa, July 11th, 1874.
Sir,—As Mr. Himsworth arrived from Tadousac last night, I have the honor to
request you to furnish me—to-day, if possible—with the documentary authority
necessary to officially 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 the Province to the
Dominion Government.
It is of importance that I should leave fpr England and bring my work to a
close with all convenient speed, hence my request that you will provide me with my
letters today.
I have the honor to be,
Your obedient servant,
(Signed)       Geo. A. Walkem,
Attorney-General, B. C.
The Honorable
The Secretary of State,
&c,   &c,   &c.
Department of Secretary of State,
Ottawa, 13th July, 1874.
Sir,—With reference to my letter of the 11th inst., I have the honor 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
8th July, 1874. Walkem on the subject of the alleged failure of the Dominion Govern-
llth July 1874. ment to carry out the obligations of the 11th clause of the terms of
Union.
(Signed,)       Edouard J. Langevin,
To His Honor the Lieutenant Governor Under Secretary of State.
of British Columbia,
Yictoria. 	
(No. 52.)
British Columbia,
Government House, July 28th, 1874.
Sir,—I have the honor to state that I have received and laid before my
Executive Council your despatch of the 13th instant, 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 the. honor to be, Sir,
Your obedient servant,
■"■" (Signed,) Joseph W. Trutch.
The Honorable
The Secretary of State,
Ottawa. Ottawa, May 20, 1874.
I refer Ministry to my letter by Mr. Edgar which sufficiently indicated his
mission, and which they recognized. He is now recalled, and I await his return and
report.
(Signed,) A. Mackenzie.
To Lieutenant Governor Trutch,
Victoria.
Ottawa, July 13th, 1874.
Sir,—I have the honor to forward to you for your perusal, and for the information of your Government, twi copies of the protest of the British Columbia Government against the breach or infraction of tho "terms of Union " with Canada by the
Dominion Government, which I have been authorized 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 the honor to be,
Your obedient servant,'
(Signed,)       Geo. A. Walkem,
Attorney-General, B. C.
The Honorable Alex. Mackenzie,
Premier Dominion Government,
Department of Secretary of State,
Ottawa, 13th July, 1874.
Sir,—I am directed to acknowledge the receipt of your letter of this date,
addressed to the Hon. Mr. Mackenzie, transmitting two copies of the protest of the
British Columbia Government against the alleged breach or infraction of the terms of
O CD
Union »with Canada by the Dominion Xrovernment, which you have been authorized
to present in person to Her Majesty's Government; and also forwaiding two copies
of the chart referred to in the protest.
I have, &c,
Honorable G. A. Walkem, (Signed,)       Edouard J. Langevin,
Attorney General Under Secretary of State.
of British Columbia,
Ottawa.
(£&nada—No. 110.)
m Downing Street, 18th »fcine, 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 me 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 MaieBty's Government
would be very reluctant to take any action which might be construed as expressing 68
a doubt of the anxiety 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 disadvantage to all parties,
remain the subject of prolonged, and it may be, acrimonious discussion; and it has
occurred to me that as intheo-iginal 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 Lidians, and the pepsions fco 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 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 the 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; and 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 a'ct 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 iftiat 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-Governort of British Columbia. I have communicated to
Mr. Sproat, the1 agent for British Columbia, for t ransmission 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 the honor to be, my Lord,
Y
ours, &c.
Signed,)
Carnarvon.
(Copy of Telegram.)
Victoria, B. O, 4th August, 1874.
My Ministers request me to state for the information of the Governor General
that the following message, namely, " Colonial Secretary, London, 3rd August, upon
advice of responsible Ministers I accept, on behalf of British Columbia arbitration
offered in your despatch to Lord Dufferin 18th June. Please acknowledge. Joseph
W. Trutch, Lieut.-Governor British Columbia" has been this day telegraphed to
Loid Carnarvon.
(Signed,) Joseph W. Trutch,
Lieutenant-Governor.
To the Hon. R, W. Scott,
Secretary of State. w
64
(Copy of No. 53.)
British Columbia,
Government House, 3rd August, 1874.
Sir,—I have the honor to transmit to you, for the information of His Excellency
the Governor
Copyof despatch
Minute of Executive CouncH.
Copy   of   telegram.
t'o
General, a copy of a despatch addressed by me to Her. Majesty
Principal Secretary of State for the Colonies, expressing the acceptance by this Government of the offer made by his Lordship in his
despatch of the 18th of June, to the Governor General, to arbitrate in
the difference existing between the Government of Canada and this
Province   in relation to the railway 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
Copy of tele-      upon Lord Carnarvon's proffered arbitration, and in accordance with
gram. 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 which is also attached hereto, are
at the same time despatched.
I have the honor to be, Sir,
Your obedient servant,
The Honorable
The Secretary'of State,
Ottawa.
Signed,)
Joseph W. Trutch.
(Copy)
Lieutenant-Governor to Earl Carnarvon.
3rd August, 1874.
My Lord,—I have the honor to state that on the 28th ultimo, I received and laid
before my responsible advisers a copy of your Lordship's despatch, of June the 18th,
to Governor General the Earl of Dufferin, upon the pending difference between this
Province and the Government of Canada, in relation to the railway 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 thereon 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 by you in your said despatch: and to state that I have to day despatched 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 the Governor General of
Canada. I have, &c,
(Signed,) Joseph W. Trutch.
Copy of a report of a Committee of the Honorable the Executive Council, approved by
His Excellency the Lieutenant-Governor, on the 3rd day of 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. Honorable 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 this despatch the Secretary of State observes that he is strongly impressed 65
de
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 an I
obvious disadvantage >to all parties, remain the subject of prolonged, and it may b)
acrimonious, discussion.
That it has occurred to him that as in tho original terms and conditions of the
admission.#f British Columbia into the Union, certain points were reserved for tho
lecision 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 have presented themselves for settlement.
That if both Governments should unite in desiring to refer to his arbitration all
matters.in controversy, binding themselves to accept such decision as he may think
fair and just, he would not decline to undertake th is service.
That the duty which, under a sense of the importance of the interest 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 parries; 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 tho Right Honorable the Secretary of State for the Colonies, be
immediately communicated by your Excellency to that Minister by telegraph and by
mail, and 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.)
"(Signed,)
W. J. Armstrong,
Minister of Finance, and
Clerk of the Executive Council.
(Copy of Telegram.)
Lieutenant-Governor to Earl. Carnarvon.
London, 3rd August*
Colonial Secretary.
Upon advice of respensible Ministers. I accept on behalf of British Columbia
Arbitration offered in yeur despatch  to Lord Dufferin,  eighteenth June.   Please
acknowledge
(Signed,) Joseph W. Trutch,
■ Lieut.-Governor, British ('olumbia.
Lieut.-Governor to Secretary State.
Victoria, B. C, 3rd August. 1874.
My Ministers request me to state for the information of the Governor General,
that the following message, viz. :—
I London, 3rd August.
£* Colonial Secretary.
" Upon advice of responsible Ministers. 1 accept on behalf of British Columbia
19—ft mm
-pr<?>?   ClfwjfA      Cep$
66
" Arbitration   offered in   your despatch   to   Lord Dufferin,   18th June.     Please
•• acknowledge.
•• Joseph W. Trutch,
■: Lieut.-Governor British Columbia."
Has been this day telegraphed in Earl Carnarvon.
(Signed,) Joseph W. Trutch,
Lieutenant-Governor.
The Hon. R. W. Scott,
Secretary of State.
Ottawa, Canada. 	
Department Secretary ok State,
10th September, 1874.
SiR?—I have the honor 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
Honorable the Secretary of the State for the Colonies, expressing the acceptance by
your Government of his Lordship's offer, as conveyed in his despatch of the
eighteenth 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,
To ma Honor the Lieutenant-Covernor Under Secretary of State.
Oi British Columbia. Victoria.
(No. 8 A.) Ottawa, July 4th, 1874.
Sir,—I have been informed that you intend to leave for Quebec to-day. If this
be the ease, may 1 be excused for pressing upon your attention my present very unsatisfactory position in having received no definite information respecting my
credentials to the RightHouorable the Principal Secretary of State.
It is considered of great importance by the Government of British Columbia,
that I should use all possible despatch in executing-my mission to England.
May I therefore request you to inform me when I shall be put in possession of
the necessarv authority to enable me to accomplish my task.
I have £he honor to be,
Your obedient servant,
Geo. A. Walkem.
The Honorable A. Mackenzie.
&c. &c. &c.       	
(Copy No. 9 A.)
Ottawa, July 4th, 1874.
Sir.—Inreplv to vour letter to Mr. Mackenzie, of this morning's date, en-
quiring when you can procure your credentials as delegate of British Columbia to
the Imperial Government. 1 have the honor, 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 after the special messenger returns with it to the city.
I have the honor to be, Sir,
Your obedient servant,
(Signed.) Wm. Buckingham.
Hon. Ceo. A. Walkem,
&c &c. \f.
Ottawa.
g;fc
a £
a  ,

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
https://iiif.library.ubc.ca/presentation/cdm.chungpub.1-0114629/manifest

Comment

Related Items