The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-24
British Columbians Threat.
~ ening Secession.
THE PACIFIC RAILWAY SCANDAL.
History Of the Road and How II Changed
Government.
LORD DUFFERIN AS A PEACEMAKER.
OTTAWA, Canada, Feb. 81, 1877.

parties, introduced asperites been Instrumental in
changing the government, and even caused grave
threats OF secession be heard from the far West,
whcrc disappointed people are holding tho present
nstration responsible for tho ncn-iulaiment OF
past Pledges
In order to make tho matter understood on your
side of the line It will be necessary TO rchearse
portion Of
HISTORY DOMINION.
After the Trent affair Canada regarded by some
as possible battle ground between the United States
and England, and the English government Of that day
looked upon their northern dependent n OF
weakness rather than Of strength to the Empire Tho
country then consisted OF u union of but two prov
inces-Upper and Lower Canada-yct possessed con-
siderable revenue and an abundance OF vitality re-
suting from her large shipping and other enterprises
1t accordingly resolved by the homo government
that in order to MAINTAIN their hold here Il
would be necessary to strengthen the bond which
united the several interests. Suggestions were
made by the Gladstone Bright administration
that there should DO union OF some kind between
Nova Scotia, New Brunswick and the two Canadas
Tho latter provinces willing enough to JOIN their
ncighbors because OF the advantages attaching TO
large scaboard shipping ports and valuable shipping
Interests New Brunswick and Nova Scotia, however,
viewed the question in another light their trade beng
with the United States and feared that in legislative
union whcrc the union was to DO governed by a
majority OF the population controlling influence
might and operate adversely to their
cia welfare. Nevertheless, the difficulty was cven-
ually overcome by invoking the aid Of several Of the
principal leaders OF thought in the lower provinces,
among whom were Hons. DR.. Upper, Mr.. Tilley (now
the Governor Of New Brunswick), and MIR. Archibald
the Governor OF Nova Scotia. Tho union thus
accomplished by
TIE PASSAGE OF AN IMPERIAL ACT
in 1867, which the constitution of the Dominion
nj Canada and provision was made for the entrance
OF other colonies in British North America with the
OF the people, but without rcferoncc to tho
homo government The first province organized un-
der this act was Manitoba, which came into the con-
federation in July, lS70-a comparatively small tract
selected from Tho only settled portion OF that immense
district known as the Northwes Territory, and pur
chased by the Dominion government from the Hudson
Bay Company 1869 for 81 $780, COO This acquisition
not only extended the Dominica from the Atlantic to
Inc eastern slope OF tho Rocky Mountains, but the
existing prosperity OF the country its growth OF manu-
featuring, commercial and Shipping interests ssimu-
lated still greater development The imperial govern
ment, pursuing the policy that had been be.
gun, suggested To Canada the acquisition OF
british Columbia territory embracing everything
west of the Rocky Mountains from Alaska to Oregon
Delegates met III 1871 to confer with reference 10 the
terms which the Confederation could be strength
cncd, and the following were proposcd:-(1 An annual
IN
proportion 20 population, that bestowed other
Provinces t2 the retention of all their public lands;
and t5) q guaranty from the dominion government
that n iransconpcnta railway should be commenced
in two aud finished within ten years This meant
surrender Of all the revenues which were enjoyed
province
rlIx BRITISH GOVERNMENT,
in its anxiety have this bond completed, agreed
the Dominion she ud advance 10 British Columbia at
low rate OF interest, portion OF the amount neccs
rary TO begin the road The conditions were accepted
by the then government OF the daywhich is now tho
titan and ,tcI Tnhr Anrtnn olL
present leader oil the same, the Prime Minister
The late Lord Lisgar was tho Governor General. Ac-
tive preparations AT maze to carry these
plans with the new people.
II was est mated that the cost Of tho undertaking
would be about 5000 1000, C00 but as 1t deemed m
possible TO prosecute such gigantic enterprise
government account alone and inasmuch as wOthirds
OF the road consisted Of the fines, agricultural districts
on the con incnt II was determined to adopt the
method successfully employed IN the United states,
and invite the aid of outside capital The govern
ment accordingly advertised that they would give 10
nnv responsible company who would undertake. 10
build the road bonus oil $50 600 600 and twenty miles
OF land each side OF the line amounting TO about
&c, 900, 600 OF acres.
SIR HUGH ALLAN
of Montreal the weahcst man IN Canada, the largest
owner of shipping and the one best known to capital
lists In England, accepted these terms, formed
pany, and agreed to carry out the government obga
specified. He proceeded at once to the mother
try, and basing his representations Cd the success
which had attended the sale OF railway lands in Illinois
and others OF our States very nearly succeeded in
achieving the object OF his mission
At this junclurc, about three and halt years ago,
there occurred political cras tho midst OF which
SIR John Macdonald's administration went of
power tho fall being indirectly caused by certain mat
tcrs connected with the granting of this charter TO Sir
Hugh Allan II was assumed by tho opposition TO Sir
John that Sir Hugh Allan had pac INTO an election
fund Tor The conservative party OF Canada consider
able OF money to pc used politically as the price OF
his advantageous contract Cer,an letters, said to
have been stolen, and certain kilograms discovered
seemed to show the truthiuness OF portion OF this
accusation, and the consequence was that in accord
ancc with the usaecs OF this system OF government
the leader of The administration resigned his POSITION
and was succeeded by tho Hon. Alexander Muckenzc
Tho latter is alleged TO have been in opposition to
some oil tho important details OF the railway scheme
from It's inception on the ground that II was
TOO LARGE A BURDEN
TO impose on the people OF the older provinces OF Can
ada. as compensation Tor me acquisition Tor what was
described ian inh0sptabc of monntans; that
the experience Of the United states showed that
ansconlinen,a railway financially was mistake. and
that, while IL might be Il means OF developing tho re-
sources OF the Northwest the physical dill
cultIcs wcre such that The country would
not be able bear the expense in the limited number
years that had been agreed upon by Sir John Mac
donald and tho representatives. from British Columbia.
He compelled to admit. however, that the govern
mcnt pledged to build the railway, although
stouly maintaining that SIR Hugh Allan lad failed 10
convince the Enghsn capitalists mat II was desirable
work. If done at all, must be paid from the ordinary
revenues OF the Dominion.
OTHER SIDE
retortcd, and with no ttc asperty that the propo-
sition 10 tuild tho road as government work meant
the expenditure OF $500, 000 0C0, whereas had they
been suffered to remain In power the only outlay OF
the country would have been the honus OF O0d
which would DC more than repaid by the enhanced
value OF The public lands through which the railway
passed They also accused their opponents with de-
bcracly frustrating the scheme of Sir Hugh Allan, by
representing TO the English capitalists that these
900 900 acres oil land practically vaueiessas
much So III fact the cactus aud sage bush regions
lying along portion OF the Union PACING Railroad
Among tho carly events OF the new government was
the cancellation OF all the arrangements made by bis
predecessor, Sir John Macdonald with Sir Hugh Allan
Tho question which then arose and became party
h.fl. m rsttth sla MT
work or 10 use
TWO HUNDRED MILLIONS or ENGLISH CAPITAL
with an expenditure to the Dominion OF only
k3O, 600, COO which would cost the government Jour
and "A bali per cent interest," and the 90, 600 900 OF
acres that would cost only the price OF survey The
former plan was adopted tho policy OF the adj
mnistration, Mr. Mackenzie still asserting the impos-
siblty OF commencing the work IN Two and finishing
II IN ten years. according to tho original contract
Tho announcement naturally caused great deal OF
~ feeling ia The province OF Brush Columbia which
fcund expression through journals. through members