BEPORT Submitted to His Honour the Lieutenant-Governor by the Hon. Kichard McBride, the Hon. W. J. Bowser, and the Hon. W. E. Ross on their mission to Ottawa as a Delegation from the Government of . By Command. HENRY ESSON YOUNG, Provincial Secretary. Provincial Secretary's Office, 12th February, 1912.

To His Honour Thomas W. Paterson, Lieutenant-Governor of the Province of British Columbia:

MAY IT PLEASE YOUR HONOUR :

The undersigned have the honour to report that, in accordance with your instructions, they visited Ottawa as delegates to the Dominion Government for the purpose of settling matters relating to the adjustment of financial arrangements between the Province of British Columbia and the Dominion of Canada, and other questions in connection with the relations between the Province and the Dominion. The Delegation reached Ottawa on the evening of November 6th, 1911, and by arrangement with the Prime Minister waited upon him next morning, and handed him the following letter with the accompanying communication and memoranda dealing with the principal matters which it was desired to lay before him:— " RUSSELL HOUSE, OTTAWA, November 6th, 1911. " Hon. R. L. Borden, Prime Minister, Ottawa, Ont. " DEAR MR. BORDEN,—I beg to hand you herewith a formal communication over the signatures of my colleagues, the Hon. W. J. Bowser, Attorney-General, and the Hon. W. R. Ross, Minister of Lands, and myself, with regard to certain matters which the Provincial Government is desirous of taking up with you and your colleagues, with a view to an early adjustment of the same. " Yours sincerely, " RICHARD MCBEIDE."

" RUSSELL HOUSE, OTTAWA, Ont, November 6th, 1911. " Hon. R. L. Borden, Prime Minister of Canada, Ottawa, Ont. " SIR,—We, the undersigned, having been delegated by His Honour the Lieutenant-Governor of British Columbia in Council to submit for the consideration of the Federal Government various matters affecting the relations between the Dominion and Provincial authorities, beg to advise you of these as follows :— " ASIATIC LEGISLATION. " We feel satisfied that the determined stand of the Province of British Columbia against the further immigration of Asiatics is well within the knowledge of your Government. The Province in the past enacted and re-enacted a Statute, framed on the lines of what is commonly called the N 2 MISSION TO OTTAWA. 191S

' Natal Act.' The Federal authorities repeatedly disallowed these laws. The constitutionality of our legislation has also been questioned, but by reason of its disallowance immediately preced­ ing an appeal to the Privy Council, there has been no opportunity of ascertaining from the last Court of resort to what length, under the law, the local Legislature may go. We would most respectfully urge upon the Dominion Government the necessity of some early and effective action being taken, with the object of carrying out the wishes of British Columbia. It is obvious that what is in the interest of British Columbia in this respect is undoubtedly in the general interest of the whole Dominion. Asiatics are still coming to the country in large numbers, and to-day are as much a menace against white settlement and white labour as ever before in the history of the Province. " BETTER TERMS. " This issue is one which has already been discussed at length with both the Dominion and Imperial Governments. The data on file at Ottawa fully covers the position taken by the Province. We most respectfully urge upon you the appointment, jointly with British Columbia, of a competent tribunal, through whose agency the whole subject may be finally disposed of. We are prepared, at your convenience, to go fully into the matter with you. " DOMINION INTERESTS IN RAILWAY BELT AND IN PEACE RIVER DISTRICT. " As the settlement of British Columbia proceeds, it becomes more and more patent, we submit, that the development of the interests held by the Dominion Government in these districts, in the way of settlement and occupation, can best be forwarded by administration through the local authorities. We are prepared, on behalf of British Columbia, to purchase outright the rights of the Dominion in these properties. Pending a final settlement, the Province will under­ take to administer the lands under local laws and to account for all moneys received, less cost of administration, to the Federal Government.

" INDIAN RESERVES. " The title of the Crown in the right of the Province to Indian reserve lands in British Columbia was never questioned until within the past few years, when certain objections were raised thereto by the Department of Justice at Ottawa. We still maintain that the reversionary interest in all Indian reserves is the property of the Province, and that it is essential in the public interest that the attitude of the Province be maintained. It may be well, in this connection, to refer to the large excess acreage held on account of Indian reserves in British Columbia, and to the necessity, in view of the rapid increase in white population, of having an immediate readjustment of all reserves, so that the excess acreage may be released to the Province. " ALIEN LABOUR. " From the disclosures in the Courts in British Columbia during the past few months, it appears that the laws with regard to alien labour have not been properly enforced. As a result of this, resident labour has not received the protection that was intended by the Act. It is respectfully submitted that the subject is one for prompt and effective action on the part of the Federal Government. " In addition to the foregoing, it is proposed to take up with yourself and colleagues the following subjects:— " Foreshore lands: " Point Grey University site: " Victoria Drill Hall site: " Repayment to the Province of moneys expended on the construction of wharves in navigable waters and for mattress and rock-work in the Columbia and Fraser Rivers and other waters : " County Court Judges' salaries : " Fishery privileges: " The introduction to and propagation in British Columbia waters of whitefish and lobsters: " Construction of additional cruisers for the more adequate protection of British Columbia fisheries. 2 GEO. 5 MISSION TO OTTAWA. N 3

" In addition to all of these, there are various questions of a departmental nature which with your concurrence we are anxious to take up with the various Ministers. " We have the honour to be, Sir, Your obedient servants, " RICHARD MCBRIDE. " W. J. BOWSER. " W. R. Ross."

" RUSSELL HOUSE, OTTAWA, November 6th, 1911.

" MEMO, FOR THE HONOURABLE THE PRIME MINISTER. " Prince Rupert Foreshore.—In concluding with the Grand Trunk Pacific Railway arrange­ ments for the establishment of the Pacific terminals at Prince Rupert, the Province transferred to the company 10,000 acres of land, and after the same was subdivided the Province received back as its share one-quarter, which property for the most part still remains in the Province. There seems to be very little doubt that as Prince Rupert was not a public harbour when the Province entered Confederation, the title to the foreshore is in the Province rather than the Dominion. At the same time, it will set at rest any question of title to the property held by British Columbia if your Government would quit-claim to the Province any rights the Dominion might claim in the foreshore. " Songhees Reserve.—The Provincial Government, with the consent of the Indians and the Federal authorities, recently concluded the purchase of the Indian reserve, which is known as the Songhees Reserve, in the heart of the City of Victoria. It is proposed very shortly to subdivide these lands, so that portions may be set aside and sold for railway terminals, municipal and commercial purposes. While it is true that the Department at Ottawa has released all claims to the property heretofore held on behalf of the Indians, it is highly desirable, so as to remove any possibility of doubt as to title, that the Dominion should execute a grant in the nature of a quit-claim to all the property, including foreshore. In extinguishing the Indian rights and providing a new reserve for the tribe, the Province has expended to date upwards of $800,000. " Foreshore Lands in General.—It is contended by the Province that a very large majority of the foreshore lands in the Province is entirely the property of the local and not of the Federal Government. It appears that in the past grants of leases of Provincial foreshore land have been made from Ottawa without any reference to the Province. We are pleased to note that the Hon. Mr. Hazen, very recently, in connection with an application for foreshore lands at False Creek, Vancouver, instructed the city to take the matter up with the Province as well, as there might be involved in the transaction certain Provincial rights. In order to safeguard against any clash in the future between the Federal and local authorities, we beg to submit that hereafter, before final action is taken with reference to foreshore lands, Indian or military reserves, the Province should first be consulted and its approval obtained."

" RUSSELL HOUSE, OTTAWA, November 6th, 1911.

" MEMO, FOR THE HONOURABLE THE PRIME MINISTEE. " Point Grey University Site.—A large sum of money, approximating hundreds of thousands of dollars, has been expended by the Provincial Government at Point Grey Reservation, near Vancouver, in developing a reserve of Provincial land at this point. By an Act of the local Legislature a large tract of these lands has been set aside for the purposes of the University of British Columbia. It is proposed at the forthcoming session of the Legis­ lature of British Columbia to grant a considerable appropriation, in order that the University N 4 MISSION TO OTTAWA. 1912

building may be commenced, so that by the Fall term of 1913 the academic faculty may be enabled to begin work. While the Provincial Government has been steadily proceeding as set out above, there has been no objection offered from Ottawa. It has developed, though, within the past few months, that the Department of Militia lays claim to the University site. If it is intended to carry the matter to the Court, a situation will arise which is bound to most detrimentally affect the plans of the Province regarding higher education. In order to avoid any conflict of this character, and in the best interests of the Province, it is submitted that the claim of the Militia Department be at once withdrawn and a quit-claim of their interests (if any) executed by the Dominion Government in favour of British Columbia. It may be interesting to observe that this University site was the selection, after weeks of careful observation, extending all over British Columbia, of a Commission of leading Canadian educationalists selected from the Provinces of Nova Scotia, New Brunswick, Quebec, and Ontario."

" RUSSELL HOUSE. OTTAWA, November 6th, 1911.

" MEMO, FOR THE HONOURABLE THE PRIME MINISTER. " Victoria Drill Hall Site.—In connection with much-needed extension to the present Provincial Parliament Buildings at Victoria, at large outlay, several small parcels of land in Parliament Square have been acquired, so as to vest title to the whole square in the local Government. The contract for the new structure has been let and is being proceeded with. Before the plans proposed can be fully carried out, the Drill Shed, which is the only piece of the square not in possession of the Province, must be removed. The land upon which it stands has never been conveyed to the Militia authorities, but, from the records of the Department at Victoria, seems to have been simply set aside for their use. With the concurrence of the Federal authorities, and on the selection by their representative at Victoria, the Province has acquired, at a cost of $35,000, a valuable parcel of land, whereon it was intended a new Drill Hall should be erected, and which land the Province is prepared to grant in fee to the Dominion. It was also undertaken by the Province to pay to the Dominion whatever the present buildings would bring. In view of the urgency for the settlement of the question, we would press upon your Government the reasonableness of our position and the necessity for a prompt adjustment of the ease."

" RUSSELL HOUSE, ' OTTAWA, November 6th, 1911.

" MEMO, FOR THE HONOURABLE THE PRIME MINISTER. " Construction of Fishery Cruisers for the More Adequate. Protection of British Columbia Fisheries.—Under section 9 of the ' Terms of Union,' under which British Columbia entered Confederation, the Dominion authorities undertook the protection and encouragement of fisheries in British Columbia. It is conceded on all sides that the steps taken to date by Ottawa for the protection of our Coast fisheries are far from adequate. The poaching by foreign vessels in our home waters still continues almost unchecked. It would be difficult to estimate in what exceedingly large proportions the fishery wealth of the Province has been depleted, and advantages, which should have been enjoyed at home, have become entirely lost to the country. The immediate provision for additional cruisers, larger and faster than those in commission, is imperative. " The Introduction to and Propagation in British Columbia Waters of Whitefish and Lobsters and the Further Extension of Salmon Propagation.—The Provincial Fisheries Depart­ ment holds the view that whitefish and lobsters may be successfully introduced and propagated in Provincial waters, and we suggest that steps be taken during the present session to arrange for a transfer of these fish to British Columbia waters. 2 GEO. 5 MISSION TO OTTAWA. N 5

" As regards salmon, we would respectfully suggest that money could be profitably expended by the Dominion Department in clearing out the streams and rivers, so as to make the access to the natural spawning-grounds easier than at present."

" RUSSELL HOUSE, OTTAWA, November 6th, 1911. " MEMO, FOR THE HONOURABLE THE PRIME MINISTER. " Herewith is appended a statement showing the amount of money expended by the Province under the following heads :— " Wharves.—We contend, with respect to the building of these structures on navigable waters, that the expense should be borne not by the Province, but by the Dominion, as is the case in all the other Provinces of the Dominion. " Mattresses and Rock-work.—Because of the dire necessity to act promptly, the Province was obliged to undertake work which properly should have been done by the. Dominion. We ask that these sums be now returned to the Province. " Statement, 19th October, 1911.—Expenditure on Wharves huilt Navigable Waters. " 1895-96 $6,164 52 1896-97 895 50 1897-98 3,598 72 1898-99 5,541 53 1899-1900 2,455 68 1900-01 2,974 73 1901-02 5,070 24 1902-03 6,498 02 1903-04 4,880 98 1904-05 5,018 45 1905-06 8,803 65 1906-07 14,430 52 1907-08 717,772 62 1908-09 34,925 69 1909-10 41,004 35 1910-11 29,903 38 1911-12 to date 32,204 02 $222,142 60 " Statement, Expenditure Protection River-banks. " Columbia River at Revelstoke :— " 1898-99 $33,107 53 1900-01 4,761 60 1906-07 31,058 80 1907-0S 3,656 34 1910-11 55,382 53 1911-12 1,098 90 $129,665 70 Less contributed by Dominion Government 16,553 76

$113,111 94 ' Fraser River (Lower) :— " 1905-06 1 2,S70 34 1907-08 11,232 43 1908-09 5,586 31 1910-11 24,639 35 1911-12 20,170 60 $64,499 03 Less contributed by Dominion Government 2,500 00

$61,999 03' N 6 MISSION TO OTTAWA. 1912

The various matters mentioned in the communication and memoranda were taken up and discussed very fully with the Prime Minister. With reference to the question of Better Terms, the history of the endeavours made by the Province for many years to secure a Commission to inquire into its claims for special consideration was reviewed; and the Delegation sought to emphasize the fact that the temporary relief granted by the amendment to the " British North America Act" in 1907, of one hundred thousand dollars a year for ten years, was insufficient and quite inadequate compensation to the Province, the disabilities under which British Columbia laboured being of a permanent nature. It was requested that the proposal of the Province set out in the memorandum submitted to the Dominion Government on October 9th, 1906, should be adopted as a fair and reasonable method of arriving at a just conclusion, and that a Commission be appointed, as requested in that memorandum, a copy of which is attached to this Report. It is a matter of special gratification that the Dominion Government, since the return of the Delegation to Victoria, has now consented to appoint such a Commission; one Commissioner to be chosen by the Dominion, one by the Province of British Columbia, and a third to be selected by these two Commissioners, or, failing such agreement, by the Secretary of State for the Colonies. The Province has consistently maintained that only by a competent tribunal composed of persons of eminent repute could its claims be properly investigated; and the present decision on the part of the Dominion Government will, the Delegation believes, undoubtedly result in the settlement of this long-standing problem that has been considered of such paramount importance to the Province. The assurance given by the Right Hon. R. L. Borden that the question of Asiatic immigration would be taken up at once, in connection with the Treaty with Japan, not yet accepted by Canada, and that the Provincial Government will be consulted with regard to considerations specially affecting British Columbia, is a most important step gained; as it is the first time that the Province has secured the right to be consulted in this matter. It was impressed upon the Prime Minister that this question is of vital importance and that British Columbia adheres strongly to its position that Oriental immigration is undesirable. Another Conference was held on November 8th, Mr. McBride leaving Ottawa the same afternoon; while the Attorney-General and the Minister of Lands remained for two days further to discuss various questions of a departmental nature with the Federal Ministers. Among other matters, the Dominion Government was requested to consider the advisability of increasing the salaries of the Judges of the County Court. The following letter was received from the Prime Minister in answer to the communication laid before him and the representations on that behalf made by the Delegation:—

" OTTAWA, Ont., November 10th, 1911. " SIR,—I beg to acknowledge your letter of the 6th November, signed by yourself and by the Hon. W. J. Bowser, Attorney-General, and the Hon. W. R. Ross, Minister of Lands, in which you bring to the attention of this Government certain considerations and suggestions touching matters that especially concern the interests of the Province of British Columbia. The necessity of preparation for the session which will open on Wednesday next renders it difficult to take up the various matters set forth in your communication with that promptness which we would desire. However, you may rest assured that the various subjects alluded to will receive earnest consideration and careful attention with as little delay as may be possible under the circumstances. " I have the honour to be, Sir, Your obedient servant, " R. L. BORDEN. " The Hon. Richard McBride, Premier of British Columbia, Victoria, B.C." 2 GEO. 5 MISSION TO OTTAWA. N 7

On January 25th, 1911, the following telegram was received from the Right Hon. R. L. Borden:— " OTTAWA, Ont., January 25th, 1912. " Hon. Richard McBride, Premier of British Columbia, Victoria, B.C. " Replying to your memorandum of the 6th November, 1911, respecting the claim of British Columbia for exceptional treatment by reason of permanent physical conditions and otherwise as set forth in your memorandum of 9th October, 1910, we are prepared to appoint a Commission to investigate the merits of claim made by your Province in this regard; one Commissioner to be named by this Government, one by your Government, and the third to be selected by agree­ ment of the two Commissioners, or, failing such agreement, by the Secretary of State for the Colonies. " Asiatic immigration. This question is to be taken up as soon as possible in connection with the new Treaty with Japan, to which Canada has not yet acceded. The interests of Canada in respect of immigration will be safeguarded and your Government will be consulted with regard to considerations specially affecting British Columbia. " Songhees Reserve and Drill Hall matters have already been settled satisfactorily. The question of foreshores is under consideration by the Department of Justice. " R. L. BORDEN."

An official telegram was dispatched in acknowledgment, as follows:— "VICTORIA, B.C., January 27th, 1912. " Right Hon. R. L. Borden, Prime Minister, Ottaica, Ont. " On behalf Provincial Government, beg to thank you for your message January twenty- fifth. Am prepared take up details Better Terms at your earliest convenience in order that investigation may proceed and settlement be reached soon as possible. "Asiatic question. Province prepared justify its attitude from every standpoint, with a view to secure earliest possible action. Am pleased with assurance Songhees Reserve and Drill Hall matters. With regard to other questions, please advise what, if anything, can be done to expedite. " R. MCBRIDE."

While all the Orders in Council have not yet been received, it is undoubtedly a cause for congratulation that the final steps in connection with the transfer of the old Songhees Reserve to the Province are being taken and the final settlement of this long-standing matter assured; also that the site now used for a Drill Hall on the Parliament Square will soon be in possession of the Province, as the ground is required for the extension of the Parliament Buildings now in progress. Correspondence is now proceeding between the Attorney-General's Department and the Department of Justice at Ottawa to arrange for the administration of the water in the Railway Belt by the Province, pending the final settlement regarding the proposal made to the Dominion for the acquirement of the interests in the Railway Belt and Peace River lands. In concluding their Report, the delegates desire to express their high appreciation of the many courtesies extended to them, during their stay in Ottawa, by the Prime Minister and his colleagues, at a time when the onerous duties attendant upon the preparations for the opening of the session of the Dominion Parliament occupied their attention.

We have the honour to be, Sir, Your obedient servants, RICHARD MCBRIDE. W. J. BOWSER. W. R. Ross. N 8 MISSION TO OTTAWA. 1912

PAPERS CONNECTED WITH THE MISSION TO OTTAWA.

The Committee of Council have had under further consideration certain matters relating to the welfare of the Province:— 1. Re the adjustment of financial arrangements between the Province of British Columbia and the Dominion of Canada. 2. The settlement of certain questions that have been raised by the Federal authorities with regard to the title to Indian reservations in the Province of British Columbia. 3. The adjustment of the difficulties and complications which have arisen with respect to the water rights within the Railway Belt lands by reason of the decision of the Committee of the Privy Council (November 1st, 1910). 4. And generally any other matters in connection with the relations between the Province and the Dominion of Canada still outstanding. The Committee recommend the appointment of the Honourable Richard McBride, Premier and Minister of Mines, and the Honourable William John Bowser, Attorney-General, and the Honourable William R. Ross, Minister of Lands, as delegates to the Dominion Government to settle the aforesaid. The Committee also recommend that a copy of this minute, if approved, be dispatched to the Honourable the Secretary of State of Canada. Dated at Victoria this 1st day of November, A.D. 1911. H. E. YOUNG, Provincial Secretary. A. E. MCPHILLIPS, Presiding Member of Executive. Approved this 1st day of November, A.D. 1911. THOMAS PATERSON, Lieutenant-Governor.

MEMORANDUM RE BRITISH COLUMBIA'S CLAIMS FOR SPECIAL CONSIDERATION.

On behalf of the Government of British Columbia, I adhere to the general principle of the rights of the Provinces to increased subsidies, and therefore support the resolution which has been submitted in favour of affirming the resolutions of the Quebec Conference, in so far as they are not inconsistent with or prejudicial to the claims of any particular Province for additional recognition with respect to such matters as form the subject of those resolutions. The Government of British Columbia cannot, however, accept them as a final and full settlement of its demands. There are special considerations in the case of British Columbia which involve additional recognition in its behalf. These considerations are set forth in the memorial presented to the Dominion Government last year, and a resolution affirming the position of the Provincial Government was unanimously adopted by the Legislature of the Province of British Columbia. The resolutions of the Conference of Quebec, which, if carried into effect, would increase the subsidies already received by British Columbia, relatively speaking, leave it no better, if as well, off. This is obvious for two reasons:— 1st. Owing to the excessive contributions made by British Columbia to the Federal Treasury, as compared with other Provinces, the Province would pay an undue proportion of the amount of the increase in subsidies to all the Provinces. A parallel in support of this is afforded in the allowance which was made at the time of Confederation to certain Provinces on account of the greater debt of other Provinces, in the payment of which the people of all the Provinces had to share. Our case is precisely similar now to that in which those Provinces would have been had no such allowance been made. 2nd. The proposed increase in subsidies being largely based upon population, the special physical conditions which make the cost of government in the Province of British Columbia disproportionately great are not provided for. Briefly, as set forth in the memorial of the Government of British Columbia, already referred to, " The claims being presented by the other Provinces for increased subsidies are 2 GEO. 5 MISSION TO OTTAWA. N 9 similar in character to some of those of British Columbia, with this important distinction, that the reasons which alike give them foundation are greatly accentuated in the case of this Province." A brief summary of the arguments in our case is herewith submitted:— For a proper knowledge of the case, it is necessary to consider the conditions which existed at the time British Columbia entered Confederation, and the mental attitude in which the terms of union between the Province and the Dominion were framed. Public sentiment, as repre­ sented in Parliament, was prejudicial to more favourable terms being granted. A large section of Canada was utterly opposed to union with British Columbia on the terms under which the construction of a transcontinental railway was rendered obligatory. It was only upon grounds of large public policy of a national character—the rounding out of Confederation—that their adoption was justified. It was almost universally conceded that the Province, physically handicapped as it was, would not pay its way in Confederation, and it was strongly contended that the construction of the Canadian Pacific Railway—the price asked by British Columbia— was too great a sacrifice on the part of the Dominion, and that the railway when built would prove unremunerative. Consequently the financial terms conceded to British Columbia were the least favourable possible. A similar attitude towards British Columbia was maintained as long subsequently as 1884, when the " Settlement Act" was passed, whereby the outstanding differences between the Provinces and the Dominion were finally adjusted. By the terms of the " Settlement Act" the Province, tired of delays and wearied with fruitless negotiations, agreed to transfer 3,500,000 of the best land in the Peace River District in lieu of expenditures on the part of the Dominion, amounting in all to about $1,100,000. These lands, worth now, at the lowest valuation, $17,500,000, were parted with to secure a railway from Esquimalt to Nanaimo, costing less than $3,000,000, which, under the Carnarvon terms, the Dominion Government has pledged itself to build without cost to the Province. The value of such concession was not then foreseen. The Treaty of 1871, as revised in 1884, was made in misapprehension of the possibilities of British Columbia and the development to accrue from the building of the Canadian Pacific Railway. The subsequent course of events has shown that British Columbia has not only paid its way in Confederation, but has contributed in thirty-five years nearly $19,000,000 to the Federal Treasury in excess of what it has received therefrom; that the Canadian Pacific Railway has been instrumental more than any other factor in building up Canada, with benefits vastly greater to Eastern Canada than to British Columbia; and that the " Settlement Act " gave a realizable asset to the Dominion nearly twenty times greater than the expenditure which it involved. The Government of British Columbia submits as incontrovertible that as the original and amended term of union having been based upon assumptions which have proved groundless, and as that the very opposite of what was anticipated has transpired, it is incumbent, in the light of developments which have actually taken place, upon the Dominion, morally and con­ stitutionally, to now substitute fairer terms for those made perforce in anticipation of what did not happen. This contention is strictly in line with what is promised in the resolution of the Quebec Conference of 1902, to the effect that at the time of the passing of the " British North America Act," " it was impossible to foresee the development of the Dominion," and to provide in an unalterable and fixed way for the requirements of the various local Governments for all time to come, except that the conditions are so peculiar and exceptional in the case of British Columbia as to demand exceptional consideration in the revision of financial terms now deemed necessary. In the memorial presented by the Government of British Columbia to the Dominion authorities, and in various letters and memoranda, the historical aspect of the case has been reviewed, and the reasons for special consideration given in extenso. In addition to the fore­ going, it has been pointed out that there are certain conditions and physical disabilities, permanent in character, which accentuate the position of British Columbia considered in relation to the other Provinces, and that abnormally increase the cost of administration in that Province as compared with the average conditions of the rest of the Dominion, entailing as well disadvantages of commercial, industrial, aud political character. These are:— N 10 MISSION TO OTTAWA. 1912

1. The cost of administration, owing to the physical character of the country. 2. The distance from the commercial, industrial, and administrative centres of Eastern Canada. 3. The non-industrial character of the Province, as compared with Eastern Canada, whereby a large percentage of goods are imported and consumed, increasing the contributions to the Federal Treasury, in the way of taxes, in a ratio of three to one. 4. The disadvantages of the Province in relation to the market for its special products. Under the first head, it is pointed out, and supported by tables filed in the official records of all the Provinces, that the physical conditions referred to seriously affect the cost of govern­ ment under every head. The following table, covering a period of thirty years of all the Provinces, will sufficiently illustrate these contentions :—

British Columbia is a country, roundly speaking, 900 miles in length and 500 miles in width, including an area of 381,000 square miles, extremely mountainous in character and settled in widely detached valleys with a sparse population. This involves an expenditure for govern­ ment very much greater than in Provinces which are compact and do not present the same peculiar conditions with which that Province is confronted. 2. The geographical position of the Province, though very important in one sense, is very disadvantageous in relation to the Dominion as a whole. We sell very little to Eastern Canada on account of" the nature of our products, and we buy very largely there for the same reason. Inter-Provincial trade was the material object in Confederation. The Province, therefore, having four per cent, of the population pays eight per cent, of the price of Confederation, and gets in return one per cent, of the trade. 3. The non-industrial character of the Province accounts for the enormous contributions it has made to the Federal Treasury in proportion to the amount received in return. An elaborate statement of the account appears in the memorial referred to, which has been brought up to date, showing an excess of contributions over receipts amounting to nearly $19,000,000. This is not submitted as an exact mathematical solution of financial relations, but is substan­ tially accurate, and represents approximately the actual condition of affairs in respect to receipts and contributions. There is the further consideration that the population, which accrues directly to the benefit of the Dominion, accrues in the ratio of about three to one, as compared with the average benefits from population in other sections of Canada. 4. The geographical position of the Dominion also handicaps it in relation to the products which it sells. This is true, for the most part, of foreign exports of lumber, of fish, and of minerals, and of many other things that it is hoped to produce in the future, such as manu­ factures of iron and paper. For the most part,' British Columbia sells in the markets of the world in competition with the world. It cannot sell in Eastern Canada in competition with Eastern manufactures owing to distance, and is thus handicapped in what it buys and what it sells. 2 GEO. 5 MISSION TO OTTAWA. N 11

Its geographical position has still further the effect of increasing the cost of consumption by imposts in the way of freight on goods which are imported from a supply centre of Canada and elsewhere. In addition to the natural disadvantages under which the Province has laboured may fairly be cited the political disadvantages of a limited representation in Parliament and the long distance from the seat of Government. Without reflection upon one Administration at Ottawa more than another, the Province, by reason of these handicaps, has not in the past received that consideration for its various wants that is extended to the people of Eastern Canada, who have large representation and easy access to the Capital. Comparing the terms conceded to British Columbia and to the new Provinces of Alberta and Saskatchewan, it is found in effect that when these Provinces are in receipt of the total allowance to which they will be ultimately entitled per annum, the amount, in round numbers, will be $2,250,000, while the total of British Columbia's allowance, when it has reached its maximum, will be less than $500,000. It is not contended that the new Provinces have received too much, but that British Columbia has received far too little. Alberta and Saskatchewan contain large, compact, arable areas presenting no physical difficulties or obstacles to develop­ ment. While it may be said that in their case the lands and the minerals belonged to the Dominion, if we take the case of British Columbia, with its public domain in its own right, the average of its receipts for the past thirty years on account of its natural resources has only been $235,000 per annum, from which must be deducted the cost of administration, not less, at the present time, than $100,000 per annum. It is submitted, further, that the readjustment of the subsidies every two and a half years, according to the increase of population ascertained by census-taking, in our estimation, is another important advantage which the new Provinces have over British Columbia. They obtain almost immediately in increased subsidy the benefit of increased population, while British Columbia, in which the increase of population is also very rapid, has to wait ten years for readjustment. There is, therefore, only one of two conclusions to be drawn from a comparison of the terms in the two cases; either the new Provinces have been too generously endowed by the Dominion—which is not alleged—or British Columbia has received very inadequate consideration of its requirements. The Government of British Columbia, in view of all the considerations which have been advanced in support of the claims of that Province, reaffirms its position in regard to the desirability of a complete investigation by a competent tribunal of the merits of the Provincial contention, ft is, therefore, asked that a Commission be appointed consisting of three persons of eminent repute, one to be named by the Government of the Dominion of Canada, one by the Government of British Columbia, and the third by the Honourable the Secretary of State for the Colonies. It is asked that the reply of the Dominion Government be made definite and final within three months from the present time. RICHARD MCBRIDE. Premier. Ottawa, October 9th, 1906.

VICTORIA, B.C. : Printed by WILLIAM H. CULLIN, Printer to the King's Most Excellent Majesty. 1912.