CHAPTER XVIII

RAILWAY POLICY OF THE MACKENZIE GOVERNMENT.

AFTER the defeat of Sir John A. Macdonald, the people of Manitoba waited impatiently for the next move upon the political chess-board which would indicate some definite move in the direction of railway connection with the east. Mr. Mackenzie's speech to his constituents at Sarnia, so far as it concerned his railway policy, was far from satisfactory to Nor'-Westers. He said on that occasion:-"One of the matters which will be brought up will be the Pacific Railway matter. You are aware that, during the discussion of the Bill, I objected to the provision to complete the railway within ten years. Nearly three years of that time have elapsed, and we are bound by the contract to finish it within seven years and three months. I have always thought that a speedy means of communication across the continent was necessary for the good of settlement, and for the purpose of opening up the districts where we have great riches undeveloped in the bosom of the earth. Without that communication their development cannot take place, and immigration cannot be effected. It will be the duty of the Administration, in the first place, to secure a means of communication to our navigable waters, from Lake Superior to Fort Garry and the Rocky Mountains, at the same time commencing at the Pacific Ocean, and constructing communication by the western slope.

In the meantime communication would be afforded in conjunction with the American lines until we have means sufficient to accomplish the work. If we once have these regions accessible that is, British Columbia and the North-West Territory-we can afford then to spend money upon the constructing of the other portions of the road, which will be necessary to complete our great national highway across the continent; and I think it would be the duty, as it will be the desire of the Government, to develop any plan by which these results are to be accomplished."

During the election campaign, Mr. Mackenzie repeatedly expressed his opinion that delay was prudent in undertaking the construction of the main line. At Hamilton, he said:"We propose, in my policy, to treat with British Columbia for some modification of the terms, and at the same time maintain as rigidly as possible the honor and good faith of the country in carrying out the engagements already entered into. We have proposed a plan by which we can use the water privilege of our great western lakes and rivers, securing a means of transcontinental communication by these waters, and the links of railway necessary to connect them as a summer route across the continent, within a reasonable time, without burdening the country with an intolerable load of debt. We propose that the Pacific Railway should cross the continent through Canadian territory for its entire length, as soon as that is possible."

These utterances of the Premier did not convey any very reassuring message to the people of the west, whose long deferred hope for a railway did not appear to be much nearer fruition than it had been two years previously. The session of Parliament was, therefore, looked forward to impatiently

for what it might bring forth in the way of railway legislation. The House met at Ottawa, on the 27th of March, 1874, and the Speech from the Throne gave little indication of the Government's intentions in respect to the railway. The following is the clause which referred to the subject: "The late Government having failed in securing the prosecution of that great enterprise, the Canadian Pacific Railway, you will be called upon to consider what plan will best and most speedily provide means of transcontinental communication with British Columbia. The report of the Chief Engineer will be laid before you, showing what progress was made during the past year with the surveys connected with the proposed line." Early in the session, a deputation from Manitoba waited on Mr. Mackenzie, to urge the speedy construction of the Pembina branch. He replied that the Government would be prepared to go on with the road as soon as the St. Paul and Pacific Railway Company were ready to push their line to the boundary.

On May the 8th, Mr. Mackenzie notified the House that he would bring down the Pacific Railway resolutions on the Tuesday following. According to these, the whole line of the railroad was to be divided into four sections, viz. :—

First-To begin near the south of Lake Nipissing, and to extend towards the upper or western end of Lake Superior, to a certain point where it would intersect the second section.

Second-To begin at some point on Lake Superior, to be determined by the Governor-General in Council, connecting with the first section, and to extend to Red River in the Province of Manitoba.

Third-To extend from Red River to some point between Edmonton and the foot of the Rocky Mountains, to be yet determined.

Fourth-To extend from the western terminus of the third section to some point in British Columbia, on the Pacific Ocean.

That branches of the said railway would be constructed as follows:

From a point indicated as proposed eastern terminus of the said railway, to some point on the Georgian Bay, to be yet determined. A branch from the main line near Fort Garry, to the international boundary at or near Pembina : such branches to be considered as forming part of the Canadian Pacific Railway, except in so far as it may be otherwise specially provided.

Mr. Mackenzie promised, in introducing the resolutions, that the Pembina branch would be built immediately, as he expected to begin the work of construction some time during the current year. By the Act which passed the House, the Government reserved the power to construct the main railway as a public work, or to let the building of it to contractors in four sections. If given out by contract, the contractors were to be paid bonuses of ten thousand dollars per mile, and twenty. thousand acres of land per mile, together with a guarantee of four per cent. per annum on their outlay. The huge land monopoly, which such an immense grant was calculated to create, was guarded against by the Government's keeping the sale of two-thirds of the land in their own hands, and accounting for the proceeds of such sale to the contractors. No limit of time was assigned for the completion of the work.

While these proposals were not altogether satisfying to the people of Manitoba, the promise of the speedy construction of the Pembina branch, and the main line to Thunder Bay, was thankfully received by them, and they expressed a general, if

lukewarm, approval of the new railway policy. British Columbians, on the other hand, denounced the policy as a breach of faith, by which their rights had been ignored, and indignantly refused the proposed expenditure of $1,500,000 yearly, on their end of the line, in lieu of the original terms, which provided for railway connection with Eastern Canada within ten years from their entry into Confederation.

Mr. Mackenzie still clung to his pet theory of utilizing the water stretches between Lake Superior and Fort Garry, and the waters of Lakes Winnipeg and Manitoba and the Sas.katchewan river, as a means of communication with the far west. Accordingly, a contract was made with Carpenter & Co., of Orillia, for carrying passengers and freight from Thunder Bay to Fort Garry, during the season of navigation, of which the following is a synopsis:

The contractors, during the navigation season of the present year (1874), must maintain the line on a scale sufficient to carry the passengers and freight from Thunder Bay to Fort Garry, and vice versa, without delay. The contractors to have experienced engineers and crews on the steamers and boats to be allowed the use of the plant and buildings, but to hand the same back in the fall. The contractors must not run the steamers off the line of the route. Passengers and freight to leave Thunder Bay three times a week, or daily, if necessary, and vice versa. The time for the conveyance of passengers not to exceed ten or twelve days at farthest, and for freight fifteen or twenty days. The contractors are to make provision against accidental delays. All the boats to be well manned; to keep houses and tents in good order for emigrants, and to furnish meals at 30 cents. Intoxicating liquors strictly prohibited. Contractors and employés are not to