CO885-(11-13) — Page 240

7138.

سالسا

PUBLIC RECORD OFFICE

Reference :-

CO.

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- İ COPYRIGHT PHOTOGRAPH-NOT TO

885

12 PUBLIC RECORD OFFICE, LONDON

MY LORD,

No. 30.

(NEWFOUNDLAND.)

LAW OFFICERS to COLONIAL OFFICE.

1857.

Lincoln's Inn, 25th June 1874. We are honoured with your Lordship's commands, signified in Mr. Herbert's letter of the 29th May ultimo, stating that he was directed by your Lordship to Govr. 43, transmit to us a copy of a despatch received from the Governor of Newfoundland, 9 May 1874. inviting the co-operation of the Imperial Government in exercising the right of Cap. II. of preemption claimed by the Colonial Government of Newfoundland under the local 1854. Acts, of which copies are enclosed, and also a copy of a Report of the Proceedings of Cap. I. of a Joint Committee of both Houses of the Legislature of Newfoundland upon the Incorporation Acts of the New York, Newfoundland, and London Telegraph Company. Pamphlet.

2. Mr. Herbert was desired to direct our attention to the 15th section of the Act, chapter 2 of 1854, and he was to request that we would favour your Lordship with our opinion as to the subject-matter comprised within the power to purchase conferred upon the Newfoundland Government by that section; that is to say, whether that Government could claim to buy out the whole interest of the Company for the actual appraised value of the telegraph lines, wires, cables, apparatus, vessels, and all other appliances connected therewith, or whether any further claim could be made by the Company for compensation for the loss of the monopoly, which would of course be terminated by such purchase, or for any other right or interest conveyed by the Act.

3. Mr. Herbert was further to request that we would advise your Lordship as to the course which, in our opinion, the Government of Newfoundland should take with a view to determine its power to purchase.

In obedience to your Lordship's commands we have taken the matter into con- sideration, and have the honour to

Report

all other

That we are of opinion that the expressions "other property and 44 property connected therewith," used in the 15th section of the Act of the Legislature of Newfoundland of 1854, were intended to comprise merely property of the same nature as the property mentioned in the parts of the section immediately preceding those expressions. We think, therefore, that upon payment of the amount awarded as the value of the telegraph lines, wires, &c. under the provisions of the above- mentioned section, the undertaking of the Telegraph Company will become vested in Her Majesty, and that the Telegraph Company will not be able to insist upon the arbitrators or umpire awarding an amount of compensation for the goodwill of the concern or the loss of the monopoly. If it had been the intention of the Colonial Legislature that the Telegraph Company, upon the exercise by the Government of the power conferred upon them to purchase the undertaking, should not only retain the lands, &c. granted to the Company, but also be paid a sum for the loss of their monopoly, we cannot help thinking that a very explicit provision to that effect would have been found in the Act.

With reference to the course which the Newfoundland Government should take, we think it will be desirable for that Government to follow exactly the directions given in section 15 of the Act, and in the event of the Company neglecting to take any of the steps incumbent on them (ex. gr. to choose an arbitrator) to call in aid the Supreme Court of the Colony to enforce compliance with the statutory requirements.

An opportunity would then, perhaps, arise of obtaining a judicial determination as to the rights reserved to the Government by the 15th section.

The Right Hon. the Earl of Carnarvon,

&c.

&c.

&c.

We have, &c.,

(Signed) RICHARD BAGGALLAY.

JOHN HOLKER.

▲ 12916-31, 25.-12,84.

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PUBLIC RECORD OFFICE

CO.

Reference :-

885

12 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

No. 301.

(CANADA.)

LAW OFFICERS to TREASURY.

Lincoln's Inn, July 4, 1874.

We are of opinion that the Act of the Canadian Parliament, 1874, cap. 2, is in strict conformity with the "Canada (Public Works) Loan Act, 1873," and may therefore properly be left in operation.

We have considered the Bill to provide for the construction of the Canadian Pacific Railway, and the speech of Mr. Mackenzie on the introduction of that Bill to the House of Commons of the Dominion. Having regard to the absence of any clause prescribing the time within which the construction of the Pacific Railway is to be commenced or completed, to the statement in the preamble that it is proper to make provision for the "construction of the said work as rapidly as the same can be accomplished without further raising the rate of taxation," and to the expression of opinion on the part of Mr. Mackenzie that it is utterly impossible to have the exact terms of the union (with British Columbia) observed and at the same time have no extra taxation pressing unduly upon the resources of the Dominion, we anticipate that the loan of eight millions will not be raised, or, if it is, the money will be used for the purpose of improving and enlarging the Canadian canals, and not of constructing the Pacific Railway. It is obvious, however, that the disallowance of the Pacific Railway Act, such as it is, would not secure the observance on the part of the Dominion Govern- ment of the terms of union with British Columbia, but rather afford that Govern- ment an excuse for their failure to construct the railway.

The guarantee by Her Majesty's Government of 3,600,000l., part of the sum to be raised, is, we observe by the Canada (Public Works) Loan Act, 1873 (36 & 37 Vict. cap. 45, sec. 2.), to be given "on such conditions as the Treasury think fit." We submit for the consideration of Her Majesty's Government whether it would not be proper to attach such conditions to the guarantee, if given, as to secure that this 3,600,000l. at least shall be primarily applicable to fulfil the obligation of the Dominion towards British Columbia, so that no part of this sum shall be applied to the improvement and enlargement of the Canadian canals until the Pacific Railway has been constructed.

RICHARD BAGGALLAY. JOHN HOLKER.

(Signed)

A 20491.-9. 95.-3/86.