If so, why should not duties, on a scale to be agreed upon
under constitutional powers to agree, be levied on imported foreign
goods, by Canada, and the duties be divided between the two powers in
agreed proportions? Were this done, at least in the beginning, expense
would be saved to the new Colony, a revenue would be easily collected
for it, through existing machinery, and Canada would obtain the revenue
and trade. Of course the scale of duties must be moderate, so as not to
excite dissatisfaction, by establishing dear prices, and it would be
the interest of Canada to make them so, for the more she stimulated the
growth of the new customer, the better for the trade. On the other
hand, the new Colony would be insured a market and an outlet for its
own productions, and would be content, therefore, to accept a
reasonably high scale of duties, levied for revenue purposes only, on
its articles of foreign consumption."
I discussed the question involved at length with the Honorable George
Brown and with his brother Gordon, at Toronto. I felt the importance of
having the views, and, if possible, the concurrence of the leader of
the "Grit" party. He led me to think that he concurred with me; and I
sent him a copy of this document. He kept it some time, and then re-
directed it to me without remark. Afterwards, I received a verbal
message to the effect that "It would not do at all." I became convinced
that nothing "would do at all" with a small band of men - who, at that
time, had objects of their own - in Upper Canada. Some of them - few in
number, I am happy to know, and impecunious - appeared to consider the
old corporation of the Hudson's Bay in the light of Blucher, when
driving through the streets of London, "Mein Gott! what a plunder."
Some of them tried their best to confiscate the property; and once or
twice, by weakness and vacillation in London, they almost gained the
day.
Governor Dallas and I also carefully considered the telegraph question;
the route, the cost, and the best agencies to complete its very early
construction.
The two agreements, which, as matter of history, I here copy, were
intended to bring about the complete connection of the Hudson's Bay
territories direct with England and with the United States.
"Memorandum of Agreement between Mr. Edward W. Watkin and Mr. O. S.
Wood (subject to the approval of the Montreal Telegraph Company and the
United States Telegraph Companies, affected by this Agreement, and also
by the Governor and Committee of the Hudson's Bay Company) for
completing telegraphic communication between the Atlantic and Pacific.
"1. The Montreal Telegraph Company to construct a new line of telegraph
between Father Point and Halifax, via Dalhousie and Mirimichi,
to be completed on or before the 1st October, 1865; and also a line
from the telegraph at Arnprior to the Hudson's Bay post at the Sault
St. Marie, to be completed on or before the 1st October, 1865, with all
necessary instruments, stations, staff, and appliances for a first-
class through and local telegraph line.
"2. The Hudson's Bay Company (directly or through parties to be
appointed by them, as they may elect) to construct a telegraph line
from Fort Langley to Jasper House, thence to Fort Garry, and on to the
United States boundary, near Pembina, to be completed on or before the
15th October, 1865; and also a telegraph from Fort Garry to the
Hudson's Bay post at Fort William, at the head of Lake Superior; and
also to make arrangements with other parties to erect a telegraph from
Fort William to the Sault St. Marie, with all necessary instruments,
stations, staff, and appliances for a first-class through and local
telegraph line: provided always that the construction of the telegraph
between Fort Garry and Sault St. Marie is dependent upon arrangements
with the Canadian Government, and that it is understood that, failing
or pending these arrangements, the route to be adopted shall be
via Detroit, St. Paul, and Pembina to Fort Garry.
"3. The telegraph from Fort Langley to Halifax to be worked for all
through business as one through system, and the through rates to be
divided pro rata the mileage, except that for the lines west of
the Sault St. Marie (to be erected by the Hudson's Bay Company as
above) an additional mileage proportion of thirty-three per cent. over
the actual distance shall be allowed, until those lines pay ten per
cent per annum on the outlay, after paying all operating and other
expenses, including repairs and renewals, and this allowance shall be a
condition with the United States lines between Canada and the Hudson's
Bay boundary.
"4. Arrangements to be made by the Montreal Telegraph Company, with
parties in the United States, for the construction of a telegraph from
St. Paul to the connecting point near Pembina.
"5. The Sault St. Marie and Sarnia to be respectively the boundaries of
the Montreal Telegraph Company and of the Hudson's Bay Company and
their representatives, for the purposes of this Agreement.
"6. This Agreement to be for twenty-five years.
"(Signed) EDWD. W. WATKIN.
"(Signed) O. S. WOOD.
"Montreal, August 10th, 1863."
"Agreement between Mr. Edward W. Watkin and Mr. O. S. Wood, for the
construction of the telegraph between Fort Garry and Jasper House, and,
if hereafter agreed, between Fort Langley and Jasper House, and Fort
Garry and the United States boundary near Pembina (subject to the
approval of the Governor and Committee of the Hudson's Bay Company in
England).
"1.
