108 



CANADA, DOMINION OF. 



British commissioners offered to compromise. 

 The United States rejected the offer, because it 

 recognized our claim to Pyramid harbor and a 

 strip of territory leading therefrom to, what is 

 indisputably our territory in the Yukon. Under 

 this compromise the United States would have 

 held both Dyea and Skaguay. which, we think, 

 are in Canadian territory. Let me, in conclusion, 

 recall history for the benefit of the American 

 people. When the disputed boundary between 

 Maine and New Brunswick was being discussed 

 by the two governments we claimed territory 

 south of the St. John's river, known as the Mada- 

 \vaska settlements, because it was a settlement 

 of French Canadians, who had for a long series 

 of years been under British protection. Did the 

 United States consent to concede it for that rea- 

 son, which is the same contention they are mak- 

 ing about Dyea and Skaguay? Not at all. It 

 claimed that* as it was on territory which, in its 

 opinion, was part of Maine, no matter how long 

 it had been under British protection, it ought 

 to be yielded up. Can any American statesman 

 give any reason for the retention of Madawaska 

 which would not at the present time apply to 

 Dyea and Skaguay if found by a competent tri- 

 bunal to be on Canadian territory? " 



Sir Wilfrid Laurier visited Chicago on Oct. 9, 

 and in speeches delivered there dealt also at 

 length with this issue. Eventually, the text of 

 a modus ricendi as finally agreed upon and an- 

 nounced on Oct. 21 was as follows: 



" It is hereby agreed between the governments 

 of the United States and Great Britain that the 

 boundary line between Canada and the Territory 

 of Alaska, in the region about the head of Lynn 

 Canal, shall be provisionally fixed, without preju- 

 dice to the claims of either party in the perma- 

 nent adjustment of the international boundary, 

 as follows: In the region of the Dalton trail, a 

 line beginning at the peak west of Porcupine 

 creek, marked on map No. 10 of the United States 

 Commission, Dec. 31, 1895, and on sheet No. 18 

 of the British Commission, Dec. 31, 1895, with 

 the number 6500, thence running to the Klehini 

 (or Klaheela) river, in the direction of the peak 

 north of that river marked 5020 on the afore- 

 said British map; thence following the high or 

 right bank of the said Klehini river to the junc- 

 tion thereof with the Chilkat river, a mile and a 

 half, more or less, north of Klukwan; provided, 

 that persons proceeding to or from Porcupine 

 creek shall be freely permitted to follow the trail 

 between the said creek and the said junction of 

 the rivers into and across the territory in the 

 Canadian side of the temporary line wherever the 

 trail crosses to such side, and, subject to such 

 reasonable regulations for the protection of the 

 revenue as the Canadian Government may pre- 

 scribe, to carry with them over such part or parts 

 of the trail between the said points as may lie 

 on the Canadian side of the temporary line such 

 goods and articles; and from said junction to 

 the summit of the peak east of the Chilkat river 

 marked on the aforesaid map No. 10 of the 

 United States Commission with the number 5410, 

 and on map No. 17 of the aforesaid British Com- 

 mission with the number 5490. On the Dyea and 

 Skaguay trails, the summits of the Chilkoot and 

 White passes. It is understood, as formally set 

 forth in communications of the Department of 

 State of the United States, that the citizens who 

 are subjects of either power found by this ar- 

 rangement within the temporary jurisdiction of 

 the other shall suffer no diminution of the rights 

 and privileges which they now enjoy. The Gov- 

 ernment of the United States will" at once ap- 



point an officer or officers to meet an officer or 

 officers to be named by the Government of her 

 Britannic Majesty to mark the temporary line 

 agreed upon by the erection of posts, stakes, or 

 other appropriate temporary mark." 



Trade and Commerce. The external trade of 

 Canada went up by leaps and bounds during the 

 year. In 1898 it was $288,257,521; in 1899 it was 

 $306,104,708. The imports rose from $130,698,006 

 to $152,021,058, w r hile the exports decreased from 

 $159,524,953 to $154,083,650. To Great Britain 

 the exports for the year ending June 30, 1898, 

 were $104,998,818; to the United States, $45,705,- 

 336; to France, $1,025,262; to Germany, $1,837,- 

 448; to Newfoundland, $2.167,860; to the West 

 Indies, $2,749,080; to South America, $1,060,420; 

 to China and Japan, $511,919; to other countries, 

 $X,630,711. During the same year the imports 

 from Great Britain were $32,500,917; United 

 States, $78,705,590; France, $3,975,351; Germany, 

 $5,584,014; West Indies, $1,080,266; South Amer- 

 ica, $1,425,653; China and Japan, $2,317,971. 



Railways. The annual report of the Depart- 

 ment of Railways and Canals was presented to 

 Parliament on March 23, 1899, by the Hon. A. G. 

 Blair. When Canadian railways are mentioned 

 the names of the three great trunk lines the 

 Canadian Pacific, Grand Trunk, and the Inter- 

 colonial suggest themselves; but a reference to 

 the official figures at this time shows that there 

 w r ere 146 railways in actual operation in Canada. 

 Some of these are amalgamated or leased; but 

 after allowing for them, and excluding the Gov- 

 ernment railways, there are 84 controlling com- 

 panies in active existence. With all these sepa- 

 rate interests it might be expected that the people 

 of Canada would enjoy the boon of competitive 

 rates, but the truth of the statement that com- 

 peting railways do not compete has been learned 

 to the sorrow and financial loss of many. The 

 completed mileage is 16,870 miles, an increase of 

 183 miles during the year 1898. This total does 

 not include 2,248 miles of sidings. The magnitude 

 of Canadian railway interests is indicated by the 

 following figures: The paid-up capital amounted 

 to $941,297,037, an increase of $19,439,805. The 

 gross earnings amounted to $59,715,105, an in- 

 crease of $7,361,829; and the working expenses 

 aggregated $39,137,549, an increase of $3,968,884 

 as compared with those of the previous year, 

 leaving the net earnings $20,577,556, or an in- 

 crease of $3,392,945. The number of passengers 

 carried was 18,444,049, an increase of 2,272,711: 

 and the freight traffic amounted to 28,785,903 

 tons, an increase of 3,485,572 tons. The total 

 number of miles run by trains was 50,658,283, an 

 increase of 4,977,432. The accident returns show 

 5 passengers killed. 



The Government expenditure on railways prior 

 to and since the date of confederation (1867) 

 amounted on capital account to $123,551,091 (in- 

 cluding a payment of $25,000,000 to the Canadian 

 Pacific Railway Company), and for railway sub- 

 sidies charged against the consolidated fund the' 

 further sum of $17,619,222.11, making a total ex- 

 penditure of $140,834,731.29. In addition there 

 has been an expenditure since confederation for 

 working expenses of $73,029,631.74, covering the 

 maintenance and operation of the Government 

 roads, or a grand total of $213,863,363.03, all of 

 which, with the exception of $13,881,460.65, has 

 been expended on railways during the past thirty- 

 one years. The revenue derived from the Gov- 

 ernment roads during the same period amounted 

 to $64,510,650.18. 



The Canadian Pacific Railway had under traffic 

 during the year 6,334 miles of road. Its gross 



