IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 IAS 1^ 1^ ux Ui u 2.5 2.2 2.0 1.8 U IIIIII.6 Photographic Sdences Corporation 4 \ (meaning "CON- TINUED"), or the symbol y (meaning "END"), whichever applies. Les exemplaires originaux dont la couverture en papier est ImprimAe sont fllm6s en commengant par le premier plat et en termlnant soit par la dernlAre page qui comporte une empreinte d'impresslon ou d'illustratlon, soit par le second plat, selon le cas. Tous les autres exemplaires originaux sont film6s en commenpant par la premiere page qui comporte une empreinte d'impresslon ou d'illustratlon et en termlnant par la dernldre page qui comporte une telle empreinte. Un des symboles sulvants apparattra sur la dernidre image de cheque microfiche, selon le cas: le symbols — ► signlfle "A SUIVRE", le symbols V signifie "FIN". ire Maps, plates, charts, etc.. may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc.. peuvent dtre fllm6s it das taux de reduction diffirents. Lorsque lo document est trop grand pour Atre reproduit en un seul clichA. il est filmA A partir de Tangle supArieur gauche, de gauche A droite, et de haut en bas. en prenant le nombre d'images nAcessaire. Les diagrammes sulvants illustrent la mAthode. >y errata ed to mt ine pelure, spon A 1 2 3 32X 1 2 3 4 5 6 i> NEW PROVINCIAL BUILDING. ->> HON. PROV.^^SECRETARY'S SPEECH. Delivere4*m Hflcirse of Assembly, Tuesday, Feb. 7, 1871. v\ Hon. Mr. Vail, Provincial Secretary, said : As ito gentleman seems desirous of presenting an j more bills or petitions, I take this opportunity of laying on the table of the House by command, the correspondence in connection with the new Provincial Building, promised in the speech of the Lieutenant Governor. And in order that this subject may be understood by the members of this House and the people of this country, and particularly as I have been charged by the leading Confederate papers in this city as having been mainly, instrumental in pre- venting the people of the city of Halifax from using the new edifice for the purpose for which it was built, I feel it incumbent upon mo ou the present occasion to ask the attention of the ' louae perhaps for a longer time than they would otherwise care to hear me, so that I may fully explain the position in which the questions connected with this building now stand. I shall show in the first place how it was proposed to defray the cost of this building when the Act was passed under the authority by which the building was erected. In the second place I shall show the progress the contractors made from time to time, the exact position in which this building stood at the time the Confederation Act came into force, — and in the third place I shall explain why it was not considered expedient long a^o to hand over the building for the use of the departments for which it was intended. After I have done this in as clear and concise a manner as I possibly can, I shall leave the matter to the judgment of this House and to the people of this country to decide who is to blame that this building is at the present time closed against the Dor^inion Government, and why it has not been used for the purpose for which it was intended. In order that we may fully comprehend this subject, I shall take you back to the Act pussed in 1863 authorising the expenditure of money for the ptirchase of land upon which to erect the build- ings-Chap. 4*7 of the Acts of 1863, (page 85,) is as follows ; " Be it enacted by the Governor, Council, and Assembly, as follows ; Out of any moneys arising from any additional issue of treas- ury notes which under the laws now in force may be authoriied 2 by the Governor io Council, a sum not exceeding forty thousand dollars, and out of any moneys deposited in the Savings Bank un- der the authority of an Act of this Session, entitled, " An Act to enlarge the amount of deposits in the Savings Bank, a sum not exceeding sixtv thousand dollars may be appropriated by the Gov- ernor in Dottncil to th6 purchase of the lot of la^d in the city of Halifax known as Hare's block, and to the erection thereon of a building for the public uses of this Province." You will observe that by this Act the sum of $100,000 were to be raised for the purchase of Hare's lot by the issue of Provincial notes and from the deposits in the Savings Bank, the whole of which amount has been transferred to the Dominion Government and included in the debt that has been charged to the Province of Nova Scotia. That is point the first. At the time when the Quebec scheme was framed there had been $7,300 expended in the purchase of the land. By turning to the appendix of the little volume containing an account of the various delegations connected with the Quebec scheme with the speeches delivered by the delegates and others on different occasions, com- piled by a genUeman in Prince Edward Island who was a very competent man and whose work is a complete history of all the facts connected with the scheme then propounded, you will find the section that was inserted in the scheme in relation to public buildings. I refer particularly to Sect^'on 8 of the Quebec scheme, in relation to Custom HousesPost, Offices and other Public Buildings and I do so in order to show what was the view taken of this mat- ter when only $7,300 had been expended in the purchase of the land. The Section reads as follows;— "Custom Houses, Post Offices and other Public buildings, except such as may be set aside by the General Government for the use of the Local Legislatures and Governments." Now it will be remembered that when that scheme was framed we had merely purchased the land, — not a dollar had been spent on the building. Suppose then that there had never been anything more expended on this edifice what would be the position of the matter at the present day ? How would the Dominion Govern- r^ent have been able to get along without the expenditure of $189,000 in order to accommodate the different departments now under the Dominion control ? I mention this to show at the time the original scheme of Confederation was framed, when this clause was inserted, we had expended no money on the building. Now the Imperial Act, which was framed a jt%v or two afterwards, Conicderating these Provinces, conta,ins an exact transcript of this very clause, so that as far as public buildings are concerned there is no difference between the Quebec scheme and the British North American Act. In the third scheme of that Act specifying the public works which ajco to be the property of Canada there is the following clause:*— " 8. OtiBtom Houses, Post OflBces, and all other Public Build- ings, except such as the Government of Canada appropriate for the use of the Provincial Legislatures and Governments." Between the time when the Quebec scheme was framed and the tim^ when the Oonfederation Act took effect we spent a large sum of money upon this building, and that money must have been expended upon a clear understanding that in the event of the Oonfederation Act being carried into effect the building would be paid for by the Dominion Government. I do not know whether anything was paid between July 1867 and October of the same year when the present Government was formed, as I have not made the requisite investigation, but perhaps the hon. member op- posite, (hon. member for Halifax) can inform the House. Mr. Morrison. — I think the hon. gentleman will find that $11,060 was the amount paid during that time. Hon. Prov. Secretary : — I am glad to be informed by the hon. member. At the time when the Oonfederation Act took effect there had been $122,695 expended on the building. You will please remember that the building was under contract at that time, and although I have never exammed the contract very closely, I presume that there were the ordinary penalties connected with it for non-performances, so that the government were not in a posi- tion to refuse to go on with the work, — they were compelled under the contract to furnish money from time to time as it was required. The building was completed in April, 1868t an.^ when the accounts were made out by the Commissioners, they, thinking that of course the Dominion Governmont would not hesitate about refunding the amount expended by this Province, made up a regular interest ac- count from the time the contract was entered into ; making the whole cost of the building something like $200^000 or very nearly that sum. The building was thus completed in 1868 and handed over to the government, On the 24th of April 1868, a letter was written and was enclosed to the Provincial Secretary which I will now read : — Ottawa, 24th April, 1868. Sib, — I have the honor, by command of his Excellency the Go- vernor General, to transmit to you herewith a copy of a letter from the Secretary of the Department of Public Works, and to request that you will have the goodness to procure and forward to this department, at your convenience, the information therein ask- ed for respecting the new Provincial Building at Halifax. I have, (Signed) The Honble The Provincial Secretary, Halifax. HioToR Lan«>bvin, Secretary of State. Department of Public Worhtt April 22Qd, 1808. Sir, — The hon. tho Minister of Public Works instructs me to di' rect your attention to the British North America Act, 81 Vic. cap. 12, 1S61, the first placing the public buildings of the several pro- vinces under the Dominion Government, and the second placing the Dominion buildings in charge of this department ; and to re- quest that you will write to the government of Nova Scotia, and ascertain when the Commissioners, under whose care the new Prte viucial building at Halifax was erected, will be prepared to hand over the said building to this department. I have, &c., &c. (Sig&dd) F. Drauv, Secretary. Tne Honble. Secretary of State, &c., &c. Previous to that time the Government had had this matter under consideration, and a Minute of Council had been passed to the effect that pending the settlement of the question of Repeal the building would remain closed, and should be hold by the Local Gov- ernment. Therefore the following reply was addressed to the Se- cretary of State, dated 8th May, 1868 :— Provinctal Sborbtart's Officb, Halifax, 8th May, 186S. Sir, — I have the honor to acknowledge the receipt of your com- munication. No. 829, dated 24th April, transmitting a copy of a letter from the department of Public Works, asking for information relative ' the new provincial building, and I have it in command to fo; v7 <: i you a Muiute of Council made at Halifax on the 27th of Febru ;i^ last: — " It is recommended that the new provincial building (now about completed) be held by the government, and remain vacant, pending the settlement of the question of confederation." When the act for the Union of Canada, Nova Scotia, and New Brunswick passed in Imperial Legislature, this building, which was then in process of erection, and by no means far advanced towards completion, was not, in tlie opinion of the government of Nova Scotia, a public building within the meaning of section 108 of that act, and tne schedule therein referred to. Such being the constri ction put upon the act, it is not the inten- tion of the government c/Nova Scotia to part with the possession of the building. I have, &c., &c., (Signed) W. B. Vail, Provincial Secretary. The honble. the Secretary of State, Ottawa. Now, I would ask, how could that building be a public building under the 108th section ^ the Imperial act^ when that act, as far as public buildings are concerned, is an exact transcript of the Quebec scheme, which was framed at a time when this building had no ex- idtence. In this position the matter rested until the following win* ter, when the subject was again taken up during the next session by the Legislative Council, and a committee was appointed by that body to inquire into the question. That committee handed in the following report : 1. That the coramenc mont of the erection of the building waa on the second day of February, 1864. 2. That the money expended on the 1st day of July, 186t, when the act of Confederation came into operation, amounted to the sum of $144,266. 3. And therefore this committee are of opinion that the build- ing is not included in, and ought not to be subject to, the 108th sectioL of the act of Confederation, which asrigned the public buildings of the Province as the property of the Dominion Govern- ment, but that the building in question is a clear asset of the Pro- vince of Nova Scotia, and should be de< with as such in f negotiations between the two governments. 4. The exigency of the public service demanding the immediate occupancy of the new Provincial Building, the committee recom- mend that it, or such part of it as may be required, should be offer- ed to the Dominion Governmei.t on rental, due care being takeu by the Executive government that the lease should in no manner prejudice the rijofht of ownership whilst the question is pending be- tween the two governments. 5. In order, however, to arrange the difference of opinion which at present exists in regard to the matter in dispute, it hasoccurred to the committee to throw out the following suggestion for the con- sideration of the Legislature, viz. : That the Government of Nova Sootia should, in virtue of the llOLh section of the British North America Act, keep possession of the building, and assume so much of the debt of the Province as was expended on it previous to the operation of the said act. You will notice here a slight discrepancy between this statement of the cost of the building and th At given by the Commissioners, arising from the fact that the Commissioners had made up an inter- est account, and in ;luded it in the cost. A few da} a after the re- port of the committee was presei-.ted, the House, on motion, pro- ceeded to the consideration of the subject. The following entry ap- pears on the journals : — The said report was read by the Clerk. " And on motion the said Report was adopted, except the last clause and the preamble thereto, which was withdrawn by the con- sent of the House." You will therefore perceive that in the Legislative Council, the majority of which is composed of gentlemen who would be dis- posed at all events to do justice to the Doiuinion Government if nothing more, a resolution was passed unanimously that in the opinion of the council that building was not a building intended to be conveyed by the 108th Section of the Dominion Act, and 6 third schedule, but was clearly an asset of the Province and should be BO considered in all negotiations with the Dominion Govern* ment. The same year, as every gentleman in this House will probably remember, we took up this '^^uestlon in our caucus meetings on several occasions, and discussed the matter at length to see if we could arrive at some satisfactory conclusion as to the position of the building, and devise some way in which it could be turned to the use of the province and of the people of Ualifax. You will probably remember, too, that at that time a resolution was passed in this House in connection with the building. To tho resolution I wish to call the attention of the House because tho Government have sins enough upon their shoulders without hav- ing to bear the charge of keeping this building closed of their own wish and desire. I wish the House and country to understand that we have always been tied down and restricted to the fullest extent by resolutions passed both in the Upper and Lower House in refprence to this matter. The resolution of this House to which I refer was passed on the 14th of June, 1869, during the summe** session of tho House. The following entry appears in the journals ; — " On motion of Mr. Townsend, Be&olved, As the opinion of this House, that the new Provincial Building, constructed at a large expense from the provincial funds, be sold to any person or persons who may be disposed to purchase the same at cost." Now Mr. Speaker, this brings us down to the arrangement gene- rally known as that made by the Honbls. Messrs. Howe and McLelan, in the interests of Nova Scotia. In the negotiations which led to that arrangement, this, as a matter of course, occupied a very prominent place, and there is a good deal in the documents that are now on the journals of this House, in reference to the questions in dispute between the Dominion and Local Governments in connection with the building. The following expressions used by Sir John Rose in his reply to the st-'.tement of Messrs. Howe and McLelan will show the view of this question which that gentleman held at the time of the negotiation : — *'It would seem at variance with the provisions of the Union Act to make any special allowance on account of the Province Building at Halifax. It is true that this building, intended for services now under Dominion control, has been erected since tho Quebec Conference, and has never been used by the Province of Nova Scotia, and that its cost goes to make up the total debt of Nova Scotia. But it is nevertheless Dominion property, as much as the railways — portions of which have been constructed in the same interval — and it therefore stands on the same footing : except perhaps as to any outlay since July, 1867, which may form the subject of equitable adjustment." This then, was the opinion of Sir John Rose, whose duty it was at that time to protect the interests of the Dominion Government, and ho used these expressiona in reply to Mcaws. TTowe ftnd McLolan, representing Nora Scotia, wno at that time were press- ing for the full payment by the Dominion Governmeut of the coat of the Province Building. These negotiations of course led to Dominion legislation in re- gard to this building. I will therefore refer now to the Act passed m the Dominion Parliament embodying improved terms for this Province, and I wish to call particular attention to the preamble of this Act, for it speaks very plainly as to what scope the improved terms negociatcd for by Messrs. Howe and McLelan were intended to have. It will bo seen from the preamble that this Act refers entirely to the subsidy, and does not in any manner touch the adjustment of public accounts. It reads as follows : — " Whereas it appears by message from His Excellency the Gov- ernor General, and the Report of the Committee of the Queen's Privy Council for Canada, approved by His Excellency on the twenty fifty day of January last, and other documents accompanying said message that it is ju«t and expedient to add to the sum payable to the Province of Nova Scotia, undtr the British North American Act, 1867. Therefore Her iVIajesty by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows : — The third section of that act provides that " Non a Scotia shall, from the date of the completion of the new Province Building, be debited in account with Canada, with interest, at the rate of five per cent, per annum, on the cost of that building, until it shall have been placed at the disposal of the Dominion." This act, then, allowing that the third section is constitutional, adopts exactly the view of Sir John Rose in regard to the Provin- cial Building ; that is, that it stood on the same footing as any other public work transferred to the Dominion Government, — on the same footing, for instance, as our railroads. That section of the act, therefore, had reference entirely to the interest on the cost of the Provincial Building to the Dominion Government, that is, the amount expended previous to July 1867. It would be contrary to common sense to take any other view. To suppose that the House of Commons would pass an act, to legislate into the Dominion Treasury $66,000 of money paid out of our provincial treasury is simply ridiculous. If the Dominion Legislature had the power to pass such an act as that, they would have the power to take from us every dollar of our subsidy ; and if such a principle were admitted, what position would any Province of the Dominion be placed in ? The fifth section is as follows : " The grants and provisions made by this act, and the British North America Act, 1867, shall be in full settlement of all demands on Canada by Nova Scotia." Of all demands for what? Of course this section applies altogether to the increased subsidy, and if I am correctly informed that was the object of the mover of that section. It was intended for the 6 protection of the weaker province rather than of tho stronger, for if onco the right of the Dominion Qovcrnmeut were admitted, to break down the Imperial Act and add to the subsidy of any one Province, that moment the right of the larger Provinces to ty- ranizo over the smriler would be oHtablished, and wherever a large Province possessed suflScient strength in the Dominion Far* liament it might procure the passing ot an act taking away the greater part of the revenues of the smaller Province, and we would have no redress — they could alter the Imperial Act and we would not be protected in any way under its provisions. This sectroD was therefore passed with the very coi-rect view of placing us in u better position then we otherwise could occupy, because in the event of our remaining in the Confederation and Ontario obtaining an increased representation after the next census, were it not for this section our subsidy might be reduced from eighty to forty cents per head to meet the interests of the people of Ontario. I call attention to this Act because it bears directly upon the argu- ment which some have taken. 1 wish the House to bear in mind the object for which the fiftn section was inserted, beciiuse it is under the authority of that section that tho payment of the amount due to the Province for the cost of tho new building has been refused. The next discussion that occurred on this subject took place when I was in Ottawa myself a year ago. I then embraced the opportunity of learning the views of the Dominion Government. Of course they were a little reticent and not disposed to tell me explicitly that the amount of money paid out by this Province after July 1867 would be returned to us, but they intimated their readiness at any time to discuss the matter, and they seemed to be desirous of coming to a right conclusion with regard to it. I found, however, much to my astonishment that Mr. Howe who was a representative of Nova Scotia in the Dominion Government, took an entirely different view of tho matter from that which I myself held. He intimated to me that the matter was irrevocably settled by the arrangement negociated by Mr. McLelan and him- self with the Dominion Government. I of course questioned the right of these gentlemen to settle a matter which was purely a controversy between the Dominion and Local Governments in as much as the main question between the two Governments referred to money paid out of our own treasury. However, I could not alter his views, or induce him to tell me that we had any reason to hope that he would change his mind. I was not of course in a position to negotiate with the Dominion Government. I was merely endeavoring to plact my own views before them ; and to draw from them such information as would enable me to judge as to what offer we could make them which might possibly be accepted. I told Mr. Howe I conld not understand how he could adopt a view so different from that of Mr. McLelan ; and sometime after I came home I wrote to Mr. McLelan », I . to obtain his view of the matter, for I waa very much aBtoniahed that Mr. Ilowe should be so flrm in his opinion that tbo question had been ontiroly sottlod by the negotiations with the Dominion GoTernoMnt. In that letter I refer; od to a short conversation I had with Mr. McLelan the evening after he returned from Ottawa. I had met him on that evening, and he had explained to me what had been done in reference to the increased revenues. I referred to this con> versatioii in tho letter, merely to refresh his memory ; because there was a large amount required to be paid in connection with the new poor house, and I was a little anxious that the money should bo provided to meet that demand. I bad referred to this demand in the conversation with him, and he had replied ; " You must re- member there will be that money you will receive for the I new building, and that will more than reimburse the amount which you will bo obliged to pay for the new poor house. He did not speak particularly as to what amount he meant, or say whether he meant tho amount which we now claim or the whole cost of tho building. I therefore wrote to him as folio 'vs ; Halifax, Vlth December, 1869. Dear Sib, — Tho "act respecting Nova Scotia" passed last session of the House of Commons, confirming tho agreement entered into by Mr. Rose, and Mr. Howe and yourself, is somewhat obscure in refer- ence to the new provincial building, and I shall feel greatly obliged if you will inform me whether it was intended that Nova Scotia f hould be charged with interest on the whole cosi of the building, or only on that paid prior to the 30th June, 1867. I distinctly remember, in conversation with you tho evening after your return from Ottawa, you stated the money we would re- ceive from the Dominion Government for the new provincial build- ing would more than reimburse us for expenditure on the new poor's asylum: but as you did not state the amount I have thought it advisable to seek information from you before opening uegotia- tions with a view of getting the question in regard to the building settled. I am, kc, (Signed) W. B. VAIL. Hon. A. W. McLelan. The negotiations between Sir John Rose and Messrs. Howe and McLelan, took place in January, 1869. The act of the Dominion Par- liament in respect to Nova Scotia, based on these negotiations, was passed I think in May of the same year. M> letter was written on the 1 7th of December, 1869, and the reply of Mr McLelan, on the 3rd of January, 1870, one year after the arrangement was made and nine or ten months after the act passed. That is a very important fact, because it shows that if Mr McLelan batl been disposed to change his mind in the mean time, he bad am- ple opportunity to do so, as nine or ten months had elapsed before the act was passed. His letter, therefore, could not have been writ- 10 ten hnrriedly, as the reply is dated on the Srd of Janaary, seventeen days after mine was written, from which it would appear that he had carefhlly considered the subject. It reads as follows : Londonderry, Srd of Jan. 1870. My Dear Sir, — I deeply regret that I hurriedly passed over the closing paragraph in yours of the 17th, in which you say you desire the information with a view to negotiate for the settlement of the new building question, or I should have put aside matters that were pressing upon my time, and replied at once. As I understand it, the Dominion Government will pay the expenditure on the building subsequent to Ist July, 1867. If the amount be placed to your cre- dit on expenditure, or completion of the building, then they will charge you interest from that date upon the whole cost of the work, allowing you interest on the sum at your credits for expenditure after Ist July. If tht over expenditure be not placed to your credit until the building is banded over, you will only be chargeable with the in- terest upon the expenditure previous to the 1st Juiy, 1867. Which- ever way you {,ut it the result is the sarae. The expression in the act is, I think, " interest on the cost of the new building until hand- ed over." Now the over expenditure does not form part of the cost to the Dominion government until that sum is placed by them at your credit. I trust you will have no difficulty in adjusting the ac- counts and making a satisfactory settlement of this question. Hon. W. B. Vail. A. W. McLelan. It will be seen by this letter that Mr. McLelan was not blind to the fact that an Act had passed in the Dominion Parliament. It is as plain as possible that the whole matter was before him,and in tais letter there is a very important admission to begin with. The Dominion Government pretends to tell us at the present time that the Act in respect to Nova Scotia shuts us off, and they pretend to tell us like- wise that the matter in connection with the building was settled, hav- ing been finally disposed of, as Mr. Howe considrrs, when tlio ar- rangement with Sir John Rose was made. I will therefore just point to the settlement that wts made by that arrangement, and to the cor- respondence that took place at that time, and to the questions put to the Auditor, on a memorandum from the Minister of Finance. The first question put to the Auditor was this : " With what amount of debt would Nova Scotia be entitled to en- ter the Union, supposing the same debt per head of the population, PS ascertained by the last census, was assigned to her as New Bruns- wick?" This question refers only to the Indebtedness of the Province and had no connection with the new building. The Auditor's reply was that the Province would be entitled to $9,188,756 Canadian currency. The following is the second question : '•' What ^um would be equivalent to th3 $G3,000 given to New Brunswick for ten years, assuming that tho same rate per head is given to the population of Nova Scotia?" The answer is 872,693 Canada currency. 11 Here, then, we have only two matters settled, and the amonnts stated in the two answers just read are the only amounts that we re- ceive from the Dominion treasury at the present time, according to the settlement made by the negotiator of that arran^f^ment. There were other questions proposed, but those that I hn read are the only ones which determine the amounts that we ar» entitled to re- ceive. I deny, therefore, that the question of the Provincial Build- ing had anything to do with the settlement made by the Hon. Messrs. Howe and McLelan with Sir John Rose. This is a very important view of the matter. It is as clear as it possibly could be that this arrangement was not regarded at that time as having Anally settled the question of the Provincial Building, because subsequent to these questions being asked and those answers given, Mr. Rose expressed bis opinion that the amount paid out after the 1st July should be the subject of adjustment. ^It is thus as plain as anything possibly can be that that settlement had no reference to the Provincial Building at all, and Mr. Rose did not intend that it bhould have. The Act in respect to Nova Scotia was passed entirely upon the questions put to the Auditor and the answer to those questions. We were accordingly allowed over nine millions of dollars of debt, and received an extra subsidy, for ten years only, of over eighty thousand dollars, to correspond to the sixty-three thousand paid New Brunswick. That was all that was done by that arrangement. I deny that the Provincial Building came up in any way, except in the correspondence already referred to between Messrs. Howe and McLelan and Sir John Rose. At the outset I read to you the letter of Hon. Hector Langevin, Secretary of State, in connection with this matter. That letter was the only demand made by the Dominion Government. Up to the present day there has been no regular demand made to the Govern- ment of Nova Scotia to give up the building. The next correspon- dence that took place between the two Governments was opened up after we had held a meeting of the members of the House of Assembly in Halifax, at which we made up our minds that we would be willing to accept the view taken by Sir John Rose, as presented in the cor- respondence between that gentleman and Messrs. Howe and McLelan. We had met six or seven times before coming to that conclusion, but at length we decided that we would hand over the building to the Dominion Government upon their paying to us the amount ex- pended after July Ist, 1867. Accordingly, at the request of the members, composing a large majority of this House, I sent a tele- gram to Sir John A. McDonald, asking, in the first place, whether the Dominion Government would be willing to submit the question to arbitration. Now it seems to mo that, as a dispute had arisen be- tween the Dominion and Local Governments, if the Dominion Gov- ernment had felt perfect confidence in their right to keep this build- ing without paying anything for it, they would have been quite ready to submit to an arbitration. I will read my telegram, and the telegram in reply. They are as follows : — 12 " Halifax, 2t8T March, 1870. Sir John McDonald, Ottawa. Will your government submit dispute in connection with new Provincial Building to arbitration. Answer by Telegraph." W. B. Vail. " Ottawa, 24th March, 1870. Hon. W. B. Vail, Halifax. Government have no power, by law, to submit question to arbi- tration. J. A. McDonald. The Government determined to bring the matter to a final settle- ment, if possible, before the members left the city, and accordingly a second telegram was sent to Ottawa as follows : " Halifax, 25th March, 1870. Sir John A. McDonald, Ottawa. Will your government pay amonnt expended on new Provincial Building subsequent to July, 1367? Answer by telegraph. W. B. Vail." From that day to this no answer has been received, except that which will appear hereafter when I read the minutes of Council, embodied in the correspondence which I intend to lay on the table. Now I should like to know what the Government could have done up to that period that we did not do. We had pressed upon the Dominion Government the necessity of coming to some settlement in order that the people of Halifax might have this ^building opened. We were willing and anxious to meet the Dominion Government. We were ready to submit it to arbitration or to any amicable mode of adjustment that they could propose or ask for, and I cannot see, for my own part, what could be expected from the Government of Nova Scotia that we had not shown ourselves willing to do. Ic July, 1870, when the accounts were sent down it was found that the Dominion Government had deducted $30,000 from our sub- sidy as interest for throe years on the new Provincial Building, tak- ing the cost of the builcing at $200,000, ^md charging the interest for three years, from July 1867 to July 1870. Thus Ihey charged us with interest on $200,000, when the whole cost of the building was only $189,080.64, and they calculated the interest for eight months before the buildiug was completed, charging us in this man- ner with the interest on our own money paid out of the treasury of this Province after the Ist of July, 1867. Nobody can make me or any hones:. Confederate believe that this was fair on the part of the Dominion Government whose duty it is to do justice, particularly co the weaker province. By what right could the Dominion Govern- ment cha/ge interest on $200,000 eight months before the building was out of the contractor's hands, charging interest on our own mo- ney, not one dollar of which they had paid in any way. Matters began to be a little serious about that time, and we began to feel that although we were a small government and represented a small \ t 13 X colony vfe were not willing to be treated in ttiis manner, and that we would not submit to be taken advantage of by the Dominion Grovernment in this way. We had been willing to open negotiations or to do anything that was possible in order to get the difficulty set- tled, but we now felt that the time had arrived when there should be some plain speaking, and we should know where we were and what we had to expect. The Gk>vernment consequently framed a Minute of Council, offering to submit the matter to arbitration or to adopt any amicable mode of adjusting it. In that Minute we stated all the facts connected with the history of the building, and presented our view of the question in dispute. A reply was afterward received from the Dominion Government and the correspondence continued down to a few days before the meeting of the House. All this cor- respondence has been emi)odied in a pamphlet, as the matter is one of some importance and has given rise to a good deal of discussion in this city and throughout the province. To give you an idea of what the Dominion Government considered to be justice to the Pro- vincial Government in matters of this kind and what they consider fair to Nova Scotia as compared with the governments of the other provinces, I will just refer to a few grants made by the Dominion Government in connection with public buildings intended for the same purposes as the building under discussion, and think you will be rather astonished to learn the amount that was appropriated for Post Offices and Custom Houses in other provinces as shown in the official returns. They are as follows : — Montreal, Canada, Custom House $200,000 St. John, New Brunswick do T5,000 London, Canada, do 50,000 Toronto, " Warehouse 10,000 Post Offices at Toronto, London and Quebec, Canada 155,000 $490,000 Here we have a sum total of $490,000 expended for buildings in- tended for the same purposes as our province building, while not a single dollar is granted to Nova Scotia, and on the contrary the Dominion Government refuse to pay us the amount expended out of our own treasury since the first of July, 1867. If this is justice to Nova Scotia it is a different thing from that which I have been accus- tomed to recognize under that name. It is all very right that the gov- ernment should contribute $490,000 to public buildings in other pro- vinces, but when they come to deal with Nova Scotia they refuse to refund to us the sum paid directly oat of our own treasury after we have agreed to give up the amount of $122,000 expended prior to July, 1867. They actually refUse to pay us $66,000 which we pro- vided for directly out of our subsidy, and which we should have bad to expend upon our roads and bridges in 1868. Now there is another circumstance in connection with this matter which is very remarkable, and that is that the Dominion Government should have felt it necessary, after a little time to retrace their steps. 14 I have already said that on the first of July, 1870, they deducted $30, 000 from our subsidy. Now it happened that one of the Dominion officials was here in the following autumn, and I had some little con- versation with him in reference to this subject. I merely remarked to him that it was strange that the Dominion Government should have deducted $30,000 from our subsidy, and should charge us with interest on $200,000, when the actual cost of the building was only $189,080. 1 suppose that this led to a little inquiry, for when they remitted the subsidy in January following, instead of deducting $30,000 they made up a new statement, lokicg the cost of the building at $189,000 and charging us only $25,210, being the interest for two years and eight months. In the first statement they bad charged us with in- terest for three years, to July, 1870, and had put the cost of the building at $200,000. In this new statement, therefore, they ac- knowledged that they had been wrong, while they admitted our view was perfectly correct in that particular. We do not admit, however, that they had any right to charge us with interest at all. I take the ground that no demand was made for this building. Even allowing the Dominion Government the most favorable view of the case, — giving up the $122,000 expended before the 1st of July, 1867, we have an unquestionable claim for $66,000. But we go farther than this and hold that before the Do- minion Government conld pretend to charge us with interest on the cost of the building either before or after the 1st of July, 1867, they should show that they have made a demand for the building accom- panied with $66,000, for the amount paid out by this province after the Dominion Act came into operation. That is the ground I take. That is the only tenable ground that can be taken, and it is the ground that I am satisfied the pe'>ple of Nova Scotia will take when the subject is fully understood. I do not know that it is necessary for me to proceed much farther with this argument. I shall merely close my remarks with a few ob- servations. It seems to be the desire on the part of the Confederate papers to throw the blame and the stigma of having kept this build- ing closed, ent^ely upon the Local Government. But I wish it to be perfectly understood that the Government of Nova Scotia have ex- hausted every expedient within their reach and employed every means that could be devised in order to have the question in regard to this building settled in such a way that the people of Halifax could have the benefit of it. We have gone 3o far as to say to a private party in town : — " we will rent the building to you, try to rent it to the Dominion Government, in some way that it may bo used by the Post OfiQce Department, but we will hold you responsible to give us pos- session when we require it after due notice — but see if you cannot make some arrangement by which the building can be used by the departments for which it is intended." I do not hesitate to say for myself, that it is painful to go into that building and see an edifice in every way calculated to serve the people shut up, while the oflScials ia the Post OfiSoe Department, and the public of this city are oblige 15 to resort to a place so mean and so unfit for the use of tbe public as the present Post Office. It has been painful to me, and therefore, I have used erery effort to get this matter settled. It has been my desire and the desire of the Government that the building should be cccupied for the purpose for which It was built. But at the same time the people of Halifax must remember, that Halifax is not Nova Scotia. There is such a place as Yarmouth, with its thousands of tons of shipping, and such a place as Cape Breton with its great mineral wealth and large resources. There are people in this pro- vince outside of the city of Halifax, and the people of this city have no reason to complain, if they are for a time deprived of the use of thisr building, considering the large amount of money that goes into the pockets of the people of Halifax. I want it to be understood that Nova Scotia lies to a great extent outside of the city of Halifax, and that the Government of this country must represent the whole province. It has been said that this building has been kept vacant because I am in the Government, and because I have no interest in common with the people of Halifax. I would like to know how any gentleman could hold a departmental office and not have an interest in common with the people of Halifax, particularly where he has re> ceived such kindness and hospitality as I have been favored with at the hands of the people of this city. While I hold toy present posi- tion I consider myself to be the representative of all Nova Scotia. I do not confine my representation to Digby or any other county. "While I hold the office of Provincial Secretary I consider that 1 represent the whole people, and it is just as much my duty to serve the city of Halifax, if the opportunity offers, as to serve my own <;onsituency in a matter of this nature. A large amount of money has been spent by the Government in this city, in connection with the Provincial Building, the Poor House, tbe City Hospital, and the Asylum on the other side of the harbor. Halifax has the benefit of all this besides the money expended on the railroads which have served the interests of this city to a greater extent than any other part of the Province. Therefore I feel that the city should not complain if a certain class of people has been put to some little in- convenience, in consequence of its having been felt necessary to keep tbe new building closed in order that we may get tbe money which is actually due the people of this Province and which is need- ed in all tbe counties to keep up the roads and bridge service of the country. Seeing that such a course was necessary in tbe interest of the whole Province there is not a man in the country, Confed- erate or Anti-Confederate, who will not, after taking the matter in- to consideration, endorse the action of the Local Government and of this Legislature in reference to the building. I do not wish to occu- py the time of the House any longer. I felt it to be necessary that I should go fully into this question that the matter might be clearly understood. If there is anything in this whole controversy that I feel inclined to deprecate it is that in a matter of ibis kind tbe Gov- ernment should be charged with motives of petty spite and malice, 16 and with a desire to prevent the people of Ha17fa:i: from enjoying this building as a post oflQoe. Sach motives would be beneath the character of a Qovernment, and when any person calling himseif a gentleman insinuates that the Government could be guilty of en- tertaining snoh feelings, I repel the charge, and I repeat that it has been the earnest desire of the Govemmeat to appropriate it to the use for which it was intended and to have the matter settled. But I don't hesitate to say that before I would give it up to the Do- minion Government without their paying over tbe $66,000 act- ually d'ie to this Province, having been paid out of our treasury, I would see it taken down stone by stone and erected into a mo- nument to the memory of Nova Scotia— as she was before Confed- eration — tree and independent, now a mere dependency of Canada. The hon. gentleman then read the correspondence between the Dominion and liOcal Governments in reforence to the building and Inidthe same on the table of the House by command of His Excel- lency the Lieutenant Governor, — thanking the House for tbo T>atient attention which had been g'ven to the explanations which he had made on this important subject.