Mr. A. K. MACLEAN (Lunenburg) moved :

That the report of the Royal Commission on the Quebec Bridge inquiry, together with the evidence (sessional papers No. 154) be referred to the select special committee appointed to investigate the conditions and guarantees under which the Dominion government paid moneys^ to the Quebec Bridge Company.

Mr. MONK.

I understand that the principal object of this motion is to place all the results of the inquiry made by the Royal Commission, with the evidence in support thereof, at the disposal of the committee named by the House to hold an investigation into the financial situation with reference to the bridge. It will greatly abridge 330i .

the work of the committee and enable it to dispense with a great deal of evidence being repeated before that committee.

Hon. WM. PUGSLEY (Minister of Public Works).

My hon. friend from Leeds (Mr. Taylor) asked me if I would lay on the table of the House further papers with reference to the Petit Rocher breakwater. I now lay upon the table the papers with reference to the second contract. While they are not asked for and it is not usual to produce them to the House upon a motion simply for correspondence, tenders, contracts. &c., yet I felt that my hon. friend might desire to have them upon this occasion and I lay on the table the reports of the engineer on the progress of the work from time to time both on the first and second contracts.

Mr. R. L. BORDEN (Carleton, Ontario).

I would like to ask the hon. Minister of the Interior (Mr. Oliver) whether he has any reply with respect to the matter that I brought to his attention on the 26th May. He promised to make a statement on the following day but I am not aware that he did so. It had reference to an inquiry of Mr. Normal Willerton respecting arrangements made with the Saskatchewan Valley Land Company.

Hon. FRANK OLIVER (Minister of the Interior).

Mr. R. U. BORDEN.

I would like to ask the right hon. Prime Minister (Sir Wilfrid Laurier) whether, having given further consideration to my inquiry of yesterday, he is able to make any more definite statement as to what further legislation may be expected this session ?

Sir WILFRID LAURIER.

No, Pam sorry I cannot. I will give a statement to my hon. friend on Monday morning.

Mr. SAM. HUGHES (Victoria and Ilali-burton).

There is a matter which I wish to bring under the notice of the House and especially under the notice of the Minister of the Interior. Early in the session I moved for two returns in connection with the handing over to a certain company ol' some lands in the Peace River district. The first return was brought down on the 15th of January and the second on the 22nd of February of this year. From these returns it transpires that there was given to this company sixteen townships (odd and even-numbered sections) containing 576 square miles of land, or an area twenty-four miles by twenty-four miles-an area as large as that of an ordinary county In the provinces of Ontario or Quebec-and containing 368,640 acres, or more than three times the quantity of land that was handed over to the Saskatchewan Valley Land Company. The Saskatchewan Land Company received its lands in alternate sections, had to do certain settlement duties upon them, had to pay a certain price, and somewhat similar conditions were imposed on this colonization scheme to which I refer, but these conditions have not been complied with. Now, I understand that negotiations are being carried on by this company to float these lands in the United States, in England, France, Belgium, and other countries of Europe where they think they can get capital. This company is asking $11 per acre for these lands retail and they are endeavouring to float them into a company at $7 an acre wholesale. The parent company has handed the lands over under agreement for $4 per acre to the company which now has an option upon them. The title of the first company is the Peace River Land and Colonization Development Company, and the terms of agreement respecting these lands were :

First. That fifty settlers be located within three years from October 20, 1904; one hundred settlers within five years thereafter, and a Mr. OLIVER.

total of 1,200 within twenty years from the commencement of the survey.

The order in council granting these lands to this company is dated the 27th of July, 1900. It does not say that there must be one hundred settlers additional within five years, leaving it in doubt whether it means one hundred settlers or fifty settlers more. It says that they are to locate 1,200 settlers within twenty years from the commencement of the survey, but it does not say when the survey is to commence.

Second. That the company may be given the privilege of purchasing at any time within 'ive years from October 20, 1903," and after the first fifty settlers are placed a portion not exceeding one-third of the total tract at $1 per acre; one-fourth in cash; and after each succeeding five years one-fifth of the lands remaining available.

Third. That the settlers located within the tract be given free homesteads.

On the 4th of January, 1908, some weeks after I had given notice for this return, the president of the company was notified to file within thirty days satisfactory evidence of the action taken by the company to fulfil the terms of the agreement under the two orders in council mentioned, or to show cause why such agreement should not be- cancelled. No lands were sold and therefore no price per acre was realized from these transactions. Negotiations were conducted with the following firms and individuals : Rainville, Archambault, & Gervais, advocates ; Beique, Turgeon & Beique, advocates ; L. P. Brodeur, Rev. J. A. Lemieux, A. H. Kent, and A. T. Thompson. It says :

The regulations governing the securing of lands in the Peace River valley -are like all similar iregulations based upon the Dominion Lands Act. a copy of which is attached hereto.

I may point out that the concession granted to this company is much larger than some of the principalities of Europe, and it has been handed over by the government on most favourable terms to the company. The first order in council was renewed on the 8th of July, 1904, and although I moved for copies of these orders in council they have not yet been brought down. Now, every one knows that since the year 1900 there has been a great influx of settlers into the Northwest, and we have heard portrayed-in eloquent terms the fertility of the soil and the beauty of the climate, but notwithstanding all that, in 1906 nothing had been done by this company to fulfil the terms of the agreement and in place of putting settlers upon the land they were endeavouring to hawk this land around and to secure American and European capital to float a company at no doubt a profit to themselves. On June 26, 1906, I find the first communication in relation to the

purchase of these lands. It is a letter addressed from the first National Bank, Mill-bank, S.P., to the secretary of the Department of the Interior, Ottawa. Canada. The writer of this letter, who is evidently a shrewd American, .wants to know under what authority these gentlemen are endeavouring to sell these lands and he writes to the secretary of the Department of the Interior :

Dear Sir,-I desire to obtain all the information possible regarding the Peace river country north of Edmonton. Can you send me maps and descriptive matter pertaining to that locality? I am informed that a certain grant was made to some priests for colonizing purposes some years ago covering lands in this valley. Can you give me any information as to who the grantees were and where I can reach them; also term's of the grant and whether conditions have been complied with. Do you know if the land has been transferred from the original grantees and if so who the present owners are. Assuring yon that your information will be greatly appreciated, I am, &c.

I cannot answer definitely. The question can easily be settled by reference to the order in council, which I can bring.

Mr. SAM. HUGHES.

This letter of Mr. 'Scott goes on to say :

Again under date 13th idem this correspondent is advised as follows : ' We are asking a special introductory price for $11 per acre tor land purchased, terms $4 per acre in cash, balance in nine annual payments with interest at 6 per cent. We also guarantee each purchaser of a quarter section a homestead at his option, either adjoining or m the vicinity ot the land purchased.

,So it would seem that the homesteads are reserved. Mr. 'Scott goes ou to say

I bev to draw your attention to the fact that he ofier made this person is scarcely a bona ide ofter, as the company has not satisfied ;he department that fifty settlers a,re actually ,n the land, and also to the additional fact :hat no payments have yet been made tor tne

purchase of the part of leasehold which the company desires to acquire. It is true that the company has until the 1st October, 1907, in which to place these fifty settlers, and an additional year, that is, until the 1st October, 1908, within which to purchase the land; but until the settlers are actually on the land no guarantee should be made by your company in which you undertake to dispose of lands.

Then follow a series of communications which I shall not read, until finally the government notifies the company to give reasons why the concession should not be cancelled, and there the matter ends,so far as the correspondence is concerned. There are in the return some very interesting documents. There is one showing that an attempt was made by this company to bring in some settlers, and when they got them in, the party broke up in a free fight, smashing saucepans and frying pans over each other's heads, and the gentleman who brought the party in told them that from the start the company knew that they were not going to place them on those lands, but brought them in in order to place them on some other lands, as they were going to make a deal with the government. The order in council does not say anything about reserving the even-numbered sections, although from the statement made by the gentleman who now holds the option on the company, it would seem that the homestead sections were reserved. But supposing that they were granted sixteen townships en bloc they would get 368,000 acres. If they were granted only the alternate sections, they would get one-half of that amount. It is a much more favourable concession than that to the Saskatchewan Valley Land Company which has been so much talked about; the terms are infinitely easier. The demand has been made again and again that the balance of the lands granted to the Saskatchewan Valley Land Company should not be allowed to remain with the company, and I think the government would be more than justified in cancelling instantly this concession. I desire to ask the Minister of the Interior what have been the developments, and whether he has demanded of the company to show reasons why the concession should not be cancelled? Here is a block twenty-four miles by twenty-four miles set apart for one company, which has been hawking the lands around the markets of Europe and the United States trying to sell them at $4 an acre and then at $7 an acre, and retailing the lands at aa acre, far in advance of settlement. This is something that should not be encouraged by the government of Canada These lands should be held on the same policy as the Minister of the Interior is holding lands in the older parts of the country- for the actual settler. I would like to know from the Minister of the Interior what the Mr. SAM HUGHES.

condition of affairs now is, and what the intention of the department is with reference to this matter ?