 
                  
                  
                  
                  
                     The making of the road was commenced, but was shortly brought
                     to a conclusion by the opposition of the Chilicotin Indians by whom
                     several of the working parties were

 murdered.
                     
                     In 
1865 M Waddington (see Gov. 8623/65) asked for protection
                     from the 
Gov to enable him to resume his undertaking, & at the
                     same time applied for compensation for the losses he had sustained
                     in his attempt to open the Road. The compensation was refused, & as
                     to the protection he asked for, he was informed (
23 Sept 1865 to
                     Governor) that 
M Cardwell could hold out to him no encouragement
                     in an undertaking which had led to such lamentable results, & was
                     not viewed favorably by the Authorities of the Colony.
                     
                     In 
Dec 1865 M Churchill on behalf of 
M Waddington
                     submitted a new proposal

 (see B) to the effect that the former
                     agreement should be renewed so as to enable him for a further period
                     to collect tolls—that large tracts of land should be granted to him,
                     & the 
Gov to guarantee 10 per Cent on an Expenditure not
                     exceeding £140,000.
                     
                     On the 
31 May 1866, after correspondence with 
M Churchill,
                     
M Seymour then in England & 
Acting Governor Birch, 
M
                        Churchill was informed that
                     
                     
M Seymour intimated his sense
                     of the usefulness of any good communication which it might be found
                     practicable to establish with the interior of 
B. Columbia—but
                     that 
M Seymour had been unable to advise making any concessions
                     in England upon the terms on which a road

 should be constructed into
                     the interior, & that no such proposal could be properly entertained
                     unless made to the local Authorities.
                     
                     
                     The opinion of the Acting Gov was—see Col. Sec 15 Nov
                        1865 in 4648.
                     
                  
                  
                     1 No guarantee to afford protection ag Indians to be
                     given.
                     
                  
                  
                     2 That the Gov could not agree to purchase the proposed
                     road at any time nor to concede a new Charter for so long a period
                     as 21 years—but to give one for 10 years on terms materially
                     similar to those of 1862.
                     
                  
                  
                     3 That the local 
Gov was unable without sanction from
                     the 
Sec of State to make

 grants of Land—but that in the event of
                     the Company wishing to acquire Land along the proposed line, the 
Gov
                     would be willing to reserve for a period of 5 years portions of the
                     unoccupied land with a view to its being preempted & purchased by
                     Members of the Company in accordance with Law.
                     
                     In the beginning of 
1867, 
M Waddington submitted to the
                     
Gov a proposal for making, by means of a Company, a Railway
                     from 
Bute Inlet to 
Quesnel. The project however, in consequence of
                     the state of the money market & the difficulty of forming a Company
                     for so large a project requiring

 a Capital of some £700,000, was
                     given up & a modified proposal for a Traction Engine Road was submitted.
                     And for this the following stipulations were asked for.
                     
                     1 The term of the Charter to be extended to 25 years from
                     the completion of the Road instead of 10.
                     
                  
                   
                  
                  
                  
                  
                     4. The period of 3 years for the completion of the Road to 
the
                        Fraser to be proportional for any extension beyond.
                     
                     5. A grant of 2 sections or 320 [acres] of Land per mile to be made
                     as soon as every 60 miles of road are completed & located as far as
                     possible in alternate sections on each side of the line. N.B. this
                     quantity would represent a contribution on the

 part of the Colony
                     of £14,000 in waste Land ag £100,000 cash by the Grantee, besides
                     the £14,000 he has already spent.
                     
                     6. No Taxes to be levied on the above Land till settled by the
                     Agents of the Grantee or sold.
                     
                  
                  
                     7. The Grantee to have a right to fell all Trees, the fall
                     of which might endanger the Road, & to have the priviledge of all
                     timber & materials on the public lands necessary for the construction
                     & maintenance of the road including Wood for fuel.
                     
                  
                  
                     8. No Taxes to be levied on the property or income appertaining to
                     the Road until a dividend of 12 per Cent per an has been paid. A
                     tax of 2 1/2 per Cent on the

 surplus up to 15 per Cent dividend, &
                     5 per Cent on the surplus above 15 per C. shall then be paid.
                     
                     9. The Grantee to be constituted a public carrier, & have similar
                     powers to those of Carriers in England.
                     
                  
                  
                     10. The entry of all requisite machinery material &c for this Work
                     to be free of Duty during the construction of the Road & for the
                     1 year after its completion.
                     
                  
                  
                     In consideration of the above the Grantee engages,
                     
                  
                  
                     11. To construct a road for working Traction Engines on, with an
                     average

 minimum speed of 6 miles per hour for Passenger Trains, &
                     3 miles per hour for goods Trains.
                     
                     12. As a maximum to carry food for 7 Cents per lb. & passengers
                     by ordinary Trains for $25 each from 
Bute Inlet to the terminus on
                     
the Fraser. Any extension of the Road to be charged for in proportion.
                     
                     13. For a period of 3 years to carry all Steam Machinery or
                     Machinery to be worked by water power at a maximum of 5 per Cent
                     profit on cost of conveyance, no piece to exceed 5 Tons or to
                     occupy more

 than a 6 Ton waggon.
                     
                     14. Mails by any Train to go Free, but to be delivered & rec
                     from the Trains by the competent authorities.
                     
                  
                  
                     M Waddington in reply was informed by the 
Gov that
                     he had decided to refer the whole question home & that if when he was
                     in England 
M W. could satisfy the 
Duke of Buckingham that there
                     were really the means of carrying out the undertaking, he (the 
Gov)
                     would recommend his Grace to grant the most favorable terms he
                     might think proper. This he considered the most satisfactory
                     course as it might be the

 means of obtaining the cooperation of Canada.
                     
 
                  
                  
                     The Governor's despatch now 
rec transmitting 
M
                        Waddington's proposal referred to above is not encouraging as to
                     
M Waddington's means of accomplishing his object.
                     
                     M Waddington has arrived in England, but no official
                     communication on the subject has been 
rec from him,

 & until
                     he does there is nothing to be done on the present despatch, but
                     as 
M W. may possibly ask to see his Grace I have made
                     this short summary of what has passed for his Grace's information.