No. 181.
Mr. West to Mr. Frelinghuysen.

Sir: With reference to your note of the 8th of July last, I have the honor to inclose to you herewith copy of an approved report of a committee of the privy council of Canada upon the subject of international ferries plying between the United States and the Dominion of Canada.

You will perceive that it is suggested that in order to avoid the risk of complications likely to arise in the present condition of the law, and before any attempt is made to deal with the subject by legislation on the part of the Dominion, a conference should be held with the United States authorities, whether Federal, State, or municipal, in order that, i possible, joint action may be taken in the matter by both countries.

The Marquis of Lansdowne has therefore requested me to submit this, suggestion to your favorable consideration.

I have, &c.,

L. S. SACKVILLE–WEST.

Certified copy of a report of a committee of the honorable the privy council for Canada, approved by his excellency the Governor-General in council on the 27th October, 1884.

The committee of the privy council have had before them a memorandum, dated 23d October, 1884, from the minister of inland revenue with respect to international ferries plying between Canadian and United States ports.

The minister of inland revenue observes that the British North American act determines the exclusive legislative authority in respect of ferries between a province and any British or foreign country, or between two provinces, to rest with the Dominion. Parliament, and that the act respecting ferries (33 Vic, cap. 35) provides that “every license of ferry under that act shall be under the great seal, and shall be issued by the governor in council, after public competition” as thereinafter provided.

The minister states that circumstances have arisen in respect both of the Sarnia and Port Huron and the Buffalo and Fort Erie ferries which lead to the conviction that the conditions required by this act may bring the Government of Canada into serious collision with the State or municipal authorities of the United States.

The minister is not aware whether the power of legislating for ferries inheres in the Federal or State government, but is of opinion, from what has transpired, that each State has power to enact its own laws, and to delegate the administration of these to municipalities.

Assuming, then, that such municipalities have the power to make by-laws equivalent in force and in general conditions to the ferries act of Canada, under which we are acting, a collision would be inevitable unless the parties tendering to this Government were able to negotiate away any opposition which might present itself on the other side of the frontier. Otherwise the condition of affairs which might supervene would be as follows:

Canada would grant a monopoly to A, and the United States municipality to B.

A alone would have the right to touch upon Canadian territory without going through all the forms of entering and clearing at the custom-house, and otherwise submitting to such restrictions required by the navigation laws as all vessels of foreign ownership are required to do.

Should the United States authorities reciprocate, B alone would only be in a like favored position in respect of the other side of the frontier.

[Page 256]

Under these conditions the very object of a ferry, that is, rapid transit, would be frustrated, and it would seem, therefore, that some amendment to the ferries act is inevitable as touching international ferries, so as to preclude the competition between individuals for a mere commercial advantage, bringing about serious international misunderstandings.

The minister of inland revenue therefore recommends that, before introducing any legislation upon the subject, a conference should be held with the United States authorities, in order that some joint legislation might be agreed upon which should be equally applicable to all international ferries plying between Canadian and United States ports.

The committee concur in the recommendation of the minister of inland revenue, and they advise that your excellency be moved to transmit a copy of this minute, if approved, to Her Majesty’s minister at Washington, with the request to take such steps as he may consider advisable with a view to avoid any difficulty, which it is highly desiraable should not spring up between the Canadian and United States Governments, all of which is respectfully submitted for your excellency’s approval.

JOHN J. McGEE,
Clerk Queen’s Privy Council for Canada.