6. The colony is divested for ever of any control over or power of influencing its own development, and of any direct interest in or direct benefit from that development. It will not even have the guarantee for efficiency and improvement afforded by compet.i.tion, which would tend to minimize the danger of leaving such services in the hands of private individuals.

7. Of the energy, capacity, and character of Mr Reid, in whose hands the future of the colony is thus placed, both yourself and your predecessor have always spoken in the highest terms, and his interests in the colony are already so enormous that he has every motive to work for and to stimulate its development; but he is already, I believe, advanced in years, and though the contract requires that he shall not a.s.sign or sublet it to any person or corporation without the consent of the Government, the risk of its pa.s.sing into the hands of people less capable and possessing less interest in the development of the colony is by no means remote.

8. All this has been fully pointed out to your Ministers and the Legislature, and I can only conclude that they have satisfied themselves that the danger and evils resulting from the corruption which, according to the statement of the Receiver-General, has attended the administration of these services by the Government, are more serious than any evils that can result from those services being transferred unreservedly to the hands of a private individual or corporation; and that, in fact, they consider that it is beyond the means and capacity of the colony to provide for the honest and efficient maintenance of these services, and that they must, therefore, be got rid of at whatever cost.

9. That they have acted thus in what they believe to be the best interests of the colony I have no reason to doubt; but, whether or not it is the case, as they allege, that the intolerable burden of the Public Debt, and the position in which the colony was left by the contract of 1893, rendered this sacrifice inevitable, the fact that the colony, after more than forty years of self-government, should have to resort to such a step is greatly to be regretted.

10. I have to request that in communicating this despatch to your Ministers you will inform them that it is my wish that it may be published in the _Gazette_.

I have, etc., J. CHAMBERLAIN.

Some of the inferences set forth in the Colonial Secretary's lucid letter were questioned by the Newfoundland Government, but substantially his conclusions were not a.s.sailed. The decision of the Imperial Government by no means stayed the voice of local agitation, and the stream of pet.i.tions continued to grow. In a further letter to Governor Murray, dated December 5th, 1898, Mr Chamberlain laid down the great const.i.tutional doctrine which is the Magna Charta of Greater Britain. Every student of colonial politics should be familiar with these pa.s.sages:

"The right to complete and unfettered control over financial policy and arrangements is essential to self-government, and has been invariably acknowledged and respected by Her Majesty's Government, and jealously guarded by the colonies. The Colonial Government and Legislature are solely responsible for the management of its finances to the people of the colony, and unless Imperial interests of grave importance were imperilled, the intervention of Her Majesty's Government in such matters would be an unwarrantable intrusion and a breach of the charter of the colony.

"It is nowhere alleged that the interests of any other part of the Empire are involved, or that the Act is any way repugnant to Imperial legislation. It is a.s.serted, indeed, that the contract disposes of a.s.sets of the colony over which its creditors in this country have an equitable, if not a legal claim; but, apart from the fact that the a.s.sets in question are mainly potential, and that the security of the colonial debt is its general revenue and not any particular property or a.s.sets, I cannot admit that the creditors of the colony have any right to claim the interference of Her Majesty's Government in this matter. It is on the faith of the Colonial Government and Legislature that they have advanced their money, and it is to them that they must appeal if they consider themselves d.a.m.nified.

"No doubt, if it was seriously alleged that the Act involved a breach of faith or a confiscation of the rights of absent persons, Her Majesty's Government would have to consider it carefully, and consider whether the discredit which such action on the part of a colony would entail on the rest of the Empire rendered it necessary for them to intervene. But no such charge is made, and if Her Majesty's Government were to intervene whenever the domestic legislation of a colony was alleged to affect the rights of residents, the right of self-government would be restricted to very narrow limits....

"The fact that the const.i.tuencies were not consulted on a measure of such importance might have furnished a reason for its rejection by the Upper Chamber, but would scarcely justify the Secretary of State in advising its disallowance even if it were admitted as a general principle of const.i.tutional government in Newfoundland that the Legislature has no right to entertain any measure of first importance without an immediate mandate from the electors."

The pa.s.sing of the particular Bill by no means brought the Reid controversy to an end. In fact, the General Election in Newfoundland, of which the result was announced in November 1900, was fought entirely upon this absorbing question. The issue arose in the following way. The contract contained a clause providing that Mr Reid should not a.s.sign his rights over the railway without the consent of the Government. Mr Reid applied to the Government of Sir James Winter for such consent, but when that Government was defeated in February 1900, no answer had been received. Mr Reid wished to turn all his holdings in the colony over to a corporation capitalized at 25,000,000 dollars, he and his three sons forming the company. On the properties included he proposed to raise 5,000,000 dollars by debenture bonds, this sum to be expended in development.[51]

A Liberal Ministry under Mr Bond, who had consistently opposed the Reid arrangements, displaced Sir James Winter. Finding himself unable to hold his own in the a.s.sembly, Mr Bond formed a coalition with Mr Morris, the leader of a section of Liberals who had not a.s.sociated themselves with the party opposition to the contract. The terms of accommodation were simple: "The contract was to be treated as a _fait accompli_, but no voluntary concessions were to be made to Mr Reid except for a consideration." Consistently with this view, Mr Reid was informed by the Government that the permission he requested would be given upon the following terms:

(1) He should agree to resign his proprietary rights in the railway.

(2) He should restore the telegraphs to the ownership of the Government.

(3) He should consent to various modifications of his land grants in the interest of squatters able to establish their _de facto_ possession.

To these terms the contractor was not prepared to accede. It is difficult not to feel sympathy with his refusal. I had the advantage of hearing the contention on this point of a well-known Newfoundland Liberal, who brought forward intelligible, but not, I think, convincing arguments. The clause against a.s.signment without the consent of Government ought surely to be qualified by the implied condition that such consent must not be unreasonably withheld. In the private law of England equity has long since grafted this implication upon prohibitions against a.s.signment. If, however, the Government had been content with a blunt _non possumus_, a case could no doubt have been made out for insisting upon their pound of flesh. They chose, however, to do the one thing which was neither dignified nor defensible: they offered to a.s.sent to an a.s.signment on condition that Mr Reid surrendered his most valuable privileges. It is no answer to say, as many Newfoundland Liberals did say: We opposed the contract from the start, and it is therefore impossible for us to a.s.sent to any extension of the contractor's privileges. In fact, such an argument seems to betray an inability to understand the ground principle on which party government depends. That principle, of course, is the loyal acceptance by each party on entering office of the completed legislation of its predecessors. To borrow a metaphor from the Roman lawyers, the _hereditas_ may be _d.a.m.nosa_, but the party succeeds thereto as a _haeres necessarius_. Any other rule would subst.i.tute anarchy for order, and an endless process of reversing the past for a salutary attention to the present.

It must, on the other hand, be admitted that Mr Reid's conduct was not very well chosen to rea.s.sure his critics. He threw himself heart and soul into the General Election which became imminent, and displayed little judiciousness in his selection of nominees to fight seats in his interests. It is hard to suppose that independent men were not discoverable to lay stress on the immediate relief to the colony which the contract secured, and the inexorable necessity of which it might plausibly be represented to be the outcome. Mr Morine was Mr Reid's solicitor. He was a prominent Conservative and Minister of Finance, and his influence in the a.s.sembly (where his connection with Mr Reid was apparently unknown) had been exerted in favour of the contract.

When challenged on the point, Mr Morine a.s.serted that he advised Mr Reid only on private matters, in which his interests would not come into conflict with those of the colony. Compelled to resign, however, by Governor Murray on account of the apparently incompatible duality of his position, he was reinstated (April, 1899) by Governor M'Callum, on an undertaking that his connection with Mr Reid should be suspended during office. Mr Morine became leader of the Conservative party on the retirement of Sir James Winter, rea.s.suming at the same time his business relations with Mr Reid. In concert with the latter he began a political campaign in opposition to the Liberal party. His partner, Mr Gibbs, fought another seat in the same interest. _The Times_ correspondent above referred to gives an amusing account of other candidates:

"One of Mr Reid's sons has been accompanying him through his const.i.tuency, and is mooted as a candidate. Two captains of Reid's bay steamers are running for other seats. The clothier who supplies the uniforms for Reid's officials is another, and a shipmaster, who until recently was ship's husband for the Reid steamers, is another. His successor, who is a member of the Upper House, has issued a letter warmly endorsing Mr Morine's policy, and it is now said that one of Reid's surveying staff will be nominated for another const.i.tuency."

It may easily be imagined that to the ordinary voter the Conservative _personnel_ proved somewhat disquieting. Success at the polls would have enabled Mr Reid to say, with Louis XIV.--"_L'Etat, c'est moi._"

Amid extraordinary excitement the election was fought in the autumn of 1900 on the sole issue of the Reid contract, and resulted in a sweeping victory for the Liberal party, supporting Mr Bond in his policy as to Mr Reid's monopolies.

The Reid Contract has been dealt with at this length at a sacrifice of proportion which the writer believes to be apparent rather than real.

Newfoundland is newly emerged from infancy. The story of its childhood is relatively uneventful, but the political experiments of its adolescence must be of absorbing interest to all students of politics.

In 1901 an Act was pa.s.sed giving sanction to a new agreement with Mr Reid in regard to the railways, and incorporating the Reid Newfoundland Company. Under the agreement the sum of one million dollars was to be paid to him in consideration of the surrender by him of the right to own the railway at the end of 1938; and 850,000 dollars instead of 2 million acres of land to which he had become ent.i.tled as a bonus for undertaking to operate the railway until 1938.

He still had, however, claims in respect of certain rolling-stock and equipment that had been provided under earlier contracts; and also claims arising through the surrender of the telegraphs. All these were submitted to arbitration, resulting in awards to Mr Reid of 894,000 dollars and 1 million dollars respectively. However, under the new arrangement, Mr Reid ceased to be the virtual owner of the railway system; and became merely a contractor for its operation. The Reid Newfoundland Company, by agreement with Mr Reid, and with a capital of 25 million dollars, came into possession of over 2 million acres of land, with timber, mineral, and other rights thereon, and took over all existing contracts for working the railway, and mail and steamboat services of the colony, including St. John's Dry Dock and the St.

John's tramways, as well as powers for electric lighting in the capital. The new Company commenced operations on September 1st, 1901.

With the beginning of the twentieth century was inaugurated an epoch of political as well as economic progress in the history of the island. The numerous and widespread activities of the new enterprise gave a great impetus to the colony: it ensured the efficient working of the railway, and gave employment at a good wage to an army of working men in the various branches, and also in connection with the flotilla of steamers that were run. Other spheres of activity were gradually opened up, _e.g._ the establishment of a sawmill to furnish the timber necessary for the various needs of the scheme, the opening of a granite quarry to supply material for bridge building and paving the streets of the capital, the development of a slate area and oil boring, coal mining, the construction of a hotel in St. John's, etc.

The expansion of the undertaking increased from year to year, and included such projects as the establishment of flour mills, pulp and paper mills, etc. Next to the Government itself, the Reid Company became the largest paymaster in the island.[52]

Other factors contributing to the material advancement of the country were the development of the iron mines at Belle Island, and the production of pulp and paper by the "Anglo-Newfoundland Development Company," the initiators and controllers of which were Messrs Harmsworth, the well-known newspaper proprietors. This company was followed soon afterwards by the Albert Reed Company of London.

A few of the main events in the recent history of the colony may now be referred to; these, taking us down to the Great War, will suitably conclude the present chapter. First may be mentioned a curious development in the political arena. In 1902 the Ministerial candidates suffered a complete defeat in a by-election; and this result was attributed to two causes--in the first place, deficient fishing returns, and secondly, popular dissatisfaction at the monetary gains secured by Mr Reid. The contest of 1904 was further complicated by the formation of a number of factions in the ranks of the Opposition. The latter eventually joined their forces under five leaders, and, including all elements hostile to the party in power, took the field against the Bond-Morris Government. But the sympathies of the people were alienated from such an unusual combination, composed as it was of ant.i.thetical const.i.tuents, and when it was in addition rumoured that their aim was to effect a union with Canada, they suffered a severe reverse at the elections. Only Mr Morine was returned for his const.i.tuency; and he had no more than five followers in the a.s.sembly.

In these circ.u.mstances it was thought that Sir Robert Bond's administration was ensured a long term of office. But in July 1907 Sir Edward Morris, then Minister of Justice, resigned through a disagreement with the Premier on a question of the amount of wages to be paid to the employees in the Public Works. The Opposition under Mr Morison (succeeding Mr Morine, who had shortly before left Newfoundland for Canada) co-operated with leading supporters of Sir Edward Morris and invited him to become the leader of a united party.

He accepted the offer, and issued a manifesto in March 1908, indicating his policy. The number of his adherents increased, as a result of his efforts in the a.s.sembly. In the following November the quadrennial general election took place, which was vigorously--indeed bitterly--contested; and the result was a tie, eighteen supporters having been returned for Sir Robert Bond, and eighteen for the Opposition--a unique occurrence apparently in the history of self-governing colonies. The success of Sir Edward Morris was regarded as remarkable, in view of several disadvantages from which he suffered in the eyes of large sections of the population, _e.g._ his being a Roman Catholic (every Premier during the preceding half century had been a Protestant), his alleged sympathy with Mr Reid, and his alleged support of union with Canada. The Governor, Sir William MacGregor, having been requested by Sir Robert Bond to summon the Legislature, was then required by him, on the very eve of the session, to dissolve it, without giving it an opportunity to meet. The Governor refusing to do this, Sir Robert Bond, conformably to usage, resigned along with his cabinet. Sir Edward Morris was accordingly called upon to form a ministry; but at the meeting of the a.s.sembly the attempt to elect a Speaker failed, owing to the opposition of the Bond party. The Governor next endeavoured to obtain a coalition Ministry, but failed, and a dissolution was granted (April, 1909). At the election in May the Morris administration was returned with a substantial majority--the new ministry for the first time in the history of the island consisting entirely of natural-born Newfoundlanders. The course adopted by the Governor, who had been charged by followers of Sir Robert Bond with partisanship and unconst.i.tutional conduct, was thus vindicated by the election, and also approved by the Imperial authorities. In a despatch from the Colonial Office, November 14th, Lord Crewe observed:

"... It will be learned from my previous despatches and telegrams that your action throughout the difficult political situation, which was created in the colony by the indecisive result of the last general election, has met with my approval, but I desire to place publicly on record my high appreciation of the manner in which you have handled a situation practically unprecedented in the history of responsible Government in the Dominions. I may add that I consider your decision to grant a dissolution to Sir Edward Morris--which has, I observe, been adversely criticized in a section of the Newfoundland press--to have been fully in accordance with the principles of responsible Government."

In 1913 the growing prosperity of the fish trade was still further increased by the pa.s.sing of the new United States tariff law, which admitted fish to the United States free of duty. Further, the opening of the Panama Ca.n.a.l made possible the establishment of new markets.

Now we come to the next momentous event in the history of modern Newfoundland, as it is in that of the modern world generally--namely, the outbreak of the Great War in August 1914. The colony, like all the other British dominions and possessions, was fully alive to the justice of the British cause, and, like the others, was resolved as a faithful and dutiful daughter to contribute to the military, naval, and material resources of the Mother Country. This manifestation of colonial a.s.sociation and unity was a remarkable feature throughout the war, and will ever be memorable as a token of the undying bonds that unite the scattered const.i.tuents of the British Empire, and of the common feelings and ideals that inspire the various sections of the British family. Despite doubt and solicitude as to the effect on trade, especially on the fish markets, on which Newfoundland is so much dependent, the colony devoted itself wholeheartedly to the prosecution of the war.

In September 1914 a special war session of the Legislature was held, and several measures were pa.s.sed, making provision for the raising of a volunteer force of 1,000 men, for increasing the number of Naval Reserve from 600 to 1,000 men, and for raising a loan (which was subsequently furnished by the Imperial Government) for equipping and maintaining the projected contingents. It may be pointed out here that about the end of the nineteenth century the colony, desiring to partic.i.p.ate in the obligations--and indeed privileges--of Imperial defence, took steps to establish a Royal Naval Reserve. From 1900 a number of men volunteered as reservists, and entered for six months'

training on one of the vessels of the North American and West Indian squadron. In 1902 a training ship, H.M.S. _Calypso_, was stationed in St. John's harbour, where the 600 men--the number proposed--might duly complete their training. Before the war the Naval Reserve establishment amounted to 580. There were besides local Boys'

Brigades, but no military force whatever.

In 1915 considerable efforts were made. By the end of the year a military contingent of 2,000 men was raised, and the Naval Reserve was enlarged to 1,200. In November a plebiscite was taken in regard to the question of total prohibition, and a majority decided in its favour; so that from January 1st, 1917, the manufacture, importation, and sale of intoxicating liquors were prohibited.

In 1916 a battalion of the Newfoundland regiment took part in a good deal of severe fighting in France; and it was maintained to full strength by regular drafts from home.

In the meantime an Act was pa.s.sed imposing restrictions on the killing of seals in Newfoundland waters, the object being to prevent their extermination.

A political question that especially engaged the attention of the colony at this time was its relation to the Canadian Federation, but no progress was made towards the solution of the long standing problem. The following year it became again the chief concern (apart from the war) of the island's electorate. In June the question was raised in the Federal House of Commons at Ottawa; and members spoke in favour of union, declaring that from information received it appeared that the disposition of Newfoundland was becoming more and more in favour of it.[53] In July a coalition Ministry was established, and a Bill was pa.s.sed prolonging the life of the Parliament for twelve months, as it would normally have expired in October. In the early part of this year, Sir Edward Morris, the Premier, was in London and represented Newfoundland at the Imperial War Conference.

During the last year of the war the population found itself much more affected by the world conflict than it had been in the preceding years. Additions to the Newfoundland contingent under the voluntary system were becoming inadequate: accordingly, the new Government, of which Mr W.F. Lloyd was Premier, decided to introduce a Bill for the purpose of establishing conscription. This was of a selective character, that is, applying to all unmarried men and widowers without children, between the ages of 19 and 39. The conscripts were to be divided into four cla.s.ses according to age, the youngest being called up first. The Bill was pa.s.sed, and the measure proved to be a successful one.

After the conclusion of the Armistice in November, the Prime Minister, the Right Hon. Sir William F. Lloyd, K.C.M.G., acted as the representative of Newfoundland at the Paris Peace Conference (1919).

In concluding this chapter it will be of interest to give a few facts and figures showing Newfoundland's effort and record in the war.[54]

(1) PERSONNEL

At the outbreak of war there was no military force in Newfoundland.

There was, however, a pre-war establishment of 580 Naval Reservists besides local Boys' Brigades.

Newfoundland contributed to the fighting forces of the Empire 11,922 all ranks, consisting of 9,326 men for the Army, 2,053 men for the Royal Naval Reserve, 500 men for the Newfoundland Forestry Corps, and 43 nurses.

The Royal Newfoundland Regiment furnished a battalion for the Gallipoli campaign and sent 4,253 men to France and Belgium, suffering the following casualties:

Killed in action and died of wounds 1,082 Died from other causes 95 Missing 18 Prisoners of War 152 Wounded 2,314 ----- Total 3,661

The following decorations were won by the Regiment:

1 V.C., 2 C.M.G., 4 D.S.O., 28 M.C., 6 Bars to M.C., 33 D.C.M., 1 Bar to D.C.M., 105 M.M., 8 Bars to M.M., 1 O.B.E., 22 Mentions in Despatches, 21 Allied Decorations, 3 other medals: Total, 234.

In the Royal Naval Reserve 167 men were killed in action and 124 invalided out of the Service.