CHAP. 1] THE DOMINION OF CANADA 687
of the claim of the true owner, and they paid over the encum-
brance not for the benefit of the land but for distinct and
important interests of their own. It was really a case where
expenditure by one party for his own interests had benefited
the other, and it might be, as a matter of fair play, that the
province ought to be liable for some part, but in point of law
it was not so liable. They recognized that the opinion of
the dissenting judges in the Supreme Court was due to a
passage delivered by Lord Watson in the case of St. Catherine's
Milling and Lumber Company v. The Queen This passage
did indeed give strong support to the views based upon it,
but they considered that Idington and Duff JJ. had stated
conclusive reasons against accepting the dictum as decisive
of the case. The point raised was neither raised nor argued
in that case, and it was quite possible that Lord Watson
did not intend to pronounce upon a legal right. If he did so
the passage must be regarded as obiter dictum. In the course
of the argument a question was mooted as to the liability of
the Provincial Government to carry out the provisions of the
treaty as regards future reservations for the benefit of the
Indians, but the question was not decided by the Judicial
Committee, and the matter is still being discussed between
the Ontario and the Dominion Governments.’
(1) Debt Liability
The provisions of ss. 111 and 112 of the British North
America Act with regard to the liability of the provinces to
the Dominion in respect of their debts have been frequently
discussed. The Provinces of Ontario and Quebec were to
' 14 App. Cas. 46, at p. 60. See also 25 8. C. R. 434, at p. 505. Cf. Lefroy,
op. cit., p. 594, note. Once the title is extinguished the lands become subject
to ordinary law; e.g. Church v. Fenton, 28 U.C.C. DP. 384; 40. A. R. 159;
58.C.R.239. While the Indians are entitled to rents, it is for the Dominion
Government to sue for them as being entrusted with the control of Indian
affairs ; Mowat v, Casgrain, January 20, 1896, cited in Lefroy, loc. cit.
* In the case of Ontario Mining Co. v. Seybold, [1903] A. C. 73, it was
held that a grant by the Dominion to Indians of lands as reserves was a
were nullity, except by legislative sanction of the province: see 54 Vict.
¢. 3 (Ontario): 54 & 55 Viet. ¢. 5 (Dominion).