758 THE FEDERATIONS AND THE UNION [PART Iv 
only surrendered the railway lands, including, according to 
a recent decision of the Privy Council, water rights over such 
lands, but not the precious metals therein. The provinces 
which did not receive the land revenue were compensated 
by additional grants, and Prince Edward Island, which had 
no lands, received a subsidy for the buying out of the 
proprietors.! Finally, after long agitation? the Canadian 
Government decided in 1907 to make a new arrangement, and 
to increase the grants to the provinces, and this was done, as 
was necessary, by an Imperial Act of 1907 (c. 11), which fixed 
the grant as follows: (a) a fixed grant according to population : 
where that is under 150,000 a grant of $100,000, where not 
exceeding 200,000, $150,000 ; where not exceeding 400,000, 
$180,000 ; where not exceeding 800,000, $190,000; where 
not exceeding 1,500,000, $220,000; where over 1,500,000, 
$240,000. (b) A grant at the rate of eighty cents per head 
of the population of the province up to 2,500,000, and at the 
rate of sixty cents per head of so much of the population as 
exceeds that number. An additional grant of $100,000 was 
made to British Columbia for ten years in view of its ex- 
ceptional needs for development, while each of the provinces 
of Saskatchewan and Alberta received a grant of $93,750 a 
year for five years in lieu of land revenue. in order to pro- 
vide public buildings. 
The change was interesting because of certain of the pro- 
ceedings which led up to it. When an agreement had been 
arrived at in Canada in 1906, the Province of British Columbia 
sent over its Premier. Mr. McBride. to endeavour to induce 
On the long question of provincial rights of land, subsidies, &e., see 
Canada Sess. Pap., 1885, No. 34 ; Rev. Stat., 1906, cc. 28 and 99 ; for British 
Colurubia, see Willison, Sir Wilfrid Laurier, i. 369-408; for Manitoba, 
Canada Gazette, xliv. 3210-2 ; Manitoba Sess. Pap., 1910, pp. 107 seq. 
* Canadian Annual Review, 1905, pp. 314-21, 333, 387; 1907, pp. 605 
seq. The Conservative policy demands the lands for Manitoba, Saskatche- 
wan, and Alberta. In 1885 Manitoba received the swamp lands. The 
financial terms with each of the new provinces are set out in the Constitution 
Acts of 1870 (33 Vict. ¢. 3, s. 30) and 1905 (4 & 5 Edw. VIL cc. 3 and 42, 
ss, 18-20). On the limits of the powers to tax the lands of the two new 
provinces, cf. BR. v. Canadian Pacific Railway Co., [19117 A. C. 328.