CHAP. 1] THE DOMINION OF CANADA 649 
secure the building of a railway line from the east to the west. 
It was also provided that the Dominion would consent to 
the introduction of responsible government into the province, 
and that it would undertake in respect of it the same 
obligations in effect as it undertook in the terms of the 
British North America Act in respect of the other provinces. 
The terms were inclusive also of a pecuniary subsidy to the 
Province, and on the other hand its Government surrendered 
the control over Indians and their lands to the Federation, 
a clause which was destined to produce difficulties later on, 
a8 the Dominion was to receive from time to time grants 
of land from the province, and the province and the Dominion 
Cannot agree as to the extent of the lands thus to be trans- 
ferred? Another clause provocative of trouble was that 
with regard to lands to be surrendered by the province in 
respect of the new railway to be built, for in 1910 the 
Yuestion was carried to the Privy Council whether, despite 
the surrender, the province still did not possess full legis- 
lative power as to water rights over such lands, a power 
the Judicial Committee denied, and which affirmed would 
have made the bargain a very bad one for the Dominion. 
The union of the province with the Federation was dated 
by the Order in Council of May 16 approving the terms of 
transfer to take effect from July 20, 1871.4 
The next addition to the Dominion was that of Prince 
Edward Island, which was loath to join the Federation in 
1867. The essential difficulty was the presence in the 
island of a number of large landholders, and the fact that 
the rest of the people could not obtain land for themselves, 
* This was effected by, first, the creation of a representative legislature 
(one chamber of nine elective and six nominee members) by an Order in 
Council of August 9, 1870, under the Imperial Act 33 & 34 Vict. c. 66, and 
then by an Act of 1871 (No. 147) creating a constitution contemplating 
*eSponsible government. 
* The policy was to be at least as generous as that of the Colony. But 
"hat policy had de facto been very far from generous. See a return to an 
address of the Canadian House of Commons, January 28, 1908. 
See Burrard Power Co. v. The King, 43 S. C. R. 27; [1911] A. C. 87. 
Cf. also Canada Sess. Pap.. 1867-8, No. 59, pp. 3-7.