4. The conveyance embraced the whole Government telegraph system of the colony.
5. It included a monopoly for the next thirty years of the coastal carrying trade.
6. It included the sale of the dry dock, and the granting, without consideration, of valuable waterside property belonging to the Municipal Council of St. John's.
On March 23rd Mr Chamberlain answered the representation of Governor Murray, and the profuse petitions which the latter had forwarded. Both from the general constitutional significance of the reply, and its particular importance in the history of Newfoundland, it is convenient to reproduce the letter in full:
Mr Chamberlain to Governor Sir H.H. Murray.
Downing Street,
March 23rd, 1898.
Sir,—In my telegram of the 2nd instant I informed you that if your Ministers, after fully considering the objections urged to the proposed contract with Mr R.G. Reid for the sale and operation of the Government railways and other purposes, still pressed for your signature to that instrument, you would not be constitutionally justified in refusing to follow their advice, as the responsibility for the measure rested entirely with them.
2. Whatever views I may hold as to the propriety of the contract, it is essentially a question of local finance, and as Her Majesty's Government have no responsibility for the finance of self-governing colonies, it would be improper for them to interfere in such a case unless Imperial interests were directly involved. On these constitutional grounds I was unable to advise you to withhold your assent to the Bill confirming the contract.
3. I have now received your despatches as noted in the margin, giving full information as to the terms of the contract, and the grounds upon which your Government have supported it, as well as the reasons for which it was opposed by the Leader and some members of the Opposition.
4. I do not propose to enter upon a discussion of the details of the contract, or of the various arguments for and against it, but I cannot refrain from expressing my views as to the serious consequences which may result from this extraordinary measure.