After the plan of a northern route to Quebec was thus apparently given its quietus, interest shifted to the Portland connections. The building of the road from Montreal to Portland added further strength to the claims of this route. On paper, at least, it seemed possible to make the connection between Montreal and Halifax by following either the northern or the southern sides of the great square. One of the southern sides was now under way, and by building the other, from Portland to St John and Halifax, connection with the Canadas would be completed. Under the leadership once more of John A. Poor, Portland took up the latter project. The name of the proposed road, the European and North American, showed the influence of the same hope which Fairbairn had expressed—that the road from Portland to Halifax would become the channel of communication between the United States and Europe, at least for passengers, mails, and express traffic. With a line of steamers from Halifax to Galway in Ireland, it was held that the journey from New York to London could be cut to six or seven days.
In July 1850 a great convention assembled in Portland, attended by delegates from New Brunswick and Nova Scotia as well as from Maine and other New England states. Intertwined flags and fraternal unity, local development and highways to Europe, prospective profits and ways and means of construction, were the themes of the fervent orators and promoters. The convention was enthusiastically in favour of the project. The 550 miles from Portland to Halifax—222 in Maine, 204 in New Brunswick, and 124 in Nova Scotia—would cost, it was estimated, $12,000,000, half of which might be raised by private subscription and the rest by state and provincial guarantee.
The delegates from the Maritime Provinces returned home full of enthusiasm, but increasingly uncertain about the securing of the necessary capital. At this stage Joseph Howe came to the front. He had much earlier, in 1835, before entering parliament, taken the lead in advocating a local railway from Halifax to Windsor, but had not been prominent in recent discussions. He now urged strongly that the province of Nova Scotia should itself construct the section of the European and North American which lay within its borders. He proposed further to seek from the Imperial government a guarantee of the necessary loan, in order that the province might borrow on lower terms. The Colonial Office, while expressing its approval of the Portland scheme, declined to give a guarantee any more than a cash contribution. Nothing daunted, Howe sailed for England in November 1850, and by persistent interviews, eloquent public addresses and exhaustive pamphlets, caught public favour, and in spite of Cabinet changes in London secured the pledge he desired.
In the official reply of the Colonial Office Howe was informed that aid would not be given except for an object of importance to the Empire as a whole, and that accordingly aid was contingent upon securing help from New Brunswick and Canada to build the whole road from Halifax to Quebec. Major Robinson's line need not be followed if a shorter and better could be secured; any change, however, should be subject to the approval of the British government. 'The British Government would by no means object to its forming part of the plan that it should include provision for establishing a communication between the projected railway and the railways of the United States.' The colonies were to bear the whole cost of the loan, and were to impose taxes sufficient to provide interest and sinking fund, and thus ensure against any risk of loss to the United Kingdom.
Howe returned triumphant. The British government would guarantee a loan of £7,000,000, which would build the roads to Portland and to Quebec and perhaps still farther west. He hastened to New Brunswick, and won the consent of its government to the larger plan, went on to Portland and allayed its murmurs, and with E. B. Chandler of New Brunswick reached Toronto, then the seat of government of the province of Canada, in June 1851. His eloquence and the dazzling offer of cheap and seemingly unlimited capital soon won consent. The representatives of the three provinces agreed to construct the road from Halifax to Quebec on joint account, while Canada would build the extension from Quebec to Montreal, and New Brunswick the extension to the Maine border, each at its own risk, but in all cases out of the £7,000,000 guaranteed loan.
Then suddenly the bubble burst. The Colonial Office, late in 1851, declared that Howe had been mistaken in declaring that the guarantee was to extend to the European and North American project. The British government had no objection to this road being built, but would not aid it. The officials of the Colonial Office declared that they never meant to promise anything else.
It is difficult to assign with certainty responsibility for this serious misunderstanding. Possibly Howe's optimism and oratorical vagueness led him to misinterpret the promises made, but his reports immediately after the interviews were explicit, and in dispatches and speeches sent to the Colonial Office and acknowledged with high compliments, his version of the agreement had been set forth clearly and for months had gone unchallenged. He cannot be freed from a share of the blame, but the negligence of Downing Street was at least equally the source of the misunderstanding.
The whole plan thus fell to the ground. The consent of the three provinces was essential, and New Brunswick would not support the Halifax and Quebec project if the Portland road, running through the most populous and influential sections of the province, was to be postponed indefinitely. Hincks determined to endeavour to save the situation. Accompanied by John Young and E. P. Taché, he visited Fredericton and Halifax early in 1852, and hammered out a compromise. New Brunswick agreed to join in the Halifax to Quebec project on condition that the road should run from Halifax to St John and thence up the valley of the St John river; Nova Scotia agreed to this change, which made St John rather than Halifax the main ocean terminus, on condition that New Brunswick should bear five-twelfths as against its own three-twelfths of the cost. It remained to secure the consent of the Imperial government to this change in route, and accordingly Hincks, Chandler, and Howe arranged to sail for England early in March. Hincks sailed on the day agreed; Chandler followed a fortnight later; Howe, repenting of his bargain, postponed sailing a fortnight, a month, six weeks, and then announced that because of election pressure he could not go at all. Hincks and Chandler found in office in London a new government which appeared biased against the valley route. Upon a peremptory request from Hincks for a definite answer within a fortnight, the British Cabinet, in spite of the previous promise to consider the route an open question, declined to aid any but a road following Major Robinson's line. The negotiations broke off, joint action between the provinces failed, and each province switched to its own separate track.