Bayne et al. v. The Eastern Trust Company et al.

AlD THE PROVINCE OF QUE- APPELLANTS; 'No 3,4. BE C .........................................

AND

*June 14. THE DOMINION OF CANADA.........RESPONDENT. IN RE COMMON SCHOOL FUND AND LANDS. ON APPEAL

FROM AN AWARD

IN

AN ARBITRATION RESPECTING PROVINCIAL ACCOUNTS.

The arbitrators appointed in 1870, under s. 142 of the B. N. A. Act, were authorized to " divide " and " adjust " the accounts in dispute between the Dominion of Canada and the Provinces of Ontario and Quebec, respecting the former Province of Canada. In dealing with the Common School Fund established under V. c. 20 (Can.), they directed the principal of the fund to be retained by the Dominion and the income therefrom paid to the provinces.

Held, that even if there was no ultimate "division and adjustment," such as the statute required, yet the ascertainment of the amount was a necessary preliminary to such "division and adjustment," and therefore intra vires of the arbitrators.

Held further, that there was a division of the beneficial interest in the fund and a fair adjustment of the rights of the provinces in it which was a proper exercise of the authority of the arbitrators under the statute.

By 12 V. c. 200, s. 3 (Can.), one million acres of the public lands of the Province of Canada were to be set apart to be sold and the proceeds applied to the creation of the " Common School Fund " provided for in sec. 1. The lands so set apart were all in the present Province of Ontario.

Held, that the trust in these lands created by the Act for the Common Schools of Canada did not cease to exist at Confederation, so that PRESENT:-Sir Henry Strong C.J., and Taschereau, Gwynne, Sedgewick and King JJ.