Professional Documents
Culture Documents
XLV
tently passed by the authority which had power to deal witb bank
into Maine, but Benjamin seized upon paragraph " b", which ex-
ruptcy and insolvency. But no such law has ever been passed; and to cepted provincial control only from steam ship lines extending into
suggest the possibility of such a law as a reason why the power of the a foreign country. The Privy Council did not consider it necessary
provincial legislature over this local and private association should be to deal with th e question und er section 92, sub-section ID, upon
in abeyance o r altogether taken away, is to make a suggestion which, if which Benjami n fl!lied, but it was rather governed by Acts of the
foll owed up to its consequences, would go very far to destroy that
power in all cases.'~ New Brunswick Legislature of June 10th and 17th, 1867, which,
prior to the effective dat e of the British North America Act,
Their Lordships reasoned that the provincial legislature enacted
authorized the railway subsidy. As for th e later Act,n the validity
that statute under its exclusive power to make laws 00 "all matters
of which was being contested in th e case, the Privy Council held
of a merely local or private natufe in the Province l> .1T Clearly this
that it provided only [or the details of putting the earl ier legislation
matter is private; clearly it is local," declared Lord Selborne. u Nor
into effect.
does the exclusive power of the Dominion Parliament over bank-
One of the arguments offered in opposition to the New Bruns-
ruptcy stand in the way of the Act of the provincial legislature,
wick legislation was that , si nce under section 92, sub-section 2
because it is not a bankruptcy statute. L'Unioo being,
of the British North America Act the provinces are empowered to
US upra, footnote 13, at p. 36. " Ibid., at pp. 3637.
11 B.N. A. Act. , .supra. footnote I , s. 92 (16). 't l bid., at pp. 37438. to> Supra, footnote 11.
1ft Supra, footn ote 13, at p. 35. !1 (1870), 33 Vict., c.47. n Ibid .
462 LA REVUE DU BARREAU CANADIEN
1967J Did JlIdah P. Bel/jamin Plant the" States' R ights" ? 46 3
impose "direct tax ati on .. , for provincial purpo,ses", the tax here
licensee but by each purchaser of a policy. Nor were such stamp
was invalid because it was for a purely local (pan sh) purpose. The taxes direct taxation. "The political economists". he said,1lI
record does not show how Benj amin met that argu ment, but their
Lord shi ps cou ld "see no ground fo r giving so limited a construction ... are all agreed. There is not a single inslance produced on the other
side .. , . If onc could have been foun d in favor of the appellants, it Was
to this clause" of th e Act. "They th ink it must be taken to enable . the duty of the appellants to call their Lordships' attention to it. No
the provincial legislature, whenever it sha ll see fit , to .impo:c ,direct such ca!es have been fou nd. Their Lordships, therefore, think they are
taxation fo r a loca l pu rpose upo n a pnrticu lar locality wlthm the warranted in assuming that no such case exists . All E nglish and
province".21 American decisions cited are all one way. They all treat stamps either
as indirect taxation, or as not being direct taxation. Again, no authority
The case of Quebec v. Queen Insurance Compani ' raised the
on the other side has been cited on the part of the appellant. (Two
q uestion of the authority of the Legislature of Q uebec to enact a cyclopaedias produced show that popular and techn ical use of the term
statute im posi ng a tax on certain policies of ins uran ce. ~ It was "direct taxati on" are the sameJ. And, here again. there is an ulter de-
called a license tax, but it was to be paid by the individual pur- ficiency on the part of the appellant in producing a single instance to
the contrary.
chasers of insu rance policies, the evidence of s.uch payments to
consist of stamps affixed to each policy. Benjamin, counsel for the Valin v. Langlois:' presented the rather technical question of
Province of Quebec, cited as authorizati on for th e Act section 92, lhe validity of a provision of the Dominion Controverted Elections
sub-sections 2 and 9 of the British North America Act. They are Act:lO which conferred jurisdiction on existing provincial courts to
as follows:::oe. try election petitions (covering cases of disputed ejections to the
2. Direct taxation within the province in order to the raising House of Commons) . In the instant case Valin had made certain
reven ue for provincial purposes: preliminary objections to an election petition filed against him by
9. Shop, saloon. tavern, a uctioneer, and other licen~e.s, in order to the Langlois praying that Val in 's election to the House of Commons
raising of a revenue for provincial, local, or mUnicipal purposes. be dec1 ared null and void because he had practised bribery. The
As summarized in the report of the case, Benjamin's argument OUef Justice of the Superior Court of Quebec dismissed Valin's
was, in part, that :7T i1bjections and the Supreme Court of Canada affirmed . Supporting
The gene ral power of taxation, i.e., the power of raisin g money f.or Valin 's petiti on fo r special leave to appeal to the Privy Council,
Dominion purposes belo ngs to the Dominion Parliament. Bllt special Benjamin did not question the authority of the Dominion Parlia-
powers of taxation were also given to the provi~ci~l Legislature. and ment under section 41 of th e British North America Act to provide
may co-ex ist with the mo re general powe-: of a Simi lar class co ~ fe r r~d Ially for the settlement of controverted elections. Rather he con-
on the Dominion Parliament. Those speCial powers when exarntned In
detail show the purpose of th e Legislature. There is an express. grant
tended that in conferring such jurisdiction upon existil~g provincial
to the provincial Legislature of a power to make laws relati ng to oourts it was violating sub-section 14 of section 92 of the Act,
licenses Lciting sect. 92, sub-sect. 9). . .-hich gives th e provincial legislatures exclusive power to legislate
But even if this is not a license tax within sect. 92, sub_sect. 9, ... It
was direct taxation under sub-sec t. 2 of sect. 92. It is impossible to
classify scientifically direct a nd indirect taxes. It depends in e.ach case . .. the administration of justice in the province, including the con-
upo n thc surrou nding circumstances whether a n apparen t di rect tax stitution. ma intenance, and organization of provincial courts, both of
turns out to be indirect in its operation or I' ice versa. civil and criminal jurisdiction, a nd including procedure in civil matters in
those courts.
In short, Benjamin argued that the tax was valid ei ther as a
license tax o r as a direct tax. The JudiciaLCommittee was not im- Lord SeIborne, speaking for th e Privy Council, complimented
pressed . Speaking through Sir J. Jessel, it declared that the tax Benjamin upon his presentation of the case, venturing,
was not a license tax but simply a stamp tax paid not by the to say for their Lordships gen erally that they very much doubt
whether, if there had been an appeal and counsel present on both si des.
the grounds o n which an appeal would have been supported, o r mi ght
n S/lpra . footno te ll , at p. 282. ~. (1878).3 App. Cas. 1090.
::> (1 876), 39 Vic!., c.7. '.!G S upra, footnote 1.
"l Supm, footnote 24, at pp. 1095-1096.
'" Ibid. , at pp. 11001101. ~ (l879), 5 App. Cas. 115.
:00 (1 874), 37 Vie!., c.lO.
" Supra, footnote I .
464 THE CANADIAN BAR REVIEW [VOL. XLV 1967] Did Judah P. Benjamin Plant the" States' Rights" ? 465
have been suppo rted, could have been better presented to their Lord- or restricted, howeve r locally, by a provincial legislature. The scheme
ships than they have upon the present occasion by Mr. Ben jamin.:t2 of the B. N. A. Act is that the Dominion Parli ament has all legislative
power except that which is exclusively given to the provincial legisla*
But in commenting upon the difficulty of finding any ground tures. The true mode of construction is to sec if the subject is exclusively
upon which the competency of the Parliament of Canada to enact given to the provincial parliament, if not it belo ngs to the Dominion
the statute could be questioned , his Lordship qual ified his praise Parliament. The true meaning of sect. 92, No. 13, is that the provinc ial
of the distinguished counsel, in these words : "'* parliament has the exclusive right to create within the province ri ghts
of property and such civil rights as How from the operation of law;
... the ground which is suggested by IMr. BenjaminJ is this, that it has which it can exercise without infringing the Dominion control over
seemed fit to the Parliament of Canada to confer the jurisdiction neces- contracts and the rights resulting therefrom
sary for the trial of election petitions upon courts of ordinary juris-
dictio n in the provinces, and it is said that althou gh the Parliament of Sir Montague Smith, speaking for the Judicial Committee, dealt
Canada might have providf"d in any other manner for those trials, and first with the vexing question of how the courts and other authori-
might have created any new courts for this purpose, it could not commit ties should determine cases in which there appeared conflicts be-
the exercise of such new jurisdict ion to any existing Provincial Court. tween the authority of the Parliament of Canada and that of the
After all their Lo rdships have heard Mr. Benjamin, they a re at a loss provincial legislatures under sections 91 and 92 of the British
to foll ow that argument.
North America Act.
Two leading cases, Citizens Insurance Company v. Parsons
.. the two sections nlllst be read together, [he saidJ, and the language
and Queen Insurance Company v. Parsons, decided jointly and of one interpreted, and, where necessary, modified, by that of the other.
commonly cited jointly as the Parsons case,:I.I tested the validity of In this way it may, in most cases, be fou nd possible to arrive at a
the Ontario Fire Insurance Policy Act'" which required that cer- reasonab le and practica l construct ion o f the language of the sections,
tain conditions be stipulated in fire insurance policies by all in- so as to reconcile the respective powers they contain, and give effect to
all of them ....
surers in Ontario, including corporations and companies, of what-
The first question to be decided is, whether the Act impeached in the
ever origin, and whether or not such insurers held a license from present appeals falls within any of the cl asses of subjects enumerated
foreign, Dominion, or provincial authority. in section 92, and assigned exclusively to the legislatures of the prov_
Appearing with Benjamin as counsel for the appellant in- inces; for if it does not, it can be of no validity, and no other question
surance companies was the Solicitor-General, Sir F. Herschell. would then arise . 1rI
Their argument, no doubt ch iefly Benjamin's, was centered on the His Lordship then turned to the opposing con tentions of the
point that the Ontario statute encroached upon Dominion power. parties respecting the meaning of sub-section 13 of section 92-
Sub-section 2 of section 91 of the British North America Act gives "property and civil rights in the province". He noted that the
the Parliament of Canada exclusive power over "the regulation of Ontario Act,
trade and commerce". Sub-section 13 of section 92 confers upon . deals with policies of insurance . and prescribes certain con-
the prov incial legislatures the power to legislate exclusively on ditions which are to fo rm part of such contracts. These contracts, and
"property and civi l rights" in the provinces. In section 91, they the rights arising under them [the respondent] argued, come legitimately
argued: .1oI within the class of subject, "property and civi l rights". The appellants,
on the other hand, contended that civil rights meant only such rights
. "regulation of trade and commerce" means within the whole
as fl ow from the law, and gave as an instance the status o f persons.
Dominion. They are the most general words which can be used, and
Their Lordshi ps .. . find no sufficient reason in the language itself, nor
include every kind of business which can be possibly ca rried o n .
in the other parts of the Act, for giving so narrow an interpretation to
But in this case the Ontario statute purports to regulate the whole con-
the words "civil rights ." The words are sufficiently large to embrace, in
duct o f insurance business within the province.
their fair and ordinary meaning, rights arising from contracts, and such
Further, the Domi nion Act (38 Viet. c. 20), has imposed certain con-
rights a re not included in express terms in any of the enumerated
ditions upon compa nies of this kind upon the performance of which the
classes of subjects in section 91.-
,:i ght to earry on business results, which cannot afterwards be hampered
As for the appellants' argument on th e inclusiveness of the
:t:l. Su.pra footnote 29. at p. 117. '" Ibid ., at p. 119.
~ (1881), 7 App. Cas. 96. ~ (1876), 39 Vict. , c.24.
~ Supra, footnote 34, at pp. 100101. 1rI ibid., at p. 109. ,. Ibid., at pp. 109*110.
.!
I 466 LA REVUE DU DARREAU CANADJEN [VOL. XLV 1967) Did Judah P. Benjamb, Plant the "States' Rights"? 467
power of the Domi ni on Parliament to regulate trade and com- and 13 of section 92 of the British North America Act, which
merce, SiT Montague stated that it did not , give the provincial legislatures exclusive power to legislate on,
. , . comprehend the power to regulate by legislation the contracts of a 7. The establishment, maintenance, and management of hospitals,
panicular business or trade, such as the business of fire insurance in a asylums, charities, and eleemosynary institutions in and fo r the
single prov ince, and therefore that ils legislative authority does not in provinces . . .
the present case conflict o r compete with the power over property and 11 . The incc;?rporation of companies with provincial objects.
civil rights assi gned to the legislature of Ontario by No. 13 of section 13. Properly and civil rights in the province.
92 .....
The subject of the Act in question is provincial, he said,
Th e appellants had further argued that the Ontario statute was because the domicile of the Board is in Montreal, and the funds are
beyond the competence of the provincial legislature in that it invested in the Province of Quebec. Furthermore, he maintained,
imposed conditions for fire insurance companies doing business in if the provincial legislature of either Quebec or Ontario is singly
the province which had obtained licenses to conduct business incompetent to amend or repeal the pre-confederation Act of
throughout the Dominion. as th e appellant companies had, in 1858,fll the conjoint operation of both legislatures would be valid.
compliance with an Act of the Parliament of. Canada.'o To this Lord Watson, a relatively new member of the Judici al Com-
contenti on Sir Montague repli ed that the Dominion statute relied mittee, who, in the opinion of some Canadian scholars, was
upon, strongly influenced by Benjamin's '''states' rights" reasoning, de-
in no way interferes with the authority of the legislature of the livered the opinion of the Committee:'
Province of Ontario to legislate in relation to the contracts which cor- The most plausible argument for the respondents, [he saidl. was founded
porations may enter into in that province. [Besides. the Dominion Act] upon the terms of Class (13), but it has failed to satisfy their Lord-
clearly recognizes the right of the provincial legislature to incorporate ships that the statute impeached by the appellants is a law in relation
insurance companies for carrying: on business within the province to property and civil rights within the Province of Quebec ....
itself." The Quebec Act 08 Vict.. c. 64}, does not profess to repeal and
Here, then, is a case in which the Judici al Committee took a amend the Act of 1858, only in so far as its provisions may apply to
or be operative within the province of Quebec, and its enaclment is
long stride toward upholding provincial power and in which Ben-
apparently not framed with a view to any such limitation. The reason
jamin contended for Dominion power. is obvious. and it is a reason which a ppears to their Lordships to be
Shortly after this insurance case was decided Benj amin was fatal to the validity of the Act. The corporation and the corporate
back before the Privy Council advocating a provincial claim of trust. the matters to which its provisions relate, are in reality not
power. This was in the case of Dobie v. Temporalities Board.'1 divisible according to the limits of provincial authority, [for they con-
cern both Quebec and Ontario}.
Back in 1858 the pre-confederation Parliament of Canada had
created a corporation" to handle certain funds to which ministers As for counsel's argument that Quebec was empowered to
of the Presbyterian church in Quebec and Ontario were given rights. pass the Act of 1875 because the domicil and principal office of
A few ycars after confederation the Legislature of Quebec made a the Temporalities Board were in Montreal and its funds all in-
number of changes in the administration of the fund." The question vested in Quebec, his Lordship replied in this language:61
rai sed by the Dobie case was whether Quebec, or that province These facts are admitted on record by the appellant , but they do not
affect the question of legislative power. The domicil of the corporation
and Ontario acting concurrently, had the authority under the
is merely forensic, and cannot alter its statutory constitut ion as a board
British North America Act to alter or repeal the preconfederation in an d for the provinces of Upper Canada and Lower Canada. Neither
statute. can the accident of its funds being invested in Quebec give the Legis-
Mr. Bcnjamin argued that the later Quebec legislation estab lature of that province the a uthority to change the constitution of a
lishing the Temporalities Board and mak ing other changes in the corporation with which it would otherwise have no right to interfere.
administration of the fund was authorized by sub-sections 1, 11, Nor did Benjamin's suggestion that if the Legislature of
Quebec was incompetent to pass the Act of 1875 , Quebec and
"" Ibid., at p. It3. .0 (1875),38 Vict., c.20.
"Supra, footnote 34, at pp. 114115. If (1882), 7 App. Cas 136. .. Supra. footnote 43. "Supra, footnote 42, at p. 150 .
.. (1858),22 Vict., c.66. "(1875),38 Vict., c.64. n l bid. at p. 151.
468 THE CANADIAN BAR REVIEW [VOL. XLV 1967] Did Judah P. Benjamin Plant the " States' Rights"? 469
Ontario were competent, by conjoint ac ti on, to accomplish that Brown, for Benj amin was at the time completing an argument
end. Said his Lordship, disposing of that reasoning: ' before the House of Lords. Counsel for the appellant based their
U
If the Legislatures of Onta rio and Quebec were allowed jointly to argument largely on the proposition that the Parl iament of Canada
abolish the Board of 1858, which is one corporation in and for both in passing th e Act had contravened sub-section 9, 13 , and 16, of
provinces, they could only create in its room two corporations, onc of section 92 of the British North Am erica Act, which reserved to the
which would exist in and for Onta rio and be a fo reign corporation in provincial legislatures the exclusive power to legislate in relation
Quebec, and the other of which would be foreign to Ontario bUl a
to,"
domestic institution in Quebec. Then the fund s of the Ontario corporation
could not be legitimately seUled upon objects in the province of Quebec. 9. Shop, saloon, tavern , auctioneer, and other licenses, in order to the
and as little could the funds of the Quebec corporation be devoted to raising of a revenue for provincial, local or municipal purposes.
Ontario, whereas th e Temporali ties Fund fail s to be applied either in 13. Property and civil rights in the province.
the province of Quebec or in that of Onta rio, and that in such amounts 16. Generally a ll mallers o f a merely local or private nature ....
or proportions as the needs of the Presbyteri an Church of Canada, in Noting the wide sweep of the powers of the Dominion Parlia-
connection with the Church o f Scotland, an d of its ,ninisters and con- ment under section 91 to "make laws for th e peace, order, and
gregations, may from time 10 time require .
good government of Canada" , regulate trade and commerce, and
It would thus appear that the argument of the learned counsel to enact criminal law, appellant's counsel cited the opinion of the
w",s singularly ineffective with Lord Watson and his associates. Judicial Committee in the Parsons case,M decided less than a year
Yet, when the facts of the controversy are considered, it seems before, in which, in response to Benjamin's strong argument for
fair to say that Benjamin had practically a hopeless case and that . Dominion power, the Committee explai ned th at app arently con-
probably no other barrister could have presented it better. flicting provisions of sections 91 and 92, if read together, could
The last and most famous case under the British North be so construed as to give a reasonable and practical construction
America Act in which Benjamin appea red before the Judicial Com- io both sections. Following this guide, counsel argued, for example,
mittee was that of Russell v. The Queen:" The Parliament of that although the Dominion Parliament's power to regulate trade
Canada, with the object of promoting temperance, passed the and com merce mi ght be interpreted to extend to practically every
Temperance Act of 1878.'" The Act provided that the problem type of transaction, it surely could be interpreted so as to yield
should be handled by the local option system, under which any somewhat to the exclus:ve power of a province to legislate on such
county or city in the Dominion could elect to prohibit th e retail a local matter as th e retail sale of liquor . ~
sale of intoxicating liquors. The City of Fredericton, New Bruns- Since this article relates especially to Mr. Benjamin, more
wick adopted prohibition und er the terms of the Act, and in that particul ar attention should be given to his argument. Without
city Russell was convicted for an illegal sale of liquor. Following referring directly to the experience of the United States, he rather
an earlier decision of the Sup reme Court of Canada"' sustaining obviously made an analogy between the American States giving
the Temperance Act as within the power of the Dominion Parlia- up powers in 1787-1789 to form the Union and the Canadian
ment to regulate trade and commerce, the Supreme Court of New Provinces doing the same in 1867 to establish the Confederation.1?
Brunswick sustained the Act in Russell's case." It was on this issue The analogy of the approach to the federali sm in the two coun-
of the authority of Parl iament to enact the statute th at RusselI tries was somewhat inept, as was pointed out by Mr. Maciaren,
appealed to the Judicial Committee. leading counsel for the Dominion," but the historical correction
Mc. Benjamin was the leading counsel for the appellant,
although the argument was opened by his associate, Mr. Reginald s., Rflssc:ll v. The Queen: Argume nt in Privy Counc il (May 2nd-3 rd,
IS~:!: L T hiS pamphlet, long out of print. but available in the Library of the
'l lbid., at p. 152. . Supreme Court of Can ada and some other Canadian law libraries contains
.. Supra. footnoLe 12. Not many months after he argued thiS case Ben. l he complete printed arguments of counsel as transcribed from the shorl-
jamin was seriously injured in an accide~ t in Paris. A .Iittle later he had a hand notes of the court reporters. In the discussion of the arguments lo
severe hea rt attack and was forced 10 retire from practice. follow page references are 10 this pamphlet.
"" (1878), 41 Vict., c.16. ~ Supra, footn ote 1. U Supra, footnote 34.
.. Op. Cif . footnote 53, pp. 24, 41-42.
'I City of Frerlerictoll v. Th e Qlleell ( 1880). 3 S.C .R. 505.
IT Ibid., p. 41. " Ibid., p. 58.
M Supra. footnote 12, at p. 833.
470 LA REVUE DU BARREAU CANADIEN [VOL. XLV 1967J Did Judah P. Benjamin Plant the "States' Rights"? 471
did not spoil Benjamin's argum ent tha t the British North America sub-section of section 92 of the B. N. A. Act which concerns the
Act left to the provinces whatever was private, .. whatever was retail of liquors in taverns, not of poisons."
Home Rule"."" Sir Barnes Peacock, P.c., then followed the same line of sug-
The Parliament of Canada, accordin g to Benjamin, has no gestions concerning a possible Dominion statute regulating the sale
direct authority to regulate the local trade in liquor. It may strike of dynamite. At that point Benjamin displayed a little weariness,
it indirectly. as with a tariff law, but touch it directly, it must not. and remarked : ''1 know how difficult it is for those who are bred
And he vividly maintained that the statute contested before the under a legislation, where the Imperial Parliament is Sovereign, to
Privy Council does strike directly. realize ... a state of things in a country where there is no such
There are sections of this law, expressly pointing to licenses, he said. thing... ..
Now you have a right ( 0 pass a general law I Q regulate trade and com- Mr. Benjamin based a part of his argument on the proposition
merce, but the Provincial Legislalllre has the exclusive right to make that it deprived the provinces of their revenue from tavern licenses
laws ill refatioll to licenses. And if the General Government makes a
as authorized by sub-section 9 of section 92 of the British North
law in relation to licenses, it is doing that which in words is expressly
granted to the Provincia l Legislature. Then I am told, but we have a America Act :u
right to regulate trade and commerce. Regulate trade and commerce as You take away the income derived from tavern licenses, [he saidl .
much as you please, bllt do not tOllch licenses, that is wlzat you must What are you going to put in its place? We all know how very large
/lot do. You may regulate trade and commerce, and therefo re if your source of income that is. We all know what the excise on liquor and
regulation was. that there shall be no liquors imported or manufactured the licenses for the selling of liquors produce in the way of revenue
in the Dominion in that way, of course indirectly, the provinces would ' in this country, and we know that that is a subject which cannot be
be deprived of the revenue derived from licenses. But it is not that_ touch ed without a Chancellor of the Exchequer ri sing instantly up in
They say you may bring spirits into the Kingdom; you may sell them; arms and saying: "You are cutting off my revenue".
you may sell them in ce rtain quantities; but we know that there are
H e argued also against the Local Option provision, maintain-
licenses which you have a ri ght to grant and we say your licenses shall
be of no authority .~ ing that the Dominion Parliament had no authority to delegate
, If the "trade and commerce" clause fails to contain authority
power in that manner. Suppose Parliament had made the Tem-
perance Act applicable to this City of Fredericton alone. "Could
1 for the Temperance Act, may it not be found in the "peace, order
anybody have said that that was within their power ... ? 1 think
and good government" clause? No, said Benjamin, for the Parlia-
nobody will suggest that they could." But they accomplish the same
ment of Canada is under precisely the same limitation here as in
I its exercise of the trade and commerce power. It must not act in
relation to matters which are assigned exclusively to the legislature
purpose by permitting the electors of the city "to vote that a par-
ticular Act should be Jaw .. .", The Dominion Parliament says
I of the province. e
"Supposing". suggested Sir Mont ague E. Smith, P.c. , " a license
this, in effect in this case . " In the City of Fredericton there shall
be no retail sale of liquors substantiall y, provided the inhabitants
of Fredericton wish that there shall be no retail of liquors
down to earth, if somewhat repetitious. It was often interrupted .. has in its legal aspect an obvious and close similarity to laws which
by the Councilors' comments, suggestion s, questi ons, and criti- place restrictions on the sale or custody of poisonous drugs. or of
cisms, a practice which in common law countri es, at least, keeps dangerously explosive substances. These things, as well as intoxicating
counsel alert, gives an informality to th e proceedings without de- liquors, can, of course be held as property, but a law placing restrictions
on their sale, custody, or removal , on the ground that the free sale or
priving them of dignity, and often clarifies the points under dis- use o f them is dangerous to pub lic safety, and making it a criminal
cllssion. offense punishable by fine or imprison ment to violate these restrictions,
The argument of counsel for the Dominion was, at the request cannot properly be deemed a law in relation to property in the sense in
of the Committee, limited primarily to the q uestion of the validity which those words are used in the nnd section [of the B.N.A. Act].
of the Temperance Act when considered in relation to the exclusive And, finally, on Mr. Benjamin's impassioned argument th at
power of the provincial Jegislatures to regul ate matters of a "merely the Temperance Act dealt with a matter which was local and thus
local or private nature". Counsel maintained th at intemperance exclusively reserved to the legislative authority of the provinces,
was a national problem in Ca nada, and that the Act in question Sir Montague had this to say:
fixed a national policy for corn batting it, despite the provision in The declared object of Parliament in passing this Act is that there should
th e Act for local option. They argued also that the legislation be uniform legislation in all th e provi nces respecting the traffic in in-
came within the powe r of the Dominion Parliament to regulate toxicating liquors, with a view to promote temperance in the Do minion.n
The present legislation is clearly meant to appl y a remedy to an evil
trade and commerce and to enact criminal law .... which is assumed to exist throughout lhe Dominion, and the local
Sir Mont ague E. Smith, speaking for the Pri vy Council in option, as it is called, no more localizes the sub ject and scope of the
Russell v. The Queen, directed his attention largely to considering Act than a provision in the Act for the prevention of contagious disease..'\
and rejecting Benjamin's arguments fo r the appellant. As for the in cattle that a public offi cer should proclaim in what districts it should
argument that the Parli ament of Canada had illegally delegated its become in effect would make that statute a mere local law for each of
these districts.':
power in the local option provision, Sir Montague said that the:'1
. Act does not delegate any legislative power whatever. It contains ea Ibid., at p. 837. In short , the power of a provi nce to tax does not
--:-:--:-c remove the maller taxed from the appropriate authority of the D ominion
.. Ibid., at p. 54 er seq, , Supra, footnote 12, at p. 835 . : Supra, footnote 50. '0 Supra, footnote 12, at p. 858, .
Ibid., at p. 841. 1~ Ibid., at p. 842.
474 LA REVUE DU BARREAU CANADlEN [VOL. XLV 19671 Did Judah P. Benjamin Plant the .. States' Rights" ? 475
Thus did the former Secretary of State of the Confederate conceded their weight by giving considerable space to refuting
States of America, the skillful and very highly respected advocate, them.
lose his last argument for provincial power before the Iudicial Benjarnin's career as barrister ended in 1882. This was before
Committee of the Privy Council. It is readily conceded that his the Judicial Committee had made any serious inroads on the power
argument was excellent, particularly his point that the Temperance of the Parliament of Canada. Lord William Watson, who has been
Act dealt with local matters. The Committee might well have sometimes suspected of having been particularly lacking in im-
decided the case for his client, but the significant fact for our pur- munity to Benjamin's arguments for the powers of the provinces,
poses is that he failed to convince the Committee. actually, as Privy Councillor, heard only one of them, his presenta-
We must now take a general view of Benjamin's presentations tion in Vobie v. Temporalities Board,ro and his Lordship spoke for
of British North America Act cases before the Judicial Committee the Council in refutation of his contenti ons.
of the Privy Council. The first point of emphasis is that, although If Benjamin found practically nothing from his arguments sup-
he had been a lawyer, planter, politici an, and statesman in the ported in the opinions of the Judicial Committee, is there, never-
United States, he gave all of hi s time and talent to the law in theless, ground for maintaining th at, after his retiremen t and death,
Britain. Nothing diverted him . In it he found his greatest satis- his influence with the Com mittee became stronger than it had been
fac tion and mental stimulation , the highest professional honours, when he stood before it in the flesh? Surely it is practically im-
and a lucrative income. In his professional capacity he commonly possible to answer that question. It is not enough to say that the
accepted briefs from those who sought his services. If the majority ex-Confederate abl y advocated provincial rights and that during
of his Canadian cases placed him in the position of advocating the decade following his death, hi s arguments must have caught
provincial power, it may have meant that his clients whose cases fire with the Committee, because it became a stalwart guardian of
rested on the existence of such power considered that, with his the rights of the provinces. What evidence is there th at Benjamin's
knowledge of and experience with federalism in th e United States arguments of the 1870's and early 1880's influenced the Privy
and his states' rights background , he would have a better under- Council in the late 1880's and 1890's? The writer, with great
standing and a stronger interest in their cases. Benjarnin probably caution, suggests a few fragments.
cared little about wh ich side he represented for cases on constitu- In Hodge v. The Queen," decided in 1883 , the Judicial Com-
ti onal law, particularly in its formative period, commonly in- mittee was called upon to pass upon the constitutionality of the
volve policy no less than law and it is an unusual case that does Ontario Liquor License Act of 1877 .1~ That statute established a
not offe r wide opportunities to counsel on either side. board with broad powers to fi x the qualificati ons (or persons ob-
Benjamin vigorously and ably supported the exclusive power taining licenses to keep taverns, to limit the number of such
of the Parliament of Canada to legislate on insolvency and bank- licenses, and in general to regulate the retail grade in liquor. The
ruptcy in L'Union caseu and in arguing fo r its power to legis- Committee reaffi rmed Russell v. The Queen ,"'" declaring the Canada
late on trade and commerce in the ParsollS case~' he appeared to Temperance Act of 18785(1 valid as a prohibitory statute under the
be as concerned as the American Chief Justice John Marshall in "peace, order and good government" clause; but it held that the
maintaining national power. He lost both cases. In the five cases Ontario statute was a valid regulatory statute under the authority
in which he was counsel for parties whose cases rested on provin- of the provinces to legislate exclusively on matters of a "merely
cial power, he was successful in only one, the V OlV case.'" but he local or private nature". It said also that a provincial legislature
did not win on the point he had stressed before the Judicial Com- had "authority as plenary and as ample within the limits prescribed
mittee. On the basis of the Committee's opin ions it would appear by sect. 92 lof the B.N.A . Actl as the Imperial Parliament in the
that he had practically no influence with it. whether he argued the plenitude of its power possessed ... "." This was essentially what
Dominion or the provincial side. Yet the Privy Council was always Benjamin had argued in the Russel/ case, when he claimed that
pleased to hear his arguments, and in several cases it indirectly
"Su pra, footnote 42. 1~ ( 1883), 9 App. Cas. 117.
:s R.S .O., 1877 , c.18l. "'" Supra, foo tnote 12.
1~ Supra, footnote 13. .. Supra , footnote 34. 15 Supra, footnote 11. 1>0 Supra, footn ote 50. ~I Supra, footnote 76, at p. 132.
476 THE CANADIAN BAR REVIEW [VOL. XLV 1967J Did Judah P. Benjamin Plant the "States' Rights"? 477
the national Temperance Act was an encroachment upon this government in which they could all be represented . . . each province
"plenary and ample" provincial power.1lI retaining its independence and autonomy.
It is possible that Benjarnin's emphasis on the appropriate The Act provides that th e Dominion should have its necessary
spheres and powers of the Dominion and provincial governments powers, the opinion continues, and that "the remainder should be
in the Parson~ and Russerr cases may have later served as some- retained by the provinces for the purposes of provincial govern-
thing oC a guide to the Judicial Committee. Thirteen years after the ment", In the exercise of its powers under section 92 each province
Hodge" case was decided, in A. G. jar Onto V. A. G. jar Can." the is "as supreme as it was before the passage of the Act"." As we
Committee, speaking through Lord Watson, held that the Province Americans say of our federal system, both state and national
of Ontario could authorize the prohibition by local option of the governments are supreme in the exercise of their respective con-
ret ail sale of liquor in cities and towns, provided the provincial stitutional powers. His Lordship clearly showed an understanding
Act would not be available to communities which had adopted, or of federalism, and one has some reason to believe that Benjamin's
might later adopt, prohibition under the Canada Temperance Act. arguments, although made a decade before the Maritime Bank
His Lordship cited as an authority for the Ontario law sub-section case was decided, may have contributed to that end,
13 or 16, of section 92 of the British North America Act, which If Benjamin helped the Ju dicial Committee to a fuller appre-
sub-sections confer the power to legislate on property and civil ciation of the problem of interpreting the powers of the component
rights and on matters of merely a local or private nature, respec- units of government in the Canadian federal system, it does not
tively, These were among the grants of provincial powers upon follow that he persuaded the Committee to be overzealous in dis-
which Benjamin had relied in vain in his presentation of the Russell covering and maint aining the powers of the provinces. The Com-
case. mittee, wit h a growing awareness of the duality of federalism and
Leaving the liquor cases, we turn back to 1892 and to Maritime the knowledge that the Canadian Constitution, literally interpreted,
Bank v, Receiver-General of N.B.'" There the question was-Is a gave the Dominion Government nearly all of the power, may well
provincial government entitled, as a depositor in a bank in receiver- have become increasingly conscious of an obligation to guard the
ship, to payment in Cuil over the other depositors and simple con- rights of the provinces. In any event, Benjamin had argued for
tract creditors? The Judicial Committee's answer was Yes: that Dominion and provinces with equal zeal and ability,
government property and revenues in Canada, as in Britain, are It is, of course, hardly possible to prove that Benjamin did not
vested in the Sovereign, and that the prerogatives of the Queen sow the seed of provincial rights in the Privy Council. But the
are the same in the exercise of provincial powers as in the exercise burden of the proof should fall on those who inti mate that he did
of those of the Dominion. The object of the British North America sow the seed. Those who hold the suspicion should produce the
Act, said Lord Watson for the Privy Council:" evidence.1Pol It is possible that exhaustive research in London and
, , ' was neither la wield the provinces into one, nor to subo rdinate elsewhere might produce it, but on the basis of the present study
provincial govern ments to a central authority, but to create a federal the wri ter is of the opinion that the Benjamin influence is largely
a myth based upon two facts and a hunch. The facts are that he was
"~ I n 1883, the Parliament of Canada passed the federal Uquor License a states' rights man in America and that he was an outstanding
(McCarthy) Act, 46 Viet., c.30, a measure ap~licable to the .whole
Dominion and very si milar to the Ontario Act wh ich was upheld In the advocate and the hunch is that, considering his background and
Hodge case, SI/pra , footnote 76. In an advisory opinion, and after con- skill he must have effectively argued states' (provi ncial) rights
siderable aid from counsel, the Supreme Court of Canada, following what
appeared to be the logic of the Hodge case, declared the law unconstitu- before the Privy Council.
tional. The Privy Council. without ~iving reasons, sustai ned the Supreme
Court, Cussc ls. Digest of Supreme Court Decisions (l875~1893), p. 509.
See discussion of this leadinR case in Alexander Smith. The Commerce
Power in Canada and the United States ( 1963) , pp. 4957 .
.. Supra. footnote 34. M Ibid .. at p. 442.
~. Supra. footnote 12. 8!1 Supra, footnote 76.
[18961 A.C. 348. 11 {1892] A.C. 437 .
00The writer's efforts to obtain from authorities on Canadian history
os Ibid. , at pp. 441.442, and Rovernment leads which might uncover such evidence were singularly
unproductive.