[Footnote a: As indicative of the progress made in the local manufacture of railway stock, it may be mentioned, on the authority of the Commissioner, that one Brisbane engineering firm has this year completed its 100th locomotive for the Department.] [Footnote b: Treasury figures. The Commissioner's figures differ somewhat from those of the Treasury. In estimating the percentage return the Railway Department takes into account only the expenditure on open lines, whilst the Treasury bases its calculations upon the expenditure on all lines, and charges the Railway Department with its proportion of loan deficiencies and flotation charges.] CHAPTER II. THE FEDERAL OUTLOOK. Proclamation of the Commonwealth.--The Referendum Vote.--Queensland's Small Majority in the Affirmative. --Representation in Federal Parliament.--The White Australia Policy.--Temporary Effect on Queensland. --An Embarrassed State Treasury.--Assistance to Sugar Industry.--Continued Protection Necessary.--Unequal Distribution of Federal Surplus Revenue.--The Transferred Properties.--Effect of Uniform Tariff.--Good Times Lessen Federal Burden on State.--The Agreement between Prime Minister and Premiers.--Better Feeling Towards Federation. --National Measures of Deakin Government. After several vain attempts on the part of Australian statesmen to bring about federation, the Commonwealth Constitution Act was adopted by the several States in 1899 and ratified by the Imperial Parliament in 1900; and Her Majesty Queen Victoria issued a proclamation, declaring that on and after 1st January, 1901, the colonies of New South Wales, Victoria, South Australia, Queensland, Tasmania, and Western Australia should be federated under the name of the Commonwealth of Australia, the several colonies being thereafter known as "States." The union took place by the freewill of all the colonies, a popular vote being taken in each. The poll was small, only 583,865 electors recording their votes, of which number 422,788 voted for federation and 161,077 against, the majority in favour being 261,711. In Queensland 38,488 voted in the affirmative and 30,996 in the negative, giving the narrow majority of 7,492, equal to only 10.78 per cent. of the total votes polled. That majority was obtained by an almost block pro-federation vote throughout the Centre and North of the colony, the majority in the Southern district, which contained about two-thirds of the population, being adverse to union. There was no objection to the abstract principle or to the wisdom of a federal union--rather the reverse; but Queensland had not been represented at any of the Conventions at which the Constitution was drafted, and no provision was made, such as was made in the case of West Australia, to meet the peculiar geographical, industrial, and financial circumstances of this State. In the absence of legislative safeguards