The only other important modification sought by Canada in the terms of the contract was the substitution of Canadian for United States terminal ports in America. Apart from the slight to Canadian interests involved in putting forward such a reason, it must be clear that the Cunard line, in which the British government did not conceal its interest, would have been benefited and not injured by the withdrawal of a line running to United States ports. Smith concluded his protest by pointing out the distinction which the Canadian people could not fail to draw in comparing Palmerston's refusal, with that of previous governments. The grants to the Cunard and Galway lines were stated to have been made in ignorance of the Canadian interests, and the inability of the government to remedy these and other evils was deplored. In the case under consideration the British government, Smith pointed out, deliberately opposed themselves to that which would have benefited Canada, and had determined that the competition of which they complained should be maintained. The protest was quite without avail. The Galway Company entered on the performance of its contract, but its service was marked with so much irregularity, that the postmaster general was compelled to cancel it. FOOTNOTES: [296] First report of select committee on packet and telegraphic contracts, May 1860 (_Br. Parl. Papers_, No. 328). [297] Report of P.M.G. of United Kingdom, 1855. [298] _Sess. Papers_, Canada, 1859, No. 26. [299] _Journals of Assembly_, 1851, p. 85. [300] Report of commissioner of public works, 1852-1853. [301] Report of P.M.G. to council, December 7, 1863 (_Sess. Papers_, 1864, No. 28). [302] Annual report of P.M.G., 1856. [303] _Br. Parl. Pap._, 1859, XXII. [304] _Br. Parl. Pap._, 1859, XXII. [305] Report of P.M.G., 1857. [306] _Sess. Papers_, Canada, 1859, No. 26 [307] First report of the select committee on packet and telegraphic contracts May 1860 (_Br. Parl. Papers_, No. 328). [308] _Sess. Papers_, Canada, 1861, No. 21. CHAPTER XVIII Canadian ocean mail service (_cont._)--Series of disasters to Allan line steamers.