federal election of 1878, as John A. Macdonald's Conservatives won a national victory. Schultz would thereafter identify himself as a Liberal-Conservative and a supporter of Macdonald. Manitoba's population was by this time becoming dominated by Ontario immigrants (Riel's followers having largely abandoned the area), and Schultz was no longer considered a dangerous outsider by the local power structure. In 1882, Schultz was defeated by Arthur Wellington Ross (also a Conservative), 760 votes to 720. Schultz was in poor health by this time, and many believed that he had little time left to live. Perhaps out of sympathy, John A. Macdonald appointed him to the Senate on September 23, 1882. Schultz's health subsequently recovered, and he was able to function as an active member of the Senate. He supported prohibition, and continued to defend aboriginal rights against outside incursions. Lieutenant-Governor On July 1, 1888, he resigned his Senate seat to become the Lieutenant-Governor of Manitoba. He was instructed to keep the Macdonald government updated on developments in the province, and to attempt to influence the government of Thomas Greenway on matters involving Macdonald's National Policy. He played little part in the Greenway government's anti-bilingualism legislation (which resulted in the Manitoba Schools Question), though he dutifully signed it into law on March 1, 1890, following Macdonald's orders. Schultz subsequently sought concessions for francophone schools. Late life and legacy Schultz stepped down as Lt. Governor in 1895. He traveled to Mexico in an attempt to improve his faltering health, but died there in 1896. Schultz remains were transported to Winnipeg by a special baggage car, draped in a black cloth on the Great Northern Railway. His remains were accompanied by his best friend Alfred Codd and his wife. Schultz's progress from political outsider to Lt. Governor reflects the changes which occurred in Manitoba from 1870 to 1888. Although his early demagoguery was moderated over time, it is unlikely that he could have assumed high office had it not been for the high movement of anglophone settlers from Ontario to Manitoba in the intervening years. In 1870, he was regarded as a nuisance; when he died, he was a respected citizen. Outside politics Schultz, Henry Septimus Beddome, Curtis James Bird and others were the founders of the Medical Health Board of Manitoba which was incorporated in 1871 and became the College of Physicians and Surgeons of Manitoba in 1877. Schultz was actively interested in