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 't^i*''.-^';;VA';^ 
 
 A 
 
 Inside History 
 
 OF 
 
 
 HOW THE GOVERNMENT TREATED 
 
 THE 
 
 BANK NOTE CONTRACT, 
 
 AND 
 
 THE ENCOURAGEMENT QIVEN 
 
 TO 
 
 CANADIAN INVESTMENT. 
 
 
 ■' * I 
 
 
 > ■'! I 
 
'J / 
 
- . ■'», 
 
ADDITIONAL FACTS CONNECTED WITH THE BANK NOTE CONTRACT. 
 
 When the papers in connection with the Bank Note Engraving Contract 
 were Ijrought down, they revealed a condition of affairs bad beyond belief. 
 The public were led to believe that the tender of the British American Bank 
 Note Company for engraving was excessively high. The papers reveal the 
 startling fact that their tender, upon Bank Note engraving alone, — not- 
 withstanding all the calculations and additions made — was $18|416i88 '^^^ 
 than that of the American company ; and in another branch of engraving 
 and printing, the price of the American company is nearly FOUR TIMES 
 greater than that of the Canadian company — that is $7|332.99. ^^ against 
 $1,935.04— 'in almost INCREDIBLE FACT, for the same amount of 
 work. Add to this the five or six thousand dollars which the Queen's 
 Printer will have to pay for machinery to do the stamped envelopes, which 
 the Americans had removed from their contract, and the saving which 
 might have been effected by the Queen's Printer doing the Postal Cards 
 as well as the stamped envelopes. What then becomes of the alleged 
 large saving to the country, for which a national industry has been 
 destroyed? This engraving is the essential part of the work — the heart of 
 the whole matter. It is for this the Canadian company has invested so 
 large a Capital ; has maintained so large an establishment ; has retained 
 the services of a permanent and expensive staff of Artists for a long series 
 of years. Any apparent reduction in the American tender was made as a 
 cut rate upon the mere mechanical work of printing, work which could be 
 done by any well equipped Canadian printing house. This cut rate is 
 more than doubly met by the permission the Americans have received of 
 doing the engraving in New York. They, like the Canadian company, have 
 to retain a staff of engravers, under yearly engagements, and this contract 
 merely serves to keep them employed continuously, with no additional 
 working expenses, nor tax on their business of any kind. 
 
 There is grave doubt as to whether the whole transaction is not illegal, 
 seeing that the established practice of awarding contracts was departed from 
 in every particular. A brave show was made of calling for tenders, and 
 circulars were sent broadcast inviting them. English firms entertained 
 the proposal, xind asked if the work might be done in London. This per- 
 mission was refused, and yet it was accorded to the American firm to do 
 the work in an alien country. Why were the Americans favoured above 
 their British competitors, to say nothing of the Canadian companies ? If 
 economy was the object, and if it was intended to have the essential part 
 of the work— the engraving — done outside of the country, why not have 
 it all done outside, instead of the pretence of doing it partly here, that is, 
 the mere mechanical printing ? The only thing that has been accomplished 
 is the wanton destruction of an old-established enterprise, wanton because 
 no permanent good can result to any one, and the plea of economy is only 
 a sham. The Americans made a cut rate upon the cheapest kind of 
 machine work, and were allowed to amply make it up by the permission 
 given them of doing the essential work in New York, the part requiring 
 Capital, Talent, and an Established Business, directly contrary to the speci- 
 fications. 
 
 The fact of doing the printing in Ottawa is no guarantee of any con- 
 siderable expenditure in the country, nor of security while the engraving is 
 done in a foreign country. Even for bank note paper the American firm 
 is awarded the same price for which the Canadian company offered to 
 supply it, so the country saves nothing on this item, although it is about 
 one-fourth the whole value of the bank note ivork. The American company, 
 made a cut rate to gain the field. The minister v inlntpd the soecifications 
 
A STATEMENT OF THE TREATMENT ACCORDED TO THE 
 BRITISH AMERICAN BANK NOTE COMPANY BY THE 
 MINISTER OF FINANCE. HON. W. S. FIELDING. 
 
 Y 
 
 |HE history of the first large contract entered into by Hon. 
 W. S. Fielding after his translation from the Provincial to 
 the Federal Cabinet, that by which it is intended to give to 
 aliens instead of to Canadian citizens the duty of producing Canada's 
 currency, is not only instructive, but is of vital interest to all classes 
 of the community. Nothing can be of greater importance to the 
 Capitalist, the Banker and the Merchant, than that the current 
 money of the country should be undoubtedly genuine, and that 
 there should be no possibility of counterfeiting. It is of vital im- 
 portance to the Contractor that the secrecy of a tender submitted 
 by him, under seal, to a Minister of the Crown, should be most 
 strictly observed, but should the course which has been followed by 
 Hon. Mr. Fielding in this case be generally adopted, contractors 
 will find that the results of their labor in preparing tenders are 
 merely supplying Ministers gratuitously with data on which to nego- 
 tiate with outside parties for a lower price. 
 
 To the skilled artisan it is necessary that as much high-class, and 
 therefore well paid, work as possible should be produced in Canada, 
 but the result of this contract will be to allow a large amount of 
 skilled labor to be done at Canada's expense, in the neighboring 
 Republic. 
 
 To every Canadian, it must be clear that our public men, espe- 
 cially those in positions of trust, should, like Caesar's wife, be above 
 suspicion ; that their every act should be capable of bearing the 
 closest inspection; that those who have to repose trust in them, 
 should in every case find that trust sacredly observed, and that 
 Canadian interests of Capital and Labor, whether public or private,, 
 should be defended in every way possible. 
 
 Unhappily, Hon. W. S. Fielding does not appear to take this 
 view of the case in the matter of the Bank Note Contract. To 
 show how this has been done, it is necessary to give a r^sumd of 
 the facts since the accession of the Liberal Government to power 
 in July last. 
 
 When Mr. Fielding became Minister of Finance, he found exist- 
 ing a contract between the Crown, represented by his Department, 
 and the British American Bank Note Company, (of which Mr. G. B. 
 Burland is the president) for the printing of the Dominion bills, 
 stamps, etc. This particular contract had been in force for some 
 years, and was the last of a series of contracts for this class of work 
 extending over a period of 35 years. During all this time the Com- 
 pany have the satisfaction of stating that no accident or error of any 
 kind has occurred, and the work has always been done at least 30- 
 per cent, less than current American prices. 
 
— a — 
 
 One clause in the contract stipulated that it could be terminated 
 by giving six months' notice, and on September a6th, 1896, Hon. 
 W. S. Fielding gave legal notice to the British American Bank Note 
 Company of the closing of their contract at the expiration of the 
 six months' term. This notice was duly followed by an advertise- 
 ment inviting tenders for November 23rd last. 
 
 Three or four Canadian Syndicates examined the specifications 
 and the nature of he work to be done, but owing to the fact that 
 the Government would not allow it to be done in Montreal or 
 Toronto, and finding the capital required under such circumstances 
 too large, the responsibility involved too heavy, and the risk attend- 
 ant on it so great, they all declined to submit tenders. 
 
 In this way the Minister succeeded in putting a veto on the 
 aspirations of Canadian capitalists, but it is now apparent that he was 
 quite willing to allow the engraving to be done in New York by his 
 American friends and, according to the Toronto " Globe," promised 
 them the privilege of a second term, if they desired it. The result 
 of this discrimination is made manifest by the fact that it is stated 
 that only one Canadian Tender was submitted ; as a consequence, 
 when November 23rd was over, only one tender had been sent in, 
 that of the British American Bank Note Company. Was this tender 
 opened, and was it at this stage the American Bank Note Company 
 of New York were invited to tender ? At any rate, as a result the 
 American Company, we are informed, were allowed to change the 
 specifications and duly sent in a tender to suit their own wants. 
 . No further action was taken by the Canadian Company till 
 one of two things would happen, either they would be notified 
 of the acceptance of their tender, or if it were not satisfactory, new 
 tenders would be asked for. This, of course, is the procedure 
 always followed in bona fide tendering. 
 
 No communication of any kind was had by the Government 
 with the Canadian Company until two days after the Minister had 
 the Order-in-Council passed on the 6th January, 1897, with only 
 four members present, and in great haste had it signed by the 
 Governor General ; then on the 8th of January, he was magnani- 
 mous enough to send the following letter to the Company: — 
 
 Sir, Ottawa, January 8th, 1897. 
 
 Referring to your letter of the 21st November last, submitting a 
 tender for engraving and a cheque for $5,000, as a deposit, in compli- 
 ance with the terms and conditions set forth in Circular dated 19th 
 October, 1896, I have the honor to state that I regret that I am unable 
 to accept the offer made in such tender, as the Government have a much 
 more advantageous offer from another Company. I have accordingly 
 given instructions to have the amount of your deposit returned to you. 
 
 I have the honor to be, sir, 
 
 Your obedient servant, 
 G.B. Borland, Esq., /V<?57. (Signed) W. S. FIELDING, 
 
 B. A. Bk. Note Co. Minister of Finance. 
 
t 
 
 ' 
 
 — 3 — 
 
 The cheque, however, was not returned till the i8th of January. 
 
 After receiving the notice above referred to, and the returned 
 cheque, the President of the Canadian firm waited on the Deputy 
 Minister of Finance, and requested an interview with the Minister 
 to discuss the matter, and see if some arrangement could be made. 
 At that time, Mr. Burland was ignorant of the fact that the American 
 Company's tender had been received, or that the Minister had 
 adopted a course the effect of which would destroy the capital of the 
 British American Bank Note Company. 
 
 Hon. W. S. Fielding was out of town, but an interview was ar- 
 ranged for the following week. Before this interview was had, 
 however, Mr. Burland was surprised to find in the "Globe" and 
 in a New York paper, the statement that the contract had been 
 given to the American Bank Note Company. 
 
 By the above act, the most glaring injustice was done the Can- 
 adian firm by the Minister, as can be seen from the fact, that from 
 the time of the tender, November 23rd to January 8th, no com- 
 munication of any kind was held with them on the matter of the 
 tender, although constant communication and correspondence was 
 maintained with the New York firm, for the purpose of changing the 
 specifications, and making special conditions and terms by which they 
 would do the work, and allowing some of the items to be omitted from 
 the specifications altogether, in spite of the tact that the specification 
 contained a proviso to the effect that the lowest or any tender was not 
 necessarily accepted, under which the Minister had power to enquire 
 of Mr. Burland, if there were any error in his tender, any mistake io 
 calculation or addition, as might easily be the case. No interview 
 was had with the Canadian Company whatever until January 23rd, 
 after their cheque on deposit was returned, accompanied by a merely 
 formal notice that there was a lower tender, giving no opporturyty 
 to the Company to make any correction for the sake of maintaining 
 their capital, and retaining their staff of Canadian labor, in face of 
 the alien labor law of the United States. (See letter, page 9.) This 
 narrative clearly proves that Mr. Burland's Company was not fairly 
 treated, and that there was no desire on the part of the Minister to 
 do him an act of simple justice. Were more proof needed, plenty 
 is forthcoming. The actions of Mr. Fielding would indicate that he 
 had determined to discourage Canadian investment. At the above 
 interview Mr. Fielding expressed the idea that faith was to be kept 
 with the lowest tenderer. Was it not equally necessary to keep faith 
 with invested capital ? Such faith was not kept when he allowed the 
 specifications to be changed in favor of a foreign corporation with- 
 out calling for new tenders upon the altered specifications. Was 
 this action not dishonourable in a Minister of the Crown ? 
 
 Tenders were to be in by noon of November 23rd, and it was 
 stated by more than one Minister that only the British American 
 
— 4 — 
 
 Bank Note Company had tendered. This being so, the statement 
 made in the notice returning the deposit cheque that " there was a 
 . er tender " was, to say the least, misleading. 
 
 If the tender submitted at that date did not meet the Finance 
 Minister's views, it was his plain duty, in justice to all parties, to call 
 for fresh tenders, and not to open private negotiations with any third 
 party, on condition that they would make terms satisfactory to him. 
 
 At what precise time the negotiations with the American Com- 
 pany were opened, remains to be ascertained, but it is probable that 
 they were opened from Ottawa. Be that as it may, by the New Year 
 matters were well under weigh, though not sufficiently settled for the 
 American firm to have definitely tendered, and on January 6th, 
 at a Council Meeting, at which only four Ministers, being a bare 
 quorum, were present, the Minister had an Order-in-Council passed. 
 
 It ' now worth while following the steps by which Mr. Fielding 
 proceeded : On the 7th of January a report was submitted to the 
 Committee of the Privy Council, and approved of by His Excel- 
 lency in due course, from which the following is an extract . — 
 
 "On a report dated 6th January, 1897, the Minister of Finance 
 stated that under authority of an Order-in-Council of 14th Septem- 
 ber, 1896, notice was given on 26th September, 1896, that the 
 present contract between the British American Bank Note Company 
 and the Government for the engraving, etc., of Dominion Notes, 
 Postal and Inland Revenue Stamps, will be terminated and put an 
 end to at the expiry of the fixed period of five years therein men- 
 tioned, the contract having gone into force on the 23rd of April, 
 1892, and by the terms thereof was to continue for a fixed period of 
 five years from that date." 
 
 The Minister further states that under the above cited Order-in- 
 Council, he called for tenders for engraving, printing, furnishing and 
 delivering to the Government of Dominion Notes, Postage Stamps, 
 Inland and Revenue Stamps, etc. Such tenders to be received by 
 the Minister of Finance, at the Department of Finance, Ottawa, up 
 to 12 noon, Monday, 23rd November, 1896. 
 
 In the terms and conditions of such tender it was specified that 
 the contract to be entered into was for a fixed period of five years 
 and three months, dating from July ist, 1897, and in his communi- 
 cation he, the Minister, recommended that the Order-in-Council of 
 14th September, 1896, be amended so as to authorize him to call 
 for tenders for a term not exceeding the said five years and three 
 months, instead of five years mentioned in Order. The three months 
 was no doubt intended to be from April to July, as the Canadian 
 Company's contract expired on the former date ; now they are stuck on 
 the tail end of a contract to make up for the blunder of the Minister. 
 
 The Minister further stated that in response to such call three 
 tenders were submitted, but one of such tenders did not conform 
 
 
! 
 
 » 
 
 k 
 
 with the part of the terms and conditions which require a deposit of 
 $5,000 with tender, and consequently this tender was not taken into 
 consideration ; the other tenderers, the British American Bank Note 
 Company and the American Bank Note Company made the neces- 
 sary deposit, and on examination and extension of the prices it was 
 found that the tender of the American Bank Note Company was the 
 lowest tender, the specifications having been changed by the Amer- 
 ican Company to enable them to make such a low tender, which 
 cl .ge the Minister subsequently accepted without any notice to 
 the Canadian Company, or any opportunity being afforded them to 
 tender under the same conditions. It was, however, pointed out to 
 the Minister that the stamped envelopes might be withdrawn from 
 the new contract, and the Minister found on enquiring of the Queen's 
 Printer that the Government could do the work themselves. What 
 a pity he did not ask if he could do the Post Cards ! The reason 
 will be found further on. 
 
 The tender of the American Company asked to change the speci- 
 fications, and made the following condition : — 
 
 " The American Bank Note Company understands and makes it 
 a part of this tender that it be not required by the specification 
 hereto attached to manufacture bank note and other papers, steel 
 rolls, steel plates, the dies and other tools of the trade, inks, colors, 
 etc., in the City of Ottawa, but that such supplies necessary to the 
 faithful fulfillment of the contract may be obtained elsewhere." 
 
 Correspondence being had with the American Company, the 
 Company consented to the withdrawal of the stamped envelopes from 
 the contract. " The Company also submitted rates for the stamps in 
 question, if required in large quantities, and explanations were made 
 in reference to the condition above quoted, which are satisfactory to 
 the Minister of Finance, in view of the large saving effected if the 
 offer of the Company is accepted." 
 
 "The Minister therefore recommends, in view of such saving, 
 that he be authorized to accept the tender of the American Com- 
 pany, provided that the DETAILS of the contract can be arranged 
 with the Company to his SATISFACTION." 
 
 The Order-in-Council quoted from will repay analysis ; it continues 
 to rehearse the Finance Minister's Report, stating that three tenders 
 had been sent in, one of which was irregular and therefore out of 
 account. A second, the British American Bank Note Company's 
 tender ; and the third, that of the American Bank Note Company, 
 the last named being the lowest. 
 
 It is remarkable that while the Minister implies in his Report 
 that ^\\ mese tenders were in his Department by noon of 23rd 
 November last, he does not say so, and it is stated on very excellent 
 authority, that when the time for receiving tenders expired, there was 
 only one tender, that of Mr. Burland's Company, in the Department. 
 
— 6 — 
 
 Having stated that the acceptance of the American Bank Note 
 Company's tender would effect a saving to the country, Mr. Field- 
 ing's Report continues : "It was, how^ever, pointed out to the 
 Minister that the stamped envelopes might be withdrawn from the 
 contract, and the Minister found on enquiry of the Queen's Printer 
 that the Government could do the work themselves." Further on 
 this Report says : "Correspondence being had with the American 
 Company, the Company consented to the withdrawal of the stamped 
 envelopes from the contract," but the Canadian Company was not 
 honored with any correspondence on the subject. 
 
 Stamped envelopes were taken out of the contract because they 
 were the least profitable items in ii, involving as it would, the 
 purchase of special machinery by the American Company to the 
 amount of $5,000 or $6,000. The profit on the work done, after 
 paying the wages and material according to the quantity used for 
 ten years past, would not pay for the machines in a hundred years. 
 The saving therefore effected the American Company by this con- 
 cession on the part of our astute Miniver of Finance is evident, and 
 the Department of Public Printing has ordered the machinery to be 
 paid for by the country, at full price, although the Canadian Company 
 would have been pleased to sell the necessary machines for the pur- 
 pose at twenty-five cents on the dollar, having no further use for them. 
 Does this look like an endeavor to serve the country, or does it look 
 like "business is business?" Is it any wonder that the contract was 
 to be awarded on condition that the details be arranged to the satis- 
 faction of the Minister of Finance ! 
 
 Take next the case of Postal Cards : If the Minister desired 
 mere economy, or if he desired to have the Queen's Printer do any 
 part of the work, for economy's sake, this was the work to be given 
 to him. When wages and material were provided for, and engrav- 
 ing to the amount of $100 done, no further cost would be entailed 
 to the Queen's Printer. The Queen's Printer had all the machinery 
 required, and could adequately do that part of the work, and being 
 under no expense for rent, interest, management or machinery, if it 
 were economy the Minister had in view, here was an opportunity 
 for a saving of $100,000 during the term of contract. There is no 
 doubt about these facts. 
 
 But " Economy to the winds " Business was Business, when 
 the Finance Minister could favor his American friends and destroy 
 an Institution established by Canadian enterprise, and having the 
 full confidence of the Banking Institutions of the country and the 
 Government for over 35 years. 
 
 No ! No ! Economy was not his object, or such a glaring blunder 
 could not have been made; and the same plea of "Business is 
 Business," if persisted in by our Dominion Finance Minister, will 
 
 
 % 
 
^ 
 
 — 7 — 
 
 bring Mr. Laurier's Government to the same fate accorded Mr. Mer- 
 cier's Government in the Province of Quebec by an outraged people. 
 
 The Report admits : '■^ It was pointed out to the Minister." Then 
 he says that " after correspondence the Company consented to the 
 withdrawal of the stamped envelopes from the contract." 
 
 Who was it pointed out that the stamped envelopes might be 
 withdrawn from the contract, and not the Post Cards, the simplest 
 part of the contract ? The only persons sufficiently interested to do 
 so were the American Company. It was not likely that any employee 
 of the Finance Department would do such a thing, besides only the 
 chief confidential employees of the Department knew the terms and 
 conditions. Clearly the Company or its Agent made the suggestion, 
 and the Minister was pleased to accept it to show his desire to 
 economise ! ! 
 
 The gravest part of the business is to follow. The last two 
 paragraphs are as follows : 
 
 " The American Bank Note Company understands and makes it 
 a part of this tender that it is not required by the specification hereto 
 attached, to manufacture Bdnk Note or other papers, steel rolls, 
 steel plates, the dies and other tools of the trade, inks, colors, etc., 
 in the City of Ottawa, but that such supplies necessary to the faithful 
 fulfillment of the contract may be obtained elsewhere." 
 
 "The Minister therefore recorrimended, in view of such saving, 
 that he be authorized to accept the tender of th<i American Bank 
 Note Company, provided that the details of trie contract can be ar- 
 ranged with the Company to his satisfaction" 
 
 Hith^tto it has been the theory that the details of a contract 
 were to b6 found in the Schedule of terms and conditions supplied 
 each tenderer. Hon. W. S. Fielding desires to make an innovation 
 as far as contracts with the Dominion Government are concerned. 
 Henceforth, the invitation will be, " Tenderers submit your price, 
 the detai/s of the contract can be arranged to the mutual satisfaction 
 of the Minister and yourselves afterwards." 
 
 Not only is the action recommended a public disgrace, but it is 
 dishonorable, unjust and dangerous. It is disgraceful, because the 
 words " Bank Note or other papers, inks, colors, etc., etc.," are 
 merely a blind intended to cover the permission given aliens to 
 engrave steel plates of Canada's paper money, make the steel rolls on 
 which the impressions are taken, and engrave the steel dies in a 
 foreign country, by which Canada's paper mint is relegated to the 
 will of a foreign syndicate on a foreign soil, although the Canadian 
 syndicates who des'red to tender were denied the right to do the 
 work either in Montreal or Toronto. 
 
 Not only has Mr. Fielding's action sold Canada's birthright, 
 recklessly injured a large home industry, thrown loo Canadian arti- 
 zans out of employment, destroyed a large amount of Canadis^n 
 capital — it has broken the spirit, if not the letter of the law. // has 
 
-8 — 
 
 violated the essential elements of all fair tendering, and is on that ac- 
 count disgraceful. 
 
 It was decided by the Canadian Government, much more than 
 a quarter of a century ago, as a question of principle, that the en- 
 graving and printing of Government Notes and Stamps should be 
 no longer given out to a contractor in a foreign country, but done in 
 Canada, under immediate departmental supervision and control. 
 
 It must be considered that the making of Government Notes and 
 Stamps, with all that pertains to it, is unlike anything else, except 
 dies for the coinage of the gold and silver money of the country. The 
 dies or plates from which the notes or stamps are produced are very 
 small things, and can be easily duplicated and carried anywhere with 
 the greatest ease. Think of the Government of England, or the 
 Bank of England, or the United States Government giving a contract 
 for the engraving of their Notes, Dies and Stamps to a foreign con- 
 tractor, to be done out of the country, for the reason of apparently 
 lower prices — and these prices on paper only ! ! 
 
 The main consideration is not so much a saving in the art of 
 making, but obtaining the most absolute protection possible. If the 
 Canadian Government were not satisfied with the present or any 
 Canadian contract, it was the duty of the Finance Minister to have 
 had all the other work done at the Government Bureau, as well as 
 the stamped envelopes, instead of accepting the tender of a foreign 
 company to do merely the printing, or least expensive part of the 
 work, in Canada. 
 
 While the Minister was carrying on a correspondence with the 
 American firm, and receiving pointers as to the alteration of the 
 terms and conditions, so as to make them more favorable to the 
 contractors, the scant courtesy of merely a notice by letter and one 
 short interview, in which the Minister had nothing to consider but 
 the lowest tender, were all that were accorded the Canadian firm 
 during the two months. (See letter after interview, page ii.) 
 
 // was vain for the latter to ask another interview; it was vain 
 for them to write; it was vain for them even to offer to do this work 
 for the lowest figures of the American tender. It was nothing to the 
 Honorable the Minister that half a million of Canadian capital was 
 being destroyed in order to give a contract to a syndicate, containing 
 not one Canadian subject, owning not one square yard of Canadian 
 soil, with not one cent of Canadian capital, and no property in Canada 
 to be security for their bona fides. It was nothing to him that lOO 
 Canadian artizans would be thrown out of work. BUSINESS 
 WAS BUSINESS I and the Canadian company was not in it — 
 their tender was too high. 
 
 From November 23rd. to January 8th., not one word was vouch- 
 safed the Canadian firm, though on January 6th., the Finance 
 Minister reported to the Council that he had been in correspondence 
 with the American firm. 
 
 I 
 
 k 
 
I 
 
 * 
 
 J« 
 
 On January 7th., "Mr. Fielding received His Excellency's license" 
 to arrange the details of the contract to his satisfaction, and then it 
 was safe to let Mr. Burland, as President of the British American 
 Bank Note Company know. Accordingly, on January 8th., a letter 
 was sent acknowledging the receipt of the Canadian tender and 
 saying, "I have the honor to state that I regret that I am unable to 
 accept the offer made in such tender, as the Government have 
 received a much more advantageous offer from another Company." 
 
 This Order-in-Council was passed at a meeting where there were 
 only four members present, three of whom doubtless were not 
 particularly interested and simply adopted the Minister's recommen- 
 dation "in view of the saving" in figures only, without considering 
 the injurious nature of their action. 
 
 Hon. Wilfrid Laurier, the Prime Minister, the President of the 
 Council, the man above all others concerned, and chiefly responsible, 
 stated that Mr. Fielding had not spoken to him on the subject, and 
 pledged himself that all the work would be done in the Dominion. 
 
 Hon. Sir Richard Cartwright, although a member of the Treasury 
 Board, stated that he had not been consulted, nor had the subject 
 been submitted to the Treasury Board. Sir Richard was not con- 
 sulted, yet of all the Ministers he is the one in whose shrewdness 
 as a financier, in whose integrity as a man of business, the Canadian 
 public would have most faith. 
 
 In order to remedy this state of affairs and to supply the Minis- 
 ters with full information upon which they could reconsider the 
 hasty Order-in-Council, Mr. Burland sent the petition appended 
 hereto. (Page 11.) 
 
 The following letter was sent Mr. Fielding and other members, 
 after the notice in the Globe : — 
 
 Hon. Mr. Fielding, Montreal, Jany. 23rd, 1897. 
 
 Dear Sir :— In reference to the tender of the British American Bank Note 
 Company, we would ask your kind attention to the iivjustice that would be done to 
 the capital invested in the country, if the work of the country is griven to foreign- 
 ers, and we ask that new tenders be taken for the following reasons :— 
 
 Ist.— That ample capital has been invested at the request of the Government 
 to satisfactorily prepare all the work required by the Government. 
 
 2nd.— That contract is about to be awarded in violation of the terms and 
 conditions of the specification. 
 
 3rd.— That no notice wan given that foreign tenders would have privileges not 
 embodied in the specification. 
 
 4th.— That the terms of the specification would be violated by giving the 
 privilege to foreign competitors for a double period without equal rights to the 
 Jocal Company. 
 
 5th.— That the greatest injustice would be done local capital by allowing free 
 /duty to such foreign competitors without any allowance, in lieu thereof, to the 
 local Company. 
 
 6th.— That all persons tendering against invested capital should show their 
 ■ability by having suitable premises and machinery with which to do the work ; 
 tenders of all parties would then be on equal terms. 
 
 For the foregoing reasons and many others we respectfully ask for a recon 
 «ideratlon of the subject. 
 
 We have the honor to be, Sir, 
 
 Your obedient servants, 
 
 G. B. BURLAND, Pres't. 
 
lO — 
 
 This letter was supplemented by another two day's later, which 
 is as follows : — 
 
 British Ambkican Bank Note Company, 
 
 Ottawa, Jany. 2ath, ISSfJ. 
 Hon. Mr. Fielding, 
 
 Dear Sir :— We have to thank you for the time and attention you have given 
 us with reference to the contract intended to be given to foreigners, having no 
 ' claims or interest whatever in our country, save a strong desire to get possession, 
 at any price, of the Bank Note business of the Dominion. 
 
 The British American Bank Note Company, with the assistance of the Gov- 
 ernment, was established to do this work in Canada. Large capital was invested 
 by Its citizens and the best of protection afforded, and for years past I make bold to 
 say that the Finance Department and the Banks of the Dominion have had the 
 Note circulation of the country at least thirty per cent, less than the current rate 
 for such work from New York. 
 
 Our Capital now stands in great danger, not from competition with citizens of 
 Canada and their Capital, but from one of the largest monopolies of the United 
 States, having no interest in the Dominion, other than the purpose of securing its 
 work and obtaining sole possession of the field, with the ultimate result of being 
 able to charge any price they may think proper for this class of work, as they did 
 in former years. 
 
 In order to avoid such a serious blow to the commercial interests of the coun- 
 try, and to protiCct the large CapitAl already invested, we, the British American 
 Bank Note Company, are prepared to accept the terms of the tender submitted by 
 the American Note Company, and preserve, if possible, the business of the Domin- 
 ion, that has been performed by us in a satisfactory manner, for the last thirty -five 
 years. 
 
 We are, however, perfectly satisfied that a closer examination of the difference 
 in price that appears on the surface of the tenders, if the quality of material is 
 taken into account, would reduce that difference to a minimum. 
 We have the honor to be. Sir, 
 
 Copy to Hon. Mr. Laurier. 
 
 Your obedient servants, 
 
 G. B. BURLAND, Pres't. 
 
 I 
 
 On the 37th January, the following letter was sent to all the 
 Ministers : — 
 
 British American Bank Note Company, 
 
 Ottawa, Jany. 27th, 1897. 
 
 Dear Sir :— We fear that you and other Members of the Cabinet have been so 
 busy that the following clause of the specification, on which we have tendered, ha» 
 been overlooked in the action the Minister of Finance feels disposed to take. If no 
 special favors are to be granted foreigners to destroy the business already estab- 
 lished, we specially ask that you will look into the matter and see how the condi- 
 tions are to be fulfilled before a final decision is reached. 
 
 "All work under the contract shall be done at the City of Ottawa, in such 
 building or buildings as are approved of by t^e Government of Canada, such build- 
 ing or buildings to be fire-proof and to contain all necessary fire-proof vaults to 
 ensure the safety of the work." 
 
 "No contract shall be entered into with any tenderer until he has satisfied the 
 said Government of Cap;:^a that he has or will have by the time he begins work 
 under the contract, a proper building or buildings in Ottawa, in which to carry o& 
 the work under the contract." 
 
 We have the honoi to be, Sir, 
 
 Your obedient servants, 
 I : G. B. BURLAND, Pres't. 
 
■II- 
 
 I 1 
 
 « 
 
 To His Excellency the Right Honorable the Earl of Aberdeen, 
 Bovernor General of Canada in Council. 
 
 The humble petition of the British American Bank 
 
 Note Company, a body corporate, incorporated under 
 
 the Laws of Canada, and having its Head Office at 
 
 the City of Ottawa, 
 
 HUMBLY SHEWETH: 
 
 That for upwards of thirty-five years, your Petitioners have done 
 and performed for the Government of Canada all the work connected 
 with the engraving and printing of Bank Notes, Post Cards and 
 Postal and Inland Revenue Stamps and Supplies. 
 
 That all this work, which is of a very private and special character, 
 and in substance is the work of making paper money, has been per- 
 formed by your Petitioners to the entire satisfaction of the various 
 Ministers and other Officers of the Government of Canada who from 
 time to time have had the control and supervision of the same, and 
 without any duplication, loss or difficulty occurring in connection 
 therewith. 
 
 That recently tenders were called for, for engraving Dominion 
 Notes, Post Cards and Postal and Inland Revenue Supplies. 
 
 That the notice calling for such tenders was a printed one, and 
 comprised specifications and essential terms and conditions of the 
 proposed contract which any tenderer would have to execute if his 
 tender were accepted. 
 
 That Your Petitioners understand that there were only two 
 tenders put in, one by Your Petitioners and the other by the Ameri- 
 can Bank Note Company, a foreign corporation, having^ all its 
 property and business connections in the United States. 
 
 That Your Petitioners also understand that the tender of the 
 American Bank Note Company was apparently a lower tender than 
 Your Petitioners, and that it is contemplated to award the contract 
 to the lowest tender. 
 
 That Your Petitioners tender was based on the conditions of the 
 contract, and on the quality of the work that it has been in the habit 
 of executing for. the Government of Canada. 
 
 That all Your Petitioners work is done here at the said City of 
 Ottawa, by Canadian artists and artizans employed here in a special 
 building erected here for that specific purpose, and to the satisfaction 
 of the Government of Canada. 
 
 That the Capital employed in this purely Canadian business and 
 enterprise is upwards of $400,000. 
 
 That Your Petitioners have been given to understand that it is 
 contemplated not to insist upon the condition contained in the 
 printed form of tender requiring all work under the contract to be 
 
13 — 
 
 done here at the City of Ottawa, in a building approved by the 
 Government of Canada. 
 
 That Your Petitioners are also informed that it is contemplated 
 to allow the dies, rolls and plates used in connection with this work, 
 to be brought into Canada free of duty. The value of the dies, 
 rolls and plates belonging to Your Petitioners and used by them in 
 carrying out the present contract, exceeds the sum of $50,000. 
 
 That if the American Bank Note Company is awarded the new 
 contract, and if it uses the Inks for printing Bank Notes, and the 
 paper which it usually uses for such work in the United States, the 
 difference in the price of material now supplied by Your Petitioners 
 and what would be supplied by the American Bank Note Company 
 
 would be as follows : — 
 
 Per aanum. 
 
 One Dollar Notes . 450,000 Sheets $4,600. 
 
 Two and Four Dollar Notes .... 129,000 " 4,616. 
 
 Postal Cards 27,000,000 Cards 6,480. 
 
 Per Annum . . . $16,406. 
 Amounting in five years to . . . . $77,475. 
 
 The above figures show clearly that the apparent cheapness of 
 the American Bank Note Company is only in figures, unless the 
 Government insists on the strict fulfillment of the conditions of the 
 tender, and unless special privileges as to free importation, duties, 
 &c., are not allowed to the American Bank Note Company. 
 
 The following charges will show the difference between the 
 current New York rates for Bank Notes and the Canadian rates for 
 same : — 
 
 New York rates— 1000 Sheets $1 Notes $ 96.00 
 
 Proportion of Engraving 20.00 
 
 Add Duty and Freight, 40 per cent 46.00 
 
 Cost per 1000 Sheets from New York $161.00 
 
 The cost of the same work delivered to the Govern- 
 ment by Your Petitioners is per 1000 Sheets . . $ 91.31 
 
 That Your Petitioners being desirous of stopping a complete 
 destruction of their property, and of avoiding the necessity of dis- 
 charging a large number of skilled Canadian artists and mechanics, 
 and of preventing this foreign corporation, which has practically a 
 monopoly of the Bank Note business of the United States, from 
 coming into Canada and obtaining a monopoly here, has offered to 
 accept the contract on the terms of the tender put in by the said 
 American Bank Note Company, and accordingly on the 25th day 
 of January, 1897, Your Petitioners addressed the letter to the Honor- 
 able the Minister of Finance, a copy of which is annexed to this 
 Petition. (See letter of the 25th.) 
 
 That having been given to understand that the whole question of 
 the above work is now under the consideration of Your Excellency 
 
—la- 
 in Council, and having regard to the facts and circumstances above 
 stated, Your Petitioners humbly pray that the said tenders for the 
 said work be reconsidered, and that Your Petitioners be awarded the 
 contract on the terms and conditions offered in the tender submitted 
 by the American Bank Note Company. 
 
 And, as in duty bound, Your Petitioners will ever Pray. 
 
 The British American Bank Note Company. 
 
 (Signed) G. B. BURLAND, 
 Ottawa, asth January, 1897. President. 
 
 The two following letters merit attention : — 
 
 The Honorable Wilfrrd Lauribr. Ottawa, Foby. 6th, 1897. 
 
 Premier of Canada, Ottawa. 
 
 Honorable and Dear Sir:— Before final Judgment ia passed by you on our 
 national enterprise, might I ask you to spare one half hour's time to visit the estab- 
 lishment and fully understand from observation, the modes and methods of pro- 
 ducing Bank Note work, the information thus obtained from such observation, we 
 are fully satisfied, will enable you to overcome all erroneous statements on the sub- 
 ject, and enable you more fully to see the benefit to be derived by maintaining our 
 institution in this country, in preference to handing it over to foreigners, with such 
 an alien Labor Law against all hope of our people being able to gain employment 
 out of the country. It will also enable you to more fully understand the terms 
 offered by the American, and what terms are to be arranged with them. So far as 
 we can see, the conditions to be allowed the American makes null and void the 
 specifications we have tendered on, and we do feel that notwithstanding any errors 
 of judgment, good faith is to be kept with them, it also ought to be kept with us. 
 
 Feeling that you are very busy at present, and that I am still in the doctor's 
 hands, Friday and Saturday next, or the early part of the following week, might 
 perhaps be convenient. 
 
 I have the honor to be. Sir, 
 
 Your obedient servant, 
 
 G. B. BURLAND, Prest. 
 
 The following letter was sent to the Postmaster General : — 
 
 The Honorable W. Mclouk. Ottawa, Feby. 6th, 1897. 
 
 Postmaster General, Ottawa. 
 
 Honorable and Dear Sir :— Your last few kind words spoken to me wore full of 
 meaning, in which you mentioned that the present Government had nothing to do 
 with the past, but that the future was to make their record. I would therefore ask of 
 you from your well-known high standard of justice and desire to benefit the country, 
 that you would spare us about half an hour of your valuable time to visit the 
 establishment and see the mode and operations, and terras used in doing Bank 
 Note work. 
 
 We know that there have been erroneous views with reference to this work, 
 and that we have been placed at a great disadvantage owing to the fact of the 
 lowest tender being considered the cheapest work. The information to be gained 
 by personal observation will fully decide whether the best interests of the country 
 will be served by handing it over to foreigners, with such an alien labor law against 
 all hope of our people being able to gain employment out of the country. Had we 
 been aware, or received any information that the Americans were to be allowed 
 certain privileges and conditions, our mode of tendering would have been on equal 
 terms. 
 
 We will be most happy to wait on you at any time you can spare a few min- 
 utes, as above mentioned, as we have much greater faith in proper remedies being 
 applied at the present critical time than a funeral operation after death. 
 
 Feeling Ihat you are very busy at present, and that I am still in the doctor's 
 hands, Friday and Saturday next, or the early part of the following week, might 
 perhaps be convenient. 
 
 I have the honor to be, Sir, 
 
 Your obedient servant. 
 
 G. B. BURLAND, Prest. 
 
— 14— 
 
 PUBLIC OPINION. 
 
 ^«»- 
 
 BANK NOTE CONTRACT. 
 "0)sepvep" Dtsousses Some New Points of the Situation. 
 
 Editor Journal : An important Htatement) wliioh constltutea a new departure, 
 liafl been published as a rumor to tlie effect that an Order-in-Counoil has been passed, 
 which allows the American Banlc Note Co. of New York, tr import among its sup- 
 plieH such an paper, inlcm, colon, etc., "steel rolls, steel plates, the dies and other 
 tools of the trade," as a condition of itH contract with the government of Canada. 
 "Murder will out." And this statement may be accepted as beyond doubt true, for 
 the plain reason that the New York Engraving Co. could not undertake the contract 
 on any other terms by July next. Yet the printed speciflcations which I have seen 
 since my lust letter, define that 
 
 " All work under the contract shall be done at the City of Ottawa, in such 
 building or buildings as are approved by the government of Canada, such building 
 to be flre-proof, with flre-proof vaults. No contract shall bo entered into with any 
 tenderer until he has satisfied the said government of Canada that he has or will 
 have by the time he begins work under the contract a proper building or buildings 
 in Ottawa in which to carry on the work under the contract." 
 
 The meaning of all this is very plain, and does not admit of any doubtful in- 
 terpretation. "All work" must b'e done in Ottawa; and that in "a building or 
 buildings " in Ottawa of the kind described. 
 
 At present there is no such building in the city, except that in the occupation 
 of the British American Bank Note Co., and it therefore follows that the contract 
 with the big and enterprising New York company cannot be signed for a while. 
 The New York company cannot, for the present at least, repeat its feat of Aaron's 
 rod, and swallow up the Canadian company. A good deal will come and go be- 
 tween this and that. 
 
 Consider further the terms of the extraordinary Order-in-Council referred to, 
 by the light of the specifications I have quoted, in respect to the imperative condi- 
 tion that " all work " shall be done in Ottawa. The Order says that the New York 
 company may import along with its inks, papers and colors, its "steel rolls, steel 
 plates, the dies and other tools of the trade." That is to say all the designing and 
 the engraving, and all the materials and the applioances which go to make up a 
 bank note, leaving the impressions from the plates alone to be done in Ottawa ! 
 We have here the shell without the oyster, with a vengeance. 
 
 A building such as described in the specifications quoted might be erected at a 
 cost all the way from $15,000 to $40,000 in Ottawa. But this would take the time of 
 some months. The other described materials necessary for the printing of a bank 
 note, could not be produced in so short a time. But the mere printing, when these 
 are in possession, might be done in any shed or garret in any part of the continent, 
 and this is all the work which the New York company at the beginning, at least, 
 could do in Ottawa. The capital, moreover, necessary to produce the engraving 
 plant, would be far greater than that required to erect the building. A large part 
 of the half million of capital of the British American Bank Note Co., is Invested in 
 such material. How ingenious then to classify it with ink, paper and colors? But 
 is not this an attempt to cover up? Is it not too sharp and too smart? Would not 
 t.he ordinary citizen call it an attempt to swindle on a very large scale? 
 
 I doubt if the Governor-General when he signed this order, or the ministers 
 who passed it in council, or even Mr. Fielding himself, fully perceived the extent 
 of its bearing, from the ingenious way in which its kernel is covered up. But his 
 department ought to have known it, and pointed out its flagrant inconsistency with 
 the printing specifications. 
 
 The matter, however, cannot stop where it is, and nothing further can be con- 
 cluded before parliament meets, when the whole thing will of course be thoroughly 
 ventilated. 
 
 There is yet a further point In connection with this curious Order. The minis- 
 ter recommended by reason of the "saving" he reported he was making, "that he 
 be authorized" to arrange "the details of the contract," to "bis satisfaction.'' 
 What then are the use of " specifications ?" and especially when the "details " indi- 
 cated are the whole lock, stock and barrel. 
 
 The New York Company has let it be known through the newspapers that it 
 would take Canadians into its employ, at New York, and give them the advan- 
 tage of learning the trade. That is pleasant. But how is this doing " all the work" 
 
-15- 
 
 In Ottawa f And a Montreal paper gave it out that the New York Company would 
 aak the American government to Huspend the American contract labor law in order 
 to allow this pleasant arrangement to be carried out. But what ohanoe would 
 there be of such being done, even if the American government had the power to 
 suspend the laws of Congress 7 
 
 Let me say that I do not write from any feeling of hostility to the Canadian 
 ministers. Hut I think a mistake has been made. And I have already said in so 
 far as regards the Canadian contractor that he should be brought up if there is 
 reason to do so. But the facts of the merits of the case, as between him and the 
 rival tenderers have yet to appear. 
 
 What I object to is putting the Angers of the clock backwards, and going back 
 on the policy established over quarter of a century ago of getting all engraving and 
 other work connected with making Canadian government paper money done in 
 Canada, under immediate government control. If the present oontraotor has been 
 unreasonable there are many ways in dealing with him. But the dies and plates 
 of Canadian paper money are not things to be put out to tender in the same way as 
 a yard of cloth. It is not the cnstom of governments of the present day to do so. 
 Perhaps the Imperial government might get its mintage work done cheaper by 
 tender in Germany than at present, and with less possibility of risk than placing 
 Canadian money dies and plates in the hands of a New York corporation. 
 
 It is not to be unfriendly to the present ministers to discuss the question 
 thoroughly on its merits, as such may save them from concreting an error begun 
 
 Ottawa, Feb. JM. OfiSRRVER. 
 
 ALTERATION OF A CONTRACT. 
 
 The fact that the American Bank Note Company has purchased property in this 
 city to the value of $25,000, and is proceeding to erect a large and substantial structure 
 thereupon, might be welcome if it meant that there was to be an addition to the busi- 
 ness of the city by the establishment of a fresh enterprise. But the American Bank 
 Note Company is coming here to do work already performed by a Canadian firm, and 
 of which there is not enough for two competitors in the Dominion. The award to it of 
 the contract for government engraving means that this is lost to the British American 
 Bank Note Company, which has hitherto performed it. It means, too, the destruction 
 of the greater part of the value of the capital invested in the concern. 
 
 It means more. It was represented when the matter was first made public, that 
 all the work in connection with the business would be done in Canada. The specifi- 
 cations upon which tenders were offered provided that " all woik under the contract 
 shall be done at the city of Ottawa," but this specification is not being insisted upon In 
 the case of the favoured American tenderers. It is now stated that an order-in-council 
 has been passed releasing the latter from the condition by allowing the importation 
 among its supplies, such as paper, ink, colors, etc., "steel rolls, steel plates, the dies 
 and other tools of the trade.'' That is to say all the designing and the engraving and 
 • all the materials and the appliances which go to make up a bank note are to be done 
 and furnished from New York, while the impressions alone are to be made in Ottawa. 
 
 This is very different from the terms upon which the parties were asked to tender, 
 and it will strike the most casual observer as being not only unbusinesslike, but grossly 
 unjust. The Canadian company was asked to tender on the assumption that all the 
 work connected with the business was to be done in Canada, and after their offer had 
 been rejected and that of a foreig^n company accepted, the terms are materially changed 
 so to suit this foreign company. 
 
 The operations which are thus to be carried on in New York are in fact the sub- 
 stance of the business. Hitherto they have been done in Canada by Canadian work- 
 men. Hereafter they are to be done in New York by American workmen. The 
 manufacture is to be transferred from Ottawa across the line, and the Canadian work- 
 men will be permitted an opportunity of walking the streets or of tasting the recipro* 
 cal friendliness of American alien labour legislation. There are many other points 
 connected with this transaction which require to be discussed and placed before the 
 public. The above will show, at all events, the kind of fair play which has been 
 accorded our own fellow-citizens. 
 
 Ottawa Citizen, Jan. 12, 1897. 
 THE NORTHERN WASHINGTON. 
 
 The action of the government in awarding the contract for Dominion eng^raving 
 to an American firm when there is an establishment in this city capable of doing the 
 work well, and accustomed to do it, possessing the necessary capital and skill, having 
 
—16— 
 
 H 
 
 the building, plant and expcritnccd workmen, la an extraordinary Indication of the 
 affitction In which the United Statea la held by our preaent rulera. On the bordcra, the 
 offlciala of that country are bually enfagcd in expclliuf reapeclabte and honcat Cana> 
 dian workmen under the Alien Labour law, which la interpreted and applied with 
 extreme rigour. Even nuraea and typcwritera fall under the provlaiona of thia Invid- 
 ioua and oflenalve piece of legislation, and are not allowed to pursue their callings in 
 the boasted land of the free. A short time ago the Premier was so moved by the petty 
 persecution to which our countrymen and countrywomen have been and are aubjected 
 that he declared that if It continued the Dominion would retaliate. Now, howerer, aa 
 above stated, an American firm is awarded a large contract over a Canadian competitor. 
 
 There is a spirit of Christian forgiveneaa in thia episode which cannot be too 
 much admired— from the other side of the line, where, however, it will never be imita- 
 ted. Can anyone conceive the government at Washington giving its engraving con- 
 tract to the Burland, or any other Canadian company, because Its tender was somewhat 
 lower? Could a Canadian get a contract to the extent of one dollar from the State of 
 New York, or any other State? Waa such a thing ever heard of? If any American 
 government could entertain such a preposterous notion, the press and public would 
 howl it out of existence. Yet we, unselfish and magnanimous people, being struck on 
 one cheek, meekly hold out the other, and thank our aggressor Into the bargain. 
 
 This is a practical admission of the Monroe doctrine. "Our country la bigger'n 
 your'n, and consequently our rights are bigger too." Uncle S 'm la aupreme on this 
 continent. He will have the United States for the United Statesera, and will look to 
 get a good deal of Canada too. Perhaps this is an inauguration of the vigorous immi- 
 gration policy of which we have heard so much. Canadiana being severely barred out 
 from receiving any business favours in the States, while United Statesers can get 
 government contracts in Canada, who can doubt that immigration in the latter country 
 will be greatly encouraged ? Now let John Charlton'a heart rejoice, and hia country- 
 men in Michigan be glad, Ottawa is to be the Washington of the North, and here 
 their interests will be as carefully guarded as in the other Washington farther south. 
 
 Ottawa Evening Journal, Jan. /j, iSg^. 
 THE GOVERNMENT ENGRAVING. 
 
 The Dominion government is coming in for sharp criticism for its award of the 
 bank note engraving to a United States firm, and a number of Liberal papera are de- 
 fending the government by the plea that $120,000 a year is saved by the contract with 
 the American firm. 
 
 There is no proof yet of any large saving. 
 
 The Liberal papers which make the contention may be misled by the assertion 
 that the new contract is to be $120,000 a year lower than the old one. 
 
 This does not mean that the tender of the American firm was $120,000 or even $120 
 lower than some Canadian tender. It is a comparison with past prices, not with tend- 
 ered ones. The public has no reason yet to know that the Burlands did not tender 
 within a few dollars of the New Yorkers. It may be that the new Burland tender was 
 very high, but that is not yet officially stated. 
 
 The Journal did not comment upon the new contract because the full facta were 
 not known. But it is proper to say that unless there can be shown a great saving in 
 the contract with the New York firm below the prices which Canadians offered, the 
 government will deserve condemnation. It is not enough to say that the foreign firm 
 must establish a branch here. They will bring foreign labor probably in all depart- 
 ments, and certainly in the superintending offices, and their profits will go across the 
 line, while m the meanwhile a number of Canadians at present employed in such work 
 will be turned on the street. 
 
 ** Ottawa Citizen. 
 
 THAT ENGRAVING CONTRACT. 
 
 The motives that animated the government in this extraordinary step of giving 
 the engraving contract to an American firm cannot be divined. We are told that for 
 the five years there will be a saving of $120,000, as compared with the last five years. 
 But we are not told what the difference was between the tenders of the American com- 
 pany and the Burland company respectively. For aught we know there may not have 
 been a thousand dollars difference. In any case the Canadian firm should have been 
 allowed the option of taking the work at a reasonable price. The preference shown 
 to a foreign rival, belonging to a nation which treats our people with petty and cease- 
 less hostility, and trade intolerance, is amazing. It would seem to indicate a burning 
 desire to show that the government cares no more for Canadians than it does for 
 Americans. 
 
 . 
 
(Ottawa Correspondence^ Montreal Gazette.) 
 
 Ottawa, Mkj 8. - The faotH rcgnnlitiK the Imtik not« cotitraot which wai 
 given by th<* Unveniiiifnt to a Ni^w York concern, wpre iliiclnwd today l>y the 
 
 rroiiuctiiMi of the corri'Niiondcnce. The docnnicntH fntahliali ^^nt the AincricHD 
 lank Note Cotu|iaiiy ottVrrd a cnt rate to the Oovcniincnt to g a foothold in 
 Canada, that It dictated tcriua to tlie (invfrnmrnt directly in violitli')n of the 
 RlwciflcationH, that the ilritiali American Hunk Note Company afttTwarda ITt-n-d 
 to take the contract at the same figure as iia American com|iitit< » had nauud, 
 and that the contract was afterwards awarded to the Aniericun vAmfju'Xw at a 
 f^n-ater cost to the nountry than it wonid have been done by the CanadiflM eom* 
 |>any had its revised oiler been accfitted. 
 
 The new contracts were called wx hint fall. OITeis were made 1 y ''"• American 
 Hank Note Com|)any, New York; the ISritiHli AmtTicaii Bank Note ( •■i|iniiy, of 
 Uttawa ; and Karber & Ellis Company, of Toronto. Tlie latter was nu") out 
 Wause the tendercra oil'ind pntonal m-curity instead of the cash deposit of 
 t.lOiOOO. Of the two that remained that of the American Hank Note Com nan y 
 figured out at t09,040 a year, and that of the Dritish American Rank Note 
 Company at 9128,84:). The ollVr of the Ottawa company was slightly higher tlian 
 the rates )iaid under the former contract, which figured out at 912n,00U. In hia 
 report upon the tenders, Mr Couitney, the Deputy Minister of Finance, pointed 
 out that when the last contract with the liritiHii American Hank Note Company 
 was made, enipiirieH were instituted to ascertain if the ratea were fair ones. It 
 waa fouhd that they were quite as low as the American iiank Note Company was 
 doing the same work for the banks. It follows, therefore, that the ollVr made was 
 coimiderably below the ordinary ratos of the Americnn concern, and may fairly be 
 called cut rates. The American oiler was, strictly H|)eakiiig, informal and in vio- 
 lation oi the specifications. Section 7 of the Hpecifications recpiired that all work 
 under the contract should be done in the city of Ottawa. This wiis accepted in 
 its entirety by the Canadian tenderer. The American Dank Note Company added 
 a provise to its tender as follows : — " The American Hank Note Company under- 
 stands and makes it a part of this tender that it is not reipiired by the si)ecifi- 
 cations hereto attacheil to manufacture bank note and other pa]iers, steel rolls, 
 steel plates, the dies and other tools of the trade, inks, colors, etc., in the city of 
 Ottawa, but that such supplies necessary to the faitlilul fullilment of the contract 
 may l)e obtained elHewliere." Considering this variation of the conditions con* 
 •iderable correspondence took place. 
 
 Work Done In New Yopk. 
 
 The De|>uiy Minister of Unnnce called attention to the new condition, and 
 added this would allow them to do a large portion oi their work in New ^'ork, 
 which senns to require very careful considerotion. Thereujion Jlr. Fielding, 
 instead of throwing out the olTer as a violation of the specifications, wrote to the 
 American tenderers for ex]>lanation8. They replied that they proposed to i)roduce 
 nil the original dies in New York, because there is not the taleut in Citmida to do 
 the work, nor was it obtainable here. " In the United States there were better 
 machinery, better workmen and better ideas of art." The company practically 
 dictated its own terms to the Government in this n-si)ect. It told the Government 
 that the Canadian otlicinls did not know wl.at they were talking of wheit they 
 insisted that the dies cotild be made in Canada, or to use the exact words, "They 
 were not fauiiliar with bank note engraving." In nsjionse to a fi eble protest 
 from Mr. Fielding, the company kindly agreed to modify its position so far as to 
 make the foundation dies in New York and do the jmtting together in Ottawa. 
 Therenjwn Mr. Fielding reported that the terms were satisfactory, although con- 
 trary in this respect to the sjiecilicatioiiH. Before the contract hud been accepted, 
 Mr. G. B. HurlHiid, on behalf of the British American Hank Note Coni]).iny, asked 
 for a reconsideration. He claimed, among other things, that he had not been 
 aware that he wouM have to compete with foreign concerns, and that the offer of 
 the American cDm])auy was contrary to the specifications. As no notice was taken 
 of this, Mr. Burhind offered to a<'cept and carry out the contract on the terms 
 offered by the American company. This offer was never rej)orted upon by the 
 De)>uty Minister of Finance. But from a statement which appears in Mr. Court- 
 ney's report, it is clear that the last offer, although nominally for the same figure, 
 was really lower than that of the American concern. Mr. Courtney pointed out 
 that giving the contract to a new contractor would call for a large immediate outlay 
 for dies, designs and rolls. This is necessitated by the acceptance of the New 
 York offer, but would have been avoided had the Canadian company been given 
 the contract. The facts submitted to-day show that the boast that the work is to 
 be done in Canada is a hollow sham, as the most important part is to be done in 
 New York. They show that in this important respect the tender of the American 
 contract was amended, v.hereas the Government refused to allow any change in 
 the Canadian offer. They show finally that the last offer of the British Americnn 
 Bank Note Company, having regard to the initial outlay, is lower than the offer 
 finally accepted. 
 
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 Britisl? /imerieai) Bai)l^ jNlote Qo, 
 
 ENGRAVERS and PRINTERS, 
 OTTAWA AND MONTREAL. 
 
 Vt,' 
 
 
 INCORPORATED 1866. 
 
 CAPITAL, $200,000. 
 
 
 ckX^ 
 
 ' \f' •■■■.//> .V--"- 
 
 The Company have much pleasure in 
 thanking their friends and customers for the 
 patronage extended to them during the past 
 35 YEARS, and beg to state that their business 
 will be carried on ■with renewed vigour and 
 energy for the future. 
 
 W '1 
 
 » > ♦ < * 
 
 Bank Notes, 
 
 Certificates of Stock, 
 ^ S$* Debentures, Bonds, 
 
 
 Bills of Exchange, 
 
 
 AND HIGH-CLASS COMMERCIAL WORK 
 
 , . AT GREATLY REDUCED PRICES, 
 
 'i. IN BEST QUALITY OF STEEL PLATE WORK. 
 
 Please send for SA MPLES and TERMS before ordering elsewhere. 
 
 ALU ORDERS PROMPTLY ATTENDED TO. 
 
 -S ■■-■'.■ 
 
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