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-1

REPOUT

«.»)

br THE

DEBATE IN THE CITY COUNCIL

'• OK

I MONDAY, JANUARY 24th, 1853,

« k

Ii\ liEF£aE>fCK TO THE

•^eoO^OOOCITY DEBENTUKES.

RE-PRINTED VROU iHE « BRITISH CANADIAN.

• •

;!l

TOIRONTO:

n«

1353.

L-.t

**""'••

V .

5-7 li^

9
*

THE £50,000 DEBENTURES.

{From the JBritUh Canadian.)

WE»iiE8DAV,..26th Jan., 1853.

The evil- genius of the Hon. Ftas. Hincks
seems to be omnipresent. On Monday even-
ing the first meeting of jhe-nevv municipal
council took place, the Mayor in the chair.
After some routine business was disposed of,
Alderman Bell moved for a committee to
investigate all matters relating to the issue
of the Je50,000 debentures granted to the
contractors oi the Northern Railroad. This» it
will he remembered was one of the charges
to which the Mayor alluded on Monday last,
as being industriously circulated against him
without any shadow of foundation and in
respect of which he dared his accusers. In
moving for the commilteo Alderman Bell
forbore going into the facts of the case, but
in the progress of the debate they became
developed and appear to be as follows. For
the full particulars we must refer to the very
ample report of the proceedings which we
give in another place.

It appears then that the contractors of the
Northern Railroad were entitled to receive

l:*

'It

V' i ,

i i

t«

K?-^

X50,000 city debentaies, which they had
managed with partied in New York to nogo-
ciate at par, that they came here with their
Bohcitor for the purpose of receiving them,
on their arrival they were informed that
there was a legal douht as to the power of
issuing them, and they would be worth no-
thing. At this moment they had heavy en-
gagements to meet and, unprepared for such
a contingency, when it was proposed to them
that the debentures such as they were would
• be issued to the amount of the £50,000 pro-
vided they would consent to a discount of
£20 per cent., they were obliged to submit.
The debentures accordinii^Jy issued to tho
amount of £50,000 — were lodged in thoBauk.
and the contractors were authorized to draw
as against them to the amount of £40,000.
They did so. In a few weeks £100,000 city
debentures under the consolidated loan fund
act issued at par, and £50,000 of them wero
at once applied to redeem the so called ques-
tionable debentures which had been cashed
by some body at a discount of £10,000.

These are the facts as we gather them from
the statements of the Mayor, his friends and
his accusers, and we further find that it is
alleged that the Hon. Francis Ilincks, Mr.
James Cotton, some party whose name has
not transpired and llxe Mayor were pariies to

i.i

they had
k to nogo-
whh their
ing them,
ined that
power of
worth 110-
haavy en-
U fur such
3d to them
ere would
0,000 pro-
liscount of
lo submit.
cd to tho
the Bank.
id to draw

jC40,000.
10,000 city

loan fund
hem \ve\o
tiled qties-
en cashed
,000,

them from
liends and

that it IS
neks, Mr.
name hujn
i paiUes to

if.

this discount transaction by which £10,000
has been netted eithei at the expense of the
contractors or of the city, the cash available
for it being part of a large sum lying unpro-
ductive m the Bank belongmg to the public
but under the control ot Mr. Hincks.

Alderman Gowan, Alderman Thompson,
and Mr. Remain threw the mantle of protec-
tion over our Chief Man^istrate, who seemed
by no mens loth to avail himself cf it. They
were seconded by other of his Worship's sup-
porters who tried to stifle all enquiry into the
transaction. Those members of the council
wlio have the mercantile honor and'character
of the city at heart were not to be thus; foiled,
and at length his Worship pressed with
eearching interrogatories from all sides and
on all points, fairly turned at bay, and as
chairman, and from the chair told the mem-
bers of the council that " he would make it a
personal matt er with any man who pressed it
further." This intimation of « pistols for two
and coifbe foi one" was not the sort of amuse-
ment peaceful and highminded citizens ad-
mired, nor did they consider it likely to solve
the mystery, and the debate was of course at
ouce terminated.

After a careful review of the several ex-
planations offered by his Worship, including
his reply to the questions very considerately
put by Mr. Romain, we aro led to the con-

I '

elusion, that the Mayor limits his denial and
non-interference in the transaction to any
personal negociation V9\\\i tho Bank or the
Contractors-thai on the question whether he
IB a participator in the benefit derived or to
be derived from the X 10,000 «5/mre,» he ij»
studiously silent, at tho same time that he
deems it politic to prepare his followers, and
the mind of the public for what might be
brought to light, by claiming a perfect right
to « shave" the debentures if he thought fit-
that it was not the business of the public to
what use he put his money— and that here-
after he would hold that individual personally
responsible, who should presume to challenge
him on the subject. That the public will
indorse his Worship's opinions, we very much
doubt and we hesitate not to say, that they
will draw a wide distinction between a pri-
vate citizen trading in city securities, and the
Mayor who may be regarded in the light of
a Trustee of those securities— in intimate
communication with the Government— fore-
warned of their intentions with reference to
the Consolidated Loan Fund Act, and tho
influence that Act would have on those very
iccurities with which he claimed a right to
deal for his personal benefit. But the matter
can not rest here.

icnial and
)n to uny
nk or the
irhether he
ivcd or to
I'e," he i»
le that he
)wers, and
might be
rfect right
ouglil fit—
e public to
that here-
personally
) challenge
>ublic will
very much
, that they
een a pri-
ies, and the
he light of
n intimate
aent— fore-
eference to
it, and the
those very
a right to
; the nriatter

TKOCEEDIXG? OP THE CITY COUNCIL

The drat meeting of the New Covmcl! took
place on Monday r'vening when theiu was a
full attendance ot tlie members.

His Worship ihe Mayor having taken the
chair, the Couuc'lthcu proceeded to tiie no-
tninatiou of lli« several htaiiding committee*.

A numborof petitioiiti were then piesented
s^nd some commtmicaiions read from various
parties, after which

Alderman Belt, rose to move for a special
committee to inve 'ilirnte all matters relating
to the issue of X5(),0'J0 city debentures ; when
sold, at vvluit ralt», to whom they be!onged
when first issued, and who had benefited to
the amount of the jC10,()00 discount thereon.
lie said in makifig^tiis motion he hoped
the Council would indulge him in alluding
as he must to rumours which were current
as to the coadu»*t of his Worship the Mayor
therein, but which rumours he trusted the
report of that committee would prove to be
unfounded. He < Alderman Bell) was in
possession of some facts which he could lay
before that committee when appointed. It
was unnecessary for him to recapitulate the
rumours as to the debentures or his opinion
that it was illegai for gent emen of this Board
as such, to purchase them improperly. If hit
Worship purchased Ihem in his individual
capacity, if he had used ius own property iu
making that purchase he had a right to do ecu

i I

f 'f'

Th'M wa'^ not \v!iat was charged. Tt ;.- i
clmrge far niort; -crious. It wa3 said ili.a
these debentures were impi-operly issued—
that they were used in certam spnrnhitionn
it wan improper for any men i bur '

to t'C

lol

jrjased in. Whether hia

whicti

this Couiici - ^- , . t

Worsiiipor iioi wuo ^a engaged ui them re-
mained w be proved. He (Mr, Bell) waii
noi satisfied upon this point, he was notsatw-
fied as to the terms on which these deben-
tures were 'leivociated, but he hoped that the
report of thus committee, if granted, would
dispose of the matter fuUy, set ut rest those
rumonrs abroad to which ho had alluded, and
aet his mind at rest al«o.

Councihnan BtGo seconded the resolution.

Alderman Gowan said, this was a singular
motion. He had heard so much about these
debentures, that he would before proceeding,'
ask a question or two for information sake. —
To whom did the Debentures issue. (A voice.
To the contractors.) At par? (The Mayor,,
yes). Well, if so, what further had we to say
to them. If the city issues £50,000 debentures
to the contractors of the Northern Railroad,
when issued they pass out of our hands, and
are we 3;omz to ask the contractors to whom
they parled them or what they received. What
is the amount issued ? £50,000. To whom ?
The contractors. Well we part with thern and
the city has nothing more to do with it. If
then there be any intention of enquiring into
the subsequent acts of the Chief Magistrate
of ibe City, in connexion with them, he would
protest against it. This was not the time nor
Itie p^ace for such an enquiry if allowed at
ali. The time was when the Chief Magistrate
was being elected, but not after. He would

mr^.

i aaid thai
y issued—

"inrnhitionn

lie

111 bet" (I

m them r<-
Bcll) waft
1-, iii>tsati8-
ese duben-
>ed that the
ited) wonM
t rest those
Iludedi and

ji'esolution^
» a singular
about Iheso

proceedin*^
\on sake. —
J, (A voice*
PUe Mayor^
d we to say
f debenture J
n\ Railroad,

hands, and
}vs to whom
[jived. What

To whom ?
th them and

with it. If
[quiring into
f Magistrate
m, he would
the time nor
f allowed at
i Magistrate
. He would

fislc any member, would he submit to it ? If
the Alderman who made the motion had
rtbstjiir.off from puttina on this committee of
liv(>, ihe ciiinlidutes who we rt opposed to hiii
VV<jr.-^hi|), 1 1 n» was Mr. Caley for instance^*—

AiJeniiuii JJlll — There are three of his
nui'poiters on it| Messrs. Armstrongs Uu) us,
and Dunn.

Alderman Gowan wonKi protest a<]fain8t
going into such an investigation into the cha*
racterof any man. Would any man submit
to an enquiry by this comniiUee. IJe trusted
it wouM not be assented to. If there were
any thing wiong, it was competent to the
AKferman to show it up and state it. The
speaker then took up a printed hand-billy
which had been in circulation before the
election cf Alayor, and put therefiom liie fol-
lowing queries : —

*• Is it not true that City Pebentures to the
amount of iJ'^O.UDO were deposited in tht* Bank of
Upper Canada, against which the Cnniractoisof
the Northern Ruail were authorised to draw 80
per cent only.

'* Is it not true that in consoquenre of the De-
bentureh being unauihorised by statute, so soon a»
the Act for the issuf» under the Consolidated Funcf
was in operation ihey were re[)lared by £50,000
and theCiiy debited with that amount.

" Is It not true that ilio Contractors never re^
ceived more than X4 ),()0() for the said £50,000
Debentures, 'Jiini *hat neither the bank of Upper
Canada nor the city, received any part of the dif-
ference, XI O.(»00.

**Is it not true thai the lei^al issue oi Deben^
tures were ptjrcha.^ed at par generally, and in
instances at a prenninm.

**Is it not true that you can explain into whose

and were you riot a partner in the transaction^*'

tvdl

«.

Si
I

Suppose now all this was true, what was
there in it? Did the city lose one six-pence?
If the contractors connp'ain, we onght then
enquire into the matter, if not Jt was ridicu-
lous to do so. He would no\ vote lor the com-
mittee. ^ - .

Councilman Platt was sorry lor this mo-
tion, and alluded to the hand-bill which he
said had been circulated by the clerk of on©
of the rival candidates. (Name). Mr. Alder-
man Hutchinson's clerk.

Alderman Hutchinson protested against
being made responsible for the acts ol his
clerk. Ho knew nothing ol them.

Councilman Platt— Well, still he thought
it would not be fair to put him on the com-
mittee, but if it be referred to one at all, let
the charges he reduced to writing.

Alderman Hayios was in favour oi this en-
qr'ry, but would decline acting on the com-
mittee as now constituted. He was quite cer-
tain at the same time that his Worship would
join whh him in seeking that enquiry. ^

Councilman Romain said, that when tliey
were called on to elect the Chief Magistrate
was the time to have made these objections.
Alderman Bell told him that he would raise
«uch a clamour in relation to these debentu-
res as would make his hair stand on end, but
he would shew that theie were more than
41derman Bell guilty ol slander.
Alderman Bell— Do you charge me ?
Councilman Romain— Yes.
Alderman Bell— You state what is not the
fact. I said that " if what I had heard were
true it would raise a clamour that would
make your hair stand on end."
Councilman Romain was notwithstanding

, what was
SIX -pence?

ought then
was ridicu-
or the coni-

hr this mo-
ll which he
•lerk of on©
Mr. Alder-

ted against
) acts of his

1 he thought
on the com-
le at all, let

\x oi this en-
on the com-
mas quite cer-
3rship would
iqniry.
It when they
3f Magistrate
;e objf^ctions.
I would raise
ese debentu-
d on end, but
re more than

•

Tire me ?

^hat is not the
,d heard were
r that would

twithstanding

not disposed to go into it now. The time
doing 80 was when they met on the Friday
night previous to the election of Mayor. He
was told that the railroad had been given
debentures to the ammit of £50,000 on
which they were obligeu to make a reduc-
tion of £10,000. No one questioned the
right of any one to buy up those debentures,
but it was said that the £10,000 was retain-
ed to pay ensagoments of the contractors \\\
England. Onlhe Saturday before the elec-
tion he (Mr. Romaiu) had gone to the Bank
of Upper Canada to enquire about the mat-
ter, and was there told by Mr. Uidout, the
Cashiei that he condemned the conduct of
Alderman Bell— that it was disreputable—
whilst the conduct o( the Mayor was worthy
of commendation iu as much as he had nc-
gociated £100,000 at par for the city when
no other man could do so. When he asked
Mr. Ridout and Mr» Prouilfoot what had be-
come of the £50,000 debentures and who
had bought them,— was it the Mayor T— was
it his money? — did the deficiency go into his
pocket or any portion of it ? he was answer-
ed, no. He contended that the Mayor had
the same right to go and purchase them if
they were in the market as any one else had,
and as was done by others in refeience to the
£13,000 debentures lately issued for city im-
provements. He might be told it was none
of our business what the Mayor did in the
matter. What— Was it not our business to
know if the Mayor were speculating at our
expense ? Well, he had exercised that
right. He made that enquiry at the Bank-
he got the answer in writing — the Mayor ob-
toiporl it frnm lum !intl r«ad it on thi^ dav of

I' iV

^^.i

i k

I I

the election, ll had the nn'ne of the cashier
attached, aud it was tl-.u! to inem. Oa the
whole of the facts thus tufure thorn Jje ^oukl
put to Iht! iVI.iyor two qaestious. Ihe tirsl
Sir, is-di i y(»ii or did yon it .t issue these de-
betitures lU a disct)unt ? T:»e second is— did
yoa or did you not make monijy hyth« con-
tractors, or have they h).-,l this £^^^^00 T

The Mavor said the books uf the Hnance
Committee would aiisvver these questions.

Some cotdlisioii tojk place and calls ot

order. ^, 'r »,

The Mwoa sa'id in answer to the Iir'^t
question, that all thedebo-ntuies were issued
at par. He was not to be told that he was
not to use his own money as lie bked whi e
he was Mayor, He haJ a p.M ft'Ct light to do
so as long as he did not defraud the city. At
liie time he first entered the Council and act-
ed as Chahmanof th? Finance Committee,^
he foun I that the assets t )r the payment ot
their debts were low and their credit low ;
he asked the clerk of the Council fora state-
ment of those assets an I debts, and advised
with the Com.mittee of Finance as to the
best means of raisinir their credit. He saw
that ill 1853 there must be i:34,000 had to
pay their mortgage ilel)t, and two years ago,
with the approbation of the Finance Com-
mittee he submitted to the Bank of Upper
Canada the possibility of their raising money
in England. They wrote to England and re-
ceived intimation in reply that their deben-
tures would not go at par. He was asked
would he sell them at a discount—he an-
swered no— he asked if credit could be got--
!ie wrote to London to obtain that credit— he
<Tot it at par, and the city finauoes and credit

he casliief
. Ort the
I he would
The first
) these de-
ll id is — did
r the con-
,000 f
le finance
lestions.
1 calls of

3 the fir'^t

;ere issued
i:it he was
iked while

right to da
le city. At
cil and act-
[!omvnittee,
payment of
3 red it low ;

for a state-
md advised
3 as to the
t. He saw
1,000 had to
J years ago,
aace Com-
ik of Upper
ising mouey
land and re«
heir deben-

was asked
unt — he an-
nld be got—
it credit — he
J 3 and credit

were raised under hi^ administration. A.s to
the Jt:50,000 for the Noititeni Railroad, the
debentuies wtJie grahli'd at the urgent request
oi Mr. Boil llun-~-l hey were considered tonavo
been granted contrary to luw and as worth-
less—they were issued without any provision
for redeinplioii when due. Some tliought they
had authority for issuing theai yet this was
found to be au error btit Mr. Uouitoa sec'ini;
we were pr^'ssed by \Ue contractors urged
their issue if. order U« keep fatth with them
we undertaking al Ine lirtic that they should
be legalized, i'liis was domd by the subse-
quent issue of d»'l>.nitntes to Die amount of
i) 100,000 with which tfiey and others were
redeeined and the etty tiebt consolidated. As
to what the Noitiiern Uaihoaa sold their de-
bentures for, we had nothing to do vvith it* It
was not our aifair but Itieirs. We had no right
to ask them wluit they wonJd .-eil them tor. Ha
(The Mayor) protects against this council or
any men, oi any iine, saying what he should
do witli his money /Vcre tie tiie purchaser ; lie
had nothing to do with iiegociating thera but
he would ncjw assume the whole responsibi-
lity and if ii were i;iO,000 or /;50,00() were
made by it, he liad as good a right to do it
after tliey left the CiKimlicrlain as any one.
But he liul not d*» it except liuou^hanagentto
guard ag;^i!i^t the rlamouis of those who
would like to keep iheni ow. As to the credit
of the city the great ditHcuity with them i«
that the cily debentuies which were sellinsr
at from 30 to '2l> per cent. dt>counl are now at
par. The evidence about these debentures
is in the Clniraleilalns oflice. Having now
answered these qneslions, he would teli them
^teace he would answer n'j rnoitJ,

fis

itn

■» ^

this council majr »>« ^ jwertj^* , ^„^„ jfjenda

dissentient voice or any aiv'^'O" j „f

,ire of the counc.l "/"^PP^f^i^hed the c'ha-

mfclS,) name had been improperly
(Mr. Cayiey ; ", , a„Gowaa,on the pro-
challensed by Aj'^'^!"':^" ^ot „„ ,t._

nosed '=o,>?™'"tal ovve<no lake one or two
but would he ^= f 'XobLtions foundedoa
remarks in reply ".f.^Te Mayor. Would
his presumed hosluty ° « '«^f ^^1,; Cayley)

Alderman ^"^''''"f J '7^',, foAhe honour of
had,(ihou2h >" his canvass lor I .^

'^"' "^'^reS 7every lmbe'5 the council,)
turntoneailyeve y ^^.^ derogatory

ever used one ''">f °,fT,o^,es. He would
to the character of Mr. o^ es. ^^.^^^

be unworthy ,«['.f„V he stooped to such
ho ha^^«P"^,tre i It ^vould'have been
T^^'M to theposi.ion that he (Mr. Cay-
f "'xlfild^in tl e Orvernment of the country
ley) held "».;!'«""* _,,,,v,. ,o occupy m the
_to_the pos, .on he «,MU ^t^ "'' «'"»«"§«'>
opmion ot hi^ *''''°j . j^^d ever thrown any

""^""LuStooppo'^-'nt- He appealed to
aspersion iipon »'J'"|{1 t.|,.,„ ,yho are friends
alUe chaUer.ge^^^^^^^ course, if

mrtVsuppress eaquiry, to bim yuu .Uu..

)

IlStfl

witl

friei

fear

mig

and

fall

recc

by]

hel

wit]

For

sho

deb

mac

posi

woi

allu

1
Ca)
no J
was

A
cre(
sho
Ch;
be
Itii
8ca
enq
i the

qui
; Roi

I the
woi

possiblf
or three i
) frienda j
1 to him, I

bo any j
the de- *•
ignity of [
the cha- i
Lair. Hit j
iproperly \

the pro- ;
t on It,— \
\G or two ^•
undedoa i
. Would \
. Cayley) •
honour of ?
imself ia ]

council,) I
ierogatory I
ie would .'
e which 5
d to such \
ave been
Mr. Cay-
Q country j
ipy in the j
ihallenged ;
uown any
ppealed to \
are friends \

course, if *
1 any sup-
fht have to ;
lids. Iftho \
were desi-
fQ\x should J

listen aa your best friend. He (Mr, Cayley,)
nerer heard your name tangibly connected
with this transaction. Why then are your
friends so careful, why so tender as though
fearful something prejudicial to yourself
might leak out, Xet your enemy come out
and assail you,— if innocent his shaft would
fall powerless from your shield of honor, and
recoil upon himself, A committee appointed
by ballot would be preterable, and if adopted
he trusted they would enter on the enquiry
with a single desire to arrive at the truth.—
For tho satisfaction of the citizens, enquiry
should be made, the whole history of tho
debentures should be sifted out. tet it bo
made if even the committee be wholly com-
posed of your friends, and he trusted they
would not allow angry debates and personal
allusions so damaging to continue.

The Ma YOU said, that in all his canvass Mr.
Cayley had not said one word against him—
no honourable man would do so—Mr. Cayley
was an honourable man.

Alderman BaooKe thought that for the
credit of the City it was desirable this matter
ehould be investigated. If the books m tho
Chamberlains office explained i*, they could
be easily referred to, and so set it at rest.
It is duo to the city that on teporls of so
scandalous a nature, the Mayor should eouit
enquiry. For his ciedit and the credit of
tho city, they should be investigated.

Alderman Carr was inclined to this en-
quiry. He disliked the expressions of Mr.
Romaine whicn were as much as to say that
they had voted the Mayor into the Chair, and
would sustain him there right or wrong and

!l^'

\\\

II : ^'

He, Aklerman Carr opposed the issne of these
.Jebentmes oiigmally. What ^vere l^e i^hiirges
as he underhtood them? £50,000 City de-
bentures were lud-td iu the Bank against
which the Contrai-tors wore entitled to diavv to
the extent of £40,000 thus «liovvmg a toss^
XIO.OOO oil them--Debeuturos tor £100,00(1
were subsequently issued of which £50,000
were placed ut par in the Bank to redeem the
ori'nnaioiiesaiul it was said that the Hon,
Francis Hincks, the Mayoi and some other
party made the£ 10,000 d ilierence and that the
matter was thus managed. There was some
£180,000orso of the Public money lymgthere
under tlie control of Mr. Hiucks not bearing
interest, and the Hon. F. Hincks gave au-
thority thereout to pay the £-40,00 to the Con-
tractors and tlius the Mayor and other parties
made £10,000. If this were s-o he wouid cer-
tainly press enquiry.

Councilman Buoa seconded the resolution.
He wished enquiry ior ttie credit oi the
Mayor, tor the credit of the City; yet those
who cail*:il themselves his Worship's friends
were the paviies who were soauxioas lostiilo

all euqtiiry. , i ^*

Alderm;in TiioMrsON said they should not
be called on to enquire into how th est; de-
bentures were dis[,osed of ; as well might
they enquire into the private speculations Ot
any mav«. He understood the deoentures
were raid ov.^r to the contractors and by
their old .'f lod-ed in the Bank of Upper Ca-
nada. No one can say the contractors were
defr:u)d.-d--who brings a char-e ? jj"^»
iti?thi>that they have received £10,000
less that! they should. He has had inter-

ViOW» Witii uis; vV">'i**^'^*'^i «it-« v.i»

oftheso
'jhiirges
City de-
against
idiavvto
a toss of

; 100,000

£50,000
Bern the
iie Hon,
ae other
I that the
as some
if) 2: there
bearing
:ave au-
:he Con-
ir parlies
Duid cer-

I solution.
it of the
yet those
's friends
IS to stiiie

hould not
thestj de-
»]l might
hitioiis of
ebeittures
s and by
Jpper Ca-
lors were
' If any, j
1 £10,000 I
r,id inter- |
iQ of theni k

t&id he would not consent to lose one shil-
Jiri^ on th«m. We ware told by Counsel
when theso debeutnies wera abyat la issue
thatthera were t-onilictin-jr clauses iu the hiw,
the speL'iul act l.>elai^" o\*e«" rld.'eu by tlie ge-*
neral at-t, h.ilh having n'ceived th«^ ivoyal As-
sent tile f^tuie day, and liii.-s v.'u? the cause of
the <iiiru'u!ty as tv> lh{?m. U i would inuve in
afn^'ndineni that llie co:it;;i'.-toi'.s bo Jippiied
to to know if they had iulljred any loss by
the de'ay in the \<>ue of the debjuture?* or
otherwise, and iliatthe City Chambeilniu do
communicate with them to ascertain if they
had any and what complaint to bring be-
fore this Counsel on the subject.

Councilman Platt beconded the amead-
inent.-

AUlerman Dexison objected to both the
original resolution and the amendment,
though from what had now fallon he thought
the matter should be investigated if it were
only for the express purpose oi' clccirins? the
Mayor's character. 'Ihe amend me»it implies
charges and invites them. He would vote
for the original resolution for the purpose of
clearing up all doubts. The rumours in cir-
culation were most prejudicial— he believed
them to be iuhe — many were not of that ooi-
nion, but they should be gaiisded that the
Mayor and Corporation were free from cor-
ruption. -

Councilman AsiiriEtD did not see the
object of the amendment ; he had heard that
£50,000, debentures ban issued— that the le-
gally of their issue was questioned— that they
were placed in the Bank by the contractors
with lull knowledge oi this question— thai

#•*'

■ t

i1;.i

itv]

• I;

cnly tfi tho extent of £40,000 «n<l that they
were taken up afteiwaid$ by an issua of
£50,000 at par.
The IVUvott.— They were in exchange for

thera. » . 1

Councilman Asnrir.T.p— Ay<*, in evclmnge.

There is^lhe qut'stioni*— the jxmtjI at,is?ue was
n'bo bt'iiflitteii by the ixohance ? Did ihd
conlractors i»et the i;iO,0(JO defit-ient. No.
The Bai*k su)' they did not,— who did ? Who
knows any thinpr of it ? Your vvovsbip,— no
oneelse. Such being the case he mu.-l say
it is lU ml vised oi your friends by iheir vota
to suppress enquiry, they are not youi irienda.
All know tlie rumours, there are few but
know somethius of them antl in the absence
of full information every member ot the coun«
oil is prejudiced — You sir, owe it to your own
position, and the council require intormation
at your hands — Enquiry by the committee
if granted, from the way it has been man-
aged will amount to nothing. The Bank
did not get the £10,000. The contractors
did not get one penny of it. Three or four
persons appear to be implicated in it, the
■whole affair was open to suspicion.^ He would
tell him who is said to have participated in
the £10,000. His Worship was one.— "An
official in the Bank ot Upper Canada was an-
other. — Jas. Cotton was a third, and the Hon.
Fras. Hincks was a fourth. Those are the
parties who are said to be connected with the
tranfiaction. The contractors r^^-^eived the
first issue of debentures and ii ^itere were
any guilt in the transaction his worship must
know the facts. No doubt if you had any thing
to do w^ith that, you thought yourself fully
justified in treating It as private traneactioa
and ai such you entered into it.

that they

change for

exchange.
t,is«ue was
' Did ihd
lent. No,
tlid ?Wha
ivsbip, — no
murl say ^
iheir vota
)ur iiienda,
e few but
le absence
ithecoun-
o your own
ijtormation
committee
been man-
Thc Bank
contractors
ree or four
In iU the
He would
icipated in
one. — An
da was an-
idtheHon»
Q are the
ed with the
"eived the
iiere were
>rship must
i any thing
irself fully
traneactioft

The Ma von said, if all this were true ts f«

himself, if he were the paity who purchased

the debentures, he tieniecl the r\Q;ht o( the

couucii to question him— what i iohi fjiul they

to know wheiher he used Ur xnuuty in pur-

chasi>j;;r<febeiitures or in moil^niifs? He iiad

as uooii r\L\Ux to do one as the other. He

wouh! now assume the whoie le.spoiiftibilily

of thefieiioeialion ; il je20,C00 were made by

them aiier ihuy passed avvny from the parlies

to whom they issued what war lliat Jo Jhem?

He would do what was right and should

always do it. He would not make such a

purchase directly, he would do it a^raifj as he

had done beJore, by an agor.t. If anyone saya

he has no rijrhl to do so,' he would fell him

he wont submit his private Jransaclion? le

be questioneJ. He stood here as the repre*

aentaliveof the council, and so (iiras the city

is concerned, he will see that its funds are

husbanded. As to his private transactions,

he repeated he will allow no one to investirrate

them— r»o one has a right to investigate them.

oor will he submit to it.

After a few brief observations from Aider*
men Hayes, Robinson and Gowan.

Alderman Brook said, it wai: clear «ome
party or parties made i:iO,000,— -either the
Mayor or some one else, or all four shared it ;
why then object to ascertaining who it was |
This charge should not be overlooked — It i«
too serious. The contractors certainly lost
i:iO,000,--who got it ?

Hon Mr. Cavlev said the question was aa
to the shave on the original debentures, and
were the contractors driven by their nece8!«i-
ties to submit to it. He wanted to have the
UGf elicitady for if the 'dabentures w^ik

IM^

i«-i

lib

illej^ally issued ant! the parties thereby preju-
diced ttiey wore entitled iu equity to 5nch
remetly 115 tne city couM aifinl theui whi*n-
cvcr the oppnituuliy >^hf)i.5M ollbr. It wa.i
poiTcrtiy well kiio^vii hijknv lUa m.K'lin^ of
the Lexnslatura tlinl tliu (iovenimo'it hud it
in co:!ti»rnj)latlo!i to iiili-oihjcw the bill -the
consul iil-tic'd loiin I'uiid act which would ma-
lejiallv i.aprove the cliaractur of all Provin-
cird i>*HMivilif;^. VVeiy tlu? contractors who
8nb:nitted to \ho f^havo awaro of ihi.-? fact ?—
Were the pailies wh;.* shared the contractors
aware of this i'iu'l ?-~wa^ there any ooli'^a-
tiori on the part of the city to replace the less
marlanable debenturen w'ith debentures com-
matidiinx p^r? Wa--^* that obi ii:>-ai ion to th©
contracto".-5 or to the parties who shaved tho
contr.ietor^ or \vas the city ia a por^ilioii to
claim the betiedt of their improved credit Jind
position? All these were points hi which
the p'jblic toalc iriJereM and 011 which they
had a ri -A- hit a bi^ cnliditcnoJ. It would bo
for the Comrnilteo to do so— to apcerJaiii in
what shape tiie ilebc;Uuros were put into the
market — when redeemed — how replaced.
The public hu<J clearly a ri!:?lit to Uuow all
the!5C thinizs and whether the most had been
ma It! of their fund.^.

The MAVoasaid that bo repeated he had
no objectio!! to take th<» whole responsibility
of the trnti^actinii up>u himf^viU*.

Aid. IjKU. said no lonkcvl on the Amend-
ment as intended to stirhi enquiry. At iho
time the debentures were issued it wa?? com-
petent furthecontraetotsto make any bariraia
they pleased to dispose of then:i in New York
•at par. Ho would now state the facts, for job-
hing oi the description we had hero should b«

»!>)• preju-
y to such
nt\ wh!*n«
. It wai

i^etinn^ of
Mt hiul it

bill -.the
voiikl mti-
l Piovin-
L-tors who
is fact ?—
;ou tractors
y oDli'^a-
•e the less
:nie5 com-
ic )ii to th©
shaved tho
:)o?«ilioii to
credit and
in which
uich tfiey

woukl ho
^cerJ.'iiii ill
ul into the

replaced.

know all

had beea

?d he had
ponsibiiity $

\c Amend-
r. At iho
\vaf? com-
ny baruaia
New Yoik
L*ls, for job-
i should b«

denounced. Tlio Contractor.** «ott!ed in N. Y.

upon ihe Credit ol the( ity orJorontotohava

thedt'bentLires tnUen up at par nnd theycamo
hero vviih thuir Soiicitor lor tho piirposo of
doirii^so whc'itthey \vlm\; met vvilii the oljrct-
ioii that th<^ir insiitj was il t^jril and that they
were xvorili iiolhiii'/. Their S'.»licilor then
rettirtu-'d to New Yor!; sayiiir:: tluil we did
matt-Jis hero in a \i*vy ^i«n'e;dy way, Tho
Conlfaclcrj; were nu^^• h^ll in an awkward
position, they h.-ui cjalins upon lh<.nu coming
due which o\vin:i^ to this ciruuin^'tanco they
%vere unprepared lomeel. They were in want
of the funds and threatened with the
fitoppaire of the vvoik?* the next day,
and beinix so an ananu;ement was mado
by which th'^y agreed to liike etnjlily nounda
for what they couUI v:ei I'lOO In New York if
they hati been pvo]ieiiy issued. Why not
iheti enquire why tiiey had not been properly
issued. Why was thiscontiii-eney permitted
to occur? Have we net a li^ht to know it?
Who furnished money to puvchaire the de-
bentures? Who supplied the XK),()00?
Was il the Bank of Upper Canada? If yes
then that X 10,000 belongs Jo them,— their
credit ptodnceil it, not J G. Howe-^'ri ; but if
you jsny il is your;^ it is by reason cfyi mfanx
yas. If the contractors sell tlieir liiiut -^.t 20 per
cent discount, then you iiad a ri^ht to use
your money as you pleased. He (Alderman
1J») had heard tlie Mayor declare that he had
nothintr to do with Uie transaction, and now
he telis us he is wiilin;^ to assume the whole
responsibility of it. Yes. He says so novr^
and tie (Alderman Bell) wants to know — his
Constituents wants to know — the Council
wants to knoNV why the contractcn wer#

M '

L^'^

•t'l

i'i

«bli<»ed 10 ieM our debentures at a large dis-
couut to meet iho duiniiud'i upon thein ? Ha
has a ri'iht tu know wIuMIkm' the X4r),000
thus ai>|)lIocl camo Croni the IJafik oi Upper
Ciiuacla, b.Lseil on U\ii t^ecwiiiy ol" tlio tlebwn-
tUiL's. J[ aiis\v<'rLuI in ihe alliirniilive, ihen
he wouKt coutvM.d that the X' 10,0(0 bclono-.^ to
the Cily of Tuiuiitu* <or in ;i ieu" \veelv> after
when tdecoiisoIiilatcdLoatiAci became u \a.Wp
you !>^uK^lituttHl oliiLM- il(A)e;)lures for ihem.—
Vou hamle.l ialo the Bank X50,000 new tie-
boiiture:^ jit par, aiul you yot out ll;e £50,000
okl dt'bentmfs. Tlio (HJiUraci(>r.-3 ^t^le, ihey
gotbutXiO,00()lie bclievod tij'> ]\ I ay or was
bhnseU* aware, they were tuhl that if th»
r.ionoy was r.<jvanced ihcy wouht <^et but
X4(),000. Tlio Mayor shoufd court insieacl ot
opposiii^r enciuiry. He iiad no vIl^lA \o uso
the credit of tlie Cily of Toronto to procure
£40,000 for tlie contractors, and put £10,000
into his own pocket. 7'hat some one has *ono
so he believed, and under all the circum-
stances it was their duly to inveslii^^ate whe-
ther or not the credit of the City is to be
used, to enable that man to make £10,000
—for it cant be ^denied that sum was put
into some ones pockets. If enquiry be re-
fused here, the public will know it by other
means. Enquiry will not be stifled. If it be
you will have to say « save me from my
friends." He would say it wub a fact that the
contractors got but 40,000 instead of £50,000.
Who procured the former sum ? Was it pro-
cured on the credit of the city, or on private
credit ?

The Mayor rose apparently much excited
and said, he trusted there would be no fur-
iber remarks upon this subject or he teoxUd

c){ I'pper

o debwn-
ive, I hen
)t*l(>n2»\'4 to
jelv> after
lie a iaWi
' ihem.—
new tie-
£50,000
ale, ihey
iiy.'.)i' wui
tit if th»
trtH but
n stead ot
;iil 10 uso
) procure
£10,000
has *ono
circum-
ate whe-
' ]s to be
£10,000
was put
y be re-
by other
if it be
fiom my
that the
£50,000.
s it pro-
L private

excited

no fuF"

he wotUd

make it a personal matt tr with any one wh^
tvould attempt to v^e his name. No deben-
tures until lately had been issued on which
there was not a !o>s of froiri 10 lo 20 per
cent. There was Uxss on all their debentures,
and as well rnl^ht they a.*.k iho purehasera
to make good the loss to the poor njen who
held them. H he (the iMayer) purchasetl the
whole he had a li^htto do sio — tlioy were not
purehased by the city, had he money
ne would not hesitate to purchnse them, and
his doin;Lr ^o was no business o( tlieirs.

A (lennan Caur The Mayor now slate?
that whether he did so or not was no business
of the council. The Mnyor denies having
anything to ilo with the negociation of the
debentures but he a^^serts his right to deal
with them after they are once issued, with
his own funds in any way he may see rit.
Had he staled soon the Friday night when the
matter was brought up by Mr. Hornain;^ he
should have thought very differently of it but
at that time he denied any tradicking in the
Clebenlures,bnt now it appears he is prepared
to assume the whole responsibilhy of the
transaction.

Alderman Bell said as the names proposed
to be put on the committee were objected to
he would withdraw them all. He cared not
whose names were on it, let all be the friends
of the Mayor if they pleased, but let them
have the Committee.

Alderman Thompson then asked leave ta
withdraw his amendment which being given
the original resolution Vas put and lost eight
voting for and seventeen against. The Coun-
cil then adjourned.

i i

il'l

» 1 1

1^ ^1

Toronto, 27th Jan., 1S53,
To i\s Editor of the Brilish Canadian,
8iR. — In the it ,iort of the proceedings of th«

City Council of Mvxnday evening last, the Patriot
has reported "Councilman Homain staled," he
had the authority of Mr. liidont. Cashier of the
15ank of Upper Canada, to st^ite fhcit the conduct
of Mr. Brll, Alderman for St. David's Waid was
disreputable, in makin?^ certain irHjniiin.s in refer-
ence to the £10,01)) tiansciction tht-n in quFStion.
As Kurh a declaration on the part of Mr Hidont
could not have been made wilhtiuth.J lound it
necessary to address to that Gentleman the fol-
lowing note ;

Toronto, 26ch Jan., 1852.
Thos. G. Ridout. ]':sq.,

Casf.ier, Bank of Upper Canada,

^ Sra^—In a discussion that took place in the
City Council on Monday eveninir last, Council-
man Romain stated that "you had aulhorized him
to charge me with disreputable conduct in having
made inquiries of you, as to who got £10,000 for
discounting the City Debentures.

It becomes my duty to ask yon, for self defence,
if you did confer such authority, and if you did,
that you will point out in what particulars I am
chargeable or liable to be stigmatized.

Yourobd't. Serv>(.,

John Bell.

MR. RIDOUT's answer.

Toronto, 26ih Jan., 1853.
Sir,— Tn reply to your note of this date, I beg
to info'-m you, that I have not authorized Mr. Re-
main to charge you with disreputable conduct as
you term it, neither am I aware that I have said,
or done any thing that could be so construed.
.1 remain, Sir, your obd't. Serv't.,

C^igned) •Thomas G. Ridout.
John 'Bell, E^-q.,

I ask you now to place the facts before the pub-
he, through the same channel that Mr. Romaioi
declaration \vas conveyed.

Your obd't ServH., Johk Bbll.