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 I 
 
 THE 
 
 CANADIAN PACIFIC 
 
 EAILWAY 
 
 / 1 
 
 AND 
 
 ITS ASSAILANTS. 
 
 LETTER FROM "MOHAWK." 
 
 LONDON r JANUARY 28Tir, 1882. 
 
ft' 
 
 THE CANADIAN PACIFIC RAILWAY 
 AND ITS ASSAILANTS. 
 
 The subjolnod Icltor is published and circulated by the person to 
 whom it is addressed, one who has a kindly recollection of many 
 happy days spent in Canada, and who would not willingly see 
 the credit of that country made a plaything for English bean and 
 bulls, and beasts of prey, to worry at their will. 
 
 What is advice to him, couched in general and almost con- 
 versational terms, may be of assiBtauoo to others. It will be 
 I'eassuriDg to those already interested, and it may clear away the 
 hesitation of the doubtful. The documents submitted for 
 " Mohawk's " opinion have been given a wide circulation, and 
 what harm they have been able to do, it is only a duty to try to 
 counteract. His letter is unaltered and unabridged, except 
 where private matters of no interest to the general reader are 
 touched upon. The name "Ishmael," too, is substituted for that 
 of the individual, to whom it is not thought necessary to give a 
 gratuitous advertisement. 
 
 An extract from VanUif Fair, a journal whose financial 
 article is always carefully written and to be depended on, is 
 added by way of appendix, with two other newspaper clippinga. 
 
 My Dear Majob, — You pay me the compliment of saying 
 that I am well-informed upon Canadian matters, and have had 
 so much experience of public men and things in the Dominion, 
 that I can give you an nnbiassed opinion on the real value of the 
 Canadian Pacific bonds, in which an old friend of yours at 
 Montreal, where you were so long quartered, is anxious for you 
 to invest. Ton send me his printed circular, and also, on the 
 other side, four or five copies of "Financial Notes," signed 
 *' Ishmael," and containing bitter attacks not only upon 
 the Canadian Pacific Syndicate, but on the Bank of Montreal, the 
 Marquis of Lome, and upon everything, in short, that is of Canad«k< 
 Canadian. I observe that yon at once hit the nail on tiie 
 head so far as this person is concerned. The pamphlet by 
 " Diogenes," also enclosed, is from a pen held in a more velvelj 
 
(4) 
 
 gloYO ; bat ooarso or fine, I snspcct both wriiora draw their ink 
 at the iame fountain of inspiration. I think I know " Diogenes," 
 who, at some risk of disclosing hia identity, has been fooliihly 
 tempted to swagger in French, borrowing the motto of his 
 pamphlet from the younger Dumas. I am saro I know 
 " Isbmael," for I have seen him a prisoner in the police-court 
 at Toronto. I am still confined to (he house with severe bron- 
 chitis, and as you ask me to go into the matter fully, for the 
 l)onefit of yourself and other friends at the Club, who hnvo 
 hitherto found Canadian investments a very profitable specula- 
 tion, I can give you a day, and endeavour, without any sacrifice 
 of time, to tell yon something of the Pacific Railway and its 
 assailants here. You Qiay make what use yon like of my letter, 
 but I would rather you withheld my name. The signature, 
 therefore, to this shall be a nickname which you knew right well 
 in days of yore when Mason and Slid ell were taken from tho 
 good ship " Trent." The incidents of our camping expedition will 
 never fade from my memory. Would that we were all young 
 again, but Anno Domini is an incurable disease. • • * * 
 
 Tn the earliest annals of railway history that I have ever 
 read, the story is told how one Nelson, known as " the blackguard 
 pitman of Callerton," undertaking to bully George Stephenson, 
 received so severe a thrashing at the liands of tho lathrr of 
 English railroads, that he ever afterwards left him severely alone. 
 The fatlcrdcmnlion of seventy years ago Avas, perhaps, the lineal 
 ancestor of the mnn now Hignin^^ himself " iRhmael," and 
 issuing a libellous sheet every week for purposes sufficiently 
 plain to the initiated. His object in attacking Mr. George 
 Stephen and his associates in the great undertaking knoAn 
 as the Canadian Pacific Railway, which will some day be an 
 independent lino from New Brunswick to Vancouver Island, is 
 only too evident. He cannot bo actuated by mere charity and 
 benevolence, for I am not aware that he has means wherewith to 
 pay tho piper in that rather exixniive rule. Such a course is at 
 variance, too, with his whole career, which I will sketch for you 
 by-and-bye. llo might bo actuated by a general notion of 
 revenge for various slights put on him in Canada ; but even then 
 his darts conld scarcely be so pointed or thrown so direct. 
 There is more animus than this in productions aimed at a schemo 
 in advance of its appearance in the London market. Only a 
 rival corporation could have tho interest to forestall ^fr. 
 Stephen, the president of tho road, who is daily expected 
 in Loudon. In time of pence they pi'epare for war. This 
 is no " uninspired dullard," though ho may belong to " the 
 tag and rag and bobtail of mankind." Ho has thrust his stick of 
 Bulphnr into many a nest he thought to smoke out, but fortunately 
 the unprincipled persons who can bo bought to wreck a concern 
 seldom stay bonght, and in the end are most expensive instru- 
 ments. There aro instances where they have been bought off, 
 and some expect to find their livelihood that way. Now, 
 
(5) 
 
 yott kaow liow ranch experlonco I have had of the 
 unscrupulous means adopted bj railways to overthrow a 
 rival. It is not many years ago that Sir Hugh Allan camo 
 to England for the purpoHo of floatinjj^ a company formed 
 to construct this very road. Uo was met with a flood 
 of vituperative brochures and hostile articles in the London 
 Press, and the doughty knight of the steamships had to saccumb. 
 Everybody knew that the Grand Trunk Company had prepared 
 this reception for him. They are now probabljr playing the same 
 game over again, and one of their henchmen is this " Ishmael," 
 whose skill in dirty work they have reason to know. The analogy 
 between the present attack and that of the bully pitman 
 is, in some degree, curiously correct ; bat it cannot bo carried 
 out to its most desii'able conclusion. Mr. George Stephen cannot 
 settle this bully with a licking ; and more is the pity, for he 
 deserves uo other or gentler attention. The worst feature I sea 
 in his manoeuvres is the plausible giving of his name and 
 address, which the unwary will take as evidence of his good faith 
 and trustworthiness; whereas an anonymous attack would 
 carry more weight in the circles where " Ishmael " is known 
 and appreciated. He writes perfectly conBdont that nobody will 
 think it worth while to sue him for libel, and he signs his namo 
 with the same iudifl'ei-once that characterises the superscription 
 of John Smith to an advertisement of the odourless removal of 
 nuisances. There are professional scavengers who work with 
 their coats on, and make a living less respectably than those who 
 sliovel in shirt-slcevcj. This ^'Ishmael" is the same man who is 
 now cutting such a ludicrous figure in the matter of Mr. Bourko 
 and the Turkish Bondholders ; but this is only one and the latest 
 of his many appearances as a professional obstructionist. 
 
 I am not surprised that yon do not remember Mr. Stephen. 
 When you wore in Canada he was climbing the ladder. He is a 
 self- made man, and not one of the pattern which was profanely 
 naid to relievo the Almighty of a groat responsibility. Born, I 
 think, at Ecclcfocchan in Scotland, the homo of Carlyle, ho 
 inhaled, with his native air, not a little of that famous man's 
 characteristic intolerance of sham.s, and strong, untiring tho- 
 roughness. '* Ishmael " twits him with " obscurity," it is true; 
 but his obscurity in Canada consists in the fact that in a country 
 stretching from ocean to ocean, every business man knew his 
 name before he dreamed of being associated with the Canadian 
 Pacific. When he accepted the Presidency of the Bank of 
 Montreal, it was universally recognised as a good appointment. 
 Possessed of extraordinary shrewdness and energy, ho had, by 
 dint of untiring activity, while yet in middle life, risen to be one 
 of the merchant princes of the Colonies. Where could a fitter 
 man have been found to head the great enterprise with which his 
 name will now for ever be associated ? If the selection of a 
 mxn had been left to the associated Boards of Trade of all the 
 towns in Canada, no name occurs to me that could for a moment 
 
(«) 
 
 have iakon precedence of his. A strong man Hhonlderln^ hin wny 
 through an nnsjmpathetic world mnni mnko enemieH more or less. 
 Bat, despite this, I never heard or read anj personal abuRO of Mr. 
 Stephen, and both political parties in Canada have treated him 
 -with nnnsnal fairness and consideration. All this in his fav^nr. 
 His aaaociates are just sach men as their leader would ho likely 
 to select. Messrs. Mclntjrro and Angus also hail from Scotland, 
 and hare made their way to the top of the tree in Canada ; the 
 one in trade, the other in banking and finance. They are clever, 
 hard>headed men ; and the Americans who go to compose the so- 
 called Syndicate are all necessary and carefnlly-chosen motors in 
 the administrative machinery of this gigantic concern. Perhaps 
 obacnrity consists in the absence of a Lord-knows- who for chair- 
 man, and a few titled nonentities for directors, after the manner 
 of too many English companies. I think you will agree with me 
 that brains and commercial standing are better qualifications for 
 a Board of Management than a flat-catching handle to one's name 
 and the unotnons reverence of snobs. I should add that Mr. 
 Stephen is no stranger in London society, his daughter having 
 married a son of Sir Stafford Northoote, leader of Her 
 Majesty's Opposition. He is a remarkable man, and one who 
 deserves success, and is likely to command it. He is a modest man, 
 too, and one who does not court notoriety. But he has put his 
 name to the official memorandum of the Comp;^ny, which 
 accompanies the prospectus of the Land Bonds, and mast not 
 bo surprised at the question " Who is ho ?" being asked. 
 
 So'mnch for the personnel of the Syndicate. The value of tho 
 securities which they have offered in New York and Montreal is of 
 greater consequence, you mny think ; but you will agree with mo 
 that in all such schemes there is what insurance brokers c;vll " a 
 moral r'jk," and on this point it is always well to be satisfied. 
 They have had great experience in similar work, and are no 
 novices at it. In 18^9 these same men became the owners of the 
 St. Paul, Minneapolis, and Manitoba Railway, which they bought 
 chiefly from the Dutch proprietors. They carried out in this a 
 scheme of almost unparalleled magnitude for private individuals, 
 negotiating bonds to the amount of no less than eight millions 
 in New T^rk, and the undertaking has in every wny proved 
 an nneqnivocal success. If the Canadian Pacific ran through 
 American instead of British soil, I do not think there would bo 
 cause for the Syndicate ever to press their securities on this 
 market. And this is one reason why they should receive &ub- 
 stautial snpport in England when they do come here. 
 
 I am a profound believer in the future of Canada's great 
 North- West. Whether for the pasture of herds or the produc- 
 tion of wheat, there seem to me to be " millions in it." W^hen I 
 know that men of cnpital and practical experience like Cochrane 
 and Wiser have established ranches there for the breeding of 
 cattle, and have invested thonsands here in England in the purchase 
 of animals destined to found great families there of Shorthorns 
 
( 7 ) 
 
 and HeraPords, I cannot doubt tho sailability of tho oliiuato and 
 soil for thoir purpose. Evoiy breeder in England known Mr. 
 Cochrnno nnd his tribo of UuuliesHcs. Ho is a native and Sena- 
 tor of tho Dominion, has grown groy with years, and is only 
 to-day tapping a cask that hns been npening all these yearn 
 in a cellar at his very door. Mr. Wiser is no longer a 
 yonng man, and is opposed in politics to Mr. Cochrane. 
 These two gentlemen have put vast snms of money into their 
 ventures, and can be animated by nothing but tho idea that 
 they will pay. Whr.t Dr. Johnson called " the potentiality of 
 pfetting rich beyond the dreams of avarice " must alone have 
 influenced them, and actions speak louder than words. 
 Englishmen betray surprise that this agricultural puadise 
 should have lain undiscovered or unrecognised so many 
 years on the threshold of the old Provinces, and this begeta 
 some doubt of the stories told of its fertility and resources ; but, 
 if Mr. Cochrane had known ten years ago what he knows now, 
 and had been equally certain of the construction of a railway to 
 the Rocky Mountains, it may be argued that he would then have 
 done as he has dono now. What he did not know, living all his 
 life in Canada, was not likely to be known or actod upon herei 
 
 The ingenuity of the assailants, whose writings yon have 
 forwarded to me, is amusing. " Diogenes " — writing, by-the-bye, 
 with a very weak quill — I see, devotes himself to prove that 
 the railway must be a failure. "Ishmael" denies the fertility 
 of the 25 millions of acres which the Company have got from the 
 Canadian Oovemmeut as subsidy, and would, if he could, declare 
 that the 25 millions of dollars given them as additional botius is 
 counterfeit coin. Then " Diogenes " publishes in an appendix an 
 article from the Times of 27th October last, suggesting that some 
 day the products of tha Saskatchewan and Red River countries 
 may find their way to England by rail running north from 
 Winnipeg to Hudson's Bay, and showing a small saving effected 
 in mileage, as against the route vid New York or Montreal. 
 Verily this is going far to find a spoke to put in Mr. Stephen's 
 wheel. In this precious appendix is also reproduced an article 
 which I was sorry to see in the Standard. This reprints an 
 endorsation by the New York World of Professor Hind's strictures 
 on the North- West. Now, I happen to know all about this gentle- 
 man. Qniteau would call him a crank. At the time of the 
 Fishery award in favour of Great Britain he did all he could to 
 rouse the Americans to repudiation of it on tho ground 
 of its unfairness to them. But the snubs then adminis- 
 tered to him seem only to have whetted his appetite 
 for a fresh fouling of the nest which is his own, for ho 
 is an English Professor now residing in the Maritime Provinces. 
 It must bo nearly five and twenty years ago since I first saw 
 him. It was on the occasion of his return from this very North- 
 West country, and ho was delivering a lecture at Toronto— he 
 was then on the staff of a college there — in which he praised the 
 
pi 
 
 (8) 
 
 resources and oapftbilities of the country to the skies. la fuci, 
 he bored his audienoo wiili iho oxlravagauoo of bis utloraucus. 
 At that time be was also eugaged ia the manufacture of cheap 
 gaa under some American patent, and in the smell and smoko 
 resulting from that failure to enlighten the people he vanished 
 from Upper Canada. Of course, the Neio York World would bo 
 the Ychiole for libels on Canada in general, and on the zival to 
 the American Northern Pacific Road in particular. Thus has our 
 friend of the Standard been hoazod. All part of the same little 
 game. Have I dissected these insects sufficiently, or must I go 
 on to tell you that the Canadian Pacific Companjr has possessed 
 itself of existing roads in the Province of Ontario, and in con- 
 nection with them proposes to complete a road between Toronto 
 and Montreal, which will destroy tho monopoly hitherto pos- 
 sessed by the Grand Trunk for the carriage of goods and 
 passengers from Ontario to ocean ports ? Uinc illce lachrymce ; 
 that is whero the shoe pinches. 
 
 You ask rao about tho railway, but I think that is because 
 tho circular from your friend in Montreal hardly puts onu 
 matter clearly enough. The bonds now placed on tho market 
 there, and subscribed for by your old friend the Bank of 
 Montreal, are not railway bonds or debentures secured by 
 mortgage on the road, but are bonds issued in accordance with 
 the provisions of tho Act of Incorporation, and are amply 
 secured, in my opinion, by the Land Grant. The whole of this 
 grant is pledged for their redemption in fifty years, and for 
 payment of interest at 5 per cent, in the meantime. Every 
 precaution has been taken to securo investors, and I see 
 no loophole or weak spot. It is proposed to borrow twenty- 
 live millions of dollars on twenty-five millions of acres, and 
 these acres nro all, in the words of the Act, to be "suitable for 
 settlement." And so, depend on it, they are ; for how could tho 
 Syndicate be such fools as to take bad land where there is 
 plenty of the best at their service? Tho Government lands 
 in tho same locality are being disposed of at 2 dollars 
 an acre, subject to actual settlement. Now, what has made 
 the difference between to-day's value of these lands and their 
 value when " Ishmael " and Professor Hind, over twenty years 
 ago, visited the Bed Biver ten*itory ? Nothing, of course, but 
 the evidence of wiser eye-witnesses, the prospect of settlement, 
 and the fact of the railway being buUt. If this has been enough 
 to make them worth even 4s. an acre, what will they bo 
 worth as farming land when tho country fills up ? I remember 
 a similar land grant of alternate sections made more than 
 thirty years ago to the Illinois Central Road, whose stock 
 is now at 134. Land there in 1858 was thought well 
 sold at 15s. an acre. To-day that identical land is worth 
 £10. Wheat is a powerful magnet, and I have no doubt 
 thonsands of fSeurmers will find their way np West this year 
 from the older provinces, as well as from Great Britain and 
 
n 
 k 
 11 
 h 
 
 Irulund. My information from Canada is that the " boom " 
 iu Mauitob:% lands which orifi^iiii^tod laitt spring is as Ktron^ as 
 over, and overybodj is acqniriiig an interest — some in a townithip, 
 some in sections, and others in smaller lots. By the bye, you 
 should know that the milway lands of the Amorioan Northern 
 Pacifio lying iu what they call " the great gruin belt of the 
 Pacific slope " arc advertised at a uniform rate of lOs. an acre, 
 or more than doable the sum for which the lands of the Canadian 
 Pacific are to be pledged. 
 
 Sir Stafford Northcote's son, speaking at Exeter the other 
 day, said well that the North- West was a trcaaurc-chest, of which 
 the key had been mislaid till Mr. Stephen's Company found 
 it. There he just hits it, I think. As to the onanvcter of 
 the countrv, would you rather believe two men who "?nt there 
 when the journey from Montreal to Fort Garry and b' <c was a 
 distressing pilgrimage, occupying months, or people who havo 
 done the journey there and back last month w'th only one 
 change of railway carriage within ton days '^ au remeinhtr 
 when the Hudson's Bay Company were traders in ^ is and 
 feathers, and liicii' stock was all dovrn among the dcuu mim. 
 When they surrendered certain proprietary righid winch they 
 claimed over the North-West country, they took from the 
 Government £300,000 in money, and a proportion of all the land 
 surveyed — I think a twentieth. They are now iu effect rather 
 a lana than a trading company, and their £17 shares are ijuoted 
 at £27. Their lands are alongside the lands pledged for the 
 redemption of the Canada Pacitio bonds. 
 
 Canada's bold adoption of a protective tariff has so far 
 resulted well. The Conservatives thoi*e argued that the cir- 
 cumstances, geographical and commercial, of the Dominion, 
 made it impossible for Canada, on the borders of the Unitcil 
 States, to any longer provide a slaughter market for surplus 
 American manufactures. The prices of agricultural pro- 
 duce could only be sustained by the consumption of the 
 manufacturing classes. To prevent the extinction of the latter, 
 as also to raise a revenue commensurate with the require- 
 ments of the State, Protection was adopted. The result, sooner 
 than expected, has been an overflowing Treasury ; for the people 
 being well off, they can afford to import goods regardless of a 
 30 per cent. duty. Canada was never more prosperous, country 
 farmers and town operatives being alike well off, and able to bay. 
 In fact. Free Trade is all very well if you can get the countries 
 with which you principally deal to come into it with you. In 
 the abstract it is a very fine thing ; but even hero in England 
 concessions, which, like the handle of a jug, are all on one sido, 
 are beginning to be regarded by thoughtful persons as bene- 
 volences more appropriate to a past Quixotic era. In Canada — a 
 comparatively poor and sparsely-populated country, lying along- 
 side fifty millions of the cutest people on earth, since the abroga- 
 tion of the Beoiprocity Treaty, and the imposition of a high duty 
 
( 10) 
 
 in the United States, which 1ms brought into lifo ihousands of 
 home manufactures — tlioro vns nothing for it but retaliation. 
 Canada was swamped witii American surplus stock, and now all 
 she has to do is to see that she does not similfirly suffer from 
 ovor-prodnction within her own boundaries. 
 
 Speaking of the States, there is one matter on which I would 
 particularly warn you. You may have seen by a recent paragraph 
 in the London papers that the Americans claim nearly 100,000 
 people as having emigrated in the past year from Canada to 
 them. Now, I believe this to be gross and wilful misrepresenta- 
 tion. I do not know how many Americans came into Canada, 
 but certainly a very great number. The Postal authorities of 
 Canada and the States, when a reciprocal letter rate of postage 
 was struck between the two countries, must have calculated that 
 every letter written from one place to the other would be repre- 
 sented by one passing the other way. I think it is abontthe same 
 with passengers ; but Canada appears to have forgotten to add to 
 its immigration statistics the numbers of Americans coming 
 into Ontario at the Suspension Bridge, say, and passing out at 
 Windsor en route for Chicago. Nor has sho conn tod the birds 
 of passage coming in at both ends of the Canada Southern and 
 Grand Trunk Railways. The Americans have done this ; and, 
 considering that two-thirds of all the people who have gone into 
 Manitoba and the North- West have left Ontario either at Windsor 
 or Samia to pass through Uncle Sam's territory, and to reach 
 Winnipeg via the Pembina Railway, it is not surprising that their 
 touting statisticians at these points have been able and willing to 
 note an immense number of people passing from Canada into the 
 States ! I am in a position to know that this is the true explana- 
 tion of one other trumped-up charge against the prospects of the 
 Dominion. And, as Mr. Toole says, " It does make me so wild !" 
 As for the country being bankrupt, there were, it happens, fewer 
 failures last year in Canada, and for a less average amount, than 
 in any preceding year of this decade : the whole number, little 
 and big, being but 635, with an average liability of less than 
 £2,000. 
 
 To sum up, you cannot but know, after reading the fore- 
 going, that I advise you, without at present going into details 
 about the railway, to apply for the 5 per cent. Land Bonds. If 
 you wish it, I will, at some future time, tell you what I think of 
 the prospects of the railway. At present I will only say that no 
 Anglo-Canadian road now being worked in Canada must be taken 
 as affording the slightest indication of the probable outcome of this 
 road. 
 
 The Grand Trunk has been botched by English, not by 
 Canadian, mismanagement. The Great Western's opportuni- 
 ties have been lost in Kngland, not in Canada. The Grand 
 Trunk, as originally proposed by the Canadian Government, wps 
 a good road, and, built at reasonable expense, would have paid. 
 It was between Toronto and Montreal. The Grand Trunk, under 
 
( 11 ) 
 
 an English Board of Directors, took io itself, ciist of ^[oiilreal, 
 a poor and unreraunerative lino. To the west of Toronto it wrb 
 continued in a near parallel lino to tho Eiiglihh owned road — tho 
 Great Western. Thence, a lengthening chain of err-a's ; but these 
 were the first-sown seeds of tho nnprofitablo cnt-throat opjiosi- 
 tion which is in full blast to this day. Surely tho Grand Trunk 
 should be content with having posed all these years past as "' the 
 terrible example " in tho face of every Canadian who has had a 
 project to float in the English market. Its own pile of dirty 
 linen is huge. Sir Henry Tyler should bo ongfiged in washing it 
 at home, and not in challenging comment. But in his visits to 
 America he has learned a trait of the country. It is said that an 
 Englishman corrects his mistakes before he makes them, a Yankee 
 afterwards. Sir Henry is naturalising himself. He lives in a glass 
 house, of which half the panes have been already broken. Tho 
 other half are bo exposed that a policy of conciliation would 
 become him, or, at least, one of armed neutrality. He cannot 
 afford to drag his coat-tail about asking somebody to ti'oad on it. 
 In contradistinction to the absurd, impossible, and ruinous system 
 by which English railways worked in Canada are controlled in 
 London, the Canadian Pacific will be managed in Canada by 
 Canadians, and before a signal-box is put up at a station it will 
 not be necessary to spend its cost in cable messages to and fro. 
 It is sometimes hard and expensive for a manager in Canada 
 to drill a hole by cable-wire into his President's head in England. 
 The cost of the road per mile will be about a third of the capital 
 nov7 chargeable to each mile of tho Grand Trunk Railway, and 
 this involves a prodigious difference in the net earnings required 
 to pay a dividend. Nothing, therefore, can be predicated of Mr. 
 Stephen's line on conclusions drawn from the history of existing 
 roads in Canada ; least of all from the Grand Trunk narrative. 
 Sir Henry, when he arose from tho perusal of Mr. Alexander 
 McEwan's recent reply to him, must have said to himself, " I am 
 Borry I spoke." There is no good substitute for wisdom, but 
 silence is the best that has yet been discovered- Every time ho 
 encourages lan assault on Canada he sounds his own death-knell. 
 He was once a Royal Engineer, and must have heard that men 
 in that line of business are sometimes hoist with their own petard. 
 
 When "Ishmael" stoops to mix up Lord Lome's name with 
 tho Syndicate, and to accuse the correspondent of the Times of 
 having been bought by Mv. Stephen to say that the Great Lono 
 Land was flowing with milk and honey, he steps into a congenial 
 gutter, and may bo left there. Lord Lome has said nothing 
 which his predecessor. Lord DufFerin, did not say in even more 
 glowing terms. Lord Dnfferin is now with " the sick man," but 
 nobody knows better than he that a doctor could now look his 
 old friend Canada square in the face, and see no money in his 
 rcjient ! When the detractor derides everything Canadian 
 AS unprofitable or dishonest, he is, you have good reason to 
 know, lying to too largo an order. The Oil Company he 
 
ill 
 
 ( li ) 
 
 speaL^'s of was, no doubt, a swindle, and there may have been 
 other wild-cat schemes started here by designing adventurers. 
 Bat, on the other hand, numberless of the best investments made 
 for income by men in the army, and others with a few thousands at 
 their command, are in Canada. All the loan companies there have 
 borrowed money at cheap rates here or in Scotland on their own 
 debentures, and I know of none in default. The Bank of Mon- 
 treal pays 10 per cent, to scores of English shareholders, other 
 banks out there also having English addresses ou their stock 
 lists. The English insurance companies must bo doing business in 
 Canada for profit, and not for amusement. A very large sum has 
 been invested by private hands in mortgages there at high rates 
 of interest, which do not, as a rule, bear a bad name. The 
 chief Canadian cities have borrowed nionoy hero for municipal 
 purposes. Let us see how these securities stand in the Share List : 
 — Toronto, 116 ; Montreal, 104 ; Quebec, 111 : and soon. Canada's 
 public debt is none too large for her infinite resources, and has 
 all been incurred for public works and the development of the 
 country. I presume the English people know this, or her 
 
 4 per cent, stock would not now be quoted here at 106, and her 
 
 5 per cents, at 114, which is about the price to which I expect 
 to see the Railway Laud Bonds go when the issue of the autho- 
 rised amount has been exhausted. 
 
 If Canada is at present a borrower, her accumulated 
 Avealth shows a marvellously-progressive rate of increase. 
 The paid-up capital in her chartered banks reaches a 
 total of nearly thirteen millions of pounds sterling, and, 
 as with America, the day will soon come when she will take 
 the lion's share in her own commercial ventures. I know a 
 Scotch company, by-the-bye, that has already made cent, per 
 cent, on moneys wisely invested on speculation in Manitoba 
 ]:inds ; and what I know as a fact is, that Mr. Sandford 
 Fleming, the well-known Government engineer, who ran 
 the line of the Canadian Pacific, was among tho first 
 to invest the spare savings of a life-time in these Land 
 Bonds about which you inquire. You must remember what a 
 wonderfully well-managed corporation the Canada Life Company 
 of Hamilton is. There is, perhaps, in the world no company 
 commanding mora respect and confidence, or which is more 
 practically successful. This company has taken half a million of 
 dollars of the Canadian Pacific Land Bonds. Even that extra 
 canny financier, Senator Macmastcr, has changed tho Govern- 
 ment securities held by the Confederation Life Company 
 for these Land Bonds. Besides this, I am told of many 
 private individuals, but good, judges, -including Ilobctt 
 
 H n, of Quebec, who have subscribed for amounts of 
 
 £10,000. Sir Alexander Gait, Canadian representative in Lon- 
 don, has just returned to London from a tour of inspection in 
 tho North 'West, and I am told he is so well satisfied that he has 
 established two of his sons there already. Now, it must bo 
 
( 13 )• 
 
 remembered Sir Alexander was not in favour of the Canadian 
 Pacific once on a time. The bonds conld scarcely want better 
 backing than these instances ; and in view of this practical cor- 
 roboration of mj opinions, I need not, perhaps, have dwelt so 
 much on other matters brought under review. 
 
 I will only add that parties purchasing tracts from the Syn- 
 dicate are paying for them with the Land Bonds, as the papers 
 yon send mo explain. The Trustees cancel those so pni<i in, 
 which, of course, makes the remainder so mnch the better. I 
 hear of one operation of this kind to the value of £G0,000 sterling 
 by one single association of gentlemen who Avcnt away toj^cther 
 last autumn, and returned greatly impressed with the future of 
 the North- West. The testimony, in fact, all tends one way, 
 and Thomas Didymus could scarcely fmd a flaw in it. 
 
 A Yankee philosopher has said that there is no way to 
 safety but in constant distrust, and your anxiety about your 
 Canadian investments is natural enough. I have not said 
 the tenth of what it was in my mind to tell yon. " Jshmael's " 
 history from the time that be went to Canada as clerk 
 to an English delegation, with episodes of his career at Toronto 
 and in the West, would only bo of service to you as showing tho 
 little importance to be attached to his denunciations of Mr. 
 Stephen's road. On this head you probably require nothing 
 more. But I shall have pleasure at some future time in answer- 
 ing any other inquiries which you may address to me. Mean- 
 time I rctui'n you your documents, and remain yours verj' faith- 
 fully, 
 
 MOHAWK. 
 
 London, January 20, 1882. 
 
•(U ) 
 
 ATPENDIX. 
 
 CANADIAN PACIFIC RAILWAY. 
 
 (From Vanity Fair, January 28th.) 
 
 We have before us the prospectus and official memorandum of this 
 Company ; and though there has been, as yet, no actual placing of the 
 securities of the Company upon the London market, they are obtainable, 
 as the pi-ospectus informs us, at the agency of the Bank of Montreal here, 
 -where provision is also made for payment of interest. It is well known 
 that the Bank of Montreal has itself in Canada subscribed for a large 
 amount of the Company's five per cent, land bonds, and now offers them 
 for sale at par. As an evidence of value, where the case is best known, 
 it is announced that the Canadian Government takes these bonds by way 
 of deposit from English Insurance Companies doing business in Canada 
 and obliged by law to deposit in the Colonial exchequer certain security 
 for the benefit of Canadian clients. The lands on which investors are 
 asked to lend their money are the much-heard-of acres of the so-called 
 Fertile Belt, lying between the new prairie Province of Manitoba and the 
 Kooky Mountains. The documents before us speak highly of the agri- 
 cultural capacity of the country, but not too highly, judging from the 
 reports brought back by many independent witnesses from the scene of 
 action, who have been over there during the past year. 
 
 Care must be taken to distinguish these bonds from ordinary railway 
 bonds secured by mortgage on a railroad. The road may be a success or 
 a failure. These particular bonds n,re not dependent for their ultimate 
 value on the financial success of the road. The concession in all comprises 
 twenty-five millions of acres, aud on it land bonds to the amount of 
 twenty-five millions of dollars — or one dollar per acre, its value as wild 
 lands — are to be issued. There is abundant evidence however that the 
 road must be built, and will be built, west from Winnipeg, the capital of 
 Manitoba, through a level and easily-traver&ed country, to go a distance 
 of 800 miles — that is, to the limit of what, for present purposes, may be 
 said to bo the famous north-west wheat-growing district. This is the 
 territory visited by the deputation of Scotch and English farmers in 1880, 
 and since that time thoroughly explored and surveyed, and made the 
 medium of immense transactions by Companies and individuals with a 
 view to settlement at a much higher rate than one doUar per acre. 
 Whether eventually its products come to Europe by way of Hudson's 
 Bay — a project first broached in this journal several years ago — or by the 
 highways on land and ocean now in use, good judges believe that a new 
 granary is being opened for English consumers, of which it is almost 
 impossible to exaggerate the magnitude and importance. That the lands 
 offered as security by the Canadian Pacific Company are good value may 
 be inferred from one of the terms of their bargain with the Government 
 — namely, that the whole twenty-five millions of acres constituting their 
 land grant were to be fit for settlement. It is impossible to conceive 
 therefore that they have chos«n or accepted barren and indifferent landi. 
 
(15 ) 
 
 for groat as it sounds in En^libh earn, twonty-fivc nulliont} of acres hy 
 no meatm rcprusonts tho uinjority of fertile acres within the district iu 
 question. 
 
 In considering those land bonds as an investment it should be carefully 
 noted that at prCdent we are nut dealing with the railway as such, but 
 merely with a Land Company. The prospects of the railway, wo believe, 
 are excellent, but once that part of the road is built and worked which 
 passes through the territory in question, the alleged difficulties of con- 
 struction in British Columbia, to the west of the Fertile Belt, and north 
 of Lake Superior, to tho east of it, need not be noticed either for refuta- 
 tion or corroboration in connection with the land bonds. For what it is 
 'worth, the investors in these bonds will have of course the Company's 
 covenant, and will so far be interested in its success ; but what they may 
 implicitly depend upon is the actual and intrinsic value of the lands con- 
 veyed to trustees for their benefit. It is curious that in advance of any 
 attempt on the part of the Company to float its land bonds on the 
 London market, determined and organised opposition has been shown to 
 them, with a view, no doubt, to keep them away, but professedly in the 
 interest of the public. This is indeed extraordinary philanthropy on the 
 part of a self -elected Salvation Army, and would generally be taken as 
 evidence of a self-interested motive on the part of the opponent ; perhaps 
 an American rival ninning on a little lower parallel of latitude, or per- 
 haps an Anglo-Canadian line, with American connections, jealous of a 
 road which will be a competitor for the carriage of cereals from and 
 through the Province of Ontario to the sea-board, and of European 
 imports and immigrants tho reverse way. It is not worth while discussing 
 the how and the why of this little plot ; but we say emphatically that, 
 other things being equal, there is no reason why the British public should 
 not support a road which will be a trans-Continental highway on British 
 soil from the Atlantic to the Pacific. London, at any rate, should not 
 be made the arena for American intrigue against what is in one sense a 
 great Imperial project. The building of this road was a condition of the 
 Confederation, which included the Pacific Crown Colony of British Colum- 
 bia, and was known to bo so by the English Parliament which in 1867 
 passed the Act of Union. Subsequently Lord Carnarvon decided that 
 Canada was obliged to go on at once with the construction of the roadf 
 and both parties in Canada are pledged to its completion. The Govern- 
 ment of Canada has presented tho Company with twenty-five millions of 
 dollars in cash, the same number of acres, and more than the same 
 number of additional millions of dollars in the shape of 500 miles of road 
 completed by the Government through tho most difficult and least pro- 
 fitable parts to be traversed. The Company therefore has a considerable 
 bonus to start with, besides a proprietary whose own capital is understood 
 to be large. A fact in favour of the Company is that the Bank of 
 Montreal should have taken a large quantity of the land bonds. There 
 are few stabler fin .,ncial institutions than this, and only two or three 
 banks in the world with a larger paid-up capital and reserve. Its shares 
 are at a premium of 100 per cent., and very many of them are held in this 
 country. 
 
 CANADA V. THE UNITED STATES. 
 
 (From the Qlobc, London, January 28th.) 
 
 Our American cowsins have been inclined to regard with cynical com- 
 placency the position of dependence on foreign supplies of the necessaries 
 of life in which that country is placed. Our necessity, they consider, is 
 their opportunity, and undoubtedly the enormous quantity of food stuCfa 
 which this country has imported from the United States during late 
 years has been the means of enriching that favoured land to tho extent 
 
(16) 
 
 of millions sterling. But a oompeiitor, whom the {Mople of the States 
 tvill not be able to ignore much longer (states Iron), is being now rapidly 
 deyeloped in the shape of the Tast north>westem districts of Canada. 
 Ez'QoYemor Se7moar« of Kew York, has issued a note of warning to his 
 countrymen, bidding them beware of the action of this new factor 
 upon uie TOK>blem of the international commercial poli<7 of the three 
 nations. The inhabitants of the United States will soon be no longer 
 able to call their country, as they are so fond of doing, " the granary 
 of the world;" for according to this authority, there is a tract of 
 land in the north-west of British America, which is capable of producing 
 as much wheat as all the countries bordering on the Baltic, the Black Sea, 
 and the Mediterranean combined. When the CSanadian Pacific Bailway 
 is completed, this territot]^ will be brought within a distance of Liverpool 
 600 mues less than any point in Dakota, whilst the greater economy used 
 in the construction of the line will enable lower freight rates to be 
 accepted. Ez-Gbvemor Seymour is not at all likely to exaggerate matters 
 to the prejudice of his own country, and it will be matter for congratula- 
 tion if Englimd is ever able to benefit a colony of her own by drawing f k-om 
 it the supplies of wheat for which she has had, hitherto, to look to the 
 United States almost ezdudrely. 
 
 (From recent correspondence of the Olohe (Toronto), a paper 
 bitterly opposed to the Canadian Pacijio Bailway Company.) 
 
 *' Farmers who took up land in Dakota (the territory adjoining Manitoba) 
 in 1879, at one dollar and a-half, oomd sell out to-day at twenty or 
 thirty dollars an acre, so great is the demand for farming properly in that 
 territory." 
 
 Proceeding then to call the Syndicate a large monopoly, and 
 to point out the magnitude of their subsidy and other facts, 
 -which all go to prove the goodnees of its land bonds, the cor- 
 respondent naively Bays : — 
 
 " Any sane man would suppose that when the Government voted away 
 as a bonus the sum of 25 mubons of dollars in gold, 25 millions of acres 
 of land (well worth to-day one hundred millione of dollars), handinsr over 
 about 850 miles constructed and in full working order, allow material 
 for construction to be imported free of duty, and exempted the road-bed, 
 rolling stock, &c., from taxation for ever, and giving thorn the line in 
 perpetuity, that enough had been done by way of bonus, without locking 
 the door of tbis Continent against the possibility of competition to carry 
 the farmers' products to the sea-board. 
 
 Verily, the Toronto Globe famishes their enemy with the best 
 possible certificate for its purposes ! 
 
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