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GREA.T WESTERN RAILWAY 
 
 OF CANADA. 
 
 I THINGS NOT GENERALLY KNOWN IN ENGLAND: 
 
 OB 
 
 THE TRUE POLICY OF THE COMPANY EXPLAINED 
 
 By H. BOWLSBY WILLSON, 
 
 OF HAMILTON, CANADA. 
 
 LONDON: 
 EFFINGHAM WILSON, ROYAL EXCHANGE. 
 
 1860. 
 
 »fi& 
 

i 
 
 
 &BMT WESTEM EJLIIWAT 
 OF OAITADA. 
 
 The following statement of the charges alleged to bo 
 capable of substantiation, is laid before the Shareholders 
 with the view of enabling them to decide upon the ex- 
 pediency of causing an investigation to be made into the 
 Company's affairs and the general policy of its administration. 
 It may bo premised that any investigation, in order to be 
 satisfactory, and calculated to test the honesty and competency 
 of those entrusted with the local or general management, 
 must go back at least as far as the English connection with 
 the Line. 
 
 This connection commenced In the winter of 1851-2, and 
 led to the appointment shortly after of Mr. C. J. Brydges to 
 represent the English interests in Canada. In accordance 
 with a previous understanding, that gentleman upon his arrival 
 in the Province was appointed Managing Director. Although 
 other gentlemen have from time to time been sent out to aid 
 Mr. Brydges, he has always been sustained by the London Direc- 
 tors who have held the controlling power in this country. So 
 far, therefore, as the local administration of the Company's 
 affairs is concerned, he must be held mainly responsible. It is 
 true that he has had associated with him a local Board ; but they 
 have generally been his nominees, and in 1854 or 1855 when 
 three, or four of his co-directors, ventured to express views of 
 their own respecting the policy of the Company, they were 
 summarily ejected at the next election by Mr. Brydges, and 
 more convenient men were put in their places. 
 
The first charge to be inquired into relates to the manner 
 in which the settlement with tlic original contractors was 
 effected. 
 
 1. It is alleged that large sums of money (amounting in 
 the aggregate to over £1.50,000) were paid to tl»e contractors, in 
 the shape of bonuses in order to procure the opening of the 
 main line a few months before the time specified in the agree- 
 ments. 
 
 2. That the main line was in consequence opened for 
 traffic in so incomplete u state, as to have caused an immense 
 loss of life and destruction of rolling stock. 
 
 3. That the money so paid by the Managing Director 
 was paid not only without vouchers from the chief Engineer, 
 Mr. J. T. Clark, but in opposition to his written protest, as 
 well as that of some of the local Directors, who afterwards 
 received their conge. 
 
 4. That as the result of these proceedings the contractors 
 not only received verj'- large sums of the Company's money 
 without giving any value for it, but were discharged from their 
 obligations to complete the line in a fit and proper manner for 
 traffic. Hence the Company was obliged to expend heavy 
 additional sums to finish works for whicii the contractors had 
 been paid, a circumstance which, if true, will in some degree 
 accoimt for the fact that tlie Great Western Railway of Canada 
 has cost nearly twice as much per mile as the Grand Trunk 
 and other lines traversing similar districts of country. 
 
 II. 
 
 It is charged that the Managing Director is responsible 
 for the construction of the two Steamers on Lake Ontario, the 
 Canada and America, which caused a loss to the Company of 
 about £100,000, and that he sold them to a speculator in 
 Detroit, and received in payment less than :640,000 of the 
 shares of the Detroit and Milwaukie Kailway , at a time when 
 those shares possessed little, or no market value, and which 
 are now wholly valueless ; and, further, that the coal neces- 
 sary to take these Steamers to New York, where they were sold 
 for nearly £40,000 in cash, was advanced^out of the Conapany's 
 funds. 
 
iir. 
 
 It is charged that the Managing Director (wIk) holds tlic 
 
 i)roxics of the London Directors, which give hiui and the 
 ^'inancial Director in Canada the entire control at the local 
 Bocird) has from the beginning made it his policy to induce 
 the proprietors to construct, purchase, and lease branches and 
 connecting lines, which tlie experience of this country ought 
 to have taught liim was subversive of the best interests of the 
 Shareholders ; and that this erroneous policy has been sanc- 
 tioned to a large extent by the present London Directors, as 
 in the case of the Sarnia Branch and the Detroit and Mil- 
 waukee Railway in Michigan. 
 
 1. The first evidence of this policy is to be found in the 
 agreement sanctioned by Mr. Brydges in 1854, for the pur- 
 chase of the Erie and Ontario Kailway, a short line ot 17 
 miles, crossing the Great Western near the Falls of Niagara. 
 Fortunately the proprietors were saved the outlay of over 
 £150,000 by the rejection of this agreement on the part of the 
 English and Canadian Proprietors ; and the soundness of their 
 decision has since been tiiUy verified by the circumstance 
 that the line was wholly worthless as an investment. 
 
 2. It is charged that the construction of the Sarnia and 
 Guelph branches, and the loans to the Detroit and Milwaukee 
 Company are tlie result of this erroneous and dangerous 
 policy, which has swelled the construction account by nearly 
 a million of pounds, or a sum equal to about 30 per ceri. of 
 the whole paid-up share capital. 
 
 3. That these brancnes can only be operated at a loss 
 to the Company, leaving the small incidental and doubtful 
 advantage of a slight increase in the traffic upon the main 
 line, which cannot for a moment counterbalance the direct 
 loss and enormous addition made to the capital account. 
 
 4. It is charged that the manner in which the loans 
 raised for the Detroit and Milwaukee Company in this 
 country, both from the Great Western Company and from 
 its Shareholders and the public has been higiily objectionable, 
 to use the mildest expression.* 
 
 * If the Committee of Inquiry, to the appointment of wliich the Directors 
 have assented since the above was in type, or if any Shareliulder, or Share- 
 holders, will cause this question to be properly siited in the courts of law, the 
 writer has been advised, that certain parties now holding high positions in this 
 country will be compelled to make restitution of very large sums of money 
 obtained in the 8hai>e of bonussej aud commissioas. 
 
6 
 
 IV. 
 
 The unsatisfactory manner in which the financial etato- 
 mcnts of the Company are made up and presented to the 
 Shareholders is a matter calculated to throw suspicion upon 
 their accuracy. This circumstance of itself is, in the judg- 
 ment of many persons with whom the writer has conversed, 
 BufBcient to demand tlie appointment of a committee of 
 inquiry. 
 
 With regard to these items, it has been declared by well 
 informed persona that a large proportion of them ou|jht to have 
 been long ago written olf as woithless, instead of being con- 
 tinued from naif year to lialf year, as available assets. Some 
 of these, such as "Debts clue the Company," ** General Stores, 
 (including Coal and Stationery) " a singular combination of 
 items, "liails on hand on 31st July 1859," "Municipal 
 Debentures," " Detroit and Milwaukee stock and interest, " 
 ** Interest due upon loan to Detroit and Milwaukee Company," 
 are believed to be, to a large extent, purely imaginary as 
 regards their value. 
 
 Although it is represented in the Directors' Report for the 
 half year ending the 31st July last, that the Company had 
 then on hand rails of the value of £82,000, it is now asserted 
 by well informed parties that there is not a sufficient supply in 
 the possession of the Company in Canada to keep the Ime in 
 repair for six months. But it is not at present necessary to 
 enter further into these details. They are only referred to in 
 order to point out the necessity for investigation. It will be 
 interesting to learn by what ingenious process the Directors 
 will explain this matter in their forthcoming Report.f 
 
 
 t Since the text waa in tjpo tlie Directors' Report fo? the last hnlf year lins 
 been received. In this, the item of rails on band 31st January last is set down 
 at £67,710. This amount shows a redoction in the stock of no less than 
 £34,521. The Engineers' Statement, at page 24 of the Directors' lleport, 
 accounts for only 28,199 dols , equal to about £5,700, leaving a bnlanco of 
 nearly £29,000 to be accounted for, according to the Directors' own shewing. 
 Have the Directors been speculating in rails, or hale they been so put about for 
 money that they have been cunipelled to sell £29,000 worth of rails, in order 
 to pay a dividend ? Wliat will the Shareholders say, if upon a proper valuation 
 of old and new rails " on hand " it is found that this item o( £67,719 must be 
 cut down to something like twenty-five or thirty thousand ? This rail question 
 must be carefully looked into. The proprietors will do well to look over the 
 report of the Chief Engineer, Mr. Reid, upon whoss representations every 
 reliance may be placed. 
 
7 
 
 V. 
 
 It is charged that, notwithstanding the unfortunate result 
 of tlie steam-boat speculation upon liakc Ontario, into which 
 the Company was drawn by the Managing Director, in his 
 capacity as chief agent of the Enj^lish proprietors, this gentle- 
 man, jointly with Mr, Reynolds, the other English Director 
 in Canada, and the Company's chief agent in the United 
 States, a Mr. Julius Movius, have entered into a large private 
 speculation in the same description of property on Lake 
 Michigan. This fact is said to be admitted by the London 
 Directors. It appears that these parties are the chief, if not 
 the sole owners of the steamers Detroit and Milwaukee. 
 These steamers were built, as the Sliarcholders, perhaps, 
 already know, to form what their owners (it must be pre- 
 sumed jocularly) c«ll the ferry across Lake Michigan, where 
 it is as wide as the Channel between Southampton and 
 Havre. 
 
 Without stopping to discuss the gross Impropriety of the 
 Company's servants embarking in large private speculations 
 of any kind, which might lead to the neglect of their em- 
 ployers' interests, it becomes proper, in this instance, to point 
 out the direct injurious consequences which have resulted to 
 the Shareholders in the Great Western of Canada Company. 
 
 In order to make this important question the more clear, 
 it is requisite to state that the Great Western Railway derives 
 by far the largest proportion of its through traffic from its 
 great allies, the New York and Michigan Central Railway Com- 
 panies, which form connections with it at its extreme Eastern 
 and Western termini. These Companies are, to some extent, 
 composed of the same set of proprietors, which makes their 
 interests nearly identical. Upon the organization of the Great 
 Western of Canada, these powerful corporations, being anxious 
 to secure its early construction, in order to make it the con- 
 necting link between them, subscribed and paid up 800,000 dols. 
 of the Canadian Company's stock. Hence it may be inferred 
 that the interests of the three Companies, as regards through 
 traffic, were perfectly identical ; indeed, it is only necessary to 
 refer to a map, to see at a glance that such is the case. In 
 connection they form the line, unbroken by lake navigation, 
 having the best gradients for cheapnet^s and speed in operation 
 between the great American metropolis, New York, and the 
 Jeemiiig West. It has, therefore, always been obvious that 
 
8 
 
 tlusc lines nliould be opL-iAtiMl in tlio most |H*rt(;i't liarinony 
 und good faith. That tmcli has not been the cam', the writ«*r 
 huH ill liis |)<),-<Ht'H8ion huc.Ii rvi(h'ni;e a« can nciithcr be (h-nied 
 nor refuted, and whicli he is prepared to lay before a Com- 
 mittee appointed by the Siiareholders. 
 
 The cause of thirt want of harmony will be found in the 
 mifortunate policy of tin; Directors, which hiia led to the 
 taking up and working of the Detroit and Milwaukee, as part 
 and parcel of the Great Western Line The more thoroughly 
 to identify the two Companies, the Directors, or a portion of 
 them, both in England and Canada, have acce|)ted seats at the 
 Detroit Board, and the (Jreat Western Managing Director 
 has become its President. In furtherance of this plin, the 
 two English Directors in Canada, as already stated, have 
 become personally interested, ( it is to be assumed with the 
 approbation of their co-dinx'tors,) in the steamers forming the 
 connection across Lake Mieliigan between Grand Haven and 
 Milwaukie. 
 
 It will thus be seen tluit whilst it was tlie true policy of 
 the Great Western Company to do nothing to damage the 
 interests of their <ireat American allies, (the Ncvv York and 
 Michigan Central Companies, ) it has become the direct 
 interest of the Canadian Managers to divert from the Michi- 
 gan Central Line and ovor the Detroit and Milwaukie, all the 
 traffic in their power, in order to give employment to their 
 steamers. 
 
 This statement requires no elaboration to carry convic- 
 tion to the mind of every one interested, and whose interests 
 have not become complicated by investments in the Detroit 
 and Milwaukee Company, that a change of policy is urgently 
 required. The effect of the present state of things will be, 
 speedily to alienate the best allies of the Great Western, and 
 drive tnem into affording material aid to a competing line 
 through Canada, for which a charter has already been granted 
 under the name and designation of the Niagara and Detroit 
 Rivers Company. That there is great danger of this, there 
 cannot be a doubt on the minds of those who are fully 
 acquainted with the critical position of matters in America. 
 
 It is almost too obvious to require remark, that, should the 
 connecting link between the two great American lines already 
 mentioned, be supplied by one of their own gauge thirty miles 
 shorter, and having easier gradients than the Great Western, 
 the latter will be cut off from nearly, if not all its through 
 
 I 
 
(» 
 
 trafBc, s\\u\ will liiwo to rely wholly Ujxm it.'« way Idislncss, 
 and what it can draw tVom thr Detroit and Milwanki'f line. 
 in this ('asc, (Jrcat West(!rn sharrs will he irn'tri('va))!y worth- 
 less, I'Wvn now, it is intiniatr*! that the New York and 
 Miehi^aii (!entral (Jompunies are littini^ out their lleet of last 
 and splendid steamers on Lake Krie, wiiieh have been lyin^ 
 idle tor some years, in order to place thmi on the route be- 
 tween Buffalo and Detroit. These vcssids, the linest and 
 largest on the Great Lak»'s, are to form a nightly line each 
 ■way, and formerly eonstitutiMl a t'avorite me.ins of night 
 travelling during the summer months. Should this intimation 
 be carried into effect, although it nuiy not j)rove to be of any 
 advantage, to the American C(Mnpanie8, the Great Western will 
 certainly lose during the coming season a very considerable 
 proportion of their through passengers and freiglit traffic, 
 which constitute the hest l)aying ]»ortion of its business. 
 
 There arc many other highly im])ortant considerations, 
 which ^vill merit the attention of an investijiating committee, 
 to which it is unnecessary j)articularly to advert in this com- 
 munication. One of these, however, mny be mentioned. By 
 the resolution of the proprietors authorizing the Directors to 
 grant loans to the Dc>triot and Milwaukee Company, it is 
 expressly stipulated that such loans sliall only be granted 
 upon " sullicient security." It will therefore Le a question for 
 the shareholders to consider and ascertain whether the Directors 
 have complied with these requirements and conditions. 
 
 The writer has now summed up the principal matters 
 relating to the administration of the Company's funds, and 
 what he conceives to be the erroneous policy of the Directors. 
 But there arc many others of minor importance which would 
 no doubt occupy the attention of an investigating Committee. 
 Those, however, whicti he has enumerated, are susceptible of 
 proof before a Committee possessing powers to examine the 
 Company's books and servants, or before any tribunal — such 
 as a rarliamentary Committee in Canada, authorized to send 
 for persons and papers. In prepaiing the foregoing statement, 
 the writer has endeavoured not to mix up his personal affairs 
 with those having greater interest for the proprietors. He 
 cannot however, conclude without making some allusion to 
 the virulent personal attacks which have been made upon him 
 through the well known organs of the Company in this 
 Country as well as in Canada. These slanderous attacks are 
 made in consequence of the issue of a pamphlet two or three 
 
10 
 
 days before tlie last half-yearly meeting of Shareholders, at 
 the London Tavern, entitled " A few Faets Relative to the 
 Present Position, and Management of the Great Western 
 Railway of Canada. " Having regard for my good name and 
 being wholly uneonscious of having ever knowingly injured 
 or attempted to wrong any one to the extent of one penny^ I 
 felt it incumbent on mo to reply to these false accusations. 
 Some of these replies have appeared in the columns of 
 Herapath's Journal, and tlie Morning Chronicle, and in the 
 local Journals of the Province. Such gentlemen as may not 
 have liad the opportunity of reading those answers, and wiio 
 will take the trouble to do the writer justice, arc requested to 
 turn to appendix No, 2 hereto- where a few extracts are given, 
 touching the only speciiic charges made against him by the 
 Great Western officials. If personal matters have become 
 unnecessarily mixed up in these discussions, no one can for a 
 moment lay the blame to the charge of the writer, whose 
 efforts to establish a sound policy, and judicious system of 
 Management for this lar^c [)roperty, he trusts will ultimutely 
 be appreciated by the proprietors. 
 
 London, 24th March, 1800. 
 
 APPENDIX No! I. 
 
 THE VALUE OF THE DETROIT AND mLAVAUKIE RAILWAY. 
 
 " The favorable comparison in the milage receipts thus 
 exhibited by this railway, is owing to the traffic derived from 
 its connection with the Detroit and Milwaukee Line, wliich 
 has added an average of about 3,000 dols. a week to this 
 Company's receipts, without entailing any increased milage 
 trains, or other expenses. " Directors' report for half-year 
 ending 31st July, 18/39* 
 
 Nothing can be more calculated to mislead those not con- 
 versant with the subject than such statements as the above. 
 Had the Detroit and Milwaukee Railway never been projected 
 
 * The report far the last half-year received since the above was in type, 
 sets down the gross amount of traffic received by the Great Western from the 
 Detroit and Milwauliee Line, for tlxc wliole year at 00,000 dols., which is only 
 1,720 dols. a week. 
 
11 
 
 a very considerable portion of the business now credited to 
 its account by the Great Western Directors would of necessity 
 have found its way to the Canadian line. Unless it is main- 
 tained that no i)art of the traffic now flowing to the Detroit 
 and Milwaukee Line existed prior to its being built, it cer- 
 tarnly cannot be claimed that this railway has created so much 
 additional traffic for the Great Western. The truth is simply 
 this : — A very considerable portion of the country traversed 
 by the Detroit and Milwaukie Line, nearest to Detroit, has 
 always found that city its best market. Hence the Great 
 Western Railway must of necessity have received its legiti- 
 mate share of foreign traffic arising therefrom, whether the 
 railway existed or not. It must also be borne in mind, that 
 there was a considerable part of the Detroit and Milwaukee 
 Line next to Detroit open and in operation prior to the advance 
 made by the Great Western Company. This added facili- 
 ties for the local traffic, a portion of which must have fallen 
 upon the latter Company's Line, without any outlay whatever, 
 With regard to the western country opened up by the 
 Detroit and Milwaukee Line, the business from hence found 
 its way to a large extent to the Great Western via Lake 
 Michigan and Chicago, and thence over the Michigan Central 
 Railway. That the opening of the Detroit and JMilwaukie 
 Line has greatly increased the traffic of the Great Western 
 and benefited the Central parts of Michigan, is not to be 
 denied. But it will be seen by these remarks how wrong it 
 is, in the Directors to set down all the traffic they receive from 
 their pet line to its account. To credit one-half of it to such 
 account would be nearer the mark. 
 
 But, on the other hand, must be debited the loss which 
 the policy, with regard to these Michigan lines, has caused, 
 by making enemies of old friends. Although nominally at 
 peace with the Michigan and New York Central Companies, 
 which give the Great Western about one-half of its entire 
 business, there has, in reality, been a deadly war waging for a 
 year and more between the two American Companies on the 
 one hand, and the Canadian on the other. This state of 
 things cannot be otherwise than disastrous to all parties. It 
 was evidently the cause of Mr. Brydgcs entering into an 
 agreement, more than a year ago, to lease the Buffalo and 
 Lake Huron Railway, so as to form a connection at Buffiilo 
 (where there is no bridge, and everything must undergo two 
 handlings instead of one) with the baukru])t New Y<jrk and 
 
12 
 
 Erie. Had this preposterous arrangement been sanctioned hy 
 the London Directors, Messrs. Brydges and Reynolds would 
 by this time have had the Great Western of Canada leaning 
 upon two broken crutches for support — the New York and 
 Erie at one end, and the Detroit and Milwaukee at the other, 
 whilst its two old and powerful allies would have had a rival 
 line far forward in the course of construction. With such 
 facts staring the proprietors in the face, they must see that 
 their property is in unsafe hands. 
 
 As It is, and admitting that the Detroit and Milwaukee 
 Line has added one-half the weekly receipts stated by the 
 Directors to the Great Western traffic, there are well-informed 
 persons connected with the two Central Companies, who 
 assert that more than ten thousand dollars (over £2,000) a 
 week of through traffic is diverted to the lines on the South 
 shore of Lake Erie, and the Grand Trunk and Buffalo, and 
 Lake Huron. This will explain why the receipts of all these 
 Companies have so rapidly increased, whilst those of the 
 Great Western have decreased, or remained stationary. By 
 way of retaliation, Messrs. Brydges and Reynolds are in- 
 fluencing traffic by the circuitous route of the Michigan 
 Southern Line, whose interests and connections lie south of 
 Lake Erie, by which means a portion of all business so 
 diverted luust be lost to the Great Western itself. This will 
 explain the following extract from the circular of Mr. E. F. 
 Satterthwaite, the Company's London broker, under date of 
 29th February last. Speaking of the increase of traffic on 
 the Michigan Southern, of 26,014 dollars, for the month of 
 January this year over, that of last, Mr. S. says, "The business 
 this January was increased mainly from freight, which the 
 Detroit and Milwankie Road were compelled to send by way 
 of Chicago, their Lake Michigan boats not running." 
 
 The question seems to resolve itself into a nut-shell, and 
 may be thus fairly stated : — The New York and Michigan 
 Central Railways give the Great "Western about one-half of 
 its entire traffic, or four-fifths of its through. The Detroit 
 and Milwaukie gives it, at the Director's own estimate of 
 3,000 dollars a week, about one-thirteenth * part of its whole 
 business. Do the proprietors think it will be a good bargain 
 to barter away the former for the latter, or will they adopt a 
 policy, by changing their management, which will retain the 
 
 • In fact only one twenty-fiflK 
 
13 
 
 Lild 
 iiig 
 and 
 tier, 
 ival 
 
 tliat 
 
 ukee 
 r the 
 rmed 
 
 who 
 00) a 
 South 
 ), and 
 
 these 
 3f the 
 r. By 
 ire in- 
 chigan 
 jnth of 
 less so 
 his will 
 c. E. F. 
 date of 
 •affic on 
 Lonth of 
 business 
 hich the 
 L by way 
 
 hell, and 
 Michigan 
 le-half of 
 le Detroit 
 jtimate of 
 
 its whole 
 3d bargain 
 ey adopt a 
 
 retain the 
 
 business of all three lines? The two Central Companies 
 demand no exclusive traffic arrangement with the Great 
 Western. All they require is a guarantee that business shall 
 not be unfairly taken from them and p;ivcn to other lines and 
 routes. How can this be expected, when the Great Western 
 Directors have large pecuniary interests in competing routes, 
 and the Company itself is both a bond and shareholder in 
 them? 
 
 But then, it will be asked, what is to become of the 
 £300,000 of principal and interest owing by the Detroit and 
 Milwaukee ? That question it is to be feared will be answered 
 in a short time, in a way not calculated to increase English 
 confidence in Michigan investments. The writer was informed 
 the day before he sailed from New York (31st January last ), 
 by a person who lately held a high office in the Detroit and 
 Milwaukee Company, that a portion of the Shareholders in the 
 two old lines were taking measures to repudiate the entire 
 obligations of the Detroit and Milwaukee Company, that is, all 
 the mortgage and other bonds issued after the amalgamation 
 of the Detroit and Pontiac and Oakland and Ottawa Companies. 
 It appears that subsequent to the chartering of these 
 Companies, the State adopted a new constitution, which 
 expressly prohibits the Legislature from granting new charters 
 to Kailway and other Joint Stock Companies. Such corpora- 
 tions, this constitution provides, were thenceforth to be formed 
 under general enactments of the Legislature, something similar 
 to the Limited Liability Act of this country. Notwithstanding 
 this clause of the constitution, the two companies just men- 
 tioned, applied to and obtained from the Legislature an act to 
 ' enable them to amalgamate, thus forming, as is alleged, a new 
 corporation, under the name and desiojnation of the Detroit 
 and Milwaukie Railway Company. The writer was informed 
 that the opinions of the ablest counsel in Michigan and New 
 York had pronounced the Detroit and ]\Iilwaukee Company 
 an illegal corporation, and that consequently the shareholders 
 in the two old companies were not bound by any acts done 
 under the usurped powers of the Legislature. 
 
14 
 
 APPENDIX No. 2. 
 
 Mr. Willson's l^^ly to Mr. Brydgcs's speech at the London 
 Tavern (5th October, 1859.) 
 
 Hamilton, October 21lh, 1859. 
 
 SiE, — In justice to myself I feel it necessary to trouble 
 you with the followinpj observations, which I have to make 
 upon the remarks of Mr. Brydges, Managing Director of the 
 Great Western Railway of Canada, made at the last Meeting 
 of the Shareholders of tliat Company in London, so far at 
 least as they relate to myself. 
 
 Mr. Brydges charges me in his speech, reported in your 
 columns, with being* the author of an anonymous pamphlet 
 recently issued in London, England, entitled *' A few Facts 
 relative to the present Position and Management of the Great 
 Western "Railway of Canada." I acknowledge the authorship 
 so far as having supplied the material facts, and shall be pre- 
 
 Eared, at a fitting opportunity, to sustain such statements as I 
 ave made upon my own responsibility. There are many 
 facts stated upon the authority of other parties, whose names 
 are mentioned in the pamphlet, which I believe to be true, but 
 for which I do not hold myself responsible. I shall only 
 trouble you with a few remarks upon the facts noticed by Mr. 
 Brydges. I may state that some of the most — I might almost 
 say all — of the most prominent and damaging facts discussed 
 in the pamphlet referred to have been passed over in silence. 
 Under these circumstances, I think it best to defer, until a 
 more suitable occasion, entering into evidence in support of 
 points in issue between us. 
 
 Mr. Brydges sets out by stating what he conceives to have 
 been my motives in writing the pamphlet. He alleges that 
 it was published '* because of the refusal of the Board to 
 entertain a proposal that he ( Mr, Willson ) had made in 
 reference to the Company." Now, it will be seen how much 
 truth this imputation of motives possesses, when I state that the 
 '* proposal *' referred to was merely a suggestion thrown out 
 respecting the possibility of leasing the Great Western Rail- 
 way to a Canadian and an American Company, to be organized 
 under a Canadian charter, and that the materials of the 
 pamphlet were despatched at least one month before 1 received 
 an intimation from the London Board that they declined to 
 entertain the suggestion — which, though made to the London 
 
lo 
 
 'S-. 
 
 Board, was intended for {ho, sliarcholdt rs. 80 much lor the 
 imputation of motives — a policy so often resorted to by those 
 who fear to grapple with faets. 
 
 The next point noticed by IMr. Brydi^es relates to the 
 remarks made in the pamphlet on the enormous and rapid 
 increase in the Capital Account of the Company under hig 
 administration. The only difference between his statement of 
 this particular and mine is, that whilst ho admits the- strict 
 accuracy of my figures, whicli are correctly eoj^ied from the 
 Directors' reports, he does not think the increcisc enormous, 
 " when they took into consideration the nature of other p.iy- 
 mcnts made by the Company, " &c. The actual increase of 
 the Capital Account in three years, it may be as well to 
 remark, had been from 19,939,651 dols. in July, 1856, (at 
 which time a solemn resolution was pas=icd by the meeting of 
 proprietors to^ it at that sum), to 23,400, 000. This increase 
 in three years, of 3,469,349 dols. in the Capital Account, in 
 defiance of so good a resolution, may appear small in the eyea 
 of Mr. Brydges, but consideiing that it has been mostly laid 
 out upon branches and lines admitted not to pay running 
 expenses, it seems to my unsopljisticated judgment a very 
 large sum. 
 
 Mr. Brydges next says that this is not the first time that 
 I have made ** personal attacks " upon him since his residence 
 in Canada. Now, I deny that 1 have made any personal 
 attack upon Mr. Brydges at any time. Nor have I been in 
 the habit of writing numerous articles in the Canadian papers 
 against him as afterwards alleged. On the contrary, I have 
 abstained from that course of procedure, and should feel 
 extremely mortified to believe that the Canadian public im- 
 puted such a practice to me. But with regard to the charf^e 
 of personality, I know Mr. Brydges personally resented the 
 opposition which I made, at a meeting of the shareholders in 
 England in 1854, to the purchase of the Erie and Ontario 
 Railway and Niagara Docks, although my opposition was 
 purely based upon arguments against the value of the property 
 and the expediency of its being acquired at a price far beyond 
 its instrinsic worth. With his enlarged experience in Kail- 
 way management in this country, Mr. Brydges, as well as 
 every shareholder, ought to feel truly grateful to me, for 
 having been instrumental in defeating so foolish a bargain. 
 With Mr. Brydges's private or personal reputation I do not 
 pretend to have anything to do ; but with his policy and acts 
 
16 
 
 as the chief manasjer of a great line of Railway in vvhicli, as 
 a heavy rate-payer of this city, which is a lar^e sliareholder, 
 I have just as much to do as the largest individual shareholder. 
 
 Mr. Brydges goes on to say, '' The next point to which 
 Mr. Willson alluded was at page 1 3, where it was said the 
 Company owed a great deal of money to their bankers. This 
 was a statement originating entirely in the fertile imaojination 
 of Mi>. "Willson." Now, as to whether Mr. Brydges's statement, 
 or mine is correct upon this point, I beg to refer the reader to 
 the Directors' Report for the half-year ending 31st January, 
 1859. In that Report, which I had before me when I com- 
 piled the facts in question, under the head of general balance 
 sheet ( account No. 4 ) appears the following little item, 
 ** Balance due to bankers, contractors, &c., 1,112,718 dols. 
 31 cents." Here we have; the evidence upon which I exercised 
 my " fertile imagination," and I leave it to Mr. Brydges to 
 explain how much of this sum the company then owed to 
 their bankers, and how much to contractors, &c. People here 
 know pretty well that contractors are not in the habit o' 
 allowing Railway Companies, which possess the ability to payf 
 to remain long in arrears.* 
 
 The next matter touched upon by Mr. Brydges is one 
 
 1 
 
 "* Since the above was written the annual meeting of Shareholders required 
 by the Company's charter to be held in this city has taken place, and has 
 elicited from Mr. Reynolds, the Financial Director, a statement entirely at 
 variance with the one made by Mr. Brydges, the Managing Director, at the 
 meeting at London, respecting the indebtedness of the Company to its Bankers. 
 I will quote the exact words imputed by the reporters to the respective gentle- 
 men. Mr. Brydges said, " the next point to which Mr. Willson ulluded was at 
 page 13 (of the pamphlet), wliere it was said the Company owed a great deal of 
 money to its Bankers. Tliat was a statement originating entirely in the fertile 
 imagination of Willson." Tiiis is a polite method of giving me the lie direct 
 Now for his colleague's reply to the same point, raised by Colonel Gourlay. Ae 
 the meeting here on the Ist, Mr. Reynolds said, referring to tbe accounts of th.t 
 half-year ending 31st January, 1859, " there was £150,573 sterling, due to the 
 London Joint«Stock Bank." This sum he afterwards states had been reduced 
 to £140,743. It also appears from Mr. Reynolds's statement that the Company 
 had at its credit at the Commercial Bank on 3 Ist January last, 66,880 dols., 
 but at the end of the last half-year only £2,538. I leave these discrepancies 
 to be explained by the gentlemen themselves. Mr. Brydges may say that 
 Seven hundred and fifty thousand dollars is not a ''great deal of money," but 
 this, I apprehend, will scarcely be regarded as satisfactory to those Shareholders 
 who counted upon a dividend as a means of subsistence. It is a sum suthcient 
 to have paid the Shareholders a haU«yearly dividend at the rate of 9 per cent, 
 per annum. The public will now know how much value to attach to the most 
 solemn asseveration ot Mr. Brydges. 
 
 Yours, t&c, 
 Hamilton, 3rd November, 1859. H. B. W. 
 
 .m 
 
17 
 
 upon wliicli he lays great stress. It n'latcs to a statcniciit 
 
 O' 
 
 but 
 
 mad 
 was 
 
 c in the pamphlet, to the eflfect that the connection which 
 heinc: formed between the Great Western and Detroit 
 
 and Milwaukee was producing a hostile feeling on the part of 
 the Michigan Central Company. He tlien quotes an extract 
 from a pamphlet which I published in London in 1 854, showing 
 that the latter Company was then friendly to the Detroit and 
 Milwaukee, at that time known as the Oakland and Ottawa 
 line. The statement made by me in 1854 was strictly coiTCct. 
 So in like manner is the one made in the late pamphlet upon 
 my own authority. In 1854, being then agent in England 
 for the Oakland and Ottawa Company, I received a long com- 
 munication from the President and two others of the Directors 
 of the Michigan Central Company, in wliich he expressed 
 themselves favorably towards the former line. But at that 
 time these gentlemen never dreamed of the Great Western 
 Company's taking up the new line and making it to all intents 
 and purposes a part and parcel of their property — and thus 
 diverting upon it to the serious injury of the Central Com- 
 pany all the traffic in their power. Although this is a per- 
 fectly logical and true explanation of the assumed discrepancy 
 between my statement six years ago and that of the pamphlet 
 recently issued in London, the materials for which were com- 
 plied by me, Mr. Brydges has no doubt made a capital point of 
 it with the English shareholders. He may, however, rest assured 
 that his victory, if such he considers it, will only be temporary. 
 
 But I Avill not anticipate events. I shall now reiterate 
 the opinion I expressed in 1854 respecting the value of the 
 Detroit and Milwaukee line as a feeder to the Great Western. 
 Strange to say, however, at that time, when I had several 
 interviews with Mr, Brydges, and endeavoured to induce him 
 to lend his active co-operation in raising capital to build the 
 Detroit and Milwaukee Railway, he always contended that 
 although *' the line would be a valuable feeder " to the Great 
 Western, he did not believe that it would be a profitable one 
 for those who might supply the money to construct it. From 
 this view I could never turn him, and all I obtained was what 
 he termed ^* moral aid." That is, he expressed in a resolution 
 of the Hamilton Board, which I received, an opinion that the 
 line would be a good feeder to the Great Western. Now, I 
 have no hesitation in asserting, that had the arrangements 
 which I had made in England in 1854, and which led to ulti- 
 mate success, been fairly and honestly carried out, the Detroit 
 
 B 
 
18 
 
 and Milwaukee line would not only have been a *' good 
 feeder " to the Great Western, but it would have been a good 
 investment for its share and bondholders. Under that 
 arrangement the entire cost of the line and plant was limited 
 to five, or five and a half millions of dollars. The line and 
 plant as they now stand liave cost somewhere about ten 
 millions, and will cost two or three millions more before com- 
 pleted, to say nothing of the Port Huron branch. I have 
 been intormed that the agreement by which mine was super- 
 seded or extensively modified, and which was made with the 
 same parties the following year, coolly added over two millions 
 of dollars to the cost of the line. This matter must yet be 
 probed to the bottom. J\lr. Brydges has not been charged by 
 me, with having consummated these scandalous financial 
 aiTangements, some of which he has candidly admitted to have 
 existed prior to his official connection with the Michigan line. 
 The charge made against him on this score is, that he sits in 
 the same Board with the men who pei*petrated them, and 
 further, that he is endeavouring to raise capital from the Great 
 Western Shareholders to build the line fi:om Grand Haven to 
 Owosso, which is wholly under their control. I leave it for 
 Mr. Brydges to explain his motives for having so abruptly 
 changed his opinions respecting the Michigan line. But I am 
 allowing myself to deviatefrom the purpose of this letter, which 
 has already grown to greater dimensions than I intended. 
 
 I shall therefore at present only notice one or two other 
 points touched upon by Mr. Brydges, and first, the allusion 
 made in the pamphlet on my authority, respecting the 
 existence of " pet contractors." I shall be perfectly explicit on 
 this subject, and reiterate the charge, that the contracts for the 
 construction of the line from Mill Point to Grand Haven, 
 together with the extensive docks and freight and passenger 
 stations at Grand Haven, were let to a Mr. Samuel C. Eidley 
 at rates vastly higher than tenders made by several men 
 possessing equal abdity to do the work. This I learned from 
 highly respectable parties at Grand Haven. The name of one 
 gentleman of great wealth and respectability, who offered to 
 do the work at 30 per cent, below the price at which it was 
 awarded to Mr. Ridley, w^as mentioned to me. Mr. Ridley, it 
 is well known, was not a man of means when he resided in 
 Hamilton just before he obtained these and other contracts on 
 the Great Western, and could not therefore have been favored 
 on that ground. 
 
li» 
 
 Mr. Biydgcs has set up ca great many men of straw in hi.s 
 speech, in order to have the pleasure of knocking thcni down 
 again. One of these is his assumption tlmt he has been charged 
 with having let contracts without putting them up for tender. 
 No such cliarge has been made against him, tliat I .am aware 
 of. But of how much value such a course (the putting the 
 work up for tenders) has been, will appear from the facts 
 already stated, which admit of legal verification. 
 
 Mr. Brydges attempts to make capital out of the remark 
 that the Great Western Company had taken a fourth or fifth 
 mortgage upon the Detroit aud Milwaukee line, in security 
 for the £250,000 sterling loaned to that Company. He affirms 
 that this is a mistake, and that the Detroit Company was 
 earning enough to pay the interest upon all the bonds including 
 those held by the Great Western In the first place, Mr. 
 Brydges's statement as to the rank held by tlie Great Western 
 Company scarcely difiers from uiine. It may indeed be regarded 
 as a " distinction without a difference." The fact is, as I have 
 been informed by legal gentlemen in Michigan, that although 
 there are but four actual Mortgages upon the Railway in 
 question, there are two if not three classes of bonds not covered 
 by mortgage, which in equity must take precedence over all 
 the other mortgages. Thus in effect, if I have been correctly 
 advised, the Great Western Company ranks fifth if not sixth 
 in their security. This however, is a question for the lawyers 
 to decide. In the next place, how does it happen if the 
 Michigan line is earning enough to pay the interest upon all 
 classes of mortgages and bonds, that they have failed in doing 
 so, as admitted in the Directors' reports? At a time when the 
 Canadian Company have been unable to pay a dividend, even 
 the interest upon £250,000 sterling one would tliink worth 
 looking after if it had been earned. 
 
 I must not omit to correct Mr. Brydges respecting the 
 statistical statements copied into the late })amphlet, from a 
 Canadian newspaper. 1 most emphatically deny that I com- 
 piled the tables in question, whilst I at the same time afl[irm 
 that these statements are strictly true, having been compiled 
 from the Directors* own published statements, which I have 
 examined. It is a most shameful unblushing act, in my 
 humble judgment, for a man holding Mr. Brydges's position, to 
 thus throw suspicion upon facts which he has himself furnished 
 the data for. In conclusion, I beg to say, that T have no 
 doubt that Mr. Brydges is highly satisfied with the result of 
 
20 
 
 Ilia explanations in London, where lie had no one possessing 
 a sutHcient knowledge of tlictd, and at the same time capable ot 
 refuting his arrogant assumptions, and special pleading style 
 of getting over ugly things, to reply to him. 
 
 Yours truly, 
 
 H. B. WILLSON. 
 
 In order that the public may judge exactly how the matter 
 stands and who have been most correct in their representations, I 
 give the following statement of the condition of the Detroit and 
 Milwaukee Company, copied from official documents. The different 
 series of bonds are arranged according to their legal rank as secu- 
 rities; 
 
 Dol. 
 Ist. Sterling bonds, Oakland k Ottawa Co. 6 per cent. 155,000 
 
 2nd. Dollar bonds do. 7 ])or cent 51,000 
 
 3rd. Detroit and INmtiac Company, 8 per cent 500,000 
 
 4th. Detriot and Milwaukee 1st Mortgage, 7 per cent... 2,500,000 
 
 5th. Do. ' do. 2nd do 8 per cent 751 ,000 
 
 6th. Do. do. 3rd do 10 per cent 1,250,000 
 
 7th. "ith Mortgage bonds, amount and particulars not in 
 
 my possession. 
 8th. Share Capital 2,329,154 
 
 The 3rd and 4th Mortgages which rank in law 5th n d 6th 
 form the security held bv the Great Western Company. 
 
 H.B.W. 
 
 Extract from a letter published in '' Herapath's Journal," 
 referring to Mr. Brydgcs's attempt to point out a discrepancy 
 between Mr. Willson's views in 1854 and 1859, respecting the 
 taking up of a portion of the proposed Southern or Niagara 
 and Detroit E-ivers line : — 
 
 '* I cannot, for the life of me, perceive the discrepancy, 
 out of wlilcli Mr. Brydges has endeavored to make so much 
 capital, between my statements of 1854 and 1859. The pam- 
 phlet of 1 854 was published mainly to prevent the policy of 
 the Canadian Board, to construct a number of short cross 
 lines as 'feeders to the main line' being carried out. This 
 policy, absurd as it is now admitted to have been, was imputed 
 to Mr. Brydges, and was at any rate endorsed by him in the 
 Directors' Report of that year. Instead of building these 
 
21 
 
 l)ranclic3 — some of which, such a8 the Galt-tind-Samia have 
 actually been built to the sorrow of the Sliareholders. I advised 
 the construction of a short parallel line from Chatham to the 
 Falls of Niagara, which would obviate the necessity of laying 
 a double track on the main line, and ruti in the right direction 
 for traffic, namely, East and West. It would, besides, have 
 opened up a fine track of country, much superior to that on 
 the Sarnia branch, which is mostly a dead wilderness. My 
 views were highly approved of by Mr. Samuel Laing, the 
 Company's then Chairman, who read my pamphlet. Happy 
 would it be for the Great Western Shareholders at this time 
 had thev then acted upon my suggestions, and let the non- 
 paying branches, which the Directors have since foisted upon 
 them, alone. You will see the subject of the Michigan lino 
 more fully dealt with in the article which has appeared over 
 my signature in the Canadian papers. I shall therefore not 
 trespass further upon your space, than to warn vou against 
 being led away from the real issues raised, by the false and 
 malicious attacks made upon myself personally in one or two 
 railway prints in London, which receive their information 
 from Great Western sources. It is a very common metliod 
 for those who cannot rebut facts, to draw off public attention 
 by creating other and false issues. Let any one interested 
 calmly and dispassionately read the pamphlet rightly imputed 
 by Mr. Brydges to me, and it will be seen how little has been 
 left to be taken upon the mere assertions of the writer. 
 
 " I am, Sir, 
 
 ** Your obedient Servant, 
 
 <« H. B. willson;* 
 
 e