|PK\ !H5^ STHIE ELECTION CAMPAIGN. -^ s TT :m: dsj: -A^ n OF TKE PUBLIC RECORDS or THE PAST FITB YEARS, FOR •■ • THE USE OF THE PEOPLE. iorotttn: THE /'DAILY MAIL" PRINT, CORNKR KING AND BAY STREETS. 1 8 •/ 8^ J-' ; \ / f J '■',•■ ''' THE NEEBING HOTEL COST THE COUNTRY S5,029. .hi WIri; ■^t^ir.-'^^i^kl^'- ^?ta..' ; ; 'Vif.-" :*>■ ,^ n, » THE ELECTION CAMPAIGN. -A. &TJi^isa:^^:R THE PUBLIC RECORDS '^ ^ THE PAST FIVE YEARS, roft ^■"Miii^t :>,... ■ I ' •■1»**'. • ir THE USE OF THE PEOPLE. T'-C-i". '-/ivV", ,.: ^./sv '-;., yiii^ii?'t";:„ i;^ji^E'''f»> V. Vlk. ■ r iflJB " DAILY MAIL" PAINT, CORNEB KINO AND BAY STBIBm 187 8. EntML^ '/'' MjaaiiT ■^-s^ijr ^ 8fla003S ... L4T .:^.noM ! '! !^ , .: o f J r^ riT i : t? T ?5 *? 1 ^ OOISTTEZSTTS. Paqes, Public Expenditxjbb 9 — 17 Extravagance and Corbuption 18 — 36^ Pledges and Principles 37—50 Steel Rails 61—60 " On The Make" 61—67 Thk Issue Before The Country 68 — 78^ The above Articles, republished from the columns of THE MAII^ •re little more than a Summary of the Public Records of the pasi five yeara. loronto, July lat^ 187& I IB T Ti: a: T TfT o o TI---J- ^H'mny.TVy'A oi.ian't ^»~ if-l woiTsuaaoi j ti;i> :r )7j^i>av ahi x.i (»^ TR . H'fTifoam'^I a/ A K^Kryji 00-- i- . — : , cJiiJi 4aai8 >i» !•' 'ii.'iAK aaT yO'^ 67 -i'iU 7>(iK!iuO au r afld'daU aupHj auT ^T«I ,JiI '>iIi;T. .oinu-iol THE DAILY. MAIL; PUBLISHED AT •Qi^"MlNK3^ STREET. TORONrO.^bN^ .^0181 CHRISTOPHER W. BUNTING. in53 isq c£ boai^oinni-,,, uit^W ^(]) in ffiwjcjirii,;! The Mail was eetablLshed in the year 1872 as the organ of the Conservative Party of (.*aua' apeoiflo ArtioleQ, Business Chanoen. Iddress all letters to — Mfv, THE MAIL, Toronto, Ont THE WEEKLY MAIL PRICE $1.60 PER YEAR, POSTAGE PAEPAID. NotwithHtaiiding the hard times, and the general falling off in the ^ )T/1 T^'pT circulation of Weekly Newspapers, the :,T CTTTf^ Circulation of the Weekly Mail has Increased 35 per cent. Within the last six months. Thb extraordinary success is no doubt due to the great iinprovemonts made in TUE WEEKLY MAIL during the present year, which have made it *"-^ f^iv>;rn« ,n%i., ,^^.l^.>^^ Jbe Great Family Paper of Canada, (I EACH NUMBER CONTAINS: i ISNEW6 from aU quarter, of the Globe HOUSEHOLD RECEIPTS* &0 EDITORIALS "" Current Topic;. "HEALTH IN THE HOUSE- STORIES, Carefully Helocted. HOLD. AGRICULTURAL INTELLl- MARKET REPORTS. QENOE, and NEWS PARAOf^APHS. ARTICLES ON FARM TOPICS j EDUCATIONAL NOTES. . ILLUSTRATIONS. .,ic> ^ ;.o oi MISCELLANEOUS READING, LADIES' CHIT CHAT. , ETC., ETC. „, 'foor»^t^-yyWi .tn - sil Hiium !)(i lUw k>u}m JoniJ/ioo liiiutuji . luT!ruJ6nl i\.>,.A)'ioi ,f/ii3«jj6ni U'nfi(] TO ^.ID^^EETISEJKS. "' The regular rate for advertising is fift«en c«nts per line, nonpareil weasure, each Insertion. Contract rates made known on a|>pl^ation. We make a speciality of advertising ^^,, , ^^ ^ 5,ufl.<,o5x=i iun Farms for Sale; Farms Wanted j Live Stock; i') Auction Sales of Farm Stock and Implements ; Agricultural Shows ; and ^^ • ^-^j- '!!^'T^c r.'.vj" Teachers Wanied. 'f Advertisements of these classes are inserted in the Wkekl^ Mail, 2C words for 50 cents each insertion ; each additional word, 2 cents. 1.1 THE MAIL, Toronto, Ont AUDRB8S OT • f1 ■' *f.hM IjfjraW ^p>"'»''>f*f»lj on IJJ'*"/ " luot yiito ioT nWiiirTteinJjuhA fTin./,(ni V < THE PUBLIC EXPENDITURE. (j.RT^. (W>./U?.ii:- .. ..V .. ' '" (W,«lt^» , < 'jjl! ,.1) ,1) -ffi/Jibn-vfyw }j»>A sMiiw -.iH cvl pomn'i V MIA/?. < li M ,lM ^flf/'l((''i Vo one Mquainted with ihe politioa of the country since 1867, or even since 1872, need be told that Econonty wan one of the first principles of the Reform party when it was in Opposition. In tlie conventions l>')th of the Reformers of Ontario and the Eouges of Quebec, Economy held almost the first place ; and it was owing in no small degree to the persistent declaration in behalf of Economy of the leading men and journals of the Party as a whole that it mihicved such signal suc- cess in the general election of 1872, and after the resignation of the old Govern- ment, in the contest of January, 1874. It is not to be denied that under the old Ooverninont there was a large, even a vast increase in the public expenditure. The figures are as follows, vide Public Accounts for the years named : 1867-8 , ,,. . .,. .$13,486,000 1868 9 , .;.. ...:./.. 14,038,0(X) 1869-70 I4,84rt,.50t 1870-1 J.'5,G23,(XX> 1871-2 17,58U,r)00 1872-3 19,174,600 This was an increase in five years of nearly ^,000,000, or $1,000,000 a year. It must be borne in mind, however, that the work of establishing the Union, of making the British North America Act of 1867 an actual and material Con- federation of the Provinces, was one in- volving enormous cost as well as en- ormous labour. Yet withal, this in- B (uU lo ii.vi«i III*!* *i^raj.>.'l' »o»» j.j't /«ii li(iw»ui* »ffj ,.^.« ,1- f.THl 'uA ereased exp'ehmture was largely within the revenue. Just as a farmer can afford to improve his estate when his income is buoyant and ever-growing, so the old Govornmont was able out of their splendid roventies, not only to deal liberally with the ordinary demands of expenditure, but to put aside every year a comfortable surplus of revenue over expenditure, which thoy applied to Capital Account and like purposes. The following table explains this more fully : E'jjierulUure,, 1867-8 $13,486,000 1868-9 1869-70...... 1870.1..:.,. 1871-2 .;:.;'. 1872.8...... 14,038,000 14.345,500 I5,62:},000 17. 589, .100 19,174.600 Jiivenne. $1.3,687,900 14,. 379,000 1.'),. 5 12, 000 19, 3.3.5, .}jv .341,000 1869-70 1.166..500 1870-1 3,712,600 1871-2 .3,125,300 1872-3 1,6.38,900 iiii:<-M -.'Xi i'.iVt 6.'. i')., $10, 186,200 Thus while the expenditure in these five years was increased by $6,000,000, the abundant revenue not only met the in- crease, but left a surplus of nearly $10,- 200,000. '':'"!■,; ■•:'v On the Ijth November, 1873, four months after the closo of the fiscal year 1872-3, Sir John Macdonald and his colleaguoB resigned and the present 10 I OATornment took office. Now, though ih« ALacelenzib Administration thus ruled for eight months and the Mac- ZtONALD Administration for only four months of the fiscal year 1873-4, it ^ would be manifestly unfair to hold the former responsible for the whole outlay that year, inasmuch as when Mr. Mao- KENZI8 came in the public expenditure was bei)ig conducted on the basis of Mr. Tillky's estimates for that year. Mr. Tillky's estimates of the expenditure for 1873-4, i. e. , the amount the old Gov- ernment proposed to spend, was f22,- 483,000, made up as follows : , First Estimates 120,^41,066 Supplenieutary do 1,542,000 win H<^nff.',ljSS4a9 P.'A •)/07 $22,483,000 He announced that the supplementary «um of $1,542,000 was required to meet the charges arising from the assumption by the Dominion of the Provincial debts, the expenses connected with the admis- sion of Prince Edward Island into the Union, and the increases to the salarit^s of the Civil servants. Prince Edward Island had just been adopted into the Confederation. Beginning in 1867 with the four Provinces of Ontario, Quebec, New Brunswick and Nova Scotia, the MACDONAtD Government secured Manitoba and the great North- West in 1870, British Columbia in 1871 and Pi-ince Edward Island in 1872. They had united all the British posses- sions in North America, Newfoundland excepted. But not without a large out- lay. It is one thing to annex or incor- porate a Province on paper ; quite another to execute the instrument of incorporation. Mr. Tilley estimated the revenue for 1873-4 at $21,855,000, showing an apparent deficiency of $628. - 000. But upon this point he said in his Budget speech : *' The surplus next year " (1873-4) he estimated at $913,000 ; " but the supplementary estimates and ** propositions before the House would ** require $1,642,000, which woidd leave ** a deficiency of about $628,000. But, " owing to th« nirpltu in the preient "year no deficiency woiild arise." H© had, as he believed, provided for ereiy- thing, and when he left office with his colleagues, the account of revenue and expenditure was, as he and they be- lieved, straight. l^ie Expenditure xmder the il^cKKir- ziB Government has been as follows : 1873-4 12.3,316,000 1874-5 23,713,000 1875-6 24,488,000 1876-7 23,519,000 The estimated expenditure (t. e., the amount Mr. Mackenzie proposes to spend) in the current year ending the 30th June next, is $24,227,000, made up as follows : ' ' **'' ' Original estimate. . . .'..'.! . . .1 ,$23,379,000 Supplementary charceable to Consol dated Fund, brought .th"-'* >Hl down 4th May, 1878 848,000 j.A'i . ir ..-• .,w;C^ ^'-'124,227,000 It ' a eviilent,'^ then, that uistead of cut- ting down the expenditure, Mr. Mao- EENZi£ has increased it. He has, in fact, violated his pledge in a two- fold degree — first, in not having been mors economical than his predecessor ; secondly, in having been more extrava- gant. Between the sum Mr. Tiixby proposed to spend in 1873-4 and the amount Mr. Cartwmght asks for the current year, there is a difference of nearly $1,750,000. It is contended on behalf of Mr. Mackenzie and his col- leagues that they have found it im- possible to cut down because of the large increase made by the old Government in J.873-4. Bui if that be accepted, if they could not cut down Mr. Tillky's figures, what excuse is that for the in- crease of $1,750,000? And, again, if that be accepted, and they could not cut down Mr. Tillky's figures, then the conclusion is unavoidable that when they led the country to believe that Economy was not only possible but practicable, and even sure, under their administra- tion of affairs, Mr. Ma^ckenzie and his If u8ocia{«8 acted ettHer in fgnoranoe or bad faith. The pledges of public men should be sacredly observed ; and in this case there were reasons even as cogent as a regard for their honour that pressed on the Reform leaders the necessity for Economy. Shortly after they took of- fice the revenues which had been so abundant under their predecessors began to wane. The following table, showing the revenue m well as the ex- penditure, explains this succinctly : Expenditure. Revenue. 1873-4 123,316,000 $24,205,000 1874-5 23,713.000 24,648,700 1875-6 24,488,^00 22,587,600 1876-7 23,519,000 22,059,000 >.. i.j«'u, I' 195,036,400 «93,600,300 The estimated expenditure tor the cur- rent year is $24,227,000, and the estimated revenue |23,500,000. But on the 10th Febnu"- 'ist, the latter estimate was over f 600, 000 short, so thit a deficit of close on $1,500,000 is almost inevitable. We have, therefore, these three pic- tures : (1.) Annual surpluses 1867-8 to 1872-3 $10,186,200 (2.) Surplus, 1873-4. $889,000 1874-5. 935,700 $1,824,700 (8.) Deficit, 1875-6.$1, 900,800 1876-7. 1,460,000 i) v Probable do. 1877-8. 1,500,000 $4,860,800 From these striking pictures Mr. Mac- kenzie must have gathered that, apart from his own pledges to the country, the national credit demanded Economy. He knew ho had exhausted taxation, for the throe millions he levied in 1874 had not averted deficits. Nothing remained but the most stringent Economy. That would have been at once the fulfilment of his promise to the people, and the salvation of the public credit from the blow which he knew chronic deficits would infiict upon it. He has failed, however, to respond. There has been a large increase in every branch of the purely controllable ex- penditure. Wbem a merchant finds every other legitimate means of making both ends meet fail him, he considers it his duty to cut down his running ex- penses. An honest statesman would do likewise. But Mr. Maoksnzib appears to lack not only the honesty that should have impelled him, even had there been no deficits, to cut down the running expenses of the country, but the honesty that would have impelled even an unpledged man to that course. Take these running expenses from be- ginning to end : . First, a large increase has taken place in the cost of the Ottawa Departments. When he was leader of the Opposition, Mr. Mackenzie always bewailed the extravagance under this head, which he ascribed to tho " immoral coalition. " In the fall of 1870 he took special pains to put this view before the country. In a speech deJivered at London on the 25th October of that year, and reported in the Olobe the day following he said ^ " When the Government was first form- ed in 1867-8, the offices were filled with a great army of employes, but notwith- standing the entire expenses of Civil Gov- ernment, including the Governor-General's salary and those of the Lieut. -Governors were $594,445.82. What was it now? The very same items now reached $661,- 676.82— an increase of nearly $70,000 in two years, m consequence, as he firmly be- lieved, of the naturally bad system of Gov- ernment that existed under a coalition." At St. Catharines, on the 16th of No- vember of the same year {Globe of the 16th) he said : a: i>.:iniiiii- r>v> uft^vF "Why, the Ministry were packing the public buildings from attic to cellar — two or three in every room — till one could hardly find his way through them. The last time he was at Ottawa he found four men at the door waiting for the little man's behests inside." These are' but samples of his utter- 12 •ucM un tluH subjeot taken at random £i-om hi* Oppoaition speeohea. ' The Rouges weru also strong on Ilconomy in Civil Government. Their platform of 1872 contained these three articles : 3. Reduction of the number of Minis- tors. ■.•\i,i-- T-^-Ht ■:.>---'•-■»» XI -.,T»>i, 4. T)iirJnutioii of the Grovemor-Oeneral's 5 ileduction of the number of public unploy^s to what is strictly required for tlie efficient perform>,nce of the public B< 11' vice. Now here are the pi'egnant figures : H72.3 «/r)0,900 1^73-4 883.700 1S74-5 ".M)9,.30O H75-6 842,000 1576-7 812,200 iiecondly, there has been a vast in- crease in the expenditure on Iiumigra- t;'on. In the prosporous years when business was good and employment plentiful, a liberal aj>propriation under this head was highly desirable ; but in 1374, when the prtsent Government found a panic in the country ^ud witnessed the complete pros- tration of industry tiiey ought to have made no special effort to en- -f-.' ..«■ 1872-3. . . ...............: :..:. . .1277,400 1873-4 318,600 1874-6 302,800 1878-6 385,900 1876-7 354,000 Of this total of |354,000 for 1876-7, the sum of $144,000 for special expenditure in Keewatin in connection with the small-pox quarantine there, and for Icelandic and Menuonite loans and re- funds, must be deducted in aider to bring the expenditure of that year to the ordinary level of that of 1872-3. This will make the total for 1876-7 $210,000. So likewise the sum of $96,- 000 fur Mennonite loans and transport must be deducted fi'om the apparent ex- penditure in 1875-6, leaving the ordinary expenditure that year $289,900. The number of immigrants by the St. L iw- ronce route has been as follows ; ' ■ , 1872-3 3(i,907 1873-4 23,8il4 1874-5 ie,038 1876-6 10.901 1876-7 7,743 The per capita cost of each immigrant is therefore as follows : Per Capita tmmiijraiUti. Cost. Cost. 1872-3. .. 36,907 «277,400 $: 51 1873-4. . . 23,894 318,600 13 AS 1874-5. .. 16,038 302,800 18 90 1875-6. .. 10,901 289,900 26 50 1876-7. .. 7,743 209,000 27 00 The immigrants who enter the country by the St. Lawrence route are the only immigrants who can be justly claimed by any Government as the result or fruit of Dominion expenditure. Last year, indeed, there were two Dominion agents in the States engaged in the work of repatriating French Canadians uf whom they say they secured 836, vide Minister of Agriculture's report for 1877. But aside from this, the whole appropriation is spent in behalf of European immi- grants ; and the persons who cross the lines from the States and settle hore or pass through here to the Western States come il of their own a«oord, and certainly not because of the money spent or the efforts made by Dominion agents in Europe. Moreover, if the inmiigrants from the States are to be claimed, then to make our population account an honest one, we should also keep official returns of the annual Canadian hegira to the States. Of late years the majority, i.e. the Min- isterialists, on the Immigration Commit- tee of the Commons have taken to claim- ing these arrivals from the J tates as, equally with the St. Lawicnce route immigrants, the fruit of the appropria- tion, their object being to reduce the per capita cost of the European immigrant, which has increased so largely xmder the present Administration. Thirdly, there has been an enormous increase in the cost of the outside De- partments, that is, the Customs and Excise Departments. In the former this increase is most marked : ' Cost of Revenue Collected. Collecting. 1872-3 113,053,900 $568,000 1873-4 14,410,600 658,300 1874,5 16,387,000 682, 70<) 1875^ 12,841,300 721,000 1876-7 12,556,800 721,600 The cost of collecting each f 100 of Customs revenue has therefore been as follows : 1872-3 $4 35 1873-4 4 56 1874 5 4 44 1875-6 5 61 1876-7 6 75 A noteworthy feature in this Customs record is the astounding increase in the salaries, &c., at the port of Montreal : ^gi ^4»4eflrRMJi svttt Revmue Coat of Collected. Collecting. 1872-3 $5,017,200 $ 87,700 1873-4 5,639,000 96,800 1874-5 6.866,700 99,800 1875-6 4,296,300 117,300 1876-7 3,869,700 118,000 The port and city of Montreal, it may be added by way of explanation, has been the scene of several olosely con- tested elections since Mr. Mackbnzir took effico. The Excise returns »re almost as sig- nificant: ;• •,' Revenue Coat qf' ^•♦'t* Collected. Collecting. 1878-3 $4,527,000 $171,700 187.3-4 5,851.500 201.200 1874--) 5,141,300 199,300 1875-6 5,.'>97,000 2I8,.300 1807-7 4,974,000 211,000 The cost of collectini* each $100 of Excise revenue has therefore been as follows: 1872-3 $3.80 "** 1873-4 3.55 1874-5 3.87 1875-G 3.89 "j[ 1867-7 4.24 ^> Fowrthly, there has been a lai^e in- crease in the cost of the Administration of Justice, as follows : t.-..j<«,tk aPT 1872-3 $399,000 1873-4 459,000 1874-5.. 497.400 1875-6 544,000 1876-7 565,600 Fifthly there has been a large in- crease in Pensions and Superannuation Fund. Reformers, at least the more " advanced," among them, were for- merly opposed to pensioning and super- annuating public servants. In the old Rouge platforms a special article advo- cating the abolition of these al »r.fv*ir'»"' <*vii . ««.' A '•*-» 1872-3 ! ... .1 49,200 187.3-4 66.400 1874-5 63,700 1875-6 110,200 1876-7 112,600 Of the Supennranation Fimd as follows : 1872-3 $ 53,000 1873-4 64,400 1874-5 77,300 1875-6 101,600 1876-7 104,800 Sixthly, there has been no tangible decrease in the salaries and labour charges on the Public Works. The fol- lowing are the figures for the principal CuuJs : u „.->.* 1872-8. 1873-4. 1874-8. WelUnd ...•118,687 $161,224 $147,343 Lachine .... 6fi,756 67,680 67,9.56 BM«hr.rnoU. 22,986 27,280 27,654 Cornvall.... 26,414 31,883 21,317 Williamaburg 14,947 16,428 11,823 Ghambly.... 24,600 30,439 30,867 Ottawa and Rideau-... rO,Z75 61,707 48,482 Carillon and GrenviUe.. 19,748 22,523 29,945 »n,iP^ $344,413 $388,164 $.386,287 *V 1875-6. 1876-7. Welland $146,619 $1 16,274 Lachine 72,119 62,829 Beauharnoia 32,772 '30,680 Cornwall 20,687 21,025 Williamsburg 20,284 18,592 Chambly 26,219 22,851 OtUwaand Rideau.... 42,948 42,280 Carillon and Grenville.. 23,736 22,633 ,1- $384,383 $337,164 The charges on Government railways nnd telegraphs have been as follows : ri72-3 .'Jl,063,882 1873-4 1,S77,169 1874 6. .....•.'... 1,621,664 J875-6 l,r..36.403 1876-7... 1,023,321 Adding these tog&ther, the totals are as ft Hows 'ir the principal canals and the nil«vays a^^d telegraphs : 1872-3 $1,408,295 1873-4 2,265,3.33 1874-5. . . . ».. 2,006,941 1875-6. . . . ; . ." 1,920,786 W76-7 'i .'J'l'i •. ........... . 2, 269,486 It will be ohserved that as between 1873-4 and 1876-7, there is a decrease in Wolland canal charges of $55,000, the works begun there in 1874-6 rendering a large staff on the old works unnec jssary. But that aside there has been no tangible decrease. ' Now let us make a total of these run- ning nxpenses. It is often contended on behalf of the Government that the Mac- ooiTALD Ministry made so large an increase to the public staff prior to their resignation in November, 1873, that tlieir successors have found it im- p«)asible to reduce the running ex- penses. Put in logical form this plea is — A was so outrageously eztrava- gaiit that B, who pledged himsolf to cut down A's extravagance, found the task impossible after a five years' effort. -4 But assuming that the Macdomalb Ministiy was responsible for all the in- creases in 1873-4. Assuming that they made all the new appointments, even Jenkin.s', (luring their four months' tenure that vear, and that in their eight montlis' tenure the Mackenzie Ministry disappointed their followers and abso- lutely refused to give an office or an in- crease to anybody. Assuming all this, let us compare the running expenses of 1873-4 with those of last year : 1873-4. 1876-7. ('ivil Government.. $ 883.700 $ 812,200 Immigration 318,600 210,000 Cuatoms Salaries... 668,.300 721,600 Excise Salaries 201,200 211,00) Administration of Justice 459,000 665,600 Pensions . 50,400 1 12,500 Superanuu ation Fund 64.400 104,800 Pubho Works 2,265,300 2,260,500 $4,906,900 $4,998,200 This shows an increase of $90,000. Now let the reader remember what has been yielded in the Government's favour in this table : (1.) That the Macdonalb Government made all the appointments of 1873-4 and that the present Govern- ment made none ; and (2.) the sum of $144,000 has been struck out of the Im- migration totiil of 1876-7 because it is olaimed to be spocial Icelandic and Mennonite expenditure. Yielding all that, and it is giving the Government their whole case, the fact remains that the gentlemen who took office to cut down the expenditure have increased the running expenses of the country $90,000 at a period of extreme depression and in an era of chronic deficits. ;' Not only tha+ — thoy have spent this much more in doing less work, for there is a wide difference in the Immigration and lU'Venue Collection returns of the two yervrs : > w .,^ , . ,, .1873-4. 1876-7. riMrtN) ...;;... ;vh' '""28,'8M>' •■7,743 OastonriB HereniM ooUected $14,410,600 $12,556,800 Excine Revenue ooUeoted $5,639,000 $3,869,700 In the above even the itnpositible has been yielded in the Government's favour. It id impossible, for instance, that gen- tlemen who hS) Interoolonial Railway... 4, »7,900 8,417.700 2,e45,600 Konh-WaM.. 6S.200 Nil. Nil. Debu ullowed Proviaow.. 18,860,000 4,027,0<'i» Nil. l>f ii'-'f- fl9,8«4,200 •10,l■• • •' • •'V •*#'•• 116,008,400 1876. ^titfty «».«.iiivMi*i -Jii^ ttt'. 124,551,600 1877 . . .ji j*.,rt. ..y,|.M . ^'^' .^t , 133,000,000 u In behalf of th« Oovemment it is often urged that a large incroabe in the nadonal debt occurred under the old Administration. True, the Reform Party condemned tlie increase under the old Qovernmjnt. The theory of a de- fence of this kind — and it is a favourite one with tlie Miuiaberialiats in the House and country — is that they are justified by that which they condemned in others. Between 1867 and 1873, the debt increased ^:i4,000,000 ; between 1873 and last year, 033,000,000. As Mr. Mackenzik and his friends con- demned their predecessors for increas- ingthe debt $24, 000,000 in six years, their defence of the increase uf !?33,0O0,O0O in their own four years is a lame one even on their own peculiar tiMory of justification. • The largest increase under the old Crovemment took place in 1872-3, when the debt rose nearly 018,000,000. But of this increase nearly $14,000,000 — as will be seen by reference to the Capital Account table above — consisted of the debts of Ontario and Quebec, and other Provinces which, by Mr. Tillby's Act of May, 1873, the Dominion assumed. By the 112th and 118ch sections of the British North America Act a stipulated amount of debt, viz., $02,500,000, was assumed by i'ne Dominion, and the ex- cess of debt over that amount, viz., 010,500,000, devolved on Ontario and Quebec, the former becoming responsi- ble for five-ninths, or 05,833,000, the interest of which at 5 per cent. , viz. , 0291,000, became an annual charge on the revenues of Ontario, and was paid from 1868 until the Tillby Act placed the whole 010,500,000 on the Dominion. Debts of other Provinces to the*amount of nearly 03,500,000 were assumed at the same time. This accounts for the enormous increase in the debt in 1873. ^ut as a matter of fact it is not an in- oirease at all, being merely a transfer of the debts from the Provinces to the Do- minion. As to the other increases be- tween 1873 and 1867, tJoia is wb«(! Mr^ Cartwkioht told the London finanoien in his circular of the 19th' Odtober, 1875/ when he was negotiating a loan there : " 'fke whole of the debt has been inonr- red for legitimate objects of public utility. * * • The indirect advao-) tage from tliese public works has already been found in the remarkable rapidity with whicli the commerce and the material pros- perity of the Dominion have been devel-^ oped ; while a substantial increase in the direct returns may fairly be expected from the improvements now in progress and to follow the steady progress of popo- lation and trade. 'X l»5ii' <9r-r.*it9in ijM s>> The revenue has shown a continuous ant" plus during each year since Confederation, in 1867, although it has in the interval been charged with much heavy expenditaro of an exceptional kind, such as the outlay connected with the several Feniaa attacks on the country, the acquisition and organ- ization of new territory, and providing an adequate defensive force for the Dominion. * * • * The eight yoar» since Confederation, therefore, exhibit an aggregate surplus of two millions four hundred and forty-three thousand one hundred and eleven pounds (equal to eleven millions eight hundred and eighty- nine thousand eight hundred . and night dollars, and not including the sinking, fund) which has been partially applied in the redemption of debt, and partially ex- pended in new works. The annual pay- ment for sinking fund is included in the ' current expenditure, and forms in the ag- gregate a further sum of seven hundred thousand pounds (or three millions foor hundred and six thousand six hundred and ' sixty -eight dollars) since Confederation." Mr. Caktwright has since alleged that in this circular he merely showed the London capitalistsi the " silver side o^ " the shield,' concealing the brazen aide' — which means in plain English that he got their money under false pretences, ; We prefer to accept his circular as an- honest statement. His friends can hare it struck out of this record as bogus ok shouldering the inference. '^"'4i' . i. ;■ % From what has been ostabliahed in the foregoing cliapter — and to make the narrative plain the iigur^s in the Public Accounts have \>een ftcuepted as they stand, no exception beiii^ t:\kon to the msmner in which tlie Finance Minister h|U m4de the expenditure in 1873-4 look bigger than it actually was, and the expenditure in 187G-7 lof ©fij gpiiwEq mar -!'«:•. •fr>'^ Hr.ium'm'-i' -'^ .■*M"'''.fcAI'.?'>T»M -ttjH 0(97. It ■'•->>,_ necessity for Economy created by "hard "times." (3.) That so far from reducing the running expenses of the machinery of goremraent which they denounced a» grossly extravagant, they have largely inoreasod them, i ,/ * ^iT V^vl (4.) That instead of reducing this national debt they have added more to it in four years than their opponents did in six. - .'■ -^ '■ '•' (5.) That instead of enjoying " » "career of material prosperity and "material progress" under their man- agement, the country is suffering griev- ously from deficits by which its credit i» being impaired and its future injured. ,c • V; *r3?r<.o^ i-M *ftfiJ feW'jJvmij: -'»>?. la .f>H'iin> . i ~ff4' hitii Mui nmOlH^. iM^f r-:f4i/:i; ■ j erfj Iii]dii bm ■l\''li^t^ .' -v liari* Vj'vl/!iurtUi-«'is It "*nii.»8 tlA .V;"'-"i.M'.{ W 'U(."i»I, '4<.>i ytiq • ; Jir:« *(i3- r f *ri*r.Tt«iiC/: to i/;o ii ft J'TTOfffli. .^M .vumoxl !>«« ,05^ fes^s^fll' « ftpw .«!? Haw©-? eirf ".oj 1 «■ ■«"i*' 18 ■■i.,:M^.^j^ EEOOHID OIF 'UI>,)M ttg4jV^ EXTRAVAGANCE AND CORRUPTION » ■ ^ « »- ! Umi Whbn a party has been out of office a quarter of a century, it is only in the nature of things that its supporters should be hungry for the spoils. It is possible that when Mr. Maokknzib took offiee, it was his determination to guard the Treasury closely and keep faithful watch over the public expenditure. Events show, however, that he was soon overpowered by his rapacious followers. Some of these had spent lavishly of their means in maintaining lus cause. Others, deserters from the Conservative side, wanted pay for their treachery. All were eager to get at the loot ; and if the Premier ever reckoned on keeping them at arm's length, he sadly over- rated his own moral strength, and un- derrated the tremendous influences with which they bore him down euly in the day. ^ THE SURVEY PAYMENT TO MR. FOSTER. Among those who had served the Re- form Party by betraying Sir John Mao- DONALD was ex-Senator A. B. Fostbb. His services had been of the dark-lan- tern order, resembling in moral degree those rendered by McMullbn of Chica- go, and NoKBis, Mr. Abbott's confiden- tial clerk. Mr. Maokbnzib had scarcely warmed his chair in the Public Works Department, when Mr. Fostbb appear- ed for his reward. He was a railroad man, a railroad contractor and specula- tor in railways. The Premier, who had itke magnificent water-stretches scheme in his head at this time, determined to give Mr. Fostbb a contract for building the Georgian Bay branch of the Pacific railway. According to his Opposition principles, the letting of a contract of this kind required the consent of Par- iament ; but it was there and then given to Mr. Fosteb, the urgency of the case, as the Premier afterward pleaded, and the necessity for the early construc- tion of the branch rendering it incon- venient to wait for the assent of the House. A few months prior to this, Mr. Mackenzie was railing at the old Government for contemplating the let- ting of a contract before the route had been surveyed by the Government engineers. Yet he gave Mr. Fostbb this contract, although the line had neither been fixed nor surveyed. Mr. Fosteb was to begin construction on the Ist June, 1875, and have the work com- pleted by the Ist January, 1877. The contract also provided that Mr. Fostbb should be paid $10,000 a mile, and 20,- 000 acres of land per mile, and, in addi- tion, that he should be paid interest on the sum of $7,500 per mile for a period of twenty-five years after the comple- tion of the road. The contract also provided that in the event of the contractor failing in his agreement to complete the work by the time specified, the Govemor-in-Oounoil should be at liberty to take it out of his hands and complete it at his expenae. It also provided as follows : " The OoT«rnor-in-Connoil in tb« event of hie Minulliug thia oontnot (for failure on the part of the contractor) may direct the Minister to proceed to re-let the laine or any part thereof or employ additional workmen, tools and materials aa the case may b«, and complete the works at the ex- pense of the contractor who shall be liable for all extra expenditure which may be in- ourred thereby, and the contractor ihall forfat all righl to the per rentage re- tained and to all money which may be due on th^'UOrks or tecuritiea depoHtted. " To bind this, Mr. Foster deposiUid the Bum of ^85,000 in the Ontario Bank as security. He began the surrey of the route and proceeded in a desultory lasbion until early in 1875, when, bufore he had struck a blow ai construction, ue abandoned the work and the contract. It was then Mr. Mackknzir's duty to oanflscate Mr. Foster's securities or pro- ceed with the work at Mr. Foster's ex- pense, as by the contract provided. But Mr. Mackenzie did not do his duty, nor fulfil the law. He not only handed Mr. Foster his securities back, but proceeded to entertain his claimB for indemnity and paid him $41,000 for the survey work he alleged he had done. Instead of Mr. Foster being made to suffer for his breach of contract he was indemnified for it, and the country suffered. Here was a Re- former letting a vast contract without the consent of Parliament, and then set- ting the law at defiance and paying the contractor for failing in his agreement. The only defence put forward on be- half of the Premier is that the $41,000 was paid on the certificate of Mr. Sakd- FORD Flkmino, the chief Engineer. It is not contended that Mr. Mackenzie did not violate ehis old-time principles in letting the contract without the con- sent of Parliament. Nor that he did not disregard wantonly the terms of the contract itself providing for the forfeit- ure of the contractor's claims and secu- ritiM in case of failure. These ques- tions are begged, and a wretched pis* advanced that Mr. Fluuxo oartified that $41,000 worth of surveying had been done. But this is a false plea. This is what passed on this branch of the subject before the Oommittee ;. \n '* Dr. Tupper— The order-in-Counoil re- quires the engineer to certify before pay- ments are made. Do you hold yourself re- sponsible for the payment of this $41,000 ? " Mr. Fleming — No, not at all ; I never certified for the payment. " So that the Premier not only let the contract without Parliament's approval, and not only broke the law and the con- tract in entertaining the claims of the conti actor after he had failed even to begin the work of construction, but paid him for work of which he had no know- ledge. As a last excuse Mr. Maokxnzib puts forward the following letter from Mr. Flkuino : < . ttmY^f " I have made every enquiry into the iiubject, and feel assured that in the event of the Georgian Bay contract being pro- ceeded with, the expenditure incurred will generally lie available in the prosecution of the work." This is not a certihoate for the $41,* 000, nor a warrant for the Premier's breach of his Reform principles and of the law. It was written two months after the money had been paid to Mr. Foster, and was the result, no doubt, of an appeal by the Premier to his sub- ordinate to help him out of his difficulty. But alas ! there is nu sohd comfort even in this brief note for the taxpayers, for according to the Premier's latest scheme for constructing the Georgian Bay branch, the route will not cover the line traversed by Mr. Fostbb's sur- veyors. i Tut i'cno 4- .ijU- >;i <,(it«n.''Ju<»l> THE EAlLS PAYMENT TO Mi^: FOSTEE. Forty thousand dollars is a big sum to a poor man who works for a dollar A day, or to a farmer who thinks he. is making money hand over fist whea-^he % Mn |>nt tkwnj $500 a year. Bat to men in Mr. Fostir'n position it ii • trifle ' "nd he wanted more. He wa« given the oontract for the Canada Oen- tral extension , running from the village of Doiiglaa to Burnt liftke, the eastern terminus of the Gktorgiun Bay branch. The Ministor of Public Works was au- thorized to make payments on account of " rails delivered at any point of tho " line to be constructed to the ex- " tent of 75 per cent, of the " value thereof," provided only the contractor was making such progress as wot.ld show that the contract would be oom[>letod by the 1st January, 1877. Mr. FosTBR, before abandoning this con- tract also, had dumped 1,906 tons of rails, not " at any point of the line," as the contract demanded, but at Renfrew, ten miles distant from the line. For these rails Mr. Mackenzie paid Mr. Foster $68,000, after he had abandoned the work and broken his agreement to complete the road by the 1st January 1877. When the matter came before the House, Mr. Mackenzie defended himself by laying the responsibility on Mr. FhKMivo.— Hansard, 1877, p. 343: "Mr. Haggart— On what was this money paid ? On rails ? " Mr. Mackenzie — I have iust mention- ed what it was paid on. I was stating that the order-in-Council provided for the pay- ment of 75 per cent, of the value of the rails, as they were delivered at any point on the road. " Mr. Haggart — But no rails have been delivered at any pointr^;*^ ^j^,^ , " Mr. Mackenzie — The hon. gentleman says no rails have been delivered at any pointon theroa:!. I can only say, in re- ply, that the certificates of the engineer declaring that they were delivered are in the Pablic Works Department. I never made an examination to see whether the rails were delivered or not, but I am bound under the law to make payments upon re- ceiving such certificate that they have been delivered, and these certificates were of Morse presented." And again, page 344 f'"'^''^ *'^ " " Mr. Maokensie — I can only 8t«t«r >n reply to the hon. gentleman (Mr. Hag- gart), that the oertifioates of the engineer will be prodnced. I was not aware that they were called in question. I do not know that I ever saw them. The oertifi- oates came in the usual way, and were paid in the usual way by the officert of the Department. I have no reason to believe that Mr. Fleming, who is a very oareful officer, would give false certificates." Here the ruspoUBibility was thrown directly on Mr. Fleuino. Now, if 76 per cent, of the value of 1,906 tons of rails was $68,000, their full estimated value must have been $85,000, or over $44.50 per ton. But these were nottsteel, but iron rails of a very poor qjiality. Mr. Mussbn, the Inspector, testified as follows before the Committe : "Mr. Kirkpatrick— What was the quality of the iron ? A. It was not exactly the best of iron. I have seen better. " Mr. Kirkpatrick -Have you ever seen worse il<'Uii A. I don't think I have. " Q. What is the character of the rails i A. The section is good, but I consider the quality poor. "Q. Did they break T A. They broki sometimes. One was broken by dropping it. Some were broken by the excessive heat. I could not say exactly whether it was a correct description of them to say that they were a thin crust of iron and an inside of rubbish and slab. The rails are not much used, only one train a day ranning on them. They are not all worn out yet. The value of the rails was, he thought, from $30 to $31 a ton at Montreal. He did not know what the freight from Montreal was. " The freight to Renfrew from Montreal would be $2 a ton at the outside ; but suppose, freight included, they were worth $36 a ton as they stood in the pile, the value of the 1,906 tons would be $68,616, yet the Premier, on Mr. Flbmino's certificate as he told Parlia- ment, paid Mr. Foster $68,000 as being. m 75 per cent, of their value. It turned out, however, thnt Mr. FoanE had bur- rowed 227 torn uf thu pile, which to this day have never been rtitumed. True, he gave Beciirity for the borrowed rails, depositing with Mr. Macksnzik bonds of the South'Eostern railway to the face value of £6,000 ^tg. Without con- sidering the question of Mr. Maukbnzie'h right to lend public property, sufiice it that these bonds were utterly worthless. The Bouth Eastern railway was a wild- oat scheme, and its bonds never had a value. The Premier was asked about this in Oommittee : " Dr. Tapper — Would you be surprised ■to learn that these bonds cannot be sold for anything ? ,/«'' "Mr. Mackenzie — I have no reason to be fiurprised or pleased, for I know nothing »boat them. " The sum and substance of the whr)lo transaction was that the country paid ^8,000 for 75 per cent, of the value of 1,906 tons of rotten rails worth at tho outside when new $68,600, and held worthless bonds in the place of 227 tons of them. For all of which, said Mr. M ACKSNziK, Mr. Fleming was respon- .sible. ■"" ■ •'" "--^"'"^ • "* '■'" ■ But assuifedly Mr! FtEMiNo'was not responsible for the Premier entertain- ing Mr. Fostbr's claims after he had abandoned the work, nor for lending Mr. Foster the 227 tons, nor for ac- cspting the worthless security. Nor, as Mr. Fleming told the Committee, was he responsible for the valuation of the rails claim, He was aske.l if lie certi- fied the payment of the 168,000, atid his answer was :t^ HVirmd fdMn i«' " No. My authorities for this payment were partly the order-in-Couucil and partly verbal instructions from the iStinvitd- of Piihlic Works, to whom Mr. Foster made application for payment for the rails." As a matter of fact Mr. Fleming, as he told the Ck>mmittee, did not know what quantity of rails Mr. Foster had de- posited, nor where, though he had heard that he had dcpoaited soine. He wrote a note- «t whose request the evidence does not show — stating that Mr. Fostui had deposited a qtiantity of rails (num- ber of tons not given) along thu Canada Central Extension. Mr. Maokbmzib wrote on the back af this note : " This " may be paid in accordance with the '• order-in-Council, 4th November, 1874. •• See journal, 1876, page 219.— A. M." And Mr. Foster, who had abandoned his contract, who was entitled to no- thing, pocketed the $68,000, while the taxpayer secured 1906—227 - 1679 ton* of old iron rails and £6,000 worth of worthless bonds. Just how this sum of $68,000 was arrived at, or who and on what basis it whs figured out, the evi- dence does not disclose. This closed Mr. Foster's account. He had secured $109,000, and evi- dently cousiderud that he had been pretty well paid for his services, for he retired forever from the Public Ac- counts, i i^'w * JTOuW Mi;. J. D. EDOAR. So long as the Reform Party controls cither the Dom'iion or the Ontario Treasury, the taxpayer may look for this patriot's name in the Public Ac- counts and be sure to find it. Every new defeat at the polls only gives him a new claim. It would be money in the national pocket if Reformers and Con- servatives would agree to return him to Parliament by acoUmation for life. In January, 1874, he was dofented in Monck. He showed the fresh, gaping woinid to liis leaders at Ottawa and was at once despatched on Government ser- I vice and at the country's expense to the j Pacific slope. His bill will be found in I the Public Accounts for 1874 part 2. p. 155 and Public Accounts for 1876 part 2, p. 178 :— 1874— J. D. Edgar, account of ex- penses to Bn'tiah Columbia $5,000 1875 — J. I). Edgar, expenses as dalegate (to Brituh Columbia. . . . 1,000 $6,000 isi Other than that he gorged his poetic loul on the grandeur of the Yosemite, 'iand then let it loose in a series of let- ters to the Ohbe, there is no record of what he did for his ^0 a day. f'v "fcio «ijk.i,»'(.i^<;«.i.».. - ^ ..t ImTiJiTiL "f ^ '' MR. DAVID MOOR^:" ""^'' Mr. MooKK, at one time a Conserva- tive, joined the Reform party, and ren- dered signal service to Mr. Blake in South Bruce in 1867. He is a farmer and a good one, but when the Reform leaders gained office he suddenly turned contractor. He wanted his reward. In January, 1874, tenders were called for works in connection with Goderich harbour, and Mr. Moobe, armed with this little note from Mr. Blake, pro- ceeded to Ottawa : f,. ijm-'AD Kkii-U " Toronto, Jan. 2nd, 1874. " My Dear Mackenzie,— David Moore, of Walkerton, asks me to inform you that ho is about to tender for the Goderich works, and I do ao accordingly. I told my friend Moore that an introduction was unneces- sary, as you would let the work fairly with- oat respect of persons. " EDWARD BLAKE." The four lowest tenders for the work were : Tolton $182,630 *•■ '• Neilscii 200.375 yd- Ellis 212,155 ^ Moore 212,540 Mr. Moore got the contract from Mr. Mackenzie. When the matter was brought up in the House Mr. Macken- zie explained that the contract was not given to Tolton because his tender was so low that it would have involved him in ruin, and further that nothing was known of him as a contractur. But Tolton's tender was 20 per cent, higher than the price for which similar work had been done in the same iiar- bour with profit to the contractor and to the satisfaction of the Government. ^Further he had agreed to sub-let the dredging portion of the work to that ' eminent contractor, the late Mr. John Bbowk of Thorold, at a profit on his ten- der of 812,000, and he had good reason to believe that he would have cleared at least a like sum on the re- mainder of the work. As to Tolton's obscurity as a contractor, he was well known to the Government as the con- tractor who, a few months prior to the Goderich tenders being submitted, had completed the works in Meaford har- bour to the satisfaction of the Public Works Department. His sureties, Sheriff Sutton and Mr. Henry Tolton, were well known in Bruce as men of means and repute. He had received the highest possible commendation from the bank with which he does business, and the bank manager's letter had been communicated to the Department. Lastly, Mr. David Stieton, then one of the Reform members for Wellington, sent a telegram to the Premier on the 4th January, 1874, as follows : " To Hon. Alex. Mackenzie, Mrniattr oj Public Works, Ottawa: " I understand that John Tolton, of Walkerton, has tendered for the Goderich harbour works. Mr. Tolton, is a thorough, practical, honest, and reliable man, finan- cially able and accustomed to the construc- tion of public works. The securities named are reliable, sound men. " D. STIRTON." Yet in the face of this evidence as to Tolton'.s ability to fulfil his obligations and his experience as a contractor, the Premier gave the contract to ' ' My friend, " Moore," who in all his life before had never contracted for a public work. Moore thus got his reward. Ho was a poor man before he got that letter from Mr. Blake ; he is to-day the owner of a handsome property in Bruce for which it is said he paid ^0,000. tas^ffe riff. ADAM OLIVER AND HIS FRIENDS As hungry a Reformer as any that hailed the advent of the Party to power was Mr. Adam Oliver, of IngersoU. An ignorant and boorish man, Mr. Oliver ts is neverthelefls gifted with much shrewd- neaa, while his whole life haa been one big job, Mr. Joseph Davidson, one of his partners, is also an accomplished schemer, and the remaining member of the firm, Mr. P. J. BfcowN, is the law adviser for the concern. These three men had acquired a considerable quan- tity of land in the Lake Superior region. Xn 1872-3 they secured lot No. 6 in the Township of Neebing, 136 acres in ex- tent, for 96 au acre, or a total of nearly ^00, and later they secured a small por- tion of the adjoining tract which came to be known as the Town Plot. Intrin- sically, thei Did Mr. Davidson Ishow you any map that he had of the railway reserve there ? He did ; he came in and shownd me a map. It was coloured the same as the plan exhibit "A." Did he say where he got this map. He said he got it from Ottawa. Was any person present when he showed you this map ? Yes. Who was it ? Mr. Savigny, of Toronto, • surveyor. THB MYSTBRIOTTg FAC SIMILE MAP. After this conversation Davidson and Cla£K went to Mr. Saviqny's office, which was in the same building and on the same floor as Clark's. Savivjny also owned lota in the district. Olark left Davidson in Saviqny's office, and here ia S avion y'.s account of what then passed between him and Davidson — idem p. 6S : Yon knew of John Clark selling his land to Davidson ? Yes. Did it excite any surprise in your mind that Oliver, Davidson & Co. should be giv- ing $9J a lot for what you paid only $4 or $5 ? I certainly thought it was a very large price. Do you know how much they gave Jolin ( !lark for his lots ? Merely by Iiearsay ; I dentiftL At page 69 SAViamr tella how he uqade a tracing of DATii>soN'a tracing on a nu4> in hiaolMoe. He ia aaked about thia:— When did yoa do tiuit; on the wme day ? — Yes. With Mr. Davidson's permisaion T — I do not know that I asked his permission ; but he did not object to it. I had a plan of the town plot, and I merely marked the outlines with a pencil on it. Was the drawing of the reserve that yon made on your plan, taken from Mr. David- son's plan, or was it merely from your re- ooUection of Mr. Davidson's plan ? — Mine was a copy of the plan in the Department — not properly a map — a plan which I re- ferred to whenever I lad any business in that locality, and I copieJ the reservation from Mr. Davidson's plan into my own. Did you do it directly from Mr. David- son's plan, or did you do it from your recol- lection of it ? — From the plan. 'm.>v jsrxr.v At page 72 the Committee press him still further on this point, and elicit the significant fact that Davidson's tracing corresponded exactly with the reserve afterwards announced by Mr. Mao- KENZIB : You had a map, showing the town plot, hanging upon the wall of your office ? Yes. And upon that map you marked, in pen- cil, the reserve from the plan shown to y,ou by Mr. Davidson ? Precisely, r.i |.!!i.,'4'.i Did Mr. Clark tell you that he had learn- ed that information from Mr. Davidson, or did you communicate it to him first ? He told me first that Mr. Davidson had shown the plan to him in confidence. I was rather surprised when he told me that Mr. Davidson had a plan of it in his pooket. Said I, " Did he show it to you ?" he said " Yes ;" I saidt " Ue baa .shown it to me, also." iJRj^ 'jllrtafK? ;.nni '.:.:ir Was Mr. Clark present during the con- versation with Mr. Davidson about this inattor 7 He might have been present sometimes. Mr. Davidson used to come daily into our office. There was a good 4aal of excitement at the time about the terminoa, and they used to come daily into our ofice to talk it over. Were you present when Mr. Davidaoa showed the plan to Mr. CWk? Noj I was not.,;,.^ ^,^V «£> ,(-^ \ Kr,,rt'V ifX'ttn^iy. How did he satisfy you that the land marked on the plan as being reuerved, was really authentic ? He told me that he had it from the very best authority. , r, , , ' tnj Have you had it verified since ; that the land he had marked on his map was actu- ally the reserve that was afterwards takeu t Yes. They corresponded exactly,,,,, ctu>-j'>i WH6 was " THB VEKY BEST AUTfiOkirvf* K'ow it is a singular fact, and una strongly confinnative of the theor}- that Oliver & Co. received advance informa- tion as to the intended reserve, either from Mr. Mackenzie himself, as David- son told CiAKK, or from " the very " best authority," as he told Savigny, that while Davidson was thus walking about Fort William buying up the Town Plot with this mysterious map in his pocket, Mr. Mjtrdoch's report condeinu- ing the Town Plot and recommending the McKbllab farm as the si>:e, was then lying in the Department at Ottawa, nor was it until the 23rd January. 1876, that this report was set aside and the selection of the Town Plot officially made public. In his evidence before the Senate Committee in 1877 Mr. Sandford Flsminq swore the Town Plot was not officially chosen until then : and he said the Gcvermnent, ».e., Mr. Mac- kenzie himself, selected it : Was the terminus of the Pacifle railway located at Kaministiquia by your advice? A. It was fixed in a consultation with me (on the 23rd January, 1876) and I made no objection to it. W/io selected tlie terminus point i Wluo located Ut A. The Government aelected it. But who located that particular ptnnt ? A. The Government selected the terminus of the Pacific railway on Lake Superior, j Who selected the particular piece of ground ? A. 1 did ; I recommended that particolar pieoe shown on the plan betoi u }■'■• if th>) Committoe, coloured red, as land re- quired for the Pacific railway. The Town Plot was surveyed and laid down on the map, the Government fixed upon the Town Plot h« twminal grounds be •onsidtred. 'irhe height of the banks was considered by the engineer in cliarge of the surveys, Mr. Mur- doch, a serious objection to the present site ; and he, in his report to the Govem- m^ht, strg'gested that a plac^ further down the river towards its mouth should be seleoted for the terminas, to obtain loWer levels and longer navigation in the fall of the year. No notice, however, appears to have been taken of his recommendation. Your Committee is of opinion that had the suggestion of the local engineer been acted upon, a better terminus would have been obtained below the town plot, and at a much smaller cost. The line of railway could have been made to termmate on the river bank at the McKellar farm without increasing its length or passing through the town plot, while the river navigation would havo been shortened ; and the loaality named possesses all the requisites for an important railway terminus. The obtaining of the necessary land would also have been greatly facilitated, as only one or two lot- owners would have had to be dealt with, whereas, at the town plot there were fifty- fire, the arranging with whom occupied two valuators and a solicitor for months at a large expense to the country. The evidence did not disclose any reason which, in the opinion of your Committee, can be accepted as satisfactory, for deflecting the railway in order to make it enter the town plot of Fort William at the western limit, and then to pass through all the front lots to the eastern limit. From the McKellar farm towards the mouth of the river, the bank is of a convenient height for docks, and the land is favourable for terminial grounds ; the river flows in a straight course to the lake, making the navigation safe and easy, whereas between the point named and that adopted for the terminus, there is a sharp elbow in the river which necessarily increases the awkwardness of navigating it. The dis- tance from Murillo station — the first station west of Fort William—is as nearly as possible the same to the river at the McKellar farm, as te the teMninus at the town plot. For these reasons, yeur Com- mittee is ef opinion, that the temuuus was ao4 i«di<»oufily oho^wa." jao •;; >/ y^.lMtb ,{/•),; TRX SPBCTTLATOKS' HABVlUT. Having thus secured the terminus at the Town Plot adjoining their Neebing township lota, having thus been enabled to buy up many of the lot* there through information and even the posses- sion of confidential maps obtained from " the very best authority;" having thug sowed, Oliver and his fellow conspira- tors began to reap. In acquiring land for railway purposes, arbitration is al- ways resorted to. The owner is tendered a fair and reasonable price, and if he objects the matter is submitted to arbi- trators. But in this case the Reform Government ignored that wholesome system, and employed two valuators, Mr. Wilson, surveyor, of Mount Forest, and Mr. Robbet Reid, stationer, of Iiondon, vrith Mr. P. J. Beown, of Oltvee, Davidson & Co. , as their legal adviser ! Of what followed the Senate Committee report says : j,,*, ,, j/ .; " In 1876 when the valuators visited the town plot for the first time officially, the film of Messrs. Oliver, Davidson & Co. and their conneotiens were the principal owners of the lots which were taken for the railway terminus. Notwithstanding this fact, the Government appointed a member of that firm, Mr. P. J. Brown, a lawyer, to act with the valuators. His duty, it has been stated, was to advise upon titles, bat his instructions did not restrict him to that special duty. , The evidenoe of the valuators shows that he did advise them, aad that his advice when given was, perhaps, not unnaturally, in favour of the lot owners, and against the Government. He gave it as his opinion that the Railway Act of 1868 did not apply to the Canadian Pacific railway. So far did he go in advising adversely to the Govern- ment, that the Prime Minister testified before your Committee that, when his at- tention was called to the subject, he ' was very much surprised,' and that he ' wrote a somewhat angry letter to Mr. Brown. ' It has been clearly proved that Mr. Brown was an interested party, and your Committee submit that he, there- fore, ought not to have been employed in any oxpiiAity in iododBtion with the valufitors. " The Act of 1868, above referred to, provides with reference to arbitrations for land required for railway purposes, as follows : " The arbitrators, in deciding on such value or compensation, are authorized and required to take into consideration the in- creased value that would be given to any lands or grounds through or over which the railway will pass, by reason of the passage of the railway through or over the same, or by reason of the construction of the railway, and to set off the increased value that will attach to the said lands or grounds against the inconvenience, loss or damage that might be suffered or sustained by rea- son of the company taking possession of or using the said lands or grounds as afore- said." The Sei^te report then goes on to say : " In the '^pinioa of your Committee the prices paid for land taken for the railway in the town plot of Fort William and in the adjoining lot. No. 6 of the township of Neebing, were exceedingly and unaccount- ably extravagant. The town plot was a town only on paper when it was selected for the railway terminus. Previous to that, the regular price at which ^the On- tario Government sold half-acre lots was four dollars, and, but for the railway, these lots would be of but little more value to- day than they were then. For the land taken from Oliver, Davidson & Co., and others, the Government paid at the rate of $500 to $600 per acre. In 1872 or 1873, Oliver, Davidson & Co. purchased lot six in the township of Neebing, adjoining the town plot, containing 136 acres, for about five dollars per acre. Your Committee submit that tne enhanced value of this pro- perty was due to the placing of the ter- minus where it is. Yet for eight acres of it the Government, advised by the valua- tors, paid about five hundred dollars per acre, being about four thousand dollars for eight acres, or over three thousand more for the eight acres than Oliver, Davidson & Co. paid for the entire lot of ooe htmdred. and thirty-six acres. " .==»" '>' 16 Glass— panes 48 -rr':if; 223 Glass— boxes NU 23 Lumber— feet 46,000 or 50,000 65,752 Estimate of cost. . . $3,000 $5,029 In estimating the actual cost of the structure at $3,000, Henderson (p. 113) said this " would be a big price for it" The valuators accepted Oliver David- son & Co.'s bills without examining them, and when before the Committee, Mr. Wilson admitted the following discrepancies, Senate Report, 1878, p. 1-8 : ■ i i") ij>»gi >!/.',* I. . Used in Charged to Structure. Oovemment, Liiheh— barret .... 2 rooms, 1 8ft. x 16ft. plastered 10 BoUed oil— gals. . . Nil 26 Turpentine — gals.. Nil 10 Glass 4 windows $92.52 Shmgles 80ft.x24ft. shingled 46,000 Flooring- feet. . . . .; .^ 1.920 15,872 Sash fasteners ... . , IfU i 4 doz. Tin : ' Nil 66 feet. Locks 10 81 Knobs 10 81 Mr. Wilson also discovered while being examined by the Committee that the lots on which the structure was built had been charged to the Government twice over. There were two lots for which the Government paid $250 each on buying the reserve, and on selling this alleged hotel, Mr. P. J. Brown, the Dominion agent and law iidviser to the valuators, charged his principal, the Government, $500 for their own land ! How the valuators acted in this matter is clearly shown by their own evideooe. Mr. Wilson's evidence p. 9 : m^t Did It occur tu you that it woaid bs j^' • '>i» •dvisable to have got an affidavit from Mr. Oliver, or from Mr. Flannagan, his book- keeper, as to the quantity of material that was fnmiahed for that bnilding? Mr. Oliver assured me that that was the very least that they would accept for the build- ing. Did yon not think it would have been important to have had that verified ? I think so. tV^JI ,•■ tn t.;!( ; '. These accounts include a large quantity of material that was not, and could not have been used in the building— did you, as vralnator, take any steps to see that these articles not used should be secured to the Government, or what would become of them ? We took no steps to secure it, Bot knowing that the Government would accept the building at those prices. BSTIBIATEH OF COST. Mr. Beio, the other valuator, tells a similar story. He gave a verbal de- scription of the hotel, with some of the measurements, &c., to Mr. Duband, an experienced builder in London, who estimated its cost at $2,500. Mr. Frakcis Law, manager of the Law Building and Manufacturing Company, of Meaford, who examined the struc- ture,' hurriedly it is fair to say, esti- mated its cost at $3,044, p. 149 : Material |1,860 Labour 900 Contingencies 284 $3,044 Mr. Thos. D. Taylok, civil engineer, who examined the building and took careful measurements of it, made an esti- mate as follows, p. 134 : 7,200 feet of flooring at $18 per M - $129 60 42,427 feet of " all kinds" at $10. 424 27 28 squares shingles at $3 84 00 280 squares plastering at 16o., ene coat 42 00 14 doors at $3 42 00 13 windows with glass at $2.75. . 38 75 16 windows without glass at $1.50 24 00 • •' ■ $781 62 i For laboar 600 00 xrAm» Ttotsl.. . .i^?."J; *..*V. . . .$1,381 62 But tniB estimate ^oe? not inclnde hard- ware, nails, hinges, locks, etc. Includ- ing these, Mr. Tayjuor's estimate would not exceed $1,500. ,.;.,.^"i *.ti-^ni:r^'\lkl *" •^*T' AN nXBOAL CLAIM. ISi-H".'' 1 But the gross overcharging of which OuvBR, Davidson & Co. , or rather Mr. Bbown, the Dominion agent, was guilty, is not by any means the ugliest feature in this transaction. Clearly if Oliver, Davidson & Co. erected this structure on lots which they knew to be in the Government reserve, they were guilty of an attempt to extort money under false pretences, and their claim was vitiated and bogus. For if they knew the land would be required for railway purposes, they knew also it could not be used for hottil purposes. The evidence that they wv^-e well aware that they were building on land in the Govern- ment reserve is very strong. Hender- son's examination, p. 113 : Had you any reason to believe or had you heard before the bnilding was com- menced, that the land would be required by the Government for railway pnrposes? After I was st&rted. I was working on the cellar about the time when Mr. Mid- dleton, the engineer up there, came along and told me it seemed to be foolish to be building a hotel there when the land was reserved for railway purposes. Was he one of the railway engineers t Yes ; he was stationary engineer at the town plot ? Was he next to Mr. Hazlewood ? Yes. Did you report that to Mr. Oliver ? I reported thatto Mr. Oliver. Did Mr. Oliver seem to be aware of that before ? He did not seem to be aware of it before ? Was he surprised ; what did he say? He said if it was a Government reserve the Government would have to pay a fanoy price for the building. Did he tell yon to go on with i\> t Yes ; he told me to go on with it. And again at p. 116 : From the time that yon got notice from the engineer that the lots wonld be re- m c^Yfrtinng. . . . 1,657 75 are patent : '"J[f ti (1.) That in Novlmber. 1874, Olivbe, Davidson & Co. were aware that Mr. Mackenzie intended to select the Town Plot the site for the terminus, although his selection was not made offi- cially until January, 1875 ; and that with this inf orraation in their possession they bought up lots adjoining their own property which they afterward sold to the Government at an enormous profit. (2.) That Mr. Davidson declared that he obtained this advance information from Mr. Mackenzie ; and at the same time exhibited a tracing showing the intended Government reserve, which proved to be an exact facsimile of the map or plan subsequently issued by the Public Works Department. (3.) That in selecting the site, Mr, Mackenzie ignored the report of his engineer recommending the McKbllar farm property, and chose Oliver, Davidson & Co.'s property in the face of his engineer's grave objections to it. (4.) That while the McKellar farm was offered at $76 an acre, Oliver, Davidson & Co were permitted to charge $500 an acre for lands intrinsi- cally, and but for the railway, werth- less. (5.) That Mr. Mackenzie ignored the arbitration system in acquiring these lands, and appointed two valuators and a solicitor and adviser in the person of Mr. P. J. Brown, of the firm of Oliver, Davidson & Co. , the vendors. (6.) That by the advice and at the instigation of this interested agent, the Act of 1868 providing that the fictitious values lent to property by the proposed construction of a public work through or near it, shall not be reoognised u in- triiuiic values, was wholly ignored by the valuators, and the fictitious values recognized and aooepted. (7.) That Oltvbr, Davidson & Co. were allowed for an alleged hotel which they erected on land well knowing that the same was required for railway pur- poses ; that the Public Works Depart- ment set aside the report of the valua- tors that this claim was illegal, and paid Olivbe, Davidson & Co. 's bills, which were largely bogus, without requiring, as recommended by the valuators, an af- fidavit of verification, and without com- paring or checking them in any way. (8.) That by these corrupt, illegal, and fraudulent proceedings the country was compelled to pay nearly $70,000 for the terminus site, whereas the McKellar farm site, superior from an engineering point of view, could have been secured for little more than one-tenth of that sum. THE DEFENCE. The defence set up in behalf of the Government by Senators Scott, Simpson, and Haythornb, the minority on the Senate Committee, is as follows, Senate Proceedings, 1878, p. 401 : 1st. That the selectien of the Kaministi- quia River as the western harbour of the Canada Pacitic Railway on Lake Superior was most judicious ; inasmuch as the said river affords ample space for wharfage, where vessels may lie in deep water, pro- tected from all winds, and discharge or load alongside the rails. 2nd. That access to said river in its pres-. en* state is neither difficult nor dangerous for ordinary lake steam vessels, drawing ten feet, or even more, and that it may be rendered both easy and safe for vessels drawing 13 feet, by the expenditure of a comparatively small sum in dredging. 3rd. That the dredging operations already effected on the bar have proved successful, and demonstrate beyond doubt the practic- ability of obtaining 13 feet of water there, with a channel 66 feet wide, by the expen- dftnr* of tl8|060, and that any additional width of ohaouel whioh may be deemed necessary may be obtained by a proportion- ate outli^y. On this and other points con- nected therewith, your Committee may be allowed to refer to the valuable evidence of Colonel Kingsford, who was specially em- ployed to report on the capabilities respec- tively of the Kaministiquia and Prince Arthur's Landing. 4th. That, in view of the prospective in- crease in the size and draft of vessels navi- gating the lakes, the Kaministiquia may, without difficulty, be adapted to such in- crease, its bed being composed of alluvial deposits easily removed by dredging. >; . j;*/ 5th. That several mauater mariners and engineers of large experience have given in evidence their opinions, and agree as to the unrivalled capabilities of the Kaministi- quia, and its sj^ecial adaptation for the pur> poses contemplated. - j ..;,.,. , .•■■.,■:■■., To break the force of the contention that Mr. Mackxxzik ought not to have appointed Mr. Brown, of Olivie, Da- vidson & Co., the adviser of the valua- tors, it is contended that the Premier was unaware of Mr. Brown's connection with the firm. To that the answer is that he ought to have known it. Every- body else knew it ; it was notorious^ Indeed, in February, 1875, only four months before he appointed Mr. Brown, the Premier on behalf of his Sovereign Lady signed articles of agreement for the construction of the Canadian Pacific Telegraph line from Lake Superior to Red River between ' ' Adau Oltvee, of " the Town of Ingersoll, County of Ox- " ford, Province of Ontario, lumber " merchant ; Josbfh Davidson, of the ; *' City of Toronto, County of York, " Province of Ontario, lumberer ; and ** Pbtbr Johnson Brown, of the said •'* Town of Ingersoll, Esq., carrying on '" together the business of contractors, ■ " as partners under the name, style and •"firm of 'Oliver, Davidson & Oom- "*PANY,' of the first part, and her ** Majesty Queen Victoria, represented " herein by the Minister of Public " Works of the Dominion of Canada, of " the second part," etc. ^ ^ifma:7m h It is also maintained in defence of the Govemmeftit that the whole case is a frivolous one, that the overcharges were small, the fraud insignificant, the ille- gality slight, and the loss to the country paltry. But this is not a satisfactory justification or defence. In the first place 970,000 is not an insignificant sum as the times go to a country that has to borrow money to pay the interest on its debts ; and secondly, the Minister who permits his friends to fob $70,000 or f 7,000 or f7 of public money is, on prin- ciple, as imfit for his position as though he made over to himself the entire con- tents of the Treasury.ii -wl lKi\foUn («*>w — ♦— i, THE PORT PEA.NOES LOOK- ' Mr. Hugh Sdthkrland, of Orillia, once ran on the Reform ticket in North Simcoe and was defeated, though it is said he spent a considerable amount in " putting down bribery and corruption " with lots of money." Hence his claim on the Party. At the time Mr. BIaokhnkik was en- amoured of the " magnificent water- " stretches " scheme, he conceived the idea of building a lock at Fort Frances. His object no doubt was to make Rainy Lake, Rainy River and the Lake of the Woods a connected section of these water-stretches, his policy then being to run the Pacific railway along the line of the Dawson route, and attach it to a waterway at Sturgeon Falls, If that policy had been pursued, the lock at Fort Frances would have given anuninter- rupied waterway from Sturgeon Falls to the North-West Angle of the Lake of the Woods, a distance of 177 miles. But instead of running the railway along the Dawson or Southern route, and utilizing the waterstretches, Mr. Mac- kenzie changed his mind and chose a northern route which lies 100 miles north of Fort Frances. Nevertheless having once begun the work at Fort Frances, the Premier has persevered in it, though his own engineers have told him, not perhaps in so many words, that it is a costly and absurd blunder. Mr. Mackenzie gave the work to Mr. SuTHBjaLAND without survey or estimate or Parliamentary authority, and ordered it to be done, not by contract, bnt by the day's work system, Mr. Suthbrla>U), as Grovemment Superintendent, employing day labourers. This was contrary to all law and practice. If the look was a m part of the Pacifio Railway undertaking, it ought, by the Pacific Railway Act, to have been done by contract. If it was not a part of the Pacific Railway, then the Premier ought to have obtained Parlia- mentary authority for the expenditure Tipon it, and let it out to oontraot. It is part of the Pacific Railway, or it is an ordinary public work ; in either case Parliamentary authority was ignored, and the contract system, enforced by the Pacific Railway Act and the Public Works Act, set aside. The work was begun in June, 1875, and Mr. Suthekland, in his evidence before the Senate Committee, 1878, p. 21, estimates its total cost at $250,000. In Not ember, 1875, when Mr. Macken- zie had determined on taking the Pacific Railway by the northern route, he seems to have realized the uselessness of proceeding further with the lock, and (Senate Committee, Suth- ■rland's evidence, p. 27-28) telegraphed SuTHBRLAiTD to close the work. The telegram read : "Close all canal works " at Fort Frances ; suspend all pro- " ceedings." At that time $73,940 had been spent on the work. In April, 1876, however, the Public Works Department (Return to House of Commons, 1877, No. 88) instructed Mr. Sutherland to resume the work. What induced Mr. Mackenzie to change his mind, to order the resumption of a work which he had closed when by changing the route of the railway, he had rendered it useless, we do not know. It is possible that he felt that his reputation as a " practical" head of the Public Works Department • would suflFer if he abandoned a work in which $74,000 had been sunk. The maintenance of his reputation, there- fore, involves an additional loss of 1176,000. BVIDENCB OFTHE GOVERNMENT ENGINEERS. That the work is useless, the evidence even of the Government engineers clearly ^ proves. Here is an extract from the •videnc* of Mr. Marcus Smith, C.E., the second in command to Mr. Sakctord Flrmino, page 1-2 : "^ • '-' ' But have yon understood that the Fort Frances lock was being constructed for the purpose of being nsed in connection with the railway ? I understood so from the re- ports, and I have a map showing why the lock was commenced. It is a map of the Dawion route, from Mr. Dawson's plan. I now produce a tracing of it, which I found in the office. All that I know is from read- ing the reports. Thia plan shows the line of railway as originally intended, as well as the present located line. The dotted line shows the route originally intended, and it was in connection with that line that the Fort Frances lock was commenced. If that line had been carried out, this canal would have been of immense im- portance, but since the change of the line northward, it has lost its importance in connection with the Pacific railway. Wlien I say "lost," I mean it has greatly diminished or lost its chief im- portance so far ai the Facifio railway is oon- cemed. ,[j ...; ;j^,j^ i:*^»oo3i t.i Will it be of any imporUnoe in oonnee- tion with the Pacific railway? It may possibly, and will probably be made of some importance. I can better explain it on the general plan of the Canadian Pacific railway, published under the direction of Mr. Fleming. .. ; , , ,,, , Explain how the lock can be of any im- portance in connection with the railway. The plan now produced, is a plan that was printed two years ago— in 1876. It was made by Mr. Fleming, or under his in- structions. It shows the course of the line from Lake Superior to the Pacific coast. The black portion shows the sec- tions of the line under contract. There is a gap marked in red between English river and Keewatin (Rat Portage.) That gap is about one hundred and eighty-five miles in length between the two portions that are nnder contract. The difficulty in put- ting that under contract is its inaccessi- bility, as you can only get at it from each end. From Fort Frances you can reach an arm of Rainy Lake on the north side, which is navigable to a certain point that connects with a stream, and a chain ot •mall UkM, whioh form » good oanoe route to the very centre of th»t portion of tha line whioh ia not yet put under contract. That route could be mode available to a oertain extent, when that section is put under contract, for the contraotora to get in auppliei. There are eight or nine port- agea in it, and it can simply be conaidered aa a oanoe route. It ia the only means of acceaa, aa the country is very rougli and rocky, and it would coat a great dual to build a common road through it. Provid- ed this section were put under contract, auppliea could be got in from Fort Frances by canues over this route. The Manitou Lake route I think they call it. ^' Inasmuch aa thia ia only a oanoe route, what neceaaitj ia there for building a look for steamboata at Fort Frances 7 The two are incompatible, certainly, aa regards their capabilities for traffic. I presume, if the canal had not been commenced and con- •iderably advanced before the line was changed, the lock would not have been built. .V. nC I -,Mi«i,.»i*i si.j) *«■ I4i» 'J'i il.Vi'.. ■ la it not a fact that for the purpbie of getting in proviaions the lock at Fort Frances would only cauae an additional portage? Yes. ... i^ ..; .. • Will it not take u long a time to paaa a canoe through the lock as to make the por- tage ? I think not ; it ia rather a rough portage, if not long. It takes more time to tranship goods than to get a vessel through a lock. I ask yon whether you consider it is e6ouomical and expedient to build this one large lock at Fort Frances simply to con- nect with a canoe route ? I would not re- commend a lock to be built simply for that purpose. For the purpose of commerce will this lock be of any use whatever in connection with the Pacific Railway ? Not in connec- tion with the railway. In the meantime, during the construction of the railway, it may be of some use. Allowing the Manitou route to be as good as you describe it, the Fort Frances portage unimproved would have added little or nothing to the difficulty of getting up there ? It would not have been very great. It ia a vary limited means of get- tiug in auppliea, simply by canoea. And you are reatrioted to oanoec there, are yon not ? Yea. The eviddnoe of other GoTemment en- gineers corroboratea this, the fact being established that the 9*^50,000 ia being sunk in a look 100 miles south of the Pacific railway line ; and that the only use the work can bo put to during thu construction of the railway is that of affording lockage for canoes, the con- tents of which would otherwise have to be carried over the portage a distance of 2,015 yards. THE DEPBNCB. '«!*: 1 r']»C{ No defence is offered in behalf of the Premier for this waste of a quarter of a million. It ia sometimes said that the work was a mistake, and that mistakes will happen, &c. ; but why did he perse- vere in his blunder, and add 8176,000 to its cost after he discovered hia mistake, and stopped the work in November, 1875? • :;^-::::^t\\::::C'-~:,<'.- As an excuse for his not consulting Parliament before undertaking the work, it is maintained that the lock was part of the Pacific railway scheme, and not a special work, and the fact tliat the money spent on it was taken from the Pacific railway appropriation ia quoted in proof. Granted. Then under those circum- stances Mr. Mackenzie violated the Pacific Railway Act of 1874 in having the work done by day labour under the direction of his officer, Mr. Sutherland, instead of by contract. There is no escape, be it part of the Pacific railway scheme or a special work requiring Par- • liamentary authority. ,;i» « ITS THE FORT FELLY WORKS. *^ In 1875 the Government determined to erect barracks, etc., at Fort Pelly, their intention apparently being to make that spot the capital of the North- West Territories. They rushed into the ex- penditure without muoh consideration. The foUuwibg nun* wm ipeat ij|kr ak i* 1875. Pablio Aooonnta, p«rt 3 p. 230 lae.sw 1876 Publie Aooounto, part 2, p. 289 83,9fi6 ,1 ..1 ,'>'(». . t68,*28C Early in 1874 thejr datArmined to aban- don tha barraoka at Fort Pelly and place barracka and oapital at Battleford, where the following Bums have been •pent : BAmMska-^ >"' ■'' ■''" ^' ii'i" 1876. Public Aoceonts, pari 2, p. 269 $ 8,000 Pablio Buildings — 1877. Public AooountB, part 2, p. 246 26,430 Mounted Police Buildings — 1877. Public Accounts, part 2, p. 246 29,982 163,412 It id worthy of note tlwt Mr. Huoh SuTHiRLANi) waa also the Government Superintendent at these worka ; indeed Mr. SuTHBRLANP Superintends every- thing outside the jurisdiction of Mr. Thomas Nixon between the Fort Frances lock, meridian 94, and Battleford, meri- dian 112. The $63,000 sunk at Fort Pelly IB a dead loss, unless, which is not likely, somebody can be persuaded to take the empty buildings off Mr. Scth- ■rlakd's hands. THE INOONISH HARBOUR TOB. In May, 1873, the Macdonaiu Guv- emment let the contract for dredging and building a breakwater in Ingonish harbour to Mr. T. W. Maceenzik for the sum of $78,280. The work waa to be completed by the 31at December, 1874. The contractor waa to make good any losses which might be incurred by storms or other causes up to its full and final completion. If any addition was made to the work, the contractor waa to be paid for it ; if any diminution, the amount was to be deducted. The Min- ister of Public Works was to accept the work on the certificate of the Engineer that it waa fully eompleted. In April, 1874, a few raontha after the ehanf* of Oovemiuent, the job waa tranaferred to John Rohh and Jamkh M< Kay, Rom being a brother of the then Minister of Militia, The work oonaiated of a break- water 700 feet long, and the dredging of a channel 200 feet in width and 15 feet, deop. The paper* brought down to Parlia- ment in answer to orders of the House of the 16th February and the 19th March, 1877, show that the new contractors — who assumed all the eon- jitions accepted by the old contractor — did pretty much what they liked. They made no attempt to complete the con- tract by the time named, and got aU aorta o{ modificationB without a single dollar's reduction of the tender price, but rather a considerable increase of it. In the end of 1875 and the beginning of 1876 it was reported that storms had carried away portions of the work, and the local Engineer, Mr. Pbrlby, waa authorized to reduce the length of the breakwater to 600 feet, and put a tri- angular crib at the end of it at an ad- ditional cost of $2,000. Mr. Baillargb, another engineer, reported that the dredging wa« much behind, and that the contractors should not be relieved in any respect of their liability to the De- partment in the matter of enlargement of the channel. The grand result waa that instead of a 700 feet breakwater, a breakwater only 565 feet long was built, and the channel instead of being 200x15 feet was only 60 x 12 feet. Yet, not only was the full price for the old con- tract, viz. , $78,280, paid, but Mr. Ross was allowed $3,643 for extras, and $1,- 975 was paid to the Government Clerk of Works, for services for which Mr. Ross waa responsible inasmuch as they were rendered subsequent to the date by which he had undertaken to have the work completed. Why was such favouritism shown to Mr. Ross ? Imprimis, he was the brother of the Minister of Militia. S©con(!ly, he hart a claim on the Party as the defeated candidate in Victoria, N. S. A vacancy having occurred in Victoria County in consequence of Mr. Trbmainb's appointment to the Bench, Mr. Robs was wanted to run in the Gov- ernment interest Mr. Vail manipula- ted the matter. On 1st September, 1876, Mr. Ross telegraphed to the Min- ister of Public Works that he desired to be relieved of his interest in the con- tract, which his partner would complete. "Accept," he says, ** if you think it * ' necessary to do so. " These words are surely evidence enough of the extent to which this contractor had placed himself in the hands of the Qovemment. He waa their's to UM as they pleased. On ,lt-k> &e.(ttrr ::u .■,'^>J^T.s.'■)i■^rfoo .« •iialtm md ; ;.(f{rj' ,,!>i^f b.ri» 'Vir-'i t<> ins^< 'ti-i n'. , hiiA .J " ■■ •-■;iT ^.;> s'r-jiH'i*' ■?;■•.■,".•.'' 'i'>.ifr«'j til. ^ ;--?>!H'.l ■ 'r ^'mb»-\ ■■:-; ;4'Wt<.»;i,;'>v, •vft'r" 1;'<> I'fU: ?•■■■' itVA' f :;-(■* ji,!;"^' . -i'X: '■■•', i .? '!■■. «,:i;> ,(■'■:■ 1:. ,'^",'-. - ,ji;i->)c •.■ ;'frh ,i<'''( ,h-- .'-. ■ :I--.-r;j|i ij 'Ji • ^ , . ' z' ; V i.:' loi ■;.,(.■,■ .\J I ^fi, i'lx*; I.. liVti' -.--;•■ '.. tii ! ')tl.* ' 1 ■• ' ■>!/:•' V ■ ■ '•"■!• ~- • r ^lM".'r>.'' t'r..'' '. 0;! yCt.l W;^J' iH:.l I »'i h' ,;'.. 'to. ..r.'il.'^ 'tilY lUfi K>>-.y Vlo^' the 28th September he Was relieved, and immediately after he became a candidate and was beaten by Mr. Chas. OAMPBSiiL. Meanwhile, it appears the Public Works Department allowed the requested with- drawal of Mr. Ro88 to hang fire. If he had been elected the world would never have known but that it had been accept- ed. Defeated, however, Mr. Ross noti- fied the Government on the 16th Octo- ber that he was prepared to go on with his contract. And he was allowed to go on with it ; and, as has been already stated, not only drew the full $78,208, but ^,618 in addition- And thus another Party claimant was appeased at the country's expanse. ■i,i«: ,,... ,. . . ,*>*.<' !i'.-'U'i'i ,'. 'u. Tiii '■'■-.ut •.;>:'.' <'i*f..ih''!ih;i'.>«ri ■'fi:}'i'. ■.)''.'■•'•,■'■'!/''■;■•? '!'.•" i',1 ,''if';"t(^ ' . fi*' (•■: 1 (>' W ■ • ' I .-'! i! ■ i'-f'r. i />^ '> •' /■,• v.'JVt'J' " ^■i:t1 ..'-I', : i';;,'.i; i>^':x' .:''■'■ •',"'■ "i)'" ;vt-'H'' •■;. '^ 'r ■■',,,' . 'i'/HtJ •I-" ! " ' ; „..: i, ■■ ^, .* :hiY- ,"■'■ nv} .■i-y', i hf.'A; ■ \, f\'\'-''. .■yX'\ I -iV,;. J(?* • 'Aiii' ^^•i:,? •; '..It > i • l» ■■l.~}t -1 j; Mr- ^ • ;7 ,, .(1/ -i'ii' ^I'.r nt<'' H ttkV* ')H '^H-^^»'i' >',^>! ^,?>l' •>M^- btw" fr >V.t'»i ) t' »i''ur- PRINCIPLES. ,j'j. :i!ju In a speech delivered at St. Catharinea in the fall of 1870, Mr. MACKBNaiE, then leader of the Opposition, said : " He " would never accept office upon any " consideration if in doing so he had to " abandon the least of the principles he *' now professed. The man who taught " one thing in Opposition and an- *' other when he was in power, was a ** demagogue in whom the people could " have no contidence whatever. ' <' .ohiBhf'' ?•> :)/•■ iJfff hfik ;iiovi.^HTidiftx'r>.'..' v.fr't >'k:j /.aaT-/M .xi^<^j « ti\ bWfis BROKEN PLEDGES AND VIOLATED considered it his duty to persecute his colleagues who were faithful to their trust, and endeavour to destroy the Ministry to which they remained true. THE PABTY DOOTKHTE. ««' • ■ The promulgation of tho anti- Coalition doctrine was aimed at them. It read as follows : " That Coalitions of opposing political parries for ordinary administrative pur- poses inevitably reBult in the abandonment of principle by one or both parties to the compact, the lowering of public morality, lavish public expenditure, and widespread corruption: And while this Convention is thoroughly satistied that the Reform party has acted iu the best interests of the country by sustaining the Government until the Confederation measure was secured — it deems it an imperative duty to declare that the temporary alliance be- tween the Reforin and the Conservative parties should now cease, and that nu Government will be satisfactory bo the people of Upper Canada which is formed and maintaine Mac- donald fell, he was the Tory Speaker of the Assembly, and stepped from the chair in+o Mr. Blake's Cabinet. Nay, after he took office he wrote to Sir John Madonald, for was he not " John A's " nominee?" telling him of the step he had taken, and assuring him of his con- tinued loyalty ! I »7|it^i THE dominion coalition. ' "'" On the 5th November, 1873, Sir John Macdonald resigned, and the Reform leaders were called in to form a new Government. Their violation in 1871 of the anti-Coalition principle had in a measurelaccustomed them to its abuse. 39 / and they calmly chose half a doeen Tories for seats in their Cabinet, viz. : u-Kjw jftii»*< Mr. Scott, u^a^u. .«•,«:. liulto; J, Mr. Cartwrioht, t« «-i.i.i 'Si"^ Mr. Coffin, d-ii*' • ;'; ! Mr. Ro8«, ■.'••' '?• • ,- Mr. BtTRPBB, Mr. A. J. Smith. Mr. Scoir's record has been dealt with. Mr. Cartwright had opposed the Reform party all his life. During tlie campaign of 1872, only a year be- fore he was made Finance Minister, he was blacklettered in the campaign articles of the Olobe as having been guilty of the following enormities : 1. Mr. Cartwright voted to " reward foul murder" i» th« North- West. ,«fJi,j :, 2. Mr. Cartwright, on the 18th Decem- ber, 1867, voted " for the adoption of a route for the Intercolonial railway, which he knew to be inim i to the interests of the Dominion." 3. Mr. Cartwright, on the 11th Decem- ber, 1867, helped by his vote to " subvert the Parliameutary safeguards respecting the control of money. " 4. Mr. Cartwright, on the 5th May, 1868 " frustrated economy," having helped to vote down Mr. Holton's motion for the reorganization of the Civil Service. 5. Mr. Cart\mght, on the 19th May, 1868, voted down Mr. Blake's motion for the better securing of the Independence of Parliament. 6. Mr. Cartwright, on the 15th May, 1869, " delivered the Treasury into the hands of the most unprincipled of men, " by helping to vote down Mr. Mackenzie's motion respecting the Fortification Grant, as follows : — " That no sums shall be expended on such works until a separate estimate for each work to be constructed shall be sub- mitted to Parliament, and that the amount to be expended in each year shall be voted from time to time." 7. Mr. Cartwright on the 16th of June 1867, voted for the "violation Of the Con- stitution" in the matter of the Nova Scotia subsidy. 8. Mr. Cartwright, on the 17th June, 1869, voted for the " corruption of mentf^ bers ef the House," having helped to vote down Mr. Holton's motion respecting the payment to Col. Gray for codifying the 9. Mr. Cartwright, on the 19th June, 1869, voted for the " Chantry Island job." 10. Mr. Cartwright, on the 10th May, 1870, voted for the Manitoba Act, thereby becoming a party to " one of the most in- iquitous and blundering of measures." 11. Mr. Cartwright, on the 28th Pebru- ory, 1871, voted against the abolition of Dual Representation. 12. Lastly, Mr. Cartwright on the 1st June, 1872, voted for the " abdication by Parliament of its constitutional right to control the pubhc expenditure on th» Paci- fic railway," having helped to vote down a motion by Mr. E. B. Wood respecting the money asked by the Government for the construction of the Pacific railway, as fol- lows :— " • '• • Jj,. ■■:■%■ " That the ^30,000,000 and 60,000,000 acres of land be only disposed of by specific annual votes of Parliament from time to time as shall seem to Parliament right and proper, so that Parliament shall not be di- vested of its most important constitutional function, viz. , control over the public ex^" penditure of the country." Mr. Coffin also voted from 1867 to 1873 against the Reform party and on behalf of "Tory principles." So did Mr. Ross. In 1873 he even voted against Mr. Huntington's famous reso- lutions, and Mr. Bitrpeb did likewise. In the general election of 1872 Mr. Smith thus opened his address to the electors of Westmoreland : ii " Gentlemen, five years ago you sent me to the Parliament of our country with all my prepossessions in favour of the Reform party. Having carefully watched both sides, I have been giving my support to the Liberal-Conservative party, and I tell you as an honest man, that if you choose me as your representative again it must be on the understanding that / am still to support that party," ., - Here, then, were six gentlemen who almost up to the last moment had op- posed those Reform principles which " are eternal and survive," and yet they were taken into a Cabinet of R«j- fonneru who denounced coalitions as immoral and corrupt. If it be said, '* O; yes, but they {^eed with their Re- ■" form colleaigues," did not Howland, Maodouaall, and Fbbouhok-Blaik, and Sandfibld Maodonaid, E. B. Wood, and Stbphbn Richards agree with their Conservative colleagues i If the eternal principles survived in one case, they survived in the other ; and if Reformers by joining Tories formed an immoral alliance, inversely the same is true of Tories joining Reformers. A BLAOK SHEEP. " "'^'^ ' '• " In his speech of the 7th December, 1870, Mr. Blake taunted Mr. Sand- fibld Macdonald with having joined a Party that had once upon a time during the pre-Confederation heartburnings de- nounced hiui as unworthy of public con- fidence, &c. : " But he has formed an alliance with the men who denounced him as unworthy ur public confidenoe and almost of private associations iu days goue by. " Has Mr. Macdonfdd forgotten the stories circulated about him by his present friends ? The tales with reference to Mr. Poupo'/e and Mr. DeBellef euille ? Does he not remember that they charged him with attempting to buy the support of Mr. Har- wood by tendering an office in the militia to his relative Mr. DeBellefeuille ? Does he forget the charge made by Sir John Macdonald that he got the support of Mr. Poupore by buying his property 1 I would like to know how Mr. Macdonald, the sin- ner of 1864, is the saint of to-day. None of these charges have been retracted, and are yet hanging over his head. So much with reference to the antecedents of the Administration. I ask now what you could expect from such a union, what progeny from such an nimatural aUiance T" In 1875 M. Caxtohon became a mem- ber of th'> riovpmmftnt, in which Mr. Blake was Minister of Justice. In December, 1872, Mr. Blake'b friends denounced M. Cauchon as having been guUty, not of mere political offences, but of crimes and misdeniuanours at common law. The Globe of the 6th December, 1872, said of him : " It (the report of the Beauport Com- mittee) tells its own story, and that is a very disgraceful one. A job is bad enough in any case, but a job at the expense of the poor unfortunates who have lost their rea- son, is especially detestable." id H'lol And on the 9th December, 1872 : — , " The Beauport job is rank and smells: to Heaven. " That Cauchon has been proved guilty i of jobbery, and of defiantly breaking the law for years is, we should think, not! doubted by any sane man." ni And on the 26th December, 1872 :— " M. Cauchon comes back, apparently, to brazen out the whole of his iniquities, and the Ministry (of Quebec) with that helpless want of self-respect which they have all along shown, are eager to override all ordmary forms and requirements for the privilege of again saluting their ' ' honour- able friend" as member for Montmorency. Some men, even in their degradation, have some respect for themselves, but M. Chauveau and his friends seem to have lost theirs, if they ever had it. " Mr. Pbnny, a Senator and a leading Reformer of Quebec, wrote in his news- paper, the Montreal Herald of the 18th December, 1872 : " Scandalous as this affair is iu its barest outUne, it ie made infinitely worse by its attendant circumstances. It ia worse be- cause this villainous bargain was made with a man (M. Cauchon) holding no less honourable a position than the President- ship of the Senate ; worse because the materials out of which the job was affected were those who suffer from the saddest in- firmity to which human natr.re is liable, because what was bought and sold was the power of squeezing the highest possible profit out of economies, exercised at the oost of the most helpless of (Jod's crea- ^ ''f^.nf r'.fr^'''*'^. "-i 'f .-■;» ^-f— ^' "■'•* — -•"■'7 -^^t *-> -fores, it is quite safe to say that if this were a matter of life and death in the Criminal Court, the evidence of M. Oauchon — not to go a step too far, we do 9ot include the Ministry in the scope of this sentence — would be sufficient to hwog W™-" J.. .... 7— t -, -1 *- Jf ,'r ojAiid Senator Hectok Fabke, another leading Liberal, wrote in his newspaper, L'Evenement, of the same date : " M. Cauchon will be able, perhaps, to ■eoure, as he announces, his re-election for Montmorenci, but he will never recover from the blow he has just received. The confession of culpability which has lately been extracted from him will be as a freight upon him for evermore. It is now impossible that he should ever be Lieut.- Cfovemor or Local Prime Minister, for the too-leugthencd series of bis double dealings has come to a close. He goes forth this day from the Local Chamber despised and spat upon, only soon to withdraw from public life, crushed and disgraced. It is the commencement of capital punishment which honest people have been demanding for so long a time past. " " None of these terrible chai-ges had ■♦* been retracted, and they were yet f< hanging over M. Cauchon's head," when the Reform leaders asked him into their Cabinet. To use Mr. Blake's words again — "I ask now what yoii ** could expect from such a union, what " progeny from such an unnatural alli- " ance ? " If it was wrong for Mr. Sandfibld Macdonald to ally himself with a Pai'ty which had accused him of grave political crimes, inversely k oonld not have been right, leaving moraJ considerations aside, for the Party that had accused M. Oauchon of a detest- able robbery, and that had not with- drawn the accusation, to luake him a member of its Cabinet. ' "Ittepe it may be well to say ihat M. Oaxtohon was not the only foul bird in the nest. Mr. Huntington has been a member of the Cabinet since 1874 ; and .7/,..Jn., !.,i^ ANOTHIR BLACr SHBBP. he (uts at tiie Ootmcil table with tide foil- lowing indictment hanging over him, which was preferred in its plea of justi- fication by the ' Montreal OaaetU when he sued that journal for libel, because in effect it accused him of being a public robber. And when he read this plea of justification and received the OazetU^s challenge to come to Irial, he dropped his suit, and in effect admitted that he had no case ; but he still hangs on to his portfolio and poses among the purists :" I. That in the year 1872 Mr. Hunting* ton associated himself with one Alexander McEwen, of London, England, for the pur- chase of certain mining properties in Que- bec and Ontario. That the said Hunting- ton was at the time owner of certain pro- perty adjoining the mine known as the Huntington Mine, and used in connection therewith. That he was also the largest shareholder in the Huntington Mine, and virtually controlled it. That he had for a long time managed the working of it, said working resulting in heavy loss, and in- volving large indebtedness at the time un- paid. II. — That to facilitate the sales of these properties he projected a joint stock com- pany, called the " Huntington Copper and Sulpur Company, Limited, " and issued a prospectus in which it was stated that the capital of the Company was to be £200,000 stg., in 20,000 shares of £10 each, on which it was proposed to call up £8 per share. That previous to the issue of this prospectus the shareholders in the Hunting- ton Mining Company "nominally, but in reality [Mr. Huntington] for himself as the main shareholder thereof," executed a con- tract between John George Long, a person in the employ of Alex. McEwan, and James Hendei-son, of the County of Lanark, Scotland, whereby the latter jmrported to acquire the Huntington Mine and adjoin- ing property — such proceeding being a necessary preliminary to the formation of a joint stock company in Great Britain. III.— Thai Mr. Huntington iwpresented that the annual profit of the mine would be £72,000 stg., or 45 per cent, upon the capital proposed to be called up ; though,. n r tm prerionflly stated, the working; of the mine had been a source of loss rather than profit. That Mr. Huntington's properties were purchased by the Copper and Sulphur Company for £125,000, and its shares dis- posed of mainly through the representa- tions published under his name and public designation as a member of the House of Commons of Canada. That many of these representations were utterly untrue. An Alleged magnificent water power for dress- ing mills referred to in the prof>p6ctu8 had no existence whatever. The shipment of ore to England, so far from being largely profitable, could not be carried on at a pro- fit. tV. — ^That the said Company was so got up and organized, and the said mine and property so sold, for the benefit chiefly of the said plaintiff, who himself ultimate- ly received the greater part of the purchase iuoney thereof. V. — That, flushed with their success in this enterprise, Messrs. Huntington and McEweu projected and set on foot the " Canadian Copper Pyrites and Chemical Company, limited," with a capital of £600,- OOO ; the stated object being to acquire some seventeen mining properties mainly in the Province of Quebec. It was set forth in the prospectus of this Company that the properties in question were acquired under the depression which had for some years ruled m the*opper trade, and before the then mining excitement had reached Can- ada. The following were the properties named, with their acreage and the alleged bond fide prices to be paid by Messrs. Huntington, McEwen, et al., for them : — , u,.;i(i-a. Extent. Price. Jfo. Jfam* of Properties. Acres. 9 1 Clark Mine 160 25,000 « Sherbrooke Mine. 880) 3 Belvidere Mine 291 }■ 40,000 4 Ascot Properties............ 162) 6 Hartford Mina....j ^o§8-.: 4^ .ft M-i.- t 'l f ill , I .L . ' l U ' ' 10,912 1839,800 ihi the 'itrehgtli qI ihiaatatement a t^a^fer of the properties was made to MoEwen and one John Ralston Cunningham for the saia of $839,800 ; whereupon McEwen and Huntington received fr:>m the Copper Pyrites Co. £15,000 stg. in paid-up stock oi the Company, and also the sum of ^SS.' 000 stg. by way of premium '^"'J^k*^ «'«* VI. — That to induce a number of well- known persons in England and Scotland to become directors in these Companies, large sums of money were given them by HuO' tington and McEwen ; but that several of the directors returned the money when they learned the fraudulent character of the transactions to which they had been induced to lend their names. VII. — That Huntington and McEwen bribed, in the first place, with £10,000 paid-up stock, and, in the next place, by • position to which was attached an annim] salary of £3,000 stg., one James Taylor, to report upon tlie properties in question in such way as they might desire. ; ,;i i. VIII.— That instead of |25,000 ha^tS^ been paid for the Clark mine, only $20,000 was paid, out of which " the said plaintiff received or retained, or was returned, the sum of $5,000 or thereabouts." That the proprietors of the Hartford mine, instead of $223,000, received only $170,000, $55,- 000 of whioh went ultimately into Mr. Huntington's pockets. And so thoroa|^- out his whple list ; the entire sum retain' ed or received by Mr. Huntington in ihip way amounting to $323,000. IX. — That the total sum received by Huntington and McEwan out of these two transactions amounted ijo f^,$^(]^^./«r thereabouts. ■ <• j. " /. X. — That in less than two years from the time of the formation of the said two oppn- panics, the stookholders therein, by reason of the false representations of the said plaintiff, and the comparative worthleasnesa of the said mines and mining properties, sustained a loss of £240,000 stg. in the cur- rent and ordinary value of their shares thereof, equal to $l,200,00a That ainoe the s»id period the said c^epressipi; has oon- tinued and greatly increasejj. .^d tlu^ tlie whole of the said mining properties, iS' eluding jibe said HuntijDgton aiine, U9 urn- una ; *ki?i aaiiw ■ 'Hiur.'.' oii i" 'iaiiutynrii a 49 nmuneratiTe, are practically worthleas, and now represent but a small fraction of the original nominal value paid for them by the bond Jide stockholders thereof. THE NUMBER OF CABINET MIN- ISTERS. Foe years after Confederation the Re- form leaders declared that thirteen Min- isters were too many. They advocated economy in those days, and led the peo- ple to believe that they could and would conduct the affairs of the Dominion with less than thirteen Cabinet officers. At London, on the 24th October, 1870, Mr. Mackenzie said : CHi" While the finances of the Province were i(ormerly administered by one Minister, we have now four. One, who is supreme, is Hiucks ; the other, Tilley, is Minister of Customs ; Morris, is Minister of Inland Revenue, and another gentleman is Be- ceiver-General. Now, what I contend for is, that there is no necessity for this ampli- fication of the Cabinet. There is no neces- sity for a Cabinet of thirteen ! The United States has a population of forty millions, a vast territory and vast concerns to manage — still they get along with seven Ministers, and one Secretaiy of the Treasury conducts all the financial affairs." Mr. Blake was strongly opposed to Ministers holding office without port- folios. In the House of Commons, 27th of Novemhei-, 1867, he said : " It is necessary t« prevent, by stringent enactments, the possibility on the part of the Crown of tilling the House with more than the necessary number of executive oncers. It is wrong to argue that because a member of the Executive does not re- ceive a direct salary from the Crown, there- fore he can be added to the Executive Council with impunity. If that argument were correct, any number of such offioei's might be created, and the whole House controlled by placemen who nominally are servants of the Crown r'-i.ji^:,f jrfSjiKVf.f .• - < Yet when these two gentlemen snc- oeeded Sir John Macdonald in 1873, tJheir Cabinet was composed not of -■'■ *i1^KA?i*l-;fr'vA"' ■■-■■■■■ ■ thirteen but of fourteen Ministers, Mr. BjukKE himself being " added to the " Executive Council with impunity " and without a portfolio. It is contend- ed — this is Mr. Blakb'b argument — that there are now seven Provinces where there were *nly five, and that the work of governing the country is heavier now than then. But in Mr. Mackenzie's- words, if seven Ministers can govern thirty-six States and four territories with a population to-day of 45,000,000 souLj, why should it take thirteen Ministers to govern seven States and the North- West Territory with a population of 4,000,000 people ? If the argument was sound then, it is sound now. « siiMittm <>• DOMINION AND FROVINOIAL RELATIONS. In Opposition, the Reform leaders maintained that politically the Dominion and Local Governments ought to be per- fectly neutral, neither helping nor hindering each other. In armouncing: the policy of the Blake-Scott Govern-, ment of 1871, Mr. Blake said : .. " The position of the Reform party in. regard to the Federal Government is, that they argue against alliance as well as against hostility. Their position is this : — That the Local Governments should be per" fectly independent of the central Govern ment, and should neither be entangled by alliance nor embarrassed by hostility. The independence of each of the Provinces is necessary for the working of tne Federal system." 'i ■>£> oo r»ii"tiox ■■'un.-j j«iw >■; And addressing ilie Le^slature on ITitr 23rd December, 1871, two days after the formation of his Cabinet, he said, as re- ported by the Gio6e;r>,;x'(>i'3'iii"iva '^" ^ '■The first point upon which 1 desire to- state the policy of this Administration is with reference to what may be called the- extreme relations of the Province. My friends and myself have, for the past fonr years, complained that the late Administra* I tion was formed upon the principle and th»- : understanding that it and the Government- t of the Dominion should work tosether — »;'." '1 44 pUy into one another's huidB — that they ■hould be allies. There exiats, we think, a well-founded belief, at any rate a wide- spread belief, that that was the arrange- ment, and that it has been carried out. My friends and myself thought, and my Administration now thinks that such an arrangement is injurious to the well-being of Confederation, calculated to create diffi- culties which might be avoided, and that there should exist no other attitude on the part of the Provincial Government towards the Government of the Dominion than one of neutrality, that each Government should be absolutely independent in the manage- ment of its own affairs. We believe that the Government of the Province ought not to assume a position of either alliance or hostility towards the Government of the Dominion." Mr. Mackenzie, a member of the Government, thus addressed the electors of West Middlesex : , . , . . , " One strong point which he had ur^ed against the late Government was that it was the creature of the Dominion Govern- ment. The new Government proposed that no matter what Government was in power at Ottawa, the Government of Ontario would be free from all outside influence and power. " Previous to this, he brought the sub- ject up in the Dominion House : .,,V It has been frequently asserted that there is a close connection between this (Sir John's) Government and the Govern- ment of the Local Legislatures. It is de- sirable that there should be no connection whatever between the Central and Local Governments, and I feel it to be my duty to bring this principle before the House." The "connection" complained of was the alleged alliance of the two Governments ov rather of the two Premiers in their political ramblings through the country. The Olobe was constantly complaining of this in this style ; " We are now m lii position to deolare that the two Macdonalds have arrived at an understanding in reference to the,coming Campaign. They are to hunt in couples and mutually to seek each other's w«Ur being and success." , i^nimm iMm'r^<*»4i Having established thenuelvei at Oi- tawa as well as Toronto, these gentle- men proceeded with singular equaninutj to do that which they had thus con- demned in " the Macdonalds." Here is a letter addressed by Hon. D. A, Macdonald, while Postmaster-General in Mr. Mackenzie's Cabinet, to Mr*' MowAT, the Premier of Ontario, on the eve of the Local electioiv* of January " Ottawa, Oiit.; Nov. Zlst, 1874. ' " Mr Dear Mowat, — If yon can possi- bly manage it don't issue a writ for Glen- garry to replace poor Craig. It would be very troublesome, indeed, for an election to take place now, and another in a few weeks. • ♦ • • j would like to hear from you as to the readjustment of tiie constituencies of Ontario, whether any changes are to be made in the Eastern sec- tion. I hope they will be left as they are. I am satisfied that you can depend upon the Eastern section supporting you to a man. We are all doing the very best we can do for you. •• Yours truly, ^rf* i<>tni^t iim-^ I'lmtw "D. A. MACDONALD."^ Mr. Mowat did as requested, for Mr. A. J. Grant, who replaced " poor "Okaig" as Local member for Glen- garry, wrote as follows to Mr. Mac- donald : " WiLLiAMSTOWN, Dec. 8th, 1874. "Hon. D. A. MacdonaJd. "Dear Sir,— ♦'^•'* I am happy to state that tke Government have decided not to interfere with Glengariy or Corn- wall in their redistribution bill at present. Now, sir, I wish to state to you that the people o! Charlotteburgh appreciate your assistance in getting organized, and in making a move towards making our objec- tion to the change known to the Govern- ment, as I believe the measure would have been brought before the House before we would have known the intention ofthe Government, had you not interfered.! •[••!:) " Yours, with respect, 'M^ "A. J. GRANT> •t.a I •to But why argue further < Have not the Dominion and Local Ministers ' ' hunted ** in couples" every picnic season ? Already Mr. Haedy, on behalf of the Ontario Government, has been out this season with Messrs. Mackanzib, Cart- WRiaHT, and Lauribr. If " hunting in " couples" was wrong in " the Mao- " DONALDa," how can it be defended in their successon ? y nirtf. /'-i^.! • ' ■ " ■' .i PURITY IN ELECTIONS. /in his Lambton speech — Qlohe, 25th November, 1873 — Mr. Mackenzie ■aid : *' In the late debate you will have all noticed that Sir John Macdonald said that he was driven to this ; that he was com- pelled to use money, because he said he heard from all quarters the Grits were using two dollars to their one, and that he would probably be beaten unless they got money aomowhere. I commend to you the morality of the transaction. One man finds his neighbour has stolen money, and that for him to be as rich as hia neighbour he must steal als3. Has it come to pass that a member will justify wrong-doing, by saying others have committed wrong. • * • I declare to you the entire ■tory is false from beginning to end, that we ever spent money in the elections (1872.) • ♦ » Money was contributed to the central fund for the pur- pose of defraying miscellaneous legal ex- penses, and amounted to between three and four thousand dollars. This is the entire •mount that has been spent by the Liberal party at the elections." This was an echo of what he and his Reform colleagues had contended for years, viz., that the Tones were bribers and corruptionists, and the Reformers pure men, who spent nothing in corrup- tion, fighting always with clean hands snd honourable weapons. For instance, on the 13th August, 1872, the Globe had ma. article beginning as follows : — '' The Ministry have deliberately set about the business of buying themselves into power. The great mass of the electors are perfectly sound. They would resent the offer of money for their votes as they would resent a blow. All true friends of Canada are bound to set their faces against snch a state of things. Ho and his (Sir John) are bound to buy their way to power. Lot Ontario convince them that there is still too much honesty left to make this possible. " BIO PUSH. tt Ik i.k^tii^\-i.,f\^ Yet while he was writing this, Mr. Brown was organizing a bribery and cor- ruption fund, for two days afterward ho sent the following note to Senator Simp- son : " Toronto, August I5th, 1872. ' • Hon. John Simpson, .. ''.finH-fy ailj 'di " Presd'fc. Ontario Bank. " My De.ir Sir, —The fight goes bravely on. • * • We have expended our strength in aiding outlying counties and helping our city candidates. But a bio PUSH has to be made on Saturday and Mon- day for the East and West divisions. * * • We therefore make our grand STAND on Saturday. There are but half a dozen people that can come down hand- somely, and we have done all we possibly can do, and we have to ask a few outsiders to aid u3. Will you be one ? I have been urged to write you, and comply ac- cordingly. Things look well all over the Province. * ♦ • Things look bright in Quebec ! ' ' '' Faithfully yours, "" " -'W*: vjfA^!,* tensive scale were practised around him mi his behalf and in his sole interest. " So far as could be ascertained at the trial, this gentleman spent ^5,000 in bribery ; yet he has not only not been dis- owned by the Party of Purity but he is their candidate in the contest now pend- • ■■'- ' ■• ,;■■■ <>■ ^' Mil at«V 'W •^*i»ttl> 1 * . ■<■: . • The Reform leaders have a leal if humble follower in John Maj>ivbk, one of Major Walker's supporters, who in the 1874 election invited a friend to come to London and vote the Reform ticket in this strain : * ' Come on John, " be sure and come. So come along^ " John, and put down bribery and col?»' " ruption ; we've lots of money." '' REWARDING CORRUPTION. *> Dr. Hagartt, another of Major Walker's supporters, was reported by the Judges for corrupt practices. He admitted that he spent ^00 or $600 in bribery and treating, yet he was not drummed out of the Party but appointed medical superintendent of the North- West, with a salary of $2,200 a year. Mr. Frasbr, the trea- surer of Mr. Kerb's bribery fund in X /; 11" U I^rthiimberland in 1874, admitted that W had uied money for cornipt purposes, and he was not punished by his Reform friends, but appointed assistant deputy Jttceiver-General in the Toronto office with a sal^ of $3,000 a year. oamkhon and othkrs. In South Huron in 1874, Mr. M. C. Oahbson admitted to the Court that he gpont from $10,000 to $14,000 in bribery \fy agents. The Superior Court to which ihe case was carried said : " There are strong grounds for thinking Hhat the respondent, Malcolm Colin Cam- eron, was guilty of personal bribery. Had the judge who tried the case found the re- gpondent guilty of personal bribery, we would have sQstained the judgment. As it is, we will sustain his ruling." .o^ ■>. Mr. NoEBis was unseated for oribery, and it was ascertained at the trial that he entered his corrupt expenditure in bis ledgers as " missionary expenses." In his dying hours poor old Malcolm Cameron, elected for South Ontario in 1874, addressed a circular to his Party ^logging them to recoup him for the money he had spent in buying up the Ottawa Times in the Party's interest ; for $6,000 he had spe«t in contesting ftussell, the said §0,000 " having had a *' good effect in subsequently securing ^'that constituency to the Reformers ; " «nd for " the time and money " spent iili carrying South Ontario. Hon. W. Ross, Mr. Mackekzib's first Minister of Militia, went down to Victoria, N. S. , for re-election in Decem- ber, 1873, and while denouncing the Oonsex vatives for their corruption, established a bribery fund of his own or jkiihe'putit "I placed with my Com- ** inittee a certain amount of money to ^' relieve l^qnest, worthy men." 00 ■' THE BOLI. ... ■ To sum up this branch of tlte ptiirity j^estion, the following Reformers were unseated for bribery and corruption cop^tted penonally or by agenta m {hff 1874 election ; ^ , Oushmg, Trembwy, Mac'lonald (Cornwall), McNab, Wood, Cameron (S. Huron), Walker, Mackenzie (Montreal), Btnart, •■» ilJ -> .- Kerr, ■, ,r. • ..u Macdougall (S.Rouf'w^ Cook, O'Donohue, ' ""'j^jw McLennan, •??lll^; Dyniond. .t,-viitf^' ♦— — — INDEPENDENCE 01* PAR- LIAMENT. .. «: Opposition the Reform leaders Shibley, Jodoin, ' Mackay,' McGregor, Chisbolin, „ Irving, Norris, "^ Devlin, Coupal, Biggar, M'lrray, Aylmer, Wilkes, Prevost, ■ Higginbotham, THE In were strong on the Independence of Par- liament. In an address to the elestom of East Elgin on the 15th October, 1870, Mr. Mackenzie said ;, i-jrjf .'jiii-tvxj) io "There was, for instance, tfieir neigb- boor, Mr. Walsh, getting his salary of $4,0!)0asa Railway Comm saioner ; Mr. McLennan at $3,000 ; Mr. John Hamilton Gray— ryulgarly called ' Colonel ' Gray — he being one of the militia colonels— wha had got his daily wages doled out to hina. on tlie pretence of doing something that they called ' making uniform laws. ' " At London, eleven days afterward, he " It was not right that legal gentlemen should be employed by the Government while they sat in Parliament, and were supposed to represent independent con- stituencies. The Reform party wanted to put it out of the power of any Goverumeut to wield an influence of this kind. " Mr. Blake was equally pronounced on this subject. In the Local Legislature he denounced Mr. Sandfield Mao- DONALD for buying blankets for the asylums from the firm with which Mr. Bakbbk, the member for Hal- ton, was connected, holding that it was a violation of the spirit of the Independence of Parliament Act In his Lambton speech, in November, 1873, a few days after his elevatioxi ta 48 powtMr, Mr. MAnKurni reiterated these dootrines, and pledged hisuelf to them : " During the lait election, it will be re- membered, I held two principles chiefly be- fore the electors. No doubt, in the dis- onssion, my language touched upon other topics ; but they were chiefly illustrative of what I consider the basis of our repre- sentative system of Government. The first of these principles was that Parlia- ment should be made thoroughly inde- pendent of all undue influence in their Legislative actions, and especially in- dependent of the influence of the Ex- ecutive. • ' • • I accnsp-' the late Administration of having exercised all their energy, during the whole term of their office, to prostitute the power of the Orown in order to enable them to tamper with the liberty of action of members of Parliament." .^s^nnnA .^j.v This was a clear and duiinci siatement of doctrine. But what followed it ? In 1875-76, Mr. Anglin, Speaker of the House of Commons, received from Mr. Mackenzie's Government printing con- tracts which, having no job printing office of his own, he farmed out to Chubb A Co. of St. John, N. B., pocketing a comfortable margin as "middleman." Here are Mr. Speaker's bills : 1875— St. John Freeman, print- ing, Ac « t« i< f»ifli«ltf(l6 M?>f )itt} iff;.- ** $7,196 31 471 00 14 00 300 00 145 00 1876— St. John Freeman, print- ing, &a.i'....i..,^ « 4( «( $8,126 31 $8,984 70 638 00 680 24 61 t'O $10,263 94 Total $18,390 26 The Halifax Citiaen Printing Company, in which Mr. Jones, member for Hali- fax, and Mr. Vail, member for Digby, were largely interested, also received printing contracts from the GoTemment. Their bills were as foUowa : Halifax OUkm Co. : 1876— Printing for P. 0. Depart- '""^■" *^ ment $8,140 ff^ Printing Money Order Oihces 1,088 7* Advertising^ 2S 0^ $10,199 7« 1876— Printing for P. 0. Depart- ment 13,268 11 Printing Money Order ' ' Otfioes .V kV4 V *'4" 940 25' Advertising ,iii'i\ '.'.., 79 00' $14,277 96 Total ;:'!': ;':.'7:'r'... $24,477 70 A contract for carrying steel rails wa» given to Mr. Norris, the member for, Lincoln. Supplies for railway purpose* to the amount of nearly ten thousand dollam were purchased by the Govern- ment from Mr. McLeod, the member fov Kent, N.B. Nearly forty thousand dol- lars were paid in 1875-G-7 to Mr. Banna- XTTNB, the member for Provencher. Her* are some of that gentleman's items in the Public Accounts for 1877 : , „,^ ^,j^ Part 2, p. 115, Provisions, M. '* Police $2,869 61 Part 2, p. 120, Oats, &c, M, Police 186 20 Part 2, p. 121, Furnishings, M. Police 100 OO Part 2, p. 121, Candles, M. Police 27 6(^ Part 2, p. 122, Spirits, M. Police 74 60 Part 2, p. 123, Sacks, Aope, &c., M. Police 76 90 Part 2, p. 136, Militia-Trans- port 64 24 Part 2, p. 180, Dominion Lands- Supplies 12 OS Part 2, p. 209, Pacific Survey- Supplies 8,994 38 , Part 2, p. 236, Fort Frances ' Lock-Supplies 2,006 84 Part 2, p. 246, Public Build- ings, N. W. T. Supplies 133 94 Part 2, p. 246, M. P. B^ilding^ Provisions, &o 8,464 17 Part 3, p. 31, Lidians— Grain Sacks 8 0(^1 Part 3, p. 32, Indians— Flour, *o 6926* $23,690 M >*. 49 Thousanda were alao paid to Mr. Cxm NmoHAM, the member for New West minatel*, and to Mr. WoBntAH, the member for We«t Montreal. Tiie fol- lowing letter of inatniotioni waa sent by Mr. Bbaun, the Secretary of the Publio Worlu Department, to one of the Gov- ernment engineers employed on the lAcliine c/>rial : [|,^, "FcBUo Works Dkpartubnt, May 6th, 1876. "JOHW O. SiPPBLL, O.E., i,v i .... .. ••Moutreal. 'r r; : "Sir, — I am directed to authorize yon to purchase, until further orders, from Messrs. Frothingham ft Workman, of Mont- real, such iron as may be required in con- nection with the canals under your charge. (Signed) "F. BRAUN, "Secretary." Now who "directed" Mr. Braun to write this letter? The result of this wholesale violation of his Independence of Parliament principle was that the Premier was compelled in order to save Mr. Speaker and some of his best sup- porters from the pains of the law, to bring in a bill relieving them of the pen- alty. The stem upholder of the purity and integrity of the Commons had to whitewash the First Commoner and a dozen followers ! PARLIAMENTARY OOin'RdL OVER CONTRACTS Parliamentary control over the Execu- tive expenditure and over Government contracts was a leading principle of the Reform leaders when in Opposition. On the 6th July, 1872 (vide Globe report of the 7th), Mr. Mackenzie in addressing a meeting at Montreal said : " The policy of the Liberal party is to make Parliamentary Government supreme ; to place the Cabinet directly under the control of Parliament ; to take trom them ail power to use any portion of the people's money without a direct vote for each ser- Tioe, ' ' ' ' 1 might point out as an iiutance of the course the Liberal party will parsae, that in Ontario when the Re- form Government came into power, they repealed a portion of the act granting aid to railways, so that all grants had to re- ceive the sanction of the House before m farthing could be paid." ' At a meeting in Peel two months, afterward, Olobe 21st September, 1872, the Premier said : — "What had been the great issue during the election ? It was the same as during, the Ontario election of 1871. It was sim- ply to decide whether the thirteen Minis- ters at Ottawa were to usurp Legislative as well as Administrative authority— were practically to become a political oligarchy at the head of our system of Governmental,^ They assumed to have the right to hava the money not ouly voted to them as a Government, but voted to tbom in such a way as to give them the disposal of it according to their own views. " Now turn to Mr. Mackenzie in office. Hansard 20th March, 1875, reports a» tOliOWS l . j iryjit\.fi--\ju ytj Mr. Mackenzie " moved the seoond read* ing of the bill to provide for the construc- tion of a line of railway from Esquimalt to Nanaimo, in British Columbia." He said that the bill as prepared did not require that the contracts should be submitted to Parliament. - - " ■ This contract involvea expenditure amounting to upward of $2,000,000. Mr. Irving — I hope this bill will not be taken m a precedent to justify a departure from what has always been understood to be a part of the general policy of the Gov- ernment, namely, to submit every contract for large works for the sanction of Parlia- ment. Mr. Mackenzie — That is not the general policy of the Go vernraont. Mr. Irving— The law does not require it, but it was understood to be the general policy of the present Government when they criticised the late Government for not following it in connection with the Pacific railway. Mr. Mackenzie — The hon. gentleman is"- mistaken. :i,'M mm ?!.t« I Jiir. Irving — I do not mean to inflect upon the propriety of any contraota that Ijave been given out. ♦ • * The point is that the country has been led to expeot that such contracts would be submitted to Parliament. Mr. Mackenzie — I am quite sure I never led the country or any one else to expect that all important contracts would be laid upon the table of the House. * * * -"Mr. Tupper — I agree with the statement that the country had been led to believe one of the great points of difference be- tween the policy of the present Govern- ment and that of the past was that all con- tract i'r voJJ {'' t!-jtn«»R "S/rivnil' »r. naSBftflmijj suftili jfTuri fM>.tio 'M ' ' ' " ■ ' ";^r/J>fc THE STEEL RAIL TRANSACTION:: %AW vnaslt 3v(i } I'tM'Ohot/I' lit ^■"' • ''■- iBi^ • ' i^edii 'jvi .t A>ers, in fact, in which the advertisement appears to have been printed were the Herald Aud Withies* of Montreal. The appearance of the advertisement caused some interest among the merchd^nts of Montreal, and we have the testimony of Mr. Thomas Workman and of Mr. Darling that they represented to Mr. Mackenzib 5S that the time was altogether too short, . ■ad upon their representations it was extended. In his speech in Parlianibut in the session of 1875, Mr. Mackenzie cited both these gentlemen as having advised the purchase of these steel rails, upon the ^roand that the market was in a favourable condition ; and yet they both subsequently declared the first they had ever heard of the matter was when they ■aw the advertisement in the Montreal Herald, and protested against the short- ness of time alio wed tu persons to tender. That is the first serious inaccuracy on the part of Mr. Mackenzie in his defence of thiB purchase. At their instance the time was extended, and, in the HercUd of the 6th of October, the postponement notice appeared, giving up to the 16th of November to send in tenders. Even that postponement notice did not ap- pear in the Globe until the 13th of Octo- hec, five days after the tenders were re- quired to be in Ottawa, according to the fimt advertisement. So much for the manner in which tenders were invited for these steel rails. ^^^'^ f ' ^-'^ ' ' >■' '^' Vf. TBE TENDERS. TfText, as to the contracts. Mr. Mac- KXNZiE has claimed that the lowest ten- der was in every instance accepted. The tenders which actually were accepted were as follows : Guest & Co. , f54 ; Ebbw Vale Company, $63.53; West Oumberland Company, $53.53 ; and Mersey Steel and Iron Company, $54.26. This last Company was represented by OooPER, Fairman & Co., of Montreal, whose names have been unpleasantly associated with this transaction. It will be seen that their tender was 26 cents a ton higher than the highest of the others, and 73 cents a ton higher than the lowest. Each of these tenders was for five thousand tons, excepting that of Cooper, Fairman & Co., which was for from fivj to ten thou- sand tons. And yet the highest tender was awarded the contract for twenty thousand, while of the others, th* Ebbw Vale Company got only five thou- sand tons, Guest & Co. ten thousand, and the West Cumberland Co., repre- sented by Cox & Green, five thousand, the latter at their own earnest solicita- tion being subsequently awarded an ad- ditional contract for five thousand tons more. The tenders were all in accord- ance with the advertisement for rails to be delivered at Montreal ; but there was another tender, of which no notice what- ever was taken, from Messrs. Doyen & RAfttSDBN, of Antwerp, whose tender was sent in tiirough McMurray, Fuller & Co., of Toronto. That tender was as follows : — i.-; Brussels, 29th October, 1874. ■ ' Gentlewcen. — In accordance witii your favour of iust., we beg to oifer, subject to your acceptation for 25th prox., one, two or three parcels of 5,000 tons each of Bes- semer fiteel rails of the finest quality at £10 stg. per English ton f. o. b. Antwerp, net cash against B-L in London. These rails can be of any section you like, provided they are not under 30 lbs. per lineal yard. These rails would be of our own make, as we are establishing works for them, would be cut in length to order, branded R. Delivery during period of navigation nexfe year. Yours truly, (Signed), DOYEN & RAMSDEN. No notice was taken of this offer by the Department, upon the ground, as stated by Mr. Mackenzie, that it was not in accordance with the advertise- ment ; but, if the object had been to secure rails at the lowest price, there is no doubt that this was the best tender of the lot. Antwerp was an exceedingly favourable point from which to obtain freights. There are large imports of grain and petroleum at that port, and usually there is a superabundant supply of tonnage there, both sail and steamer, so much so that it is quite common for vessels to proceed to Wales, or the coal ports on the northern coast of England, in search of coal or iron freights. Br steam, rates ranged from twelve to fr^nty Bhiiiinga a ton in 1874 and 1876, ^ i it ia not too much, therefore, to I / that freights could have been obtain- ed at fifteen shiUinge from Antwerp to Quebec or Montreal during that season. It will be aeen that the offer made was for fifteen thousand tons, and that the price laid down in Montreal would be £10 15b. Od. Had the fifteen thousand tons gone to the Antwerp firm, instead of to Cooper, Faikman & Co., which would still have left them five thousand tons, there would have been a saving of at least $27,000. Mr. Mac- kenzie, in some of his speeches, has at- tempted to show that he made an ofler to induce the agents of the West Cum- berland Company to take the contract for the whole quantity. In a speech delivered by him at Whitby he said : *' One firm tendered for 5,000 at $54 ; '' another firm tendered for 5,000 at " $53.24. This firm was the lowest, re- *' presented by Cox & Gkebn, if I re- " collect aright. I pressed them to take " the whole 40,000 we then decided to *' 07'der, but they declined to take more ** than they tendered for, and Cox & *' Gkeen have published a letter over " their own signatures stating that they ** were pressed to take the whole con- ** tract at the figure they named, that *' being the lowest." As a matter of fact Messrs. Cox & Gkben never wrote any such letter. On the contrary, the letter they did write is in direct opposition to this statement of Mr. Mackenzie. Dur- ing the controversey which occurred while the Montreal election was going on between Messrs. White and Woek- MAN, Oox & Gbehn wrote a letter to the Herald explaining their connection with the matter, and in that letter they said : *' We prepared a tender for 10,000 tons *' steel rails, at £11 tkg. per ton, de- *' iitered here, and without coming any ** furthet into contact ^th the Depart- *' tnent, were informed by telegram that * ' our tender was accepted. " They were mistaken as to the ten thousand, because in the first instance they only received ft contract for five thousand, and the cor- respondence which appears in the return brought down to Parliament shows that they had some difficulty in getting the contract for another five thouaamd. That correspondence is as follows : "13 AND 15 Hospital Strbkt, 'fi'P "Montreal, Dec. 18th, 1874. "Dear Sir, — We are to-day in receipt of a cable communication from West Cum- berland Iron and Steel Company (Limited), informing us that taking into consideration the favoxirable terms of payment, they are prepared to increase the quantity of steel rails which they are contracting to deliver from (5,000) five thousand tons, as the quantity now stands, to (10,000) ten thoor sand tons. We would remind you that our price is the lowest of any, viz : (£11 Or, Od.) eleven pounds sterling per ton de- livered in Montreal. We would now, therefore, respectfully request that you would bring the proposition to the notice of tha Minister of Public Works, calling his particular attention to the very lo^ price of the rails. "Soliciting the f ivour of a reply, " We are. Dear Sir, ' 1 A. J < Your obedient servants, ■'' (Signed,) "COX & GIIEEIT. * "F. Braun, Esq., Secretary, -*.^ " Public Works Department, woxi;) v'ii. "Ottawa." ' XKh- HI .fi uiuiM "Montreal Telegraph Co., t" "Ottawa, Dec. 2l8t, 1874. "By Telegraph from Montreal, to T. Trudeau, Public Works. " See our letter, 1 8th December, to Mr. Braun, offering five thousand tons more rails, if wanted ; reply quick, as a railroad is in treaty. (Signed,) "COX t GREEN"." '" And the following day came this answer from the Secretary : ' ' "Ottawa. 22nd Dec, 1874,,,., " Telegram to Cox s - i . -. i ^ ■■;■■( ■■">■*-» •*)■' '-1-- • / / •• "The Government asBathing this' nspon- •ilylity of freight, &o., which is to say, to pa> shippers, makers not asanmlDg dellvm to Vancouver ports. " Should you require the track bolts for this lot, we can arrange for them and in- clude. We are advised that steel rails are nbw held at £11 0. Od. We would be glad to be favoured with the address of your bankers in England, to whom we suppose the bills of lading wiU require to be pre- sented. Kindly confirm the contract «a soon as possible, to enable us to cable reply, the necessary docume^t^ jto ^Q^osff V ••, Yours faithfully, ,,„„ r) ,,♦ V. "(Signed) " COOPER, FAIRMAN & CQ-r ' ' Hon. a. Mackenzie, Ottawa. " , ■.i,.]^ v, -, , .'ft'* (,.; •' Ottawa, 21st January, 1875." " Gentlemen,— In reply to your several communications on behalf of Messrs. Nay- lor, Benson & Co., I am to state t^iat the' Government accepts their offer to supply 5,000 tons of steel rails at £10 10s. ster- ling per ton f. o. b. at Liverpool, and allows £2 per ton for freights to f he Van- couver ports. ''■' •'' ' "'^ v> i'".v;«^-■ " • • " Secretary. " Pbu-ipS. Jusxicb, Esq., 'No, 14, North Fifth street. ;■ Philadelphia, Pa,,, y.S." There is no doubt of the truth of Mr. Justice's statement, that permitting rails to be delivered f. o. b. at Liverpool, would ha^e greatly increased the competition, and would have had the eflfect of correspond- ingly decreasing the price of those rails ; but it ia evident that it would hot have suited the special object of Mr. Macken- zie, The public, however, will natu- raXiy ask wiiat right Mr, Mackenzie had, in the first iniitatice, to reject thfe tender Crom Antwerp, bjr which $27,000 would have been saved, on the t^dund that he would only accept rails delivered* in Montreal, to refuse the offer of M?', Philip S. Justice to increase the com- petition by accepting tenders for rails delivered at Liverpool ; and afterwards, by piivate arrangement, to enter into contracts with Cooper, Fairman & Co,, and get the other rails so delivered at Liverpool at ten shillings a ton higher than offered by the Antwerp firm, and by the West Cumberland Co-upany aa COOPER, FAIRMAN AND CO. People will naturally inquire, who were this firm of Cooper, Fairman & Co. to whom these special favours were granted 1 What was there in their business which should have secured foi^ them privileges absolutely refused to other firms ? The answer is one which certainly cannot be accepted as credif table to Mr. Mackenzie. His own brother was a partner in the firm, and to that fact is to be attributed all thes<^ special favours. As doubts have boeii expressed upon this point, it is as well to give here tJ^e oflicial notice of partn^- '' [No. 59. ] ■ vj jr: " HUBERT, PAPINEAU & HONEY, "P.S.C." We 'have thus the fact beyond contro- versy, that Mr. Chaeibs Mackenzie was a partner in the firm of Cooper, Fairman & Co. , when these extraor- dinary favours were granted to the firm by Mr Mackenzie ; that he did not retire imtil after all the contracts had been made ; and it is a fact which nobody has ventured to deny that he received on his retirement promissory notes pay- able at the Exchange Bank for the $15,- 000 which he had put into the firm. It required the proceeds of these transac- tions to enable Coofbr, Fairman & Co. to pay these notes, so that the fact is beyond controversy that the result of all these transactions was to enable Mr. Charles Mackenzie to withdraw his capital intact from the fxrm, in which, but for that fact, it would probably have been irretrievably lost. the loss to the coitntrt. What the country has lost by the mere purchase of these rails ha? been estimat- ed at not much less than two nullions of dollars. The iitatement prepared by Mr. MAcrHERsoN on the subject of the loB^ from this steel rail purch^^^e is as follows, and no man ia bettjsir.^ijualified to giv« a statement upon the lubject than that honourable gentleman : / "The Profit and Loss Account of the Ooverameut Steel Rails speculation may be 67 taken to stand about as follows : — Cash paid in England for steel ,"{ I rails and fastenings 12,938,900 1 The same quantity could have been purchased, deliverable * this spring in Canada for. .... 1,800,000 t' '■ ' ;•; ,:> ,LoBB on first cost. .' $1,138,900 Interest to 30th June, 1877, on ascertained payments 271,365 7o this must be added the cost , of 4,000 tons laid upon the Truro and Pictou railway,*/ .:■- line that would not have been steeled had not the rails been on hand 285,120 (The Government has taken au- . . , thority to transfer this rail- . way to Nova Scotia as a gift 'to a private company.) Ascertained loss to the end of current fiscal year, 30th June, 1877 $1,645,385 Interest is running on at the rate of about |13,500 per ■ i !»;*»• month, and is increasing — I ./« 'ilwh estimate the further loss by -:-^'- . interest before the rails are used at I 419,169 It may be assumed that the country's loss by Ihis unfortunate transaoMon, before the interest acount can be fairly closed, will not be less than Two Miluons or Dollars ! The rails have been distributed as fol- lows : — 5,000 tons to Vancouver Island, where they are not required. \ ''"'"'• ^" ^. ^ 11,000 tons to Nova Scotia, 4,000 tons of which are to be given away to a private company. '''*^<*"" And the remainder are at various places from Kingston to Manitoba. " J^ THE OAHBYING OONTRAOXB. We hare dealt thus only with the question of the purchase of these rails, but there remains ihe question of trans- portation. In April, 1876, Mr. Mao- KBN9IB advertised for tenders to tnuu- port rails from Montreal to Fort Wil- Uaih or Duluth, and the following ten- ders were sent in : 1st. E. Samuel, Montreal. ..$6 00 perton^ * 2nd. C. Edward, Kingston.. 6 25 .. ^ 3rd. C. E. Jacques & Co., j^ Montreal 6 30' .V'^ 4th. Charles Stephenson, ^" ".- Montreal , . . k".'. 6 50 .^^^ 5th. Cox & Green, MontWal. 6 50 .'.*'"^ 6th. Holcombe & Stewart, ""' Kingston 6 74- . . 7th. J. H. Beatty & Co., | .. Thorold 7 00 8th. W. H. Perry, Buffalo. . 7 00 ' l^fUl'l One would have imagined that, in ac- cordance with the general principle Mr. Macksnzib has laid down, Mr. Sam- uel's tender would at once have been accepted. He offered as surety Messrs. D. BuTTEBS «fe Co., of Montreal, and certainly no better surety could be ofifer- ed ; and yet, upon the ground that Mr. Samuel was not a steamboat owner, his tender was rejected. All the other tenders were also rejected, and an ar- rangement was made with Cooper, Fair- man & Co., who are not steamboat owners, and never have been steamboat owtiers, for the transport of these rails. The pretence was that in the, November previous, Cooper, Fairmak S^ Co. , in one of the tenders which they sent in, had offered to deliver the rails' at Duluth and French river at $5.60 per ton extra, exclusive of any harbouif or wharfage dues. When Mr. Mackenzie got in his tenders as stated abo t e, in answer to his advertisement, he appears to have entered into correspondence- with Cooper, Faibman & Co., and they then proposed, on behalf of " The Merchants' " Lake and Steamship Line," to convey the rails at $6.20 per ton, including dll the charges mentioned in the advertise- ment. That offer was accepted. It will be seen that it was twenty cents a ton higher than Mr. Samuel's offet.^' Not a very large amount, not a vtery serious matter, being/ only a thousand * I^f:l T.. to 4oIIan, but even a thouaand dollars^ au ecuuumical gentloiuaii like Mr. IVf ao> KBNZIE, ought to have beeu worthy of consideration. The most extraor Jimiry fact, however, is that Mi'. Maoicknzib, when he determineil to refuse these ten- der.i, should have accepted Ooopbb, Faikman & Co.'s offer of the previoiu November, and should have if a,f. ■ : &r/t)l •* MONTBBAL TbLBOBAPH CoMPANT, "Ottawa, 11th January, 1875. ^i " By Telegraph from yew York to Hon. A Mackenzie. " Have just received contract duly exe* outed by Guest & Co., which we forward to you. We learn, through a Transporta- tion Compaay, that you may want some rails at British Columbia. Will you con- sider a proposition frona us to ^hip one lot direct there, or for an additional ten thou- sand tons to be sent there ? Please tele- ; graph reply. J^;^' 'i^:,,,f'" ,H .InnM-i^^q " (Signed), , "PERKINS, LIVINGSTON.POSyiCO.'* 09 •iifiiif'I )o I'v'ift;'^.! ♦«*{ ?>jii VM" :iif' (fin. Thst letter wm uoi even replied to ; but an arrangement was made through OooFBB, Faikman & Oo. for the trans- port of the rails at £2 sterling per ton. It has now transpired that though the Government paid £2 sterling per ton, the actual prioe paid the ship, including 2^ per cent, commission to the ship- brokers, was from £1 Ss. 6d. to £1 lOs. Od. , so that here again was a direct loss of over 112,000. That there may be no dispute upon this point, we give the fol- lowing extract from the charter party entered into with one of the vessels transporting these raUs, it being at the highest price paid to any of the ■hips : ^.. • r " Freight for the said cargo to ' be paid at the rate of thirty shillings, and five per cent, primage sterling per ton of twenty hundred weight on the quantity delivered. All port charges, pilotages, dock and har- bour dues on the ship to be paid on the •hip as customary. The freight is to be- come due and is to be paid as follows, viz. : — Two-thirds in London or ships' final •ailing from port of loading, subject to a discount of six per cent, in full of interest, insurance, &c. The equivalent of £35(), at the rate of exchange for bids on London at usance, frte of interest and commis- sion at the port of discharge for ships' disbursemeats there ; the balance in Lon- don within fourteen days after production to charterers . there of consignee's cer- tificate of unloading and light of delivery of the cargo, less cost of damaged or de- ficient cargo, payable only to the order of John S. DeWolf & Co. Twenty-five running days to be allowed for sending cargo alongside, and the cargo to be re- ceived by the consignees at the rate of not less than fifty tons per running day, Sun- days excepted, and when required by the consignees, such extra quantity as may be practicable. Demurrage to be paid at the rate of 4d. per register ton per day. An address commission of two and a half per cent, on the amount of freight under this charter is to be paid to the charterers and may be deducted by them out of the first payment." I1O88 ON TRAirSFOKTATIOK. 'iUut We again cull from Mr. MAOPHintflOK the following tabulated statement of the loBs on transportation, and adding to it the item, to which we have referred, of ten shillings per ton excessive payment, on the transport of rails to British Co- lumbia, we have an actual losa in the mere matter of transportation of over 190,000. ■1 (»ili;Vl"ll-. ) ,|--M ■"•:_• ! i» lit:. On the 5th January, 1875, the Gov- ernment bought 6,000 tons of steel rails from Messrs. Cox k Qreen, of Montreal, at £10 stg. per ton f. o. b. in England, and two days afterwards (on the 7th January, 1875,) the Government bought from Coop- er, Fairman &Co., without com- petition, 5,187 tons at £10 10*. per ton, also f. o. b. in England, for British Columbia. The country's loss by this act of favouritism was 10s. stg. per ton, and amounted to , .f In November, 1874, Messrs. Dar- ling & Co., of Montreal, tender- ed for bolts and nuts at $92.47 per ton, and at the same time Cooper, Fairman & Co. tender- ed at $101 per ton. Cooper, Fairman & Co. got a contract for 160 tons. The country's loss by this act of favouritism was In 1876, Messrs. Guest A Co., of England, supplied to Canada 10,000 tons of steel rails, and when tendering for the rails in November, 1874, they offered to deliver them at Duluth at $4 per ton more than at Montreal, or, including insurance, $4.16 more p^r ton. Messrs. Cooper, Fairman & Co., acting for them- selves and on behalf of Messrs. Norris & Neelon, of St. Cath- arines, and Messrs. Hope k Co., of Hamilton, were paid at the rate of $6.20 per ton. The country's loss by this act of 1:1 -u 12,604 jifT ■1 ■.); + 1,36S 60 m ii -o Vj .fJif'i favonritiiin and miBmanagement was 12.04 per ton on 10,000 tons, and) amonntod to ...,..; . 20,400 lu iApnl« 1876, the Red River Tranaportation Company ten- dered for the transport of raili from Duluth to Winnipeg at $15 (Unitod States currency) per ton of 2,000 pounds. Messrs. Fuller & Milne, of Ham- ilton, tendered for the same service at $13.50 (United States currency) per ton, (meaning the usual ton of rails, 2,240 pounds). The Red River Company get the contract, and transported 15,141 tons. The difference in the rate of freight and in the ton weight amounting to $3.30 per ton. The country's loss by this act of favouritism and mismanagement was $3.30 per ton on 15,141 tons, and amounted to $49,965 United States currency, and in goidUf,..f w;.-7V'- The loss on thti four transactions which I have enumerated am- ounts to $79,338 7,'";"' SUMMARY, "^'-^^-^''-i These rails, sufficient to lay five hun- dred miles of railway, were purchased in the January of 1874. Purchased with- out the previous sanction of Parliament, and with no vote of Parliament to jus- tify their purchase. How thoroughly vliinocesaary was the purchase at that time will appear from the return brought ■1:A :/iCr\\Ui\^'i mill! 44,969 UiUi "^1 down duiing the last session of Parlia- ment. That return liad relation to the -v number of miles actually laid, down to January 1878 ; and according to the re- turn, on contract No. 13 were 32| miles :. laid, on No. 14 there were 6 miles, and - i on No. 25, 8^ miles, making in all 47 'i miles, requiring less than one-tenth the entire quantity of rails purchased, and this three years after the contracts ' were made for those rails. It is true . that some ten or eleven thousand tons ' have been used on the Intercolonial railway, but they were used in vio- lation of the law, because the pr^ ■' tence was that these rails were pur- chased under the general authority of ' the Pacific Railway Act. It is true that, in order to get rid of them, the Pictou Branch was laid anew with steel . rails, before being handed over as a free ■ ■ gift to a private company ; but that, certainly, could not iiave been in the contemplation of Mr. Mackenzie at the time he purchased them. We have got, therefore, as a result of this transaction, the fact of a purchase of a far larger quantity of steel rails than can possibly be required, in a falling market, and at a loss to the country of nearly two mil- lion dollars, simply that Mr. Charlks Mackenzie might be enabled to draw out of the firm of Cooper, Fairman & Go. the capital which he had put into it, and thus escape the loss which the com- mercial record of the last three years shows must have been inevitable but for tl^e^fi tif*a^^io««. _. , ,, „ I .auihii'i'B 'fa'1 hwoHr. '»! <*i i:^sh}inf'}'m'f '1/ . JR ,?*««■•<■■«'• Jw* 'w flOi !';: ii^iWiti io i'^^i^ vd ■'HJi^' «!lT i " iijttmi*i| y-^^f "i' A fti^L^-si t^jtii T / ' ■ 1 \tUM i 'iiU^li) 'ttu '.M> last Jw(K»lJ«U»i (*•)* ^ nlJ li "MJji'.ivfl .♦ " iWJJlM •(U THE "ON THE MAKE" POLICY, WITH \U tit ,'!4^« J •L.i '«» I*;'. I'D* , If' I0(( EXAMPLEa ,j,t«.4 ,».ni 1, I, :,?;: -^ ! rd^ti:!! oii«iJi;i.-n4n'>i7 influence of his bank ledgers have been used ? — and, according to agreement, re- ceived the lion's share of the deposits the Finance Minister had at his disposal. This was using the people's money to procure the intimidation of the largo- class of farmers and merchants having dealings with a prominent banking cor* poration. The facts were set out by Senator Simpson himself and other wit- nesses in the case of the Quben v. Wilkinson, tried before Mr. Justice GwYNNE at Coboiu-g on the 25th and 26th of October, 1877. On the 17th January, 1874, Mr. Simp- son, as President of the Bank, sent the following circular to its customers : "O' ■ BowHANViLLB, Jan. 17, 1874 „ '1 1 , Esq. : Dear Sir, — Although I am not disposed to oppose Mr. Gibbs on personal grooods in the approaching elections, still as Qne who has laboured long and hard to pro- mote the interest of Canada, I now ask my friends to support men who will snpport the present Govumment, for the following reasons : " 1. For the country's good, and to show to England that the (Janadians will not sus* tain or tolerate men who will barter our rights and stain our character for base and sordid motives. ^ " 2. Because many of the men forttung> the present Government are my p<«rsoQali and esteemed friends. ■.<■■■' -iiiMe. . •■• iwi " 3. BecauBA if the present Government is sastained, I will be able through then is to get Jtutio* for oar party in DMdful »y- pointmenti and utherwiM. " 4. Bticaiue if thoy are luitained our bank and other Ontario banlu (and through them the country) will have ths use of the Qoverntnent surplus until required." May I ask you to give my old friend, Mr. QunerOii, your oandid and hearty sup- port? I am, yours truly, ' > > , J. SIMPSON. In that contest, Hon. T. N. Gibbs, Vice-President of the Ontario Bank, was opposed by H>m. Maluolm Oah- muoN, of Ottawa, the former being the Opposition and the latter the Govern- ment candidate. What induced Mr. Simpson to come out thus openly t»nd solicit the help of his customers to de- feat the vice-president of their own bank and elect a stranger and a non- resident? And how did he become possessed of the information that if the Mackenzie Gr,,-ommer.ii were sustained *' our bank and other Ontario banks" and, excellent purist ! " through them " the country " would " have the use of " the Government surplus until requir- " ed V Mr. Simp80N himself answered these queries in answer tu Mr. D' Alton MoOaethy's cross-examination T'*' "' ■ I raK 0ARTWRIOHT-8IMPSON BAROAIN. Q. Had you had an interview with the Finance Minister before that circular was written ? A. I had an interview on the 8tb December, 1873. , .in,iJfl/.-..,#jif^ m/.t _ Q. Are you in the habit oi issuing un- truthful circulars to influence the electors ; or do you try to keep within the bounds of truth T A. I am oot oonsoioos of issumg an untruthful circular. , Q. In this you say : 'tn.xvO i>f^'»^ii 'Vi " Because i! the Government is sustain- ed, I will be able through them to get jus- tice for our party in needful appointments •nd otherwise, odv ■. <>i ■ ■■ " Because if they are sustained our Bank and other Ontario banks (throughout the ooontry) will have the use of the Gktvem- mmitaurplus until required." Yoo Jiad some warrant for saying that, of i >' rt)yiH«??tf* oKj* so 4iri». i .,t»wii««a« *' oourte r A. 1 believed w« would have ju»- tioe done us. Q. You see what you say here. If you had not believed it you would not have said so ? A. I had reason for saying what I said. Q. That if the €k>verament were sustain- ed yon would have the Ooveroment de- posits ? A. More equally divided. Q. From whom did you get that T A. From a number of gentlemen. I went to Mr. Cartwright, and he sworo Q. Never mmd what he swore. Swear for yourself aud . uMi ».».i«r,-iA ♦ frti. - The VVltness — He wants me to give an •nswer which I think is unfair. Mr. McOartuy —There is nothing unfair il it. You will have the opportunity of •iplaining it through your counsel ; but I ctonot be interrupted by your disserta- ii«ns on public matters. Do you remem- be* what the question was ? 'Jhe Witness— Whether our bank has re- M^ved larger deposits than other banks. Mr. McCarthy— Well T .Tie Witness— I belie]t[ej|^)i;,^e ^ve re- Mivet larger deposits, ,j„„, ,,. ...,,;„,„, j. Q. I think we understand that yon had A ditiinct promise from Mr. Cartwright that if the Government was sustained your bmk would get a share of the de- posits A. I don't think I used the word "distiict." ^Q. Hve the Government kept faith with Q. Inyour locality ? A. Yes. Q. Far oui of five constituencies in which ya were interested were carried ? A. Yes. The t?e constituencies referred to were ^*rth and South Ontario, East and Wes Durham and South Victoria. In these ridings the Ontario Bank has „ agf)ucies ad its influence is great. r>; THKBOIXNOB OF UK8MERI.SM. Saving thus agreed with Mr. Oart- VRIGHT tf fight even Mr. Gibbs in South Ontario iiconsidoration of the deposits br^'be, Mr Simpson, besides writing the ■J «ii;culiu- al^ve given, took an active per- •opal j)'irtn the contest. Har« is his own accout of it : Q. Ten took an aotlve Interest in Sontb' Ontario in 1874? A. I did not. Q. Did yon subscribe to any «l*otioo fund? A. I did not. i """f •u.iU'^h^o Q. Did you go up there during tbe don* test? A. I did. Q. I[i>w9ft«n? A. Ono«. -uti Q Where did you go to? A. F. W. Glen's. Q. Where is Glen's? A He liyes^st Q. Did yoa s«e Mr. Glaajl, ., ^, I ww him. Q. Did you seo Dr. MoGill ? A. I did. . [Here it may be well to say that Mr. F. W. Glbn is now the Government candidate in South Ontario, and Dr. Mi^GiLL — ^the gentleman who qnairelled with Mr. Geor(ib Broww in 1807 bo- caase of the latter's corruption — is on* of his chief supporters.] '^^ Q. At that visit ? A. I saw him adoean times ; I stopped three days with Mr. Glen. Q. During those three days you saw Dr. McGill ? A. Several times. Q. And up to that time Dr. McGill had been a supporter of Mr. Gibbs ? A. I ; think he supported Mr. Gibbs at the pre- vious election. Q. Did you not also know more than that ; did not yrttt know that Dr. McGill Was chairman of Mr. Gibbs' committee in Oshawa at that time ? A. I do not know that of my own knowledge, nor lipou good authority. ' r, tion could be put. The Witness— They were larjs on*, tomers. . . _^ ._ ,^^ _ ^ , I ., ^ ^^^ Q. Was this interview with Dr. McGill ^ the sole object of your visit ? A. To. Q. Did you attend any meetin whil*^** yon were there ? A I did not., Q. Do you remember oeing in i room- one night, and Mr. Glen wantingyou ta go to bed ? A. T do not. r [ ' ' " * " ^ Q. You don't remember braggiit of thai^ ^ when they came to congratulst« ]>u, and. ' that you got over thirty from th other ^ side ? A. I think there were m<4 *••• ^ that. "* 65 rn. rjivj T^ .V! ; Q, How many 1 A. One hnndred. - Q. Where? A. In South Ontario. I ihink I was the means of getting gentle- men who had sufficient iofluenoe to secure 100 votes that night, • • ,'!""*•' ^''"f 'V Q. On what night ? A. Ittie night yon •re speaking of. Q. The night you did not go to bed ? A. Oh, I did not go to bed till very late any night. Q. Where was this ? A. At Glen's Q. How many were present f A. Some- times there would be fifteen or sixteen. Q. Then you had a committee meeting ? A. It was not a committee meeting ; it was just a gathering. Q. Was there any. chairman ? A. No. Q. it did not require such an officer? A. No. Q. But they came in and passed out ? A. Yes, they passed in and out. Q. What was the influence you brought to bear npon them ? Are you an eloquent man? A. No. .•:••" ' ' ' Q. You are not eloq'dent ; then "^hat in- fluence did you bring to bear ? A. It was not money, any way, . , -f kN'i" ''1 ' ' ■ "' Q. Well, what was it ? A. Oh, a sort of mesmerism. (Laughter.) SIMPSONS REWARD. .• per cent, in England), of wliicli he liJid the free use. Ho has made a heap of money at our expense ; btit then it ia not every man who can control four con- stituencies in the interest of Purity and Reform. .,'.1' ", i, ..i..> n.:'«n ..(•i*»"tf^>;'' '' Or*.i CABINET MEMBERS. i I .1 The following members of tho Admin- istration have taken office ,:.... f*. ;. •i.-,i Salary. Hon. D. Christie $4,000 Hon. A. A. Dorion 6,000 Hon. D. A Macdonald 10,000 Hon. Luc. Letellier 10,000 Hon, D. Laird 7,000 Hon. J. E. Cauchon 8,000 Hon. T. E. Foumier 7,000 Hon. W. Ross 3.000 ^ ,.. ..^. - $55,000 These gentlemen took office to reform the evil statutes passed by the Macdon- ald Government, to reform the Civil Service, to reform the number of Cabi- net Ministers, to reform the salaries paid under the head of Civil Government, to rSduoe the expenditure in every branch and to reform the country and the con- stitution generally ; but they left theif work undone not to say untouched, and abandoned the people in their dire ex* tremity to "make a piece" for them-" selves. i Sci.v,, H. DE ST. JUST- 66 H. DB St. Just, the chief political Bgent of the Maokenzik Government in the Province of Quebec, is very much ♦*on the make." He has $10,000 a year himself, and he has succeeded in obtaining valuable positions in the Do- minion service for nearly all his rela- tions. Here is the record for 1877 lilt Jyj-y Vn ,.• : .l..'< • ■--' ,:, . • . ,'-. r Salary, ITame. Position. Bonus, 0ol. Panet, Militia Depart- ment 3,200 127,990 1875-76. Mounted Police, part 2, p. 122. . .| 2;fi63 Do. part 2, p. 133 8 Do. part 2, p. 133. ... 46 Dominion Forces in Manitoba, part .2, p.. 170 .;; • ■ 88 Manitoba Lands, part 2, p. 189. . r;*" " "94 P ici tic Railway Survey, part 2, p. 217 , 7,96p ,7 lr A. O. B. BANNATYNE, MP. Mr. Bannattnb, M.P., was returned for Prrvencher on the 31st March, 1875. xxo ran at the general election in 1874, but was beaten. His case has al- ready been referred to under the head of Independence of Parliament, but he is in every way entitled to figure in thfe " on the make" chapter. Here ara his bills for supplies sold to the Govern- ment since the 1st Julvi 1875, four months after his return to Parliament, IM given in the Public Aooomits : $10,706 Add to this his bills in 1876-7 as given in detail in the Independence of Parlia- ment chapter, and it will be found that this sound Reformer has, while a mera- bef of the House of Commons, drawrn no less than $35,000 from the pubUo treasury. ^ j^ X PIERRE A. TREMBLAY. M. Pierre Trbmblay, the J. D. Edoab of the sister Province, is willing to run for Parliament in the Party's in- terest whenever asked. In retnm for these services he feels that he is en- titled to " make" , something for him- self and relatives. Here they are as given in the Public Accounts and Marine and Fisheries reports for 1877 : I ••••••« • Pierre A. Tremblay Davila Tremblay . . J. A- Gagne, avocat Hilaire Tremblay . . Tliomas Tremblay . . Louis Guay William Tremblay 5l98 John Guay 143' Sixkien Tremblays in the Marine and Fisheries Department, aggre- gating .....a.. . 665 $840 763 6W 376 322 (521 n.i) $4,719 ^ ROBERT JAFFRAY & 00. Mr. Robert Jaffray, the Party " boss" in Toronto, runs a grocery on Yonge street. His first lieutenant, Mr. Hugh Miller, is a druggist on King street east near the market, and his se- cond lieutenant, Mr. R. H. Ramsav, has a grocery on Wellington street. These three gentlemen, being largely out of < pocket at everv election through putting down bribery and corruption, ' * make" : on the groceries supplied the Govern- ment Works between Toronto and Win- nipeg, where Mr. Bannatynb, M.P., 67 luM a store. Mr. Mackbnzib gives no other weatem or northern finus — many of whom are hundreds of miles nearer the works — a chance of those particular pickings. Their bills for the past two yoars are as follows : - : 187«. ' I ^ Mr. Jaffray — Pacific railway grocer- ies, part 2, p. 208 tll9 Mr. J affray — Tacitic railway grocer- ies, part 2, p. 212 1,649 Hugh Miller — Drugs for Fort Frances, part 2, p. 247 687 E. H. Ramsay & Co.— Pork for P. A. Landing, part 2, p. 215 , 1,629 R. H. Ramsay t Co. — Supplies for Fort Frances, part 2, p. 247 399 1877. Hugh Miller — Medicines for Pacific railway, part 2, p. 2U0 21 R. H. Ramsay — Provisions for Pa- cific railway, part 2, p. 201 673 Hui^h Miller — Medicines for Fort • Frances, part 2, p. 236 57 $5,234 Mr. Jafpray dropped out last year. He and Mr. Ramsay supply the Ontario Government Works on the Bm-leigh road north of Peterboro'. ,■ ,. ,, , , ^ MR. DAVID GLASS. Mr. David Glass, a London lawyer, was elected to the Dominion Parliament in 1872 by the Conservative electors of East Middlesex. In 1873 he deserted his Party and went over to Mr. Mac- kenzie. His treachery was followed by his punishment in January, 1 874, when he was defeated at the polls. In 1876, although he knows no more about mak- ing or working a telegraph contract than any other lawyer, he obtained the con- tract for section 1 of the Pacific Tele- graph line for $107,860, although Mr. R. FuLLEU, who obtained the contract for section 2 and completed it most satis- factorily, offered to do Mr. Glass' sec- tion for $38,750. Mr. Glass according- ly •' made" $70,000, a big haul as ti.nes go. /K' '..■■'■' ■ - ,- i ,1 , ' ' ' ■ ''' MR. DONALD A. SMITH, M.P. Mr. Donald A. Smiih was another of the 1873 patriots who " regarded the " hoaoui- of this fair Dominion before " Party obligations," and then took a hand in the plunder. He is said to be one of the principal partners in the Red River Transportation Company. In April, 1875, Mr. Mackenzie deter- mined to ship 12,000 tons of his steel rails from Duluth to Manitoba. Tmx- ders were called for, and among others the following offer was sent in : Hamilton, 16th April, 1875. Sir, — Noticing your advertisement for tenders to transport steel rails and fasten- ings to Fort William or Duluth, we have the honour to state that if the Government " conclude to take railroad materials to Manitoba via Duluth, we are prepared to carry the steel rails and fastenings requir- ed for the Pembina Branch, and for the section of the Canadian Pacific Railway, from the crossing of lied River to Lake of the Woods, during the present and ensu- ing sunnner, at the following rates (Ameri* caa currency), delivered over the rail, viz : — From Duluth to any point on Red River . between tlie boundary line and Fort. Garry, for thirteen dollars and fifty centi (.;?13.50) per ton. From Duluth to the crossing of the Cana- dian Pacific Railway over Red River, for the sum of fifteen dollars (15.00) per ton. In either case no custom fees or dues to be chargt'd to us on entering Man'toha. Provided the Government obtain per- mission from the American Government to transport the same throuijh their territory without bonds or on our own personal' bond. Payments to be made at the rate of i ninety per cent on delivery, and that we iNe, informed of the acceptance of this tender' on or before the fifth day of March next. ' Our address will be ' Fort Garry ' alter the 30th inst. _ r. We have the honour to be, sir. Your obedient servant, (Signed,) FULLER & MILNB. F. Braun, Esq., Sucretary. Public Works Department, •. Ottawa. The contract, however, waa awarded t« the Red River Transportation Com-r. pany at $15 per ton through, Mr. Hmith'b reputed line landing 10,000 tons at St. > Bonifaci , though Fuller & Milne of- fered to carry them there for 813.60. r. The hon. member for Selkirk and his, friends " made " $16,000 by the trans- i action. t THE ISSUE BEFORE THE COUNTRY. s It has been shown in the foregoing chapters by evidence taken from the public records that the men now in power are unworthy of a renewal of the confidence of the people. They have violated the pledges on which they ob- tained the confidence of the country. They have been extravagant where they promised to be economical. They have perpetrated jobs where they inculcated honesty. They have conducted public affairs, more particularly those relating to the public expenditure, more in the interest of selfish partisans than of the taxpayer. Surpluses have given place to deficits ; and the deficits threaten to be chronic, although throe millions of extra taxes have been imposed. Their ipanagement of the great public works has been unfortunate because of their incompetence. Fifteen millions has been spent on the Pacific railway of which at least three and a half millions -^the steel rails, the Foster payment, the Kaministiquia fraud and the useless Fort Frances canal — have been absorbed in doubtful purposes ; while the hope of ittil communication with the Pacifit: coast is yet very far from even prospective realization. An era of bad times has destroyed many and crippled all our industries ; and beyond doubt the rejection of this unhappy Cabinet, and the return of those men T'ho built up Confederation in the first six years of its history, would result in an industrial and commercial quicken- ing. The merchant or the manufac- turer has no confidence in the present Administration : they have confidence Vj.-.viu.l.ilUW. '\ -'■-/■•'"ilU' .-: \A , -it - J 'f ,'. .n«Hl ^'W'lV ;'■ in those who from 1867 to 1873 con- ducted public affairs in a majjner that ensured general prosperity. Basing its claims upon this negative policy, upon what Mr. Mackenzie and his colleagues have failed to do, and on that alone the Opposition ought to receive the confi- dence of the electors. But they rest their case on a positive and distinct policy. There is a question at issue between the two parties, apart from the failure of one to govern the country as prudently and successfully as the other did, to which the intelligence of the people is directed. .li/I XHB QUESTION ABROAD. , When the nations of the earth »r* exactly equal in armaments and in their- ambitions, and agreed in their general policy, we may look for the cessation of war and the coming of the millennium. So when the nations are equal in point of natural resources, of industrial ability, of the power of production and tho' power of conaumption, we may expect the laying asiie of hostile tariffs and the establishment of a universal Free Trad« Zollverein. But so long as one nation is weaker than another, so long will hostile ' arnuiments and tariffs exist ; for self- ' preservation is a fundamental law of* human nature. Five-and-twenty years ago, Englan 1, having by three centuries of the most careful Protection, de- veloped her resources until she feared no competitor, put aside her tarii& and , blandly asked the other nations, weaker. . than herself in all that makes nations great, to follow her example. 69 But what has been their answer ? It ili inoonceivable to suppose that Oobdsn and Pbbl surpassed all the other states- men in the world in wisdom, or that the latter should have failed with one accord to believe in Free Trade had it been in the interest of their respective countries to adopt it. Their unanimous refusal, then, to follow England's example must be based on their conviction that what was good for her is not good for them. France, Germany, Russia, Austro-Hun- gary, Italy, and little Belgium, admire England's doctrine in the abstract, but reply to the c^ olings of the Manchester School vhat they can- not become Free Traders because they cannot aflford it. They do not control the world's wealth, the world's marine, and the vast capital which her three hundred years of high tariffs, coupled with her own natural wealth, centred in England ; and their circumstancos being different, as they are yet weaker than she, they cannot afford as yet to com- pete with her on equal terms. They must keep up a tariff armament because, unprotected, their markets would fall an easy prey to her superior wealth and strength. So, also, say the statesmen of the United States. THB "rEFOEM" view. Canada is a country of four millions, oompoaed of a string of Provinces, as yet, from a commercial point ol view, but little used to each other's company. Our only neighbour is an enterprising and aggressive nation of forty-five mil- lions of people. She surpasses us not only in the artificial wealth which eleven times our population gives her, but in the extent and variety of her natural productions, for her climate embraces the frigid and torrid zones, and she has a marvellous wealth of coal and iron. This nation, feeling her home markets insecure against England, three thou- sand miles away, maintains a high tari£ Canada, joining this great nation from end to end of the four thou- ■and miles of frontier, ha* a very much lower tariff, a mere revenue tariff; and the men now in power pretend to say that Protection against greater wealth and greater manu- facturing ability is a humbug ; that in protecting themselves against Free Trade England because of her superior powers (with which Protection long and unflinchingly maintained endowed her) France, Germany, the States and all the rest have gone mad ; that their states- men are blind and their experience a chimera ; that the armament of the weaker against the stronger is a mon- strous doctrine ; and that we witii our revenue tariff ought to be able to meet the Americans and hold oar own from one end of the frontier to the other. On what is this sweeping assertion based ? It is based, says Mr. Macken- zie, on the fact that Enghmd can afford to be a Free Trader. But is Canada England ? Have we her wealtii or popu- lation or resources ? Have we fortified ourselves by three centuries of high tariffs ? Has England lying along her frontier a neighbour possesssing at least ten times her wealth and population, with a high Protective tariff, pouring over her border its surplus production, killing off her industries by organized competition and swamping her agricul- tural and manufacturing markets with the products of its rioher soil and better equipped and more numerous factories t The assertion, then, is based on the theory that because Free Trade is alleged to be good for England, it must also be good for Canada, all other things benig u/iequal to the contrary notwithstanding. But what is our own experience, for after all that is the test ? The history of our industries since 1873 teUs the tale. Many have been utterly wiped out by American competition. All have sufiered. Oui* tea and sugar trade are gone. Our foundries and rolling mills are closed. Except those who own patents, which guarantee them against lUlW^ir'tj' iirvimii . rf.nUvi*.^. on .. • .1 . . , American competition, all our manufac- turers have suffered and through them the mechanic whom they employ and through him the farmer and storekeeper who clothe and feed him. The manu- facturing and commercial record of the country for the past five years is a terrible witness against this one-sided system. The volume of trade has fallen, accord- ing to Mr. Cartwrioht, from ^218,000,- 000 to $168,000,000, The liabilities of the bankruptcies from 1874 to the end of March last amounted to nearly $100,- 000,000. We have reached the period of dire distress when deficits in the revenue have become chronic and we can no longer pay the Sinking Fund of the National Debt except by further borrowing from the capitalists of Lombard street, to whom we already stand indebted to the extent of $40 ahead. In two years the revenue has come short of the expendi- ture — which Mr. Cabtwbiqht says can- not be cut down — to the amount of $3,- 460,000, and a third big deficit is im- minent. Chronic deficits like these cannot fail to impair our credit, even with a Minister of Finance capable of exhibiting the " silver side of the ' ' shield" only. Meanwhile the surplus products of the American loom, mine, and workshop are pouring into the coim- try to the despair of the Canadian manu- facturer and mechanic, while our pro- ducts, the products of the four millions, are debarred by the high tariff the mar- ket of the five and forty millions. li.it hm.^iTOL .. ' wflTBfM V !*.]>:.) ns,*<:l yi.itiv THE ISSUB. When this crisis first dawned, Sir John Maodonald, against whose love for Canada even Mr. Brown hes never uttered a slander, rose in Parliament and said : " Let us protect ourselves. " Let us, the weak nation, put on a " tariff armour against the strong neigh- ' * hour that threatens to destroy us. In ** that way, by building up our native ** industries, we shall restore to our " people the essential home market, ' ' afford them a chance of oompet* " ing with the Americans, give employ- " ment to our mechanics, and " hope to our farmers, and by thus " helping along a return of general " prosperity, restore also the splendid " surplus of Revenue over Expendi- ** ture which marked our history from " 1867 to 1873." It was asked of him, " Why did you not insist upon a Protec- " tive tariff when you were in power ? " His answer was : " First, because from "1854 to 1866 we had reciprocity;, "secondly, because from 1866 until the "time I left the country in Mr. " Mackenzie's hands, the circumstances- " resulting from the war in the United " States rendered their keen competition " with us impossible." Hia policy, as set out in 1876, 1876, 1877, and 1878, is well expressed in his motion of last session : — ' ' That this House is of opinion that the welfare of Canada requires the adop- tion of a National Policy, which, by a jadiciouB readjustment of the Tariff, will benefit and foster the Agricultural, the Mining, the Manufacturing and other intorests of the Dominio < ; that such a policy will retain in Canada thousands of our fellow-countrymen, now obliged to expatriate themselves in search of the em- ployment denied them at home ; will restore prosperity to our struggling indus- tries, now so sadly depressed ; will pre- vent Canada from being made a aacrifice market ; will encourage and develop an. active inter- provincial trade, and moving (as it ought to do) in the direction of a reciprocity of Tariffs with our neighbours, so far as the varied interests of Canaila may demand, will greatly tend to procure for this country, eventually, a reciprocity of trade.''"'** ?'"■'''.'>'* <'i'.i"*.. <'»-•' »'>j-'»f''^-' The answer of Mr. Mackenzir and his colleagues was that they saw no way of restoring pro." i -^ The following table shows the differ- ence between the Canadian and Ameri- can tariffs, the excess of the latter over the former being what Canadians have to pay as an extra premium for using the United States mtvrket ;— illj^ ,110^:." ''«(!'■') ..'.rfl:.J;< H'-irfJ Duly. >'•>■<>>. 20o per busbw 16o per bush. I lOo per bush. 20 per cent. 10 per coat. ^G per lb. 15o per bush. 20 per ceuc. 75c per ton. la paukagod 12o per 100 lbs ; in bulk 8c per " 100 lbs. 25 to 50 per ceoU. $7 per ton. 35 to 75 per cent. (25 and $.30 per ton. $14 per ton. " $25 per ton. 20 per cunt. , i 20 per cent. , ^. $40 per ton. $20 per ton. ,^ £0j per bush, ic per lb. and 20 ^ cent, ad val. The following articles, all of which in our tariff come under the general figures of 17 i percent., are by the American tariff, charged with the rates undermen- tioned : — Wood Screws 56 to 60 per cent. Saws ...40 to 50 " Cars and Locomotives.. 35 •* Cotton yarn 46 to 60 " Spool thread 41 to 81 '«•' Silk cloth 50 to 60 *• '^ Machinery . . . ; i .'......, ;i5 '• ' ' Stoves and iron castings, ,30 «» ■ 5 Woollen cloth ....... ... 66 to 70 " Flannels and blankets. . 85 " • " Ready-made clothing ... ,35 to 30 Carpets. .;■', Wi'.'ll r^.'.V,, '60 to 84 Alpaca goi)d» , .;'.''.';'.»V-i' " ■ -85 Heavy eottona. . . i'fi'Vi'P '^»^'^^ •""<•' "«* Finer cottons 50 to TO **■ .t/'i»o i«,•• ••<'4#o paper, felthats of wool^i'j... .•>i..i|l ii,iiif guns, rifles, pistols, htu. in-fi -.e. umbrellas, and para- ' '>mi i ■ sola 35 ; ^•• If Canada had the American tariff ahd y the Americans had ours, matters would be about equal, allowing for their greater wealth, «fcc., but with the tariff as well as the wealth, population, producing power and resources in their favour, the arrangement must strike the dullest mind as being essentially one-sided. .This is so apparent, the injustice of the system is so keenly resented in the manufacturing centres of the country, that the members of the Government have practically given up preaching one- sided Free Trade to the manufacturer and mechanic, and are devoting them- selves to the farmer. But the Grangers who have studied the question on its merits, and without regard to the con- tentions of the rival politicians, are, as a rule, oonvinced of its absurdity and unfairness. The Grangers' petition to Parliament in 1876 set out r ^ ■ -• •■ " That whereas agriculture is a promi- nent interest of this Dominion, and the prosperity of all classes largely depends upon the success of the farmer, it is desir- able to enact such laws as shall insure that success. " As practical farmers we cannot but view with regret our markets filled with American produce free of duty, while Can- adian produce heavily taxed when sent to the United States markets. ' ' Your petitioners respectfully pray for such protection as will secure the home n?arket for the home producer ; or, that tht same rate of duty be levied on all agri- cultural products coming into the Domin- ion from foreign countries tL t is imposed by said foreign oonntrfe* upon oar prft> duce." Mr. Hill, Master of the Dominion Grange at that time, testified in answer v to the Orton Committee : •' Do you think the farmers of Canada ' would be benefitted were the Canadian Government to impose upon the United States farm produce entering Canada for , consumption a duty corresponding to the duty levied by the United States Govern- ment upon Canadian farm produoe ej(fiorted into that country T" , y,,,,,.^.,, j.ji; j ■ ^ The following letter was Bent by H6n. M. JoLY, the " Liberal " Premier of Quebec, and himself a practical farmer to that Committee : ,^e^:tv i*>hwi a /i^,* • . , . . !... t.i:; ,;: Qpbjbjo^ March 24th, 187«; ' ' r, G. ' Y. dridn, M. P., Chairman Agr'l Com. My Dear Doctor, — I only received to- day a printed form of questions from your Committee, in the labours of which t take a deep interest, and hasten to send yon my answers. I am afraid they are rather lengthy, but I must acknowledge that I feel some satisfaction in bemg allowed to give my views on the subject, however little weight they may carry. t3!t4^. .tlJiitt , It is a sort of a protest against the ao- ousation of inconsistency which has been brought against me daring this Session in the House of Commons and in the Press, for having given up the main plank of the platform of our Parti National. We claim- ed, above all things, a National Commer- cial Policy. My friends have been twitted with having given it up, and I was brought in as the leader of the Parti National, but I have not given it up. If I remember correctly, you helped me in 1873 to obtain the exemption of duty for the beet-root sugar manufacture, and I hope you will approve my views on th» subject. ifi«J aiqiuia I remain, my dear Doctor, iT, ^^ j ^ H. G. JOLY, ... M. Jolt's replies to the Conuuittee's. questions were as follows : ..xi) , Q. Is it in the interest of the Dominion y I '•'•' ^''f 73 tiukt we ahonld oontinae to admit Ameriosn produce free, while Canadian prodaoe ex- ported over the border hM so heavy • t«z levied on it? " ' " •■'•■*■■• •'■■' A. No, it ia against the interest of Cana- da. I humbly think we should not admit anjrthing free of duty except the raw ma- terial required for our manufactures. Q. What duties, if any, would you im- pose on flour and various grains and other foreign farm products; or what guiding rule as to such impositions of duties would yop advise? A. I would respectfully recommend to lay aside all abstract theories, and to adopt no other rule but that of our own interest Q. Wkat effect has free admirision of In- dian com on price of coarse grains in your section of cnjintry ? A. We are not muoh aifecfced in our part of the country, because unfortunately we do not produce much more than is re- quired to supply our own wants ; but it appears to me that wherever the farmer pioduces more than he requires for his own use, and has a surplus for sale, he must suf- fer by the competition, it is true the pur- chasers, among whom the manufacturers and the workmen ought to count for a very large proportion, may buy a little cheaper than the farmer, but as a natural conse- quence, they will have to sell their goods cheaper to the farmer, whose purchasing powers are diminished. It is not by cheap- ening everything we can hope to attain na- tional wealth. The dearer we pay, the better for us, provided our paying power keeps pace with the increase of price. Ask a workman which of the two he pre- fers—flour at $4.50 a barrel and no work, or flour at $6 and plenty of work. Farming and industry are a good strong team when they are driven together. Divide them and you have a one-horse concern, or rather two that will not do anything like the work of a good strong double team. Q. Do you advise legislation with a view to establishinsr and ppmoting in Canada, the cultivation of sugar-beet, and the man- ufacture of sugar therefrom ; also cultiva- tion 6f' tobacco and flax ? And what legis- lation '%oald bi^t conduce to the end in view T A. The House of Commons In 1873 ez> pressed itself in favour of exemption frbiii duties for a certain number of years of the beet-root BUgarmanufaotnred in Canadia. I think nothing could be more effloaoioaa fdf promoting that industry. True that, so far, it has not taken root in the country, but strenuous efforts are made to introduce it. The difficulties are great, greater even than in France, Belgium and Germany, but I trust they will be overcome, and rely es- pecially on that exemption from duties aa the greatest encouragement that can be given. As regards tobacco, the tax on Can- adian grown tobacco yields but a very small revenue, while it hinders the cultivation. It ought to be abolished and the tax on im- ported tobacco increased. We can produce very good tobacco in Canada. I see no rea- son why ours should be inferior to the Con- necticut or Kentucky. All we want is ex- perience, which can only be acquired by practice, and no one will grow tobaooo oiv a large scale with the present tax. As for flax, its cultivation will never be profitable without linen factories, and those who have a practical knowledge of the sub- ject know how difficult it is to work profit- ably a linen factory in Canada under pre- sent circumstances. .1 11' J Q. Do many of the sons and daughters of farmers in your locality, whose taste or physical capacity lead them to desire < bher employment than farming, seek employ- ment in the United States ? If so, what remedy would you advise ? A. A great number of people leave our part of the country every year for the fac- tories in the States, and will continue to do so as long as we cannot give tlieui work. Of course our market is too limited to em- ploy them all ; but, limited as it ia, we could employ a good many more than we do if we kept our market to ourselves, which we ought to do, since the United States refuse to open their market to ns. Q. Does the free importation of Ameri- can flour, without reciprocity, put you at a disadvantage as compared with Ameri- can competitors ? And if so, state rea- sons. A. I think' those who have grain for sal* must feel it seriously. 74 Q. HH.ve yoa foam} grinding in bond •onrenient and praotiuftble and fair to all partiea oonoemed, and would you recom- mend, it in ease of the imposition of a duty on foreigp whaat ? , *^ ■'■ ..mill, II >;,, ■^ **•.,:•'! VllMlih'i .111. 1.1 ■,..,t.,/,r,M , Q. Aa an ad valorem dnty of 20 per ««nt impoaed in the Uuited Stated on flour •gainat the fixed specific duty of 20 per eeufe per bushel on wheat, generally oper- ates aa a disoriminatory tariff against the Canadian miller, would the establishment of discriminatory duties by the Parliament of Canada, in your opinion, be advisable 1 A. Yea. Q. Do yon think the admission of Ameri- can horned cattle, homes and sheep into Canadian markets at a 10 per cent duty, while the United States impose a 20 per cent dnty on similar andmuls sent from Canada, acts injuriously on Canadian far mers? And would you recommend a aimilar duty to ihat imposed by the United States ? A. Yes •■""■■ ■ '• " • - ■ Q. Can the Canadian farmer raise pro- fitably all the grain required to fatten his stock, or will it pay him better to buy In- dian com ♦ A. With a good system of farming we ought to produce enough to fatten our cat- tle. Q. What articles produced on the farm require a home market for their sale ? A. All bulky articles. Q. What changes, if any, are required in legislation to make agricult are a more desirable and profitable occupation for the people ? A. Give up all abstraKst notions and «tudy the real interest of the faimer and manufacturer ; they ought to go togetiier. Ihb experience of the famnen of Can- ada, aa given in these and many other narratives, of which space forbids the publication, is that of the manufac- turers, viz., that the one-sided system is not a fair shake. The farmers and mavufaotureM of England are beginning to make the same discovery. Already a formidable movement in fa>Tonr of ro- ciproeal tariffii has grown up there, and the press, though iatensely Free Trade, admits that the movement is likely to flourish. Sheffield finds American axes and cutlery in England, while she is un- able to enter the United States, and so on in alraosi every branch of trade, even to calicos and cottons. Fninoe an4. Belgium are also vigorous and success- ful competitors. The experience of Germany is also against the one-aided system. The Imperial speech from the throne at the opening of the German Parliament, on the 30th October, 1876, was thus summarised in the cable de« spatches, published in the Canadian papers the day after : " The Lnpettul " speech mentions the general depres- ' ' sion of trade and industry in Ger- " many and throughout the world, and ' ' states that the object of the Govem- " ment's commercial policy will be the "protection of German industry from * ' the prejudicial effects of one sided ciis- ' ' toms regulations in other countries, " This object wiU be kept speci- " ally in view in the impending nego- " tiations for the renewal of commer- " cial treaties." In April last Bismarck resolved to dismiss certain of the Fed- eral Ministers who, although their Free Trade experience was by no means a happy one, yet clung to the theory with a fanaticism worthy of certain Canadian statesmen. The London Staiuiard thus summarised his reasons in his own words : " I have given Free Trade a ' ' fair trial, and it does not seem to have " benefitted the country, commercially, ' " industrially, or financially. I am " overwhelmed with .lamentations re- " specting the decHne of trade and the ' ' decay of manufacturing enterprise, " and with assurances — from people for " whose judgment in auoh maittem I en- " tertain the highest respeet — that par- " tial and moderate Protection will rem- ' ' edy these evils. Therefore I also pro- ' ' pose to give Protection a chance of " ameliorating ib^ jpondi^QQ* of tho 7 *'^.Vi k , w " manufacturing and operativt) claaaes, ** and of lightening the load which the " budget unquestionably lays upon the " ahouldero of the nation. As certain " of the Ministers with whom I have " hitherto worked on my former plat- " form will not range thomselves by ray " side on my new platform, I must rid " myself of them, and get others in " their place, who will carry out my ** resolves." WHO PATS TH» DUW 1 In hope of bothering the fanner in his study of the one-sided system, the ultra Free Traders in the Cabinet and its press maintain (although it ia pretty certain they don't belipve it) that the American consumer pays the difference between the two +'»vitl'3. But this is American authority on that subject. On the 23rd July, 1868, the Collector of Customs at Oswego wrote to the TresMury Depart- ment : — "The effect of the abrogation of the Re- oiprocity Treaty, in my opinion, has been the addition of several millions of dollars to the Uuited States revenue at the expense of our Canadian friends. * * * As it now is, the import duty is paid by flie Canadian producer or manufacturer, and not by the American consumer. Any re- daction in the rate of duties on impor- tations from Canada would benefit them just as much, and would not lower the market value here." '" -'"'.*''''• The Collector at Buffalo writes, under date of Dec. 18, 1868 :', " The termination of the Treaty of Reci- procity between the United States and the Canadian Provinces, and the subsequent imposition of duties under the tariff enact- ments on articles of importation, has been a source of large revenue to the United States Oovetnment, the burden of which has been borne by the foreign producer or manufacturer ; and any abatement or re- duction of duties would, of course, redound to the advantage of such producer or man- nf aoturer, and would not tend to reduce the value of the articles imported into this market." ,, . , Under data of December 28th, 1866, the United States Consul at Clifton wrote to the Treasury Department : ,, " The amount of exports, with the ex- ception of lumber, to the United States, can have little effect upon the markets of the latter country, and the result is ihat the duty paid on such exports is borne wholly by the producers, who, in receiving the beneflts of the markets of the country, are thereby compelled to bear a portion of the burden of oontribating to the suppert of its institutions." • iVSft ^\' "In this way," says an American writer on the trade question, " the peo- " pie of the Dominion annually con- *' tribute out of their own pockets from ' ' eight to ten millions of dollars to- " wards defraying onr national ex- " penses." The other day the Toronto Olube, not in its editorial columns or tariff notes, for that would have been heresy, but in its honester commercial report proved this of the wool trade ; and every farmer who lives or trades on the frontier or who has any acquaint- ance with the subject, knows that this is relatively true also of every agricul- tural product — the American duty is paid by the Canadian whose price is docked of the amount of the duty jier bushel or otherwise. "• "* •' "' ''* QBITBRAL OBSBRVATION3. Protection has been so thoroughly discussed in the press and country of late that it is not necessary tj enter upon the great subject at length here. In the admirable pamphlet written by Mr. R. W. Phipps, the arguments on both sides are discussed with singular clearness and ability. The Chicap- Journal of Commerce eloquently says : " The history of all the past shows that ' ' all the strong and great, thrifty and " influential, progressive and successful " nations have been precisely those " which have always carefully and jeal- " 6Usly guarded their own interests, and " perse veringly promoted and encour- w aged, and ahielded their dtlMni in all their induitrial enterpriaea. Every Guvornment owes thia to ita people- to ita maiiufooturers iiu less than to its fariueri — to the man who biiilda a factory aa to the man who htiilds a bam. He who bows a fluid and htt who converta raw materiala into fiiiiahed products equally re- quires the firm baaia of the iuatitutions and the lawa of their common country for the aucceaaful prosecution of their aeveral employ menta. D u ties on imports conatitute the only effectual form in which adequate Protection can be given to the home manufacturer ; and thia form by ita reflex action ripena into Pro- tection for the farmer, the tranaporter, the merchant and the prof easional man. All clasaes gradually partake of the benefit of a protective tariff. The bene- ficial influences are more widely and strongly felt the longer the system is continued in full force. Thia uniform eflect relievea it from the charge of being claaa legislation, and raises it to the dignity of means for promoting the general welfare, thus bringint; it fully mthin the aphere of obligation on the part of Qovemmant to ita people. " Protection and Free Trade, which are convertible terms for high dutiea and low dutiea, are, in their last analysis, only diuerent forms of Protection, having reference to different partial to be bene- fitted. Protection or high duties means protection for our lutme manu- f actui^ers against the ruinous encroach- ments and over-mastering competition of manufacturers in other and distant landa. Free Trade or low dutiea means protection for foreign manufacturera against the rivab^ of our native manu- facturera in the latter'a domestic market. No matter how a tariff may be framed, the result must be protection to our own people, or else to the people of other countries. If the interests of tke former *«• preferred, tbe tariff will b« imbued "with protective principles; if the in- " terests of the latter are consulted, then ** the tariff will be imbued with Free " Trado principles. This is unavoida>)le. " Now, why stiould a Qovemnient refuse " or neglect to make the industrial welfare " and advantage of its own citizens the " pai'amount consideration ? Why should " it belittle or retard the well boingof the " citizen to enlarge 6r advance thu well- " being of the alien ? Why should it not " provide andenforce such a tariti'of i^ro- " teotive duties as will secure our home ' ' markets against the desperate and di .as- " trous Hoodings of foreign competition ! " Oan anybody give a rensonablu def^.mse "of discrimination in favour of strangers " and aliens, who have no personal stake " in ttie prosperity of our country, who " pay no taxes to support its Govem- " ment, who are not amenable to ita " enactments nor to the process of its ' ' courts, who do not defend it against in- " vasiou, and who are in everyway beyond " ita jurisdiction ? It seems preposterous " to legislate against the industrial in- " tereata of our own people ; yet this ia ' 'exactly what the Free Traders demand ; " and they are never so well satisfied as " when benefits and privileges are oaken " away by unprotective tariff legislation " from our own citizens to confer thorn ' ' upon foreigners. For as much as " somebody must be protected — either " the citizen or the foreigner — common ' ' prudence no less than wise statesman- " ship suggests that Protection should " be accorded to the man at home, not " to the stranger abroad." In this country we have reached a crisis when we must either protect our own people and their industries or fall a prey to the Americans, who are rapidly killing off Canadian manufactures and emptying our country of ita mechanics, to the great loaa and detriment of the revenue and the general resources. Sir John Maodonald proposes a National Policy of Protection. Mr, Maokenzib, arguing that because Free Trade pre- 77 ^lOlt in Great BriUin it mtut be good i on a policy of " lettiiif thing! dnft for us, ignores the teaching of hittory That u the iMoe. It is a vital on*, and the bitter experience of the paat | worthy of the motteameit oon*ideration Ave y«**t, and ttakea hit politioal fti»ure I of the people. ; j ^\i^\\jjJ hfwif.iifitt jtoiU >«>iff»'f»fti(i offl itf >iii't'iiif n ' "id ,)K\'rt Ji« iij iin «i ^arHi'lU''^ '/ill' JnoHvtii u/O .ii'ir.'n ,,iiij • .^fl*/ jiiJ Unr. ^j,(i„ i Uiti«iJ#/ kwI* .vJ' .tU h- ri-ii'.'in jj.«Hi'Va» T. eM..MW •i.iU,-. ..A •''"I ,1 II ,w .. nr».-i..'l\tJuo').u..i,' .w.' oiltf .)A b.i* ,«)^miU K. ni.jH sK.n.li ,*(,l,. Mill ' "«'* "i •iUi"J:'<;t""f"' r"U-ti..-iin J.:"^U, i.l' ^vBil lUiU ■>v» KlU' "t IrfiWh^fr^jit^ '•"" "i» ! ,-, w;i eii'flj'^ «iH .vn<.'l i:-uV,/i ,,;t 9^111(1 knu-i ' •)vil .tii«'. ' 'trft !u o"m1i I Ji.Mt. hilfi ,.+Ui'n Im;c ..,u I'll ■%«((r i.ni ii; yjioa (■■'H'V.;! nt' lli P'm, i orfu, n;// I. oiiJ V. rf<»!is'«| oif.i ■« Jiliiiiifi ;i-;ii ii' - /ni"; ii:tb l"jii1« H'l i; •>( .'H K' 'l-l-xlT .^llf.IMll'il'l-t ilJ.!'!-! 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V 'jf'iijitoo') j ivi'j tu'i >*iil h .ftmafl li>w iii4s I •ilaad^tjtm lii* ''il; «'> li-.^isM-o-i ' t>t -Jfun .j-js I i-no.Ki .■tinousH rsmn yi; i:/->o «(Ii fulfl f.>f?rJo,y Y,i«1'"''"«f*i'.'' ^<' f*' iv.iiiq h«» ' i iiji .n^fuM' ■ -^iilt 'Cji'Sij •{■iti.D/Mii VU'VS .'■,(« ir«H'>*i rfinji V!»«M ,*.: H;T(ni..(7iir) ^i'^KiKiqean j jkuki w* >rf ijio.i To wo».Jf>«i.*fJo l^iRUuiii v'jov uuJ Jit «Q^it>tt» ■ tnoiff^aeiuto r v({ i>oin««|ino!DiMt .'tosjq aiu:^ fs '*.i\v)U (f^ttitii ^ivjhl '■ >o vi: ii>^ >h,(.>fp:M (r WORDS FROM AN OLD REFORMER. '4 The following is an extract from the address of Mr. Hay, the National Policy Candidate in Centre Toronto. Mr. Hay is the largest furniture manufacturer in Can- ada, and was for forty yefrs identified with the Reform Party. His words carry weight : — In years past, as most of you are aware, I was associated with the Reform party in this Province. I supported that party because I believed that in carrying out the professions then made its leaders would Eromote the welfare of the country. I ave left it because I have found those leaders unfair, ful to their professions in every importuiat respect — especially in Ll.eir extravagant and wasteful manage- ment of the public funds — and be- cause I am well satisfied that the com- mercial policy to which they are now pledged will, if persisted in, prove ruinous to our best interests and destroy the future of Canada. I have adopted the principles of, and join- ed hands with, the Opposition, because I am at one with its leaders on the vital question of a national policy, and because the experience of the last five years has con- vinced me that, under their rule, we may ex- pect far wiser statesmanship and a greater prosperity than we can hope for, from the men now in power. So long as the present unfair and one-sided tariff relations with the United States subsist, no Canadian industries can tlauriah, exposed as they are to rufous competition whenever it may suit the Americans to make our country a slaughter market ; while we, through their prohibitory tariff, are denied the opportunity of even Ifgi'imate trade v.-lLh hem. No busineis man, be he farmer, manufacturer, or other employer of labour, can fl^.u irb "'^'le the country is distressed And when ^he employer suffers, the men whom he en\- ftluys, and the community in which the/ ive suffer also. Under our present ayster.i I am well assured that our con- dition cannot improve, and that the country must become poorer and every industry more unprofitable, and that, a further contraction of business must take place, aooompaniod by a ooDsequent reduction in the number of those employed and the wages they receive. Our present ruieis are either unable or unwilling to take any actiou to remedy this disastrous state of things, and at the same time are increasing enormously our annual expenditure, so that we shall have to face a deficit this year equal at least to those of the two previous. Five years more of a like management of our affairs will bankrupt our national cnedit, and most seriously prejudice the position of the people individually. These convictions are not singular with me, but are held bf many \'ho have heretofore acted with the Reform party, and who join with me in thinking that the welfare of the coun- try is more to be desired than the promotion of party interests. Under these circumstances, then, I may surely feel encouraged m seeking to promote so far as I may, such an alteration in our commercial policy as shall secure the ex* tension and prosperity of our Canadian in- dustries of every kind, agricultural, mining and manufacturing, rather than their con- traction and decay. J am also strongly in favour of a most thorough system of retrenchment and economy in the public expenditure. Unless this is done we can in no wise remedy the evil caused by vbe extravagant course puv- sued during the last four years. The pre- sent Government, although pledged to economy and retrenchment, has largely increased the cost of every branch of the public service and added enormously to the national debt, and this too in tht; face of a waning revenue and a general dis- tress. I shall, therefore, if elected, en- deavour to bring about a substantial reduc- tion in the cost of governing the country, w lich at present I hold to be wholly out of proportion to our means, feeling assured that under a prudent system of economy, and with a wise commercial policy, our present unfortunate position may be entirely reversed. Further than this, 1 am prepared, in ac- cordance with the principles I have always professed, to resist to the nttermob 4 any attempt tc encroacli on the well estabUsh- ed principles of Parliamentary control aud responsible Government, as any snob action strikes at the very basis of oar constitution. 7d SEE THE LIST 07 FARMS FOR SALE IN THE WEEKLY MAIL Partf eti WUhiiig to Sein Advertise Tkere- Parties Wishing to Buy, Kead Tbere. Advertisements of Forms for Sale are inserted in the WEEKLY MA IL, 20 words for 50c. each inHertion ; ewh additional word 2c. Adverti»enient8 of Farms for Sale are inserted in the DAILY MAIL, 20 woids for 26c. each insertion ; each •idditional word l^cts. Adverti8en:;ent8 of Live 8tocl(, Auction Sales of Stock Implements, etc. Seed tor Bale, Exhibitions, etc., in- serted at the same rates. Address MAIIi, TcBomo. DO YOU WANT TO BUY A FARM