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 6 
 
A WARNING 
 
 TO 
 
 CAPITALISTS. RAILWAY BROKERS. 
 
 AND 
 
 INVESTORS IN CANADIAN RAILWAY SECURITIES. 
 
 THE GREAT SOUTHERN. 
 
 OR; 
 
 f/ \\ 
 
 §upumA §ttmt §ivm fmltrAj;. 
 
 o.^x:«xix>oza'x.^i 
 
 railfTBD BY THOMAS MISSENOEB, CArTHNKSB STRUT. 
 
 1860. 
 
i 
 
 1^ 
 
5 
 
 I 
 
 DIMU ii nT ms lUlWIIYI 
 
 To Capitalists, Railway Brokers & Investors in Canadian >}eoaritie«. 
 
 (iKNTLi-MKN :— A Hflieino lor the construction ol" another inde- 
 pendent lino of Knilwny, tl)rou<,rii wiiat is culled the Niagara 
 I'oninwiilu oi' Cuiiadii. Lclwirn (in; Niagara und Detroit Rivera, 
 ^s•ill no di)uli( In. sJiDi-liy laid Jieloro yon, U'* adbrdini; convenient 
 ineanH I'ur pidiitaljie in\o>tniciit, an<i my ulject, in tlius uddress- 
 ing you. is loHiu-o yon if possible from loss, and ('aniida from 
 the nhame and dixifi-aec, which your bein^' induced, without a 
 knowled.LCc «>(llio lads, \„ cnibalk in this huge imposition, must 
 necessarily involve. 
 
 From the oxperiencc you liave had f)f the value of Canadian 
 Kaihvay inveslmeMi — in tliefJiand Tiunk— the IJreut WeHtern 
 —the lUitl'alo and Lak.- Huron—tiie Ontairo and Oweu Sound, 
 «nd other Kaihvuys, it mi;,dit be inferred that no further caution 
 was nee<ied, to guard you against being again imposed upon by 
 the promoters of similar enteri>rise.s. Jiut, beim,' convinced, 
 from wlint 1 have seen ol'the parlicK eonnectcfl witii i\\'- Niaga- 
 ra and Detroit Wivers Railway, the Road in .piehtioii, that thoy 
 will Nlop at no means, however disroputable, to aeeiimpliHh their 
 ends, ! lie! it necessary to lay befon- you a short history of thiH 
 Jtailway iiriijeet,so that you 'may, from an understanding of the 
 subject, be able to judge of tiie safety of investing, for your- 
 eelvcH or others, who may intrust you with their means for this 
 purpose, in such a". undertaUin-- especiallv while under the con- 
 trol and management of the present direction, and I ' pro- 
 ceed as brii'lly as possii)le to do so: 
 
 An Act was passed in the year 1S47, incorporating a Co, my 
 to build a Railway between Port Dover, on Lake ?:rie, and the 
 Town of Woodstock, on the Great Western RaiIwav,to bo called 
 the Woodstock and [,ake Krie Railwav and Harbor Company. 
 It was soon found, however, by the ('orporators, that no one 
 could bo induccil to invest in a Rciicme so wild and visionary, 
 and t ho (^barter, consequently, lay dormant, until the Session of 
 Parliament of 1852-'53, when a siipplimentary Act was sought 
 for and obtained, extending the line from Simcoo or Dover, in 
 the County of Norfolk, to Dunnville in the Countv of Haldimand. 
 
 i\ 
 
 y 
 
^ NIAGARA 4 DETROIT RIVERS RAILWAT. 
 
 Thisextonsion, it WAS sunpoBed, would ftflfl ♦««!,» i 
 •nterpriso.andnfcwspoculativei^rfi!,/ **? ^°® value of tho 
 immediately subBcribo'dlor share'TJo thn ?"'' ''^"r^Voodetock, 
 being the whole capital o? the Com n„,v T""^ ""^ «1.000,000 
 tion* Under the pVotonco now f?L"?''r''"'"«^ '""«''«o' 
 .ubscribcd by ro«p'onsibb%rtk; to Mnnl" •'* r"" "" *'""'^''« 
 proposed line, wcVe ind.Ho.lttiko?., .?'''''" '''*'''• "'°»/f the 
 the extent of 8580,000. .thi wmk «„«•'""', " '^"^ ""< »<» 
 to the late Mr. Sunuicl Zi n'non, nn IV "''"'odratoly aaer let 
 Fall of 1854, when I o A Si . I uS w^:.^'"'','' '^"P '^ »•>• 
 hausted. and the work waa ti;j;rlb;;ti;h rblTJoned '' "" *'' 
 
 H^KMh^SiiirKS?;;;!;?^^^^ by m. 
 
 Connmittco of the House of Al«eml.Iv V,"" ''""^> ^"'"""^ « Select 
 ' 0128,000 only was done \fhTirtS 'f * '""''' ^" *''« ^'"'"^ of 
 «348.000ona^-countof2s m*^ t^^r^r '«[,.'"' '•°'^^'''«'* 
 m evidence, that, instead of/.;«^ //X hi h'Ic .o ^ "'"""^ ^''"®' 
 existing, all that was hold was I nrplvn 1 ' ." ''"'^" amount, 
 rectors, and, that not morr/CVr^''' *'^ ^""''■'>' »''« Di- 
 and only 81,100 were paid on ho x.T?? 7° J?!"^' ^^ e«ch, 
 •1,000,000. Finding, ,fow ?kut it ^^'^'Vl^-^^'-ibed capital of 
 another extension of the i, e to li ^ i. T'^'-V *° P''°<^»'-e 
 again sought for, and ibtn ned f.Sm P .rli"'""' V'^ ^''•«''"^*>«» 
 tensions to the Village of CI Ion on l,„ ^- """'"k.'" ^^^^> ««■ 
 East, and to the Village o/sTLmas on tl"*^"w ^'^«'*' ^^ the 
 ■arae year, an Act was pLscd nrnl. » ''° Y®**' «"d' '" the 
 and St' Thomas Rail way -thu; ZS^'H"^ l^f Amherstburg 
 cation complete between the NiZ^„^' ^i^^*""'" '''' «<>'^^ 
 affording, besides, n rrospcct to S M.r"'*-^',^''.'"^ ^i^-^". «nd 
 wmetbi^g out of 'theiHnSn!ent •^""'^•'P«''t'«» o^ realitiag 
 
 Mr. Zimmerman, app^i^dr be^hrSlvSr' '"^"S^' ^^°»' 
 
 wiJLTtJf rondUion'^uSed'orfi ^'^L^^^^"- o^ «800,000. 
 between Woodsto rand Pon l)ovoro;."^ L-\°''i«'""' "«<i 
 Municipal funds had been equandereSlZ «v',«'' -^^ ^^^^'^^^ 
 ing considered of any value WhnetM«r.„ ®* «"."on8 only be- 
 on through the agoucyTkr Ss 0'RoF^'''''u"u^.*« «*"'"« 
 Zimmerman, Mr. Isaac Buchanan InSof^'- <»" behalf of Mr 
 em Railway thinking it would be ?o? h« w '" ^^^ ?'"*'*' W-*" 
 
 K^vrrth£e\rnS^^^^ 
 
 to purchase out the SZ^i g^SWe ^^^K^aS!! 
 
■Jue of the 
 ^Voodfifock, 
 « 1,000,000, 
 d its dlreo- 
 iUbona/ide 
 . alon^r the 
 10 road, to 
 y after let 
 t up to the 
 » bo all ex- 
 
 ■ed by Mr. 
 a Select 
 
 value of 
 received 
 
 nmo time, 
 ' amount, 
 ^' the Di. 
 by each, 
 capital of 
 ' procure 
 Directors 
 1855, ex- 
 f. on the 
 
 d, in the 
 erHtburg 
 omniUDi- 
 •era, and 
 'ealizing 
 
 e, from 
 ^ith the 
 tine for 
 
 whom, 
 
 }00,000, 
 
 1 road, 
 580,000 
 nly be- 
 « Koincr 
 of Mr 
 ;Weet. 
 t Com- 
 lis Co- 
 Board, 
 skand 
 
 NIAGARA & DETROIT RIVERS RAILWAY 6 
 
 Luke Erie Board, and, thuB, secure the charier, as extended, for 
 the Great Western. This ho effected, throuch the instrumental- 
 Ity of the Manager of the Company, Mr. Henry DeBluquiero, 
 who accepted a "direct bribe of one hundred thousand dollars, 
 from Ml'. Buchanan, for this service." 
 
 In this connexion, your attention is Invited to a Report of a 
 ■elect Committee of the House of Assembly of 1867, on the sub- 
 let of this Railway, hereto appended. The Chairman, Mr. 
 Foley, and one of the meiiibers of that Committee, Mr. Christie, 
 are members of the Board of Directors of the Niagara and De- 
 troit Rivers Railway— tlie tbrmer i.s its salaried Vice President 
 and Manager, and it is worthy of remark, that, notwithstanding, 
 their unsparing denunciations of the parties, whose conduct w 
 the subject of that report, and for which Messrs. Foley and 
 Christie would have them criminally prosecuted, they have, 
 nevertheless, been the associates of those gentltraen, since the 
 latter assumed the management of the present projected road, 
 and are, now, their steady supporters in all their very disrepute 
 able proceedings. It was through Mr. Buchanan that Mr. Foley 
 first obtained his position as Director in the Board. Messrs. 
 Van Voorhiss and Di'Blaquiero are promised a sub-contract of 
 thirty miles of the road, and the latter gentleman, who received, 
 fVom Mr. Buchanan, the 8100,000, already alluded to, it will be 
 seen, in the same evidence, was a conspicuous and active parti- 
 ran of Mr. Foley's, at the St. Thomas meeting, for the election 
 of Directors. Mr. Smart, who was the Secretary of the Wood- 
 stock and Lake Erie Company, when those acts, characterised 
 by Mr. Foley, in that report, as "iniquitous," "fraudulent," 
 " outrageous offences against justice and morality," " by accora- 
 
 Slices in guilt," &c., were perpetrated, is the Secretary of tha 
 ompanj', of which Mr. Foley is chief manager; andMr.Stre 
 also mentioned in that report, as one of Mr. "Buchanan's Direc. 
 ors, is the Chief Engineer of the road. No comment is deemed 
 to bo necessary on these facts. 
 
 Turning now, to a continuation of the narrative: Mr. Bu- 
 chanan, as has been shown, having secured the control of the 
 Woodstock and Lake Erie Road felt it necessary to get posses- 
 sion of the charter of the Amher8*>iurg and St. Thomas Road, 
 also, in order to place himself in a position of offering the whole 
 line, between Amherstburg on the Detroit, and the Suspension 
 Bridge on the Niagara Rivers, to the Great Western. Mr. Zim- 
 merman, also, entered the field, as a competitor for this charter, 
 and now, commenced a life and death struggle, (which it is but 
 fair to say was first entered into by Mr. Buchanan, solely in tbo 
 interest of the Great Western) between those two gentlemen, 
 and their several partisans and expectants, for the coveted prise 
 It appears, that when the stock books of the Amherstburg and 
 
•"»»■■ Tll..,,„H Jiuilwav C-MUIUIV u .. 
 
 f H>urc.. «■«, ,,i,u,..rj„ ." ' 2^"':;"'^•^^''"^■""•""»w 
 'K l)}m, M,„| ,1... ,,!,,,;,., ,,;,. \' • '"■. 'U'i...-;H.Hl--,|.us ailbi-a. 
 
 todo«o,ororr.,M..jJuin.r V; ' """^«'" «'<' i.'ivantaKc 
 
 ,J'i'. iiu«-liaimi.'s lUu;i ,.s.i. ' "''■■r\vai-,lri a( upt.-d bv 
 
 «n(l T l.acJ i.ool.jo,., (no'L; , ' •'■'■'•^ 
 
 '7' -mui ih,' HtocK-. a((.. i,! V ,;'':, ^'r'''-^' '"" '*"• "'^ "'"- 
 
 ll'O Z.,n„.o,-,nan party. Ha i roc hu,,' ^^ *'^'.?" <'""acl«.- 
 possossod no valid ,v i, 1. ,,, '■'•''''" I'*''"'' «'iUTiption 
 bookMrZimnuMMnan. ,' M '"'^ "'«"'->. <>|H-n..Ml a took 
 
 •«<>n WHS, also. disp„„.,i ,„ .. i . ' ' ■''^■"•^. Tin.s ^ubsc.,•ip. 
 I><^«.J often ,M.r clnt, in/ I,/,,'' ,,'';• '^"','';V'"" l'='-<y-,lK.d?. 
 tlie Hnidcs doHiirnaiod l.v ■ " • ''*!"' ""■'•<"", into ono of 
 '•;!;'/?od, into tbi'ziml'i,, t • Inir';;'"' '^''•-•^"'•^ '•-'. "3 w^ 
 •titution-Wallnco .iiH.u.soori, '';''' *!" """"•"'•|'"nU.d in- 
 
 (f:"«la"d) Hoard of e" ,,• 'f,,'|V;''''y^;i'''' ''.V the London 
 "80, oloctod a Hoard w ,/ ldl u' ^V^T'''''"-''''' ''''^1,,^., 
 
 pound... on bo, ;, I ZiZ'iTV'''''' '"""''•'^•' """- 
 in this endoHvo,.. M . 'l?' 1 .'"^'^•'" ^" "''"^f '■•'"'^ 'nm ifpossible 
 J<* London Board op i^y';:^^-f"r''''T^-''''' '" '"^ "''^^'^n^ 
 Zimmerman, by whid, f . hnJ"'. '"*? '"'tween bi.n ami 
 
 Jjould have the corlu'^^'^-M Sin^S P -Kr;'' ^^^,^>^''-. 
 '^r w),ifh 1,0 Avas (o repay Buc mw/ '''^'*' J- *'•""' tho j.rofits 
 
VIAliAKA \ DKI'lloiT IMVKKs 1{AI|.\T\Y 7 
 
 tJi»-'-u>?>i in t<in«<'qm'iM-(> i.f /iiiiiru'rinurrM dcufh the enauiucr 
 -prihL' SUortly ufii-r Mr. Hm hniiat.'t return to I'unuda, ho l)t< 
 fatii.- iiwHii' thill till' liipiiril <•!••( icil liy liini. ami of which he wimi 
 lh«> I'lrRiiliMil. «<>(•<• clMii'li-iriiiily liiniiii)f^ an jini.iliraniiilion witli 
 tho WoudHtdi-k iin<l l,!ikc Kiic itoai-d. atriiin-t which Hcvcrul ok- 
 cciitiniis cxiHtc'i, and, in cnninivontii>M (il n hy-hi\v, |iii»Hed \0 
 the effect tiial no inoticy ^*h^•llM lie drawn tVoni tho Hank with- 
 out liis "uncliiin and order, tlicy were alf^o cndoiivorinj; to ob- 
 tain |)OH<i sviioM o1 liisciiiditioisa! deposit f>f<»:i(Hj.U(lU, nnd iiu wan 
 f'orcvd to till' a iiid in Cliamory to protect iiiniHcll', in this nint. 
 ter, riiMii liii- aclini of iii^ ('o- hirectorn, who wore elected by 
 hiniHoir And llicHc arc tiie jmrticft, who, with lew oxocptlona, 
 aro the jnonndciH of the present enterprise. 
 
 Bcfoie .Mr. Zimnurinan'M dc<eaM' an arrun/ienient wbb eoni* 
 to between that jjcriticruan and liiiehainin, that lioth Boarda 
 sihoald retire— the wiioh^ >;lmrcM and control be transferred to 
 the toriner, wnd a new Hoard < K cted. Hm, dinpHlcw and difflcuU 
 ties uriHintr with ri-pect to this arr!iiMr,>iiietil, il wua wubsequeut- 
 ly nt^reed timt the stock .should be iran.slcrrod to one Morion, u 
 (Jiwldicr. from Kintfston. a p'lilleinan who hcreallcr will be 
 found to hold a pioininent pu.siiion in ridatiuii to this 8ubjeoi.-<— 
 It WHS, hIno, a|j;ain a<;reed tiiat .Mr. ibichannn should bu releaiuM} 
 from his conditional dei)osit of >f:i<Mt,tji'(i, in the Bunk, and be re- 
 paid the .siiiuM advanced by him as before staled. Morton, who 
 thus becamo the controller of the wtock and iho ejitorprise, quaU 
 iried a new set vl' I )irector,s, holdin;^ at the wimc time, not enough 
 hona Jill'- shares lor this ])nrpose, and elected a now Bonrd, and 
 immediately on orfjani/,in>( tho i'lesident handed Buchanan n 
 ehc(monn1he Hmd< of Upper Canada i'or *20U,0U0, by which 
 luoans his account was balanceil, and no funds now ap|)eared in 
 that or any other institution to the credit of the Company. — 
 Hero, now, it will be seen, are a number of individuals esorcis- 
 jng tho functions of a Board of Directors, in the control of a^t 
 undortakinj; calculated loco", tiom thirteen to tideen uulliouf 
 of dollars, with not suflicient b tros altoj;cther existing, to qtmt 
 ii'y thorn for the |)os<ition of Directors— ^'«// ^ /i shaiCJi ecoh-^ikH 
 exactly parellel ease with that of tho individuals, who cnjoyod A 
 similar position in the Woodstock and Lake Erie Risilway ao^ 
 Harbor (.'ompany, us denounced by Messrs. Fole^- and Chi^tii» 
 in their Hoport jilivaily idluded to. 
 
 There beinrj now no funds to be ronohed by tho cr«ditor« Of 
 the Woodstocic ond Lake Kric Company, an amalgamation Of 
 tho two Koftds was eti'oetcd in February, 1868, by tho name df 
 the Great South Western, which amalgamation was oonHnmed 
 by Act of tho Legislature, tho ensuing August, when the aaine 
 of the Road whb changed to tho Niagara' and Detroit RiviBihi 
 RnHwuy. a cluinge no doubt adopted to get rid of the bad odor 
 
 
JniglU, and infroducod A Mill ]•; ' "'^'> /)i./,.,Hed it with nllT! 
 
 Andhrncchj present position Ii SS AE '''^ f«"«'*"^«'^y. 
 
 _, I J ^- J*< •"ecvrcd his objfcf ' '- 
 
 inrf Vk! kl '°^ Pominoncod n jrnmo ,. ',""♦"« """» been con- 
 
 r? "^Of the parties now contmli.)^ .1 '^'*'°"''> ^jih intondprf 
 Paying thereon, any ihiction «»• .u *. "^ *"'' ^'fio'e stock An3 
 
 th«r«on one tenth of on 'per ce.ft and H '"T"' ""^ ''•^p'siM 
 Morton, now, finding hims.^/nn ' ^ ^'"'" ^'o^^d tlio books !- 
 book, of the old A^n,hem£.;:l,;j^^f 57-'"''cd. and that th^ 
 
 ether by that 0?^ &£„ "Ceof ''" ''«'•*«" McSHJ 
 &'"''P1*'*'^« fo'-ce^rJo L heid .re^'jr^"''^'' « meet L of 
 
 tT^,, .^''•. Morton AfcBeth nAri,, k„' • ^' ® election of Direct- 
 H»U m wbioh the Act directed Th-'''^ *'"' ^«7 <><' the Town 
 J»t,Md took possessionjf th« *«H?°''':!« *° ^e hold, gotln 
 bfc'S^JK^^ •'nmediatej" ?oJlowed wLn"? ''"''-'^^ ^^^^ 
 «• -»^.- and np^^r co«re1,'ea^" EaT^^r^-^^^C!^ 
 
Way 
 
 •tion schem* 
 wifh nil hia 
 
 inrlopindent 
 1) WoodBtock 
 iiliiicM to ^et 
 iilontled for 
 tlio KosHion, 
 Jontrovorey. 
 '^if/Manager 
 
 « been con. 
 w' cunning, 
 'kes played 
 f '«'/?«• The 
 » depoHitof 
 ^'' any 811 m 
 Kribern for 
 *♦ intended 
 ' affording 
 stock, and 
 'lioh thoy 
 pnssing of 
 'icrstburg 
 ith otiiors 
 telling an 
 And tako 
 ck books, 
 dopositod 
 books. — 
 I that the 
 »ny were 
 to flub- 
 lion two 
 'ofk and 
 inmtion, 
 no time, 
 make a 
 h party 
 >th, tho 
 Bting of 
 second 
 Direct- 
 > Town 
 gotio 
 wftnkin 
 Boriba- 
 ••oatiw 
 
 J 
 
 M.\<iAHA .V I»I:TI{oIT IMVKIfS MAN. WAY U 
 
 Hnmnroiifi for tho n|tpoiiitnionl <.rilnii- own c-lmirnuin, but tin 
 MuituM McHclli piirtv.liHviiigpivviouHlvoiillHted tlut HyinpatliicH 
 of tho laboroi-8 on tho London niul I'ort Stanley lUiihvuy, wliich 
 runs through Ml, ThonuiH, by ivprostnting tiio Hiinkin Morcor 
 jmrty, nn -loNirouH only of i)iTvcnling tho work from going on, 
 wore conHccmonlly nui'li the Htron<" r, and they bo( ■» expelled 
 tho Hunkin M.mr pnity li-oni tho llall.on which occasion Mr. 
 l)eHla(|uicrt', tho gontlcinan whom Mr. Foley represented to tho 
 IFouso of AHHcnibly, m a fit Puhjoct for criminal proHocution, was 
 iiowthoconipanioniMiilactivoabottorofMr.Kuh'y.fwho.itnowap- 
 pcarH, had proJltod won.hrfiilly by tho invcNtigation of that gen- 
 tloman'H tonthn t in the niattorof tho Woodstock and Lake Krio 
 Hwindlos)— in violontly and unlawfully jirovonting tho Ifankin 
 Mcrcor party, with whom woro a majontv of tho corporatf>rH, 
 and bomi fidr HharcholdoiH, O-om oxcrcimng thoir undoubted 
 rights at tho election. Tho Morton MeHoth party, having ap- 
 pointed a chairman, set about electing J)ircetora in their inter- 
 t'Ht, and it was now Nuggosled that it would bo well to allow tho 
 ejected party tn wifnoMS tho jiroceodings, and they woro accord- 
 ingly admit to<l, but kejit huddled up together in one corner of 
 tho room, where, having' previouHly i»reparod their ballots, they 
 •luiotly dropt thorn into a hat, held in tho hands of Mr. KUiot, tho 
 as yet Kecrotary of tho C'omjjany, who declared in an undertone 
 corUin gentlemen duly elected Directors and then left. 
 
 Hero, again, it will bo soon are two sets of Directors, each 
 claiming to bo tho legal one to control tho cntoi-priso. Tho 
 Hankiii Mercer sot, on tho strength of tl-o 80,000 t^hKrea of stock 
 on which ono tenth of one per 'rent hnd been dopoMited, together 
 with about one hundred honujidf siiarcs, on which ten per cent, 
 had been paid, and tho Morton McUeth Board on tho strength 
 of tho Wallace pencil 8ub.scription, wiiicli tho same parties hud 
 previously rej)udiated, and tho Uac subscription for twelve thou- 
 wujd shares, in I ho books of tho defunct Woodstock and Lake 
 Krio Company, on which nothing was paid, together with some 
 ninety hmnjUle shares, on which ten ]>er cent had been paid— in 
 other wordK— the Itankin Mercer party had paid, in all, about 
 nino thousand dollars, while tho Morton McBeth party had ac- 
 tually paid but some nine, humhcd dollars on their stock And 
 tho latter party liavo secured the control of tho enterpriso by 
 tho most dishonest anfl disgraceful Legislation that has ever been 
 perpetrated even in Canada. 
 
 In electing tho McBeth Board, Morton, voted on both the 
 Wallace and Rae subscriptions, notwithstanding it is proved, by 
 tlio evidence appended, that no money whatever was at the 
 credit of the Company as payments on either. AH that Morton 
 presented, to qualify him M elector of tho Board, was a letter 
 
 '„ 
 
10 
 
 n t ,n o,._ ' "'" ''an c nr ir. 
 
 rosoor ,V"">- <%.■., ^>,l,vi,i,!''™ "''thirty ty,or''5 ""<''''» 
 "> ttee har "° ^^^n, ,•„ i,;„ "J?'^"y, and wliirh /^ '^^art, the 
 
 "««,ofS™? "'mngemSi *" "'o SmSp«"- Can J. 
 
 atrfSr JS^s^Sf -"'is i^^^ 
 
 ^nMut ''°"°«otion, I bfi„ , ^«c«Ption, and a 
 
 tion V^®"' contradicted J.* */^ "^ crimlnaJ ! •i^^^^'adictions 
 
 *"6 manner ;„ ^.^^^orton xoh^^ ^ "°^ « ve vn., „ ^^nce,in 
 
 ^^^'•etJv Ln *^*t day." n„H ^ "allot," and '<T ?^ ^^ys :— 
 
 "«« ^••^*-*-f agS7,;j ey and^ O^Va't/ «- 
 
 ^^'^^oppoaingcou^'^couj.e, 
 
»;H wi,/oh wi/j bo 
 
 tjounand pounds 
 "f foi- what pur. 
 
 8tren;;rth of this 
 
 ];'"fe' t'een made 
 
 *iV^;^'o'eBoa?d 
 
 ,^' «'«y Com. 
 to the effect- 
 
 'f t^n per cent 
 
 ''ng.iie stated. 
 « Pharos; J^;' 
 
 these giarinij 
 'frances,3for- 
 ;PPor Canada 
 «/;r' Smart, 
 >nim affain 
 S"'^ «ton 
 
 ••i-ospondinff 
 80 canceJiod 
 : 111 favor of 
 ''on, under 
 >re if orton 
 that trans- 
 a mere ex- 
 on» and a 
 
 ion to the 
 a^ and 
 ed, and I 
 'dictions, 
 each, ifc 
 
 [■ydirec 
 fence, in 
 
 'ecimen 
 'ence to 
 avs :-». 
 oaJiot 
 ng se- 
 'ourse, 
 tating^ 
 
 NIAGAKA k DKTHOiT lUVEKS KAILWAV 
 
 II 
 
 bhut, " I did put a ballot, into tho but, and did draw it." Again, 
 " 1 did not receive $10,649 48," then, " i do remember get- 
 ting a check hack for the $16,000 odd dollars," and again, 
 " I could not say that I received any other sum from the 
 Company about this time," and, " 1 did receive, now I rc- 
 inemocr, a check from the Company at the time, for the $98,- 
 000, before spoken of as the ia/t/?icc of the $120,000." Ho re- 
 membered getting a chock for the comparatively small sum of 
 $16,000 odd dollars, but, he could not remember, till privately 
 prompted, of getting a check for the large sum of $98,000, at 
 the same time, which did not, as will be seen, balaau*. the $120,- 
 000, as he supposed. The truth being, he got neither, but, as 
 the accounts were cooked up for the occasion, it was necessary 
 to corroborate them, and hence the prompting. He and Mc- 
 Beth proceeded to Quebec, where an interchange of checks was 
 made, at once, for the whole amount of the $120,000. And, for 
 the same reason, of cooking the ounts, you will find Mr. 
 Smart shamefully admitting, at the tioso of the evidence, that 
 the cash book was kept on a sheet of foolscap, and notwith- 
 standing the sum of $16,649 48 was expended in surveys, fitting 
 up offices, salaries, &c., running over several months, and filling 
 the four sides of the sheet, ho states : '■'■the entries on this sheet, 
 were iiot inadc as they occurred, and not until December when 
 THE FIRST ENTRY WAS MADE." And thcso aro the gentlemen, 
 now associated with Mr. Foley, the chief Manager, who expect 
 to have the handling of from thirteen to fifteen millions of dol- 
 lars of your money, by virtue of an Act of Parliament ! ! ! 
 
 The Morton-McBeth Directors, elected as before shown, at 
 once organized, and elected Mi*. McBeth, President, and Mr. 
 Foley, Vice-President, of the Company, with a salary attached 
 to the latter office, and now, in their hot haste to get the start 
 of the Eankin -Mercer party, they advertised for tenders, for tho 
 construction of the Eoad, before any survey whatever was made. 
 The extent of the clearings, grubbing, excavations embank- 
 ments, culverts, bridging, and estimates of material required 
 were not ascertained, and consequently no description of tho 
 work to be done could be given, for the information of intending 
 contractors, and the consequence of course was that parties 
 wishing to tender had nothing whatever to govern them in their 
 calculations, except their own unaided observations of tho physi- 
 cal features of the country, and but a few days wore allowed 
 them for this purpose, and this, coupled with the knowledge that 
 Morton, who elected the Board, and took an interest in the mat- 
 ter solely with a view of securing the contract for himself and 
 those standing behind him, would get tho work at his own price, 
 deterred many from tendering, who otherwise were prepared 
 to do 80, had there been any profpcct of fair competition for the 
 
wJiiVKTr : ^"° road i'h -fra "'iom the 
 
 Under Morton ' ^^>^05,000 
 
 •^'•o^vn & McDonald' "/': ' 
 
 P«r mile, same paySr'"'«3Wo ^''^00,m 
 
 Under Morton ' ^9,540,000 
 
 Under Morton ^5^^155,000 
 
 .^ork of%'S*';« /".the tondors Z'""'" «5,750,000 
 
 ««d, five h2n£^.«X« n^iiiion^l^r. ^""drertK *?« <!?»- 
 
 --«ts, why Morton ;rZr"*° ^'Wt;; 'J? ;,«^^^^ 
 
 Jhe tender of rr ^^ i"' ^^^^rred beforothn Ji" ^onipanv'fl?.?' 
 «ndwithoutL .f^^den&Co «,„ "^° *no others. ■^'*"J'S"i- 
 
 « deration, re/ectfri ^Y ^^^onaJd & Co «. 
 
 ^- '"« an e^S' ""^ ^S^e' Go*'^ ^^^-^mTn'tfoi'' *V 
 tenuer Tvitw!^*?^"^ convonienf ^^^ernment h^, .• ^^^'^ 
 
 '<»k'u-?' '?"•«"■»«. ^»?"E* VCST2 «■« '.?«> 
 

 ,000 
 000 
 
 ■93,100,500 
 
 00 
 
 •3,365,500 
 
 • *5, 750,000 
 
 ^o«rd, for a 
 'statoiaoiit 
 -« too con- 
 I'fnd, five 
 
 ^or by tho 
 assigned, 
 
 »oniougjy 
 
 • cash—a 
 «rod tho 
 
 «t con- 
 •osident 
 ''of the 
 flat the 
 rvrotk 
 3 paid. 
 e this 
 ast to 
 ivhich 
 Qown 
 
 NlAiiAUA »V DETUOIT lUVKliS U'AILWAV. I:! 
 
 llciiuui of wealth und Hlfindiiifr. liavins^ become security iVn- 
 Brown tc AIcDoiiald on several occasions, tor contracts of a sim- 
 ilar character, tiieso gentlemen, in j^iving in their tender, men- 
 tioned in connection with it, tlio names of Messrs. ^>treet and 
 Dixon, and witliout a word of considtalion with them on (he 
 subject, tho Board at once tclnjrfijilH'd Messrs. Street and Dixon, 
 enquiring if they were prepared, to become vesponBihle lor 
 JJrown & Afc Donald for, as .Mr. Street recently informed me in u 
 casual conversation I had with him at Toronto, " an enormous 
 smn, ho did not oxactij' remember how much, but far beyond what 
 he, or any ten men in the country, could secure, and he immedi- 
 ately telegraphed back in tho liegative." Here al it will bo 
 seen, by a cunning stroke of policy, on tho part of ^. Morton's 
 Board, tliis tho last tender was disposed of, and it was, "at onco," 
 as Mr. Foley also stated, " proposed that their tender should bo 
 left out of consideration," but, on secund thought it Avas sup])oa- 
 cd this would not look well, and to keep up ap])earance8, it was 
 agreed, as ho also informs us, that " another meeting of the 
 Board should be held, at which tenders should be announced to 
 bo received " — a course which may appear very well on the 
 JJooks of tho Company (if they have yet procured any beyond a 
 shoot of foolscap) to those who may hereafter bo disposed, as 
 shareholders, to enquire into tho matter, but, no such announce- 
 ment was publicly made, and, consequently, no other tenders 
 wore given in, and as Mr. Foley informs us, " tho Board, there- 
 fore had no alternative but to give tho tender to Morton, and 
 they did so," — as thus this job was completed and the disgrace- 
 ful sham brougfit to a close. 
 
 From what has now been shmvn, of tho excessive desire of tho 
 Board to guard tho interests of tho Company, by obtaining am- 
 ple security for tho fulfilment of the contract, it would ho infer- 
 red that tho security furnished by Morton, tho successful com- 
 petitor, would be of tho most unexceptionable character, but, 
 on enquiry, it is found to consist of the names of two individuals, 
 down in the City of Quebec; some six hundred miles from where 
 the contract was lot and tho work is to be done — one, Mr. Mor- 
 ton's agent for the sale of his whiskey, — the other, a Brewer, 
 neither of Avhom, it is well known, could soaro a thousand 
 pounds out of his business — and whose joint ote, a gentleman 
 engaged in basiness in that city, who is well acquainted with the 
 parties, recently informed me ho would not feel quite safe in 
 endorsing for the sum of $2,000, — and for this pretended secu- 
 rity, this very careful and considerate Board of Directors give a 
 contract, for a work of such magnitude, to a distiller who never 
 built a foot of road in his life, at so many millions of dollars 
 above what old, experienced, practical, and in every sense re- 
 liable contractors, offered for the work, and who from their well 
 
 i( 
 
 . g ihi 
 
14 
 
 McBeth Board *;? ^r "° "''^'"-^ «« that Si k '!?*'"''«' ^'"i 
 ?he enterprise fr' "^. *''« ^^^pSve CotZf-'^^ *" *««* t^« 
 
 being :^3"'««' introduced a^ B 7nto ParlTf * ^ ''^'*'«" ^^ 
 
 and deprive the p' f- \^" «« ^" tJieirSre ' fahr *''"" '» t^o 
 tainin/tSr no«;?*"'["'-*^«'-«er Board oTffi° Proceeding- 
 
 i« no donbt wmS r ''^ ?'*««''«« of Law a n5on.''*'""'^^^»«'n- 
 «ions. TheBiT^^^''^ ^'^^^'^ed adverao tSTu "•' '^^'^h thoro 
 
 always ch^ln K * ^®'''. ^^y^ of the close o?fj,'^2"''^ ^^^^^e Le- 
 
 without affordinAimo fn,"""«^'^ t'leni throuih^tL w*'^*" 
 twice pro forma and „ n ^"\««tigation. 11,^1! j „ ^''"^^ 
 pointed— the nviw! *x pommit^oe ot its Aw'L ". ^'"^ read 
 
 mittee was ♦« .,„ ■^°® ^''st movemenf Jv^n i , ^®rai tiniea 
 
 a time from \vh;„u )l t°® -^''t of amaijrAmu(;i '"S '^es- 
 
MACAKA & DKTIiolT laVKJW RAILWAY 1". 
 
 to pasrt the Committee, ii»» mattii- wliat the evidonce might 1j* 
 against it, Imt this evideiico they preterred not being made 
 piibMc, and liaving iieard hnt ji portion of the evideneo HubHe- 
 qiient to that period, all of wiutli iiad to l)e wrung, by the soli- 
 citor of the Jiankin-Mereer part\-, froi.i tiiose implicated on the 
 opposite Ride, wth the exception of that of Mr. Elliot, the Com- 
 mittoo closed its sittings, and this while there were a num- 
 ber of witnesses waiting to bo examined on the side of tho 
 Flankin-Mercer Board. And in tho iaco of tho disgraceful cha- 
 racter of the evidence appended, wrung, as 1 have said, from 
 Morton, tho elector of the Hoard, and Smart, tho Secretary of 
 the Company, the Committee at once reported in favor ot tho 
 Bill. Jt was read a third time and sent down to the Assembly, 
 where it was immediately read a first and second time pro forma, 
 and referred to the Railway Committee, which had also been 
 struck in its interest. All these proceedings, and up to the 
 passing of tho Act, occupying but a few hours of a few days. 
 
 If the conduct of the Committee of the Upper branch of tho 
 Legislature was disgracefully partizan and unjust, that of tho 
 Assembly was still more grossly so. No evidence was here 
 taken, and none allowed to be given. The chairman of the 
 Committoe, tho Honorable Mr. Cartier, simply asking, with as 
 rapid utterance as he could command—" The pleasure of the 
 Committee the preamble bo adopted — Carried" — "Tho pleasure 
 of tho Committee the first clause be adopted — Carried —"The 
 pleasure of the Committee the second clause be adopted Car- 
 ried," and so on through all the clauses of the Bill, and, in this 
 way it was forced through the Committee, without the pream- 
 ble or a single clause being read, or a single amendment made. 
 One or two attempts were made by parties to be heard in evi- 
 dence, but, Mr. Pole}', who took his seat as a member of the 
 Committee, to adjudicate on his own conduct, would not allow 
 them to be heard. Rankin, indeed, was permitted to make a 
 few remarks, it being understood, and currently reported by 
 the Morton-McBeth party, that he had arranged all diflferences 
 between them for the sum of two hundred and forty thousand 
 dollars— but no other person, not of the Committee, was allowed 
 to make a single observation. The Bill was in an hour or so 
 reported favorably to the House, where it was read a third time, 
 and passed by a large majority, with but one amendment, an 
 amendment which sta nps the character of the Legislation on the 
 measure, as of a piece with all the other proceedings connected 
 with it. Some Member casually observed, not supposing for a 
 moment that it would be carried, that the contract with Mor- 
 ton should be annulled and the work relet, and this proposition, 
 so outrageous in itself, was at once acceded to by Mr. Foley, tho 
 Vice President, and a clause to this eflPect was immediately 
 
t1 I '■''•''' "llllOIlt 
 
 ^ '"'vo said "tLo ivn ''' ^'■^^"•"^'"A'l, 
 
 '""j- "'U^I'cafoclS :, '""''^^•^^'•« wore so\L . '"^'""^ '» ^vhid, 
 !>' ^^'■tWrawin^t^.VM:!:;?''"^^- '"-^ ro ri ol l" ^» «»«h?me -. 
 
 the p„,.t of. ^ j£,'^7 »o doubt but the unanTm?^"!.'" P^«ce of 
 
' Jlon. 
 
 NIAGAKA & DETUOIT lUVERS JIAILWAY. 17 
 
 introduced in this country by the promotorH of the (Jrnnd Trunk 
 of C'linada, lius utterly corrupted our Leffislutiou. That Com- 
 pany haH always boon ablo to purchase lugishition to any extent, 
 and wo have had amonf,'8t us one Eailway Contractor, a bold 
 operator and a reputed millionairo, who boasted at a dinner 
 given by him, which cost some 85,000, that he came into Cana- 
 da, fVom the United States, with but tAvo dollars in his ])ockot, 
 and an old horse, and it is well known hero that no Bill could 
 pass our Legislature against which ho took an active part, and 
 it had only to secure his support to become law, no matter 
 what its character might be. The present project affords tho 
 moans of corruption to an enormous extent, and, as it is tho 
 only one likely to succeed, for many years to come, out of which 
 hirge fortunes can bo secured, the opportunity to effect this im- 
 portant object, at your expense, will not be thrown away, by 
 our publio men, as witness tho legislation, above detailed, on tho 
 question. 
 
 Tlio Bill, which endorses a deception on its face, for nothing 
 it seems can bo accomplished in the matter without the inter- 
 mixture of this ingredient, is intituled " An Act to consolidate 
 and amend the several Ac*;8 relating to the Niagara and Detroit 
 Ilivors Railway, both before and since the amalgamation of 
 these Companies forming that Company," while the first clause 
 recites those several Acts, and declares them one, and all " re- 
 i^ealed," and a totally new measure, which takes tho matter out 
 of the hands of the legal tribunals, constituted to adjudicate on 
 such questions, and confirms the Board, in all its disreputable 
 proceedings, is enacted. 
 
 I liave been ablo to secure, through a friend, copies of tho 
 "form of Tender" and "specification" prepared by tho Direc- 
 tors for re-letting the works. Tho form of Tender is printed, 
 hut th^ Specification is only in manuscript, and but a single copy ex- 
 ists in the office of the Company for the information of intending con- 
 tractors, and copies have to be taken by themselves if they would 
 ascertain what the Company requires. A perusal of those docu- 
 ments has led mo to a more minuto examination of tho Act in- 
 corporating tho Company than I heretofore gave it. And I find 
 that tho most important clauses, — those immediately affecting 
 tho rights and interests of the Shareholders, not otherwise con- 
 nected with tho undertaking, are of the most exceptionable 
 character— having no counterpart in any Act, hitherto passed 
 by the Canadian Legislature, incorporating Railway Companies. 
 In all other Acts a certain amc unt of subscribed capital, on which 
 ton per cent, has been paid, is required before tho Provisional 
 Directors can talce further action to organise, and the Share* 
 holders themselves are empowered to elect tho Executi''e Board 
 to manage the affairs ot tho Company. But this Act places, at 
 
 
 -**^^*t>ii^ffh I ^ 
 
18 
 
 MAGAIJA \ DKTUOIT JilVKKS (!AII.\VAV 
 
 oiiee, the whole control of tho enterprise in the hands of tho 
 parties nftnicd in it, without tliero boin^ jj Mingle share of sub- 
 Bcnbcd stock ; and totally i/rnorcs tho right of those who may 
 liccorao Simreholders, from having any voice in the soloction of 
 Directors, and, consequently tho parties thus placed in power, 
 by this new species of legiHlation, have no other interest in tho 
 matter tliaii tliat which may subserve their own personal gains, 
 a course, which the form of Tender and Specification clearly 
 indicate they arc determined to take advantage of in tho letting 
 ••1 the contract. It will bo seen from those documents that a 
 most effectual prohibition against competition for the work is 
 resorted to— indeed they show a most intense desire on tho 
 part of the enacted Directors to prevent by every means in their 
 
 power all outside contractors from competing for the work 
 
 By the form of Tender they arc required to subscribe for two 
 nulhons of dollars of stock and pay a deposit of ton per cent, 
 on one million two hundred thousand dollars at the time of con- 
 tractmg, and a further sum of ten per cent, on eight hundred 
 thousand dollars wi^hin a month after, making the whole depo- 
 sit two hundred thousand dollars. They are also required to find 
 responsible sureties for ten per cent on tho amount of tho 
 Tender, which, at Morton's contract price, would bo one 
 mdlion two hundred and ninety thoMsand dollars. They aro to 
 provide the right of way, ground for stations, furnish tho 
 rolling stock, &c., &c., the extent and number of which tho 
 Board has tho right of determining at its pleasure, before tho 
 contract is concluded. They are to pay the engineering, 
 all salaries and other expenses of the Cciapany at such rates and 
 to such extent as the Directors may choose. They are to take 
 their pay two-thirds in stock and one-third in bonds. Ten per 
 cent is to be retained on all payments, even on tho right of way, 
 station grounds and stations, rolling stock, &c. The work is 
 io be finished in a little over two years, and the whole is to be 
 executed " in strict accordance with the general specification," 
 ■which specifies nothing except the weight of the rails and the dimen- 
 sions of the ties. These conditions the Board know right well 
 no contracting firm, not in league with the Directors, would 
 thmk of er^aging to fulfil. Tho Specification too is admirably 
 got up to effect the same object. No plan of the Road is exhi- 
 bited—no specification of the work— no description of the ma- 
 terial to be employed in construction— no estimate of quantities 
 ~"o plan of a bridge even, and in fact nothing whatever is fur- 
 nished contractors on which it would be possible to base a cal- 
 culation of the cost of a single item ot tho work, while it is left 
 m the power of the Engineer to make the fortunes of fifty con- 
 tracting firms, or ruin them at his pleasure. He may make the 
 roadway wide or narrow— he may say a fifth of an acre is 
 enough, or he may require fifty acres for a station— he may 
 
 i_ 
 
KIAGAHA k bKTRoVr lUVKlJS KAILWAV 19 
 
 have na many or ns fow Htations as lio plcanos — ho may wind 
 round hills, or cut through thorn — he may select borrowing and 
 ballast pits as nigh or hh fur ofl', as ho thinks proper— ho may 
 ndopt a post and board fence, or ho may think a pino rail ono 
 Bumcient — ho may order the slopes to bo three to one, or ono 
 ond a quarter to ono — ho may make the ditches, culverts, via- 
 ducts, bridges, &c., wide or narrow, deep or shallow, high or 
 low, and of long or short spans at his option — ho may place the 
 tics close together, or liir apart — ho may require broken stono 
 or allow sand to bo unod for ballast — ho may oi-der stono where 
 none is to bo found, or allow brick to bo used for piers and 
 abutments — ho may select tubes, or girders, for bridges, and 
 adopt tho most expensive or the cheapest plans — he may sub- 
 Btituto brick for stone, iron tubes or girders — he may cover tho 
 culverts, viaducts, small bridges, &c., with wrought iron tubes, 
 or basswood tinibcr— ho may make the Engineer, Passenger, 
 Freight and Platform cars as oxponsivo or as cheap as ho 
 likes — ho may say ho requires but five, or he may insist on fifly 
 engines being provided — ho may construct as many or as fow 
 sidmgs and switches, and make them as long or short as ho 
 pleases — ho may direct as many or as fow signals, turntables, 
 tank, station and freight houses, engine stables, workshops, 
 woodhousos, &c., to bo built as suits his notion — he may build 
 them with cut stono or rough timber plank and boards, and of 
 any dimensions he chooses— ho may require any amount of ma- 
 chinery to bo provided ho pleases — he may insist on the wharfs 
 being constructed with cut stono, or ho may allow round logs 
 to be used. In fact ho can make the Eoad and everything con- 
 nected with it as expensive or as cheap as he pleases. 
 
 Tho form of Tender and Specification will of course effectu- 
 ally secure the object intended by the Directors. The character 
 of the definite requirements of the one and the indefinite condi- 
 tions of the other, will be sure to deter outsiders from touching 
 the work and leave the Directors to practice again the system 
 of check-exchanging, to accept such names as sureties, as will 
 answer their purpose, and secure the contract to the initiated at 
 a price which will enable him to enrich them all at tho expense 
 or the undertaking. 
 
 Tho Contractor pays tho salaries of tho Vice-President and 
 Manager— the Chief Engineer and staff, and the Secretary of tho 
 Company, which is composed of the Contractor himself. It 
 needs no prophet to tell tno result. 
 
 This was the course adopted by tho Grand Trunk Directory, 
 and I have no doubt but tho English proprietors of that road aro 
 by this timo fully sensible of tho egregious folly and ruinous 
 edects of the system, not only fi-om the excessive cost of the 
 
/'. 
 
 •JO NlA(iAKA & DKTHOIT UIVKKH KAILWAV. 
 
 lioftd itself, hut also from tlio viiHt cxitoiuliturc rendered hourly 
 iioccHHary to keep tlie Jinlf llniHhod and dilapidating Btnuturo 
 in anv thing like working order, and they niUKt ho alHo awaro 
 that had it not been for tiio virtual bostownieut of sonic tittoeu 
 or sixteen millions of dollars by the Province, their invostnionts 
 would have been u total loss, and the Company must have long 
 since become utterly bankrupt. The Provincial Kxchequor will 
 also fool this system of management for all time to come, and, 
 you raav rest assured, you will not escape a similar punislimont 
 if you allow yourselves to bo wheedled into giving assistance to 
 this project. You will certainly find it another Grand Trunk 
 ■without, it is to bo hopotl, having the Province to fall back on. 
 
 I give below the form of Tender and Spociflcation clitiro.— 
 They are worth examining as curiosities. The Plan of the 
 Specification will bo found to possess some very distinguishing 
 features. While it effectually secures the object intended hy the 
 Directors it also greatly economises preliminary thought and 
 labor — ^renders it unnecessary to make any examination of the 
 route for the Eoad, — gives ample scope for the dovelopementof 
 cnginooring skill and genius, " while the work progresses," and 
 it can be used for a Prospectus quite as well as for a Specification. 
 
 Haying brought down u history of the transactions, connec- 
 ted with this measure, to this point, your attention is now spe- 
 cially invited to tho route of tno road, as decided upon by the 
 Board of Directors, and which their very convenient Engineer 
 styled in his evidence before tho Committee already alludod to, 
 as being, after " a thorough examination of tho country was 
 made, tho best for tho jn'oposed lino." Now, I have distmctly 
 to state, and I do so without fear of successful contradiction, 
 that no examination of tho country was made by this gentleman, 
 or others in tho employ of tho Company, to ascertain the best 
 route for tho lioad. Tho lino from St. Thomas, eastward, is just 
 tho lino he was directed to lay down, without oven a pretence 
 at an examination of tho country or an investigation of tho 
 Hubjoci. 
 
 I have, fbr your better understanding of the question of route, 
 appended a map, showing tho lino adopted by tho Board, in 
 black, as well as that which should bo, in red. I do not now 
 propose to discuss the route of the Eoad from tho Village of 
 St. Thomas, westward, notwithstanding I have extended tho 
 red line from this point to an intersection with tho Groat 
 Western, at Chatham. It is believed, however, that a glance 
 at tho map will make it evident, that this is the proper line for 
 the Eoad, and more espocially when it is known that the space 
 l)etween Lakes St. Clair and Erie is chiefly composed of water 
 siarsh, leaving but a strip, on tho Erie side, capable of cultiva- 
 tion, from which to obtain local traffic. From Chatham to De- 
 
AV 
 
 ^•IAGAKA k DK'nWlT UlYEUH HAILWAY. 21 
 
 ;rcd hourly 
 15 Btructuro 
 uIhu uwaro 
 onic titloon 
 nvoBtrnonts 
 t lirtvo lon^ 
 hoquor will 
 como, and, 
 itiniHhiuont 
 isiBtniico to 
 and Trunk 
 II buck on. 
 
 n rtitiro. — 
 *Ian of the 
 tinguiHhin/:^ 
 uted hy the 
 ought and 
 Lion of tho 
 oponiont of 
 08HCH," and 
 ociflcation. 
 18, connoc- 
 18 now 8po- 
 lon by tho 
 t Encinoer 
 olludod to, 
 )untry was 
 I distinctly 
 itradiction, 
 gentleman, 
 in tho best 
 ard, is just 
 a protonco 
 ;ion of tho 
 
 )n of route, 
 ) Board, in 
 io not now 
 Village of 
 tended tho 
 tho Groat 
 it a glance 
 )cr line for 
 t the space 
 i of water 
 of cultiva- 
 am to De- 
 
 troit, whore tho Michigan .Southern and (.'ontrul, and tho De- 
 troit and Milwaukee Uailways have tiicir torminuls, tho track 
 of tho (iroat WcHtorn could bo doubled, at a trifling cost, and 
 llum a hotter Jtoad could be secured, for tho interest of both 
 Coinpanies, than if cnc^h posHOSsod a soparati' single track, and 
 no doubt, tho (ireat Western would bo glad to nmke tho niOht 
 satisfactory urrangenients in this rcHpoct, rather than havo 
 another indepcndaiit and competing lino running so close to 
 their own, to tho same point. But taking the line in black 
 which tho Company havo theniselvcs laid down, from Amher.it- 
 burg and Windsor till it roaches St. Thomas, 1 am convinced, 1 
 shall bo able to mIiow, that from thiH point east to tho Niagara 
 Jliver, tho route is ono which no Kuginoer, guided only by u 
 proper sense of his duty to tho Shareholders, would recommend. 
 Starting from St. Thomas eastward, the lino, it will bo soon, in- 
 tersects the old Woodstock and Lake Erie lino, a short distnncu 
 south of the village of Ottervillo. The only lowson, which can 
 bo with truth asHigned for this deviation from tliat village, is, 
 that parties connected with the project are property holdora at 
 tho point of intersection. From this jwint tho lino makes nearly 
 a right angle, from its proper easterly course, to the south, 
 until it reaches the village of Simcoe. Now I deny the possibi- 
 lity of any valid reason in the interest of tho road being shown, 
 for running the line in this direction, and I run no cTianco of 
 contradiction in stating, that no flngincer, of any professional 
 standing in tho country, would dare to recommend, for adop- 
 tion, a Tine running so directly out of the course of business — 
 BO palpably injurious to the enterprise, and the intci*osts of 
 those who may bo induced to invest in it — and so utterly absurd, 
 ridiculous, and preposterous in itselti as this lino clearly and 
 unmistakeably is. But, as I said before, tho line is just the ono 
 this convenient Engineer was directed to lay down, and you 
 are expected to fUrnish tho f\inds for its construction. Starting 
 from Simcoe, which lies nearly on a level with the creok which 
 runs through it, tho cutting through a high ridge which bounds 
 the village on tho east will be the heaviest piece of work on the 
 lino till It strikes tho Grand lliver. Here a dangerous Draw 
 Bridge, a structure always to be avoided, if possible, must be 
 built in deep watcx*. From this point its course is in the direc- 
 tion of tho Falls, forking at Pelham Heights, to the Suspension 
 Bridge and Buftalo. In addition to this out of tho way monster 
 
 K'oject for ^allowing up your funds — tho Uoad from Simcoe to 
 over is ai. undoi; contract, notwithstanding both tho Direc- 
 tors and Engineer must bo Avell aware the business of this 
 branch will not pay for the oil consumed by the locomotive 
 running over it. Nothing, of course, will bo deposited at Do- 
 ver from the Lako to go oast to Buffalo, or west to tho Detroit 
 Rivor, by rail, and it would bo just as absurd to stipposc that 
 
2J XiAtiAIM & l>i:Tllurf HIVKl.vs IJAIhWAV 
 
 anjlliing will |,o trai. loiml ft-^.m tl.o rail tr. bo P-hinncI at D.i. 
 ♦ t^fop nlhor of those iK.int., Vojihor (ravel, Irafflc, nor l)u«i. 
 mm W any (lewriptiou xvill fr,> ,„ or thin oxtonmoM. Hut, two 
 of \-ho IJiroctors r(>«i.!o in tl.o villu^o, and it in iiocMHnrv, of 
 coni-H(., that tlicy, aim., Khoiild he acf.)min(..latf.|, and (ho nrort(H 
 vl the additional munhor of i,iil,.H ..froad |,iiildi,i,. ho RoViirfd 
 IK tl.o oxpcnNo of (ho invos(or« in (ho projocd. And hoBidcK, in 
 iiddition to all this, tho Miinifipalides arc to ho paid in (ho 
 JJonds of tho Company tho 85SO,U()0, with tho inforont accrued 
 ninounting alto^othor to «onio hovci. hundred thousand (jollars 
 which IS not of the value of one (iirthin- to (ho load, and which 
 ns 1 said hofbro, wiih oflorod to Mr. Ziniiucriiian lor Bcvcntv-flvo 
 thousand i)oundfl, (8300t).) '' 
 
 Tho lino which I have now pointed out, and which in (hut 
 rcromw nded by tho Knf,'ineor and adopted by tho diHintorostcd 
 IJiroctofH, it will ho soon, in carried from tho point of its intoi-. 
 Koctwn with the Woodstock and Lake ICrio lino, as far away 
 from the St. Lawrence route as it is possible to aet it, and the Itoac 
 IS thus cut off from its proper connection with the head of Lake On- 
 tario, and the St. Lawrence channel of cnmmunieation teifh the sea- 
 hoard. It, also, (lives the direct go-by to the Grand Trunk, the Cities 
 ufJlamilton, and Toronto, and in fact, to the whole of Canada, 
 Aorth and East of t/ic Peninsula. It is, in truth, a more Aniori- 
 can highway between tho Staten ot Now York and Michigan 
 through Canadian territory, and iguoros tho great St. Jiawrenco 
 route to all tho maratimo portions of tho world, and this, in tho 
 face of tho facts, besides, that this country has been specially 
 logis atmg in tho interest of this route,— that (iroat Britain is 
 deeply mtorostod in its soccops, and is subsidiising our steamers 
 to foster It, a course which Canada has also adopted— that tho 
 whole Western section of tho United States is anxiously alivo 
 to tho subject of increased facilities for reaching tho sea-board, 
 by tho St. Lawronco— tJiat tho Grand Trunk is expending mil- 
 Jions of dollars, in the State of Slichigan. to reach, oven by tho 
 most circuitous route, tho trailic and trade of tho West— 
 that tho Northern or Ontario and Owen Sound Railwn • was 
 built mainly, and tho Welland Railway solely and oxuu .'.c. • 
 to secure tho Western trade to ;ihl'from tlie St. Lwwi-o-i/n 
 route, and that no doubt exists in tho minds of any, • > , c: c 
 side of tho lino, Canada or tho United States, who have given 
 tho subject any consideration, but that this route must become, 
 at no distant day, tho channel of communication between Eu- 
 lopo and Western America, and on to tho Pacific Ocean. But 
 tJ -0, which would be paramount considerations with any Com- 
 pa) ;ji(!ed by a seiiso of their own interests, in tho selection 
 o« th-i . u ■ po8-o 's no value whatever in tho eyes of those who 
 conUo! ; >«.> ),v,.;,.rt. All (hey appear to cure lor is how to swell 
 
 , r . 
 
f. 
 
 MA(iAlJA A DKTIiOl I 'M \ |;|{S i; . ( IWA Y J:t 
 
 tlio aiiioiiiit of t>\|)Cit(lilui'f, uiul l<» HiMiih, at tito mmw inn*-, 
 tlit'ir own lociil mill personal iiilcivstH. 
 
 I would now bo^ U<uvo to point uiit tlic route wliidi oonunon 
 HcuHc would (lictato, nnil coninion lionortty to tho Klinrvliohierfl 
 would .i<lo|it, iiH Hio propt'i- one for tlio ouHtern Hoction of llio 
 itmd froHj St. TlionntH. Hy nj^iiin reli'rrinj^ to tlio map, you 
 will find timt u lino extended on n direct custcrly coutho, from 
 St. Thouitts, viii Ottorvillo, divides tlio diiitunco, equally, be- 
 twoon tho two channels of coinniunirittlon, tliiit is to miy fjuko 
 Ki'io on tho Nouth and tlio (Jreat We«torn on tho nortli Hid; s 
 till it strikcH Caledonia, on tho (irnnd Uiver. At tluH point ii 
 Uridgo can li« coiiHtnictod uit/iout a gwiiuj, in shnllow water, and 
 on a rock bottom, and no cn^ineonn^ ditticulty whatever on 
 tho whole route from St. Tliomaa, or at this point, pi-escntB it- 
 Holf. Caledonia is itHelf a place of far more importance than 
 any other on the whole lino of road, betwoon the Niagara and 
 Detroit Rivers. And though but of recent sottlemont, it has 
 now in, and within a mile and three quaiterrt of its limits, three 
 cxtonsivo Flouring Millf<, eight Saw Mills, Foundry Works, 
 ■with other correnponding mechanical operations. One of tho 
 largest ond moat perfect Woolen Factories in tho country, was 
 recently destroyed by Are here, but which it is understood will 
 fil ortly bo rebuilt. It has, witliin tho same distunce, a fall of 
 twenty-four feet of tho (Jrand Uiver, tho largest stream of wa- 
 ter in VVostorn Canada, affording water power to any extent, 
 and which must n\ake it one of tho largest manufacturing 
 ])lacos in tho country, as wealth and population increaso. But, 
 even now, it would contribute as much freight and passenger 
 traffic as all the other Villages together would of themselves on 
 tho whole lino of Road. At this point, it uill be seen, the line 
 intersects the Buffalo and Lake Huron Railway, and forms a junc- 
 tion with the Railway runninff from Caledonia to the City of Ha- 
 milton, and thence by the Hamilton and Toronto Railway to the. 
 City of Toronto, by which means tho most direct and valuablo 
 connections are secured with those cities, the St. Lawrence and 
 Grand Trunk routes, as well as with tho American seaboard by 
 the Buffalo and Lake Huron Railway, to tho City of Buffalo. 
 No reason whatever in the interest of the Road can be given — 
 no honest argument, whatever can bo adduced or maintained, 
 to shew that tho iload should extend a foot beyond Caledonia. 
 Here it is complete, in every particular, and for every purpose 
 giving the most direct access to both tho great highways for 
 passenger and freight traffic, between the East and tho West. 
 And, besides, it would not only be a piece of the grossest foil/, 
 in itself, but it woul ' also be tho most arrant injustice to tbo 
 promoters of the fireat Western, and the Buffalo and Lake 
 Huron Kailways — tho former dividing but three per cent, per 
 
24 NIAGARA & DETKOIT lUVERS RAILWAY. 
 
 iinnum, and the latter hardly paj'ing its running expenses, to 
 run another independent and c^Bfloting lino through this end 
 of the Peninsula. And this, too, wKen it is known, that the whole 
 of the Buffalo and Lake Huron .'iailway, running from Buffalo, in 
 the State of New York, to Qoderich on Lake Huron, 161 miles long, 
 with all its rolling stock, and finished and cquipt in every j>articular, 
 together with the Road from Hamilton to Caledonia, eould be pur- 
 chased out and out, and the Niagara and Detroit liivcrs Railway 
 could be built and equipt in a like manner, from the Detroit River to 
 its proper intersection and junction with these Roads at Caledonia — 
 thus securing the ichole of the three roads, for several millions of 
 dollars less than the sum Morton is to receive for tlie completion of 
 the Niagara and Detroit Rivers Railwag alone. 
 
 The City of Hamilton, situated at the head of Lake Ontario, 
 is by far the best distributing point for the products of the 
 West, of any other place in Canada, and is, besides, a much 
 better position for this purpose than the City of Buffalo, at tho 
 foot of Lake Erie. Pi'opcrty can bo transported from Hamilton 
 to tho Cities of Albany, New York and Boston, at much less 
 rates, and with greater expedition by Lake Ontario to Oswego, 
 and Ogdensburg, and thence by canal or rail, than from Buffalo 
 to Albany and those Atlantic Cities', and, so soon as tho proper 
 class of screw Pro|iellers are put on the Lake Ontario route, 
 which tho enterprising citizens of Oswego and Ogdensburg will 
 not fail to provide, both the Great Western and tho Road in 
 question, if built on tho route to make it available for this busi- 
 ness, will secure as much freight traffic as they can possibly do. 
 The Great West, though but yet in its infancy, is pouring out 
 its products in large volume, and is increasing them at the rato 
 of about fifty per cent every six or seven years. These pro- 
 ducts will, as a matter of course, seek tho cheapest and most 
 expeditious channels of communication to tho Eastern Mar- 
 kets, and unquestionably, make this their chief route, if 
 opened to them, both to the American seaboard and Quebec. 
 Every stick of oak and pino timber — every foot of walnut, 
 oak and pine lumber, every stave, mast and spar on tho line of 
 this route, destined for Albany, Now York, Boston, Montreal, 
 Quebec and the Atlantic, would, without any doubt whatever, 
 take the Lake Ontario route, if provided with tho facilities I 
 have pointed out for so doing. All these products can be taken up 
 where they are manufactured, and be deposited at those American 
 points, for, at least, thirty per cent less than by the way of Buffalo, 
 and at a cheaper rate, and with more expedition and safety, to 
 Montreal and Quebec, than by tlie Welland Canal or any other 
 route whatever. This discription of freight business is tho 
 largesv .md most profitable tho Northern or Ontario and Owen 
 Sound Railway enjoys, and tho article of staves, alone, has fur- 
 
NiAlJAia .t UETUOI'I' HIVKUS IIAILWAV 
 
 -■> 
 
 , {^ 
 
 nishcd the largest freiglit tnitlic the (ireat Wobtcrn has done tu 
 the head of Lrtko Ontario, the present s<.'iison, and these pro- 
 ducts are vastly more extensive, on the route oi the Eoad by 
 Caledonia, than the Great Western or the Northern lload can 
 claim. In fact, this route would open up and place in the best 
 position for market the richest luniboring section to bo found in 
 Western Canada. Those products would give a very large traffic 
 to theRoad, forinany years to coine,if all'orded the means of reach- 
 ing the point of distribution at the City of llamilton, a city which 
 possesses a population of from twcnty-tive to twenty-eight 
 thousand inhabitants, and which, under the influence of the 
 trade it would thus enjoy, would soon number a hundred thou- 
 sand, and become the largest city in Canada, and be, of itself, 
 capable of aftbrding a large ]iassengcr and freight tratlic to both 
 roads. And all this, as well as the American route, by Buffalo, 
 could be secured by adopting the course I have pointed out, 
 that is to say, running the Road from its AVestern termini, at 
 Amlierstburg, and "Windsor, on the Detroit River, by the way of 
 Ht. Thomas,"Otterville and Caledonia, and terminating it at this 
 ])oint, /or a sum not exceeding six millions of dollars irhilc some 
 thirteen millions are to he expended on a line ijiviiuj no direet connec- 
 tion with the City of Hamilton the head of Lake Ontario, and the 
 >St. Laicrcncc and Grand Trunk routes, to the oecan, or with 
 the Cities of Albany, New York, and Boston, by tea y of Oswego and 
 Ogdensburg. 
 
 But, all those self-evident advantages secured by the Caledo- 
 nia route, are to be ignored, the road is to be deprived of lialf 
 its traffic, at least, and niillions of dollars are to be expended in 
 running it out of its proper course, to increase the expenditure 
 and secure ample spoils, under the pretext, which will no doubt 
 bo presented to you, of the advantages to bo derived from the 
 traffic secured, by a connection with the two inland Villages of 
 Simcoe and Cayuga — one as old as the City of Hamilton, con- 
 taining under two thousand inhabitants, the other, of some 
 thirty years growth, and numbering under four hundred settlers. 
 A pretext utterly falacious, ridiculous and absurd. Any num- 
 ber of as valuable points will spring up along the lino of Road 
 no matter where built. 
 
 But I am reminded b}' the Act incorporating the Company, 
 that the Directors did not loose sight of the vast advantages of 
 a connection with the Grand Trunk and St. Lawrence routes. 
 A clause in the Act gives them the power to amalgamate with 
 " the Brantford and Great South Western," a road which is not 
 in existence, and which would, if built, bo a second to the Wood- 
 stock and Lake Erie Railway and Harbor Swindle. By this 
 imaginarv road thcv arc also allowed to connect with the Grand 
 Trunk. To effect this object, it will be necessary to build some 
 
 i I 
 
26 
 
 XIAUARA.^- DKTHOIT lUVKHS RAILW.W. 
 
 SK ofsas/oni,:^^:;:^'^-; -"' ^^ « -^ or .vc™, 
 
 route that over entorc th? llSl nf 7 '•"; '"''-'' ""^^ '-""".Iouh 
 this, whiJe by adoptinT he pSr iL^"' "''^' Projectors, and 
 the most valuable confectroifsn^-fj,'""/* ''"'■^' ^«'' ^^'^ ^^"«<', 
 hands. But, howev or S ?ulon t h f''"^^^ oonslructcd to thei; 
 
 neotin. project may bo ttpTtits of S^'T^^^^^^^^ ""'^ ^°"- 
 valuabTe and enticing to adm?t of iff iT- ^ ^ building arc too 
 
 jnay rely upon it, thi TrSnk wil not h^ '"'S'ct.d ""d, you 
 
 branch is commenced and f ho vl, ^ completed before this 
 
 for a connection S ? lo St T n ^ arguments I have adduced 
 
 be reiterated by the Directors onT.f%''\\^ly''"^ ^™"^-' ^^iH 
 diculous extension ' behalf of this excessively ri- 
 
 roa^d^l:S^oSSo"n'i^b"SthSdrV^'^'^^-^ ■'^'' -""■"^ ^'- 
 «ent roads are found In^deonafe L^^ {"'•""''''^'^'^^^thepr"- 
 
 route adopted. This line it w^ll k! ^ proprietors, to the 
 
 tween the Buffalo aTd Lak^H on nn'^^'i'^n"^^ ™" ^^"^^^^ be- 
 lays, through the besttttl?rition of lL^p'*•^^T'^™^'^'■•■ 
 route 18 80 favorable for the ronsw." ..'' Peninsula, and the 
 
 of the most practical and LSiSoFT-''^'^ ^?''^?^'' ^'^«t«"o 
 gentleman M-ho knowrtLloSv^i^' '"''■' '" *''« ^^ountry.a 
 tionof this kind wni S be*^'?,^'^'''rr^''^ 
 ^lass Eailway could be bSl tot ffi!-''"'^^ H'^' ^'^^'s a first 
 fimnll sum of sixteen thousnn^' i ii "^' ^"^ ^^^ comparatively 
 pension Bridge is ofUse f nHoinff "ff ^f ' '"^'°- ^"^ «'^ «»« 
 Jt has attainfd its preseit Do^ion «ni '' ?""'"V^ 
 rnade in locating th^e Great S^^ *^« "''stake 
 
 Avas forced to form a connection w"/,''"^^ ?^ ^'^ ^^''^^ Central 
 between the Easran? West BuSo LVh'' '"T^^*^ ^^' «h«'" 
 «bghtest importance LtK Eastern r*"- ^"'^. P?^"* ^^ t^e 
 the Niagara frontier Hfir«f* 5 li'''''"'""^ ^^^^^'s ^oad, on 
 York and Erie tK;ff."i;'^®1^°."'^«'^""«ct^vith the New 
 
 rails, and other iSilw^^s an S. ^V^' *^' .^."^«^° «"<! ^iagarl 
 the Atlantic sSbS Si'ci hal ^V^'-'f '""'^^ «" *^« -^^^^^Is tS 
 of a hundred thousand inhSntsfe.'^ «* * ^•^>- 
 
 this point, across the Nia^aTS^' . ?" f ^/"'-'^ '« •'"''t at 
 now no doubt, the bu^ of the t^ZvI,' '^ ^''''J,?* ^^ ^^'^^^'h there is 
 of the freight traffic cross n,M)!'x'^' "' ^'" «^ "^"''l^' the whole 
 ably take This ro7te,?nd tit l^^^^-''''^^^^^ unquestion- 
 
NIAGARA & DHTROIT UIVEKS EAILWAY. 27 
 
 the Buffalo and Lake Huron Company^ 1 am advised, are pre- 
 pared to make tho moHtt'avurablo arrangomcnt« with tha- Com- 
 pany, who could also make the morit salistactury connection with 
 the branch from (Jaledouia to Hamilton, to roach Lake Ontario, 
 and the Grand Trunk, and thus the whole schomo could be 
 completed at a cost, as I have said before, not exceeding six 
 millions of dollars, with honest manayement. 
 
 At the first and only interview I ever had with Mr. Street the 
 Engineer, he appeared anxious to give me to understand, while 
 pointing out to him the ruinous route adopted for the Road, that 
 as it was, as he said, through the instrumentality of tho Grand 
 Trunk, the Company expected to raise the funds for its construc- 
 tion, no connection with the St. Lawrence route would be enter- 
 tained. And a letter, addressed by Mr. Buchanan, to Dr. O. F. 
 I'resby of Buffalo, under date the 31st December last, saya. — " i 
 liave to thank you for the newspaper containing tho proceedinga 
 of tho corporation of Buffalo in regard to tho IntornationalBridge. 
 It will be a great pity if Buffalo does not get Mr. A. N. Ross en- 
 listed in its favor, as tho English Capitalists, (the Grand Trunk 
 party) who support him in building tho Bridge, would be also 
 directly interested in assisting to build tho Southeron Road. It 
 appears to mo that Buffalo has now the opportunity of reassert- 
 ing the commanding position which was upset by tho Great 
 Western diverting the travel eastward, over Suspension Bridge, 
 if tho arrangement were made with Mr. Ross, I would view the 
 property in Buffalo worth double what it will otherwise bo." — 
 And tho Directors of tho project in question, offered to give tho 
 corporation of Buffalo, tho sum of sixty thousand dollars per 
 year, for fifteen years, out of tho earnings of the Road, on con- 
 dition that tho same Mr. Ross should have the building of the 
 Bridge at $2,500,000, while other parties offered to erect as sub- 
 stantial and useful a structure for one half that sum. From this 
 testimonj-, furnished by the parties thqpselves connected with 
 the Road, you will, it is hoped, be prepared for the insidious 
 course of those Grand Trunk gentlemen, who, not content with 
 inveigling, for their own profit, the shareholders in that Road, 
 .'ind tho Province into that mammoth swindle and folly, the Vic- 
 toria Bridge, which will cost about as much as the Wolland 
 cJanal, connecting Lakes Erie and Ontario, would, also, as a 
 condition of their securing an interest in the Southern Road, lend 
 their powerful assistance to induce the English Proprietors of 
 tho Grand Trunk to palm oft' on you the Bonds and Stock of a 
 road, which they themselves, in league with the Directors of 
 tho Company, render worthless, by forcing it out of tho 
 course of tralUc by the St. Lawrence and Grand Truuk Routes, 
 for the solo purpose of lengthening it to swell the profits in con- 
 struction, securing tho local interests of the Vice President 
 
 
28 NiAGAKA & I>ETJi01T lUVEIJS lUlLWAV, 
 nndjomo three other Directors at the Vilhigos of Simcoc uiu! 
 
 .nfTJ?^ -T*"^! °f.*^'' Company, as defined in the Act of Jncoroo- 
 ratlin, is limitedto ten millions of dollars, while it will bo s5n 
 Morton's contract amounts to nearly thirteen m///L I And jud? 
 ing from the conduct of the parties to the proioet hitherto"^ W 
 from whati know of them ind their movSts,'! am weUcon 
 tZ wtll^' undertaking will foot up ovemcentj JmolhZ, 
 the whole scheme is completed, and, as is the case witl. t^,,> ^t, 
 vestors in the Grand Tran\ a Eailway wh h ha^ on ic£ Z 
 
 l?f ?i''^"' ^-^1 ?^^«Pfcit« I^ond and Shareholders you wU 
 also find there will bo no end to the calls on your funds^ shou d 
 you be so unfortunate as to be inveigled into embarkin'/in tl o 
 enteri)rise,an enterprise which can only be properly c mraeter 
 ised as a mammoth swindle. n^P^'^ cnaiacter- 
 
 •If i.8 "n^o^'stood the Directors are cndcavorinff to necotiato 
 
 •',,?;* ^y^^ offering every condition, within their power to 
 Si^f'-T ^.g»«^^^"teefrom that Company, thattC wU 
 transfer their business from the Great U^cstcrn to the Southern 
 inc. They fancy, ifthey could effect this object, they would 
 bo ma position to float off their Bonds and Stock, in tl o E n 
 glish Market to good advantage. But the J^ew Yoik Centn 
 will not bo likely to trammef themselves in this respect n^r 
 would a guarantee of this nature, if obtained, afford 8eci""tv 
 
 rm.n5??,' Tt I'"'" ^T^ ^'"■';^'"' ^*« "^ffl^'^"* Managers, Messrs. 
 Corn ng and Eichmond, gentlemen who have a character to 
 maintain as the head of the most important Eai way in the 
 
 7^"? .to t\o project which they have not the power to socui-e 
 and which, they must be aware, would only bo fictitious and 
 SoTr;, J^^''° .gontlomen, also, understan'i Eaifway mX« 
 \TZf: '^"^^^P^^'^Jly ^vith regard to the necessity of economy 
 m construction securing the most direct route between 2 
 great highways of trafiic, and guarding against ruino.rcomT)e- 
 tition with otW Eoads, to aftbrd them other aid when ma^dj 
 acquainted with the existing facts in relation to those subTects 
 and the general history of this Eailway schomo. """J^cis 
 
 AVhen the present parties wore contending, some two or three 
 VTJ^V'^ '^^ ^fSi^^^^^^e, for the controT'of the Eoad-no? 
 to be enabled to put anything into the project, but to be loeally 
 ompowered to abstract all the money they could out of it f a2 
 ;h-cssed a circular letter, (which Mr", Buc^ianan had re^^^Hn cd 
 o sW fl ' ''T^'^'i \^;« capitalists of England and Scotland 
 .0 show the value of the scliemo,) to each member of our 
 Legislature, advocating the propriety of iclioying the contend. 
 
NIAGARA & DETROIT PJVERS RAILWAY. 
 
 iiig pai'ties from furtlicr trouble in tbo matter, by givint; tbo 
 Charter to the (irund Trunlc, believing that it would be tlu; 
 means of counterbalancing, in yomo degree, the worthless roadM, 
 which that Company had to build and assume, to buy up legis- 
 lation. The deceptive course adopted up to that period by tho 
 Railway financiers of the United States, in paying largo divi- 
 dends out of capital, induced a general belief that this descrip- 
 tion of i)roperty was very valuable, and would pay well at al- 
 most any cost. But this bubble Jias burst, and it is now very 
 evident that the schemers only were the parties realising. It is 
 now certain, if Railways are to be sources of revenue to tho in- 
 vestors, they must not only be laid down on tho moot direct 
 routes of passenger and freight traflic, but the utmost care must 
 be taken that not a foot of unnecessary road is built, or ruinous 
 competition provoiced, and that the money for their construc- 
 tion must bo expended solely for this purpose, instead of going 
 into tho pockets of tho projectors, managers, and wirepullers of 
 tho project. 1 then believed, and am yet confident, if this course 
 wore pursued, and the connection with tho St. Lawi'onco routes 
 and Grand Trunk, in that circular strongl}'' advocated, were se- 
 cured, the Road would pay. But every one of these indispensable 
 conditions is ignored hij the promoters of this project. 
 
 I havo now, gentlemen, given jy^ou a history, in as few words 
 as I could, to make the subject mtelligible, of the matters and 
 pai'tics in connection with this Railway project, which will be 
 submitted for the investment of your capital, and the securing 
 oi your influence. I have, also, endeavored to lay before you 
 the absurd and utterly ruinous route adopted for the Road, and 
 I havo also pointed out the course which would be pursued, and 
 the route which would be selected by any Board of Dirctors, 
 having the interest of the Share and Bondhalders in view, or by 
 any party controlling tho project as a private enterprise, in 
 which their own capital and profits were involved ; and, I have 
 now only to add, should you, in the face of the facts here pre- 
 sented, be induced to place your money at the disposal of those 
 parties, you will, I thmk, have but yourselves to blame, when 
 you find your i». vestments not worth twenty cents in the dollar. 
 It will be seen that 55 per cent, is above the Cash value, which the 
 Directors themselves put upon the Company's Bonds and Stock, 
 ichen Morton's tender, payable in these avallables, is contrasted 
 with Hayden & Go's, cash tender, but, even this estimate of value 
 is far more thai tho security of the Road will warrant. Re- 
 membering how many have their fortunes depending on the 
 enterprise, which will gi-eatly curtail the amount availaole to bo 
 expended on the work, and remembering, besides, that the 
 Bonds to be given to the Municipalities, with the payments to 
 be made to Hcssrs, Buchanan an^ Rankin, amounting in all, 
 
 n 
 
 ' I 
 
00 
 
 SlMiAliX & bmiMT KIVKUS IJAILWAV. 
 
 with tho interest, nccriiuil and iiccniinfr in ov,m. ,. \r;ii- i 
 
 I am, (JontJcnu'ii, 
 Your vovy ohediont srrvant 
 r'Ar,KnoN.A, C. W.. , JAMES LITTLE. 
 
 June loth J Holt, ^ 
 
u. 
 
 r 4 
 
 anrl n 
 
 table 
 oii;ht 
 :'Uiik, 
 ionds 
 r,i,o\v 
 
 jVlngavft aiHl Doh'oit Kivcrs Railway. 
 
 TENDER 
 
 For the cnnsiruotton of the Main Line of Railwag from the Xiiif/dra 
 River to the Detroit River, and of the Branek Lines to Fort Erie 
 and Amherstbunjh. 
 
 To the President and Directors of the Niagara and 
 Detroit Rivers Railway Company. 
 
 of- 
 
 do hereby otfer and agree to construct and complcto your Bail- 
 way from the Niagara River, at the Town of Clifton, to the 
 Detroit Hives, at the Town of Windsor, and also Branch Eail- 
 •ways from such points on the Main Lino as maj' be determined 
 by the Company, to the aforesaid Eivers at Fort Erie and Ara- 
 herstburgh. 
 
 The said Main and Branch Lines of Eailway to be constructed, 
 
 equipped, and fully completed, in stiict accoi-dance with the 
 
 terms of the General Specification which has been exhibited to 
 
 by your Engineer, J. C. Street, Esquire, and to 
 
 be delivered to the Company free of all further charge whatso- 
 
 ever, for the sum of 
 
 Dollars 
 
 per mile of Single Track Eailway, including all Works of Con- 
 struction Permanent Way or Superstructure, Eight of Way, 
 Stations and Eolling Stock, Engineering and all other expenses 
 of the Company, together with Interest, at six per cent, per 
 annum on the Capital of the Company, from time to time paid 
 up, during the construction of the Eailway. 
 
 And hereby declare, that the sura which propose 
 
 to expend per mile of Eailway, on the items included under the 
 head of "Eolling Stock and Stations," as described in the Gene- 
 ral Specification, is 
 
 Dollars, and that the same is included in the aforesaid mileage 
 rate of Dollars. 
 
J 
 
 82 
 
 ^■IAGA1L\ k DKTlfOlT \\\\VA\^ RAIl.WAV. 
 
 10 to piirclia.so tlio 
 '0 to coinpletc Uk' 
 
 B.ilw„,, i„ei,„linK Sl..lio , , I ' ', " "«':™.,!" "■">pl«lo.ll,.. 
 the Eight or «-,V. lor tl,o sm,, I,f '"f""'- I"" '•«l'wivo of 
 
 ^°""'"l>«'-'"il»ofSi„Klo Track Hallway. 
 
 on whici, is inclTidcd in ,o Vl m-n in f^''^^^'>oJ« expciulituro 
 for tho additional m,m of '' ^'"^'''" ^"^^ ^ «inglo Track) 
 
 .Dollars per mile of Second Track. 
 
 nm^tmts as followlT^faris tJTavT' T'^l^^S^'f ^'^ ^ororroln^ 
 
 m Stock of tho Comvmviuuf nZ^^^^^ 
 
 Bonds of the CompanT ^"o-tlHrd of each amount in 
 
 into the Eank of ''' ^"'"'^^^^ Thousand dollars of such Stock 
 to the credit ofthis Company, and i i 
 
 And in case this Tender bo accented i i, 
 
 take, on or before tho First SnfTni . ^'"''"''^y ""^'^^r- 
 
 CWtraet in accordance ^vXtlK^Ci/^^.,"''^i' *" «^'<'''»t« « 
 cation; and that surContr^^^^^ 
 
 the same shall become void and nl.?"" *" ''^"'« whereby 
 c'ompensationtotheContmcto, i I- •^^''"'°' '^''*'»«"<^ any 
 of the said Contract or anv nS; fi ^"%™ak'ng an Assignment 
 the BaidCompa„y!7,n5ert^.eTcoi^^^^^^^^^^ inleB,ti,o con^sent of 
 obtained. Also, a clause a^^tJoiSrfSi'r'*^' ^^ ^''^ ^'^^ ^"^1 
 their hands ten per cent on al S foSs ^o'/XT, •" ?''''' ^" 
 to bo made to the Contractor until +h«' 1?, ^* ^'"^ ^o®^'"') 
 estimate of the Chief Eocr or stlnf"^T.t"* ^° *^^« ^"'-^1 
 also in conjunction witli^ ' stoppage ot tho Avorks. And 
 to the undermentioned amount fnv ,?'""f '««' *« execute a Bond 
 '^ he said Contrac and Bond to b^. i',^.''"' porformance thereof 
 t'.o Niagara and Bct^^^^^ {SSSlij;,^:' '^''^^^^ '>^' 
 
 111 
 
 i 
 
NIAGARA & DKTROIT RIVERS RAILWAY, 33 
 
 And propoBo 
 
 of. 
 
 and 
 
 of 
 
 as Snretieri jointly and severally with to the amount 
 
 often per cent, on the amount of this Tender, for the due per- 
 formance of the Contract; which Sureties have signified their 
 assent by attaching their Hands and Seals to the Obligation 
 marked with the letter "A." hereunto annexed. 
 
 Witness Hand this day of 
 
 One Thousand Eight Hundred and Ffty-nine. 
 
 NOTE— The Tender must be on this Printed Form : it must be 
 Sealed and Endorsed " Tender for the Construction of the Nia- 
 gara and Detroit Rivers Railway ," and deliverd to the Secretary 
 of the Company at Hamilton, on or before Noon of Saturday, 
 the 18th day of June, 1859. 
 
 [A.] 
 OBLIGATION TO BE EXECUTED BY THE SURETIES. 
 
 I 
 
 We, the Undersigned, 
 of and 
 
 of hereby 
 
 jointly and severally covenant, promise and agree, with the NI- 
 AGAKA AND DifTROIT RIVERS RAILWAY COMPANY, 
 to become the Sureties of 
 
 to the amount of ten per cent, on the amount of Ten- 
 
 der hereto annexed, for the due and faithful performance of all 
 the covenants, conditions and agreements of the said Contract 
 for the construction and completion of their Railway, and all 
 other matters and things relating thereto 
 
 In Witness Whereof, we have hereto set our Hands and 
 Seals, this day of 1869. 
 
 WITNESS, 
 
VI«K«rn and DHroU Rivers n«llwar. 
 
 General Speoifloation for Work, on Main line and Brid|f... 
 
 Lin^o?iaTlw\yXn?e%K!i? P' ^'^S, Contractor for 'M 
 
 «uch width a«,J;rbo detoSd bvn;;,P^""^'° '^^^^^ ^^'^ ^-'* 
 tor also to provide all thtT.Z. ^ V" Eugmcor, the Conf.rac 
 
 Approaches^ Diversions of Rn„f''X^""'* ^°^ Stations, Ror.d 
 
 Ban'ks and io;.;"^^ a"fd tllt't 11^""' ''^•' "^"^ ^^^ «P°" 
 
 FeLTd7l^4|;:,;^t-th'a''.l7^r.' ^t'^tions Ground, to be 
 Bail Fence, af ZH Te Lecfed «"''«*«"t"*I P^^t and Board or 
 
 o&;\rsfaS^^^^ tZ' n'^^^i ^- the Line 
 whole extent, and al tLiber on tb« .n. '\°*'^ .'hroughout its 
 fence which may endanSr thn S.^ *'"1^ ''J ^''« Oompanv's 
 cleared, all cloaiW dScntffn l""*^' .¥ ^«"'"ff' also^^to'be 
 
 in strict acoorCc^e'Sh ^e ig'^^?^^' •^^"^' * ''' ''''""*'^ 
 referred to. ® detailed Specifications, hereinafter 
 
 tio?rd!'VhTc\%fiKffS ? ^* T^^ "t^'rma. 
 
 face of Rails. The slolt !^ ^- '"^^^^ '^''^^^ the upper sur- 
 
 they shall b^ncreL dT d?miSe7arth' 1° '-^ ^* *'^^' ^^^ 
 rect. The embankment to bTTsw -^^ ?T°^«»" «ay di- 
 which will be 1 foot 104 inPhfi« i!^ ^««t ^>de at formation level, 
 the inclination of ?L slUes shaH h^i w "R'^ '"'"^^^'^ °*' ^^^ 
 •hall be altered as the nature of h« * . • '. ''"* *^'' inclination 
 of the Engineer render necessary '"'^ '"'^ ^" **^^ "?'"'«" 
 
 fec^Srl'^grof 'ih^o' Way a"nd"wo ',f '? Tr^^y ^^ ^^^^JP- 
 tractor as ^ay be herTaf^r jJreTt^d ' ''''" '^^ '"' '^>' *^« <^««- 
 
 wayTTon'slIt^o? Stn/"^ 'f'^^ ^"'^^^^ ""^^^ the Rail- 
 Wo'rk.asmaly bf dSectad bvth«*p'°*'"^%^^^ °r Brick 
 eufficient width forTdoSLXack .n^'""''" ?'>^ «^*" ^e of 
 iron tubes or rnrders th« ht J *^'* *''"'*'™^ ^»th wrought 
 graers. the tubes or girders to be constructed lor 
 
NIAGARA k DETROIT UlNTKRS RAILWAY. 3j 
 
 a Binglo track, and aocording to Huch plans and on «(uch princi- 
 ples as the Company's Engineer bhall horeaaer spocity. 
 
 Arching of Masonry or Brick Work Hhall bo substituted for 
 tubes or girders where deemed expedient by the Engineer. 
 
 Draw Bridges of wrought iron and of such span as may bo 
 directed to be provided lor the crossing of the Wolland Canal 
 and other navigable waters. 
 
 Culverts and Small Bhidoes— All Culverts and Abutments 
 of small Bridges under the Railway to bo constructed for a dou- 
 ble Track, and to be built of Masonry or Brick Work as may bo 
 directed, the tops of Bridges of small span, may at the discre- 
 tion of the Engineer bo constructed of timber, and open drains 
 of masonry, brick work or timber may be adopted as ho shaU 
 direct. 
 
 Beidoes over the Railway— All Bridges for carrying pub- 
 lic or private roads over the Railway shaU be constructed of 
 masonry or brick work and timber in such manner as shall be 
 directedf, and they shall be of sufficient span for a double track. 
 
 Surface Crussinos— Public Road Crossing shall be provided 
 with proper notice boards, cattle guards, and oak guard rails, 
 they shall also be planted in the usual way. 
 
 Approaches to Bridges and Surface Crossings shall be formed 
 of such width and at such inclination as shall be directed by the 
 Engineer, they shall be planted or covered with good clean 
 gravel, or broken stone one foot in dept, and proper drains or 
 culverts shall bo constructed beneath them as may be directed. 
 
 Permanent Way— The Permanent Way shall consist of a 
 single track with sidings, as provided for under the head of 
 Stations. 
 
 Rails and Fastenings- The iron rails for the permanent 
 way shall be of the weight of 65 lb per lineal yard and they 
 shall be secured at the joints by fishing plates and bolts, the 
 rails and fastenings to be constructed in accordance with detail- 
 ed plan and specifications to be furnished by the Engineer, ana 
 the weight and form of the fishing plates, bolts, cTiairs, and 
 spikes, to be determined by him. 
 
 Tibs— The ties shall be of white oak or tamarack, or other 
 timber approved by the Engineer who shall also determine the 
 number of Ties to be used. They shall be 9 feet long, 12 inches 
 wide, and 6 inches in thickness, and they must be of these di- 
 mensions after being adzed down to a face of 9 inches widtb. 
 
 il I 
 
3« NIAGARA A DETROIT RIVRRS RAILWAY. 
 
 4^^^^^^^^^^ be broken .ton,, 
 
 the reTativo quantities of tho'so „,flt«r!?i ^'fT.^'^*" '*''•«». ""d 
 hinr No Btono larger than a cK.V^''" ^^ "^'^''"^^^^d by 
 
 U8od Tho total gua?tity 0^8^11.8. YL i""*!, '"'^^^^ "»"'I^ b« 
 Imeal yard of Raifway. ^ "* "^*" ''^ 2 enbio yards per 
 
 RouiNo Stock and Stations— ti,« r- . 
 Freight and Pbitform Cars aSdlTlnfK %'n««^ Paesenger, 
 provided by the Contraoto; for work w'th ' •'"« ^''''^' *« «>e 
 shal bo constructed according to nuilfi^ line of Railway, 
 Airniehed by the Engineer?^ ^ ' *"*' specifications to 6o 
 
 B«g.no.8tabfos, Tank-hols, Voodah^^^^^ , Freight-housS 
 cj inon-, and he shall also execute ,!lir' T^^^^^^hops, and Ma. 
 all other Station Works as mlv L i- ^"''^i'^?' Wharflng, and 
 the whole to be in accJrdaS with nu'^''^^ '^^ ^ngl^r, 
 be provided by him. "^^ ^'^^ P^^o* and specifications to 
 
 reJarrt?eco?omTon tSo:' '' *^« ^-*-«»- -ith due 
 ; Soiling Stock anVstaUons" •'shall TT^''^ ^""^'^ *»»« head 
 tract, and the relative amounts to L„ '^'*'?*i°«'' ^/ t^e Con- 
 'terns shall be determined by the Cn'n^^'H'^^^ «" t^e various 
 estimate of the amount so wpJndedThW^ ^^osa 
 
 on the Contractor. »xpenaed shall be final and binding 
 
 l>e-dl^^^^^ the Eaiiway shall 
 
 whole Of the works describe/in Tj,-^^® Company, and the 
 BhaU be constructed in a substanlLl iL^^'''«?'"« specification 
 to his satisfaction in strict a. JnrS;?' *°**. T^orkmanliSe manner 
 
 V4M(^,. 
 
t 
 
 )er 
 
 luiim m eiTii iiw iiitY omimi. 
 
 5r, 
 be 
 
 EXAMINATION OF WITNESSES. 
 
 The Select Committee of the Legislative Council on this Bill, 
 met in their Rooms at eleven o'clock yesterday, Hon. Mr. Ross 
 in the chair. 
 
 Mr, Strong rwith whom was associated Mr. Blake,) stated 
 that his lourned friend and himself appeared as Counsel for the 
 Mercer-Board, and they wished to cross-examine Mr. Smart. 
 
 Mr. PoLBY desired to be informed of the names and residences 
 of the Directors for whom Messrs. Strong and Blake appeared, 
 remarking that for all that was known to the contrary, many 
 of the parties set down as alleged opponents of the bill had no 
 existence whatever, and others repudiated altogether the oppo- 
 sition made in their name. One of these parties, in particular, 
 Judge Stevens, of Buffalo, had positively declared that he was 
 not at all opposed to the bill. 
 
 _ Mr. Strong replied that oven though he appeared but for a 
 single petitioner he had a right to be heard. Me would hand to 
 the clerk a list of the names and residences of at least a majority 
 of the Mercer-Board opposing the Bill. The petition explained 
 everything. 
 
 Mr. Smart was then called and cross-examined by Mr. Blake 
 — He said : I produce a list of all the Stockholders in the Niaga- 
 ra and Detroit Rivers Railway Company, with the exception of 
 Dr. Southwick. It includes the Wallace stock. The 12,000-and- 
 odd-shares which I stated yesterday had been voted on, and on 
 which 10 per cent, had been paid, did not include the Wallace 
 stock. There were 220 shares voted on exclusive of the Wallace 
 stock. Of these 30 were held by Mr. Macbeth, and the 10 per 
 cent, had been duly paid long before the meeting at St. Thomas 
 on the 24th of August last. I acted as Secretary at the meet* 
 ing at St. Thomas. A letter was then produced from the Cash- 
 ier of the Bank of Upper Canada, certifying that Mr. Bae and 
 others were entitled to vote inconsequence of their having duly 
 deposited the 10 per tent. I got it from Mr. Morton. It was 
 in my hands at the time of the meeting, and I returned it to 
 Mr. Morton a day or two after. This was at London. Mr. 
 Morton and I went direct to London on that occasion. At the 
 
 
•JM 
 
 MAGAKA & DETKOIT HI VEHS RAILWAY. 
 
 Morton Th«ri *""' ,^ ^^* *^« cheque for JofiOoFroZ^ 
 
 been honored T^n'-in i ^- . ^"^ ^''"'^' ^''"^° weeks after, Has 
 othrevSce than hLt' interval of the transfer I had no 
 dit of trComnan; I ro 1'. "^ '''''?^' ^"^^"^^ *° ^^e cre- 
 
 the cheque TtSant of^Up^p'orcS^'T^iinot' ^"""^ 
 the cheko to Mr MnohofK fZ*^^ > ^""?'<^'*- } a'« not present 
 
 den?e |iienrS?n^r^*°''' ^'''"^^ ^« *^^" «*y that th« evi- 
 quMtioS""™"*" "'""«" '"' ™""«'^ Lad better MiBwer ,he 
 
 «g^ to £px „\rerTtrtriTerhi;L„VTt£ 
 
 vo?!■■em°mbe7S,ow'lL'■K'"^K°^'■''° ""?"°° <"' »"«"»■•■ I" 
 
NIAGARA Si DKTROIT UIVERH RAILWAY. Cft 
 
 Tho Chairman did not think the question material. 
 
 To Mr. Foley— I never heard of E. P. Stevens, E. S. Warren, 
 or W. Stuart being connected with tho Railroad or Stockhold- 
 ers or otherwise. But was told by Mr. Stevens they had been 
 eonnected with tho matter since tho 17th of August previou.s, 
 and wished to get out of it, having been deceived. 
 
 To the Chairman — Tho throe persons last named live in tho 
 United States. 
 
 To Mr. Blake — Mr. Macbeth on the morning of the election 
 qualified Colin Munroo and Dr. Presby to become Directors, and 
 to my knowledge that was their only qualification. They each 
 paid in 10 per cent, deposit. I have no doubt of the bona fide 
 character of the transaction between these two parties. The 
 transfer was only entered before tho meeting. 
 
 Mr. Street examined by Mi*. Foley: — I v/as chief engineer on 
 the Niagara and Detroit Rivers Railway. In February and 
 March, 1857, I made a thorough examination of tho country 
 along tho proposed line, and am in a position to state that the 
 route indicated in the map is the best for the proposed line. In 
 February 1858, tho surveys and preliminary surveys were far 
 advanced, and cost altogether $40,000, of which I have received 
 830,000 from the Macbeth Board. The staff employed since 
 February is still at work, and the work of construction is now 
 80 far advanced that it might be commenced at any moment. 
 The present Board have fitted up very extensive offices in Ha- 
 milton. 
 
 To Mr. Blake— About 815,000 of the 830,000 accrued and 
 was paid prior to the 15th October last, and 82,000 or 83,000 was 
 then owing to myself. I answer approximately. This expeu- 
 ditaro was on the surveys. 
 
 To Mr. Foley — Tho work is still regularly pi-osocuted, and I 
 receive weekly what I require. A considerable sura must have 
 been expended on the Company's offices in Hamilton ; but tho 
 amount I am unable to state. I am well aware that generally 
 throughout the line — and indeed with the single exception of 
 the County of Essex — there is a strong feeling of confidence in 
 the Macbeth Board. Generally, I think the municipalities along 
 the line of road have no confidence in the other Board. 
 
 To Mr. Blake — My salary as engineer is not determined. I 
 am paid on account. Having appropriated from 81,800 to 82,- 
 000 of the money passing through my hands on account of my 
 salary since the survey commenced. 
 
 The investigation having been concluded for the day, the 
 Chairman expressed a hope that the legal gentlemen present 
 woujd confine themselves as closely to the question as possible, 
 as the Committee wished to rise the following day. 
 
 The Committee then adjourned till to-morrow. 
 
40 
 
 "'""'" ' '"■■""^''^ '^'VEH.S B.aWAV. 
 
 and he would „^® ."«* T^^'ttout the consfnt ;^p\t. «^°"^«J not 
 randum of itT^' "."«.^ouId be allowed fn m„i •. "^^ ^o« d 
 
 «roit CompaniM .fc„„?jl ■^*'"= B™, and thf w?. '■ ^'""^M 
 
 It waa priratelv »„ ^ . ''^ ^'''^<* '«» 
 
 NoticeVii'gt7;d/-^ng previous^^"^^^^^^^^ 
 
 Witness T? TV. '"^ tne oornoraJU ^i»«-* ''O this call.— 
 
 
AY. 
 
 April 9. 
 
 'clock, and 
 ade to him 
 littee on a 
 would not 
 ommittee, 
 ve a copy 
 
 k that in 
 mention of ■ 
 simply 
 le would 
 't memo- 
 
 v^ him to 
 
 All the 
 
 n Com- 
 
 e might 
 berore 
 h coun- 
 Jlted in 
 lay. 
 
 859. 
 
 pro- 
 lomas 
 ({ De. 
 
 on of 
 , and 
 
 r the 
 
 ition 
 id in 
 
 d. 
 
 7 of 
 da 
 Mr. 
 
 ^e 
 bn 
 
 XlAdAIfA & UETIiOlT IJIVKUS HAIMVAV 
 
 41 
 
 S 
 
 was present bcciiuse Mr. Bertlieod liad resigned previously to 
 the passing of the act, and Mr. MoKenna had been elected in his 
 stead. In the Act passed, Mr. Bertheod was named a director, 
 and Mr. Strong and Mr. Eccles were of opinion that he ought 
 to be present as a director. Certain resolutions were passed at 
 the meeting in question, and also by-laws, declaring witness in 
 bis office of vSecrctary of the Company. Also declaring that the 
 Stock-book of the Niagara and Detroit Elvers Railroad Compa- 
 ny was open to all subscribei-s ; and that a deposit of one-tenth 
 of one percent, should bo piad on all stock taken up. The by- 
 law did not state any place which the stock-book should bo 
 opened. The Avhole payment on their per centago on their 
 stock was £2,200, and was more actual paid-up capital than was 
 subscribed by the other Board. At the same meeting a resolution 
 was passed by the Niagara and Detroit Rivers Railroad Com- 
 pany, declaring that the stock book should be forthwith opened 
 for the subscription of stock, and the stock-book was opened ac- 
 cordingly. Stock was taken up by J. 11. Jones, Detroit, to tho 
 amount of 26,000 shares, by Mr. Jones in person ; Edward S. 
 Warren, Buffalo, subscribed by his attorney, Mr. Jones, for 100 
 shares ; Augustus P. Thompson, Buffalo, by his attorney, Mr. 
 Jones, for 100 shares ; F. P. Stevens, Buffalo, subscribed by his 
 attorney, Mr. Jones, for 10 shares ; Duncan Stewart, of Detroit, 
 subscribed by his attorney, Mr. Jones, for 10 shares ; John Mer- 
 cer, Chatham, in person, for 9,000 shares ; John Saulter, in per- 
 son, for 6,400 shares ; A. Rankin, Sandwich, in person, 26,000 
 shares ; John Ferres, Colchester, Colsted, in person, 500 shares ; 
 Alexander McClenigham, Woodstock, in person, 500 shares ; 
 H. Buchanan, Amherstburgh, 500 shares ; Joseph Mereor, Sand- 
 wich, in person, 500 shares; C. F. Elliot, Sandwich, 500 shares ; 
 John O'Connor, junr., in person, 500 shares ; D. A. McMuUin, 
 Sandwich, in person, 10 shares; James McKey, Sandwich, in 
 person, 10 shares ; Joseph Mercer, Sandwich, in person, 340 
 shares; being the second subscription. Tho total number of 
 shares amounted to 80,000, of $100 each ; upon which a deposit 
 of £2,090 was paid in to the witness as Treasurer of the Com- 
 pany, on the following Monday ; also 10 per, cent, was paid by 
 Mr. Jones, before named, on behalf of tho Americans, who had 
 subscribed for stock on behalf of all the stock subsci-ibed. The 
 amount was paid by drafts on New York and Buffalo, which 
 were July paid. Beyond this there was an additional deposit 
 of 10 per cent, on stock subscribed by Mr. Warren and Mr. 
 Stewart, paid by checks on the following Monday. The checks 
 were cashed and the 10 per cent receipts were to qualify Mr. 
 Warren and Mr. Stewart, as directors. On the Saturday in 
 question, the last resolution but one passed by the Company, 
 was one closing the books, after the subscription of the forego- 
 
! 
 
 42 N^IAGARA & DETROIT RIVERS RAILWAY. 
 
 ing stock. The meeting was then adjourned to meet again at 
 St. 1 homas, on Tuesday, at nine o'clock. The directors met at 
 St. i homas, pursuant to the adjournment. The meetings of tlio 
 .Stockholders were held at St. Thomas, pursuant to the Act of 
 1858, at the time named in the Act, and witness, as Secretary, 
 called on the meeting to elect a chairman. A great deal of dis- 
 turbance was going on at the time— much discussion arising 
 between Mr. Foley and Co]. Prince, as to who should be chair- 
 man. The doors were kept shut until precisely twelve o'clock, 
 the exact hour of the meeting j and all the parties were outside 
 waiting for admittance. The people in the interest of the Mac 
 beth Board got in first, as they had the key of the Town Hall, 
 he thought, and those people were next the door. When wit- 
 ness got in, Mr. Macbeth had taken possession of one chair, 
 m the lower part, in the centre. There was a round 
 table, and Mr. McBeth had jjossession of the table in the centre. 
 Col. Prince and others in the interest of the McBeth Board were 
 crowded round the table. This was the state of things when 
 witness came in. On seeing all the seats occupied, he went on 
 the upper benches, he having being advised that as Secretary, 
 he was the proper person to open the meeting. On having 
 reached the bench, witness call.^d on Stockholders then present 
 to elect their chairman. At this point, witness thought, the 
 discussion commenced as to who were entitled to bo Stockhold- 
 ers, and therefore entitled to vote. A very animated discussion 
 took place in which Messrs. Foley, Prince and Rankin took 
 part. The discussion became more and more excited. Mr. 
 Eccles attempted to address the meeting. During the discus- 
 Bion witness took un opportunity of one of the pauses to put 
 the question as to who should be the chairman. It was then 
 moved by Mr. Eccles, and seconded by Mr. Joseph Mercer, that 
 John Mercer be apijointod chairman. Witness does not know 
 whether this was the commencement of the discussion. But it 
 was tho first attempt to oi-ganize the meeting. The resolution 
 to name Mr. Mercer chairman was put by witness and declared 
 carried by witness with the consent of those whom witness 
 knew to be shareholders. There was no show of hands, and 
 there were a great many in the room who were not shareholders. 
 Consent was given by cries of "Yes, yes," to the resolution. 
 
 To Mr. Ross— It was arranged beforehand what proceedings 
 should take place at the meeting, and who should be elected 
 chairman, viz., Mr. Mercer. It was also resolved at the meeting 
 m question that John O'Connor and witness should be scrutu 
 neers, which resolution was also carried in the same manner aa 
 the resolution appointing the chairman. A row then commen- 
 ced, and several parties cried " put them out, put them out," ' 
 and a rush was made to the Bench where witness and Mr. 
 Mercer were standing, and after a slight ro, stance, witness 
 
 
LWAY. 
 
 moot again at 
 liroctors met at 
 meetings of the 
 '. to the Act of 
 i, as Secretary, 
 oat deal of dis- 
 jussion arising 
 hould be chair- 
 twelve o'clock, 
 8 -were outside 
 est of the Mac- 
 be Town Hall, 
 T. When wit- 
 
 of one chair, 
 tvas a round 
 e in the centre, 
 th Board were 
 i' things when 
 3d, he went on 
 as Secretary, 
 ;. On having 
 s then present 
 i thought, the 
 be Stoekhold- 
 ited discussion 
 
 Rankin took 
 excited. Mr. 
 Qg the discus- 
 paupos to put 
 
 It was then 
 11 Mercer, that 
 oes not know 
 ssion. But it 
 ?he resolution 
 and declared 
 ?hom witness 
 F hands, and 
 shareholders, 
 resolution. 
 ; proceedings 
 \a be elected 
 t the meeting 
 lid be scruti- 
 le manner as 
 len commen- 
 it them out," 
 less and Mr. 
 mce, witness 
 
 iJlAGAHA & MTHOIT IUVERS RAILWAY. 43 
 
 took up his books and went out. Sheriff Munroc being highly 
 excited, was peculiarly conspicuous in urging the crowd to turn 
 the Mercer Board out. Mr. DcBlaquioro called out to secure 
 the books, but witness had them safe. The entire McBeth party 
 were excited and instigated the mob to put the Mercer Board 
 out. It looked like a preconcerted plan that the Mercer party 
 should be put out. Witness was shoved outside the door, and 
 was near being pitched down stairs. Came back and saw Jo- 
 seph Mercer being handled roughly, in fact, being carried out. 
 Mr. John Mercer was also roughly handled. Other directors ho 
 believed were put out at the same time. Witness thinks that 
 a man named Mr. McIIenry endeavored to restore order, and 
 asked witness and the others who had been put out to como 
 back again. Witness and some others wont in. Witness stood 
 in a corner of the Hall, and called the stockholders present to put 
 their ballots in the hat. The ballots had all been arangcd before- 
 hand. Witness received ballots from different parties. Mr. 
 O'Connor and witness prepared the ballots, or they were pre- 
 pared under their supervision, and did not therefore open them 
 for they knew what they contained. They declared to tho 
 people present the parties named in tho ballot were duly elect- 
 ed. The names of tho directors were the same in all the ballots. 
 They a. ^ as ibllows ;— George Southwick, of St. Thomas ; Ed- 
 ward S. Warren, of Buffalo ; Charles Baby, of Sandwich ; Fre- 
 derick P. Stevens, Buffalo; Joseph Stewart, Detroit; Joseph 
 Mercer, Sandwich ; John Ferres, Colchester; II. McKenna, Am- 
 herstbui-gh ; Alexander McClonnighan, Woodstock ; P. H. Saul- 
 ter. Sandwich ; John Mercer, Chatham : Jonah Strong, Windsor ; 
 James Cuthburtson, Windsor. 90 shares of the old stock re- 
 ceived from Mr. Morton, and 10 of Dr. Southwick's (-Id stock; 
 and the stock subscribed on the 2l8t of August, were voted 
 upon in person, being present at the meeting. Witness could 
 not say whether those parties put in the ballots themselves. — 
 No votes were by proxy. Duncan Stewart, of Detroit, must, 
 however, have voted by proxy, as he was not present. Wit- 
 ness saw Mr. Smart, and he thought Mr. Albert Prince, of the 
 McBeth Board, making ballots, and putting them in a hat, — at 
 the time the above Mercer ^ , jd was elected. But as soon as 
 tho Mercer Board was elected, witness and others left tho 
 Hall. The ballots received by witness remained in his posses- 
 sion, and were subsequently opened by him — he knowing the 
 names from having to assist in making them up. On opening 
 them subsequently thoy were found to be correct. The voting 
 of tho McBeth Board had not been completed when witness left 
 tho room, not more than five or six minutes had elapsed from 
 the time witness was crushed out of tho room, until they rc- 
 tuiTied again, as rcfcii'ed to above. Twelve of the thirteen di- 
 rectors declared by witness to be elected met tlio pame day at a 
 
44 
 
 ,r::";\"^'"'-'' -- — ,-. 
 
 —vutjus ino amount ni 
 party-ifthoWa?aeo 
 
 ^ t;ross.examS';;! fc*^i« fharo list aHuded to ?.v U 'l?^^^ '^^ 
 Beth Board— Thl ^ . ^^'^^s O'BicJJv <i^r • ^ ^^i"- '^'unr( 
 bj proper „^STf'""^ ^" ^^^ 2St of A''^''\'^'* ^«^- the M '• 
 
 jot say ^vhat day thf not ''? '^'^^^ ^^ M^as sont^^^'^Z'^^'i^'. 
 iiOH-over, that it was ?n +^ "^^^« ^ent awav {c^n "' *^°"^'^ 
 sent. Thfl fniii • ^ '" t''"" for the iinvt^. ^^ ''^'^■'' pos tivc 
 .^as sent tot rSr^'*'«« ^-^'^ "ot^p C/^.^.^^^ ^r^,' 
 
 ^^ilson, Simeon V ^^ Present on the 'S a ' '^'^'ou^h notice 
 ^^^n^; Thomas n.^'^T^^ ^^^^t'', London tT'*J--^"'»"^«« <^ 
 
 rangemenT b'e rn%??'^4 ^^ntkuj^r^ ^^'*°««« 
 "»vhattimetho«^l^ f- Sandwich and Wnnw^ ^^^ postal ar- 
 
 fiankin would he .m"*^'^ *^'"^* ^^^« ^tocT-Loo^.t'''^' ^'"'^^^ ^ow 
 best of witno« • I ^'^ ,^^ ^'^^ all about th^fM*''"? ''i'"'''- ^fr. 
 Detroit, it °!:, ^r^l''^^^ «»<J beS L a .0 ^'•/?"««' ^« t'^o 
 from the loM ^^'*- *^«"es who naid\t ?" of old Jones of 
 
 ^^>ch, and who «... ^^'^ '^'^o met on tliooio; a ^ '^"•'' ^''08«d- 
 
 "lost of them having boen 
 
 x^MtMM^^ 
 
LVVAV. 
 
 'i'iio Direotoj-.^ 
 lined Secreta- 
 tjic Rae, -VVal- 
 ^'kofthoMci- 
 ■^■2,000 depo- 
 
 ^vJiich sums 
 ' the McBetli 
 ock stock be 
 y Mr. Biuan. 
 
 ^br the Jle- 
 «8 convened 
 to recognize 
 —hut could 
 »s positive, 
 hich it was 
 >«gh notice 
 —James G. 
 nith, Dere- 
 ^^oodhouse; 
 •0 present, 
 the week, 
 
 ttd notices 
 1 to prove 
 tne. 
 
 e witness 
 postal ar- 
 caJcuhite 
 oy would 
 ited such 
 'urs, the 
 'ere Was 
 t'o allud- 
 fter the 
 was MO 
 k. No 
 before 
 'ricans, 
 w how 
 • Mr. 
 to the 
 lies of 
 heque 
 •en. — 
 Joscd. 
 Sand- 
 r the 
 been 
 
 NIAGAIU k DHTKOIT liiVERS RAILWAY. Ik 
 
 directors of the old St. Thoma^i and Ainher-gtburgh l{ailroad 
 Coaipaiiy. at the time the ,f.')(J,U(JO cheque wan given. Witness 
 gave the wliole £2,200 in drafts and money to Mv. .loseph Mer- 
 cer, telling him to dcpo.> o it to his credit in the Bank, and to 
 attend to the business of the company, as his (witness's) fatiier 
 was at tiio point of dcatii, and lie had to leave his business to 
 attend to him. Was not sure that he told Mr. Mercer to dei)o- 
 sit the amount as the bunker or not — but told him to take 
 charge of the business of tiio ( 'ompany as Secretary and Trea- 
 surer until witness could commence his duties again. Witness 
 
 i^.i 
 
 the 
 
 never had the money back since — Mr. Mcvcor iittoiuling to 
 money part of the business from that time to the present. 
 
 At this point of the evidence, the Committee adjourned until 
 eleven of to-morrow. 
 
 Hon. Mr. Iloss took the chair at 11 o'clock. 
 
 The cross-examination of Mr. J'^Uiott was resumed by Mr. 
 Miles O'Eielly — Avitness deposed as follows : — Before we went to 
 the meeting, it was arranged before hand, by Mr. Eccles, and 
 another legal gentleman, who should take the chair, at the 
 meeting at St. Thomas. There was only one room in the build- 
 ing. I did not look at the ballots at tlie time, and cannot say 
 whether each individual put in his own ballot or not. It would 
 be impossible to say so. Acting under the arrangements made 
 beforehand, I declared the Mercer Board elected, at the meet- 
 ing at St. Thomas, as I knew what the ballots contained, hav- 
 ing assisted in preparing them. I should mention that I had 
 not time to look at the ballots, since the other party kept 
 ci'owding around us when they saw what wo were doing, and 
 another attempt was made to crowd us out, seeing whicli, wo 
 did go out. I do not think that Mr. McBeth took part in the 
 attempt to put us out of the room, but I am under the impres- 
 sion that Sheriff Muuroe did. I hoard him say " put them out." 
 I also heard Mr. Henry DeBlaquiere say " take his books," or 
 something to that effect. Those directors who met on the 21st 
 August, were qualified by Mr. Morton. 
 
 Air. Blake — The Committee will observe that those gentlemen 
 had been named by the Act of Parliament, irrespective of any 
 other qualification. 
 
 The witnes.s continued — To Mr. O'RioUy — With the exception 
 of Dr. Southwick, Mr. Warren, and Mr. Stewart, the Directors 
 who met on the 24th of August, as the Mercer Board, were qua- 
 lified by stock derived from Mr. Morton. This notice now put 
 into my hand, is the notice for the meeting to be held at Sand- 
 wich on the 21st August. It was posted on the 18th, afid ac- 
 cording to the postmark, arrived at Paris on the 19th. This 
 one was directed to Andrew Thompson, director, at Port Do- 
 ver. I cannot say when the notice arrived at Port Dover, as 
 the postmark is intjfstjnct. f. cuiinol gay whether I posted those 
 
If) 
 
 NiA«.viu .. wrr.orr i.vKiB ..vawAV. 
 
 national J3ndL'o. Thii w„<, fi ^^°,^<^ t'»o intorcst of tlii> Tnf„.. 
 To Mr Jii k — .P '" rccoiv- 
 
 1 I*. ft/I <^%m»^ _ 
 
 or r?-organi;i:g\"2r/,th°^f oth Boa, 
 
 Uio amalgamation, and aft«r^L^"l^J- ^^«n?a« iiailroad before 
 
 inoney of tt„ Company TmT5^" »% the witness favf^h" 
 
 Hon. M.V. lioss tont ti, u • '^^aturday, April 16 
 
 m '^xaminutToi ^^\iti"" "' " '^'^^''^k- 
 01 wuuesses was resumed. 
 
 »*W^' 
 
 
 :'!». 
 
 .^3I^Eb(^ 
 
 i^fuJp^ 
 
N1A(.^\KA fi DKTUorr H1VKI{S KAlJiWAV 
 
 47 
 
 Ml'. O'KiolIy laid tlio Stock Book of tlu« old Woodstock und 
 Lake 3']rio, subsequently the Southern Railroad, before tlio Com- 
 mittee. 
 
 Mr. blako stated that up to a lato hour last nipht efforts had 
 been made to serve a person with a letter of the Cominittoo, to 
 produce papers, but without success. 
 
 Mr. Morton examined by Mr. Blake — I have not got any books 
 or papers with mo. I have no contracts with me. I have no 
 letters from the McBeth Board, or on their behalf, relative to 
 the contract, pi'ior to putting in my tender. I have not a copy 
 of my tender. A letter from Mr. llidout relative to deposits is 
 in tho room. I have in my possession a letter from Mr. Foley, 
 relative to tho Bank of Upper Canada, dated 23rd August, 1858; 
 tho letter was wricten by T. G. Ridout, Esq., cashier of the Bank 
 of Upper Canada, addressed to witness. It is as follows : 
 
 Bank of Upper Canada, 
 Toronto, 23rd August, 1858. 
 
 Dear Sir,— With reference to your application this morning, 
 I am directed to inform you that this Bank will be willing to 
 discount your note at 10 days for £30,000 — say thirty thousand 
 pounds currency, endorsed by George McBeth, Isaac Buchanan, 
 Esq., and the Hon. John A. Macdonald, payable here with inte- 
 rest. 
 
 Yours truly, 
 
 THOMAS G. EIDOUT, Cashier. 
 James Morton, Esq. 
 
 It is the letter referred to in the evidence of Mr. Smart, as 
 having been given to him on the morning of the 24th March, at 
 St. Thomas. I am not aware that there is another letter. — 
 This letter is tho same that I returned to Mr. Smart, at London. 
 On tho 23rd August, I think, I left by the evening train from 
 Toronto for St. Thomas. I received the letter from Mr. Bidout 
 a short time before I started, during banking hours. I could not 
 say how many hours; but it was after 12 o'clock. I did not see 
 Mr. Eidout after I received tho letter, and before my departure 
 that day, and did not procure tho discount on tho note men- 
 tioned. I did not receive the discount before the election at St. 
 Thomas; but I could have procui'ed it. I could not say where 
 Mr. McBeth was on the 23rd of August. Mr. Buchanan and 
 the Hon. John A. Macdonald were in Toronto. The application 
 for discount referred to in the letter, I think was made in meet- 
 ing. I had not seen the gentlemen referred to in the applica- 
 tion with reference to the endorsation. The first time I saw 
 any of those geatlemen with reference to the endorsation, was 
 at St. Thomas, before the election ; I think the morning of tho 
 meeting — possibly two or three hours before the hour of meet- 
 
'1.V 
 
 >^'A.;iAIfA^„KTm„T,.jVl.:,.s llAUAVAy. 
 
 in fh^ni *" "'^^' ^•'•^'^'•t on tlio ,lav of < «>'n<iu to the amount 
 wni-l-fi'i ,^^'"" «eorotHi-vrf < ,,. rv. ^ stated as beinsr 
 
 J gave h.m the cortificato of L ^-l'- "° voucher to Mr Smart 
 
NIAGAUA .Vi r>KTUUlT KlVliHS KAILWAY. 4!« 
 
 Hoard and inyHclf that that cheque should not bo presented. 
 
 Mr. Bhiko — Thoro was such an understanding, and itH offecf. 
 was that the funds rcprosontcd hy tliat chequo should not go 
 into the name of the C;tinpany and be invested. 
 
 Mr. .Morton said there was not any wuili understanding. If, 
 however, there had boon, there could bo no doubt but such 
 wouM have been the understanding. No individual addressod 
 rae on the suMoct, as to wiiothcr or not the chequi< should bo 
 presented. Not one word was spoken or letter written that 
 this cheque should not bo presented in the name of tho Compa- 
 ny. Tho Board considered my cheque good for the amount. 
 
 Mr. Blake — Was it understood that out of the proceeds of the 
 discount you were to honor that cheque ? 
 
 Mr. Morton — I could not say. There was nothing said about 
 that cheque being honored out of tho proceeds of the discount. 
 When tho cheque and letter wore presented for tho considera- 
 tion of the Board, Mr. McBoth, Mr. Foley, Mr. Christie, Mr. 
 Buchanan and others were present. 
 
 Throe of So members of the Committee having to leave at 
 ono o'clock, tlio Committee adjourned till cloven o'clock, Mon- 
 day. 
 
 Monday, April 18. 
 
 The Committee mot to-day at half-past cloven o'clock, Hon. 
 John Robs in tho chair. 
 
 Mr. Morton's examination continued by Mr. Blake— -In the 
 room at St. Thomas, when the conven^ation respecting tho 
 cheque and tho letter took place, mentioned in my ])reviou8 ex- 
 amination, there wore present Messrs. McBeth, Buchanan, Fo- 
 ley, Christie, Hon. J. A. Macdonald, (as legal advisor,) Sheriff 
 Munroe. Dr. Presby, Thompson, (I think) Smart and others, in- 
 cluding Mr. M. O'Rielly. I think Mr. T. Rae was also present. 
 
 (Hero witness was answering from, or looking at, a memo- 
 randum. and Mr. Blake asked whether it was connected with 
 the transactions under investigation, because if \t was witnesa 
 ought to state from what source and when tho momoranduia 
 had been derived. Mr. Foley objected, stating that Mr. Morton 
 had a right to refresh his memory by a inemorundum of his own. 
 intimately Mr. Morton stated that he made the memorandum 
 nnassisted.) 
 
 Examination continued — It vras at tho meeting I proposed 
 the making of a cheque for the £80,000. Thej- acceded to the 
 proposition. I think I never inquired of Mr. Buchanan as to 
 whether he would accede. Ho did not. refuse to become my en- 
 dorser. Did not ask him to etidorse tho note. I got a letter 
 from Mr. Eidout that Mr. McBeth's namo alone would be quit© 
 sufficient, as ho was worth je75,00O at least, perhaps mo«v. Mr. 
 
^HJ SI AGAUA A DKTHOfT |{[V 
 
 I'HS lUfLWMV 
 
 I 
 
 JorMo, but did not ask Mr Buch«n„n '^' -^ *^«<-'don«ld to on. 
 negotiablo pHner without dSnJrit'^w""'fr« '^ ^«"'^ ^o 
 £ u '"i** ^^^'•- I^'dout «aid to ra?{ thnt'^u' ^^"^ ""dorstanding 
 Tor Mr. Buchanan's namo TheTnL „ ^°''*' r^" "» nocessity 
 was tboro any pronofli^inn ti? * ^.*° ^"* ""' »•»«« drawn—nor 
 
 Hndorntrndin JoF tfo Wd that 1 TT. ^" ^' ""«»«* "h" 
 
 .r • J had aHHots in the Bank of ITn,.« r "."'"^ "^"^ inlormod 
 of 165,000. The Boar7did "ot rcmK nf "^^^ ,*° ^^' «'»«»"* 
 «f the note available at that t?m« 1 , ™''*? '"'•'*® t»»o "mount 
 •clve, when tlie amount sho^.u^I "? ''J'^'""«*''« >^*'h thom- 
 not at any time reauirA If ♦ f** '"."'^® available. Thov did 
 • till «bont^theTthT e^h NVv'emt l^h ''Tr'^ore l.Jl^it 
 celled. I produced the leiterTom V ^t,".*^° ^'"'q"« w«« can- 
 above aliuSed to, and after „ 1^v5'-,-^'^°t"*' "* ^''« '"toting 
 ,;t was founded on that letter ^^IZT"". K'^''"' ^^^ '•^^<l»^- 
 rhomas, and they seemed peavSsfi.d'^'^if''^''"^ '" «»• 
 The drawing of the cheqe ias not f^t "^ "'i^'' *h® ^^eque. 
 Tnindattho*'mcoting 3THiH ! ?f «"gff«9t'on of my own 
 wishes ot the Board Si ? "^* ^"°^^ ^^e feelings or the 
 but believe it to Wo bee'n sorofTh:'' T'' ^^« «w" 'o' 
 
 lost ,t migSt go into tfe hTnds of n„,T '^T^'^ ^" *^« ^ank, 
 ^amst the rold, such as the toVn oTwT}^",'^ * judgment 
 This is my iraDression t?„7t Woodstock and others — 
 
 anythingUSTboutfh" ' TSk^h"^'"'"' ^-^-etlyThat 
 that I Jcnow I had boon advieed to h J. ff'' ^^t. ^°' P"or to 
 I afterwards took was to cincel f L^k '^" " J^^ precaution 
 and place it i„ Lower Canada ^nfh«T' L° ^este^n Canada 
 oouia not be reached by law 'l L T^^^'' ^«"^' ^^ere it 
 •ny other precaution taken In th^inT' ^IT ^^"^ *'«" ^^» 
 Aagust and the 5th November t ^ *' between the 24th 
 
 not been presented as tTad;,L'^"' "''' ^^''^'e ^he cheque had 
 hank accoLt. Do'not temiber hllTf *" "1^ ^«^>'* '» ^Y 
 of the contract havin/r to b« ^,w * l^n>m the necessity 
 
 jwaro of thefactthatfhe cheouThad no. T *^" ^"'' ^ »'<^««'"« 
 -Jth November. The Eae firm hL K? * ?''^" Presented on tho 
 years, and as sach Mr j£o SLrll^f f.^^'fl^^ **« "^y »P"t8 ^^r 
 'or me, to bo transferred?: mtwTen ^ir^'.'^^^^ ^" ^'"""^"^^ 
 
 i>*i0^' 
 
NIAGARA A bETKOlT lUVEUS RAILWAY. 61 
 
 Mr. Blako asked why tho Hubscription was not inad»j iu Mr. 
 Morton's name? 
 
 Witness did not answer. 
 
 Mr. O'lliolly objected to tho quontion. 
 
 Tho room wfts then cleared. On being again opened tho 
 question was asked. 
 
 Witness said ho requested Mr. Rao to do so simply as a mat- 
 tor of convenience, as I resided so far from the place. I had no 
 other reason. I have an account of 815,000 and over, the Com- 
 pany, owed mo as advances up to tho 24tli of Augusts Tho ad- 
 vances commenced, I think, about the latter end of March or 
 the beginning of April, 1858. I paid them because the Company 
 fequired them to prosecute the construction of tho road. I sub- 
 Bcribed my 300,000 shares of course before that. I expected to 
 get credit for these advances, on account of the Rao stock — or 
 rather tho 10 per cent, subscription therein. 
 
 Mr. Blake— I find in tlie cash book of the Company that it 
 ■was not applied that way, but on tho day you got the contract, 
 Dec. 9, I find they were paid back to you, and this payment 
 covers all your prior advances except the $120,000. 
 
 Examination continued— I understood I paid the money oa 
 account of the Rao stock My connection with tho amalgama- 
 ted Company commoncod in September or October, 1857, as 
 well as I recollect. I acquired that connection through Mr. 
 Isaac Buchanan, who then b. kl tl Wallace stock and control 
 of tho Woodstock and Lu^^ Erie Board, and also tho Amherst- 
 burg and St. Thomas Board. It was in connection with Mr. 
 Rankin I had the interview with Mr. Isaac Buchanan. 
 
 Mr. Blako— Wore you to relieve Mr. Buchanan of liability to 
 pay the £50,000 i>!iid in by him on account of tho Amherstburg 
 and St. Thomas Company. 
 
 At this stage )f the proceedings the room was cleared while 
 the Committee considered the advisability of inquiring into anv 
 of the pr( ceedings prior to the act of last session. It was decid' 
 ed that, ith the exception of the last questions aslcod by the 
 Counsel, no other inquiries should be allowed into the proceed- 
 ings prior to tho Act ot last Session, as they tended unucccBfla* 
 rily to prolong the proceedings. 
 
 Examination proceeded with — In answer to Counsel's ques- 
 tion, I say yes. Among the shares of the Amherstburg and St. 
 Thomas Co., assigned to me by Mr. Buchanan, tliore were cer- 
 tain shares, I canaot say how many, belonging to Mr. Rar kin. 
 It is very possible I voted on these shares, as well slb on the 
 others, at the election, t have tho certificate of deposit, I think 
 of tho Rankin shares ; 1 mean I have the transfer. That stock 
 was my own conditionally, under an arrangement that a cor- 
 responding number of shares would be transferred to Mr. Ran- 
 
i'^iKi-iV „ 
 
 62 
 
 P " 
 
 ^NIAGARA & DETROIT RIVERS RAILWAY. 
 
 Before the St.^hoLTokcvSrinTxr'^ the re-tmnsfer.- 
 had transferred theiretock On * ""''i^f '• AIcLeod& Park 
 hold all mv stock T was ,;,ip?on^''" ^'^'' °^ ^"g"«t' ^hen I 
 Bucha„a„\vith reVten: to" t SiSThr,' 7'^'^ '^'•- ^^^'^^ 
 Mr. Buchanan had not at ihoV 4- ^'^^ railway companv. 
 
 transfer of that stS but I wi«? T"'*"'^ J''^-^''"''"* fo? tlfo 
 him, whether in writ L ov n o t T c ,","/" obligation to pay 
 ^as to relieve him f om t o ^50 OoS ^^ "%■ ^ ,^" P'^^'"^^"* ^ 
 WttHace stock. I think Mr tnri „ ^ ''''''? ''"'''<' ^o pay on the 
 account of the road were /ho to b"^ P'io'' disbursements on 
 bursements were to beTe nded ont^op'^i^ '"°^ '"^"^ *''««« di«- 
 orn h-ne, from Ht Thomif n «, *^^ ^''^ P'"^^^^ of the East- 
 
 ■£300sterlin^amilc Tclo no ?'""'^" ^".*^S'^ «' the rate of 
 disbursements. I t'iink there « aT'"'''" * '° ^'"o^nt of the 
 Buchanan, showing thcftlm if tJ.??'"* '" 'f''^^"'' ^y ^^r. 
 collect that there was an v ml 'hat agreement. I do not rc- 
 
 chanan and mysel?afte "^h 'act o"f TS'^'"^' ^^*"'«'^" ^'- ^^^ 
 from the pr.or understandhi? On the ^H "'r^'r^'^' '^'^'''''^ 
 was under the agreement toifr^nAo'"' f .^"gust, when I 
 tion Of gettingtit eont,?ct foMhfi^aS"'!'^^'''^^^ ^^P°«'«- 
 expect to have the tender for tlV« v^ -..'^ "°* ^^ '*"y »!«"« 
 but supposed I would hTv-nnn "^ .^vithont competition : 
 
 the construction ofthorrd I Td?nJ"H--^' ^"^ "^ p' ^'^^ ^«r 
 elected as directors of the ¥cTiJf^ p not discuss who should bo 
 had been told of some of th? Board before the election. I 
 elected direcorsjKt^nkTrH'"''// '^T P'-oposed to be 
 cannot say who drew my ballot V" ^"'' '^^l ""™«« °^ «"• ^ 
 that day. ^ "*"°'' ^ Put no ballot into the has 
 
 ba|tKrb"a7aVd7^^^ 
 
 Exam!;atrn'':o^t3'' l':;-;""^^ '" '^ «'"«"'- >"«"»«. 
 on the Wallace sS a^d WooistS «n?T" "[ ""T-"' ^ ^°*«d 
 Amherstburg and St. Thomas storlr ^"''^ ^"®' »"<i o'd 
 
 own ballofr' ''°"^'^* ^ ""-^"^^^-^d you to saf you wroteyour 
 
 ~d^m^^^^^ names which we«, 
 
 hefng gentlemen p^er L L IwC T'" .''^.*''« Board, as 
 before 1 eiffned it T^i.v.^ be elected. I read the names over " 
 
 ballot was S up according foT"°f '' '"*« '^' ^at. The 
 shares :- P »^<'<'ff"nff to tlio statement of the following 
 
 w i£i 
 
NIAGARA & DETROIT RIVERS RAIL-ff AT. 
 
 Mr. Blake — Do you remember the number of shares? 
 
 Witness didn't, but had no doubt tho ballot wan correct, and 
 from seeing it was satisfied it wjis. There were in all 20,000 
 shares. There was no uiiderstandinii:, I think, arrived at before 
 tho meeting as to who should bo present. I w:is peaceable at 
 tho meeting held by the McBeth Board immcdiatoly after the 
 election, — on tlio second da}-. I don't remember any discussion 
 then as to the ai'rangoments for giving out the contract. I do 
 not remtMnber whether tiiero was a meeting next day of the 
 Macbeth Board. I have attended some of tho meetings of tl»o 
 Board, but do not remember when. There was not, tiiat I ro- 
 member, any discussions at these meetings as to who should get 
 the contract. Of course I was not qualified to sit at the Boai'd. 
 I had expectations to get the contract. There may have been 
 conver-sations between the gentlemen of tho Board and myself 
 with reference to that contract. But I will not say whether or 
 not I had any such conversations. I will say, however, that I 
 have nothing' to conceal in the matter. I do not specially re- 
 collect any conversations about tenders for the I'oad. I say po- 
 sitively there was no such conversation with Mr. Buchanan. 
 
 Mr. Blake — Or anybody else as the agent of the road ? 
 
 Witness — I can barely comprehend what you want. But I 
 will say I think not. I saw Mr. Street and we talked the mat- 
 ter of Tny tender over, previous to tendering. I had a conver- 
 sation with him as to the nature of the surveys and other mat- 
 ters in connection with the road, in order to enable mo to inako 
 out my tender. I say distinctly there was then no conversation 
 with Mr. Street as to tho amount ol' the surveys— or at any 
 time. I may have asked him as to what amount it would be 
 advisable to tender for,— as I bad asked others. I did not hear 
 from any one connected with the Company as to the amount to 
 tender for. Heard of no proposition to let out the contract 
 without advertising. I should think tho shareholders wore not 
 made aware of the contract having been given to me. As a 
 shareholder I vi'as not aware of tho circuiPStance before it was 
 
 Sublicly announced by the Board. I tilled the tender up in Mr. 
 ;ae'8 office, Hamilton, on the day fixed for tho receipt of ten- 
 ders. Before the offering of the tenders 1 cannot say I knew 
 who made the other tenders. My tender was for £10,000 ster- 
 ling a mile. I gave two securities, Peter Langlois and Paul 
 Lepper, of Quebec, who signed bonds to the amount of some 
 £263,000 — with of course a double penalty. 
 
 Mr. Smart— The security was 10 per cent, oti the contract 
 
 price to which the contractors werejomtly and severally liable. 
 
 Examination resumed — That contract was not then accepted, 
 
 aa I was informed, other tenders at a lower figure than mine 
 
 put in. That was my impression. But was not informed by 
 
'•ii iilH»».»^^,, 
 
 u 
 
 NIAGARA & DETROIT JilVl^RS RAiJ.U'AY. 
 
 ll 
 
 of November I wasLtZe ^'^'^'^^d and signed on the 20th 
 bo Riven mo ' °°* ^"^^''^ '^^''^^ that the contract was to 
 
 DfAoOo'^onlwSrwTth^ ^'Tt^ »iiade the deposit 
 
 conchided-astheexLinrtionSr fe T"?*'''" ^^'^"'^ ^o 
 
 important than Mr. Morton"^ ^^^^ h?v. «^ '^^ 
 
 yet. ^uorion s and ho had not been examined 
 
 cecX'l'ciJ'conS^^^^^^^^^ - chance of the pro. 
 
 would bo on tSe FHdav 1 S f ^ ^'J"^ °^ ^^"^ S««»'"o". wfiich 
 
 think that thSre was'anjto^ ^:,r/"r^'"* '"-'f' ^« ^'^ »ot 
 longer. ^ "^° "^ ^"o Committee sitting any 
 
 rcc'^rvetlS%rorS^ ^- ?Iake-I did not 
 
 book, as being put to ray c "ed?t Thafn^'"' "°'^ '" ^^' '^<^^ 
 in for engineering DurDoaeR «n!i J a 5'"''""* ^^' ""oney paid 
 000 of th? Compfn^he ba'ancr^Vsto ^''^ ""* "^ ^^^^ «I20,- 
 of the Company The Cnmnn V!, '^^^ ^«"' *» the credit 
 fm.000on^ho^ Quebec BaEn^the'^.r* ^'^ ^^^^ amount of 
 16,000 and odd dollars werec?ed ted to m.' ^ f ^" '^''^- ^he 
 that I got a cheque back for 16 000 nn^ L /,r«'»ember now 
 rememleron what bank I ^nf <S • ^^^ ''^'^ ''°"'*'*!- ^ do not 
 ceive any other amount on ?h« « ^^w***' r'^'^"«- ^ ^^'d not re- 
 for 16,00li and odd dollars J ol^^ ?*"' ^ 'u^'''^"^ **>« «hoq«e 
 other sum from the Comn;. T^''* Ty ^^""^ ^ received any 
 
 ;iow I remember a cheque^oVSfr^"* *''"^- ^ ^'^ ^^^^^^^^ 
 »98,000 before spoken of as th«h«i„t ^"T^'^y at the time for 
 
 Kxamination concinnpH Tu^ 
 
 lonnnued-The arrangement took place at 
 
 «^^^ 
 
NIAGARA Si DKTROIT ItlVKRS IJAIi.SVAY. 
 
 i);t 
 
 which 
 
 Quebec, where I received a cross clioque for the $16,000. I gavo 
 Mr. McBeth a cheque for 8120,000 which was borrowed by the 
 bank. I do not know what were the rates of the other con- 
 tracts for the construction of the road I gave Mr. Eae a 
 Power-of-Attorney to act for me after tlie deed of amalgamation. 
 Mr. Blake— I submit that this document is a subject for in- . 
 
 spejtion. , , -.r 
 
 Mr. O'RicUy— It is not. The power was given to enable Mr. 
 Eae to do certain work, which was never done. Tho document 
 is purely private. 
 
 Mr. Blake— Mr. Rae is a Director. 
 
 Mr. Eoss— Mr. Rao beinac a Director, tho power should be 
 produced. He held it in his hand. It merely enabled Mr. Eao 
 to vote for Mr. Morton at tho election, and only contained a 
 proviso that he should not revoke. 
 
 Mr. Blake— 11' • hat is all, I do not care to have it produced. 
 
 Crosse - ■ ■'nation by Mr. O'Rielly— This is tho bond I gave 
 for the f ' ance of tho contract. I was present at St. Tho- 
 mas dui • ' -• election, and saw no persons taking ballots ex- 
 cept tho«e connected with the McBeth Board. I did not see 
 Mr. Elliott put out his hat to receive ballots of stockholders on 
 that occasion, in the room in which tho election took place. I 
 was sitting convenient to the table, and I would have been likely 
 to see such a proceeding if it took place. None of tho parties 
 connected with tho McBeth Board counselled or resorted to 
 violence, on that cccasion, that I saw. Everything was dono 
 by that Board to keep order. I know of no jjerson connected 
 with the Eailroad as Jones. I assigned certain stock, alluded 
 to in Mr. Elliott's evidence, gratuitously, in order to qualify 
 nine Directors— known as the Mercer Board. I have not re- 
 ceived any consideration from these gentlemen, although I 
 should have received 10 per cent. I gave my obligation to Mr. 
 Buchanan for the 10 per cent. 
 
 Isaac Buchanan, Esq., examined by Mr. Blake— There was an 
 understanding between Mr. Morton and I previous to the amal- 
 gamation. After the passinsc of tho Act of Amalgamation, I 
 made a second agreement, which was after Mr. Morton got tho 
 contract. The first agreement I looked on as being swept away 
 by the amalgamation Act. Neither Mr. Morton or I made any 
 steps to annul the contract, otherwise than that we looked on 
 the Act as annulling it. By the agreement first made, Mr. 
 Morton agreed to relieve me of the liability of tho £50,000 of 
 Wallace stock. Another agreement in tho same instrument 
 was, that £30,000, being 10 per cent, of tho Woodstock and 
 Lake Erie stock, shonld be paid up simultaneously with the 
 transfer oi'tho Wallace stock. Another agreement was that I 
 should bo pa'd mj^ outlay of £34,500, sterling, at the rate of 
 
I 
 
 j 
 
 I 
 
 66 
 
 MAGAHA .^ DimiOIT RIVKII.S UAU.WAV. 
 
 ^300 per milo, beinn- the rifo «r n 
 
 ryai^ £18,500 in first c£ bond ^r ?"/"', ^''"* ^ ^^'^^ ^^ h"* 
 Th.8 wa8 a mere agreemen wit A? . 'p '''f.^'g^'^'^t^^d company, 
 to do with the Board. Iwen ,m tn\f "S'"' ''"^' '""' "ot'""'i 
 
 lieved by the result of the elect on^S^ .% 'anxiety was ro- 
 road should bo built, as in tt^t oascT o^J T'^ f'"^'«d that the 
 Hllowed any voice in the election mM ''^^u'*"^ ^ «'«« "«* 
 demanded. There were no ne ,o JaS'^ f ?• *'^''" "'•>' '"^^''''s' 
 Hab8eq„ent to the Act. TheyC -o T^^ ^'^ *''° '^"^''^''' 
 remember vritin-/ a letter <wLw "''before the Aofc. I do 
 
 the affair, statin/t?Ju Mr.'Mo;ton^"ad ft'f i'f °"''''^ ^^''■*^' '« *' 
 000, beintj a definker, and St ,,n 1 i '""'' *? P^^^ '" ''is ^80,- 
 the ma-,er should be put in o hi, k ''? *°^'' '*°P« 'o do so, 
 other p.rHons, and ^'icfJLquarrcirin- ^ "'^^ mentioned 
 gone on with. JJost of the^"et L .« t ^'''''' ^"^ "'« ""oa^ 
 newspjmcrsfor Rome cause or otJo. T T"*" "PP^^^''^^ in the 
 Great T^estern Bailroad if^hese nronii ^"''' ^'^ '^ ''^'■"' «" *''« 
 a letter showing that the GreTlt"^ ^ p"m* P''^-^ "P- ^ have 
 mo for the sum^ I never had 11°'"" ,^^»'''0"d are bound to 
 and my name was usedas the olllTT\l'''^'''"^ transaction! 
 the £50,000. I acte^ meX fo/tfr?,-^'^'^"''^ ^' "««d foi^ 
 Western Railroad; and a II the^dirt thn^ ^ T^"*'' f *''« ^'^'^t 
 wjth reference to the matter is am. i" '*'." *''''''"'" °" "»« 
 I wrote to Mr. Macdonald contained I il "'. ? '''1i. ^'^^ '««er 
 •nterost should have been .S "ve.- h fh' "'''* T"'" ^^^'^ho's 
 gmal agreement were not cirr ed out A t'^' '^- ^'^''t '^ *''« «"- 
 Jctter, negotiations were entered iroK. ^^' ^'T ^ ^''o^e the 
 contract. I mentioned in thit Jet !!• ;^ ".'%f" '^^^^^^ 
 no tfe'ot it unless he was able to cm-rv fh ^^^''•, ^^^"^«" should 
 tiating-that is, I showed tLi.tf^ * through. I was nego- 
 to some Peoplo-with Sr Ln es'ibor'fh*" ^^- ^««donfM 
 time I wrote the letter. After UrVl/' ^^"^ contract, at the 
 oor.firmed the agreement w£i had 1*°" ^,°* '^« «°"traco ho 
 bim arid me. Mr. Morton neve!- „i /'""^^'X existed between 
 for £30,00. before alfuded to i jc„ew of?h '' ""''"''«« *•>« »«t^ 
 bad not refused. I would W Jl. ^ '/• c"-c»m8tanco~and 
 
 that I would be sJe-fs nfnTo/rif^''"^ ^<' ™« 
 
 "tracted. ^ wanted to have the works con 
 
 To Mr. O'Rielly—The rate of f^nn 
 oastorn portion of the lin/nn/ ^^l^J^J^r mile was over the 
 
 PO|nt it was orderly. I was aSl? t?^"^'' u^P *° ^ ««rtain 
 -iiJ at once some laio-ers Sm h«® Su'® "^^^ ^^^^ no part. 
 to pnsh. I saw no ona 1n«^ «? . Thomas Railroad bocan 
 
 CI rpgi et that violence was used. 
 
 1 
 
 s 
 
 V 
 
 t 
 t 
 
 H 
 t 
 1 
 1 
 1 
 
 «C 
 
4 
 
 XIAGAllA i DETROIT RIVEKS RAILWAY. ol 
 
 The Tioonlo seemed to bo oxasporatocl by what thoy heard-thev 
 Smed to tl iTthat they ^vould lose their cmp oy.nent in ho 
 S ¥he idea ofrioti^ being earned -,\;" ^^'S,;-- ;^\. '^^ 
 time is a mere faree. There wa« no sueh thing, i iio inter np- 
 JkTn nV caused by -Mr. Eeeies and others, and tlio peoplc- 
 lart fellow who'niade .hort .-orl. of them-pus^ied he m- 
 Xr'ptors oat of the room. Every thin- was done by ^Ir. Fo - 
 lev to lilt .lownthe disturbance. The people seemed almd 
 £t ?hi "ill would not be gone on with i^if r^roTn uJi^oom 
 ruption. There was nothing going on at the ^>«'Vrlh not s^ 
 which would indicate an election of Directors. I did not see 
 Mr! Elliott taking any ballots I saw one O'" tw^ .l--! J^f^,^ 
 Wilson and others-return "^er being pushed mub^^^^ 
 no ballot. I think there were loO people in he ^"'"-but tho 
 part near the door was vacant. It is possible fat Mr- I^hott 
 might have come in and stood n a corner f ^ ^he ^f^'"' J'^^- 
 did notsco him, and I am sure that he would not ha\e been ai 
 oted to i^main I the room, foralthough tl-- .^s no v.olen^^^^^ 
 Hhown to him and his party, yet hev ^^i'^ / f^^^^^'J ^^^'' ^^j'^ 
 force, and would have been again handed o"^ it seen in i ho 
 peop e who handed them out wore smart men, ^^ .^^^^ l"f ^J 
 acl ets-cvideiitly machinists on the railroad, and ^^bo m mj 
 •mind looked forward to employment on the ^ulroa , f gone on 
 with I did not hear Mr. Ell ott announce any election ot Ui- 
 Tecors.' Th:;e^Smust have known tbat the interruption 
 was a heartless farce to give some people b "^ ^ " a . I do no. 
 think Mr. Elliott and his party coula have ballotted behind to 
 backs of the people. ThJ bill liled in Cbancei-y contains the 
 whole transactions in tho matter. ^.Y^^^^^^^ f.'-Sw th 
 the Great AVcstern Eailroad, and had nothing lurther to do x\it»i 
 
 the business. , . , i. z-.^^, tUn TtWnf. 
 
 To Mr. Blake-I was onlsido the bar, apart from the Diroc- 
 
 "Sr. 'llSi-i'^lr nVSbt .hat Mr. Emeu came into .h, 
 "S SaVe'-^^-;.id'±r,,f '^S-'af S^Scyhe aOvicc of 
 
 Mr. Eccles, counsel in the election of the -^i'^^C'^r Board 
 
 To Mr. Blako-I heard no person s<iy ^bat the peoplo who 
 made the disturbance would lose their employment on tho road. 
 I only thought that such a motive vould_ ''^^^''^^^ ^ V ondon 
 not know that Mr. George McBeth s a f "'^^^."^ '^^ ,^t,^°^,t? 
 and Port Stanley road. I know be is a large landed piopuotor 
 
 '"'"'To^MrO-Rielly-I think that tho Bill at Prfcnt before Par- 
 liament had been^rought up in order to get rid o t'^ Chance^ 
 suits, and also, I think that it ^ya_s necessary for the con^tum 
 lion of tho road. Tho public opinion is that a fraud was com- 
 mittod on the lato Act by Mr Bankm and his friends. 
 

 J" the rl -^oss said *P5 ^^"se of dp/a "^'^ "f tin Ar^a on 
 ev;d«^ ^^ancery go;, **at the etafl^ ''•''' ^o»Jd ho ! ^^ancery 
 
 vfcd nt 
 
 -,*fS^^~''^- 
 
7' '.^«* dav' 
 
 '«t unt/i Do? 
 
 ,.?/''« ^no. 
 '''«'* to if,. 
 
 ^"'f^ and J 
 ft ^^^« it 
 
 iy **« 
 
 f *o, on 
 
 ^J'^M. as 
 
 f' to bo 
 "at ore 
 fr> and 
 ons of 
 viifcii 
 ' Was 
 a V of 
 Mor. 
 'ove 
 MaJ. 
 on 
 
 er 
 
 NIAGARA & DETKOIT RIVEKS RAILWAY. 59 
 
 tho St. Thomaa meeting, to contradict some statements made by 
 Mr. Buclianm. , ^ , ,. 
 
 Mr. Hoss intirruited that tho Committee were about to adjourn. 
 
 Mr. Rtuiliin again claimed the privilege to be heard in his 
 own dotence, as ho had no counsel. ^ , , . , .^ t,«„„ 
 
 Mr. Ross said, for his own part, he should be happy to hear 
 
 Mr. Blake wished to remark that ho hoped to close his cas* 
 
 to-morrow. 
 The Committo3 closed the investigation^ 
 
 i 
 
 ^JSBJSwaaswFt* ' 
 
.•--w..«^V*« 
 
 laiP^ 
 
 REPORT. 
 
 The Select Committoo to whom was referred tlio investigation 
 into the affairs and position ol'th. Woodstock and Lake Erie 
 Kailway and Harbor Company, especially with reference to 
 certain alleged bribes given to certain of the laio Directors 
 by certain of the present Directors of the said Company, to 
 the great loss and injury of the Municipalities interested in 
 the said Railway, beg leave to report : 
 
 That they have carefully examined the evidence taken before 
 thorn relative to the subject mattc-s of the said reference, from 
 which they find that the original Act of Incorporation of the 
 said Company was passed in'tlie year 1847, bi.t remained dor- 
 mant until llSiVJ, when efforts began to be made by Iho then 
 Directors profes!<edIy to give effect to the ])rovisions of the said 
 Act, to obtain further time for thecommoncement of the works, 
 and to enable the said Company to continue their road from 
 Simeoo or Port Dover, in the County of Norfolk, to Dunnville, 
 in the County of Ilaldimand. 
 
 That in October of the latter mentioned year, by a Report 
 then made to the Stockholders, signed by the President and 
 Secretary of the Company, (a copy'of which is hereunto annex- 
 ed, marked A,) it was represented that "the Capital Stock of 
 the Company" (£250,000) "Jiad been ail subscribed for, and was 
 "held by parties perfect, responsible, but who would willingly 
 "transfer a portion thercDf cither to municipalities or individu- 
 "als," and Willi ^m Gray, Inquire, of Woodstock, together with 
 the Rev. W. A. Landon, of tlic same place, were deputed to vi- 
 sit the municipalities of Xorvvieh, Windham, Simcoe and Wood- 
 house, to request their assistance and co-opcrution in the per- 
 formance of the work. That the said Landon and Gi-ay, in 
 pursuance of their instructions, proceeded to visit the said mu- 
 nicipalities for the said purpose j that among other inducements 
 to that end, it was represented to the municipalities by the said 
 parties, " that the position, character and standing of the seve- 
 " ral members of the Board of Directors" (the personnel of which 
 Boon after the said Landon and Gray had entered on the objects 
 of their mission was changed) "wore such as to supply the pub- 
 "lie with the best guarantee for the faithful and honorable dis- 
 "ohargeof the affairs of the Company, there being connected 
 '■ with the said Br>ard soveral persons then holding high posi- 
 
NIAGARA k DETROIT RIVERS RAILWAV. 
 
 (A 
 
 ivcstigation 
 I Lake Erie 
 •eferencc to 
 Directors 
 ornpaiiy, to 
 torested in 
 
 iken before 
 ■cnce, from 
 tion of the 
 laiiifci dor- 
 y Iho then 
 of the said 
 the works, 
 road from 
 Dunnville, 
 
 • a Report 
 sident and 
 nto annex- 
 l Stock of 
 r, and was 
 I willingly 
 
 • individu- 
 Jther with 
 ited to vi- 
 nd Wood- 
 1 the per- 
 . Gray, in 
 
 said mu- 
 luceinents 
 y the said 
 
 the seve- 
 ', of which 
 be objects 
 
 the pub- 
 rable dis- 
 ionnected 
 igh ■poRX- 
 
 ¥• f* 
 
 "of whom also occupied exulted P°''y«""-^ .-/ ' ^^,,,1, wussul- 
 represented that a oerta.n "'Y'l'-'^.f, .'''^^'Jl^i'j.e'^reunto ar.. 
 flcFibed, though the .a,d ^'^'f "' ' ' ,, ^^ o' U ,t t'^^'t. "^^ 
 nexed, fitatc, "that ho "^;/\^ ''^^*^ ^J^r .^"i,; said Landon 
 
 ■^ 
 
 I ca.h, and that »"tVf;L"S?.n™kin"Lpr,« "^^^^^^ 
 paj, bat two P«>;X^° 'Jrd ^tl^i loan.%etauBetl.cB. loans 
 
 -jtrt;=:i;r:;r'JSKp^H,-.i^^ 
 
 other witnesses examincil ,^;?'®^, ;""'_. , „„j indeed not at- 
 
 s:ptssS!^^t;^:3SwS%'s^f^s 
 
 amount existing, the only «tock rca '^ rseven or eight in num- 
 
 voted on. It also appeal-. *»' «™°/l'J't ''° „y on" ot the 
 not more than flfty I'°""''\™',frort the eubSptiOD. ..er. 
 
 tton of the fraudulmt Mheme. of eer«.m of the Pirortor. 
 
«J NIAdAIiA .-;• DETROIT UIVKKS RAIJ^WAY. 
 
 oliiers fioting ^vilh thorn lor tlicir own advantaRo. Being thus 
 euccessAil in the accomplislnnont of tlit ir dcsigim, tho fiirthor 
 prococrlings of rovtain of llio J)iro< lors and tlicir acuonipliies in 
 .yniit, arc marked \>y a doixroe of rcfklossnosH and violation of 
 tiiith and lionorablo doalinij, Avliicli Youi- ("ommitleo tind it tlif- 
 fioult to select words to chamctorizo ns liioy dosorvo. I'iseon- 
 sions having); arison between a majority of the Hoard and one 
 of their nnmbcr, the latter was ejceted' on tho /,'round lluU, be- 
 cause ho had not paid up his cal'lH on tho stock subscribed by 
 him, it bocamo forl'eited. A most extraordinary ,<,'round of ob- 
 jection Your Comniittoo submit, for a body to tako who had 
 themselves paid but a nominal sum on their own stock; and 
 M-hen it is further considered, as uppejirn from tho evidonco of 
 tho Secretary of tho Company, that no calls were ever oflicially 
 made on tho Stockholders. 
 
 This dissension led to a chancery suit, instituted by the re- 
 jected director to recover his seat, which terminated in his fa- 
 vor, and in the costs on both sides being jiaid, of course, out of 
 the moneys of tho unfortunate mnni..'ipalities, as no other means 
 v.ere av:iil;ii)lo. In pursuance of this decision of chancery, tho 
 successtul litigant, Mr. Light, took his seat at the Board of Di- 
 rectors tho day before the annual election for the year, but was 
 turned out next day by a majority of votes, both parties voting 
 on tiio tictitious stock pretended to bo held by them. About 
 this time a claim appears to have been urged by Colonel Light 
 for certain alleged expenses incurred by him seven or eight 
 years before; and out of tho moneys of tho municipalities ho 
 was paid the sum of 65,93G. 
 
 As an instance of the glaringly unscrupulous manner in which 
 the objects of certain of tho jiarties interested in duping the 
 Muinicipalitics were etfected, Your Committee beg to direct the 
 attention of Your Honorable IIouso to tho following, the parti- 
 culars of which will bo tound in tho evidence of JMr. Hodge, tho 
 associate engineer of the Company. Among the municipalities 
 granting loans to the Company was the township of Windham. 
 After the passage of the By-law and its ratification by the rate- 
 payers, it became the duty of the Reeve of the township to hand 
 over to the Railway Company, under certain conditions, tho 
 necessary papers to enable them to obtain Government deben- 
 tures, under the by-law. To do this the Reeve referred to had 
 what he called " scruples," according to the statement of the 
 witness. Means were soon found to remove them. A sub-con- 
 tractor was sent to him with an envelope containing 8500, 
 which was quietly handed to him. The scruples were removed, 
 and, as witness states, twenty minutes after, the necessary pa- 
 pers wero in tb a hands of the Secretary of the Company ; subse- 
 quently the messenger carried the Reeve another onvelone con- 
 
 » 4 
 
 #: 
 
A' AY. 
 
 lio'ing thun 
 tho further 
 coiiiplices in 
 violation of 
 3 find it dif- 
 vo. I'lsson- 
 ud iiiid one 
 md tiiat, he- 
 ibscribcd by 
 ")uiid of ob- 
 10 -who had 
 stock ; and 
 ovidc-neo of 
 cr officially 
 
 I by the re- 
 1 in his fa- 
 urse, out of 
 tht'r means 
 finccrv, tho 
 jnrd of Di- 
 ar, but was 
 ties voting 
 ni. About 
 lonol Light 
 n or eight 
 palities ho 
 
 )rin which 
 luping the 
 direct the 
 the parti - 
 lodge, the 
 licipalitiea 
 Windham. 
 r the rate- 
 ip to hand 
 itions, the 
 nit deben- 
 •ed to had 
 mt of the 
 L sub-con- 
 ing $500. 
 removed, 
 jssary pa- 
 y ; subse- 
 jIodc con- 
 
 v^ 
 
 .MAtiAUA 4 DHTItOlT i;i\ KKS t>All,\VAY. (in 
 
 iaining an additional 8500, one hundred of which Ikj dt'ducl*-.! 
 for his own scrvicoH in negotiating the tranKiiclion, and tho bal- 
 ance ho handed t'l tho IJoove as payment in full for tho removal 
 of his Hcrupicu. Yotir Conimitti'o have no comment to malte on 
 liicts so di.MTeditablo to all parties concerned. 
 
 On the obtninnicut of tho moneys by tho means thus dcscril- 
 od tVoiu tho inuinoinalitios, in dirert violation of their undertak- 
 ing throu-h tho saul Landon and (u-ay, and of bonds givcnby 
 them to till' said elVect to tho munic'. lilies, the directora, with- 
 out, expending u sinsjflo farthing of oir own mean:! in the con- 
 struction of tlio road, iirocvodcd to ui.'ipuso of the moneys loaned 
 them. In the like violation of the said assurances tho said di- 
 rectors changed the tenor (if the sai.' Ucged contract by con- 
 verting it from a creilit to a cash one, without the knowledge or 
 consent of the municipalities, and tor his influence and exortiona 
 in obtainitJi,' tho contract fur Zimmerman and Company, Henry 
 DoBhuiuiere, one of tho directors, is distinctly proved to havo 
 received a liribe ot no less a sum than 850,000 under his con- 
 tract, in which tlio said Di.Blaqmero admits ho was n secret 
 partner to the extent of ono-iifth the profits. The work on tho 
 road was at length begun, right of v.-ay to a considerable extent 
 Hocurcd, and stations and depot grounds fixed upon._ The mu- 
 nicipalities, invii!;ovated by this appearan o of a serious inten- 
 tion to proceed with tho operation of the works, and having 
 tlieir attention thus attracted from the frauds which havo been 
 practitiod on thorn, congratulated themselves on an approach 
 ■ to tho rcali.-'.ation of thi?ir long cherished expectations. These 
 expectations, howovor, were not of long continuance. 
 
 lu the fall of 1851 tho works woro suspended ; from tho evi- 
 dence uf Mr. Ilodgo it appears that the aetual amount paid to 
 sub-contractors for th.it part of the work done amounted to 
 about £S2,000, while the contractor received therefor, ^87,000. 
 31ov,' the remainder of the moneys were expended tho testimo- 
 ny hereto attached will .^how. Througliout it exhibits unmis- 
 tukeablo evidence of bad faith, deceit, reckless extravagance, 
 and mal-appropriation of tho moneys entrusted to the Company 
 by tho municipalities. 
 
 Daring the session of 1851 and 1855, a further extension of 
 time and route was granted to the Company. Fresh promises 
 were made, and again tho hopes of the municipalities revived, 
 and again they went to work, with a will to carry into effect, as 
 far as'thoy could, tho objects of tho amended t.tatute. Nothing 
 practical, however, was accomplibhed. On the 10th of March, 
 1856, delegates, appointed by the several Municiiialitios, met at 
 Paris J and a proposal made by Miles O'Rielly, E.sq., of Hamil- 
 ton, for a settlement of tho difficulties existing, was agreed upon 
 unanimouslv. This proposal will be found appended to the Act 
 
!■*>••*• 
 
 f 
 
 I 
 
 \ 
 
 04 MAGAliA k DETROIT UIVER3 UAILWAY. 
 
 10 Victoria, chftptor 74 ; and to oonfirm uiifl lojfalizo the agroe- 
 moat rofcrred to, the h lid Act was parsed, siilijvHt to it9 ratifl- 
 cation by tho nitc'paytM-3 of the ninniiipaiilii's, ' Soon after, Ky- 
 lttW«, in iHirHiianco ot'ita l)l•ovi^ion8, wm-e Miibinittod to tho rate 
 payors. While their docidion waa peiidii)«, j,nd witliin a Hhort 
 liino oi tiio period (ixod upon Cor taUins? ilio final vote, a frcHli 
 and wholly uncspectod ck-mont ofcont'iiHion prosontcditKcIC, in 
 tho shape of a circular to tho mnnicipalities [which Ih herewith 
 annoxodj from Mr. Isaac Buchanan and oihcrH, clainiiiiff to bo 
 tho Diroctors of tho Co rnpany—diroctinj,' tho Municipalitios to 
 withdraw tho said By-law.s— announcini,' that tho Charter had 
 passed into Mr. Buchanan's hand.s, that'tho interests of tlio mii- 
 nicipalities was provided for, and cifoctive nioasuret. ikon to 
 Hccuro the inimodiato comnuMicoinont and speedv completion of 
 tho road. Tho bewildered Municipalities, it'woulcl appear, 
 ncarcely know how to hhaijo their course, under these new cir- 
 cMjmstancos. Tho result, however, was the withdrawal of tho 
 By-laws, and a kind of half-way acceptance of tli.^ iiroteclion of 
 Mr. Buchanan and his (elluw Directors. But Xll,000 of tho in- 
 terest of tho Municipalities was paid. Then commenced a spo- 
 0103 of life and death strn^'uln hutween Mr. Bmhanan and IiIb 
 friends on tho one side, and Mr. Zimmornian and his friends on 
 tho other— tho unhappy Municipalities boinir, in the meantime 
 nsod as tho mere playthings of both. Sufllee it to say, without 
 enterin/? into details, which will be seen bv a refei-cnce to tho 
 evidence attached to tho report of Your Comniittcc, Mr. Bu- 
 chanan failed in his ongaiioments, and once more the despairing 
 municipalitios wore forced to fall back on tlioir powers of eri- 
 duranco for relief. IIow Mr. Huchanan happened to become so 
 much interested all at once in tho allairs of a concern with 
 which, up to tho moment of his yoluntary interferenco, ho had ' 
 no connection ^vhatevor, except to oppose and retard it, and 
 how ho contrived suddenly to obtain tho control of the charter 
 of the Company, bocamo to Your Committee curious and inte- 
 resting objects of enquiry. Ills evidence annexed, given with 
 great candor and commondable simplicity, suppjios at one and 
 tho samo time the motive and tho mode of offeeting tho object. 
 He atatea that his motive was simply to obtain for the Groat 
 Western Railway Company tho control of tho Southern Road 
 <rom tbo Niagara to tho Detroit Rivor,s— that havinrr done their 
 utmost to oppose tho obtainmcnt ol' tho charters, when they 
 oould no longer prevent them, ho believed they desired to pos- 
 Rcss them lor their own purposes, with a view to tho construe- 
 tion of those Roads, instead of a double track on their own line. 
 ^""' Mr. Buchanan declared to bo his only motive. His mode 
 of obtaining this control, though singularly succossful in the 
 instance referred to, is, Y'our Cymmtttcc trust for tho honor of 
 
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 f- 
 
 mAOARA A UfiTKOIT lUVEHS IU^WAY «6 
 
 fS'cou7t";l!,''o;rwhioh ""T'^'^' °"« -•'^«'» ■•-ortod to .n 
 
 obtain tho removal o ' tlfroe o? tho nr"" *"''''° ""^ '^^^^'^O^ to 
 tion in thoir 8tea.I ofthroo of hia^ ^"'-•^'"«'«' ""^ tho substitu- 
 viou8ly Huccocd^J in so uph^i ; ,Z? "'^"""°«''' »?« having pre. 
 four to aceodo (o and « dm J' " ^^''^''aso the remaining 
 transloronco of , lu. ciSter t. a -1. '"^ ""' ^'' ''"rU"^ '"•"* ^''O 
 pondonoeoutiiisnartoftlfl rr, • ''^"^P""^- Tho corres- 
 contents Your Comm tteo ben ;7'^' .^'''"'/i, '« """o-vod, and to its 
 Your Honorubio u e in tit ^^^*'^^ «P'^'"' «"ontion of 
 Hball bo found toex t p ov din^>" '' ^ "", Provision of law 
 so clearly iniquitous sonars '.,'"; P''"'^''monl of conduct 
 to deter otheiUStirc^S^ ''° "'JoptoJ 
 
 jUHtico and mora i^v From h ! " "^ '""l'"'' '^^"""^'^ »/?«'n«t 
 Mr. Buchanan ZviJ as ho tirnr?'""'^"''''*] '^ ''PP«"'« ^hat 
 lioad, .loemod it in p^rtantlHoo obtain''*?'' "'" ^^^^"'"'^ 
 Eastorn. While dcv sin . mo in« f. m • ' ^'I'r '"'"^'■^^ «*' tho 
 comes mostoppor^nr'to I i'l^fwm "'''*' '^^'- ^'""^oorhi, 
 Mr. irod;.c. that for a consi ol * ' " ^"ff^'estion made by 
 
 gained. Mr. ii ■ c la an o^ ,1 ^^ "hjeet could d 
 
 determines «.s to tie sm toi '/.«'. ^"'"'.'".'^ considoration. 
 Mr. VanV%K.rh s bein Tclumi t?.'''''^V"''^ tbo proposition of 
 
 -If- ,Tho ne.otl?tfe.sb r oncluli'"*;. n^"^"^'^ «°- 
 
 "p to this point anpo-irs or>Iv ;„ ?i k i' " ^«B'»a'>'ei-o, who 
 
 ocives S10U,000 and i en w h If' ''f T''""^' ^'^P« "'' ^'^ 
 draws and idio vHlr B uc-hnnan 1 l 'h"^ ""r'^"" '^ '"'^'^^'"'^ ^^'th- 
 their places; Kr. Yan\Wis „" l'^'' t^^n'^minoes to take 
 parties, rooeivinL: fo E s sertSes n, nnT^?''^'"'" "j^^^'^^" ^^e 
 ■ have a prefcrcnc? contract of t^^.M V ""'•'i^'^^ ^'''^* he shall 
 or not others Hh.L3 „ tho "rom^^^^^^^^ ^^''°*'^''' 
 
 Your Committee Imvc not be^en /bin L'/n '']"'?''''•' tran.saction. 
 due to Messrs. Barwick Mcr^iLn i, T^''"'^^' t« ascertain. It la 
 the retiring- hol.lersof sfnol. I. V" ' P«<'de8,who were three of 
 
 ohanan states Is inefXuh '^^""^ *''"' ^^'^ ^"■ 
 
 .Since Mr. Buchanan^ fa lur'^to fnlfi?) r'^''''P''^' '" ^^'' hribo. 
 «teps have been taken to r u ech' tl e "mislfnnf ^''"??'' ^«"«"'' 
 interference, all of which so f«r „1 ♦, , P^ incident to his 
 YourComnittee,Ueari'nannov,^i ^''.7 have been stated to 
 appears, that bes dis the LTlT r^'^V'''^' I'y '^hich it also 
 of the WoodstScandLakTSn T'? °^''^ *^ °^*^'" ^he control 
 creditable,wcrercsoSto[Z 
 
 posed to bo influentia on th ' Amhl"* ?°T''''f'' o^P^'sonssup. 
 The director; of ttwood^tS;^^^ ?'• ^'^'^'"«« <'^^- 
 
 constituted, consists of Mr tToIs g p^^^^^^ •^^''T' 
 
 Isaac Buchanan, M James r ciS <?• ^'dout President, Mr. 
 Mr. E. G. Benediit Mr James I^fn'r.^'' ^T^^ i' ^oodruflf, 
 
ae 
 
 NIAGARA & DETROIT RIVERS RAILWAY, 
 
 mere nominees of Mr. BucLSn for ti,i ^'^" '"'"^^^'^ «« ^^^ 
 rests and those of tho cstZafM. ?■ P^^^^^^^'"" ^^ '^i^ inte- 
 of the latter of wh ch Your clin. f f^T''^ .°^" *'"' "^^'^'^'^ 
 also appears, fron^ he cviL^Jrof ¥^7^"") '"^•^''"'n''^"- .^' 
 amount of stock subscribed by She othcis c^ f n'"''"i ?^' *^" 
 IS bare y sufficient to mvi\\fv"thllL \J ^^^^ ®'"^ directors, 
 
 of trips of himself and nVZf-P 1 ^'fn^c'T costs, expense! 
 dent to the cLrrv n "out hf, n -^'J^J^"^' '""^ ^'-^P^nditure inci- 
 for the beneli^rhrj^earCt^^n R^r^^ ^^^^ ^^^^ ^'— 
 
 Honorable ^usefS•iTno?vlp?l''T''^*? *^^ °«*'^« «^^ Your 
 the accompanying evidence Jndfl ''^f' ^\^^' ^'^ *° ^"^^^ *" 
 has been pWtised by parties officSfrn"?' ., ^^^''^^ ^'""^^ ^^'^«»g 
 ion with the said ComDarv is S v •rf"u-''u'',"^''"'" ^'«^"^'^- 
 concernedin the nSStion If ^ ^ftaWished, and that thoso 
 who have hitherto ocinnSh- ? '",' ' '"'''"^'' «™ individuals 
 cietyand in Sc staE ;« ^^^ lionorable pesitions in so- 
 miliJting,rnJ Su cl^^^^^^^^^ circumstance of a j,eculiarly hu- 
 be their^duty t™! v to L-^* '^ Committee havefclt it to 
 them, and p^ir rand fcthfulK- 1. ff \' * f T^^''' '-'^'"''^ *« 
 they might affect tLv Hn ^i? ^tf^"" V'*" ^^''^^' ^'bomsoever 
 to offer trCrHoSloHnnl'"'''^'' *^T««l^cs called upon 
 in the premises' beS'„f af tSev d? tt.'f'fh ^^.^^^^^n^at^on 
 means ot punishing the par?L Sltv of + ° discovery of a 
 against niorality whicfiit hL^ v.1^ ?l ^\^- ""^''ages offences 
 Your CommitteTtoIintti the noHcrnf^v ^'^^''^^^ble duty of 
 
 or the prevention of tKi^reScfnf?r^"-f^°"°'^*'''^^"«^^ 
 dy be found apDlicable S Zr. ^^*^^'"' ^^ «<> Present reme- 
 
 p?ovinceofth?feSad%S ^^^ ^^^^ ^^« 
 
 All of which IB, nevertheless, respectfully submitted. 
 
 ^•^■FOLIIY, Chairman, 
 DAVID CHRISTIE, 
 GEORGE SOUTHWICK 
 WILLIAM NILBS ' 
 
 rft«.».-*x JOHN ERASER. 
 
 . Yt^ttf •;^oom, May 20, 1857. 
 
 » WeK"ft^ Jj,i';:;f:S-i^^^^^^^^^^ ''^IV^^- ^°--"' b^'"* 
 Wptrt, wyern, ^nt, eheuld bo excused from assenting to tho 
 
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