CIHM 
 Microfiche 
 Series 
 (Monographs) 
 
 ICMH 
 
 Collection de 
 microfiches 
 (monographies) 
 
 Canadian Institute for Historical Microreproductions / Institut canadien de microreproductions historiques 
 
 QQQ 
 
Technical and Bibliographic Notes / Notes techniques et bibliographiques 
 
 The Institute has attempted to obtain the best original 
 copy available for filming. Features of this copy which 
 may be bibliographically unique, which may alter any of 
 the images in the reproduction, or which may 
 significantly change the usual method of filming are 
 checked below. 
 
 -A 
 
 V 
 
 Coloured covers / 
 Couverture de couleur 
 
 I I Covers damaged / 
 
 Couverture endommagee 
 
 Covers restored and/or laminated / 
 Couverture restauree et/ou pelliculee 
 
 n 
 
 I I Cover title missing / Le titre de couverture manque 
 I I Coloured maps / Cartes geographiques en couleur 
 
 D 
 
 Coloured ink (i.e. other than blue or black) / 
 Encre de couleur (i.e. autre que bleue ou noire) 
 
 I I Coloured plates and/or illustrations / 
 
 D 
 
 D 
 D 
 
 3 
 
 Planches et/ou illustrations en couleur 
 
 Bound with other material / 
 Relie avec d'autres documents 
 
 Only edition available/ 
 Seule edition disponible 
 
 Tight binding may cause shadows or distortion along 
 interior margin / La rellure serree peut causer de 
 I'ombre ou de la distorsion le long de la marge 
 interieure. 
 
 Blank leaves added during restorations may appear 
 within the text. Whenever possible, these have been 
 omitted from filming / Use peut que certaines pages 
 blanches ajoutees lors d'une restauration 
 apparaissent dans le texte, mais, lorsque cela etait 
 possible, ces pages n'ont pas ete filmees. 
 
 Additional comments / 
 Commentaires supplementaires: 
 
 L'Institut a microfilme le meilieur exemplaire qu'il lui a 
 ete possible de se procurer. Les details de cet exem- 
 plaire qui sont peut-etre uniques du point de vue bibli- 
 ographique, qui peuvent modifier une image reproduite, 
 ou qui peuvent exiger une modification dans la m6tho- 
 de normale de filmage sont indiques ci-dessous. 
 
 Coloured pages / Pages de couleur 
 
 Pages damaged / Pages endommagees 
 
 Q 
 
 Pages restored and/or laminated / 
 Pages restaurees et/ou peliiculees 
 
 Pages discoloured, stained or foxed / 
 Pages decolorees, tachetees ou piquees 
 
 Pages detached / Pages detachees 
 
 [v I Shov^rthrough / Transparence 
 
 I I Quality of print varies / 
 
 D 
 D 
 
 D 
 
 Quality in^gale de I'impression 
 
 Includes supplementary material / 
 Comprend du materiel supplementaire 
 
 Pages wholly or partially obscured by errata slips, 
 tissues, etc., have been refilmed to ensure the best 
 possible image / Les pages totalement ou 
 partiellement obscurcies par un feuillet d'errata, une 
 pelure, etc., ont ete filmees a nouveau de fagon a 
 obtenir la meilleure image possible. 
 
 Opposing pages with varying colouration or 
 discolourations are filmed twice to ensure the best 
 possible image / Les pages s'opposant ayant des 
 colorations variables ou des decolorations sont 
 filmees deux fois afin d'obtenir la meilleure image 
 possible. 
 
 This item is filmed at the reduction ratio checked below / 
 
 Ce document est fiime au taux de reduction indique ci-dessous. 
 
 10x 
 
 
 
 
 14x 
 
 
 
 
 18x 
 
 
 
 
 22x 
 
 
 
 
 26x 
 
 
 
 
 30x 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ■/ 
 
 
 
 
 
 
 
 
 12x 
 
 16x 
 
 20x 
 
 24x 
 
 28x 
 
 32x 
 
The copy filmed here has been reproduced thanks 
 to the generosity of: 
 
 National Library of Canada 
 
 L'exemplaire filmi fut reproduit grace ^ la 
 g^n6rosit6 de: 
 
 Bibliotheque nationale du Canada 
 
 The images appearing here are the best quality 
 possible considering the condition and legibility 
 of the original copy and in keeping with the 
 filming contract specifications. 
 
 Onginal copies in printed paper covers are filmed 
 beginning with the front cover and ending on 
 the last page with a printed or illustrated impres- 
 sion, or the back cover when appropriate. All 
 other original copies are filmed beginning on the 
 first page with a printed or illustrated impres- 
 sion, and ending on the last page with a printed 
 or illustrated impression. 
 
 The last recorded frame on each microfiche 
 shall contain the symbol --^- (meaning "CON- 
 TINUED"), or the symbol V (meaning "END"), 
 whichever applies. 
 
 Maps, plates, charts, etc., may be filmed at 
 different reduction ratios. Those too large to be 
 entirely included in one exposure are filmed 
 beginning in the upper left hand corner, left to 
 right and top to bottom, as many frames as 
 required. The following diagrams illustrate the 
 method: 
 
 Les images suivantes ont 6t6 reproduites avec le 
 plus grand soin, compte tenu de la condition et 
 de la nenetd de I'exemplaire film*, et en 
 conformity avec les conditions du contrat de 
 filmage. 
 
 Les exemplaires originaux dont la couverture en 
 papier est imprim^e sont IWmis en commencant 
 par le premier plat et en terminant soit par la 
 dernidre page qui comporte una empreinte 
 d'impr':^sion ou d'illustration, soit par le second 
 plat, selon le cas. Tous les autres exemplaires 
 originaux sont film*s en commer.pant par la 
 premiAre page qui comporte une empreinte 
 d'impression ou d'illustration et en terminant par 
 la derniAre page qui comporte une telle 
 empreinte. 
 
 Un des symboles suivants epparaitra sur la 
 dernidre image de chaque microfiche, selon le 
 cas: Ic symbole — ♦- signifie "A SUIVRE", le 
 symbole V signifie "FIN". 
 
 Les cartes, planches, tableaux, etc.. peuvent etre 
 filrnis A des taux de reduction diff^rents. 
 Lorsque le document est trop grand pour etre 
 reproduit en un seul cliche, if est film6 it partir 
 de Tangle supirieur gauche, de gauche d droite. 
 et de haut en bas, en prenant le nombre 
 d'images nicessaire. Les diagrammes suivants 
 illustrent la methods. 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
WICROCOPY RESOLUTION TEST CHART 
 
 ANSI ond ISO TEST CHART No 2 
 
 1.0 
 
 I.I 
 
 113.2 
 
 .: lis 
 
 1 2.5 
 
 11 2.2 
 2.0 
 
 1.8 
 
 1.25 
 
 1.6 
 
 A ^IPPLIED I^A^GE Inc 
 
Facts For Electors 
 
 THE 
 STEEL RAIL PURCHASE 
 
 THE FORT FRANCES LOCK 
 
 THE NEEBINO HOTEL 
 
The Gazette, Montreal, Thursday, June 6, 1878. 
 
 FACTS FOR THE ELECTORS 
 
 Result of five years Grit-Rouge Rule in 
 
 Canada. 
 
 THE STEEL RAIL PURCHASE 
 
 No subject has been more discussed since Mr. Macicenzie came to office 
 than his unfortunate purchase of steel rails. A simple record of the facts in this 
 case is all that is decessary to show, first, that the purchase was a most unwise 
 one ; next, that it was without the authority of Parliament ; and last that it was 
 open to the grave suspicion of having been prompted by a spirit of nepotism. 
 
 In the fall of 1874, he advertised for tenders for some rails, and the first 
 suspicious circumstance connected with the matter was the manner in which 
 these advertisements were inserted. It will be admitted that it was a matter of 
 the greatest possible importance that the fullest publicity should he given to any 
 invitation for tenders of this description. The manufacturers of steel rails were 
 in England. Their agents in this country must of necessity communicate with 
 them, and unless, therefore, there was time for that communication, the trade at 
 large must necessarily be put to a very great disadvantage. And yet we find 
 that the advertisement was dated on the 29th of September, that its first appear- 
 ance was in the Montreal Herald of che 2nd of October, and that it asked for 
 tenders delivered in Ottawa on the 8th of October, so that there were only six 
 days durmg wtiich merchants could arrange to send in their tenders. 
 
 Next, as to the contracts. Mr. Mackenzie has claimed that the lowest tender 
 was, in every instance, accepted. The tenders which actually were accepted were 
 as follows : — Guest & Co., $54; Ebb Vale Company, $53.53 ; West Cumber- 
 land Company, $53.53 ; and .Mersey Steel and Iron Compa ^'51.26. This 
 last company was represented by Cooper, Fairman & Co., of M> ntreal, whose 
 names have been unpleasantly associated with this transaction. It will be seen 
 that their tender was 26 cents a ton higher than the highest of the others, and 
 73 cents a ton higher than the lowest. Each of these tenders was for five 
 ' ousand tons, excepting that of Cooper, Fairman & Co., which was for from five 
 to ten thousand tons. And yet THE HIGHEST TENDER WAS AWARDED 
 THE CONTRACT FOR TWENTY THOUSAND TONS, while of the others 
 the Ebb Vale Company got only five thousand tons ; Guest & Co., ten thous- 
 
 I 
 
and- and ihc West Cnn.l.crland Company, represented by Cox & Green, five 
 thousand, the latter at their own earnest solicitation being subsequently awarded 
 an additional .ontracl for live thousand tons more. 
 
 It will be seen that the tender from Antwerr. was rejected upon the ground 
 that it was not in accordance with the advertisement ; and yet, after all these 
 tenders were opened, and all these contracts were awarded -when the whole 
 tr-msa.tion in fact, in relation to the advert.smg for tenders had been closed,- 
 a private arrangement was made between Mr. Mackenzie and Cooper, P airman 
 & Co for additional quantities delivered f. o. b. at Liverpool. It has been the 
 boast of Mr. Macken/ic-it was his boast especially in relation to this steel rail 
 pur.hasc-thal u. every case tenders were invited ; but the facts show that m 
 this, as in other statements made in relation to it, he was wrong. The followmg 
 correspondence will explain this latest transaction :— 
 
 MoNTRF.AL, 13th January, 1875. 
 
 Dear Sir,— In reply to telegram of the 7th instant, we beg to advise you 
 that we 'have 'purchased on account of Dominion Covernment, 5,000 tons of 
 Bessemer steel rails at £10 los. od.. f. o. b., Liverpool, cash agamst bills 
 
 of lading. . „ ,,, 
 
 We have also contracted freights to Vancouver Ports, vi/. .— Esquimault, 
 
 Cowichan Hay and Nanaimo, .at £2 5s. od. sterhng per ton. 
 
 The Government assuming the responsibility of freight, etc., which is to say 
 to pay shippers, makers not assuming delivery to Vrtncouver Ports. 
 
 Should you require the track bolls for this lot, we can arrange for them and 
 include. We are advised that steel rails are now held at ^11 os. od. We 
 would be glad to he favoured with the address of your bankers in England, to 
 whom we suppose the bills of lading will rciiuire to be presented. Kindly con- 
 firm the contract as soon as possible, to enable us to cable reply, the necessary 
 
 documents to follow. 
 
 Yours faithfully, 
 
 COOPER, FAIRMAN & CO. 
 
 Hon. A. Mackenzie, Ottawa. 
 
 Ott.\wa. 2ist January, 1875. 
 
 Gentlemen,— In reply to your several communications on behalf of Messrs. 
 Naylor, Benson'iV Co., I am to state that the Government accept their offer to 
 supply '5,000 tons of steel rails at ^10 los. sterling per ton, f. o. b. at Liverpool, 
 and allows £2 per ton for freights to Vancouver Ports. 
 
 The Agent General of the Dominion, E. Jenkins, Esq., will see to the 
 
 insurance. , ,. ^ 
 
 Messrs. Morton, Rose cS: Co. are the financial agents of the Government m 
 
 London. 
 
 I have, etc, 
 
 Messrs. Cooper, Fairman •■'t Co., Montreal. 
 
 F. BRAUN, Secretary. 
 
THAT WAS A PURCHASE OF RAH-S WITHOUT ANY TENDER 
 WHATEVER HE[N(; ASKKI) KOK. IT W/»S A PURCHASE OF 
 RAILS ON TERMS WHICH HAD liEEN EXPRESSLY REJECTED 
 IN THE CASE OF IHE AN'IWERP TENDER, AND IT WaS A 
 PURCHASE AT TEN SHILLINGS A TON HIGHER THAN RAILS 
 WERE OFFERED FOR, AF THE VERY TIME OF MR. 
 MACKENZIE'S PURCHASE. 
 
 We have hus the fact beyond controversy, that MR. CHARLES 
 MACKENZIE WAS A PARTNER IN TFIE FIRM OF COOPER, 
 FAIKMAN & CO. WHEN THESE EXTRAORDINARY FAVOURS 
 
 wt:re (iran'ted to the firm uy mr. Mackenzie. That 
 
 he did n<Jt retire until after all tlu contracts had been made ; and we know he 
 received on his retirement [ironiissory notes payable at the Ex^.i.mge Pank for 
 the .$13,000 which he had put into the firm. It required the proceeds of these 
 transactions to enable Cooper, Fairman iV Co. to pay these notes, so that the 
 fact is beyond controversy that the result of all these transactions was to enable 
 Mr. Cliarles Mackenzie to withdraw his capital intact from the firm in which, 
 but for that fact, it would have been irretrievably lost. WHAT THE 
 COUNTRY HAS LOST BY THE MERE PURCHASE OF THESE 
 RAILS HAS BEEN i:s'TIMATED AT NOT MUCH LESS THAN TWO 
 MILLIONS OF DOLLARS. 
 
 On the 5ih J.muary, 1H75, the Government bought 5,000 tons of steel rails 
 from Messrs. Cox & Green, of Montreal, at ;^io sterling per ton, f.o.b. in 
 England, and two days afterwards (on the 7th January, 18751 ^^^ Government 
 bought from Cooper, F'airmaii & Co. without competition, 5,187 tons at 
 ;^io los. per ton, also f.o.b. in England, for British Columbia. 
 
 The country's loss by this act of favouritism was los. sterling per ton and 
 amounted to $12,004. 
 
 In November, 1874, Messrs. Darling \- Co. of Montreal, tendered for bolts 
 and nuts at $92.47 per ton ; and at the same time Cooper, Fairman & Co. 
 tendered at $101 per ton; Cooper, Fairman iV Co. got a contract for 160 tons. 
 
 The country's loss by this act of favouritism was $1,365. 
 
 In 1875, Messrs. Guest & Co., of England, supplied to Canada 10,000 tons 
 of steel rails, and when tendering for the rails in November, 1874, they oflTered 
 to deliver them at Duluth at $4 00 per ton more than at Montreal, or including 
 insu»..nce, $4.16 more jier ton. Messrs. Cooper, F'airman & Co., acting for 
 themselves and on behalf of Messrs. Norris & Neelon of St Catharines, and 
 Messrs. Hope & Co. of Hamilton, were paid at the rate of $6.20 per ton. 
 
 The country's loss by this act of favouritism and mismanagement was 
 $2.04 per ton, on 10,000 tons, and amounted to $20,400. 
 
 In 1875, the Red River Transportation Company tendered for the transport 
 of rails from Duluth V " .iinipeg, at $1500 U.S. Currency per ton of 2,000 
 pounds. Messrs. FuUei & Milne of Hamilton tendered for the same service 
 at $13.50 U.S. Currency per ton, meaning the usual ton of rails, 2,240 pounds. 
 The Red River Company got the contract, and transported 11;, 141 tons. 
 
 The difference in the rate of freight and in the ton weight togethi* 
 amounted to $3.30 per ton. 
 
 The country's loss by this act of favouritism or mismanagement wa« $3.30 
 
per ton o,. . 5.14. tons, and amounted to $49.9f'5 U.S. Currency, ..nd in gold 
 
 '" ^'iv'loss on the four transactions whirl. 1 have enumerated amounts 
 
 '"^ ^ Thiic r.il. suiruMcu tu l.,y f.vc hundred nulcs of r.i.lway. were purchased 
 in lanuary oi ,H74. ""* thnrou(.hly unnecessary was the purchase at that 
 ,iJc will ap,,ear fron, the return hruu^h. down during the las, sess...,, o 
 
 Pirliunr.n That r.turn had relatic. to the numl.er of miles actu.Uly la.d 
 down tu January. ,878 ; and ac ordin, t.. tne return rm contract No, ^^, were 
 
 ,,i mile; l..id, on No. ,4 ther. were 6 miles, and <'" N- "5 « ;;';'7 '";' ^'f 
 
 OUXNTITY Oi KAILS ITKCilASI.I.. ANP 'llll^ MlkKl. \ .\RS 
 Ain-KR lllK CONTRACTS WKKl. .MAUI, 1 < )K THO^l. I' .Ml, 
 
 Till (;,\/KrrF,, .NIoNlKK.M, 
 
 I I s|i\ , •<1- I'l ( Mil I 
 
 iSt.S, 
 
 THE FORT FRANCES LOCK 
 
 It was intended when th,. Inck Nva> fir.st undertaken, that it would he a 
 pan ..f the Parifir Railway. That was the plea upon which Mr, .Mackenzie 
 ventviv,! upnu it. Wc have already shown in a forni.'r p,.per th.at m undertak- 
 ing ,t he either violated the law, or iRnored the authority of I'arl.amfnl. If it 
 was pirt of the Pa-ifie Railway, it shoul.l have been let by public tender ; it it 
 was not nan of the FaeUic Railway, IMrliamenl had voted no money for us 
 construction. .\s to the uselessness of the enterprise, the repon of the Com- 
 mitter of S,nate, based ui-on evidence presented to it, offers the l- 1 010 nee 
 TlH- UK k IS s.uiated on Rainy River : ii .. int.r.ded to overcome a tail of 
 ..feet now passed by a porta.^e, and when the loek is completed, and the 
 obstructions of the Manit.m and Long Sauk Rapidsc nRainy River are removed, 
 there will be unbroken water communi-ation from Rainy Lake to Lake ot the 
 Woods ? rnfortunatelv, however, the route to Rainy Lake from fort Savanne. 
 where the Canadian Facilie eonneets with the water stretches, involves a passage 
 of nine portaRes, the difference in fall between these two points being 400 feet ; 
 so that we have the extraordinarv fact of a lock being commenced away ou, m 
 the wilderness, to overcome a fall of 2.^ feet, while to reach it will still involve the 
 passnge of nine ponages and a fall ot 400 feet. It is no wonder that the r^cnatc 
 Committee should say that the evidence had satis.kd thein that this lock, when 
 completed, "could not be used for purposes of commerce in connection with 
 "the Canadian Pacific Railwav so as to form part of the through connection 
 
M 
 
 "from Like Suficrior to Manitoba." So mmh for the uselewneM of this lock, 
 under any circumstancM ; but the manner in which it hai been ca.ried out 
 shows a spirit of recklessness that on^ can hardly understand When the Gov- 
 ernment cancelled the contract for the railway from 1 ort William to Lake She 
 l)an<l.>w n, m order to chaugc the location to that by lort Savanne. the amount 
 exjMinded on this lock did not exceed $73.94o. The department at that time 
 evidently took the common-sense view, that as the line of the railway had been 
 changed, ami the canal rendered absolutely usei.-ss. the work upon it Hhould be 
 stopped ; and. in November, 1875, a telegram was sent to the superintendent 
 of the lii.k to the following effect :-" Close all canal works at Vort I-'rances ; 
 suspend all proceedings." It is evident that these works had proved too valuable 
 an asylum for broken down political hacks lofjking for situations, to lie thus 
 permanently abandoned ; and in April, 1.^7(1, the department instructed the 
 superintendent to resume work upon the lock by da> labour. 'Ihc work has 
 gone on ever since, anil accordinK to the evidence of Mr. Sutherland, $j 10,389 
 was expended up to the 30th |une last, and he assumes that the work before it 
 is am.pleied will < o.st $250,000. TU SHOW IIIK .MiSlRbl'l Y (M THIS 
 LOCK AS PARI <)l" THK I'ACIIIC RAIL\\ \Y, IT IS ONLY NK- 
 CKSSARY TO SAV THAT IT IS A HLNDRl.l* MILLS I ROM THE 
 NLARKST rOINT OF Till: CANADIAN rACIIlC ; and accoiditiK to 
 Mr. Mortimer, one of the engineers examiniM liy \\\v (onuniiiee, the cost of 
 making even a possible connection between Lake Shibandowan and the Lake 
 of the Woods, outside of this I'ort Frances lock, will be $341-000. The Com- 
 mittee, in their report as to the value of these locks, used the following language : 
 " Your Committee has failed to discover that the Fort I'rancts lock can be of 
 use to the Dominion. The evidence shows that it will be ('f m) appreci. 1; 
 advanla-e even to the locality in which it is situated. Ihc trade of the fertile 
 Canadian bank >>! Rainy River, and of the whole country west of the lock, will 
 seek the railway at Rat I'ortagc, and little or no portion of it will ascend through 
 the lock and go caslwar<ls. as, at the cast end of Rainy Lake, it will be con- 
 fronted with nine portages, and the as< ent of 40 I'et \vhi( h separate Fort 
 Savanne froni Rainy Lake. The countrv on the Canadian shore of Rainy Lake 
 is unsuitable for agiiculture : a moderate trade in timber and saw logs is all that 
 can be expected to flow from that region. I or the accommodation of such a 
 trade, when it springs up, a Inrk at Fort !■ ranees will not be required, an irex- 
 pensive slide would answer every purpose, ain' even that would not have been 
 needed for years. It has been suggested that the Icnk might be of service as a 
 military work, but evidence was not taken on that point, as in the opinion of 
 your Committee, while the lock will be unused for commerce, it cannot be 
 seriously contended that an isolated lock on the frontier of Minnesota may 
 become a seivi cr-.ble military work of this Dominion." 
 
 That cnnchision is fully borne out by the evidence of engineers and oihers 
 examined by the Commitiee. We have thus $250,000 spent in a work of 
 absolutely no value to the country, undertaken in violation of law or without 
 the authority "f Rnrlinnient, and designed simply for the purpose of offering 
 employment to people who are clamoring to be rewarded for services rendered 
 to their party. 
 
THE KAMINISTIQUIA PURCHASE 
 
 Now the value of land at this point, without reference to the Pacific Railway 
 terminus, we have seen was in 187 1 and 1872, only about $8.00 an acre. It is 
 impossible for anyone to imryne that, but for the railway, it -°"l^^;hav^ mcjeased 
 to anv considerably higher sum within three years ; and yet I HE AVLRAGb 
 PRICE GIVEN TO OLIVER, DAVIDSON & CO. WAS ABOUT $500 AN 
 ACRE The Committee hi their report say : — 
 
 •' For the land taken from Oliver, Davidson A- Co. and others the Govern- 
 n.ent paid at the rate of $500 to $600 per acre. In 1872 or 1873 Oliver, 
 Davidson .V Co. purchased Lot 6 in the Township of Neeb.ng, adjoining the 
 town plot, containing 136 acres, for about five dollars an acre; your Coimuittee 
 submits that the enhanced value of this property was due to the placing of the 
 terminus where it is. YET FOR VACAIT ACRES OF IT THE GOVI^RN- 
 MFVP \nVI.,El) BY THE VALUATORS!?), PAID ABOL 1 1T\E 
 HUNDRED DOLLARS PER ACRE, BEING ABOUT FOUR THOU- 
 SAND DOLLARS FOR EIGHT ACRES, OR OVER IHRLE 
 THOUSAND MORE FOR THE EIGHT ACRES THAN OLIVER, 
 DAVIDSON & CO. PAID FOR THE ENTIRE LOT OF ONI. HUN- 
 DRED AND THIRTY-SIX ACRES." 
 
 NEEBING HOTEL 
 
 In connection with the Kammistiquia land purchase was the Neebing 
 Hotel job It appeirs from the evidence taken before the Committee that 
 Messrs. Oliver, Davidson & Co. had a lot of culled lumber on hand which 
 they were anxious to dispose of. They f.rmed 1 bogus company called the 
 Neebin' Hotel Co., and commenced to put up a hotel on the Railway reserva- 
 tion. ^Ucording to the evidence of Mr. Reid the hotel was ' built five 
 months after the time the eservation had been made." This is another 
 instance of the loss 'o the Government from the failure to register the plans and 
 take possession of the property, the moment the site was determined upon. 
 This building has been the subject of considerable ?.musement in the political 
 discussions that have taken place. In order that our readers ma, understand 
 its character we give a sketch of the building as it stood when purchased by 
 the Government. That illustration is from a photograph taken on the spot 
 and its accuracy has never been denied. Mr. Reid in his evidence stated that 
 he obtained from Mr. Durand, wh was a valuator for nearly all the insurance 
 companies in the Dominion, a practical builder, his opinion as to the value of 
 the building. Mr. Reid described the building to Mr. Durand and we may 
 fairly assume that as he was the Government valuator, his description of it did 
 it no injustice. And yet the estimate ol its value by Mr. Durand was that a 
 similar building cou'd be erected in London for $2,500. The evide ce of Mr. 
 Henderson, who built the hotel, in some respects is very interesting. Here are 
 a few i assages of that evidence selected at random which wil enable the reader 
 
9 
 
 to understand the motive for the erection of the building and the manner in 
 which it was erected : — 
 
 Q.-Had you plans and specifications for the building that was to be erected? 
 A.— I understood by Mr Davidson that he had the plans and specifications, but 
 when I got up there he had none. He merely gave me an utline or sketch of 
 how the building was to be made. 
 
 Q.— Did he sketch it himself? A.— HE SKETCHED IT ON A PIECE 
 OF BOARD AND TOLD ME TO IMPROVE ON IT MYSELF AND 
 MAKE ANY ALTERATIONS I LIKE ; me being a builder he said I would 
 have an idea of how to build. 
 
 Q. — Did he tell you what size be wanted the building to be? A. — Yes, he 
 told me to make it laige enough. 
 
 Q. — Can you state to the Committee how much of this 65,000 feet of lum- 
 ber was used in the building ? A, — I think about 50,000. 
 
 Q, — Was there a fiuantity r,f material removed after you left ? A. — Yes, 
 there was a quantity of material left .ind piled up in front of the Hotel when I 
 stopped working on the building. 
 
 Q. — Do you know what became of any of that material, that is the lumber ? 
 A. — It was piled up in front i the hotel. I believe there was some taken away. 
 I saw about three hund ed feet taken away. 
 
 Q.— Who took it away ? A.— MR. OLIVER'S FOREMAN. 
 
 Q.— ^\■here was it taken to? A. — To several little cottages that the 
 Government were building further up the road. 
 
 Q.— Who was building these cottages? A. — Oliver, Davidson &: Co. 
 
 Q.— On their own account? A. — For the Government. 
 
 Q. — By contract ? A. — Yes. 
 
 Q.. — Look at the account sent in by Oliver, Davidson & Co. and say what 
 number is charged there ? A. — Forty four doors. 
 
 Q. — Were there forty-four doors delivered by Oliver, Davidson & Co. to 
 you at Fort William ? A. — Thirty-four doors is all that was delivered. 
 
 Q. — In what condition were those doors when delivered ; were they com- 
 plete, cramped, dressed and moulded? A. — No ; they were just eady to be 
 cramped. The stiles and panels were merely put together, they were not dressed 
 and not crimped. 
 
 Q. — How many of those doors were used in the hotel ? A. — Ten doors. 
 
 Q. — What where those doors worth in the state they were delivered ; 
 A. — They would be worth up there about $1 50. 
 
 Q. — Look at the account of Oliver, Davidson & Co. and say how much 
 was charged by them for these doors ? A. — There are four different sizes of 
 doors. There are doors 2x8 and 6x8, $2.75. These doors in the state they 
 were, were worth about $1.50 eacn. 
 
 Q,— What was the quality of lumber used in this hotel? A. — It was 
 common lumber. 
 
 Q. — What could lumber such as that be obtained for from the South Shore 
 or at Prince Arthur's Tending per thousand feet? A- —About 11 or 12 dollars 
 per thousand. 
 
 Q. — Would that be good lumber or such as this r' A. — It would be fir.-.t 
 cla^s lumber. About half the bill was what we call common lumber and the 
 other half was what we call culls. 
 
10 
 
 Q._How much are these culls worth per thousand ? A.— About $8. 
 
 Q.._\Vhat is the other worth ? A. --About $12. 
 
 Q. - Did you ever object to the quality of lumber that was going into the 
 hotel when speaking to Mr. Oliver? A. —Yes, I did. 
 
 Q._\Vhat did he say ? A.— He said it was all right. 
 
 n._\Vas the building that was erected a very substantial structure? 
 A.— No, it was not ; IT WAS A VERY POOR STRUCTURE. 
 
 O. — Did you erect it under the instructions of Mr. Oliver? A.— Yes, 
 entirely under his instructions. 
 
 Q._\Vhat was the si/c of the post or outside studding ? A.— 2 x 4. 
 
 Q._\Vhat kind of foundation did his house rest on ? A.— On cedar posts. 
 
 Q.— Did \<.u put a cellar under the building? A.— Yes. 
 
 Q. —Under the whole of it ? A. —No. 
 
 Q.- -Was it laid up with lime and sand ? A.— No, IT WAS LAID UP 
 WITH Bl.UK CI.AY. 
 
 O.-Wa. it stoned when you left ? A. -NO, IT WAS PARTLY FALLEN 
 
 DOWN WHEN 1 LEE'L 
 
 (). Who laid up the stones, was it macon ? A. NO, DAY LABORERS. 
 
 0._I sec there is in your account $1,225 charged for labor : did it actually 
 cost that '^ A. —Labor on the building ? 
 
 Q.— That is the labor expended on the building ? A.— No, it did not cost 
 
 ex.actlv that 
 
 - How much was artuallv spent in labor, or what could y< u have erected 
 that bdlding for at that lime ? A. -I COULD HAVE ERECTED IT FOR 
 ABOUT .$600. 
 
 It will be seen that the puttin- up of this building was pimply a scheme for 
 getting rid of a lot of old lumber at fancy prices, that the arcomit; sent in to the 
 Government were fraudulent accounts, and that the Covernment became 
 responsible for this loss to the country t.\v its own neglect in not earlier fyling 
 the iilans for the reservation. Mr. Wilson's evidence gives some particulars as 
 to how the price paid for the building was artived at. The following are 
 extiacts from that evidence : 
 
 0._How did you arrive at the value ( f the Neebing Hotel for which 
 .$5,0:9 was paid ? A.— The intention was to pay the acteal cost of the building, 
 and we were furnished with a detailed account of what the buil ing had cost up to 
 the time work had -topped, which, with five hundred damages added to it, 
 made up th- amount. 
 
 Q._-\Vho fmmshed the account to yon ? A, -I think I got them through 
 Mr. lirown s Hands. They were furnished by Mr. Oliver's office. I understood 
 the accounts wtre kept in Mr. Oliver's oftke. 
 
 ( ).__\Vas Mr. brown a stockholder ? A,— I understood he was interested 
 in the Companv. 
 
 1^1.- You iiascd the v.-iUie on the material that was said to be used in the 
 construction of the building? A. — ^ es. 
 
 Q,— Did you ascertain whether the lumber and other material charged in 
 Oliver, Davidson A; Go's, bill had been used in the building ? A.— No, I went 
 up twice to- measure the building. I did not know whether it would be advis- 
 able to measure it, having the accounts, and took it for granted from what they 
 assured me, that all the material had been used in the building. 
 
11 
 
 Q.— What sort of a building was it as to appearance and general size? 
 A.— IT WAS A VF:RY TEMPORARY STRUCTURK. 
 
 Q — What kind of a frame was it ? Would Ihey call it a balloon frame ? 
 A. — It was what is usually called a balloon frame. 
 
 Q. — How did you ascertain its value if you did not make any valuation ? 
 A. — i was informed that the (iovcrnment intended to pay the actual cost of the 
 building, and that the detailed account furnished by Mr. Oliver was the cost of 
 the building which I was to forward to the Government to investigate. 
 
 Q.— Who informed you that the Cioveriiment were to pay the actual cost 
 of the building? A. — I think Mr. Brown and Mr. Oliver both. 
 
 Q.- Did you in any way certify the truth of the statement of material 
 furnished by Mr. Oliver, or did you assume that the accounts furnished you 
 were the correct accounts of the material used ?• A. — I understood they were 
 the lowest figures they would take as the actual cost of the building up to that 
 time. 
 
 Q. — When you sent them to the C'lOvernment did you make any report on 
 them? A, — I did not. My colleague, Mr. Reid, carried them down from 
 Toronto to Ottawa, and he was to exjjlain the report. 
 
 Q. — Was there any painting done in the building? A. — 1 think not. 
 Q.— Would you look at the account furnished by Mr. Oliver and ascertain 
 if there is any paint charged, and the quantity and cost? A — Yes, I notice 
 there are two entries, one of $20 and one of .$18, together they make $38, but 
 is charged at $34 20 as there is a discount of ten per cent. 
 
 Q. — Would you look at the account and ascertain the quantity of oil, 
 turpentine and varnish that was furnished ? A.— Twenty five gallons of boiled 
 oil, at 70 cents, apparently for the barrel, $18. 10 ; ten gallons of turjientine at 
 80 cents, and two tins each 75 cents, making $9.50 ; five gallons of furniture 
 varnish, $6.25 ; one [)ound of lamp-black, 2c cents ; f.-.ir pounds of Venetian 
 red 14 cents, and ten pounds of patent dryer $1.05 ; two pounds of );ellow 
 ochre 6 cents, makin'g in all $34.45. 
 
 Q. — Would you look at the account and see how many doors are charged 
 there ? A. — I might mention that there was a pile of doors upstairs in the upper 
 story of ttie building at the time, that were not hung, and some sashes; there are 
 forty-four doors charged in the account. 
 
 Q. — At how much per door? A. — One at $7, one at $4.50, two at $4 
 each, fifteen at $3 each, twenty-five at $2.75 each, making in all J'133. 25. 
 
 Q.— Were the sashes in and the glazing done ? A. — Only th&t portion of 
 the building in which Mr. Henderson was living. 
 
 Q.— And that comprise how many rooms ? A. — The two plastered rooms. 
 I was only in one. There might have been three rooms, as the front room 
 might have been divided in two. 
 
 Q.- But you could tell from outside how many windows there were? 
 A.— ABOUT FOUR WINDOWS. 
 
 Q. — Look at the account and see how much glass was charged ? The 
 total amount is .')!92.52. 
 
 Q. — What is the quantity of glass? A. — Twenty-three boxes and 252 
 panes. 
 
 Q. — Look at the account and see how many thousand shingles were 
 
12 
 
 charged for by Messrs. Oliver, bavidson & Co.? A —Forty-six thousand, 
 amounting to $i6i. 
 
 Q._l)oyou think it required forty-six thousand shingles to shingle that 
 portion ? A. -No. 
 
 Q_How much of tlu lioor was laid? A —I could not say positively, 
 but I think most of the floor on the east wing was laid, and a good portion of 
 the upper floor. 
 
 (;>.— Was there much of the upper floor laid ? A.— There was a portion 
 laid in the main l)uilding and in the wing. 
 
 Q.- -Making altogether how much ? A.— I did not make any calculation. 
 I did not mea.sure '^ ' flooring that was laid, because there was a lot of flooring 
 in the building not la.d. 
 
 Q.— Look at the .account of Mr. Oliver and see the quantity charged? 
 A.— Fifteen thousand tight hundred and stventy-lwo feet, costing .$353.98. 
 
 Q.— Look at the account and see if four dozen of sash fasteners are 
 charged tliere ? A. - \'es. 
 
 Q.- -Were ihcy used in the building ? .A. — I could not say. I am not 
 aware that any were used. 
 
 Q._\\hat is the cost of those fastenings ? A.— Nine dollars and twenty 
 cents. 
 
 Q. — How many locks and knobs were charged ? A— Six and three 
 quarters dozen of locks and the same of knobs, charged at $37.83. 
 
 Q.__ Do you think that those were used in the buildmg ? A. — Not all of 
 them : a few of them were on the doors that were hung. 
 
 Q._Were the chimneys built in the hotel? A.— i flue, I believe, in the 
 portion of the building that was rinished. There had been a brick top on it 
 but it fell off o mouldered away. It was brick made in the neighborhood, and 
 it did not stand the weather. 
 
 Q.__\Verc the chimneys iielonging to the hotel properly built from the 
 foundation ? A. —No, they were not. 
 
 The figures in relation to the material used as contrasted with the material 
 charged for in connection with this hc^el may be thus briefly summarized : — 
 
 Good lumber clwrged for (ft) 65,775 
 
 SLABS AND CULLS ACTUALLY USED (ft) . . . 45.000 
 
 Doors charged for 44 
 
 DOORS ACTUALLY USF.D 14 
 
 Yaluo of doors (each) $'-25 • 
 
 pricf: cflxroed for doors 2.52 
 
 Panes of glass charged for 225 
 
 P.\NLS OF GLASS ACTUALLY USED 48 
 
 Paint charged for (tms) 16 
 
 PAINT ACTUALLY USED (TINS) li 
 
 Tin charged for (cases) 16 
 
 TIN ACTUALLY USED nil 
 
 Shingles charged for 45iO°o 
 
 SHINGLES ACTUALLY USED 15.000 
 
 Builder's valuation of hotel $2,000 
 
 Price paid for it 5i029 
 
IS 
 
 The Government really was not called upon to pay a dollar for this build- 
 ing, on account of its having been erected after the reservation was made. Mr. 
 Reid, in his evidence, admits that he called the attention of the Government to 
 •his point. Here is the question and answer ; — 
 
 "What conversation took place there with Mr. Trudeau— anything special ? 
 Yes, I remember I drew his attention specially to the difficulty we had about it, 
 and we had come to the conclusion that we must leave it to the Government to 
 say whether under the circumstances, until the legal difficulty was settled, they 
 could claim under the Act or not. We agreed, however, if they could make 
 affidavit to the correctness of their accounts so far as they could establish they 
 were correct, we would be willing to allow that amount if the legal difficulty were 
 overcome." 
 
 THE GOVERNMENT, H0WB:VER, TOOK NO STEPS TO TEST 
 THE LEGAL QUESTION, TOOK NO STEPS TO OBTAIN AFFI- 
 DAVITS AS TO THE CORRECTNESS OF THE ACCOUNTS, BUT 
 ON THE CONTRARY PAID THE AMOUNT CLAIMED BY OLIVER, 
 DAVIDSON & CO. WITHOUT HESITATION. As an illustration of the 
 slovenly manner in which this whole matter was conducted, it may be mentioned 
 that, during the evidence, it came out that the lot upon which stood the Neebing 
 Hotel had been paid for twice, and in order to avoid trouble, Mr. I'eter J. Brown 
 deposited to the credit of the Government $500, the price of the lot. But for 
 the investigation undertaken by the Senate, that fact would never have been 
 known, and the money would have been lost. It is but an evidence, however, 
 of the way in which the public interests were disregarded in connection with 
 these proceedings. 
 
 It may be asked why the Government should have given so many favors 
 to this firm, Oliver, Davidson & Co. ? There is but one answer to be made. 
 Mr. Crooks, Treasurer of the Province of Ontario, when defeated in West 
 Toronto, remained out of the Legislature for some months, unable to obtain a 
 seat. At last, Mr. Adam Oliver, then representative for South Oxford, consented 
 to retire and allow Mr. Crooks to become the candidate. The reward for this 
 act of self-abnegation on the part of Mr. Oliver is to be found in the transactions 
 to which we have been making reference. * The country paid some $50,000 in 
 order to obtain a seat for the Treasurer of the Province of Ontario. 
 
u 
 
 The Mail, r()RONTO, Monday, Mav 27TH, 1878. 
 
 THE CAMPAIGN 
 
 A Record of Extravagance and Corruption 
 
 THE NEEBING HOTEL 
 
 But Oliver, Davidson & Co. were not content with securing $50,000 of 
 public money for their 1 10 acres of waste and intrinsically worthless land ; they 
 wanted more. In the fall of 1872 they had erected a saw mill on what is known 
 as Island No. ., in the Kaministiquia, and in 1S75 found themselves the 
 possessors of a vast <iuantity of slabs, culls, and poor lumber, for which th re 
 was no ready market in that region. Accordingly early in 1875 they conceived 
 the scheme of throwing these slabs, culls, into the similitude of an hotel, erectmg 
 the structure on land which they knew the Clovernment would require for rail- 
 way purposes, and selling hotel and land at a big profit. To give tone to this 
 minor conspiracy a company was formed to build the hotel, under the style and 
 title of the Neebing Hotel Co., but 111 reality the firm of Oliver, Davidson & Co. 
 was the rompany. Mr. I )avidson engaged J. D. Henderson, a builder in a small 
 way in Toronto, to go up and build the hotel ; and on his arrival at Fort William, 
 Henderson learned to his astonishment that he was vice-president of the 
 Company, and held $2,000 of stock in the concern. He wouldn't have believed 
 this had it not been recorded in Oliver, Davidson \- Co's prospectus, for he had 
 not subscribed nor promised to subscribe a cent, nor had he been asked to 
 become vice president. Hender?on found Oliver in charge at Fort William, and 
 on asking for the plans and specifications. OUver said he had none, but taking 
 up a i)oard or shingle sketched a rough outline and told Henderson to improve 
 on that and make any alterations he liked, but to 'make it large enough ' 
 (Senate Committee report, 1878, page 109). Henderson went to work and put 
 up the structure, which Oliver, Davidson & Co. sold to the {}o%ernment in 1S76. 
 He kent an account of some of the material used, and on comparing it with 
 Oliver, Davidson Ct Co's bill to the Government, found a st-ikinj; discrepancy. 
 From his evidence, pp. 109-112, we compile the following table, showing the 
 extent and variety of this discrepancy :— 
 
 I 
 
15 
 
 HOOL'S ITKMS. 
 
 V**ti til ChMTige to 
 
 StriK-tur< , Gu\Brnni«nt. 
 
 Uoors 10 44 
 
 Cost of each door . $i-5o $J-7S 
 
 Fairs of sashes » i 43 
 
 Cost of sashe!) 60 1 50 
 
 Tins of paint ... Nil. lA 
 
 Class (panes) 4S J23 
 
 Glass (boxes) Nil. 23 
 
 l.iimhcr (feel) 45,000 or 50,000 '^'5.752 
 
 Estimate of cost $3,ooo $5,029 
 
 In estimating the actual cost of the structure at $3,000, Henderson (p. 1 13) 
 said this "would he a hi^ price for it." The valuators accepted Oliver, Davidson 
 & Co's. bills without examinint^ them, and when before the Committc, Mr. 
 Wilson admitted the foUowmg discrepancies (Senate Report, 1878, pp. 1-8): — 
 
 l,'seJ in CharKF to 
 
 Structure. CiovernmrnL 
 
 Lime (l)arrels) , . .2 rooms, 18 ft. x 16 ft. plastered. 10 
 
 Hoiled oil (^-als.) Nil. 25 
 
 Turpentine (gals.) Nil. 10 
 
 Glass 4 windows. $92. 52 
 
 Shingles 80 ft x 24 ft. shingled. 46,000 
 
 Mooring (feet; 1,920 1 5,872 
 
 Sash I'asteners Nil. 4 doz. 
 
 Tin Nil. 66 ft. 
 
 Locks 10 81 
 
 Knobs 10 81 
 
 Mr. Wilson also discovered while being examined by the Committee that 
 the lots on which the structure was built had been charged to the Government 
 twice over. There were two lots for which the (jovernment paid $250 each on 
 buying the reserve, and on selling this alleged hotel, Mr. P. J. Brown, the 
 I>ominion Agent and law adviser to the valuators, charged his principal, the 
 Government, $500 for their own land ! 
 
 How the valuators acted in this manner is clearly shown by their own evi- 
 dence. Mr. Wilson's evidence, p. 9 : — 
 
 Did it occur to you that it would be advisable to have got an affidavit from 
 Mr. Oliver, or from Mr. I'lannagan, his bookkeeper, as to thequantity of material 
 that was furnished for that building ? Mr. Oliver assured me that that was the 
 very least that they would accept for the building. 
 
 Did you not think it would have been important to have had that verified ? 
 I think so. 
 
 These accounts include a large quantity of material that was not, and could 
 not have been used in the building — did you, as valuator, take any steps to see 
 that these articles not used should be secured to the Government, or what would 
 become of them ? We took no steps to secure it, not knowing that the Govern- 
 ment would accept the building at those prices. 
 
 V 
 

 IH 
 
 
 KSTIMATliS Ol- COST. 
 
 
 Mr. Reid, the other valuator, tcUi a similar story. He gave • verbal des- 
 
 
 cription of tlu hotel, with some of the measurements, etc.. to Mr. Durand, an 
 
 
 *-xi> -ienced builder in F-dikIom, who cstim.ilfd the cost .at $2,500. Mr. Krancis 
 
 
 1 . .Vlari.incr (jf the 1 .i\v ituildiiig and Manufacturing Company f.f .Meatbrd, 
 
 
 uii examined >he ttrurture, hurriedly, it is fair to say, estimated its cost at 
 
 
 . !,044. P- '49:-- 
 
 
 Material $i,S6o 
 
 
 I^lK>ur . . 900 
 
 
 Contingencies . . . . 1^4 
 
 
 $3,044 
 
 
 Mr. Thos. I* Taylor, ' ivil Kngineer. who exami ed the building and look 
 
 
 careful measuremtnts of it, w^'le an citimate as follows, p. 134 :— 
 
 
 7,200 feet of flooring .1 $iH per M .$129.60 
 
 
 42,4^7 fet't of "all kinds" at $10 42^■2^ 
 
 
 28 squares shingles at $3 84.00 
 
 
 280 Sfjuare pla.stering at 15c., one roat 42.00 
 
 
 1 * flfirirQ Tf "ft 1 42.00 
 
 
 1 4 ijiK;i» ai ^i^^ . t* ^ 
 
 
 1^^ WilKluws wtui ^itta^ tti ^''•/j . . - ■ • ■ .1 J* / J 
 
 1 1\ winrl<^w4 withniit fflass at 4)1 ^O 2.i.u0 
 
 
 1 KJ W lllUvJf*3 TTimiyifl KiM39Mk ^ ' D .•■ T 
 
 $781.62 
 
 
 Fnr Inhmir 60O.OO 
 
 i IJl ImWUUI • • - • t * ~ 
 
 ■rot.-ii $1,381.62 
 
 
 But this estimate does not include hardware, nails, hinges, locks, etc. 
 
 
 Including these, Mr. Taylor's estimate would not exceed $1,500. 
 
)al (in- 
 iiid, an 
 I'rancis 
 lealord, 
 cost at 
 
 nd took 
 
 ks, etc.